Post on 20-Nov-2014
transcript
AMBUSH MARKETING
It gives me immense pleasure to present this project on Ambush Marketing to
the readers
Ambush marketing is very systematic and planned effort by an organization to associate
themselves not directly with an event in order to get at least some of the recognition and
benefits that are associated with being an official sponsor
Ambush marketing takes place when a corporate firm is looking forward to utilize
publicity value of an event. Ambush marketing is related to setting up some activity
which helps in making use of event and interest in it, rather than shelling out for direct
sponsorship.
Ambush marketing is something that is happening, every time during the major sports
events. The major involvement is taken by the cola companies like Pepsi and Coco Cola
where as companies like Nike and Reebok have their own ambush marketing strategies.
This project covers the story of almost all the major players with the event examples
and appropriate case studies.
Hope this project proves to be of some help in the near future to the readers
- 1 -
PREFACE
AMBUSH MARKETING
This project explains the term “ambush marketing” and how MNC’S like Pepsi ,Coco
Cola Reebok, Nike, Vodafone are involved in ambush marketing
What strategies they have undergone?
In which event?
Were they successful?
What was the effect on competitor?
The project also covers the types of ambush marketing
How to go about it?
Who are the masters in it?
Objectives of project
To know about the term ambush marketing
To know the benefits of ambush marketing to the companies, organizers etc
Can I practice Ambush Marketing in my own business?
How ambush marketing is beneficial to a marketing manager?
The steps in ambush marketing
To know the difference between corporate sponsorship and ambush marketing
During CRICKET WORLD CUP 07 in West Indies the different advertisement
shown on television and various articles in newspaper with so much attraction
and glamour in it help me to take decision for selecting the topic for the project.
- 2 -
EXECUTIVE SUMMARY
AMBUSH MARKETING
This project is a extract of various news-paper articles, websites, books, personal
experience
Not many people know about ambush marketing
Ambush marketing is practiced only by the top MNCS
Also in top MNCS decision of ambush marketing is taken by the
top marketing managers
Consultation work have been done for the project purpose but
Ambush Marketing is just a unknown term for majority of them
Because of the above mention reason data from companies and
the consumers or the local people is not possible
But sincere effort has been taken to complete the project and to make
reader understand the term ambush marketing
- 3 -
LIMITATIONS
AMBUSH MARKETING
SECTION TOPIC
NO.
SUB
TOPIC NO.
TITLE PAGE NO.
I. AN INTRODUCTION TOAN INTRODUCTION TO
CORPORATECORPORATE
SPONSORSHIPSPONSORSHIP
1 CORPORATE
SPONSORSHIP
2. PROCESS OF
CORPORATE
SPONSORSHIP
3. BENEFITS OF
CORPORATE
SPONSORSHIP
3.1 BENEFIT TO THE
SPONSOR
3.2 BENEFIT TO THE EVENT
ORGANISOR
- 4 -
INDEX
AMBUSH MARKETING
4. DRAWBACKS AND
THREATS OF
CORPORATE
SPONSORSHIP
4.1 TO THE EVENT
ORGANISOR
4.2TO THE SPONSOR
II. AMBUSH MARKETING:AMBUSH MARKETING:
ARE YOU THERE WHENARE YOU THERE WHEN
YOU ARE NOTYOU ARE NOT
5. AMBUSH MARKETING
5.1 AMBUSH MARKETING:
THE CONCEPT
5.2
AMBUSH MARKETING:
THE TYPES
6 AMBUSH MARKETING:
HOW TO GO ABOUT IT
7 THE ESSENTIALS OF
- 5 -
AMBUSH MARKETING
AMBUSH MARKETING
IIITHE MASTERS OFTHE MASTERS OF
AMBUSH MARKETINGAMBUSH MARKETING
8 PEPSI, VODAFONE &
NIKE: THEY JUST DO IT 8.1 PEPSI: YEH DIL MAANGE
MORE, AHA!!!8.2 VODAFONE: ADVANTAGE
VODAFONE8.3 NIKE: JUST DO IT
9 COUNTERING AMBUSH
MARKETING
IV THE DANGEROUS GAME
{AMBUSH MKTG. AT
VARIOUS SPORTS
EVENTS}
10.AMBUSH MARKETING AT
VARIOUS POPULAR
SPORTS EVENTS
10.1-10.11 FROM NFL-1995- TO
CRICKET WORLD CUP
2003
- 6 -
AMBUSH MARKETING
V PROS CONS ANDPROS CONS AND
LEGALITIESLEGALITIES
11 THE LEGAL ASPECTS OF
AMBUSH MARKETING12 POINTS IN FAVOUR OF
AMBUSH MARKETING13 POINTS AGAINST
AMBUSH MARKETING
VI CASE STUDIESCASE STUDIES
14 CASE STUDIES : AMBUSH
MARKETING AND
RELATED ASPECTS
14.1-14-3 FROM AMBUSH
MARKETING V/S
CORPORATE
SPONSORSHIP
TO
STANDOFF BETWEEN
ICC AND CRICKET
PLAYERS
- 7 -
AMBUSH MARKETING
15. ANNEXURE 1
16. REFERENCES
SECTION I
- 8 -
AMBUSH MARKETING
AN INTRODUCTIONAN INTRODUCTION
TOTO
CORPORATE CORPORATE SPONSORSHIPSPONSORSHIP
- 9 -
AMBUSH MARKETING
Corporate sponsorship can be defined as:
"Corporate Sponsorship means associating a company or a company's brand with an
Event to reap benefits associated with that particular event. This is done by paying
money or making concessions to the Event organizers. This gives the sponsor a right
to use the event to market the company or company's brand."
It can also be defined as:
"A marketing tool that helps a company to form or enhance its image or market its
products or create or enhance the brands of the company by associating itself with an
event and using it to do so."
Thus, Corporate sponsorship means using the attention derived by way of the event to
benefit the firm and paying money or making concessions for being allowed to do so.
- 10 -
1. CORPORATE SPONSORSHIP
AMBUSH MARKETING
STEP I - Identifying Sponsorship Areas:
The Event Organizers identify various categories for sponsorship in addition to the main
sponsor and co-sponsors.
STEP II - Identifying Sponsorship Details:
The organizers then identify the benefits it can give the sponsors (main sponsors, co-
- 11 -
Identifying Sponsorship Areas
Identifying Sponsorship Details
Approaching Corporates
Evaluation of Proposal
Negotiations
Signing of Contract
Implementation of Contract
STEP III
STEP IV
STEP V
STEP VI
STEP VII
Corporate Sponsorship Process
STEP I
STEP II
2. THE PROCESS OF CORPORATE SPONSORSHIP
AMBUSH MARKETING
sponsors and sponsors for various categories) and the price for these benefits.
STEP III - Approaching Corporates:
The Event organizers then approach the companies it wants to target and which fall
under the various categories for sponsoring the event.
STEP IV - Evaluation of the Proposal by Corporate firms
The Corporate firm then evaluates the proposal on whether associating with the event
would benefit the firm's image and the cost of doing so.
STEP V - Negotiations
Negotiations on the terms of the contract, the benefits and the price takes place between
the Corporates and the Event Organizers.
STEP VI - Signing the Contract
The next step is signing of Contract that lists down the benefits that will be received by
both the parties and the rights of the sponsor.
STEP VII - Implementation of Contract
The final step is implementation of the contract, which involves association of the
sponsors with the event and preventing competitors of the sponsors from using the event
signs and symbols for promoting their brand.
- 12 -
AMBUSH MARKETING
Corporate sponsorship is beneficial to both the sponsor in attaining its marketing
objectives and to the event organizer to make his event happen.
Audience awareness:
When people are relaxing they can imbibe information faster. This helps the brand
message penetrate effectively into the consumer psyche.
Image:
Sponsorship leads to the brand’s image enhancement by virtue of association with a
high profile event.
Segment targeting:
Sponsorship enables the marketers to target their consumers in an efficient & relevant
manner. So if Mercedes Benz wants to reach CEOs, they can do so more efficiently by
sponsoring a golf tournament than by advertising on TV.
Alternative:
Sometimes companies have no other avenue for reaching the masses due to
governmental restrictions on advertising etc. (for example many tobacco & alcohol
companies cannot directly advertise)
Emotional Touch:
Sponsoring an event, which is close to the hearts of your target audience, gives an
emotional touch to the brand of the sponsor.
