PANA-Talk-Sports Marketing

SPORTS
MARKETING
&
Brands
by
Rod Nepomuceno
What’s my “K”?
In 1997, I was appointed IMG Country Manager
McCormack was known worldwide as the pioneer and founder of
the sports marketing industry.
IMG is the world's largest sports and lifestyle marketing and
management company, representing the world's top athletes,
broadcasters, models, classical musicians, authors, newsmakers
and others.
IMG clients include Arnold Palmer, Jack Nicklaus, Gary Player,
Tiger Woods, Annika Sorenstam, Pete Sampras, Andre Agassi,
Serena Williams, Venus Williams, Wimbledon, Derek Jeter, Vince
Carter, Peyton Manning, Bob Costas, Jack Welch, Elizabeth
Hurley, Liv Tyler, the Nobel Foundation, the Kennedy Space
Center and the Smithsonian Institution.
As a successful international entrepreneur, he revolutionized the
sporting world by establishing athlete representation as a distinct
business discipline and by demonstrating the value of sports as a
cost-effective corporate marketing tool.
As a result….
As a result….
Why I chose to preach the
gospel of “Sports” to brands
People are already sold to sports
And that makes the job easier to sell your brand
“Sports Marketing”
What comes to mind -- >
Athlete Endorsement
Tell me what I can
do for you, Rod…
Show me the
money!!!
Sports Event Sponsorship
Sports marketing is much, much
more than athlete endorsement,
and sports event sponsorship
Scope of Sports Marketing
1. Sport events sponsorship
2. Athlete endorsement
3. Team sponsorship / naming rights
(Samsung & Chelsea)
4. Sports event organization, marketing,
implementation – and evaluation of any
event related to sports (Shakey’s VLeague, Air21 Padyak Pinoy, Run United)
5. Sports merchandising / sports products
(e.g. Toby’s, Planet Sports)
6. Sports Licensing (e.g. Nike selling NBA
products, McDonald’s Olympic glasses)
7. Corporate hospitality / entertainment (e.g.
corporate golf days, MVP Sportsfest)
Scope of Sports Marketing
8. Sports broadcasting, on-air branding, and
syndication (AKTV, Balls)
9. Sports consultancy (Crush, IMG, Sunrise)
10. Sports training facility management (Nick
Bolleteri)
11. Sports video games (2K12 NBA Jam)
12. Sports association representation (IMG
Wimbledon)
13. Sports stadium marketing (Staples Center)
14. Sport-themed advertising (Agencies doing
Gatorade ads)
15. Sports Tourism (Tour de France, Olympics,
Boston Marathon, Standard Chartered Run in
Singapore)
Team Sponsorship
Sports Event Organization
Sports Event Naming Rights
HISTORY OF SPORTS MARKETING
HISTORY OF SPORTS MARKETING
• Based on historical accounts, sports can
be credited to the Greeks, Chinese,
Egyptians
• But from Homer’s ‘Iliad,” we learn that
athletic competition from the beginning was
part of a larger festival (in the ‘Iliad’ -- it
was the funeral games from Patroclus)
• Drawings in prehistoric caves show that
men and women have always enjoyed
games of leisure, recreation and sport
HISTORY OF SPORTS MARKETING
• 1870s - tobacco companies put
baseball cards in packs
• Jesse Owens got free pair of Adidas
(1936 Olympics)
• Important day -- when golfer Arnold
Palmer shook hands with a lawyer
named Mark McCormack (IMG). This
was the dawning of television. Palmer
was the first millionaire athlete,
because he was sold as an endorser
and as a billboard
• This led to advertising money
pouring into sports telecasts, on
athletes, and in sports billboards
HISTORY OF SPORTS MARKETING
What can we learn from history?
•
•
•
•
•
•
•
•
•
•
Sports was a social event - and always will be
Sports is an integral part of life.
Sports is a big part of pop culture.
Sports is a unifying force - it brings us together.
Sports is compelling.
Sports attracts.
Sports is universal.
Sports is fun.
Sports sells.
Sports can help you sell.
WHY SHOULD A BRAND CONSIDER
SPORTS MARKETING?
