MARKETING IN CHINA MARKETING IN CHINA Presented By Robin Teow.

MARKETING IN MARKETING IN

CHINACHINA

Presented ByPresented By

Robin TeowRobin Teow

What is Ambush What is Ambush Marketing?Marketing?

啥是隐性啥是隐性 // 埋伏营销埋伏营销 ??

Ambush MarketingAmbush Marketing

pay sponsorship feepay sponsorship fee

BRAND A BRAND A (Sponsor) (Sponsor)

associate themselves w/o payingassociate themselves w/o paying

BRAND BBRAND B (Non-Sponsor/(Non-Sponsor/ Ambusher)Ambusher)

EVENT EVENT

Ambush MarketingAmbush Marketing

Share an event’s publicity using Share an event’s publicity using creative marketing strategy creative marketing strategy

Exploit media attention or capitalize on Exploit media attention or capitalize on the popularity of an event (broad)the popularity of an event (broad)

Direct and intentional efforts of one Direct and intentional efforts of one company to outshine a competitor’s company to outshine a competitor’s official association with an event official association with an event (narrow)(narrow)

Not necessarily an illegal actNot necessarily an illegal act

Ambush Marketing in Ambush Marketing in ChinaChina

Awakening Awakening Dragon…Dragon…

THE THE RED RED BECKONSBECKONS

China is poised to become the world’s China is poised to become the world’s second largest consumer market by second largest consumer market by 20142014

From 1979 to 2006, China’s real GDP From 1979 to 2006, China’s real GDP grew at an average annual rate of 9.6%grew at an average annual rate of 9.6%

GDP hit 20.94 trillion yuan (US$2.7 GDP hit 20.94 trillion yuan (US$2.7 trillion) in 2006trillion) in 2006

THE THE RED RED BECKONSBECKONS

Retail sales in 2006 reached 7.641 Retail sales in 2006 reached 7.641 trillion yuan (US$979.62 billion)trillion yuan (US$979.62 billion)

Urban residents’ per capita disposable Urban residents’ per capita disposable income was up 12.1% to 11,759 yuan income was up 12.1% to 11,759 yuan (US$1,295)(US$1,295)

The savings deposits of households The savings deposits of households amounted to 16.2 trillion yuan by the amounted to 16.2 trillion yuan by the end of 2006end of 2006

The Great Myth (The Great Myth ( 神神话话 ))

““…………if the 1.3 billion mainland if the 1.3 billion mainland Chinese buy only one of your Chinese buy only one of your products, you will make a huge products, you will make a huge fortune……”fortune……”

Ambush Marketing in ChinaAmbush Marketing in China

No specific laws or regulations on No specific laws or regulations on ambush marketingambush marketing

Laws that have some applicability Laws that have some applicability are:are:

Article 21 of the Advertising Law of Article 21 of the Advertising Law of the PRCthe PRC

Article 2 of the Law Against Unfair Article 2 of the Law Against Unfair Competition of the PRCCompetition of the PRC

The ContextThe Context

The ContextThe Context Top entertainment & sporting (and Top entertainment & sporting (and

other) eventsother) events– receive broad (frequently global) media receive broad (frequently global) media

coverage*coverage*– target unimaginable audiences**target unimaginable audiences**– result in unique showcases for global brand result in unique showcases for global brand

exposureexposure– attract marketers and move enormous attract marketers and move enormous

business interestsbusiness interests– exercise irresistible appeal towards smart exercise irresistible appeal towards smart

guys (eager to take advantage of the guys (eager to take advantage of the events' resonance without big sponsorship events' resonance without big sponsorship spending)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 FiguresThe Figures

Past EventsPast Events

SeoulSeoul 19881988 $338 million$338 million

BarcelonaBarcelona 19921992 $700 million$700 million

TurinTurin 20062006 Main sponsor: Main sponsor:

$52 million each$52 million each

NBC – Exclusive NBC – Exclusive broadcast rights:broadcast rights:

$613 million$613 million

FIFA World FIFA World CupCup

GermanyGermany

20062006 Official Partner:Official Partner:

$59 million each$59 million each

National Sponsor: National Sponsor:

$16.9 million each$16.9 million each

Future EventsFuture Events Beijing (2008) – Summer Olympic GamesBeijing (2008) – Summer Olympic Games

– OC has already taken in $1 billion in sponsorship OC has already taken in $1 billion in sponsorship fees, $1 billion to followfees, $1 billion to follow» 11 Beijing partners11 Beijing partners» 10 Beijing sponsors10 Beijing sponsors» 30 Beijing Suppliers & Licensing program30 Beijing Suppliers & Licensing program

