Chinese dairy firm Mengniu is in talks with football’s biggest governing body FIFA to sponsor next world cup 2022 in Qatar. Mengniu is the second largest manufacturer in dairy products of the country and by sponsoring world cup, company is looking to enhance their brand visibility. Dairy firm sponsored Russia’s world cup in 2018.
Lionel Messi, star footballer from Argentina, was the face of Mengniu dairy to promote products during 2018 world cup. According to the CEO of Chinese company, Mengniu’s brand recognition and revenue got increased amazingly last year by sponsoring football’s showpiece event in Russia.
“Sports have always been our interest and we will continue with that. We are in talks with Fifa to sponsor the next World Cup. Through online and offline activities, we invested about 1 billion yuan in different segments [of the 2018 World Cup]. It is quite important to our brand, and it increased our profit.,” Mengniu chief executive Lu Minfang said after disclosing company’s financial results in Hong Kong.
Mengniu invested one billion yuan approximately 149USD million in the brand promotion during 2018 world cup and company’s profit was increased by 14% from previous year. And the good news from company’s point of view that they didn’t require to offer discounts for achieving such results and growth.
“Last year, even though we did not offer any discounts, sales still grew 14 per cent. This is a very strong growth. In previous years, we had to offer discounts and still could not achieve that level of growth. That is very obviously down to the branding effect,” he added.
Company generated 68.98 billion Yuan in 2018 which is more than 14.7 percent from 2017 year’s profit. All this happened because dairy company chose legendary footballer Lionel Messi as a world cup advertising campaign during world cup. Mengniu offered beautiful football-shaped ice-creams and yoghurt drinks in the stadiums.
“We are using brand building, intellectual property, World Cup investment and building of products. About 90 per cent of our new products this year are from high-end brands, which are premium products. The competition in the mainland market is still healthy,” Lu Minfang highlighted competition in the market and reflected how company manufactured new products to boost sell.
Apart from Mengniu, Vivo and Hisense were prime sponsors and partners of 2018 FIFA world cup.