Sponsorship Marketing

“Rights Management”

The Basis of Rights

Management

Process of Defining the package

• Need to know what is your sponsorship

target?

– Balance Sheet - Analysis of cost vs. revenue

stream

– What Sponsorship assets you have to market

with?

• Define strategy for sponsorship acquisition

What is my cost base?• Costs of Participating artists/performers + agents fee

• Transport

– International

– Local

• Venue cost

– Renting existing venues

– Constructing purpose built venues

– Tax

• Advertising and promotion cost

– Media

– Printed material

– Agency fees

• VIP cost

– Food & Beverage

• Incidental Costs

– Security

– Toilets

– Trophies

Cost AnalysisItem Qty Cost

Performing Artist Fees 1 250,000

Agent Fees 1 25,000

Accomodation 20 peolple 35,000

Transport

- Air Fares 20 people 200,000

- Car Hire 6,000

Venue Costs

- Staging + stand cons. 4 Stands pls stage 450,000

- Lighting/Audio-visual 60,000

Advertising & Promotion

- Media TV/Radio/Print 250,000

- Printing Ticket/flyers/posters 10,000

VIP Costs

- F & B 1000 50,000

Incidentals

- Security 40 4,000

- Toilets 10 13,000

Total Cost 1,353,000

Are there any Value in Kind

Requirements?

• Hotel Accommodation

• Air transport

• Local Transport

• Facilities

• Advertising and promotion

Revised Cost AnalysisItem Qty Cost Cost

Performing Artist Fees 1 250,000

Agent Fees 1 25,000

Accomodation 20 people 0 Official Hotel

Transport

- Air Fares 20 people 0 Official Carrier

- Car Hire 0 Official Car rental

Venue Costs

- Staging + stand cons. 4 Stands pls stage 450,000

- Lighting/Audio-visual 60,000

Advertising & Promotion

- Media TV/Radio/Print 0 Media Partners

- Printing Ticket/flyers/posters 0 Official Printer

VIP Costs

- F & B 1000 0 Official VIP Sponsor

Incidentals

- Security 40 4,000

- Toilets 10 13,000

Total Cost 802,000

Revenue Streams

• Ticket Sales

– Entry/Standing

– Seating

– VIP

• Considerations

– Ticket sale channels need an incentive (Another logo on the poster)

– 500 tickets allocated to sponsors/VIK providers

• Food & Beverage Sales

– (License permitting)

• Merchandising Revenues

– Royalties from sale (Taxable)

Revenue Streams (Best Case)

Item Qty Price (USD) Takings (USD)

Normal Ticket 4,000 50 200,000

Seating Fees 2,000 80 160,000

VIP Costs 1,000 155 155,000

Total Cost 515,000

More Considerations….

• Best guess Projections

– Adjust target upwards

• You are in it to make a profit

– Adjust target upwards

Sponsorship Target

Cost Shortfall (Cost-Revenue) 287,500

Provison for potential shartfall (20%) 57,500

Profit 69,000

Total Target 414,000

What Assets do I have?

Assets

• Rights

– Branding Rights

– Naming Rights

– Imagery Rights

– Marketing Rights

– On-Line Rights

– Merchandising Rights

– Products and Services

Rights

– Hospitality Rights

Rights Explained• Branding Rights

– Logo placement on ATL media ads

– Logo Placement on printed material

– Venue Branding

– Other branding

• Naming rights

– Dependent on level of sponsorship

– Generally VIK providers are know as “Official Suppliers”

– Sponsors can either be given a specific category title E.g.

“Official telecoms Provider”, or

– Sponsor category, E.g “Diamond Sponsor”, etc

Rights• Imagery

– Right to use official imagery of the performer (s)

– Right to use past event footage

• Products & Services Rights

– Product display

– Product showcasing

– On-going commercial rights

– Sales

• Marketing Rights

– Ability to use event assets (Logos, etc.) in leveraging

communications

Rights

• Merchandising Rights

– Right to be present on merchandising, or

– Produce and sell merchandising – usually fee and

royalty based

• Hospitality Rights

– Ticket allocations

– Lifetime Experience allocations

– VIP

Choosing the Appropriate

Sponsorship Acquisition Strategy?

