A REPORT ON

BRAND BULDING
OF VOLKSWAGEN
Polo R Cup -2013



2

SUMMER INTERNSHIP PROGRAM

A REPORT ON
BRAND BUILDNG OF VOLKSWAGEN










Prepared by -
Niraj Yeole
Volkswagen India Pvt. Ltd.

3

REPORT ON
BRAND BUILDNG OF VOLKSWAGEN


By:
Niraj Yeole
12BSP0787

A report submitted in partial fulfilment of the requirement of PGPM
Program of IBS Mumbai
Submitted to:

Date of Submission: 14/07/2013


Prof. Mahendra Singhvi
Faculty Guide,
IBS-Pune
Mr. Mihir Barve (Marketing
Manager)
Volkswagen Motorsport
India
4

Declaration
This project entitled Brand Building of Volkswagen submitted to IBS Mumbai, is a
record of an Original work done during the period 12
th
March, 2013 to 01
st
June, 2013 under
the guidance of Mr. Mihir Barve, Marketing Manager, Volkswagen Motorsport India and
Prof. Mahendra Singhvi, IBS Pune. This project work is submitted in the partial fulfilment of
the requirements for the award of the certificate of Post-Graduate Programme in Management
(PGPM).
The results embodied in this report have not been submitted to any other university or
institute for the award of any degree/diploma etc.
Adhering Volkswagens privacy policy, financial details are not discussed/disclosed in the
report.

















Name: Niraj Yeole
Date: 14/07/2013
Place: Mumbai
5

Acknowledgement
I have taken sincere efforts in making the project a case that would not only help my
professional growth in future but also give value addition to Volkswagen Motorsport India.
I express my sincere thanks to my project guide, Mr. Mihir Barve, Marketing Manager,
Volkswagen Motorsport India and Prof. Mahendra Singhvi, IBS Pune for guiding me right
from the inception till successful completion of the project. I would like to express my special
gratitude and thanks to Mr. Prithviraj Siddappa, Head of Volkswagen Motorsport India, for
giving me the opportunity to work with such esteemed organization.
I would also like to thank Prof. Madhavi Garikaparthi, Prof. Rachna Sharma and Prof.
Sudha Jayashankar for guiding me throughout the project. Their support stood not only for
professional learning but also for personal improvements.
I would also like to thank my colleagues Mr. Bhushan Bhole, Ms. Gasha Alawani, Ms.
Manju Karishma Sakhrani, Mr. Nikhil Arlikatti and Ms. Shivani Kanoongo, for their
help and cooperation throughout my project.

















Name Niraj Yeole
Enrollment number 12BSP0787
College - IBS-MUMBAI
Batch 2012-2014
Email- nirajyeole@yahoo.co.in

6

Contents
Summary ................................................................................................................................................. 7
Introduction ............................................................................................................................................ 8
The Volkswagen Group ......................................................................................................................... 10
Volkswagen India Pvt. Ltd. .................................................................................................................... 11
Motorsport ............................................................................................................................................ 11
Motorsport in India ............................................................................................................................... 12
Volkswagen Motorsport ....................................................................................................................... 13
Volkswagen Polo R Cup ......................................................................................................................... 15
Brand Management .............................................................................................................................. 18
Sponsorship Development .................................................................................................................... 19
Advertising and Sponsorship ................................................................................................................ 20
Sponsorship development for Polo R Cup ............................................................................................ 22
Sponsorship development process: ...................................................................................................... 22
SWOT analysis - Polo R Cup .................................................................................................................. 32
Achievements: ...................................................................................................................................... 39
Conclusions ........................................................................................................................................... 40
Recommendations ................................................................................................................................ 41
Glossary ................................................................................................................................................. 42
Bibliography .......................................................................................................................................... 43


7

Summary
The report is tasked to look at the marketing mixs role in success of a business. The project
is focused on understanding various components of Advertising and promotional activities
carried by Volkswagen India and other businesses associated with the Polo R Cup event.
Brand managers use different strategies to promote their brand through different
forms/channels and reach at the customers touch points. The project had a special emphasis
on the Sponsorship development. This involved interacting with PR manager, event
organizing team, Brand Managers of other companies.
Sponsorship development include various data collection, understand prospective companys
current marketing plan, making space for Polo R Cup in their marketing plan by customizing
offerings that would attract corporate/brand managers and reach their target market.
Over 70 brand managers were approached during the project. Even failure in deal closures,
left a lot of learning on brand management strategies adopted by different companies. This
includes effect of marketing mix on sales of the company, effect of financial stability and
growth prospects of brands on its marketing mix, what opportunities small businesses and
business conglomerate bag to target their market.
Volkswagen Motorsport India Polo R Cup creates a set of market distinguished with
psychographic, demographic and societal characteristics which suits numerous marketers.
Factors that count while designing a marketing mix for a particular brand are - stage in the
product life cycle, market share and consumer base, competition, advertising frequency,
advertising budget, alternatives for the investment.
Polo R Cup gives exposure to its associates through Print advertising-Newspapers and
Community magazines, Broadcast media-Television and Radio, Outdoor advertising and
digital media (Internet) - Motorsport website, Facebook, Twitter.
The project further highlights the brand management and consumer decision journey, how
can a brand manager get a mix of marketing techniques to form an efficient promotion mix.
8

