SlideShare a Scribd company logo
1 of 71
Download to read offline
University of South Wales
Identifying and examining whether sponsorship is the key component in
building brand awareness for energy drink companies
B. Roberts
2015
A project dissertation submitted in part fulfilment of the requirements for the award
of BA (Hons) Marketing at the University of South Wales
I declare that this dissertation is the result of my own independent investigation and
that all sources are duly acknowledged in the bibliography.
B. Roberts
May 2015
i
Abstract
Purpose - The purpose of this paper is to identify and examine whether sponsorship is the
key component in building brand awareness for energy drink companies. Sponsorship is
an important element of many companies marketing activities, of which energy drink
companies are also heavily associated with. However little research has been conducted
into the specific effects of sponsorship on the energy drink market itself. Therefore, this
paper is focussing specifically on an energy drink company and their potential customers,
in order to compare and contrast their thoughts on sponsorship including whether they
believe sponsorship is a key component in building awareness of energy drink companies.
Methodology - This paper used purely qualitative data from primary collection methods. An
individual interview and a focus group were conducted in order to fully gauge opinions and
feelings towards various brands within the energy drink market. By using primary
qualitative data, a deep understanding was able to be obtained as to what affects brand
awareness.
Findings - The evidence suggests that sponsorship very much has an impact upon the
brand awareness that potential customers have. However, this brand awareness doesn’t
necessarily lead to product purchase. Instead there are other factors that need considering
in order to move customers from awareness to purchase. That being said, sponsorship
was shown to have a strong impact upon brand recognition which ultimately gives energy
drink companies a platform from which they can convert awareness to purchase.
Originality - The exploratory paper was written to fill a previously unwritten aspect of
sponsorship and its effects in a specific product based market (energy drinks). This paper
has opened the door to further potential studies regarding sponsorships involvement in
ii
other product based markets, also whether sponsorship can be used by a wide range of
companies in order to boost brand awareness.
Keywords - Brand awareness, Energy drink companies, Sponsorship, Sports sponsorship
Paper type - Dissertation
iii
Acknowledgements
The author wishes to express thanks to all those who have assisted and advised
during this project, with particular mention of:
Mr. Amit Sra 1 SRA LTD t/a Jaguar Energy Drink UK
CEO
Miss. Bina Modi 1 SRA LTD t/a Jaguar Energy Drink UK
PA and Office Co-ordinator
Mr. M. Parsons, University of South Wales
Dissertation Supervisor
Dr P. Stephens University of South Wales
Head of Marketing
iv
Contents
Abstract i
Acknowledgement ii
Contents iii
List of Tables iv
List of Figures v
1. INTRODUCTION 1
2. LITERATURE REVIEW 3
3. METHODOLOGY 17
4. RESULTS AND FINDINGS 25
5. CONCLUSIONS 35
REFERENCES 38
APPENDICES 49
v
LIST OF TABLES AND FIGURES
List of Tables Page number
1. Reasons for entering into sponsorship 8
List of Figures
1. Persuasive Impact formula 16
vi
Introduction
Global energy drink sales reached €44 billion in 2014 (Fontinelle, 2015). This is a multi-
billion pound industry that’s continually growing. Bailey (2015) points out that the global
energy drink industry grew from $3.8 billion in 1999 to $27.5 billion in 2013. This is huge
growth in what is still a very young industry. However, even in such a growth industry little
research has been conducted into the specific marketing tactics used by energy drink
companies to build their market share and attract new customers. Instead there has been
vast amounts of research looking into the health and nutritional contents and the effects of
consuming energy drinks (Reissig et al, 2009; O’Brien et al, 2008; Attila and Çakir, 2011;
Thombs et al, 2011; Marczinski, 2011).
Sponsorships can involve vast amounts of money. In 2014, global sponsorship spending
amounted to $55.3 billion (Statista, 2015). See appendix 1 for 2007 to 2015 sponsorship
growth. It is therefore important for any business to know that there is a return on
investment (ROI) from that spending being either in the form of brand awareness, financial
returns or any other objectives the business in question has set.
Therefore, the purpose of this paper is to examine and identify whether or not sponsorship
plays a key role in building the brand awareness of these energy drink companies.
Sponsorship, in particular of sports, is used as part of many companies marketing
strategies (Brassington et al, 2000; Crimmins and Horn, 1996; Hartland et al, 2005), of
which energy drink companies are no exception. There is a lack of research into the effect
that sponsorship has on brand awareness therefore, it is impossible for companies to
establish whether or not it is valuable to invest their finite resources in. It is also important
!1
to discover whether the perspectives of the companies themselves match those of the
target market, in terms of how and where they recognize brands operating in the market,
and whether that awareness leads to increased sales. In general, there are vast amounts
of research relating to brand awareness covering the methods of increasing and
measuring it. However there is a lack of industry specific and method specific literature, of
which the energy drink market is no exception.
In order to obtain a full and balanced perspective, this study will look at the thoughts and
opinions of both the energy drink companies and the potential consumers. This studies
aim is to compare and contrast their perceptions, then analyse whether those thoughts
and feelings regarding sponsorship and it’s impact on brand awareness are aligned. If not,
it is important that the energy drink company understands the reasons behind the lack of
mis-communication. By conducting an in-depth interview and focus group, this study will
be able to fully gauge those opinions and understand the reasons behind them.
Therefore the aim of this paper is to prove or disprove that sponsorship has significant
effects on the brand awareness of energy drink companies, whilst also identifying whether
there are differences or similarities in the perceptions of the company and consumers on
sponsorship and brand awareness.
!2
Literature Review
Sponsorships are increasing both in number and in proportion of companies’ budgets
(Lamb et al, 2001). A number of reasons behind this trend have been identified. According
to Jobber and Fahy (2009), these reasons are: the escalating cost of media advertising,
restrictive government policies on advertising, the fragmentation of traditional mass media,
the proven record of sponsorship and greater media coverage of sponsored events. Whilst
these reasons are somewhat vague they do act as an anchor point upon which to build
further research. Alone, sponsorship is not sufficient to constitute a whole marketing
strategy, nor is it necessarily the most influential of marketing tools available (Meenaghan,
1991). However, it does appeal to organisations as a marketing communications medium
because it can easily be tied to other marketing activities designed to influence both
customers and strategic partners (Pickton and Broderick, 2005). What Pickton and
Broderick (2005) try to point out is that in order to take full advantage of the effects of
sponsorship, it should be used in conjunction with the rest of the marketing
communications mix.
Meenaghan (1983) writes in his research that with the varied usage of sponsorship it is
difficult to state with certainty where exactly sponsorship fits within the marketing
communications mix. This assertion implies that sponsorship covers, or at least has the
potential, to fit a number of aspects of the communications mix. More companies are
looking at using sponsorship for the very reason that it is able to cross over many areas of
the marketing mix seamlessly whilst not being too costly. In addition to sponsorship having
the ability to cover various aspects of the communications mix, there are also other
reasons for it’s growth:
!3
• Sponsorship has increasingly been viewed as a way in which to generate audience
awareness while at the same time creating an association between the values the
sponsored event exemplifies and the sponsoring company (Meenaghan, 1996).
• Concern over traditional promotional methods - as the number of commercial television
and radio stations has risen, traditional advertising has produced a proliferation of
messages within the medium. Sponsorship is seen as an alternative and often cheaper
form of gaining exposure that avoids clutter and allows a sufficiently distinctive message
to be seen and/or heard (Howard and Crompton, 1995).
• Overcomes linguistic/cultural barriers - sponsorship also has the ability to transcend
cultural and linguistic barriers. It is no coincidence that sport, the arts and music which
have the ability to naturally cross these barriers, are the areas which receive the most
amount of sponsorship funding.
• Large target appeal - appeals to everyone from top down. Large audiences and
viewership.
• Overcomes legal barriers (Amis et al, 1999)
• Selective Targeting - Sleight (1989) pointed out, sponsorship works because it fulfils the
most important criterion of a communications medium - it allows a particular audience to
be targeted with a particular message.
(Pickton and Broderick, 2005).
There are a number of categories of sponsorship available to companies, including sports
sponsorship, endorsements, charitable donations, event sponsorship, broadcast
sponsorship, product placement and venue sponsorship. Sports sponsorship is by far the
biggest of the sponsorship categories, which accounts for 70% of spending (Lamb et al,
2001). This can range from the sponsorship of teams (Red Bull Salzburg), leagues
!4
(Barclays Premier League), competitions (Johnstone Paint Trophy) and even sponsorship
of stadiums (Etihad Stadium). According to Jobber et al (2009), sports sponsorship is the
most popular medium as it offers high visibility through extensive TV coverage, the ability
to attract a broad cross-section of the community, to service specific niches, and the
capacity to break down cultural barriers. Brassington et al (2000) agree with this
statement, but goes one step further by saying that the mass audiences possible through
television, even for some minority sports, enable the widespread showing of the sponsor’s
name. With the increase in dedicated sports channels on television and through the
internet, there has been an increase in the airtime given to less common or less popular
sports. Looking at the sponsorship of a sports team or event, it has been proved that there
is a positive relationship established between that of the sponsor and the fans of the team
or event that has been sponsored. According to Donlan (2014), sponsored sports events
positively impacts sponsor brand loyalty when customers are aware of the sponsorship
and have some degree of involvement with the sponsored event. Wang et al (2012) looked
at this and proposed that because of their perceived connection with a team, fans with fan
identification will recognise themselves as in-group members, and will show in-group
favouritism to other group members. Although this may be true, it doesn't look at how fans
of other teams may look at a brand sponsoring a rival team/event. Although a company
image may be built favourably with one group it may be excluding the large majority of
fans that support other teams.
Endorsements, because they involve individuals, are in some ways riskier than sponsoring
a team or event Pickton and Broderick (2005). However, Pickton and Broderick (2005) do
also go on to say that a successful endorsement deal can be used in an attempt to portray
an image as an exciting, innovative company that sets it apart from it’s competitors. A
!5
recent interview with Vipe Desai, Monster’s director of action sports, events and
partnerships marketing, highlighted the importance of image in terms of sponsorship:
.
IEG SR: Just about every energy drink brand is involved in sponsorship. How does
Monster stand out . . . . . .?
Desai: . . . . can look complicated, with Monster, Rock Star, Red Bull and others in the
mix. We are involved in action sports and motorsports similar to other energy brands.
But for us, it comes down to the personalities. It’s all about aligning with the right athletes
and events. . . . . . .
. . . .. . . .. We want athletes that represent that Monster DNA . . . . . .”
(http://www.sponsorship.com/iegsr/2010/03/01/How-Monster-Energy-Uses-Sponsorship-
To-Claw-Past-C.aspx, 2010)
The above transcript shows how endorsements are used in conjunction with Monster
Energy’s normal sports sponsorship. Endorsements, although risky, do have the potential
to add personality and character to the brand; they give the brand a physical form that, as
a member of a particular fan group, you can associate with.
Event sponsorship can take the form of sports events, arts events or music events such as
venues and festivals. In particular, Relentless Energy Drink focus on music sponsorship,
part of that looks at Relentless aligning themselves with some of the biggest music
festivals in the UK, such as Reading Festival (http://www.readingfestival.com/news/
relentless-back-reading-village) and joint sport and music festivals such as Boardmasters
(http://boardmasters.co.uk). There are numerous music festivals in the UK alone every
year which gives a wealth of opportunities for companies to associate with through
!6
sponsorship. Rowley et al (2008) looked at music festival sponsorship and came up with
the assertion that:
“Sponsorship of music festivals provides opportunities for targeted
communication to the relatively homogenous festival audience
comprised primarily of young people (Oakes, 2003). There has,
however, been little research focussed on the impact of sponsorship
of music festivals on brand awareness and engagement.”
Meenaghan (1983, p.31-32) states: ‘In choosing a particular sponsorship the multi-
dimensional aspects of the sponsorship personality must be considered.’ What he means
by this is that when companies are choosing an event, team or sport to sponsor they must
consider the personality of their company in conjunction with the sponsorship. For
example, if an energy drink company wants to be associated with giving you energy, it
should look at sponsoring energetic sports and events.
Each of the big three areas of sponsorship have their own merits and drawbacks, but all of
them open up a wealth of opportunities for the sponsoring company. However, in order to
ensure that sponsorship is used as effectively as possible, the sponsoring company will
need to have clearly defined objectives for sponsorship and a method of which to monitor
its effectiveness. Without either of these a company will never know whether the money
invested into the sponsorship was worthwhile or not.
Before any company invests money into sponsorship, the objectives and reasons behind
the investment must be carried out. According to Crowley (1991), arts sponsorship was
more favoured for achieving objectives relating to community relations and reaching
!7
opinion leaders, while sports was the preferred medium of communication with the buying
public. However, McDonald (1991) states; there is no doubting still some companies which
go into sponsorship with no more than a vague feeling that they ought to do something
charitable, or because there are opportunities for corporate entertaining, or because the
cause is dear to the chairman, and which look no further for proof of effectiveness than a
high profile recognition in the media.
In the main, companies need objectives in order to maximise return on investment. These
objectives can vary widely depending on the company, the industry and the companies
management. Enhancing a companies brand image and reputation, are cited as the most
important reasons for a firm to enter into a sponsorship agreement (Meenaghan, 1991;
Mintel, 1994; Witcher et al., 1991). This however, does not mean that brand image is the
only objective companies focus on. In 1983 Meeaghan produced a concise table from his
research which outlined the main reasons for companies to carry out sponsorship:
(Meenaghan, 1983)
!8
This table breaks down into clear percentages the reasons companies gave for entering
into sponsorship. The main reasons according to Meenaghan (1983) are in response to
requests and to build corporate image. The latter of the two is something that other
authors go on to agree with, however ‘in response to organisations’ assumes that the
businesses in question weren’t seeking sponsorship in the first place, which may not have
been true. It does however possibly back up McDonalds (1991) argument that companies
may enter sponsorship without clear reasoning. From Meenaghan’s (1983) research into
the reasons for sponsorship, other authors have come up with other ideas.
Abratt et al. (1987) produced a list of such objectives for sport sponsorship and suggested
that potential television coverage, promoting corporate image and the opportunity for
media coverage were the most important reasons given by the 45 corporations who
responded to their study. In a similar piece of work, Witcher et al. (1991) surveyed 140
large commercial organisations and found the main objectives cited were the promotion of
corporate image, television, radio and press exposure, and the promotion of brand
awareness.
Other authors have also provided what they believe to be the objectives of sponsorship.
Rowley et al (2008) and Pelsmacker et al (2005) believe that the main reasons for
companies to use sponsorship in their marketing strategy are identified as to: increase
brand awareness, create brand image, re-position the brand/product in the minds of
consumers, increase profit over a short period, and achieve a larger market share. Donlan
et al (2014) believes that the objectives aren’t too dissimilar to those Rowley presented,
and states: the objectives pursued through sponsorship differ between sponsors of
different product categories and individual sponsors. Nevertheless, it is a widely held belief
that commonly sought objectives include awareness (Verity, 2002); image/positioning
!9
benefits (Hartland et al., 2005); corporate hospitality opportunities (Quester, 1997); and, to
a lesser extent, sales (Tomasini et al., 2004).
All the authors’ research points to building brand image and awareness as a key
component in the reasons behind the growth of sponsorship and the reason that the
majority of companies are choosing to invest in sponsorship opportunities. Brassington et
al (2000) state: While some sponsorship does have altruistic motives behind it, it’s main
purpose is to generate positive attitudes through associating the corporate name with
sports, the arts, charitable enterprise or some other activity. He also goes on to say that
sponsorship does seek a return, however indirect it may be, although it is mainly about
image building rather than selling a product as such. Garnder and Schuman (1987) write
that companies can effectively reach specific target groups with well-defined messages;
they are powerful tools for establishing meaningful communications links with distributors
and potential consumers. The above extracts agree with the other authors examined, who
believe that sponsorship is more about communication that the selling of goods and
services.
For energy drink companies, sponsorship has been used as an opportunity for consumer
trials and giveaways in order to encourage potential consumers to taste and enjoy the
product. Howard and Crompton (1995) suggested attempting to move a customer from the
interest stage of the product adoption process to the desire stage, the stage which
involves a serious evaluation about whether or not to purchase a product. For companies
wishing to enter into a crowded market, sponsorships can give great opportunities for the
company to showcase its product and drive potential customers into actual customers.
Jobber et al (2009) states in his work: Both the sponsor and the sponsored activity
become involved in a relationship with a transfer of values from activity to sponsor. The
!10
audience, finding the sponsor’s name, logo and other symbols threaded through the event,
learns to associate sponsor and activity with one another.
This may be why building brand imagery and awareness is such an important objective for
many companies. As mentioned earlier, it is also crucial that companies carefully consider
sponsorship options, as they will be associated with that particular brand, event or person
for good and bad.
Well-directed sponsorship can do much to enhance the perception of a company and,
possibly, it’s products. Conversely, ill-designed and badly thought-out sponsorship may
have at best no effect at all or, at worst, backfire (McDonald, 1991).
There are many advantages and disadvantages to the use of sponsorship over any other
medium of marketing communications:
One of the first key advantages of sponsorship is that it creates and builds a relationship,
with Jobber et al (2009) saying that both the sponsor and the sponsored activity become
involved in a relationship with a transfer of values from activity to sponsor. The audience,
finding the sponsors name, logo and other symbols threaded through the event, learns to
associate sponsor and activity with one another. These associations have the potential to
turn the favourability of a brand and boost it’s profile with a select audience. However, it
must be noted that the opposite can also occur. If any negative associations are like with
the sponsored team, event or activity then the negativity will also affect the sponsor itself.
Because sponsorship can be unpredictable it is impossible to ascertain whether a negative
or positive change will occur and when (Jobber et al, 2009)
!11
Fahy (2004) states that another potential advantage is that sponsorship has the potential
to transcend cultural boundaries and is thus potentially the tool of choice for global
marketers (Cunningham et al. , 1993; Miyazaki and Morgan, 2001). If we look at football
for example, there are 209 associated countries within Fifa (http://resources.fifa.com/mm/
document/fifafacts/organisation/52/00/10/fs-120_01a_mas.pdf). You can see from the wide
range of countries that are members of FIFA, that football has the potential to reach a
diverse global audience. By using sponsorship, companies are able to have their brand
displayed in various countries or various beliefs and cultures. However in recent times
FIFA has been rocked by scandal, this has negative connotations for companies
sponsoring the organisation and the events it holds.
An advantage of sports sponsorship, in particular according to Brassington et al (2000), is
that it has the added benefit that although people may ignore commercial breaks, they do
pay attention when a ‘real’ programme is on, and therefore may be more likely to absorb
the sponsor’s name. For companies seeking to build their brand and awareness they want
their brand seen as often as possible for as little cost. On the other hand as a sponsor’s
brand isn’t the core focus of the audience’s attention, it may not get noticed unlike with
standard advertising.
As the popularity of sponsorship has increased, so too has clutter (Cornwell et al, 2005).
Formula 1 is probably one of the most noticeable examples of this with Monster Energy
and Red Bull both involved. Formula 1 teams have sponsor logos all over the cars and
drivers and it is becoming ever harder to distinguish who all the sponsors are. As this
paper earlier established; one of the main reasons for companies to get involved in
sponsorship is that it gives the company an identity and affinity with a particular sport or
!12
event. The presence of other sponsors influence communication processing; it can
influence image, and potentially, image transfer (Ruth and Simonin, 2003).
The biggest appeal for sponsorships are their ability to selectively target a set group of
people, with either a shared ideal or shared set of beliefs/following. Sleight (1989) pointed
out, sponsorship works because it fulfils the most important criterion of a communications
medium. It is essential for any company to reach potential new customers or to reinforce
their brand with current customers. Rowley et al (2008) believed that concerts are effective
for targeting a young audience. Relentless Energy, are big sponsors of music festivals
(http://www.relentlessenergy.com/?contentType=soundchain ) and have even created their
own festival in order to be able to directly target new and current customers.
It was mentioned earlier in this paper that brand awareness was a major objective of
sponsorship for companies. Brand awareness is defined as a rudimentary level of brand
knowledge involving at the least, recognition of the brand name (Hoyer and Brown, 1990).
Many authors write about the benefits to companies of increased brand awareness: The
two most important intangible resources are company/brand image and reputation
(Conner, 1991; Grant, 1991; Hall, 1992). Rowley et al (2008) in their research agreed with
this but focused slightly more on pure branding by saying that brand awareness, brand re-
positioning and brand image were the 3 main reasons for sponsorship.
It has long been held that one of the major goals of marketing is to generate and maintain
brand awareness (MacDonld and Sharp, 2000). According to Naik et al (2008), it’s well
known that companies especially big ones spend millions on advertising and other
marketing techniques in order to boost brand awareness for the business and/or it’s
products. Sponsorship is often used as a key influencer on brand awareness and
!13
according to Donlan (2014) there is a very clear agreement and focus about using
sponsorship for brand building purposes.
A positive relationship between sponsorship exposure and brand awareness has been
found (Quester, 1997; Bennett, 1999; Rines, 2002), suggesting that sponsorship is a
legitimate tool for brands wanting to gain exposure in order to build awareness (Donlan,
2014).
After establishing that sponsorship and brand awareness are linked and that sponsorship
is used in building awareness, it’s important to understand why brand awareness is a goal
for businesses, and what it is used for. MacDonald and Sharp (2003) looked at the
reasons behind brand awareness in their research and say Rossiter and Percy (1987)
describe brand awareness as being essential for the communications process to occur as
it precedes all other steps in the process. Without brand awareness occurring, no other
communication effects can occur. For a consumer to buy a brand they must first be made
aware of it. Brand attitude cannot be formed, and intention to buy cannot occur unless
brand awareness has occurred (Rossiter & Percy 1987; Rossiter et al. 1991).
As the energy drink market is an emerging market, it is possible that some people will
have no previous knowledge of many energy drink brands. Subjects with no brand
awareness tended to sample more brands and selected the high-quality brand on the final
choice significantly more often than those with brand awareness (Hoyer & Brown, 1990).
This would mean high end energy drinks i.e. Red Bull are the most likely to be sampled by
subjects with this limited knowledge, however previous research has consistently shown
that consumers in blind taste tests are unable to detect their own preferred brand (Hoyer
and Brown, 1990). Blind taste tests are not something that are carried out regularly, so
!14
new customers will make their purchase choices upon brand awareness and prior
knowledge. This is why brand awareness is such an important intangible asset to
businesses.
Brand awareness serves as a dominant choice tactic among inexperienced consumers
presented with a brand-selection task (Hoyer and Brown, 1990). If a customer is unaware
of a brand, then there is a high probability they won’t purchase their product. Hoyer and
Brown (1990) point out the awareness of a brand is the dominant reason for purchasing a
product among inexperienced customers. However it must be noted that awareness is only
the first step towards purchase, as Hoyer and Brown (1990, p.141) also go on to say:
Awareness represents the lowest end of a continuum of brand
knowledge that ranges from simple recognition of the brand name to
a highly developed cognitive structure based on detailed information.
Recognition is taken here to be the process of perceiving a brand as
previously encountered (Mandler 1980). Thus, the distinction
between awareness and recognition is a subtle one, the former
denoting a state of knowledge possessed by the consumer and the
latter a cognitive process resulting from awareness.
By using sponsorship as a tactic in order to boost brand awareness, businesses are far
more likely to initiate brand recognition and therefore increase the likelihood of increasing
subsequent sales. Sponsorship has the additional benefit in that it creates a stimulus and
therefore creates a memory which will serve as a reminder for potential future purchases.
For example, seeing Manchester City FC win the Premier League at the Etihad Stadium,
!15
will resonate with people as they will remember seeing the match there, therefore recall
the Etihad stadium.
Brand recognition occurs in stimulus-based situations, and recall occurs in memory-based
situations. Both types of awareness would occur in mixed-choice situations (Macdonald
and Sharp, 1996). Awareness and recognition are important, but Roy and Cornwell (2004)
go one step further by saying although awareness is a valid objective for sponsors, it is
pointless unless image transfer takes place. The length of time that sponsorship occurs is
a key driver in ensuring brand recall, due to the increased chance of memory creation.
There has been research carried out that shows the impact that length of sponsorship has
upon the building brand awareness, and the residual brand awareness that is left after a
sponsorship agreement has ended. Crimmins & Horn (1996) came up with a diagram to
show the impact that length of time had on the persuasive impact that sponsorship had on
potential customers.
Source: Crimmins and Horn (1996, p. 13)
What the diagram shows is that the level of persuasive impact aka. brand awareness, is
determined by a number of factors, mostly how long the sponsorship has been associated
with the team/activity/event, and how strongly the sponsor is associated with the event/
activity/team (whether it’s a main sponsor or sub-sponsor). Donlan (2014) writes in his
!16
work that the longer the relationship between a sponsor and a sponsored property, the
stronger will be both consumer affect and opinion towards the sponsoring brand.
!17
Methodology
Identifying and examining whether sponsorship is the key component in
building brand awareness for energy drink companies
In order to establish whether sponsorship is the key component in building brand
awareness for energy drink companies, it’s important to find the right methods of research.
The research approach will aim to discover a number of facts and opinions regarding
individual and company perspectives on the energy drink market. The research will also
seek to find out firstly whether sponsorship is a component of building brand awareness,
then further decide to what extent it is the key factor in building that awareness. Secondly
this paper shall look at what people define as brand awareness, and how they perceive
the actions of companies attempting to increase their brands’ profile. The final part of the
research will look at whether the perceptions and opinions of the market are matched by
those within the market itself. This is because if the perceptions and opinions of the
company and consumer are conflicting, this may lead to wasted time and resources.
Resources that could be used to better effect in activities the are beneficial to the
company.
Research Approach
Researchers such as Mason (2006), state that mixing qualitative and quantitative methods
has come to be seen in some quarters as intrinsically a ‘good thing’ to do. However, the
research methods used in this paper will need to be able to collect a variety of data based
!18
on two core areas: sponsorship and brand awareness. It is now widely accepted in
literature that brands are built through a combination of rational and emotional elements
and that emotions evoked by brands may enhance buying and consumption processes
(Hirshman and Holbrook,1982; Zambardino and Goodfellow, 2007). Quantitative methods
being statistical based do not allow people to express emotional responses, or allow
participants to reveal the basis surrounding their emotional responses. It is for this reason
that this paper will focus purely on qualitative research instead.
Any distinction between qualitative and quantitative approaches is at best approximate, for
both types of research are umbrella categories that cover many different actual methods
(Gummesson, 2005; Long et al., 2000; Wilson and Natale, 2001). The biggest difference
between the two methods is that qualitative tends to be less representative of the general
or targeted population than quantitative research. Demgard et al (2001) states that
qualitative studies cannot be as representative as quantitative studies. However it must be
noted that there are areas in which qualitative research can be enhanced to increase its
representativeness. Diversity is represented through a wide range of qualitative data
collecting techniques, for example, observations, in-depth interviews, and group interviews
(Demgard et al, 2001). The real difference between the two methods is that in qualitative
unlike quantitative research, much reliance has to be placed on the researcher's
interpretation of the data collected, rather than on the suitability or robustness of a
particular technique of statistical analysis. (Christy and Wood, 1999).
Despite the benefits of quantitative research, in recent years a growth in the use of
qualitative methods in business to business research has been observed (Damgaard et al,
2001; Attride-Stirling, 2001). Qualitative researchers typically study a relatively small
number of individuals or situations and preserve the individuality of each of these in their
!19
analyses, rather than collecting data from large samples and aggregating the data across
individuals or situations (Maxwell, 1996). This means that the data provided from the
research is a lot more detailed. Maxwell (1996) goes on to further say the qualitative
researchers, tend to ask how ‘x’ plays a role in causing ‘y’, and what the process is that
connects ‘x’ and ‘y’. This is what makes qualitative better than quantitative researching, in
finding out the reasons for a phenomenon over than just discovering if a phenomenon
exists. Maykut & Morehouse (2004) agree with Maxwell (1996) by writing in their work that
the qualitative researcher attempts to gain an understanding of a person or situation that is
meaningful for those involved in the inquiry.
Sampling
With regards to sample size, for a market in which there are large numbers of interesting
possibilities, small sample sizes carry the risk of excluding some of them altogether
(Christy and Wood, 1999). Quantitative research is perfect for this as it is simplistic,
therefore easier to obtain a larger number of respondents. However for this paper, it is
essential to gain a deeper understanding of the reasons and the processes behind brand
awareness. Maxwell (1996) states that qualitative and quantitative methods are not simply
different ways of doing the same thing. Instead, they have different strengths and logics
and are often best used to address different questions and purposes. Qualitative
marketing research usually involves intensive research with small samples; the focus is
typically on the depth of understanding achieved within the confines of the sample (Christy
and Wood, 1999; Seale, 1999; Flick, 2009; Whittemore et al, 2001). This is accordingly an
excellent approach for obtaining a better insight into reasons behind choice. Mason
!20
(2002), however, states it is a much more complex and exhausting task to plan and carry
out a qualitative interview than, for example, to develop and use a structured questionnaire
for asking a set of predetermined questions. According to Grimmer (2007) the aim of
qualitative research is to produce insight rather than measure, to explore rather than pin-
down. It is a tool to be used to identify potential thought processes and ideas, not produce
statistical evidence. Mason (2006) expands upon this by stating researchers should use
‘qualitative thinking’ more as a starting point than a definitive framework, and as a way of
transcending boundaries rather than reinforcing them. The strengths of qualitative
research derive primarily from its inductive approach, its focus on specific situations or
people, and its emphasis on words rather than numbers (Maxwell, 1996). Thomas (2006)
states that the purposes for using an inductive approach are to (a) condense raw textual
data into a brief, summary format; (b) establish clear links between the evaluation or
research objectives and the summary findings derived from the raw data; and (c) develop
a framework of the underlying structure of experiences or processes that are evident in the
raw data. The general inductive approach provides an easily used and systematic set of
procedures for analysing qualitative data that can produce reliable and valid findings.
Although the general inductive approach is not as strong as some other analytic strategies
for theory or model development (Thomas, 2006), it does provide a simple, straightforward
approach for deriving findings in the context of focused evaluation questions. Many
evaluators are likely to find using a general inductive approach less complicated than
using other approaches to qualitative data analysis.
For this paper, one focus group interview and a one on one interview were conducted. The
single interview will be held with the CEO of an energy drink company (Jaguar Energy
Drink, http://www.jaguarenergydrinkuk.com). This will allow for a company’s perspective on
the product, market and methods of building brand awareness.
!21
The focus group session will provide in-depth data regarding respondent views on the
energy drink industry, the individual brands and how they believe energy drinks are
promoted. In order to obtain a general view of the population we will look at involving 6
participants per group, who will answer a range of qualitative questions. The participants
will be selected using a mix of convenience sampling (Patton, 1990) and homogenous
sampling (Patton, 1990). The reason for this is to actively seek people who have an
interest in the energy drink market, to get a consumers perspective. The reason behind
convenience sampling is down to the cost of the study. It is cheap and simple to carry out
this method of sampling, but also won’t negatively affect the validity of the study.
Data collection procedure
The data will be collected using two different methods, both of which will be based purely
to receive qualitative data. For this paper, one in-depth interview will be carried out with the
CEO of an Energy Drink company. The second method of data collection will involve one
focus group, involving 6 people.
For the interview, a recording and transcript will be written, this will allow for detailed
questions to be asked and answered. It will also give a deep insight into the thought
processes behind company actions; however there will be a lack of statistical data
received. This is because the interview will be based around knowledge building, and
qualitative questioning. Therefore all information received will be collected in the form of a
transcript, from which detailed answers can be extrapolated.
!22
In general the usefulness and validity of focus groups data are affected by the extent to
which participants feel comfortable about openly communicating their ideas, views or
opinions (Stewart and Shamdasani, 2015). For this reason the focus group meetings will
be held in a neutral environment where the participants can feel free to express their
views. A bar will be used for this purpose, as it is where the participants may feel at ease,
as it is linked to leisure time in a relaxed environment. Focus groups are inherently social
phenomena, and it is important to understand the complex and dynamic social context in
which group interviewing takes place (Hollander, 2004; Tubbs, 2011). Each focus group
will last approximately 1.5 hours until a saturation point is reached, when newly acquired
data is redundant with previously collected data (Glaser and Strauss, 1967; Guba, 1978).
Data analysis
The data received from the focus group and individual interview will be in the form of
words, not numerical data, which will make the data much harder to analyse. However that
being said, it will still be relatively noticeable if there are any trends or common themes.
The results of both the focus groups and of the interview will be in the format of a
transcript, which will be extrapolated from recording the entirety of the sessions. The
content will be analysed with the aim of discovering patterns and trends in the responses
of the participants in the focus group, then compare those results with the transcript from
the one-on-one interview. According to Elo et al. (2014) qualitative content analysis can
be used in either an inductive or a deductive way. Both inductive and deductive content
analysis processes involve three main phases: preparation, organisation, and reporting of
results. For this paper an inductive analysis approach will be utilised. In the inductive
approach, the organisation phase includes open coding, creating categories and
!23
abstraction (Elo & Kyngäs, 2008). By categorising the responses, in-depth insights
regarding the thoughts and feelings of the consumer with those of the company will be
collated. If they are not aligned the results of the interviews should reveal why, and identify
possible methods of synchronising the actions of the company with the actions of the
consumer.
Limitations of Methodology
As with any methods of research there are a number of potential limiting factors, which
have to be monitored and controlled in order for them not to negatively affect this paper’s
results. The first potential limitation is sample size. Christy and Wood (1999) say that small
sample sizes carry the risk of excluding some of the various possibilities. However, that
being said, the ideal standard for qualitative sample size is to interview to redundancy
(Bernard, 2011).
Another potential limitation of the research methods will be that with the individual
interview, although it will be in-depth, it has the potential to become biased. This is
because it is the view of only one CEO of a single energy drink company; however it is a
method that has the potential of enhancing the quality and quantity of research data (Darbi
and Hall, 2014). It is for this reason that the one-on-one interview is to be used for initial
research and information finding and not quantitative/statistical results.
Focus group discussion guides often tend to include too many questions, which often
make the experience more like a within-group survey than interactive discussion (Stewart
and Shamdasani, 2015). Maxwell (1996) also said it is possible for your questions to be
!24
too focused; they may create tunnel vision, leaving out things that are important for the
purposes or context of the study. In order to counteract this open questions will be used to
cover key points, with very few set questions, in order to prevent any leading questions,
but still allow the ability to steer conversation in order to maximise results.
!25
Findings and Discussion
Following both the one-on-one interview and the focus group, a wide range of qualitative
data was obtained. Both research methods provided ample qualitative data, that can be
analysed to draw out key themes and concepts that are compared and contrasted with
prior research. The collection and analysis of primary data also provides an opportunity to
assess whether the views and opinions of the business align with those of the target
market and potential customers.
The basis of this paper is to discover the extent to which sponsorship is the key
component in building brand awareness for energy drink companies. Therefore both the
individual interview and focus group were both geared and aimed towards meeting that
end. However, due to the nature of these types of research and the subject being studied
there are no set answers. All answers regarding brand awareness is accordingly based on
personal thoughts and opinions which inherently possess a potential for bias (Darbi and
Hall, 2014). However, although there was the potential of bias, the research project
nevertheless provided an in-depth insight into the individuals’ perceptions of the energy
drink market compared to the perceptions that the companies operating within the market
possess.
The first key theme to draw out from the research are the reasons behind the purchase of
energy drinks. Firstly looking at the individual interview with Mr Amit Sra from Jaguar
Energy Drink UK, the question was asked about the reasons he thinks that people buy
energy drinks;
!26
“BR - Why do you believe that people buy energy drinks?
AS - People lead hectic lifestyles and it’s only getting busier. Through research it was
noted that people aged 18-39 require energy pick me up, faster than coffee – this is due to
hectic lifestyles. No waiting around for it to be made or to cool down - just pick up a can
and drink. People need this quick energy.
During the focus group, a very similar question was asked, but the responses differed;
“BR - Why do/would you buy a can or cans of energy drink? If you wouldn’t . .why not?
EW - . . . the taste. . . . .
GC - I used to buy, not just for the function of energy, but for taste, but now care what I'm
putting into my body, and look into the contents and read what exactly they put into the
product.
JB - Used to in university for essay deadlines. I thought it would help concentrate,
especially if needed an all nighter.
MP - I used to drink them for the caffeine prior to exercise, or sports in general to give me
energy for the game. Stopped due to sugar content. Still have with alcohol on nights out.
JB - I don’t have them with alcohol anymore because of the side effects . . . . . press about
how mixing can have negative side effects on your heart.
EW - I don’t drink them with alcohol as I can’t really sleep after. . . .
GC - I used to have them before gym, but they just gave me heart burn.
CS - I never used to, but recently started. The one which I go for is…based purely on
taste. It’s also quite good on long drives late at night.”
!27
This simple question drew out a number of important insights; the first of which being that
it’s primarily due to hectic lifestyles and people needing a pick-me-up generally day-to-day,
but also for quick energy. The response from the focus group however, pointed out more of
a link to sports and alcohol. That being said, a number of respondents didn’t buy energy
drinks due to health concerns.
Following the responses, it’s important to then look at who the energy drinks are aiming to
target, and whether or not the customers agree with that, and whether they see
themselves as being targeted by an individual company or by the industry as a collective.
Depending on which target market the energy drinks are aimed at, the methods in which a
company will try to build brand awareness will have to change. In this research we
uncovered that multi-dimensional aspects of the sponsorship personality must be
considered (Meenaghan, 1983). Therefore a number of questions were asked to establish
who the target market was, and what methods of brand awareness were being used to
achieve those goals:
“BR - What are your brand awareness goals?
AS - We want to further penetrate our targeted 18-39 age group. We also want to make
sure that they aren’t just the perceived market and they are actually the ones buying the
products. We want to be recognised and utilised by both men and women – don’t want to
be seen as a single sex brand…expand our UK growth, then look at expanding abroad.
BR - What methods of increasing brand awareness do you use?
!28
AS - …concentrate on Premier League Football – especially in the long term . . . . powerful
social media presence and impact…have an exclusive premier league deal with
Manchester City Football Club. . . . . . . .
BR - Why do you use those methods?
AS - …high viewership!...as many people as possible to see and associate with the brand
as Football is the most watched sport in the world…”

