The Essential Brand Guide to Promotional Risk Management

When promotional marketing works well it can in fact cost brands a lot of money in honouring the promotion. So it is important that brands and marketing agencies consider promotional insurance as early as possible in the campaign and enlist the aid of promotional risk management companies. This is specifically true of promotional campaigns linked to a sporting event or personality.

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When promotional marketing works well it can in fact cost brands a lot of money in honouring the promotion. So it is important that brands and marketing agencies consider promotional insurance as early as possible in the campaign and enlist the aid of promotional risk management companies. This is specifically true of promotional campaigns linked to a sporting event or personality.

By their very nature sporting events are very unpredictable. For example in the 2010 FIFA World Cup injuries to key football players would have seen promotional insurance premiums drop dramatically had those players not been available for squad selection. Similarly for other sporting events where the reigning champions can suffer bad form due to injury or personal problems can see their near competitors rise through the ranks. Thus the insurance premiums for the new sporting stars can increase dramatically over a short period of time. Sporting form can work the other way too. Where national teams once performed badly they may surprise during the next sporting event so promotions based on the number of gold medals won for example may prove very costly if the right insurance is not purchased.
Arguably insurance companies don’t like unpredictability and ideally want sporting events to run to form. You won’t see may promotions based around popular horse racing events.

So if you are a brand looking to promote during the next big sporting event what options are available?

1. Brands have the option of promoting the campaign themselves accepting all liabilities including the consumer redemptions and all the costs in managing any physical fulfilment of the promotion, for example, packing and posting the reward.

2. Limited levels of over redemption insurance is available for brands to cover themselves in the event of an unexpectedly popular promotional campaign.

3. Ideally brands need to consider a fixed fee option which covers all the redemptions, expected or otherwise, as well as the cost of packing and posting the reward to the consumers.

Third party promotional risk management companies can offer brands promotional insurance geared to the specific needs of their campaigns. For example sporting events can attract a specific sport risk insurance that promotional risk management companies can offer as good rates to brands and agencies. This type of insurance is not normally available via traditional insurance company channels. Insurance such as this is known as fixed fee and is ideal for sport-based promotions that typically have the highest rates of redemption and participation. Historically sports promotions are open to a wide range of brands who want to associated themselves with the sporting event and not just those specifically associated with the sport itself.

Brands continue to turn their attention to the next great sporting event and those like the Olympic Games attract a lot of attention due to the promotional opportunities they offer. The Olympic brand itself is protected by law but where this is the only sport this protection applies to there are always a myriad of opportunities for brands and retailers to boost sales and get to know their consumers. Brands could save themselves a small fortune if they consider the right promotional insurance.

Vist www.mandofixedfeeblog.co.uk to find out all you need to know about promotional risk management.