Co-Branding Through Soccer in Kwazulu-Natal, South Africa

CO-BRANDING THROUGH SOCCER IN KWAZULU-NATAL, SOUTH AFRICA By Mduduzi Victor Mphathi Ndlovu Student Number: 20926904 Thesis submitted in fulfilment of the requirements for the Degree of Doctor of Philosophy in Marketing Department of Marketing and Retail Management Durban University of Technology Durban, South Africa APPROVED FOR EXAMINATION ___________________ _____________________ (Student Signature) (Date) ___________________ _____________________ Promotor: (Date) Professor J.P. Govender (PhD, M.Com, B.Com Hons, B.Paed.) ---------------------------- _____________________ Co-promotor: (Date) Professor S. Penceliah (PhD, M.Com, B.Com Hons, B.Paed.) DECLARATION I, the undersigned, certify that: I am familiar with the rules regulating higher qualifications at Durban University of Technology (DUT), and understand the seriousness with which DUT will deal with violations of ethical practice in my research. Where I have used the work of others this has been correctly referenced in the proposal and again referenced in the bibliography. Any research of similar nature that has been used in the development of my research project is also referenced. This project has not been submitted to any other educational institution for the purpose of a qualification. All subsidy-earning output (artefacts and publications) from postgraduate studies will be in accordance with the Intellectual Property Policy of the Durban University of Technology. Where patents are developed under the supervision of DUT involving institutional expenditure, such patents will be regarded as joint property entitling DUT to its share, subject to the DUT’s policy on the Management and Commercialization of Intellectual Property. I understand that I am expected to publish an article based on my research results. I understand that plagiarism is wrong, and incurs severe penalties. I HEREBY DECLARE THAT THE ABOVE FACTS ARE CORRECT. Signed: _______________________ Date: _____________________ i ACKNOWLEDGEMENTS My sincere gratitude and appreciation to the following institutions and people who contributed towards the completion of this study: My promotors Prof J.P. Govender and Prof S. Penceliah for their guidance, patience, encouragement and professional inspiration; Dr A Mienie for contribution towards an important critical aspect of a doctoral study; Mr B.K. Zwane for a lead to very important respondents of the study; My acquaintances at MUT for their moral support; My family that are education-oriented for consistent encouragement emanating from the policy of our late grandfather Zacharia Ndlovu who wanted all his grandchildren to be educated; My ex-schoolmate Mr N.N. Ntshangase who encouraged me to embark upon doctoral studies; My friend and colleague Mr T.T. Poswa for guiding me in using qualitative data analysis software; Mr Eric Smith of the SAFA local branch in Durban for assistance in persuading participants; Finally, Mangosuthu University of Technology for financial support throughout post-graduate studies. ii ABSTRACT The issues of branding, co-branding and sponsorship are critical aspects of marketing management studies. The fundamental problem surrounding co-branding and sponsorship in soccer is that professional soccer clubs hold a short-term view to relations with sponsors, whereas sponsors themselves hold a long term view to co-branding. The study explores the applications of co- branding through soccer in KwaZulu-Natal, more specifically, whether parties to sponsorship agreements appreciate the magnitude of investment in marketing where co-branding is pursued with an intention of enhancing the image of both the sponsor and the club. A qualitative research approach was used in the study as it is often conventional for studies of this nature. Soccer fans were interviewed through focus group sessions whilst club officials, sponsorship officials, and professional soccer players were personally interviewed. Similarly, NVivo as a qualitative data analysis tool was used. It emerged that players did not appreciate the link between their performance and the image of the sponsor. Again, soccer clubs as well sponsors did not rigorously evaluate the impact of sponsorship and that soccer clubs and sponsors did not internalize the objectives of co-branding in terms of its mutual benefit. This is an important highlight on the findings for professional management of soccer clubs to enhance co-branding related issues. As a critical contribution to understanding negotiating and concluding sponsorship agreements, a framework has been proposed that will guide executive managers of both soccer clubs and sponsorship organizations in managing sponsorship programmes. Iii TABLE OF CONTENTS CHAPTER 1: INTRODUCTION TO THE STUDY 01 1. INTRODUCTION 01 1.1 THE CONTEXT OF THE