This document is a research report on investigating the motivations of main sponsors of varsity rugby. It includes sections on the problem statement, research questions, goals and objectives, a literature review on motivations for sponsorship including strategy, corporate social responsibility, marketing, brand loyalty and personal motivations. It also discusses measuring sponsorship success, risks involved and the role of ethics. The literature review provides context on the varsity cup tournament structure and past sponsors Steinhoff and First National Bank. The methodology section outlines the research approach.

1. Investigation into the Motivation of Main Sponsors of Varsity Rugby
by
Ms JJ Knoetze 13061187
083 2980 530
knoetzejana@gmail.com
Ms N Tsoko 13226305
074 8916 759
nol.tsoko@gmail.com
Research Article
(KOB 795)
in the
DIVISION OF COMMUNICATION MANAGEMENT
FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES
UNIVERSITY OF PRETORIA
Study Supervisor:
Ms N du Plessis
Date of submission:
2016/12/05

3. i
MILESTONE 4 – COMPLETE RESEARCH REPORT
ASSESSMENT SHEET
ELEMENTS MARKS
1. TITLE /2
 Clarity of descriptive elements 0 1 2
2. EXECUTIVE SUMMARY /3
 Clarity and brevity of descriptive elements 0 1 2 3
3. PROBLEM STATEMENT /5
 Coherence in relation to the goal and
objectives
 Validity of assumptions regarding
research problem
0 1 2 3 4 5
4. GOAL AND OBJECTIVES /5
 Coherence in relation to the problem
statement and research question
0 1 2 3 4 5
5. LITERATURE REVIEW /20
 Relevance of theory related to the
research phenomenon
 Coherence of theoretical argument(s)
 Integration of different authors’ views
 Principles for academic writing
6. METHODOLOGY /25
 Clear and concise motivation for all choices for entire section
 Appropriate scientific vocabulary (i.e. quantitative OR qualitative)
 Research approach and design 0 1 2 3 4 5
 Sampling strategy 0 1 2 3 4 5
 Data collection strategy 0 1 2 3 4 5
 Data analysis strategy 0 1 2 3 4 5
 Principles for scientific soundness 0 1 2 3 4 5
7. LIMITATIONS /3
 Limitations and choices to combat
possible negative impact
0 1 2 3
8. ETHICAL CONSIDERATIONS /2
 Ethical considerations and choices to
combat possible negative impact
0 1 2
9. RESULTS AND INTERPRETATION /25
 Validity and accuracy of results
 Logical structure of results and
interpretation
 Style of presentation (tables, figures etc.)
 Linking interpretations to theory
0 5 10 15 20 25
10. CONCLUSIONS AND
RECOMMENDATIONS
/10
10.1 Conclusions
 Validity and accuracy
0 1 2 3 4 5
10.2 Recommendations
 Management recommendations
 Recommendations for further research
0 1 2 3 4 5
Subtotal: /100
Technical and editorial checklist: /-10%
TOTAL - EXAMINATION: /100

4. ii
DOCUMENT CHECKLIST
Dimension 1: General technical editing Yes No
Document structure
 Official assignment cover page 
 Document assessment sheet 
 This checklist 
 Declaration regarding plagiarism signed by all involved, signed either in
hard copy or digitally.
OR
 Turnitin report

 Executive summary, if required 
 Table of contents 
 Content/”Body” of assignment 
 List of references, if applicable 
 Annexures, if applicable 
Document template
 Follow the template instructions precisely, i.e. do not change the document
layout, headers/footers, font type/size, ink colour etc., unless instructed to
do so.

 Save document (which is ready for submission/printing) without “Track
Changes” or proofreading comments by a professional.

Overall page layout
 Normal (automatic) A4 page margins. 
 All text (headings, paragraphs) are “justified”, not “aligned left” with an
uneven right hand side.

 No heading/section starts near/at the bottom of a page. 
Page numbers
 Cover page: not numbered 
 Preliminary pages: small Roman numerals, i.e. i, ii, iii etc. 
 Main/”Body” pages: normal numbers, i.e. 1, 2, 3 etc. 
 Page numbers appear only at the bottom and centre of each page. 
 Annexure(s): normal page numbers continuing from the last page of the
List of References.

Line spacing
Avoid incorrect automatic line spacing by checking on “Line spacing options” and setting both
“Before” and “After” to zero.
 Table of contents to the end of the List of references: 1.5 line spacing 
 Contents of tables/figures: 1.0 line spacing 
 Insert an open line after every heading, every paragraph and the reference
details of every table/figure.

Font type and size
Any clear sans serif font type like Arial, Arial Narrow or Franklin Gothic Medium. (Sans serif
means “without fancy additions” to letters.)
 All headings (including Table of contents) and body text: 12pt 
 Contents of tables/figures: 9pt 
 Numbers, names and reference details of tables/figures: 12pt 

5. iii
Headings
 Use only first to third order headings, e.g.:
First order: “1. PRINCIPLES OF BAKING CHOCOLATE CAKES”
Second order: “1.1 Choosing ingredients for a chocolate cake”
Third order: “1.1.1 Problems associated with gluten-free baking”.

 Second and third order headings are only bold and only the first word of
these would start with a capital letter as in the examples above.

 Fourth order headings are rarely necessary, but if they are the same rules
apply as for the previous examples, e.g. “1.1.1.1 Alternatives to lactose in
chocolate cake ingredients”.

Capital letters
 Only first order headings are ALL CAPS and in bold, e.g.:
“1. PRINCIPLES OF BAKING CHOCOLATE CAKES”.

 Second and third order headings are only bold and only the first word of
these would start with a capital letter, e.g.:
“1.1 Choosing ingredients for a chocolate cake”
OR
“1.1.1 Problems associated with gluten-free baking”.

Highlighting/emphasising elements
 All headings/numbers and names of tables/figures are in bold. (Avoid
using both bold and underlined.) No other elements are in bold.

Tables/figures
 Number and name appear above the actual table/figure, e.g.:
“Table/Figure X: Chocolate production in Kenya 2000-2016”

 Source(s) are listed below the actual table/figure, e.g.:
“Source: Author(s) (Year: Page)

Subtotal: /-25
Dimension 2: Table of contents Yes No
 The numbers of all headings line up perfectly on the left, i.e. no indents even if
word processing software create these automatically – move the buttons on the
ruler at the top of the document until everything is lined up correctly.

 Page numbers align perfectly on the furthest most right hand side. (Indicate only
the starting page of each heading/figure/table/annexure etc.)

 All headings and page number corresponds perfectly with what appears inside the
document.

Annexures
 Number and name each correctly: “Annexure X: Name” and page number 
 Number, name and page number corresponds perfectly with what appears inside
the document.

 When submitting a hard copy of a project attach a ‘flag’ to the cover page of each
annexure which indicates their numbers.

List of tables (Starts on a new page, directly after the References)
 Number each: “Table XXX: Name of table” and indicate page number 
 Number, name and page number corresponds perfectly with what appears inside
the document.

List of figures (Starts on a new page, directly after the List of tables)
 Number each: “Figure XXX: Name of figure” and indicate page number 
 Number, name and page number corresponds perfectly with what appears inside
the document.

Subtotal: /-10

6. iv
Dimension 3: Language editing Yes No
 Document language is set on UK English throughout.
(The original language and spelling of journals, book and article titles
should be used in the List of references.)

 Proof read electronically and in hard copy for spelling, grammar and
punctuation. (Remove ‘track changes” before submission/printing.)

 Retain an objective writing style, i.e. not “I argue”, “in my opinion” or “we
feel”.

 Write in the active voice only. 
 Use Latin/French of other phrases correctly, sparingly and in italics, e.g.
“vis-à-vis”.

 Do an electronic thesaurus check for alternative words of overused
words/phrases

 Do electronic syntax (sentence structure) check. If a sentence is too long,
rather use more sentences which will ensure greater clarity.) Vary the
length of sentences.

 Use a variety of verbs when referring to authors’ viewpoints, i.e. “thought,
argued, stated, contended, viewed, saw, debated, postulated” vs. “said”.

 Stick to simple past tense when referring to what other authors have
written/argued.

 When numbering factors/elements in at the start of paragraphs, use “First,
Second, Third” etc. and not “Firstly” etc.

Subtotal: /-20
Dimension 4: Academic writing style Yes No
 Avoid lone standing subheadings, i.e. “1.1.1” under 1.1 and no 1.1.2 or
1.1.3. This means that 1.1.1 should be incorporated into 1.1.

 Each paragraph deals with only one idea and content that appears under
all headings/subheadings is relevant to the said headings.

 Paragraphs (sub-topics) are linked in a logical manner. 
 Every statement/argument is clear, concise and factually correct in terms
of the sources you consulted.

 No sweeping statements are made. 
 Avoid adjectives describing your own efforts, e.g. “important, thorough”. 
 End all sections with some sort of concluding remark/insight. 
 Integrate the views of various authors. Highlight the similar/contrasting
views of authors and explain the implications for your specific project.

 Bullet lists of factors/elements/reasons etc. are used very sparingly. (If
used, avoid numbering the contents of a list, but rather stick to bullets.)

 The length of sentences vary and longwinded ones rarely appear. 
 The length of paragraphs vary and longwinded ones rarely appear. 
 When discussing something related to a table/figure, an introductory
sentence/paragraph appears before the table/figure is presented.

 Verbatim quotes from sources are used sparingly and effectively. 
 Avoid over-reliance on specific sources in certain parts of the project. 
 The tone/style and level of argumentation/integration of views are
consistent across all sections.

Subtotal: /-30

7. v
Dimension 5: Referencing Yes No
 In-text referencing style:
According to the Departmental Guidelines

 In-text referencing style:
Where multiple sources are referenced in relation to a specific point, such
sources are listed in historical order, i.e. year of publication – from oldest
to newest.

