GIVE A THOUGHT TO THE GLOBAL OLYMPIC SPONSORS – ARE THEY GETTING THEIR ROI?

I read an article on sponsors remaining largely silent leading up to the winter Olympics in China, and that got me thinking about the impact politics and negative publicity against rights holder has on brands. 

 

Sponsors spend enormous amounts on rights fees to partner with an event as big as the Olympic Games.  The sponsorship grants them logo use, branding and activation rights to leverage their own brand which could cost as much as the rights fees! And sponsorships are negotiated long term. Then they rely on the rights holders to decide countries, venues, fixtures and so forth.  After all, they are not specialists in running sports events, but rather in managing their own brands, and the sponsorship must work for them as they must answer to their shareholders and stakeholders as to why they are in the sponsorship in the first place!

 

The pandemic brought the planning of the 2020 Olympic games (which took place in 2021) to a grinding halt and sponsors had to pivot quickly.  They had to anticipate how the new reality would impact the live event, if it happened at all, and decide the best way forward to leverage their association and how to achieve an ROI through product sales.  Awareness is one thing but using the opportunity to create sales is another.

 

Many international Olympic sponsors chose to lie low during the 2020 summer Olympics in Japan due to public anti-Olympic sentiment.  Getting on the wrong side of the consumer is tantamount to killing the brand. 

 

Sponsors also had to contend with the new pandemic consumer insights.  Brand loyalty went out the window and trying out new brands became a norm, which smaller brands capitalised on.  But the most important consumer insight pointed to customers wanting brands to directly connect with them.  They wanted personalisation and to know that brands cared for the community – giving back to those that supported them through the years.  Therefore, Olympic sponsors had to pay even more attention to the consumer feeling and listen to the talk.

 

And now we have the Winter Olympics in a country that is well known for allegations of human rights violations, not to mention the questions being asked on their climate change policies, disregard for equality and inclusivity and general disregard of human respect.  For all these reasons many Global Olympic partners and sponsors have opted to keep a low profile, which has opened the door for local Chinese companies to grow their brand awareness.

 

The idea behind China’s hosting of the Olympics was to use the opportunity to promote the country as a tourist destination and promote and inclusive, Green Olympics, hence their slogan ‘faster, higher, stronger, together’.  But I question as to whether the opposite is happening?

 

The opening ceremony was a spectacular affair showing off China’s tech prowess.  The symbolic Olympic flame was specially designed for the first ever futuristic underwater torch relay using gaseous fuel that was smokeless and free of pollution. There can be no doubt China is in the forefront of anything technical.

 

But both Olympic Games were spectator free, so everything went online, and people consumed the Olympics via traditional TV, OTT and CTV (i.e. streaming using various different devices). 

 

Sponsors would have taken to online and TV, but so did every other brand not to mention the publics ad fatigue and the ability to skip the ads. All that sponsorship money and where is the uniqueness?

 

What about the off-the-field activations around the country staging the games, not to mention the fun activation areas at the entrance of each stadium where fans get involved in fun activities that the sponsors normally put on.  This is all part of the fun of a live event such as the Olympic Games.   And this also is where sales are generated, particularly for the FMCG brands such as Coca-Cola.

 

Whether the sponsors got their monies worth in Japan and China is questionable.  I cannot answer for them but having been intricately involved with many of the sponsors over the years at these massive sports events, and travelled the world with them, my heart goes out to their dilemma.

 

When controversy hits a sports body or event, sponsors get dragged it, which is a pity.  They sponsor events in good faith and when they must put the entire PR team onto reputations management to protect the brand, it is not fair.  Yes, brands are aware that things can happen and go wrong, and the PR team is always in the loop, but to be brought in to answer rights holders’ controversy is taking it to another level.

 

My observation over the 30 years that I have been in sponsorship is that there is a lack of foresight many rights holders have on the repercussion of their behaviour on sponsors.  After all, sponsorship is the lifeblood of any sport.  Lack of sponsorship impacts dramatically on any sporting association and the level of event they are able to produce. 

 

My final thought on the matter is that sports associations must bear in mind the impact that the pandemic has had on the bottom line of all companies (small, medium and large corporations), and when sponsorships come up for renewal, if they are not careful, the money could well dwindle somewhat.   I reiterate, sponsors are there to grow their brand and not to look after sporting associations. They have boards and shareholders to answer to!  Never forget!

 

 

KFC COMMITS TO CONTINUED SUPPORT OF MINI CRICKET, T20 INTERNATIONALS AND THE PROTEAS

As South Africa continues to tap into our resilience as a nation during this challenging period, KFC and Cricket South Africa (CSA) are thrilled to announce the renewal of their partnership to keep the Protea fire burning by investing in the sport of cricket. The renewal of the formidable partnership that started just over a decade ago sees KFC retain its position as the title sponsor of the T20 internationals with CSA, official partner to the Proteas and official sponsor of the flagship, KFC Mini-Cricket programme.

While the COVID-19 pandemic crisis continues to redefine life as we know it; South Africans will also face the socio-economic challenges that will come as a result of it. Amidst such uncertainty, KFC acknowledges its role as a pillar of the South African sporting community by showing unwavering support of South African Cricket, a sport that continues to unite us all.

“KFC believes sport is a great catalyst to truly unite and give hope. As a brand that operates in communities all over SA and one that is passionate about investing in those communities, it is paramount that we are part of the solution,” said Dhruv Kaul, Chief Marketing Officer of KFC South Africa.  

