R2 - MAN7096 Sports Marketting & Sponsorship Revised

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FOOTBALL TEAM MARKETING & SPONSORSHIP

TABLE OF CONTENTS:

1. Sports Football
 Manchester United
 Competitors
 Porters Five Model
 Target Market for Sponsorship
 Route to identification of sponsorship market
 How to position sponsorship products in the Market
 Communicating with sports market (Buckley, 2008)
 Distribution channel with international sports marketing
SPORT: FOOT BALL

INTRODUCTION:
 Football is one of the most common game played around the world.
 In Football, a kick is all that is needed to the ball to make it touch the
net, once this happens; its considered as a Goal.
 Football is one of the most watched game; and football industry is
also considered as a billion dollar industry (Buckley, 2008
TEAM: MANCHESTER UNITED
 Its an English Football club
 Based in Old Tress ford
 MU plays in the premier league
 It was founded in 1878
 MU name was changed in 1902
 MU won 19 leagues trophies
 3 victories in European cups
COMPETITORS:

 LPC (Liver Pool Club)


 Chelsea
 Arsenal
 BFC (Barcelona Football Club)
 RMC (Real Madrid Club)
 AC Milan
 Inter Milan
 Bayern Munich
PORTERS FIVE MODEL:
Potential Entrants

COMPETITOR Industry Competitors BUYERS


S

Substitute Products
PORTERS FIVE MODEL:

New Entrants
Threat

Suppliers RIVALRY AMONG


Buyers Bargaining
Bargaining COMPETITORS

Substitute Product
Threat
MANCHESTER UNITED & THREAT OF NEW ENTRANTS:
New
Entrants Barriers to entries, Capital requirement, Cumulative Experience, Government Policies

Threat

Suppliers
Suppliers Size, Unique Suppliers Product, Substitute Product,
Bargaining

Buyers Customer Order, Price Sensitivity, Switching Cost, Substitute buyers ability
Bargaining

Substitute
Product Switching cost, Substitute Cost, Relative price performance
Threat
MU & Porters Five Model:
Traditional Competitors:
Liverpool Football Club:
Traditional competitors are as following.
LFC has a large number of loyal fans
Effective Marketing Strategy (Johns, 2009)
Sponsors:
Following companies are the sponsors of the LFC.
Standard Chartered Bank
Carlsberg
Candy
Revenue:
Net worth 533 million Pounds
Ever highest net worth while crossing half billion (Goldman & Johns, 2009).
MU & Porters Five Model:

Traditional Competitors:
Barcelona Football Club:
BFC is a Traditional competitor and rivalry against the Manchester United.
BFC is considered as one of the best club in Spain
It has a global brands marketing (Johns, 2009)
Sponsors:
Following companies are the sponsors of the LFC.
Qatar Foundation
UNICEG
NIKE
Revenue:
Net worth is 4.06 billion US dollar
Its known as the richest football club
TARGET MARKET FOR SPONSORSHIP:

Sponsorship Markets:
Sponsorship markets for the MU are as following.
International Banking Sectors
International footwear and apparel brands
International Air Lines
Retail Industry
Merchandizing (Goldman & Johns, 2009).
Route To Identification of Sponsorship Market:

Following strategies would be considered for the identification of Sponsorship markets


(Roy, 2005).
1. Defining the SMART objectives of the Manchester United
2. Identification of equity prospects
3. Assessing the equity of target market
4. Valuable projection of the project
5. Way forward strategies for the sponsorship across the globe
6. Optimization of outcomes through sponsorship ROI
SPONSORSHIP PROCESS MODEL:

Initial decision Target Objectives Engagement Measurement Subsequent


audiences and evaluation decisions
Questions Asked to Client for Sponsorship:

Following questions would be asked to client for sponsorship of the Manchester United:
 What is the target market of the organization?
 What kind of actions are taken by the customer before purchasing?
 What's about the experiences of sponsorship earlier made and their dynamics?
 What are the expected sales outcomes of the coming year?
 What would be your most important segment of the sponsorship and what should be
avoided?
PROPOSED PACKAGE ASSETS FOR SALE IN THE MARKET:

Proposed package asset for sale in the market is as following.


1. Calculation of target sample size
2. Calculation of customer acquisition cost
3. Calculation of price conversion
4. Calculation of commencement price
5. Preparation of final price
6. Compilation of sponsorship proposal (Global Sport Marketing, 2013)
PRICING MODEL FOR THIS EVENT

In our event, the inventory is not going to be


temporary as most sports events (Specially
Foot ball) is done in a Football Stadium or
Football ground which will not require to
maintain a level of inventory relating to the
PricingIdentifying
Sponsorship Packages Right
model (Roy, 2005) . Awareness
Lifetime Customerof
Understanding Audience
Research
Market
Value
competition
Audience
Trends
(LCV) and
Segments
and
Customer Influences
Acquisition Cost (CAC)
Asset for Sale and Pricing Model:
The objective of pricing model is that it shows the relationship between systematic risk
and capital return.

