EXECUTING SPONSORSHIP IN CHINA: LESSONS LEARNED

I’ve had the opportunity to work two major sponsorship events in China. In doing so, I accumulated an appreciation for a very different way of doing business. It requires great patience, a broad perspective and time - things which most Western brand marketers are chronically short of.



The 2008 Beijing Olympic Games were expected to ‘open’ up China as a market for a range of sports and other commercial ventures, only to be blunted by the global economic decline. The great success of the country as a host and event planner will no doubt lead to future activities. For those who will take the plunge, I offer up a few thoughts and guidelines.

1. Understand the Sources of Power & Relationship: All things lead to the Government
• Obtain the maximum government support possible
– It can make things easy or hard, and is mandatory in executing anything significant
• Be skeptical of anyone promising government connections
– “Guan Xi”: everyone in China has “relationships”
– Before investing time and effort, identify the key players and true power
• Try to Understand where real power lies
– Many and often confusing government layers
– Decision-making sources are not always intuitive
• Don’t look for direct government intervention in commercial

2. The Law & Contracts: Chinese Solutions Abound
• The government is the law in China
– It is not unusual to learn that laws have ‘changed’ or that the Chinese were ‘unaware’ of existing law in conflict with agreed to contracts

3. Negotiating in China: “Hidden Signals & Time”
• Be attuned for hidden messages
– Not always a straight line from Point A to point B
• Negotiation is Never Over
– Signing contract is often prelude to negotiating terms
• Face to Face Negotiation is Expected
– 90% of negotiation is done in person
– Don’t rely electronic communication until you close the deal
– Written correspondence should be formal in nature
• Time and deadlines are often used as a negotiating

4. Chinese Business Customs: “Protocol is Paramount”
• Be sensitive to the importance of protocol and ceremonies
– Be sure to have a hierarchical negotiating team
– Titles are critical; only send an “equal” to deal with government officials
– Anticipate and follow the formal Chinese protocol on seating, writing and gifting
– Understand the Chinese sense of national pride

5. The Importance of Legacy
• So they can develop skills and expertise, Chinese want to be as involved as possible in an event

This list is far from exhaustive, so also strongly suggest that a local business partner is needed. The cultural issues, unspoken rules and business style are so very different from any other country they cannot be mastered quickly.

Of the above, the importance of time and perspective. Things just do not happen quickly (unless the Chinese government is running it) and you have to plan for something totally unexpected to happen. Also, don’t be surprised by a previous agreement to suddenly be reversed, with no warning or explanation.

My experiences in China have provided many long lasting memories. It is a wonderful country of striking contrasts and awesome scale. It affords many opportunities and potential for wonderful things. Good luck and best wishes!

Key Marketing Facts for Sponsors of the FIFA World Cup

So, the US unexpected performance during the 2009 FIFA Confederations Cup raised soccer awareness in the States for a few days. As important as that is, it also served as a good reminder that the FIFA World Cup is only 11 months away. We’ve heard the rumors and echoes whether South Africa was even going to have the chance to host the event. Clearly, the show will go on, albeit with some added attention to hotel accommodations and transport.

And yes, those annoying vuvuzellas!

Most American fans and marketers place greater emphasis on other sporting events ahead of the World Cup, however for most of the world; it is THE competition like no other. Given that I offer some ideas and perspective on FIFA World Cup marketing:

• It is HUGE - everywhere but the US. Football/Futbol/Soccer has the highest awareness and affinity of any sports brand across the globe. More people play, follow and watch it than any other. The sport has an everyman appeal – it is simple and universal – requiring only a ball, pitch (field) and 2 goals; the rules are not overly complex. Fans cut across the spectrum of demographics.
• It’s Mass & Niche. The TV audience is very large - 2006 Cumulative TV audience of 26.29 billion (24.2 billion in-home viewers, 2.1 billion out-of-home). Yet, local marketing opportunities abound, in each of the 32 countries participating and especially so in the host country. Keep in mind that the World Cup mark/logo has much lower audience recognition and awareness than the Olympic Rings.
• It's not easy. Few sponsorship relationships ever are, but working with FIFA and the local organizing committee can be a very taxing exercise that will test the patience of anybody. Success will require that you be clear on your objectives and requirements, know the rules, know when to be flexible, and know when to stick to your guns.
• Everything is Al a Carte. A World Cup sponsorship doesn’t come with much in the way of out-of-the-box strategy or activation programs. The rights to use the event marks are valuable, but pricey. Sponsors are largely on their own to create and leverage activation programs that drive business value. FIFA has a few standing programs (Fan Fest public viewing, Global Trophy Tour & Domestic Trophy Tour) that can be leveraged on a buy-in basis.
• The FIFA Calendar is Marketing Friendly. With a very defined four year schedule of qualifying matches, milestone events (Final Draw, etc.), Confederations Cup, plus a full month of World Cup competition, there is ample opportunity to build and execute cohesive and timely programs over an extended period.
• Broadcast advertising does not work. If you don’t know, world soccer is not very TV advertising friendly. The game action runs for a continuous 45 minutes per half – no commercial breaks, no timeouts. There are on screen presence opportunities, but like sponsor field boards, they don’t deliver a message. Ad dollars may be better utilized on-line and in non match settings.
• Outstanding customer hospitality opportunities, but tricky. World Cup hospitality is among the most aspirational of all sports. Done well, a World Cup hospitality program can help a company enhance valuable business relationships in ways that will have lasting, positive impact on its business. But it can be complicated. Typically matches are played in 10 -12 cities in the host country. Guests often desire to see the ‘major’ matches Semi-Final or Final, or want to see their home country play, which makes good coordination and client management critical. Matches are not schedule for everyday of the event, so sightseeing and cultural activities allow for a great experience.
• It’s the World Championship of Football/Futbol/Soccer. The athletes are all well paid professionals who compete for various clubs around the world who join the national team for this event. Unlike the Olympics, there are few athlete hardships and no great societal causes. So don’t expect to wrap yourself in corporate responsibility. FIFA has some charitable activity, but it is not a sponsor thrust.
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Kevin Hanft has first hand experience activating and managing FIFA World Cup programs in 2002 & 2006