Sports, Sponsorships and International Business Marketing

Sports play a unique a role when it comes to international marketing. Sports are played in most countries throughout the world d and in the most developed countries sports can be used a marketing tools for companies to market their product or services abroad. Sport teams, sport leagues, stadiums, and major sporting events are all great places for international exposure. Many companies will pay millions of dollars to become global sponsors of the Olympics. Roughly a dozen multinational corporations such as Coca-Cola, Lenovo, McDonald's and Samsung paid as much as $U.S. 100 million each to be global sponsors of the Beijing Olympics. The reason why companies are willing to pay such large amounts of money to become sponsors or major international sporting events like the Olympics or the World Cup, is because the international exposure their company will get around the world. The Olympics or the World Cup could be the platform a company needs to introduce its product or services in a variety of international markets. It is common for companies interested in entering the U.K. market to try garner a sponsorship deal from one of the major soccer clubs. Sponsoring an event or sports team can become a financially sound investment and can help ease the barriers to entry in certain markets. It is easy to see how sport related companies like Addidas and Nike benefit fro m sponsoring an international sports team or event, but non sport related companies that link themselves to sports benefit as well. In 2005, Deutsche Bank continued its previous co-title sponsorship of the Deutsche Bank-SAP Open and became the exclusive title sponsor. The event will be renamed "Deutsche Bank Player's Championship of Europe". Title sponsorships of a sporting event are great ways to market abroad. The Royal Bank of Scotland is also a sponsor of the British Open. Last year, during the British Open, the Royal Bank of Scotland tried to appeal to American consumers with their commercials starring American golf legend Jack Nicklaus.

Earlier in the year, there was a case study on Clif Bar and how they should enter the Australian market. My suggestion would be to sponsor a major sports team in Australia, such a rugby team. The exposure Clif Bar would receive from a popular sports team endorsing its product as a healthy organic sports bar, would help position the product in the Australian market. Athletic consumers would put Clif Bar on their radar as well as consumers that were interested in organic products. Companies in a position like Clif Bar, should always try to sponsor a sports team or league in the foreign market they which to enter. Sponsoring a team in a foreign market that you which to enter, can serve as a litmus test to gauge the amount interest and “buzz” that your product or service made with out really committing any of the companies services long term.