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Download With Love, from the Firms to the Teams: The Sport Sponsorship
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With Love, from the Firms to the Teams: The Sport Sponsorship Strategy with Brazilian Football Teams 1. Introduction Sports marketing is growing in football fields while Brazilian firms compete for consumers. That was the sporting sponsoring support the growth and spread of companies. According to Afif (2000), there are people who think sponsoring football teams is dangerous. The most common argument is that fans of other teams will stop consuming products of the sponsoring company if it is not in their clubs. There are examples of competing organizations that use sports marketing strategies and choose to sponsor rival football teams to win the fans of these clubs as consumers. There are also those companies that prefer to sponsor opponent clubs simultaneously, in order to avoid any rejection by the fans. This study shows how the choice of marketing strategies and sports sponsorship from the sponsoring companies is important for a successful promotion of organizations. It aims to analyze the use of sports marketing strategy of the same company with rival football teams, and competing firms sponsoring opponent teams of such sport. 2. Literature Review Marketing sponsorship represents an opportunity for an organization and its brands to focus their communication in restricted targets, specific and highly desirable. (Cardia, 2004, Shimp et al, 2001). The main responsible companies for popularizing sports marketing around the world were the industries of tobacco and alcoholic beverages, as an alternative to the restriction of advertisements by the American Congress during certain hours. Companies such as Marlboro and Camel, Campari and Fosters had a successful history of association with the sport, particularly motorsport. (Afif, 2000; Pozzi, 1998; Shannon, 1999). Shannon (1999) reports that interest in professional sports focuses on sports as a profitable business. Huge amounts of money spent in various sectors of sports marketing leaves no doubt that sport is a multibillion dollar business. Zunino (2006) reports that, in football, considered the biggest Brazilian sport, the strategy of brand association to sport is growing and improving relations between businesses and consumers in sports. Teitelbaum and Luce (1997) treat the communication agent as a tool in the promotion of trade carried out among players of the sport (athletes), investors and the consumers (fans). One could say that programs and marketing activities occur in both directions of the process, always coming from the central element: the sport and its players. Thus, on one side, the focus is on offering the sport product and to get in return the support of consumers, and on the other side, the effort is aimed at placing the sport in the promotional component of an investor who, in exchange for its resources, can now rely on the sport and its actors as vehicles in the conduction of their messages in search of the preference of those consumers that are now shared. A variety of sporting activities has financially benefited businesses and football teams from establishing a partnership with private firms, government agencies or sporting events. (Bennett, Henson, Zhang, 2002). The sports sponsorship has become a communication tool, useful in building brand awareness, brand image and corporate image. (Cornwell et. al., 2001; Hoek et. al, 1993; Javalgi et al. 1994; McDonald, 1991; Quester, 1997; Cornwell, Roy, Steinard II, 2001, Witcher et al. 1991). According to Budolla and Souza (2005) the sponsor can gain interest and respect of consumers and even get gratitude from them, because they enable a sporting event or an incentive for an athlete, since these things could not happen, if it wasn’t for the sponsorship. Fan behavior is most intense when fans believe that the team or athletes represent their values and when sports organizations, teams, players and coaches are respected and viewed as trustworthy and credible. (Bee and Kahle, 2006). Stotler (2004) states that the measure of the effectiveness of sports sponsorship is whether the marketing specific organization objectives have been met. One feature of the sports marketing sponsorship is, according to Lough & Irwin (2001) the probability that there is a basic significant consumer that will associate the sponsor's message to the sporting event, and, conversely, will associate the sport with the sponsor’s image. According to Afif (2000), in Brazil, football is the sport that has the greatest investment in sports sponsorship, since it is considered a national passion. Bennett (1999) identified in their studies