From the above responses it is clear that as a company Jaguar know who they want to
target, and the methods they are using to achieve that. This is in line with the research
carried out previously. Jobber et al (2009) wrote how sports sponsorship is used because
of its extensive TV coverage and its attractiveness to a large cross-section of people.
Picton and Broderick’s (2005) work also links to this when they wrote about sports
sponsorships are increasingly being used to generate audience awareness. Similar
questions were then asked to the focus group in order to gauge their thoughts on the
same issues.
“BR - How do you think energy drink companies mostly promote their brands?
MP - Sports…extreme sports and adrenaline sports.
GC - I haven’t seen any traditional style adverts…instead link themselves in with sports
and people.
CS - Sponsoring things…Try to use word of mouth. They try and seem cool and quite
young.
MP - Relentless is more nightclub scene…They seem really into the music side of energy.
!29
JB - Use slogans. I.e. Gives you wings. Unleash the beast. Memorable, they stick in your
mind.
EW - Most of them seem to be linked with the music and adrenaline sports markets
BR - What age group do you think energy drinks are aimed at?
EW - Late teens to 30ish
CS - 18-30 year olds.
JB - Yeah,18-30 year olds
MP - …16 - 28
GC - I would say younger more like 13.
CS - I say 18-30 because they are the most active and they are the most influenced by the
marketing tactics they employ.
BR - Are you talking about social media?
CS - Not really, just generally being cool and young. Associations with Jägermeister, which
is also a young brand.”
From the focus group responses, it is a fair assessment that overall the perceived target
market is pretty in line with Jaguar Energy’s target market, which is a big positive for the
company. However it seems from the focus group that at present energy drink companies
are seemingly focused on music and adrenaline sports more than the main stream sports
that Jaguar seeks to be aligned with.

Another key theme to be taken from the interview and focus group is that of the brands
recognised, the differences between the brands and the extent to which sponsorship plays
!30
a part in building said brand awareness, and whether brands are recognised directly from
their affiliation with a particular sport, event or other activity. This corresponds with Wang
et al’s (2012) work because of energy drinks perceived connection with a team or activity,
fans with fan identification will recognise themselves as in-group members. If an individual
follows a sport which an energy drink company sponsors, then they are more likely to
identify that particular brand as it fits within their interests and lifestyle.
“BR - How many energy drink brands can you name?
GC - Red Bull, Relentless, Monster, Rockstar, Pussy.
MP - Sainbury’s own is Bolt. Lucozade.
EW - Emerge I think is Tesco’s own
CS - Energise is Morrsion’s own.
JB - Shark in Glam nightclub.
JB - Kick in Oceana, tastes like feet.
BR - Do you know of any sponsorship deals that these energy drink companies
undertake? If so please say.
CS - Red Bull air race.
MP - …Monster sponsor someone in MotoGP (Valentino Rossi).
JB - …Black Energy, had a link with Mike Tyson.
EW - …know they do general adrenaline sports.
JB - Monster sponsor things like drifters and motor sports.
JB/MP - maybe some Xbox stuff…
!31
MP - Small brands don’t bother sponsoring. Supermarket brands rely on the branding of
the bigger brands like RB to feed on. You’ll notice the brands and cans are pretty similar
therefore don’t both sponsoring.
BR - Why do you think Energy Drink companies use sponsorship? In particular the big
brands.
CS - Piggy back off other peoples and teams successes. .. . . .
MP - . . . . tapping into fans of the person/team that’s sponsored.
JB - …associations with extreme activities over their competitors.
MP - As James said to keep up with their competitors...
JB - Felix Bawngoartner got on the news and Red Bull was mentioned everywhere. It
really helps to make their brand talked about and distinctive.”

