The Nation Newspaper

Tag: marketers

  • Marketers: we are owing transporters N20b

    THE Major Oil Marketers Association of Nigeria (MOMAN) is owing petroleum products’transporters N20billion, its Executive Secretary, Olufemi Olawore, has said.

    The debts, he said, arose over the marketers’ inability to get subsidy arrears from the Federal Government. The marketers are Mobil, Forte, Total, MRS, Conoil and Oando.

    Olawore said at a stakeholders’ forum in Lagos that the association was planning to offset the debts soon.

    The matter, he said, was presented before the marketers by transporters, adding that his body would investigate the claims.

    He said: “Transporters have told us (oil marketers) that we are owing them N20 billion for helping us to move petroleum products across the country.These are claims, which we are planning to investigate. By the time we reconcile the figures the transporters have with our own, there may not be any difference.”

    He said the debt is a confirmation that marketers are in a dire situation, adding that the problems facing marketers are many.

    “Marketers are talking about difficulties in getting money to import fuel into the country, while at the same time, battling with debts. The money the government is owing marketers is huge, making it difficult for them to operate optimally. We would get over our problems as soon as the Federal Government fulfills its financial obligations to us, he said

    According to him, it is becoming difficult for marketers to work, stressing that marketers are mulling pruning their activities to cut costs.

    He said stakeholders would be affected if the association embarked on cutting its operation.

    It would be recalled that the issue of petroleum subsidy has generated controversy, pitching the Federal Government and the marketers against each other.

    This has resulted in the plans, by the government to withdraw subsidies in January 2013, a development which led to protests nationwide.

  • Fuel scarcity looms as marketers run out of stock

    Fuel scarcity looms as marketers run out of stock

    The country is set to experience fuel scarcity, The Nation learnt last night.

    The Executive Secretary, Major Oil Marketers Association of Nigeria(MOMAN), Femi Olawore, said the stock in Apapa would last three and half days beginning from Friday to Monday.

    He said it would be extremely difficult for his members to supply fuel to the public, once Apapa runs out of the product.

    He said marketers are operating partially because they are unable get enough money to import fuel.

    He said marketers have cut down on importation, following the refusal of the government to pay them huge arrears on subsidy.

    He said: “ Aggregate subsidy arrears owed oil marketers  by the Federal Government  is N356.2,billion. Out of this amount, the Federal Government had made provision for N100billion in a Sovereign Debt Note (a postdated financial instrument) , which is expected to mature at the end of April 2015.  However, the remaining N256.2 billion comprises actual subsidy arrears for part of 2014 (batch T and U) and 2015 (batch A and B) and the foreign exchange differentials cum bank interests. The development is gradually grounding our operation to a halt.

    He added that: “Strike action, on the part of marketers is inevitable, in view of the on-goings in the petroleum sub- sector Can we open our outlets across the country. If we do not have fuel to sell. No. We supply 40 percent of fuel in the country. Before, it was 60 percent. But the inability of the government to pay us our arrears left us with no option than to reduce importation. The Nigerian National Petroleum Corporation (NNPC) supply smaller proportion of petroleum products in the country.”

    According to him, marketers have resolved to go on strike because the government is not ready to meet its debt obligations, stressing that this is the time for marketers to get their money.

    Olawore said since another government is coming and that it would not be wise to saddle the government with the responsibility of paying the debt it does not owe.

    He said the fact that the strike was coming few weeks to the inauguration of a new government does not mean the strike action was politically motivated.

    ‘’Oil marketers would have embarked on strike before now. In fact, we wanted to go strike during the electioneering campaign but we have to shelve it to avoid a situation where by people would be reading political meanings to our actions. But now, there is nothing we can do,” he said.

    NNPC, in a statement signed by its Spokesman, Ohi Alegbe, said it has enough stock of petrol to service the country for 27 days at a national consumption rate of 40milion litres per day. The National Oil Company said it has stepped up efforts to end the fuel problems.

     

  • Govt to pay oil marketers N185b to end fuel scarcity

    FUEL queues may soon disappear, with the government agreeing to meet marketers’ demands.

    Minister of Finance and Coordinating Minister for the Economy Dr. Ngozi Okonjo-Iweala said yesterday that the costs incurred by the marketers, their fees as well as interest and Foreign Exchange (forex) differentials would be paid.

    To get the marketers, who have not been importing fuel to take it easy, a meeting between them and the minister has been scheduled for today.

