Professional Documents
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THE MAIN
EVENT
Building relationships, Land Rover’s greatest
Challenge
changing perceptions
and delivering return
on investment
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SPONSORSHIPWORKS : 3
EVENT SPONSORSHIP: DEVELOPMENT
SPONSORSHIP
Earlier this year, music lovers around the
world spent many fruitless hours
disagreeing over whether the release of
Elvis Presley’s first single, 50 years ago,
could be seen to signify the birth of rock
n’ roll.
While the King brought R&R to the
masses, there were plenty of music buffs
who swore blind that there were R&R riffs
AND THE
lurking in pre-war Jazz.
You’d encounter similar problems if you
tried to specify the origin and inventor of
sport event sponsorship. Gillette was
among the early pace-setters, in both the
MAIN EVENT
USA and UK - sponsoring one-day cricket
in England as early as 1963. And beer 1960 Olympics, for example, there were McCormack to drag sport kicking and create West Nally: ‘a PR agency
brand Mackeson rates a mention for 46 sponsor/suppliers providing everything screaming into the modern commercial specialising in sport’.
picking up the Cheltenham Gold Cup from technical support to toothpaste. By era. It was Nally and Dassler, for Once the early entrepreneurs started
sponsorship in 1968, says European Tokyo 1964, there were 250 partners - example, who helped Dr Joao Havelange rewriting the rule books, the opportunities
Sponsorship Association (ESA) chair Nigel including cigarette brand Olympia which take control of FIFA from Sir Stanley afforded by owning a high-profile event
Currie. Others at the forefront of the generated $1million for the Organising Rous in the early 1970s and start franchise were not lost on other sports.
sector’s development included tobacco Committee. Jump forward to Montreal globalising the structure of soccer. Along Rights-holders like the IOC and FIFA
brand John Player - which entered cricket 1976 and a total of 628 sponsors and the way, they persuaded the likes of which already had a big event were not
in 1969 - and Gold Leaf, which became suppliers generated $7million for the Coca-Cola, Gillette and Seiko to come on static. Instead, they started to explore
sponsor of the F1 Lotus Team at the 1968 Organising Committee - not much by board as sponsors of Argentina 1978. The ways of sweating their assets as hard as
Monaco Grand Prix. A few years later, today’s standards but a sign of things to late Peter West, meanwhile, played a key possible. This not only gave rise to better
mass-market newspaper ‘The News of the come. role in setting up commercial packages broadcast rights management but the
World’ stepped in as title sponsor of Of course, most federations were not around English cricket’s Benson & Hedges segmentation of sponsorship into
famous steeplechase, The Grand National. known for their commercial instincts (and Trophy and Snooker’s World categories. The IOC, for example,
While all these are landmarks in their even today are often dismissively referred Championship. introduced three categories of sponsor at
own right, the reality is that event to as the badge and blazer brigade). So it It would be wrong to suppose, however, the 1984 LA Games - with 34 companies
sponsorship emerged as a professional was left to entrepreneurs like Patrick that any of these individuals came in signing on as official sponsors, 64
marketing discipline on a number of Nally, Peter West, adidas heir Horst with a preconceived notion of themselves purchasing supplier rights and 65
fronts over a period of around 20 years - Dassler (who later set up ISL), Bernie as event sponsorship specialists. Nally, for becoming licensees. Four years later at
starting not long after WW2. At the Rome Ecclestone and IMG founder Mark example, recalls teaming up with West to Calgary 1988, the IOC launched its
4 : SPONSORSHIPWORKS
worldwide TOP programme - a model By Sydney 2000, the IOC had again taken
based around partnering a limited the lead - buying up outdoor space
number of top-tier sponsors in distinct around the city and clamping down
business categories across the full heavily on attempts to flood venues with
Olympic four-year cycle. Despite a few marketing materials.
modifications (notably the alternation of Perhaps it would have been possible to
Summer and Winter Games every two control the sponsorship space - had it not
years), the basic blueprint is the same been for the rising power of team and
today (though the money on the table is individual talent. Today’s event sponsor
of a magnitude which would have been often has to fight for share of voice with
unthinkable then). rival brands which have secured precious
Creative and dynamic though this early space on player apparel and equipment -
era of event sponsorship was, it was a or in related above-the-line advertising
period in which there seems to have been executions.
a sense of equilibrium between the They have fought back well - utilising
various parties involved. Rights-holders every inch of space that is available to
generated extra revenue from their prize them (eg npower branding on cricket
assets, sponsors secured exposure for their stumps). But this kind of lateral thinking
brands and broadcasters were still very is overshadowed by an ongoing battle for
open to the prospect of creating an control of communications which, for
appointment-to-view at the heart of their shorthand, is called the conflict over
schedule. “It was a triangular relationship image rights. In recent years, every major
based on a common commercial interest,” event has been preceded by a row
argues Karen Earl Sponsorship chief involving international governing bodies
executive Karen Earl - who started her about what branding is or isn’t allowed in
career with West Nally. “It was possible to a venue.
create new events that slotted neatly into While the emergence of talent as the
the annual sporting calendar.” fourth major force has created some
jurisdictional difficulties, it’s also
SHIFTING GROUND important to point out that it has given
But all that began to change in the 1980s rise to new event dynamics.
and 1990s when the tectonic plates A good example is the rise of made-for-
beneath sports marketing began to shift. TV events which depend specifically on
Perhaps the most significant development the involvement of key talent. In the US,
was the emergence of television as the for example, Tiger Woods (another IMG
dominant partner in the equation. First star), has been involved in head-to-head
came the growth of international free-to- golf duels with the likes of Dave Duval
air coverage - which promised fantastic on ABC network. Perhaps the ultimate
new levels of exposure for sports and, by expression of this gladiatorial format has
corollary, sponsors. Then came PayTV - been the migration of boxing to Pay-Per-
which added a lucrative new revenue View.
stream to the mix. As broadcast rights Our kinda town...Coca-Cola makes its presence felt at the 1996 Atlanta Olympic Games Getty Images Sport
fees began to surpass traditional revenue SHAPING EVENTS
streams like ticketing and sponsorship in innovation and development across the sponsorship. This was evident in a It’s not just broadcasters and agents that
value, event sponsorship entered a industry. Rights-holders, for example, number of ways. Gillette, for example, have been playing around with the
dynamic new phase. tightened their rules so that contracted was a pioneer in the arena of ad-funded format and profile of events. Leagues (e.g.