This section of the focus group highlighted the perceived affinity that the energy drink
market has with the adrenaline sports market and sports in general. This is in-line with
previous research by Jobber et al (2009) who wrote that both sponsor and sponsored
activity become involved in a relationship with a transfer of values from activity to sponsor.
It also highlights how the members of the focus group know the area’s of the market the
energy drinks target, however as they are not active within that market they are unclear as
to the specifics regarding the sponsorships. In the literature it was noted that certain
brands seek to align themselves with certain activities or sports. It was mentioned that
Relentless align themselves with music (http://www.relentlessenergy.com/?
contentType=soundchain), this was something recognised in the focus group. However
along with some of these positives regarding brand awareness, some of these sponsored
!32
activities can reflect badly on energy drink companies, this was highlighted in the focus
group:
“JB - I think brands like Red Bull are promoting dangerous behaviour. There are YouTube
video’s of people trying to copy Felix Bawngoartner’s stunts, some of them end up in the
person getting hurt.”
This comment coincides with Pickton and Broderick’s (2005) research which examined the
risky nature of endorsements. Some of these risks backfire on the company and paint it in
a bad light, increasing brand awareness with a negative impression, not a positive as the
company would want. A prominent example of this was in 2012, when it was discovered
Lance Armstrong had been using anabolic steroids. Following this a number of high profile
sponsorships came to an end including a deal with Nike (http://www.theguardian.com/
sport/2012/oct/17/nike-lance-armstrong-misled-decade).
Another key theme to draw out from the research is that both in focus group and the
interview, taste was a recurring theme.
EW - Because of the taste…
CS - Based on taste and price…
MP - I would probably buy Lucozade, purely because of taste…. “
MP - Quality wise they are exactly the same. Taste wise Lucozade Energy is the
best . . . . .
All of the above look at taste as an overriding determinant of a purchasing decision. This
appeared to be in line with the opinion of Jaguar Energy too, who value taste highly on
their set of personal attributes. However, in the literature Hoyer and Brown (1990) pointed
out the awareness of a brand is the dominant reason for purchasing a product among
inexperienced customers.
!33
BR - How do you think the average consumer would see Jaguar Energy in comparison to
other energy drink brands?
AS - …taste profile is fundamental to us hence why the company is confident that our
product will stand out from the crowd.
Therefore it could be assumed from the results, that for energy drink companies
sponsorship is key to generating brand awareness, whether it be through associations with
sports or individuals. However, brand awareness doesn’t necessarily lead to product
purchase. Roy and Cornwell’s (2004) work cited in the literature agreed with the above
statement by saying: although awareness is a valid objective for sponsors, it is pointless
unless image transfer takes place. This is something that energy drink companies must be
aware of, as awareness of the brand appears to be only a part of a purchasing decision
process.
The research clearly highlights the knowledge that potential customers have of energy
drink companies in general, this is shown by the question above ask the participants to
recall names of energy drink companies. They recalled a 9 brands as well as being able to
link most them to sponsorships that they are or have been involved in. In the earlier
research we established that brand awareness serves as a dominant choice tactic among
inexperienced consumers presented with a brand-selection task (Hoyer and Brown, 1990).
The focus group however, tended to disagree with this. A number of them said if they had
to make a choice on energy drinks, that they weren't aware of, they would purchase the
cheapest one. They see cost as a major factor in the purchasing decision over brand
awareness. Roy and Cornwell (2004) pointed out in their work that brand awareness is
pointless unless transfer occurs. This is shown in the above extract, where a number of
!34
brands were recalled, but very few of the participants said they would purchase products
from those brands.
“MP - If I was to buy one of the other brands, then i’d just go for a cheap supermarket own
brand, I think they all just taste the same…
Even if a company effectively sponsors an individual or event, and successfully generates
brand awareness, it still may not translate into increased purchases. This, according to the
CEO of Jaguar Energy, is the core measure of success or failure;
“BR - How do you currently measure your brand/marketing success or failure?
AS - We look at financial returns”
!35
Conclusion and Recommendations
The purpose of this paper was to discover whether sponsorship was the key component in
building brand awareness for energy drink companies. All elements that make up this
paper have been designed to reach that goal.
During the research for this paper, it was evident that there was very little industry specific
content on sponsorships effect upon brand awareness. There were however, large
amounts of research looking individually at sponsorship, brand awareness and their effects
on each other. Many authors cited the possible benefits of using sponsorship as a key part
of a company’s overall marketing strategy (Brassington et al, 2000; Lamb et al, 2001;
Jobber and Fahy, 2009; Meenaghan, 1983; Rowley and Williams, 2008; McDonald, 1991).
Therefore it was clear that sponsorship was seen as an intrinsically good thing to integrate
into an energy drink companies marketing mix. Further research into sponsorship shows
that it is a higher risk strategy with a number of potentially very damaging consequences
(McDonald, 1991). Overall the majority of authors seem to agree that largely, sponsorship
provides more benefits than carries risks, as long as it is conducted correctly.
In terms of brand awareness, there is a lot of disagreement over the effect brand
awareness has on purchasing decisions (Macdonald and Sharp, 2000), how you build
brand awareness (Naik et al, 2008) and what measures are used to determine its success
(Quester, 1997). That being said, the research did point out that sponsorship can be and is
effectively used in order to build brand awareness. It must be noted though, that this can
work both ways i.e. good sponsorships will create positive brand awareness, however
!36
seemingly negative sponsorships can also boost brand awareness, but not to the desired
effect.
The purpose of the individual interview and the focus group was to build a real-world and
in-depth understanding of people’s thoughts and feelings towards brands, and how they
see the energy drink brands in the industry. By examining the views of the company as
well as the consumer a deep and comparative insight was gained into the thoughts,
feelings and opinions of sponsorship and brand awareness within the energy drink market.
It is key to note that many of the points raised in the focus group and interview aligned
themselves with the review of the literature previously. An example of this is when Jaguar
Energy state that they are targeting high viewership sports for increased visibility, which
agrees with Brassington et al (2000).
Overall the thoughts and opinions of the customer seemed to largely echo the views of the
company. Most of those views also tied into the review of the literature, which largely
pointed out that sponsorship is a key component in building brand awareness for energy
drink companies. The participants of the focus group point out that that they are aware of a
brand through their involvement with sponsorships, however this doesn’t necessarily lead
to resulting purchases.
In order to further prove or disprove that sponsorship is indeed the key component in
building brand awareness for energy drink companies, future research should involve a
larger sample size, along with a sample size that is more varied in terms of gender and
demographics. Although the sample collected provided this paper with a wealth of high
quality information, it may have been limited due to the small sample size.
!37
This study faced only a few limitations. The biggest of those was the issue of sampling,
and purely qualitative data. Although purely qualitative data provided rich content for
analysis, it does make a representative view of the UK population harder to attain. This is
a limitation that isn’t easily addressed, but one that is achievable.
Despite the noted limitations of this study, it has been successful. It has identified and
compared the views of a company and it’s potential customers. It has also discovered the
extent to which companies are perceived and remembered due to their sponsorship
activities. It has also added to the existing literature that looks at sponsorship and how it is
used as a successful marketing tool.
This paper has paved the way for further research to be conducted into sponsorships
effect on brand awareness in other product centred markets, not necessarily the energy
drink market. This further research will aid companies operating in various markets to
assess whether or not to use sponsorship as part of their brand awareness building
activities.
!38
Bibliography
Abratt, R., Clayton, B.C. and Pitt, L.F. (1987). ‘Corporate objectives in sports sponsorship’.
International Journal of Advertising, Vol. 6 (4), pp. 299-311.
Amis, J., Slack, T., Berrett, T. (1999). ‘Sport sponsorship as distinctive competence’.
European Journal of Marketing, Vol. 33 (3/4), pp.250 - 272.
Attila, S., and Çakir, B. (2011). ‘Energy-drink consumption in college students and
associated factors’. Nutrition, 27(3), 316-322.
Bailey, S. (2015). Why Monster Beverage is a dominant energy drink player. Available at:
http://finance.yahoo.com/news/why-monster-beverage-dominant-energy-150416779.html
(Accessed: 06/04/15)
Barney, J.B. (1991). ‘Firm resources and sustained competitive advantage’. Journal of
Management, Vol. 17, pp. 99-120.
Bennett, R. (1999). ‘Sports sponsorship, spectator recall and false consensus’. European
Journal of Marketing, Vol. 33 (3/4), pp. 291-313.
Boardmasters (2015). Boardmasters | Home Available at: http://boardmasters.co.uk
(Accessed: 16/12/14)
!39
Brassington, F. and Pettitt, S. (2000). Principles of Marketing. 2nd Edition. Harlow:
Prentice-Hall
Cornwell, T. B., Weeks, C. S., and Roy, D. P. (2005). ‘Sponsorship-linked marketing:
Opening the black box’. Journal of Advertising, 34(2), 21-42.
Conner, K. R. (1991). ‘A historical comparison of resource-based theory and five schools
of thought within industrial organization economics: do we have a new theory of the firm?’.
Journal of Management, Vol. 17, pp. 121-54.
Crimmins, J. and Horn, M. (1996). ‘Sponsorship: from management ego trip to marketing
success’. Journal of Advertising Research, 36(4), pp. 11–21.
Crowley, M. (1991). ‘Prioritising the Sponsorship Audience’. European Journal of
Marketing, Vol. 25 (11), pp. 11 - 21
Cunningham, P., Taylor, S. and Reeder, C. (1993). ‘Event marketing: the evolution of
sponsorship from philanthrophy to strategic promotion’. Proceedings of the 6th Conference
on Historical Research in Marketing and Marketing Thought, Michigan State University,
East Lansing, MI.
Donlan, L. (2014). ‘An empirical assessment of factors affecting the brand-building
effectiveness of sponsorship’. Sport, Business and Management: An International Journal,
Vol. 4 (1) pp. 6 - 25
!40
Elo, S., Kääriäinen, M., Kanste, O., Pölkki, T., Utriainen, K., and Kyngäs, H. (2014).
‘Qualitative content analysis a focus on trustworthiness’. SAGE Open, 4(1)
Elo, S. and Kyngäs H. (2008). ‘The qualitative content analysis process’. Journal of
Advanced Nursing, 62, 107-115.
Fahy, J., Farrelly, F., Quester, P. (2004). ‘Competitive advantage through sponsorship’.
European Journal of Marketing, Vol. 38 (8), pp. 1013 - 1030
FIFA. About FIFA. Available at:http://resources.fifa.com/mm/document/fifafacts/
organisation/52/00/10/fs-120_01a_mas.pdf (Accessed: 29/11/14)
Flick, U. (2009). An introduction to qualitative research. Sage.
Fontinelle, A. (2015). The Energy Drinks Industry. Available at: http://
www.investopedia.com/articles/investing/022315/energy-drinks-industry.asp (Accessed:
06/04/15)
Gardner, M. and Shuman, P. (1987). 'Sponsorship: An important component of the
promotions mix', Journal Of Advertising, 16 (1), pp. 11-17
Gault, N. (2003). ‘Sponsorship with a strategy’. Brand Strategy, 176 (32).
Glaser, B. G. and Strauss, A. L. (1967). The discovery of grounded theory. Chicago: Aldine
Grant, R.M. (1991).’ “The resource-based theory of competitive advantage: implications for
strategy formulation”, California Management Review, Vol. 33 (3), pp. 114-35.
!41
Guba, E. G. (1981). ‘Criteria for assessing the trustworthiness of naturalistic inquiries’.
Educational Communication and Technology Journal, 29, pp. 75-92.
Hall, R. (1992). ‘The strategic analysis of intangible resources’. Strategic Management
Journal, Vol. 13, pp. 135-44.
Hartland, T., Skinner, H. and Griffiths, A. (2005). ‘Tries and conversions: are sports
sponsors pursuing the right objectives?’. International Journal of Sports Marketing &
Sponsorship, Vol. 6 (3), pp. 164-173.
Herrmann, J. L., Corneille, O., Derbaix, C., Kacha, M. and Walliser, B. (2014). ‘Implicit
sponsorship effects for a prominent brand’. European Journal of Marketing 48: 3/4.
Holbrook, M. B. and Hirschman, E. C. (1982). ‘The Experiential aspects of consumption:
consumer fantasies, feeling, and fun’. Journal of Consumer Research, Vol. 9, pp. 132-40.
Hollander, J. A. (2004). ‘The social context of focus groups’. Journal of contemporary
ethnography, 33, 602-637.
Howard, D. R., & Crompton, J. L. (1995). Financing sport. Morgantown, WV: Fitness
Information Technology, Inc.
Hoyer, W. D. and Brown, S. P. (1990). ‘Effects of Brand Awareness on Choice for a
Common, Repeat-Purchase Product’. Journal of Consumer Research, 17 (9), 141-8.
!42
IEGSR. (2010). How Monster Energy Uses Sponsorship To Claw Past Competition.
Available at: http://www.sponsorship.com/iegsr/2010/03/01/How-Monster-Energy-Uses-
Sponsorship-To-Claw-Past-C.aspx (Accessed: 01/12/14)
Jobber, D. and Fahy J. (2009) Foundations of Marketing. Berkshire: McGraw-Hill Higher
Education
Koch T., Harrington A. (1998). ‘Reconceptualizing rigour: The case for
reflexivity’. Journal of Advanced Nursing, 28, 882-890.
Lamb, C. W and Hair, J. F and McDaniel, C. (2012). MKTG 5: Student Edition. USA:
Cengage Learning
Lee, J. and Ferreira, M. (2011). ‘Cause-related marketing: the role of team identification in
consumer choice of team licensed products’. Sport Marketing Quarterly, Vol. 20 No. 3, pp.
157-69.
Lincoln, Y. S. and Guba, E. G. (1985) . Naturalistic Inquiry. California: Sage Publications
Macdonald, E.K. and Sharp, B.M. (2000). ‘Brand awareness effects on consumer decision
making for a common, repeat purchase product: a replication’. Journal of Business
Research, Vol. 48 (1), pp. 5-15.
Macdonald, E. K. and Sharp, B. M. (2003). ‘Management Perceptions of the Importance of
Brand Awareness as an Indicator of Advertising Effectiveness’. Marketing Bulletin 14:
article 2.
!43
Mandler, G. (1980). ‘Recognizing: the judgment of previous occurrence’. Psychological
Review, Vol. 87, pp. 252-271.
Marczinski, C. A. (2011). ‘Alcohol mixed with energy drinks: consumption patterns and
motivations for use in US college students’. International journal of environmental research
and public health, 8(8), 3232-3245.
Martensen, A., Grønholt, L., Bendtsen, L. and Juul, M. (2007). ‘Application of a model for
the effectiveness of event marketing’. Journal of Advertising Research, Vol. 47 (9), pp.
283-301.
Mason, J. (2002). Qualitative researching. 2nd Edition. London: Sage Publications
Mason, J., Roger, B. and Cochetel, F. (2006). ‘Residual Brand Awareness Following the
Termination of a Long-term Event Sponsorship and the Appointment of a New Sponsor.’
Journal of Marketing Communications, 12 (2), 125-144.
Maxwell, J. A. (1996). Qualitative research design: An interactive approach. Thousand
Oaks, CA: Sage.
Maykut, P. S., & Morehouse, R. E. (2004). Beginning Qualitative Research, A Philosophic
and Practical Guide, London: The Falmer Press.
McDonald, C. (1991). ‘Sponsorship and the Image of the Sponsor’. European Journal of
Marketing, Vol. 25 (11), pp. 31 - 38
!44
Meenaghan, J. A. (1983). ‘Commercial Sponsorship’. European Journal of Marketing, Vol.
17 (7), pp. 5 - 73
Meenaghan, T. (1991). ‘The role of sponsorship in the marketing communications mix’.
International Journal of Advertising, Vol. 10, pp. 35-47.
Meenaghan, T. (1996). ‘Ambush Marketing - a threat to corporate sponsorship’. Sloan
Management Review, 38 (1), 103-113.
Meenaghan, T. (1998). ‘Current Developments and Future Directions in Sponsorship’.
International journal of Advertising. 17 (1), pp. 3-28.
Mintel (1994), Sports Sponsorship, Mintel International Group Limited, London.
Miyazaki, A.D. and Morgan, A.G. (2001). ‘Assessing market value of event sponsorship:
corporate Olympic sponsorships’. Journal of Advertising Research, Vol. 41 (1), pp. 9-15.
Naik, P. A., Prasad, A., Sethi, S. P. (2008). ‘Building brand awareness in dynamic oligopoly
markets’. Manag. Sci. 54(1): 129–138.
O’Brien, M. C., McCoy, T. P., Rhodes, S. D., Wagoner, A., & Wolfson, M. (2008).
‘Caffeinated cocktails: energy drink consumption, high‐risk drinking, and alcohol‐related
consequences among college students’. Academic Emergency Medicine, 15(5), 453-460.
!45
Oakes, S. (2003). ‘Demographic and sponsorship considerations for jazz and classical
music festivals’. The Service Industries Journal, Vol. 23 (3), pp. 165-78.
Olson, E.L (2010). ‘Does sponsorship work in the same way in different sponsorship
contexts?’. European Journal of Marketing, Vol. 44 (1/2), pp.180 - 199
Patton, M. Q. (1990). Qualitative Evaluation and Research Methods. 2nd Edition.
California: Sage Publications.
Pelsmacker, P., Geuens, M. and Van den Bergh, J. (2005). Foundations of Marketing
Communications: A European Perspective, Prentice-Hall, Harlow.
Pickton, D. and Broderick, A. (2005). Integrated Marketing Communications, Pearson
Education Limited, Harlow.
Quester, P.G. (1997). ‘Awareness as a measure of sponsorship effectiveness: the Adelaide
Formula One Grand Prix and evidence of incidental ambush effects’. Journal of Marketing
Communications, Vol. 3 (1), pp. 1-20.
Quinn, E. (1982). Sponsorship as a Marketing Tool. University College of Dublin:
Unpublished MBS thesis
Reading Festival (2014). Relentless is back in the Reading Village. Available at: http://
www.readingfestival.com/news/relentless-back-reading-village (Accessed: 16/12/14)
!46
Reissig, C. J., Strain, E. C., and Griffiths, R. R. (2009). ‘Caffeinated energy drinks—a
growing problem’. Drug and alcohol dependence, 99(1), 1-10.
Rines, S. (2002). ‘Guinness Rugby World Cup sponsorship: a global platform for meeting
business objectives’. International Journal of Sports Marketing & Sponsorship, Vol. 3 (4),
pp. 449-465.
Rossiter, J. R. & Percy, L. (1987). Advertising and promotion management. New York:
McGraw-Hill
Rossiter J. R., Percy, L. and Donovan, R. J. (1991). ‘A better advertising planning grid’.
Journal of Advertising Research, 11-21.
Rowley, J. Williams, C. (2008). ‘The impact of brand sponsorship of music festivals’.
Marketing Intelligence & Planning, Vol. 26 (7), pp. 781 - 792
Roy, D. P. and Cornwell, T. B. (2004). ‘The effects of consumer knowledge on responses to
event sponsorships’. Psychology & Marketing, Vol. 21 (3), pp. 185-207.
Ruth, J. A., and Simonin, B. L. (2003). ‘Brought to You by Brand A and Brand B':
Investigating Multiple Sponsors’ Influence on Consumers' Attitudes Toward Sponsored
Events’. Journal of Advertising, 32 (3), 19-30.
Seale, C. (1999). ‘Quality in qualitative research’. Qualitative Inquiry, 5, 465–478.
Sleight, S. (1989). Sponsorship: What Is It and How To Use It. McGraw-Hill.
!47
Stewart, D. W. (2015). Focus Groups - Theory and Practice. 3rd Edition. London:
Sage Publications.
Tomasini, N., Frye, C. and Stotlar, D. (2004). ‘National collegiate athletic association
corporate sponsor objectives: are there differences between divisions I-A, I-AA, and I-
AAA?’. Sport Marketing Quarterly, Vol. 13 (4), pp. 216-226.
Thomas, D. R. (2006). ‘A general inductive approach for analyzing qualitative
evaluation data’. American journal of evaluation, 27(2), 237-246.
Thombs, D. L., O'Mara, R. J., Tsukamoto, M., Rossheim, M. E., Weiler, R. M., Merves, M.
L., and Goldberger, B. A. (2010). ‘Event-level analyses of energy drink consumption and
alcohol intoxication in bar patrons’. Addictive behaviors, 35(4), 325-330.
Tubbs, S. (2011). A systems approach to small group interaction. New York, NY:
McGraw-Hill.
Verity, J. (2002). ‘Maximising the marketing potential of sponsorship for global brands’.
European Business Journal, Vol. 14 (4), pp. 161-173.
Wang, M.C., Jain, M., Cheng, J.M. and Aung, G.K. (2012). ‘The purchasing impact of fan
identification and sports sponsorship’. Marketing Intelligence and Planning, Vol. 30 (5), pp.
553-566.
Whittemore, R., Chase, S. K., & Mandle, C. L. (2001). ‘Validity in qualitative research’.
Qualitative health research, 11(4), 522-537.
!48
Witcher, B., Craigen, J.G., Culligan, D. and Harvey, A. (1991). ‘The links between
objectives and function in organizational sponsorship’. International Journal of Advertising,
Vol. 10, pp. 13-33.
Williams, M. (2012). Nike drops deal with Lance Armstrong after he 'misled us for a
decade. Available at: http://www.theguardian.com/sport/2012/oct/17/nike-lance-armstrong-
misled-decade (Accessed: 02//02/15)
!49
Appendix
Appendix 1
Graph showing sponsorship growth in terms of US Dollars spent from 2007 to 2015
Appendix 2
Dissertation Interview
With Mr Amit Sra (AS) – CEO of 1 SRA LTD t/a Jaguar Energy Drink UK and Ben
Roberts (BR)
BR - Why would the average consumer buy a can of Jaguar over a competitor?
!50
AS - The reasons are 3 fold. Firstly the price point, we have set this at 99p per can in order
to be consumer friendly. Secondly the quality and aesthetics of the product, thirdly the
nutritional content and our product has lower calories than that of the market leader.
Research studies have been applied in the past for the soft beverage industry to establish
what demands are needed. Through this, as a company it was clear to say a 250ml can at
£1.00 fits for the expectation to the general public for a high quality product.
BR - What are your perceptions of other companies and how is Jaguar different?
AS - We want to differentiate ourselves from the rest. Others are really focused on the high
energy, high octane sports and events. As a company, the healthier side of the market is
what attracts and appeals to us as many people are more health conscious in today’s
beverage market. We believe the high octane market is becoming saturated, so we are
positioning ourselves differently from a niche premium angle.
BR - How do you think the average consumer would see Jaguar Energy in comparison to
other energy drink brands?
AS - I think they will see us with the other energy drinks, on the same shelves in the same
shops. However they will see us a premium product that stands out from the rest. As a
company, the taste profile is fundamental to us hence why the company is confident that
our product will stand out from the crowd.
BR - Why do you believe that people buy energy drinks?
AS - People lead hectic lifestyle and it’s only getting busier. Through research it was noted
that people aged 18-39 require energy pick me up, faster than coffee – this is due to hectic
lifestyles. No waiting around for it to be made or to cool down - just pick up a can and
drink. People need this quick energy
!51
BR - What methods of increasing brand awareness do you use?
AS - The company are to concentrate on Premier League Football – especially in the long
term whereby we look at building a powerful social media presence and impact. At the
moment, we aren’t pushing social media but we monitoring it to see if and how much we
grow organically. In terms of our football presence, we currently have an exclusive premier
league deal with Manchester City Football Club. Furthermore in the past our work has
been applied with local league football clubs like Accrington Stanley, one of the UK’s oldest
football clubs.
BR - Why do use those methods?
AS - Simply high viewership! We want as many people as possible to see and associate
with the brand as Football is the most watched sport in the world. By being involved in this
sport brings a wealth of opportunities.
BR - Why do you use sponsorship?
AS - We want to show company growth. Sponsorship is fundamentally the most powerful
growing tool of marketing. From this you can find endless opportunities to extend your
competitiveness e.g. by increasing our image and luxury profile in sponsoring high profile
brands like; Manchester City Football Club.
BR - Who else do you sponsor?
AS - Our current sponsorships are; Manchester City Football Club and USW Hockey.
BR - Are there any others?
AS - We also sponsor a number of charities such as Hire a Hero, Footsteps and Make a
Wish Foundation. We want to look at real growth as sponsoring charities is very much part
!52
of that. Being from a medical background I know exactly what great work charities do and I
want the charity work to always be in our minds. I want to pay back to the community.
BR - What do you think is the best method for increasing brand awareness?
AS - To be different, that’s exactly what we want and what are trying to do. We have a
product that looks attractive. We want rapid growth.
BR - How much money do you spend specifically on sponsorship?
AS - We spend what we can. If we have a budget, we spend it. However we must have a
return on investment (ROI) that is the bottom line. With charities we don’t look at ROI, we
look at it in other terms. Charitable work is a responsibility we take seriously.
BR - How do you currently measure your brand/marketing success or failure?
AS - We look at financial returns
BR - What are your brand awareness goals?
AS - We want to further penetrate our targeted 18-39 age group. We also want to make
sure that they aren’t just the perceived market and they are actually the ones buying the
products. We want to be recognised and utilised by both men and women – don’t want to
be seen as a single sex brand. Lastly, as a company we want to further expand our UK
growth, then look at expanding abroad.
BR - What do you define as success and growth in the UK?
AS - To be on every shelf in the UK in 4 years and the aim is to be 25% in the next 24
months.
BR - Do you think that’s a very ambitious target?
!53
AS - We are very ambitious and aggressive in the market. We believe we have the right
product at the right price. We now just need it in all the right places. A key component of
that will be our point of sales promotions and marketing materials. Reason being was
whilst at university I saw many students consume a lot of energy drinks especially in the
build up to exams. This is an ever-growing market.
Appendix 3
Dissertation Focus Group
Present:
BR - Ben Roberts (Host)
GC - Grant Cawley
MP - Matthew P-J
JB - James Baker
CS - Chris Saunders
EW - Ed Wallett
1) BR - Why do/would you buy a can or cans of energy drink? If you wouldn’t . .why not?
EW - Because of the taste. They are super refreshing if they are cold.
GC - I used to buy, not just for the function of energy, but for taste, but now care of what
I'm putting into my body, and look into the contents and read what exactly they put into the
product.
!54
JB - Used to in university for essay deadlines. I thought it would help concentrate, specially
if needed and all nighter.
MP - I used to drink them for the caffeine prior to exercise, or sports in general to give me
energy for the game. Stopped due to sugar content. Still have with alcohol on nights out.
JB/GC - Jager Bombs???
JB - I don’t have them with alcohol anymore because of the side effects like the crash
after, and the press about how mixing can have negative side effects on your heart.
MP - I like my teeth and don’t want to get fat.
EW - I don’t drink them with alcohol as I can’t really sleep after. Usually it’s Red Bull
Gc - I used to have them before gym, but they just gave me heart burn.
CS - never used to, but recently started. The one which I go for is Lucozade Energy, based
purely on taste. It’s also quite good on long drives late at night.
2) BR - What are your perceptions of energy drink companies themselves?
GC/MP - Red Bull
JB - extreme events
GC - I used to break dance, and there is a breakdance comp called Red Bull BC1
(Breakdance champions 1). I’d say it was considered quite a cool sport. So I think that’s
how Energy drink companies want to be perceived.
MP - I’m a fan of formula 1, Red Bull are one of the top teams. This makes me think that
they are a very big brand.
!55
BR - Do you know any other brands? What are your perceptions of those?
EW - Probably not that good, but I don;t care. I think they do put addictive substances in,
that wouldn’t surprise.
JB - Monster I know sponsor other extreme sports. So I perceived them as being a more
extreme company that focuses on action sports.
CS - Rally Motocross again I see them as linked with action/adrenaline sports. What is
ridiculous are those huge monster trucks they drive around.
JC - More advertised in the more extreme sports. Like that guy who went into space - Felix
Bawngoartner.
3) What do you think is different about each of the energy drink brands currently in the
market?
MP - Red Bull isn’t just an energy drink company. It’s stands out from the rest by having it’s
name entwined with sports teams and sporting events.
MP - Quality wise they are exactly the same. Taste wise Lucozade Energy is the best,
however brand image wise Lucozade Energy is the worst.
BR - Why do you think is Lucozade Energy the worst brand image?
MP - It seems really dated, and out of touch.
CS - It used to be linked with sports stars and olympians, now you see no adverts or
promotion around it at all.
MP - They seem more focussed on Lucozade Sport instead.
!56
GC - I love the orange one.
JB - Red Bull is marketed as the premium brand, people are willing I think to pay more for
it.
EW - Caffeine contents differs quite a lot, so does sugar content.
BR - Are you willing to pay more for a certain brand?
EW - Hell yes, Relentless every time, because of the flavour.
JB - No
CS - Monster are more linked to 18-19 year olds, I think they are trying to get into more of
a younger gaming market.
MP - Monster cans are too big. They have like a million calories
JB - I agree with Chris, they marketed at the more teenage market i.e. Xbox Live
GC - Can of relentless to keep you awake, but that’s just not particularly distinctive about
the company.
4) BR - How do you think energy drink companies mostly promote their brands?
MP - Sports. Normally more extreme sports and adrenaline sports.
EW - I just tried it once.. I don’t really notice anything else maybe because i;m not that
sporty.
GC - I haven’t seen any traditional style adverts for any brands, they instead link
themselves in with sports and people.
!57
JB - Not seen the ‘Red Bull gives you wings’ adverts??
GC - Ok, maybe I have.
CS - Sponsoring things. Not many do Tv ads any more. Try to use WOM (word of mouth
advertising). They try and seem cool and quite young.
MP - Relentless is more nightclub scene. That’s their brand. They seem really into the
music side of energy.
JB - I don’t see it there.
GC - Rockstar Energy is the big one for that.
JB - Use slogans. I.e. Gives you wings. Unleash the beast. Memorable, they stick in your
mind.
EW - Most of them seem to be linked with the music and adrenaline sports markets
5) BR - Do you buy brands or products?
CS - Based on taste and price. Get the cheapest first then work your way up. Once I like a
product I look at trying more of that brands products in the future.
MP - I would probably buy Lucozade, purely because of taste. If I was to buy one of the
other brands, then i’d just got for a cheap supermarket own brand, I think they all just taste
the same. I’d go for the light versions though as lower sugar content.
GC - I’m exactly the same, but if I were to buy a brand it would be Red Bull.
BR - What about aspartame and other sugar replacements in ‘light’ energy drinks?
GC -I’m aware but don’t know what it is
!58
MP - Most tested sugar substitute, so it’s actually really safe. It annoys me that people
keep questioning without realising what it actually is.
JB - Going back to the initial question, I would say a bit both in terms of product/brand. I
like to try different flavours. Say for instance I have liked Relentless, so I would be more
likely to choose a flavour that I know was in relentless more than others. If if was another
brand with a flavour I didn’t know I don’t think i’d buy.
EW - I pretty much only buy Relentless.
6) BR - Do you know of any sponsorship deals any energy drink company undertakes? If
so please say
CS - Red Bull air race. Can’t think of any others of the top of my head.
MP - Red Bull don’t sponsor anyone!
GC - Don’t they?
MP - Yeah they buy the actual sports or franchise. They run their own events. They don’t
sponsor they run them. Monster sponsor someone in MotoGP (Valentino Rossi).
JB - Pussy Energy tried through controversial means to enter the market. Also Black
energy, had a link with Mike Tyson.
EW - I just know they do general adrenaline sports. But for me nothing springs to mind
JB - Monster sponsor things like drifters and motor sports.
JB/MP maybe some Xbox stuff?? The monster brand looks strong and prominent.
!59
MP - Small brands don’t bother sponsoring. Supermarket brands rely on the branding of
the bigger brands like RB to feed on. You’ll notice the brands and cans are pretty similar.
7) BR - Why do you think Energy Drink use sponsorship? In particular the big brands.
CS - Piggy back off other peoples and teams successes. The main reason really.
MP - Generate more sales, by tapping into fans of the person/team that’s sponsored.
GC - Same as what he said.
JB - To make sure they have those associations with extreme activities over their
competitors.
GC - Aesthetically pleasing logo. The three claw marks. It sponsors to show off the
distinctive brand.
MP - As James said to keep up with their competitors. Lucozade have don't this that’s why
we think their dated.
JB - Felix got on the news and Red Bull was mentioned everywhere. It really helps to
make their brand talked about and distinctive.
8) Do you think that energy drink brands appeal to your lifestyle? or try and fit themselves
into your lifestyle?
MP - They would fit into my lifestyle i.e gym ,sports and age, but I just don't want to.
JB - Definitely more male orientated so I feel they are more targeted at me.
!60
GC - Nothing in gymnastics. No sponsors. Is it because it’s a minority sport? I don;t feel
that they appeal to my lifestyle which is based around gymnastics.
CS - don’t fit into my one I don’t think .I don’t think they specifically cater to a certain
lifestyle anyway. I think they try and get into everyday life as much as they can, and try to
appeal to everyone.
EW - I don;t think they are aimed at me, but I think I know who they are aimed at. I’m not
one of their typical customers.
BR - Why do you think that?
EW - They are supposed to be aimed at sportsmen and more active/outgoing people
JB - Might appeal to people going out on a weekend to help them last a night. Keep on
partying.
BR - So would you say they are aimed at a younger market. What age group do you think
energy drinks are aimed at?
EW - Late teens to 30ish
CS - 18-30 year olds.
JB - 18-30 year olds
MP - I would say 16 - 28
GC - I would say younger more like 13 when they stat becoming more active in online
gaming.
MP - I don’t think they go after that age, there are no adverts aimed at that market.
GC - I think there is they aspire to be the people the brand represents, and see it all the
time.
!61
CS - I say 18-30 because they are the most active and they are the most influenced by the
marketing tactics they employ.
BR - Are you talking about social media?
CS - Not really, just generally being cool and young. Associations with Jaegermeister,
which is also a young brand.
9) BR - How much would you spend on energy drinks? (£ per can)
CS - £1.80 for a lucozade Energy bottle (500ml)
GC - Big relentless, I wouldn't pay more than £2.50 per can.
MP - Lucozade i’d pay £1.40 for and but I wouldn't buy a big can of Monster or Relentless
because it’s too unhealthy. If I were to buy a smaller one, I would buy an unbranded one,
and I wouldn't pay more than 60p. For a branded small can, no more than £1.20.
JB - I’d pay up to £2 per can, buy if those were on offer, I would more likely buy the one on
offer!
EW - Any reasonable price for me. For the right can i’d pay up to £3. I wouldn’t even
change for an offer. I’m one brand man.
10) Do you know how much energy drink is too much? (RDA’s)
CS - No idea, couldn’t even guess.
MP - More than a can a day. Disgustingly unhealthy
!62
GC - one every 2 days.
MP - More than one a day is horrible.
EW - 1 is probably too much. No more than one big one a day.
GC - After one I getHeartburn. I feel horrible.
JB - One per activity!
11) How many energy drink brands can you name?
GC - Red Bull, Relentless, Monster, Rockstar, Pussy.
MP - Sainbury’s own is Bolt. Lucozade.
EW - Emerge I think is Tesco’s own
CS - Energise is Morrsion’s own.
JB - Shark in Glam nightclub.
JB - Kick in Oceana, tastes like feet.
12) Who’s the biggest energy drink company in the world? Who’s got the best rep?
All - Red Bull and I think they have the best reputation too.
JV - The Apple of the energy drink market.
!63
EW - Yes has to be Red Bull in terms of size. I think Monster has a bad rep recently, i’ve
heard bad things about people dying. I’ve not really heard bad press about Relentless.
13) Do you have any negative perceptions of the market?
MP - Perceived as unhealthy
CS - I think it helps fuel binge drinking especially within the much younger people.
JB - Mixing with alcohol is dangerous, there has been a lot of negative press recently
about that.
JB - People can come dependent on them.
G - Experience from friends is that they are bad. I’ve seen people who constantly drink
them and they are usually quite fat.
EW - I don;t think they care how unhealthy they are, or do any research into it. I’m
addicted so I don;t really think about it, but I like to think my choice is one of the better
ones.
MP - My friend drank too much before a science class back in high school. Turned purple,
started sweating and shaking. Not exactly a good image for energy drinks.
CS - Do they do anything for the community??
GC - I don’t think so, not that I know of.
JB - I think brands like Red Bull are promoting dangerous behaviour. There are YouTube
video’s of people trying to copy Felix Bawngoartner’s stunts, some of them need up in the
person getting hurt.
!64
14) Positive perceptions?
EW - Taste nice!!
GC - quite cool.
MP - Clean good branding. Formula 1 and football clean sports, but still quite extreme.
EW - I think they may help people be more active.
!65

