Enhancing the value of the sponsorship packages - An analysis of the Fiji Volleyball framework –
Tutor – Monsieur Alain Ferrand A project by Ms Sainimili Lavenia Talatoka, Fiji Volleyball Federation 2
Acknowledgements
1. MEMOS IX Tutor – Monsieur Alain Ferrand for the tutoring and professional guidance 2. MEMOS IX lecturers and tutors for the knowledge gained and practical sessions from their years of service 3. MEMOS IX students for the camaraderie, encouragement and advice 4. Fiji Association of Sports and National Olympic Committee (FASANOC) and Oceania Olympic Committee (ONOC) for the administrative and financial support enabling my participation at the 3 working modules in Lausanne, Rio de Janeiro and Ragusa respectively and the final examination presentation in Lausanne, Suisse. 5. Olympic Solidarity of the International Olympic Committee (IOC) for the scholarship to be part of MEMOS IX 6. Fiji Volleyball Federation for providing the opportunity to undertake this project on the organisation 7. Sponsors and stakeholders for being part of the research 8. My family for their support and understanding
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Table of Contents 1 Introduction 6 1.1 Problem Discussion 6 1.2 Objectives of the Report 7 1.3 Brief History of Fiji 7 1.4 Sports Industry in Fiji 8 1.5 Fiji sponsorship market 9 1.6 Hypothesis 11 2 Investigating the theoretical framework for sponsorship 11 2.1 Sponsorship 11 2.2. Sponsorship Objectives 14 2.3 Brand Equity 16 2.4 Stakeholder Theory 16 2.5 Relationship Marketing 19 3 Methodology 21 3.1 Data Collection 21 3.2 Survey Objectives 21 3.3 Interview 21 3.4 Questionnaires 22 3.5 Limitations 22 4 Development of survey instruments - analysing the current situation of Fiji Volleyball 23 4.1 Diagnosis of Situation 23 4.2 Brand Equity Assessment 24 Identifying the expectations of sponsors and linking to property characteristics 25 4.4 Assessing the perceived quality of the sponsorship offering 29 4.4.1. Marketing Strategies to counter the unsatisfied attributes identified from IPA 33 4..4.1.1 Extensive media coverage for sport in general 33 4..4.1.2 Large attendance at events 33 4..4.1.3 Prominent national/district profile 33 4..4.1.4 Property association stimulates sales and new business 34 4.5 Identifying the salience of other stakeholders to Fiji Volleyball property 34 4.6 Conclusion 38 Towards a development of a partnership program 41 5.1 Development of a sponsorship operational implementation plan for Fiji Volleyball 41 5.1.1 Strategy One – Prioritising the stakeholders, creating and modifying existing properties and linking to the identified primary stakeholders through relationship marketing 41
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5.1.2. Strategy Two – Formulating a sponsorship operational implementation plan 44 5.1.2.1 Objectives of sponsorship 44 5.1.2.2 Revenue Target 44 5.1.2.3 Sponsorship Pyramid and Program 44 5.1.2.4 Operational Execution Plan 47 5.1.2.5 Staffing the new Fiji Volleyball Operational Management Structure 48 6 Bibliography 52 7. Abstract In English 55 8. Abstract In French 56 9. Annexure 57 9.1 Annexure 1 – Identifying the expectations of existing and potential sponsors’ on Fiji Volleyball sponsorship offering 57 9.1.1 Figure 12 - Reasons for engaging in sport sponsorship 57 9.1.2. Figure 13 - Key criteria used by sponsors when analysing sponsorship proposals 58 9.1.3. Figure 14 - Areas of improvement for sports properties 59 9.1.4 Figure 15 - Sponsors target market demographics 59 9.1.5 Figure 16 - Property characteristics typically analysed when assessing offering quality 60 9.1.6 Figure 17 - Top three most desired benefits from a sponsorship 60 9.1.7 Figure 18 - Established sponsorship policies (multiple responses accepted) 61 9.1.8 Figure 19 - Expectations from a sponsee (multiple responses accepted) 61 9.1.9 Figure 20 - Main expectation from a sponsee 62 9.1.10 Figure 21 - The unsatisfied expectations 62 9.1.11 Figure 22 - Corporations sponsorship objectives 63 9.1.12 Figure 23 – Criteria to determine value of sponsorship proposals 63 9.1.13 Figure 24 - Sponsor's target market for sponsorship 64 9.1.14 Figure 25 - Sponsorship effectiveness evaluation methods 64 9.2 Annexure 2 – In-depth interview sample for Existing and Potential Sponsors 65 9.2.1. Guide for in-depth interviews for existing sponsors 65 9.2.2 Guide for in-depth interviews for Potential Sponsors 65 9.3 Annexure 3 – Internal Analysis of Fiji Volleyball Federation resources and competencies 66 9.3.1. Table 15 – Information on Fiji Volleyball Federation 66 9.3.2 Diagram 1 - Current Structure of Fiji Volleyball 69
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9.4 Annexure 4 – In-depth interview sample for Fiji Volleyball Federation 70 9.5 Annexure 5 - Benchmarking against successful sports bodies that attract large sponsorship 70 9.5.1. Figure 26 - Sports body sponsorship responsible parties 71 9.5.2. Figure 27 - Sponsorship Department Budget 71 9.5.3 Figure 28 - Methods of attracting sponsors 72 9.5.4 Figure 29 - Benefits of the sports organisation that attract sponsors 72 9.5.5 Figure 30 - Key success factors for successful sponsorship partnership 73 9.5.6 Figure 31 - Sponsorship Effectiveness Evaluation Methods 73 9.6 Annexure 6 – In-depth interview sample for Sporting Bodies 74 9.7 Annexure 7 – Identifying other stakeholders expectations 75 9.7.1 Table 16 - Other stakeholders expectations 75 9.8. Annexure 8 - Interview Sample for other stakeholders 77 9.9. Annexure 9 – Analysis of other stakeholder opinion on Fiji Volleyball sponsorship and brand 77 9.9.1 Figure 32 – Fiji Volleyball Stakeholders Opinion about the characteristics of an ideal sponsorship program for a sports federation and the degree to which Fiji Volleyball provides this services at present 77 9.9.2 Figure 33 – Level of effectiveness of Fiji volleyball in forming partnership programs with stakeholders 78 9.9.3 Figure 34 – Strong points of Fiji Volleyball 78 9.9.4 Figure 35 – Improvement areas for Fiji Volleyball 79 9.9.5 Figure 36 – Stakeholders opinion on Fiji Volleyball sponsorship 79 9.10. Annexure 10 – On-Line Survey Questions on sponsorship and Fiji Volleyball brand 80 9.11 Annexure 11 – Sample of Importance Performance Analysis survey 81 9.12. Annexure 12 – The most and least important performance criteria for sponsorship according to sponsors 82 9.12.1 Table 17 - The 15 most important performance criteria 82 9.12.2 Table 18 - The least important performance criteria 83 9.13 Annexure 13 – Fiji Volleyball Affiliate Ratings 84 9.13.1 Table 19 Fiji Volleyball Affiliate Ratings Card 84
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1 Introduction
1.1 Problem Discussion
Commercial sponsorship for volleyball in Fiji has not been fully explored, nor has it recognised its potential in the local market. It was during 2005 that the sponsorship market was pursued to financially support its properties for the first time. The focus was the competitions largely because it was the most recognised and established of all the Fiji Volleyball Federation’s properties. The current low standing of the national team internationally, the relatively poor brand image of the sport in Fiji and its association with being a recreational sport were additional contributing factors to the strategic choice of pursuing commercial sponsors to further develop the sport of volleyball in Fiji..
The sponsorship packages offered by the Fiji Volleyball Federation (FVF) focused on advertising and naming rights sponsorship for its national events - the Vulaca Championship, Vanua Challenge, Club League and National Championships where the sponsorship value ranged from $2,000 to $10,000 per event.
The response of this sponsorship initiative saw seven corporate sponsors providing a total of $22,000 for 2005 (see Figure 1). While this was still quite low, it was more than the FVF had ever seen before and this partnership improved the visibility of the sport of volleyball in the country.
