Ambush Marketing

I wanted to cover a couple of topics on the Olympic sponsorship and
ambush marketing lastnight. After a 2-hour exam and then
talking about the presentation next week, we ran out of time.
I felt it was more important to ensure that you're comfortable with
what's expected from your presentations than to spend time on a new
topic. I am glad that we have this medium for any unfinished businesses. 

I hope it's clear to you that the group discussion where I go around
each group and spend some time together is another major
part of our learning experience. By addressing your group-specific
questions and issues, I am hoping that you familiarize yourselves with how
an effective brainstorming takes shape and also practice applying the concepts
we learned in class to a real-life topic.

As I mentioned briefly in class, I care about your success beyond the classroom
boundaries and the constant application of classroom materials to real-world
situations will certainly contribute towards that goal, I believe.

I am attaching three files on this blog: (1) An overview of ambush marketing
(2) the legal perspective of it, and then (3) a real Coke ambush case that took place
last fall. The second article really provides an excellent
background picture of the Olympic marketing as well.

I've worked for two companies
that really share contrasting philosophies on the global sponsorship.
Coke is the epitome of "doing things by the book", if you will, paying
sponsorship dollars to become the official sponsor of the Olympics or the
FIFA World Cup, and to work creatively within the sponsor parameters. 

Nike, on the other hand, has long been a firm believer that spending
millions of dollars on sponsorship fees was a waste of money and that they could
outsmart and outdistance the competition by investing that money on
elite teams, athletes and ambush marketing. Phil Knight believes that
the sponsorship game is won and lost on the pitch - associating the Swoosh
with jaw-dropping performances and heart-moving stories of the athletes instead.
Nike's emphasis on the authenticity and respect for the game is probably
what drove its incredible growth in the early years. They managed to make
strong statements about their creativity through a number of ambush antics as well.
Surely, it also invites debates about their ethical orientation, but
the majority of its core target don't seem to care...

The last Powerpoint brings up an interesting ambush tactic by Pepsi in China.
In an attempt to weaken Coke's Olympic sponsorship in Beijing, Pepsi China
folks have come up with RED can packaging - which is as scandalous
and unthinkable in the beverage industry as Coke's tampering with its
traditional Red and White logo inside the stadiums.
The file will show you how Coke tries to counter this move
and in my opinion, it's a battle of "Dare vs. Red". "Daring" Chinese consumers
to participate in the new Red Movement is Pepsi's gig, while Coke
focuses NOT on the notion of "Daring" but on the authenticity of "Red"
in order to fend off Pepsi's ambush attack. It's an interesting chess-game
and the one that you will see in the real, marketing war-rooms
ALL THE TIME.

Please ensure that you download these files and take some time digesting
the contents. I would ask you to share your thoughts on these topics actively
on the blog before next week. Otherwise, we would have to do it in class
after all the presentations due next week which will be a physical challenge, I assure you :-)

Enjoy the topic. Thanks.

Download ambush_marketing.ppt

Download legal_aspect_of_ambush_marketing.pdf

Download dare_vs. Red.ppt

Comments

[Stephen Arakelian]

Ambush marketing, while not illegal, borders a fine line between good business and unethical. For the company who is doing the ambush marketing, it is usually very creative and is very economical (capitalizing on something you didn't pay for and frankly maybe not have been able to afford in the first place). On the other hand, putting yourself in the shoes of the company who paid for the "official sponsor" status, I would be upset if others were infringing what you paid millions of dollars for.
I really enjoyed the YouTube examples of guerilla marketing. They were very clever and demonstrated great imagination. Very eye-catching.

[Sean Moler]

Wow. You have to think that Coke never in their wildest dreams saw that one coming. I like their response to ride the red theme, and remind drinkers who the original is. But brilliant timing by Pepsi in my opinion...to use the swelling Chinese red wave of Olympic pride as a platform to hijack Coke's sponsorship, and then "dare" them to do it...it'll be interesting to see how it plays out.

I agree with Stephen on the Guerilla Marketing YouTube. Some awesome advertising ideas, and made me think that this has to be where we are headed...companies will need to rely more and more on thinking WAY outside the box to cut through the clutter, and "shocking" the consumer may be the best way to get your message across. I liked the Luftansa soccer nose.

[Scott Simmons]

Ambush marketing is a very sensitive subject. Like Stephen said, it is easy too see both sides of the controversy. What I really found interesting were the You Tube clips. Clever advertising ideas and commercials always seem to be major hits. However, companies must remember to get their product remembered and not just make the audience laugh. It would be terrible for someone to think what a great commercial and then not know what it was for.

[M. Clark]

Ambush marketing is a very creative endeavor that remains legal today. Whether or not it is unethical is for each individual to explore. However, not being allowed to bring a particular food or beverage not officially associated with an Olympic event is downright obsurd the case in Athens. Some people spent all of their capital just to make to the country and the event. They should not be required to spend even more money on over-priced food that has a sponsor's name on it. As far as I am concerned, this should not equate to ambush marketing and must be done away with. Most of the time, these people have no idea what the problem is and in turn begin to see a major problem with that particular brand. I understand that these companies spend a tremendous amount of money, but they are also making a large amount of money by being there. But, that aside, one should be able to save money when traveling. Additionally, if I were to travel to Germany for the World Cup, I would want a Helles or a Hefeweisen to drink, not a Budweiser. It is all about experiencing different cultures and when a particular brand or company attempts to interfer with this, it is a down right ambush to our inalienable rights as human citizens. One last thing, the AMEX slogan was sweet.

[Alex]

I think that Pepsi's idea is great from two aspects: one being that Red is the "unofficial-official" color of China. The other obvious factor is that Coke's predominant color is red.
I don't like this move by Pepsi. I don't feel there is a lot to gain by infringing on Coke's colors.
I enjoyed the power point. I remember being in Sydney a few years ago and seeing that soccer ad over the road. I am not sure that is the same one, but similar. I remember thinking what a great idea, but also thought there was a good possibility of it being a major distraction.