    The minister said the government had packaged some initiatives to address the marketers’ concerns.

    “Specifically, we have taken the following steps: we’ve reached an agreement with the marketers’ union on the N185 billion balance of their payment. As part of this agreement, we are paying not only the costs they’ve incurred and their fees but also interest and forex differentials.”

    In addition, the minister said the Debt Management Office (DMO) had been instructed to issue Sovereign Debt Notes (SDNs) to cover N100 billion out of the N185 billion agreed upon as balance for the next payments and that the Central Bank of Nigeria (CBN) had also given approvals for the banks to issue letters of credit.

    The government, Mrs. Okonjo-Iweala said, “is very concerned about the fuel queues which have appeared in Lagos, Abuja and other parts of the country”. “The Petroleum ministry and NNPC have worked very hard to reduce them to the barest minimum. We sympathise with Nigerians whose lives are being disrupted by the queues and assure them that we are working hard to end them as quickly as possible.”

    She said the fuel crisis was “due to a mix of factors, including disruption of pipelines and logistical issues and they are being attended to urgently.”

    Mrs. Okonjo-Iweala pointed accusing fingers at those she described as unpatriotic marketers who have refused to cooperate with the government. She did not, however, name such marketers.

    She said: “It is clear that while the union and most members have been cooperative, some of their members are not. Some of these people have even refused to open Letters of Credit (LCs) to facilitate their payments. We salute the union and the members who are working hard to end this unfortunate situation. As for those who are working in the other direction, Nigerians should ask them what their motives are.”

    To end this unfortunate situation as quickly as possible, Mrs. Okonjo-Iweala said, “the Petroleum ministry and NNPC are taking strong action to improve supplies in this election season”. “I’ve been speaking with Major Oil Marketers Association of Nigeria (MOMAN) and they’ve assured me that they are working hard to increase supplies and more are on the way.”

    She said 40million litres was been distributed in Lagos yesterday with 86 trucks already in Lagos “and another 86 trucks heading for Abuja. Other parts of the country are also included in the plans. So the situation should improve soon.”

    The minister said contrary to some speculations, the fuel queues were not caused by payment issues. “We paid the marketers a total of N320.8 billion from the Excess Crude Account (ECA) in two installments last December.

    “This underscores the fact that we are taking payment of marketers very seriously indeed. We’ve been in constant touch and talking with the marketers and a week ago we reached an agreement with them on their core concerns, which we have addressed.”

     

  • NNPC: we’re owing marketers

    NNPC: we’re owing marketers

    Following the Federal Government’s intervention, Petroleum Product Pricing Regulatory Agency (PPPRA) Executive Secretary Farouk Ahmed yesterday said the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, had approved that the Sovereign Debt Notes (SDN) be payable on March 30 to the oil marketers.

    The Group Managing Director,  Nigerian National Petroleum Corporation (NNPC), Dr. Joseph Dawha,  said the Pipeline Products Marketing Company (PPMC) promised that there would be normal supply of products in Abuja and its environs today.

    With him were Chief  Executive Officers (CEOs) of the corporation’s  subsidiaries  during an inspection of petrol stations opposite the NNPC  towers in Abuja.

    Dawha said: “We are here to see how thing are going on, we know that there is enough supply to cover all the filling stations but I wanted to see things for myself with the NNPC and things are getting back to normal.

    ”The PPMC has told us that by tomorrow (today), there will be normal supply in Abuja environment.”

    He added that more trucks are coming from the Suleija depot and more are coming from Lagos to clear the queues as quickly as possible.Tracing the root cause of the scarcity,  Ahmed said that commercial banks’ reluctance to issue letters of credit to marketers for importation fuelled the petrol scarcity.He said the devaluation of the naira caused confusion in the banking sector that further worsened the scarcity.

    His words:  “The problem actually started with the banks who were reluctant to issue letters of credit to marketers for importation and this was compounded by the naira devaluation by the CBN and that brought some confusion into the banking sector.

    ”Ahmed said Mrs. Okonjo-Iweala had approved Sovereign Debt Notes payable on March 30 to the oil marketers.He noted that the agency is expecting about 8000 metric tonnes which is about one billion litres this month while other marketers are bringing in products this weekend.

    PPMC Managing Director Haruna Momoh said: “If we had our pipelines fully in shape, within two days, we would have had this situation cleared because our supply is much more robust, as at today. We have quite a number of vessels that have arrived over the weekend and we are expecting much more to arrive before the weekend.Regretting that the pipelines are not working, he said that the quickest, safest and most environmentally friendly and easiest way to transport petroleum products in a country that is as large as Nigeria is through the pipelines.

