Football Sponsorship - Adidas Company - Case Study Example

Running Header: Football Sponsorship Student’s Name: Course Code: Instructor’s Name: Date of Submission: Football Sponsorship Introduction Football sponsorship has been growing especially with the increasing problems in the Clubs around the world. In order to attract the local business, companies have decided to sponsor football clubs as it also contributes to the social responsibility of the company. Giuy (2007) describes that football sponsors are beneficial to the football clubs for example by building a network between the football club and the local or wider business area. It also improves the brand or image of the football club therefore attracting more sponsors. According to Alan (2005) football club sponsors add a competitive sponsorship package and enable the team to be more competitive against the other rival teams. Football sponsoring is also important to businesses wishing to expand their supplies to the international market. This sponsoring creates a better business opportunity for example by creating awareness of the goods and services provided by the company. The above study shows how the football clubs use sponsors to progress in their careers. It also shows how these sponsors benefits by sponsoring a famous or local football clubs. Benefits of football sponsors According to Richard (1999) football sponsorship is always there as a way of monetizing funs. Businesses on the other hand are always there in order to look for marketing opportunities. These opportunities for example are by putting billboards all over the roads that are used by most public viewers and they tend to advertise the club to the fans. The business goes direct to the fans rather than using their leverage over the fans. This demonstrates to the business on how to influence and increase fun base. Sponsorship of football property demonstrates leverage over fans and this explains why most football money is used by certain clubs to the exclusion of the rest. The sponsors attract more fans and for them to fall over each other, it is necessary to demonstrate the ability to fill the stadium for a particular season. Clubs that moan due to lack of sponsors should evaluate themselves and find the benefits that they may bring to the sponsors. This is because always want something in return of their investment as it do not offer donation or charity to the football Club (Wim 2005). Clubs should therefore try to attract more fans as this will attract more sponsors and companies will want to be associated with a club that has more funs. Getting fans and mobilising them is done through a shoestring budget. This means that it begins with a basic manpower connected to improved technology that can be affordable by the poorest club in a local area. This therefore needs a club to be enthusiastic in every activity and to plan for the activities of the club. With enthusiasm, a football club however poor is able to get more fans and loyal ones to the club. The few fans will influence more fans who become the club’s evangelists (Alan 2005). A good relationship should then be built between the fans and the club members for example most fans do not always want to be talked to but want to be part of the conversation between them and the club. Alan (2005) explains that they should be seen as part of the club and contributes maximally to making the club successful. Most sponsors are usually tight on money especially with the poor economic status. The same sponsors however, use more money on advertisements than they could have used on sponsoring a football club and attaining a bigger market share. This can be achieved through delivering more fans to the sponsors and showing interest on the game which influences the sponsors want to be part of the team. Bell (2005) shows club members should be capable of demonstrating to the sponsors that the money spent by organisations on advertising to be used in sponsoring. This is by demonstrating a give and take situation rather than begging because by begging the sponsors will feel like they have nothing to get from the invested money. Having a full stadium demonstrate the mileage, the sponsor company will want to form a relationship with the club. Other mistakes made by the football heads are by displaying the sponsor’s marketing message and stopping there. According to Byrne (2002) football sponsorship increases the seasons playing budget for example by adding sponsorship revenue from various companies. This motivates the players and also offers them with better opportunities therefore increasing their effort. The football sponsors also provide the football clubs with various playing tools, facilities and uniforms therefore promoting the companies image and benefiting the club at the same time. In online marketing, commercial marketing fills the advertising space therefore bringing interest to the website to people wanting to know much about the club. The sponsors also provide football clubs with personalised logo with a links to the web page and this promotes online marketing. Improves company image According to Richard (1999) they may also provide an email image that attaches all the emails sent from the football club as this attracts more interest from the outside. For example to the businesses that want to create awareness of their products and services. Some of the reasons for the reduced commercial sponsorship include the economic status of a country for example countries facing a recession period may not be in a position to advertise at any level of football. Some businesses however, advertise on areas that do not generate much benefit to the companies therefore leading to losses. Sponsorship can include various items used by football clubs which include stadium billboards, home shirts and away shirts won by players. Other items include youth team sponsors, pitch side advertising, player sponsoring and match ball sponsoring. Program adverts, website sponsorship and community activities sponsorship are also the benefits attained by football clubs from sponsors. In order to get good sponsors for a club it is important to get the fans first this is because most sponsors always want to sponsor a popular club and one that will be successful till the end of the games. A good relationship with the funs should be build to attract more sponsors. Sponsors should first start sponsoring from the local branches first and then building the relationship up until to the headquarters of the business (Richard 1999). Once one branch sees the value of the relationship then they will be able to spread the value to other branches for example if the sponsors are from a bank then the club should start with a branch because facing