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Harald Sundgot Borgen Sport sponsorship: a company resource A qualitative case study of the Norwegian sponsors of the FIS Nordic World Ski Championships in Oslo 2011 Master thesis in Sport Sciences Department of Cultural and Social Studies Norwegian School of Sport Sciences, 2011 k Abstract The objective of the study was to investigate in what ways the FIS Nordic World Ski Championships in Oslo 2011 could function as a resource for major and minor Norwegian sponsors. Sponsors from all the four sponsorship levels (presenting sponsor, official sponsors, national sponsors and official suppliers) were part of the study. First, the sponsors` motivations and background for entering the sponsorship was investigated. Results indicate few differences between the motivation and background for the major and the minor sponsors to enter the sponsorship. Nevertheless, there were differences between the experienced and the inexperienced sponsors. Few sponsors in this study sponsored out of philanthropic reasons, i.e. the sponsors used the sponsorship as part of a strategic plan to reach external and internal objectives. Regarding sponsorship objectives, little association was found between sponsorship level and what the sponsors sought to achieve through the sponsorship. Most striking was the strong focus towards using the FIS Nordic World Ski Championships Oslo 2011 to reach internal objectives. All the sponsors interviewed in the study wanted to improve employee satisfaction. Some also wished to use the sponsorship to change or set focus on values, culture and attitudes among employees, and coordinating different departments and locations. Regarding external objectives, awareness, image, and bonding with partners and consumers were the most important objectives for the sponsors. The sponsors in the study activated their sponsorships in different ways in order to reach these objectives. These activation methods are presented, and best practises for major and minor sponsors have been highlighted. Regarding evaluation, most of the sponsors did plan to conduct an evaluation of their sponsorship. At the same time, none of the sponsors would measure the total effects of their sponsorship. More evaluation and specific measures of sponsorship effects are recommended as it gives potential sponsors more knowledge of what they can get in return by using a sponsorship of a one-time event as a resource. 3 Acknowledgements This master thesis will be the end of a five year long journey at The Norwegian School of Sport Sciences. Through five years I have learned much within the field of Sport Management, but most of all about my self. The last year has been challenging, and the ability to work independent and structured has proven to be of great importance. Nevertheless, I have had people helping me through this research project that should be given some attention. First of all, I want to thank my advisors, associated Professor Berit Skirstad and Professor Benoit Seguin. Berit has helpen me with the structure of the document and has also been helpful by being available for questions as she has office near by where I sit. Benoit has played an important role, as he has unique competence within the field of sponsoring, and has helped me with theory and other literature in the research. The thesis would never have had the same analytic and theoretic depth without his contribution as an advisor. In addition to my advisors, there are also others who deserve attention. Thanks to my family and my girlfriend, who have been with me through the rollercoaster ride with ups and downs during the year long project. Last, but not least, thanks to all the informants who have used their time on this project. They have not only been there through the interviews conducted, but have also been helpful answering follow-up questions. Oslo, May 25, 2011 Harald Sundgot Borgen 4 List of contents Abstract Acknowledgements 1. Introduction and purpose of the study.................................. 7 2. Previous research ................................................................... 9 3. Research questions .............................................................. 12 4. Context of the FIS Nordic World Ski Championships Oslo 2011................................................................................ 13 4.1 The event .......................................................................................................................13 4.2 The Sponsors of the FIS Nordic World Ski Championships Oslo 2011 ..................13 5. Sponsorship........................................................................... 16 5.1 Sponsorship: a way to break through the clutter ......................................................17 5.2 Activation ......................................................................................................................18 5.3 Ambush marketing .......................................................................................................19 5.4 Sponsorship: objectives and benefits ..........................................................................20 5.5 Internal marketing-objectives and benefits of a sponsorship...................................24 6. Sport sponsorship as a resource ........................................ 27 7. ROI and sponsorship evaluation ......................................... 33 8. Methods.................................................................................. 35 8.1 FIS Nordic World Ski Championship Oslo 2011 as a case .......................................35 8.2 Case study: choosing methods for data collection .....................................................36 8.3 Choosing the informant and data collection ..............................................................37 8.4 Transcription and analyzing of the interviews ..........................................................40 8.5 Limitations ....................................................................................................................41 8.6 Validity and Reliability in qualitative case study research.......................................43 8.7 Ethical considerations ..................................................................................................44 5 9. Results and discussion ........................................................ 45 9.1.1 The sponsors.............................................................................................................45 9.1.2 Sponsoring as a resource: Main motivations and background for entering the sponsorship .........................................................................................................47 9.1.3 How did the sponsors think that the FIS Nordic World Ski Championships in Oslo 2011 could function as a resource?..............................................................58 9.2 External and internal objectives of sponsors .............................................................67 9.3 How did the sponsors activate their sponsorship? ....................................................72 9.4 How did the sponsors plan to evaluate their sponsorships, and what were the main obstacles for those who did not plan to measure? .....................................87 10. Summary and conclusions: Sponsoring as a resource ................................................................................. 93 11. Other findings and suggestions for further research ........ 99 List of tables and figures Appendixes 6 1. Introduction and purpose of the study Amis, Pant, & Slack (1997), claim that sponsorship can be used as a resource to achieve a sustainable competitive advantage. Through sponsorship, organizations and their brands can reach various objectives, using different activities to activate the sponsorship (Meenaghan, 1991b; O`Reilly & Seguin, 2009; Sandler & Shani, 1993; Shank, 2009; Verity, 2002). Studies have highlighted the motivation behind sponsoring a one-time event and the objectives that can be reached through sponsoring these events (Apostolopoulou & Papadimitriou, 2004; Barros & Silvestre, 2006; Davies & Tsiantas, 2008; Tripodi & Hirons, 2009). It is noted that sponsors’ objectives may differ depending on the rights acquired. In addition, the way sponsors activate their sponsorship rights may differ from one another (Davies & Tsiantas, 2008). Sponsorship research in Norway is an emerging field of study compared to other countries such as the USA, since sponsoring is quite new in Norway (Thjømøe, Olson, & Brønn, 2002). Consequently, the need to gain additional insight into the inner workings of Norwegian sponsorships is increasing. For example, little is known about the internal and external strategies used by Norwegian companies to reach objectives and get a competitive advantage. Therefore the objective of the study was to investigate in what ways the FIS Nordic World Ski Championships in Oslo 2011 could function as a resource for major and minor Norwegian sponsors. Results and experiences from this study will hopefully contribute to the body of literature on sponsorship and as such facilitate its use by sponsors and sponsees (the one being sponsored) as a tool that enables major and minor sponsors to use sponsorships as a company resource. Furthermore, the results of the study will be a helpful guide towards building successful sponsorships. Guidelines and examples for activation will provide some help for sponsors and sponsees on how to use sponsorship as a tool to reach external and internal objectives of

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