Ambush Marketing

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AMBUSH MARKETING

GROUP MEMBERSPuja Bhagwani 65Shivani Chaudhary- 67Sailesh Gurmukhani- 79Anagha Nair- 96Rohit Talreja- 114WHAT IS AMBUSH MARKETING?A promotion tactic designed to associate a company, product, or service with a particular event, or to attract the attention of people attending the event, without payment being made for an official sponsorship.

AMBUSH MARKETINGAmbush marketing is an Aerial Advertising.It is a well planned effort.It is commonly used at worldwide sporting organisations.Ambush Marketing is also called as Parasitic Marketing.

GOALS OF AMBUSH MARKETINGTo hijack the intrinsic values of an event and take advantage, for the least possible cost.

To improve the ambushers brand reputation and transfer the positive aspects of the event to its brand. To mislead the public into thinking the ambush marketer is something its not.

To weaken the link between the official sponsors and the event by creating confusion about sponsors identities.ADVANTAGES OF AMBUSH MARKETINGAdvantage of a major event to increase brand awareness while not spending the money to be a sponsor

When there is an increase in competition the prices go down

Less Investement with high business.

DISADVANTAGES OF AMBUSH MARKETING It decreases commercial value of the eventIt creates unhealthy competitive environmentIt may adversely effect the funding of the event as it will be beneficial for the company to be an ambusher

EXAMPLESMcDonald's Accuses Burger King of Ambush Marketing in Brazil

Double Fries, Offered on Day After a Brazilian Athlete Medals, Resemble Olympic Torch in Ad of Burger King.

McDonald's is an Olympic sponsor; Burger King is not.

BMW vs AUDIOne of the most famous examples is the 2009 Audi and BMW billboard war in Santa Monica.

Audi thought they'd be clever and issued a challenge to BMW with an image of the Audi A4, accompanied by the words: Your move, BMW. Of course, BMW answered. Right next to the Audi advert they threw up an image of the BMW M3 and said: Checkmate.

Everything then got slightly out of control when fans took to photoshop and decided to craft their own responses, including the BMW sign flying a blimp with a picture of its F1 entry.

EFFECTIVENESS OF AMBUSH MARKETING Ambush marketing provides opportunity of standing at advantage over the competitors.

Ambush marketing is more effective than traditional public advertisement against the costs.

Ambush Marketing act as a promotional tool.

Ambushing is an enticing option.EFFECT OF AMBUSH MARKETING ON THE COMPANY DOING IT

Ambush marketing is considered an unethical business practice.

A company, which uses the ambush marketing strategy, will sooner or later loose the exclusivity of the sponsorship, which will also cause the interest in the sponsorship to be lost.

The financial growth and power of an event organizer will soon deplete.

Dominant brands may benefit from a tad more from their sponsorships, but are more affected by an ambush than a non-dominant brandTHE ETHCAL ISSUEIs it ethical for a company to ambush an event? Why do brands with excellent reputations get into this?Are they justified?

The questions arises as to whether or not practices such as ambush marketing is ethical, illegal or simply smart business practice. In order to decide this, an examination has to be undertaken of what are regarded as ethical marketing practices, in addition to examining what comprises ambush marketing, followed by a comparison of the two.

THE ETHCAL ISSUETypically, sports property owners and sponsors view the practice as being unethical,immoral and sometimes illegal. On the other hand, many companies unable to afford sponsorship fees will regard the practices involved as a legitimate form of defensive, competitive behaviour and perhaps even deny that what they are doing is ambush marketing.CASE STUDYNHL v/s PEPSIFirst case to deal head-on with pure-ambush marketing

Pepsi promoted a scratch card which stated If X city(home of a NHL team) wins Y number of matches, you win. This was in addition to other promotional measures like T-shirts, caps etc.

Disclaimer was provided on the card that the campaign did not associate itself or sponsor the NHL. In fact, Coca-Cola did.

The Court identified the tort of passing off, by means of suggestion, that the plaintiff was in a way authorising or endorsing the product.

It also stated that the defendant could also cash in on the goodwill of the plaintiff.

However, the Court found that the likelihood of confusion was very minimal, and even if there was any, it was eliminated by the disclaimer. The decision of the Court was that ambush marketing, done bona fide, was an acceptable business practice in Canada.

ICC V/S ARVEEPhilips had indulged in a promotional campaign Philips : Diwali Manao World Cup Jao and Buy a Philips Audio system : Win a ticket to the World Cup .

The words were accompanied by an image of a ticket with fictitious seat and gate number.

Philips was not one among the 9 official sponsors of the ICC World Cup.

The ICC filed suit, citing passing off, unfair competition and ambush marketing.

The Court held that slogans only pointed that the purchaser of Philips may win a prize and nothing more.

No likelihood of confusion that Philips was a sponsor or licensee thereof. There was no passing off or unfair trading.

Not contrary to public interest, as the commercial advertising is free speech protected by the Indian constitution.CONCLUSIONImpossible to completely stop ambush marketing.

Event is hit most with the ambush marketing.

The ambushed cannot be compensated.

Proper legislation should come for the protection of the official sponsor .