Jonathan Neill

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Jonathan Neill
Sponsorship PR Director, Generate Sponsorship
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SponsorshipCan it survive the recession?
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Agenda

• What is sponsorship?
• The future for sponsorship
• Current challenges
• Measuring success
• Sponsorship filter
• The Co-operative in practice

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1. What is sponsorship?

• Sponsorship is a living breathing ambassador for
  your brand, reinforcing your brand and business
  values at every step, adding value to your
  business at every available opportunity.
• Sponsorship creates emotive engagement and
  loyalty by communicating with your target
  audience within their passion points in an
  environment of their choice.

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Sponsorship has multiple benefits
Trade and retail support Influencing the
financial community Better community
relations Business to business Staff motivation
/ recruitment Customer loyalty and
broader customer base Development of new
markets
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2. Is there a future for sponsorship?

• The current recession can be good for
  sponsorship
• - need to collectively promote and defend
  sponsorship
• - the sponsorship industry will progress... the
  challenges will mean it has to
• - it will become more sophisticated

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Its still a positive time... although growth is
slowing
Source IEG
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New deals consistent... slightly more withdrawals
Source The World Sponsorship Monitor
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Best sponsorships are not always the most
expensive
Source The World Sponsorship Monitor
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3. Current challenges

• Rights Holders
• Illustrate the value to sponsors
• Growth of proactive PR by RH... its a buyers
  market
• Flexible and tailored proposals... not brochures
• Still a demand for the crown jewels and low
  cost sponsorships middle tier is the challenge
• Cash isnt everything media and other assets
  are valuable

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Pride of Britain Awards

• In store activation
• Voting packs in 4,200 stores
• (7 million footfall)
• Promotion on 1,700 ATM machines (55 million
  transactions and 21 million receipts)
• 250,000 staff stickers
• In store food and drink POS

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3. Current challenges

• Sponsors
• Evaluation of sponsorship activity
• Make every penny count
• Creativity in a cluttered marketplace
• Internal sell and understanding to assist spend
  in the industry

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4. Measuring success

• Sponsorship should be and is accountable.
• Sponsorship should deliver on a number of
  specific objectives and should be evaluated
  against each.
• No two evaluation programmes are the same.

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Return on objectives... not investment

• ROO is equally as important as ROI.
• Where possible a ROI should be placed on ROO
  e.g. increase in sales (the holy grail).
• Too much emphasis on media ROI not the be all
  and end all consider effect.
• Media ROI should be one factor in an evaluation
  methodology , and one factor in your final
  success evaluation.
• Objectives and success criteria... Objectives are
  only as good as success criteria.

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The role for ROI
SET (or be given) BRAND OBJECTIVES
ASSET SELECTION
SET MEASUREMENT CRITERIA
ROI MAY (or may not) BE ONE OF THESE
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Example evaluation framework
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What level of exposure do sponsorships achieve
and what are their monetary value?

• How is the brand performing as
• A brand in sport
• A brand in football
• A brand in category e.g. Technology, Financial

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Do consumers perceive the brand is a good fit
with sponsorship property
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How has disposition to the brand changed as a
result of their sponsorships? Has consumption of
the brand changed as a result of their
sponsorships?
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Evaluating ROO
Taking any pre evaluation / selection
research and recommendations
Evaluation Model
Use stakeholders where possible RH, agencies,
in house / partners / website etc
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5. Sponsorship Filter

• Tool kit of items which make sponsorships
  compelling can include
• Association with talent, top people and
  ambassadors
• Match with business/brand objectives
• Direct sales on back of deal
• Change of perception in brand
• Corporate hospitality
• Relationship building/client retention
• Sponsorship can be the engine room driving all
  other marketing/comms activity

• CSR/staff morale/education
• Meet assets other partners
• Product demonstration
• Differentiate against competition
• Increase awareness

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10 steps to sponsorship success

• Source against best practice
• (Research marketplace, Brand fit, meet multiple
  business objectives, target audience research)
• 2. Thoroughly investigate properties
• 3. Benchmark for success set targets
• 4. Negotiate, undertake due diligence, specialist
  legal
• 5. Take a long term view (min 3 yrs)

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10 steps to sponsorship success

• 6. Work to an agreed strategy and program across
  the business
• 7. Evaluate and monitor from the beginning
• 8. Full integration into the business (internally
  and externally)
• 9. Professionally manage and leverage the
  activity (dont under resource)
• 10. Evaluate, review and be prepared to adapt the
  strategy

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6.

• Unique business democratically run by members to
  meet common needs and aspirations.
• UKs largest mutual retailer
• - Fifth largest food retailer
• - Third largest pharmacy chain
• - Number one provider of funeral services
• - Largest independent travel business
• Employs 85,000 people, has three million members
  and over 5,200 retail outlets.
• Aims to deliver on its social goals, playing an
  active part in supporting local communities and
  the wider world.

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Rebrand activity

• Largest re-branding exercise in UK corporate
  history across over 4,000 stores.
• Unify all of the individual businesses, promoting
  The Co-operative brand as a whole and
  communicating its strong brand values.
• Educate the consumer as to the credibility of the
  brand and change brand perception.
• When the benefits are passed around its Good
  for Everyone.

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The Co-operative sponsorship

• Sponsorship plays a key role in a 10million
  marketing rebrand campaign.
• All sponsorships properties must adhere to the
  community, fair trade and ethical values and
  principles of The Co-operative.
• The activity and rights have to work across at
  least three businesses to be a Co-operative Group
  sponsorship.
• Profile and celebrity endorsement is not the
  main reason to undertake a sponsorship.

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Case studies - rugby league and netball

• Rugby Business Awards 2008, Best Sponsorship
  under US500,000
• Sunday Times Womens Sport Sponsorship of the
  Year 2008

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The Co-operative and rugby league

• Official partner of The RFL, title sponsors of
  the Co-operative Championships and
• Scotland team sponsor
• - Foundations in local communities, brand values,
  geography
• Rugby league membership scheme
• Ambassador activity
• Try It campaign
• Good For Everyone camps
• Competitions and promotions
• Key Outputs
• Giving back
• Integration
• Legacy

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The Co-operative and netball

• Title sponsor of the Netball Superleague, Malawi
  and Jamaica Test Series,
• Netball World Series and Back the Bid campaign
• - Engages key target audience
• High profile supporters.
• In store activation via Chip PIN pads
• facebook social networking channel
• Presence at live Sky TV matches
• Sampling at matches.
• Key outputs
• Legacy
• Leadership
•  

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Conclusion

• Discretionary spend is down within most
  companies.
• Sponsorships now have to hold a solid business
  case and make a contribution to the bottom line.
• Creativity will triumph as all brands and rights
  holders strive to stand out from the crowd.
• Sport sponsorships will always be a viable
  investment opportunity for prospective sponsors
  but there needs to be a point of difference for
  it to succeed.
• Evaluation will be the key to success, more so
  than ever before.
• Sponsorship can definitely survive the recession