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Driving Business Through Sport

 
Introduction
Overview
Free Samples
Table of Contents
Who Should Buy?
The Author
Reviews
The Market Overview
Formulating Strategy
Research and Evaluation
Sponsorship Types
Major Case Studies
Direct Marketing in Sport
Special Events
The Marketing Disciplines
Understanding the Risks
Television and New Media
Tables and charts

Print copy:
Content 1
THE MARKET OVERVIEW
 

Chapter summary

THE EUROPEAN SPONSORSHIP MARKET

Market share by country and region

The growth in sponsorship expenditure

European cross border differences  

EUROPEAN SPORTS SPONSORSHIP RIGHTS COSTS

European sponsorship rights costs breakdown

Football

Formula One

The Olympic Games

Sailing

Golf

Tennis

Athletics

Le Tour de France 

Ice Hockey

Rugby Union

Rugby League

Cricket

Snooker

Miscellaneous

SPONSORSHIP INDUSTRY ANALYSIS

Sponsorship by industry sector

Top ten sponsoring industries

Significant industry sectors

Motor industry

Telecommunications

Sports clothing

Brewing Industry

Top Sponsoring Companies in Sports

The source of European sponsorship expenditure

A comparison of cross-border industry spend

The value of sponsorship contracts

Sponsorship by sport

Top 10 Sponsored Sports

Sponsorship by sporting event

Sponsorship by type

Sport v Arts

The true cost of sponsorship

The potential benefits of sports marketing

The value of sports based marketing compared to advertising spend

Media value

Awareness

Impact on sales

Grass roots initiatives

Direct marketing

The role of sponsorship in sport

Formula One

Football

The Olympic Games

Sailing

Golf

Tennis

Public attitudes towards sponsorship

MERCHANDISING MARKET SIZE

CORPORATE HOSPITALITY MARKET SIZE

THE POPULARITY OF EUROPEAN SPORT

Popularity according to research

Attendance at major European sports events

Football

Formula One

Tennis

Golf

The Olympic Games

Athletics

Sailing

The Tour de France

Popularity by television viewing

The most watched sports programmes by country

Television statistics for major European sports

Football

FIFA World Cup

UEFA European Championships

UEFA Champions League

Formula One

The Olympic Games

Sailing

BT Global Challenge 1996/97

The Whitbread Round the World Race 1997/98

Athletics

IAAF Golden League

The European Championships

Tennis

The ATP Tour

Wimbledon

Roland Garros French Open

Cycling

The Tour de France

Internet site visits

Television rights costs

The rate of growth of TV sports rights costs

The impact on sponsorship

ISSUES CONFRONTING EUROPEAN SPORT

Tobacco sponsorship

Formula One and tobacco

The growth of technology sponsors in Formula One

Increased Formula One investment from the motor industry

Future options for Formula One

Snooker and tobacco

Conclusion

Alcohol sponsorship

The changes to sporting events

Football

Football finances

The abolition of the transfer system

European ‘Super League’

The televising of a Super League

The position of UEFA

The threat of a legal challenge

Expert’s predictions

The Atlantic League

Motor racing

Tennis

Athletics

Rugby

The threat of a breakaway Union Super League

The Commercialisation of European sport

 