Unfortunately of the seven corporations that supported volleyball, only one renewed its association in 2006. This was of immense concern to the Executive Board because this meant that the planned programs in its 4-year Strategic Plan would be jeopardised.
The following research was undertaken as a means of examining the problem faced by a strictly amateur sports organisation such as Fiji Volleyball as it strives to develop itself beyond its current position towards a more commercially viable operation.
Interiorz (Fiji) Ltd & Supreme Fuel
Figure 1 – 2004/2005 Fiji Volleyball Sponsors
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1.2 Objectives of the Report
Given, the circumstances stated above, the aim of the project was:
1. To complete a broad examination of the commercial sponsorship market for sport in Fiji. 2. To determine what factors create interest for sponsors of sport in Fiji and what maintains their interest. 3. To examine the current structure of Fiji Volleyball and determine its effectiveness in both attracting and maintaining commercial sponsorship support for its activities. 4. To create a proposal targeting stakeholders using relationship marketing. 5. To re-design the sponsorship plan in order to enhance its attractiveness by formulating a sponsorship operational implementation plan focusing on the process, organisational structure, staffing and financial resources.
1.3 Brief History of Fiji Fiji is an island group, located in the South Pacific Ocean, about two-thirds of the way from Hawaii to New Zealand (The World Fact Book). It is a country of about 332 islands where about 110 of these islands are inhabited. The two largest areas are Viti Levu and Vanua Levu. It has a population of about 905,949 (2006 estimate), with the main languages English (official), Fijian, Hindustani. The capital is Suva.
The composition of ethnicity is Fijian’s 51%, Indian 44%, European, other Pacific Islanders, overseas Chinese and others 5% (1998). The most practiced religions are Christianity 52% (Methodist 37%, Roman Catholic 9%), Hindu 38%, Islam 8% and others’ 2%).
Fiji, which has been inhabited since the second millennium B.C., was explored by the French, Dutch and the British during the 17th and 18th centuries. In 1874, an offer of cession to the King of England by the Fijian chiefs was accepted in return for armed protection, and Fiji was
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proclaimed a possession and dependency of the British Crown. In the 1880s large-scale cultivation of sugarcane began. Over the next 40 years, more than 60,000 indentured labourers from India were brought to the island to work the plantations. By 1920, all indentured servitude had ended. Fiji became independent on Oct. 10, 1970. Political upheavals marked the country’s history in the late 80’s with 2 coups caused by concern over a government perceived as dominated by the Indian community. During 1990, Fiji became a Republic after it was dropped as a member of the Commonwealth of Nations for a second time, however to this day Fiji retains the Union Jack in the top left hand corner of its national flag.
1.4 Sports Industry in Fiji The sports industry in Fiji has progressed gradually over the years. It has gone through notable changes including construction of sports facilities for the South Pacific Games in 2003, proliferation of professional players particularly in rugby union, increased corporate investment in sport through the 200% tax incentive by Government and a growing recognition of sporting goods manufacturers and agencies. Statistics are unavailable to gauge the rapidity of growth in this sector but indications are that the sports industry in Fiji has changed considerably over the last decade, contributing significantly to Fiji’s G.D.P.
Fiji is recognised as a regional leader in sports having won medals at the Commonwealth Games and ranked second overall in the medal tally during the 2003 South Pacific Games. It has strong links to the International Olympic Committee with a local, Dr. Robin Mitchell the Secretary General of Oceania National Olympic Committee (ONOC) and also a member of the IOC and the ONOC and Regional Anti-Doping Organisation (RADO) offices located in Suva, the capital of Fiji.
It is well known for being the world cup champions for the rugby union seven’s having produced some of the world’s best seven’s rugby union players. It has an internationally recognised golfer in Vijay Singh who is now based in the USA.
According to the Pacific Sporting Needs assessment (2005) the key stakeholders of sport in Fiji include the Ministry of Youth & Sports, Fiji Association of Sports and National Olympic Committee (FASANOC) and Fiji Sports Council.
The Ministry of Sports provides advice to the Minister on sports policy regulations and is directly responsible to distribute funds for sport development to national federations and development programs.
FASANOC, established in 1949 and recognised by IOC in 1955, is the body comprising of the 39 national sports federations. It represents all sports and coordinates the national teams to all multi-sport events like the Pacific (formerly the South Pacific Games), Commonwealth and Olympic Games. FASANOC’s funding sources are its investment in real estate, IOC grants, Fiji Government, Olympic Solidarity (IOC) and corporate sponsors to fund its elite and Fiji national representative teams to multi-sport events.
The Fiji Sports Council is a body set up in 1979 by the Ministry of Youth & Sports to promote, develop sports and maintain and develop sports facilities. Apart from income from facility use,
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it also generates part of its revenue from percentage profits of tattslotto products sold in Fiji and naming rights sponsorship.
Other stakeholders include the: Ministry of Education who is responsible for the delivery of a sports curriculum throughout the education system, University of the South Pacific with their corporate sponsored “All rounder scholarship” program targeting tertiary students that excel academically and in the sports field, Fiji Institute of Technology with their sports science program and Corporate sector which sponsors national federations, sports events and employs sports people. Fiji Visitors Bureau and Ministry of Tourism in their pursuit of sports tourism marketing Media which plays a significant role in the promotion and marketing of sports events, icons and sporting activities in general.
The 39 national federations that affiliate to FASANOC include Olympic and non-Olympic sport organisations with most considered amateur sports. Both types, nevertheless, are similar in that they are non-profit organisations whose main goal is not financial returns but the performance of their mission (Chappelet & Bayle 2005). It can make profits but these are reinvested to further their activities that they organise for members and not for distribution to owners or shareholders. In essence, these sports organisations must satisfy its members, differentiate itself from competitors and find resources to sustain its operations.
These national federations that come under FASANOC operate at different levels with some well administered whilst others exist in name only. The well established ones are those that receive some form of funding support from their international federations, employ a full time administrator supplemented by a small group of committed leaders. At the higher established market end are the two largest sports, rugby union and football, with their properties, full time staff, considerable sponsorship deals and very active international federation support.
At the lower end, are those sports that struggle to survive because of low membership, insufficient resources and low support from their international federation. Many have survived on nominal membership fees and fundraising. One of these forms of fundraising is sponsorship. Sponsorship is one area that has taken Fiji by storm over the last 5 years. From the outset, the large sports like rugby and football have benefited from the cream of this form of fundraising. However, sports like hockey have shown that sponsorship can benefit smaller sports too.
1.5 Fiji sponsorship market The progress of sport sponsorship Fiji took center stage after the staging of the 2003 South Pacific Games in Suva.
The magnitude of the sponsorship, in Fiji terms, saw corporations contributing slightly over $12 million or 70.5% of the total organising committee’s budget to host the games (South Pacific Games 2003 Report). The introduction of a 200% tax concessions by Government was a key driving factor in generating this interest from the corporate sector.
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The major sports in Fiji, rugby union and football, are two sports that attract corporate sponsorship on a large scale. In 2005, Fiji Rugby attracted $1.74 million or 48.22% of its total revenue source (2005 Fiji Rugby Union Annual Report) whilst Fiji Football sourced $0.52 million. The Fiji Association of Sports and National Olympic Committee (FASANOC) also pursued this avenue of fundraising generating $0.19 million, almost 15% of its total revenue source (2005 FASANOC financial statements).
Similarly, Fiji Sports Council embarked on naming rights sponsorship generating $0.65 million in 2005 for four of its sports facilities – the fmf dome, Post Fiji Stadium, Tattersals Leisure Center and Hyundai Fitness Center. The distribution of market share of the sports sponsorship market in Fiji is shown in figure 2.
Figure 2 – Market Share of sports properties sponsorship in Fiji for 2005
6% 1% 6%
16%
52%
19%
Fiji Rugby Fiji Sports Council Fiji Soccer Fiji Hockey FASANOC Others
Source – 2005 Fiji Rugby, Fiji Football, FASANOC Annual Reports
For the Olympic Movement in Fiji, the success of the 2003 SPG sponsorship program influenced FASANOC to establish Sports Fiji Limited . It was set up to operate its income generating business arm. In 2005, this separate arm was merged with the main operations of the Fiji Olympic Committee due to large losses incurred (FASANOC Annual Report, 2005). Sensing the importance of sports sponsorship to further develop sports in Fiji, FASANOC conducted a seminar for all national federations in late 2005. The focus was on strategic planning and sport sponsorship.
