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 V- League, 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) Discipline (8) Hard work (2) Determination (9) Perseverance (3) Patience (10) Focus (4) Sportsmanship (11) Camaraderie (5) Teamwork (12) Competitiveness (6) Courage (13) Health & Fitness (7) Fun (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.