that football viewers perceived it with greater sensitivity to the sponsoring brand and more than twenty percent of the fans were willing to purchase products from the sponsoring company. Mason (2005) said that sports sponsorship can impact consumers` attitudes by soliciting positive emotional attachments, corporate sponsors the alter consumers` cognitive structures leading consumers to engage in desirable (from de marketers’ perspective) behaviors. In football, the sports sponsorship presented mainly through advertising and advertising on the uniforms of clubs, sports facilities (stadiums, training centers, the team bus), and the endorsement of sporting equipment and supplies to famous individual players (Zunino, 2006). Football clubs are excellent vehicles for communication, (Budolla and Souza, 2005) are cheaper than television media, while generating more time of exposure than if same amounts were paid directly to the broadcasters for commercials. 3. Methodology This study used a qualitative, quantitative, exploratory and descriptive research. The article published on July 24, 2008, in Portal Exame Magazine brings rival teams of Brazilian football, with sponsors of the same market segment, which are competing with each other. On the other hand the issue reveals that some rival teams had the same company as sponsors. Brazilian football teams and rivals, which are sponsored by organizations of the same segment and are competitors are shown in figure 1, as it follows: 1 2 3 4 5 Rival Teams Cruzeiro Atlético Mineiro São Paulo Futebol Clube Corinthians Santos State MG MG SP SP SP Sponsoring Firms Construtora Tenda (construction) MRV Engenharia (construction) LG (eletronics) Samsung (eletronics) Semp Toshiba (eletronics) Figure 1: Rival teams Sponsored by Competing firms Source: Adapted from Exame Magazine – 24/07/08 Among the rival football teams, which had the same firm as a sponsor, it was found the following teams and firms, as per figure 2: Rival Teams 1 Bahia 2 3 Grêmio Sport Internacional State Vitória BA Juventude Náutico RS PE 4 Figueirense Avaí SC 5 Atlético PR Coritiba PR Sponsoring Firms Canal Jeans Fiat (car) (jeans) Banrisul (bank) Minasgás (gas) Unimed Ambev (health) (beer) Fiat (car) Figure 2: Rival teams sponsored by the same firm Source: Adapted from Exame Magazine – 24/07/08 Some communities from the most popular social networking website in Brazil at the time (Orkut) were used, which served as source for the quantitative data collection (Anana et al. 2006). The communities were chosen based on the number of members in each community that represented each football team researched in this study. For this survey, members’ login from each of the communities described previously were collected randomly and individually. It was also posted information about this research in the communities’ forums as a way of achieving the groups of fans more effectively. For the qualitative research, semi-structured interviews were conducted with marketing managers of the sponsoring firms. One of the instruments for the research data collection was a structured questionnaire sent to the communities’ members in the social networking website Orkut. The questionnaire was prepared based on Budolla and Souza (2005) who said that the fans create a relationship of gratitude to the sponsoring organization for the simple fact that it supported the cause of sports. Another source for the questionnaire came from the study of Afif (2000), who believed to be dangerous for a company to sponsor just one football team, as fans of opposing teams may end up not getting their products as revenge. Two kinds of questionnaires were developed: one specific for teams whose rivals are sponsored by competing firms; and other questionnaire, specific for the fans of rival teams that are both sponsored by the same firm. On both questionnaires there were some questions such as gender, age, education level, if they were fanatics supporters, where they usually watch the soccer game, if they usually realize what companies sponsors the team that they love and also the opposing teams, if they buy the products of companies sponsoring the team that they support and their rivals, and how often, why they buy or would buy the sponsoring companies´ products and if the good performance of the team encourages fans to buy products of sponsors were some questions asked, to draw a profile of the respondents and help to know them better. Its answers help to find out if the companies’ aims in sponsor a team are in the same path of the fans and consumers behavior. The structured interview guide was adapted from Teitelbaum and Luce (1997) and the marketing managers of the organizations mentioned above participated. It was proposed two segments: for the same firm that sponsors both rival teams, and for the competing firms, from the same segment, sponsoring rival clubs. Some firms have not responded to interview because of their top secret strategies. It was used simple categorization for the qualitative analyses, which allowed to understand the reasons why the surveyed organizations sponsor the football teams studied in this research, what kind of goals that companies want to reach with this partnership, the role of marketing in that relationship, among other determining factors to keep supporting the football team. 4. Results The analyses of the questionnaire answered by the teams’ fans were divided into two groups. Group 1: rival clubs sponsored by competitors, Group 2: both rival clubs sponsored by the same company, from both the Northeast (group 2 A) and the South (group 2 B). The majority of the sixteen surveyed teams’ fans were male, aged up to 25, single and had either High School or College degree. The results of Group 1 show, briefly, a majority of men, single, aged between 18 and 25, and they consider themselves fanatics, who pay attention to the sponsors of their teams and, at times, the rivals’ ones. The study confirms the diagnosis of Pozzi (1998), regarding visibility and feedback that brands receive with sports sponsorship. The supporters of this group still follow the games of their teams in the stadium or on TV. Group 1 fans sometimes choose buying products from sponsors of their teams and show indecision about products from brands that sponsor rival clubs. The popular options on the purchase of goods from rival brands were: never, rarely or sometimes. The main reason for so is that the fans do not want to contribute financially to the team they hate the most. Others said that the brand is tied to the club and some fans declared that companies sponsoring the rival team do not interfere in their purchasing decision. Finally, the performance of their favorite team in championship games motivates this group to purchase products of sponsors. Group 2 is mostly male, single, aged between 18 and 25 and had either High School or College degree, which are always fanatical and often watch the games at the stadium. This group always note the brand of the company sponsoring their favorite team and sometimes the opposing team. These fans sometimes buy the products that sponsor their teams and know that rivals sometimes are sponsored simultaneously by the same company that also sponsor their team. The strategy of a company supporting at the same time their favorite team and an opposing team has divided the opinions. Some of them estimated that the company should opt for a single team; some do not give importance to companies sponsoring both their team and its rival, while others assess the strategy as being good, because it manages to please fans of both clubs. Fans of this group assessed that the sponsorship of their favorite team and its rival by the same company does not interfere in their purchasing behavior, and the fact that the sponsor is also linked to a rival team has not changed the image that they have of a brand. Besides, they feel motivated to purchase products according to the performance of their teams in matches and tournaments. The first company that was interviewed is Minasgás (a gas company), which sponsors teams as “Sport Club do Recife”, “Yacht Club Capibaribe” and “Santa Cruz”, all of them from the same State, (Pernambuco). It was asked how the rapprochement between the corporate sector and clubs from the State of Pernambuco, in Brazil, happened. The initiative came from the Vice President of “Santa Cruz” team, and met the strategy that the company had: to conquer consumers in the North and Northeast of Brazil. The second question was related to sponsoring rival teams, simultaneously. The manager said that Minasgás does not endorse rival teams but popular football teams. He considers the clubs of Pernambuco State with popular appeal and tradition in northeastern Brazil. When he was asked if the use of this strategy would have been taken to avoid any kind of rejection by the fans, who are also consumers of the company’s products, the marketing manager said no, since they sponsored the “Santa Cruz” team for two years before signing a contract with the other clubs. He assesses as great the opportunity to sponsor more than one team at the same time. He also says that it is a goal of Minasgás to get these fans together by selling shirts and sporting goods with the logo of the company; and he sets a target for Minasgás’ department of marketing to constantly communicate its brand. The performance of the teams is not a determinant for the continuity of the partnership, according to the manager of Minasgás. As an