More Related Content

What's hot

impact of advertising on brand loyalty with the moderation of consumer buying...
impact of advertising on brand loyalty with the moderation of consumer buying...impact of advertising on brand loyalty with the moderation of consumer buying...
impact of advertising on brand loyalty with the moderation of consumer buying...
Aamna Shakeel
 
ROLE OF ADVERTISING IN CONSUMER DECISON MAKING
ROLE OF ADVERTISING IN CONSUMER DECISON MAKINGROLE OF ADVERTISING IN CONSUMER DECISON MAKING
ROLE OF ADVERTISING IN CONSUMER DECISON MAKING
Himal Rustagi
 
Impact of Sales Promotion’s advertised on TV on Buying Behavior. [With Specia...
Impact of Sales Promotion’s advertised on TV on Buying Behavior. [With Specia...Impact of Sales Promotion’s advertised on TV on Buying Behavior. [With Specia...
Impact of Sales Promotion’s advertised on TV on Buying Behavior. [With Specia...
inventionjournals
 
Perceptions of Market Orientation from a Consumer and Retailer Perspective
Perceptions of Market Orientation from a Consumer and Retailer PerspectivePerceptions of Market Orientation from a Consumer and Retailer Perspective
Perceptions of Market Orientation from a Consumer and Retailer Perspective
Tony Kynes
 
VBCF Final report_EN
VBCF Final report_ENVBCF Final report_EN
VBCF Final report_EN
Javier Ayala
 

What's hot (20)

Ijm 06 10_014
Ijm 06 10_014Ijm 06 10_014
Ijm 06 10_014
 
Effects of advertising on consumer buying behaviour with reference to demand ...
Effects of advertising on consumer buying behaviour with reference to demand ...Effects of advertising on consumer buying behaviour with reference to demand ...
Effects of advertising on consumer buying behaviour with reference to demand ...
 
When Corporate Social Responsibilities Deny Humanity of Its Long-Term Sustain...
When Corporate Social Responsibilities Deny Humanity of Its Long-Term Sustain...When Corporate Social Responsibilities Deny Humanity of Its Long-Term Sustain...
When Corporate Social Responsibilities Deny Humanity of Its Long-Term Sustain...
 
Relationship marketing and financial viability of NonGovernmental Organizatio...
Relationship marketing and financial viability of NonGovernmental Organizatio...Relationship marketing and financial viability of NonGovernmental Organizatio...
Relationship marketing and financial viability of NonGovernmental Organizatio...
 
impact of advertising on brand loyalty with the moderation of consumer buying...
impact of advertising on brand loyalty with the moderation of consumer buying...impact of advertising on brand loyalty with the moderation of consumer buying...
impact of advertising on brand loyalty with the moderation of consumer buying...
 
Economic effects and influences of advertisements among children
Economic effects and influences of advertisements among childrenEconomic effects and influences of advertisements among children
Economic effects and influences of advertisements among children
 
ROLE OF ADVERTISING IN CONSUMER DECISON MAKING
ROLE OF ADVERTISING IN CONSUMER DECISON MAKINGROLE OF ADVERTISING IN CONSUMER DECISON MAKING
ROLE OF ADVERTISING IN CONSUMER DECISON MAKING
 
Conceptual Review of the Effects of Advertising on Consumer Buying behaviour
Conceptual Review of the Effects of Advertising on Consumer Buying behaviourConceptual Review of the Effects of Advertising on Consumer Buying behaviour
Conceptual Review of the Effects of Advertising on Consumer Buying behaviour
 
5
55
5
 
The Future of Food Communications: Winning Share of Mouth in the Conversation...
The Future of Food Communications: Winning Share of Mouth in the Conversation...The Future of Food Communications: Winning Share of Mouth in the Conversation...
The Future of Food Communications: Winning Share of Mouth in the Conversation...
 
Economic Study of Television Advertising Market in Bangladesh
Economic Study of Television Advertising Market in BangladeshEconomic Study of Television Advertising Market in Bangladesh
Economic Study of Television Advertising Market in Bangladesh
 
Beyond the Middle
Beyond the MiddleBeyond the Middle
Beyond the Middle
 
Impact of Sales Promotion’s advertised on TV on Buying Behavior. [With Specia...
Impact of Sales Promotion’s advertised on TV on Buying Behavior. [With Specia...Impact of Sales Promotion’s advertised on TV on Buying Behavior. [With Specia...
Impact of Sales Promotion’s advertised on TV on Buying Behavior. [With Specia...
 