Overview 2
FORMULATING STRATEGY
 

Summary

THE BENEFITS OF SPORTS RELATED ACTIVITY

The benefits of using sport to deliver business objectives

Credibility

Emotional buy-in

The benefits of sports-based marketing

The advantages/disadvantages of sponsorship

Advantages

Disadvantages

The A-ERIC Model

Association

Exposure

Relationships

Integrated communication

SETTING OBJECTIVES

The five common failings in objective development

Objectives delivered through sport  

Increasing sales

Developing customer loyalty

Growing brand awareness

Developing new markets

Internal communications/motivation

Improving staff recruitment

Developing business-to-business relationships

Launching new products

Broadening the customer base

Developing community relationships

Broadening distribution

Developing product knowledge

Reassuring the financial community

Good Citizenship

Development of post-merger identity

Miscellaneous

Changing/revitalising brand image

Case Study: Flora London Marathon

Background

Objectives

Implementation

Evaluation

On going activity

Multiple objectives

SPONSORSHIP STRATEGY

The internal audit

Products

Market

Values

Communication

The role of agencies within the strategy

The different types of agency

Sponsorship selling agencies

Implementation agencies

Strategic agencies

Specialist agencies

Sponsorship objectives

Consumer Objectives

Developing the sponsorship strategy

Acquisition template

Exploitation strategy

Activation and tools

The role of research within the strategy

Determining the length of a sponsorship

The development of new objectives

Revitalising the association

Case Study: Robinsons and tennis

Background

Brand range

Sponsorship history

Implementation

The use of Tim Henman

Robinsons Aces

On-court branding

Wimbledon activity

Conclusion

SETTING THE BUDGET

Cross-border budget contributions

Underestimating the budget

Budgeting for staff time

The total sponsorship cost

Agency fees

Opportunity costs

 

Content 3
RESEARCH AND EVALUATION
 

Summary

RESREARCH STRATEGY

When should research begin?

Choosing an agency

Research objectives

The SIS approach

Media Evaluation

Consumer research

Timing

PRE-RESEARCH

The lack of pre-research in sponsorship

Six initial steps

The target audience

Matching the target audience to the sport

Tennis by demographics

Cross border differences in sports’ profiles

Matching the sport to the desired brand image

Assessing the popularity of a sport

Researching competitor/co-sponsor activity

Benchmarking

Awareness

Image

Miscellaneous

Potential image

The use of databases

Target Group Index Europa

Lifestyle profiling

Geodemographic profiling

Combining different databases

Data from the general market research community

Identifying a suitable property

FINDING AND ASSESSING THE PROPERTY

Property searches

Focus group studies

Advantages/disadvantages of focus groups and studio tests

Advantages

Disadvantages

The Sport+Markt approach to the use of studio tests

Property evaluation

Predicting media value

Valuation models

The IEG Valuation Service

Valuation methodology

The role of the sports bodies  

Case Study: The International Olympic Committee -The Power of Brand Olympic

Objectives

Olympic attributes

Competitive Comparison

Demographics

Brand opportunities

Conclusion

Research material from smaller sports bodies

The Internet as a research tool

Sporting Insights

Tracking sports fans on the Internet

On-line consumer panels

EVALUATING SUCCESS

Day after recalls/Event checks

Day After Recall advantages and disadvantages

Advantages

Disadvantages

Tracking

Tracking advantages and disadvantages

Advantages

Disadvantages

Case Study: Green Flag Sponsorship of the England Football Team

Research findings

Conclusion

Evaluating broadcast sponsorship

MEDIA EVALUATION

The danger of taking media values literally

Learning from media evaluation

Verification

Television evaluation

The potential of television evaluation

The IFM Medienanalysen method

Event index

Sponsor-index

Reporting

Media Reporting

The hierarchy of sponsorship types

The Spindex method

Press evaluation

The ISL method

The Echo Favourability Rating

Issues

Messages

Sources

Presentation

UK Press exposure -selected examples

Internet evaluation

Independent site traffic analysis

Media value

The SiS approach

Monitoring and content analysis

Site quality

Missed opportunities

Policing, compliance and cultivation

Control of broadcasts

Radio evaluation

 

Content 4
SPONSORSHIP TYPES
 

Summary

SHIRT/TEAM SPONSORSHIP

The range of sponsorship rights

Advantages/disadvantages of shirt sponsorshop

Case Study – The Sega sponsorship of Arsenal, Sampdoria, St Etienne and Deportivo La Coruna

Objectives

The choice of clubs

Geographical location

Community involvement

Implementation

Conclusion

THE USE OF PERSONALITIES

The benefits of individual endorsements

Case study: Red Bull

Background

Objectives

The choice of athletes

Tiers of sponsorship

Red Bull as an event organiser

Team sponsorship

Conclusion

Case Study: Pele MasterCard

Background

Pele’s attributes

Advertising

Affinity Cards

Public Relations

Personal Appearances

Miscellaneous

Results

Conclusion

EVENT SPONSORSHIP

Event ‘ownership’

