Transcript Document

Global Sport (& Event) Sponsorship
Robert Sparks and Shannon Jetté
November 28, 2005
The University of British Columbia
Vancouver, Canada
A question for you…
• How have you learned what you know about drinking alcohol, such
as when to drink, where, why, how much, and so forth?
• To answer, probably need to think stage of life (stage of drinking
experience):
– When you first started (15-16 yrs)
– Now
In your youth…
• Meaning of drinking shaped by:
– Family
– Peers (friends)
– Direct experience
• In media-intensive societies, we see that meanings and values
connected with drinking are increasingly shaped by the mass media:
television, movies, music/ videos, consumer brand advertising.
Background1
• Major international alcohol corporations are
using sport and event sponsorship in
increasingly multi-functional ways to gain
competitive advantage in the emerging global
market.
• This shift invites us to assess the impacts of
alcohol sponsorship and of alcohol control
policies themselves in more global and
fundamental terms.
1(Sparks,
Dewhirst, Jette & Schweinbenz, 2005)
Multi-functional Uses of Sponsorship
• Open doors politically (corporate “good citizen”)
• Bridge cultural differences in the global-local market
(invest in/capitalize on favorite local events and
brands)
• Develop strategic alliances (with suppliers,
distributors, and other key groups)
• Exploit under-developed markets (that will respond to
the sponsorship techniques developed in mature
markets)
• Lock out competitors (to achieve a heterogeneous
distribution of resources – “competitive advantage”)
Top 4 Global Breweries (2004)
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•
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Anheuser-Busch
Heineken
SABMiller
InBev
1 US$ millions
2 billions of gallons
(sales)1 (volume)2
$14,934
3.81
$12,666
2.95
$12,645
4.01
$11,598 4.85
Remarks by Patrick Stokes, CEO A-B
•
•
•
•
“Stokes identified four priorities to stimulate growth:
improve the image and desirability of beer;
keep beer fun and social;
grow [increase] beer occasions; and
improve retail.”
(Pas, 2005)
In beer sponsorship in particular…
• We are seeing a growing sophistication and
integration of sponsorship-linked marketing methods
that follow these guidelines.
• Some of this is originating from abroad;
• Some domestically, in response to the changing
communications and marketing environment.
Organization of the Talk
1. Illustrate some of these developments in
Latin America (particularly Brazil)
2. Policy issues
3. Some ideas for solutions
Recent LA examples….
Brazil
Argentina
Schincariol
– Nova Schin
AmBev (InBev)
– Antarctica
– Skol
CCU (A-B licensing)
– Budweiser
Columbia
Bavaria (SABMiller)
– Cristal
– Aguila
Schincariol’s use of events…
• In 2003, Schincariol launched Nova
Schin with aggressive price
positioning and strong ad support
(R$180 million each year 2003,
2004, 2005)
• Events: Culture (Folio at Carnaval
de Salvador), surfing (Nova Schin
Festival -WCT), F1 (Globo TV)
Nova Schin Festival Brazil WCT
http://www.xtxe.com/xsx/surf/surfing/hobgood-claims-victory-in-brazil.shtml
http://surfingthemag.com/surfing-photo-video/surfing-photo-dept/110205a/index.html
Industry Self-Regulatory Code
• Brazilian Council for Self Regulation in
Advertising
• 2000
– Recommended that ads for alcoholic drinks not
be associated with athletes at major sporting
fixtures
• 2003
– Celebrities appearing in ads must not be
drinking
– Scenes, photos, illustrations… that represent
consumption of alcohol are banned from ads
AmBev’s use of sport sponsorship and
events
• AmBev began sponsoring the Brazilian
National Soccer team with Guaraná
Antarctica in 2001
(US
$10million/yr)
• AmBev introduced Skol Beats in 2003
aimed at youth (5.2%). This has been
supported by Skol-themed events
marketing.
Guaraná Antarctica sponsorship
of Brazil National Team Confederação Brasiliera de
Futebol
http://www.guarana.dk/en
Brand: BOA
Antarctica
Brewery: Brahma
(owned by AmBev,
part of InBev)
Issue of brand extensions…
• Using brand elements from an unregulated
or socially acceptable product to help sell
a regulated product or one that would
raise concerns.
• No apparent guidelines
Anheuser-Busch
• A-B competed with Interbrew for AmBev in 2004
• Interbrew won
• A-B lost distribution channel in Brazil, but is now
using CCU partnership in Argentina to produce
Budweiser, and Coca Cola to help distribute in
Brazil.
• A-B Sponsors River Plate, Argentina’s leading
football team, and related properties.
River Plate (Argentina)
F1 - BMW
Williams
Bavaria (Columbia)
• SABMiller (England) bought Grupo Empresarial Bavaria in
2005 for US$7.8 billion.
• Two of Bavaria’s main brands are using sport imagery & sex in
their marketing:
– Cristal
– Aguila
From Bavaria website, linked to cristal brand
http://www.cristal.com.pe/05_conectate/publicidad_impresos.asp
Industry Self-Regulatory Code
• Brazilian Council for
Self Regulation in
Advertising
• 2003
– Women in bikinis,
etc., must only
appear in ads that
portray beaches
and/or swimming
pools
Issue of Sport Sponsorship
• Functions as an implicit
form of social marketing
• Attributes socially
desirable qualities to
alcohol & tobacco
products, ultimately to the
actions of drinking and
smoking themselves, not
simply to brands
• Youth have been found to
be particularly vulnerable
to these messages
(Sparks,1999)
Does alcohol sponsorship affect consumption?
Yes, but we need more research….
• Some longitudinal survey evidence that
sponsorship increases consumption among youth:
• Ellickson et al. (2005) exposure to beer concession
stands at sports or music events predicated f of 15
year old drinking.
• Evidence that consumption goes up in the
context of major events such as Carnival and
World Cup.
• Examples of “time outs” where people engage in
“legitimate deviance” of excessive drinking.
But the consumption question somewhat
misses the point. What is the long term effect
of these brand strategies?
The increased marketing of youth-oriented alcohol
sponsored events, in particular:
• Insinuates beer and drinking into youth culture, but
outside the context of family controls.
• Provides parallels to Carnival and World Cup, but on a
continuing, mass produced basis.
• Sells drinking as a functional component of socializing,
dating and having fun. (Stokes, CEO of A-B)
• Normalizes association between masculinity, sport and
beer: men as doers & drinkers, women as watchers &
drinkers.
What to do?
• Will need cross-national strategy
• Framework Convention on Tobacco
Control is good model.
• In our experience with tobacco, other
categories will step up: telecoms,
transportation, .com’s, more.
• They have been “locked out”
FCTC sponsorship-related clauses
• Sponsorship: ‘any form of contribution to any event,
activity or individual with the aim, effect or likely effect of
promoting a tobacco product or tobacco use either
directly or indirectly’
• Each ratifying country:
– ‘in accordance with its constitution or constitutional
principles, [shall] undertake a comprehensive ban of
all tobacco advertising, promotion and sponsorship’
– [shall adopt and implement legislation] ‘providing for
protection from exposure to tobacco smoke in indoor
workplaces, public transport, indoor public places,
and, as appropriate, other public places’
Issues in global markets (Kotler, 1986)
•
•
•
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Legislation, regulations
Cultural differences
Performance expectations & standards
Local customs & knowledge
Networks & key contacts
Competitors (domestic & international)