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The Power of Sponsorship
YES! IT WORKS
Hi, I am Adel!
@AdelBaraja
Hi, I am Adel!
@AdelBaraja
Before we start …
Business cards
Phones OFF
BILD
The
start
of a
journey
The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading
automobile manufacturers and the largest carmaker in Europe. In 2014, the Group
increased the number of vehicles delivered to customers to 10.137 million (2013:
9.731 million). The share of the world passenger car market amounts to 12.9 percent.
In Western Europe, more than one in four new cars (25.1 percent) is made by the
Volkswagen Group. Group sales revenue in 2014 totaled €202 billion (2013: €197
billion), while profit after tax amounted to €11.1 billion (2013: €9.1 billion).
The Group comprises twelve brands from seven European countries: Volkswagen
Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche,
Ducati, Volkswagen Commercial Vehicles, Scania and MAN.
Volkswagen | Audi | Porsche
THE AGE OF SPONSORSHIP AND
ENGAGEMENT
MediaConsumer Brand visibility
Exposure
+
Engagement
FROM AWARENESS TO INVOLVEMENT
Awareness
Engagement
Involvement
• Across the past 10 years, the Middle East has heavily invested in football
sponsorships in particular.
• Varying from local clubs/leagues sponsorships to affiliations with global football
clubs/leagues.
THE CURRENT
SPORTS SPONSORSHIP MARKET
SPONSORSHIP AND THE CONTINUOUS GROWTH
41% 88%
Global
Marketing Spend
Global
Sponsorship
Spend
largest European Clubs
now being sponsored by
Middle Eastern airlines
UAE’s ranking in volume
of spending
MIDDLE EAST BRANDS HAVE HEAVILY INVESTED IN
THE SPONSORSHIP OF FOOTBALL CLUBS IN RECENT YEARS
Source: Repucom
Sponsorship is at its peak!
IT’S REALITY NOWADAYS…
WHY TO SPONSOR?
• Sponsors’ objectives range widely.
 Discovering what a sponsor wants is therefore a complex process that merits
considerable effort to ensure that both parties agree on a ‘shopping list’.
CHOOSING A SPONSORSHIP
CHOOSING A SPONSORSHIP
Typical reasons for sponsoring a sports event/team/athlete/league or
stadium
 access to a specific target
 association with a prestigious team or event;
 increase multi-media exposure
 entertainment opportunities
 Enhance brand awareness
DOES IT ALWAYS WORK?
it depends on the group of
people an advertiser is trying
to reach and how effectively it
exploits multiple
communication touch points
Jersey sponsorships, for instance, build awareness effectively because on
top of stadium board exposure, the brand name is on most of the clubs
merchandise that is sold on a global scale
DOES IT ALWAYS WORK?
-Passion for the sport spills over to the brand name.
-Position the brand as a winner / success hero
But it can also work the other way around
SPONSORSHIP OBJECTIVES CHECKLIST
Understanding the Current Status of the Sponsorship Market
by Johan Grobler
BMI Sport Info (PTY) Ltd
THE EVALUATION
A company should evaluate what it wants to promote, who it wants to
promote and what it wants to say.
THE EVALUATION – KEY QUESTIONS CHECKLIST
• Who are the target audience?
• Are the objectives of the sponsorship in line with overall marketing objectives?
• Are they clear, and are they measurable?
• What research is available for those target audiences which could help to
identify suitable and effective sponsorship opportunity?
• If no such research exists should it be commissioned?
• Is the budget available sufficient ?
FOOTBALL CLUB SPONSORSHIP
THE CLUB’S PARTNERS – AIMS AND GOALS
THE CLUB’S PARTNERS – AIMS AND GOALS
THE WIN-WIN-WIN PARADIGM
• Retaining and attracting more Sponsors
• Grow Fan base through increased outreach
• Maximize revenue
• Grows further the reputation of the club
• Become leaders in community regeneration
THE CLUB
• Reinforce the brand’s image and reputation
• Reach new markets
• Build multi-media exposure significantly
• Delivering community investment programs
more effectively
• Possibility of Involve staff motivation via link
with the club’s activity
THE BRAND THE CUSTOMER
• Reach audience via activation and engagement
– Audiences who were hard & expensive to
reach
• Work with role models that aspire forward
• Sustain relationships with the private sector
• Build further the local profile of the brand
• Encourage responsible business behavior§
THE CLUB’S PARTNERS – THE STRATEGY PROCESS
THE CLUB’S PARTNERS – THE STRATEGY
PROCESS
•Measurement
•Activation
•Plan development
•Assessment
THE CLUB’S PARTNERS – THE CYCLE
THE INPUT/OUTPUT CYCLE
THE CLUB’S PARTNERS – CRITERIA OF SELECTION
Key factors for sponsorship valuation and maximizing value
Key for identifying and evaluating the sponsorship investment value !
