Profit Host Country Also Gets Privileged †Myassignmrnthelp.Com

Question: Discuss About The Profit And Host Country Also Gets Privileged? Answer: Introduction Adidas was one of the key partners of FIFA world cup 2014 which was held in Brazil. Creating the new is the tagline for their next five- year strategic business plan. This attitude has led them to their current position and will pave the way for an exciting future. This is because the industry of sports tourism products is expanding and will continue to do so. It is expanding at a rapid speed as compared to other industries which includes consumer electronics too. Sports form the centre of all culture and society and the root to an individuals health and happiness. This is an excellent platform for Adidas because they will get the opportunity to excel in their business. They have become successful in changing the lives of people through their power in sports. They work hard to inspire and motivate people to indulge in sporting activities. They are also successful in transferring their competence in sports into fashion, style statement and street wear as they believe that sports are l ife and attitude. Their mission and vision is totally aimed at sports (Billings, Burch and Zimmerman 2015). The event It was the 20th FIFA world cup that was held in Brazil in 2014. The one- month long event was held after Peles country was permitted to organize the event. Thirty-one teams went forward for the qualifying rounds to join the host country in the final show. 64 matches were played in total 12 venues of Brazil. It was the first time in an event that the officials used goal- line technology and vanishing foam for free kicks. The gathering for the grand event crossed 1 million who came from 202 different countries. All the popular and world- cup winning teams had qualified for the match. In the semi- final the host nation had to bid farewell after losing to Germany who played against Argentina in the final (Clemente et al. 2015). The match against Argentina and Germany turned out to be a battle between Lionel Messi of Argentina and Thomas Muller of Germany. Both of them had put their utmost effort to kiss the cup at the end. As the star shines for only one, Germany became the first ever Eu ropean team to take home the gorgeous World cup. FIFA had organized FIFA Fan Fests in all the 12 venues throughout the competition. In order to avoid ghost goals, there was an introduction of goal line technology in the 2014 world cup. There were 14 high speed cameras, out of which 7 were faced towards the goals. Adidas Brazuca was the official ball in the match which was supplied by Forward Sports of Sialkot. Fuleco, a three-banded armadillo was the mascot in this match after three- month long election process. Lionel Messi won the golden ball and Thomas Muller was awarded the silver ball while Manuel Neuer got the golden glove and James Rodriguez won the golden boot for being the top goal scorer (Cotta, et al. 2013). Bottom line of the event Globo Marcas was appointed as the main licensee by FIFA for supplying the retail products of 2014 world cup. The global audience in the events of the entire grand event is regarded as goldmines by the corporations and the official sponsors of the tournament. The major partners of FIFA such as Adidas, Coca- cola, Emirates, Hyundai motor group, Sony and Visa pay approximately $25-50 million every year in addition to the sponsors. The international brands like Budweiser, Castrol, Continental, Johnson Johnson and McDonalds along with the European organic food producers like Moy Park, the telecom company of Brazil and Oi and Yingli Solar, the largest solar panel manufacturer in the world also contribute to the profit that is gained in the enormous event of FIFA world cup. In the previous year of the 2014 World cup, FIFA had gained $404 million from the marketers in association with the current year of world cup which made up to 29% of yearly revenue (Devlin and Billings 2016). All the co mpanies mentioned above have a place in the website of FIFA and in their promotional materials. According to authentic source, it is reported that the investment by companies have increased by 40% in four years from 2010- 14. Target segment It is hard for the authorities to win over the consumers and it is even harder to retain them. It is a totally new area of online consumer behavior in the recent years. Only the traditional form of market research has the ability to tell in this complex world of several platforms. For this reason the company SingTel had integrated its entire suite of analytics capabilities to provide the advertisers with a holistic viewpoint of consumer behavior during the 2014 FIFA World Cup. Being in the front line of broadcasters in the World Cup, the SingTel had intended to realize the behavior of the consumers by deducing at home, outside home and online (Gibson 2017). These ideas benefitted the advertisers as they were able to improve their marketing strategies, calculating their ROI and the activation and promotional investments in the world cup and recognize the promotional opportunities in the future on the basis of the behavior of their target audience during FIFA 2014. As the event was scr eened at the community centers, clubs, cafes, bars and restaurants, the analytics was in a special position to observe the real-time location data for understanding the demographics and habits of the viewers. Competitor analysis through 4Ps ICC and IOC are regarded as the competitors of FIFA. It is important to identify the current and future competitors in the market by analyzing the target products. It is also important to know the preference of consumers by recognizing their direct and indirect competition (Gibson et al. 2014). By knowing the market share of competitors, it will become easy for the promotion of the product. A small market research will find out the reason for sale in competition. The strengths and weaknesses will remain unknown until the idea of market share is gained. Planning and executing the proper strategies is beneficial for remaining in the competition or leaving the competitors behind. Either the same strategies can be used or new strategies can be introduced to make an impact on the pricing. Making a competition portfolio helps in identifying all the products of competitors, their logistics, tangible and intangible features and other services. At the same time, it is essential to prepare a s uitable place where the product can be used for sale and that will lead to its growth and expansion. A follow up is required for the qualitative and quantitative measures of the strategies (Hallmann, Dallmeyer and Breuer 2014). SWOT analysis FIFA, the governing body of soccer, is responsible for arranging the most spectacular sporting event in the planet, the Football World Cup. The event is targeted to all football lovers