 List of references:
According to the Departmental Guidelines
Sources listed in strictly alphabetical order

 All sources mentioned in the document are listed in the List of references,
while all sources in the List of references are actually used in the
document.
 All sources are listed in ONE List of references

 Quality of sources: Use the most recent sources, views and debates, while
ensuring that the most prominent authors on the topic are referenced.

Subtotal: /-15
TOTAL: /-100%

8. vi
COMMUNICATION MANAGEMENT
Declaration Regarding Plagiarism
The Division of Communication Management emphasises integrity and ethical behaviour with regard to the
preparation of all written assignments.
Although the lecturer will provide you with information regarding reference techniques, as well as ways to avoid
plagiarism, you also have a responsibility to fulfil in this regard. Should you at any time feel unsure about the
requirements, you must consult the lecturer concerned before submitting an assignment.
You are guilty of plagiarism when you extract information from a book, article, web page or any other information
source without acknowledging the source and pretend that it is your own work. This does not only apply to cases
where you quote verbatim, but also when you present someone else’s work in a somewhat amended (paraphrased)
format or when you use someone else’s arguments or ideas without the necessary acknowledgement. You are also
guilty of plagiarism if you copy and paste information directly from an electronic source (e.g., a web site, e-mail
message, electronic journal article, or CD-ROM) without paraphrasing it or placing it in quotation marks, even if you
acknowledge the source.
You are not allowed to submit another student’s previous work as your own. You are furthermore not allowed to let
anyone copy or use your work with the intention of presenting it as his/her own.
Students who are guilty of plagiarism will forfeit all credits for the work concerned. In addition, the matter will be
referred to the Committee for Discipline (Students) for a ruling. Plagiarism is considered a serious violation of the
University’s regulations and may lead to your suspension from the University. The University’s policy regarding
plagiarism is available on the Internet at http://www.library.up.ac.za/plagiarism/index.htm.
For the period that you are a student at the Department of Marketing and Communication Management, the
following declaration must accompany all written work that is submitted for evaluation. No written work will be
accepted unless the declaration has been completed and is included in the particular assignment.
Declare the following:
1. We understand what plagiarism entails and are aware of the university’s policy in this regard.
2. We declare that this assignment is our own, original work. Where someone else’s work was used (whether
from a printed source, the Internet or any other source) due acknowledgement was given and reference
was made according to departmental requirements.
3. We did not copy and paste any information directly from an electronic device (e.g., a webpage, electronic
journal article or CD-ROM) into this document.
4. We did not make use of another student’s previous work and submitted it as our own.
5. We did not allow and will not allow anyone to copy our work with the intention of presenting it as his/her
own work.
I (full names & surname): Johanna Jacoba Knoetze
Signature:
I (full names & surname): Noluthando Tsoko
Signature:

9. vii
TABLE OF CONTENTS
1. INTRODUCTION.................................................................................................................. 1
2. PROBLEM STATEMENT..................................................................................................... 2
3. RESEARCH QUESTIONS AND SUB QUESTIONS............................................................. 2
4. GOALS AND OBJECTIVES................................................................................................. 3
5. LITERATURE REVIEW........................................................................................................ 4
5.1. Motivations for sponsorship............................................................................................ 4
5.1.1 Strategy…........................................................................................................................... 5
5.1.2 Corporate social responsibility........................................................................................ 7
5.1.3 Marketing…........................................................................................................................ 7
5.1.4 Brand Loyalty..................................................................................................................... 9
5.1.5 Personal............................................................................................................................. 10
5.2 Measurement of success in sponsorships.................................................................... 10
5.3 Risks involved in sponsorships....................................................................................... 11
5.4 Role of ethics in sponsorships........................................................................................ 12
5.5 Varsity cup tournament structure................................................................................... 14
5.6 Varsity cup sponsors......................................................................................................... 14
5.6.1 Steinhoff............................................................................................................................. 15
5.6.2 First National Bank (FNB)................................................................................................ 16
6. METHODOLOGY................................................................................................................. 17
6.1 Research approach and design...................................................................................... 17
6.2 Sampling strategy............................................................................................................. 18
6.3 Data collection strategy................................................................................................... 18
6.4 Data analysis strategy...................................................................................................... 19
6.5 Data collection instrument.............................................................................................. 20
6.5.1 Types of sponsorships……………………………………………………………………………………… 21
6.5.2 Strategy…………………………………………………………………………………………………………… 21
6.5.3 Measurement………………………………………………………………………………………………….. 23
6.6 Principles for scientific soundness................................................................................. 24
7. LIMITATIONS...................................................................................................................... 25
8. ETHICAL CONSIDERATIONS............................................................................................ 26

10. viii
9. PILOT STUDY...................................................................................................................... 27
9.1 Logistics and ethical considerations.............................................................................. 27
9.2 Data collection instrument.............................................................................................. 28
9.3 Pilot study data................................................................................................................. 29
9.3.1 FNB...................................................................................................................................... 29
9.3.2 Steinhoff International..................................................................................................... 32
9.4 Data analysis process and results.................................................................................. 33
9.5 Measures for scientific soundness................................................................................. 34
10 RESULTS AND INTERPRETATION………………………………………………………………………. 36
10.1 Motivations……………………………………………………………………………………………………… 37
10.2 Measurement………………………………………………………………………………………………….. 39
10.3 Risk management…………………………………………………………………………………………… 40
10.4 Perceptions of ethical standards……………………………………………………………………… 41
11 CONCLUSIONS AND RECOMMENDATIONS ……………………………………….....…………… 41
11.1 Conclusions……………………………………………………………………………………………………… 41
11.2 Recommendations…………………………………………………………………………………………... 42
12 REFERENCES..................................................................................................................... 44
APPENDIX A: Interview Form……………………………………………………..…………..………… 53
APPENDIX B: Interview: Mr. Duitser Bosman………………………………………………..…… 54

11. ix
LIST OF TABLES
Table 1: Categories fir interviews and document analysis................................................ 22
Table 2: Key statistics of population demographics………………………………………………… 38

12. x
LIST OF FIGURES
Figure 1: Selection Criteria for commercial sponsorships................................................ 30
Figure 2: Selection criteria for non-profit/community activities...................................... 31
Figure 3: Steinhoff International Report Excerpt................................................................ 36

13. xi
EXECUTIVE SUMMARY
This document is compiled research into the motivations for the main sponsors of the
Varsity Cup. While doing the research it became clear why First National Bank and Steinhoff
International Holdings became part of the sponsorship of a varsity rugby tournament. The
findings are that these sponsors source new and lifelong clientele from this sponsorship and
that it builds their brands.
It also became clear that there are many motivations, measurement tactics, risk
management and ethical considerations that these sponsors take into consideration when
taking on any sponsorship. Varsity Cup presented them with an opportunity to win clientele
while considering risks involved and ethical perceptions.
Moreover, brought to surface was the issue of internal reporting by all parties, including the
sponsors and sponsees. Where information needed was not available to the public for
reasons unknown. We explore these discoveries for the purpose of investigating the
motivation of main sponsors of varsity rugby.

15. 1
1 INTRODUCTION
Sports sponsorships have been on the rise since the early 1980’s, when organisation realised
that they could reach an entire audience through sporting events (Javalgi, Traylor, Gross and
Lampman, 1994). It has become increasingly important both as a marketing tool for
companies and as a source of funding for sport culture and arts. Even though sponsorship for
arts has been increasing, the arts sector represents a minor share of 5% of total sponsorship
spending, compared to 69% in sports reports the IEG in 2014 (Lund & Greyser, 2015).
Sports sponsorships can mean a great deal of exposure for an organisation, if managed
correctly. It represents exchange relationships between sport organisers, corporations, and
other intermediaries where those relationships are based on maximizing rewards and
minimising risks for all parties involved (Copeland, Frisby & McCarville, 1996: 36).
Managing a sponsorship plan means carrying out the activities of selection, evaluation and
discontinuation. Therefore, sponsorship contracts include terms that have to be well planned,
met and fulfilled. Not only by those who are the direct recipients of the funds (sponsees), but
the management of the sponsoring corporative as well. That way, sponsorship managers
have a greater role to fulfil than only identifying recipients of sponsorships and allocation of
funds. The monetary value of sponsorships goes beyond the cost into the relationships,
image, and return on the investment – it is a form of marketing (Gardner & Shuman, 1987:
11).
The motivations for certain organisations to sponsor certain events seem unclear and
haphazard, however there could be a great deal of planning and reasoning that goes into the
choice for sponsoring an event.

16. 2
2 PROBLEM STATEMENT
Organisations can get a great deal of exposure and other benefits with taking part in sport
sponsorships. Collaborating with a sports type, team or person can help organisations gain
more marketing exposure with the people who watch sport and it can lead to shared
characteristics between the organisation and the sports type, team or person which creates
positive associations for all stakeholders.
There are always questions of motivation for certain types of sponsorships for organisations.
In this document a critical analysis and discussion behind the motivation for the two main
sponsors of the FNB Varsity Cup presented by Steinhoff International will be conducted. The
two main sponsors is First National Bank (FNB) and Steinhoff International.
As with any business venture, organisations face a risk when sponsoring a sports entity. It
becomes crucial for the organisation to identify the risks involved, so that they may see if the
benefits outweighs the risks and thus if it is a smart investment to make.
The problem lies within the clarity of the motivation for these two entities to sponsor a
university rugby league and will be discussed and analysed in this document.
3 RESEARCH QUESTION AND SUB QUESTIONS
Wagner, Kawulich and Garner (2012) identifies a research question to help the researcher
identify what they want to study, it helps to narrow down the research and provides the
researcher with the methodology they will choose to use.
Looking at the problem statement, the main question that needs to be answered is:
What is the motivation for the involvement with the Varsity Cup Rugby Tournament for the
two main sponsors?
Some of the sub questions could include:

17. 3
 How do organisations measure the success of sponsorships?
 How do organisations decide on what sports or sports persons to sponsor?
 What are the risks involved in sponsoring sports or sports persons?
 What ethical decisions are involved in making sponsorship decisions?
4 GOALS AND OBJECTIVES
Goals, according to Du Plooy (2009), can be divided into basic communication research goals
that aim to investigate or develop communication phenomena and applied communication
research goals which are when studies investigate practical issues. Wagner et al (2012) uses
the term uses and purposes in place of goals and objectives. They identify three purposes for
studies, which can be explanatory, exploratory and descriptive.
This research will set out to determine what the motivations are behind the two main
sponsors of varsity cup rugby. So the purpose of this study can be seen as exploratory as it is
an exploration into the motivations behind the sponsorships of a bank and an international
holdings company and what their motivations are behind the sponsorship.
Specific goals include:
 Determine motivations behind the sponsorship of varsity rugby for a bank and an
international holdings company.
 Determine how organisations measure the success of sponsorship decisions.
 Determine the risks involved in sponsoring sports or sports persons.
 Determine how ethical decisions play a part in making sponsorship decisions.