- 13 -
3.1TO THE SPONSOR
3. BENEFITS OF CORPORATE SPONSORSHIP
AMBUSH MARKETING
Financial Support:
Corporate sponsorship gives a financial support to the event organizer, which makes the
event possible. Without the aegis of sponsors most events including the mega events
like FIFA's FOOTBALL WORLD CUP would not take place.
Gives Credibility:
If an event is sponsored by a major and a well reputed Corporate house then it renders
credibility to the Event.
Helps in Marketing the Event:
Event sponsors will go about promoting their association with the event. This will
indirectly be of help in the marketing of an event.
- 14 -
3.2 TO THE EVENT
AMBUSH MARKETING
Every coin has two sides. Along with the benefits attention has to be set on the
Drawbacks associated with an event.
Dictating Terms:
Sponsors when they put money into an event they obviously, expect something in
return. Most event organizers face the problem of the sponsor dictating terms.
Diversion from the Event:
Event organizers are required to display the logos and banners of sponsors. In addition
to this, they may have to announce the name of the sponsors on a regular basis (as per
the terms of the contract). This may result in a diversion from the actual event. Not
many spectators or audiences will like this.
Dilution of Control:
There is a dilution of Control from the Event Organizers point of view. Sponsors gain
more importance than the Event Organizers.
Success related to event:
Success of a sponsorship is directly related to the success of the event being sponsored.
If the event being sponsored has failed to draw crowd or attention or has been a failure
then the sponsors’ brand will suffer.
Audience's reaction:
The distraction that is being caused due to the sponsor or his brand may result in an
- 15 -
4.1 TO THE EVENT
4.2 TO THE SPONSOR
4. DRAWBACKS & THREATS OF CORPORATE SPONSORSHIP
AMBUSH MARKETING
unfavourable reaction from the audience. This may be in contradiction with what the
sponsor wanted to achieve with the sponsorship.
Price of Sponsorship:
The price of Sponsorship has spiraled over the years. It takes millions of Dollars to
attain a Sponsorship at a prestigious event like the World Cup Soccer or the Olympics.
It cost Kodak $40 million back in 1996 Atlanta Olympics to become a sponsor in its
category.
Poor Sponsorship Packages:
The sponsorship deal in any event is limited to a few assets and rights that can be given
to the Sponsor. A sponsor does not have the legal backing nor the protection beyond
them.
The biggest threat to Corporate Sponsorship - to both the sponsor and the event
organizer is AMBUSH MARKETING.
- 16 -
AMBUSH MARKETING
SECTION II
AMBUSH MARKETING:AMBUSH MARKETING:
ARE YOU THERE WHENARE YOU THERE WHEN
YOU ARE NOTYOU ARE NOT
- 17 -
AMBUSH MARKETING
The Oxford dictionary defines Ambush as - "surprise attack by persons lying
concealed."
Thus, Ambush marketing can be understood as a surprise attack on an event sponsor by
its competitor.
The official definition of Ambush Marketing can be stated as follows:
"Ambush marketing is the planned effort by an organization to associate themselves
indirectly with an event in order to gain at least some of the recognition and benefits
that are associated with being an official sponsor"
Ambush marketing takes place when a trader seeks to utilise the publicity value of an
event, for instance - a major sports tournament or a concert, to gain a benefit from it
despite, not having any involvement or connection with that event and more
particularly, having made no financial contribution to entitle him to derive benefit from
it. Ambush marketing is a radical concept which involves setting up some activity that
makes use of the event and the interest in it, rather than shelling out for direct
sponsorship.
Example: A Pepsi hot air balloon flying above Sharjah, on the day of the Coca Cola
Cup Final.
- 18 -
5. AMBUSH MARKETING
5.1 AMBUSH MARKETING: THE
CONCEPT
AMBUSH MARKETING
Ambush marketing can manifest itself in two manners.
FORGING:
Often a major event has a name, logo, or other insignia identifying it. Unauthorised
persons use these insignia, or insignia, which are sufficiently similar to the authentic
insignia to cause confusion. In this form of ambush marketing the ambush marketer
misleads the public into thinking that he is an authorised sponsor or contributor
associated with the event.
Example:
During the Football World Cup Collins, a beer company used the marks associated
with the World Cup and was promoting tickets. FIFA fought the case in an Irish
court and won the case against Collins.
INTRUSION
In this form of ambush marketing, the ambush marketer seeks not to suggest a
connection with the event but rather to give his own name, trade mark, or other
insignia exposure through the medium of the publicity attracted by the event; this is
done without any authorisation of the event organizer. In this type of Ambush
Marketing the Ambush Marketer strives to use the event and the attention gained via
the event to promote his product.
- 19 -
AMBUSH MARKETING
FORGING INTRUSION
5.2 AMBUSH MARKETING: THE TYPES
AMBUSH MARKETING
Example:
Pepsi during the 2002 FIFA World Cup did not claim that they were supporting the
World Cup. However, it used the event to promote their product.
"They don’t support football the way it should be supported, and yet they are
promoting an association with it, for example, by having a very nice and clever ad
with Sumo wrestlers also involving famous Football stars."
- CEO of FIFA Marketing, Patrick Magyar
The Second form of Ambush Marketing (Intrusion) is more popular with marketers
than the First Form (Forging) due to the legal implications of the First Form
(Forging) of Ambush Marketing.
- 20 -
AMBUSH MARKETING
Ambush Marketing does not have a set procedure. However, there is a standard set of
procedures followed by companies in the past.
Step 1: Establish your Marketing Objectives
The first step is common to whatever Marketing or Promotional Strategy you
adopt. You need to identify the Marketing Objectives of the firm which are
based on your overall Corporate Objectives and on which will be based your
Marketing Strategy. Such a strategy should include identifying your Target
Audience, brand image and brand positioning, etc.
- 21 -
Establishing Marketing Objectives
Establishing Promotional Strategy
Selection of an Event
Why that Event?
Willingness to Spend
Implementing
STEP III
STEP IV
STEP V
STEP VI
How to go about Ambush Marketing
STEP I
STEP II
6. AMBUSH MARKETING: HOW TO GO ABOUT IT
AMBUSH MARKETING
Step 2: Establish your Promotional Strategy
This involves formulating a strategy for Promoting your brand and achieving the
objectives that were set during the previous stage. A decision needs to be made
on how to promote your brand; advertising, corporate sponsorship, etc.
Step 3: Selection of event
After Corporate Sponsorship or using events as a medium of promotion has been
identified as a promotional strategy a decision needs to be made on - which
event. This stage can be broken into two steps
a) Type of Event: Identifying the type of event you want to associate your
brand like Sports or Cultural, etc. This is based on your brand positioning
objectives.
For e.g. Nike has positioned its brand as a Sports brand therefore, it has always
been associated with sports event
b) Specific Event: After the Event type has been identified a decision needs to
be made as to, which particular event should be selected for brand promotion.
for e.g. After Nike has identified Sports as the Event type it wants to target, the
next step is to select a specific event, like Ice Hockey or Soccer World Cup.
Step 4: Why do you want to associate yourself with the event
An obvious question that needs to be asked is - Why do you want to associate
your brand with a particular event? Is it essential for your company? Will it give
the company the leverage it wants? Do you think that associating your brand
whether directly or by ambushing will help you position your brand better? Is it
in co-operation with the image you want to create your brand? If the answers to
the above questions is yes. Then, the option with you is to either to sponsor the
- 22 -
AMBUSH MARKETING
event or to use Ambush Marketing.
Step 5: How much are you willing to spend?
This, alongwith other factors will determine whether Sponsoring an event or
Ambushing an event is the option to be selected. If you think sponsoring the
event is worth the investment and it helps you achieve what you want to achieve
from the brand then go ahead with it. However, beware of your competitors who
will be trying to Ambush you. If you actually do sponsor the event then ensure
there is enough protection against potential Ambushers.
However, if you think the investment required in sponsoring the event is not
worth it and will not help you achieve what you wanted to, from the event. Then
Ambush marketing might be the best bet available to you.
Step 6: Implementing
The last and final step in Ambush Marketing is Implementing your strategies.
