Following its strategy to saturate the host countries of sporting events that it sponsors, Visa Inc. got an early start in Colombia in signing up merchants for marketing promotions in anticipation of the FIFA U-20 World Cup, which starts this week, PaymentsSource has learned.
“Based on everything that happened [at the FIFA (soccer) World Cup] in South Africa, one of the big lessons learned was to start early,” Yuri Morales, regional director of sponsorships for Visa’s Latin America and Caribbean region, tells PaymentsSource, noting Visa began reaching out to key banks and retailers in Colombia at the end of 2010. “Many of the retailers already accept Visa but they have an interest in increasing the share of electronic payments, and we present a way for them to do that.”
Visa’s “Go Colombia” marketing and advertising campaign in Latin America is an extension of the card company’s global “Go World” marketing overhaul launched in 2008. The program includes working with major Colombian retailers such as McDonald’s Corp. and three major grocery superstores, including Carrefour Colombia, which is operated by Carrefour Group; Exito, operated by Grupo Exito S.A.; and Olympica. Combined, those retailers control 80% of the superstore market, Morales says.
Besides providing extensive point-of-sale material to encourage customers to pay with their Visa cards, the company is supporting giveaways of prepaid Visa cards and trips to the final match of the U-20 World Cup.
“This is significant because those stores are traditionally very competitive and don’t like to do anything that the others are doing,” says Morales. “But we showed them it was a big opportunity to boost Visa sales.”
Retailer deals include drawings for prepaid Visa cards for consumers who spend more than 100,000 pesos (US$56.81 and 39.57 euros) at the stores. Visa did not disclose the amount on the cards.
The participating retailers also are giving away trips to the final and game-day experiences, such as visiting the stadiums to be near the players before games, at half time and after games. There are 52 matches in the tournament.
McDonald’s is running a promotion in which customers who buy a value meal with their Visa card will receive a free McFlurry ice cream dessert.
Quick-service restaurants were an important category for Visa to have supporting the promotion because they are a key contact point for fans who visit them before and after games, says Morales. McDonald’s has between 60 and 70 restaurant locations in Colombia.
Participating merchants also are promoting the Visa giveaways on their websites and in their promotional print materials. One store sends circulars out to a database of 1.3 million Colombians, Morales says.
Visa is working with three major Colombian banks with large Visa portfolios to promote using Visa cards during the event, which takes place from July 29 through August 20. The banks include Banco de Bogota, Davivienda Bank and Colpatria Bank. The banks also are participating in trip and experience giveaways, says Morales.
Visa reports that boosting sales in host countries continues even after the sporting events are over (
Retailers are always happy to get an advertising boost from partners such as Visa, especially for such costly events as a major sporting event, Megan Bramlette, director at Auriemma Consulting Group, tells PaymentsSource.
And Visa has done a good job carving out a niche for sponsoring and supporting such mega events as the FIFA World Cup and the Olympics, as well as the FIFA U-20 World Cup in Colombia, she says.
“Visa is getting some serious penetration [for participating merchants who support Visa during these events,]” Bramlette says. “Visa’s got big [marketing] guns and a lot of clout in this space, and they know how to do it well.”
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