example, he quotes the lowering of “Santa Cruz” team to the Brazilian group C, when they renewed the sponsorship contract with Minasgás. The company's mission is also to provide conditions for teams to improve their own performance. The idea is to get an “ideal marriage” between the needs of the team and the firm. According to the marketing manager of Minasgás, the Brazilian football market deserves ongoing attention. The second interview (Group 2) was performed with the marketing manager of Unimed, a health insurance company to assess the initiative of sponsoring simultaneously rival teams of Santa Catarina State, called “Figueirense” and “Avai”. In the company’s point of view, sponsoring just one of the clubs would most likely divide the region (Florianópolis, the capital of Santa Catarina) into two parts. The focus of the partnership is to honor the cultural issue of both groups of fans. The manager considered high the return on investment in football, which is the greatest sport in Brazil. The company believes in the identity with the fans and wants to associate itself with an image of health and quality of life. Thus, the manager denied that the strategy is to avoid rejection by the fans / consumers. The results that are expected by the company with the partnership with “Figueirense” and “Avai” teams is to obtain return offered by investing in football, to associate sports to health (since it is a company’s sector) and to strengthen the brand. Unimed explores the image of players and coaches of the clubs sponsored in promoted events related to health. The Marketing of Unimed is responsible for administering all claims arising from the partnership with the clubs, as dissemination of studies on returns (spreadsheets, tracking results, etc) and the management of the use of the company’s services by the customer. The Marketing Manager of Unimed considers the media's role in the relationship really important. He analyzes it as being able to describe the image the company intends to show. The media is used to highlight the benefits from the partnership. The performance of “Figueirense” and “Avai” in the championships is not decisive for the continuity of the partnership, which has lasted for six years at the time. 5. Conclusions After analyzing the results of the two surveys used in this study, it was perceived that there is a great brand visibility and the consequences of football sponsorship are positive for organizations. The sponsorship benefits both the organization and the football team. Regarding the qualitative research, there was some difficulty on getting the information needed to answer the research question of this study, since only two institutions have responded the interview, it was analyzed the position of these only two firms sponsoring rival football teams simultaneously. The results obtained with quantitative research with the fans reinforced some interesting points. Anyway, it is noted that the sponsorship of football teams is a tool that marketing provides to organizations that want to make use of different strategies and to be able to target a specific audience and at the same time, massive. This is seen both with the companies who support the clubs in Group 1, in a focused way; as with business partners who support clubs from Group 2, sponsoring simultaneously rival teams. It may also be mentioned as a study limitation the fact that the fans were recruited at the most popular social networking website at the time (Orkut), which limits the research to fans who use that site. By the conclusions obtained in this work, further studies may be conducted in order to enrich the conceptual correlations initiated by this research. It is possible to include other rival clubs in the country that have the same sponsors. Another suggestion is to apply a more accurate statistics, which may enable to confirm the significance of the data reported in this study, as well as checking the differences between groups. It can also focus on the scope of regionalism, and take the halftime of football matches in different Brazilian States, to make direct approaches to the fans. REFERENCES Afif, A. (2000). A Bola da Vez: O Marketing Esportivo como Estratégia de Sucesso. Sao Paulo: Infinito. Anana, E. S. (2006). Segmentação de Mercado Utilizando Dados da Comunidade Virtual Orkut. In Encontro de Marketing da ANPAD (EMA). Barros, C., Santos, A., Chadwich, S. (2007). Sponsorship Brand Recall at the Euro 2004 Soccer Tournament. Sport Marketing Quarterly, 16, 161-170. Bee, C. C., Kahle, L. R. (2006). Relationship Marketing in Sports: A Functional Approach. Sport Marketing Quaterly, 15, 102-110. Bennett, G., Henson, R., Zhang, J. (2002). Action Sports Sponsorship Recognition. Sport Marketing Quarterly, 11(3), 185-196. Bennett, R. (1999). Sports sponsorship, spectator recall and false consensus. European Journal of Marketing, 33(3/4), 291-313. Budolla, M. S., Souza, A. (2005). O Patrocínio Esportivo como Canal de Comunicação da Estratégia Mercadológica: o Estudo de Caso do Banco do Brasil. In XXIX ENCONTRO ANUAL DA ANPAD (ENANPAD), 29. Cardia, W. (2004). Marketing e Patrocínio Esportivo. Porto Alegre: Bookman. Cornwell, B., Roy, D., Steinard, II. E.