Step 1. Total Audience Size


Step 2. Customer Acquisition Count
Asset for Sale and Pricing Model:

STEP 3. Calculation of starting price

STEP 4. Calculation of price per


conversion

STEP 4. Preparation of final price


AUDIENCE OBJECTIVES MODEL:

Audience objective model is as follows:


Lead Generation Brand Awareness

Acceptance of a new role Media Exposure

Market Expansion Sales Increase


PROPOSAL TO SERVICE AND MANAGE THE SPONSORSHIP:

Following points are proposed to keep the relationship strong between service and
management of sponsorship (Thwaites, 2005).
 To be remain in contact with the sponsoring organization
 Planning of meeting with the sponsoring stakeholder organization
 to overview the assets of the organization
STRATEGIES TO SOLICIT SPONSORS:
Understand
Understand what
what
you
you have
have to
to offer
offer
aa sponsor
sponsor

Research
Research your
your
Networking
Networking potential
potential sponsors
sponsors

Who
Who can
can Say
Say
Intermediaries
Intermediaries YES?
YES?

Where
Where do
do they
they
Get
Get on
on the
the phone!
phone! hang
hang out?
out?
PROCESS FOR SOLICITING SPONSORSHIP

Following steps are used in the process of soliciting sponsorship (Meenaghan, 1991).
 Comprehension of organizational funds needs
 Recognition of a specific event for raising funds
 Outline of financial needs
 Proposal regarding explaining goals and needs for soliciting sponsorship
 Follow-up of sponsorship (Meenaghan, 1991)
 Building relationship with sponsors
 Thanking note for successful organization of an event
 Keeping in contact with partner sponsors for upcoming events
CHANNEL USED FOR SPONSORSHIP:

Following steps are used in the process of soliciting sponsorship.


 Social Media
 Electronic and Print Media
 Events
 Marketing
 Program Hosting
 Crowd
 Web Based Sponsorship
HOW TO SERVICE AND MANAGE THE SPONSORSHIP:

Following are the steps through which sponsorship services can be managed
(Shuman, 1987).
 Audience
 Contribution
 Exposure
 Experience
 Lead value
 Extra perks
HOW TO POSITION SPONSORSHIP PRODUCTS IN MARKET:

Following are the methods to position the sponsorship products in the


market (Thwaites, 2005) .
 Promotional strategies
 Advertisement
 Influence of personnel relationship (Global Sport Marketing, 2013)
HOW TO POSITION SPONSORSHIP PRODUCTS IN MARKET:

Promotional Strategies:
Following are the key determinants of promotional strategies to position sponsorship
products in the market (Shuman, 1987).
Communication through digitalization:
It includes Social Media and web content strategies
Personnel Relationship:
Engagement with the firm's leadership and management
Innovative ideas:
Exploring new and innovative concepts to reach out the global and local markets
COMMUNICATING WITH SPORTS MARKET:

FIFA SPONSORSHIP:
Following are the key sponsors of FIFA
 Coca-Cola
 Hyundai
 Kia Motors
 Adidas
 VISA
DEVELOPMENT OF STRATEGIC PLAN:
m

Strategic plan defines about the success of the organizational products.

Setting of business aim and objectives

Formulation of marketing goals.

Market trends analysis

Identifying the competitors


HOW TO POSITION SPONSORSHIP PRODUCTS IN MARKET:

Following are the distribution channels in international sports


marketing:

Retailers outlet

Direct selling

Event based selling (Global Sport Marketing, 2013)


HOW TO POSITION SPONSORSHIP PRODUCTS IN MARKET:

Following are the distribution channels in international sports marketing


(Shuman, 1987):

Retailers outlet

Direct selling

Event based selling


CHALLENGES IN SPORT MARKETING:

Following are the different sports marketing challenging in the process of


sponsorship (Shuman, 2002).
 Increase in cost production
 Fluctuation in currency rates
 Sales and television fees
 Advertising cost
 Partnership issues
 Non availability of athletes
 Plans and Selling
ROI APPROACHES TO SPONSORSHIP MEASUREMENT

 Reach
 Engagement
 Time Frame Visitors
 Mentions
 Follower Growth
 Audience Growth
 Database/List Growth
 MQL Scores 
 Localized or National Lead/Sales Lift
ENSURING SPONSORSHIP RECEIVE ROI:

Following are the ensuring sponsorship receive ROI steps.


Impression of Brand
Increase in number of leads
Quality position
Feedback received
Interaction of social media
Potential even ROI
REFERENCES:
1. Cooke, M., Buckley, N. (2008), social networks and the future of market research, International Journal
of Market Research, Vol. 50 No.2, pp.267‐92.
2. Goldman, M., Johns, K. (2009), "Sportainment: changing the pace of limited‐overs cricket in South
Africa", Management Decision, Vol. 47 No.1, pp.124‐36.
3. Porter, M.E. (1979). How Competitive Forces Shape Strategy. Harvard Business Review
4. Porter, M.E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review
5. Cornwell, T. B., Weeks, C. S., & Roy, D. P. (2005). Sponsorship-linked marketing: Opening the black
box. Journal of advertising, 34(2), 21-42.
6. Chadwick, S., & Thwaites, D. (2005). Managing sport sponsorship programs: Lessons from a critical
assessment of English soccer. Journal of Advertising Research, 45(3), 328-338.
7. Meenaghan, T. (1991). The role of sponsorship in the marketing communications mix. International
journal of advertising, 10(1), 35-47.
8. Gardner, M. P., & Shuman, P. J. (2002). Sponsorship: An important component of the promotions mix.
Journal of advertising, 16(1), 11-17.

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