STUDY 01 1.2 THE RESEARCH PROBLEM AND AIMS 02 1.3 OBJECTIVES OF THE STUDY 05 1.4 LITERATURE REVIEW 04 1.5 RESEARCH METHODOLOGY 04 1.5.1 Population of interest 05 1.5.2 Sampling 05 1.5.3 Data collection 06 1.5.4 The chapters of the study 06 1.6 CONCLUSION 07 CHAPTER 2: THE HISTORY OF SOCCER 08 2.1 INTRODUCTION 08 2.2 HISTORICAL DEVELOPMENT OF SOCCER WORLDWIDE 09 2.2.1 The spreading of organised soccer in Europe and America 11 2.2.2 The migration of soccer players 14 2.2.3 The pivotal role of FIFA in the development of soccer 18 2.2.4 The impact of soccer in the Middle East 19 2.2.5 Soccer development at club level 20 2.3 HISTORICAL BACKGROUND OF SOUTH AFRICAN SOCCER 25 2.3.1 Segregated development of South African soccer 25 2.3.2 Developmental progress in post-apartheid era 30 2.3.3 The national team in post-apartheid era 33 2.3.4 The question of grass root soccer development 35 2.3.5 The perceived low level of passion among South African fans 37 2.3.6 Global demands on South African soccer 38 2.4 CONCLUSION 40 iv CHAPTER 3: SOCCER – THE PRODUCT 42 3.1 INTRODUCTION 42 3.2 SOCCER – A SPORT 42 3.2.1 The nature of the marketing concept 43 3.3 THE MARKETING MIX 46 3.3.1 Product 46 3.3.2 Price 47 3.3.3 Promotion 49 3.3.4 Place (distribution) 52 3.3.5 People 54 3.3.6 Process and Physical Evidence 55 3.4 THE NATURE OF SERVICE 57 3.4 BRANDING 59 3.4.1 The origin of branding 61 3.4.2 Benefits of branding 64 3.6 BUILDING AND MANAGING BRANDS 66 3.6.1 Brand strategy 66 3.6.2 Corporate values and brand value 67 3.5.3 Consumer perception in building brands 69 3.6.4 Brand image and brand personality 71 3.7 BRAND EQUITY AND C0-BRANDING 74 3.7.1 Co-branding strategy 75 3.7.2 Co-branding and consumer acceptance 78 3.7.3 Different levels of co-branding 80 3.8 BRAND COMMUNITIES, SELF-CONCEPT AND LIFESTYLE 83 3.9 CONCLUSION 84 CHAPTER 4: BRANDING AND CO-BRANDING IN SPORT 86 4.1 INTRODUCTION 86 4.2 BRANDING IN PROFESSIONAL SOCCER 86 4.3 CO-BRANDING IN SPORT 88 v 4.3.1 THE DEVELOPMENT OF CO-BRANDING IN SPORT 90 4.3.2 The marketing objectives of co-branding in sport 91 4.3.3 The magnitude of investment in co-branding in soccer 93 4.3.3 Unique characteristics of marketing through sport 94 4.4 ISSUES IN SOCCER CO-BRANDING 97 4.4.1 Conflicting sport sponsorship and endorsements 98 4.4.2 Professional management of sport sponsorship 08 4.4.3 Management level of sponsorship agreement 99 4.4.4 The effect of sponsorship clutter on sport consumers 100 4.4.5 Measurement of attainment of sponsorship objectives 100 4.4.6 Sponsorship congruence 102 4.4.7 Affective intensity and sponsor identification 104 4.5 CRITICAL SUCCESS FACTORS IN SOCCER SPONSORSHIP 107 4.5.1 The length of the relationship with stakeholders (sponsors and spectators) 107 4.5.2 Clear sponsorship objectives 109 4.5.3 Shared value, trust, and congruence 110 4.5.4 Availability of required resources 111 4.5.5 Length of sponsorship contract 113 4.5.6 Normal pay and incentive pay 115 4.5.7 Player performance and behaviour 117 4.5.8 Team performance 121 4.5.9 Physical fitness of players 123 4.5.10 Team performance indicators 126 4.5.11 Market forces’ impact on player remuneration 127 4.6 CONCLUSION 130 CHAPTER 5: RESEARCH METHODOLOGY 132 5.1 INTRODUCTION 132 5.2 THE NATURE OF RESEARCH 132 5.3 QUALITATIVE RESEARCH DESIGN 133 5.3.1 The role of the researcher 134 5.3.2 Differences between quantitative and qualitative approaches 136 5.3.3 Methods available to qualitative data analysis 138 vi 5.3.4 The focus of the inquiry 139 5.3.5 The research paradigms 140 5.4 QUALITATIVE RESEARCH PROCESS 141 5.4.1 Population of interest 141 5.4.2 Sampling 141 5.4.3 The basis of interview planning 143 5.4.4 Data collection 145 5.4.5 Credibility and trustworthiness 146 5.4.6 Application of qualitative data analysis software 148 5.5 CONCLUSION 151 CHAPTER 6: ANALYSIS OF DATA AND FINDINGS 153 6.1 INTRODUCTION 153 6.2 DATA ANALYSIS 153 6.2.1 Knowledge of club sponsors 153 6.2.2 Understanding the sponsors’ interests 155 6.2.3 Recognition of stakeholders 155 6.2.4 Affective intensity and sponsor identity 157 6.2.5 Conflicts in sports co-branding 158 6.2.6 Internalization of sponsors; interests 159 6.2.7 Implications of the length of sponsorship 150 6.2.8 Sponsorship and marketing mix 161 6.2.9 Level of seniority in dealing with sponsorship agreements 163 6.2.10 Measurement of sponsorship objectives 164 6.2.11 Congruence between club and sponsor 165 6.2.12 Implications of interfering behaviour in club management 167 6.2.13 General data 168 6.3 CONCLUSION 169 CHAPTER 7: INTERPRETATION AND DISCUSSION OF FINDINGS 171 7.1 INTRODUCTION 171 7.2 INTERPRETATION OF RESULTS 171 7.2.1 Knowledge of club sponsors (soccer players and fans) 171 vii 7.2.2 Understanding the sponsors’ interests 172 7.2.3 Recognition of stakeholders

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