Ambush marketing needs to be creative and the ramifications of your strategy
needs to be assessed. Ambush Marketing does not have a set procedure so, your
creativity matters the most. Ambush Marketing implementation has to have a
few essentials.
- 23 -
AMBUSH MARKETING
Though Ambush Marketing does not have a set procedure, there are a few essential
things that form part of a successful Ambush Marketing Campaign.
Catch your competitor unawares:
Timing of your attack or Ambush needs to be precise. Don't give your competitor
(Event sponsor) the time to react to your ambush, nor should he be given the time to
lobby with the Event organizer to keep a few safeguards in the Event.
Creativity:
Creativity stands for 'Find out new ways of doing the same thing'. Constantly be on the
look out for new ideas. Your competitor has the advantage of being officially associated
with the event thus, Creativity is the only thing that could give you an edge over your
competitor.
Rope in the Players:
If you can't associate your brand with an Event then, the best thing is to associate your
brand with the players playing in that Sports Event. Pepsi, during the FIFA WORLD
CUP 2002 used the likes of Beckham and Roberto Carlos along with other big names in
Football to associate itself with the World Cup. They did it successfully to Ambush the
official sponsor Coca Cola.
Capture media time:
Most successful Ambush Marketing attempts were successful because they captured the
media time during, before and after the Event. The likes of Pepsi have been successful
- 24 -
7. THE ESSENTIALS OF AMBUSH MARKETING
AMBUSH MARKETING
because they captured the media time during, before and after the event.
Don’t play against the law. Play with it:
This is the most essential part of a successful Ambush Marketing. Do not use the logo
or symbols or insignia associated with the event to promote your brand. This may lead
to legal hassles due to Intellectual Property Rights infringement. Intrusion is the best
form of Ambush marketing that needs to be adopted.
- 25 -
AMBUSH MARKETING
SECTION IIISECTION III
THE MASTERS OFTHE MASTERS OF
AMBUSH MARKETINGAMBUSH MARKETING
{ A SPECIAL STUDY OF NIKE, PEPSI & VODAFONE ON THEIR
AMBUSH MARKETING TACTICS}
- 26 -
AMBUSH MARKETING
There is 'NOTHING OFFICIAL ABOUT IT' when it comes to Pepsi and its
Marketing strategies. Pepsi has been a major contributor of finance to sporting facilities.
Pepsi has over the years used Sporting events to promote and enhance its brand image,
be it Officially(Official sponsor) or unofficially(Ambush Marketing).
The two major events where Pepsi has successfully resorted to AMBUSH
MARKETING have been the ICC CRICKET WORLD CUP in 2007 and the FIFA
FOOTBALL WORLD CUP in 2002.
Well there is Nothing Official about the fact that Pepsi was present at the ICC
CRICKET WORLD CUP 2007 whether, officially or unofficially.
Official Sponsor:
Coca Cola was the official soft drink of the ICC CRICKET WORLD CUP. Coca Cola
started promoting itself as the Official Soft drink of the ICC Cricket World Cup held in
West Indies.
Ambush Strategy:
Pepsi responded to the Coca Cola promotion of the official Soft Drink of the Cricket
World Cup, 2007 by carrying out a mega media campaign with the punch line
- 27 -
PEPSI AT ICC CRICKET WORLD CUP 2007
8. PEPSI, VODAFONE & NIKE:THEY JUST DO IT
8.1 PEPSI: YEH DIL MAANGE MORE, AHA!!!
AMBUSH MARKETING
NOTHING OFFICIAL ABOUT IT. To carry out its campaign Pepsi roped in the
SACHIN TENDULKAR. The use of Sachin Tendulkar to promote its brand by using
the attention gathered because of the event undermined the success of Coca Cola as an
Official Sponsor.
Pepsi was at its AMBUSHING BEST at the FIFA FOOTBALL WORLD CUP, 2002
held in Korea and Japan.
Official Sponsor:
Millions of Dollars were spent by Coca Cola to get the Official Sponsorship of the FIFA
FOOTBALL WORLD CUP, 2002. But at the end of the event Pepsi went with the
honours of capturing more attention than Coca Cola got
Ambushing Strategy:
Pepsi once again used the star power of Major Footballers like David Becham, Roberto
Carlos and other well known Footballers. It came up with an innovative idea of a match
between the Football Stars and Sumo Wrestlers, the prize for the winner being PEPSI.
Though the Sumo Wrestlers won the match, the real winner was Pepsi.
REASON BEHIND PEPSI's SUCCESS
The main reason behind Pepsi's success at Ambush Marketing was that it did make any
direct reference to the event. It merely used the event to successfully capture audience
attention. What made catching attention easier was that it had innovative and creative
media campaign and it used the Stars of the event to promote its brand.
- 28 -
PEPSI AT FIFA FOOTBALL WORLD CUP, 2002
AMBUSH MARKETING
Marketers always look for creative ideas to capture audience's attention.
Imagine, two
streakers running
nude in the middle of
an exciting Rugby
Match. That's exactly
what Vodafone did to
try and attract audience's attention.
Two streakers bearing the Vodafone logo on their bodies invaded the pitch during
the second half of a Rugby match between New Zealand and Australia in Sydney.
The streakers ran up to and around New Zealand (All Blacks) player Andrew
Mehrtens as he was preparing for a crucial penalty kick.
Though Australia won the match 16-14 the real winner in terms of capturing public
attention was VODAFONE. This is a case of Ambush Marketing as the official
sponsor of the event was TELSTRA an Australian Telecom company, which is
in direct competition with Vodafone.
- 29 -
8.2 VODAFONE: ADVANTAGE VODAFONE
AMBUSH MARKETING
Nike leads the pack when it comes to Ambush Marketing. A Swoosh here and a
swoosh there. Nike always manages to find a way to use a popular event like the
Olympics to promote its brand without actually sponsoring the event in any
capacity.
Boston Marathon is a 26
mile marathon race. One
such race took place on
April 16, 2007. Adidas
was the official footwear
sponsor of the event.
Adidas had put up
hoardings all over the race track. However, Nike came up with an innovative
strategy which involved having a billboard at the subway tunnel which fell in the
path of the race track. Nike had used loads of dirty socks and had painted the Nike
Swoosh and the event date on it. The hit and run campaign included the use of
slogan - right down to the dirty socks
Nike during the World Cup invested in some kind of five-a-side event, as well as
putting electronic score displays with instant updates on the sides of buses.
- 30 -
NIKE AT THE BOSTON MARATHON - 2007
NIKE AT FOOTBALL WORLD CUP - 2002
8.3 NIKE: JUST DO IT
AMBUSH MARKETING
Nike during the Salt Lake City 2002 Winter Olympics sponsored the teams
participating in the Salt Lake City Ice Hockey Event.
In past years, the Olympics have been a playground for ambush marketing techniques.
For example, Nike, not an official sponsor of the 1996 Summer Olympics, constructed a
building overlooking the Olympic Park to associate themselves with the festivities of
the Olympic Games. Nike not only bought up all the out door poster sites in Atlanta, but
set up its own “Nike village” just next to the official Olympic sponsor’s village.
- 31 -
NIKE DURING SALT LAKE CITY - 2002
NIKE AT OLYMPICS
AMBUSH MARKETING
CONTROL MEDIA ADVERTISING
The complete right of an event is with the organizers of the event. Television rights are
given a Television Company (on paying a fee) by the event organizers. Therefore, the
organizers should try and put a clause in the contract with the broadcasting company
refraining them from airing the advertisements of competitors of official sponsors.
This needs to be done because most of Ambush marketing is done through media and
broadcasting companies. Therefore, if this can controlled then Ambush marketing can
be kept in check.
CONTROL PLACEMENT OF HOARDINGS AND BOOTHS IN AND AROUND THE
EVENT LOCATION
Nike, during the Los Angeles Olympics in 1984 erected huge wall murals near the Los
Angeles Coliseum, which prominently displayed Nike track and field athletes. Another
strategy used by ambushers is to use illustrations or photographs of places, buildings,
etc, that are associated with an event in advertising as background to the ambusher's
product. This undermines the image that the sponsor wants to enhance with respect to
the event. The event organizers (especially the big ones) should control the area in and
around the event to counter such strategies. At Athens, the IOC is trying to protect the
rights of its “world wide partners” and other sponsors. An IOC sports person says: “We
are very stringent. From the beginning, the host country from the Olympics has a
contract which induces clauses about brand protection.”