There’s no question that the changing broadcasters had to offer first refusal of programming through its support for Major League Baseball) and teams (e.g.
dynamics of the broadcast market had a broadcast sponsorship weekly magazine show Real Madrid and Manchester United) have
number of major implications for event to event sponsors. In “LOSS OF MEDIA Gillette World of Sport. been actively involved in creating events
sponsors. Firstly, as their influence some cases, they went EXPOSURE Like car manufacturer as a way of broaching new geographic
increased, broadcasters wanted to ensure even further - by BROUGHT ABOUT Ford, it also became a markets.
the best possible returns from their bundling-up broadcast BY THE ARRIVAL mainstay sponsor on Over the years, of course, corporate
coverage. The result was increasing rights as part of the OF PAYTV PayTV networks such as sponsors have also explored the potential
pressure on rights-holders to deliver event sponsor’s ENCOURAGED SkySports and Eurosport. of creating and owning their own events.
events which fit the demands of entitlement. In the SPONSORS TO At the other end of the Owning events, the thesis supposed, was
competitive TV schedules. Event sponsors case of UEFA events, TAKE THE NOTION sponsorship exploitation a way of preventing a rights-holder
had to adapt to this shift in editorial style for example, agency
OF THROUGH-THE- spectrum, corporate revamping its event without asking or
LINE SPONSORSHIP
and visual grammar accordingly. TEAM Marketing MORE SERIOUSLY” hospitality moved from ditching a sponsor after three years -
Secondly, the growth of PayTV raised the packages the being a soft, unmeasured thereby ripping the heart out of its
prospect of big mainstream audiences broadcast sponsorship marketing option to a communications strategy. At the same
being lost to sponsors as sports migrated centrally for all contracted broadcast sure-footed industry based on solid time, it might even generate additional
to thematic channels. Although some partners. business-to-business objectives. revenues. Notable examples which have
major events like Six Nations and At the same time, the loss of media stood the test of time include the Stella
Wimbledon did not show any desire to exposure brought about by the arrival of CHANGING DYNAMICS Artois Tennis Championships and
join the PayTV gold rush, others took PayTV encouraged sponsors to take the At the same time sponsors found Whitbread Round the World Yacht Race
PayTV’s money but saw ratings dive. notion of through-the-line sponsorship themselves having to deal with the rapid (now Volvo Ocean Race). But these are
Thirdly, the late 1980s and early 1990s more seriously. Instead of viewing rise of so-called ambush marketers. The exceptions rather than part of a strong
(depending on which territory you were sponsorship as a glorified media buy, the purchase of outdoor advertising space emerging theme, argues Earl.
in) saw the advent of broadcast loss of TV exposure forced clients to put around venues and free hats and shirts “The key lesson over the years is that
sponsorship; a new form of on-screen more effort into building activities around for fans bearing a corporate logo were the sponsors owning events has its
exposure which threatened to drown out their core investment. hallmarks of ambush in the mid-late limitations,” she says. “Firstly, there’s a
the event sponsor’s voice. Such In this respect, the arrival of PayTV 1990s with the 1996 Atlanta Olympics problem of ubiquity - people losing the
developments sparked another wave of could be seen as a step forward for regarded by many as a high-water mark. ability to distinguish between the brand
SPONSORSHIPWORKS : 5
EVENT SPONSORSHIP: DEVELOPMENT
DIGITAL DILEMMA
On the upside, digital media enables
UEFA Champions League...fewer sponsors deliver greater value. Getty Images Sport sports rights-holders and sponsors to
extend the shelf-life of partnerships by
and the event. Secondly, it makes it big events on free TV (good for sponsors), quality for granted. Consumers want to maintaining a presence on a range of
harder for brands to change direction attacks on tobacco have been mirrored by buy products or do business with digital media. Extra capacity on digital
when business demands it. Finally, the French dislike of alcohol advertising companies that make them feel good, TV and online also means it’s possible for
running events is a non-core business (which affected Budweiser during France challenge them, fit into their lifestyles minority audiences to get drilled down
which many marketers are not suited to.” 1998) and the current move towards and provide them with a social identity. coverage of favourite sports. Packaging of
Besides, many sponsors have created the control of the snack food and soft drink In other words, they want branded event content as special promotion DVDs
illusion of event ownership around third sector. While the prospect of Coke and experience.” This argument has relevance or for use in museum exhibitions
party events. The Flora London Marathon, McDonalds being kicked out of top-flight for the way event sponsors exploit their provides spin-off opportunities for both
Vodafone Derby, Cornhill Tests (now soccer is highly unlikely, the upshot is association. But IMG Consulting’s Daniel rights-holders and sponsors.
npower) and Embassy World Snooker are that more investment than ever before is Zammit thinks many players in the field On the debit side is the possibility that
just a few examples of sports events channelled into the community support have failed to learn the lesson. “Most event sponsors will be marginalised. This
where the sponsor is/was synonymous elements of such sponsorships. clients focus on areas like association and could happen through the use of virtual
with the activity. Of course, long-term A recession in marketing naturally had media without ever delivering a media - which superimposes brands and
association with a third-party event can an impact on sponsorship but rights- memorable experience. You’ve got to logos on the field of play. At best this
raise the same differentiation issues as in holders and agencies have put a clever create an immersive brand experience creates clutter, at worst it’s a tool which
the case of wholly-owned events, says spin on the issue by characterising this that touches your audience directly. It’s broadcasters could use to rub out event
Earl. It also presents problems for rights- latest phase as an the biggest missing sponsors - or as a way of extracting
holders. What after all is golf’s Dunhill example of the industry “THE EVENT component in most incremental revenues from them. The
Cup without the word Dunhill - and how adopting a ‘less is more’ SPONSORSHIP sponsor deals.” Part of move towards on-demand viewing
do you replace the Benson & Hedges approach. Fewer partners SECTOR HASN’T the problem, says through personalised video recorders
Snooker Masters when you withdraw the engaged in deeper JUST SURVIVED – Zammit, is that clients (PVRs) like TiVo and Sky+ could also
B&H name? “Rights-holders and sponsors relationships at the IT’S GROWN TO don’t think about how have an unexpected twist. Research
have started to realise there is a need for venue, on TV, in retail THE POINT THAT to express brand evidence shows that people do not record
balance,” says Earl. and promotions is the RIGHTS HOLDERS behaviour upfront. and playback live events and that some
Adapting to developments in broadcast/ preferred option. This NOW TALK ABOUT “You need to hunt out other TV genre is likely to go downthe
technology, event management, image trend is evident
SPONSORS AS sponsorships that give recorded on-demand route. This will
PARTNERS”
rights and ambush marketing bred a new everywhere you look - you the freedom to make the ability of sports events to draw
generation of sponsor which is able to with the IOC drastically create experiences.” live audiences even more highly prized -
roll with the punches. And the challenges reducing the number of partners it Some clients and rights-holders have good news for rights-holders but a sign
didn’t end there. The last five years, for worked with after Atlanta 1996. worked hard. that the price of event and broadcast
example, has seen Europe’s regulators At Salt Lake City Winter Olympics 2002, sponsorship prices may have to rise
desire to kick tobacco out of sport reach FACING THE CHALLENGE for example, agency Momentum was considerably again.