Sponsorship tiers

Event ‘Partnerships’

The benefits of partnerships

Reduced rights costs

Partnership tends to be limited to small brand ‘family’

Product category exclusivity

Opportunities to cross promote with other partners

Exclusive Packages

The benefits of exclusive packages

Event ‘ownership’

Increased exposure

Prime hospitality facilities

Trophy presentations

Exclusive licensing/merchandising

Rights costs are usually lower than partner costs for global ‘mega events’

Case Study: The FA Carling Premiership

Background

Objectives

Implementation

Evaluation

Conclusion

VENUE SPONSORSHIP

Attitudes to venue sponsorship

Advantages of venue sponsorship

Sponsorship contracts are much longer

The relationship with fans can be closer

TV, radio and press credits are frequent

Branding

Miscellaneous

Case Study: Bolton Wanderers Reebok Stadium

Background

The four reasons behind Reebok’s approach

Objectives

Integration of different sponsorship types

Exclusivity

Secondary Venue Rights

Stand sponsorship

Official beer/soft drink

Official food supplier

Creche sponsor

Conclusion

TECHNOLOGY SPONSORSHIP

The benefits of technology sponsorship

Technology sponsors of major events

Technology and Formula One

Logistical support

Computer aided design

Telemetry

Team communications

Internet/intranet

Data storage

Trade support in Formula One

Case Study: Jordan Formula One and its technology partners

Hewlett Packard

Imation

Lucent Technologies

EMC

Brother

ESAT Digifone

Conclusion

Technology and Sailing

Sailing’s technology requirements

Relationship building opportunities for technology sponsors

Case Study: BT and Global Challenge 2000/01

Background

Objectives

Technical features

Development of business relationships

Research into ‘virtual teams’

Conclusion

Technology sponsorship in major sporting events

Case Study: IBM - Nagano Olympic Winter Games 1998

Background

Objectives

Technology Summary

Games Management

Results System

Commentator Information System (CIS)

Official Nagano Olympic Games Website

Marketing Strategy

Key Olympic Marketing Programmes

Olympic Technology Marketing

IBM On-Site Presence

Look of the Games

IBM's Business Partner Executive Conference (BPEC)

The Official Nagano Olympic Winter Games Web site

FanMail

IBM Olympic Web Site

Public Broadcast Station (PBS)

Ongoing Post-Games Marketing

Core Leveraging Marketing Materials

Leveraging Summary

Research/Results Summary

Conclusion

BROADCAST SPONSORSHIP

The advantages of broadcast sponsorship  

Promoting broadcast sponsorship

Broadcast sponsorship and ambush marketing

Bitburger and the FIFA World Cup 1998

Countering the broadcast ambusher

Diminishing opportunities?

The creative treatment of bumper breaks

Case Study: Texaco UK  - Formula One - ITV

Background

Objectives

Programme introduction

Bumper breaks

Programme exit

Cumulative exposure

Audience figures

Control of the message

Pit Stop Promotion 1997

Results

Broadcast sponsorship results

Conclusion

Sponsor-funded programming

 

Content 5
MAJOR CASE STUDIES
 

Summary

CASE STUDY:  SCHWEPPES AND FORMULA ONE

Background

Objectives

Why Formula One?

The rights package

The financing

Implementation

Consumer promotions

Trade promotions and activities

Joint promotions

Bottler incentives/hospitality

Media advertising and sponsorship

Public relations

Trade incentives/hospitality

Product and packaging

Merchandise

Internal motivation and communication

Internal organisation structures

Resources

Evaluation

Qualitative feedback

Media value – television

Media value – press

Image transfer research

Is the brand being revitalised?

Does the sponsorship provide a flexible promotional platform that creates synergies?

Has hospitality been levered successfully?

