Bavaria beats up Bud in World Cup beer putsch

June 20, 2010

Despite its transcendent dullness to date, this year’s World Cup has managed to produce a few results of startling clarity, mostly of the negative kind. There’s England’s lacklustre performance, of course, and ITV’s stunning series of own-goals. But it’s the aggregate performance of the official sponsors I’m going to address here – and their need to get real; especially with FIFA, the organising body behind the tournament.

Exhibit One, a piece of market research carried out by Lightspeed, on behalf of our rival publication. Conducted at the time of the England v US match, it showed that only 8% of respondents thought sponsorship had a positive effect on their view of the brands involved. That, mind you, depended on whether they could identify those brands in the first place. Many could not. Quite a few, for example, reckoned Mastercard was a “partner” (30%), when it is not; only 37% gave the correct answer: Visa. A further 29% were highly impressed with Nike’s performance as a sponsor – except that, notoriously, it is not. The answer should be Adidas. Only Coca-Cola hit the button: a high correlation between correct identification and strong awareness; 65% of respondents got it right.

There is, by the way, nothing anomalous or even unusual in these results. Marketing Week has conducted similar surveys over the years, and come up with pretty similar conclusions. Coke scores well, and all the other sponsors are way down the league table; Nike scores too, but it’s offside.

Exhibit Two, the beer brand Bavaria. If you really want to make a name for yourself, don’t bother with official sponsorship (which would be difficult to afford anyway). Try causing a stir by breaking the silly FIFA-inspired anti-ambush laws and watch your brand awareness ratings shoot up.

Personally, I find the whole Bavaria brand proposition muddled. Orange lederhosen? Is it a German brand trying to cash in on a Dutch pedigree, or a Dutch brand trying to associate itself with the annual beerfest in Munich? In fact, the latter. There’s no denying the value of its stunt marketing, however. Those 36 Dutch female fans dressed in Orange miniskirts, whose presence cost ITV’s Robbie Earle his job, are likely to remain on our minds for years to come. More practically, bavaria.com –  whose web traffic was previously undetectable – has been translated into the fifth most visited beer website in the UK. And, according to Bavaria’s UK marketing manager, there has been explosive interest on Twitter and other social media.

Just a stunt whose effects will quickly fade away, you say? I disagree. Thanks to FIFA, Bavaria can now put into play a long-term brand strategy based around “Operation Martyr”.

Handily, the great clunking fist of FIFA has just landed a civil action on the brewer, guaranteeing it the oxygen of publicity for a long time to come. Better still – if not for Ms Barbara Castelein and Ms Minte Niewpoort – is the arrest of the two “ringleaders”, and the preferring of criminal charges against them by the South African police. A  show trial, followed by a custodial sentence could not be better calculated to vilify FIFA and curry favour for the beleaguered beer brand. And what about the subsequent “Free the Bavaria Babes” campaign? Plenty of potential there, I think.  It’s going to make the official sponsors, particularly Budweiser, appear rather stupid (those few we can remember, that is).

So why do the official sponsors bother? Good question, to which there is no convincing answer. We know why Coke does it. It has a long and consistent association with sport that makes the other sponsors look like dilettantes. As for the rest, who knows? Collective delusion? Brand vanity?

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Tesco shows leadership on binge drinking – sort of

June 7, 2010

Whatever took it so long? After years of quiescence on the issue of alcohol abuse fueled by cut-price booze, Tesco has come out all moral and now supports the medical profession’s call for a minimum price per unit.

The immediate cause of this Damascene conversion is a survey of Tesco customers, which found that 70 per cent of them thought excessive drinking was one of the most serious issues facing the country. Tesco, as a consumer champion, must be seen to be acting in its customers’ best interests; and the message here is loud and clear. So loud and clear, in fact, that it’s surprising Tesco didn’t get that message earlier. Such a massive shift in social attitude does not happen overnight.

So what really flipped the switch? The truth is the supermarkets’ longstanding love affair with discounted and BOGOF beer has finally become an embarrassment, even to themselves.

Certainly the drinks industry itself is no great supporter. Below-cost reductions make a mockery of brand investment and threaten to undermine a carefully cultivated image of social responsibility, illustrated in such initiatives as Drink Aware. But with the supermarkets accounting for over 70% of off-trade distribution, serious complaint (as opposed to moaning) has not up to now been an industry option.

What has changed is the UK government’s stance. Knowing the new coalition is committed to an imminent ban on below-cost alcohol sales, Tesco is now seeking to trump that initiative by going one stage further and endorsing minimum pricing. As the UK’s largest grocer – largest retailer for that matter – it’s fair and reasonable that it should show leadership in these matters. Isn’t it?

Only slightly is the moral purity of this CSR initiative diluted by Tesco’s reluctance to introduce an immediate self-denying ordinance. After all, argues the retailer, there’s the World Cup to consider and by acting unilaterally it would simply cede market advantage to its less scrupulous rivals.

Looking at the ‘market advantage’ argument for a moment, it’s hard to see how it holds up. If it’s about money, then why continue with loss-leader culture a moment longer? If it’s about share (which I strongly suspect it is), how long would Tesco’s rivals dare to hold out, given the risk of being stigmatised as the irresponsible ‘bad guys’ in the media?

Tesco should have had the courage of its convictions and proposed its own timetable. That’s what leadership is about. Blaming inaction on government dilatoriness, as Tesco’s director for corporate affairs recently attempted to do, simply won’t wash.

Whether, of course, such measures (when they are finally implemented) will actually succeed in curbing alcohol abuse is anyone’s guess.

The drinks industry will quietly welcome an end to “below-cost” alcohol promotions but stop well short of supporting a minimum price.

Its standard fall-back position (also adopted by the British Retail Consortium) is that alcohol abuse is a cultural disease barely susceptible to treatment by price control. Maybe so – although there are plenty who would agree with the chief constable of Manchester’s assessment that “culture is created by things like the price…if you make alcohol cheaper, it fuels that problem.”

The ulterior fear in the industry is that minimum pricing is a foot in the door for a rabid health lobby bent on the eventual prohibition of alcohol marcomms. For good reason, the Advertising Association was quick to crack down on the National Institute of Clinical Excellence (NICE) when it recently had the temerity to suggest that minimum pricing should be accompanied by a ban on advertising – a suggestion that clearly flies in the face of stated government policy.


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