Sponsorship of Melbourne City Football Club - Case Study Example

Sponsorship Proposal Melbourne City Football Club Proposal Name Institution Table of Contents Section 1: Executive Summary 4 Section 2: Cover Letter 5 Section 3: Sport Property 7 History 7 Goals and Objectives 8 Ability to Produce the Event. 9 Organization’s Capabilities and Experience in Producing the Event 9 Section4: Target Markets 10 Event’s Target Market 10 Target Market Segments 10 Section 5: Promotional Plan 11 Timeline 11 Creation of an effective Team 11 Identifying the key promotional objectives 11 Selection of promotions 11 Section 6: Benefits of the Sponsorship to MCFC and Sponsor 12 Section 7: Creative Leverage 13 Section 8: Budget, Investment & Evaluation 14 Payment Schedule 14 Budget for Packages 15 Benefits of the Sport organization to the Virgin Airlines 16 Section 9: Marketing Plan for the Property 16 2 16 Marketing Objectives 16 Marketing Goals 17 Marketing Mission Statement 17 Marketing Vision 17 MCFC Brand’s Bulls eye 18 SWOT Analysis for MCFC 18 PEST Analysis for MCFC 18 Political factors 19 Economic factors 19 Technology 19 Social 19 Competitors 19 Target Market 20 Section 10: Inventory of Assets 20 Communication 20 Promotions 21 Suppliers 21 The Welcome Campaign 21 References 21 Section 1: Executive Summary Located in Melbourne, Australia, Melbourne City Football (soccer) Club or MCFC is an Australian football club. MCFC takes part in the yearly Australian A-League competition. Like any other club, sponsorship is of great significant to the running of the day-to-day running of the Melbourne City Football (soccer) Club (MCFC) (Pitts & Stotlar, 2007). The football club also play their home games at the AAMI Park Stadium, while the club’s training venue is in the Melbourne suburb of Bundoora, which is adjacent to La Trobe University. The involvement of Virgin Australia Sponsorship will help in making the football game possible for more than 300 children in Melbourne. This proposal regards the participation of the Virgin Australia as an integral part in helping in the development of well-rounded young individuals through a football environment that teaches integrity, humility, respect as well as reward through fair play and effort at all times (Pitts & Stotlar, 2007). MCFC aims to deliver community and commercial benefits that align with the direction of Virgin Australia’s airline progress to evaluation. Besides, MCFC will recognize Virgin Australia Sponsorship, as sponsors in the best way possible, not just during the Australian A-League competition but throughout the year. Key issues that will be addressed in this sponsorship proposal will include sport property; target markets; promotional plan; benefits that the sponsor will get from naming rights, signage, entertainment, and tickets; creative leverage; budget; investment and evaluation; marketing plan for the property; and inventory of assets. Section 2: Cover Letter 24th January 2016 Mr. John Borghetti Chief Executive Officer and Managing Director 56 Edmondstone Road. Bowen Hills Old 4006 Dear Borghetti I would like to appreciate your last invitation to discuss your sponsorship marketing objectives. I was in a position to analyze the issues we deliberated on, and I feel certain that the sponsorship proposal that I have come up with will be viable, economically and socially, to your organization’s short and long-term needs. Current Situation As one of the leading airlines in Australia, Virgin Airlines has undoubtedly been performing greatly overseas. However, the same cannot be said of the domestic market. Therefore, while this sponsorship offers an opportunity for your organization to create greater visibility within Melbourne, it is equally a chance to provide hospitality opportunities and develop good corporate citizenship that could, ultimately, improve the organization’s image while making a positive social contribution. Additionally, based on our previous meeting and your intimation that the company would prefer to engage in an activity that will positively impact on the employees, I am confident that your participation in this sponsorship will improve employee morale. Objectives In reference to our previous meetings, I evaluated the sponsorship marketing objectives for your organization and understood that your company would like to: Increase brand visibility for your organization. Create an opportunity for employee reward and motivation through being involved in preparation for the Australian A-League competition. Engage in an activity that will enable the organization become an active participant in a community activity The Project. The project will essentially involve creating a wider awareness regarding the Australia A-League competition. This will involve making the event more visible and increasing the fan base so the event can attract a higher number of spectators during the match. The focus will be on making the prerequisite preparations for the AAMI Park Stadium as well as getting the MCFC ready with all the logistical requirements prior to the event. Marketing and Promotional Benefits The benefits to be reaped from participation in this project will be transcend monetary terms as it will create a stronger brand presence of Virgin Airlines among the residents of Melbourne. Moreover, if the event