its inevitable endgame. While tobacco’s Assuming all is working well in event given the job of linking Coke to the spirit As in all phases of event sponsorship
long-term role in developing a sponsorship, what are the challenges and of the Games by celebrating everyday history, however, the parties involved
sophisticated sports marketing sector is opportunities facing today’s commercial heroes. Working with sister agencies such have an option to embrace or reject
unquestionable, the incompatibility partner? Well, perhaps the biggest single as McCann Erickson, MRM, FutureBrand change. “The key observation from the
between smoking and sport had long issue in an era of media-savvy consumers and Weber Shandwick, Momentum put last 40 years is that sponsors have always
been obvious and eventually became is ensuring that there is a genuine together an experiential strategy for the found a way to adapt to changes in the
unsustainable. As yet, however, sports like connection between event sponsor and Torch Relay and The Games. During the market,”says ESA’s Currie. “The event
snooker and darts have not found a target audience. Recognising that it takes Torch Relay, people were invited to go sponsorship sector hasn’t just survived –
satisfactory alternative to the likes of more than official sponsor status to earn online and vote for ‘someone who it’s grown to the point that rights-holders
Embassy and B&H - key commercial the respect of fans, clients have been inspires you’. According to Momentum, now talk about sponsors as partners -
supporters down the years. On balance, talking up a concept called experiential this secured 125,455 nominations, delivering both cash and support services
regulators have caused sponsors more marketing in recent years. So what is 70million TV impressions and grew sales which helped the event run more
problems than not. While Europe’s listed experiential marketing? Berndt Schmitt, a volume. For the Relay itself, the PR smoothly. “It’s an inherently strong
events legislation - a hot topic in the leading commentator, says: “Consumers effort reached 436million consumers via relationship - which is likely to weather
1990s - went some way towards keeping increasingly take product function and 1,000 TV news stories and 2,000 print any impending storm.”
6 : SPONSORSHIPWORKS
Picture: Dan Ljungsuik
THE BUSINESS OF
YACHT RACING SUMMIT
January 14th at the Schroders London Boat Show, ExCeL, London Docklands
Yacht Racing is a global giant in terms of sponsorship. Millions of Speakers include:
corporate pounds are poured into the sport each year and more and more • Sir Chay Blyth CBE BEM, Executive Chairman, Challenge Business
sponsors are looking at the exciting potential and benefits of the sport. • Richard Brisius, Director, Atlant Ocean Racing AB
Yacht racing has a proven record of success in the increasingly important • Tracy Edwards MBE, CEO, Quest International Sports Events
areas of internal communication, employee motivation and corporate • Iono Jones, CEO, Narrowstep
branding providing opportunities unmatched by other sports. In corporate • Edward Leaske FCA ATII, Director, Fast Track
entertainment yachting offers a range of unique experiential hospitality • John Luff, former Global Head of Corporate Social Responsibility, BT plc
options and is the only sport where guests can actually take part in the • Liz Rushall MBA MCIM, co-author “The Business of Yacht Racing”
real event alongside the pros. New media technology is making the sport • Mark Turner, co-founder, Offshore Challenges
ever more accessible to its large but geographically diverse audience,
• Georges Vanderchmitt, Managing Director, Carat Sport
while also enabling an ever closer relationship between fans and
• And more to be announced...
competitors.
Don’t miss out. Find out what yacht racing could do for your company. What you will learn from the summit:
• The multifaceted sailing sponsorship proposition
Price: £495 (20% discount for SportBusiness International subscribers • The options available for brand owners
• The potential provided by new media
For more details or to book your place please contact • The growing role of tourism
Gerard O’Brien • The unique corporate hospitality options
Email: Gerardo@sportbusiness.com • The scope for internal communication and employee motivation
Tel. +44 207 934 9194
Agency Profile:
Ian Forbes
International Strategy Director
159-163 Great Portland Street,
London W1W 5PA
Direct Phone: +44 (0)20 7307 5113
ianf@global-marketing.com
8 : SPONSORSHIPWORKS
SPONSORSHIP WORKS : CASE STUDY
2004 Gulf Air Bahrain Formula 1 Grand Prix
Agency: Global Marketing Communications
and out of territory including media the world helped educate many people
receptions at the Grand Prix, and that there was an alternative to travel
follow-up media post-event to the region than the high profile
• Provide a media guide, an Image and competitor Emirates Airline.
VNR library, and exposure research This has directly translated into sales
from the region, and from people using
RESULTS the region as a stop-over between
Success can be measured in a number Europe and Australia / India.
