Julian Richardson
Friday, September 12, 2008
Against the backdrop of Usain Bolt's rise to international stardom, Jamaican corporate executives have dismissed claims, coming from some circles, that local indigenous entities lack the will to effectively invest in sports marketing.
Peter Moses, head of Citibank in Jamaica, and Christopher Williams, managing director of NCB Capital Markets - both heavily involved in sports themselves - say local companies are very much involved in investing in sports, but only as much as the market dynamics will allow in Jamaica.
Moses, who is also a highly successful coach of the Real Mona Football Club in Kingston, told Caribbean Business Report that there has been a proliferation of private sector support for sports in recent years. He supported his argument by citing the development of the Waterhouse Football Club.
With sponsorship from the Bicknell family-run Tankweld Metals, Waterhouse is home to one of the better sporting facilities in the National Premier League, and has emerged as one of the most prestigous clubs.
"Ten years ago when I came here, this was a bare piece of land with nothing on it except rubbish but now I am standing in a mini-stadium," said Moses from the facility. "That has come about because a local corporate entity adopted this club and built this infrastructure."
Williams, who plays for Real Mona's Masters League team, said that from a local standpoint, Jamaican companies are very committed to sports, citing Grace Kennedy's sponsorship of the Boys' and Girls' Track and Field Championships and NCB's sponsorship of numerous sporting events, as examples.
"The biggest track and field event in this hemisphere - Boys' and Girls' Champs - is significantly sponsored by a local entity," said Williams. "I think that local entities are out there sponsoring sporting activities and I would go as far as to say that if it wasnt for local entities these events wouldn't even exist."
That aside, Williams admits that improvements can be made to how Jamaican companies utilise endorsements in maximising the goodwill from their association with an athlete or team. This strategy, he said, has been perfectly executed by one of Bolt's sponsors - Digicel, who has bombarded the airwaves with ads featuring the triple Olympic champion.
"Are we taking advantage of the sportspersons and sporting events that we sponsor? That is where I think Digicel has done well," said Williams. "Certainly, I felt that they made a pre-emptive move by picking up Bolt years ago when he had not yet gone on to prominence, so the contract wasn't valued at his current marketability and that is how you have to approach these things.
"Also, Digicel has spent a lot of money in ensuring that you and I know that they sponsor Bolt," he added. "That has nothing to do with the sponsorship of him but the marketing of the fact that they sponsor him. That is where Digicel has done well and local entities can learn from them."
Indicative of how a company's association with a sporting entity can have a positive impact is the fact that according to US-based marketing agency Zeta Interactive, catalysed by his achievements in Beijing, Bolt's other sponsor - Puma - saw its global online chatter increase by 64 per cent during the Games, outperforming Adidas and Nike, which only had increases of 17 per cent and 18 per cent respectively.
However, Williams said paying the price required for international exposure is where Jamaican companies become hesitant. Because that sort of exposure is not needed for local entities whose distribution channels barely reach beyond the region. This, according to Williams, is a major reason why Bolt may not attract as much in endorsement money as Michael Phelps, the popular American swimmer who is said to have racked up some US$100 million in endorsement money from heavily exposed American firms after his exploits in Beijing.
"The distribution of our product outside of the Jamaican market is not that strong, so we wouldn't go into those markets and advertise as agressively," said Williams.
"Jamaica is a much smaller country, so we wouldn't as a company (NCB) step up to that international level because we don't have that economy of scale...So clearly our advertising will be concentrated on the Jamaican locals."
Moses added that the reason why Jamaican companies may not advertise to the extent that Digicel does, could be because of the business model employed as well as the availibity of funds. Digicel, he noted, is a consumer oriented business, which requires them to consistenty focus on brand recognition. It is also true that the Irish-owned firm has the critical mass to make such lofty investments.
"I hear people talking about Jamaican companies are waggonist but I don't beleive that," said Moses. "First, people need to make sure that they are comparing apples and apples. Digicel is in a consumer business, they need to be seen everywhere.
"For example, the company I work for is not a consumer oriented company, we are a corporate banker and do our marketing on a direct basis," added Moses. "
While Moses, who is a former president of the Private Sector Organisation of Jamaica (PSOJ), beleives that local companies should invest in sporting facilities in order to create the proper framework for athletes, he does not believe they should begin to endorse athletes from a tender age. This, he said, is because companies have a responsibility to paint a "balanced" picture for youngsters.
"While there is the opportunity for other Bolts to emerge, I dont think companies are going to start looking at prep school and primary school athletes, and start sponsoring them from that age," said Moses. "You want to make sure that a youngster maintains a balanced approach to life so they do not start thinking that life is all about sports because not all of them will make it by their sporting prowess."
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