A STUDY ON IMPACT OF TELEVISION ADVERTISEMENT ON PURCHASE DECISIONS OF CONSUM...
A STUDY ON IMPACT OF TELEVISION ADVERTISEMENT ON PURCHASE DECISIONS OF CONSUM...A STUDY ON IMPACT OF TELEVISION ADVERTISEMENT ON PURCHASE DECISIONS OF CONSUM...
A STUDY ON IMPACT OF TELEVISION ADVERTISEMENT ON PURCHASE DECISIONS OF CONSUM...
 
Impact of advertisements on buying behaviour of youth
Impact of advertisements on buying behaviour of youthImpact of advertisements on buying behaviour of youth
Impact of advertisements on buying behaviour of youth
 
Perceptions of Market Orientation from a Consumer and Retailer Perspective
Perceptions of Market Orientation from a Consumer and Retailer PerspectivePerceptions of Market Orientation from a Consumer and Retailer Perspective
Perceptions of Market Orientation from a Consumer and Retailer Perspective
 
VBCF Final report_EN
VBCF Final report_ENVBCF Final report_EN
VBCF Final report_EN
 
Advertising effectiveness in mobile phone industry
Advertising effectiveness in mobile phone industryAdvertising effectiveness in mobile phone industry
Advertising effectiveness in mobile phone industry
 
Economic effects of advertisemnts
Economic effects of advertisemntsEconomic effects of advertisemnts
Economic effects of advertisemnts
 
Impact of Customer Relationship Marketing On the Performance of Commercial Ba...
Impact of Customer Relationship Marketing On the Performance of Commercial Ba...Impact of Customer Relationship Marketing On the Performance of Commercial Ba...
Impact of Customer Relationship Marketing On the Performance of Commercial Ba...
 

Similar to Disseration

2008 Powered Roi Report Final
2008 Powered Roi Report Final2008 Powered Roi Report Final
2008 Powered Roi Report Final
Ralph Paglia
 
Advertising, its role and importance in the marketing of consumer product
Advertising, its role and importance in the marketing of consumer productAdvertising, its role and importance in the marketing of consumer product
Advertising, its role and importance in the marketing of consumer product
ResearchWap
 
A4E Plansbook digital version
 A4E Plansbook digital version A4E Plansbook digital version
A4E Plansbook digital version
Yi-Ling Yeh
 
Lo1 marketing
Lo1 marketingLo1 marketing
Lo1 marketing
ashboyne
 

Similar to Disseration (20)

An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...
An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...
An Analysis Study of Improving Brand Awareness and Its Impact on Consumer Beh...
 
Lo1 workbook
Lo1 workbookLo1 workbook
Lo1 workbook
 
A Study on Bangladeshi Television Commercials (TVCs)
A Study on Bangladeshi Television Commercials (TVCs)A Study on Bangladeshi Television Commercials (TVCs)
A Study on Bangladeshi Television Commercials (TVCs)
 
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...
 
2008 Powered Roi Report Final
2008 Powered Roi Report Final2008 Powered Roi Report Final
2008 Powered Roi Report Final
 
Assessment the impact of Sales promotion tools on increasing Consumers purcha...
Assessment the impact of Sales promotion tools on increasing Consumers purcha...Assessment the impact of Sales promotion tools on increasing Consumers purcha...
Assessment the impact of Sales promotion tools on increasing Consumers purcha...
 
Advertising, its role and importance in the marketing of consumer product
Advertising, its role and importance in the marketing of consumer productAdvertising, its role and importance in the marketing of consumer product
Advertising, its role and importance in the marketing of consumer product
 
41
4141
41
 
Impact of R&D and advt. on companies performance.
Impact of R&D and advt. on companies performance.Impact of R&D and advt. on companies performance.
Impact of R&D and advt. on companies performance.
 
A4E Plansbook digital version
 A4E Plansbook digital version A4E Plansbook digital version
A4E Plansbook digital version
 
Getting something brewing
Getting something brewingGetting something brewing
Getting something brewing
 
The Good, the Generous and the Galvanic: Marketing's Role in Social Responsib...
The Good, the Generous and the Galvanic: Marketing's Role in Social Responsib...The Good, the Generous and the Galvanic: Marketing's Role in Social Responsib...
The Good, the Generous and the Galvanic: Marketing's Role in Social Responsib...
 
Innovations and Trends in B2B Marketing
Innovations and Trends in B2B Marketing�Innovations and Trends in B2B Marketing�
Innovations and Trends in B2B Marketing
 
Marketing challenges facing industries in the covid 19 era by suman saha
Marketing challenges facing industries in the covid 19 era by suman sahaMarketing challenges facing industries in the covid 19 era by suman saha
Marketing challenges facing industries in the covid 19 era by suman saha
 
Impact of social media on consumer spending.pdf
Impact of social media on consumer spending.pdfImpact of social media on consumer spending.pdf
Impact of social media on consumer spending.pdf
 
Is sports sponsorship worth it
Is sports sponsorship worth itIs sports sponsorship worth it
Is sports sponsorship worth it
 
BHF Final
BHF FinalBHF Final
BHF Final
 
Lo1 workbook
Lo1 workbookLo1 workbook
Lo1 workbook
 
Lo1 marketing
Lo1 marketingLo1 marketing
Lo1 marketing
 
Promotion Mix Vs Consumer Demand by Tolulope Ofi
Promotion Mix Vs Consumer Demand by Tolulope OfiPromotion Mix Vs Consumer Demand by Tolulope Ofi
Promotion Mix Vs Consumer Demand by Tolulope Ofi
 

More from Ben M Roberts 🐝🐝🐝

More from Ben M Roberts 🐝🐝🐝 (8)

SEO essentials 2021 - The basics of Search Engine Optimisation
SEO essentials 2021 - The basics of Search Engine OptimisationSEO essentials 2021 - The basics of Search Engine Optimisation
SEO essentials 2021 - The basics of Search Engine Optimisation
 
How to create a selling system based on authority and common thread
How to create a selling system based on authority and common threadHow to create a selling system based on authority and common thread
How to create a selling system based on authority and common thread
 
How to keep your marketing human in a world dominated technology
How to keep your marketing human in a world dominated technologyHow to keep your marketing human in a world dominated technology
How to keep your marketing human in a world dominated technology
 
What is effective content marketing? How can you maximise your content creati...
What is effective content marketing? How can you maximise your content creati...What is effective content marketing? How can you maximise your content creati...
What is effective content marketing? How can you maximise your content creati...
 
How to build your personal brand and become a recognised industry authority
How to build your personal brand and become a recognised industry authorityHow to build your personal brand and become a recognised industry authority
How to build your personal brand and become a recognised industry authority
 
Content Marketing and Storytelling
Content Marketing and StorytellingContent Marketing and Storytelling
Content Marketing and Storytelling
 
How to embrace the Online REVIEWlution
How to embrace the Online REVIEWlutionHow to embrace the Online REVIEWlution
How to embrace the Online REVIEWlution
 
Ratings and Reviews are Marketing
Ratings and Reviews are Marketing Ratings and Reviews are Marketing
Ratings and Reviews are Marketing
 