18. 4
5 LITERATURE REVIEW
A literature review is defined as a review of available and relevant literature published on a
certain topic to identify a gap in a field of study (Wagner et al, 2012).
The global authority on sponsorship and leading provider of sponsorship consulting, IEG,
defines sponsorship as cash or in-kind fees paid to a property in return for access to
exploitable commercial potential associated with that property (Ukman, 2015). Sponsorship
is increasingly taking the form of active partnership, moving away from transactional donor-
recipient arrangements (Lund & Greyser, 2015) and therefore constitutes as a two way
beneficial partnership.
5.1 Motivations for sponsorships
Sponsorship types are categorised into soft sponsorships, cost-reducing sponsorships and
cash sponsorships (Active Network, 2016):
 Soft sponsorships or “relationship-based” media partners generate free editorial
coverage or advertisements in exchange for media materials inserted into event
booklets/packets; offer free participation in the race for news anchors/journalists in
exchange for live news segment; and elevate exposure of the event with credible
partners. Major retailer/drug store chain create credibility for your event by involving a
major brand; create more distribution points for materials; and leverage relationships
with retailers to bring in major brands as vendors. Local car dealerships garner access
to courtesy vehicles and offer sponsored prizes/drawings.
 Cost-reducing sponsorships or barter partners alleviate a traditional expense, such as
food, beverage, or even legal advice in exchange for sponsorship exposure,
municipality or community association; and access discounted rates traditionally given
to non-profit or government organisations.
 Cash sponsorships are traditional sponsorships, such as a title sponsor who cover
expenses; increase exposure of both the sponsor and your event; create event
credibility; customise offerings (packages rarely succeed). Cash sponsorships tend to
require a longer sales cycle (at least six months) because actual budgets are involved.

19. 5
Sponsors need a definitive guide to how and why sponsorships work, what it is worth and how
results compare to advertising and sales promotion, sponsees understand why companies
sponsor, how they gauge return, where the money is going and where their property fits in
(IEG, 2016). In approaching sponsors individuals may choose to check the suppliers of their
sports clothing, food and equipment; they may research local businesses and target those
who could benefit from a partnership with them or their club (NSW Government, 2015).
5.1.1 Strategy
Strategy is direction, movement, purpose, a pattern, proactive, it determines success and
provides a framework for the effective and efficient tactics and operations necessary to carry
out the strategy (Aula & Mantere, 2008). Vision is a simple statement of where a firm is
going and what the organisation’s leaders want it to be in the future; mission is a declaration
of what an organisation stands for in relation to key organisational stakeholders (Carpenter &
Sanders, 2014). Vision and mission, therefore, reinforce and support strategy; conversely,
strategy provides a coherent plan for realising vision and mission (Carpenter & Sanders,
2014)
The typical sponsorship criteria, includes (Ukman, 2015): Image compatibility; audience
composition; the ability to incent retailers; the ability to leverage; media; exclusivity; product
showcase; the ability to impact consumer sales; efficiency; measurability; continuity or the
ability to extend; and ease of administration.
Investec (2016) for example, claims that there are no hard and fast rules as to who or what
they sponsor as they believe that opportunities come in different shapes and forms so they
sponsor both individuals and teams from local to international levels. The sports they sponsor
include golf, rugby, hockey and individuals such as 22-year old pro-downhill mountain racer,
Stefan Garlicki. Investec Property values long term relationships; supporting the world of golf
has fuelled this due to friendships that have been formed, and firmed up while playing golf so
it has worked well for them as a business (Investec, 2016). Looking at their intentions closely
we can see that Investec’s strategic goals are motivated by the desire to develop an efficient
and integrated business on an international scale through the active pursuit of clearly
established core competences in the group’s principal business areas (Investec 2016). That is

20. 6
why it made sense for them to build a reputation around the sport since many of their clients
(corporate) have a passion for golf.
In another example, an adult website, Ashley Madison offered national soccer team Bafana
Bafana a sponsorship deal of nearly R10 million. The CEO and founder Noel Bidderman said,
“sportsmen are famous for their cheating ways and we feel like linking our dating site with
this impressive club’s performance historically and tying into its future will create a powerful
partnership.” (The Citizen, 2013). SAFA spokesperson Dominic Chimhavi dismissed the offer
and said that the Bafana Bafana brand is a national asset and we wouldn’t want it associated
with something that will make it a laughing stock (The Citizen, 2013).
The Bedford Group: Marketing Management Consulting (2013) advises that a company
should quickly work to consolidate and consider a limited number of sports that best fit the
business goals as the company will gain more market benefit from having a concentrated
presence in soccer, basketball and ice-skating, for example, than a smaller presence in five
different sports depending on the market.
5.1.2 Corporate Social Responsibility
Corporate social responsibility is defined as the means of meeting the expectations of
stakeholders that is beyond charity or legal compliance (Doorley & Garcia, 2011).
Sponsorship is viewed favourable because it is seen as a form of marketing that gives
something back, that benefits someone else in addition to the marketer and implies a degree
of altruism absent from more commercial types of marketing (Ukman, 2015). Sponsorship
helps organisations to reflect these wider community interests and, as modern sponsorship
deals have become increasingly flexible, allow organisations to target sponsorship projects
more carefully (Business Case Studies, 2016).
Sports play an important part in our lives as they provide physical benefits since playing
sports can make you stronger and healthier; it promotes healthy socialising since friendships
are centred around a active lifestyle; it contributes to academic success as people who play
sports tend to perform better at school and a lower dropout rate; and it helps to build

21. 7
character values as it teaches honesty, fair play, discipline, self-respect, confidence and
managing stress (Rush, 2014). Not only that, sports provides jobs for people like the athletes,
coaches, physiotherapists, owners of sports areas, for example. So a sponsorship can be seen
to contribute to job creation.
5.1.3 Marketing
Marketing efforts are not to have complete measurable capability, but Ukman (2015) states
that sponsorship has been the fastest growing form of marketing over the past two decades,
outspacing the growth of measured media and sales promotion. Sponsorship has been the
fastest-growing form of marketing over the past two decades, outpacing the growth of
measured media sales promotion (Ukman, 2015). Marketing would seem to be the most
obvious return on the investment in sponsorship for a corporation as such partnerships
include advantageous sponsorship elements such as category exclusivity, onsite signage,
access to mailing list or database, broadcast advertisement opportunities, identity in property
collateral, presence on property’s website, participation in retailer promotion (Active Network,
2016). The most active users of sponsorship allocate an average of 23% of their overall
marketing budgets to sponsorship (Ukman, 2015).
Sport teams, sport persons and corporate companies look at their objectives before choosing
the party to seek sponsorship from or parties to sponsor. Sponsorship strategies are
managed by articulating the overall objective of their portfolio, the target demographic, which
stages of customer decision journey (awareness, consideration, purchase, loyalty)
sponsorship can support (Jacobs, Jain & Surana, 2014).
Sponsorships are about credibility and creating a relationship. Organisations want to ensure
that they target the right audience. Using rugby as an example, if a company manufacturing a
rugby kit were to sponsor a rugby team then their emblem would appear on kits where it
would be seen by those interested in rugby; those not interested would not be watching
(Business Case Studies, 2016)..
Viewership ratings are another factor to consider. In the global market, Premier League clubs
are renowned for revenue with a cumulative viewership of 4.7 billion viewers, 212 territories

22. 8
of coverage around the world as well as in-stadium, television print and online visibility
(Crook, 2013). In South Africa, BMI research shows that domestic football attracts higher
viewership than even English Premier Leagues such as Kaizer Chiefs and Orlando Pirates
derbies so companies who sponsor in domestic football enjoy more media exposure (Ntloko,
2015). Just as with the annual Carling Black Label Cup where football supporters are given
the opportunity to engage with the brand by choosing the team structure in those derbies.
Looking at cricket, a survey was done which shows that more women than men watch
Twenty20 and one-day cricket on the free-to-air broadcaster; for Twenty20s, 53% of the
respondents were women and 42% of total respondents were over 50; for one-day
internationals, 51% were women and 38% were 50 (Muller, 2014). This would explain why
Cricket South Africa official sponsors include Momentum Health, Spec-Savers, and RAM
Hand-to-Hand Couriers –products and services that appeal largely to that audience. On the
other hand match attendance by rugby fan boasts an average of 19 808 fans per game at
Ellis Park, the home venue of Lions (Sports 24, 2016). This allows for active engagement, if
planned well.
Sports sponsorships are particularly valuable in terms of coverage and frequency and can be
much more cost-effective than money spent upon more conventional advertising (Business
Case Studies, 2016). Sports sponsorships have high costs, but deliver high reach compared to
other options like music concerts (Jacobs, Jains & Surana, 2014). In addition, traditional
media (advertsing) is less effective than ever, much of the new media alienates customers,
for example, 75% of Americans find phone solicitation as an invasion of privacy when ads
pop-up (Ukman, 2015).
5.1.4 Brand loyalty
To create awareness and visibility, corporates enjoy benefits from sports sponsorships that
include category exclusivity, onsite signage, access to mailing list or database, broadcast
advertisement opportunities, identity in property collateral, presence on property’s website,
participation in retailer promotion (Active Network, 2016). A soccer match plays for 90
minutes a game, no half-time, extra time, opening and closing ceremonies included. What
opportunities does that give a brand in utilising that uninterrupted viewership time to share

