Tuesday, February 1, 2011

Is Subway Biting Off More Than They Can Chew?

It was recently announced that Subway added Olympian speedskater, Apolo Anton Ohno, to their roster of clients which include fellow Olympians Michael Phelps and Nastia Liukin. 

With the addition of Ohno, Subway has managed to secure the top athletes from the Summer and Winter Olympics guaranteeing they have the biggest sports windows covered.  What appears to be a great strategic move by Subway, could be a greater indication of what's to come in the next year and a half-- a headache for the International Olympic Committee (IOC) and United States Olympic Committee (USOC).  Here's why.

The IOC prevents non-Olympic sponsors from running spots that feature competing Olympic athletes before and during the Olympic Games.  In layman's terms, if you don't pay for the rights to benefit from Olympic brand association, then you have not earned the right to run a Michael Phelps ad during the Summer Olympics, regardless of your partnership with him.  Although it's not the most ideal situation for an unofficial sponsor who has partnered with an Olympic athlete of Phelps' caliber, it's imperative that the IOC and USOC enforce this rule as an attempt to protect their official sponsors.

I say attempt because unofficial sponsors and brands like Subway continue to circumvent the system by resorting to the bold tactics of ambush marketing.  Although it's generally viewed as a negative practice, brands can't resist the positive buzz it generates among consumers; thus impacting their bottom-line.  For example, Nike is unashamedly guilty of repeatedly ambushing the Olympics and World Cup.  In fact, since they have such a reputation for doing so, the anticipation of their campaigns merely amplifies the energy surrounding their efforts.

And in Subway's case, they experimented with running a Michael Phelps ad during the 2010 Winter Olympics and were successful.  Winter Olympic athletes are exempt from the rule during the Summer Games, and vice versa.  If you recall, the spot showed Michael Phelps swimming through land, toward Vancouver aka "where the action was that winter."  This ad upset the IOC, USOC and McDonald's, the official restaurant sponsor, but was a major win for Subway.

PUSH PLAY:  Michael Phelps and Subway 2010 Winter Games


According to Sports Business Journal, it's unknown if Ohno's contract runs through 2012.  However, it's a safe bet that if it does, Ohno and Jared Foogle will be teaming up to represent the sandwich chain for the 2012 Games.

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