Introduction
Businesses face new challenges and intense competition every day - lowering costs to reduce
selling price, Customer-First approach, One-stop-shop solutions, continuous improvement,
investment and expansion opportunities, etc., are amongst the fundamentals, parameters and
tools used by businesses for new customer acquisition, retain existing customers and create
value for its customers, investors and stake holders.
Brand awareness, Brand recall, Brand image and Brand attitude play important role in
connecting organization to its target market. These elements form a bridge to pull potential
customers to its set of consumers.
Sponsorship is a rapidly growing tool in both commercial and social marketing areas, in India
and overseas.
Sponsorship is still very much in its infancy, especially in the sports arena. With this in mind,
there is unlimited scope and opportunities to broaden ones competitive advantage by
increasing credibility, image, visibility and prestige in sponsoring events attracting the
market.
Increase in viewership of an event or expectation of an event will be viewed, discussed,
published or referred by the target market, these estimates and research outcomes pull
marketers for marketing their product as sponsor or partner for the event.
It is an element of the integrated marketing plan through which companies build strong
customer relationships, increased brand visibility, brand awareness and create value for their
customers and for themselves.
Audience can be clustered by their demographic, psychographic and societal characters.
Marketers decide on their target market for promotion techniques, positioning ideas and
attitude to increase visibility of their brand and in turn drive purchases.
Volkswagen Motorsport India Polo R Cup is a platform to showcase and demonstrate its
technological advancement, brand building, increase in brand awareness and brand visibility
for Volkswagen Products. In todays fast pace, where marketers do not want to evade any
opportunities to market their products, avoid losing its visibility and retain or climb the top
9

spot of the customers evoked set, failure to which results losing current and potential market
share to competitors. Volkswagen Motorsport India invents a platform for other marketers to
market their products during the event and during the promotional activities carried by
Volkswagen Motorsport India.
Marketing opportunities include sponsorship rights, branding on huge hoardings, invitation
passes, branding at the food court, etc. Every possible place which gets scanned through
human eye is area of opportunity for the marketer to create its visibility.

10

The Volkswagen Group
1

The Volkswagen Group with its headquarters in Wolfsburg, Germany, is one of the worlds
leading automobile manufacturers and the largest carmaker in Europe.
The Group comprises twelve brands:
Volkswagen Passenger Cars
Audi
SEAT
KODA
Bentley
Bugatti
Lamborghini
Porsche
Ducati
Volkswagen Commercial Vehicles
Scania
MAN
The product spectrum ranges from motorcycles to low-consumption small cars and luxury
vehicles. In the commercial vehicle sector, the products include ranges from pick-ups, buses
and heavy trucks.
The Volkswagen Group is also active in other fields of business, manufacturing large-bore
diesel engines for marine and stationary applications (turnkey power plants), turbochargers,
turbo machinery (steam and gas turbines), compressors and chemical reactors. It also
produces vehicle transmissions, special gear units for wind turbines, slide bearings and
couplings as well as testing systems for the mobility sector.
In addition, the Volkswagen Group offers a wide range of financial services, including dealer
and customer financing, leasing, banking and insurance activities, and fleet management.
The Groups goal is to offer attractive, safe and environmentally sound vehicles which can
compete in an increasingly tough market and set world standards in their respective class.


1
(The Volkswagen Group, n.d.)
11

Volkswagen India Pvt. Ltd.
Headquartered in Pune, Maharashtra (India), the Volkswagen Group is represented by three
brands in India: Volkswagen, Audi and Skoda. The Volkswagen Group has been active for
more than 10 years in India. The journey which began with the entry of the Skoda brand in
2001, Audi brand and Volkswagen brand in 2007. Each brand has its own character and
operates as an independent entity in the market.
Motorsport
2

Motorsport is group of competitive events which primarily involve use of motorized vehicles.
Motorsport can be for non-racing or racing purpose.
Non-Racing Motorsport
Drifting - Driving technique where the driver intentionally over steers, causing loss of
traction in the rear wheels, while maintaining control from entry to exit of a corner
Regularity rallying (TSD-Time Speed Distance Rallying) - Conducted on public roads
which includes off-road and/or track sections and drivers compete to maintain precise
times and precise average speeds on various segments of a predefined route.
Motorcycle trials - Non-speed event on specialized motorcycles where drivers compete
to cross over the trials without losing balance and touching their feet on ground.
Freestyle Motocross - Sport of motorcycle in which motorcycle riders attempt to impress
judges with jumps and stunts
Racing Motorsport includes
Automobile racing or car racing
- Formula Racing or Open wheel racing - variety of single- seater racing,
Formula One, involves an annual World Championship for drivers and
constructors.
- Touring car racing - Road racing that is run with production derived race cars
- One-make racing - Championships employed production-based cars from a
single manufacturer or even a single model from a manufacturer's range.

2
(Motorsport, n.d.)
12

- Stock car racing - Raced on oval tracks, stock cars vaguely resemble production
cars.
- Kart Racing Competing open-wheel motorsport with small, open, four-wheeled
vehicles called karts
Rally Racing - Form of auto racing that takes place on public or private roads with
modified production or specially built road-legal cars
Motorcycle racing (also known as bike racing) - Motorcycle sport of racing
motorcycles which include road racing and off road racing on race track circuits or open
courses.
Air Racing Competition of airplanes
Boat Racing (Water racing) Racing boats on water
Motorsport in India
Motorsport is a popular form of sport in the nation of India. Formula One in particular has
taken off in the country in the last few years. Motorsport is not a mass sport in India, huge
success for The First Formula One Indian Grand Prix which took place in October 2011 at the
newly built Buddh International Circuit created a pathway for making it taste for Indian
market.
The Federation of Motor Sport of India is official governing body of motorsport in the
country.
Motorsport Circuits in India
3

Circuit Location
Buddh International Circuit Gretar Noida
Irungattukottai Race Track Chennai
Kari Motor Speedway Coimbatore

3
(The Federation of Motorsports Club of India (FMSCI), n.d.)
13

Volkswagen Motorsport
In more than 40 years of motorsport history Volkswagen has been setting standards in
Motorsport World.
The brands history in motorsport started in 1966, in formula racing. Formula Vee "V
stood for Volkswagen became an important career step for drivers like Keke Rosberg
(Finnish former racing driver and winner of the 1982 Formula One World Championship) or
NikiLauda (Austrian former Formula One racing driver and three-time F1 World Champion).
With 58 hp and the robust technology of the Beetle it offered favourably priced entry and
high-quality racing for young drivers. Later, one-make cups like Formula Knig powered by
Volkswagen and Formula Volkswagen built upon this line and consistently followed through
on the one-make cup idea with standard chassis.
In comparison with other manufacturers, Volkswagen set the pace on the formula stage as
well. Between 1979 and 1994 Volkswagen, as a Formula 3 engine manufacturer, won 55
international titles. At the prestigious Formula 3 finale in Macau in November 2009 and
2010 Edoardo Mortara celebrated wins "powered by Volkswagen.
Attractive one-make cups in touring car racing
4

In more than three decades Volkswagen has shaped the touring car scene as well. The
Scirocco Cup, as the first one-make cup from 1976 onwards, produced a subsequent Formula
1 driver, Manfred Winkel hock. It was followed by the Golf Cup and the Lupo/Polo Cup
from which numerous talented drivers managed to ascend to higher-level series. Currently,
the Scirocco R-Cup is setting bench-marks in the European racing circuits.
Dakar Rally
Cross country rally racing is the biggest challenge in Motorsport which the Volkswagen
brand tackled at the worlds toughest rally the Dakar a distance of over 9000kms, spread
over 2-3 countries and covered within a period of 2 weeks.



