Conti: 'World Cup the More Efficient Investment'

When Continental signed the contract as “Official FIFA Partner” in January 2003, observers weren’t overly surprised because the German tyre manufacturer had already been involved in events outside the traditional motorsports of Formula 1, DTM etc. Between 1995 and 1999, the Hanover based company gained some particularly good experience as sponsor of the European Champions League. Back then the goal was also to “increase Continental’s brand awareness,” Lars Fahrenbach told Tyres & Accessories. The management was particularly pleased with the publicity it gained in great footballing nations like France, Italy, Spain and of course the UK. “This has worked out in an excellent way with the Champions League,” the marketing director acknowledges. In 1999 the tyre manufacturer ended its commitment to the Champions League for several reasons. Amongst others, the increasing costs of a five-year contract certainly played a part. Nevertheless the “question of continuity” has never been taken off the agenda, says Lars Fahrenbach. In light of this, Continental seems to have been well advised to switch over from European team football to an international event that is likely to be the biggest of its kind in Europe. It has been said that football unites people. However, it not only unites people who are interested in sports in general, but also car drivers that may be looking for new tyres. The fact that the four-week event is expected to attract a cumulative total of 35 billion viewers means that this is not just wishful thinking. In addition to this huge number, 3.2 million spectators will travel from all over the world to watch the 64 matches. This is a good “opportunity for us because the event takes place in Germany.” The company believes that it can communicate the “German Engineering” message much more vividly at home than abroad because “we can benefit from our good name in Germany,” says Lars Fahrenbach. Being the official partner of the world’s biggest football tournament is completely different to sponsoring motorsports.

The problem is not the lack of public interest, but rather that “everybody is in motorsports.” This situation makes it extremely difficult even for all those who understand a little bit of what’s going on on the race track to tell the difference between the many tyre manufacturers and the series that they supply. This problem even extends to Formula 1, the marketing director says. Formula 1 is the only other event that can really be compared to the World Cup in terms of public interest and audience size. A total of around 70 billion people watched Formula 1 during the 2004 season. However: “Everything else is like kissing your sister,” jokes the marketing director suggesting that other motorsports series are not as worthwhile. Only football was able to create a global enchantment and thereby is perfect for the “global marketing approach” Continental is taking. In order to achieve the biggest goal of its World Cup commitment (improving Continental’s brand awareness) the company will have to pay a certain amount of money for partnership rights. Nobody in Hanover wants to give any numbers away, but the sum is easily tens of millions. Another exclusive World Cup partner is Hyundai. The Korean car manufacturer has said that the cost of its involvement went “high up in the millions,” according to Auto-Reporter.net. Similarly, Deutsche Telekom, another one of the 15 exclusive partners, will spend up to 100 million euros for its World Cup commitment, according to German media reports. The truth of how much Continental paid out for its partnership is likely to be somewhere between these figures – between 10 and 100 million euros. What is the corporation getting in return for investing such a sum, and how can tyre dealers benefit from that? The perimeter advertising boards that run around the pitch were decisive. When you consider that 35 billion TV spectators will look at them during the 96 hours of football (not including extra-time and penalty shoot-outs) the investment looks considerably more appealing. But how can they be so sure that viewers will notice these advertisements? The answer is simple – they will all be placed opposite TV cameras. Furthermore, Continentals’ logo will be placed on the walls of the players’ tunnel, in the hallway to the team changing rooms and in the press centre. All post-match interviews and press conferences will be further brand exposure opportunities. One of the most important rights related to the sponsoring contract is “the right to buy tickets,” Lars Fahrenbach explains. This right applies to tens of thousands of tickets and “is extraordinarily attractive.” First, Continental will be able to invite business partners from around the world to watch the matches.

And secondly, the tyre manufacturer can use its tickets for other promotional activities and media partnerships. Examples of media partnerships include competitions and lotteries that could take place as part of well known sports programmes or in sport magazines such as the Italian Gazzetta dello Sport, the only daily sports newspaper in the world. Giving away tickets to the end consumer is another way “you can make yourself attractive.” Mr Fahrenbach is convinced that Continental will gain exposure on top of the general media coverage of the matches themselves. Another special feature of the partnership with FIFA is that Continental can claim exclusivity in its business area. No other tyre manufacturer can associate itself with the World Cup on the same exclusive basis. This “feature of exclusivity” is extraordinarily helpful. And that’s why Mr Fahrenbach calls the commitment “the more efficient investment,” compared to motorsport events. By improving the company’s awareness among end consumers, the manufacturer hopes to be able to sell more of its products on international markets. But that’s not all, the global tyre industry will also be in an even better position to sell Continental’s products. If this effect does occur it is only likely to happen in countries other than Germany, where the tyre manufacturer can already claim a pivotal position on the market.

The correlation between brand name, brand awareness, and the decisions to buy and sell these tyres was proved a long time ago. That is why Continental’s commitment to the World Cup is not only aimed at the end consumer but also at the tyre trade, which has to be convinced and influenced in the right way. Of course the World Cup will also be used for advertising purposes. Continental will, for example, be able to use the FIFA World Cup logo for its corporate communications. All in all the company is seeking to strengthen the “football and Continental” association. The company’s stadium inside a tyre advertisement, is already well known. Furthermore, the company is organising an “internal world cup” for its employees from around the globe. From April onwards this tournament will take place as a global competition called the ContiTeamCup, and all 70,000 employees can participate. The best teams will participate in the final during the summer of 2006 in Hanover. Although the football World Cup will probably be the biggest sporting event to take place in Germany and even Europe in a decade, it will end with the final whistle in Berlin on the evening of 9 July, 2006. In response, those in charge of marketing in Hanover have already got plans for after the World Cup: “We want to stay in top international football beyond 2006,” announces Mr Fahrenbach.” The is the “premium approach” to a “premium event,” he adds, but what exactly is meant by “top international football” will remain a mystery for now.