    Department of Petroleum Resources (DPR) Director George Osahon  said  marketers were hoarding fuel in anticipation of price increase by the Federal Government.He said that: “The issue now is people hoarding fuel so that price will go up. Over the course of time, several things will come up to enable pinpoint who is hoarding, but now, we still use the dip stick system to determine the volume of product in tanks.”

     

  • Marketers halt importation as petrol scarcity persists

    Marketers halt importation as petrol scarcity persists

    Fuel queues grew longer in many cities at the weekend — no thanks to thedisagreement over subsidy between the government and marketers.

    It was gathered that because marketers have reduced their import, the scarcity may persist.

    But the Nigerian National Petroleum Corporation (NNPC) plans to triple its supplies to mitigate the shortfall.

    Many filling stations in major cities, including Lagos and Abuja, at the weekend either did not sell the product or sold above the N87 price. Many sold at between N97 and N110 per litre.

    There were queues at filling stations. The situation got worse in Abuja yesterday, with many stations under lock and key.

    The few that opened to customers were besieged by residents. Queues extended to the roads.

    Besides, the petrol stations which operated yesterday only engaged in skeletal services, selling with few pumps.

    At 3.00pm in Kubwa, the Nigerian National Petroleum Corporation (NNPC) and Oando stations were shut.

    The NIPCO opposite them was overwhelmed by customers.

    According to some of the motorists, who were sweating in the scoching sun, they had queued up for petrol as early as 6.00am.  It sold petrol for N87.

    Oando at Dutse Junction, also on the Kubwa expressway, had a long queue.

    There were two queues stretching over a kilometre to the NNPC super mega station on the same expressway.

    Group General Manager, Group Public Affairs Division, NNPC, Mr. Ohi Alegbe, at the weekend cautioned the public to desist from panic buying.

    In a statement, the corporation said it was working with all downstream industry stakeholders.

    The statement said: “ The management of the NNPC has called on members of the public not to engage in panic purchase and hoarding of petroleum products as the Corporation is working with all downstream industry stakeholders to eliminate the noticeable artificially, induced fuel queues in some fuel stations.”

    Alegbe added that because of the prevailing situation, the corporation, which has been responsible for 50 per cent of nationwide product supply, has stepped in to address the scarcity by tripling supply from their tank farms in Lagos and other areas in the country, which will be trucked to the hinterland. He told The Nation that the NNPC within 48 hours from Sunday will be able to inject 600, 103.047 metric tonnes of premium motor spirit (petrol) equivalent of 688 million litres into the market.

    He urged to consumers to exercise patience and not engage in panic buying as the scarcity will be arrested as from tomorrow.

    The initial cause of the scarcity was a reaction to oil marketers’ report that their stock level was down and the replenishment was not feasible because of unpaid subsidies that stood at N264 billion. The signal from the marketers that they would not be able to import fuel compelled some retail outlets to slow down on sale.

    However, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had a meeting with the marketers last week promised that the debt would be fully paid by end of this month. Based on this promise, the marketers agreed to continue with importation of petrol.

    However, the National Assembly last week cut the 2015 subsidy budget of N200 billion by half. This action, The Nation learnt, didn’t go down well with the marketers as their fears were heightened that the government may renege on their promise to pay the outstanding debt let alone additional debt. The marketers before now have been showing concern over budgetary allocation of N200 billion for subsidy in 2015, wondering if that may mean a step to full deregulation of the downstream sector.

    Although the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Mr. Obafemi Olawore and the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Okoronkwo, could not be reached yesterday, Olawore confirmed to reporters that there was a drop in MOMAN members’ stock but with the meeting held with the Minister of Finance, they would step up importation.

    For IPMAN, it was learnt that the level of debt owed them is enormous. Theirs is a complex case because The Nation learnt that many of their members have issues with clearance on the imports they made and without the clearance there will be no payment.

    Besides, The Nation also gathered that the banks had stopped granting letters of credits (LCs) to IPMAN members, which worsened the supply situation.

    At the moment, only the NNPC through its subsidiary, the Pipeline and Products Marketing Company (PPMC), is importing petrol.