4
(Volkswagen India, n.d.)
14

Scirocco R Cup
The Scirocco R-Cup is worlds first one make cup in which eco-conscious bio natural gas
instead of conventional petrol is being used. Reducing CO2 emissions up to 80%.
Golf GTI Cup
Golf GTI Cup is Volkswagens one make cup tradition in the Far East.
Formula 3
Volkswagen announced its return to Formula 3 as an engine supplier in 2007, the brand continued
a long tradition that spanned the years from 1979-1994. 2010 will go down in Volkswagen
Motorsport history as an extremely successful year of chasing titles (41 victories in a total of 75
races in the 2011 season).
World Rally Championship (WRC)
5

The World Rally Championship (WRC) is a rallying series organised by the Federation
Internationale de l'Automobile (FIA) or International Automobile Federation. World Rally
Cars are built on production 1.6-litre four-cylinder cars with turbochargers, anti-lag systems,
four-wheel-drive, sequential gearboxes, aerodynamic parts and other enhancements bringing
the price of a WRC car to around US$1 million.
Successes in rally sport
Volkswagen has been systematically promoting young talent since 1980. For a decade, the
Golf Rally Cup offered optimum opportunities to young drivers. Concurrently, Volkswagen
in the 1986 World Rally Championship (WRC) clinched the title win in Group A with the
Golf and driver Kenneth Eriksson. In cross-country rally sport the brand achieved its first big
exploit by winning the 1980 Dakar Rally. From 2009 to 2011 Volkswagen became the first
manufacturer to win the legendary rally with a car powered by a Diesel engine. Volkswagen
is creating history once again by re-entering the WRC 2013. After rigorous testing through-
out 2012, the Polo WRC race car is taking the rally by storm by stamping wins in the early
stages.

5
(Volkswagen Motorsport, n.d.)
15

Volkswagen Polo R Cup
6

Volkswagen Polo R Cup is one make race organized by Volkswagen Motorsport India. This
is one of the strategies adopted by Volkswagen to increase its brand awareness, demonstrate
the dominant position in market and bring about recognition and presence in motorsport.
In other words, Volkswagen motorsport is part of Volkswagens marketing mix tools for
Brand Building.
Currently in its fourth season, the Volkswagen Polo R Cup aims at bringing out and
promoting the circuit racing talent in the country, along with supporting and giving
international exposure to the seasoned drivers. Volkswagen Polo R Cup runs 1.4-litre TSI
powered, race-prepared Polo cars on a grid of 20. The 180 hp Turbocharged Stratified
Injection (TSI) 1.4 litre four-cylinder engine largely equates to the production version and
high torque development, easily handles the heavy touring car.
The engine control unit, engine mounts, flywheel, inlet and exhaust systems are modified for
use in racing. The agile suspension too, is fitted with special spring-damper units. Power is
transmitted by a DSG gearbox with modified final drive, gear ratios and a limited slip
differential.
The braking system features particularly ample dimensions and is combined with racing
ABS. The 334-millimetre discs in the front and the 232-millimetre discs at the rear, in
conjunction with the 17-inch wheels, enable enormous deceleration rates. The Race Polo runs
on special JK tyres for dry and wet conditions, which guarantee high levels of grip and
vehicle control.
Based on the high safety standard of the production version, the Race Polo is equipped with a
safety package offering maximum protection to the young drivers in case of an accident. The
HANS (head and neck support) system, which has proved its viability in Formula 1 is
prescribed. This protection is complemented by a roll cage of tubular steel in conjunction
with a racing seat integrated with a head protector. An integrated fire extinguishing system
which is activated in the cockpit and engine compartment in case of a fire adds up to the
safety features of these Race Polos. To prepare the young drivers for higher racing categories,
all cars are fitted with a professional data logging system.

6
(Volkswagen Motorsport India, n.d.)
16

The drivers are chosen from all over the country after a rigorous selection process.
During the two day program, based on various tests, selection committee carefully chooses
13 drivers who would join previous seasons drivers to compete for top honours.
The selected drivers race on the three prominent race circuits of the country-Coimbatore,
Chennai and Delhi. Apart from the championship with six race weekends (a race weekend
includes one day for free practice, one day for qualifying races and the final race day). In last
season, the Polo R Cup drivers experienced competition against the international drivers in a
Night Race, organized on the streets of Colombo, Sri Lanka.
The championship divides the drivers into three categories-
Junior (drivers under 26 years of age, with less than 8 races experience within the last 5
years)
Pro (drivers under 26 years of age, with more than 8 races experience within the last 5 years)
Master (drivers over 26 years of age).
By the end of the season, the winner of Pro category gets to represent India at the
Volkswagen Scirocco R Cup, Germany as a driver-exchange programme. The winner of
junior category gets a free seat in the next season of Volkswagen Polo R Cup.
Rules:
To fulfil the entry cost for the races the drivers can also bring in their sponsors who
would be approved by Volkswagen for a commercial display on the car, the racing suit
and helmet.
The drivers may not perform any modifications on the vehicle. Only the front stabilizer is
three-way adjustable, in addition, the inflation pressure of the tyres may be adjusted.
Per race weekend and driver a maximum of six JK slick tyres are permitted and four rain
tyres.
For the drivers, including the helmet, the HANS system and fireproof clothing, a standard
weight of 75 kilograms has been established. Drivers weighing less than that will be
given respective ballast, which is installed under the driver's seat, to compensate for the
difference.
17

Per event a free practice and a qualifying session, each lasting 30 minutes, are scheduled.
After the free practice and qualifying sessions, respectively, a driver's name is drawn
from the top five who will disclose the data recorded for his or her fastest lap to all the
other contenders.
Points are awarded according to the following scheme: 60-48-40-34-32-30-28-26-24-22-
20-18-16-14-12-10-8-6-4-2. For the first two races of the season, half-points are awarded
in order to reduce the advantage of the experienced drivers over the rookies.
Guest entrants receive no points and no prize money. Registered contenders move up in
the points and prize money classification.
The title winner is not allowed to compete again in the Volkswagen Polo R Cup the
following year.











