Puma Wagers Big on African Underdogs (Wall Street Journal)

Four teams are still in the running in the Africa Cup of Nations soccer tournament. But there already is a winner in the marketing game: Puma.
The German sportswear company sponsors all four semifinalists in Africa’s soccer championship, which wraps up Sunday. For Puma, which is dwarfed by rivals Nike and Adidas, the Africa Cup is a way to get valuable exposure with top players such as Samuel Eto’o — and tap into the coolness of underdog African teams.

"When you look at the last World Cup, the African teams always got the most compassion" from fans, says Puma Chief Executive Jochen Zeitz. "That’s what Puma is all about."

At the last world championship two years ago in Germany, Ghana unexpectedly made it to the second round, where it lost to perennial powerhouse Brazil. But sports commentators praised the Puma-backed team for its courage on the field against a much more seasoned opponent. And fans say the high-scoring, offensive tactics of African teams often make for more exciting matches than those of more guarded, defensive squads such as Italy and Germany.

Africa is central to Puma’s sponsorship strategy. The company, which was bought last year by French retail and luxury-goods group PPR, is using the Africa Cup of Nations as a platform to unveil a new advertising campaign, new products and a new store in Accra, Ghana’s capital. Nearly half of the 25 national soccer teams Puma sponsors are African. Puma has splashed out on only one major soccer powerhouse, Italy, which won the last World Cup.

Puma has long been the underdog in sports sponsorship. In soccer, the most-followed sport globally, Nike and Adidas have carved up the world to dominate South America and Europe, respectively. Nike’s check adorns the yellow-and-green uniforms of Brazil, while Adidas’s three stripes appear on the jerseys of France, Germany and Spain. Years of losses in the 1980s and 1990s meant Puma didn’t have the means to bankroll major teams. After it got its finances in order, Puma signed on Cameroon in 1997.

Being the underdog has its advantages. Car-rental company Avis created its "We try harder" slogan in the 1960s when it trailed Hertz in market share. The ad campaign helped propel its market share higher — and Avis has never let go of its tagline.

"In sports, we like the underdog," says David Carter, founder of a Los Angeles sports consultancy, the Sports Business Group. "If Puma can take advantage of a piece of that and grow the brand, it could be a great play."
Mr. Zeitz, who speaks fluent Swahili, concedes that the Africans "may not be the most expert players like the Italian team, but they are exciting." And their underdog status is an added allure. "Consumers in this world know life is not only about winning," he adds.

Puma’s bet on Africa could soon pay off. South Africa will host its first ever World Cup — the planet’s most-watched sporting event — in 2010. Organizer FIFA guarantees five slots in the World Cup to African teams, which could provide Puma a major presence at a bargain price. Puma’s association with African sports could give it a boost as Africa’s profile rises in years to come, experts say. "We want to make sure we have real dominance in African soccer, in particular in light of 2010 in South Africa," says Mr. Zeitz.

Thanks to its sponsorship in Africa, Puma has gained access to some of the world’s top players. Puma has the largest representation of any sportswear brand in the African tournament, backing nine of the 16 teams — far ahead of rival Nike, present with only one country, Zambia.

Puma pegged the launch of its new advertising campaign to the tournament. A futuristic ad features top players such as Mr. Eto’o, Italy’s Gianluigi Buffon and France’s Nicolas Anelka as half-man, half-beast fauns in a science-fiction soccer match. Created by Danish ad agency Robert/Boisen & Like-Minded, the commercial is in heavy rotation on TV station Eurosport, which is broadcasting the Africa Cup. It also appears on national channels in France, the United Kingdom and Germany, and versions of it are running in magazines in the U.S. and Asia.

On the field, Puma uses African teams to introduce its new merchandise. This year’s new product: a lightweight shoe, the v1.08. Puma also created a limited-edition collection of T-shirts and soccer balls to benefit a peace charity. Other launches in the past have been more daring: New Puma uniforms got Cameroon in trouble with FIFA, soccer’s governing body, twice, for sleeveless shirts in 2002 and bodysuits two years later.
Sponsoring African teams requires more involvement from Puma than big-money teams such as Italy would. For the Africa Cup of Nations, Puma helped buy the Ghana team a top-of-the-line Mercedes-Benz bus for transport between matches.

"When teams have to travel a long way on difficult roads, it makes a big difference," says Mr. Zeitz. "Air conditioning, proper installments — those things go a long way."

Source: Wall Street Journal: http://online.wsj.com/article/SB1202…googlenews_wsj
Date: 7/2/2008

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