THE CLUB
“BRAND”
• Image
• Brand Popularity
• Media Exposure Of
Brand
• Affiliations / Other
Partners
THE CLUB
“PERFORMANCE”
• Players
Performance
• Club Performance
• No. Of
Goals
• Standing
• Trophies
• Facilities / Assets
THE CLUB
“AUDIENCE”
• Fan-base Size
• Reach
• Demographics
• Online / Social
Media
THE CLUB’S PARTNERS – THE SELECTION
MATRIX
The selection matrix major elements are:
• Club’s performance and standing
• Players’ performance
• Possible player transfers in the coming 5 years
Actual assessment of club partnership selection and seeking opportunities for
maximizing ROI !
THE CLUB’S PARTNERSHIP – THE DO’S AND DON’T’S
- DO’S -
Partner with:
Clubs on the rising trend of
performance
Clubs with history and
achievements
Clubs with solid fan-base in
the region
Clubs that match the brand’s
characters
Clubs that will add value to
the brand & sub-brands
- DON'TS -
Avoid partnering with
Clubs oversaturated with
sponsors
Clubs that have existing
partners in your region
Clubs that will result in paying
the premium for the “club
brand” rather than actual
benefits and added value
achieved from partnership
Club’s jersey SPONSORSHIP
JERSEY/TEAM SPONSORSHIP
More than walking billboards and advertising media; it is a vital part of
the brand image of their sponsors.
Most successful in terms of brand exposure over the past decades
JERSEY/TEAM SPONSORSHIP
Pictures of star soccer players with Jersey sponsorships decorate the front
and back pages of newspapers particularly in the Arab region
JERSEY/TEAM SPONSORSHIP
BRANDS HAVE INVESTED HEAVILY IN JERSEY
SPONSORSHIP MOSTLY OF FOOTBALL CLUBS IN RECENT
YEARS
Middle East companies have increased their overall share by
26% across the 6 top leagues (capturing 18% SOS)
TOP 4 Investing Countries in
Jersey Sponsorship (2005-
2015)
JERSEY SPONSORSHIP - PROS
• Significant Exposure
• Brand Loyalty
• Revenue opportunities (out of Jersey’s Merchandizing Sales)
• Qualified Audience
• Ability for Exclusivity
• Community Involvement – If covered by the overall partnership deal
High Return on Investment when well negotiated!
JERSEY SPONSORSHIP – KEY WATCH OUTS
There are a number of watch outs to Jersey sponsorship mostly:
• Price increases and chaotic pricing scheme
• Possibility of alienating customers from rivals’ markets
JERSEY SPONSORSHIP – COST OF ELEMENTS
• As a sponsor you should reach an
agreement with the sports body as to
what the project is worth in terms of :
 media exposure,
 audience reach,
 press exposure,
 and the less tangible benefits of improved
brand image, and market and product
positioning.
 Defining the cost of a sports should be
approached on a case-by-case basis.
IN SUM…
WHATEVER YOU DO
• Be entertaining
• Stand out
• VW and Al Hilal FC
WHATEVER YOU DO
• Be entertaining
• Stand out
• VW and Youth
WHATEVER YOU DO
• Be entertaining
• Stand out
• Al-Hilal Vs Bayern Munich
• Give people the opportunity to
join a community
 Nike events (about 120,000
people in London alone)
• Have a hero-product?
 Beckham = Audi
 Be the ‘mother’ of your
category or challenge the
leader
IF YOU WANT TO GET INVOLVED IN FOOTBALL
• Be consistently involved and be associated with football as well as
WC
• Coca-Cola
• If you have the money to be an official sponsor, don’t think the
job’s done
• JVC, Travelex etc.
• Don’t think being an official sponsor is the best way; aggressive
and smart ambush football association can hurt
DO NOT ISOLATE THE SPONSORSHIP
INITIATIVES FROM OTHER MARKETING &
COMMUNICATION ELEMENTS…
SPONSORSHIP IF NOT WELL PREPARED AND ASSESSED
MIGHT TURN INTO A CATASTROPHE OVER THE LONG RUN.
THE AUDIENCE SHOULD GO FOR AN EXPERIENCE AND NOT
EXPOSURE.
JERSEY BRANDING WILL NOT
AFFECT THE SALES OF
MERCHANDISING.
FANATICS WILL PURCHASE THE
JERSEY WHATEVER # OF
BRANDS ARE ON THE SHIRT.
