MARKETING IN CHINA MARKETING IN CHINA Presented By Robin Teow

What is Ambush Marketing? / ?

Ambush Marketing pay sponsorship fee pay sponsorship fee BRAND A BRAND A (Sponsor) (Sponsor) associate themselves w/o paying BRAND B (Non-Sponsor/ Ambusher) EVENT

Ambush Marketing Share an events publicity using creative marketing strategy Share an events publicity using creative marketing strategy Exploit media attention or capitalize on the popularity of an event (broad) Exploit media attention or capitalize on the popularity of an event (broad) Direct and intentional efforts of one company to outshine a competitors official association with an event (narrow) Direct and intentional efforts of one company to outshine a competitors official association with an event (narrow) Not necessarily an illegal act Not necessarily an illegal act

Ambush Marketing in China

Awakening Dragon…

THE RED BECKONS China is poised to become the worlds second largest consumer market by 2014 China is poised to become the worlds second largest consumer market by 2014 From 1979 to 2006, Chinas real GDP grew at an average annual rate of 9.6% From 1979 to 2006, Chinas real GDP grew at an average annual rate of 9.6% GDP hit trillion yuan (US$2.7 trillion) in 2006 GDP hit trillion yuan (US$2.7 trillion) in 2006

THE RED BECKONS Retail sales in 2006 reached trillion yuan (US$ billion) Retail sales in 2006 reached trillion yuan (US$ billion) Urban residents per capita disposable income was up 12.1% to 11,759 yuan (US$1,295) Urban residents per capita disposable income was up 12.1% to 11,759 yuan (US$1,295) The savings deposits of households amounted to 16.2 trillion yuan by the end of 2006 The savings deposits of households amounted to 16.2 trillion yuan by the end of 2006

The Great Myth ( ) ……if the 1.3 billion mainland Chinese buy only one of your products, you will make a huge fortune…… ……if the 1.3 billion mainland Chinese buy only one of your products, you will make a huge fortune……

Ambush Marketing in China No specific laws or regulations on ambush marketing No specific laws or regulations on ambush marketing Laws that have some applicability are: Laws that have some applicability are: Article 21 of the Advertising Law of the PRC Article 2 of the Law Against Unfair Competition of the PRC

The Context

Top entertainment & sporting (and other) events Top entertainment & sporting (and other) events –receive broad (frequently global) media coverage* –target unimaginable audiences** –result in unique showcases for global brand exposure –attract marketers and move enormous business interests –exercise irresistible appeal towards smart guys (eager to take advantage of the events' resonance without big sponsorship spending) * Soccer WC 1974 TV audience for the final game: 600 mln. - in 2006: 1,2 bln. - **Broadcasting rights in 1974: 11,8 mln. $ - in 2006: 1,3 bln. $ Soccer European Championship 2004: global TV audience 9 bln. FIFA Soccer WC 2006: global audience 30 bln. - final match, 1 bln.

The Figures

Past Events Seoul1988 $338 million Barcelona1992 $700 million Turin2006 Main sponsor: $52 million each NBC – Exclusive broadcast rights: $613 million FIFA World Cup Germany2006 Official Partner: $59 million each National Sponsor: $16.9 million each

Future Events Beijing (2008) – Summer Olympic Games Beijing (2008) – Summer Olympic Games –OC has already taken in $1 billion in sponsorship fees, $1 billion to follow »11 Beijing partners »10 Beijing sponsors »30 Beijing Suppliers & Licensing program Vancouver (2010) – Winter Olympic Games Vancouver (2010) – Winter Olympic Games –expects $1.345 billion in revenue »TV: $600 million »Local sponsors: $396 million »Tickets: $218 million »Slice of TOP: $131 million

The Dilemma

Those figures irresistibly attract companies not involved as Official Sponsors Those figures irresistibly attract companies not involved as Official Sponsors Everybody wants to benefit from broad interest and extensive media coverage around the major sports events Everybody wants to benefit from broad interest and extensive media coverage around the major sports events Organizers and Official Sponsors of those events try to defend their economic interests and prevent ambushers from getting a free footboard ride Organizers and Official Sponsors of those events try to defend their economic interests and prevent ambushers from getting a free footboard ride

Show Stealers … and some of their tricks

Soccer European Championship 2000

FIFA SOCCER WORLD CHAMPIONSHIP 2006 GERMANY

BEER COMPANY 1000 Dutch team fans blocked outside the stadium and forced to remove orange clothes featuring the logo of a beer company (not sponsor). Some of them assisted in underwear.

Sunset Apparel

National carrier Lufthansa invited passengers to share its passion for the Soccer WC and depicted a football on the nose of a significant number of its planes. Emirates (official sponsor) was not exactly happy, but LH got away with it. LUFTHANSA National carrier Lufthansa invited passengers to share its passion for the Soccer WC and depicted a football on the nose of a significant number of its planes. Emirates (official sponsor) was not exactly happy, but LH got away with it.

CHIPS Chips associated with German sausages and a football, definitely Yes !

Whats Hot? Going For Marketing Gold Beijing Olympics

Beijing Olympics One world, one dream... …and five mascots …and five mascots

Famous Examples 1994 Winter Olympics in Lillehammer, Norway, sponsored by Visa, American Express ran ads claiming that Americans do not need a visa to travel to Norway 1994 Winter Olympics in Lillehammer, Norway, sponsored by Visa, American Express ran ads claiming that Americans do not need a visa to travel to Norway 1996 Olympics in Atlanta, Nike placed its slogans a stones throw away from the main stadiums of the Games and erected a Nike Village close to the official Atlanta Olympic Sponsor Village, overshadowing Adidass promotional efforts as the official sponsor 1996 Olympics in Atlanta, Nike placed its slogans a stones throw away from the main stadiums of the Games and erected a Nike Village close to the official Atlanta Olympic Sponsor Village, overshadowing Adidass promotional efforts as the official sponsor

Protect Your Rights!

Beijing Olympics 2008 Legislation Against Ambush Marketing Regulations on the Protection of Olympic Symbols Regulations on the Protection of Olympic Symbols Unfair Competition Law Unfair Competition Law PRC Law on the Protection of Consumers Rights and Interests PRC Law on the Protection of Consumers Rights and Interests

Beijing Olympics 2008 Administrative Authorities State Administration of Industry and Commerce State Administration of Industry and Commerce General Administration of Press & Publication General Administration of Press & Publication General Administration of Customs General Administration of Customs State Administration of Radio, Film & Television State Administration of Radio, Film & Television State Intellectual Property Office State Intellectual Property Office

Beijing Olympics 2008 Preventive Measures Against Ambush Marketing No advertising at sports venues No advertising at sports venues Advertising at non-sports venues will be managed by the BOCOG Advertising at non-sports venues will be managed by the BOCOG Regulations on the size of symbols that appear on sportswear, equipment and other materials Regulations on the size of symbols that appear on sportswear, equipment and other materials City Management Plan City Management Plan

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