- 32 -
9. COUNTERING AMBUSH MARKETING
AMBUSH MARKETING
There are strict rules that allows only sponsors to associate themselves with the games.
As far as possible, the host city needs to have a “clean area” around it, where bill boards
only carry advertising from official sponsors.
STOP THE PLAYERS FROM PROMOTING THE AMBUSHERS BRAND
The International Cricket Council (ICC) stopped the players of participating nations
from promoting the brand of competitors of the official sponsors a month before, during
and a month after the event. This created a row between the organizers (ICC) and the
players. The terms of contract were then settled to during the event and 17 days after the
event no player was allowed to advertise for any rival company of the sponsor.
TAKE ACTION
Action needs to be taken, wherever possible, against the companies that use the Event
logos or symbols or insignia to promote its brand or for those who violate the
Intellectual Property rights. More acts should be developed to ensure the protection of
sponsors. The United States of America has an act dealing with the violation of such
marketing principles as conveying the false message that a company is an official
sponsor or affiliate when, in fact, it is not. If the event organizer isn't intent on taking
actions then, the sponsors whose rights are violated should be empowered to do so.
ACTIONS AGAINST AMBUSHERS WILL ACT AS A DETERRENT FOR ANY
SUCH ACTIONS IN THE FUTURE.
CREATE AN ANTI AMBUSH CAMPAIGN
Event organizers should create an anti Ambush campaign by making ads and PR
strategy to renounce Ambush Marketing strategies. It should also resort to Press
- 33 -
AMBUSH MARKETING
Conference renouncing actions of Ambush Marketers. An awareness programme should
be carried out to ensure that the audience are aware of who the actual sponsors are. The
campaign should focus on the negative effects such Ambush Marketing Strategy have
on successful conducting of the event. This will act as a deterrent for Ambush
Marketers.
NO REPRESENTATION OF COMPETITORS WHATSOEVER
There should be no representation of competitors (of sponsors)whatsoever, in the event
in any form. The players or teams should be stopped from sporting logos of the
competitors. Neither should the logo or any mention of the competitor be present in any
part of the area where the event takes place. The International Cricket Council (ICC)
during its champions trophy in Srilanka stopped the Indian Cricket team from sporting
the Logo of Sahara group which was a competitor of the official Airline, South African
Airline.
SPECTACULAR TICKETING POLICY :
There should even be a spectacular ticketing policy which means that people can be
prevented from bringing certain items into the viewing areas. The IOC keeps a sharp
lookout for infringements, both by non sponsors and by sponsors who might bend the
rules.
- 34 -
AMBUSH MARKETING
SECTION IV
THETHE
DANGEROUSDANGEROUS
GAMEGAME
{ A SPECIAL STUDY ON PRESENCE OF AMBUSH MARKETING AT
VARIOUS SPORTS EVENTS LIKE OLYMPICS, FOOTBALL, NBA,
CRICKET}
- 35 -
AMBUSH MARKETING
Jerry Jones' was the owner of an American Football Club, Dallas Cowboys. His
National Football League marketing philosophy - making ambush marketing
sponsorship pacts with NFL non-sponsors Nike and Coca-Cola Co.
The National Football League slapped a $300 million lawsuit on Mr. Jones for his
alleged role in Ambush Marketing.
The actions taken by the NFL prompted American Express Co. to reconsider its multi
year deal worth $15-20 millions with Mr. Jones to become a sponsor of Texas Stadium.
During the weeks that followed, NFL Properties, sponsors, and media partners created a
television program with Visa USA-Fox teaming up to air it. The program "Call for
Quarterbacks" was aired during Fox's prime-time programming. Celebrity quarterbacks
were the guest star in the Fox program. A promotional contest preceded the program
with Visa running a spot each night.
During the 1995 season of NBA marketers from PepsiCo to Burger King Corp.
launched high profile sports campaigns without paying the sponsorship money. Official
sponsors like Coca-Cola Co. and McDonald's Corp. did nothing to defend their
- 36 -
10.1 Ambush Marketing and the NFL, 1995
10.2 Ambush Marketing and the NBA, 1995
10. AMBUSH MARKETING AT VARIOUS POPULAR SPORTS EVENTS
Nike Ambushing Adidas at Salt Lake City
AMBUSH MARKETING
positions with more powerful tie-ins or re-evaluation to their sponsorships altogether.
Taco Bell took advantage of the National Basketball Association labor dispute to
organize a pay-per-view bout between endorser Shaquille O'Neal and Hakeem
Olajuwon. Taco Bell hinted at a live match up months ago starting the two NBA
centers in a TV spot months ago. The two stars competed for a $1 million prize late in
the year. The event also had place for secondary sponsorship positions, including
Shaq's footwear sponsor. Reebok International and Spalding Sports Worldwide, which
had endorsement deals with both stars were also involved.
Taco Bell also sold specially priced food packages and gave away collectors cups.
Taco Bell also did the re-broadcasting of the event and also sold it on video.
AMERICAN EXPRESS VS. VISA
In the 1994 Winter Olympics in Norway, American Express's advertising campaign was
"If you're traveling to Lilehammer, you'll need a passport, but you don't need a Visa."
Visa was the official sponsor of those Olympic Games.
NIKE: IT JUST DOES IT
At Salt Lake City, 2002 (Winter Olympics held in
Salt Lake City, USA) marketing games are played
with as much vigour as real games.
Despite, Nike not being an official sponsor for the
games every hockey team at the Games is
outfitted from head to toe, inside and out, by Nike.
- 37 -
10. 3 Lilehammer Winter Olympics, 1994
10. 4 SALT LAKE CITY - 2002
AMBUSH MARKETING
With, the cost of sponsorship ranging from $5 million to $50 million (depending on the
level of sponsorship and coverage).
Nike did not have to pay anything for the sponsorship yet the coverage it got out of
athletes sporting Nike swoosh was more than what any official sponsor would hope to
get out of an event. A survey conducted by MSNBC among spectators revealed that
people conceived Nike to be the sponsor of the games.
Another company that used Ambush Marketing to get leverage out of the Event was
Columbia Sportswear. Columbia Sportswear chose an even cheaper option than the one
chosen by Nike. NBC announcers seen broadcasting every evening - sported the logo of
Columbia Sportswear on their outfits. This option was cheaper than buying into the
Games in an official way and less risky than backing a team or athlete.
- 38 -
AMBUSH MARKETING
AMERICAN EXPRESS
In 1988 Seoul Olympics, American Express promoted medallions supporting an
"International Olympic Heritage Committee," something totally unconnected with the
Games; then it retouched photos of Seoul's Olympic Stadium from the Asian games to
make them resemble the 1988 Olympics
VISA V/S AMERICAN EXPRESS
In 1992, Visa paid approximately $20 million to sponsor the Summer Olympics in
Barcelona, Spain and the Winter Olympics in Albertville, France. In addition, Visa
spent millions on a marketing campaign designating itself as the official credit card of
the 1992 Olympics.
One of Visa's television campaigns made a frontal assault on one of its competitors,
American Express (AmEx), by stating " 'The Olympics don't take American Express."'
[20]
In response to the Visa commercial, AmEx aired an ad with winter sports athletes
telling viewers that "to enjoy the 'fun and games' they 'don't need a Visa."' AmEx
intended the commercial to show that many stores, restaurants and hotels in Albertville,
France accepted the AmEx card. After this ad aired, Visa claimed that AmEx carried out
an ambush marketing strategy. AmEx countered by saying that this charge was
unfounded because Visa initiated the confrontation and it was merely setting the record
straight.
- 39 -
10.5 SEOUL OLYMPICS - 1988
10.6 BARCELONA OLYMPICS - 1992
AMBUSH MARKETING
NIKE, INC. AND REEBOK INTERNATIONAL, LTD.
