Sponsorship in Sailing

MARKETING THROUGH SAILING

By Anna Zykova

WHY THIS TOPIC? PROBLEM DEFINITION 1. I am a sailing enthusiast and a marketing addict => 2 passions I’d like to put together in my future career 2. Being involved in sailing competitions and I discovered that some athletes struggle with getting a sponsor, not knowing HOW to approach them 3. In the course of Master in Marketing we’ve learned how companies use more and more creative ways to reach out to the customers 4. There are a lot of stereotypes about sailing and I want to eliminate them!

LITERATURE REVIEW •

Academic resources about sponsorship in sailing are very limited

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I extended my literature research to more general resources on Sport Marketing and Sponsorship in other niche sports With my thesis I’d like to contribute to the available resources not only for the corporates, who consider a sailing sponsorship, but also for the sailing industry to better understand their sponsors’ needs & expectations

MAIN FOCUS IN LITERATURE REVIEW 1. Some authors (Nufer, Bühler) look at sport sponsorship as a RELATIONSHIP MARKETING stressing the importance of building relations with all the stakeholders rather than directly selling, a trend since the 1980’s 2. Authors defines Marketing of sport products & companies opposed to MARKETING THROUGH SPORT - brands not related to sport (Milne, McDonald; Fullerton, Merz; Peetz, Reams et al) 3. Main DECISIVE CRITERIA in marketing through sports and sailing (Fuller): •

Interaction with the target audience

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Brand exposure possibilities

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Geographical coverage

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Media coverage returns

MAIN FOCUS IN LITERATURE REVIEW 4. BUDGET CONCERNS •

Sailing VS Formula 1: sailing has more potential for pay back, a sponsor gets more for same or less money (Fuller)

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Compared with football or golf the endorsement deals are lower (Jones)

5. SPORT IS UNPREDICTABLE - RISKY FACTOR •

“People’s memory tends to amplify the effect of a failure” (Davis, Hilbert)

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“Brands involved, actually welcome the presence of the risky element” (Turner)

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“Elevated risk factor can sift some brands away” (Raynaud, Bolos)

HYPOTHESIS & METHODOLOGY Some authors point at obvious brand connections (Red Bull for the Extreme sports, Polo RL for golf etc.)

ONLY certain COMPANIES with CERTAIN VALUES and EXPECTATIONS with HIGH LEVEL of REVENUES, that are READY for the RISK

MY HYPOTHESIS: ANY COMPANY CAN PROMOTE THROUGH SAILING

Public survey with 125 participants (random, not connected to sailing) 17 in-depth interviews with the industry insiders (sailors, journalists, corporates) Study of the existing sailing sponsorship campaigns by type (event/team/athlete)

PUBLIC SURVEY MAIN FINDINGS: Only 12 respondents out of 125 (7,2%) considered themselves “sailors” => I avoided to include the influence of those who sail •

70% of respondents follow some sort of sport

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There is no relation between a person’s income to being a fan of sailing

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80% of non-sport fans were interested to attend a sport event for free

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50% of all respondents like sailing as sport, 60% ready to try it

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60% are interested to attend a sailing event for free, 24% will pay to enter

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Only 13% of people understand fully sailing racing

INSIGHTS FROM THE INDUSTRY Targeting key audience in key locations: mass

Media coverage returns: can overcome initial budget 3-4 times

Relationship building by placing a guest onboard: no other sport does that

Advertising & branding: 500 sq. m. billboard travels around the world

market or ABC

MAIN PAYBACKS IN SAILING SPONSORSHIP

Marketing Comms, Brand activation & good PR are key Easy fit of side projects, non-profit projects

STUDY OF CAMPAIGNS KEY POINTS: •

Sailing is scalable: a company can choose the level, the location, the target audience etc

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Success does not depend on winning, what matters is the effort and dedication of the team/athlete = > good story

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Brand values don’t have to be associated with “common” sailing values

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Even a case of failure can become a successful campaign => good communication plan (Plan B)

RESULTS OF THE RESEARCH PROOF THAT ANY COMPANY CAN SPONSOR SAILING: •

Public likes sailing in general, it has a good “green” image compared to other sports

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Industry insiders proved that with a well-thought PR & marketing campaign and proper activation any company can sponsor through sailing

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Success stories of brands not associated with common sailing values prove that it is possible to connect any product in the mind of the customer 70% support the hypothesis that any company can use sailing for marketing

SPONSORSHIP DECISION MODEL Careful planning is key: •

Prior research of previous campaigns, techniques, activations

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Analysis of available circuits: understanding their geographical and media coverage

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Budget estimation plus extra for the unexpected situations

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Good marketing team, who understands sailing, with activation plan on hand

An interesting concept with a good story behind it

“Media-friendly” skipper with a boat according to budget

CONCLUSIONS More creativity in marketing through sailing is key!

Athletes should learn not only how to sail, but to sell The sailing industry has to be more open to the public

THANK YOU!