Any soccer fan knows that the UEFA Euro 2012 tournament starts
at the end of this week with hosts Poland playing Greece and
Russia playing the Czech Republic. It is worth considering: what
companies are involved and what implications does it have for
their stocks? Of all of the sponsors, four are traded in the US,
so let's look at these:
Canon (NYSE:
CAJ
):
the Japan-based manufacturing company is one of the twelve global
sponsors of the tournament. Canon will promote products such as
digital still cameras, printers, copiers, scanners and faxes to
be used during the tournament. Canon has been a partner of the
competition since 1980 and will benefit from on-screen credit
inventory, perimeter board exposure, have the ability to run
ticket promotions, and will provide camera and lens repair
service centres for professional photographers in each of the
eight stadiums. Traders might look for an upside to sales for the
next quarter off-set by higher marketing costs.
Coca-Cola (NYSE:
KO
):
the American soft-drink maker is also one of the twelve global
sponsors and has gotten a great deal. Not only will Coke be the
sole marketer of non-alcoholic beverages, it will also offer to
fans exclusive programs such as flag bearers and ultimate access.
As sole marketer of non-alcoholic beverages in all of the
stadiums, sales should be strong for this quarter. Even if the
European economy is slowing, these events are arguably bigger
than the World Cup and attract thousands of tourists per day,
making these rights a potential windfall for Coke.
McDonalds (NYSE:
MCD
):
McDonalds may be in the best shape of all sponsors, as it is
sponsoring the UEFA Euro 2012 fantasy football game, which
readers can
play
here
. With all of the hype surrounding this tournament and the sheer
volume of football fans around the world, this will be a great
way for McDonalds to continue to advertise its brand. Obviously,
McDonalds is already a household name so it is not that they are
trying to find untapped potential consumers; rather, they are
simply trying to stay ahead of competitors and keep its name at
the top of the mind of consumers.
Mastercard (NYSE:
MA
):
Mastercard is an event sponsor of the matches in Poland (there
are also matches in the Ukraine), where it will extend special
offers to cardholders. The company also plans to use its social
media resources to provide news, update, and insight to fans.
"With these relationships, MasterCard is able to create
business-building opportunities for its customer financial
institutions as well as offering value and "Priceless"
experiences for its millions of cardholders around the
globe."
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