Band 9 essay sample | Multinational companies benefit from sponsoring sporting events
Some people say that companies who sponsor big games can gain a lot; other people believe that it has disadvantages for them. Discuss both sides and give your opinion.
While some people believe that companies can reap rich benefits by sponsoring major sporting events, others contest that claim. In their opinion, the sponsorship of major events can sometimes have detrimental effects on a company. In this essay, I will examine both arguments and express my opinion.
Major sporting events are watched by billions of people all over the world. By simply getting associated with an event like Olympics or World Cup Football, a company can increase its brand value, sales and revenue. For instance, back in the 70s when the Olympics was sponsored by Coca-Cola its market share reportedly went from 20 percent to 40 percent in the US. Today Coca-Cola is a household name and much of that publicity came from the sponsorship of major events.
Sometimes, however, the sponsorship of an event can earn bad publicity for the company. This can happen when the event or the players get embroiled in various controversies. For example, in the 1990s when a cricket tournament was held between India and Pakistan, there was a massive fight between the players of the two countries. This earned a lot of bad publicity for not only the tournament but also its sponsor Nike. In the aftermath of this ugly incident Nike’s sales reportedly decreased by 10 percent in both India and Pakistan.
After analysing both sides of the situation, it is not hard to see that sponsoring a major sporting event can sometimes earn bad publicity for a company. However, such incidents are very rare. Since a company can become a household name by simply associating itself with a major event like Olympics or World Cup Football, I strongly believe that the benefits of sponsoring such events outweigh the disadvantages if any.