It seems strangely appropriate to arrive at Avaya’s Guildford offices in the blazing heat of an unexpectedly warm early spring day. Firstly, because this kind of very un-British weather reminds the visitor that Avaya is a US company, and the heat haze and impressive, if understated, corporate HQ would seem more at home in California than Surrey. (Even though the company is actually based in New Jersey.) Secondly, because the sunshine, sense of optimism and clear skies and more importantly conspicuously-branded minibus parked outside the main entrance reinforce the link the brand has with the event of the year, and probably of the next four years: the FIFA World Cup.
As its biggest and only dedicated B2B sponsor, Avaya stands to benefit enormously from the month-long tournament and is not turning down any opportunity to promote its involvement. Having committed $100 million over six years on the deal, this is readily understandable.
This commitment to marketing is bold, particularly for a company that is only six years old: Avaya came into existence in 2000. It might even be considered arrogant to invest such large sums in what is essentially a single event, which if not managed or leveraged properly could spell disaster for the company and its brand on a global scale. Given the turmoil that the IT sector has endured in recent years, putting all your marketing eggs in one basket might not be wholly recommended.
But any such suspicions are banished when the man in charge of the project walks into the room. In marked contrast to the hype and euphoria surrounding the tournament itself, Martyn Lambert, VP of marketing for EMEA at Avaya, exudes quiet, thoughtful confidence that the sponsorship will achieve its objectives and help continue the company’s meteoric rise. Lambert also immediately dispels any suggestion of corporate arrogance: he has a warm, self-effacing and almost scholarly manner, as well as a sense of calm thoughtfulness that encourages empathy. He certainly has none of the bluster that you might expect of a practitioner in such a prestigious position and is the last person you might accuse of ‘macho’ marketing.
Like many senior technology marketers, Lambert did not set out to become a marketer, but over time has migrated towards it, and his career appears all the richer because of this evolution. I started out as a teacher, he says, in lilting Welsh tones. I was a lecturer of trainees at ICL in Old Windsor, then graduated out of the classroom into systems engineering and then sales. Whilst this academic background may be a long way behind him, Lambert still retains a slight professorial air, which is refreshingly unusual amongst business marketers.
The leap into marketing occurred at HP at the beginning of the 80s, where Lambert was involved in the development and marketing of a product called HP Mail, which took him to the US for a spell, broadening both his personal and professional horizons.
Once established in marketing, his career blossomed: he was CMO at Sherwood Technology when it was acquired by SunGard in the early noughties, prior to which he had been awarded fellowship of the CIM for his work promoting the iconic Java programming language for Sun Microsystems. I was ‘Mr Java’ in Europe, he says.
Although Lambert’s career has spanned three decades, it shows no sign of slowing down: after the World Cup and once a replacement has got their feet under the desk he is heading back to the US to take up the role of global head of product marketing. His enthusiasm for this fresh challenge is abundant, This is a fantastic opportunity. It’s a chance to really influence Avaya directly, and to maximise where we are on a global scale. I’ve reached a high level in this organisation through my expertise and execution. Now I have a chance to really make a difference.
Intriguingly, the new role also allows him the chance to revisit his earliest marketing experiences product marketing although admittedly on a higher level. Thirty years after starting my career, I’m right back at the heart of things again. Product marketing is a great discipline. This is where I cut my teeth, and it’s a great place to be. I’m going back to my roots.
It may be revisiting old ground, but it’s certainly a long way from the days of teaching with ICL. So to what does Lambert owe this success? It’s a combination of luck and astute planning, he says, putting much of this down to changes in the structure of the market. Development of the technology sector has been driven by a series of disconnections, and I have been fortunate enough to be involved with all of them. The first was the move from the mainframe to the mini computer. Wave two was the arrival of the PC. Wave three was definitely the Internet: the availability of information has changed things enormously. The next wave was the arrival of web-enabled applications [including so-called ECRM solutions such as Salesforce.com]. Now I find myself caught up in the fifth wave, which is VoIP (Voice over Internet Protocol).
For the non-technologically initiated, VoIP is a means of using Internet technology to deliver and manage voice communications, in a vastly more efficient and cost-effective manner than conventional or digital telephony. Lambert believes the potential of VoIP means it can, and should, stand alongside the arrival of the PC and the Internet in terms of its ability to transform the technology sector, and consequently how business is conducted. As a specialist in both telecoms and Internet technology, Avaya is superbly placed to both ride and drive this wave. We are seeing the re-emergence of voice, he enthuses. Voice is a very efficient way to communicate. We will gradually see the integration of VoIP with all desktop functions. Such voice applications, he says, are only just beginning to emerge, and many will not even have been thought of yet. As head of product marketing, he will play a key role in both their development and marketing. 2005 was an inflection point, in that more IP telephony was shipped than standard digital lines. This should tell us something, and once again I’m in a blessed position to exploit this situation.
It seems that Lambert has a knack of being at the right place at the right time to catch the wave, but he gently refutes that his success has entirely been driven by good fortune. What isn’t luck is to see the opportunity and move in. When I joined Sun, it was an ailing work-station vendor. The Internet was just a twinkle in Tim Berners-Lee’s eye.