Conclusion

CASE STUDY: UPS OLYMPIC GAMES

Background

Objectives

The media strategy

Results

UPS Nagano Olympics

European marketing initiatives

Retail Scratchcard

Olympic sports legacy

WinterFest

Good luck cards

Merchandising

PR programme

Advertising

Broadcast sponsorship

Direct mail

Employee Programmes

Athlete training assistance programme

Founder’s day lucky draw

Safety programmes

Team building

The call to excellence

Quest to be best

Running for gold

Changes for Sydney

Conclusion

CASE STUDY: MASTERCARD - FIFA WORLD CUP 1998

Background

Objectives

Ten specific objectives

Promotions

UK retail promotion

Victoria Wine

JJB Sports

Total Fuel and Oil

Alpha Retail

WH Smith

World Cup Marketing Campaign Results

Television

Miscellaneous World Cup results

Brand Research

Consumer feedback

Member feedback

Conclusion

CASE STUDY: MERCEDES-BENZ – ATP TOUR

Background

Objectives

The sports marketing concept

The Mercedes-Benz/ATP Tour concept

The basic benefits package

The integrated marketing concept

Key visual communication

Advertising

Programme sponsorship

Customer relations

Product PR

Sales promotion

Trade marketing

Public Relations

Results

Media effect

Awareness

Credibility

Image

Advertising

Evaluation summary

Conclusion

CASE STUDY: BMW – THE SPONSORSHIP APPROACH

Background

Sponsored events

Conclusion

CASE STUDY: WHITBREAD ROUND THE WORLD RACE

Background

Business Challenges

Personnel welfare

Recruitment

Branding

Objectives

External

Internal

The choice and attributes of the property

Strategy

Internal Exploitation

Presentations

Internet

Newsletters/press releases

Sales targets and incentives

Clothing

Personnel events and sailing days

External exploitation

Continuous marketing

Education

Launch/homecoming

Customer and supplier events

The media

Sponsorship partners

Evaluation

Internal

External

Specific measurements

Miscellaneous

Conclusion

CASE STUDY: GUINNESS AND THE 1999 RUGBY WORLD CUP

Background

Objectives

The target market

External

Internal

Implementation

Above the line

Broadcast sponsorship

Advertising

Promotions

Off trade

On trade

Public relations

Awareness

Story placement

The streaker prevention kit

The 119 ½ second challenge

The emergency chair lift

The Pacific Islanders

Trade PR

Diary columns

The Guinness Media Club

The RWC Guide

Hospitality

Internal exploitation

Trade loaders

Signage

Website

Additional rugby sponsorship

Guinness RWC ambassadors

Miscellaneous activity

Guinness head

Guinness Worms

Mr Blackstuff

Pouring rights

Double-decker buses

World record roar

Events

On-pack branding

Logo usage

Results

To increase consumption in priority markets

France

Australia

South Africa

Great Britain

Awareness/dominant sponsor

To reinforce ‘brand essence’

South Africa

Great Britain

Canada

France

Miscellaneous

To create one, consistent global identity

Leverage opportunities

Motivation/business relationships

Conclusion

 

Content 6
DIRECT MARKETING IN SPORT
 

summary

DATABASE MARKETING

The benefits of database marketing

Profile reports

Creating profile reports

Case study: English Football Leagues 1,2,3 profile report.

Case Study: Sports Marketing Intelligence

Data composition

Targeting individuals

General profiling

Sponsorship evaluation

The value to football clubs

Interpreting the data

Conclusion

MARKETING THROUGH SPORTS PROPERTIES

Affinity Marketing

Low uptake of affinity schemes

The potential growth

Case Study: Bank of Scotland sports affinity programme

The marketing programme

Payment structure

Royalty payments

The future

The marketing of Sports Properties

Case Study: Olympiakos CFP

Background

Planning for the future

Catering to the fans

Affinity marketing

Publishing offshoot

Merchandising

Sponsorship

Advertising

Creativity

Conclusion

Case Study: Rangers’ use of technology in customer relationships

Background

Commercially naivety

Internal resistance

Customer relationship management strategy

Smart card systems

Quality data strategy

Conclusion

 