Disseration

  • 1. University of South Wales Identifying and examining whether sponsorship is the key component in building brand awareness for energy drink companies B. Roberts 2015 A project dissertation submitted in part fulfilment of the requirements for the award of BA (Hons) Marketing at the University of South Wales I declare that this dissertation is the result of my own independent investigation and that all sources are duly acknowledged in the bibliography. B. Roberts May 2015 i
  • 2. Abstract Purpose - The purpose of this paper is to identify and examine whether sponsorship is the key component in building brand awareness for energy drink companies. Sponsorship is an important element of many companies marketing activities, of which energy drink companies are also heavily associated with. However little research has been conducted into the specific effects of sponsorship on the energy drink market itself. Therefore, this paper is focussing specifically on an energy drink company and their potential customers, in order to compare and contrast their thoughts on sponsorship including whether they believe sponsorship is a key component in building awareness of energy drink companies. Methodology - This paper used purely qualitative data from primary collection methods. An individual interview and a focus group were conducted in order to fully gauge opinions and feelings towards various brands within the energy drink market. By using primary qualitative data, a deep understanding was able to be obtained as to what affects brand awareness. Findings - The evidence suggests that sponsorship very much has an impact upon the brand awareness that potential customers have. However, this brand awareness doesn’t necessarily lead to product purchase. Instead there are other factors that need considering in order to move customers from awareness to purchase. That being said, sponsorship was shown to have a strong impact upon brand recognition which ultimately gives energy drink companies a platform from which they can convert awareness to purchase. Originality - The exploratory paper was written to fill a previously unwritten aspect of sponsorship and its effects in a specific product based market (energy drinks). This paper has opened the door to further potential studies regarding sponsorships involvement in ii
  • 3. other product based markets, also whether sponsorship can be used by a wide range of companies in order to boost brand awareness. Keywords - Brand awareness, Energy drink companies, Sponsorship, Sports sponsorship Paper type - Dissertation iii
  • 4. Acknowledgements The author wishes to express thanks to all those who have assisted and advised during this project, with particular mention of: Mr. Amit Sra 1 SRA LTD t/a Jaguar Energy Drink UK CEO Miss. Bina Modi 1 SRA LTD t/a Jaguar Energy Drink UK PA and Office Co-ordinator Mr. M. Parsons, University of South Wales Dissertation Supervisor Dr P. Stephens University of South Wales Head of Marketing iv
  • 5. Contents Abstract i Acknowledgement ii Contents iii List of Tables iv List of Figures v 1. INTRODUCTION 1 2. LITERATURE REVIEW 3 3. METHODOLOGY 17 4. RESULTS AND FINDINGS 25 5. CONCLUSIONS 35 REFERENCES 38 APPENDICES 49 v
  • 6. LIST OF TABLES AND FIGURES List of Tables Page number 1. Reasons for entering into sponsorship 8 List of Figures 1. Persuasive Impact formula 16 vi
  • 7. Introduction Global energy drink sales reached €44 billion in 2014 (Fontinelle, 2015). This is a multi- billion pound industry that’s continually growing. Bailey (2015) points out that the global energy drink industry grew from $3.8 billion in 1999 to $27.5 billion in 2013. This is huge growth in what is still a very young industry. However, even in such a growth industry little research has been conducted into the specific marketing tactics used by energy drink companies to build their market share and attract new customers. Instead there has been vast amounts of research looking into the health and nutritional contents and the effects of consuming energy drinks (Reissig et al, 2009; O’Brien et al, 2008; Attila and Çakir, 2011; Thombs et al, 2011; Marczinski, 2011). Sponsorships can involve vast amounts of money. In 2014, global sponsorship spending amounted to $55.3 billion (Statista, 2015). See appendix 1 for 2007 to 2015 sponsorship growth. It is therefore important for any business to know that there is a return on investment (ROI) from that spending being either in the form of brand awareness, financial returns or any other objectives the business in question has set. Therefore, the purpose of this paper is to examine and identify whether or not sponsorship plays a key role in building the brand awareness of these energy drink companies. Sponsorship, in particular of sports, is used as part of many companies marketing strategies (Brassington et al, 2000; Crimmins and Horn, 1996; Hartland et al, 2005), of which energy drink companies are no exception. There is a lack of research into the effect that sponsorship has on brand awareness therefore, it is impossible for companies to establish whether or not it is valuable to invest their finite resources in. It is also important !1
  • 8. to discover whether the perspectives of the companies themselves match those of the target market, in terms of how and where they recognize brands operating in the market, and whether that awareness leads to increased sales. In general, there are vast amounts of research relating to brand awareness covering the methods of increasing and measuring it. However there is a lack of industry specific and method specific literature, of which the energy drink market is no exception. In order to obtain a full and balanced perspective, this study will look at the thoughts and opinions of both the energy drink companies and the potential consumers. This studies aim is to compare and contrast their perceptions, then analyse whether those thoughts and feelings regarding sponsorship and it’s impact on brand awareness are aligned. If not, it is important that the energy drink company understands the reasons behind the lack of mis-communication. By conducting an in-depth interview and focus group, this study will be able to fully gauge those opinions and understand the reasons behind them. Therefore the aim of this paper is to prove or disprove that sponsorship has significant effects on the brand awareness of energy drink companies, whilst also identifying whether there are differences or similarities in the perceptions of the company and consumers on sponsorship and brand awareness. !2
  • 9. Literature Review Sponsorships are increasing both in number and in proportion of companies’ budgets (Lamb et al, 2001). A number of reasons behind this trend have been identified. According to Jobber and Fahy (2009), these reasons are: the escalating cost of media advertising, restrictive government policies on advertising, the fragmentation of traditional mass media, the proven record of sponsorship and greater media coverage of sponsored events. Whilst these reasons are somewhat vague they do act as an anchor point upon which to build further research. Alone, sponsorship is not sufficient to constitute a whole marketing strategy, nor is it necessarily the most influential of marketing tools available (Meenaghan, 1991). However, it does appeal to organisations as a marketing communications medium because it can easily be tied to other marketing activities designed to influence both customers and strategic partners (Pickton and Broderick, 2005). What Pickton and Broderick (2005) try to point out is that in order to take full advantage of the effects of sponsorship, it should be used in conjunction with the rest of the marketing communications mix. Meenaghan (1983) writes in his research that with the varied usage of sponsorship it is difficult to state with certainty where exactly sponsorship fits within the marketing communications mix. This assertion implies that sponsorship covers, or at least has the potential, to fit a number of aspects of the communications mix. More companies are looking at using sponsorship for the very reason that it is able to cross over many areas of the marketing mix seamlessly whilst not being too costly. In addition to sponsorship having the ability to cover various aspects of the communications mix, there are also other reasons for it’s growth: !3
  • 10. • Sponsorship has increasingly been viewed as a way in which to generate audience awareness while at the same time creating an association between the values the sponsored event exemplifies and the sponsoring company (Meenaghan, 1996). • Concern over traditional promotional methods - as the number of commercial television and radio stations has risen, traditional advertising has produced a proliferation of messages within the medium. Sponsorship is seen as an alternative and often cheaper form of gaining exposure that avoids clutter and allows a sufficiently distinctive message to be seen and/or heard (Howard and Crompton, 1995). • Overcomes linguistic/cultural barriers - sponsorship also has the ability to transcend cultural and linguistic barriers. It is no coincidence that sport, the arts and music which have the ability to naturally cross these barriers, are the areas which receive the most amount of sponsorship funding. • Large target appeal - appeals to everyone from top down. Large audiences and viewership. • Overcomes legal barriers (Amis et al, 1999) • Selective Targeting - Sleight (1989) pointed out, sponsorship works because it fulfils the most important criterion of a communications medium - it allows a particular audience to be targeted with a particular message. (Pickton and Broderick, 2005). There are a number of categories of sponsorship available to companies, including sports sponsorship, endorsements, charitable donations, event sponsorship, broadcast sponsorship, product placement and venue sponsorship. Sports sponsorship is by far the biggest of the sponsorship categories, which accounts for 70% of spending (Lamb et al, 2001). This can range from the sponsorship of teams (Red Bull Salzburg), leagues !4
  • 11. (Barclays Premier League), competitions (Johnstone Paint Trophy) and even sponsorship of stadiums (Etihad Stadium). According to Jobber et al (2009), sports sponsorship is the most popular medium as it offers high visibility through extensive TV coverage, the ability to attract a broad cross-section of the community, to service specific niches, and the capacity to break down cultural barriers. Brassington et al (2000) agree with this statement, but goes one step further by saying that the mass audiences possible through television, even for some minority sports, enable the widespread showing of the sponsor’s name. With the increase in dedicated sports channels on television and through the internet, there has been an increase in the airtime given to less common or less popular sports. Looking at the sponsorship of a sports team or event, it has been proved that there is a positive relationship established between that of the sponsor and the fans of the team or event that has been sponsored. According to Donlan (2014), sponsored sports events positively impacts sponsor brand loyalty when customers are aware of the sponsorship and have some degree of involvement with the sponsored event. Wang et al (2012) looked at this and proposed that because of their perceived connection with a team, fans with fan identification will recognise themselves as in-group members, and will show in-group favouritism to other group members. Although this may be true, it doesn't look at how fans of other teams may look at a brand sponsoring a rival team/event. Although a company image may be built favourably with one group it may be excluding the large majority of fans that support other teams. Endorsements, because they involve individuals, are in some ways riskier than sponsoring a team or event Pickton and Broderick (2005). However, Pickton and Broderick (2005) do also go on to say that a successful endorsement deal can be used in an attempt to portray an image as an exciting, innovative company that sets it apart from it’s competitors. A !5
  • 12. recent interview with Vipe Desai, Monster’s director of action sports, events and partnerships marketing, highlighted the importance of image in terms of sponsorship: . IEG SR: Just about every energy drink brand is involved in sponsorship. How does Monster stand out . . . . . .? Desai: . . . . can look complicated, with Monster, Rock Star, Red Bull and others in the mix. We are involved in action sports and motorsports similar to other energy brands. But for us, it comes down to the personalities. It’s all about aligning with the right athletes and events. . . . . . . . . . .. . . .. We want athletes that represent that Monster DNA . . . . . .” (http://www.sponsorship.com/iegsr/2010/03/01/How-Monster-Energy-Uses-Sponsorship- To-Claw-Past-C.aspx, 2010) The above transcript shows how endorsements are used in conjunction with Monster Energy’s normal sports sponsorship. Endorsements, although risky, do have the potential to add personality and character to the brand; they give the brand a physical form that, as a member of a particular fan group, you can associate with. Event sponsorship can take the form of sports events, arts events or music events such as venues and festivals. In particular, Relentless Energy Drink focus on music sponsorship, part of that looks at Relentless aligning themselves with some of the biggest music festivals in the UK, such as Reading Festival (http://www.readingfestival.com/news/ relentless-back-reading-village) and joint sport and music festivals such as Boardmasters (http://boardmasters.co.uk). There are numerous music festivals in the UK alone every year which gives a wealth of opportunities for companies to associate with through !6
  • 13. sponsorship. Rowley et al (2008) looked at music festival sponsorship and came up with the assertion that: “Sponsorship of music festivals provides opportunities for targeted communication to the relatively homogenous festival audience comprised primarily of young people (Oakes, 2003). There has, however, been little research focussed on the impact of sponsorship of music festivals on brand awareness and engagement.” Meenaghan (1983, p.31-32) states: ‘In choosing a particular sponsorship the multi- dimensional aspects of the sponsorship personality must be considered.’ What he means by this is that when companies are choosing an event, team or sport to sponsor they must consider the personality of their company in conjunction with the sponsorship. For example, if an energy drink company wants to be associated with giving you energy, it should look at sponsoring energetic sports and events. Each of the big three areas of sponsorship have their own merits and drawbacks, but all of them open up a wealth of opportunities for the sponsoring company. However, in order to ensure that sponsorship is used as effectively as possible, the sponsoring company will need to have clearly defined objectives for sponsorship and a method of which to monitor its effectiveness. Without either of these a company will never know whether the money invested into the sponsorship was worthwhile or not. Before any company invests money into sponsorship, the objectives and reasons behind the investment must be carried out. According to Crowley (1991), arts sponsorship was more favoured for achieving objectives relating to community relations and reaching !7
  • 14. opinion leaders, while sports was the preferred medium of communication with the buying public. However, McDonald (1991) states; there is no doubting still some companies which go into sponsorship with no more than a vague feeling that they ought to do something charitable, or because there are opportunities for corporate entertaining, or because the cause is dear to the chairman, and which look no further for proof of effectiveness than a high profile recognition in the media. In the main, companies need objectives in order to maximise return on investment. These objectives can vary widely depending on the company, the industry and the companies management. Enhancing a companies brand image and reputation, are cited as the most important reasons for a firm to enter into a sponsorship agreement (Meenaghan, 1991; Mintel, 1994; Witcher et al., 1991). This however, does not mean that brand image is the only objective companies focus on. In 1983 Meeaghan produced a concise table from his research which outlined the main reasons for companies to carry out sponsorship: (Meenaghan, 1983) !8
  • 15. This table breaks down into clear percentages the reasons companies gave for entering into sponsorship. The main reasons according to Meenaghan (1983) are in response to requests and to build corporate image. The latter of the two is something that other authors go on to agree with, however ‘in response to organisations’ assumes that the businesses in question weren’t seeking sponsorship in the first place, which may not have been true. It does however possibly back up McDonalds (1991) argument that companies may enter sponsorship without clear reasoning. From Meenaghan’s (1983) research into the reasons for sponsorship, other authors have come up with other ideas. Abratt et al. (1987) produced a list of such objectives for sport sponsorship and suggested that potential television coverage, promoting corporate image and the opportunity for media coverage were the most important reasons given by the 45 corporations who responded to their study. In a similar piece of work, Witcher et al. (1991) surveyed 140 large commercial organisations and found the main objectives cited were the promotion of corporate image, television, radio and press exposure, and the promotion of brand awareness. Other authors have also provided what they believe to be the objectives of sponsorship. Rowley et al (2008) and Pelsmacker et al (2005) believe that the main reasons for companies to use sponsorship in their marketing strategy are identified as to: increase brand awareness, create brand image, re-position the brand/product in the minds of consumers, increase profit over a short period, and achieve a larger market share. Donlan et al (2014) believes that the objectives aren’t too dissimilar to those Rowley presented, and states: the objectives pursued through sponsorship differ between sponsors of different product categories and individual sponsors. Nevertheless, it is a widely held belief that commonly sought objectives include awareness (Verity, 2002); image/positioning !9
  • 16. benefits (Hartland et al., 2005); corporate hospitality opportunities (Quester, 1997); and, to a lesser extent, sales (Tomasini et al., 2004). All the authors’ research points to building brand image and awareness as a key component in the reasons behind the growth of sponsorship and the reason that the majority of companies are choosing to invest in sponsorship opportunities. Brassington et al (2000) state: While some sponsorship does have altruistic motives behind it, it’s main purpose is to generate positive attitudes through associating the corporate name with sports, the arts, charitable enterprise or some other activity. He also goes on to say that sponsorship does seek a return, however indirect it may be, although it is mainly about image building rather than selling a product as such. Garnder and Schuman (1987) write that companies can effectively reach specific target groups with well-defined messages; they are powerful tools for establishing meaningful communications links with distributors and potential consumers. The above extracts agree with the other authors examined, who believe that sponsorship is more about communication that the selling of goods and services. For energy drink companies, sponsorship has been used as an opportunity for consumer trials and giveaways in order to encourage potential consumers to taste and enjoy the product. Howard and Crompton (1995) suggested attempting to move a customer from the interest stage of the product adoption process to the desire stage, the stage which involves a serious evaluation about whether or not to purchase a product. For companies wishing to enter into a crowded market, sponsorships can give great opportunities for the company to showcase its product and drive potential customers into actual customers. Jobber et al (2009) states in his work: Both the sponsor and the sponsored activity become involved in a relationship with a transfer of values from activity to sponsor. The !10
  • 17. audience, finding the sponsor’s name, logo and other symbols threaded through the event, learns to associate sponsor and activity with one another. This may be why building brand imagery and awareness is such an important objective for many companies. As mentioned earlier, it is also crucial that companies carefully consider sponsorship options, as they will be associated with that particular brand, event or person for good and bad. Well-directed sponsorship can do much to enhance the perception of a company and, possibly, it’s products. Conversely, ill-designed and badly thought-out sponsorship may have at best no effect at all or, at worst, backfire (McDonald, 1991). There are many advantages and disadvantages to the use of sponsorship over any other medium of marketing communications: One of the first key advantages of sponsorship is that it creates and builds a relationship, with Jobber et al (2009) saying that both the sponsor and the sponsored activity become involved in a relationship with a transfer of values from activity to sponsor. The audience, finding the sponsors name, logo and other symbols threaded through the event, learns to associate sponsor and activity with one another. These associations have the potential to turn the favourability of a brand and boost it’s profile with a select audience. However, it must be noted that the opposite can also occur. If any negative associations are like with the sponsored team, event or activity then the negativity will also affect the sponsor itself. Because sponsorship can be unpredictable it is impossible to ascertain whether a negative or positive change will occur and when (Jobber et al, 2009) !11
  • 18. Fahy (2004) states that another potential advantage is that sponsorship has the potential to transcend cultural boundaries and is thus potentially the tool of choice for global marketers (Cunningham et al. , 1993; Miyazaki and Morgan, 2001). If we look at football for example, there are 209 associated countries within Fifa (http://resources.fifa.com/mm/ document/fifafacts/organisation/52/00/10/fs-120_01a_mas.pdf). You can see from the wide range of countries that are members of FIFA, that football has the potential to reach a diverse global audience. By using sponsorship, companies are able to have their brand displayed in various countries or various beliefs and cultures. However in recent times FIFA has been rocked by scandal, this has negative connotations for companies sponsoring the organisation and the events it holds. An advantage of sports sponsorship, in particular according to Brassington et al (2000), is that it has the added benefit that although people may ignore commercial breaks, they do pay attention when a ‘real’ programme is on, and therefore may be more likely to absorb the sponsor’s name. For companies seeking to build their brand and awareness they want their brand seen as often as possible for as little cost. On the other hand as a sponsor’s brand isn’t the core focus of the audience’s attention, it may not get noticed unlike with standard advertising. As the popularity of sponsorship has increased, so too has clutter (Cornwell et al, 2005). Formula 1 is probably one of the most noticeable examples of this with Monster Energy and Red Bull both involved. Formula 1 teams have sponsor logos all over the cars and drivers and it is becoming ever harder to distinguish who all the sponsors are. As this paper earlier established; one of the main reasons for companies to get involved in sponsorship is that it gives the company an identity and affinity with a particular sport or !12
  • 19. event. The presence of other sponsors influence communication processing; it can influence image, and potentially, image transfer (Ruth and Simonin, 2003). The biggest appeal for sponsorships are their ability to selectively target a set group of people, with either a shared ideal or shared set of beliefs/following. Sleight (1989) pointed out, sponsorship works because it fulfils the most important criterion of a communications medium. It is essential for any company to reach potential new customers or to reinforce their brand with current customers. Rowley et al (2008) believed that concerts are effective for targeting a young audience. Relentless Energy, are big sponsors of music festivals (http://www.relentlessenergy.com/?contentType=soundchain ) and have even created their own festival in order to be able to directly target new and current customers. It was mentioned earlier in this paper that brand awareness was a major objective of sponsorship for companies. Brand awareness is defined as a rudimentary level of brand knowledge involving at the least, recognition of the brand name (Hoyer and Brown, 1990). Many authors write about the benefits to companies of increased brand awareness: The two most important intangible resources are company/brand image and reputation (Conner, 1991; Grant, 1991; Hall, 1992). Rowley et al (2008) in their research agreed with this but focused slightly more on pure branding by saying that brand awareness, brand re- positioning and brand image were the 3 main reasons for sponsorship. It has long been held that one of the major goals of marketing is to generate and maintain brand awareness (MacDonld and Sharp, 2000). According to Naik et al (2008), it’s well known that companies especially big ones spend millions on advertising and other marketing techniques in order to boost brand awareness for the business and/or it’s products. Sponsorship is often used as a key influencer on brand awareness and !13
  • 20. according to Donlan (2014) there is a very clear agreement and focus about using sponsorship for brand building purposes. A positive relationship between sponsorship exposure and brand awareness has been found (Quester, 1997; Bennett, 1999; Rines, 2002), suggesting that sponsorship is a legitimate tool for brands wanting to gain exposure in order to build awareness (Donlan, 2014). After establishing that sponsorship and brand awareness are linked and that sponsorship is used in building awareness, it’s important to understand why brand awareness is a goal for businesses, and what it is used for. MacDonald and Sharp (2003) looked at the reasons behind brand awareness in their research and say Rossiter and Percy (1987) describe brand awareness as being essential for the communications process to occur as it precedes all other steps in the process. Without brand awareness occurring, no other communication effects can occur. For a consumer to buy a brand they must first be made aware of it. Brand attitude cannot be formed, and intention to buy cannot occur unless brand awareness has occurred (Rossiter & Percy 1987; Rossiter et al. 1991). As the energy drink market is an emerging market, it is possible that some people will have no previous knowledge of many energy drink brands. Subjects with no brand awareness tended to sample more brands and selected the high-quality brand on the final choice significantly more often than those with brand awareness (Hoyer & Brown, 1990). This would mean high end energy drinks i.e. Red Bull are the most likely to be sampled by subjects with this limited knowledge, however previous research has consistently shown that consumers in blind taste tests are unable to detect their own preferred brand (Hoyer and Brown, 1990). Blind taste tests are not something that are carried out regularly, so !14
  • 21. new customers will make their purchase choices upon brand awareness and prior knowledge. This is why brand awareness is such an important intangible asset to businesses. Brand awareness serves as a dominant choice tactic among inexperienced consumers presented with a brand-selection task (Hoyer and Brown, 1990). If a customer is unaware of a brand, then there is a high probability they won’t purchase their product. Hoyer and Brown (1990) point out the awareness of a brand is the dominant reason for purchasing a product among inexperienced customers. However it must be noted that awareness is only the first step towards purchase, as Hoyer and Brown (1990, p.141) also go on to say: Awareness represents the lowest end of a continuum of brand knowledge that ranges from simple recognition of the brand name to a highly developed cognitive structure based on detailed information. Recognition is taken here to be the process of perceiving a brand as previously encountered (Mandler 1980). Thus, the distinction between awareness and recognition is a subtle one, the former denoting a state of knowledge possessed by the consumer and the latter a cognitive process resulting from awareness. By using sponsorship as a tactic in order to boost brand awareness, businesses are far more likely to initiate brand recognition and therefore increase the likelihood of increasing subsequent sales. Sponsorship has the additional benefit in that it creates a stimulus and therefore creates a memory which will serve as a reminder for potential future purchases. For example, seeing Manchester City FC win the Premier League at the Etihad Stadium, !15
  • 22. will resonate with people as they will remember seeing the match there, therefore recall the Etihad stadium. Brand recognition occurs in stimulus-based situations, and recall occurs in memory-based situations. Both types of awareness would occur in mixed-choice situations (Macdonald and Sharp, 1996). Awareness and recognition are important, but Roy and Cornwell (2004) go one step further by saying although awareness is a valid objective for sponsors, it is pointless unless image transfer takes place. The length of time that sponsorship occurs is a key driver in ensuring brand recall, due to the increased chance of memory creation. There has been research carried out that shows the impact that length of sponsorship has upon the building brand awareness, and the residual brand awareness that is left after a sponsorship agreement has ended. Crimmins & Horn (1996) came up with a diagram to show the impact that length of time had on the persuasive impact that sponsorship had on potential customers. Source: Crimmins and Horn (1996, p. 13) What the diagram shows is that the level of persuasive impact aka. brand awareness, is determined by a number of factors, mostly how long the sponsorship has been associated with the team/activity/event, and how strongly the sponsor is associated with the event/ activity/team (whether it’s a main sponsor or sub-sponsor). Donlan (2014) writes in his !16
