Sponsorship: Sponsorship: The Brand that Beckham BuiltThe Brand that Beckham Built

Presented by:Presented by:DoplbaurDoplbaur Tobias Tobias

LuzynskaLuzynska MagdalenaMagdalenaWeygandtWeygandt AdrianAdrianHippmannHippmann NinaNina

OutlineOutline

Definition of SponsorshipDefinition of SponsorshipThe Beckham BrandThe Beckham BrandCase QuestionsCase QuestionsConclusionsConclusions

Definition of sponsorshipDefinition of sponsorship

Sponsorship has been defined by Sleight Sponsorship has been defined by Sleight as:as:

“…“…a business relationship between a provider a business relationship between a provider of funds, resources or services and an of funds, resources or services and an individual, event or organization which offers in individual, event or organization which offers in return some rights and association that may be return some rights and association that may be used for commercial advantage.used for commercial advantage.””

Sports SponsorshipSports Sponsorship

Values transferred to sponsor:Values transferred to sponsor:HealthyHealthyYoungYoungEnergeticEnergeticFastFastVibrantVibrantMasculineMasculine

Risks of SponsorshipRisks of Sponsorship

Endorser may experience Endorser may experience performance reduction, lack of performance reduction, lack of success, or loss of popularity.success, or loss of popularity.Exposure to risk of celebrity Exposure to risk of celebrity misbehavior, which can create misbehavior, which can create negative brand and company negative brand and company association association

Risks of Sponsorship Risks of Sponsorship

The most famous cases:The most famous cases:OJ SimpsonOJ SimpsonMike TysonMike TysonMichael JacksonMichael JacksonWayne RooneyWayne RooneyDavid BeckhamDavid Beckham

David Beckham David Beckham

one of the worldone of the world’’s most celebrated s most celebrated football playersfootball playersearns earns ££9 million a year from 9 million a year from endorsement contractsendorsement contractsApril 2004, Beckham/April 2004, Beckham/LoosLoos affairaffair

David Beckham David Beckham

The Beckham Brand:The Beckham Brand:millionaire lifestylemillionaire lifestylea fashion icona fashion icona loyal and happy a loyal and happy family manfamily manhealthy, young, healthy, young, energetic, fast, energetic, fast, vibrant, masculinevibrant, masculine

David Beckham David Beckham -- EndorsementsEndorsements

BrylcreemBrylcreem::Earned close on Earned close on ££1.5 million over 1.5 million over three years from three years from the hair gel the hair gel manufacturermanufacturer

David Beckham David Beckham -- EndorsementsEndorsements

Pepsi:Pepsi:Deal worth Deal worth ££2 million a 2 million a year. He appears in a year. He appears in a series adverts alongside series adverts alongside other worldother world--class class footballers.footballers.

David Beckham David Beckham -- EndorsementsEndorsements

Adidas:Adidas:Sponsor Beckham to Sponsor Beckham to the tune of the tune of ££3 million 3 million a year. He is one of a year. He is one of the highest profile the highest profile celebrity endorsers. celebrity endorsers. He signed to the firm He signed to the firm until 2008.until 2008.

David Beckham David Beckham -- EndorsementsEndorsements

Gillette:Gillette:The deal with Gillette The deal with Gillette is worth over is worth over ££40 40 million, signed after million, signed after Beckham/Loss affair.Beckham/Loss affair.

David Beckham David Beckham -- EndorsementsEndorsements

Vodafone:Vodafone:Have renewed their Have renewed their deal with Beckham deal with Beckham after their existing after their existing ££4 million two year 4 million two year deal ended.deal ended.

David Beckham David Beckham -- EndorsementsEndorsements

Marks and Spencer:Marks and Spencer:The contract was The contract was worth worth ££10 million 10 million for its duration.for its duration.

Question 1Question 1

What factors should be assessed in What factors should be assessed in making a successful sponsorship making a successful sponsorship property selection?property selection?

