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Sponsorship and
the marketing mix
01_Introduction
The Ford Motor Company is a US based global automotive manufacturer.
The company has manufacturing operations in six continents. In Europe
alone there are 35 factories located in nine countries. The Ford 'family'
includes the Jaguar, LandRover, Volvo and Aston Martin brands, as well
as the well-known Mondeo, Focus and Fiesta models.
In the UK, Ford employs around
14,200 people at 10 different
locations. It has led the UK
market in new car sales for over
28 consecutive years. This has
been achieved in the context of
an increasingly competitive new
car market.
Ford operates in both the private
car and commercial vehicles
markets. It serves a variety of
markets from vans for
commercial use to the Ford
Focus (which is one of the
world’s best selling cars).
The Ford brand is well-known
and its company logo identifies
this brand worldwide.
02_Sponsorship and
marketing strategies
A strategy is a carefully considered plan devised to
help a company meet its objectives. A strategy can
relate to the company’s brand, its marketing or how
it meets customers’ needs.
Global Blue Chip companies like Ford have
carefully planned brand strategies. Sponsorship is
an effective way of meeting Ford’s brand objectives.
It permits a company to enhance the value of its
brand through a positive association with an event
or tournament.
Ford
Ford has two objectives in its sponsorship strategy.
One is to reinforce and further build the Ford brand.
The other is to achieve a good connection between
Ford and its potential customers. Through its
association with such a premium sporting event
such as the UEFA Champions League, Ford is able
to directly reach its target customer for nine months
every year. Research has clearly shown that this
sponsorship creates a positive view of Ford
particularly amongst football fans who watch
football on TV regularly.
The UEFA Champions League is the premium
European club football competition. It was officially
inaugurated in 1992. The UEFA Champions League
features the top 32 European club teams with
matches taking place on Tuesdays and
Wednesdays across Europe. The current format
came into play for the 2002-03 season. This
involves a qualifying competition, one group stage
involving 32 clubs and a final knockout stage
involving 16 clubs down to two and a final, which is
staged at a major European venue at the end.
Ford is one of six sponsors of the UEFA Champions
League. Only official sponsors, i.e. those companies
who purchase sponsorship rights from the Rights
holder, such as UEFA, are able to associate with the
competition. By purchasing these rights for the UEFA
Champions League, Ford and other sponsors have
the unique and exclusive opportunity to associate
themselves with this event. This helps Ford drive a
competitive advantage in its particular market.
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Ford

The marketing ‘mix’ is the particular set of

marketing tools used by a company. By ‘mixing’
these, a business can work to achieve marketing
objectives. Four basic tools are usually available:
Product, Price, Place and Promotion. These are
also known as the 4Ps.

03_Product
Ford produces a wide range of vehicles, each is
targeted towards a particular part of the total
market: the Ford ‘Ka’ is aimed at a different
consumer to the Ford ‘Galaxy’. The features, size,
style, image, colours and performance of these
products all appeal to distinct ‘segments’ of the
new car market. In developing new products Ford
considers the needs of different types of consumer.
All products, whether they are physical things, or
services, emerge with an end user in mind. This is a
key part of meeting the needs of a market.
price of its vehicles. This is
known as non-price
Through research, Ford knows that a large
competition. By sponsoring
percentage of target customers who are
the Champions League, the
considering purchasing one of its vehicles, will also
company can build the
be interested in football. It is likely they will watch
prestige and value of its brand
the UEFA Champions League. The company's
– this is another element of
association with the competition allows it to target
non-price competition.
these people in a very direct way.

