Project

Ambush MARKETING

Programme: PGDM/Term-II/Sec-BBatch: (2011-13)

Course Title : Marketing Management (MM-I)Course Code : C-203

Submitted to:Prof. Subhamay Panda

By:

Name : Anumita Adhikari Roll No. : 11DM066 Name : Spandan Mitra Roll No. : 11DM076 Name : Kaibalya Prasad Mallick Roll No. : 11DM086 Name : Wasim Akhtar Roll No. : 11DM096 Name : Bapi Nath Roll No. : 11DM0106

Contents

SL No. Title Pg. No.

1 Introduction

2 Why Ambush Marketing

3 Types of Ambush Marketing

4 Strategies

5 Cases

6 Recommendation

7 Conclusion

Introduction

Ambush means surprise attack or attack from hidden position. Ambush marketing is a marketing practice by which a company takes advantage of event done by other companies without being an official sponsor of an event and without breaking any laws. The Ambush marketing was coined by the famous marketing strategies Jerry Welsh, while he was working as the manager of global marketing efforts for the American Express Company in the 1980s.It refers to companies promoting them with their brands or products by associating them with a team, league or events by without paying for the privilege.

Example of Ambush Marketing: During World Cup 2011, Mahendra Singh Dhoni was endorsed by Sony Corp and Aircel, which were not official sponsors of the Cup whereas Reliance Communications, LG, PepsiCo, Reebok, Hero Honda, Emirates, Yahoo, Castrol, MoneyGram and Hyundai Motors India were official sponsors of ICC World Cup 2011 that was illegal as per ICC but as per Collage Sports Management, a firm that handles endorsement deals for several Indian cricketers, said there was generally a seven-day cooling off period for non-sponsors to take their advertisements off before the event begins.

Why Ambush Marketing?

High cost of sponsorship

Hype of the events

Sponsor has to spend high amount of money for publicity on T.V, print and outdoor advertising

Cost effectiveness

Brand Awareness

Types of Ambush Marketing:

On-Site Ambush:

This type of ambush marketing occurs when a business attempts to gets its name, logo or products on the grounds of an event without paying to be there. After the Association of Volleyball Professionals signed a contract with a sport drink, two the sport’s largest stars signed with competing sports drink. During their matches, the two stars drank the competitor’s drink during televised matches and place logoed towels on the backs of their chairs during changeovers.

Personnel Ambush:

Having a spokesperson or other individual closely associated with a business, product or service at an event without paying a sponsorship fee is another example of ambush marketing. The celebrity doesn’t overtly represent a company or product that competes with the event or an event sponsor. The company sending the celebrity may simply want to promote their product or service by having the public recognize the spokesperson. Buying tickets for a spokesperson in the front row of an event or other televised sightline is one tactic companies use to execute this type of ambush.

Timeline Ambush: If an event has a small timeline, such as

the two weeks of the U.S. Open Golf Championships, an advertiser might increase its marketing during that timeline. A golf company might increase its advertising shortly before and during the tournament, hoping golf consumers connect its product with the hype created by magazine issues, TV specials and other increased promotion of the sport during that time. A beer company might increase its advertising during college basketball’s March Madness or college football bowl season, using ads that show sports fans watching basketball or football games on TV, but without mentioning the NCAA playoffs or BCS bowl games.

Ambush by Association:

Advertising in a way that mirrors the values or theme of an event is a form of ambush marketing. For example, a company might hire an English spokesperson, shoot commercials on the grass court of a country estate and use images of the Union Jack to promote its product during Wimbledon. This closely associates the product with the event without requiring the company to pay the All England Tennis Club sponsorship fees.

Strategies:

Sponsor media coverage for the event : The

‘ambusher’ sponsors the broadcast of the event. The benefits of this approach are obvious when one considers that the media audience for most events is much larger than the onsite audience. In such an instance, the ‘ambusher’ is seeking a perfectly legitimate sponsorship opportunity in its own right.

Sponsoring sub category in a large event: This is a

very widespread and cost-effective method of association with an event of major public interest. Essentially, the ‘ambusher’ sponsor some lesser element attached to overall event and exploits this association through major promotional effort.

Purchasing advertising time during event: A

company wishing to deny a competitor the full benefits of their event or broadcast sponsorship can engage in ambush marketing by buying advertising time in the slots of around repeat telecast of event.