At the end of this seminar, it was obvious that like FASANOC, Fiji Volleyball was adamant that sports sponsorship played an important role in developing sports in the country. The changing environment of the local sporting organisations and the influence of international sports sponsorship have impelled sporting bodies to seriously explore and understand this concept.
For Fiji Volleyball, given the historical reliance on grants and affiliation fees the Federation embarked on tapping sponsorship as another revenue source. A sponsorship package was designed in the latter part of 2004 using standard guides to sell its established products – its national competitions. Seven organisations came on board in 2005 providing various levels of financial support and positively contributed to the development of Fiji volleyball. Their support saw a gradual increase in the sports visibility in the media.
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Further, the last three years has seen a noticeable growth in popularity of the sport in terms of participation at grassroots level and fan attendance at national competitions. This trend, coupled with the formulation of a quadrennial Strategic Plan to direct its operations, has set the platform to expand the sports organisation.
1.6 Hypothesis It is assumed that the poor result of attracting sponsors is due to: 1. Lack of fit between Fiji Volleyball offerings and the objectives of sponsor corporations and 2. Poor network relationship
Therefore, this project will seek to verify the above assumption. If the findings support this, then the aim of this project is to determine how Fiji Volleyball can better provide attractive sponsorship packages using theoretical frameworks and practical programs by successful sports organisations.
Hence, in order to help achieve this, the following questions will be posed to guide this research project:
What are the expectations of existing and potential sponsors of the Fiji Volleyball Federation for sport sponsorship? What are the differences in the expectations of existing/potential sponsors and stakeholders and Fiji volleyball offerings? What is the perceived quality of sponsorship offering? Who are the primary stakeholders of Fiji volleyball?
It is hoped that the Fiji Volleyball Federation adopt the recommendations of this paper to develop and improve its overall marketability to potential sponsors and secure the financial resources it undeniably desires to help realise its full potential locally.
2 Investigating the theoretical framework for sponsorship
The purpose of this literature review section is to establish a theoretical framework relating to sponsorship as this is a necessary stage in the process of achieving the set objectives of this project. The review helps to explore the meaning of sponsorship and understanding the concept in relation to brand equity, stakeholder and relationship marketing theories.
2.1 Sponsorship Worldwide spending on sponsorships reached US$24 billion in 2002, a 3.4 per cent increase from US$23.6 billion spent in 2001 according to IEG, a Chicago based sponsorship research firm (A.T. Kearney n.d.). In North America, corporate sponsorship is the fastest growing form of marketing promotion which is estimated at about US$9.6 billion in 2002, this is slightly more than a 9% average growth rate over the previous five years (A. T. Kearney n.d.).
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Sponsorship is defined by Ferrand & Torrigiano (2005) as “a persuasive communication strategy integrated within marketing that pursues commercial or institutional objectives, exploiting the direct associati on between an organisation, brand, or personality and implying a commercial transaction between the various parties concerned. ” Howard & Crompton (2005) state that sponsorship is an exchange theory involving two activities: (1) a business relationship between provider of funds, resources or services and a sport organisation, which offers in return specific rights and (2) the marketing of the association for commercial advantage.
These two definitions demonstrate that both organisations involved in the exchange must: i. Demonstrate a “FIT” or match between the sponsor and property or sporting organisation. This match or congruency is determined by identifying the objectives of the sponsoring corporation (identified in Table 1) and the marketing strengths and offerings of the sports organisation or rights owner. The compatibility between the two brands normally results in an exchange process. ii. Offer an instrument of value to the other party. Generally, for the corporate investor this is in the form of rights fees (which are the cash or in-kind products or services granted to the property-rights holder) and activation costs (which are the complementary marketing activities that augment the sponsorship investment e.g. media advertising, promotions, operational support and client hospitality) which is offered to the property owner. On the other hand, for the property owner or sports organisation it can offer prestige, brand awareness, audience loyalty, access to customer segment, category exclusivity and low degree of sponsorship clutter (A.T.Kearney n.d.). Another increasing valuable tool pursued by corporations is the accessibility to properties that improve public relations and good corporate citizenship. iii. Undertake marketing and activation programs to exploit the association. Traditionally, sponsors spent only rights fees on a property and expected returns on investment. This trend has changed where companies have realised that activation programs has great impact of fully realising value through sponsorship (A.T.Kearny n.d.). Activation is a marketing strategy aimed at providing to the people concerned a positive experience with the sponsor brand and products in relation to the event. Activation programs include traditional media and promotional opportunities to emerging trends like interactive events for customers, internet and activity based promotions and customer and celebrity interactions during and after events. These marketing programs are achieved through establishing co-marketing relationships with suitable partners in the market place.
iv. Quantify return on investment measures – This fundamental assessment criterion provides the basis of the continuation or end of a sponsorship association. Both the rights owner and sponsor agree from the outset the measurements of return on investment (ROI) assessment. These are either termed as “hard” benefits or tangibles e.g. media exposure (seconds on TV and column inches in newspapers) and behavioural impact (sales and market share) and “soft” benefits or intangibles e.g. awareness, image and brand position, perceived quality and attitude (Ferrand et al. 2005). The latter, requiring substantial resources, is often undertaken by professional research companies.
These characteristics is summarised in Ferrand et al’s (2005) strategic sponsorship model .
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Specific Return on Investment Assessment (ROI)
Generic and customised ROI assessment
Service perceived quality
Marketer FIT Sponsor Rights Owner Sport Contribution (cash, value in kind) Organisations Activation program marketer/sponsor Sport facilities Athletes Activation programs based on relationship marketing Managers
Other Local authorities Media Providers Sponsors
Figure 3 – Strategic Sponsorship Model Source – Ferrand & Torrigiani L (2005), “Marketing of Olympic Sport Organisations ,” p126
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2.2. Sponsorship Objectives Table 1 shows the various objectives of sponsoring corporations when engaging in partnership programs with property owners.
Table 1 – Corporation objectives for sponsorship Authors Dimensions Irwin, Assimakopoulous and Sutton Fit between sponsor and: (1994) as cited by Stotlar (2005) sport image and product/service image sport target market demographic profile of extended audience demographic fit of the immediate audience and Opportunities for signage Pentecost & Mark Spence (n.d) Fit between sponsor and other stakeholders: co-sponsors and consumers Targeting and image, Geography and Typicality, Complementarity and Clash Stotlar (2005) Demographic fit between sport organisation participants/audience base and target market of sponsor Awareness objectives Image Sales Hospitality Employee motivation Other sponsors On-site sales Cause-related Grassroots (community based) Howard et al. (2005) Congruency of target market Congruency of image Increase awareness Image Enhancement Demonstrate Platform Hospitality Opportunities Product Trial or Sales Opportunities Ferrand et al. (2005) promote credibility of business products, increase awareness, transference of image, stimulate sales force, generate goodwill and positive attitude, increase sales, develop business to business relationship, proving citizenship and legitimating company social performance, promoting company culture, reinforcing internal cohesion and motivating staff, improving staff recruitment direct association
Sponsoring organisations have various objectives when engaging in sponsorship so it is important for the sport manager to thoroughly investigate the business objectives of the target sponsor in order to provide the most appropriate property. The strategies of achieving the objectives described above are depicted below:
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To reach the target market, the sponsor supports properties/events that attract spectators and players with similar demographics to its products/services. This strategy provides brand exposure and likelihood of purchases of the product or service. To garner positive image transference from the event to the sponsor. This is important for those corporations that have had some form of negative publicity and are attempting to change this perception by benefiting from the “rub off” or halo effect (Farelly, Fahy & Quester n.d.). Many such organisations seek to sponsor properties whose image will define, enhance or even repair their own. This is also applicable to new businesses to a location/country who often sponsor events that benefit the local community. Aligning with a well received and recognised sports property in the community often positively affects the sponsoring corporation. To use the property as a platform to raise awareness of its products and services given the growing clutter and declining effectiveness of traditional advertising. Quite often sponsoring companies use this medium to showcase the performance level of its products e.g. sports shoes and the latest high technology outfits promoting speed and durability. To motivate employee s by involving in projects that is of value to them. This strategy is also used to scout for future employees. To strategically develop business to business relationships through hospitality events organised by property owners. Through the sponsorship of properties, the sponsoring company is able to establish a network with potential business partners who are spectators or co-sponsors.