23. 9
the intended message and fill the audience with a consistent image? For example, the 2011
Rugby World Cup had a combined audience of over 4 billion viewers, and the 2015 event
attracted 2.6 million fans to the live games where Heineken’s rugby sponsorship had laid out
a $138 million (McKenna, 2016). If even only half of those people who were directly reached
buy a bottle of Heineken at $1, the company has already made $2 billion in that investment.
That is a 1:14 ratio in returns on investment which Heineken could possibly gain since 50% of
their products are bought from 20 of those participating countries (McKenna, 2016).
Sponsoring to increase brand loyalty. There is an old statement that a brand that is not
recognised by a buyer is not a brand but just a marked product (Denoue & Saykiewicz, 2009).
Loyal customers are a company’s most valuable asset because the absence of tangible
differences among products has a simple but inescapable consequence: emotional logic is
the single most important driver of business (Ukman, 2015). When companies contribute to
sports programmes, that can evoke a community wide feeling that a company understands
the impact of sports for their youth; a feeling that can instil loyalty among a business’ current
and future patrons (Denoue & Saykiewicz, 2009).
Sponsorship helps to stimulate sales, trails and usage of the products they offer as an
alternative method to communicate sales methods in response to the fragmentation in the
mass market and mass media (Ukman, 2015). The idea is to find delivery systems that allow
companies to deepen their relationship with customers as it reaches people in an
environment that matches their lifestyle rather than introduces them upon it (Ukman, 2015).
Sometimes a corporate image needs change or reinforcement. This may require a company
to reach out to their communities in ways that are mutually beneficial to the corporate and
those who contribute to its success. The image of products, services, or brands can be
enhanced when a company aligns itself with the positive characteristics of a sports event or
successful sport athletes (Robert, et al., 1996, p. 33). This would explain why tobacco and
alcoholic beverage companies choose to associate their brands with sports by promoting a
healthy lifestyle while advertising products that are highly criticised as unhealthy habits.
Sponsorship as a tool for change management has been identified the top contributor to the
success of their change by participants of the 2013 Prosci benchmarking study.

24. 10
5.1.5 Personal reasons
Often sponsorships decisions are based on company tradition, school or geographic loyalties,
personal preferences and friendships rather than sound marketing analysis and principles
(The Bedford Group, 2013).
5.2 Measurement of success in sponsorships
Sport sponsorships are done by many companies, big and small and the success of these
sport sponsorships need to be measured. Organisations have to put measurement tools and
objectives in place whereby they want to measure the success or failure of something that
they put in place. Desorbes et al (2004) identified three major objectives of sport
sponsorships to organisations: communication, brand and commercial objectives (Richelieu
and Lopez, 2008: 225). Communication objectives can be referred to as informing or
creating visibility for the company through sport, while brand objectives is an increased
emotional connection that is being forged between the brand and the consumers using sport
as a bridge between the two (Richelieu and Lopez, 2008: 225).
The importance of evaluating the success of the sport sponsorship lies in the fact that
organisations need to know if the budget that they are allocating to the sport sponsorship is
worth it (O’Reilly and Madill, 2012: 51). Another factor that makes evaluation important is
the fact that companies need to see/experience the success of the sponsorship through
either monetary or non-monetary benefits that they receive from sponsoring the
event/person, such as image transfer (O’Reilly and Madill, 2012: 51). According to O’Reilly
and Madill (2012: 51), image transfer happens because a sponsor and sponsee
(event/person being sponsored) bring their own unique values and beliefs to the table, and
can be transferred to each other, in the mind of the consumer, with the associations made
between these two entities.
According to Javalgi et al (1994: 48) there are other measures for success of a sponsorship,
like an increase in sales of the sponsors product or services. This is another way in which
organisations are able to measure success of their sponsorship, again it has to do with what
the company set out to achieve with the sponsorship. Sport sponsorship started to pick up in

25. 11
popularity in the late 1980’s and a survey conducted by Gardner and Shuman in 1987
showed that almost half of the organisations that did partake in sponsorships, did not
measure the outcomes of the sponsorships put in place (Gardner and Shuman, 1987: 13).
Fast forward almost three decades, and the number of organisations measuring the success
of the sponsorship has decreased almost 10% (Hartley, 2015). This is according to a study
done by the Association of National Advertisers in 2013. This shows a lack of measurement
of success of sponsorship activities in organisations.
Another way of measuring the success of sponsorship activities, according to Steyn (2009:
317), is to monitor the online recommendations that people make of a brand. This becomes
more important in this time as many people and stakeholders have an online presence and
their voices are amplified through these online presences; people tend to believe people more
than they believe organisations. The conversations that centre around rugby games on social
media are a great way to gather information about what people are thinking and spread word
of the messages a brand is sharing.
5.3 Risks involved in sponsorships
Organisations need not only consider how they measure the success of sponsorships, but also
what risks are involved in sponsorships. Since there is no guaranteed positive outcome from
sponsorship (Wagner and Nissen, 2015) it can be seen as a risky endeavour for an
organisation. Risk management is important to any organisation and when an organisation
decides to sponsor a sport or sports person, they inherently accept risks associated with the
sponsorship and they must weigh the potential benefits against the potential negative
outcomes of sponsorship (O’Reilly and Foster, 2008: 39). There are risks for the sponsor or
the sponsee, however how the risk is managed makes all the difference (O’Reilly and Foster,
2008: 41). There might be a negative outcome, however if handled correctly might not
become such a dangerous risk for the sponsor or sponsee.
The organisation also takes on a risk when they choose a sponsee to sponsor. The wrong
matchup between sponsor and sponsee can be just as risky for the organisation as any other
possible reputation scandal. Considering that consumers are always looking to the
organisation and its actions, a mismatch between the organisation and the sponsee could

26. 12
cause consumers to question the organisation and could lead to a disastrous loss of
consumers or consumer trust (McDaniel, 1999: 163). For instance, when Tiger Woods was
surrounded by a sex scandal in 2009, sponsors had to make the decision between keeping
him as the face of their brands in honour of those customers who were not shaken by news of
his private life or let him go to avoid consequences of association. A consulting firm,
Accenture, were the first to let go of Woods citing that “Accenture tied their whole corporate
image to Tiger Woods. To them, he represented competitiveness, the ability to judge things
well and the ability to act appropriately.” (Gregory, 2009). Nike on the other hand whose
slogan is Just Do It, backed the golf player as the chairman Phil Knight supported him in
saying, “When his career is over, you’ll look back to the indiscretions as a minor blip, but the
media is making a big deal out of it right now.” It is all dependent on the goals set out by both
parties in their strategic plans (Gregory, 2009).
Another risk that sponsors need to consider is that of achieving maximum coverage from
events like tournaments and world cups, for example. In the Rio Olympics 2016, involved
companies are referred to as worldwide partners, official sponsors and official supporters.
Partners include Coca Cola, Bridgestone, McDonalds, Samsung, Proctor and Gamble and Visa;
official sponsors include Bradesco, Correios, Claro and Nissan; and official supporters include
Aliansce Shopping Centre, Lantam Airlines and EY to name a few. How does the viewer at
home or game attendants decipher the significance of those parties involved? For example,
during the 2014 FIFA World Cup, Pepsi enjoyed great brand awareness with their football
related marketing throughout the event but Pepsi wasn’t a sponsor, Coca Cola was (McKenna,
2016). Nonetheless, most of the US and UK market were able to identify who the official
sponsor was between the two and that takes excellent brand management.
5.4 Role of ethics in sponsorships
Part of considering risks in sport sponsorships is considering the ethicality of sponsorships. In
South Africa, the beer brand Castle Lager has been sponsoring the national rugby team, the
Springboks, and the national cricket team, the Proteas, for more than two decades (Castle
Lager, 2016). The ethicality behind that could be questioned, as sports is something that
children also watch, so is the future generation being raised with the preconceived notion that
sports can only be enjoyed with an intake of alcohol? Organisations have to consider cultural

27. 13
differences when thinking of sponsoring events (Day, 2009: 192). Some cultures have strict
rules and values they live by and won’t allow a sponsorship if it isn’t within their beliefs and
values.
Outram and Stewart (2014: 447) suggests that the ethicality of unhealthy food and sugary
drink manufacturers sponsoring sport events is something that needs to be questioned. They
further suggest that these sponsorships create a lasting cognitive connection between sports
and unhealthy eating habits in children where sport should in fact teach them healthier
lifestyle habits.
Tobacco companies have severe restrictions when it comes to sponsorships and even
advertising (Outram and Stewart, 2014: 447) because of the fact that smoking presents a
dangerous and unhealthy lifestyle for anyone. However, with the rise of the e-cigarette, have
come new challenges and new sponsorships. Twisp, the first e-cigarette available in South
Africa, sponsored a team of students from TUT to take part in the Sasol Solar Challenge and
were all given Twisps and used them throughout the challenge (Hanekom, 2014). It took
years for researchers to prove that smoking was harmful and tobacco companies were
banned from sponsoring events, how long until researchers prove that e-cigarettes could be
just as harmful. Although the results so far look positive, it can take up to ten more years to
see the actual outcome of continued use of e-cigarettes (Smith, 2016). There is also the fact
that smoking, traditional cigarettes or e-cigarettes, are still not a lifestyle that should be
promoted to children and be associated with sporting events.
Another thing to look at is socially acceptable norms of behaviour. This is a complex term as
acceptable behaviour in one culture can be a disrespectful thing in another. Thus
organisations need to be aware of the environments they are operating in and what the
norms or socially acceptable behaviour is in that environment.