“We are aware, more than ever, that sport also remains a major contributor to economic and social development in this beautiful country. We continue to be proud of the partnership with one of South Africa’s most loved sports. In this next chapter, we look forward to continuing the growth of one of the biggest sporting grassroots development programmes, partnering with our Proteas team and their fans at T20 International matches and supporting national cricket at the highest level,” concludes Kaul.

“CSA is delighted about this decision by KFC and we are excited for the sport of cricket and its development that this strategic partnership with KFC is being extended. We are particularly excited that our continued association with a strong brand like KFC will further advance the game of cricket and help to unearth new talent for the overall purpose of ensuring the sustainability of our cricket pipeline structures”, said Jacques Faul, Acting Chief Executive Office for Cricket South Africa.

The renewed partnership will be for five years and three years, respectively. KFC will also continue being the Protea’s Official Restaurant for the next five years.

KFC Mini-Cricket impacts communities in Limpopo through intentional integrations

Sponsorship gives brands the opportunity to connect their customers with something they love and are passionate about. For many communities across South Africa, these connections present an opportunity for improvement of their worlds, inspiring unity, hope and potentially making a significant impact on various aspects of everyday life in a tough environment.

A group of children from Giyani, a small town in Limpopo have been offered this kind of opportunity for growth and development through their participation in KFC Mini-Cricket, under the guidance of their coach, Patrick Mabasa, - a teacher by profession.

“Cricket is a calling for me and seeing kids interact through the game, makes my heart smile.” says Mabasa of the root of his passion for the game. “Being part of the KFC Mini-Cricket programme, I simply wanted to encourage children to be active members of the community through sport – one which they’ve grown to love immensely, and which has taken a central role in their lives.”

When asked why coaching is important for developing kids, he says that the lessons learnt both on and off the field of play helps develop tolerance and respect in children and equips them better to recognise and appreciate the differences and similarities between themselves and others.  “This, in effect, encourages social cohesion that can help alleviate some of the harms kids are exposed to in their everyday lives at schools and in their communities,” he says.
Driven by his love for teaching and imparting important life lessons, Mabasa thought it would be great to create a space for children who play KFC Mini-Cricket to have a library in which they can cultivate their knowledge and learn without hindrances. It’s this ability to encourage them to become all-rounders, beyond cricketing, that sets Mabasa apart. With the children gathering diligently after school, Mabasa realised education and sport play a mutually beneficial role in enabling these children to grow into members of society who will make meaningful contributions.

The seamless incorporation of sport and education is a demonstration of how targeted sponsorships in local communities can drive authentic engagement that directly benefits the people – with benefits to the brand as a welcome by-product. KFC remains committed to continuing to make a difference and noteworthy impact in the lives of children throughout South Africa.

Danone Nations Cup Teams Up with MRP Sport

 

South African sporting and outdoor value retailer, mrpsport (Mr Price Sport) has teamed up with the Danone Nations Cup as the official apparel sponsor. While the soccer tournament is in its 20^th. year, this is the inaugural year of the Danone Nations Cup partnering with mrpsport.

This collaboration is a great opportunity for mrpsport to showcase its very own Maxed brand on the world stage. With value at the core of its offering, Maxed continues to ensure that its world-class fitness and sporting range remains accessible to every level of athlete – novice or pro – no matter their budget. The Maxed kit that will be featured throughout the tournament includes Maxed soccer balls, Maxed active tees and Maxed caps, as well as exciting spot prizes of Maxed soccer kit hampers.

What does the new collaboration with Danone Nations Cup mean for mrpsport? "We are really excited to be supporting a national soccer event that enables local young talent to participate at a global level," says mrpsport & www.mrpsport.com Marketing Executive, Dylan Cherry.

The Danone Nations Cup is the world’s biggest soccer tournament for aspiring soccer legends between the age of ten and twelve years old. The tournament first kicked off in 2000, and has since become more than a “kids’ world cup” - it has become a memorable and invaluable experience for millions of children, all built on the central sporting values implemented in the first edition of this tournament: fair play, open-mindedness, humanity, proximity and enthusiasm.

Since its inception, the Danone Nations Cup has seen more than 2,5 million aspiring soccer players compete annually. Across the globe, 34,000 schools and 11,000 clubs take part every year. The tournament has grown from an eight-nation event with 20 boys’ teams competing this year. Previously boys and girls could be included in the teams and in 2017 the Danone Nations Cup introduced an all-girl tournament to run in conjunction with the original format of the event.

The Danone Nations Cup concept followed the 1998 FIFA World Cup in France.  On seeing the power that soccer has in bringing entire nations together, Group Danone introduced a similar tournament for youngsters with the message of encouraging kids to believe in their dreams and bringing health, through food to as many people as possible.

South Africa is one of only a couple of countries that has been participating in the tournament since its inception in 2000 and is one of two countries that has won the tournament three times; in 2003, 2007 and 2009.

“We are extremely excited to have mrpsport on board,” said Chantel Ehlers, Internal Communications Manager, Danone Southern Africa.  “This year is Danone’s centenary and the tournament is 20 years old and to mark this auspicious occasion we will be staging a double-tournament (2018 and 2019) in the country and city where Danone first started, Barcelona, Spain.  Further, we are using this milestone and the power of football to make a strong connection to our ‘One Planet. One Health’ brand platform.  Mrpsport has come on board at a meaningful time in the history of Danone and the tournament.”

To stay up-to-date with the latest on all things Danone Nations Cup, visit DNC South Africa on Facebook, follow @DNCSouthAfrica on Twitter.  For more on the world finals visit www.danonenationscup.com, and to kit out your aspiring football stars, visit mrpsport.com, head to your nearest MRP Sport store, or shop on the mrp app.