  • 23. work that the longer the relationship between a sponsor and a sponsored property, the stronger will be both consumer affect and opinion towards the sponsoring brand. !17
  • 24. Methodology Identifying and examining whether sponsorship is the key component in building brand awareness for energy drink companies In order to establish whether sponsorship is the key component in building brand awareness for energy drink companies, it’s important to find the right methods of research. The research approach will aim to discover a number of facts and opinions regarding individual and company perspectives on the energy drink market. The research will also seek to find out firstly whether sponsorship is a component of building brand awareness, then further decide to what extent it is the key factor in building that awareness. Secondly this paper shall look at what people define as brand awareness, and how they perceive the actions of companies attempting to increase their brands’ profile. The final part of the research will look at whether the perceptions and opinions of the market are matched by those within the market itself. This is because if the perceptions and opinions of the company and consumer are conflicting, this may lead to wasted time and resources. Resources that could be used to better effect in activities the are beneficial to the company. Research Approach Researchers such as Mason (2006), state that mixing qualitative and quantitative methods has come to be seen in some quarters as intrinsically a ‘good thing’ to do. However, the research methods used in this paper will need to be able to collect a variety of data based !18
  • 25. on two core areas: sponsorship and brand awareness. It is now widely accepted in literature that brands are built through a combination of rational and emotional elements and that emotions evoked by brands may enhance buying and consumption processes (Hirshman and Holbrook,1982; Zambardino and Goodfellow, 2007). Quantitative methods being statistical based do not allow people to express emotional responses, or allow participants to reveal the basis surrounding their emotional responses. It is for this reason that this paper will focus purely on qualitative research instead. Any distinction between qualitative and quantitative approaches is at best approximate, for both types of research are umbrella categories that cover many different actual methods (Gummesson, 2005; Long et al., 2000; Wilson and Natale, 2001). The biggest difference between the two methods is that qualitative tends to be less representative of the general or targeted population than quantitative research. Demgard et al (2001) states that qualitative studies cannot be as representative as quantitative studies. However it must be noted that there are areas in which qualitative research can be enhanced to increase its representativeness. Diversity is represented through a wide range of qualitative data collecting techniques, for example, observations, in-depth interviews, and group interviews (Demgard et al, 2001). The real difference between the two methods is that in qualitative unlike quantitative research, much reliance has to be placed on the researcher's interpretation of the data collected, rather than on the suitability or robustness of a particular technique of statistical analysis. (Christy and Wood, 1999). Despite the benefits of quantitative research, in recent years a growth in the use of qualitative methods in business to business research has been observed (Damgaard et al, 2001; Attride-Stirling, 2001). Qualitative researchers typically study a relatively small number of individuals or situations and preserve the individuality of each of these in their !19
  • 26. analyses, rather than collecting data from large samples and aggregating the data across individuals or situations (Maxwell, 1996). This means that the data provided from the research is a lot more detailed. Maxwell (1996) goes on to further say the qualitative researchers, tend to ask how ‘x’ plays a role in causing ‘y’, and what the process is that connects ‘x’ and ‘y’. This is what makes qualitative better than quantitative researching, in finding out the reasons for a phenomenon over than just discovering if a phenomenon exists. Maykut & Morehouse (2004) agree with Maxwell (1996) by writing in their work that the qualitative researcher attempts to gain an understanding of a person or situation that is meaningful for those involved in the inquiry. Sampling With regards to sample size, for a market in which there are large numbers of interesting possibilities, small sample sizes carry the risk of excluding some of them altogether (Christy and Wood, 1999). Quantitative research is perfect for this as it is simplistic, therefore easier to obtain a larger number of respondents. However for this paper, it is essential to gain a deeper understanding of the reasons and the processes behind brand awareness. Maxwell (1996) states that qualitative and quantitative methods are not simply different ways of doing the same thing. Instead, they have different strengths and logics and are often best used to address different questions and purposes. Qualitative marketing research usually involves intensive research with small samples; the focus is typically on the depth of understanding achieved within the confines of the sample (Christy and Wood, 1999; Seale, 1999; Flick, 2009; Whittemore et al, 2001). This is accordingly an excellent approach for obtaining a better insight into reasons behind choice. Mason !20
  • 27. (2002), however, states it is a much more complex and exhausting task to plan and carry out a qualitative interview than, for example, to develop and use a structured questionnaire for asking a set of predetermined questions. According to Grimmer (2007) the aim of qualitative research is to produce insight rather than measure, to explore rather than pin- down. It is a tool to be used to identify potential thought processes and ideas, not produce statistical evidence. Mason (2006) expands upon this by stating researchers should use ‘qualitative thinking’ more as a starting point than a definitive framework, and as a way of transcending boundaries rather than reinforcing them. The strengths of qualitative research derive primarily from its inductive approach, its focus on specific situations or people, and its emphasis on words rather than numbers (Maxwell, 1996). Thomas (2006) states that the purposes for using an inductive approach are to (a) condense raw textual data into a brief, summary format; (b) establish clear links between the evaluation or research objectives and the summary findings derived from the raw data; and (c) develop a framework of the underlying structure of experiences or processes that are evident in the raw data. The general inductive approach provides an easily used and systematic set of procedures for analysing qualitative data that can produce reliable and valid findings. Although the general inductive approach is not as strong as some other analytic strategies for theory or model development (Thomas, 2006), it does provide a simple, straightforward approach for deriving findings in the context of focused evaluation questions. Many evaluators are likely to find using a general inductive approach less complicated than using other approaches to qualitative data analysis. For this paper, one focus group interview and a one on one interview were conducted. The single interview will be held with the CEO of an energy drink company (Jaguar Energy Drink, http://www.jaguarenergydrinkuk.com). This will allow for a company’s perspective on the product, market and methods of building brand awareness. !21
  • 28. The focus group session will provide in-depth data regarding respondent views on the energy drink industry, the individual brands and how they believe energy drinks are promoted. In order to obtain a general view of the population we will look at involving 6 participants per group, who will answer a range of qualitative questions. The participants will be selected using a mix of convenience sampling (Patton, 1990) and homogenous sampling (Patton, 1990). The reason for this is to actively seek people who have an interest in the energy drink market, to get a consumers perspective. The reason behind convenience sampling is down to the cost of the study. It is cheap and simple to carry out this method of sampling, but also won’t negatively affect the validity of the study. Data collection procedure The data will be collected using two different methods, both of which will be based purely to receive qualitative data. For this paper, one in-depth interview will be carried out with the CEO of an Energy Drink company. The second method of data collection will involve one focus group, involving 6 people. For the interview, a recording and transcript will be written, this will allow for detailed questions to be asked and answered. It will also give a deep insight into the thought processes behind company actions; however there will be a lack of statistical data received. This is because the interview will be based around knowledge building, and qualitative questioning. Therefore all information received will be collected in the form of a transcript, from which detailed answers can be extrapolated. !22
  • 29. In general the usefulness and validity of focus groups data are affected by the extent to which participants feel comfortable about openly communicating their ideas, views or opinions (Stewart and Shamdasani, 2015). For this reason the focus group meetings will be held in a neutral environment where the participants can feel free to express their views. A bar will be used for this purpose, as it is where the participants may feel at ease, as it is linked to leisure time in a relaxed environment. Focus groups are inherently social phenomena, and it is important to understand the complex and dynamic social context in which group interviewing takes place (Hollander, 2004; Tubbs, 2011). Each focus group will last approximately 1.5 hours until a saturation point is reached, when newly acquired data is redundant with previously collected data (Glaser and Strauss, 1967; Guba, 1978). Data analysis The data received from the focus group and individual interview will be in the form of words, not numerical data, which will make the data much harder to analyse. However that being said, it will still be relatively noticeable if there are any trends or common themes. The results of both the focus groups and of the interview will be in the format of a transcript, which will be extrapolated from recording the entirety of the sessions. The content will be analysed with the aim of discovering patterns and trends in the responses of the participants in the focus group, then compare those results with the transcript from the one-on-one interview. According to Elo et al. (2014) qualitative content analysis can be used in either an inductive or a deductive way. Both inductive and deductive content analysis processes involve three main phases: preparation, organisation, and reporting of results. For this paper an inductive analysis approach will be utilised. In the inductive approach, the organisation phase includes open coding, creating categories and !23
  • 30. abstraction (Elo & Kyngäs, 2008). By categorising the responses, in-depth insights regarding the thoughts and feelings of the consumer with those of the company will be collated. If they are not aligned the results of the interviews should reveal why, and identify possible methods of synchronising the actions of the company with the actions of the consumer. Limitations of Methodology As with any methods of research there are a number of potential limiting factors, which have to be monitored and controlled in order for them not to negatively affect this paper’s results. The first potential limitation is sample size. Christy and Wood (1999) say that small sample sizes carry the risk of excluding some of the various possibilities. However, that being said, the ideal standard for qualitative sample size is to interview to redundancy (Bernard, 2011). Another potential limitation of the research methods will be that with the individual interview, although it will be in-depth, it has the potential to become biased. This is because it is the view of only one CEO of a single energy drink company; however it is a method that has the potential of enhancing the quality and quantity of research data (Darbi and Hall, 2014). It is for this reason that the one-on-one interview is to be used for initial research and information finding and not quantitative/statistical results. Focus group discussion guides often tend to include too many questions, which often make the experience more like a within-group survey than interactive discussion (Stewart and Shamdasani, 2015). Maxwell (1996) also said it is possible for your questions to be !24
  • 31. too focused; they may create tunnel vision, leaving out things that are important for the purposes or context of the study. In order to counteract this open questions will be used to cover key points, with very few set questions, in order to prevent any leading questions, but still allow the ability to steer conversation in order to maximise results. !25
  • 32. Findings and Discussion Following both the one-on-one interview and the focus group, a wide range of qualitative data was obtained. Both research methods provided ample qualitative data, that can be analysed to draw out key themes and concepts that are compared and contrasted with prior research. The collection and analysis of primary data also provides an opportunity to assess whether the views and opinions of the business align with those of the target market and potential customers. The basis of this paper is to discover the extent to which sponsorship is the key component in building brand awareness for energy drink companies. Therefore both the individual interview and focus group were both geared and aimed towards meeting that end. However, due to the nature of these types of research and the subject being studied there are no set answers. All answers regarding brand awareness is accordingly based on personal thoughts and opinions which inherently possess a potential for bias (Darbi and Hall, 2014). However, although there was the potential of bias, the research project nevertheless provided an in-depth insight into the individuals’ perceptions of the energy drink market compared to the perceptions that the companies operating within the market possess. The first key theme to draw out from the research are the reasons behind the purchase of energy drinks. Firstly looking at the individual interview with Mr Amit Sra from Jaguar Energy Drink UK, the question was asked about the reasons he thinks that people buy energy drinks; !26
  • 33. “BR - Why do you believe that people buy energy drinks? AS - People lead hectic lifestyles and it’s only getting busier. Through research it was noted that people aged 18-39 require energy pick me up, faster than coffee – this is due to hectic lifestyles. No waiting around for it to be made or to cool down - just pick up a can and drink. People need this quick energy. During the focus group, a very similar question was asked, but the responses differed; “BR - Why do/would you buy a can or cans of energy drink? If you wouldn’t . .why not? EW - . . . the taste. . . . . GC - I used to buy, not just for the function of energy, but for taste, but now care what I'm putting into my body, and look into the contents and read what exactly they put into the product. JB - Used to in university for essay deadlines. I thought it would help concentrate, especially if needed an all nighter. MP - I used to drink them for the caffeine prior to exercise, or sports in general to give me energy for the game. Stopped due to sugar content. Still have with alcohol on nights out. JB - I don’t have them with alcohol anymore because of the side effects . . . . . press about how mixing can have negative side effects on your heart. EW - I don’t drink them with alcohol as I can’t really sleep after. . . . GC - I used to have them before gym, but they just gave me heart burn. CS - I never used to, but recently started. The one which I go for is…based purely on taste. It’s also quite good on long drives late at night.” !27
  • 34. This simple question drew out a number of important insights; the first of which being that it’s primarily due to hectic lifestyles and people needing a pick-me-up generally day-to-day, but also for quick energy. The response from the focus group however, pointed out more of a link to sports and alcohol. That being said, a number of respondents didn’t buy energy drinks due to health concerns. Following the responses, it’s important to then look at who the energy drinks are aiming to target, and whether or not the customers agree with that, and whether they see themselves as being targeted by an individual company or by the industry as a collective. Depending on which target market the energy drinks are aimed at, the methods in which a company will try to build brand awareness will have to change. In this research we uncovered that multi-dimensional aspects of the sponsorship personality must be considered (Meenaghan, 1983). Therefore a number of questions were asked to establish who the target market was, and what methods of brand awareness were being used to achieve those goals: “BR - What are your brand awareness goals? AS - We want to further penetrate our targeted 18-39 age group. We also want to make sure that they aren’t just the perceived market and they are actually the ones buying the products. We want to be recognised and utilised by both men and women – don’t want to be seen as a single sex brand…expand our UK growth, then look at expanding abroad. BR - What methods of increasing brand awareness do you use? !28
  • 35. AS - …concentrate on Premier League Football – especially in the long term . . . . powerful social media presence and impact…have an exclusive premier league deal with Manchester City Football Club. . . . . . . . BR - Why do you use those methods? AS - …high viewership!...as many people as possible to see and associate with the brand as Football is the most watched sport in the world…”
 From the above responses it is clear that as a company Jaguar know who they want to target, and the methods they are using to achieve that. This is in line with the research carried out previously. Jobber et al (2009) wrote how sports sponsorship is used because of its extensive TV coverage and its attractiveness to a large cross-section of people. Picton and Broderick’s (2005) work also links to this when they wrote about sports sponsorships are increasingly being used to generate audience awareness. Similar questions were then asked to the focus group in order to gauge their thoughts on the same issues. “BR - How do you think energy drink companies mostly promote their brands? MP - Sports…extreme sports and adrenaline sports. GC - I haven’t seen any traditional style adverts…instead link themselves in with sports and people. CS - Sponsoring things…Try to use word of mouth. They try and seem cool and quite young. MP - Relentless is more nightclub scene…They seem really into the music side of energy. !29
  • 36. JB - Use slogans. I.e. Gives you wings. Unleash the beast. Memorable, they stick in your mind. EW - Most of them seem to be linked with the music and adrenaline sports markets BR - What age group do you think energy drinks are aimed at? EW - Late teens to 30ish CS - 18-30 year olds. JB - Yeah,18-30 year olds MP - …16 - 28 GC - I would say younger more like 13. CS - I say 18-30 because they are the most active and they are the most influenced by the marketing tactics they employ. BR - Are you talking about social media? CS - Not really, just generally being cool and young. Associations with Jägermeister, which is also a young brand.” From the focus group responses, it is a fair assessment that overall the perceived target market is pretty in line with Jaguar Energy’s target market, which is a big positive for the company. However it seems from the focus group that at present energy drink companies are seemingly focused on music and adrenaline sports more than the main stream sports that Jaguar seeks to be aligned with.
 Another key theme to be taken from the interview and focus group is that of the brands recognised, the differences between the brands and the extent to which sponsorship plays !30
  • 37. a part in building said brand awareness, and whether brands are recognised directly from their affiliation with a particular sport, event or other activity. This corresponds with Wang et al’s (2012) work because of energy drinks perceived connection with a team or activity, fans with fan identification will recognise themselves as in-group members. If an individual follows a sport which an energy drink company sponsors, then they are more likely to identify that particular brand as it fits within their interests and lifestyle. “BR - How many energy drink brands can you name? GC - Red Bull, Relentless, Monster, Rockstar, Pussy. MP - Sainbury’s own is Bolt. Lucozade. EW - Emerge I think is Tesco’s own CS - Energise is Morrsion’s own. JB - Shark in Glam nightclub. JB - Kick in Oceana, tastes like feet. BR - Do you know of any sponsorship deals that these energy drink companies undertake? If so please say. CS - Red Bull air race. MP - …Monster sponsor someone in MotoGP (Valentino Rossi). JB - …Black Energy, had a link with Mike Tyson. EW - …know they do general adrenaline sports. JB - Monster sponsor things like drifters and motor sports. JB/MP - maybe some Xbox stuff… !31
  • 38. MP - Small brands don’t bother sponsoring. Supermarket brands rely on the branding of the bigger brands like RB to feed on. You’ll notice the brands and cans are pretty similar therefore don’t both sponsoring. BR - Why do you think Energy Drink companies use sponsorship? In particular the big brands. CS - Piggy back off other peoples and teams successes. .. . . . MP - . . . . tapping into fans of the person/team that’s sponsored. JB - …associations with extreme activities over their competitors. MP - As James said to keep up with their competitors... JB - Felix Bawngoartner got on the news and Red Bull was mentioned everywhere. It really helps to make their brand talked about and distinctive.”
 This section of the focus group highlighted the perceived affinity that the energy drink market has with the adrenaline sports market and sports in general. This is in-line with previous research by Jobber et al (2009) who wrote that both sponsor and sponsored activity become involved in a relationship with a transfer of values from activity to sponsor. It also highlights how the members of the focus group know the area’s of the market the energy drinks target, however as they are not active within that market they are unclear as to the specifics regarding the sponsorships. In the literature it was noted that certain brands seek to align themselves with certain activities or sports. It was mentioned that Relentless align themselves with music (http://www.relentlessenergy.com/? contentType=soundchain), this was something recognised in the focus group. However along with some of these positives regarding brand awareness, some of these sponsored !32
  • 39. activities can reflect badly on energy drink companies, this was highlighted in the focus group: “JB - I think brands like Red Bull are promoting dangerous behaviour. There are YouTube video’s of people trying to copy Felix Bawngoartner’s stunts, some of them end up in the person getting hurt.” This comment coincides with Pickton and Broderick’s (2005) research which examined the risky nature of endorsements. Some of these risks backfire on the company and paint it in a bad light, increasing brand awareness with a negative impression, not a positive as the company would want. A prominent example of this was in 2012, when it was discovered Lance Armstrong had been using anabolic steroids. Following this a number of high profile sponsorships came to an end including a deal with Nike (http://www.theguardian.com/ sport/2012/oct/17/nike-lance-armstrong-misled-decade). Another key theme to draw out from the research is that both in focus group and the interview, taste was a recurring theme. EW - Because of the taste… CS - Based on taste and price… MP - I would probably buy Lucozade, purely because of taste…. “ MP - Quality wise they are exactly the same. Taste wise Lucozade Energy is the best . . . . . All of the above look at taste as an overriding determinant of a purchasing decision. This appeared to be in line with the opinion of Jaguar Energy too, who value taste highly on their set of personal attributes. However, in the literature Hoyer and Brown (1990) pointed out the awareness of a brand is the dominant reason for purchasing a product among inexperienced customers. !33
  • 40. BR - How do you think the average consumer would see Jaguar Energy in comparison to other energy drink brands? AS - …taste profile is fundamental to us hence why the company is confident that our product will stand out from the crowd. Therefore it could be assumed from the results, that for energy drink companies sponsorship is key to generating brand awareness, whether it be through associations with sports or individuals. However, brand awareness doesn’t necessarily lead to product purchase. Roy and Cornwell’s (2004) work cited in the literature agreed with the above statement by saying: although awareness is a valid objective for sponsors, it is pointless unless image transfer takes place. This is something that energy drink companies must be aware of, as awareness of the brand appears to be only a part of a purchasing decision process. The research clearly highlights the knowledge that potential customers have of energy drink companies in general, this is shown by the question above ask the participants to recall names of energy drink companies. They recalled a 9 brands as well as being able to link most them to sponsorships that they are or have been involved in. In the earlier research we established that brand awareness serves as a dominant choice tactic among inexperienced consumers presented with a brand-selection task (Hoyer and Brown, 1990). The focus group however, tended to disagree with this. A number of them said if they had to make a choice on energy drinks, that they weren't aware of, they would purchase the cheapest one. They see cost as a major factor in the purchasing decision over brand awareness. Roy and Cornwell (2004) pointed out in their work that brand awareness is pointless unless transfer occurs. This is shown in the above extract, where a number of !34
  • 41. brands were recalled, but very few of the participants said they would purchase products from those brands. “MP - If I was to buy one of the other brands, then i’d just go for a cheap supermarket own brand, I think they all just taste the same… Even if a company effectively sponsors an individual or event, and successfully generates brand awareness, it still may not translate into increased purchases. This, according to the CEO of Jaguar Energy, is the core measure of success or failure; “BR - How do you currently measure your brand/marketing success or failure? AS - We look at financial returns” !35
  • 42. Conclusion and Recommendations The purpose of this paper was to discover whether sponsorship was the key component in building brand awareness for energy drink companies. All elements that make up this paper have been designed to reach that goal. During the research for this paper, it was evident that there was very little industry specific content on sponsorships effect upon brand awareness. There were however, large amounts of research looking individually at sponsorship, brand awareness and their effects on each other. Many authors cited the possible benefits of using sponsorship as a key part of a company’s overall marketing strategy (Brassington et al, 2000; Lamb et al, 2001; Jobber and Fahy, 2009; Meenaghan, 1983; Rowley and Williams, 2008; McDonald, 1991). Therefore it was clear that sponsorship was seen as an intrinsically good thing to integrate into an energy drink companies marketing mix. Further research into sponsorship shows that it is a higher risk strategy with a number of potentially very damaging consequences (McDonald, 1991). Overall the majority of authors seem to agree that largely, sponsorship provides more benefits than carries risks, as long as it is conducted correctly. In terms of brand awareness, there is a lot of disagreement over the effect brand awareness has on purchasing decisions (Macdonald and Sharp, 2000), how you build brand awareness (Naik et al, 2008) and what measures are used to determine its success (Quester, 1997). That being said, the research did point out that sponsorship can be and is effectively used in order to build brand awareness. It must be noted though, that this can work both ways i.e. good sponsorships will create positive brand awareness, however !36
  • 43. seemingly negative sponsorships can also boost brand awareness, but not to the desired effect. The purpose of the individual interview and the focus group was to build a real-world and in-depth understanding of people’s thoughts and feelings towards brands, and how they see the energy drink brands in the industry. By examining the views of the company as well as the consumer a deep and comparative insight was gained into the thoughts, feelings and opinions of sponsorship and brand awareness within the energy drink market. It is key to note that many of the points raised in the focus group and interview aligned themselves with the review of the literature previously. An example of this is when Jaguar Energy state that they are targeting high viewership sports for increased visibility, which agrees with Brassington et al (2000). Overall the thoughts and opinions of the customer seemed to largely echo the views of the company. Most of those views also tied into the review of the literature, which largely pointed out that sponsorship is a key component in building brand awareness for energy drink companies. The participants of the focus group point out that that they are aware of a brand through their involvement with sponsorships, however this doesn’t necessarily lead to resulting purchases. In order to further prove or disprove that sponsorship is indeed the key component in building brand awareness for energy drink companies, future research should involve a larger sample size, along with a sample size that is more varied in terms of gender and demographics. Although the sample collected provided this paper with a wealth of high quality information, it may have been limited due to the small sample size. !37
