sponsorship (uopm) - revolutionisesportthe sourcing and turn over of sponsors is time consuming and...

Sponsorship (UOPM)Using Other People’s MoneyDAVID HARRIES

WELCOMING I PEOPLE I SAILING I INSPIRATION

OUTLINE

• WHY DO I NEED YOU?

• WHAT DO YOU MEAN TO ME?

• WHAT WE (SoPYC) DO

• WHAT’S IN IT FOR ME?

• THRILLS & SPILLS

• ELEMENTAL

• WILL YOU RESPECT ME? …… I’M AN INDIVIDUAL TOO!

• WHY DID YOU LEAVE ME? …… (TELL ME NO LIES!)

• HOLY COW

• WHO’S THE GUY?

• WHATEVER …

• TIPPING THE SCALE

SPONSORSHIP


WHAT DO YOU MEAN TO ME?

• BRAND AWARENESS

• SALES OPPORTUNITIES/GENERATION

• ACCESS TO NEW NETWORKS

• PUBLIC RELATIONS BENEFITS

• PROMOTION OF CORPORATE BENEFITS

• CLIENT ENTERTAINMENT

• TARGET MARKETING

• NEW CLIENTS, NEW CUSTOMERS, NEW BUSINESS

• SUCCESS ATTACHMENTS

• SPORTS CELEBRITY TIE-IN’S

• SOCIAL IDENTIFICATION

Companies sponsor for many reasons. Generally, they are seeking….


WHAT WE DO Grand Sponsors Scheme (18 years) $1,000 ($1500)

• Club Members + 2 nominees• Funds to Junior Development for sailor up to 23 y.o.• Benefits

• Discount on food & beverages• Promotional week• Honor Board• Display PoS materials• Flag at front of the Clubhouse• Function Room benefits• X Promotion: - print publications, Facebook, enews & TV’s• First dibs on function bookings

Corporate Sponsorship (Restrained by Assn Act, Constitution)• All Nominees to be Members• Benefits as above

• Own PoS material• Promotional material distribution by Club• Web site, Facebook & print publications



• Major Sponsors• X linked to Club Activities – Boating &

Social• Benefits as above

• Event Sponsors• Benefits as above

• Section/Class Sponsors• As per specific agreement $250 –$000’s

• Social Activities• Chase the Ace Jackpots – 6 Sponsors• Flavorsome Thursdays

WHAT WE DO

THRILLS & SPILLSThrills

• Securing the deal• Rate sponsorships successful• Particular successes are the major sponsors (3 terms of 4-year agreements)

Spills• Expectations of Grand Sponsors• Information about expenditure• Perception of sponsorship going into general revenue• As economic cycle shrinks so does Grand Sponsor participation • Events sponsorship –demonstrating value• Communication breakdown• Sponsor or associate feels slighted and withdraws at short notice• Sponsor feels Club did not fulfill promises

Test of Success – Do they talk about it after the event?


• Do your research to match the sponsor’s corporate philosophy to youractivities/ philosophy; cultivate fit – 2 way street

• Match the offer to your needs• Long term 3+ years• Mid Term 2-3 years• Short Term once off

• Find the right person to speak to; sit & talk to them, hear their story &learn about their aspirations, culture and objectives; introduce them tothe Club, the Officers & relevant committee members; build a your storybefore saying “show me the money…”

• Do the sponsors have exclusions to their support i.e. Health Ways - noliquor or soft drink sponsors

• What notice required to get them aboard?• Budgets, evaluation/assessment time• Production time,• Event launch

• Conflicts with other events or sponsors which will stop the deal• Present a formal branded (theirs and yours) proposal• Also…don’t cut & paste a standard sponsorship offer – leaves room for error

& embarrassment

ELEMENTAL


ELEMENTAL CONT….

We live in a rapidly changing environment and marketing needs to reflect what targetmarkets want. For all that, sponsorship has fundamental elements.Some years ago these were expressed in terms of 1G, 2G, 3G and Last G

• 1G – is the measurement of the frequency of names and logo “hits”• 2G – is target markets and brand awareness• 3G – event activity and “experiencial” sponsorship• Last G - the sophistication of the evolution of the “G’s”

Sponsorship Types• Naming Rights• Levels – Major, Partner, Supporting• Official product (value in kind)• Preferred Supplier• Exclusivity• Licenses• Contractual (NB: clearly spell out obligation on each side)• Signage• Hospitality• Information Technology• Loyalty – access to early tickets, VIP areas, meet the stars• Database Markets• “Causes” - tie-in their charitable preferences• Other promotional Opportunities


WHAT’S IN IT FOR ME?• The First Question Asked “What’s in it for me?”

