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