According to Farelly et al. (n.d.), to effectively maximise opportunities of sports sponsorship particularly in linking sponsor objectives to sport properties marketing characteristics, the owners of the sports property must possess certain competencies namely:
Market oriented capabilities – these are the market intelligence behaviours required to understand the buying patterns and perceptions of partner target consumers Branding building capabilities – the competency to grasp the property’s value and infuse into sponsors’ brand. This requires a strong understanding of both brands, demographics and psychographics fit between existing or potential target markets of both parties, values represented by both brands for the target consumer and how these values can be communicated through marketing strategies to achieve sponsorship objectives Collaborative capabilities and rou tines is the mutual exchange of ideas and information between the sponsor and property owner to strengthen the relationship and develop creative methods to maximise returns to both parties (Farrelly & Quester 2005).
The capabilities highlighted are often the determining factor between successful and average sports properties.
Another method of identifying the “FIT” between sponsor and sponsee is by measuring the sport organisation’s brand equity and matching it to potential sponsor corporations brand qualities.
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2.3 Brand Equity One of the definitions of brand equity is the “set of brand assets and liabilities linked to a brand, its name, symbol that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers” (Aaker 1991). The customer is deemed to perceive a difference in the sport organisation’s brand from competitors, appreciate this differentiation and hence respond favourably. These factors are assessed through the association of the spectator or customer with the sports brand e.g. by participating in the sporting activities, from associations with the sports administrators and representatives and its reputation attained from sports performance.
The various dimensions are outlined by (Ferrand et al 2005) in his 6 approaches to measuring brand equity for sports organisation (Table 2).
Table 2 – Dimensions of measuring brand equity Dimensions Dimensions assessed Foundations The identity of the organisation must be consistent with its history and foundation as they form the bases of the brand. Foundation is defined by its: brand heritage (experience and reputation of the brand), brand vision (where it wants to be) and brand identity (set of associations that brand stands for and wishes to create or maintain). Legal Protection Protection of investment put into a brand e.g. trademark, patents, copyright, registered design, names and trading styles. Knowledge The awareness (recognition or presence in mind) and image (manifestations, associated by an individual to a brand, an enterprise or idea) of a brand Experience Sum total of interactions that a person has with a sport organisation’s services, product, people and processes. Relationship The connection between two or more people or organisation to establish loyalty. It encompasses 3 dimensions: 1. Content (nature of expectations fulfilled in exchange) 2. Duration (length) 3. Intensity (frequency and involvement) Stakeholders The number, characteristics, the structure and nature of the relationship of parties to the sports organisation. Source – Ferrand & Torrigiani L (2005), “Marketing of Olympic Sport Organisations ,” p11-33
For the sports organisation, managing the brand is crucial as it brings value to itself and its stakeholders. Hence, the sports organisation must further build on the sixth dimension to thoroughly attain a comprehensive knowledge of its stakeholders and their expectations.
2.4 Stakeholder Theory Stakeholder theory views the corporation as a collection of internal and external groups, called stakeholders, originally defined as those who are affected by and/or can affect the achievement of the firm’s objectives (Freeman 1984 as cited by Mitchell, R., Agle, B., and Wood, D. 1997).
These stakeholders are generally classified into two groups:
“primary as they have formal, official or contractual relationships and have a direct and necessary influence upon the organisation whereas secondary stakeholders are diverse
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and include those not directly engaged in the organisation’s econom ic activities but are able to exert some influence or can be affected by the organisation ” (Thompson 1992 as cited by Polonsky 1995).
In essence, for any corporation in business it must accept the fact that in order to successfully achieve its business goals, it is responsible to numerous internal and external stakeholders. Each of these stakeholders has different expectations relating to the firm’s performance and quite often causes conflict between the various parties. Thus, the stakeholder theory strategy helps the organisation identify who its stakeholders are and which ones deserve the attention of managers Mitchell et al (1997).
In identifying stakeholders, Polonsky (1995) suggests the use of a stakeholder management process. For the purposes of this project only two of the process steps are highlighted. These are:
i. Identification of relevant stakeholder groups in relation to the issue being addressed (through use of diagrammatic representations of all exchanges) ii. Determination of their importance, stake and expectations
The determination of the importance is facilitated by Mitchell et al (1997) theory of stakeholder identification and salience. It is based on stakeholders’ possession of one or more of three relationships attributes namely: i. The power of stakeholders to influence the company ii. The legitimacy or appropriateness of the claims that stakeholders have on the company to address the issues and iii. The urgency with which these interests need to be addressed.
Mitchell et al. (1997) stakeholder salience theory is an attempt to understand a manager’s thinking to determine what they really pay attention to as they weigh stakeholder concerns in their policy decision making. In this typology, the three principal determinants of salience - power (the ability of the stakeholder group to bring about outcomes that it desires despite resistance), legitimacy (the extent to which the stakeholder group’s relationship with the firm is socially accepted and expected), and urgency (the degree to which the stakeholder group’s claim is time-sensitive and of critical importance to the group) – combine to produce seven different types of stakeholder groups, each with a predicted level of salience for managers of the firm in question.
In facilitating the identification of the level of stakeholder influence, Mitchell et al. (1997) formulated a stakeholder typology or classes of stakeholders (Figure 4).
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Figure 4 – Stakeholder Typology Source - Mitchell, Agle & Wood, (1997) “Toward a theory of stakeho lder Identification and Salience – Defining the principle of who and what really counts”, Academy of Management Review, Vol 22 No. 4, p874
Mitchell et al’s typology can be summarized in a table (see Table 3).
Table 3 – Summary of the Stakeholder Identification & Salience Theory
Stakeholder Attributes Stakeholder Stakeholder Power Legitimacy Urgency Type Salience Yes Yes Yes Definitive High Yes Yes No Dominant Moderate No Yes Yes Dependent Moderate Yes No Yes Dangerous Moderate Yes No No Dormant Low No Yes No Discretionary Low No No Yes Demanding Low No No No Non-Stakeholder None
All three attributes (definitive stakeholders) result in high salience. Two attributes (dominant, dangerous, and dependent stakeholders) result in moderate salience. One attribute (dormant, discretionary, and demanding stakeholders) results in low salience. Groups with none of these attributes are not considered stakeholders and possess no salience.
Both stakeholder identification processes is helpful as it assists the sports organisation: i. identify stakeholders from non-stakeholders and ii. establish the primary and secondary stakeholders
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2.5 Relationship Marketing The changing importance and influences of stakeholders in business relationships calls for serious strategic approaches by the sports organisation. Sponsorship and stakeholder theory developed thus far point to an increasingly important trend in business marketing, that of relationship marketing.
Parvatiyar and Sheth (2000) as cited by Ferrand et al. (2005) define relationship marketing as “the on-going process of engaging in cooperative and collaborative activities and programmes with immediate and end -user customers to create or enhance mutual economic value at reduced cost.”
In this definition, three dimensions can be gathered: Stakeholder parties are the stakeholders involved in the relationship programme. This requires the manager to understand the stakeholder theory (refer section 2.4). As identified by Chappelet et al. (2005), sports organisations have a diverse range of stakeholders due to the “new actors encircling the Olympic system” and includes the government, Ministry of sports, international sponsors, NOC’s, Olympic organising committees, international federations, sponsors and national media, national federations, clubs athletes and leagues. The property manager is faced with the task of selecting the most appropriate parties. Depending on the objectives of the relationship, single (called market based relationship marketing) or multiple (termed network based relationships) partnerships is formed (Moller & Halinen 2000). In relation to sponsorship, the manager forms relationships with parties depending on the relevancy and salience of the stakeholders. Programmes are the visible and operational activities achieved through the parties sharing of resources and competencies. Parties Purpose or benefits are the goals of these parties as per their strategic and marketing objectives
In selecting the most appropriate partner, Ferrand’s relationship marketing diagram below sets out issues that must be considered by the sports organisation to maximise benefit from stakeholders asking the questions of “which parties, which benefits and which programs”.