Ford’s sponsorship can

Sponsorship rights allows Ford to target football
fans (some of whom may be potential customers)
through several communication channels, e.g. at
the stadium, within the television programme and
through themed promotions. Through these rights,
Ford can promote a specific vehicle - one which
has just been launched, or which appeals
specifically to football fans.
04_Price
A company like Ford will constantly evaluate the
return on its investment in sponsorship. This
evaluation measures both the value of the media
exposure and the impact on its brand. Price is the
second element in Ford’s marketing mix.
Ford strategists must establish a pricing policy for
its vehicle ranges. The price policy for a vehicle
takes into account costs, a profit margin and also
the price of competing products available in the
market. Its sponsorship of the Champions League
is one way Ford competed without changing the
strengthen the company’s
pricing policy. For example,
through its association with
the UEFA Champions League,
Ford is able to produce an
exclusive range of Champions
League edition cars, these will
have some special features as
well as Champions League
branding. These vehicles will
be more attractive to many buyers.
05_Place
The popularity of football across Europe and the
world, particularly amongst Ford's target customers
means that its sponsorship of the Champions
League allows the company to tap into its
customers’ passion for the sport. It means that, like
the brand, it stretches beyond national boundaries.
Its dealership network is the face of the Ford brand
at retail. This is where most customers will see the
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Ford product, test drive, and
ultimately make a purchase.
They will return throughout the
life of the vehicle for servicing
and the purchase of parts and
accessories. The Ford
dealership network is one of the
largest in Europe, it knows how
far a potential customer is
prepared to travel to purchase a
car, or for servicing. The
location of dealerships is
strategically planned to ensure
that every customer has a
dealership within a certain
radius of their home.
The dealership network is
therefore another channel
where Ford can appeal to the
customer's passion for football,
and promote its association with the UEFA Champions
League. Dealerships across Europe hold football-
themed promotions and family fun weekends.
06_Promotion
Ford employs a pan-European promotional strategy to
draw attention to its products and services. The
purpose of this is both to attract new customers and
to retain existing ones. Ford’s promotional strategy
must first create awareness of the company’s product
range. Promotion must reach target audiences that
might be geographically widely spread.
A crucial aspect of Ford’s promotional tactics is to
Ford
develop the image of the company, rather than
specific products. Ford develops a reputation as a
manufacturer of quality, size, strength and vitality.
The ‘Destination Football’ campaign serves to
associate the Ford brand with passion, drive, desire,
success, speed, movement and youth.
Marketing specialists sometimes refer to promotion
‘above-the-line’ and ‘below-the-line’. Above the line
promotion occurs through independent media, such
as the press or television. These external media are
usually used to carry advertising messages from
firms like Ford. Below the line promotion uses
methods that are not controlled by external
agencies. This includes sales promotions,
exhibitions and direct mail shots.
Promotion is therefore far more than just advertising.
Ford uses below-the-line promotions by exhibiting
vehicles at events and exhibitions; engaging in
online promotions as well as direct mailing of
customers. There is also a good deal to be gained
from public relations (PR).
For Ford, promotional options are changing. TV
advertising used to be the dominant above-the-line
promotional tool used by the powerful corporations
who had the resources. Today with more and more
TV channels available, this communication method
is becoming increasingly fragmented. TV audiences
are able to tune in to multi-channel alternatives and
satellite TV and digital freeview set top boxes are
accelerating this trend.
For marketing executives seeking the most effective
forms of promotion, technology is affecting the value
of TV advertising. People can now record
programmes for viewing later and skip the adverts
easily. Mass audiences are no longer tied to specific,
one off, broadcasts. People will shortly be able to
download programmes on to hand held devices.
Will adverts have the same effect? With this trend,
the ability through sponsorship to become part of
the television programming itself, and not just part of
the advert break, is even more important.
Ford’s Champions League sponsorship has the
advantage that it is an all-tactic promotional vehicle.
The campaign contains both above-the-line and
below-the-line components.
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Ford

During matches broadcast live across the world, TV

adverts for Ford products can be shown. The Ford
brand and specific products aimed at local markets
are emphasised before a match, at half-time and
immediately afterwards. Ford can commission
poster campaigns promoting the game as well as
their products; press adverts can do the same.

At the matches, Ford's presence on the pitch in the

form of perimeter boards means that the Ford
brand is almost part of the game itself, and Ford
can promote its brand message strongly for the full
ninety minutes of the game. On TV the 'idents'
which top and tail the match programme into and
out of the advertising breaks provide another
opportunity. Here Ford can promote a specific
brand message targeted to the football audience
who regularly switch on for Champions League
matches. These are all ‘above-the-line’ tactics.

The Champions League connection can help to

generate below-the-line promotion too. At the
stadium as fans arrive for a match, shoot-out zones
and five-a-side games are an opportunity for Ford
to promote its association with the tournament. PR
is gained by offering young children the chance to
participate in the pre-match ceremonies.

07_Conclusion
Football sponsorship for Ford means being a key
ingredient of the UEFA Champions League. This
is a long-term strategy that goes beyond merely
attaching the Ford badge to the event. The
dynamics of the competition, the excitement and
the desire, the eventual outcome, combine to
create a positive view of Ford.

Blue Chip companies: a common stock of Market: the total available, or potentially

nationally known companies whose value and available, body of purchasers for a product.
OF TERMS
GLOSSARY

dividends are reliable; typically have high price

and low yield; "blue chips are usually safe Sponsorship: where a firm ‘buys in’ to an event

investments". or team by paying some or all of the costs.

Brand: an identifiable name, slogan, symbol or

image that uniquely identifies a product or a

family of products.

For more information about Ford please browse:

www.ford.co.uk