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 -- >

Tell me what I can

do for you, Rod… Show me the

money!!!

Athlete Endorsement

Sports Event Sponsorship

Sports marketing is much, much

more than athlete endorsement,

and sports event sponsorship

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)

Scope of Sports Marketing

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?

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.

WHY SHOULD A BRAND CONSIDER

SPORTS MARKETING?

For a brand person or

advertiser, the part that

says ->

“Sports can help you sell”

-- is the most compelling

& most intriguing

Sports from an Advertiser’s Perspective

How can sports help you sell?

The most obvious answer: The crowd

How can sports help you sell?

The more important aspect: Creating the “pull”

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

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.

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?

To get the answer, you have

to ask more questions:

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)

Own a sport.

My Personal Approach on Sport Marketing

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 And Abroad…

• The Fedex Cup • Nissan Open • The Louis Vuitton Cup • 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

All these brands have

gained immeasurable

equity by “owning” the

sports they adopted

Equity 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!