1. WHAT DO BRANDS WANT FROM SPORT SportAccord 2005, Berlin Michel Perraudin President WFSGI (World Federation of the Sporting Goods Industry)

2. April 2005 MP/ew2 WHAT DO BRANDS WANT FROM SPORT? Brands seek to capitalize upon Sport's key assets...  Overwhelming presence  Positive core values  Strong linkage with consumers  Increasing economic power

3. April 2005 MP/ew3  OVERWHELMING PRESENCE OF SPORT Sport has developed a presence and visibility that transcends nearly everything else... Major events with global impactMajor events with global impact Multitude of locally recurring events with impact becoming more globalMultitude of locally recurring events with impact becoming more global Extensive media coverage and visual presenceExtensive media coverage and visual presence Active part of nearly everyone's lifeActive part of nearly everyone's life

4. April 2005 MP/ew4  POSITIVE CORE VALUES OF SPORT Sport is (still) associated with positive core values... Winning and winners (modern heroes)Winning and winners (modern heroes) Youth and healthYouth and health Team spiritTeam spirit Fairness and comradeshipFairness and comradeship Overcoming of boundaries and limitsOvercoming of boundaries and limits Competitive but peacefulCompetitive but peaceful

5. April 2005 MP/ew5  STRONG LINKAGE WITH CONSUMERS There is a strong and easy link between Sport and nearly every consumer... Every consumer believesEvery consumer believes – He/she understands Sport – He/she is a genuine sportsperson Every consumer watches or plays Sport and buys sporting goodsEvery consumer watches or plays Sport and buys sporting goods Consumers are influenced by icons, role models, many of which are in SportConsumers are influenced by icons, role models, many of which are in Sport Sport has “merged” with Lifestyle, which is one of the major current consumption driversSport has “merged” with Lifestyle, which is one of the major current consumption drivers

6. April 2005 MP/ew6  INCREASING ECONOMIC IMPACT The business of Sport has developed into a powerful economic factor... Sports business generates a huge and very diversified turnoverSports business generates a huge and very diversified turnover Typically growing faster than GDPTypically growing faster than GDP With significant potential in emerging marketsWith significant potential in emerging markets Fairly resistant to crises in mature marketsFairly resistant to crises in mature markets

7. April 2005 MP/ew7 SO, WHAT DO BRANDS WANT FROM SPORT? SPORT'S KEY ASSETS Overwhelming presenceOverwhelming presence Positive valuesPositive values Linkage with consumersLinkage with consumers Economic powerEconomic power BRANDS' OBJECTIVES Leverage and visibility Assimilation of Brand and Sport values Direct access to and impact on consumers Return on investment

8. April 2005 MP/ew8 THE CASE OF THE SPORTING GOODS INDUSTRY The Sporting Goods Industry has the highest continuing “marketing investment” in Sport... Industry turnover: more than 80 billion USDIndustry turnover: more than 80 billion USD Marketing spending: more than 10% or 8 billion USD per yearMarketing spending: more than 10% or 8 billion USD per year –Approx. 50% in Sports Marketing –Approx. 50% in Communication and Advertising Sporting Goods Industry also probably has the highest impact from Brand investment in Sport

9. April 2005 MP/ew9 THE CASE OF THE SPORTING GOODS INDUSTRY (cont.) Leverage and visibility +++Leverage and visibility +++ Assimilation of Brand and Sport values ++Assimilation of Brand and Sport values ++ Direct access to/impact on consumers ++Direct access to/impact on consumers ++ Return on investment ? ?Return on investment ? ?

10. April 2005 MP/ew10 THE CASE OF THE SPORTING GOODS INDUSTRY (cont.) How to secure a reasonable return on investment ? Focus on (limited number) of top (global) symbolsFocus on (limited number) of top (global) symbols Leverage symbols through consistent and pervasive communicationLeverage symbols through consistent and pervasive communication Increase revenues through comprehensive merchandizingIncrease revenues through comprehensive merchandizing

11. April 2005 MP/ew11 THE CASE OF THE SPORTING GOODS INDUSTRY (cont.) Some prerequisites are however important to help secure ROI and a continuing investment from the side of the Brands Reasonable pricesReasonable prices Reasonable (increased?) visibility for Brands (display of manufacturers identification)Reasonable (increased?) visibility for Brands (display of manufacturers identification) Reasonable merchandizing rights (scope and royalties)Reasonable merchandizing rights (scope and royalties)

12. April 2005 MP/ew12 In addition, all involved need to join efforts in order to Increase active participation level in SportIncrease active participation level in Sport Preserve the positive values of SportPreserve the positive values of Sport