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Events National Suppliers Managers Federation
Players Supporters
Media Sport facilities Managers Which Benefits? Which Parties? Coaches Internet Surfers Which Programs? Companies
Local authorities Local Community Sport clubs Schools TV Spectators Figure 5 – The three dimensions of relationship formation
This literature review has provided a basic understanding of the sponsorship framework and provides a guideline in facilitating the aims of this project. At the same time, the theoretical frameworks has demonstrated the advancement in the level of sponsorship models and its application in the European and developed nations of the world, most of which are the focus of many texts on the subject.
For Fiji Volleyball and other sports organisations in similar economical and business climate, there are many models to learn from which can be modified to suit the environment.
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3 Methodology
3.1 Data Collection
Data was collected as a combination of primary and secondary research data. The primary data was generated principally through in-depth interviews and an on-line survey. The interview focused on existing and potential sponsors, Fiji Volleyball executives, stakeholders and sporting bodies.
The secondary data was obtained by collecting information from existing publications, articles, unpublished and published report and literature. This project sourced information related to sponsorship from internet sites, reports, articles and literature to help understand the fundamental concepts.
3.2 Survey Objectives
The survey objectives were to: 1. Establish Fiji Volleyball resources and competencies 2. Ascertain expectations of corporate organisations from a sponsorship partnership 3. Identify stakeholders, establish their relationship and expectations 4. Determine success factors of sporting bodies who have long term and successful sponsorship programs
The first objective was aimed at gathering facts to enable a diagnosis to be undertaken of the Fiji Volleyball Federation. In doing this, a better understanding of its current position and identification of its competencies and competitive advantage is made available. The SWOT analysis and Brand Equity assessment methods were used to analyse the information.
The second interview goal was to identify the objectives of sponsors in engaging in sports sponsorship. This was matched with the Fiji Volleyball resources and competencies. In analysing the relationship, the Importance -Performance Analysis method was used.
The third interview objective aimed at identifying the primary and secondary stakeholders. The information gathered was analysed using the stakeholder identification and salience theory model.
The final interview objective used benchmarking as a means of providing an insight into the best practices of successful sporting organisations.
3.3 Interview
The in-depth interview is to provide a comprehensive and qualitative coverage on sponsors, sporting body’s success factors, Fiji Volleyball resources, and stakeholder expectations. All the
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existing Fiji Volleyball sponsors were interviewed and another 6 randomly selected from a list of organisations published in the local media that have been involved in some form of sport sponsorship.
Participants were contacted, informed of the objectives of the research and invited to participate in the study. Some were provided with a letter of introduction (depending on the existing relationship) outlining the program and informed consent was obtained prior to the interview. For those that requested, the guide was emailed prior to the interview proper. Confidentiality was assured.
Interviews were conducted using an interview guide to ensure consistency of issues. Each interview lasted between 30-45 minutes, tape-recorded and transcribed verbatim. All interviews were conducted in person by the author. The final analysis was done after compiling the information in like segments based on literature concepts.
The same principle is applied for stakeholder interviews. Stakeholders are selected based on existing and potential relationships.
The in-depth interviews were divided into four sections – Fiji Volleyball, sponsors (existing and potential), competitors (top three sports) and stakeholders. The in-depth interview guide is shown in Annexure 2, 4, 6 and 8.
The interviews were conducted face-to-face. For the stakeholder’s interview, this was sent by email if the parties were located overseas. The one-on-one basis was advantageous as most of the parties interviewed were unaware of some of the terms mentioned so clarification from the interviewer helped in the flow of the questioning and answering.
The validity of the interview was through the author’s research into ensuring that the right person most capable to answer the company’s sponsorship program was interviewed. During the course of the interview, the author ensured that the question was elaborated if queried.
3.4 Questionnaires The on-Line survey aimed to obtain feedback from stakeholders on the level of relationship Fiji Volleyball has had with the same and their views on an ideal sponsorship program. It also was used as additional reference to perform the SWOT analysis and Brand Equity assessment.
3.5 Limitations There were various limitations in completing this project. One of the contributing factors was time. Due to the limited time, large corporations involved heavily in sports sponsorship were unable to participate in the survey.
Another limitation is the response rate from the on-line survey. Only 26.7% of the respondents in the survey responded (compared to the 100% rate of respondents that actually read the mail) hence not truly reflecting the views of a cross-section of stakeholders. Hence, the results of the survey may provide a bias towards those that willingly participated in the research.
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4 Development of survey instruments - analysing the current situation of Fiji Volleyball
4.1 Diagnosis of Situation The SWOT analysis and Brand Equity dimensions was derived after analysing information gathered from questionnaire and interviews with members of the executive board of the Fiji Volleyball Federation, stakeholders and comparison with other sports organisations. The results are shown in tables 4 & 5.
Table 4 - SWOT Analysis of Fiji Volleyball
Strengths Opportunities Large participation base at the recreational level 200% tax incentive for corporate sponsorship Resident FIVB recognised coach & instructor Growth in business interest in sports (sponsorship Top regional ranking of beach team opportunities) Regular and successful national events University scholarship programs for players Dedicated core administrators Strong national sports culture Regular column with Fiji Sun FIVB support programs Support from FASANOC & Min. of Sports Local govt. partnership for smaller indoor Product variety – indoor, grass and beach facilities FIVB recognised body 20% youth population size Established network with international volleyball Sport Tourism market group Untapped markets nationwide Established and loyal affiliated members International indoor sports facilities Inexpensive sport Harnessing the massive player base Technical training for technical officials High performance national team
Diagnosis of the Fiji Volleyball Weaknesses Federation organisation Threats Leadership Management of volunteers Poor revenue sourcing strategies Other national sports federations Deteriorating regional sporting results for indoor Competition for limited Government/NOC funds volleyball Rising hiring costs of indoor facilities Stakeholder partnerships Motivation of money as key determinant of International exposure for players playing sports Development structure from junior age group to Level 1 ranking on FIVB performance chart elite level (Level 5 is the top level) Full time administrator/officer Legal protection for properties Sponsorship plan Poor National Team Management Player welfare support Lack of structure in technical levels High turnover of administrators at grassroots level Lack of indoor facilities around the country
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4.2 Brand Equity Assessment
Table 5 shows the Brand Equity assessment of Fiji Volleyball.
Table 5 - Brand Equity of Fiji Volleyball
Dimensions Fiji Volleyball Awareness Considered a grassroots sport due to its large participation base National Federation developments has been very low with only recent media coverage of its national events on print, radio and television medium improving its visibility (due to weekly column in one of the print media) Internationally almost nil due to the lack of international exposure Regional rankings of its beach volleyball teams have raised the sports awareness Experience Sponsor importance and performance assessment indicate a low satisfaction with certain offerings by Fiji Volleyball. There is a need to generate more interest from the media to promote the sport in general and other programs and events, attract larger audience to its events, build up on its national/district profile and engage in activation programs that will stimulate sales and new business for sponsoring organisations.
Positive player experiences with the sport during national events have seen a major improvement with increasing number of teams entering competitions and spectator attendance increasing steadily since 2001 (reached 3,100 in 2004 for its national championship). The numbers of affiliates represent geographical locations from the 3 main areas of north, central and western. Relationship There are indications of stakeholder dissatisfaction because of the low involvement of the same in carrying out the objectives of the sport - Affiliate members are concerned with the lack of administrative, communication and funding support, FASANOC with the indoor sport performance at regional meets, Volunteers with the reward system and the national team with the preparation support. Stakeholders Poor partnership with stakeholders like affiliates and members, facility owners, media, sponsors and International Federation (FIVB). There is a lack of regular and consistent partnership programs to establish the brand and grow its client base. Most of the relationship is activated only during national events and when a national team is preparing for the regional meet like the Oceania Volleyball Championship and Pacific Games. Opportune areas like sports tourism market, grassroots and youth development is untapped. Legal Protection There is no protection from the legal system on the brand or any of its properties. This is a result of non-registration of a trademark or brand by Fiji Volleyball. Foundations The sport is perceived as a recreational sport dominated by Fijian unemployed youths from poor backgrounds.