THE MARKET IS STILL NOT PRICE SENSITIVE!
THANK YOU!
@AdelBaraja
https://www.linkedin.com/in/adelbaraja

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Sports Marketing - Adel Baraja

  • 1. The Power of Sponsorship YES! IT WORKS
  • 2. Hi, I am Adel! @AdelBaraja
  • 3. Hi, I am Adel! @AdelBaraja Before we start … Business cards Phones OFF
  • 5. The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. In 2014, the Group increased the number of vehicles delivered to customers to 10.137 million (2013: 9.731 million). The share of the world passenger car market amounts to 12.9 percent. In Western Europe, more than one in four new cars (25.1 percent) is made by the Volkswagen Group. Group sales revenue in 2014 totaled €202 billion (2013: €197 billion), while profit after tax amounted to €11.1 billion (2013: €9.1 billion). The Group comprises twelve brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Volkswagen | Audi | Porsche
  • 6. THE AGE OF SPONSORSHIP AND ENGAGEMENT MediaConsumer Brand visibility Exposure + Engagement
  • 7. FROM AWARENESS TO INVOLVEMENT Awareness Engagement Involvement
  • 8.
  • 9. • Across the past 10 years, the Middle East has heavily invested in football sponsorships in particular. • Varying from local clubs/leagues sponsorships to affiliations with global football clubs/leagues. THE CURRENT SPORTS SPONSORSHIP MARKET
  • 10. SPONSORSHIP AND THE CONTINUOUS GROWTH 41% 88% Global Marketing Spend Global Sponsorship Spend
  • 11. largest European Clubs now being sponsored by Middle Eastern airlines UAE’s ranking in volume of spending MIDDLE EAST BRANDS HAVE HEAVILY INVESTED IN THE SPONSORSHIP OF FOOTBALL CLUBS IN RECENT YEARS Source: Repucom
  • 12. Sponsorship is at its peak! IT’S REALITY NOWADAYS…
  • 14. • Sponsors’ objectives range widely.  Discovering what a sponsor wants is therefore a complex process that merits considerable effort to ensure that both parties agree on a ‘shopping list’. CHOOSING A SPONSORSHIP
  • 15. CHOOSING A SPONSORSHIP Typical reasons for sponsoring a sports event/team/athlete/league or stadium  access to a specific target  association with a prestigious team or event;  increase multi-media exposure  entertainment opportunities  Enhance brand awareness
  • 16. DOES IT ALWAYS WORK? it depends on the group of people an advertiser is trying to reach and how effectively it exploits multiple communication touch points
  • 17. Jersey sponsorships, for instance, build awareness effectively because on top of stadium board exposure, the brand name is on most of the clubs merchandise that is sold on a global scale
  • 18. DOES IT ALWAYS WORK? -Passion for the sport spills over to the brand name. -Position the brand as a winner / success hero But it can also work the other way around
  • 19. SPONSORSHIP OBJECTIVES CHECKLIST Understanding the Current Status of the Sponsorship Market by Johan Grobler BMI Sport Info (PTY) Ltd
  • 20. THE EVALUATION A company should evaluate what it wants to promote, who it wants to promote and what it wants to say.
  • 21. THE EVALUATION – KEY QUESTIONS CHECKLIST • Who are the target audience? • Are the objectives of the sponsorship in line with overall marketing objectives? • Are they clear, and are they measurable? • What research is available for those target audiences which could help to identify suitable and effective sponsorship opportunity? • If no such research exists should it be commissioned? • Is the budget available sufficient ?
  • 23. THE CLUB’S PARTNERS – AIMS AND GOALS
  • 24. THE CLUB’S PARTNERS – AIMS AND GOALS THE WIN-WIN-WIN PARADIGM • Retaining and attracting more Sponsors • Grow Fan base through increased outreach • Maximize revenue • Grows further the reputation of the club • Become leaders in community regeneration THE CLUB • Reinforce the brand’s image and reputation • Reach new markets • Build multi-media exposure significantly • Delivering community investment programs more effectively • Possibility of Involve staff motivation via link with the club’s activity THE BRAND THE CUSTOMER • Reach audience via activation and engagement – Audiences who were hard & expensive to reach • Work with role models that aspire forward • Sustain relationships with the private sector • Build further the local profile of the brand • Encourage responsible business behavior§
  • 25. THE CLUB’S PARTNERS – THE STRATEGY PROCESS
  • 26. THE CLUB’S PARTNERS – THE STRATEGY PROCESS •Measurement •Activation •Plan development •Assessment
  • 27. THE CLUB’S PARTNERS – THE CYCLE THE INPUT/OUTPUT CYCLE
  • 28. THE CLUB’S PARTNERS – CRITERIA OF SELECTION Key factors for sponsorship valuation and maximizing value Key for identifying and evaluating the sponsorship investment value ! THE CLUB “BRAND” • Image • Brand Popularity • Media Exposure Of Brand • Affiliations / Other Partners THE CLUB “PERFORMANCE” • Players Performance • Club Performance • No. Of Goals • Standing • Trophies • Facilities / Assets THE CLUB “AUDIENCE” • Fan-base Size • Reach • Demographics • Online / Social Media
  • 29. THE CLUB’S PARTNERS – THE SELECTION MATRIX The selection matrix major elements are: • Club’s performance and standing • Players’ performance • Possible player transfers in the coming 5 years Actual assessment of club partnership selection and seeking opportunities for maximizing ROI !
