The Effect of FIFA World Cup 2006 on Slides

8/8/2019 The Effect of FIFA World Cup 2006 on Slides

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WORLD CUP 2006


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The effect of FIFA World Cup2006 on international business

Prepared by:ABDUL HASIB GAZNABI 033218530

MD. ISHTIAQUE 041074030

TAMJID AL-MAMUN 041144030

SAEED CHOWDHURY 041078030

Prepared For:BashirHussain (BHn)


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Introduction

World Cup, isaninternational football competitioncontestedbythemen'snational footballteamsofmembernationsofthe FIFA

2006 World Cup finalsin Germany wereexpectedtobeoneofthemostlucrativesportingeventsinhistory, withanticipated profitsofover$1.27

billion 36 nationalteams participatedinthe finals with

totalaudienceofover30 billion watchingitlive.


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Broadcastingand TV Rights.

2006 TV rightshadbeensoldbefore 2002 WorldCup in Koreaand Japan for$1.5 billion.

Additional $276 and $288 milliongeneratedbycontracts with public servicebroadcastersARD andZDF, commercialbroadcasterRTL and cableandsatellitenetworkPremiere.

The coveragehadbeenbroadcastedbyover70broadcastersinmorethan 120 countriesaroundtheworld.


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CorporateSponsors The 15 Official Partnersofthe 2006 FIFA World Cup TM are:adidas,

Anheuser-Busch, Avaya, Coca-Cola, Continental, Deutsche Telekom,Emirates, Fuji film, Gillette, Hyundai, MasterCard, McDonalds, Philips,Toshibaand Yahoo!

TheSix OfficialSuppliersare: EnergieBaden-WrttembergAG(EnBW), OBI, Hamburg-MannheimerVersicherung, Postbank,ODDSET and DeutscheBahnAG.

FIFAraised 1.9bninmarketingrevenueand 700m fromsponsorshipfromthe 2006 World Cup.

Eachofthe 15 official partnershad paidadditional 40 millioneuro forthe privilege.


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SponsorControversies

FIFAhasbeen criticized fortakingon McDonaldsas

asponsorbecausemany feelthe chains unhealthyfoodshouldnotbe connectedtoasportingevent.

The procedure forbuying World Cup tickets was

complicatedbythe factthat credit card purchases

could controversiallyonlybemadevia MasterCard. FIFAalsoallocatedapproximatelyoneinsixofthe

3.1 million World Cup ticketstoitssponsors .This

hasledto FIFAbeingheavily criticized fornot

makingenoughticketsavailableto fans.


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Ambush Marketing by FIFA

Duringthe firstroundmatchbetweentheNetherlandsand Cted'Ivoire, over

1,000 Dutch fans whoarrivedatthestadium wearingorangelederhosen wereforcedtoremovetheirtrousersbecausethelederhosenhadthelogoof DutchbreweryBavaria. Bavaria, whohadsoldthelederhosenas partofanoffer, was

accusedby FIFAof "ambushmarketing"attheexpenseofAmericanbeermakerBudweiserwhohad paidmillionsofEurotosponsorthe competitionand forthetitleof "OfficialBeerofthe 2006World Cup."


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Adidas :The Most Successful

Sponsor Of FIFA World Cup

Adidashas proventobeagreat commercialsuccess

withrecord footballsalesofover1.2 billioneuros,up morethan 30% from 2005

Arecord 3 millionreplica jerseys weresold, which

included 1.5 million jerseysofthe Germannational

team. In comparison, Adidassold 1.5 million federation

jerseysand 250,000 German jerseysatthelast World

Cup in 2002.


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Successful Sponsor (contd.) In firstsixmonthsof 2006, Adidasledthe Europeanmarket withashareof

37%, the USmarket witha 46% shareandthe Germanmarket with 51%,accordingtoindependentmarketresearch.

Adidasenjoyshighlysuccessful partnerships withsomeofthestrongestfederations, clubsand playersaroundthe world. National federationssuchasGermany, Argentina, France, Spain, Denmark, reigning EuropeanChampion Greece, Japan, SouthAfrica

Additionally, individual playerslike MichaelBallack, DavidBeckham,Ral, Juan Romn Riquelme, Steven GerrardandZindineZidanerepresenttheirrespective clubs wearingstate-of-the-artAdidas footballequipment.


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Nici:Unsuccessfulsponsor

The German companyNici paid $33 million

(U.S.) to FIFA, world football'sgoverningbody, for

theexclusiverightstomanufacturetoysofthe

official World Cup mascot, GoleotheSixth.

Nicihasdeclaredbankruptcyamidreportsthatsaleswerenotstrongenoughto compensate forcostofthe

rights. The formerheadofthe companyhasbeen

arrested forfraud


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Advertising

The Football World Cup hasgenerated $1bninadvertisingrevenue

The factthetournament'stookplacein Europe, where

fourofthe world's fivelargeadvertisingmarketsare

located, hadhelpedthetotaladvertisingrevenuereachingabout $1bn.

Theentire TV advertisingmarkethasincreasedby 10

percent compared withthesame periodlastyear


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Globalization and FIFA World

Cup 2006

Mostofthegrass forthe 12 World Cup

stadiums comes fromasecret farminthe

Netherlands

Adidasmatchballhasbeendesignedbya

Japanese firmandismanufacturedin

Thailand . InBangladeshthe parliamentis considering

shortersessionstoallow enoughtime for

lawmakersto watchthematches


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Economic impacton German

economy

Employment Rate: Germany's unemployment

fallingmorethanexpected, by 0.1% Germany's profits fromhostingthe World

Cup arearound 433 millioneuro.

12 Germanhost cities facedan increaseddemand forworkerssuchas waitersand

security personnel


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Economic impacton German

economy (contd.)

Germanyhasrecorded 1.6 percentincreasein

itsgrossdomestic productthisyear. Thegovernmenthasspentaround $7.7 trillion

onimprovingstadiumsandtransportation

infrastructure .

Foreign fanshadapproximatelyspenton

average 150 eurosaday


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Concluding Remarks

World cup wassuccessfuloneveryaspect.

registeringrecordsalesinmerchandiseandapparels

highestamountofmoneyinbroadcastingrights

Theevent wasalsoasuccessinglobalizationaspect wheremerchandises producedindifferent countries weresoldin Germany for

the world cup


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Conclusion (Contd.)

the World Cup canbe consideredasa

unifyingevent where people fromall partsofthe world come underone umbrellaof

footballtosharetheirknowledge, cultureand

mostofallenjoythebeautifulgame.


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Questions????

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The Effect of FIFA World Cup 2006 on Slides