  • Online, offline marketers clash over sales

    Online, offline marketers clash over sales

    There is a competition between online and offline marketing channels as a result of the desire for increased sales and consumers’ satisfaction. This is already sowing seeds of discord among brand owners, authorised distributors and online stores. Experts believe such rivalry can threaten trade channels, writes ADEDEJI ADEMIGUJI.

    E-Store has emerged as a significant retail force that is putting pressure on the traditional brick and mortar retailers. With even more  pressure on traditional distributor channels of product supply chain, the increasing competitive marketing environment is pushing online stores into offline where traditional supply chains thrive.

    As a result, The Nation gathered that a leading electronic company, LG, is facing pressure from its traditional distributors to call its online sales partner, Jumia, order.

    While this introduces new twist to the debate over threats online stores pose to traditional supply chains, regarded as offline market, some distributors are facing hard times, hence prompting LG, according to a source, to accuse Jumia of receiving products for online sales but end up selling them offline to make their books good.

    “They get products at very low cost much better than distributors of established companies, such as LG + other electronics. They sell to keep margins since their sales don’t move too well,” an LG source told The Nation via email.

    Though whether their products are old online or offline, brand owners still make good sales but the threat the practice poses to trade channels baffles marketing experts, who also accused marketing activation agencies of similar practice. “The practice is all about recording high sales figure. Activation agencies also engage in this practice when they are given targets in a specific area but they decide to go outside the coverage area. This is diversion which defeats the purpose of the manufacturers. In most cases they short-change the manufacturers by destroying their trade channels which is the main challenge in the case,” a brand expert, Andrew Akinyemi.

    Though LG refuses to comment on its channel conflicts between Jumia and its traditional trade channels, with the challenge online stores is giving traditional trade channels, the Jumia Head, Offline Marketing Afam Anyika, seems to see such practice as a consequence of competitive business environment. He doesn’t see anything wrong in having an online stores competition in the offline market, especially when physical stores are  present in the online market to compete with offline stores.

    “First of all, we are an online marketing sales channel. You should understand that the way you have competitors online you also have competitor’s offline like Spar, Shoprite. We are also competing within the retail industry. Our competition is not limited to online but we have our own sales strategy. Everybody has their own sales strategy and our own mission is to deliver value for Nigerian consumers,” said Anyika.

    He said further that there is no marketing rule that prevents online marketing channels from venturing into offline market. “There is no rule in the book that says I can’t. As I said, it comes down to strategy. Offline guys are setting up online stores now. The world is growing bigger and bigger and bigger opportunities are coming, the market is opening, there is rise in middle class and spending is growing. You don’t sit down and fold your hands. Every successful business thrives on innovation. So, off-line guys are doing online stuffs now but the most important thing is how do I satisfy you customers?” he asked.

    On the concern against alleged Jumia’s involvement in selling LG products offline having been given an attractive discount for online sales of the product, he said: “The issue is that the information is very new to us. We have never heard and we know nothing of it. From my own side, we will ask our partner to find out if the allegation raised is true and if so, why not communicate? So far, even my partner doesn’t know where this is coming from. There is no way that an organisation that has very strategic partnership with this brand will complain. The LG you spoke about are our partner in a marketing campaign in the last three months. We have developed that level of partnership and trust. So, there is no way such an issue will happen and they won’t tell us within the space of five minutes and we find a way around it. But we need to understand where this information is coming from through our investigation. There are certain things that we are bound by confidentiality. As I mention, understand that we are also competing for market share on sales of this product. We will get it from them, and we know what we discuss with them,” he told The Nation.

    Experts believe that channel conflict occurs when manufacturers (brands) dis-intermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet.

    Some manufacturers want to capture online markets for their brands but do not want to create conflicts with their other distribution channels. The Census Bureau of the United States Department of Commerce reported that online sales in 2005 grew by 24.6 percent over 2004 to reach $86.3 billion. Total retail sales in 2005 grew by 7.2 per cent from 2004. These numbers made the online marketplace attractive to manufacturers, but raised the question of how to participate without harming channel relationships.

    According to Forrester Research and Gartner from 2007, despite the rapid growth of online commerce, about 90 percent of manufacturers did not sell their products online. Of these, 66 percent identified channel conflict as their single biggest issue. However, results from a survey show that click-and-mortar businesses have an 80 per cent greater chance of sustaining a business model during a three-year period than those operating in one of the two channels.

    However, E-commerce is the most popular second distribution channel because of its low overhead expenses and communication costs. This advantage is also a disadvantage, since consumers can also communicate less expensively and more easily with one another in the online marketplace. Therefore, price and product differentiation is more challenging in online markets.