Content 7
SPECIAL EVENTS
 

Summary

The benefits of using special events

Objectives

Media strategy

USING SPECIAL EVENTS TO ENHANCE SPONSORSHIP

Case Study: UPS WinterFest

Objectives

Features

Marketing activity

Results

Conclusion

SPECIAL EVENTS IN ISOLATION

Case Study: Ballantine’s Special Events

Background

Objectives

‘Molecular marketing’

Concept

Results

Conclusion

PARTICIPATION EVENTS

Consumer programmes

Case Study: John Smiths Angling Championship

Background

Objectives

Features

Conclusion

Creating loyalty through participation

Case study: Vittel and French grass roots sport  

Background

Sports participation in France

Water consumption during sports activity

Le Club Vittel

Objectives

Implementation

1998 Results

Le Club du Sport concept

Club offers

Club member’s offers

Conclusion

Case Study: Walt Disney Italia - Topolino Sport

Background

Sport and the youth market in Italy

Objectives

The concept

Marketing activity

Results

Conclusion

Participation through the media

Case Study: The Daily Telegraph Fantasy Football League

Background

Objectives

The Concept

Results

Fantasy cricket

Research results

The introduction of sponsorship

Maintaining interest

Conclusion

Employee programmes

Case Study: Opel World Cup ‘98

Business-to-business participation programmes

Case Study: Danone and Galbani Big Brand Training Camps

Background

Objectives

Strategy

Implementation

Results

Conclusion

 

Content 8
THE MARKETING DISCIPLINES
 

Summary

SALES PROMOTION

Benefits of sales promotion

Using sports-based promotions to achieve listing

Case Study: Umbro - “Wahlen Sie Pélés Dream Team”

Objective

Implementation

Results

Bringing the sponsorship to life

Retail Promotions

Retailers as sponsors

Case Study:  Sainsbury’s/England National Football Team

Objective

Implementation

Results

Conclusion

The potential range of collector schemes

Case Study Shell - Turkey

Objectives

Implementation

Results

Generic promotional environment

The link to official brands and licensed products

Retailer association with an official brand

The legal aspect to running promotions in Europe

PUBLIC RELATIONS

The potential value of press coverage

Case study: Cable & Wireless Round the World Challenge.

Background and objectives

The event overall

The novice crew

The boat design

Corporate hospitality

Case Study: Swedish Match - The Whitbread Round the World Race

Opportunities for media exposure

Matching the property to PR objectives

Co-ordination with other parties

Internal integration

The importance of timing

Delivering the right message

Cross Border Initiatives

Generating awareness

Story placement

Press Hospitality

Branding opportunities

Self Publishing

The benefits of self-publishing

Case Study: Jordan Grand Prix – J Magazine

Objectives

Implementation

Sponsorship opportunities

Conclusion

Photography  

Case Study: Schweppes Formula One - Photography

CORPORATE HOSPITALITY

The benefits of hospitality programmes

Who should be entertained and why?

Choosing the event

The popularity of different events

Invitations

Using specialist agencies

Agency credentials

Financial security

Hospitality packages

Hospitality costs

The role of the host

Evaluation

Case Study: Quest and Formula One

Background

Objectives

Implementation

Conclusion

Case Study: Deloitte & Touche Consulting Group and Tottenham Hotspur

SIGNAGE

The importance of signage to sponsorship success

Case Study: Johnnie Walker Ryder Cup 1997

Signage Types

Perimeter signage

Design

Colour

Size

Position

Case Study: 1998 Murphy’s Irish Open

Message

Design

Environment

Case study: Licher German Open Am Rothenbaum

Information signage

Environmental Signage

MERCHANDISING

The different types of merchandising

Branded promotional merchandise

Retail Merchandising

The potential of merchandising in brand development

Promotional mErchandising

Case study: Philips Powerlife batteries and Euro 2000

Background

Powerlife objectives

Implementation

Merchandise range

Promotional mechanic

Consumer

Trade

French marketing activity

National promotion

Customised promotions

Sales results

Europe overall

France: Hyper Market/Super Marche

Conclusion

Matching the premium to the brand and sport

VIP merchandising

Merchandising variations within Europe

Variations in consumer taste

Variations in merchandise practicality

Variations in the legality of merchandising

The importance of quality

Licensing rights

Design regulations

Retail merchandising

Enhancing the brand

Co-branded merchandising

Adverse publicity

Sports bodies merchandising to the fan base

Football

Formula One

Potential merchandise sales

Ferrari

Merchandising online

 