Another example of ambush marketing or aggressive promotion occurred at the 1992
Barcelona Olympic Games between two sports apparel manufacturers, Nike, Inc. (Nike)
and Reebok International, Ltd. (Reebok). At the 1992 Olympic medal ceremonies,
athletes wore jackets made by Reebok, an official Olympic sponsor. Nike, however,
conducted a highly visible advertising campaign without "paying a penny in Olympic
sponsorship fees." Nike held press conferences for Olympic athletes under contract with
Nike and additionally displayed large murals of U.S.A. basketball team members on the
side of Barcelona buildings. In support of its advertising campaign, Nike Divisional
Manager Mark Pilkenton stated "We feel like in any major sporting event, we have the
right to come in and give our message as long as we don't interfere with the official
proceedings."
IBM, AT&T AND XEROX
The Summer Olympics at Atlanta in 1996 saw a clash of interest between the sponsors
of the event. IBM occupied a sponsorship category - technology whereas, companies
like AT&T and Xerox, were also Olympic sponsors, in the computing and
communications area. BellSouth Corp. and Scientific Atlanta
The Games could not restrict ambush efforts through media as the TV rights
commanded a high fee and it was not possible for a Television Network to sell media
only to Olympic sponsor, opening the doors to non-sponsors with advertising inspired
by Olympic imagery. Networks like NBC, which spent $450 million for the Atlanta
- 40 -
10. 7 ATLANTA OLYMPICS - 1996
AMBUSH MARKETING
Olympics, cannot be expected to sell media slots only to Olympic sponsors, they have
to make money back.
The only thing the Olympic organizers could do was to carry out an aggressive public
relations campaign against ambushers. They also took help of celebrity endorsers and
cross-promotion among sponsors designed to reinforce their official rights holder status.
Ambush Marketing is the "Rosie Ruiz" of the corporate sponsorship, in which an
advertiser tries to show up at the finish line of an event without any sweat on its gym
shorts.
- Darby Coker, Atlanta Committee for the Olympic Games.
KODAK VS. FUJI
Eastman Kodak of Rochester, NY spent about $40 million to be the sole imaging
sponsor of the 1996 Games. But Fuji is not the official sponsor of the Olympics that title
belonged to arch-rival. In New York, an elaborate display honoring 100 years of track
and field was unveiled, featuring past Olympic athletes along side 1996 hopefuls. The
exhibit was displayed across the U.S. landing in Atlanta in time for the Summer
Olympics. The Exhibit called Images of Excellence is full of photos and cosponsored
by Fuji Photo Film of Tokyo.
Fuji also advertised on the radio and on newspaper, to take advantage of the country's
strong interest in sports. Fuji also offered a poster series and desk calendar featuring
athletes such as Dan O'BRIEN and Michael Johnson, both strong contenders for the
Olympic team.
According to Darby Coker, director of marketing for the Atlanta Committee for the
Olympic Games - "It erodes their ability to raise funds from paying sponsors in the
future."
- 41 -
AMBUSH MARKETING
ANSETT AND QANTAS AIRLINES
In the period leading up to the Sydney Games, both Ansett and Qantas Airlines
embarked on marketing campaigns that featured athletes, including Olympic athletes.
Qantas television advertisements appeared in high density prior to the Games. These
advertisements received considerable airtime and public recognition:
At a survey done 42% of all Australian respondents indicated that they thought
Qantas was an official sponsor of the Games. Only 15% of the same respondents
indicated that they thought Ansett was an official sponsor. Qantas was not an official
2000 Games sponsor. Ansett was.
As the Sydney 2000 Games drew nearer Qantas stepped up its advertising campaign.
Qantas sponsored both pre-Olympic meets and the Olympic selection trials for the
Australian swimming team. The trials were broadcast from the Olympic swimming pool
and the broadcast featured the Qantas name and logo.
Qantas also sponsored the Bledisloe Cup rugby game between Australia and New
Zealand which was held at Stadium Australia - the main stadium for the Olympics. A
Qantas "flying kangaroo" logo formed on the arena at Stadium Australia featured
prominently in Qantas's advertising.
Thus, Qantas was able to establish a link between it and the Olympic Stadium and also
between the Australian swimming team and Qantas.
Ansett moved the court against Qantas alleging Ambush marketing. It requested an
expedited hearing because of the proximity of the Olympics, which were to start on 15
- 42 -
10.8 SYDNEY OLYMPICS - 2000
AMBUSH MARKETING
September. Although the hearing commenced, it settled after several hearing days
without a decision from the court. There seems little doubt that Qantas emerged
victorious since there was no declaration of infringing conduct or any corrective
advertising ordered.
The Qantas advertisements did not feature the Olympic motto, the Olympic symbol, the
other Olympic designs or the torch and flame. Similarly, they did not use any of the
Sydney 2000 Games indicia. Arguably there may have been a breach of Section 12(1)
of the Sydney 2000 Act, which prohibits the use of Sydney 2000 Games images for
commercial purposes. However, it is unlikely that the courts will see this type of visual
representation as a marketing tactic which, to the reasonable person in the
circumstances of the presentation, suggests a connection with the Sydney 2000 Olympic
Games. It may, in fact, imply little more than "the encouragement of sporting
excellence."
The Ian Thorpe incident:
Nike was the official clothing supplier for the Australian Olympic team. Thorpe was
sponsored by Adidas. At a medal presentation ceremony, the swimmer had his towel
draped over the Nike logo on his official team tracksuit.
Other incidents
There were many other incidents in the Sydney Olympic Games which could amount to
Ambush Marketing. Optus also resorted to Ambush Marketing at the Sydney
Olympics(using Cathy Freeman in promotions prior to the beginning of the games.)
undermining the importance of Telstra which was the Olympic Sponsor.
- 43 -
AMBUSH MARKETING
In 1994, the United States District Court for the Southern District of New York enjoined
Sprint Communications (Sprint) from issuing cards bearing the World Cup mark. In
March 1991, the International Soccer League (ISL) entered into an agreement with
Mastercard International (Mastercard) which allowed Mastercard to be an official
sponsor of the 1994 World Cup.
The sponsorship agreement granted Mastercard the exclusive right to use the World
Cup'94 trademarks on "All card-based payment and account access devices."
Subsequently, in May 1992, Sprint entered into an agreement to become an Official
Partner of the 1994 World Cup. This agreement was restrictive and expressly limited
Official Partners' rights to not "infringe upon the rights of Official Sponsors." Sprint
interpreted its Official Partner status to permit the issuance of 100,000 telephone cards
bearing the World Cup mark.
The district court addressed the issue of contract interpretation, not ambush marketing.
The court held that the Sprint cards fell under the definition of card-based payment and
account access devices and prohibited Sprint from using the World Cup logo.
Furthermore, the court determined that "extrinsic evidence demonstrated that both
Mastercard and ISL intended that Mastercard should have the exclusive right to use the
World Cup marks for telephone calling cards."
Time Warner Sports Merchandising, the company that licensed official products for the
World Cup, took legal action against more than 105 manufacturers, wholesalers and
retailers to prevent the sale of counterfeit products. Numerous stories exist detailing the
problem of counterfeit goods making their way into the United States, including soccer
ball decorations in a New York deli and sweatshirts in Miami. These examples are
- 44 -
10. 9 FIFA WORLD CUP - United States Of America, 1994
AMBUSH MARKETING
legally actionable because many of the products are copies of protected trademarks.
Korea Japan, 2002 saw Coca Cola being
Ambushed by its rival Pepsi. Coca Cola
had attained the title of Official Soft
Drink at Korea-Japan 2002. However,
Pepsi during the course of the Event and
prior to the event aired Advertisements featuring Top Footballing stars like David
Becham, Roberto Carlos, etc. playing a match with Sumo Wrestlers for a PEPSI. The
venue was showed as TOKYO, 2002.
AMBUSH MARKETING ATTEMPT AT THE 1999 CRICKET WORLD CUP IN
ENGLAND WAS AVERTED WHEN PEPSI ASKED THE EVENT ORGANIZERS
TO REMOVE COCA COLA LOGOS ON AUSTRALIAN PLAYERS’ KITS.
- 45 -
10. 10 FIFA WORLD CUP – Korea-Japan, 2002
AMBUSH MARKETING
Jet Airways, one of the leading Airways in India anoounced to their customers that they
have changed. Kingfisher Airlines, on top of it whipped them by saying “We made them
change”.