    To avoid a channel conflict in a click-and-mortar business, experts said it was necessary to ensure that both traditional and online channels were fully integrated. This reduces confusion with customers while providing the business benefits of a dual channel.

    Manufacturers sell their products through various channels. Sometimes they find themselves competing to reach the same customers like Jumia and LG.

  • PPPRA warns marketers to sell fuel at new price

    PPPRA warns marketers to sell fuel at new price

    The Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Farouk A. Ahmed, yesterday warned oil marketers to comply with the new price regime for premium motor spirit (PMS) or petrol announced by the Petroleum Resources Minister, Mrs. Diezani Alison-Madueke.

    He said the agency and the Department of Petroleum Reources (DPR) would collaborate and ensure compliance with the new price regime so that Nigerians can fully gain from the donward price review.

    He also said the new ex-depot price of PMS is now N77.66 per litre.

    In a statement  in Abuja,  Ahmed recalled that President Goodluck Jonathan last Sunday directed the announcement of a downward review of the pump-price of PMS from N97 to N87per litre, with effect from January 19.

    According to him,  the announcement, which was made by Mrs. Allison-Madueke, is in consonance with Section 6, Clause 1, of the Nigerian Petroleum Act and was necessitated by the prevailing volatility in the international oil market and the drop in crude oil price.

    Ahmed said: “Consequent upon this announcement, the PPPRA, in exercise of its mandate of determining the pricing policy and setting benchmark prices of petroleum products, hereby further announces the new ex-depot price of PMS as N77.66 per litre.”

    “In view of the foregoing, oil marketers are hereby advised to adhere strictly to this new price regime, as the PPPRA, in conjunction with the DPR shall enforce compliance in order to ensure that consumers benefit fully from this review. In other words, any violation of the prevailing price regime, shall attract appropriate sanctions.

    “It is therefore our wish to advise Nigerians against any form of panic-buying, as there are enough products in all depots across the country.

    “We also wish to assure Nigerians that the PPPRA, in exercise of its mandate, is fully committed to ensuring adequate supply and distribution of petroleum product.”

  • Nigeria loses 759,000 litres of petroleum products to vandalism

    Nigeria has lost over 759,000 litres of petroleum products to pipeline vandalism in four years ( 2009 to 2012), the Managing Director, Pipeline Products Marketing Company(PPMC), Haruna Momoh, has said.

    At a conference in Lagos, Momoh said 712,779 litres of petrol, 9,548 litres of kerosene and 37,054 litres of diesel were lost during the period.

    Giving a breakdown, he said  175,425 litres of fuel were lost in 2009, 161,174 (2010), 187,192 (2011) and 188,985 litres in 2012, while 18,044 litres, 685 litres and 18,325 litres  of diesel were lost in 2010, 2011 and 2012. He added that in 2010, 2,099 litres of kerosene were lost and 7,449 litres in 2011.

    He said the country bore the costs of repairs and security, among others.

    A Lagos Zonal Trustee, Independent Marketers Branch (IMB) of the National Union of Petroleum and Natural Gas (NUPENG),  Kofo Oladehinde, said vandalism was a problem in the sector, adding that it aws affecting downstream operations.

    Oladehinde said operators across the distribution value chain were affected by the activities of the vandals.  He said: “Atlas Cove is a big oil installation that supplies petroleum products to many depots. From Atlas Cove are pipelines linking depots together. These pipelines pass through villages and people go to those villages to break them. Whenever  people break the pipelines, they disrupt operations of the depots and the downstream operators that sell fuel to consumers.  The cost implication is high to the government, the depots and other stakeholders.”

    Also, the Managing Director, Niger Delta Petroleum Development Company, Layi Fatona, said  pipeline vandalism has devastating effects on the economy.

    Fatona said pipelines transporting crude and refined petroleum products were vandalised at will, adding that the perpetrators are unmindful of the costs to the economy.

    ‘’Pipeline vandalism can be likened to the dreaded disease called Ebola, which the country is battling to contain.As a small indigenous oil and gas producing  company, we produce oil and pass it through the pipe to Bonny in Rivers State. It is not all the pipelines that are owned by the company. A majority of the pipelines are owned by the Shell Petroleum Development Company (SPDC) in partnership with the Nigerian National Petroluem Corporation (NNPC).