28. 14
5.5 Varsity cup Tournament structure
The FNB varsity cup presented by Steinhoff international started in 2008 and is inspired by
American College Football that happens on Monday nights. There are eight South African
universities that take part in the varsity cup and they compete against each other to become
the National University Champion (Varsity Cup, 2014).
5.6 Varsity cup sponsors
The sponsors for this university rugby league include, as the name: The FNB Varsity Cup
presented by Steinhoff International, suggests is First National Bank (FNB) and Steinhoff
International. Here we can see that FNB is the title sponsor while Steinhoff International is a
presenting sponsor. Title sponsorship is considered to be a part of the very name and logo
unit i.e. more integral in the programming setup and promotional efforts for a show; whereas
presenting sponsorships are considered to be add-ons to the actual name of a show (Lund,
2013). This hierarchy is directly proportional to the amount of money plugged in by the
sponsor, the seconds received for advertising between the breaks by the sponsor and finally
number of in-programming integrations (if any) received by the sponsors (Lund, 2013).
However, in an American nationwide survey of a target market of 25-64 year old financial
decision makers in households with an annual income of at least $30 000 (approximately
R420 000), John Hancock Financial Services found that changing the name of an event to the
sponsor’s name was deemed “very appropriate by only” 13% of respondents (Ukman, 2015).
They have other “preferred suppliers” that they make use of, and include Mango Airlines, the
hotel group Tsogo Sun, the television channel group Super Sport, the clothing brand Legit, car
hire company Hertz, newspaper Rapport, Samsung, Carling Black Label Beer and KPMG
(Varsity Cup, 2014).

29. 15
5.6.1 Steinhoff
Steinhoff is an integrated retailer that manufactures, sources and retails furniture, household
goods and general merchandise in Europe, Australasia and Africa (Steinhoff International,
2015):
 Household goods comprises a vertically integrated furniture, household goods and
related retail business serving the discount and value consumer market segments in
Europe, Australasia and Africa. The retail operations are supported by the integrated
supply chain, which includes manufacturing, sourcing and logistics operations, as well
as an extensive and strategic property portfolio.
 General merchandise comprises the operations of the Pepkor Group, acquired during
the 2015 financial year. Pepkor is a leading retailer selling a range of everyday
necessities (excluding food) to its price-sensitive and value-conscious customer base,
including clothing, footwear, household goods, personal accessories and cellular
products. Its operations include a production facility in Cape Town, and it also provides
selected financial services to its customer base, such as utility bill payments and
money transfer services.
 Automotive comprises the group’s automotive retail businesses in South Africa.
Unitrans Automotive represents a number of international automotive brands and
services its customers from its network of dealerships located throughout southern
Africa. Hertz car rental conducts its business in Namibia and South Africa.
 In addition, Steinhoff is invested in companies that provide essential products, services
and knowledge to the group. Accordingly, the group holds a 43% associate investment
in KAP Industrial Holdings Limited, a JSE-listed diversified industrial company with
leading market share positions in the logistics, integrated timber, integrated bedding
and other industrial sectors within South Africa. Steinhoff also holds a 27% associate
investment in PSG Group Limited, a JSE-listed investment company.
In South Africa, Steinhoff retail brands include Barnetts, Price ‘n Pride, Bradlows, Morkels,
Joshua Doore, Russels, Pocco, Supreme Furnitures, Sleepmasters, HiFi Corp, Incredible
Connection, Hardware Warehouse, The Tile House, Timbercity, Pep stores, Ackermans, Dunns,
John Craig and Shoe City (Steinhoff International, 2015).

30. 16
There is limited information available about Steinhoff International’s strategic involvement in
the Varsity Cup sponsorship on their website or the Varsity Cup website. An article written in
2008, the year that varsity cup started, is the only information found about Steinhoff’s
involvement in Varsity Cup, where the Marketing Executive of Steinhoff International Group
Services, Derrik Matthew mentions that their involvement with the Varsity Cup is based on
commitment and passion (IOL, 2008).
Experience proves that organisations tend to increase visibility around tertiary students not
only to increase brand awareness; but to gain access to a pool of graduates to employ. This
group of consumers still hasn’t formed unbreakable brand loyalties. This means that if a
business can connect with them, that business has a chance at continuing to connect with
that group of people as they graduate, start careers, begin families of their own, and progress
toward retirement (Olenski, 2015).
In the list of 100 top graduate employers rankings, Steinhoff International or any of its
companies does not feature. This list puts Google, Deloitte Australia, Commonwealth Bank,
EY and PwC Australia in the top 5 (Chang, 2016). A high salary and prestigious position are
not as important to university students as finding a job that offers good training and
development (Chang, 2016). Steinhoff International expresses awareness of this by saying
that South Africa is seen as the operational region that will benefit most from further
education, training and development projects, thereby simultaneously supporting government
initiatives (Steinhoff International, 2015). Within South African businesses, literacy and
numeracy training and operational learnerships remain key areas of focus (Steinhoff
International, 2015).
5.6.2 First National Bank (FNB)
FNB is part of the FirstRand Bank Limited and is one of the main sponsors of the varsity cup.
FNB has a section on their website dedicated to explaining their involvement with the varsity
cup. Their sponsorship has been part of the varsity cup from the first day it started in 2008.
Their involvement is aimed at helping the future of South African rugby and the development
of talent in universities (FNB, 2016). These varsity games give young up and coming talent to

31. 17
develop their skills and it gives recruiters the opportunity to see these young talents perform
and grow. This makes sense as part of their vision statement is to “help create a better
world” (FNB, 2016).
FNB has a programme called the FNB Fund, which helps the community to become better for
future generations (FNB, 2016). A specific are within their FNB Fund focuses on education,
specifically tertiary education and helping the future of South Africa to become well educated
and gives them the opportunity to develop skills to contribute to the economy of the country
(FNB 2016).
Their involvement can also be seen as a strategic move. As many young individuals that are
about to enter the working world and will need bank accounts or loans, attend the varsity cup
games, all over South Africa, it gives FNB exposure and possibly wins them a great deal of
new clients.
FNB also has many internship and graduate programs as well as bursaries that they give to
young talent. These Varsity Cup games expose hundreds of thousands of students from
several universities across South Africa to the opportunities that FNB has to offer and sets
FNB in their mind as a possible financial institution that they will want to use or recommend.
6 METHODOLOGY
Wagner et al (2012) define methodology as the study of procedures used to conduct
research. The following will be discussed under the methodology section of this document:
research approach and design, sample strategies, data collection strategies, data analysis
strategies, data collection instrument and principles of scientific soundness.
6.1 Research approach and design
The research approach and design is concerned with the type of study that is to be conducted,
qualitative or quantitative. The nature of this study will be qualitative as it involves the
analysis of word in contrast to the analysis of numbers.

32. 18
Wagner et al (2012) define four designs that a researcher can use when conducting a
qualitative study. These four include: ethnography, action research, grounded theory and
phenomenology.
A form of phenomenology will be appropriate for this study, namely interpretive
phenomenology. Interpretive Phenomenological Analysis is where researchers investigate
how individuals make sense of their experiences (Pietkiewics & Smith, 2014). Instead of
focusing on the individual’s experience, the focus will be put on the organisations experience
with the sponsorship.
6.2 Sampling strategy
Sampling techniques can be divided into probability and non-probability sampling (Wagner et
al, 2012). A general rule of thumb is that probability sampling is a more quantitative
sampling technique and non-probability is more a qualitative technique, although it is
different for each study and researcher.
The sampling strategy to be used may sometimes suggest a particular mode of data
collection (McClure, 2002).
The sampling strategy used in this study will be a single case study sample. The case study
will be on the motivations of FNB and Steinhoff International to sponsor a university rugby
league.
This sampling method is appropriate in the sense that it is an investigation into the
motivations that these two organisations have for sponsoring the university rugby league and
what they believe the reasons are.
6.3 Data collection strategy
Qualitative data collection, according to Wagner et al (2012) can be divided into interviews,
observations and document analysis.

33. 19
Document analysis is the analysis of documents pertaining to the organisation of study, like
annual reports or other documents. In documentary research, the focus should be on the
meaning of the document, the situation in which it emerges, and the importance of the
interaction that results from the document (McClure, 2002). The annual reports and other
reports these two organisations have will be thoroughly analysed and scrutinised to establish
what they gain from sponsoring this event.
Furthermore, an interview or multiple interviews with the appropriate member(s) of the
organisation will be conducted, either in person, telephonically or through means of written
correspondence, to establish their views of the sponsorship.
By doing this, the appropriate amount of data necessary to determine the motivations for
their sponsorships will be gathered and analysed. In this research, interviews serve as a
convenient option to the researchers as the organisation with the greatest question attached
to it, Steinhoff International Holdings, is not based locally or run solely by national decisions.
Interviews are formal ways of talking to respective people from an organisation by having set
questions to ask them. By conducting interviews, researchers obtain a clearer understanding
of an individual’s background and experience where the knowledge of this experience helps
the researcher better understand the context for an individual’s behaviour and decision-
making rationale (McClure, 2002).
Also, by using multiple information sources, data triangulation will be achieved. Thus it is the
process by which a multiple of data collection and analysis techniques are used to cross-
check and confirm the results (Wagner et al, 2012).
6.4 Data analysis strategy
The strategy for analysing the data collected will be content analysis. Content analysis is the
analysis of written or verbal responses and audiovisual materials (Du Plooy, 2009). Du Plooy
(2009) further notes that qualitative content analysis, in contrast with quantitative content
analysis, is guided by questions and reported as descriptions of attributes.