(2001). Exploring Managers´ Perceptions of the Impact of Sponsorship on Brand Equity. Journal of Advertising, 27 (1), 1-21. Javalgi, R. G., Traylor, M. B. Gross, A. C. & Lampman, E. (1994). Awareness of sponsorship and corporate image: an empirical investigation. Journal of Advertising, 23(4), 47-58. Lough, N., Irwin, R. (2001). A Comparative Analysis of Sponsorship Objectives for U.S. Women´s Sport and Traditional Sport Sponsorship. Sport Marketing Quarterly, 10. Mason, Kevin. (2005) How Corporate Sport Sponsorship Impacts Consumer Behavior. The Journal of American Academy of Business, 7. Melo Neto, F. P. (2000). Marketing Esportivo. Rio de Janeiro: Record. Pozzi, L. F. (1998). A Grande Jogada: Teoria e Prática do Marketing Esportivo. São Paulo: Globo. Shannon, J. R. (1999). Sports marketing: an examination of academic marketing publication. Journal of Services Marketing. 13, 517-534. Shimp, T. A. (2001) Propaganda e promoção: aspectos complementares da comunicação integrada de marketing. Porto Alegre: Bookman. Stotlar, D. (2004). Sponsorship Evaluation: Moving from Theory to Practice. Sport Marketing Quarterly, 13, 61-64. Teitelbaum, I.; Luce, F. B. (1997). Marketing Esportivo: Um estudo Exploratório. In: ENCONTRO ANUAL DA ASSOCIAÇÃO NACIONAL DOS PROGRAMAS DE PÓSGRADUAÇÃO EM ADMINISTRAÇÃO (ENANPAD), 21.,1997, Rio das Pedras- RJ. Anais do XXI ENANPAD, Rio das Pedras: ANPAD. Witcher, B., G. Craigen, D. Culligan and Harvey A. (1991), The Links Between Objectives and Function in Organizational Sponsorship. International Journal of Advertising, 10: 13-33. Zunino, R.(2006). Comportamento de Compra de Torcedores de Clubes de Futebol: Um Estudo da Aquisição de Produtos dos Patrocinadores. In: II ENCONTRO DE MARKETING DA ANPAD (EMA), 2., 2006. Rio de Janeiro. Anais... Rio de Janeiro: ANPAD, 2006. APPENDICES Appendix A QUESTIONNAIRE (Rival Teams – Competitors Companies) 1) Gender: ( ) Male ( ) Female 2) Age Group: ( ) Up to 17 years old ( ) 18 to 25 years old ( ) 26 to 30 years old ( ) 31 to 35 years old ( ) 36 to 40 years old ( ) 41 to 45 years old ( ) 46 to 50 years old ( ) over 50 years old 3) Marital Status ( ) Single ( ) Married ( ) Divorced ( ) Widow / Widower 4) Schooling: ( ) Elementary School ( ) High School ( ) College ( ) Master´s Degree ( ) Doctorade 5) Of the teams below, in your opinion, what is its biggest rival of yours? ( ) São Paulo ( ) Corinthians ( ) Santos ( ) Palmeiras ( ) Cruzeiro ( ) Atlético MG 6) How often am I a “fanatic” fan”? ( ) Never ( ) Rarely ( ) Sometimes ( ) Always 7) ( ( ( ( I usually follow the soccer games of my team: ) In the stadium ) By TV ) By radio ) By internet 8) How often do you note the sponsors of the teams that you like? ( ) Never ( ) Rarely ( ) Sometimes ( ) Always 9) How often do you note the sponsors of the rival team? ( ) Never ( ) Rarely ( ) Sometimes ( ) Always 10) How often do you buy the products or services of the companies that sponsor the team that you like? ( ) Never ( ) Rarely ( ) Sometimes ( ) Always 11) How often do you buy the products or services of the companies that sponsor the rival team? ( ) Never ( ) Rarely ( ) Sometimes ( ) Always 12) Why don’ t you buy the products or services of the company that sponsors the rival team? ( ) Because the company contributes financially with the team that I hate ( ) Because the company does not have products/ services that satisfy my necessities ( ) Because the brand is linked to my rival team ( ) There is not a special reason ( ) The fact that the company sponsoring the rival team does not influence my buying decision ( ) Another reason 13) Why do you buy or would buy the products or services of the company that sponsors the team that you like? ( ) Because the company contributes financially with the team that I like ( ) Because the company has products that interests me and meets my needs ( ) Because the product brand is linked with the team that I like ( ) There is not a special reason ( ) The fact that the company sponsoring the team that I like does not influence my buying decision ( ) Another reason 14) The good performance of my team in the championships games makes me feel ______ in purchasing the products of the sponsoring company ( ) Not motivated ( ) Poorly motivated ( ) Motivated ( ) Very motivated ( ) Extremely motivated Appendix B