Avaya’s ability to catch this next IT industry wave is crucial in understanding why the company has committed the astronomical figure of $100 million into the FIFA World Cup over a six-year period.
In Lambert’s own words, Avaya spun out of Lucent in 2000, and soon after signed a deal with FIFA to sponsor the 2002 World Cup (jointly hosted by Japan and Korea) to put itself on the map. The rationale was simple: Avaya was a two year old company which no-one had ever heard of. In this situation, how do you punch above your weight to raise brand awareness? You can’t out-advertise the global IT giants or in-country incumbents.
However, as Lambert pointed out, given Avaya’s US parentage, sponsoring a football tournament wasn’t as obvious a decision as it might have been for a company based elsewhere. The World Cup is nothing like as well known or supported as the Super Bowl within the US, for example. In 2001, this was an inspired move for a US corporation to take on a not so well-known property for brand awareness, says Lambert. He points out that although ‘soccer’ plays second fiddle to home-grown US sports, its penetration amongst the business decision makers is enormous, if low key, because of its near-universal adoption as a school sport.
In the rest of the world, meanwhile, the appeal of the World Cup needs no qualification. One simple but staggering stat encapsulates everything: it is estimated that one third of the world’s population will watch at least part of one of the games, and therefore see the Avaya logo. This is a show-stopper, says Lambert. It allows us to hit our target market, whichever way you segment it.
The 2002 FIFA World Cup achieved the objective of getting the Avaya brand in front of over one billion people, effectively putting it on the map. The company was responsible for implementing and maintaining a communications infrastructure for the tournament, which was essential for FIFA’s administrative purposes and also for the global media coverage. In return, Avaya benefited from extensive exposure throughout the tournament.
Commitment to the 2002 World Cup also gave the company option of first-refusal on continuing the arrangement for the following tournament. This gave us a unique opportunity, explains Lambert. Unlike the previous tournament, World Cup 2006 is to be held in Europe, or Germany to be precise, which he describes as, our backyard. It was a marketer’s dream. This would mean leveraging the promotional opportunities of the property to target the key audience of European IT buyers would be far easier than for 2002. Lambert adds that it also tied in beautifully with Avaya’s acquisition of German IT/telecoms supplier Tenovis, which took place in 2004. The FIFA World Cup 2006 was just too good an opportunity to miss.
From the outsider’s perspective, sponsorship of a major sporting event may appear to be a simple process, with the company signing on the dotted line, supplying creative material and then sitting back to watch the money pour in. The reality, however, is quite different. Like 2002, Avaya’s contract commits it to develop and deliver a state-of-the-art network communications infrastructure, including 12 different stadiums and 30,000 individual telephone lines. It’s the equivalent of the telecommunications network of a small city, says Lambert. The company will be responsible for all communications activity during the tournament, together with other core functions such as accreditation and security. As a consequence, the network is to use a well-worn IT cliché mission-critical.
What has changed since 2002 is FIFA’s network functionality requirements. Four years ago, football fans might have hoped to text their friends the score of a match from their mobile. Today, they expect a video image of a goal beamed to them in seconds. The technology wave is accelerating, explains Lambert, and this has significant repercussions for Avaya’s implementation programme.
As if this pressure were not enough, Avaya must also pay for the privilege of providing this network; and at $100 million for the six-year relationship, pay handsomely. This figure includes both World Cups. Lambert says that, broadly speaking, the investment is split three ways. About one third of it is fees for the asset, in other words, the FIFA World Cup brand. Another third is on value in kind for equipment supplied, continues Lambert, and the final third is on marketing and deployment costs.
This last component accounts for how Avaya is making the whole project work as a marketing exercise. As part of the deal, the company has secured 16,000 tickets for World Cup matches, which it will distribute to customers and prospects from companies across Europe. But it’s a lot more than just taking people to watch the football, he says. We will take guests to our technical centres and on tours of the stadiums, so that they can see how the whole thing works. It’s a case study for 16,000 people. It’s a huge customer management exercise.
Lambert admits he is sensitive to the issues surrounding ticket availability, which have arisen at recent tournaments, with football fans sometimes unable to buy tickets to watch their team, whilst corporate guests (with potentially little interest) enjoy games for free. Yet he doesn’t feel this will negatively impact on Avaya’s brand, because it will be seen as more of a partner than a sponsor.
As regards the 2010 World Cup, to be held in South Africa, Lambert says a decision will be taken on this once the 2006 tournament has been concluded, and presumably Avaya can have some idea of its effectiveness or otherwise. However, the location of this tournament, which is significantly further away from most of Avaya’s key customers, is likely to have an impact on the decision. Lambert, though, will play little part in the process, by that point being firmly ensconced in his new role.
In the meantime, he’s gradually easing himself out of his European responsibilities, and making sure everything runs according to plan. I will definitely be watching some games, both in my own time, and with Avaya.
But is he a football fan? There is a pause. I think my accent probably gives it away… Although its senior marketer would almost certainly rather be watching men in red shirts throw, instead of kick, a ball around instead of waiting on the next installment of the Wayne Rooney saga thanks to his dedication, Avaya looks set to once again prove to be a winner at the World Cup, regardless of who proves victorious on the football pitch.
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