34. 20
The data gathered during the course of the research will be documented and analysed as the
study proceeds.
6.5 Data collection instrument
The data collection instrument is the way in which the researchers go about collecting the
data that they need (Eqavet, 2016). The choice in the collection instrument to use should be
made with several factors in mind including cost, characteristics of population, sampling
strategy, desired response rate, question format, question content, length of data collection
period and availability of facilities (Spata, 2002). The instruments used will be document
analysis and interviews.
Depending on the type of information, interviews can be informal or formal (McClure, 2002).
Informal interviews elicit purposeful conversation by soliciting responses that may lead the
interview down to an unplanned or unexpected path; while formal interviews conversely
involve a great deal of planning, scheduling and preparing (McClure, 2002). Although
approaching organisations may be done in an informal way, the interview structure would
require a formal structure in order to minimise time wasted on unnecessary questions and
mistakes. This means that there are a number of important guidelines to adhere to (Wagner
et al, 2012):
 Make sure that the person that you are interviewing is the holder of information. When
making the telephone calls to organisations, it has to be clear that the person on the other
side of the phone is the most legitimate person to speak to concerning the matter given
that they are the biggest source of information.
 Develop rapport with interviewees and win their trust.
 Make sure that the person being interviewed is informed about the purpose of the
interview and what information you want to gather from him/her.
 Make sure that the person to be interviewed has given you his/her informed consent to be
interviewed.
 Do not impose your own ideas to the interviewee.
 Do not be judgemental or criticise.

35. 21
The documents that will be analysed are the annual reports of sponsors as well as other
reports or documents pertaining to their sponsorship involvement.
The interview question will be developed using the literature review as basis and more
questions will be developed as the document analysis provides more information. Using the
literature review, categories and sub-categories were formed into which the questions for the
interview will be divided and formulated. These categories and sub-categories will also be
used to analyse the documents, and are summarised in Table 1.
6.5.1 Types of Sponsorships
Table 1: Categories for interviews and document analysis
Motives Measurement Risk Management
Perceptions of ethical
standards
Aligning with corporate
strategy.
Measurement to the extent
to which the motives of the
sponsorship was achieved
(this will depend on what the
motives are).
Behaviour that constitutes
risk.
Alignment with socially
acceptable behaviour.
Corporate Social
Responsibility.
Measure the outcome or
output if the sponsorships
(this will depend on the
expected outcome or
output).
Exposure to risk. Cultural issues.
Marketing. Risk coverage. Healthy lifestyle issues.
Brand loyalty.
Personal reasons.
6.5.2 Strategy
Using this table, some of the question for the interview may include:
 Does the current corporate strategy align with the current sport sponsorships that the
organisation is partaking in, specifically with regards to Varsity Cup?
 What are the similarities between FNB/Steinhoff International Holdings and the
Varsity Cup Tournament that make this partnership a compatible one?
 Is the current sport sponsorships part of the organisations corporate social investment
portfolio?

36. 22
 Who in the Varsity Cup Tournament audience is FNB/Steinhoff International Holdings
targeting?
 Do the current sport sponsorships serve as a marketing method for the organisation?
 Has this partnership helped FNB/Steinhoff International Holdings gain any retail
rapport?
 Do the current sport sponsorships provoke brand loyalty among stakeholders in the
organisation?
 What leverage do the stakeholders of the FNB/Steinhoff International Holdings want
to gain from sports by sponsoring the Varsity Cup Tournament?
 What are the motives behind the current sport sponsorships, specifically the Varsity
Cup?
 Are there measures in place that accurately describe if these motives were achieved?
 How much of FNB/Steinhoff International’s media coverage come from this
partnership?
 Does FNB/Steinhoff International Holdings require exclusivity over sponsoring the
Varsity Cup Tournament?
 Does FNB/Steinhoff International Holdings showcase any products at any Varsity Cup
events? If so, which products?
 What impact has this partnership had on the sale of these products?
 How are the outcomes of the organisations sport sponsorships, specifically Varsity
Cup, measured?
 Are there risk management procedures in place for sport sponsorships?
 What risks did the organisation accept with sponsoring the Varsity Cup?
 Are there risk coverage plans in place for the current sport sponsorships, specifically
with regard to the Varsity Cup?
 Do the current sport sponsorships, specifically varsity cup, align with what is
considered socially acceptable behaviour?
 Does the organisation consider the cultural differences when deciding upon a sport
sponsorship?
 Did the organisation consider what cultural issues there might be when they decided
to sponsor the Varsity Cup?

37. 23
 Are healthy lifestyle issues a concern for the organisation when looking at sport
sponsorships?
6.5.3 Measurement
The following bulleted list explains the statements and categories to be used to analyse the
documents:
 Motives:
o Mentions of current corporate strategy aligning with Varsity Cup sponsorship.
o Mentions of sport sponsorships being part of the organisations CSR initiatives.
o Mentions of sport sponsorships, particularly Varsity Cup, being for marketing
purposes.
o Mentions of personal reasons, like loyalty to certain brands or prior
connections, are involved in making sponsorship decisions, specifically with
relation to Varsity Cup.
 Measurement
o Mentions of measurement tools for the motives behind sport sponsorship,
specifically Varsity Cup.
o Mentions of motives that were set out before taking on sport sponsorships,
specifically with regards to Varsity Cup
o Mentions of the outcomes of sport sponsorships, specifically Varsity Cup.
 Risk management
o Mentions of risk management practices concerning sport sponsorships,
specifically regarding Varsity Cup.
o Mentions of what constitutes risk behaviour in sport sponsorships, specifically
concerning Varsity Cup.
o Mentions of what risk exposure the organisation is willing to accepting
concerning Varsity Cup.
o Mentions of risk management plans if a risk were to materialise specifically
concerning Varsity Cup.
 Perceptions of ethical standards

38. 24
o Mentions of Varsity Cup sponsorship aligning with accepted social practices in
the community.
o Mentions of cultural concerns taken into consideration when sponsoring sports,
specifically concerning Varsity Cup.
o Mentions of healthy lifestyle issues being taken into account when sponsoring a
sport, specifically Varsity Cup.
These are the appropriate instruments to use in this study because of the fact that the study
is a single case phenomenological study. This means that the available information
surrounding the case need to be gathered and analysed, as well as additional information
gathered from the sponsors involved.
6.6 Principles of scientific soundness
The principles for scientific soundness in a qualitative study can be broken down into
reliability and validity (Wagner et al, 2012).
Reliability meaning that the data analysis instrument, in other words the document analysis
and interviews, delivers the same results each time it is used (Wagner et al, 2012). It involves
the consistency of measurements where coefficients can be expressed in the measurements
of stability, equivalence and internal consistency (Bergh & Theron, 2012). However, this is
better proven in quantitative research. This would mean that all the interviews would require
careful structure.
Validity refers to if the research actually measures what it set out to measure in the first place
(Wagner et al, 2012). For example, if one uses an IQ test, one needs to be sure that the
questions represent aspects of intelligence and not another construct (Bergh & Theron,
2012). Similarly, if set to measure the motives behind sponsorship decisions, questions need
to be structure so that the relevant information is solicited.

39. 25
7 LIMITATIONS
There are limitations to consider with any study that takes place. Limitations can be defined
as some condition or event that restricts something from happening or being completed
(Dictionary.com, 2016).
There exists a possibility that the sponsors are unable or unwilling to do an interview, either
telephonically, personally or written. This poses a problem to the data collection instrument
and strategy and could mean that another form of information sourcing needs to be
identified. This could mean a delay in the outcomes and deadlines for the study. This might
be resolved by talking to third parties willing to have an interview either telephonically,
personally or written.
A common factor that revolves around interviewing is, how long should an interview last
(McClure, 2002). Telephone interviews typically last no more than 30 minutes, because
respondents are usually uncomfortable with staying longer on the phone (McClure, 2002).
Ensuring that all questions relevant are asked during the consented interview time has to be
considered when constructing questions as sponsors could see the activity as time wasting.
Another time issue includes the availability of top managers as they are often in meetings, on
business trips or otherwise occupied. Otherwise, the procedures that must be taken when
approaching decision makers of organisations include communicating research needs from
the bottom of the organisation i.e lower departments and assistants who may not necessarily
be informed about the matters of sponsorship funds.
The quality of a document is assessed of representativeness, for one, where we look at the
matter of how typical the document is (Wagner et al, 2012). The reasons for decisions that
organisations make concerning their sponsorships may vary therefore, this document may
not be generalisable.

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8 ETHICAL CONSIDERATIONS
There are numerous ethical considerations to take into account with any study. Ethics is
defined as a study or discipline of moral principles in human behaviour and more specifically,
ethical research is research that safeguards integrity, quality, respect, confidentiality,
anonymity, impartiality, voluntary consent and participant safety (Wagner et al, 2012).
Ethical considerations should be in focus at all stages of the research process, from design to
implementation to the final write up of the research (Wagner et al, 2012).
In planning research (Spata, 2002): first, the research project must be planned so that the
chance for misleading results is minimised; second, the project must be planned so that it
meets ethical acceptability by resolving doubts concerning ethical questions with peers or
consultation; third, steps must be taken to protect and ensure the dignity and welfare of all
participants and those affected by the results of the research project.
In order to address the ethical considerations, the following points have to be discussed
(Dudovskiy, 2016):
 The importance of voluntary participation by respondents.
 The importance of privacy and anonymity of respondents.
 The use of offensive, discriminatory, or other unacceptable language needs to be avoided
in the formulation of questionnaires or interview or focus group questions.
 Acknowledgement of works or other authors used in any part of the research.
 Maintenance of the highest level of objectivity in discussions and analyses throughout the
research.
It is a researcher’s primary responsibility to make sure that participants are in no way harmed
as a result of their participation in the research study (Wagner et al, 2012). In approaching
the said sponsors or other relevant participants should understand that they are taking part in
research and what the research requires of them by obtaining informed consent from them
(Laerd Dissertations, 2012). The purpose of this document has been deduced from a level
that required overly confidential information to minimise the possibility of breaking the trust
in confidentiality by asking for less confidential information. Participants will typically only be

41. 27
willing to volunteer information, especially information of a private or sensitive nature, if the
researcher agrees to hold such information (Laerd Dissertations, 2012).
McClure (2002) suggests that before distributing any questionnaires, researchers shouldhave
several other people review the items to identify any confusion associated with verbiage and
evaluate the appropriateness. Questionnaires concerning this research question can be
distributed to several people with similar demographics to to answer them and point out
concerns, problems or errors.
9 PILOT STUDY
A pilot study is defined as a trial run of a study done on a small scale (Du Plooy, 2009: 99).
The study that will be conducted by doing interviews and document analysis, however in this
pilot study phase only document analysis will be conducted.
9.1 Logistics and ethical considerations
Logistics is defined as the detailed organisation and implementation of a plan or operation
(Oxford Dictionaries, 2016). The logistics regarding any study can be many and challenging.
Regarding this study, they include challenges such as the collection of sufficient data from
the correct sources, convincing FNB and Steinhoff International employees to agree to
interviews, setting up questions for the interviews, time constraints regarding interviews,
getting willing participants for the interviews, time alignment regarding interviews.
All these challenges can be overcome by careful planning and mutual respect for all parties
involved in the interview process. Getting sufficient information from the document analysis
challenge can be overcome by talking to willing employees of each organisation to get the
necessary information and using sources other than annual reports to get information.
Ethical considerations are always at hand and can include the use/misuse of organisational
information, exposing information that the organisation had not want to share publicly,
possible false claims made by either party involved in the research.