irrespective of the age and gender. They have been successfully organizing the Football World Cup for the last 80 years. Product positioning The biggest footwear and apparel brands in the event have rolled out their individual products to prepare for the market and product planning of world cup. Companies like Adidas are confident about gaining the soccer sales. For the sponsors, the battle of World cup helps in deciding who will get the throne in the international soccer sales in the coming years. They follow the strategy of underlining their consistent leading position to share the passion for football with fans all over the world. From being mere sponsors, Adidas has upgraded to being the official partner of FIFA. With the retirement of the Adidas- sponsored soccer super star David Beckham; they have planned to use the World Cup for getting the marketing ball in the flow for Lionel Messi. With the approach of World cup, NIKE had started giving new uniforms for its sponsored countries. Adidas officials have unanimously stated that they will hit the social media by broadcasting their world cup soccer messages (Hsu 2013). According to them, in that year the soccers advocates totally believed the refrain which repeated after every four years. It is said that the event of world cup is a marketing opportunity and marketing dreams for all those brands that are associated with this outstanding event. Competitive advantage The sustainability strategy and the strategic planning process are defined and selected through a materiality analysis. This analysis is regarded as the influence and relevance for the FIFA World cup and its stakeholders. The strategic objective is the root of this strategy. The stakeholders, goals for each issue and other individual activities will be implemented to attain those goals and the strategic objectives. Through the process of strategic planning, social responsibility and the environment were considered as the two main pillars of sustainable strategy (Kim et al. 2015). The areas that can be grouped under social responsibility are fair practices for operation, consumer issues, labor practices, and human rights along with involvement of community and their development. Moreover, community development is more connected with the prevalent global football where it was used to promote social changes in Brazil. The sustainability efforts of the FIFA world cup are guided by the th eories of transparency, accountability, respect and ethical behavior for the stakeholders interests, international behavioral policies, the rule of law and human rights. They will promote an advanced level of well being in the host countries by helping the initiatives that use football as a channel for development in the educational, health, civil security, social inclusion and anti- discrimination areas (Kim, Cheong and Kim 2016). For maintaining a successful corporation, FIFA has a well processed marketing mix which includes the 4Ps. The amalgamation of products, place, promotion and price attain the final outcome. The sponsors of FIFA such as Adidas, Coca- Cola, Emirates and others advertise FIFA on their products and vice- versa. It can be seen that the boundary of the field where the match was held were all covered with the name of the sponsors. The sharing of advertisement by both expands the number of consumers who can see the logo of the company in the area. FIFA actually makes the place where the companies can display their advertisement. This sets the instance of promotion strategy. It is seen that most of the sponsors are global brands. Since FIFA is international too, both of them have interests in common and influence the nations all over on a common ground. This reflects the place strategy. The pricing strategy becomes significant because soccer is the cheapest compared to any other games. It just requires a 15$ ball with the logo and other equipment at very minimal costs. There are still a lot of other products which are not so cheap so FIFA will hold world cups in such countries as to help their economy (Knott, Fyall and Jones 2015). Management structure A grand event like FIFA World Cup has several stakeholders all throughout the application, planning, preparation, execution process and the after effect. Stakeholders include everyone who will be affected by these processes. Therefore, it is important to recognize the stakeholders in order to have an idea about the management structure, those who will be affected by the event and to what extent. All the stakeholders are responsible for making the event successful but they must also be satisfied so that they cannot oppose the event. Apart from that, there are political considerations such as increasing national prestige and economic considerations are also important factors in motivating the states to host a major event. The high tourist flows as a result of such a grand event expects economic benefit. Tourists inflow helps in expansion of business in the hotel and hospitality sector. On the other hand, the increase in tourist inflow gives rise to the issue of workers in Brazil and th eir qualification to deal with such international tourists (Liu et al. 2015). Development of communications and the investment of media in the world cup is a prime long-term opportunity and play the pivotal role to pose an outstanding impact on the hosting of a great event and the reputation of the host country, Brazil. Three-year forecast It was predicted by the Brazils Ministry of Sports that the FIFA world cup 2014 is going to be a cash cow for them. The economy of the country is forecast to grow by a minimum of $70 billion as they had hosted the world cup event. The amount is based on the public and private investment of Brazil in infrastructure, increase in consumption and other activities in the services sector and in the collection of tax. The event is expected to earn more than $30 billion in through direct tax, $10 billion through indirect tax and an increase in the consumption of the local goods and services by approximately $3 billion for the time period of the event. 600000 tourists are expected to come to the venue which would generate an additional $2.5 billion for the countrys travel industry. More or less, 3 million Brazilian tourists are predicted to travel throughout the country to generate an amount of $3.5 billion for travel and tourism (Noel et al. 2017). Conclusion The use of three strategies by the sponsors in FIFA world cup 2014 made it a remarkable event to be remembered for four years. The speed of reaching the consumers, the location to expand market and inviting the sports person to be the partners of the brand provided a positive outlook and the opportunity to create something new. The three strategies were supplemented by highlighting on portfolio and corporate and digital culture. 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