robdylan

The Rugby World Cup and market momentum


Written by Rob Otto (robdylan)

Posted in :Original Content, RWC 2015 on 23 Oct 2015 at 11:02
Tagged with : , , , ,

As a truly global spectacle and pinnacle of the international game, there’s very little doubt that the four-yearly Rugby World Cup competition is special. Coaches and players plan international careers around World Cups, fans put their daily lives on hold while it’s in progress and as we’ve seen in 2015, the global game seems to somehow always take a step u in terms of quality whenever the eyes of the world are watching. Rugby World Cups, though, have a significant impact off the field, with major global brands using the tournament as an opportunity for maximum exposure – hoping to get a jump on their rivals.

Sponsorships are an entrenched part of the professional game, with multinational corporations investing millions in event like the Rugby World Cup in order to increase not only brand awareness, but, more importantly, sales and revenue. For those listed on major global indices, there could even be an impact in terms of share price, making the decision to participate in a Rugby World Cup sponsorship deal something that piques the interest of potential investors. And here you thought that betting on the outcome of a game was the only way to make money off rugby!

The attractiveness of the Rugby World Cup, from a potential sponsor’s point of view, is clear. Not only does World Rugby offer a truly global platform (with 460 000 expected to watch games live and hundreds of millions more tuning in via TV), but they also guarantee their chosen investors something even more valuable: exclusivity. Anyone want to take a punt on just how much that exclusivity on alcohol sales across the tournament venues must meant to Heineken? Based on the amount of the stuff I personally drank at the Olympic Stadium two weeks ago, I reckon there was a percent or two on the share price right there.

Direct sales of merchandise, though, are unlikely to be the real carrot for many of the sponsors involved; after all, it’s not like you can send a shipment via DHL, or buy a MasterCard product (since they have none) directly at the stadium. Of far more value is the combination of maximum exposure of your own brand and the absence of any direct competition. How much must a company like Emirates be enjoying the absence of a Qantas logo on the Wallaby jersey for a period of 6 weeks? Likewise, official sponsor Societe General must perceive huge benefit from their own World Cup exposure, at the expense of banking rivals like RBS (Scotland), Barclays (whose ABSA subsidiary sponsors South Africa) and Principality (Wales). Argentina are usually sponsored by VISA, but MasterCard won’t have to worry about that for now.

Rival sponsors will often go to extreme lengths to try and carve out a piece of somebody else’s pie (thankfully, these days it tends to be more subtle than MTN’s attempt to hijack the Vodacom Cup some years back by acquiring naming rights to the Valke team). With rival apparel providers to tournament sponsor Canterbury allowed just a small logo on the breast of each of the jerseys they manufacture, one in particular seems to be trying some rather dastardly tactics to get their logo a little more airtime. I mean, I’m sure it’s nothing more than a coincidence that the All Black’s new tournament haka formation co closely resembles the triangular sigil of their sponsor, Adidas?



33 Comments

  • I’m not sure what to comment on but speaking of branding, who’s curious about the 2016 Sharks jersey?

  • Comment 1, posted at 23.10.15 11:23:34 by vanmartin Reply
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  • @vanmartin (Comment 1) : THIS GUY

  • Comment 2, posted at 23.10.15 11:26:37 by robdylan Reply
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  • @robdylan (Comment 2) : Have you come across any hints on the direction BLK are taking on this one? It’s supposed to be commemorative if I’m not mistaken?

  • Comment 3, posted at 23.10.15 11:28:19 by vanmartin Reply
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  • @vanmartin (Comment 3) : Rumours are the jersey could be black with a bit of white. Id still love to see the Sharks play Super rugby and CC in the same traditional jersey design. But thats just me. Good piece though Rob

  • Comment 4, posted at 23.10.15 11:38:22 by SheldonK Reply

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  • @SheldonK (Comment 4) : Please tell me that first sentence was sarcastic :grin:

  • Comment 5, posted at 23.10.15 11:43:07 by vanmartin Reply
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  • @vanmartin (Comment 5) : Possibly…but its also remarkably accurate i feel :)

  • Comment 6, posted at 23.10.15 11:46:11 by SheldonK Reply

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  • Very interesting read. I’d love to see the stats backing up this piece. I know Rob is right though.

    I read a piece a while back which said that Nike calculated the value of their sponsorship of Tiger Woods. They took every time people mentioned the sponsorship on tv or saw Tiger wearing Nike apparell they got $34m worth of advertising in one tournament. So it is definitely worth their while.

  • Comment 7, posted at 23.10.15 11:47:04 by StevieS Reply
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  • @SheldonK (Comment 6) : :lol:

  • Comment 8, posted at 23.10.15 11:48:01 by StevieS Reply
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  • @SheldonK (Comment 6) : I hope they go with a pastel tweed simply to make you eat crow :twisted:

    Seriously though, I’d really like a very minimalistic design for next year.