of ways – for Gulf Air a key measure
was to enhance the esteem of the Other success measures included;
airline in the region, with both the • Integrated agency service achieved
corporate and political decision-makers. very high levels of coordination and
In that respect, anecdotal evidence was effectiveness
uniformly very positive for how well • Gulf Air management and guests
Gulf Air acquitted itself on a world feedback on the event experience was
stage. very positive
Success is also about the tangible • Gulf Air’s sponsorship played a strong
Return on Investment the sponsorship role in the perception of the
generated. These measures were professionalism and success of the
primarily media exposure, and sales of first Bahrain Grand Prix
tickets and cargo over the Grand Prix • Gulf Air branded photography
period and subsequent months. On both showing event lead-up and the Grand
these critical measures Gulf Air Prix was used extensively around the
experienced a very strong ROI multiple. world by major media groups
Media exposure from signage alone was • Media editorial coverage of the event
valued at over US$40 million. If one was uniformly positive and strongly
factors voice mentions in, then the featured Gulf Air
media worth is considerably more. • Merchandise complex enjoyed high
This weight of media exposure around traffic during the event
SPONSORSHIPWORKS : 9
SPONSORSHIP WORKS : CASE STUDY
NatWest and Cricket
Agency: Octagon
Agency Profile:
BANKING ON CRICKET
How NatWest’s long-term involvement in cricket keeps the bank front of mind
10 : SPONSORSHIPWORKS
SPONSORSHIP WORKS : CASE STUDY
NatWest and Cricket
Agency: Octagon
Left, England fast bowler Darren Gough in action at The NatWest Series
Above, Vikram Solanki runs through NatWest's guard of honour at Old Trafford
Above right: Kids patiently wait to enter the NatWest Speed Stars fast bowling Competition
Below, Brighton seafront provides a stunning backdrop for the NatWest cricket Interactive roadshow
The corporate social responsibility and introduce Man of the Match to secondary schools cricket. sponsorship vs those unaware
strategy has focussed on both interactive and text voting. (Source: IPSOS)
positioning the brand at the heart of • NatWest recognised the invaluable
the community and also identifying a • NatWest identified a powerful and important work undertaken by • Significant difference in brand
cause directly relevant to the game. opportunity to team-up with Banana thousands of volunteers at clubs attribute association between those
Boat and Marie Curie Cancer Care to across the UK by supporting the ECB's aware and unaware of the cricket
Action highlight the dangers of prolonged Outstanding Service to Cricket sponsorship (Source: IPSOS)
A host of new initiatives, some of exposure to the sun. Awards. In conjunction with the ECB,
which are outlined below, were NatWest also created a framework • The majority of non NatWest
activated to compliment the traditional • The NatWest Interactive Cricket and video to help recruit new customers aware of the cricket
leverage activity. These ensured that Roadshow and Speed Stars volunteers. sponsorship said that they would be
whether you were at the match, competition visited 44 venues across likely to use NatWest in the future
listening on the radio or watching on the UK, allowing children of all ages Results (Source: IPSOS)
TV, NatWest would be adding value to and ability to play the game and win NatWest employs a number of measures
your enjoyment of the game and be tickets to matches, equipment and to evaluate the effectiveness of its • 85% of people agreed strongly that
seen as integral to the game. coaching sessions with England activity. the NatWest Interactive Roadshow
players. This perfectly complemented was ‘good because it got children
• NatWest became the first sponsor to NatWest’s sponsorship of Inter Cricket • 8% higher spontaneous '1st name playing sport’ (Source: IPSOS)
animate the Third Umpire decision which provides much-needed support bank mention' by those aware of the
SPONSORSHIPWORKS : 11
BRAND OPPORTUNITIES
12 : SPONSORSHIPWORKS
spent nearly £60 on beer during the nine- Watchers’ was less, at 99.3 per cent,
week period before and during Euro 2004, demonstrating that this peak in sales was
up 11 per cent on the same period in not simply attributable to in-store
2003. It made Carlsberg the biggest seller promotions.
per buyer, according to spend. Competitor brands generally increase
The average Carlsberg Standard Lager marketing activity during such high-
buyer bought seven litres of beer per profile events and this was certainly the
shopping trip during the nine-week case with Carling, who advertised heavily.
period. Again, this is up 17 per cent on Whilst there was some impact, the real
the same period in 2003 and made consumer effect was experienced by
Carlsberg the biggest seller per buyer by Carlsberg. Carling’s market share among
volume. ‘Watchers’ of the competition fell by five
per cent during the competition in
Market Share relation to its average market share for
In summary, Carlsberg saw market share the year. The corresponding fall amongst
increase more markedly amongst Euro ‘Non-Watchers’ was almost the same at
2004 Watchers than Non-Watchers. 5.7 per cent.
This pattern was at its strongest for There is little doubt that Carlsberg’s
Carling Export where market share sponsorship of Euro 2004 added clout to
amongst ‘Watchers’ rose by 133.6 per the brand during the event. It is also
cent during the competition in relation to likely that this increased pulling power
its average market share for the year. The will have a persistent legacy after the Here’s lookin’ at you... UEFA’s president Lennart Johanson at the announcement of Carlsberg’s sponsorship Getty Images Sport
corresponding rise amongst ‘Non- event.
Chart 1: Share of Standard Lager Spend – Carling Vs Carlsberg Chart 4: Share of Premium Lager Spend amongst ‘Watchers’
%
50 %
Eng v Fra
45
18
16.4
40
16
35
14
30 12.3
12
25
20 10
15 8
10 6
5 4
0 2
24 ug 3
07 ug 3
21 ep 3
05 ep 3
19 ct 3
02 Oc 3
N t 03
N 03
14 ov 3
28 ec 3
11 ec 3
25 an 3
08 Jan 4
22 eb 4
22 eb 4
21 Feb 4
04 ar 4
18 pr 4
02 Ap 04
M r 04
30 a 04
13 ay 4
27 un 4
11 un 4
Ju 04
4
A l0
A 0
S 0
S 0
O 0
0
N 0
D 0
D 0
J 0
0
F 0
F 0
0
M 0
A 0
M y0
J 0
J 0
l0
0
16 ov
03 ov
M y
10 Ju
02 a
27
27 Jul Sep 14 Oct 12 Nov 09 Dec 07 Jan 04 Feb 01 Feb 29 Mar 28 Apr 25 May 23 Jun 20 Jul 10
n Carling
2003 2003 2003 2003 2003 2004 2004 2004 2004 2004 2004 2004 2004
n Carlsberg n Watchers
n Non-Watchers
Chart 2: Share of Standard Lager Spend amongst Euro 2004 ‘Watchers’ Chart 5: Average Spend/Buyer during
Euro 2004 competition & build-up
% £
70
50
45 60 £57.79 £56.58
40 £51.10 £50.92 £49.78
50 £47.88
35 £43.62 £42.53
£40.54
30 40
25
30
20
15 20
10 10
5
0
0
rs
rs
rs
rs
rs
rs
rs
rs
27 Jul Sep 14 Oct 12 Nov 09 Dec 07 Jan 04 Feb 01 Feb 29 Mar 28 Apr 25 May 23 Jun 20 Jul 10
er
ye
ye
ye
ye
ye
ye
ye
ye
uy
2003 2003 2003 2003 2003 2004 2004 2004 2004 2004 2004 2004 2004
Bu
Bu
Bu
Bu
Bu
Bu
Bu
Bu
rB
n Carling
rt
64
rg
is
ch
s
se
ck
er
lin
po
to
be
16
ls
ei
st
Be
ar
Ar
Ex
ro
n Fosters Lager
ls
dw
Fo
K
C
G
ar
la
C
Bu
C
n Carlsberg Lager
el
St
Chart 3: Share of Premium Lager Spend amongst ‘Watchers’ Chart 6: Average volume bought during
Euro 2004 competition & build-up
%
50 Litres
45 8
40 6.9
7 6.6
35 6.1 6.0 5.9
6
30 5.2 5.1 5.1
25 Carlsberg Export 5
the clear number
20 two brand 4
3.3
15
3
10
2
5
0 1
27 Jul Sep 14 Oct 12 Nov 09 Dec 07 Jan 04 Feb 01 Feb 29 Mar 28 Apr 25 May 23 Jun 20 Jul 10
0
2003 2003 2003 2003 2003 2004 2004 2004 2004 2004 2004 2004 2004
r
rt
is
ch
64
n Stella n PL
ge
se
ge
ck
lin
po
to
16
ls
ei
La
La
Be
ar
Ar
Ex
ro
rg
C
G
rg
s
la
rg
ou
er
Bu
el
be
n Budweiser n Becks
be
st
nb
St
ls
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ls
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ar
ar
C
ro
C
SPONSORSHIPWORKS : 13
SPONSORSHIP WORKS : CASE STUDY SPONSORSHIP WORKS : CASE STUDY
Martell Cognac Grand National Martell Cognac Grand National
Agency: SBI Agency: SBI
Agency Profile:
BACKING A FAVOURITE receive the Hollis Sponsorship of the Decade Award in 2004 – our final
year of sponsorship.”