18

Brand Management
When we talk about brands most people think of Pepsi, Coca Cola, Microsoft, Nike, Adidas,
Nokia, Samsung, Airtel, Vodafone , Hero, etc. These brands are cited with best practices
examples in the Business to Customer (B2C) branding. For these companies, their brand
represents strong asset and element to increase sale of its products.
Branding is about taking something in common and improving upon it in ways that make it
more valuable and meaningful
7

Companies are constantly approached and invited by various groups or business to sponsor
events or activities. For example, Pepsi has been title sponsor for Board of Cricket Council
Indias (BCCI) Indian premier league for next five seasons, starting from 2013.The deal was
signed for INR 396.8 crores.
8
By shelling out such large sum, Pepsi hopes to gain favourable
public attention. Companies put out good money to place their names on physical
facilities such as buildings, stadiums, sporting gears, jerseys worn by players to keep their
names in the publics eye.
Not only the entertainment events, companies partner for important cause such as - Colgate
sponsoring oral health care kiosk, Aircel distributes umbrellas during the monsoon, CRY is
supported by Novartis India Ltd., by donating 2% of value of its sales.
9
By partnering with a
cause many people believe in, the company can enhance its corporate reputation, raise brand
awareness, increase customer loyalty, build sales and increase favourable press coverage.
These sponsorship efforts are not limited to events. Companies also consider celebrities from
movies, sports, television commercials to add glitter to their brand image. Sponsorship is an
investment which gets returns for the business by sales in turn or it gets treated as expense if
it does not affect the sales volume and value.
If a company decides to sponsor an event it need to figure is there a brand fit, does the event
or the physical property is scanned by its target market. A good example of for brand fit is,
Jaguar sponsoring James Bond movies to convey the aggression and performance delivered
by its cars. On the other hand, it does not make sense for Cadburys Bournvita or a baby food

7
(Philip Kotler and Waldemer Pfoertsch, n.d.)
8
(The Times of India, 2012)
9
(CRY, n.d.)
19

brand sponsoring the same movie which will not match the character and treat the deal as an
expense for the business.
Sponsorship Development
Introduction
A sponsor is the individual or group that provides the support, similar to an activity, event or
organization financially of by provision of products or services.
Sponsorships are a business tool used by various companies to achieve defined marketing
and communication objectives. Sponsorship is a cash and/or in-kind fee paid to a property
(typically in sports, arts, entertainment or causes) in return for access to the exploitable
commercial potential associated with that property.
Sponsorship is about two parties creating additional value to each other through their
association. Successful sports organisations are able to link sponsor (the customer) need with
an appropriate product (or property).
Objectives
Most commercial sponsorships have both trading objectives and communication objectives. Trading
objectives mainly refer to securing merchandising rights at events. For example, Energy drink
sponsors an event, as part of their sponsorship arrangement they seek to have exclusive rights that
only their Energy Drink available at the tournament. It is hoped that these forced trials of product
will lead to more favorable attitude to the product and lead to repurchase in other situations.
The two main communication objectives for sponsorships are brand awareness and brand attitude.
However, most sponsorship evaluation has focused on process evaluation (e.g., amount of exposure in
various media), or consumers awareness of event sponsors and the influence of this awareness on
corporate image or attitude.

20

Advertising and Sponsorship
Sponsorship is similar to advertising. Both are used to communicate an organizations
message and image for a product, brand, or service to the target market. Both advertising and
sponsorship aim to increase the salience or relative differences in competitors products
However, the process by which advertising and sponsorship achieve these communication
objectives differ. Advertising is a paid communication in which the medium and the message
are controlled by the advertiser and can be explicitly linked to the relevant organization or
brand.
Corporate goals for sponsorship can be: Increase revenue, create platform for developing
relationships and provide an opportunity to entertain customers in unique environment and
generate benefits for employees
10

Advertising is able to communicate complex messages, both in terms of information and
imagery. On the other hand, sponsorship persuades indirectly by linking the sponsors
message to an event or organizational though the sponsors contract may include advertising
at the event.
Commercial sponsors are concerned primarily with brand names, trademarks, logo, symbols,
and associating these with the image attributes of the sponsee. Hence, most commercial
sponsorship objectives require only limited cognitive processing, mainly via unconscious
associative learning.


10

(Philip Kotler and Waldemer Pfoertsch, n.d.)
21

Type of Media
Media Description Example
Paid media A company pays for media
space or for a third party to
promote its brand
Television commercial, Radio,
magazine, billboard, newspaper,
search engine marketing
Owned A company uses its own
channels to advertise
Catalogues, brochures, website,
Facebook fan page
Earned Consumers create and/or share
the media company creates
Sharing popular commercial
over social media, rankings by
community sites or magazine
Sold Company Invites other
marketers to place their content
on its owned media
An e-commerce retailer sells its
ad space, Facebook,
Magicbricks

In Polo R Cup marketing team we have continuously worked on the sold media category.
Associates/partners for the event get opportunity to place their products, branding, campaigns
in the event. In exchange, other business gives cash or supports the event with its products
and/or services.

