1. PATH TO MARKET
SUCCESSFUL BRAND
PROMOTION THROUGH
CORPORATE SPONSORSHIPS
OF GROWING ELITE SPORTS
AbamsaQuaf
Sports. Media. Entertainment
2. 2
TABLE OF
CONTENTS
1. OBJECTIVES OF THE PAPER
2. EXECUTIVE SUMMARY
3. CORPORATE SPONSORSHIP
4. CORPORATE SPONSORSHIP AS AN OPTION
5. THE OPPORTUNITIES IN NIGERIA
6. THE FIRST STEPS
3. 3
This paper is aimed at providing the following;
a. An overview of corporate sponsorship and the benefits to both the
sponsors and consumers
b. Factors to consider before becoming a corporate partner/sponsor
c. Global trends and best practice
OBJECTIVES
4. 4
Over the past decades, the major focus in Nigeria has been on football and
the sport has enjoyed the required funding for development. This has made
other sports suffer and steadily decline. With this reality and the fact that the
required funding is not forthcoming from the government, stakeholders are now
clamouring for reduced government involvement in sport and more corporate
partnership.
For every relationship to be beneficial to all parties involved, there should be value
added to all parties. Corporate sponsorship is a form of marketing in which a
corporation pays for all or some of the costs associated with a project or program
in exchange for recognition and brand visibility. The sport gets value from a
sponsorship deal in terms of funds needed for the sporting events. How do the
corporate sponsors get value from this partnership?
Corporate sponsors will get incredible value from well-organised and executed
sponsorship opportunities through several means including;
a. Increased brand visibility and awareness
b. Enhanced customer loyalty, advocacy and brand perception
c. Access to prospects
Depending on the sponsorship package, sponsors can have certain rights (title,
media, official sponsors) to a sporting event thereby providing a good platform
to reach a large audience. Some of the audience is likely to become customers
due to this publicity provided by various media coverage, some will be informed
EXECUTIVE
SUMMARY
5. 5
of new products and some will have a new perception of the brand. An ideal
sponsorship will benefit the sponsor as well as the event and the consumers.
At the end of every sponsorship event, it is necessary to evaluate the level of
exposure/awareness gained, the communication and sales effectiveness, feedback
received and cost-benefit analysis.
Expert estimated a 5.3% growth in corporate sponsorship from 2010 to 2015.
The growth is attributed to successful partnership and achievement of goals.
The growth rate is expected to increase. However, in choosing a sport/event to
sponsor or organisation to partner with, corporate brands need to align their
marketing objectives to the benefits of the sponsorship. It will only be beneficial
if the sponsor can achieve both its broad corporate objectives and its brand
promotion/product-related objectives from the partnership.
6. 6
It is said that the success of a company or brand depends on its interaction with
the environment within which it exists. Sponsorship is one of the bridges that
connect the company to its environment. It can be categorised as a form of
marketing under the promotion segment of the traditional marketing mix’s 4Ps.
Corporate sponsorship is one of the many forms of sponsorship, where
companies pay to be associated with certain events. It involves financial backing
of a public-interest program or project by a firm, as a means of enhancing its
corporate image
Regardless of the form of sponsorship chosen, there has to be a relationship
between the company and an event/property that will help the company achieve
its objectives – brand, product, sales etc.
Objectives of corporate sponsorship
a. Increase public awareness of a company/brand
b. Alteration or strengthening of public perception of a brand i.e. image
building
c. Build goodwill, create relationships and achieve media coverage
d. Establishing association with particular market segment
There are a number of alternatives or areas where corporate sponsorship can be
achieved. A fast growing option is sports sponsorship.
Sport sponsorship involves investing in a sports entity with the aim of achieving
an organisation’s marketing goals and strategies; and the overall objectives.
CORPORATE
SPONSORSHIP
7. Sports sponsorship
can be in the form of
sponsoring an individual, a team
within a competition, a competition
with a sport, a specific sport or
sports in general.
Sport sponsorship plays a
significant role in the promotional
aspect of the marketing mix
because of its widespread
appeal and because sports
offer a global stage of mixed
emotions – happiness,
satisfaction, sense of
association and sometimes
tears. A very large
percentage of people are
also involved in sports either
as professionals, supporters
or through fitness and
general well-being. This
give sports grand media
coverage.
8. 8
In the 4Ps of the marketing mix, promotion is a quite important area as it
provides the medium through which a brand or product is connected to the
market/consumer. They include activities that communicate the qualities and
benefits of a product/brand, persuade target customers or consumers to buy it
and build the reputation of the company.
All promotional activities must be integrated to deliver a consistent and positive
message. These activities include advertisement, personal selling or telemarketing,
publicity or public relations, short term sales promotion and direct marketing.