WHY SHOULD A BRAND CONSIDER
SPORTS MARKETING?
Precisely because of what history has taught us:
•
•
•
•
•
•
•
•
•
•
Sports was a social event - and always will be
Sports is an integral part of life.
Sports is a big part of pop culture.
Sports is a unifying force - it brings us together.
Sports is compelling.
Sports attracts.
Sports is universal.
Sports is fun.
Sports sells.
Sports can help you sell.
Sports from an Advertiser’s Perspective
For a brand person or
advertiser, the part that
says ->
“Sports can help you sell”
-- is the most compelling
& most intriguing
How can sports help you sell?
The most obvious answer: The crowd
How can sports help you sell?
Sports promotes so many positive values
that can be aligned to your own corporate
values
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Discipline
Determination
Patience
Sportsmanship
Teamwork
Courage
Fun
(8) Hard work
(9) Perseverance
(10) Focus
(11) Camaraderie
(12) Competitiveness
(13) Health & Fitness
(14) Respect
The more important aspect: Creating the “pull”
Ok, so Sports Marketing works.
But…
How effective is it?
Does my brand really need it?
Should I invest in sports marketing?
How should I invest?
The Answer
It depends.
To get the answer, you have
to ask more questions:
What are you marketing / selling?
(e.g. The Rolex story)
Does sports fit your category?
Does sports fit your brand personality?
What’s the reason I am using sports?
Who’s deciding?
Is it the right time?
Is it sustainable?
Has it potential to grow?
CASE STUDY NO. 1
What are you selling?
Pacquiao = Cool gadget?
CASE STUDY NO. 2
Does it fit your category?
THE PBA / PBL
• In terms of promoting
basketball, it’s a success
• In terms of promoting the
brands, it’s a success – e.g.
Ginebra, San Miguel, Alaska,
Hardiflex, Hanford
• But for some brands, it
didn’t fit at all
CASE STUDY NO. 3
What is the reason for using sports?
THE 1st Smart
National Wall Climbing
Challenge
It wasn’t about wall climbing.
It was all about “Ain’t no
mountain high enough”
CASE STUDY NO. 4
“Right Timing”
McDonald’s “Jab Fair”
•At first it didn’t seem a fit
•But an endorsement deal
was brewing
•It was a fit to the endorser
(Pacquiao) and it was
a fit for the campaign
The 1st Boxing Lifestyle Fair
A Knockout of an Event!!!
Jab Fair Print Ad
A Great “Jab” Indeed
CASE STUDY NO. 5
Does it have potential to grow?
McDonald’s “Soccer Mania”
•Success in terms of promoting
soccer to the masses
•Success in generating
goodwill & promoting the
brand
•Success in really being
the first to promote
soccer to where the
people are.
•Success in being the first,
being the trailblazer
We kicked some ass.
Sales-generating event:
McDo Proof of Purchase 
condition to participate
And media noticed.
CASE STUDY NO. 6
Does it fit your personality?
Talk n’ Text “Pabuenas sa Tres”
•Success in terms of promoting
basketball to the masses
•Success in integrating TnT’s
support for basketball (PBA)
and leveraging on what they
are already spending on
•Success in sales
•Success in leveraging on their
brand’s personality
Talk n’ Text’s Most Successful Activation Campaign for 2011
Because of the success of “Pabuenas sa Tres,” Talk n’ Text
tapped Crush again in late 2011 – this time as an accredited
agency (not as an event organizer with a sponsorable event) in
the latter part of 2011 to extend the campaign, and this time,
entitled the event activation campaign to…
CASE STUDY NO. 6
Is it sustainable?
JVC Badminton Challenge
• Success in terms of promoting
and growing the sport
• Success in generating
goodwill & promoting the
brand
•
Success in implementing for a
couple of years
•
Did it lead to brand success?
Not sure.
(But to be fair, there are other factors)
Even if you ask the right
questions and answer them
well, can a sport marketing
campaign fail?
Absolutely.