14 : SPONSORSHIPWORKS SPONSORSHIPWORKS : 15
SPONSORSHIP WORKS : CASE STUDY
Tackling Obesity through Sport
Agency: MEC:Sponsorship
Agency Profile:
16 : SPONSORSHIPWORKS
SPONSORSHIP WORKS : CASE STUDY
Tackling Obesity through Sport
Agency: MEC:Sponsorship
vault to javelin, and shot putt to sprinting Norwich Union Sportsparks: The Client’s View:
against a virtual Darren Campbell. A big Over 40,000 people visited the events David Czerwinski, head of sponsorship at Norwich Union
screen showing all the action from the
Norwich Union London Grand Prix was Total reach for the media partnerships “We have legitimate business reasons for trying to help fight obesity and
also installed, and a send-off for the was 7.9m with an ROI of 2.9:1.
British athletes to wish them luck in 4 page pullouts and pre-promotion in
promote a healthy, active lifestyle. The creativity around the event marketing
Athens was organised. regional press; pre-recorded and live that supports and enhances the core sponsorship platforms of the televised
trails, plus broadcasts from the events by events, the GB Team and our grassroots schemes has been critical. The event
Maximising Olympic Interest regional radio
Due to Norwich Union funding, most of in Trafalgar Square provided the focal point and was extremely well received
the GB Team were able to go to Cyprus Highlights included Capital FM’s Katy by all visitors. The campaign has really taken off and we will continue to
for warm weather training. A press trip Hill’s show being broadcast live from the
evolve it to create more opportunities to enhance consumers’ lifestyles”
was therefore organised for 25 key media event in Trafalgar Square
to showcase the facilities of this pre-
Olympic holding camp and give The Mayor of London and London 2012
journalists the opportunity to interview supported the event in Trafalgar Square
key athletes during their build up to the
Olympics 15 top athletes attended the Athens send-
off in Trafalgar Square
Sponsorship of the Olympic editorial
coverage of the Daily and Sunday Media coverage included live network TV
Express, including a special 16 page interviews - BBC and ITN - and several
supplement. national press and photographers in
Opposite page -
attendance, whilst radio interviews were Trafalgar Sqaure is
RESULTS syndicated via IRN. transformed into a
Core Event Promotion: Sportspark
Top left - Thousands of
The televised events delivered a Maximising Olympic Interest:
children were introduced
cumulative live audience of 13.2m, were Media coverage from Cyprus included to athletics in a fun and
broadcast for a total of 18h20m, of which network BBC News, daily Radio 5 Live engaging way
41% was Norwich Union branded. reports, and features in all national and Top right - Strong
some consumer press. primary branding ensures
excellent visibility
Press features generated by the creative
Right - New
photography of key athletes ranged from The Express editorial sponsorship is photography
national newspapers to consumer titles expected to delivered an ROI in excess of commissioned by
and had a cumulative circulation of 15:1 MEC:Sponsorship and
Norwich Union used for
21.2m (readership – 63.6m)
event promotion and PR
The CSR campaign has been embraced by
Over 100,000 branded giveaways were all areas of the business and is now fully
distributed at events and business leads integrated into Norwich Union’s ATL
and sales are currently being tracked. campaigns.
Agency Profile:
Contacts:
Brian Greenwood
CEO – PRISM UK
Tel +44 20 7611 6145
e-mail: bgreenwood@prismteam.com
Nick Horne
Communications Director, Land
Rover G4 Challenge
Tel +44 1483 441 009
email: nhorne@prismteam.com
A GLOBAL ADVENTURE
How Land Rover’s G4 Challenge helped create a distinct position for the brand
INTRODUCTION has sought to create distinctive brand the past, present and future of the brand
The Land Rover G4 Challenge is a global positioning for its increasingly and deliver a unique brand experience.
adventure competition that takes in both contemporary vehicle range, with the Traditional images of Land Rovers
urban and remote locations with a Land Rover G4 Challenge as the flagship crossing seemingly impassable terrain are
common theme of discovering adventure. programme. an integral part of the design, but
The mix of iconic urban settings and The Land Rover G4 Challenge embodies modified to achieve this both in remote
remote rural locations will provide the the adventurous personality of the brand and exotic locations and relevant urban
backdrop as young men and women from and takes it to a global audience, focusing environments for Land Rover’s modern
20 nations, and all walks of life tackle on the active, outdoor lifestyle that Land customer base.
multi-sport activities and tough 4x4 Rover customers identify with. The Challenge succeeds in generating
driving. Another invaluable component of the positive global media coverage through
The scope and rigour of the Challenge Land Rover G4 Challenge is in every element of its design, including its
could only be conceived and carried establishing long-term marketing deference to environmental issues. The
through by a brand with Land Rover’s partnerships with like-minded brands to image of off-road driving being
credentials; honouring the brand’s legacy join the programme such as clothing, potentially harmful to remote habitats has
as the original 4x4 motor manufacturer sports goods and camping equipment. been redressed through the thorough and
and illustrating the active lifestyle to “Our products are of interest to a far obvious attention to detail in the event
which its customers aspire. wider global audience than we can reach design.