Content 9
UNDERSTANDING THE RISKS
 

Summary

CONTRACTS

Renewal Rights

Safeguarding television rights

Conflicting Sponsors

Adverse/reduced publicity

Hospitality rights

The sponsorship of a sports personality

Exposure

Behaviour

Activities

Conflicting endorsements

CONTINGENCY PLANNING

The safety and well being of individuals

The management of information

Internal communications

External communications

Media communications

Case Study: Royal & Sun Alliance Challenge

Crisis management objectives

Crisis management procedures

External Risks

Technological risks

The response to disaster

Media coverage

Human behaviour and adverse publicity

Case Study: Française des Jeux 1998 Tour de France Drug Crisis

Background

The position of Française des Jeux

The five-point plan

Sporting considerations

Internal risk assessment

Insufficient lead-time

Project resourcing

Access to funds

Senior management buy-in

Lack of global sponsorships

AMBUSH MARKETING

Definition  

Unauthorised use

An event

Without permission of the owner

The different types of ambushing.

1. Promotional advertising or activities at the event This has already been referred to above.

2. Purchase and use of television coverage

3. Airing of television commercials during sponsored events

4. Sponsorship of individual teams or athletes rather than entire sporting contests

5. Contest or sweepstakes surrounding an event

6. Charitable donations allegiances

7. Congratulatory and salutatory messages

The role of research in policing ambush marketing

Conclusion

INSURANCE

What is insurable?

Public liability

Balance sheet protection

Over redemption

Death and disgrace

Cover of performers

The cover of an event/property

 

Content 10
TELEVISION AND NEW MEDIA
 

Summary

MEDIA OWNERSHIP

The rise of Vivendi

The Murdoch expansion

SPORTS RIGHTS ON PAY-TELEVISION

Subscription television

Pay-per-view

Italy

Costs

Spain

UK

France

Germany

Sweden

Conclusion

SPORTS BROADCASTING REGULATIONS

Listed Events

Greece

Spain

Sweden

The UK

Belgium – Flemish Community

Belgium –French Community

The Netherlands

Germany

Portugal

Denmark

Italy

Ireland

Austria

Sweden, Finland, Spain and Luxembourg

Conclusion

THE IMPACT OF NEW MEDIA AND TECHNOLOGY

Projected changes to sports broadcasting

Interactive television

The BSkyB interactive service

The Canal Plus Formula One Supersignal

Conclusion

Virtual advertising

Current potential

The benefits compared to traditional event branding

Who owns the rights?

Virtual product placement

Can it be regulated?

The EBU 12-point memorandum

Commercial potential/dangers

The Internet

Growth rates in Europe

Opportunities for marketing

Case Study: Kabel New Media - ATP Tour

Background

Features

Sponsorship

Regional filters

Visitor profile

Mercedes-Benz’s extension of ATP sponsorship

The Lucent Technology partnership

LucentVision maps

Lucent Technologiy’s plans

Branding on the Internet

Leveraging the banner and reflecting the brand

Case Study: Injini’s online promotional games

Concept

Participation mechanic

Ancillary activity

Revenue generation

Conclusion

The Future of sports broadcasting

Programme delivery

Mobile communications and sport

Worldzap

Case Study: Vodafone and Manchester United

The impact of communications technology on sponsorship

Changes to the viewing experience

The effect on television rights

Off-screen-purchasing technology

Personal Video Recorders and the Electronic Programme Guide

The implications for brand marketing

Content
TABLES AND CHARTS