• When endorser athletes get into trouble
• When teams or players suck
• When corporate and brand strategy
changes
• When it is implemented wrongly
• When it is not marketed properly
Sports Marketing
Mythbusters
Myth No.1
You have to be passionate
for the sport you choose to
leverage your brand on
Truth
Nope. The sport you like
or you play is, in all
likelihood, not the sport for
your brand
Myth No.2
Buy from someone who is
passionate about his sport
Truth
Not necessarily. The guy
will always be subjective
and not give you an
objective reason why you
need to sponsor his sport
Myth No. 3
The more popular the
sport, the better
Truth
Not necessarily.
Sometimes the best route
is to “adopt” a sport and
own it
Myth No.4
Sports marketing is all about
sports
Truth
Nope. Sports is about sports.
Sports marketing is business.
Sports is just the platform. At
the end of the day, it’s all about
the affinity you build, and the
numbers
Myth No.5
Sports marketing is all about
putting slapping my brand on a
player or a billboard
Truth
Nope. Truth is, sports
marketing is a numbers game.
Ultimate goal is a number –
either sales, or contacts, or
eyeballs
Myth No.6
Sports marketing allows me to
sell and therefore I can get
back my investment
Truth
No. Truth is, sports marketing
is ALSO about winning hearts –
and affinity. It’s also largely a
branding exercise
Myth No.7
Sports marketing is only for
those who know or like sports
Truth
Sports marketing is for any
brand marketer whose brand
can leverage on the values and /
or popularity that a sport
communicates
Myth No.8
Sports marketing is only for men
Truth
Sports marketing is a good
profession for women because it
requires attention to detail (and a
lot of knowledge in cosmetics)
Myth No.8
If you put a sport in a mall, it will
be a hit (and it will sell)
Truth
Nope. The sport has to be (1)
sexy; (2) has to have a loyal,
rabid following, albeit small (a
community); (3) has to be
sustained; and (4) relatable to
the generable public
Myth No. 9
Sports events are only for brands /
companies who are into sports
(e.g. Gatorade, Nike)
Truth
Nope. Louis Vuitton Cup. State
Farmers Insurance Cup, Fedex
Cup, Johnny Walker Super Tour)
Myth No. 10
Once a sport becomes big, it
can only get bigger
Truth
Nope. Badminton is now on a
downtrend. Wall Climbing is
almost zero. Kickboxing is also
so-so. Football is plateauing.
People are always trying to find
something new
Myth No. 11
If I am sponsoring / organizing
a sport that my CEO loves, I
should be ok
Truth
No, you’re not. CEOs should
not decide sports sponsorship
Myth No. 12
The bigger the investment in
sports, the better
Truth
Not necessarily (MBA)
Investment to Benefit Ratio in
Sports Marketing
Is it really worth sponsoring the Olympics?
Posted by: Jenni Baker
07 JUNE 2012
The Olympics – a major international sporting event
that comes around every four years. It’s no wonder
that brands are keen to pay big bucks to get involved...
But is it really worth forking out all that cash? What
value do brands really get out of it?
I came across some research earlier from Opinium
Research, who has been keeping a close eye on not
only this year’s official Olympic sponsors, but also the
brands that have no connection with the Games, but
that are benefiting from it.
Investment to Benefit Ratio in
Sports Marketing
Is it really worth sponsoring the Olympics?
Posted by: Jenni Baker
07 JUNE 2012
A survey of 2,000 people in the UK showed that only
10% of Brits are aware that BMW is an official Olympics
partner. McDonald’s and Coca-Cola came out on top as
the most recognised Olympic sponsors, with almost half
of the UK aware that they are partners, with the
awareness growing even more as we get closer to the
London 2012 Olympic Games. Coca-Cola, in fact, has
seen the biggest increase of 10 points between January
and April.
Investment to Benefit Ratio in
Sports Marketing
Is it really worth sponsoring the Olympics?
Posted by: Jenni Baker
07 JUNE 2012
But what is more interesting is that while brands pay a
lot of money to be associated with the Olympics, those
that aren’t involved are mistakenly getting credit from the
public.
