International Marketing 10th Edition by Michael Czinkota, Michael Brumbach, Ilkka Ronkainen

Exercise 2

Ambush Strategy
The definition of ambush marketing as a marketing strategy is when a competing brand connects itself with a major sporting event without paying a sponsorship fee. Ambush marketing occurs when one brand pays to become an official sponsor of an event and another competing brand attempts to cleverly connect itself with the event without paying the sponsorship fee and without breaking any laws. FIFA (the International Federation of Association Football) is adamant about the protection of its sponsors and their legal resources and has the wherewithal to defend and enforce its rights and fulfill its commitment to tournament sponsors.
FIFA is considering legal action against a Dutch brewery it accuses of using women fans to advertise its beer at the World Cup. Stewards ejected 36 Dutch supporters during the match between the Netherlands and Denmark midway through the second half in Johannesburg. All were dressed identically in tight-fitting, short orange dresses sold as part of a gift pack by a Dutch brewery. A brewery representative dismissed FIFA's concerns as "ridiculous."
The World Cup's authorized beer, Budweiser, has paid millions of dollars for the privilege of being its sponsor. With a large chunk of FIFA's revenue coming from selling marketing rights, it vigorously pursues anyone who tries to associate themselves with the World Cup without paying the tournament for those marketing rights. "What seems to have happened is that there was a clear ambush marketing activity by a Dutch brewery company," said a FIFA spokesman. No charges have been filed against the ejected orange-clad Dutch supporters, FIFA said in an e-mailed statement.
The World Cup generated $1.6 billion in sponsorship revenue from 2007 to 2010. The weak economy has led some companies to turn to ambush marketing at sporting events as a way to get their message out in a less costly manner and successfully avoid sponsorship fees.

Crowd shot of Dutch women wearing orange dresses during the World Cup 2010, appearing to support a Dutch brewery, which was not the official sponsor of the Cup.
The World Cup's authorized beer is Budweiser, which pays millions of dollars for the privilege. Why?
SOURCES: "FIFA Files Charges over World Cup Ambush Marketing (Update"])," Bloomberg Businessweek, June 16, 2010, 45; "World Cup 2010 for Ambush Marketing," Guardian, June 15, 2010, 6; and "FIFA Acts after 'Ambush Marketing' by Dutch Brewery," BBC News Africa, June 15, 2010, http://www.bbc.co.uk/news/10321668.