3 Main Acquisition Strategies

• Tiered Sponsorship

– Share of rights are give more prominence to those

who invest more

• Partnership Strategy

– Multiple partners - equal share of rights to each

partner

• Combination

– Title sponsor with partners

Silver

Sponsor

Gold Sponsor Gold Sponsor Gold Sponsor

Silver

Sponsor

Silver

Sponsor

Silver

Sponsor

Silver

Sponsor

Silver

Sponsor

Platinum Sponsor Platinum Sponsor

Gold Sponsor

Title Sponsor

Tiered Structure

Share of Rights

Partnership Structure

6 Official Partners

Official Suppliers

Share of Rights

BRAND

Combined Structure

6 Official/Hosting Partners

Official Suppliers

Share of Rights

Title Sponsor

How Do You Choose?

• Size of sponsorship requirement

• Profile of event

• Timing of event

• Market environment

Rights Articulation

Investment in, return out

Sharing your bag of Standard Assets

• Finite number of asset

• The strategy you choose will determine

how you divide your rights

• E.g. for our requirement of USD 415k,

there are 2 ways to slice it

Silver

Sponsor

Gold Sponsor

USD 30

Silver

Sponsor

Silver

Sponsor

Silver

Sponsor

Silver

Sponsor

Platinum Sponsor – USD 50,000 Platinum Sponsor – USD 50,000

Title Sponsor – USD 200,000

Tiered Structure

Share of Rights

Gold Sponsor

USD 30

Gold Sponsor

USD 30

Gold Sponsor

USD 30

10%

20%

40%

30%

Title Sponsor Branding Benefits• Naming Rights

– Right to use E.g. “Brand X Dubai Calibre 2005 World Cup Final” in any activation or leveraging activity conducted by the title sponsor

• Branding Proportion: 40% prominence

– ATL (Above The Line) Campaign

– Online

• Official Website

– Logo

– link,

– Short Company Profile & Acknowledgement (5 lines)

• Ad Campaign

– Logo on back drops and other signage in

• Press conferences,

• Opening and Closing Ceremony Signage/back drop

– Printed Material

– Advertising Event programme

– Venue Branding

• Product Rights Opportunities:

– Possibility of Product Sampling/ Handing of sales brochures

– On-Site Sales

• Experience and Hospitality Opportunities

Exclusive opportunity to meet HH. Sheikh Mohammed Bin Rashid Al

Maktoum and hand shakes

1 Corporate Event – PR days

VIP Parking

Plat. Sponsor Branding Benefits• Naming Rights

– Right to use E.g. “Platinum Sponsor - Dubai Calibre 2005 World Cup Final” in any activation or leveraging activity conducted

• Branding Proportion: 30% prominence

– ATL (Above The Line) Campaign

– Online

• Official Website

– Logo

– link,

– Short Company Profile & Acknowledgement (5 lines)

• Ad Campaign

– Logo on back drops and other signage in

• Press conferences,

• Opening and Closing Ceremony Signage/back drop

– Printed Material

– Advertising Event programme

– Venue Branding

• Product Rights Opportunities:

– Possibility of Product Sampling/ Handing of sales brochures

– On-Site Sales

• Experience and Hospitality Opportunities

1 Corporate Event – PR days

VIP

Partnership Structure

6 Official Partners – USD 105,000 each

Official Suppliers

Share of Rights

BRAND

10%

90%

Combined Structure

4 Official/Hosting Partners – USD 30,000 each

Official Suppliers

Share of Rights

Title Sponsor – USD 200,000

10%

40%

40%

Rights Unique

• Must be relevant to the prospect’s industry

• Must be unique and not offered to another sponsor

• May be differentiated by

– Activity

– Time

– Category

– Geography

Paris Gallery Partnership Rights Unique

• Diana Krall to make 1 appearance in

Dubai and Abu Dhabi at Paris Gallery

outlets.