• If you’ve done the fundamentals you‘ll have a good idea how to respond to this• Ideally the sponsor will understand what your brand is so will make the “matching”

discussion easier. i.e. BUPA

• Size shouldn’t matter; it’s what you do with it –No sponsorship is too small or too big. Make the best of them all.Critically, know what it is about. Is it a desperation sponsorship?Or a planned long term alliance?The hard bit is finding the key to unlock the sponsorsEnthusiasm/reason for associating with your Club/ Event. Provide a reason for them coming onboard.Will you give them:• Revenue opportunities• Status• Competitive advantage• Social inclusion• Brand association• New markets

Talk about what they get when “putting it to them”. They’ll ask for more if you have them hooked… that’s the time to tell them about you.


WILL YOU RESPECT ME?…… I’M AN INDIVIDUAL TOO!

• You have a brand too and it’s just as important as the sponsors’ brand.Protect it, enhance it, promote it.

• We sell lifestyle, aspiration, fun, excitement, physical health & status

• Access to complimentary, sympathetic markets in sought after locations

• Our views are worth 10’s of millions

• Don’t be afraid to “lose it”! What the sponsor wants may not suit you (i.e. directmailing members). As much as the money is attractive, walking away at the start is oftenbetter than dealing with the problems that arise from an unsuitable sponsorship.


WHY DID YOU LEAVE ME?……TELL ME NO LIES!

Breakdowns in sponsor relationships• Didn’t fulfill promises• Can’t deliver what you promised• Not meeting expectations

• Sales revenue• Memberships, product support

• Personality• Economic Conditions/Budget Cuts• Change in Structure• Change in marketing personnel/directions/takeovers• Control what you can your end


WHAT A COWChurningThe sourcing and turn over of sponsors is time consuming and expensive.

• Work on the relationship often• Keep in contact• Bring them into the fold• Always have them as guests at special occasions such as opening days,

special events, on water activities, special outings. i.e. sponsor & clientswith hospitality services.

• Surprise them with bonus extrasMilkingResist the temptation to keep asking for more, they’ll get fed up and looseinterest

• Their decision to sponsor the Club may have been marginal and repeatedrequests for more may work against you at renewal

• Don’t let them milk you either – extra guests, unsuitable display materialswhich may be outside your comfort zone, demanding exclusive displays,taking down other sponsor’s materials.

• However, there is a positive side to milking – build in to Agreements theuse of your facility for seminars and functions, thereby getting that extradollar or benefit and adding value back to you.


WHO’S THE GUY?

You must manage the sponsor…• Use someone with continuity, so would

suggest GM, marketing officer – dependent upon the structureof the Club and the time available to managethe SponsorsYou know your Club, culture, structure, passions and can guide andsteer the stakeholders – sponsors and club

• Cost of servicing the sponsorship adds up to thousands $$$• What’s your model of allocating sponsorship revenue, costs, any

residual, etc.• It’s all about relationships• Don’t forget the sponsor has changes in personnel who may not

understand the relationship or your brand. Take time to re-establishand nurture the relationship

• Relationship may be short lived when staff changes happen


WHATEVER…

• Build and nurture long term relationships, alliances and partnerships• Have fewer big sponsors than lots of little ones• Keep your promises• Keep in contact• Care about the sponsor• Make them feel important and part of the

Club – event participation• Be loyal to your brand• Support their brand• Fit the sponsor culturally to yourself• Be generous• Be honest• And remember, none of the foregoing matters if it doesn’t fit the sponsor

or you


TIPPING THE SCALE• It’s not about what you need (‘tho that’s important)- its about their

objectives• They don’t need to share your passion or belief - it’s about the

commercial reality for them although some exceptions exist whenmembers sponsor. Then it’s loyalty, passion for the sport/club, goodwill…

• Find a sponsor that fits your brand• Understand them and make sure the Club understands what the role of

each of you is.• Seeing sponsors as “free money” or a “necessary evil” may set you down

the road to conflict and loss of internal and external support• Plan well in advance. You both have a lead time; theirs is often longer

than yours• Follow up and keep in contact• Don’t leave them thinking they are just a cash cow; they won’t hang

around to be treated disrespectfully or in a offhand manner• They’re important – treat them so.


SOUTH of PERTH YACHT CLUB


sponsorship (uopm) - revolutionisesportthe sourcing and turn over of sponsors is time consuming and...

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