gets the airtime in the local television channels and social media, it will positively impact on Virgin Airline while also promoting the Melbourne City Football (soccer) Club. Investment Undoubtedly, your investment in the project will garner high returns as the high publication of the event will cultivate a new client base. Notably, the strategic location of the AAMI Park stadium, close to La Trobe University, means that even the international students within the institution will get to have an opportunity to interact with the company’s brand. This is a positive addition to the Virgin Airlines. Next Step To elaborate on the details of the event, I have attached a more detailed proposal for the event with clear documentation of the promotional and public relations strategies. Once again I would like to appreciate you for giving me an opportunity to submit this proposal. My sincere expectation is that this partnership will help in making the football game possible for more than 300 children in Melbourne to have access to the international football leagues and help your organization in achieving its goals and objectives. Sincerely, Section 3: Sport Property History The event under consideration entails Melbourne City Football Club’s hosting and subsequent participation in the A-League competition. Commonly referred to as MCFC, the Melbourne City Football Club is a Melbourne-based Australian professional soccer club. The club has traditionally hosted community sporting events, but has been seeking to get a sponsorship opportunity in order to develop its infrastructure, increase spectators, and grow its revenue streams. The club has never successfully engaged in a sponsorship deal, but following the recent engagements with Virgin Airlines, there club will get an opportunity to develop a mutually beneficial deal. Licensed under the Football Federation of Australia (FFA), MCFC competes in Australia’s A-League (Cornwell & Kwak, 2015). Founded in 2009, MCFC is run from the City Football Academy, which is based in La Trobe University in Melbourne. Besides, MCFC plays its local matches at the Melbourne Rectangular Stadium and has an affiliated youth teach that competes in the National Youth League. Goals and Objectives One of the key goals of the MCFC is to provide a platform where young talented footballers can showcase and nurture their talents. The club has been proactive in seeking out young men and women, particularly those in colleges and universities, and giving them a platform to play football professionally. Our key objective is to rise above the Melbourne and get to see that our stars get representation in even wider platforms. Hosting the A-League competition is, undoubtedly, one such platform that has elevated the presence of our club and players. Our vision is to provide a clear football foundation today that will go on tomorrow. Providing a clear transparent pathway for all players, with the ability to go from playing local club football to NSW Premier League onto A-League and even overseas (Mullin, Hardy& Sutton, 2014). This can only be achieved by providing the best facilities, coaches and training possible by the club itself. MCFC also aims to incorporate individuals from indigenous by actively taking part in pro-indigenous football programs such as the Indigenous all-stars, the Rio Tinto footy means business program, Kickstart championships, Flying boomerangs, Ambassadors for life, The Club partnership program, Indigenous academies and talent pathways (Mullin, Hardy& Sutton, 2014). Ability to Produce the Event. Besides having a training venue at the Melbourne suburb of Bundoora, MCFC has a spacious playing field at the AAMI Park Stadium. The club also has a high social media presence whereby fans discuss game schedules and are actively involved in the friendly matches. It is also notable that the stadium’s capacity of over 2000 people would provide a great boost to participation. Additionally, the presence of the neighboring La Trobe University means that the projected turn out will be high, thus, there is no doubt about the club’s ability to produce the event. Organization’s Capabilities and Experience in Producing the Event As far as the sport organization’s capabilities and experience in producing the event, it is important to note that apart from providing an opportunity for the young individuals to advance in their football career, Melbourne City’s women league is sparking interest in women soccer (Irwin, Sutton and McCarthy, 2008). MCFC women’s team is setting a significant pace towards a perfect position in the women’s league, and thus setting standards that could have significant implications across the globe. Besides, there is a great potential in partnering with MCFC since it is characterized by significant growth opportunities. Section4: Target Markets Event’s Target Market As argued by Graham, Delpy Neirotti and Goldblatt, (2001), football game is accessible to people of all ages, irrespective of race, gender, education, religion and class. To begin with, the immediate target market for the MCFC event include the students and the entire La Trobe University fraternity. The students, a large majority of whom are international students, will be thrilled to attend an Australian event in their backyard at the university. Additionally, the