  • Comment 9, posted at 23.10.15 11:59:48 by vanmartin Reply
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  • @vanmartin (Comment 9) : KISS = Keep It Simple Sharks

  • Comment 10, posted at 23.10.15 12:01:07 by StevieS Reply
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  • @vanmartin (Comment 9) : Pastel tweed would be amazing!! hahaha Your thoughts on the same jersey to be worn for both Super rugby? The traditional black and white strip one

  • Comment 11, posted at 23.10.15 12:09:56 by SheldonK Reply

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  • I wonder if the Boks will be allowed to stand in an “a” formation during the Haka….or are such privileges reserved for only the head boys of world rugby? :twisted:

  • Comment 12, posted at 23.10.15 12:16:38 by FireTheLooser Reply

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  • @FireTheLooser (Comment 12) : Shaka’s bullhorn formation comes to mind ;) What if we spread out in a line across the entire width of the field…that could put them off a bit. Jokes aside though its one of the great traditions in world rugby- opposition teams should stand together and respect it just like they would the anthem

  • Comment 13, posted at 23.10.15 12:20:45 by SheldonK Reply

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  • @SheldonK (Comment 13) : Respect a savage dance by the opposition, telling you that they are going to kill you? :roll:

    I’ve never seen the AB’s respecting any of Samoa, Fiji or Tonga while they’re doing their dance…but the rest of the rugby playing world is forced to stand and watch grown men dancing and threatening their lives….I say, allow the opposition to respond any which way they choose (without getting physical obviously).

  • Comment 14, posted at 23.10.15 12:26:16 by FireTheLooser Reply

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  • @SheldonK (Comment 13) : @FireTheLooser (Comment 14) : I love the traditions and pride associated with the Haka.

  • Comment 15, posted at 23.10.15 12:34:35 by StevieS Reply
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  • Where I live, nobody even knows about this “truly global” event you’re going on about.

  • Comment 16, posted at 23.10.15 12:38:39 by fyndraai Reply
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  • @FireTheLooser (Comment 14) : Im afraid i disagree eventhough i do see your point and i know others that agree with your feelings. im not sure ive seen the All blacks disrespect Samoa, Fiji etc but perhaps i havnt watched that closely. Personal feeling- im in no way good enough but if i was a Bok id love to stand there and have them throw down the challenge to me. Id def be motivated after it.

  • Comment 17, posted at 23.10.15 12:39:36 by SheldonK Reply

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  • @fyndraai (Comment 16) : U gotta get out of Bloem to get some signal mate ;)

  • Comment 18, posted at 23.10.15 12:40:33 by SheldonK Reply

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  • Imo corporations sponsor sporting events for the benefit and entertainment of their executives and employees privileged enough to get to attend. From a shareholders perspective it’s almost certainly a net loss.

    Similarly, hosting is to the benefit of politians and a loss for tax payers.

  • Comment 19, posted at 23.10.15 12:49:01 by fyndraai Reply
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  • @SheldonK (Comment 11) : Wouldn’t mind the same jersey to be honest, I think it’s a great idea. I reckon it even puts out a positive message that all Sharks squads are ‘cut from the same cloth’ so to speak. Could be a great way to unify the SR and CC squads. Sharks would never do it though because supporters would only have to buy one jersey instead of two.

  • Comment 20, posted at 23.10.15 12:56:24 by vanmartin Reply
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  • @SheldonK (Comment 18) :

    Bloem would have much nicer traffic. – and winters.

    We only get involved in your “global” sports to clean up the corruption for you.

  • Comment 21, posted at 23.10.15 13:01:14 by fyndraai Reply
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  • @fyndraai (Comment 21) : Ah so youre the one ruining all the fun ;)

  • Comment 22, posted at 23.10.15 13:06:46 by SheldonK Reply

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  • @vanmartin (Comment 20) : i think u spot on with that comment

  • Comment 23, posted at 23.10.15 13:07:28 by SheldonK Reply

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  • Can’t we get apple or Samsung or Microsoft to sponsor? We could get a heavy on our side and buy the world. Starting with Lood…. ; )

  • Comment 24, posted at 23.10.15 13:31:05 by coolfusion Reply

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  • @coolfusion (Comment 24) : A VW Golf sponsor would be popular in Durban ;)

  • Comment 25, posted at 23.10.15 13:40:56 by SheldonK Reply

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  • @SheldonK (Comment 25) : Vw has a worse public image than the sharks at the moment.

  • Comment 26, posted at 23.10.15 13:47:20 by coolfusion Reply

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  • @coolfusion (Comment 26) : haha yeh forgot about that. Was just referring to the approved mode of transport in Durban…

  • Comment 27, posted at 23.10.15 13:49:47 by SheldonK Reply

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  • @SheldonK (Comment 27) : Well we are misfiring like a golf with a bad carburetor …if that’s what you’re getting at.

  • Comment 28, posted at 23.10.15 14:04:29 by coolfusion Reply

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  • @coolfusion (Comment 28) : haha see perfect match

  • Comment 29, posted at 23.10.15 14:08:17 by SheldonK Reply

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  • @fyndraai (Comment 16) : Time to migrate to a more civilized part of the world. Let me guess – you live in that insular country that has a World series but forgot to invite anybody else?

  • Comment 30, posted at 23.10.15 15:55:00 by Bokhoring Reply
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  • The truth is that insular depends on your perspective. Most of the orphans of the old british empire has a perspective that is limited to the dominions. Natalians are famous for this.
    The fact that the top rugby nation by far is a small island group of 4m people should speak for itself. In both Americas, East Asia, the Indian sub continent, the Middle East and most of Europe, this is a non event.

    The World Series and the Superbowl is probably both more “global”

  • Comment 31, posted at 23.10.15 18:17:29 by fyndraai Reply
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  • @fyndraai (Comment 31) : That island being an ex colony as well?

  • Comment 32, posted at 24.10.15 11:39:11 by coolfusion Reply

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  • @fyndraai (Comment 31) : The same world series of baseball which by USA own admission is a dying sport? And the super bowl is non event for everyone but the yanks. I don’t follow the point you are trying to make. Rugby is very inclusive?

  • Comment 33, posted at 24.10.15 11:52:10 by coolfusion Reply

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