Question 1Question 1

Factors in Sponsorship Property Selection:Factors in Sponsorship Property Selection:Gaining publicityGaining publicityCreating Entertainment OpportunitiesCreating Entertainment OpportunitiesFostering favorable brand and company Fostering favorable brand and company associationsassociationsImproving community relationsImproving community relationsCreating Promotional OpportunitiesCreating Promotional Opportunities

Question 1Question 1

Gaining PublicityGaining PublicityProduce awareness shifts through Produce awareness shifts through exposure in the world media, i.e. exposure in the world media, i.e. CanonCanon’’s sponsorship of soccer in UK s sponsorship of soccer in UK raised brand name awareness from raised brand name awareness from 40% to 85% among males40% to 85% among malesPosition brands in the marketplace, for Position brands in the marketplace, for example with the goal of making the example with the goal of making the brand a sports brandbrand a sports brand

Question 1Question 1

Creating Entertainment OpportunitiesCreating Entertainment Opportunitiesvenues for entertaining customers and venues for entertaining customers and the trade, such as by giving key the trade, such as by giving key customers opportunities to come to customers opportunities to come to games or test matches, and games or test matches, and allowing allowing them face time with the players, such them face time with the players, such as Tetley as Tetley BitterBitter’’ss sponsorship of the sponsorship of the England Cricket Team England Cricket Team

Question 1Question 1

Fostering favorable brand and Fostering favorable brand and company associationscompany associations

Strengthen association with target market Strengthen association with target market segment, transferring values and segment, transferring values and perceptions of individual (Beckham) to perceptions of individual (Beckham) to the sponsor, i.e. athletic, fashionable, etc.the sponsor, i.e. athletic, fashionable, etc.

Question 1Question 1

Improving Community RelationsImproving Community RelationsSponsoring socially responsible Sponsoring socially responsible activities, such as school outreach activities, such as school outreach programs can build a caring reputation programs can build a caring reputation for the companyfor the company

Question 1Question 1

Creating Promotional OpportunitiesCreating Promotional OpportunitiesPromote company brands through products, Promote company brands through products, such as Beckham jerseys, bags, aftershave, such as Beckham jerseys, bags, aftershave, razors, etc. Particularly effective when product razors, etc. Particularly effective when product can be used at the event (i.e. wearing can be used at the event (i.e. wearing Beckham jersey to Manchester United game)Beckham jersey to Manchester United game)Can add value and improve effectiveness of Can add value and improve effectiveness of other promotional vehiclesother promotional vehicles

Question 2Question 2

So when assessing the effectiveness So when assessing the effectiveness of a sponsorship, it is necessary to of a sponsorship, it is necessary to look at key aspects. These include look at key aspects. These include cost, efficiency, whether the target cost, efficiency, whether the target group was reached or how the image group was reached or how the image changes or is reinforced by the changes or is reinforced by the sponsorship. sponsorship.

Question 2Question 2

Looking at BeckhamLooking at Beckham’’s case, what are s case, what are the risks associated with sponsorship?the risks associated with sponsorship?

Question 2Question 2

Risks of SponsorshipRisks of SponsorshipCost of endorserCost of endorserEndorser may experience performance reduction, lack of Endorser may experience performance reduction, lack of success, or loss of popularity, i.e. Tiger Woods success, or loss of popularity, i.e. Tiger Woods performance dipped after Nike sponsorship, which was performance dipped after Nike sponsorship, which was attributed to the Nike golf clubsattributed to the Nike golf clubsExposure to risk of celebrity misbehavior, which can Exposure to risk of celebrity misbehavior, which can create negative brand and company association. Example create negative brand and company association. Example of Rooney cheating on fiancof Rooney cheating on fiancéé and visiting brothels, and visiting brothels, negative press about Beckham when wife wouldnnegative press about Beckham when wife wouldn’’t go to t go to Madrid with him and following press about alleged Madrid with him and following press about alleged infidelities which gave rise to corporate press releases infidelities which gave rise to corporate press releases disassociating themselves with the footballerdisassociating themselves with the footballer’’s private lifes private life

Question 3Question 3

How can the effectiveness of a How can the effectiveness of a sponsorship be measured?sponsorship be measured?

Develop a sponsorship program, Develop a sponsorship program, outlining how you would recommend outlining how you would recommend any of Beckhamany of Beckham’’s sponsorships to be s sponsorships to be evaluated.evaluated.

Question 3Question 3Measures of the Effectiveness of a Sponsoring Measures of the Effectiveness of a Sponsoring

CampaignCampaign

According to According to MeenaghanMeenaghan, the purpose for most major , the purpose for most major sponsorship deals is to increase media coverage and sponsorship deals is to increase media coverage and name mentions/sightings. Sponsorship evaluations should name mentions/sightings. Sponsorship evaluations should consequently be divided into three steps:consequently be divided into three steps:

Determine brandDetermine brand’’s present position in terms of pres present position in terms of pre--sponsorship awareness and image with target audience sponsorship awareness and image with target audience and set objectives for sponsorship. For example, and set objectives for sponsorship. For example, increase number of mentions or sightings or audience increase number of mentions or sightings or audience size from 5 million impressions to 10 million.size from 5 million impressions to 10 million.Track movements in customer awareness and attitudes Track movements in customer awareness and attitudes towards company or brand. Many companies employ towards company or brand. Many companies employ specialist monitoring agencies for this step.specialist monitoring agencies for this step.PostPost--sponsorship comparison of actual performance sponsorship comparison of actual performance levels against initial objectives.levels against initial objectives.