Vancouver (2010) – Winter Olympic Vancouver (2010) – Winter Olympic GamesGames– expects $1.345 billion in revenueexpects $1.345 billion in revenue

» TV: $600 millionTV: $600 million» Local sponsors: $396 millionLocal sponsors: $396 million» Tickets: $218 millionTickets: $218 million» Slice of TOP: $131 millionSlice of TOP: $131 million

The DilemmaThe Dilemma

The DilemmaThe Dilemma

Those figures irresistibly attract Those figures irresistibly attract companies not involved as Official companies not involved as Official Sponsors Sponsors

Everybody wants to benefit from broad Everybody wants to benefit from broad interest and extensive media coverage interest and extensive media coverage around the major sports eventsaround the major sports events

Organizers and Official Sponsors of those Organizers and Official Sponsors of those events try to defend their economic events try to defend their economic interests and prevent ambushers from interests and prevent ambushers from getting a free footboard ridegetting a free footboard ride

Show StealersShow Stealers

……and some of their tricksand some of their tricks

Soccer European Soccer European Championship 2000Championship 2000

FIFA SOCCER WORLD FIFA SOCCER WORLD CHAMPIONSHIP 2006CHAMPIONSHIP 2006

GERMANYGERMANY

BEER COMPANYBEER COMPANY

1000 Dutch team fans blocked outside the 1000 Dutch team fans blocked outside the stadium and forced to remove orange stadium and forced to remove orange clothes featuring the logo of a beer clothes featuring the logo of a beer

company (not sponsor). Some of them company (not sponsor). Some of them assisted in underwear.assisted in underwear.

Sunset ApparelSunset Apparel

LUFTHANSANational carrier Lufthansa invited National carrier Lufthansa invited

passengers to share its passion for the passengers to share its passion for the Soccer WC and depicted a football on the Soccer WC and depicted a football on the nose of a significant number of its planes.nose of a significant number of its planes.Emirates (official sponsor) was not exactly Emirates (official sponsor) was not exactly

happy, but LH got away with it.happy, but LH got away with it.

CHIPSCHIPS

Chips associated with German Chips associated with German sausages and a football, sausages and a football,

definitely Yes !definitely Yes !

What’s Hot?What’s Hot?

Going For Marketing Gold Going For Marketing Gold Beijing OlympicsBeijing Olympics

Beijing OlympicsBeijing Olympics One world, one dream...One world, one dream...

……and five mascotsand five mascots

Famous ExamplesFamous Examples

1994 Winter Olympics in Lillehammer, 1994 Winter Olympics in Lillehammer, Norway, sponsored by Visa, American Norway, sponsored by Visa, American Express ran ads claiming that Americans Express ran ads claiming that Americans do not need a ‘visa’ to travel to Norwaydo not need a ‘visa’ to travel to Norway

1996 Olympics in Atlanta, Nike placed its 1996 Olympics in Atlanta, Nike placed its slogans a stone’s throw away from the slogans a stone’s throw away from the main stadiums of the Games and erected main stadiums of the Games and erected a “Nike Village” close to the official a “Nike Village” close to the official Atlanta Olympic Sponsor Village, Atlanta Olympic Sponsor Village, overshadowing Adidas’s promotional overshadowing Adidas’s promotional efforts as the official sponsorefforts as the official sponsor

Protect Your Rights!Protect Your Rights!

Beijing Olympics 2008Beijing Olympics 2008Legislation Against Ambush Legislation Against Ambush

MarketingMarketing Regulations on the Protection of Regulations on the Protection of

Olympic SymbolsOlympic Symbols Unfair Competition LawUnfair Competition Law PRC Law on the Protection of PRC Law on the Protection of

Consumers’ Rights and InterestsConsumers’ Rights and Interests

Beijing Olympics 2008Beijing Olympics 2008Administrative AuthoritiesAdministrative Authorities

State Administration of Industry State Administration of Industry and Commerceand Commerce

General Administration of Press & General Administration of Press & PublicationPublication

General Administration of CustomsGeneral Administration of Customs State Administration of Radio, Film State Administration of Radio, Film

& Television& Television State Intellectual Property OfficeState Intellectual Property Office

Beijing Olympics 2008Beijing Olympics 2008Preventive Measures Against Preventive Measures Against

Ambush MarketingAmbush Marketing No advertising at “sports venues”No advertising at “sports venues” Advertising at “non-sports venues” Advertising at “non-sports venues”

will be managed by the BOCOGwill be managed by the BOCOG Regulations on the size of symbols Regulations on the size of symbols

that appear on sportswear, that appear on sportswear, equipment and other materialsequipment and other materials

City Management PlanCity Management Plan

Website: Website: www.lehmanlaw.comwww.lehmanlaw.com

Many Many Thanks…Thanks…