Businesses engaged in marketing war to promote corporate image, globally
The World Cup, one of the biggest and the most popular sports events in the world, is a battlefield not only for soccer players but also for companies trying to promote their corporate image.
“Big sports events like the Olympics and the World Cup offer companies a rare opportunity to expose their brands to the biggest number of customers in the shortest amount of time,” a report by the Samsung Economic Research Institute said.
“With interests in sports events increasing, such business opportunities will also grow in the future,” it said.
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Hyundai Motor’s compact car i30s in Frankfurt last month decorated with the image of the national flags of countries participating in the
World Cup finals as part of Hyundai’s sports marketing strategies. The Korean carmaker is a FIFA partner. Hyundai Motor | The amount of money the companies are spending during the World Cup 2010 South Africa is beyond anyone’s expectations.
Adidas, an official sponsor for FIFA, plans to run its commercials during every football match and provide the “Jabulani,” the official match ball of the World Cup 2010 South Africa. The sports apparel manufacturer also supports 12 national teams including Germany, Spain and France with $125 million each. But through its marketing activities, adidas plans to sell products worth $1.7 billion globally this year by spreading its image as the No. 1 supporter for the World Cup games.
Coca Cola, another FIFA sponsor, is another example. The U.S. company has been preparing for the global event by doing such things as traveling with the World Cup trophy to 84 countries for 225 days. It also employed eight star players such as Messi and Henri to appear in their TV commercials.
The amount of money is not important, but it is better than listing their ads in each newspaper in 200 countries around the world at the same time, industry officials say.
“It is much easier for companies to expose their brand image during the games when people in more than 200 countries around the world are watching on television,” an official said.
Korean companies are also gearing up for a marketing blitz in time for the World Cup finals currently being held in cities of South Africa.
Major firms are running numerous promotional events and media commercials depicting World Cup fever in and out of the country. Some have even released products with festive images of the event to become better known to worldwide spectators. The global investment bank Goldman Sachs said the Korean football team is also supported by the active sports marketing of major exporters such as Hyundai Motor Co. and Samsung Electronics Co.
Hyundai Motor, the country’s largest carmaker, and its affiliate Kia Motors are currently hosting street cheering events in 32 countries around the world as part of its effort to enhance its corporate image globally. Since Hyundai Motor is a FIFA partner, the automaker can use official emblems, mascots and logos of the World Cup.
Experts say that the automaker is spending about $500 million for its World Cup marketing programs this year. But it will see substantial effects, probably more than $10 billion from the marketing effect of exposing its brand to international spectators.
In fact, Hyundai and Kia sold a total of 5.4 million vehicles in the global market this year, raising its global market presence to 8.4 percent from 7.8 percent last year.
In the local market, Korean firms such as Samsung Electronics, Hyundai-Kia, LG, SK and Lotte are likely to spend 7-8 billion won each during the month-long soccer tournament.
The marketing effect during sports events is usually worth three times more than the amount of investment.
When the Korean team wins a game, it changes the whole story, not only for the companies but also for the national economy.
Whenever the team wins a game, the country will see an estimated 2.5 trillion won ripple effect on the overall economy, Hyundai Research Institute said in its report.
“If the Korean team advances past the first round at the world cup, global awareness of Korea will increase and lift Koreans’ pride and morale,” it said.
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