22

Sponsorship development for Polo R Cup
Objective of sponsorship/partnering with Volkswagen Motorsport India Polo R Cup is to
create platform for other organizations and businesses to have opportunity to showcase its
offerings to audience and spectators of the event.
Sponsorship development process:
11



1. Identify potential sponsors
The first step is Identify. This is the infancy stage of the process. Everything is fresh and new.
At this stage we look at the options and identify prospective or potential sponsors.
Central to product identification is determining those brands or properties that will best meet
or fit the needs of potential sponsors.
Sponsor needs generally lies within one or more of the following areas:
Support for brand position: This is usually when a new product is launched or a product is
re-branded

11
(Masuda, 2011)
Identify potential sponsor
Development Process
Reaching Sponsor targer market
Recruit
Negotation
Evaluate
Closure
Servicing the sponsor
23

1. New range of deodorants launched by Cinthol which needs brad positioning in
demographics of youth. Godrej Consumer Products limited had initiated its aggressive
marketing campaign during Indian Premier league Season 6
2. Pepsi Official sponsor for Indian Premier League used its investment in the sport by
launching its new product Pepsi Atom (competing Coca Colas Thumps Up) with strong
campaign
Exposure for the Brand: Hero Motocorp, leading two wheeler manufacturers associated
with MTVs reality show Roadies to give higher exposure to its recently latest launch Hero
Impulse.
Increased access to the target audience: A finance company sponsors a sport because the
demographics of the sport match their target audience and the sport provides opportunities to
interact with that demographic.
Carefully identifying the target market for potential sponsors minimizes time wastage and
ensures potential sponsors are not overlooked
There can be a temptation to look at only current contacts or high-profile organizations. This
limits the potential of sponsorship and should be avoided by the identification process.
Developing a list of businesses marketing products/services within the region of activity i.e.
the area in which the event predominately operates. This should not be limited to businesses
with offices located in specific region. Even if the business markets in the given region, it
should be included in the list.
A brainstorming session is an easy way to create this list. Identify as many businesses as
possible and avoid narrowing.
In current project the brands and businesses were distinguished broadly by their sectors as
outlined below:
1. Life style Apparels, Accessories, Watches, Luggage carriers, personal care products
(deodorants, fairness cream, grooming products etc.)
2. Electronics Mobile, Camera, Music system for cars and home, Television,
Computers, Home appliances, Electronic companies, automobile batteries
3. Telecom
24

4. IT Software development firms, Anti-Virus, hardware manufacturers
5. Food and Beverages Fast food, confectioneries, health drinks, carbonated drinks,
Milk, energy drinks, Ready to eat, snacking, whey protein, liquor
companies(surrogate), packaged drinking and mineral water
6. BFSI(Banking, Financial Services and Insurance) NBFCs, Banks, Security trading ,
Insurance companies, Mutual Funds
7. Logistics
8. Hospitality and tourism Hotels, travel and leisure, State tourism, Online travel
portals
9. Automobile Spare part manufacturers, automobile interior manufacturers
10. Miscellaneous Movies, TV channels , Cement, Real estate, Business groups (Future
group, Aditya Birla, Reliance etc.), Pharmaceuticals, Online Shopping retailers
(Myntra, Jabong, Yebhi, etc.)
The list is revised with list of businesses that include sponsorship as part of their marketing
plan or have recently been aggressive in market penetration. (Karbonn Mobile for Champions
league T20, Fiama Di Wills Packed to the rafters, etc.)
Businesses that have not used sponsorship in the past require substantially more work in
creating any successful sponsorship partnership. If organization is also new to the
sponsorship world, it is highly recommended that we use sponsors with previous experience
in Sponsorship.
At this stage we decide not only who should be approached but following elements are
furthermore considered-
- What value will be added to the prospect by partnering the event
- Does the event provide a stage for the prospect to communicate their message to its
target market
- How does it fortify their brand image and visibility
- What opportunities for marketing can be offered during the promotional activities and
the main event
- Is there a brand fit
- Demographics of audience match the target market of potential sponsor
25

There is need to identify own needs during this phase. Having limited time, sponsors that will
offer clear value should be targeted on priority with whom the deal can be finalised. These
are the ones for whom the event meets their needs and offer benefits worth cost.
2. The development process
At this stage we decide how the events and activities can better meet the sponsor. This can
easily be done by dividing our offerings or features of the event in two parts:
1. Generic:
i. Number of race drivers / race cars
ii. Number of races per season
iii. Type of sport
iv. Regions where the races will be organized
2. User features
i. Number of spectators
ii. Demographics of the spectators
iii. Media exposure (Digital, Print, Social, etc.)
iv. Brand recognition
Now, colossal research and findings about listed brands/companies is done to best fit the
needs of the identified potential sponsors.
Below outlined parameters are considered while learning about the potential sponsor
- Their products / Services
- Their customers
- Financial performance in past. Reports are referred from regular releases about
companys financial performance (Balance sheet, annual report)
- Companys strategy to expand New product launch, merger and acquisition
- Companys record of sponsoring different events (specially sports)
- Upcoming events
- Marketing initiatives / plans
o Recent ad campaigns
o Trial campaigns
o Intense and frequency of advertising
26

o Brand Ambassador
This information can be accessed or studied from websites, publicity materials, annual
reports, newspapers, magazines and other sources.

Case

Company: Godrej Consumer Products Ltd.(GCPL)
Product: aer
Description: air fresheners
Launched: June, 2012
Financials: Net profits INR 727 Crore for Financial Year 2012
Competition: Ambi Pur (Procter and Gamble), Air wick (Reckitt Benckise)
USP: Eye catching design and On/Off Switch.
Target Set: Car owners
Sponsorship: Confederation of Indian Industry's (CII) flagship event, the Marketing
Summit 2012
Marketing initiatives: Television Commercial, On Ground and print
Brand Ambassador: Bollywood Actor, Aamir Khan is signed as brand ambassador for
GCPL products
This information was gathered from information available on internet Godrej Website,
Articles and press releases, Community websites (Campaign India, eventfaqs, etc), E-
Newspapers.
3. Reaching Sponsor target market
Here targets are set of marketing managers and brand managers who decide inclusion of
different tools in their organizations marketing mix.
Generation of contacts is crucial stage in sponsorship development. Contact information of
Brand manager, corporate communications manager, media Manager etc. are not easily
accessible. In general practice, communication can happen only through board line numbers
given on organizations website and other media.
Large number of organizations in potential sponsors list gets discarded at this stage.
27