high publication of the event is also targeted to attract community leaders and football enthusiasts. Further, by strategically advertising the event through digital and print media, the event is also targeted to attract bigger football clubs and may lead to future tournaments with such groups. Target Market Segments A critical analysis of the psychographic factors surrounding the target market reveals that it will be easier to attract the La Trobe University students due to the shared opinions among peer groups. The students enjoy going out and generally taking part in outdoor activities. Moreover, Melbourne residents, particularly the youthful residents, value time with friends and this event will provide this essential time. Demographically, the event targets both male and females, particularly those aged between 20 to 35. Agreeably, football clubs in Australia are limited to their catchment area (Shank & Lyberger, 2014). While some fans may find it easy to travel far to watch football matches, the location of the club’s stadium in Melbourne clearly means the targeted spectators will be from within Melbourne and a lesser proportion, perhaps 20 percent, from outside the city. Based on website analytics and interviews through the social media and club members, it is quite evident that the clubs primary target market will be influenced by ease of access. Section 5: Promotional Plan Timeline To attain its key objectives, there is the need for MCFC to create an ultimate guide to the planning of promotions during a football session. To begin with, there will be need to create a football promotion calendar that will ensure the club brings in revenue throughout the season (Shilbury, Westerbeek, Quick & Funk, 2009). The creation of additional promotions around the football will have a significant impact on the terms of its overall company’s reach, revenue as well as email database. Creation of an effective Team The initial step in the creation of a football promotion strategy is building a team that comprises of relevant individuals within the club responsible to the management of football promotion (Irwin, Sutton and McCarthy, 2008). These individuals will include sales and marketing professionals. Identifying the key promotional objectives After an effective team has put in place, it will be important to brainstorm the key promotional ideas that are in line with the sponsor’s requirements. Selection of promotions The selection of promotions will include providing a description of the promotional activities as well as the timeline that MCFC will use when promoting the ongoing and upcoming major events (Biscaia, Correia, Ross & Rosado, 2014). Examples of promotional activities will include making a newspaper in a town college, small-market local TV Station, and official radio station of a pro football team. Section 6: Benefits of the Sponsorship to MCFC and Sponsor Sponsoring MCFC will present two benefits to Virgin Australian: commercial and community benefit. As far as the commercial benefits are concerned, the sponsor will receive a Level 1 customized package. In its level 1 customized package, Virgin Australia will benefit from naming rights, ticketing, and signage. The level 1 customized package will help Virgin Australia achieve its key commercial objective. As argued by Irwin, Sutton and McCarthy, (2008), big companies such as airlines consider football as the most ideal ways for sponsorship primarily because of its transnational state. With respect to this view, there is the need to note that as the Australian economy continues to struggle with the recessionary pressures that make securing investment and sponsorship a domestic challenge, there is an increased appetite for Australian clubs alike to come up with new ways of partnership (Irwin, Sutton and McCarthy, 2008). Such partnerships are illuminated by Australian football clubs that are increasing entering into significant business deals with recognized airline companies, who will continue to sponsor these clubs for at least two deals (Bridgewater, 2014). In essence, airline companies are increasingly realizing the need and importance of making sponsorship deals with Australian football clubs, which are constantly showing significant community and commercial benefits. Section 7: Creative Leverage Understandably, Virgin Airline’s key objectives are, among other things, to develop a platform through which they can create more extensive awareness regarding their services and their brand in general. The sponsorship is also meant to augment the Airlines visibility and boost employee motivation. With some of these key objectives in mind, our event will be tailored to achieve the organizations goals while remaining focused on making the event a success. Therefore, as MCFC, we will endeavor to deliberately use signs promoting and identifying Virgin Airline during the A-League competition. We will also guarantee a category exclusivity where only Virgin Airline will be the only airline company involved with MCFC. Virgin Airline will also have the exclusive rights to use the event as a distribution outlet where they can distribute brochures of their flights and range of services they offer. Essentially, the company will be allowed free advertising and free admission of the company’s staff to the event. Moreover, our