the headquarters of the bank may yield less attention if the club is still at its early stages of development. Giuy (2007) shows big clubs with huge fans benefit ore since the sponsors instead come for them and volunteer unlike small clubs that ask for assistance from the companies. The small clubs should be in a position of demonstrating to the branch managers how sponsoring will benefit the company as whole. Sponsorship should not be confused by donation since sponsorship benefits the two parties. This is because the football clubs by receiving various items and opportunities that improve the success of the club while the company benefits by building the company image and positioning brands in the market therefore increasing the market share. The bank managers for example should be shown how the sponsoring opportunity can influence more people to opening bank accounts at a local bank. This encourages the managers and therefore creates a relationship between the sponsor, the fun base and the football club. The sponsors however should not be begged as this will not yield much benefit to the club since the manager might think that the company is on the loosing side. One the head of football clubs demonstrates what the club can do to the branch, the benefits will then be spread to the headquarters and therefore the company becomes the chief sponsor of that particular club. One important thing that the football club should remember is that the sponsor company usually has a marketing budget and their main aim is to look for new customers. This shows that if investing on football does not offer a tangible benefit on the return on investment, then the company may shift its spending to other types of advertising that yields mush benefits to the company. The sponsored clubs should therefore aim at improving the company’s image by being successful in order to appear as important to the public and this will also make the company appearing on the t-shirts of the club to also appear as important to the entire public. This is because people will always want to be associated by a company that sponsors a popular football club for example Man united football club. Improves brand impact Branding is one part of the sponsorship goal. This is because through sponsoring for example a football Club with more fans such as those in the English Premier league it benefits both the club and the Company. Easterby-Smith et al. (2002) describe that a company such as the Cocacola Company that sponsored the 2010 World Cup has now gained much benefit for example through organisation and promotions. The company image really grew by far and this makes it one of the reasons why the Company is always leading in market share worldwide. Improves exposure Football sponsoring by companies improves team exposure and endless contacts. Giuy (2007) explains that this is through improved networking through a free and easier way of promoting business. This means that it opens more doors to connect with thousand potential customers. There is also improved clientele and the general public is aware of the existence of the business. This may also be spread to other counties and attracts potential investors. Provide income to the clubs The football sponsors are the main source of income to the team members. This is where they sign up to the sponsorship opportunities where they help to improve the quality of the players while at the pitch. This motivates the players and enables them to be more productive. The players’ success attracts more supporters creating an opportunity for the new clients and customers. Some of the football clubs that have benefited from the sponsors include the AFC Liverpool club which is community based and founded in 2008. Alan (2005) shows the club is based in Liverpool and only plays home matches at the Valerie Park. It has only reached the sixth step of the football league pyramid and hopes to rise as fast as possible. The club was formed by fans of Liverpool FC who found the cost associated with the team too high for them and has to settle for something less. This club was formed to provide fans of Liverpool FC with grassroots alternative to Premier League and at the same time maintaining the club’s traditions. The atmosphere was also conducive for the members who had enjoyed being Liverpool fans for generations. The fans in the club have been growing over the season in excess of 600 which are almost that of clubs in much higher leagues. The football club has many supporters in the UK and overseas. Operating as a member owned football club, AFC Liverpool does not only offer prospective sponsors the usual benefits but also forms an ongoing partnership for a contractual period. This partnership is meant to design and deliver the value for money for sponsoring businesses. It also maximises the return on investment of their sponsors. The club is determined to assist its partners to develop their brands through various marketing tools available to the club. The strategy is to be introduced even to online services in order to reach a great number of people. The Club shows that by owing their ground and clubhouse in West End, it brings a good opportunity for a company which would be willing to sponsor the growing club. The company may have their logo emblazoned on the teams T-shirts and other equipment and can also advertise through the club’s website. By this the company seems to be more optimistic about the team members being successful (Alan 2005). Sponsor Companies Adidas Company for example is a German sports apparel manufacture that comprise of Sportswear Company. Besides producing sports footwear, the company also produces other sports accessories such as bags, shirts, eye wear and clothing related goods. The company is ranked as the largest sportswear in Europe and the second biggest manufacturer in the world after the rival based in America, Nike. Alan (2005) describes that the company was founded in 1940s and typically features there parallel bars which is the official logo. In 1994, the company combined with the FIFA youth group, SOS Children’s Villages and became the main beneficiary of the group. In 1997, the company then specialized in ski wear with the Salomon Group where the name was changed from Adidas AG to Adidas-Salomon AG. With the popularity the company also acquired the Taylor-made Golf Company which enabled the company become the main competitor of Nike Golf. This brought about controversies with the NCAA which had introduced rules limiting the size and the number of commercial logos on team uniforms and apparel. Adidas has sued NCAA but withdrew the suits after establishing guidelines showing what the three stripe design is the official Adidas trademark. Other companies then