The current situation with Fiji Volleyball is the association of being more a social or recreational sport. With its large recreational following nationally, it is suggested that the national federation exploit this competitive advantage by setting up a national development competition structure.
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The base level is formed using the existing grassroots level (village set up) around Fiji culminating in an elite level competition where the best district teams are represented. Through this structure, an organised competition is established, brands developed for each region which is a reflection of the Fiji Volleyball Federation corporate brand.
The Fiji Volleyball Federation management is recommended to create a new corporate brand, its associated sub-brands and legally protecting these. These branded competitions will form the foundation of the sponsorship structure for the sport.
Identifying the expectations of sponsors and linking to property characteristics
In determining the fit between sponsor objectives and Fiji volleyball offerings, the results of the in-depth interview (refer Annexure 1) were used to generate the required information.
The current package offered by Fiji volleyball offers a two tier sponsorship framework namely naming rights and advertising for its national events. It provides a brief profile of the sport with a description of the various national events, its target audience and estimated spectator attendance.
The two tier profile is also provided. In the naming rights tier, sponsors are offered most of the following benefits irrespective of the sponsorship investment in cash or in-kind. The benefits include:
1. naming rights to the national event, 2. ticketing, 3. opportunity for sponsor to open and close the event, 4. media exposure through daily coverage of the event, 5. sponsor mentions throughout the competition, 6. officials wearing sponsor shirts 7. on-site signage 8. media releases with sponsors logos 9. media conference announcing sponsorship
For those opting to take advantage of the advertising tier, on-site signage opportunities, sponsor mentions throughout the event and opportunity to provide products and business merchandise as prizes are the benefits on offer.
Out of all the sponsors that became partners, only two engaged in activation programs utilising advertising on print and radio media and prizes as part of spectator competitions during the event. Figure 6 shows a summary of expectations and objectives of sponsors and the offerings of the Fiji Volleyball properties.
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Figure 6 - Summary of objectives of sponsors and Fiji Volleyball events and properties.
National Championship Vanua Challenge The biggest national Existing Sponsor Objectives Top two associations volleyball event in Fiji of Increase brand exposure from central, western over 30 years Strategic partnership and northern rallies The largest indoor sporting opportunities with other 20 men and women event in Fiji complementary brands teams 14 associations Platform to communicate Around 240 players Over 50 teams business values Around 600 players over 3 days Capture target market Players are men and women 2 years of Business organisations aged between 13 to 35 from competition 13-20 year olds around Fiji Up to 1,500 Workers earning at least Mostly students with 80% spectators $15,000 aged between 19-25 years Sports organisations From north, central, eastern 7-12 year olds and western geographical Sports teams and spectators National Club League groups Fiji national residing 8 women’s and 9 More than 3,000 spectators overseas men’s team over 3 days All from central Players mostly Fijian Retain clients division Platform to build relationship with clients Goal is to develop Vulaca Championship personally clubs 3 day competition for the 7 Accountability of funds In its first year of central based affiliates Strong media presence of competition 42 men and women’s teams Competition over 6 Around 500 players aged sponsorship weeks between 12-35 years Attract large audiences to U19 and open grade events Spectators around competitions Low degree of sponsorship 200. Around 2,500 spectators clutter Over 20 years of competition Commitment to long term The most competitive event National Junior nd partnership The 2 largest volleyball Produce sport winning Championships event combinations Not well established. Positive association Aim for u/10, u/12, Product/sales increase u/15, u/17, u/19, u/21. National Secondary Schools Championships Team Fiji currently run Men and women’s beach and indoor volleyball teams Women’s Beach (top in Pacific and 2nd in Oceania) and Indoor separately to the FVF. (both 4th in region and unplaced in Oceania)
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The results of the survey regarding sponsor objectives support theoretical frameworks described in the literature review. Most show a general inclination of sponsor objectives towards the Sandler & Shani’s (1993 as cited by Pope) classification system namely:
1. Corporate objectives – the attempt to create a responsible corporate image in the community, tying the company to the success of the event and improvement to the sports image and sport performance, generating goodwill and positive association with the community. 2. Marketing objectives – mainly to promote the company’s brand and increase sales, strengthen relationship with existing clients and to gain new customers and opportunities for sampling 3. Media objectives – to generate visibility and publicity, reaching target markets during event, media coverage during event, post event media coverage, to get coverage in diverse range of media and cost effectiveness given the increasing clutter of traditional advertising methods.
An analysis of the fit between sponsor objectives and current Fiji Volleyball offerings identify the following points:
The apparent failure to set objectives of the sponsors at the beginning of the agreement to provide a clear basis of assessment. There was a basis to believe that the contract was hurriedly entered into without any in-depth discussion of the strategic goals and expectations of both parties. In the end, there was no basis of evaluation to measure the sponsorship effectiveness, hence contributing to the likely dissatisfaction of the sponsors. Fiji Volleyball offering’s principal benefit was opportunity for visibility and publicity for the sponsoring brand name which was cited as the most common sponsorship objective, the most desired benefit by the sponsors and the main criteria in determining the value of the proposals. There was a clear mismatch between the sponsor’s target market objective and the primary audience market of the Fiji Volleyball events e.g. business organisations, workings earning at least $15,000, 7-12 year olds and Fiji nationals residing overseas. There was no evaluation methods to measure the effectiveness of some of the identified objectives e.g. platform to communicate business values, produce sport winning teams, positive association and sales increase. It is evident that both parties failed to recognise certain aspects of the sponsorship management process particularly the evaluation and implementation of the sponsorship (Shank 1999 as cited by Parvez, Y., & Pervez, A., 2006). The congruency of the sponsors’ objectives with the strengths of the sports property should have been established from the outset before engaging in the exchange. In this case, the fit was in the offering of media publicity and visibility and community involvement but not the target markets of the sponsoring corporation. An agreement would have been advisable coupled with the specific identification of anticipated results at the start of the agreement to facilitate the measurement process at the conclusion of the partnership.
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The key differences identified include: 1. The assumption that sponsors preferred exclusive naming rights sponsorship rather than including other brands as co-sponsors. More than 50% of interviewed sponsors preferred to include co-sponsors that are complementary in their products, target market and image rather than be exclusive sponsors. 2. The fees charged to the sponsor represented only rights fees which entitled them to on- site signage, naming rights and mentions during the event. The additional exposure expectations required additional expenditure in the form of activation costs to fully realise the potential benefits from the sponsorship. The most common expectation was the access to media coverage on some, if not all, mediums. Fiji Volleyball relied completely on media coverage leading up to and during events, initiated by the media organisations themselves. 3. The sponsors corporate, marketing and media objectives require quantifying measuring sticks to assess the effectiveness of the sponsorship which was not mutually discussed at the beginning of the agreement. 4. There was no opportunity to build business to business relationships as there was incongruence between co-sponsors and target markets.
Therefore, the results of this survey indicate that the low retention and attraction rate of sponsors is due to various factors: 1. Failure by Fiji Volleyball to outline the property profile, demographics of audience, diverse media access and arrangements 2. Failure of Fiji Volleyball to articulate to sponsors of the necessity to leverage the sponsorship through activation strategies to fully realise the benefits 3. Failure by both sponsor and Fiji Volleyball to establish and cost the effectiveness measurement tools at the start of the arrangement to facilitate the evaluation and renewal process at the end of the arrangement and as hypothesised the 4. Failure to identify the sponsors’ objectives and match to offerings from the outset. The summary of target market by the existing sponsors indicate a mismatch between the sponsors target market and the property audience.
Nevertheless, indications are that there are opportunities to create properties to match sponsor target markets. The onus appears to be on Fiji Volleyball to re-design the package and differentiate through the various benefits available to match the objectives of existing and prospective sponsors. This may in fact expose a deficiency in the operational structure of the Fiji Volleyball Federation which had not geared itself towards servicing sponsorship agreements and therefore lacked the infrastructure to deliver to sponsors the expectations that they had.
