Tag Archives: Nike

International Soccer Sponsorship Provides GM with a Global Reach

Big things have been happening across the pond as October marked the signing of the largest jersey manufacturing deal in history. Manchester United has reportedly signed with Nike for £300 million over the next five years, giving Nike the right to manufacture Manchester United game kits (kits are apparel worn by football players during games) until 2019. This historic deal shatters the previous record held by Spanish football club Real Madrid and sponsor adidas, worth £248 million over eight years.

Not only does Manchester United receive a significant cash infusion, which is likely to be used for signing more star players to their roster, but also included in the contract is the right to sell the jerseys. Sales could generate another £15 million a year, pushing the potential worth of this contract close to £375 million.

The latest partnership with Nike isn’t the only record-breaking deal England’s most commercially successful football club struck this year. This past May, Manchester United worked a deal with Chevrolet for the American car company to become the principal sponsor of the team starting in the 2014/2015 season, replacing insurance company AON. The deal is supposed to run until 2021 and will be worth $559 million.

This deal doesn’t mean the end of AON’s involvement with the club. AON has partnered with Manchester United as the official sponsor of the team’s training facility and practice kits in a $240 million, 8-year deal. They will also assist the club with player analysis and risk management practices. While they were unable to secure the principal sponsorship again, AON’s reinvestment in the Manchester United brand speaks volumes about the marketing power of the world’s largest football club.

The partnership with Manchester United sponsorship solidifies GM’s position in the English Premier League. Chevy has also worked a deal as the official automotive sponsor of Liverpool. The deal with Manchester United did not come without controversy for the American auto brand. GM’s Global Chief Marketing Officer, Joel Ewanick, resigned the day before the Manchester United deal was announced. It has been said that the deal with Manchester United was the breaking point for GM, which asked Ewanick to resign on his own terms.

While there is much doubt in the GM camp regarding the value this sponsorship will bring, they cannot question the global reach their new partnership will extend to them. With over 650 million fans in nearly every country on the planet, Manchester United’s brand is recognized by millions of people all over the world. Receiving that kind of exposure will certainly bring Chevrolet a new level of awareness globally, especially among the 325 million Manchester United fans in Asia alone. Pair those numbers with the current trends in the auto industry outlined by the current KPMG report, and the Manchester United / Chevy partnership seems like a match made in heaven.

It should come as no surprise that Asia is slated to become the world’s next big market for autos. As rapidly developing countries such as China and India begin to witness an increase in the purchasing power for their ever growing middle class, the demand for quality, name-brand automobiles should provide the auto industry with plenty incentive to shift the focus of their global supply chain to Asia. GM has already positioned itself to take advantage of this growth by establishing an Asia-Pacific headquarters in Shanghai, as well as developing several manufacturing plants throughout China, Russia, and India. Three countries that, when grouped together, are expected to surpass the US in automotive sales in the next 5 years.

These moves mark a significant shift in the corporate philosophy of GM, showing that in order to maintain their expansive share in the automotive market, a serious effort needs to be made to get the attention of the people living in developing areas. Although the team at GM recognizes that there is foreseeable future in the Asia-Pacific region, bringing awareness to these people will come at a cost for the American auto giant.

In order to fund their global football initiative, GM has been forced to cut spending on domestic advertising and sponsorships. Last year it was forced to eliminate advertising on Facebook and even cut their ad in the Super Bowl. While their new sponsorship with Man U and the One World Futbol Project paints Chevy in a positive light to footballers everywhere, GM could appear to be neglecting the needs of its own city.

As we mentioned in a previous post, Detroit is desperately seeking a corporate sponsor for its new hockey stadium. However, with a price tag of $650 million, a new stadium for only the US’ 3rd most popular sport pales in comparison with the Manchester United deal. Although soccer fans around the globe will begin to recognize Chevy, this iconic symbol of American ingenuity may risk losing the support of the city that fondly refers to itself as Hockeytown, and built the company up to where it is today.

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Nike, Famous Ambusher, Is Redefining the Art of Ambush Marketing

As the world is ramping up for London 2012, savvy marketers everywhere are attempting to find ways to align their brand with the Olympic Games — even though they’re not official sponsors. Ambush marketing is nearly synonymous with the Games, and if any brand is famous for its Olympic ambush schemes, it’s Nike: they’ve perfected the art, from wrapping the 1996 Athens stadium in their “swoosh” to handing out branded merchandise to fans entering Olympic arenas.

But the sportswear brand is doing something completely different for the 2012 Games: instead of attempting to “trick” consumers into thinking Nike is an official sponsor, they’re taking ownership of their non-sponsor status. It’s a first in Olympic ambush marketing… and it’s compelling.

The ad campaign they revealed yesterday pushes a message no ambusher has ever attempted to sell: official doesn’t mean great. You don’t need official equipment to play a great game, you don’t need to be an official Olympic Gold medalist to be a great athlete, and you don’t need to be an official sponsor of the Olympics to be a great brand.

The 60 second ad spot opens with shots of un-famous athletes competing and training in lesser known “Londons” around the world, from Ohio to Nigeria. They’re wincing through sit-ups, throwing perfect pitches, and wrestling their hearts out. During the montage, a (British!) man voices over this message:

“Somehow we’ve come to believe that greatness is only for the chosen few, for the superstars. The truth is, greatness is for us all… Greatness is not in one special place, and it’s not in one special person. Greatness is wherever somebody is trying to find it.”