QUESTIONNAIRE (Rival Teams– Same company) 1) Gender: ( ) Male ( ) Female 2) Age Group: ( ) Up to 17 years old ( ) 18 to 25 years old ( ) 26 to 30 years old ( ) 31 to 35 years old ( ) 36 to 40 years old ( ) 41 to 45 years old ( ) 46 to 50 years old ( ) over 50 years old 3) Marital Status ( ) Single ( ) Married ( ) Divorced ( ) Widow / Widower 4) Schooling: ( ) Elementary School ( ) High School ( ) College ( ) Master´s Degree ( ) Doctorade 5) Of the teams below, in your opinion, what is its biggest rival? ( ( ( ( ( ( ( ( ( ( ( ( ) Bahia ) Vitória ) Internacional ) Grêmio ) Juventude ) Sport ) Náutico ) Santa Cruz ) Figueirense ) Avaí ) Atlético PR ) Coritiba 6) How often am I a “fanatic” fan”? ( ) Never ( ) Rarely ( ) Sometimes ( ) Always 7) ( ( ( ( I usually follow the soccer games of my team: ) In the stadium ) By TV ) By radio ) By internet 8) ( ( ( ( How often do you note the sponsors of the teams that you like? ) Never ) Rarely ) Sometimes ) Always 9) How often do you note the sponsors of the rival team? ( ) Never ( ) Rarely ( ) Sometimes ( ) Always 10) How often do you buy the products or services of the companies that sponsor the team that you like? ( ) Never ( ) Rarely ( ) Sometimes ( ) Always 11) Do you know that same company wich sponsors the team that you like also sponsors its rival team? ( ) Yes ( ) No 12) What do you think about that? ( ) Not important ( ) Bad. The company can not please the fans of my club, nor fans of the rival team ( ) Good. The company manages to please fans of both clubs ( ) The company should choose only one of the clubs 13) Now that you know that the same company sponsors the team that you like and also its biggest rival, has anything changed regarding the image that you had of the company? ( ) No. I think it is a good strategy. ( ) Yes. I am not pleased to find that it sponsors the opposing team and I am not buying its products in the future ( ) Yes. I am not pleased to find that it sponsors the opposing team but If I need I will buy its products ( ) The fact that the company sponsoring the rival team does not influence my buying decision 14) The good performance of my team in the championships games makes me feel ______ in purchasing the products of the sponsoring company ( ) Not motivated ( ) Poorly motivated ( ) Motivated ( ) Very motivated ( ) Extremely motivated Appendix C Interview (Rival Teams - Competitive Enterprises) 1) Effectiveness of the relationship: a) How was the approach? (Who started the initiative, the company or the soccer team?) b) Why is using the strategy of sponsoring a team and their rival teams are sponsored by the company's direct competitors? c) Can you say that the fact of using such a strategy is risky for the organization? (Because the fans of other clubs do not buy products from the company sponsoring the team for its rival) d) Do you believe some fans / customers can not purchase products or services of the company sponsoring the team by its rival? e) If you believe that the strategy can be risky, is there any other company's strategy to reach them? What? f) What results are expected by sponsoring the team "x", 2) Value Investor Entity X Sports a) What are some business arising from the relationship (events / sports equipment / licensing); b) What is the role of marketing / communications as enablers and / or maintain the relationship? 3) Durability Value a) What is the role of media in (maintaining) the relationship? b) The performance of the teams at the championships is vital to the continuation or otherwise of the partnership between the company and the club? c) Expectations about the future of the relationship. d) Expectations about the future of the market. (Adapted from Teitelbaum and Luce, 1997) Appendix D Interview (Competing Teams - Same Company) 1) Effectiveness of the relationship: a) How was the approach? (Who started the initiative, the company or the football club?) b) Why is using the strategy of sponsoring teams competing simultaneously? c) This strategy was used to avoid any kind of rejection by the fans / consumers to its products? d) What results are expected by sponsoring the team (s) "x" and "y "? 2) Value Investor Entity X Sports a) What are some business arising from the relationship (events / sports equipment / licensing); b) What is the role of marketing / communications as enablers and / or maintain the relationship? 3) Durability and Future of Value a) What is the role of media in (maintaining) the relationship? b) The team's performance at the championships is vital to the continuation or otherwise of the partnership between the company and the club? c) Expectations about the future of the relationship (team); d) Expectations about the future of the market. (Adapted from Teitelbaum and Luce, 1997)