social media outlets and website will also incorporate redirection links that will lead to the Virgin Airlines’ site and the company will, consequently, get better visibility. Inarguably, the MCFC sponsorship by Virgin Austral, while extensively benefiting MCFC through better funding, will also bring many benefits to the Airline Company. With the help of its untapped market of prospective and potential football fans across the globe, this sponsorship will bring significant commercial avenues that airline companies should explore so as to promote their products. Considering the fact that one of the primary objectives of MCFC is to “teach and develop young players in understanding the benefits of gaining healthy lifestyle, code of conduct and education, drug awareness and diet,” accepting to sponsor the football club will mean that the proposal objective has met Virgin Australia’s corporate social responsivity. Certainly, maintaining this delicate balance will be essential to achieving a win-win situation for both MCFC and Virgin Airlines. Moreover, to prevent ambush marketing, MCFC will give exclusive advertising rights to Virgin Airlines, allow only the airline to showcase their products and services, and legally protect the Airlines right to use the MCFC logo and trademark in the event. Essentially, limiting the use of the MCFC properties and trademarks will leverage the airline from ambush marketing by competitors. Section 8: Budget, Investment & Evaluation Payment Schedule The sponsorship funds received will be used make the necessary logistical arrangements in preparation for the event. Thus, besides setting up of the pitches, cleaning of the stadium, procurement of prizes for the winners, setting up of the stadium signs among other things, the funds will be directed towards promoting the event. In exchange for the benefits listed in section 6 and throughout this proposal, Virgin Airlines’ contribution will total up to $10,000. The payment may be effectively split into a maximum of four individual payments per schedule as explicated below. Amount Due Date Due $2500 Immediately upon signature and commencement of the sponsorship agreement $2500 April 6, 2016 $2500 July 7, 2016 $2500 October 4, 2016 Budget Notably, as the Australian A-League competition approaches, it will be necessary for MCFC to provide packages to its fans. These packages will help fans celebrate the Australian A-League competitions in a better way. The various packages that will be available will include match-day sponsor, match-ball sponsor, the Harvey-madden package and the mascot package. Budget for Packages Package and description Items Cost Match-Day Sponsor- this package will be used to enhance the match day experience for fans. 1. 6 Tickets in main seated stand 2. Car park passes 3. Course lunch 4. Signed shirt + ball 5. Tea, coffee + half time biscuits for all guests USD40000 +VAT Match-Ball Sponsor: This package will be used to enhance the match day experience for sponsors. 1. 2 Tickets in main seated stand 2. Tea, coffee + half time biscuits for guests 3. 1 Car park pass 4. Signed ball 5. 2 Course lunch USD25000+VAT The Harvey-Madden Package: This package will be used to enhance the match day experience for special occasions. 1. 2 Tickets in main seated stand 2. Tea, coffee + half time biscuits for guests 3. 1 Car park pass 4. Signed ball 5. 1 Course lunch USD35000+VAT The Mascot Package: This package will be used to enhance the match day experience for young Quakers fans. 1. 4 Tickets in main seated stand 2. Car park passes 3. Course lunch 4. Signed shirt + ball 5. Tea, coffee + half time biscuits for all guests USD15000+VAT Benefits of the Sport organization to the Virgin Airlines The immediate benefits of engaging in this sponsorship is that Virgin Australia will be in a position to take full advantage of naming rights, ticketing, and signage. Additionally, the sponsors will be at liberty to categorically state the kind of publicity that they will be interested in, and this will include complimentary advertising. The company will also be offered distribution and hospitality rights during the event. Moreover, the community benefits associated with participating in a sponsorship role will position the company’s move as philanthropic, and this will positively impact on consumer attitudes and will be a likely tipping point in the company’s sales. By acting in manner that shows giving back to the community through sponsoring the event, Virgin Airline is poised to attain positive public relations which will work for the long-term benefit of the company Section 9: Marketing Plan for the Property 2 Marketing Objectives 1. Increase traffic through website 2. Increasing attendances through calculated plans, taking supervision from other supporter run clubs 3. Increasing sponsorship level through focusing on local business that will benefit from their sponsorship of the club 4. Increasing match venues as an alternative venue in the community, which the untapped revenue that has been streaming for too long and can be utilized outside normal events. Marketing Goals 1. Devote at least 40 hours per month to the club’s marketing theme. 