Following the huge success of the 2003 through traditional activities alone,” Bob In order to maximise the effectiveness
event – which visited the USA, South Campbell, marketing director of kayak of the Land Rover C4 Challenge, Land
Africa and Australia – the second Land manufacturer, Piranha. Rover undertakes an integrated marketing
Rover G4 Challenge will travel through “The Land Rover G4 Challenge allowed campaign (below and above-the-line)
Thailand, Laos, Brazil and Bolivia, starting us to team up with a major motor over a twenty-two month period to
in April 2006, with an anticipated $100m manufacturer, allowing us to share support the Challenge. This works
value for 2006. expertise and resources. The result was a nationally across all Land Rover markets,
very credible event with far greater PR with tailor-made programmes for both
OBJECTIVES and marketing support and a huge global competing nations and non-competing
Land Rover has one of the most audience.” markets.
distinctive brands in the motor industry,
defining an entire class of vehicle for over STRATEGY Key among the elements of each national
50 years. As Land Rover has evolved to The design of the Land Rover G4 campaign is the securing of TV broadcast
meet new generations of customers, so it Challenge was conceived to encapsulate partners in each participating country,
18 : SPONSORSHIPWORKS
SPONSORSHIP WORKS : CASE STUDY
Land Rover G4 Challenge
Agency: Prism
Opposite page, left - New York’s Broadway is taken over for the start of the 2003 Land Rover Challenge
Opposite page, right - The first urban event involved a spectacular and specially designed 4x4 driving course
Left and above - GQ discovers real Land Rover adventure first-hand
integrated e-marketing programmes and sustained PR and marketing programme for the Land Rover G4 Challenge itself:
point-of-sale displays at public events that lasts more than 30 months, building the four-week adventure of a lifetime.
and Land Rover dealerships. to a crescendo during the four weeks of
the Challenge. RESULTS
Similarly the commercial partners Based on the results achieved from 2003
leverage their involvement in the Following the initial launch of the Land Rover G4 Challenge:
programme to increase awareness, programme comes competitor
building wider exposure for a global recruitment, through both point of sale • $85.5 million Advertising Value
audience. “The global aspect of the and Internet applications. These are Equivalent of editorial coverage
Challenge helped us to build our brand handled at a national level by each without any multipliers added.
message in new and important markets,” competing market and culminate in • 375 hours of TV broadcasting in over
said James Bailey, Manager, Corporate individual National Selections, from 50 countries
Communications, UK Operations, which the top three contenders will move • 3547 media articles and TV broadcasts
Goodyear. forward to the International Selections • 81% of all media articles contained
stage. visuals and branding
“The Challenge also provided an • 76% of all coverage contained key
invaluable platform for us, from which to At International Selections the three message communication
support a new product launch.” competitors from each country will • Over one million unique website users
compete to be the sole national • 45% of website users viewed 5+ pages
ACTION representative on the Land Rover G4 per visit
The Land Rover G4 Challenge enjoys a Challenge. The winners will then prepare • 10,000 applicants for the Challenge
SPONSORSHIPWORKS : 19
ACHIEVING VALUE
20 : SPONSORSHIPWORKS
‘pro’ list is the flexibility of its use Games, the issue of waste becomes more our network of member banks is critical
beyond its media value. Larger events important - at these prices it’s best to the success of the sponsorship.
have long been the backdrop to the avoided. So, a key question centres upon “We don’t launch activities where we
development of business relationships the degree by which the event resonates don’t get buy-in from the member
using the sponsors rights to hospitality in the sponsor’s core markets. banks,” says Socci, “because if they are
and corporate entertainment This is an issue that tests the not going to use it we will not get
opportunities. And whilst beer sponsors relationship between global sufficient return on our investment to
are able to take the product to the headquarters, which normally signs the make it worthwhile”. The cost of the
consumer in the most direct way deal and the company’s regional offices, rights fee is divided between the
possible through exclusive pouring rights who will ultimately use the property to company’s regional boards including
deals, other categories of partners are drive business. Visa UK. Activation is paid for locally, a
finding new ways to interact with their Cameron Day, of sponsorship figure that amounts to around three
customers through some experiential consultancy The Works, says that more times the value of the rights fee.
marketing of their own. money is being spent on messaging Critically, this conversation takes place
Peter Walshe believes that to make a through sport than ever before, but that ahead of any cheque being sent to
link between an event and a brand takes the majority of this is wasted because International Olympic Committee (IOC)
more time than it would in other forms sponsors fail to make the relevant sales headquarters in Lausanne, Switzerland.
of sponsorship. “It’s harder to make the connections with consumers. “The contract is decided upon by Visa
connection instantly,” he says. “The “It is ironic that those who buy an head office in San Francisco, but by the
sponsor has to work hard to leverage it association with the biggest property of time we sign the agreement with the IOC
around the event and it’s rare that the all, the Olympics, are most likely to fail,” we have sought the agreement of the
event works strongly enough in its own he says. “Such a global event is by its regional boards. This means they have
right.” Sally Gunnell nature remote. And rarely do the global already acknowledged that this is
If this leveraging work is done well, something they want to be associated
the event can be a long-term support for with on a commercial level.”