42. 28
These challenges can be overcome by being clear and straightforward throughout the
research process. This means that parties need to have a mutual respect and clear set
boundaries for the information that can or cannot be shared during interviews and other
information sourcing procedures.
9.2 Data collection instrument
The data collection instruments chosen are document analysis and interviews. For the pilot
study, document analysis will be used to gain information.
The document analysis presented a challenge from the beginning, where both of the
organisations had a lack of information regarding sport sponsorships, specifically regarding
the Varsity Cup. Annual reports were unclear as to what sport sponsorships the organisations
take on and where the organisations place these sponsorships within their organisation, CSR
or strategic. Analysing Steinhoff International Holdings’ data included integrated reports from
2012, 2013, 2014, 2015 and the latest, 2016; as well corporate social responsibility reports
provided in 2013 and 2016.
FNB’s annual reports are not independent but part of their holding company, FirstRand
Group’s annual report. These reports only contain information that pertains to monetary
performance. Since there is no clear indication whether the Varsity Cup sponsorship is part of
marketing or CSR, no information could be gained from these reports.
There are, however, reports to society that FNB publishes each year, and looking through
these reports from 2008-2015, there also was no mention Varsity Cup or how FNB classifies
their sport sponsorships, marketing or CSR. Contact was made with the senior
communication and sponsorship manager of FNB, Mari van Niekerk, who claimed that the
information sought was confidential and that they are unable to divulge this information to
us.
Thus, we contacted the CEO of Varsity Cup, Mr Duitser Bosman and did a short telephonic
interview with him and gathered enough data to conduct the pilot study.

43. 29
This was solved by contacting persons within or persons that have connection with either
organisation to assist in collecting the information that is necessary to conduct this pilot
study.
9.3 Pilot study data
9.3.1 FNB
FNB has mentions in their 2011 sustainability report about their involvement in the FNB
Football First Programme, however no mention of the Varsity Cup sponsorship involvement.
FNB has a blog dedicated to the Varsity Cup, however it only started in 2015 and it only
presents news regarding the games and the players.
The senior communication and sponsorship manager from FNB claimed in an email that the
information that was needed to conduct this study was confidential, and that they are unable
to disclose it.
On the FNB website, there is a section that is for possible sponsorships or where
organisations can apply for sponsorship from FNB. They classify sponsorships into
commercial sponsorships and non-profit or community activities. Looking at the criteria, it
would seem that Varsity Cup falls under commercial sponsorships. The selection criteria for
these types of sponsorships include:

44. 30
The organisations brand values are defined as pride, accountability, innovation, Ubuntu and
respect (FNB, 2016). Assuming that Varsity Cup falls under the commercial sponsorship
category, they are adhering to the brand values of FNB because of the fact that FNB is
sponsoring them.
Looking at the appropriateness of the target audiences criteria, FNB has bursary options
available for students who want to further their studies at tertiary level and also special
accounts for students that save them money (FNB, 2016). This is then another criteria that
checks out with the sponsorship of Varsity Cup.
FNB is the only financial services provider that sponsors the Varity cup, which checks out with
the third requirement in their selection criteria. Steinhoff is the only other sponsor involved in
Varsity cup. The fourth criterion is the availability of naming rights, which also checks out
because this tournament is named the FNB Varsity Cup presented by Steinhoff International.
The fifth criteria is stated as advantages such as branding and advertising, and part of the
Varsity Cup logo is the FNB logo and at the tournaments, the jerseys that the players wear are
also branded with the FNB logo.
The criteria continue to mention the possibilities of evaluating the successfulness of the
sponsorships as well as the avoidance of risks in the sponsorship of any event.
Figure 1: Selection criteria for commercial sponsorships (FNB, 2016)

45. 31
Figure 2: Selection criteria for non profit/community activities
In a telephone conversation with the CEO of Varsity Cup, Mr. Duitser Bosman, he revealed
some of the reasons for FNB’s involvement in the Varsity Cup, as well as how Steinhoff
International got involved.
FNB has been part of sport sponsorships at university rugby since 2001. In 2007, the idea of
Varsity Cup started and FNB already had rights on rugby sponsorships at universities, however
did not have sufficient funds for sponsoring the entire event. Steinhoff, at this point, already
was the head sponsor for rugby at Stellenbosch University, and Stellenbosch was not
prepared to take part in the Varsity Cup if Steinhoff could not be involved. A relationship
between FNB and Steinhoff was thus formed and FNB had all rights on varsity rugby, while
Steinhoff had all rights on koshuis rugby.
Furthermore, Mr. Bosman mentioned that studies show that people form product loyalties
between the ages of 17-24 and so FNB has a lockdown on a large number of people between
those ages. Although, there are studies that indicate that brand loyalty now starts forming
from a much younger age and not only through forms of sponsoring and presence (Holt,
2016; Medallia, 2015; Gasca, 2014; MarketingCharts, 2014; Comiteau, 2003; Cooper, 2010).

46. 32
9.3.2 Steinhoff International
In the Steinhoff International Corporate Responsibility report 2013 it is stated that aspects of
social and environmental sustainability have been part of the group’s strategy for many years,
yet they were placing more emphasis on the monitoring and reporting of relevant and
material data. They are continually seeking to improve our processes of data collection and
data management throughout the group, to enable us to report more accurately on strategic
sustainability issues and to align their reporting with global best practice (Steinhoff
International Holdings, 2013).
Each division is responsible for developing its own sustainability strategy and framework in
line with the overall group strategy while considering stakeholder needs and social and
environmental obligations (Steinhoff International Holdings, 2013). In both 2013 and 2016
reports it mentioned that South Africa’s transformational needs drive Steinhoff’s focus in
terms of financial contribution towards social change.
Due to the changes in the group during 2012, specifically with regards to the acquisitions and
corporate transactions in respect of KAP and JD Group, they are still in the process of aligning
internal reporting structures to ensure that we improve the quality, punctuality and integrity of
sustainability data (Steinhoff International Holdings, 2013)
The allocation of funds was considered, but the following was found that monetary support
for CSI is channelled and managed in ways that optimise the use of funds and which provide
the best possible short and sustainable long-term benefits to beneficiaries (Steinhoff
International Holdings, 2013). All projects are monitored and managed to ensure that funds
are appropriately and responsibly used; group-wide a significant amount is spent on various
initiatives as divisions continue with monetary investment, product and service donations,
sponsorships, time and social economic development (Steinhoff International Holdings,
2013). Yet, no other detailed information is given on their sponsorships, specifically for
Varsity Cup.

47. 33
9.4 Data analysis process and results
The data analysis process used was chronologically reading through and looking for the
mention of elements relating to our data analysis instrument. However, there was very
limited information available in either the organisations’ annual reports or other reports such
as sustainability reports.
Furthermore, a telephone conversation with Mr. Duitser Bosman, the CEO of Varsity Rugby,
provided information regarding the involvement of FNB and Steinhoff International in the
sponsoring of this event.
In the case of Steinhoff International Holdings, we found that their internal reporting structure
might be the reason why it is difficult to find information on their involvement in the Varsity
Cup Tournament, due to the changes in the group during 2012, specifically with regards to
the acquisitions and corporate transactions in respect of KAP and JD Group (Steinhoff
International Holdings, 2013). The integrated report states, “We are still in the process of
aligning internal reporting structures to ensure that we improve the quality, punctuality and
integrity of sustainability data. All data collected will be used to further the group’s
understanding of its position and that of its subsidiaries in order to assist with developing
relevant targets and strategies where it will be appropriate, applicable and material.”
(Steinhoff International Holdings, 2013).
Analysing the Steinhoff International Corporate Responsibility reports enlightened about
questions that were otherwise not conceptualised during the methodology planning phase.
These questions are aligned to the mentions made on sustainability in these reports and go
as follows:
 Does the involvement in Varsity Cup not being mentioned in the sustainability report
mean that it is not regarded as a part of the group’s social sustainability
responsibilities?
 Why does SIH not report on their involvement in Varsity Cup?
 It is specified that different divisions are responsible for different projects, which
division is responsible for the involvement in sponsoring Varsity Cup?
 How do sports (specifically rugby) influence sustainability in South Africa?