In the end, they promote #FindGreatness, encouraging athletes everywhere to join in on their conversation.

            

Only time will tell if it manages to drown out adiadas’ campaign (they paid a cool $60 million for their official sponsor status of London 2012). In any case, it’s a powerful ad, a powerful message — and a very interesting 180 for Olympic ambush marketing.

Check out the ad for yourself here.

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Is Touting Past Relationships at Opportune Times Ambush Marketing?

The Performance Research team always has sponsorship on the brain — even when we’re shopping for cereal! We recently snapped photos of two cereal brands shelved side by side at our local grocer. The sight immediately caught our “sponsor eye.”

Quick, which of the cereal brands below officially sponsors the Olympic Games?

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If you said Wheaties, you’re forgiven — but mistaken.

With a quick glance, it seems as if both of the cereal giants could be sponsors of the Olympic Games. But look closer. The Kellogg’s box has the iconic Olympic rings logo emblazoned on it, along with language (“official sponsor”) that ties them directly to the Games. The Wheaties box? Not so much.

That’s because Kellogg’s is the official cereal brand of the United States Olympic Committee (USOC), and their Corn Flakes box is part of a marketing campaign driving home that official sponsorship to consumers. Wheaties, on the other hand, has no current official relationship with the USOC or the Olympic Games.

The re-release of past Wheaties boxes featuring Olympic champions at such an opportune time — leading right up to the 2012 Summer Games — could be considered ambush marketing, a tactic that can be cause for concern for those official sponsors (like Kellogg’s) who spend millions of dollars on officially associating their brand with the Olympics.

It’s a recurring issue. Olympic season after Olympic season, unofficial “supporters” of the Olympics elbow their way into the top of consumers’ minds as bon-a-fide Olympic sponsors by using ambush marketing tactics.

We conducted research during the 1994 and 1996 Games that lent insight into consumers’ perceptions of official Olympic sponsor brands. Often, ambush sponsors outpaced official sponsors (e.g., ambusher Nike vs. official sponsor Reebok) in terms of sponsor recall and belief that these non-Olympic companies were doing more than many official sponsors to support the Olympics.

More recently, we collected data after the 2010 Vancouver Games and found that ambush sponsorship marketing was still alive and well. In particular, Subway, who used Michael Phelps in a campaign leading up to the 2010 Games, was strongly associated with the Olympics that year even though they weren’t officially sponsoring the Games. So was Verizon, who used the U.S. Speed Skating team in ads surrounding Vancouver but had no official partnership in 2010. Full details of that report can be found here.

The topic raises a lot of questions: is spending big bucks on official Olympic sponsorship worth it? Is it ethical to lead consumers to believe your brand is associated with the Games when there is no official sponsor relationship there? We welcome your comments on this one.

Also, a challenge: keep your eyes out for all of the official and not-so-official Olympic campaigns going on this month.  Send us your pics, we’d love to see what you uncover.

Just as we’ve done since the 1992 games, we’re planning to conduct similar research for the 2014 Olympic Games.  As always, don’t hesitate to send us a message or ask us questions if you want to learn more about what we’re up to.

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July 5, 2012 · 10:54 am

Getting with the Good Guys

Both Tiger Woods and Ben Rothlesberger have had their public image severly tarnished through acts of indecency over the past few years.  Now while you would be hard pressed to call either of them role models after learning about their less than stellar ethics, both of them have managed to maintain high profile sponsorship deals for playing their respective sports.

This raises a very interesting question when thinking about sponsorship of individual athletes.  Is it OK for companies to focus their marketing dollars on people that display negative moral actions, even if their on field (or on the course in Tiger’s case) performance is excellent?  Should sponsors be held to an ethical standard?  This is a debate that could go round about many times.  However, even if sponsors continue to support people like Tiger and Ben, perhaps they should also look to partner with certain athletes that the public holds in high regard.

Just a few days ago, hockey star Brooks Laich was driving home after his team, the Washington Capitals, suffered a crushing Game 7 loss to the Montreal Canadiens in the NHL playoffs, when he noticed two stranded motorists on the side of the road.  Laich went on to pull over and change the tire for what happened to be two of his biggest fans.  Although the mother/ daughter fan combo were upset about the car and the game loss, they could not have had better things to say about Laiche, who they referred to as an “angel” in a Washington Post article.  The same article also resulted in hundreds of postive fan comments about Laiche and how “he is such a great guy”.

What about Brian Davis?  Two weeks ago he gave up the chance of winning his first ever PGA tour event through an act of incredible sportsmanship.  Davis, who was in the midst of a playoff with Jim Furyk, called himself out on a penalty that went unoticed.  This ultimately cost him two strokes and the tournament.  Again, after seeing this display of moral fortitude, feedback from fans around the world was exceedingly positive.

Perhaps teaming up with the “good reputation” guys that we mentioned above, will not only help sponsors reach sports fans, but their partnership with these positive icons can translate into brand recognition amongst the general public.  Of course, we do understand that endemic brands like Nike will continue to sponsor athletes based on performance merits, but perhaps they can put a bit more effort into marketing themselves alongside some of the more virtuous athletes in the business.

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