We may probably see the billboard wars hotting up some more…this is one prime
adspace…
- 46 -
11. AMBUSH MARKETING AT ITS BEST.
AMBUSH MARKETING
- 47 -
AMBUSH MARKETING
SECTION V
PROS CONS ANDPROS CONS AND
LEGALITIESLEGALITIES
- 48 -
AMBUSH MARKETING
The difficulty with ambush marketing is that the law is on the side of the ambushers.
As per the Lanham Act, Ambush Marketing does not involve counterfeiting or the
illegal use of trademarks, tradenames or symbols. Companies simply develop a creative
advertising campaign around the event, never use the event logo, trademark or
tradename and capitalize by association with the event without paying for official
sponsor status.
Lawyers can devise strategies for corporate clients that stay on the legal side of the
trademark rights dispute.
The argument concerning Ambush Marketing practice revolves around business ethics
v/s aggressive advertising.
The only case to directly address the contours of ambush marketing is NHL v. Pepsi-
Cola Canada Ltd. This case arose out of a Pepsi advertising campaign during the Spring
of 1990 called the "Diet Pepsi $4,000,000 Pro Hockey Playoff Pool." This campaign
was centered around the National Hockey League (NHL) play off games and the
Stanley Cup, but Pepsi was neither an NHL sponsor, nor did it use any NHL official
logos.
National Hockey League Services (NHLS), the licensing arm of the NHL, entered into
an agreement with Coca-Cola Ltd. (Coke) as an official sponsor of the NHL for
- 49 -
CASE STUDY: NHL vs Pepsi-Cola Canada Ltd.
12. THE LEGAL ASPECTS OF AMBUSH MARKETING
AMBUSH MARKETING
approximately $2.6 million in the Spring of 1989. Coke obtained the rights to use NHL
symbols for its promotional programs in Canada and the United States. [67] Through
this agreement, however, Coke did not obtain "any right to advertise during the
broadcast in Canada of any televised NHL games." The NHL, not the NHLS, controlled
such television rights and it sold them to Molson Breweries of Canada Ltd. (Molson) in
1988 for a five year period.
By contract with Molson, the Canadian Broadcasting Corporation (CBC) televises what
is called Hockey Night in Canada (HNIC), which includes at least one NHL game every
Saturday night during the regular season, many of the post- season playoff games and
the final Stanley Cup playoff games. Molson sold Pepsi the "right to be the exclusive
advertiser of soft drinks during the broadcast of all 'Hockey Night in Canada' games.
In bringing its cause of action, the NHL argued that the Pepsi contest, particularly the
television commercials, conveyed a false impression to the public that the NHL, in
some form, approved or was associated with the contest. Because there was no breach
of the agreement between the NHL and Coke, the NHL sought to establish that Pepsi
had interfered with that business relationship. Conversely, Pepsi argued that the contest
was "an aggressive but legitimate marketing campaign."
In deciding the issue, the court first described the tort of passing-off as a
misrepresentation that "one's business is that of the plaintiff, or connected with that of
the plaintiff in any way likely to cause damage." The court then enumerated the
elements of the tort of passing off. Applying these elements to the case, the court
concluded that there is "nothing that would constitute direct interference by the
defendant with the due performance of the NHLS's contractual relationship with Coke."
The court continued, stating that although "the NHLS-Coke agreement obligates NHLS,
so far as it is able, to protect the rights of Coke from 'ambush marketing,"' such an
obligation cannot impose a duty upon a third party to refrain from advertising in a
- 50 -
AMBUSH MARKETING
manner which, "although aggressive, is not, by the law of Canada, unlawful."
Thus, the court found that Pepsi was not in violation of Coke's contract nor did its
aggressive advertising campaign amount to the tort of passing-off under Canadian law
or infringe on registered trademarks. To date, this has been the only judicial decision
directly addressing the question of ambush marketing. Because this is a Canadian case,
it is not at all certain that its rationale will be adopted by American courts. However, it
is an understatement to say that this decision supports those seeking to ambush, because
it widely opens the doors for ambushers so long as trademark and tradename
infringement is not a part of the campaign.
A possible method of attacking the practice of ambush marketing in the United States
may be found in a false advertising claim under section 43(a) of the Lanham Act. The
elements of a prima facie case for an injunction under section 43(a) are that the
defendant:
(1) uses a false or misleading
(a) description of fact or
(b) representation of fact;
(2) in interstate commerce;
(3) and in connection with goods or services;
(4) in commercial advertising or promotion;
(5) when the description or representation misrepresents the nature, qualities, or
geographic origin of
(a) the defendant's goods, services or commercial activities or
- 51 -
AMBUSH MARKETING
(b) the goods, services or commercial activities of another person;
(6) and plaintiff has been or is likely to be damaged by these acts.
Thus, under this statute, all a plaintiff need prove, in addition to the above-listed
elements, is likelihood of damage, because the Lanham Act was designed to protect
consumers as well as businesses from the effects of false advertising. While there is
no American case on point, at least one scholar argues that ambush advertising
which creates a misleading impression of official sponsorship can trigger a violation
of section 43(a).
During the Sydney Olympics in 2000 the Sydney 2000 Act was passed to protect the
sponsors.
- 52 -
AMBUSH MARKETING
Gives a Level Playing Field
Ambush Marketer opens up an Avenue for Non Sponsors to promote their brand
awareness and identity thus giving them a level playing field against their rivals who
have attained a high platform by attaining Sponsorship right.
Competitive Marketing
Ambush marketing according to some analysts is a form of competitive marketing. It
keeps the sponsors on their toes and allows for the Consumer to get a complete picture.
Its my turn
This is the argument put forward by Ambush Marketers which points out to the fact that
every company resorts to such strategy. If I do it today someone else will do it
tomorrow.
Benefits not meeting price
Sponsoring an event requires millions of dollars as sponsorship fees. The benefits
derived out of such sponsorships is not matched by the benefits derived which are
limited in number.
- 53 -
13. POINTS IN FAVOUR OF AMBUSH MARKETING
AMBUSH MARKETING
Ethical issue:
The argument waged against Ambush Marketing is that it is against ethical norms to
ambush someone who has paid millions of Dollars for recognition as an Olympic
Sponsor.
Financially Detrimental
The argument raised by Event Organizers is that Ambush Marketing will make
finding sponsorship difficult in the future and this will be detrimental to the holding
of such event in the future.
Confusion
The argument here is that Ambush Marketers confuse the audience about the
Sponsors of the event.
Not good for Image of the firm
The argument being raised is that Ambush marketing could do more worse than
good to the image of the Ambush Marketer if the audience perceives it as an
anti-event activity.
- 54 -
14. POINTS AGAINST AMBUSH MARKETING
Zaheer Khan of Indian Cricket team without the Sahara Logo on the Shirt.
AMBUSH MARKETING
SECTION VI
CASE STUDIESCASE STUDIES
- 55 -
AMBUSH MARKETING
AMBUSH MARKETING VS CORPORATE SPONSORSHIP:
CASE WORLD CUP 2002
It is with the help of events such as World Cup 2002 that sponsorship industry spend in
the Republic of Ireland continues to grow and is expected to reach circa €60m in 2002.
National and international brands have invested significantly in seeking to use this
powerful platform to make deeper connections with their target consumers.
From a sponsor's perspective, this year's World Cup was one of the most competitive
yet, with some major battles played out between major brands in an attempt to gain as
much bang for their sponsorship buck/ euro as possible in this global sport's arena.
On the global stage, the most talked about category battle in terms of 'official sponsors'
versus 'ambush marketing' was between sportswear giants Adidas (an official FIFA
partner for a fee of minimum €15.8m) and Nike - with their highly effective above-the-
line activity. While the true winners can only be known by the respective brands and
their own final evaluation against objectives for the campaigns, some hard facts released
by Adidas regarding their return on sponsorship investment clearly illustrate a bottom
- 56 -
15.1 CASE 1
15. CASE STUDIES: AMBUSH MARKETING AND RELATED
ASPECTS
AMBUSH MARKETING
line benefit to their sponsorship:
Adidas hopes to boost Asian sales as a percentage of the total from 15% to 20%
in the next 3 years;
Adidas sold 600,000 Japanese national soccer team jerseys, generating a profit
to the company of €24.5 million
7 million Adidas World Cup balls were sold…all adding directly to the bottom
line in a financially measurable way.