    ‘’Whenever there is a problem, it affects the entire system. Last year, we  shut our operations for more than one third of the year. Imagine, a whole of Nigerian production system being shut for a third of the year, automatically that is a third of the revenue, and then, you come into environmental degradation, unnecessary cost to repair is quite higher. it is a scourge.’’

    Fatona said people vandalise pipelines and steal the crude oil for sale, adding that there is a big market for  the product outside the country.

    ‘’We know there is a ready-made international market for crude oil stolen through various methods in Nigeria. But the questions are: ‘Who are the buyers? Who are the people supporting those that engage in crude oil theft or pipeline vandalism?’ We all need to provide solutions to these problems if the sector must move forward,’’ he said.

  • At last, marketers unite

    The 10-year-old dispute between the Chartered Institute of Marketing of Nigeria (CIMN) and the Nigerian Marketing Association (NIMARK) has finally been settled.

    Last week, the two factions signed a memorandum of understanding (MoU) . Henceforth,  the amalgamation will now be known as National Institute of Marketing of Nigeri (NIMN).

    The parties, headed by Rotimi Adeyeye and  Ganiyu Koledoye, who were joined by other stakeholders to sign a Unification and Memorandum of Understanding expressed satisfaction at the outcome. They confessed to have long desired to come together as one body that will propagate the essence and core values of the institute while advancing the cause of the profession and the interest of the practitioners.

    President of the institute, Ganiyu Koledoye while appreciating the efforts and support of the stakeholders of councils and fellow members, stated that the unification will serve “as a solidarity institute devoid of mockery”.

    “This MoU will bind us together as one body and never again will there be any faction or factions that will allow the institute to be ridiculed. There is no professional body in the country without any internal crisis; but they always come together to resolve it, and ours will not be an exception. This is why we are here.

    “We have gone the extra mile to ensure that NIMN certificate is recognised in other parts of the world. We will also use the institute to contribute our quota towards the development of Marketing in Nigeria.”

    Koledoye also lauded the support and role of the federal government for making it a reality while acknowledging the former President Olusegun Obasanjo led administration for promulgating the Act that established the Institute in 2003.

    NIMN Factional leader, Rotimi Adeyeye while commending Koledoye for his relentless effort in bringing both parties together stated that the Marketing profession in the country will go all the way to ensure that its impact is felt. “Marketing profession is not in its rightful place in managing the economy of the nation.

  • World Cup: Marketers subtitle Spanish adverts in English

    TO appeal to bilingual consumers, marketers are airing  Spanish adverts with English-subtitles in the ongoing World Cup.

    Marketers have been tiptoeing into this space with Spanish phrases or slogans included in adverts, said David Wellisch, founder and managing partner of Latinum Network. But running an advert entirely in Spanish on an English network is novel.

    Mr. Wellisch said: “It’s very innovative. Companies are exploring and experimenting across the board. It’s all driven by the growing influence of this consumer segment.”

    J.C. Penney scooped up advert time for its Spanish-language spot, “Pulse,” on NBC, ABC and Fox, after the advert performed well on Univision. A promotional offer added to the spot will have an English voiceover. The spot is part of a push meant to position J.C. Penney as the department-store destination for Hispanics.

    “Hearing the Spanish language with subtitles will be a compelling disruption that should cause the commercial to disrupt better than if it was translated. It’s also a great way to cast a wider net and capture the more acculturated, bilingual millennials that may be tuning into other networks outside of Univision during the World Cup.”

    Dish Network is embracing the approach with its campaign, El Juego Bonito, or “The Beautiful Game.” An ad featuring a scantily clad dancer promotes the ability to watch multiple views of a soccer game with Dish’s Hopper set-top box — with multiple views of said dancer. The ad aired on late night shows, including “The Daily Show with Jon Stewart” and “The Colbert Report.”

    Hyundai has also been airing a subtitled ad as part of its “Because Futbol” campaign that features a baby boom nine months after the World Cup.

    As recently as the Super Bowl, Coca-Cola was the subject of a consumer backlash for airing an ad that featured a variety of languages. As such, Mr. Wellisch said there’s certainly a possibility marketers airing Spanish-language ads on English networks could upset some consumers. But generally, he added, World Cup audiences are more “progressive, urban, and more culturally open and engaged.”

    “You have to place some bets and take some risks,” Mr. Wellisch said. “If you’re a Latina mom, watching in the office on an English network, and [J.C. Penney] is speaking to you, you will remember.