Question 3Question 3Sponsoring Evaluation ProgramSponsoring Evaluation Program

Beckham evaluations:Beckham evaluations:Following Real Madrid purchase, increase Following Real Madrid purchase, increase in geographic and demographic reach (i.e. in geographic and demographic reach (i.e. increase in brand awareness in Far East as increase in brand awareness in Far East as result of matches abroad and World Cup result of matches abroad and World Cup exposure, increase in number of Real exposure, increase in number of Real Madrid fans and product sales increases)Madrid fans and product sales increases)

Question 4Question 4

What are the strategic options available to a What are the strategic options available to a sponsor, in the event of the sponsored sponsor, in the event of the sponsored property receiving negative publicity like the property receiving negative publicity like the experienced by Vodafone during the experienced by Vodafone during the Beckham/Loss affair?Beckham/Loss affair?Furthermore recommend a course of action Furthermore recommend a course of action for a sponsor, giving reasons for your for a sponsor, giving reasons for your action.action.

Question 4Question 4

Strategic Options during Negative Press:Strategic Options during Negative Press:

Beckham example:Beckham example:Try to gain public sympathy over media intrusion Try to gain public sympathy over media intrusion into private family lives, thereby neutralizing into private family lives, thereby neutralizing negative pressnegative pressSign of good faith, consisting of renewing deals Sign of good faith, consisting of renewing deals (Adidas, Gillette)(Adidas, Gillette)

Question 4Question 4

Strategic Options during Negative PressStrategic Options during Negative Press

Rooney Example:Rooney Example:Coca Cola issued public statement chastising Coca Cola issued public statement chastising player, stating that his behavior does not match player, stating that his behavior does not match Coca Cola image and values, but still want to let Coca Cola image and values, but still want to let everyone have a everyone have a ““second chancesecond chance”” so they will so they will retain himretain himFord issued public statement saying that they will Ford issued public statement saying that they will review the dealreview the dealNike issued statement that they do not comment Nike issued statement that they do not comment on endorsers private liveson endorsers private lives

Question 4Question 4

Best options depend on the nature of Best options depend on the nature of the controversy and the level of public the controversy and the level of public sympathy/scrutiny. sympathy/scrutiny.

Question 4Question 4

In the Rooney case:In the Rooney case:Rooney was still a potential star and did not Rooney was still a potential star and did not have the kind of longhave the kind of long--term reputation of term reputation of Beckham, so companies had to react more Beckham, so companies had to react more harshly harshly

Question 4Question 4

In the Beckham example:In the Beckham example:his longstanding popularity and heroic status gave his longstanding popularity and heroic status gave the companies more leeway in expressing their the companies more leeway in expressing their good faith in the star. good faith in the star. The best option is most likely NikeThe best option is most likely Nike’’s response, s response, which argues that they respect their endorserwhich argues that they respect their endorser’’s s private lives, and that the athletic performance and private lives, and that the athletic performance and brand should be viewed separately. This position brand should be viewed separately. This position can allow the company to win public favor and can allow the company to win public favor and distance themselves from the scandal while distance themselves from the scandal while simultaneously still reaping some of the benefits of simultaneously still reaping some of the benefits of association.association.

Question 4Question 4

Strategic Options during Negative Press:Strategic Options during Negative Press:Terminating sponsorshipTerminating sponsorship““SweetSweet--talkingtalking”” the event, trying to give it a the event, trying to give it a positive spin. positive spin. Denying that it ever happened.Denying that it ever happened.Lie about intensions. Lie about intensions.

Thank you for your attention!Thank you for your attention!

Sources:Sources:Jobber, David. Jobber, David. Principles and practice of marketing 4Principles and practice of marketing 4thth

editionedition. New York: McGraw. New York: McGraw--Hill Company, 2004.Hill Company, 2004.Carroll, Carroll, ConorConor. . The Brand that Beckham BuiltThe Brand that Beckham Built. Variety . Variety

of published sources, 2004.of published sources, 2004.