the whole marketing effort, which not
“THE SPONSOR HAS TO WORK HARD Another long-term partner of the
only acts as a positive lever for the TO LEVERAGE THE BRAND AROUND Games is Xerox, which has been a
brand but also as a defence to keep THE EVENT AND IT’S RARE THAT THE sponsor of every summer and winter
competitors out. EVENT WORKS STRONGLY ENOUGH Olympics since Innsbruck in 1964 - a
“The event is the one thing they won’t IN ITS OWN RIGHT” 40-year relationship that ended in
zap,” says Walshe, referring to the extent Athens. The organisation’s Olympic
PETER WALSHE, MILLWARD BROWN
to which many television viewers are involvement is driven by its US
going to avoid watching the advertising headquarters, which has decided that the
breaks between television broadcasts. His 2004 Games will be the final time the
point is increasingly relevant as brands international sponsorship manager, says: purchasers of Olympic sponsorship make document company’s Digital X logo
struggle to make an impression in a “Having the title is absolutely essential. provision for marketing departments at would appear alongside the five rings. In
changing media landscape, which sees We wouldn’t look at any other form of national level - the people who the UK, the company’s above-the-line
the proliferation and fragmentation of relationship. If we didn’t have the title understand their customers best.” activity was been limited to two national
media and the development of hard disk we would find something else to do.” The level of autonomy given to local press advertisements - handled by Young
recorders such as Tivo and Sky Plus. So, what happens if the title is not marketing departments is the one key and Rubicom agency Harrison, Trout and
These changes to the way that media is available? factor in the success or failure of a Wunderman - with much of the PR
consumed feeds directly into the cost “The partners tend to have to construct major sport sponsorship agrees Nick focused on the technical press.
paid by the sponsor. The price of entry a more tightly defined dialogue, Walford, managing director of WPP’s David Millican, head of corporate
to event-based sponsorship is dictated particularly at the event itself,” says Performance SportEntertainment agency, communications, says the company used
largely by the media coverage gained by Macdonald. “The positive side of this is who feels that creating a sense of the relationship with the Games as a
that event. The higher the viewing that the sponsor is engaging in an active ownership is the key to achieving a basis for sales staff incentive schemes
figures the greater the potential audience way rather than in through the media return on investment. and motivational activity within Xerox
and the higher the price of a sponsorship which is essentially a passive form of “Problems arise when head office UK. To ensure some local flavour the
slot. communication.” decides upon the sponsorship of a major company employs Sally Gunnell, winner
The key stat for all sponsors or Macdonald likens the relationship to property without the ‘buy-in’ of key of the 400-metre hurdles in Barcelona
prospective sponsors remains the that of a soccer club’s official shirt markets,” says Walford. “Naturally this ’92 and now a BBC athletics pundit.
equivalent media value gained by the sponsor with the fans compared to that has a detrimental effect on local teams Gunnell acts as a keynote speaker at
coverage. But the wisdom of this of the official supplier category. “Most as they feel obliged to support a sales conferences and has contributed to
approach is questioned by Alastair people know that Emirates have been the property for which they do not see a recent product launches.“It’s easy to get
Macdonald, of sponsorship consultants sponsor of Chelsea but few would make brand or business benefit, or they refuse a link from Sally to our sponsorship of
Connexus. “If sponsors are driven solely the link between Budweiser, who are the to support the property with all the the Olympic Games,” says Millican.
by the media value of an event they beer supplier, to the club. But the fans internal ill feeling that this can bring”. “Both customers and our internal
should probably look elsewhere because who go to the ground would definitely The issue of how to make its audience can see how our equipment
most generate very little. We also see make the link and that can form a much sponsorship fit with local needs is one supports the running of the event and
that the event generates the coverage stronger bond.” which the UK marketing team of Visa, a the teams,” he says. “The Games needs
but the sponsors do not, even if they are It also means that a one-to-one TOP Olympic partner since 1986, documents and that is our business.
in the title.” dialogue can be developed which is confronts head on. The payment card Customers understand that the
aimed at more concrete metrics such as company has a complex audience for its underlying message is if the IOC can
TITLE OR PARTNER? sales volumes rather than the softer product based on regional boards depend on Xerox, they can too.”
This makes the decision to pay a brand measurements. It can also help in representing the 21,000 member banks
premium for the title of an event a more developing customer databases or which together own Visa. Getting EVENT CREATION
complex issue. However, the ability to accessing those of the event rights consensus from such a constituency is The marketing strategy is in place and it
stand out from the crowd was the key holders. the key to making the sponsorship work, is agreed that sponsorship of an event is
driver for the sponsors of rugby union’s “It is more of a revenue-generating says Antonella Socci, head of the perfect tool with which to breathe
pan European club competition the focus than a brand-building exercise,” sponsorship at Visa Europe. new life into a tired brand. But the right
Heineken Cup. The event has helped to says Macdonald. “If we don’t have member support it event is not out there.
reposition the Dutch beer brand in its LOCAL ISSUES will not work effectively,” she says. “We What then?
push upmarket. Lizzie Younghusband, With global events such as the Olympic cannot talk directly to card holders, so One solution is for the brand team to
SPONSORSHIPWORKS : 21
ACHIEVING VALUE
22 : SPONSORSHIPWORKS
>> Genius is one percent inspiration
and ninety-nine percent perspiration
DON’T SWEAT IT OUT
Be inspired by the latest essential reports
from the SportBusiness Group
To view the latest SportBusiness Research
reports, visit www.sportbusiness.com
"Maximising the Value of
Hospitality’s exhaustive
THE BUSINESS OF YACHT RACING - £595
analysis and guidance Yachting provides a unique sponsorship proposition that, when matched to
demonstrate the the right brand owner and exploited to the full, is hard to beat. While
significant commercial yachting meets many traditional sponsorship requirements it is also ideal to
reach many of the emerging sponsorship requirements such as experiential
value of corporate hospitality and employee involvement. Furthermore over the next few years
hospitality and serve as a the sport will benefit from the rollout of new interactive technologies such
timely reminder that it’s as broadband. The Business of Yacht Racing unravels the yachting
environment and is the comprehensive guide to enable brand owners and
human beings that are
sponsorship agencies to understand the complex and often unfamiliar
the target audience'" sporting environment that is yachting and the sponsorship benefits that it
Nic Gault, Sponsorship can and should offer
Manager , Barclaycard
sponsorship strategies"
Matt Holmes, planning MAXIMISING THE VALUE OF HOSPITALITY – £495
director , Octagon It costs five times as much to acquire a new client as it does to keep an
existing one. Yet the majority of brand owners haven’t even begun to
Marketing
scratch the surface of using hospitality as a way of retaining and motivating
clients or their own employees in any meaningful way. This new report takes
a hard look at the world of business entertainment from the point of view
of the party picking up the tab.