• Data Capture

• Photo Opportunity with Group CEO

• Product Showcasing/sampling at the

venue

Gitanes Official Supplier Rights Unique

• Product Showcasing/sampling at the

venue – space to construct direct

promotion stand.

Etihad Partnership Rights Unique

• Route Endorsement

– E.g. Diana Krall flies with Etihad to Toronto

• 1 appearance at press conference announcing• The concerts

• The new route

• The experience

• The benefits

Sony Partnership Rights Unique

• Bluetooth broadcasting on to all bluetooth

phones

– Exclusive Diana Krall ringtone download courtesy of

Sony

– Performer announcement to open bluetooth facility to

allow Sony Courtesy download

• Have an A/V screen live broadcast courtesy of

Sony

• Handset Content

Sponsorship Landscape

Sponsorship Acquisition

Process• Define the Brand Characteristics of the Event/person

• Identify categories which share similar brand attributes

• Shortlist companies within each category

• Adapt sales decks, individualising them for each

prospect

Defining the Sponsorship

Landscape• The Sponsorship Landscape is a simple, but important process, and

it defines which categories will be most receptive to the sponsorship

proposal.

Event

Product

Attributes

Political/

NetworkingBrand Attributes

Lifestyle

Attributes

The Landscape an example

Achieve-ment driven

Commu-nity Spirit

Compassionate

Youthful

Energetic

Adven-turous

Healthy

Fun

Sponsorship Landscape Examples

IT

Telecoms

Tyres

Lubricants

Imaging

Logistics Hospitality

Timing

Airlines

Automotive

Short-listing Companies

• Research the Market and attempt to profile active

sponsors

• Match them against your sponsorship target

• Take out companies that are totally inactive

• Choose companies that have similar brand

characteristics to the event

SportZ – Motorsport Property AnalysisEquity comparison – German Motorsport Properties

F1 Team Equity

Event attendance in Germany

The Live Values of F1 Fans in the UK

Presence

Relevance

Performance

Advantage

Bonding

45%

61%

65%

77%

22%

30%

32%

14%

42%

3%

33%

57%

63%

90%

9%

%

503231302928

252322

107

Bundesliga

Tour de France

Winter Olympics

Summer Olympics

UEFA Cup

Champions League

Germany F1 Grand Prix

FIFA World Cup

Deutsch Touring Master

Berlin Marathon

Porsche Super Cup

% Adventure & Exploration

Safety & Conservatism

Conscience & Spirituality

Self-Interest & Image

83%

68%

41%

37%

3%

90%

79%

64%

60%

7%

98%

86%

77%

77%

42%

80%

76%

63%

59%

9%

Ferrari Williams McLaren Toyota

Source: SportZ 2004 Europe/China/Japan

Company Shortlisting

IT

Acer, IBM,

Cisco

(Tele)coms

Etisalat,

Inmarsat

Tyres

BF Goodrich,

Goodyear

Lubricants

Castrol, Enoc

Mobil

Imaging

Kodak, Fuji

Logistics

Aramex, UPS

DHL

Hospitality

Le Meridien

Timing

Seiko, Tag

Airlines

Emirates,

Etihad, BA

Automotive

Nissan, VW

BMW

The Sales Deck• Should contain

– A brief background/history of the event/property

– Should have it’s target audience profile

– Should have its SMP

– Should have the specific benefits for the chosen company (E.g. if it was a presentation to Emaar, no point in going with a VIK benefit proposal)

– Should have rights unique that demonstrate 1-2 leveraging opportunities

– Should have a cost section that conveys demonstration of relevant value

• It should be personalised to the company as much as possible

• It should demonstrate

– Relevant value, and

– 1-2 Leveraging Opportunities

In Summary

The Way to Succeed at Rights

Management• Sponsorship Target

– Ascertain how much you require by doing your sums

• Choose you strategy Carefully

• Define the Sponsorship Landscape

– Research your prospects

• Polish the Sales Process

– Make it relevant and Personalise