  • 44. This study faced only a few limitations. The biggest of those was the issue of sampling, and purely qualitative data. Although purely qualitative data provided rich content for analysis, it does make a representative view of the UK population harder to attain. This is a limitation that isn’t easily addressed, but one that is achievable. Despite the noted limitations of this study, it has been successful. It has identified and compared the views of a company and it’s potential customers. It has also discovered the extent to which companies are perceived and remembered due to their sponsorship activities. It has also added to the existing literature that looks at sponsorship and how it is used as a successful marketing tool. This paper has paved the way for further research to be conducted into sponsorships effect on brand awareness in other product centred markets, not necessarily the energy drink market. This further research will aid companies operating in various markets to assess whether or not to use sponsorship as part of their brand awareness building activities. !38
  • 45. Bibliography Abratt, R., Clayton, B.C. and Pitt, L.F. (1987). ‘Corporate objectives in sports sponsorship’. International Journal of Advertising, Vol. 6 (4), pp. 299-311. Amis, J., Slack, T., Berrett, T. (1999). ‘Sport sponsorship as distinctive competence’. European Journal of Marketing, Vol. 33 (3/4), pp.250 - 272. Attila, S., and Çakir, B. (2011). ‘Energy-drink consumption in college students and associated factors’. Nutrition, 27(3), 316-322. Bailey, S. (2015). Why Monster Beverage is a dominant energy drink player. Available at: http://finance.yahoo.com/news/why-monster-beverage-dominant-energy-150416779.html (Accessed: 06/04/15) Barney, J.B. (1991). ‘Firm resources and sustained competitive advantage’. Journal of Management, Vol. 17, pp. 99-120. Bennett, R. (1999). ‘Sports sponsorship, spectator recall and false consensus’. European Journal of Marketing, Vol. 33 (3/4), pp. 291-313. Boardmasters (2015). Boardmasters | Home Available at: http://boardmasters.co.uk (Accessed: 16/12/14) !39
  • 46. Brassington, F. and Pettitt, S. (2000). Principles of Marketing. 2nd Edition. Harlow: Prentice-Hall Cornwell, T. B., Weeks, C. S., and Roy, D. P. (2005). ‘Sponsorship-linked marketing: Opening the black box’. Journal of Advertising, 34(2), 21-42. Conner, K. R. (1991). ‘A historical comparison of resource-based theory and five schools of thought within industrial organization economics: do we have a new theory of the firm?’. Journal of Management, Vol. 17, pp. 121-54. Crimmins, J. and Horn, M. (1996). ‘Sponsorship: from management ego trip to marketing success’. Journal of Advertising Research, 36(4), pp. 11–21. Crowley, M. (1991). ‘Prioritising the Sponsorship Audience’. European Journal of Marketing, Vol. 25 (11), pp. 11 - 21 Cunningham, P., Taylor, S. and Reeder, C. (1993). ‘Event marketing: the evolution of sponsorship from philanthrophy to strategic promotion’. Proceedings of the 6th Conference on Historical Research in Marketing and Marketing Thought, Michigan State University, East Lansing, MI. Donlan, L. (2014). ‘An empirical assessment of factors affecting the brand-building effectiveness of sponsorship’. Sport, Business and Management: An International Journal, Vol. 4 (1) pp. 6 - 25 !40
  • 47. Elo, S., Kääriäinen, M., Kanste, O., Pölkki, T., Utriainen, K., and Kyngäs, H. (2014). ‘Qualitative content analysis a focus on trustworthiness’. SAGE Open, 4(1) Elo, S. and Kyngäs H. (2008). ‘The qualitative content analysis process’. Journal of Advanced Nursing, 62, 107-115. Fahy, J., Farrelly, F., Quester, P. (2004). ‘Competitive advantage through sponsorship’. European Journal of Marketing, Vol. 38 (8), pp. 1013 - 1030 FIFA. About FIFA. Available at:http://resources.fifa.com/mm/document/fifafacts/ organisation/52/00/10/fs-120_01a_mas.pdf (Accessed: 29/11/14) Flick, U. (2009). An introduction to qualitative research. Sage. Fontinelle, A. (2015). The Energy Drinks Industry. Available at: http:// www.investopedia.com/articles/investing/022315/energy-drinks-industry.asp (Accessed: 06/04/15) Gardner, M. and Shuman, P. (1987). 'Sponsorship: An important component of the promotions mix', Journal Of Advertising, 16 (1), pp. 11-17 Gault, N. (2003). ‘Sponsorship with a strategy’. Brand Strategy, 176 (32). Glaser, B. G. and Strauss, A. L. (1967). The discovery of grounded theory. Chicago: Aldine Grant, R.M. (1991).’ “The resource-based theory of competitive advantage: implications for strategy formulation”, California Management Review, Vol. 33 (3), pp. 114-35. !41
  • 48. Guba, E. G. (1981). ‘Criteria for assessing the trustworthiness of naturalistic inquiries’. Educational Communication and Technology Journal, 29, pp. 75-92. Hall, R. (1992). ‘The strategic analysis of intangible resources’. Strategic Management Journal, Vol. 13, pp. 135-44. Hartland, T., Skinner, H. and Griffiths, A. (2005). ‘Tries and conversions: are sports sponsors pursuing the right objectives?’. International Journal of Sports Marketing & Sponsorship, Vol. 6 (3), pp. 164-173. Herrmann, J. L., Corneille, O., Derbaix, C., Kacha, M. and Walliser, B. (2014). ‘Implicit sponsorship effects for a prominent brand’. European Journal of Marketing 48: 3/4. Holbrook, M. B. and Hirschman, E. C. (1982). ‘The Experiential aspects of consumption: consumer fantasies, feeling, and fun’. Journal of Consumer Research, Vol. 9, pp. 132-40. Hollander, J. A. (2004). ‘The social context of focus groups’. Journal of contemporary ethnography, 33, 602-637. Howard, D. R., & Crompton, J. L. (1995). Financing sport. Morgantown, WV: Fitness Information Technology, Inc. Hoyer, W. D. and Brown, S. P. (1990). ‘Effects of Brand Awareness on Choice for a Common, Repeat-Purchase Product’. Journal of Consumer Research, 17 (9), 141-8. !42
  • 49. IEGSR. (2010). How Monster Energy Uses Sponsorship To Claw Past Competition. Available at: http://www.sponsorship.com/iegsr/2010/03/01/How-Monster-Energy-Uses- Sponsorship-To-Claw-Past-C.aspx (Accessed: 01/12/14) Jobber, D. and Fahy J. (2009) Foundations of Marketing. Berkshire: McGraw-Hill Higher Education Koch T., Harrington A. (1998). ‘Reconceptualizing rigour: The case for reflexivity’. Journal of Advanced Nursing, 28, 882-890. Lamb, C. W and Hair, J. F and McDaniel, C. (2012). MKTG 5: Student Edition. USA: Cengage Learning Lee, J. and Ferreira, M. (2011). ‘Cause-related marketing: the role of team identification in consumer choice of team licensed products’. Sport Marketing Quarterly, Vol. 20 No. 3, pp. 157-69. Lincoln, Y. S. and Guba, E. G. (1985) . Naturalistic Inquiry. California: Sage Publications Macdonald, E.K. and Sharp, B.M. (2000). ‘Brand awareness effects on consumer decision making for a common, repeat purchase product: a replication’. Journal of Business Research, Vol. 48 (1), pp. 5-15. Macdonald, E. K. and Sharp, B. M. (2003). ‘Management Perceptions of the Importance of Brand Awareness as an Indicator of Advertising Effectiveness’. Marketing Bulletin 14: article 2. !43
  • 50. Mandler, G. (1980). ‘Recognizing: the judgment of previous occurrence’. Psychological Review, Vol. 87, pp. 252-271. Marczinski, C. A. (2011). ‘Alcohol mixed with energy drinks: consumption patterns and motivations for use in US college students’. International journal of environmental research and public health, 8(8), 3232-3245. Martensen, A., Grønholt, L., Bendtsen, L. and Juul, M. (2007). ‘Application of a model for the effectiveness of event marketing’. Journal of Advertising Research, Vol. 47 (9), pp. 283-301. Mason, J. (2002). Qualitative researching. 2nd Edition. London: Sage Publications Mason, J., Roger, B. and Cochetel, F. (2006). ‘Residual Brand Awareness Following the Termination of a Long-term Event Sponsorship and the Appointment of a New Sponsor.’ Journal of Marketing Communications, 12 (2), 125-144. Maxwell, J. A. (1996). Qualitative research design: An interactive approach. Thousand Oaks, CA: Sage. Maykut, P. S., & Morehouse, R. E. (2004). Beginning Qualitative Research, A Philosophic and Practical Guide, London: The Falmer Press. McDonald, C. (1991). ‘Sponsorship and the Image of the Sponsor’. European Journal of Marketing, Vol. 25 (11), pp. 31 - 38 !44
  • 51. Meenaghan, J. A. (1983). ‘Commercial Sponsorship’. European Journal of Marketing, Vol. 17 (7), pp. 5 - 73 Meenaghan, T. (1991). ‘The role of sponsorship in the marketing communications mix’. International Journal of Advertising, Vol. 10, pp. 35-47. Meenaghan, T. (1996). ‘Ambush Marketing - a threat to corporate sponsorship’. Sloan Management Review, 38 (1), 103-113. Meenaghan, T. (1998). ‘Current Developments and Future Directions in Sponsorship’. International journal of Advertising. 17 (1), pp. 3-28. Mintel (1994), Sports Sponsorship, Mintel International Group Limited, London. Miyazaki, A.D. and Morgan, A.G. (2001). ‘Assessing market value of event sponsorship: corporate Olympic sponsorships’. Journal of Advertising Research, Vol. 41 (1), pp. 9-15. Naik, P. A., Prasad, A., Sethi, S. P. (2008). ‘Building brand awareness in dynamic oligopoly markets’. Manag. Sci. 54(1): 129–138. O’Brien, M. C., McCoy, T. P., Rhodes, S. D., Wagoner, A., & Wolfson, M. (2008). ‘Caffeinated cocktails: energy drink consumption, high‐risk drinking, and alcohol‐related consequences among college students’. Academic Emergency Medicine, 15(5), 453-460. !45
  • 52. Oakes, S. (2003). ‘Demographic and sponsorship considerations for jazz and classical music festivals’. The Service Industries Journal, Vol. 23 (3), pp. 165-78. Olson, E.L (2010). ‘Does sponsorship work in the same way in different sponsorship contexts?’. European Journal of Marketing, Vol. 44 (1/2), pp.180 - 199 Patton, M. Q. (1990). Qualitative Evaluation and Research Methods. 2nd Edition. California: Sage Publications. Pelsmacker, P., Geuens, M. and Van den Bergh, J. (2005). Foundations of Marketing Communications: A European Perspective, Prentice-Hall, Harlow. Pickton, D. and Broderick, A. (2005). Integrated Marketing Communications, Pearson Education Limited, Harlow. Quester, P.G. (1997). ‘Awareness as a measure of sponsorship effectiveness: the Adelaide Formula One Grand Prix and evidence of incidental ambush effects’. Journal of Marketing Communications, Vol. 3 (1), pp. 1-20. Quinn, E. (1982). Sponsorship as a Marketing Tool. University College of Dublin: Unpublished MBS thesis Reading Festival (2014). Relentless is back in the Reading Village. Available at: http:// www.readingfestival.com/news/relentless-back-reading-village (Accessed: 16/12/14) !46
  • 53. Reissig, C. J., Strain, E. C., and Griffiths, R. R. (2009). ‘Caffeinated energy drinks—a growing problem’. Drug and alcohol dependence, 99(1), 1-10. Rines, S. (2002). ‘Guinness Rugby World Cup sponsorship: a global platform for meeting business objectives’. International Journal of Sports Marketing & Sponsorship, Vol. 3 (4), pp. 449-465. Rossiter, J. R. & Percy, L. (1987). Advertising and promotion management. New York: McGraw-Hill Rossiter J. R., Percy, L. and Donovan, R. J. (1991). ‘A better advertising planning grid’. Journal of Advertising Research, 11-21. Rowley, J. Williams, C. (2008). ‘The impact of brand sponsorship of music festivals’. Marketing Intelligence & Planning, Vol. 26 (7), pp. 781 - 792 Roy, D. P. and Cornwell, T. B. (2004). ‘The effects of consumer knowledge on responses to event sponsorships’. Psychology & Marketing, Vol. 21 (3), pp. 185-207. Ruth, J. A., and Simonin, B. L. (2003). ‘Brought to You by Brand A and Brand B': Investigating Multiple Sponsors’ Influence on Consumers' Attitudes Toward Sponsored Events’. Journal of Advertising, 32 (3), 19-30. Seale, C. (1999). ‘Quality in qualitative research’. Qualitative Inquiry, 5, 465–478. Sleight, S. (1989). Sponsorship: What Is It and How To Use It. McGraw-Hill. !47
  • 54. Stewart, D. W. (2015). Focus Groups - Theory and Practice. 3rd Edition. London: Sage Publications. Tomasini, N., Frye, C. and Stotlar, D. (2004). ‘National collegiate athletic association corporate sponsor objectives: are there differences between divisions I-A, I-AA, and I- AAA?’. Sport Marketing Quarterly, Vol. 13 (4), pp. 216-226. Thomas, D. R. (2006). ‘A general inductive approach for analyzing qualitative evaluation data’. American journal of evaluation, 27(2), 237-246. Thombs, D. L., O'Mara, R. J., Tsukamoto, M., Rossheim, M. E., Weiler, R. M., Merves, M. L., and Goldberger, B. A. (2010). ‘Event-level analyses of energy drink consumption and alcohol intoxication in bar patrons’. Addictive behaviors, 35(4), 325-330. Tubbs, S. (2011). A systems approach to small group interaction. New York, NY: McGraw-Hill. Verity, J. (2002). ‘Maximising the marketing potential of sponsorship for global brands’. European Business Journal, Vol. 14 (4), pp. 161-173. Wang, M.C., Jain, M., Cheng, J.M. and Aung, G.K. (2012). ‘The purchasing impact of fan identification and sports sponsorship’. Marketing Intelligence and Planning, Vol. 30 (5), pp. 553-566. Whittemore, R., Chase, S. K., & Mandle, C. L. (2001). ‘Validity in qualitative research’. Qualitative health research, 11(4), 522-537. !48
  • 55. Witcher, B., Craigen, J.G., Culligan, D. and Harvey, A. (1991). ‘The links between objectives and function in organizational sponsorship’. International Journal of Advertising, Vol. 10, pp. 13-33. Williams, M. (2012). Nike drops deal with Lance Armstrong after he 'misled us for a decade. Available at: http://www.theguardian.com/sport/2012/oct/17/nike-lance-armstrong- misled-decade (Accessed: 02//02/15) !49
  • 56. Appendix Appendix 1 Graph showing sponsorship growth in terms of US Dollars spent from 2007 to 2015 Appendix 2 Dissertation Interview With Mr Amit Sra (AS) – CEO of 1 SRA LTD t/a Jaguar Energy Drink UK and Ben Roberts (BR) BR - Why would the average consumer buy a can of Jaguar over a competitor? !50
  • 57. AS - The reasons are 3 fold. Firstly the price point, we have set this at 99p per can in order to be consumer friendly. Secondly the quality and aesthetics of the product, thirdly the nutritional content and our product has lower calories than that of the market leader. Research studies have been applied in the past for the soft beverage industry to establish what demands are needed. Through this, as a company it was clear to say a 250ml can at £1.00 fits for the expectation to the general public for a high quality product. BR - What are your perceptions of other companies and how is Jaguar different? AS - We want to differentiate ourselves from the rest. Others are really focused on the high energy, high octane sports and events. As a company, the healthier side of the market is what attracts and appeals to us as many people are more health conscious in today’s beverage market. We believe the high octane market is becoming saturated, so we are positioning ourselves differently from a niche premium angle. BR - How do you think the average consumer would see Jaguar Energy in comparison to other energy drink brands? AS - I think they will see us with the other energy drinks, on the same shelves in the same shops. However they will see us a premium product that stands out from the rest. As a company, the taste profile is fundamental to us hence why the company is confident that our product will stand out from the crowd. BR - Why do you believe that people buy energy drinks? AS - People lead hectic lifestyle and it’s only getting busier. Through research it was noted that people aged 18-39 require energy pick me up, faster than coffee – this is due to hectic lifestyles. No waiting around for it to be made or to cool down - just pick up a can and drink. People need this quick energy !51
  • 58. BR - What methods of increasing brand awareness do you use? AS - The company are to concentrate on Premier League Football – especially in the long term whereby we look at building a powerful social media presence and impact. At the moment, we aren’t pushing social media but we monitoring it to see if and how much we grow organically. In terms of our football presence, we currently have an exclusive premier league deal with Manchester City Football Club. Furthermore in the past our work has been applied with local league football clubs like Accrington Stanley, one of the UK’s oldest football clubs. BR - Why do use those methods? AS - Simply high viewership! We want as many people as possible to see and associate with the brand as Football is the most watched sport in the world. By being involved in this sport brings a wealth of opportunities. BR - Why do you use sponsorship? AS - We want to show company growth. Sponsorship is fundamentally the most powerful growing tool of marketing. From this you can find endless opportunities to extend your competitiveness e.g. by increasing our image and luxury profile in sponsoring high profile brands like; Manchester City Football Club. BR - Who else do you sponsor? AS - Our current sponsorships are; Manchester City Football Club and USW Hockey. BR - Are there any others? AS - We also sponsor a number of charities such as Hire a Hero, Footsteps and Make a Wish Foundation. We want to look at real growth as sponsoring charities is very much part !52
  • 59. of that. Being from a medical background I know exactly what great work charities do and I want the charity work to always be in our minds. I want to pay back to the community. BR - What do you think is the best method for increasing brand awareness? AS - To be different, that’s exactly what we want and what are trying to do. We have a product that looks attractive. We want rapid growth. BR - How much money do you spend specifically on sponsorship? AS - We spend what we can. If we have a budget, we spend it. However we must have a return on investment (ROI) that is the bottom line. With charities we don’t look at ROI, we look at it in other terms. Charitable work is a responsibility we take seriously. BR - How do you currently measure your brand/marketing success or failure? AS - We look at financial returns BR - What are your brand awareness goals? AS - We want to further penetrate our targeted 18-39 age group. We also want to make sure that they aren’t just the perceived market and they are actually the ones buying the products. We want to be recognised and utilised by both men and women – don’t want to be seen as a single sex brand. Lastly, as a company we want to further expand our UK growth, then look at expanding abroad. BR - What do you define as success and growth in the UK? AS - To be on every shelf in the UK in 4 years and the aim is to be 25% in the next 24 months. BR - Do you think that’s a very ambitious target? !53
  • 60. AS - We are very ambitious and aggressive in the market. We believe we have the right product at the right price. We now just need it in all the right places. A key component of that will be our point of sales promotions and marketing materials. Reason being was whilst at university I saw many students consume a lot of energy drinks especially in the build up to exams. This is an ever-growing market. Appendix 3 Dissertation Focus Group Present: BR - Ben Roberts (Host) GC - Grant Cawley MP - Matthew P-J JB - James Baker CS - Chris Saunders EW - Ed Wallett 1) BR - Why do/would you buy a can or cans of energy drink? If you wouldn’t . .why not? EW - Because of the taste. They are super refreshing if they are cold. GC - I used to buy, not just for the function of energy, but for taste, but now care of what I'm putting into my body, and look into the contents and read what exactly they put into the product. !54
  • 61. JB - Used to in university for essay deadlines. I thought it would help concentrate, specially if needed and all nighter. MP - I used to drink them for the caffeine prior to exercise, or sports in general to give me energy for the game. Stopped due to sugar content. Still have with alcohol on nights out. JB/GC - Jager Bombs??? JB - I don’t have them with alcohol anymore because of the side effects like the crash after, and the press about how mixing can have negative side effects on your heart. MP - I like my teeth and don’t want to get fat. EW - I don’t drink them with alcohol as I can’t really sleep after. Usually it’s Red Bull Gc - I used to have them before gym, but they just gave me heart burn. CS - never used to, but recently started. The one which I go for is Lucozade Energy, based purely on taste. It’s also quite good on long drives late at night. 2) BR - What are your perceptions of energy drink companies themselves? GC/MP - Red Bull JB - extreme events GC - I used to break dance, and there is a breakdance comp called Red Bull BC1 (Breakdance champions 1). I’d say it was considered quite a cool sport. So I think that’s how Energy drink companies want to be perceived. MP - I’m a fan of formula 1, Red Bull are one of the top teams. This makes me think that they are a very big brand. !55
  • 62. BR - Do you know any other brands? What are your perceptions of those? EW - Probably not that good, but I don;t care. I think they do put addictive substances in, that wouldn’t surprise. JB - Monster I know sponsor other extreme sports. So I perceived them as being a more extreme company that focuses on action sports. CS - Rally Motocross again I see them as linked with action/adrenaline sports. What is ridiculous are those huge monster trucks they drive around. JC - More advertised in the more extreme sports. Like that guy who went into space - Felix Bawngoartner. 3) What do you think is different about each of the energy drink brands currently in the market? MP - Red Bull isn’t just an energy drink company. It’s stands out from the rest by having it’s name entwined with sports teams and sporting events. MP - Quality wise they are exactly the same. Taste wise Lucozade Energy is the best, however brand image wise Lucozade Energy is the worst. BR - Why do you think is Lucozade Energy the worst brand image? MP - It seems really dated, and out of touch. CS - It used to be linked with sports stars and olympians, now you see no adverts or promotion around it at all. MP - They seem more focussed on Lucozade Sport instead. !56
  • 63. GC - I love the orange one. JB - Red Bull is marketed as the premium brand, people are willing I think to pay more for it. EW - Caffeine contents differs quite a lot, so does sugar content. BR - Are you willing to pay more for a certain brand? EW - Hell yes, Relentless every time, because of the flavour. JB - No CS - Monster are more linked to 18-19 year olds, I think they are trying to get into more of a younger gaming market. MP - Monster cans are too big. They have like a million calories JB - I agree with Chris, they marketed at the more teenage market i.e. Xbox Live GC - Can of relentless to keep you awake, but that’s just not particularly distinctive about the company. 4) BR - How do you think energy drink companies mostly promote their brands? MP - Sports. Normally more extreme sports and adrenaline sports. EW - I just tried it once.. I don’t really notice anything else maybe because i;m not that sporty. GC - I haven’t seen any traditional style adverts for any brands, they instead link themselves in with sports and people. !57
  • 64. JB - Not seen the ‘Red Bull gives you wings’ adverts?? GC - Ok, maybe I have. CS - Sponsoring things. Not many do Tv ads any more. Try to use WOM (word of mouth advertising). They try and seem cool and quite young. MP - Relentless is more nightclub scene. That’s their brand. They seem really into the music side of energy. JB - I don’t see it there. GC - Rockstar Energy is the big one for that. JB - Use slogans. I.e. Gives you wings. Unleash the beast. Memorable, they stick in your mind. EW - Most of them seem to be linked with the music and adrenaline sports markets 5) BR - Do you buy brands or products? CS - Based on taste and price. Get the cheapest first then work your way up. Once I like a product I look at trying more of that brands products in the future. MP - I would probably buy Lucozade, purely because of taste. If I was to buy one of the other brands, then i’d just got for a cheap supermarket own brand, I think they all just taste the same. I’d go for the light versions though as lower sugar content. GC - I’m exactly the same, but if I were to buy a brand it would be Red Bull. BR - What about aspartame and other sugar replacements in ‘light’ energy drinks? GC -I’m aware but don’t know what it is !58
  • 65. MP - Most tested sugar substitute, so it’s actually really safe. It annoys me that people keep questioning without realising what it actually is. JB - Going back to the initial question, I would say a bit both in terms of product/brand. I like to try different flavours. Say for instance I have liked Relentless, so I would be more likely to choose a flavour that I know was in relentless more than others. If if was another brand with a flavour I didn’t know I don’t think i’d buy. EW - I pretty much only buy Relentless. 6) BR - Do you know of any sponsorship deals any energy drink company undertakes? If so please say CS - Red Bull air race. Can’t think of any others of the top of my head. MP - Red Bull don’t sponsor anyone! GC - Don’t they? MP - Yeah they buy the actual sports or franchise. They run their own events. They don’t sponsor they run them. Monster sponsor someone in MotoGP (Valentino Rossi). JB - Pussy Energy tried through controversial means to enter the market. Also Black energy, had a link with Mike Tyson. EW - I just know they do general adrenaline sports. But for me nothing springs to mind JB - Monster sponsor things like drifters and motor sports. JB/MP maybe some Xbox stuff?? The monster brand looks strong and prominent. !59
  • 66. MP - Small brands don’t bother sponsoring. Supermarket brands rely on the branding of the bigger brands like RB to feed on. You’ll notice the brands and cans are pretty similar. 7) BR - Why do you think Energy Drink use sponsorship? In particular the big brands. CS - Piggy back off other peoples and teams successes. The main reason really. MP - Generate more sales, by tapping into fans of the person/team that’s sponsored. GC - Same as what he said. JB - To make sure they have those associations with extreme activities over their competitors. GC - Aesthetically pleasing logo. The three claw marks. It sponsors to show off the distinctive brand. MP - As James said to keep up with their competitors. Lucozade have don't this that’s why we think their dated. JB - Felix got on the news and Red Bull was mentioned everywhere. It really helps to make their brand talked about and distinctive. 8) Do you think that energy drink brands appeal to your lifestyle? or try and fit themselves into your lifestyle? MP - They would fit into my lifestyle i.e gym ,sports and age, but I just don't want to. JB - Definitely more male orientated so I feel they are more targeted at me. !60
  • 67. GC - Nothing in gymnastics. No sponsors. Is it because it’s a minority sport? I don;t feel that they appeal to my lifestyle which is based around gymnastics. CS - don’t fit into my one I don’t think .I don’t think they specifically cater to a certain lifestyle anyway. I think they try and get into everyday life as much as they can, and try to appeal to everyone. EW - I don;t think they are aimed at me, but I think I know who they are aimed at. I’m not one of their typical customers. BR - Why do you think that? EW - They are supposed to be aimed at sportsmen and more active/outgoing people JB - Might appeal to people going out on a weekend to help them last a night. Keep on partying. BR - So would you say they are aimed at a younger market. What age group do you think energy drinks are aimed at? EW - Late teens to 30ish CS - 18-30 year olds. JB - 18-30 year olds MP - I would say 16 - 28 GC - I would say younger more like 13 when they stat becoming more active in online gaming. MP - I don’t think they go after that age, there are no adverts aimed at that market. GC - I think there is they aspire to be the people the brand represents, and see it all the time. !61
  • 68. CS - I say 18-30 because they are the most active and they are the most influenced by the marketing tactics they employ. BR - Are you talking about social media? CS - Not really, just generally being cool and young. Associations with Jaegermeister, which is also a young brand. 9) BR - How much would you spend on energy drinks? (£ per can) CS - £1.80 for a lucozade Energy bottle (500ml) GC - Big relentless, I wouldn't pay more than £2.50 per can. MP - Lucozade i’d pay £1.40 for and but I wouldn't buy a big can of Monster or Relentless because it’s too unhealthy. If I were to buy a smaller one, I would buy an unbranded one, and I wouldn't pay more than 60p. For a branded small can, no more than £1.20. JB - I’d pay up to £2 per can, buy if those were on offer, I would more likely buy the one on offer! EW - Any reasonable price for me. For the right can i’d pay up to £3. I wouldn’t even change for an offer. I’m one brand man. 10) Do you know how much energy drink is too much? (RDA’s) CS - No idea, couldn’t even guess. MP - More than a can a day. Disgustingly unhealthy !62
  • 69. GC - one every 2 days. MP - More than one a day is horrible. EW - 1 is probably too much. No more than one big one a day. GC - After one I getHeartburn. I feel horrible. JB - One per activity! 11) How many energy drink brands can you name? GC - Red Bull, Relentless, Monster, Rockstar, Pussy. MP - Sainbury’s own is Bolt. Lucozade. EW - Emerge I think is Tesco’s own CS - Energise is Morrsion’s own. JB - Shark in Glam nightclub. JB - Kick in Oceana, tastes like feet. 12) Who’s the biggest energy drink company in the world? Who’s got the best rep? All - Red Bull and I think they have the best reputation too. JV - The Apple of the energy drink market. !63
  • 70. EW - Yes has to be Red Bull in terms of size. I think Monster has a bad rep recently, i’ve heard bad things about people dying. I’ve not really heard bad press about Relentless. 13) Do you have any negative perceptions of the market? MP - Perceived as unhealthy CS - I think it helps fuel binge drinking especially within the much younger people. JB - Mixing with alcohol is dangerous, there has been a lot of negative press recently about that. JB - People can come dependent on them. G - Experience from friends is that they are bad. I’ve seen people who constantly drink them and they are usually quite fat. EW - I don;t think they care how unhealthy they are, or do any research into it. I’m addicted so I don;t really think about it, but I like to think my choice is one of the better ones. MP - My friend drank too much before a science class back in high school. Turned purple, started sweating and shaking. Not exactly a good image for energy drinks. CS - Do they do anything for the community?? GC - I don’t think so, not that I know of. JB - I think brands like Red Bull are promoting dangerous behaviour. There are YouTube video’s of people trying to copy Felix Bawngoartner’s stunts, some of them need up in the person getting hurt. !64
  • 71. 14) Positive perceptions? EW - Taste nice!! GC - quite cool. MP - Clean good branding. Formula 1 and football clean sports, but still quite extreme. EW - I think they may help people be more active. !65