Stuart Lewis
Email: stuartl@sportbusiness.com
Tel: +44 207 934 9194
sportbusinessreports
SPONSORSHIP WORKS : CASE STUDY
FORD UEFA Champions League Destination Football
Agency: Performance
Agency Profile:
Performance
• A newly formed sponsorship company
of 40 people in Europe
• Developing, managing, activating and
measuring sponsorship campaigns for
clients; new integrated approach
• Specialising in the arena of sports and
entertainment
• Created to guide and enable clients
• Harnessing the strengths within the
WPP Group
• Absolutely no selling of rights
Mike Rich
Performance London
40 Strand
London WC2N 5RF
Great Britain
Tel: 020 7969 4130
email: mike.rich@performance-
worldwide.com
Above - Large inflatable banner outside Auf Schalke, the 2004 UCL Final Venue
Opposite page - bottom right - Where traditional outdoor media sites did not exist, bespoke sites were created to take ‘ownership’ of the Auf Schalke, the 2004 UCL Final
CHAMPION STYLE
How Ford harnessed a shared passion for the UEFA Champions
League to drive cutomers to its showrooms
24 : SPONSORSHIPWORKS
SPONSORSHIP WORKS : CASE STUDY
FORD UEFA Champions League Destination Football
Agency: Performance
Sponsor trend anaysis (%) (Chart 1) Image Profile of Ford and UCL Germany (Chart 2)
n Ford n Pre-Season
n Sponsor A 25 25 n Mid-Season
n Sponsor B
Interesting
23
23
n Sponsor C
22
19
18 18
17 17 UEFA Champions
14 League
14 17 Ford
14 13 15
14 Unpopular
13 Popular
10 10
10% = Excellent 10
9 10
8 8
5% = Good Pan 6 7
European awareness
Boring
1997 1998 1999 2000 2001 2002 2003
Source: Sport & Markt Source: Sport & Markt
Ford Consideration - Would Consider (Chart 4) Image Profile of Ford and UCL UK (Chart 3)
n Aware Ford sponsor UCL
n
n Not aware
Pre-Season
n Mid-Season Modern
78
UEFA
72 74 Champions
67 League
69
66 65 66 Ford
62
Substandard Premium
44
SPONSORSHIPWORKS : 25
SPONSORSHIP WORKS : CASE STUDY
Sony Ericsson Empire Awards
Agency: MEC:Sponsorship
Agency Profile:
EMPIRE STRIKES UP
How Sony Ericsson achieved extensive high profile media coverage
and enhanced its position in film in partnership with the Empire Awards
26 : SPONSORSHIPWORKS
SPONSORSHIP WORKS : CASE STUDY
Sony Ericsson Empire Awards
Agency: MEC:Sponsorship
SPONSORSHIPWORKS : 27
SPONSORSHIP WORKS : CASE STUDY
MMC: Patron of The Open Championship
Agency: Lighthouse
Agency Profile:
Angus McGougan
Lighthouse Communications
River House
37 Point Pleasant
London
SW18 1NN
Tel: +44 20 8812 3400
email: angus.mcgougan@lighthouse-
world.com
28 : SPONSORSHIPWORKS
SPONSORSHIP WORKS : CASE STUDY
MMC: Patron of The Open Championship
Agency: Lighthouse
SPONSORSHIPWORKS : 29
ESA is committed to promoting professional
standards and skills within the sponsorship
market. In this respect, information and data
SPONSORSHIP WORKS ASSESSMENT
is essential to help in the selection and
implementation of a sponsorship and also to likely through the media. Dependent upon all of its global coverage to measure its to drive sales. Often seen as the hardest
evaluate its return. the scope of the event this can vary from reach amongst its target market. aspect to value, Ford, through effective
Within this publication we see eight case local press through to global TV coverage. monitoring, has been able to link increased
studies reflecting a variety of different In most instances the brand exposure is • Norwich Union, in its link with athletics, traffic to dealers through their sponsorship.
sponsorships to meet the unique needs of the measured and given a value. However, in has clearly shown the reach of its media NatWest, with its long involvement in
brands. In line with the market situation the the process of valuing the media, there is a activation and has, therefore, been able to cricket, has also moved on a stage to assess
majority are sports-related, but sponsorship’s wealth of information that can be used to measure return on investment and take the sponsorship’s success in enhancing brand
use in non-sport events and film is well link back to the more intangible objectives: this further to establish the cost of attributes and any propensity to use their
demonstrated. The territories also vary, as individual contact within the target financial services in the future. The
well as the target markets – both consumer • Martell in its media evaluation process for market. integration of its grassroots schemes has not
and business-to-business are documented. the Grand National would most likely be been lost in the research.
The case studies use research and able to analyse the number of press MMC has made great use of internal research ESA is committed to ensure that as much
evaluation to prove that Sponsorship Works. cuttings by country to establish the level to evaluate its business-to-business impact. information as possible is available to the
No sponsorship can be measured unless its of exposure in, say, Hong Kong, or the It is now becoming far easier with email and market and its members to help them learn
objectives have been clearly outlined and words used to describe the Grand National internet access to get quick feedback. from others and use data to its best effect in
understood. Much is quoted on return on in articles to link them with their Gulf Air is able to monitor its corporate, assessing sponsorship and its performance.
investment, which implies a monetary communication as contemporary. business and political effects by engaging in A number of surveys will be conducted in
measurement, but just as important is the discussions through key contacts to establish 2005 by the association, one of which will
return on objectives which is far more • Similarly Sony Ericsson had good media reaction to its Formula One involvement. provide an in-depth insight into the
intangible. coverage and, with the objective of Not just a good piece of research but also a European Sponsorship Market.
ESA congratulates those who have showcasing and communicating its great PR exercise. We look forward to working with
evaluated their sponsorship performance and technology, could evaluate the number of The length of time that a sponsor has been SportBusiness on the next edition of
we would also like to provide some mentions of these elements along with the involved changes the priority of information Sponsorship Works to provide more
additional areas that may be useful for the profile of the press coverage to establish requirements. Ford, with its high brand background, information and case studies to
future of these case studies and for other the audience communicated to. profile and its 13 seasons with UEFA help educate and inform the marketplace.
sponsorships currently in place. Champions League, is not looking for brand
The most important starting point for any • The Land Rover G4 Challenge would be awareness and has clearly defined its ESA Information and Data Committee
sponsorship is to tell people about it, most able to delve into the viewing data from objectives as emotional and now at a stage www.sponsorship.org
30 : SPONSORSHIPWORKS
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