copied the three stripes for example the Fitness World Trading used two stripes similar to that of Adidas three stripes which led to the company filing a suit against the company. A long-term partnership was incorporated between the Adidas Company and the Stella McCartney which is a top English fashion designer. This enabled the company to produce more women sportswear which improved the company’s productivity. Adidas has been a major sports sponsor for example in 2006 it was the leading NBA provider. The Company made NBA and WNBA jerseys and other products including the team coloured versions of the superstar basketball shoe. The deal with the game organizers was worth about 400 million dollars which showed an increase in the company’s market share (Bryman and Bell 2003). Adidas Company has also focused in producing football kits and other associated equipment. This is by providing apparels and equipment to major teams such as Major League soccer and this makes it the major supplier of tem kits for international teams. The company also makes referee kits used in football international competition. Andre (2006) shows the brand has therefore been trusted by most countries and therefore most players always purchase kits made by the Adidas Company. In US for example the referees wear the Adidas kits in MLS matches even in situations where the primary referee supplier is Official Sports. The Company has also been the main innovator of footwear in the area with notable examples including the development of Copa Mundial boot that is mostly used by firms in dry pitches. According to Martin (1998) this was also named as the World Cup follow in the celebrations of the 1978 tournament which was won by Argentina as the company was the main sponsor of the team. The company also sponsors other famous teams such as Al-Shorta. The Adidas Company for example became renowned by advancing in the Predator boot design. This had been developed by a player who was formerly from the Liverpool football club and was also an Australian international player, Craig Johnson. The design introduced featured a ribbed rubber structure at the upper side of the shoe. This was adaptable and necessary to be used for football since it accents the movement of the ball when struck. The highly skilled players also praised the design saying that it was able to curve the flight of the ball more easily when wearing the boot. FIFA which is the world governing body of football also used the Company to design footballs to be used in the World Cup tournaments. This move was to favour more attacking play and also to promote the company therefore improving the company image. The balls used in the 2006 World Cup were particularly noteworthy. This is because of their ability to travel further when hit as compared to other types of balls used previously. This therefore led to a longer range of goal strike therefore increasing the number of goals scored by a team. The goalkeepers also claimed comfortable with the shoe design and the whole sports kit. The Adidas has also been providing various types of balls to the football clubs for example the new ball introduced in 2010 World Cup. This is the Jabulani ball that had been designed by the Loughborough University and the Chelsea FC. The ball received much criticism from most players, managers and pundits who claimed that it was too hard to control in the field. Most claimed that lighter and aerodynamic balls are preferred since they make many shots and passes. The Jabulani ball was therefore blamed for the short range goals and that players had to be more accurate while hitting (Andre 2006). The Adidas Company specializes in sponsoring a particular player for example the professional tennis player Andy Murray whose playing kits all have the Adidas logo. It has recently introduced a new line of tennis racquets with feathers made for particular players for example there is one for a regular player. Blaxter et al. (2006) there is also the Response made for a club player. By this strategy the Adidas targets the tournament player who attains 12.2 Barricade tour model. In total Adidas sponsors some of the following professional players through providing clothing apparel and footwear. These include Ana Ivanovic, Maria Kirilenko, Dinara Safina, Fernando Verdasco, Melanie Oudin, Laura Robson etc. The tennis apparel provided by Adidas contains a climacool technology found in most of the jerseys used in athletics. Alan (2005) shows the Company also sponsors player and pays some for example in 2009, Andy Murray was said to be the fourth highest paid tennis star. He now has a five year contract with the company worth about 25 million dollars. The Company has introduced Adidas Player Improvement Program that benefits the players sponsored by the Company. This program provides coaches, fitness trainers and sports psychologists to all the sponsored players. This is necessary for them to develop their careers. Some of the coaches used by the program include Darren Cahill and Sven Groeneveld. In Cincinnati tennis tournament, the Adidas Company has also sponsored the ball boy and ball girl uniforms. According to Michel (2000), the Company has also introduced New Jersey’s to be worn by the NBA players in their 2011 tournaments. The Company also supplies for the kits for the most successful rugby team in New Zealand known as All Blacks and also to Eagles and Los Pumas which are also professional teams. Other games sponsored include cricket and the Australian National Rugby team. It is therefore the longstanding kit provider in various countries such as Argentina, Japan, Spain, and Colombia football teams and other professional game. The top football teams sponsored by Adidas include Real Madrid, AC Milan, Chelsea, Liverpool, Stoke City FC among others (Louella and Simon 2004). Conclusion The football sponsors are a great player in developing football teams since they promote the players through giving kits and other equipment necessary for practice. The sponsors also benefit in various ways for example by improving the company image and therefore building customer loyalty. Companies such as Adidas that sponsors professional players and popular football Clubs have benefited much for example by making deals with the world football organizers FIFA to design balls that are to be used in the World Cup football tournament. Adidas is therefore known to be the major domestic and international sports and events sponsor. For the last number of years, the Company has dramatically increased its marketing and sponsorship budget. It is the major supplier to the National Basketball Association (NBA) and also a sponsor to the games and other football games. 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