Techniques of contact generation are:
- Personal Individual contacts References from friends, colleagues, professors,
- Contacts from different verticals in organization- Purchase department, Vendor
management team.
- Timely released directories like Autocar professional which has information of
automobile companies and their contact details, Overdrive Magazine
- Social websites LinkedIn

4. Recruit
It is important to understand the role of the corporate marketing manager (the person usually
has to be convinced). Role of the marketing manager primarily takes two responsibilities:
Brand Building and enhance the marketing activities to increase sales.
This is the growing up phase of sponsorship development life cycle. Ideas of creating value
for potential sponsor now grow from a vague impulse into a full-fledged proposal. The focus
is on pitching and selling the proposal. Recruit here is preferable to Pitch or Sell as this
emphasizes the two-way nature of relationship.
The pitch consists of a meeting with interested prospective cantered on presentation of
sponsorship proposal. The aim here is to introduce our product / event, clear communication
of how it can meet perspectives needs
The proposal consists of following components: (Appendix A)
I. Introduction
Introducing the organisation.
Main objective of the organisation
Achievements

II. Introduction to the event
Introduce the event
Objective of the event
Schedule / event calendar
Achievements in previous seasons
28

Technical specifications
Media exposure in previous seasons

III. How the event will meet their needs
Detailed specific sponsor needs that will be met and how they will be met e.g. media
coverage, demographic profile of spectators and viewers

IV. Specifics of sponsorship
Details of the sponsorship package offered which includes deliverables from the
organizer i.e. the host and the receivables from the sponsor. Space allocation for
display/demonstration of their products and services, platform for their
communication, Branding areas, etc.
Specifics of offerings are dependent on the amount sponsorship amount or equivalent
products/services are exchanged

V. The cost
The sponsorship fee - Amount that sponsor will directly pay to the sponsee/host
Signage costs

VI. How to move forward
A clear plan of how the deal can be taken forward. Means of payments, delivering the
products (Barter), and point of contact for hosts.

5. Negotiation
At this stage, both the parties get opportunity to further discuss, develop and negotiate the
exchange (branding from the host, receivables from the sponsor).
The aim is not just to get sponsor on board, but also to gain mutual benefits in long run.
Understanding, needs, value, brand and decision making process is important to effectively
communicate the proposal.
Few simple pointers to maximise chances of converting potential sponsor to a partner-
- Over deliver and under promise
29

- Consider prospects needs as signing a sponsor which is not good fit may be bad deal
for both
It creates avenue for both the parties to develop the relationship to better suit both their needs.
Aim here is to customise the offerings from both the parties. Customization will cover
position for branding space, kiosks at the venue, cross promotion techniques on websites and
social media, etc.
While customising the package or the offer, it should be clear for the negotiator to know what
are the limits, what cannot be customized e.g. logo placement of Volkswagen on roof of the
Race Car cannot be replaced, space allocated to the associate partner cannot be allocated to
other parties.
6. Evaluate
The next stage is to weighing of proposal by the prospective. At this stage not much stays in
control of the sponsee. The prospective evaluates the proposal on its merits and calculates the
benefits brand would get by signing the deal.
One way to ease the anxiety, cross check if the proposal includes detailed information on all
deliverables and receivables that will be traded during the deal. All information, prior
commitments during the recruitment stage, terms and conditions should be made clear to
have hassle free transactions further.
Sponsorship deals have large amount of cash or owned products turn around. Here it is not
only the brand manager who is to be convinced with the proposal, the top management of the
organization takes decision on such deals.
Factors like tax, brand image, return on investment, worth of the deal, man power to be
allocated for commencement of the deal are studied deeply.
7. The close
The close is simply signing the contract. Legal counsel for both parties should be involved in
this stage or process that will provide specific legal elements which need to be covered in the
contract such as intellectual property rights, clauses of contract breached by any of the
parties, clause of event being cancelled for any events, and so forth.
30

At this stage, initial draft of agreement or contract is shared with the sponsor. Once sponsor
agrees to the details mentioned in the draft, contract on legal documents (stamp paper) is
printed, shared and copy of each contract is kept with both the parties (third party if
involved).
8. Servicing the sponsor
Servicing the sponsor is process of delivering what is promised. This is critical step in
ensuring sponsor specification and an enduring long term relationship.
The senior phase of the life cycle, the proposal has matured into a real business deal.
Fulfilment is the most important step in the process and the key to future success. This
is where, we deliver what is promised.
Ensuring the sell is right. Sponsor servicing starts before the contracts are signed. Crystal
clear articulation of promises objectives, and assumptions should be communicated and
thoroughly understood.
Creating timelines, roles and responsibilities for how and when each element of sponsorship
should be planned in conjunction with the sponsor.
At every stage the timeline, sponsor should be in loop of who is doing what and when.
If something is not going as hoped, it should be communicated to the sponsor. Solicit their
input and make them part of the solution. This will add value to the relationship for future.
Protecting the sponsor from ambush marketing, if it is in organizations power, there should
be maximum efforts to prevent sponsors competitors to market their product around the
property or event venue. Competitors usually try to have ambush marketing to gain visibility.
These circumstances are unavoidable when an individual player or team endorse the
competition brand. Example-
Nike, the official apparel sponsors for the Indian National Cricket Team. This deal is
estimated at about INR 270 Crore for five years. On the other hand, Nikes competitor
Adidas has endorsed Cricketer Sachin Tendulkar who uses cricketing gear with eye
catching branding of Adidas
12


12
(NDTV, 2011)
31

Pepsi being official sponsor for IPL, it cannot keep its competitor Coca Cola away
from the event during the matches held in Mumbai for their home team being official
sponsor for the franchisee
After the event, have a feedback with the sponsor. Results and experience should be shared
by the sponsor. What could have been done better? What aspects did the sponsor like best?
How can the event improve the process next time around?
There should be a report form to communicate with the sponsor how each attribute of the
contract was fulfilled. Feedback and response are very important. Understand it is far easier
to retain the current sponsor than to find a new one.