2. Ball events in financial year 2017 3. Increase attendance rate of the club’s sports activities to 75 percent of the Australian funs in financial year 2017 4. Sign up 60 percent of the Australian football fans to Facebook and twitter applications by the end of financial year 2017 5. Attain a market share of 60 percent of Melbourne sports industry 6. Attain a customer satisfaction level of 95 percent in financial year 2017 Marketing Mission Statement Building the best product, causing no unnecessary harm, using the club to inspire and implement solutions to the increased demand of quality soccer. Marketing Vision Our aim is to make MCFC a financially sustainable as well as community-focused football club that plays at the highest level in all the Australian Leagues. MCFC Brand’s Bulls eye SWOT Analysis for MCFC Strengths Weaknesses Momentum FFP Financial Strength New manager Squad Depth Overcrowded team Increasing fan following Poor defensive discipline Opportunity Threats New managers Competition New Players Lack of funds New team PEST Analysis for MCFC MCFC decisions are affected by micro-environmental factors such as demographic changes, new laws, changes in government policies as well as changes in taxes (Pitts & Stotlar, 2007). These factors are classified into political, economic, social, and technological factors. Political factors The political factors comprise of regulations and laws that affect the club. Presently, MCFC is going through problems of paying debts that come as a results of funds misappropriated by greedy owners. Economic factors MCFC has boosted Australian economy through creating employment opportunities created to the club’s officials and players. The positive effect of MCFC is felt across the globe as the club continues to employ the best players. Technology Over the years, technology has continued to positively contribute towards football games because player now have increased ability to play at night due to availability of electricity. Besides, improved technology has made it easy for funs to access relevant information about their teams online. Social Like any other football club, MCFC has continued to unite funs across Australia and the rest of the world. Individuals from different parts of the society come together to celebrate the constant victories of the team. People from different age groups normally watch football because it is either their favorite game or because they want to watch just for leisure. Competitors Australia football is characterized by stiff competition. Run by Football Federation Australia (FFA) runs A-League, which MCFC participates in, is the most popular football league. MCFC faces stiff competition from other Australia football clubs. MCFC key competitors include Adelaide United, Brisbane Roar, Canberra United FC, Melbourne Victory, Newcastle Jets, Perth Glory, Sydney FC, as well as Western Sydney Wanderers, which takes part in the A-League. Despite the fierce competition, MCFC has consistently turned into a five-star performer with comprehensive wins against most of its competitors. Target Market Like any other industry, sports industry is for certain segment within the population. The primary target market for MCFC are the funs as well as the local businesses for the sponsorship of advertising shirts, boards, player’s kits, balls as well as matches. Besides, MCFC would focus on increasing the attendance and interests by focusing on working with the community football as well as the community at large. Section 10: Inventory of Assets The key inventory of assets should be designed to meet the potential sponsors’ needs (Irwin, Sutton and McCarthy, 2008). In this regard, the sponsorship’s asset inventory available to the Virgin Airline manager will involve ownership of various tools and services within the sponsorship campaign. In a more organized fashion, the assets can be grouped into packages such as: Communication This will, essentially, involve control over the billboards, websites and microsites e.g Facebook, advertising documents and flyers, banners, guest passes – personal and VIP, official logos and titles, and parking passes. These are the key communication and the Virgins’ team will include them in the asset inventory. Promotions Promotions will include coupons, prize drawings, access to areas at the event, and cross promotions. These will equally be an integral part of the sponsorship program. Suppliers These will entail official apparel, food, beverages, financial services, and any other construction material that will be engaged in the event. The Welcome Campaign This will incorporate the VIP seats and lounges, the sports event as well as the tickets for the event. References Biscaia, R., Correia, A., Ross, S., & Rosado, A. (2014). Sponsorship effectiveness in professional sport: an examination of recall and recognition among football fans. International Journal of Sports Marketing and Sponsorship, 16(1), 2-18. Bridgewater, S. (2014). 8. Sponsorship and football. Handbook on the Economics of Professional Football, 117. Cornwell, T. B., & Kwak, D. H. (2015). Sponsorship-linked marketing: Introduction to topics. Journal of Sport Management, 29(2), 133-136. Fullerton, S. (2010). Sports marketing. McGraw-Hill/Irwin. Graham, S., Delpy Neirotti, L., & Goldblatt, J. J. (2001). The ultimate guide to sports marketing. McGraw-Hill. Irwin, R. L., Sutton, W. A., & McCarthy, L. M. 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