Another key form of promotion is online/digital marketing which largely involves
the use of social media for brand promotion.
Corporate sponsorship is becoming a convenient and more effective option for
brand promotion. According to the PwC’s outlook for the global sports market
for 2015, corporate sponsorship for sporting events was estimated to increase
annually at 5.3% from 2011 – 2015 in the EMEA (Europe, Middle East and Africa)
region and an onward increase of 6.3%.
This growth may be because corporate sponsorship encompasses other activities
attributable to the conventional promotional activities
CORPORATE
SPONSORSHIP
AS A OPTION
10. 10
COMPANY’S MOTIVATION FOR SPONSORSHIP
Whilst the rationale for companies decision to invest in sports sponsorship varies
widely, what can be said is that the key motivation is no longer about maximizing
brand visibility and awareness only but also about gaining deeper and more
emotional engagement with fans and staffs, and even managing the perception
of the sponsoring company.
BENEFITS TO THE SPORT
Since sponsorship is largely a financial support of activities, events etc., there are
many benefits that come with sponsorship to the “sponsees” (event, individual,
etc) which provides an opportunity for all involved parties to reach their goals.
These benefits include but are not limited to
a. Availability of funds
b. Provision of needed equipment
c. Addition of credibility to event
IMPACT ON THE CONSUMER
The contact between the corporate sponsor and the consumer is the event
being sponsored and this forms the basis upon which the consumer is impacted.
The success of an event most times is determined by the amount of financing
obtained from the corporate sponsors and the organisation of the event. The
experience at an event is the first impact of corporate sponsorship at an event.
Also, the consumers have the opportunity to know more about the product or
company and gather enough information to aid its purchase intention.
11. 11
OPPORTUNITIES IN NIGERIA
With about half of its population within the active ages of 15 – 54 and an
unwaning passion for sports, Nigeria offers a very worthwhile atmosphere
for sports partnership. With a population estimated at 179m in 2014 and an
estimated annual growth rate of 2.47%, corporate organisations have access to
an enormous amount of potential customers. This connection can be made via
corporate sponsorship.
African population lives in Nigeria
Most populous country in Africa
16.1%
12. 12
The popular sports in Nigeria include football, basketball, boxing, table tennis,
lawn tennis, etc. Some of these sports have organised professional leagues
including football, basketball and rugby while some have tournament schedules
e.g lawn tennis and golf.
Top ten most populous countries in the world.
2050
3rd
most populous country by
14. 14
As expected, there is a downside to corporate sponsorship and this includes
possibility of a getting a negative brand image as a result of its sponsorship/
partnership. In 2013, Reebok was petitioned and pressured into dropping deal
with rapper Rick Ross over rape lyrics as it was believed that every single day that
Reebok continues rewarding Rick Ross with a lucrative endorsement deal, Reebok
is condoning rape.
There is a wide range of areas in which corporate sponsorship can come in.
Leagues, events, academies and individual can be sponsored. Every sponsorship
deal has to be evaluated separately as there is no standardisation. The company
will have to spend a great amount of time needed to plan and execute each deal.
Therefore it is very important to ensure that the corporate sponsorship aligns
with the company’s existing objectives and strategy as finding the right synergy
between corporate sponsorship and marketing objectives is the key to success.
It is also very important to leverage on corporate sponsorship in ensuring that
customers’ perception of a brand is positively influenced both at the event and
beyond.
THE FIRST
STEPS
15. 15
OUR APPROACH
At AbamsaQuaf, our objective is to help corporate organisations identify
and partner with the most ideal sporting activity that meets their brand and
marketing objectives. We leverage on our experience, expertise and relationships
to optimize corporate sponsorships in line with their medium and long-term
growth and financial strategy. We strive to represent and be associated with the
best brands at every level.
Our partnership/strength/focus areas include;
• With sport federations and agencies: We help in identifying the opportunities
for sports federations and agencies; and matching them with appropriate
corporate brands. Also in drafting long and short term media strategy
• With sport event organisers – We partner with organisers to in planning and
coordination to optimise brand awareness and media outreach
• With sport clubs/teams – We have working relationships with clubs in the
sports leagues in Nigeria on strategy and branding
• With individual athletes – We work with successful and promising athletes in
identifying sponsorship opportunities and managing their brands
16. 16
If you have plans on promoting your brand and engaging the audience; if you
want to learn more about how sponsorship can help achieve growth and the
available opportunities; or if you need fresh perspectives on effectively activating
partnerships; please contact
Adedamilola Adedotun
Head of Business Development and Relationship Management
Adedammy@abamsaquaf.com
+234 805 710 2300