48. 34
 It is reported that more information on South African involvement is available KAP and
JD Group integrated reports, if so, who was responsible for this partnership prior the
KAP and JP Group acquisitions in 2012?
These questions are open for considerations on whether more research should be gathered
from other documents on them or added onto lists of questions to ask informants.
The lack of information to feed our topic from the analysed documents directed the pilot
study in a new direction. Persons within these organisations were contacted and persons
with connections to the organisation were contacted to obtain the necessary information to
complete the pilot study.
To make the process of finding an informant more effective, we begun by contacting parties
that we have close relation and proximity to at the University of Pretoria. So we approached
Jimmy Molautsi who is the co-ordinator of the department and is a link between student
sports committees and management. He responded by stating that he doesn’t have access to
that information, but referred us to the marketing manager at TUKS Sport, Mmane Boikanyo
and the director of TUKS Sport, Dr Rendzani Mulaudzi. Mmane Boikanyo has since responded
by saying that she is not the ideal person, but would rather refer us to Varsity Cup. However,
has not provided contact information of the referral.
The information received from these persons were analysed as would the documents been
analysed if they had had any information regarding their sport sponsorships.
The interview with the CEO of Varsity Cup has shed some valuable light on the subject of this
research and proven that there is more detail to be investigated. Further questions to look
into include those concerning the initiation of the sponsorship between Stellenbosch
University rugby and Steinhoff International Holdings.
9.5 Measures for scientific soundness
There are three types of reliability referred to in qualitative research which relate to: (1) the
degree to which a measurement, given repeatedly, remains the same (2) the stability of
measurement over time; and (3) the similarity of measurements within a given time period

49. 35
(Golafshani, 2003). To ensure reliability in qualitative research, examination of
trustworthiness is crucial (Golafshani, 2003). The measures for scientific soundness will
present a problem when it comes to comparing what the document analysis indicates and
what information is gathered from the interviews. It might prove that the data is not reliable
as some of the information might not align.
Another problem is the fact that FNB is unwilling and unable to share some of the necessary
information because of their privacy policy. This will skew the data as there will be no
indication of the motivation for their involvement in Varsity Cup besides the assumptions that
can be made about it. The data that can be used is the selection criteria as in Figure 1 and
Figure 2 above and the telephone conversation with Mr. Bosman.
Triangulating the data that will be gathered from FNB will also not be a possibility, since all
the information that can be gathered about them is what is available online and from a
telephone call with the CEO of Varsity Rugby, not FNB themselves. They will not be able to
perform interviews because the information required is confidential information. This means
data will be skewed in terms of triangulation. The information gathered from further
interviews with Mr. Bosman might present an opportunity to find more information to make
triangulation a better and more feasible option.

50. 36
In their reports, Steinhoff International always begins by addressing materiality issues,
namely scope and boundary, determining materiality and assurance as follows:
10 RESULTS AND INTERPRETATION
Appendix A shows the interview form and the questions that were asked to interviewees. The
results that were found during this research are limited to one interview with Mr. Duitser
Bosman, the CEO of the FNB Varsity Cup Presented by Steinhoff International (Appendix B).
This means that the data was only collected from one source and limits the interpretation to
that information and the information collected during the document analysis.
Figure 3: Steinhoff International Report Excerpt

51. 37
It was not possible to conduct interviews with someone at FNB nor someone at Steinhoff
international due to confidentiality and the fact that the organisation was too large and
decentralised to find an interviewee, respectively.
The data that was collected shows that there are proper motives, measurement tactics, risk
management and consideration of ethical standards when taking on sport sponsorships for
both of these organisations. There is also a clear benefit for the organisations involved in
terms of brand exposure and client gaining.
10.1 Motivations
In the interview, there were several questions concerning the motivations of the sponsorship.
The first question pertained to the alignment of corporate strategy to sport sponsorships.
The interviewee, Mr. Duitser Bosman, believes that the organisations strategy does align with
the current sport sponsorship of Varsity Cup. He argued that the organisations would not
have stayed and continued their sponsorship of varsity cup had it not aligned with their
corporate strategy. Looking to the literature review and point 5.1, the sponsorship motivation
can be classified as a traditional cash sponsorship, as the sponsorship provides the Varsity
Cup with the funds necessary to host the tournament and exclusive rights. FNB and
Steinhoff’s sponsorship can be seen as aligning with their corporate strategy and being a
traditional, cash sponsorship for the Varsity Cup.
There is sometimes similarities between sponsors and sponsees, and in the case of Varsity
Cup, the similarity between FNB and Varsity Cup is the fact that both are innovative. FNB is
South Africa’s most innovative bank while Varsity Cup is the most innovative sports
competitions, according to Mr. Duitser Bosman (2016).
There are numerous stakeholders that the Varsity Cup tournament is targeting, and thus
these stakeholders are also reached by the organisations. The stakeholders include:
 Students aged 17-24
 Local people living around university areas
 Alumni

52. 38
 The general rugby supporters
In the interview, Mr. Duister Bosman mentioned that the target market is the population living
in and around, namely Potchefstroom, Stellenbosch and the University of Johannesburg. Let
us look into the demographics of these three key areas as per the latest national consensus:
Table 2: Key statistics of population demographics
Potchefstroom Stellenbosch Johannesburg
Total Population 162, 762 155, 733 4, 434, 872
Working age (15-64) 69,1% 72,3% 72,2%
Elderly (65+) 5,7% 4,9% 4,1%
Dependency ratio 44,7 38,4 37,6
Growth rate 2,38%
(2001-2011)
2,71%
(2001-2011)
3,18%
(2001-2011)
Unemployment rate 21,6% 15,2% 25%
Youth unemployment rate 29,8% 21,5% 31,5%
Higher education aged
20+
14,2% 17,3% 19,2%
Number of households 52, 537 43, 420 1, 434, 856
Average household size 2,9 3,3 2,8
Formal dwellings 81,1% 75,1% 81,4%
(Stats SA, 2011)
The statistics above indicate that not only are there similarities within Varsity Cup and its
sponsors, but the areas in which they target their audience from. The percentage of working
age individuals is well around 70% in all three municipalities, an indication of possible
disposal income; the youth unemployment rate being at 29,8% in Potchefstroom, 21,5% in
Stellenbosch and 32,5% in Johannesburg leaves an estimate of about 70% young individuals
from these areas to attract as they are the primary target market and; where higher
education aged 20+ shows 14,2% in Potchefstroom, 17,3% in Stellenbosch and 19,2% in
Johannesburg we can see the number of people who may be exposed to the imagery (if not
the experience) of Varsity Cup and its sponsors.
Brand awareness is another important factor for any sponsorship, and in the case of Varsity
Cup, there is a lot of brand awareness being created for both the sponsors and sponsee. This
happens in terms of social media platforms, like FNB has over one million Facebook followers
and whenever they post something regarding Varsity Cup, it creates and increases the brand
awareness. The FNB brand is also a highly respected brand in South Africa, so associations
that people make between the two brands bring up the brand awareness and portfolio of both

53. 39
the brand and the tournament. The latest South African Customer Satisfaction Index (SAsci)
has revealed that FNB is the second top bank in South Africa as of 2016 with a score of 79.8
which is 3.5 over the industry average of 76.3 and a 0.5 score increase from the previous year
(Business Tech, 2016).
The sponsorship also creates brand loyalty among shareholders, as students come and go,
FNB remains a main sponsor of Varsity Cup and this consistency reminds people that the
brand is loyal and thus a brand that they will be loyal towards. The SAsci study of a sample
size of 10 000 customers showed that in terms of loyalty, FNB is right next to Capitec as the
best performers in the field of perceived quality and exceeded their customer’s expectation
and; FNB’s perceived value is higher than the industry average (Business Tech, 2015).
Looking at FNB, their selection criteria for taking on sponsorships (p. 30) and the information
gathered from the interviews, it is clear that it is a commercial sponsorship for the
organisation. They are provided with all the points mentioned and have stayed with the
sponsorship of Varsity Cup for almost ten years and have signed for another three years,
according to Mr Duitser Bosman (2016).
10.2 Measurement
The measurement of the success of any sponsorship is crucial and in the interview, there are
goals that were mentioned against which the success could be measured. The goals are
business related goals and corporate social investment goals.
When asked about what the sponsors wish to gain from the Varsity Cup sponsorship in terms
of business related goals, Mr. Duitser Bosman mentioned that he believes the main goal for
FNB is to get people to open bank accounts with them. This runs over to the students open
accounts and being loyal to FNB.
When asked about the corporate social investment goals, he mentioned that Varsity Cup is
currently the back bone of to the development of South African rugby. Furthermore, it
provides young people with an opportunity to get a degree whereas before they would not
have been able to get a degree. Sports is a great contributor to social development in South

54. 40
Africa as we would see in the growth and interest of initiatives such as the Motsepe
Foundation; it has shown a height of activities before and during the FIFA World Cup 2010
with many initiatives demonstrating its potential to serve as a direct medium to meet needs
of underprivileged youth (GIZ Youth Development through Football Project (YDF), 2011).
Looking at how the organisations measure the success of the sponsorship, it was not possible
to identify how each organisation does their measurements because of the fact that we could
not conduct interviews with them. Varsity Cup however does do a commercial measurement
of the success of the sponsorship each year and gives feedback to both FNB and Steinhoff
International.
Both the sponsors have certain give-aways, competitions or branded gifts that they provide at
the Varsity Cup games. Mr. Duitser Bosman mentioned that Steinhoff will start with a new
competition next year (2017) where students have to take selfies with the Steinhoff name o
logo to stand a chance to win a trip to go and see the Hong Kong 7s.
10.3 Risk management
In terms of the risks involved in the sponsoring of Varsity Cup for both parties, there ae things
like controversial behaviour from either party that could negatively affect the view people
have of the brand, and then by association the other party. This would mean that either
would detach themselves from the sponsorship. For example, the banking industry still
receives a high level of customer complaints with the industry average at 22% of customers
(Business Tech, 2015). Furthermore, there is always the risk of the South African economy to
weaken and force one of the sponsors to retract because they can’t afford to still sponsor the
Varsity Cup.
Varsity Cup relies fully on the sponsorships to keep the tournament alive and thriving, so a
retraction from any sponsor could mean that they would have to downscale or even end the
tournament because of insufficient funds.