Other wins for Adidas included their sponsoring semi-finalists Turkey and finalists
Germany, as well as the finals referee Pierluigi Collina being a participant in Adidas's
world cup ad campaign - all ensuring the types of results evident from various sources
of consumer research. Consumer brand association research in certain markets tends to
share a common finding…overall Nike lost the war to the official sponsor who beat the
American giant on awareness levels.
For example, UK research by Carat found that Adidas clearly gained a victory overall
and in particular with a younger 15-24 age group, by achieving 40% spontaneous
awareness versus Nike 30%. Nike were found victors among the 35-44 age group with
23% awareness versus 19% for Adidas.
Meanwhile in the soft drinks sector, Coca-Cola - official sponsors - have emerged from
various research studies as victors over category rivals Pepsi. In the UK, Coke finished
4 times ahead of rivals Pepsi on spontaneous awareness measures. While sponsorship
awareness is only step 1 in achieving sponsorship success, it is certainly a critical one to
deliver desired results at a more attitudinal level.
Thus, the lessons learned from this year's World Cup would on the surface suggest that
- 57 -
AMBUSH MARKETING
ambush marketing is no substitute for official sponsorship…but there can be more than
one winner if clear objectives are at the centre of a brand's sponsorship strategy.
- 58 -
AMBUSH MARKETING
PROTECTION AGAINST AMBUSH MARKETING AT VARIOUS EVENTS
1. Efforts taken by IOC to prevent Ambush Marketing at Salt Lake City:
In an effort to clear things up, the IOC is getting very strict about the size and location
of all the supplier logos, even the ones on the Columbia jackets, and also keeping non-
Olympic companies from using billboards to tout their wares in Salt Lake.
The Olympic properties unit of the United States that controls Olympic marketing has
bought up all the billboards, which were later sold only to official Olympic sponsors.
2. Protection Programme at Summer Olympics in Atlanta:
At the 1996 Summer Olympics, the Atlanta Committee had established a sponsor
protection program. The programme was as follows:
- To present the ambusher with market research within 48 hours of the ad's first
appearance, indicating that its advertising is deceiving the public.
- If the ad is not immediately pulled, To call a press conference announcing the
ambush incident. - Running ads in major publications condemning the ambusher for
exploiting the Olympic Games without paying the sponsorship fees that are used to
pay for, among other things, the training of Olympic athletes.
3. Efforts to Protect Sponsors at Sydney Olympics, 2000:
During the Sydney Olympics the Sydney 2000 act was passed to protect the sponsors
against Ambush Marketing. This Act gave the organizers more power to deal with
Ambush Marketers.
- 59 -
15.2 CASE 2
AMBUSH MARKETING
4. Efforts taken by FIFA at 2002 World Cup:
Pepsico was ordered to immediately cease the use of an advertisement related to the
FIFA World Cup by an Argentinean court on 5 June.
The court found that the prohibited advertisement would cause confusion among
consumers as it suggested a "presumed sponsorship relationship" between Pepsico and
the FIFA World Cup. The advertisement in question combined the use of the phrase
"Tokyo 2002", famous footballers and other football imagery in association with the
logo of Pepsico, and the court has ordered Pepsico not to use the ad in TV, printed
media or by any other means.
In the wake of the Pepsi ad, in Ecuador, FIFA had instructed counsel to initiate legal
proceedings against Pepsico as a result of similar TV commercials. In Mexico, Pepsico
is in the midst of negotiations with FIFA to settle a case involving the unauthorised use
of the FIFA's trademark-protected emblem of the 2002 FIFA World Cup. Most recently,
FIFA has identified a case in Russia which involves similar unauthorised uses of FIFA's
trademarks, and FIFA is currently investigating potential actions.
The legal activities against Pepsico's ambush of the event represent a small part of
FIFA's worldwide rights protection program. FIFA's rights protection efforts
commenced well in advance of the event, beginning with a worldwide trade mark
registration programme. The official marks of the event, namely "FIFA World Cup", the
Official Mascots, the Official Emblem and the FIFA World Cup Trophy, were protected
thanks to worldwide trademark registration. These measures were taken to ensure that
FIFA ends up in a strong position to protect its rights and the rights of the Official
Partners, the Official Suppliers and Licensees.
- 60 -
AMBUSH MARKETING
Since the conclusion of the 1998 FIFA World Cup in France, FIFA has been cracking
down on manufacturers of unauthorised goods and other companies and individuals
attempting to "ambush" the 2002 FIFA World Cup through various parasitic activities.
The success of this campaign is the result of considerable efforts on the part of the
specialised "anti-ambush" team, comprising trade mark specialists, commercial lawyers
and sports marketing specialists based in Switzerland as well as in the two host
countries, Korea and Japan.
The team put in place a worldwide network of legal experts in intellectual property and
event marketing and successfully dealt with hundreds of reports of counterfeiting and
illegal use of FIFA marks. These lawyers based in some 80 countries, including many
of the areas often associated with the production of counterfeit merchandise, such as
Thailand, Pakistan, and Hong Kong. In each of the host countries as well as China, two
central legal firms were appointed to deal with infringements.
While the tournament was underway, FIFA has also implemented an on-site strategy.
During the event, Rights Protection Patrol teams at each of the stadia and around the
Host Cities are positioned to protect the rights of FIFA and the Official Partners,
Official Suppliers and Licensees. On match days, teams monitored specifically-targeted
locations immediately around the stadia, including train and subway stations, to identify
any illegal ambush or counterfeit activity and bring it to the attention of the authorities.
The teams also work closely with the stadium security and local police to ensure that
prohibited marketing items do not enter the stadium.
In addition to this, FIFA directed that David Becham should not be a part of Pepsi
campaign and his images were used on Coca Cola cans.
- 61 -
15.3 CASE 3
AMBUSH MARKETING
STANDOFF BETWEEN ICC AND CRICKET PLAYERS
The International Cricket Council ICC managed to secure $550 million through a
commercial rights agreement for all ICC-run events through 2007, with Global
Cricketing Corporation(GCC).
The contract included sponsors like, South African Airlines, Hero Honda, Pepsi, LG
and others.
However, the contract signed by the ICC and GCC had two major clauses:
- One relating to Ambush Marketing which prohibited a player from endorsing products
that rivaled those of the official sponsors' for a period of 30 days before and after the
tournament and during the tournament.
- the imaging clause, which allowed the official sponsors of the tournament to use
images of participating players for up to six months after the event
This contract was signed by the boards of participating countries. However, the players
of the Indian Cricketing team rejected to go along with this agreement since, they
already had long term commitments with rival companies of those that sponsored the
event. Anil Kumble, ace legspinner of Indian Cricket team said it was a matter of
Integrity and not Money.
The standoff between the ICC and the Indian players continued for more than 40 days
with both the Indian players and the ICC refusing to budge. The governing body for
Indian cricket, Board of Control for Cricket in India (BCCI) also agreed to compensate
the players for any losses that may occur due to non compliance of their contracts.
At a meeting between the Indian Cricket Players and the ICC a common point was met.
- 62 -
Zaheer Khan of Indian Cricket team without the Sahara Logo on the Shirt.
AMBUSH MARKETING
The new terms of the contract were.
- Reducing the duration of the ambush clause from 30 days before and after the event
and during the event to 17 days after the event and during the event.
The BCCI however, did not agree to these terms as it made BCCI susceptible to claims
of ICC and its sponsors for financial losses.
Only after the BCCI got indemnity from such
claims did it allow the Indian Players to
participate in the agreement.
It was a momentary truce before the tempers
between the BCCI and the ICC rose again. The
ICC asked the Indian Board to remove the logo of
the Indian team sponsor Sahara from the team
shirts since, it was considered to be a competitor
of South African Airlines who was an official sponsor of the ICC champions trophy.
Sahara decided to put the name Subrata instead of Sahara on Indian team shirts.
However, this too was rejected by the ICC.
Finally, Sahara decided to snap its relations of an official sponsor with the Indian
Cricket team.