32

SWOT analysis - Polo R Cup
Strength Weakness
Strong Brand Name
Geographically diverse business
Over 50 Years of experience in
Motorsport
Continuous technological elevation
High standard quality products and
services

Motorsport not a mass sport in India
No Government support
Only one International circuit built in
India
Opportunity Threat
Scope of building stronger ground for
Motorsport in country
Option for small businesses to partner
for the event
World class built Buddh International
Circuit to elevate motorsport in India

Other sporting events Indian
Premier league
Reality Shows Roadies, Kaun
Banega Crorepati, etc.
Industry rivalry Maruti, Mahindra,
Toyota

33

Marketing Planning
Marketing plans vary by duration, scope and method of development.
Target set
The target set for Volkswagen Motorsport India -
1. Businesses, Organizations, Brands, Products (B2B connect)
Who would partner the event by cash sponsorship or in-kind sponsorship (barter deals for
products and services). These entities will partner to market their own products and/or
services to second set of target market for Polo R Cup.
2. Spectators, audiences, participants, viewers (B2C connect)
Target market for Volkswagen Products
Polo R Cup event connects partnering organizations and their target set. Partnering for the
event is more towards Promotions part of the marketing mix. Promotions include various
media and methods used for connecting product/service to the market.
Sponsors get to connect to its potential customers by branding on race tracks, race cars, race
suits, hospitality area, media lounge, media booklet etc. This creates greater visibility for the
brand.
Consumer buying Behaviour
Buying behaviour is the decision processes and acts of people involved in buying and using
product or services.
Buyers reaction to a firms marketing strategy makes great impact on the sales of its
products which lead to success or failure. Firms create a marketing strategy that will create or
satisfy customer to purchases. Hence marketers carefully analyse what, where and how to
present their products to its target market.
These target markets are decided by segmenting the whole set. The segments are done by
demographics- Age, sex, ethnicity, income etc.
Geographic Metros, towns etc.
34

Psychographic lifestyle, personality, motives etc.
While making decisions to partner the Polo R Cup event, marketers consider the lifestyle,
personality, attitude of the target market towards their product.
Brands which target youth and speed lovers or motorsport followers will tend to join hands
for the event.
Benefits of targeting one set or group of individuals-
It allows firm to specialize or make a isolated marketing plans as maximum information
is accessible and available
All energy can be focused in satisfying one group
Comparatively lower expenditure
Cons for targeting single set of customers
All eggs in one basket
Small shift in taste of audience will affect achievement of desired objective or goal
Objective for such partnering is not directly maximising sales, it is efficiency to attract large
portion at less cost.
The Marketing Communications Mix
A companys total marketing communication mix or promotion mix consist of blend of
Advertising, personal selling, sales promotion, public relation and direct marketing. This
combination will help a marketer to reach out to the customer base raising awareness and
driving sustained sales of the product or service offerings.
What makes a consumer pick a particular product when offered a set of products from
different brands? All businesses inculcate the best technology and design to attract their
customers. At the shelf, all products have the very similar features, quality, quantity to price,
etc. What and How would you make customer buy your product?

35

Being there, strong, bright and concrete in consumer decision journey
13


It is important for marketers to be in the mental block of the consumer and pull them to buy
their brand. The purchase decision process has changed over period of time. The way the
consumer research and buy a product. The main goal of marketing is to reach consumers at
the moments that most influence their decisions. Thats why consumer electronics companies
make sure not only that customers see their televisions in stores but also that those televisions
display vivid high-definition pictures. Every feature is demonstrated to the customer base.
This keeps adding data about the product. When the buyer reaches the shelf and is about to
pick a product from multiple options available, the buyer will be comfortable in picking the
one they have learnt more during the research process.
The Purchase Funnel

Marketing has always sought those moments, or touch points, when consumers are open to
influence. For years, touch points have been understood through the metaphor of a
funnelconsumers start with a number of potential brands in mind (the wide end of the
funnel), marketing is then directed at them as they methodically reduce that number and
move through the funnel, and at the end they emerge with the one brand they chose to
purchase .
Today, the funnel concept fails to capture all the touch points and key buying factors
resulting from the explosion of product choices and digital channels, coupled with the
emergence of an increasingly discerning, well-informed consumer. A more sophisticated
approach is required to help marketers navigate this environment, which is less linear and

13
(David Court, 2009)
36

more complicated than the funnel suggests. This approach is called the consumer decision
journey.
The Consumer Decision Making process


In order for organizations to most effectively use allocate its budgets to media which are
exposed to its target set. It is important to recognize and embrace that the emerging platforms
are additional resources to complement and expand their entire marketing arsenals rather than
replacements for existing marketing initiatives.
The goal of many marketing campaigns is to establish their business brand firmly among the
evoked set of products considered by most target consumers when making a purchase
decision.
Partnering the events gives marketers to connect to its target set closely. Experience about a
product is important element in decision making process. For a business which enters the
market with product that already exists, it is difficult to divert the users of other brand to
purchase their product. The reason why a buyer will change its taste or would like to switch
to other brand would happen when the services provided by current brand disappoints the
user, consumer wants to try a new product, etc.
37

A Garnier Mens Face Wash user will not shift to other brand unless the product has not
delivered what it promised. Whereas if a new entrant like Fiama Di Will Mens face wash
will be able to pull the users of other brands by offering free samples or trials. It is not
feasible for marketers to do such campaigns by going door to door. Marketers include events
like Polo R Cup, college functions, shopping malls in their marketing communication mix to
give the customer base the experience and pull them towards purchasing their brand.
Following such practices, ITC had targeted students at college fests for brand activation of
Fiama Di Wills new range in Mens grooming products. The activations were held at college
fests In Mumbai and Bangalore like Crossroads at SRCC, Confluence at Hansraj, Mecca at
Hindu, Quintessence at Lady Irwin, Lashkaara at Khalsa, etc.
The objective was to increase awareness about the product and generate maximum trials
14

Such initiatives during the growth phase of product life cycle, does the strong brand building.