  • 30. THE CLUB’S PARTNERSHIP – THE DO’S AND DON’T’S - DO’S - Partner with: Clubs on the rising trend of performance Clubs with history and achievements Clubs with solid fan-base in the region Clubs that match the brand’s characters Clubs that will add value to the brand & sub-brands - DON'TS - Avoid partnering with Clubs oversaturated with sponsors Clubs that have existing partners in your region Clubs that will result in paying the premium for the “club brand” rather than actual benefits and added value achieved from partnership
  • 32. JERSEY/TEAM SPONSORSHIP More than walking billboards and advertising media; it is a vital part of the brand image of their sponsors.
  • 33. Most successful in terms of brand exposure over the past decades JERSEY/TEAM SPONSORSHIP
  • 34. Pictures of star soccer players with Jersey sponsorships decorate the front and back pages of newspapers particularly in the Arab region JERSEY/TEAM SPONSORSHIP
  • 35. BRANDS HAVE INVESTED HEAVILY IN JERSEY SPONSORSHIP MOSTLY OF FOOTBALL CLUBS IN RECENT YEARS Middle East companies have increased their overall share by 26% across the 6 top leagues (capturing 18% SOS) TOP 4 Investing Countries in Jersey Sponsorship (2005- 2015)
  • 36. JERSEY SPONSORSHIP - PROS • Significant Exposure • Brand Loyalty • Revenue opportunities (out of Jersey’s Merchandizing Sales) • Qualified Audience • Ability for Exclusivity • Community Involvement – If covered by the overall partnership deal High Return on Investment when well negotiated!
  • 37. JERSEY SPONSORSHIP – KEY WATCH OUTS There are a number of watch outs to Jersey sponsorship mostly: • Price increases and chaotic pricing scheme • Possibility of alienating customers from rivals’ markets
  • 38. JERSEY SPONSORSHIP – COST OF ELEMENTS • As a sponsor you should reach an agreement with the sports body as to what the project is worth in terms of :  media exposure,  audience reach,  press exposure,  and the less tangible benefits of improved brand image, and market and product positioning.  Defining the cost of a sports should be approached on a case-by-case basis.
  • 40. WHATEVER YOU DO • Be entertaining • Stand out • VW and Al Hilal FC
  • 41. WHATEVER YOU DO • Be entertaining • Stand out • VW and Youth
  • 42. WHATEVER YOU DO • Be entertaining • Stand out • Al-Hilal Vs Bayern Munich
  • 43. • Give people the opportunity to join a community  Nike events (about 120,000 people in London alone)
  • 44. • Have a hero-product?  Beckham = Audi  Be the ‘mother’ of your category or challenge the leader
  • 45. IF YOU WANT TO GET INVOLVED IN FOOTBALL • Be consistently involved and be associated with football as well as WC • Coca-Cola • If you have the money to be an official sponsor, don’t think the job’s done • JVC, Travelex etc. • Don’t think being an official sponsor is the best way; aggressive and smart ambush football association can hurt
  • 46. DO NOT ISOLATE THE SPONSORSHIP INITIATIVES FROM OTHER MARKETING & COMMUNICATION ELEMENTS…
  • 47. SPONSORSHIP IF NOT WELL PREPARED AND ASSESSED MIGHT TURN INTO A CATASTROPHE OVER THE LONG RUN.
  • 48. THE AUDIENCE SHOULD GO FOR AN EXPERIENCE AND NOT EXPOSURE.
  • 49. JERSEY BRANDING WILL NOT AFFECT THE SALES OF MERCHANDISING. FANATICS WILL PURCHASE THE JERSEY WHATEVER # OF BRANDS ARE ON THE SHIRT.
  • 50. THE MARKET IS STILL NOT PRICE SENSITIVE!