- 63 -
AMBUSH MARKETING
ANNEXURE I
AN ARTICLE BY THE PERSON WHO COINED THE
TERM - AMBUSH MARKETING – JERRY WELSH
A while ago, I accessed the search engine "Google" to see what's new in Ambush
Marketing. Surprisingly, I saw page after page of entries on Ambush Marketing, a
term I coined years ago when I was at American Express.
I was shocked, however, to encounter the mindless drivel that now must be passing
for legitimate commentary on Ambush Marketing, which evidently has come to
mean -- to some, mostly sports event organizers, I suspect -- something akin to
commercial theft. Believing that there is no better time than now to return to the
realm of common sense in talking of competitive Marketing, and simultaneously to
expose self-serving pleading in the guise of disinterested intellectual commentary,
I'm writing this brief piece assaying the origins and principles of Ambush
Marketing.
The roots of Ambush Marketing can be found in several phenomena typical of
modern sponsorships: the escalating prices for, and often the distressed imagery of,
category-exclusive sponsorships; in their routinely poor packaging and in their
flawed presentation to potential sponsors; and in the increasing level of marketing
competition in major categories of consumer products and services.
In explaining the practice of Ambush Marketing, and in noting its virtual necessity
in modern competitive business practice, and in advocating its desirability -- indeed
its inevitability -- there is no need to discuss ethics or morality. Companies routinely
- 64 -
AMBUSH MARKETING
compete, mostly, we hope and expect, honestly and hard; and Ambush Marketing,
correctly understood and rightly practiced, is an important, ethically correct,
competitive tool in a non-sponsoring company's arsenal of business- and image-
building-- weapons. To think otherwise is either not to understand -- or willfully to
misrepresent -- the meaning of Ambush Marketing and its significance for good --
and winning -- marketing practice.
To begin with the unarguably obvious, it is true that, in major sponsorships
packaged for sale, there is room for only one company or product in each available
category. Event organizers hope to sell their event-sponsoring wares at an auction
among major intra-category competitors; after all, that's their game, their core
business. Those companies who want to buy, or can afford to buy, often do buy;
others must consider their marketing alternatives.
Let's acknowledge that, given the already high and continually rising prices for
some of these sponsorships, it is hardly surprising that some companies willingly
pass on the opportunity to sponsor, and undertake the search for ways to compete in
the sponsored space without bearing the onerous costs, and often the heavy burden,
of the scandals and other misadventures often associated with large modern
sponsored properties, particularly some of those in professional sports.
The point to understand is that, in buying a sponsorship, a company buys only that
specific, packaged product, offered as it is, with its constituent parts and attendant
rights (and its liabilities). In sponsoring, the company does not thereby purchase the
rights to all avenues leading to the public's awareness of that property; and, more
importantly, the company does not buy the rights to the entire thematic space in
which the purchased property is usually only one resident.
- 65 -
AMBUSH MARKETING
In other words, all else other than that which is specifically purchased is up for
commercial grabs. That's as it should be in sponsorship and as it is in the larger
world of both commerce and life: when you own and license Kermit you have only
given the rights you own to one specific frog - not to all frogs, and maybe not even
to all green ones.
Non-sponsors who are sophisticated about marketing begin by asking themselves
the basic question about the thematic space in which the sponsorship exits: "Do I
want to be identified with the ideas, images, and events in this sponsored space?" In
the case of the Olympics, for example, do I as a non-sponsoring marketer want my
products or services identified with this generic space of sport, and more
specifically, Olympic-type sporting events? If so, then I begin to look for ways to
purchase the imagery and values of the Olympics in properties and events other
than those specifically Olympic-sponsored.
If my competitor has just spent, say, $100 million to secure the Olympics
sponsorship, that gives me roughly the same amount (assuming I want parity in
marketing expenditures with my competitor) to get a similar benefit for my product
or service without sponsoring the Olympics. So long as I do nothing to claim that
I'm indeed an Olympic sponsor, and so long as I refrain from any other action or
claim directly misleading to the public, then I'm free to pursue other Olympic-
related activities (e.g., television advertising on the Olympics broadcasts, perhaps
onsite events, and customer entertainment in the Olympic city), or non-Olympic --
but nevertheless sports-related -- activities and similar sponsorships (national
teams, former Olympic athletes, children's athletic causes and programs in
Olympic-featured sports) to underscore my company's support of, and dedication to,
the thematic space which Olympic sports occupy.
- 66 -
AMBUSH MARKETING
The argument that, if I'm an inventive non-sponsor, mining the sponsored thematic
space in a clever way, the public may come to think of me as an Olympic sponsor, is
not an argument supporting non-ambushing activities, but is rather a possible
testament to the marketing skills of a non-sponsoring competitor. What the public
perceives in the world of sponsorship is interesting grist for the marketing pollsters,
but is hardly the stuff of which business morality should be gauged. Marketers
routinely portray their wares in the best possible light; and in times when sponsored
properties are on attractive display, the positive association with that thematic
space -- if not with the specific sponsored property -- is the natural, and altogether
legitimate, inclination of marketing professionals.
The contrary notion, put forward largely by sloppy event organizers, that non-
sponsors have a moral or ethical obligation to market themselves totally away from
the thematic space of a sponsored property, is simply nonsense which smart
marketers have long recognized as a commercial non-starter, as well as an
intellectual affront. Sponsors have bought a specific property; they have not bought
a thematic space. Accordingly, they have no right to police, protect, and otherwise
administer what they have not bought, have not created, and, therefore, do not own.
Once a sponsorship has been undertaken, then the real marketing games begin,
assuming only that non-sponsors want to occupy the thematic space that the
sponsors -- by virtue of their having paid the fee -- now occupy. The competitive
thinking goes like this: what programs, events, and other similar promotions can
one do, within the space, to get the marketing benefits, without having paid the fee
for the sponsorship in that space.
What's wrong with that? Where's the "parasitic marketing," to quote a favorite
- 67 -
AMBUSH MARKETING
phrase of the putatively aggrieved event organizers and their sponsors? Smart
marketing is "parasitic" only to those who foolishly have not sufficiently covered
their sponsorships with adequate, anti-competitive bulletproofing. As your
competitor, I do not have the ethical obligation to make sure that your sponsorship
is successful. I could -- but will not do so here -- argue that the reverse obligation
may well be the appropriate ethical and practical stance for me.
Ambush Marketing ought to be understood simply as a marketing strategy with its
programmatic outcomes, occupying the thematic space of a sponsoring competitor,
and formulated to vie with that sponsoring competitor for marketing preeminence.
Successful ambush strategies feed on ill-conceived sponsorships and inept sponsors;
in that regard, Ambush Marketing is the natural result of healthy competition and
has the long-range effect of making sponsored properties more valuable, not less, in
that successful ambushes, over time, help to weed out inferior sponsorship
propositions.
What Ambush Marketing is not, clearly, is some underhanded attempt to take
advantage of sponsored properties without paying the associated fees. As I've
indicated, the marketing decision around sponsorships involves the trade-off
analysis of the sponsorship costs, liabilities, and the extent to which the
sponsorship, if purchased, can de defended against successful ambush. This is but
another way to ask the simple question of whether or not the sponsorship, as
offered, is really commercially viable, or worth anything approximating its cost in
the marketplace of available marketing propositions.
In the world of modern marketing, sponsor and ambusher are not moral labels to be
assigned by the self-appointed arbiters of ethics, but merely the names to be given to
- 68 -
AMBUSH MARKETING
two different -- and complementary, if competing -- roles played by competitors
vying for consumer loyalty and recognition in the same thematic space.
So that is the story of Ambush Marketing. I trust that I won't have to consult "Google!"
again in the near future, only to be horrified at what an unrecognizable ogre has been
made of my beautiful, conceptual marketing child, Ambush Marketing.
- 69 -
AMBUSH MARKETING
BOOK AND PRINT REFERENCES
MARKETING MANAGEMENT- PHILIP KOTLER
BUSINESS WORLD
BUSINESS INDIA
BUSINESS TODAY
WEBLIOGRAPHY
WWW.GOOGLE.COM
WWW.INDIAINFOLINE.COM
WWW.MARKETINGMANAGEMENT.COM
WWW.CRIINFO.COM
WWW.PEPSI.COM
WWW.COCACOLA.COM
WWW.NIKE.COM
WWW.REEBOK.COM
- 70 -
16. REFERENCES