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4.4 Assessing the perceived quality of the sponsorship offering
In investigating the satisfaction of sponsors with Fiji Volleyball’s offering performance, the Importance-Performance Analysis (IPA) method was adopted. The application of the IPA, introduced by Martilla & James (1997) has shown the capability to provide managers with valuable information for both satisfaction measurement and the efficient allocation of resources, all in an easily applicable format.
The attributes were identified from the results from a series of in-depth interviews with existing and potential sponsors and from information based on literature review that were deemed important by sponsors. These attributes formed the base of the importance performance survey to assess sponsors perceived quality of Fiji Volleyball’s sponsorship offering.
The importance and performance scores attained from the survey instruments were plotted onto a two-dimensional matrix, where arbitrary gridlines are established that reflect standards of service quality. For each attribute, the sponsors representative were first asked to rate its importance to the organisation when sponsoring Fiji Volleyball (using a 5-point scale) and then to assess how well Fiji Volleyball met the respective attribute (using a similar 5-point scale.) The mean ratings were computed based on the arithmetic mean of individually assigned values.
Since the goal of the Fiji Volleyball sponsorship program is to ensure that sponsors expectations are met at satisfactory levels, gridlines were placed at values of 3.0 to reflect standards of “important” and “satisfied.”
Once the measurement ratings are plotted, all points fall into one of four quadrants:
Keep up the good work – importance and performance ratings both meet or exceed service quality standards Concentrate here – importance and performance ratings both fall short of service quality standards Low priority – Performance scores do not meet the service quality standard but respondents do not place a high level of importance on the service Possible overkill – Performance scores meet or exceed service quality standards, but a low level of importance is assigned to this particular service.
The results of the 19 attributes as ranked by the sponsors are shown in Table 6:
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Table 6 - Measurement of sponsor satisfaction based on importance-performance ratings Mean Mean Importance Satisfaction Sponsorship Offering Attributes Rating Rating Property showcases community/social 1 responsibiity 4.75 3.50 2 Property administrators are well organised 4.50 4.00 The property increases brand awareness and 3 visibility 4.75 3.25 Extensive media coverage of the sport and its 4 events 4.75 2.75 5 Creating opportunities for long term partnership 4.25 3.25 6 Large attendance at events 4.50 2.50 Preparation of a post-event report/fulfillment 7 audit & accountability of funds 4.75 3.25 8 The contractual agreements are achieved 5.00 4.00 Property attracts desired demographics/target 9 market 4.00 3.25 10 Property offers title or naming rights 3.75 3.75 Contribute to development of athletes and 11 referees/ coaches 4.50 3.25 Involvement of our staff and families as volunteers/participant in associated 12 events/programs 3.25 3.50 13 Provision of hospitality benefits during events 4.25 3.50 Property offers category exclusivity as well as 14 complementary corporations as co-sponsors 3.75 4.00 15 Property attracts all ethnic groups to its events 4.50 3.25 16 Property has high national/district profile 4.50 2.75 Property association stimulates sales and 17 repeat business 3.75 2.75 Property sponsorship results in improved 18 administration and sport performance 4.75 3.50 Clear understanding of the sponsorship process 19 and its implications 4.25 3.50
The sponsors objectives of sponsoring the property is a mix of achieving both returns on investment measured through repeat business, increased sales and brand awareness as well as ensuring that the property, in this case Fiji Volleyball, benefits through improved management of administrators and technical officials and sport performance. For Fiji Volleyball, it is important to realise that sponsorship is a business investment with expectations of mutual benefits. In this case, the sponsors expect to be provided with the benefits of brand exposure, new business and at the same time the sport needs to demonstrate an improvement to its administration.
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The same results can be illustrated using a graph and grid which depicts a more graphical understanding of this method of analysis (Ferrand et al. 2005).
Figure 7 – Diagram of sponsor satisfaction with Fiji Volleyball based on Importance Performance ratings
5.40
4.80
4.20
3.60
3.00
2.40
1.80
1.20
Importance-Performance Rating 0.60
- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Sponsorship Offering Attributes
Mean Importance Rating Mean Satisfaction Rating
The upper line refers to the importance attached by the existing sponsors to specific services offered by Fiji Volleyball. The lower line refers to the satisfaction level for each service level attribute. This comparison clearly helps visualise the gaps. From the graph, 16 of the 19 attributes show large gaps
Further, this information can be shown on a matrix of the relative extent of expectations verses perceived performance. The importance performance provides Fiji Volleyball with a useful focus for developing marketing strategies.
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Figure 8 - Importance Performance Grid of Fiji Volleyball sponsorship offering
Extremely Important 5.20 A. Concentrate Here 8
4 4.80 B. Keep Up the Good 7 1 3 18 Work
6 15 11 2 16 4.40 5 13 19 4.00 9
17 10 14 3.60
3.20 12 Fair Performance Excellent Performance
2.0 2.4 2.8 3.2 3.6 4.0 4.4 4.8 2.80
2.40
2.00 C. Low Priority D. Possible Slightly Important
Legend 1 Property showcases community/social responsibility 12 Involvement of our staff and families as volunteers/participant 2 Property is well organised in associated events/programs 3 The property increases brand awareness and visibility 13 Provision of hospitality benefits during events 4 Extensive media coverage of the sport and its events 14 Property offers category exclusivity as well as complementary 5 Establishing a long term partnership corporations as co-sponsors 6 Large attendances at events 15 Property attracts all ethnic groups to its events 7 Preparation of a post-event report/fulfilment audit and 16 Property has high national/district profile accountability of funds 17 Property associations stimulates sales and repeat business 8 The contractual agreements are achieved 18 Property sponsorship results in improved administration and 9 Property attracts desired demographics/target market sport performance 10 Property offers title or naming rights 19 Clear understanding of the sponsorship process and its 11 Contribute to development of athletes and referees/coaches implications
The interpretation of the importance-performance grid is developed below:
A. Concentrate Here – The sponsors feel that extensive media coverage on the sport in general/ programs and events (4), large attendance at events (6), prominent national/district profile (16) and property association stimulates sales and new business (17) are very important but indicate low satisfaction with Fiji Volleyball’s performance.
B. Keep up the good work – The sponsors value all the other attributes and are pleased with Fiji Volleyball’s performance.
C. Low Priority and Possible Overkill – There was no rating in this quadrant.
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The result points out those priorities (indicated in Quadrant A) that must be considered by Fiji Volleyball in planning its future sponsorship program. These four areas are typical of professional sports marketing. Large corporate sponsorship is characterised by properties that attract large numbers of spectators to its events and have a high national profile as these provide the brand exposure, publicity and potential for new and repeat business. These exposures have seen corporate sponsors satisfied with the returns on their investment leading to renewed partnership. This is clearly evident for the major sport in Fiji – rugby union who enjoys massive media coverage, attracts major sponsorships and attracts large spectators to its events. However, to achieve this, there needs to be a significant increase in the resources directed at presenting and marketing the event itself.
4.4.1. Marketing Strategies to counter the unsatisfied attributes identified from IPA Marketing strategies can be developed to counter the four areas identified in the “Concentrate here” quadrant. These are:
4..4.1.1 Extensive media coverage for sport in general Develop an annual communications plan incorporating the activities of all affiliates, technical and executive board management groups. Employ a full time officer to regularly communicate with affiliates (committee/office bearers, competition progress report, team preparations) and use the Fiji Sun weekly column to disseminate information Develop and organise competitions and outreach with local councils spread throughout the year and around the nation
4..4.1.2 Large attendance at events Create spectacular and entertaining competitions for both players and spectators through innovate competition structures and activation programs Involve music and entertainment for target audiences of sport and sponsors Create competitions for participants and players and provide prizes from local sponsors as incentives Organise international events with Fiji Visitors Bureau to attract international market
4..4.1.3 Prominent national/district profile Develop properties with local councils and other stakeholders in key towns and city centres Target to set up associations in the western, northern, eastern and island nations of Fiji and sell sponsorships to geographically located business organisations and those planning to expand to new areas of the country
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Sell media, publishing, advertising rights to promote sport and generate nationwide interest
4..4.1.4 Property association stimulates sales and new business
Target sponsors linked to sport – ball, uniform, food, drink, transport, cell phone providers, playing and casual shoes Provide on-site sales opportunities.
