Ways that brands harness sponsorship to improve their reputation
by James P. Outreach & PR ExecutiveBack to the 1936 Berlin Olympics, Adi
Dassler, the founder of the now world-famous clothing brand, Adidas, convinced
American sprinter Jesse Owens to sport the ‘Gebrüder Dassler Schuhfabrik’ for
his race. This is deemed as the first ever sports sponsorship to take place. Now,
in 2019, sport is awash with program, shirt, and stadium sponsors. Premier
League giants Manchester United topped the table in England last season with
shirt sponsors General Motors. By including the Chevrolet badge on the front of
their shirts, the Red Devils currently earn returns of £47 million per season.
The whopping figure boasted by the
Manchester club is a drop in the ocean in terms of their entire sponsorship
deals. Intranational logistics agency DHL, American film studio 20th
Century Fox, and watch maker Tag Heuer are just a selection of the other 24
global companies which sponsor them.
The question is, why do these companies contribute
hefty sums in players, squads, and tournaments? Does it provide them a return
on their investment? In this article, we examine the potential outcomes of
major sponsorship, looking at some of the largest deals across the globe.
Just do it — why?
In 2017, approximately £48.7 billion was
spent on sponsorship throughout the world — a figure that is growing year on
year. Do the sponsors reap the necessary rewards to make their investment
worthwhile?
Take into consideration the sheer amount of
people that tune into a sporting event. Over the course of the Russian World
Cup Finals in 2018, more than three and a half billion people tuned into
witness the footballing spectacular. To put this into perspective, the current
world population sits at around seven and a half billion. In the concluding
game alone, one billion people tuned in to watch.
At a major event such as the World Cup,
clever positioning of sponsorship can ensure that your brand is being put in
front of a worldwide audience. If you happen to be involved as a sponsor at a
major international event such as the World Cup, viewers will assume that you
are a credible company. This instantly positions you in a good light.
It is also the perfect opportunity to push
your product or service. Take a burger joint at a football match for example. Bring
along a pop-up stall, sell burgers, and develop a solid client base beyond the
event and outside of your main restaurant building. This will increase brand
exposure too.
Red Bull
The energy drink giants, founded in Austria
in the late ‘80s, are one of the most successful marketing strategists in the
world. Much of their success is owed to the inroads they have made within the
sports sponsorship industry. The brand is everywhere in the world of sports,
from the New York Red Bulls, champions of the MLS, to Red Bull Racing,
ex-champions of Formula 1. Alongside this, they have become pioneers in the
extreme sports industry, sponsoring a host of events including the Red Bull
Cliff Diving Championships and the Red Bull Quick Sand Race. And what do people
need for extreme sports? Energy! What better way to lure people into the
appeals of Red Bull, than to throw an event, and give them a free sample —
genius isn’t it?
The Austrian giants haven’t just utilised
the sports industry as a means of economic benefit. They have also helped
distinguish their brand as one which cares about the community in which it
blossoms! Billionaire founder of the drinks company, Dietrich Mateschitz,
organised an event playing on the motto of the brand, “Red Bull gives you
wings,” to show support for victims of spinal cord injuries. Wings for Life,
“running for those who can’t”, takes place in 24 countries around the world,
and involves a host of Red Bull athletes.
For years, Red Bull existed as one of the
only energy drink options. Now, in 2019, with a saturated market that includes
major competitors such as Monster and Relentless, the ‘wings’ need to stand out
further from the crowd than ever before — and sponsoring events like the space
jump, is doing just that.
BMW
Bavarian Motor Works, unlike their major
German competitors Audi and Volkswagen, have decided to stay away from football.
Their decision is backed by intense calculations. Audi, who have their own
international friendly football tournament held during the summer football
break, have always been major sponsors, supplying Spanish giants Real Madrid
with a fleet of cars since 2003. On the other hand, VW back their local
Wolfsburg side with investment. So why did BMW opt for a marathon and the PGA
tour?
Sports marketing strategist at BMW,
Friedrich Edel, commented on how BMW and running are linked. Edel notes: “a
runner has to be disciplined — endurance and readiness are the key marques of
an established runner, exactly like a BMW, which efficiently makes use of its
energy reserves”.
BMW’s decision to back the Berlin Marathon
begins to make more sense when assessing the German manufacturer’s clientele.
One in four BMW owners are predicted to be runners, so showing the customers
you are also interested in their passions, helps to build a relationship.
Unlike their competitors, who are using a ‘shot-gun’ strategy, BMW are using
pin-point accuracy.
In terms of the PGA Tour, of which the
manufacturer is the primary sponsor, Eckhard Wannieck, ex-head of sponsoring, commented:
“BMW is a premium brand, so we focus on premium sports. Golf is a very dynamic,
aesthetic sport which ties in well with the BMW brand”.
The firm, who sell the stylish BMW 1 Series
hatchback, is a prime example of a company which develops their brand image in
a calculated manner. This is interesting considering a recent study by McKinsey
found that many brands ‘don’t have a decision-making process in place to decide
on sponsorships’.
Guinness
As of 2019 the Dublin-based brewery is no
longer officially linked with the Guinness World Records. However, back in the
‘50s, the awards were established by the managing director of the Irish stout
makers. Nowadays, Guinness is more than aware of the market which it needs to
be involved in, in order to take advantage of sponsorship saturation. The
‘black stuff’, as it is affectionately known as, has a longstanding
relationship with rugby.
The St. James’s Gate brewers grabbed the
opportunity by the hands to take on the role of primary sponsor of both the
Pro14 Championship and as of 2019, the Six Nations Championship. At each game
of the season and the shorter tournament the beer is available from behind the
bar. It is also consumed in the terraces, and most fan zones and public houses
dotted around the grounds will also host Guinness tents. What they have done,
like Red Bull and BMW, is find a market in which they fit. They know they can
build a relationship with their customer which goes beyond the initial sale,
and one which they can successfully penetrate!
Above we have detailed just three companies
who have entered the world of sport, despite no prior connection, and used their
world domination to leverage the success of their own product. However, it’s important
to remember that there are thousands of brands across the globe doing exactly
the same thing and experiencing a similar ROI!
Sources
https://johancruyffinstitute.com/en/blog-en/red-bull-gives-world-wings-charitable-cause/
https://www.smartcompany.com.au/finance/sports-sponsorship-attracts-billions-dollars-work/
https://www.freelogoservices.com/blog/2018/02/12/9-reasons-your-business-should-sponsor-an-event/
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Created on Nov 7th 2019 05:19. Viewed 543 times.