A fifth (22%) of Brits mistakenly believe that EDF’s rival
British Gas is a partner to the Olympics. Meanwhile,
Visa, British Airways, Lloyds TSB and Coca-Cola may
not be so happy to find that their biggest rivals
Mastercard (20%), Virgin Atlantic (18%), HSBC (14%)
and Pepsi (11%) are thought of as being partners to the
Olympics.
Investment to Benefit Ratio in
Sports Marketing
Is it really worth sponsoring the Olympics?
Posted by: Jenni Baker
07 JUNE 2012
Conclusion:
It’s clear that the big global brands among us – such as
McDonald’s and Coca-Cola – have a lot to gain from
sponsoring a major sporting event such as the
Olympics, but, as this latest research shows, maybe
you don’t have to fork out the big bucks to increase
brand awareness.
The future of sports marketing,
both around the world and in
the Philippines
Sports marketing is a growing field
in the U.S. and around the world
In the Philippines, the time is
ripe for sports marketing, both
as a field of expertise – and as
a marketing platform - to grow
Why?
No. 1: Our victory in the 2005 SEA
Games-- sans basketball -- has
undoubtedly increased the interest in
other sports (and other sports stars)
No. 2: Filipinos are beginning
to excel internationally
No. 3: Now more than ever, companies (and
heads of companies) are seeing the
importance of supporting sports
And putting money where their mouth is
No. 4: As economy picks up, more people
will get into sports
No. 5: More people – especially influencers are getting into an active lifestyle. That’s
not a trend, that’s a total shift in behavior
A simple rule to follow
If your product is a sports product
(e.g sports shoe, hydration drink)
--> sports marketing should be the
main thrust of your marketing plan
If not, sports marketing can play a
minor role -- but it MUST still be
consistent to your brand essence &
personality (e.g. bathroom fixture
company sponsoring football)
My Personal Approach on Sport Marketing
Own a sport.
Does owning a sport work for brand?
Absolutely! It’s a proven formula












JVC Badminton Challenge
Milo Best Basketball Center
Milo Marathon
Nestea Beach Volleyball
Adidas Streetball
The Marlboro Tour
The Camel Motocross
Shakey’s V-League
Samsung Best of the Best Taekwondo
Run United
Cobra Ironman
Alaska Cup
All these brands have
gained immeasurable
equity by “owning” the
sports they adopted
And Abroad…
•
•
•
•
•
•
•
•
•
•
•
•
The Fedex Cup
Nissan Open
The Louis Vuitton Cup
Equity
The Buick Open
The Volvo Masters
The AT&T National Golf Cup
The Johnnie Walker Classic
The Volvo Ocean Race
The Standard Chartered Marathon
The OCBC Cycling Cup
The Barclays Premiere League
Nokia Football Crazy
that translated to $$$
In owning a sport, branding is not only
tolerated. Not only is it allowed. It is
expected. It is embraced.
Branding
Branding
Branding
Branding
Owning means you are “free” to
do what you want with the sport –
and with your brand
Blatant
Branding
The Question Is:
What Sport Should You Own?
Let’s start with-What Sport Shouldn’t Own
What Sport You Shouldn’t Own:
1.Basketball
2.Cycling
3.Running
4.Triathlon
5.Sport Climbing
6.Badminton
7.Soccer
Either they are
already owned,
saturated, or they
have been done
Own a sport that is not yet
owned by another brand.
Own a sport that is not
yet saturated.
Other things to consider in
deciding what sport to own
Own a sport that is sexy.
VS
Own a sport that embodies
your brand’s essence,
benefits, attributes, and
promise.
Own a sport that personifies
your target market.
Own a sport that your
brand can build up and
grow with
Own a sport that ideally
already has a passionate
community
Own a sport that is
familiar to, and can be
done by, Key Opinion
Leaders
Own a sport that
is familiar to, and can be
done by, the most
number of people
(especially among your
target market)
Own a sport that
is not too complicated
Easy to learn, easy to transport, easy to be good at
Own a sport that
is not too expensive to
implement
Own a sport that can
serve as an anchor or
platform for a
campaignable /
sustainable message
And there goes the final
buzzer!
Thank you, folks!