Sponsorship-related contribution to player’s pool: As well as purchasing mass media sponsorship rights,

rivals of official sponsors can sponsor teams or individuals competing within specific events.

Examples of this form of sponsorship include adidas’ sponsorship of Ian Thorpe when Nike was the official clothing supplier for the Australian Olympic team. Curthoys and Kendall (2002) noted that Thorpe was photographed with his towel draped over Nike’s logo at a medal presentation ceremony, a gesture they suggest was necessary to protect his personal contract with adidas.

Cases:

“Nothing official about it”-1996 world cup: Coca Cola was the official sponsor of Cricket World Cup, Pepsi commercials used the ‘nothing official about it’ campaign. Many viewers inferred that Pepsi was also associated with the event.

Such communications seek to achieve some or all of the benefits of being associated with the sporting event without actually incurring the cost of sponsorship fees, or to overcome the sole

sponsorship rights awarded to a competitor.

FIFA 2010 football world cup: New Pepsi commercial for the World Cup 2010 in Africa. “Refresh your World” Players: Kaka, Drogba, Henry, Messi, Lampard and Arshavin. As in the 1996 cricket world cup pepsi again Ambused Coca Cola in FIFA 2010 World Cup which is the most awaited event in the world. Being the non-sponsor of the event they stole the show by creative Ambush Marketing by associating itself with the event indirectly.

As we all know World Cup was held in Africa so they showed a commercial with all major football stars of the World Cup. They were wearing t-shirts of Pepsi playing in some African place and the football ground was formed by the African people

which was kind of floating ground. The commercial had the theme of Africa showing football with a group of star players was surely indicating indirect relation to the event. The ad was a eyegrabber and creative. According to the survey done on the recalling of sponsors of FIFA 2010 on the people it was found that upto 35% of people said pepsi as the official sponsor of the event. So Pepsi rode on the coattail of the event and creating their brand awareness.

Bad Boy of sportswear:

NIKE the ambush of all ambushes. Saving the US$ 50 million that an official sponsorship would have cost, Nike plastered the city in billboards, handed out swoosh banners to wave at the competitions and erected an enormous Nike centre overlooking the stadium near the athletes village which became the star attraction for the people.

Britannia khao world cup jao:

Another example of Ambush Marketing is the campaign of Britannia khao World Cup Jao. Not being the official sponsor of World Cup but still every thought that Britannia was the official sponsor of the event.

Procter and Gamble vs. HUL:

It was quick and it was smart. It was an ambush in the skies that Hindustan Unilever launched against arch-rival Procter & Gamble, spoiling the latter's elaborately laid-out plans for its shampoo brand Pantene.

The story starts on July 23, when Mumbai woke up to hoardings that screamed: 'A Mystery Shampoo!! 80% women say is better than anything else'. P&G, it was later found, was planning to unveil the new Pantene on August 1.

When the suits at HUL found out, they saw an opportunity to score a point. They ambushed P&G. On July 28, even as the P&G hoardings stood tall on its skyline, Mumbai woke up to another hoarding that was upfront, and suggestive of its source of inspiration. It said: 'There is no mystery. Dove is the No.1 shampoo'. Dove is one of the four brands in HUL's shampoo portfolio.

Recommendations:

Restrictions on video clippings: Banning non sponsors companies using world cup images and World Cup cricket video clips.

Use of world cup logo and events in it: Banning non sponsors to use any phrase, logo or images which directly relates to the event.

“Cooling off period”: 30 days before starting of the particular event like Olympics or World cup no other brand should not be allowed to do the sponsorship in the area outside the stadium where the event will going to organize and except the official band.

To bring under control all activities of advertising: Controlling the activities of the non-sponsors by reserving the periphery of the stadiums for the official sponsors only. Also banning the non-sponsor to give any t-shirts, caps or any collectibles which are against the sponsors.

Conclusion

It is impossible to completely stop ambush marketing because we can never stop the flow of new, creative and innovative ideas. An event is hit the most with ambush marketing , with it losing its value followed by the official sponsor who end up getting low returns in relation to huge amounts which they invest for sponsorship. Unless there is a proper legislation made to protect the interest of the official sponsors, it might be close to impossible to curb the onslaught of ambush practices.