14
(Patel, 2013)
38

Brand Building of Volkswagen
Corporate exposure-
When an organization partners with the event, it is not just the exchange of goods, cash,
services etc.; it connects large number of employees to the brand.
Media Exposure-
News channels, newspapers, magazines, social websites like Facebook and Twitter, videos on
you tube and other broadcast channels connect large number of audience and to the brand.
Exclusive Facebook page could gain over 20,000 likes in a months time.
Technology showcasing-
Competitor brands make efforts to touch customers by advertising, offering test drives, giving
discounts on purchase during specific period etc. Volkswagen additionally offers its viewers
the experience of performance delivery by Volkswagen cars.
Contests to keep followers close to the event-
Monthly contests designed for individual participation. Lucky winners were given prizes.
This created buzz amongst the event followers to stay updated on past facts and technical
questions.

39

Achievements:
IT Company Barter deal for online game development for Polo R Cup and Inventory
management software
Electronic Retail Barter deal and Cash sponsorship
Beverage company Barter deal


40

Conclusions
Chances of getting a organization on board as associate is directly proportional to the
exposure or visibility index of the event
Getting a sponsor on-board which has very high brand fit takes least efforts to complete
the sponsorship development process
Marketing mix of the company is designed in a manner that it supports the other
initiatives by the brand and covers maximum ground
The brand name of Volkswagen plays important element for an organization to partner
for the event

41

Recommendations
Extensive efforts for greater exposure for motorsport should be made in initial years.
There would not be inflow in form of huge number of audiences, sponsorship
agreements as immediate effects. It will take at least 2 to 3 years to make space for the
event in country of over 1.2 billion census
Brand activation for the event should be done at mass and populated regions like
shopping malls, universities, express highways, etc.
Brand Managers who decline partnering with the event should be invited for the event
Feedback from current sponsors to work on the on the weaknesses and build on the
strengths

42

Glossary
Brand attitude: Brand attitude is how you portray the attitude of the brand and how the
consumers think about it
Brand Awareness: Extent to which a brand is recognized by potential customers, and is
correctly associated with a particular product. Expressed usually as a percentage of target
market, brand awareness is the primary goal of advertising in the early months or years of
a product's introduction
Brand image: The impression in the consumers' mind of a brand's total personality (real
and imaginary qualities and shortcomings). Brand image is developed over time through
advertising campaigns with a consistent theme, and is authenticated through the
consumers' direct experience
Brand Recall: A qualitative measure of how well a brand name is connected with a
product type or class of products by consumers
Dual Shift Gearbox(DSG): An electronically controlled dual-clutch multiple-shaft
manual gearbox, in a transaxle design without a conventional clutch pedal,[4] and with
full automatic,[2] or semi-manual control.
Evoked Set: A group of relevant brands that a prospective consumer is favourably
familiar with when they are thinking about making a purchase
Integrated Marketing Plan: An approach to achieving the objectives of a marketing
campaign, through a well-coordinated use of different promotional methods that are
intended to reinforce each other.
Target market: A target market is group of persons/companies for whom a firm creates
and maintains a Marketing Mix that specifically fits the needs and preferences of that
group. Does the company have the resources to create the appropriate MM and does it
meet the company's objectives.

43

Bibliography
CRY, n.d. Cause Related Mktg. [Online] Available at:
http://www.cry.org/joinus/causerelatedmktg.html [Accessed 14 May 2013].
David Court, D. E. S. M. a. O. J. V., 2009. Insights & Publications. [Online] Available at:
http://www.mckinsey.com/insights/marketing_sales/the_consumer_decision_journey
[Accessed 15 May 2013].
Masuda, S. c. a. D., 2011. Sponsorship manaagement. M.D.: s.n.
Motorsport, n.d. Home Page. [Online] Available at: http://www.motorsport.com/ [Accessed
20 April 2013].
NDTV, 2011. Nike extends Team India uniform sponsorship with BCCI for 5yrs. [Online]
Available at: http://sports.ndtv.com/cricket/news/172598-nike-extends-team-india-uniform-
sponsorship-with-bcci-for-5yrs [Accessed 20 May 2013].
Patel, D., 2013. ITC engages students at college fests for Fiama di Wills and Vivel. [Online]
Available at: http://www.eventfaqs.com/eventfaqs/wcms/en/home/news/ITC-engages-
students-at-colleg-1363206023766.html [Accessed 15 May 2013].
Philip Kotler and Waldemer Pfoertsch, n.d. Sponsorship. [Online] Available at:
http://books.google.co.in/books?id=bcmo-
WZtOvQC&pg=PA117&lpg=PA117&dq=sponsorship+kotler&source=bl&ots=mquVM0yKl
1&sig=Cynb6IlPfRKECRK8p-
iqKI2IWW0&hl=en&sa=X&ei=fdORUa_VJYqzrgfo5YHoDQ&ved=0CEIQ6AEwAw#v=on
epage&q=sponsorship%20kotler&f=false [Accessed 5 May 2013].
The Federation of Motorsports Club of India (FMSCI), n.d. Indian Race Tracks. [Online]
Available at: http://www.fmsci.in/main/indian_race_circuits.html [Accessed 20 April 2013].
The Times of India, 2012. Pepsi bags IPL title sponsorship rights for five years. 21
November.
The Volkswagen Group, n.d. Copmany Profile. [Online] Available at:
http://www.volkswagenag.com/content/vwcorp/content/en/the_group.html [Accessed 20
April 2013].
Volkswagen India, n.d. Polo R Cup. [Online] Available at: http://www.polocup.in/about.aspx
[Accessed 22 April 2013].
Volkswagen Motorsport India, n.d. About Polo Cup. [Online] Available at:
http://www.polocup.in/aboutpc.aspx [Accessed 22 April 2013].
Volkswagen Motorsport, n.d. WRC. [Online] Available at: http://www.volkswagen-
motorsport.com/index.php?id=11&L=1 [Accessed 21 April 2013].

44

[This page is intentionally left blank]