4.5 Identifying the salience of other stakeholders to Fiji Volleyball property One of the assumptions of this project is that the poor result of attracting sponsors is attributed to poor network relationship. In order to determine its truth, a survey of stakeholders currently involved in exchanges with Fiji Volleyball was undertaken (refer Annexures 5 and 6).
The results of the survey indicated the following:
57% of respondents stated that Fiji Volleyball’s involvement with stakeholders in forming partnership programs was low Lack of consultation with associations and the various commissions (coaches, referees, games) to determine their needs No negotiation with media organisations for media rights or goodwill coverage as the sponsorship proposals promised media coverage to sponsors but this was not guaranteed No communication system with the international federation to provide update reports on the sport progress Absence of regular communication and involvement of affiliates in developing sponsorship agreements Properties are created in isolation by the Executive Board from the internal stakeholders of affiliates, clubs, teams and players. Hence, in order to improve on networking, firstly it is important to identify the stakeholders of Fiji Volleyball. A two-step process based on theories outlined in the literature review is adopted:
1. Brainstorming of relevant stakeholders through use of diagrammatic representations of all exchanges Polonsky (1995) depicted in figure 9 and identifying their stake and expectations (Table 8) in the relationship. 2. Assessing the position of each stakeholder based on Mitchell’s et al (1997) stakeholder identification and salience theory (table 9).
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Figure 9 - The Stakeholder Identification Process
Players, Federation Clubs Referees of Int. Com. Volleyball FASANOC Ministry of Youth & Sports
Games Com. Sponsor
Coaches Com. FVF Schools
Fiji Sports Local Council Municipal Councils
University Ministry of the South of Pacific Tourism Fiji Visitors Associations Media Bureau
Figure 9 shows the apparent stakeholders of the Fiji Volleyball Federation. It ranges from its internal customers – Coaches, Referees and Games (competitions) Commissions, Players, Clubs, Associations to its external partners – Federation of International Volleyball (FIVB), FASANOC (National Olympic Committee), Fiji Sports Council (sports facilities providers), University of the South Pacific (sports scholarship providers), Fiji Visitors Bureau & Ministry of Tourism (sport tourism facilitators), Local Municipal Councils (local area developers), Schools (development programs teachers) and Media (news reporters).
These stakeholders are based on the current relationship Fiji Volleyball is engaged in as it implements its existing programs. In facilitating the salience of each stakeholder, an identification of the stake and expectations of each member to Fiji Volleyball is made (Table 8).
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Table 8 – Identifying the stake and expectations of stakeholders STAKEHOLDER STAKE EXPECTATIONS Associations Financial affiliates to the federation and Entertaining and well-planned events they produce the players for the national Maximum coverage of sport in action teams and the teams for national Provision of playing equipment, funding for competitions and promotes the sport at team travel and negotiation for playing community and district level facilities Technical training support Players and Clubs Participate in the 6 months weekly league Regular national events and attends all volleyball tournaments Overseas tours for national teams around the country Increased prize money Coaching expertise On-going volleyball programs throughout the year Administrative assistance at club level Media Provide general sport coverage and other Networking events like club, district and national Information dissemination competitions Fresh interesting news Accessible media relations contact Fiji Sports Council Provides the outdoor and indoor playing Use of facilities facilities FASANOC Body that represents all national Delivery of strategic plan, conduct of AGM’s, federations to international federations, hosting of club, national and district multi-sport regional events, Government competitions and provides administrative and financial Participation at regional and international assistance for development programs and competitions Team Fiji preparations Gold medal at Pacific Games 2007 Federation of The owners of the sport internationally and Implement national championships, national International provides equipment and technical support teams, coaching programmes, youth Volleyball (FIVB) for development programs development projects for beach and indoor Sponsors Provides the cash and in-kind partnership Refer to Section 4.3 support to carry out the sport’s programs Coach and Referees Provides the technical support to affiliates Technical training support Commission for coaching and referee and prepares the Organising of foreign teams to play national national teams in regional meets. The teams referees represent the nation in Funding of national teams international and home games. Funds to recruit members Clinics and outreach programs around Fiji Remunerate officials during events Schools Provide the learning curriculum of the Host annual national juniors championship sport to students and provides the young Provide transition program for students from athletes for junior development programs schools to club level competition and Schools Cup events Conduct schools outreach program for sport development Games Commission Responsible for organising and preparing Coordination of affiliates to national body national events and other tournaments as Sponsors to run events requested by members and general public
Ministry of Sports Provides outreach programs to districts and Develop a strategic plan islands around Fiji and partly funds Outline annual plan of national events and
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national team overseas tours overseas tours Promotion of sport around the country Local Councils Provides the playing and training grounds Create opportunities to promote locality in for clubs and teams sports and entertainment and increase business opportunities for clients
University of the Provides sports scholarship for volleyball Regular feedback on level of fitness and South Pacific tertiary students and offers sports training session progress on national players management courses who are students Regular fitness test assessments and skills development for student athletes Fiji Visitors Bureau Responsible for the promotion of sport Staging of volleyball events in Fiji to attract & Ministry of tourism in the country more tourists from the American and Asian Tourism continents during the September to April months Development of a strategic plan
The current relationship, as indicated from the stakeholder survey, is very loose and uncoordinated. There are many opportunities to further develop the sport with the existing stakeholders including the creation of totally new properties to upgrade the youth competitions, sport tourism market and community based programs, characteristics considered important by existing and potential sponsors and stakeholders.
Given that all the stakeholders have a stake in Fiji Volleyball, their importance however is at various levels. The stakeholder salience assessment provides a framework to rank these stakeholders and at the same time provide the basis to appropriately link these to the most suitable partnership programs to activate the relationship.
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Table 9 - Fiji Volleyball Federation stakeholder identification & salience assessment
STAKEHOLDER STAKEHOLDER ATTRIBUTES STAKEHOLDER STAKEHOLDER Power Legitimacy Urgency TYPE SALIENCE Associations Yes Yes Yes Definitive High Clubs Yes Yes Yes Definitive High Media Yes Yes Yes Definitive High Fiji Sports Council Yes Yes No Dominant Moderate FASANOC Yes Yes Yes Definitive High FIVB Yes Yes No Dominant Moderate Players Yes Yes No Dominant Moderate Sponsors Yes Yes Yes Definitive High Coach. Commission No Yes Yes Dependent Moderate Referee No Yes Yes Dependent Moderate Commission Schools No Yes Yes Dependent Moderate Games Commission Yes Yes No Dominant Moderate Ministry of Sports Yes Yes Yes Definitive High Local Councils Yes Yes No Dominant Moderate University of the Yes Yes Yes Definitive High South Pacific (USP) Fiji Visitors Bureau Yes Yes No Dominant Moderate
The stakeholders’ identification process identifies the many stakeholders of Fiji Volleyball. However, with the knowledge of the level of salience of each stakeholder, the next step is to match the Fiji Volleyball properties and the stakeholder. The stakeholders that Fiji Volleyball will form partnership programs with are those identified as definitive, defined as those with high salience. The activation programs pursued with relevant stakeholders is expanded in the next chapter.
4.6 Conclusion
This project set out to determine the reasons underlying the poor response of corporate organisations in sponsoring Fiji Volleyball and its programs. It looked at identifying factors that create and maintain the interest of sponsors, examined the current management structure of Fiji Volleyball and undertook a process of identifying stakeholders to establish the most important ones.
The project’s methodology included interviews with Fiji Volleyball executives, sponsorship directors of three sporting federations, marketing managers of existing and potential sponsors for Fiji Volleyball and selected stakeholders. Further, an on-line survey was conducted to provide feedback from stakeholders on the level of relationship with Fiji Volleyball, their views on an ideal sponsorship program and the perceived strengths, weaknesses, opportunities and threats of the Federation.
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The analysing of the information was undertaken using the SWOT analysis, Importance Performance Analysis, Stakeholder Identification and Salience and benchmarking methods.
From this analysis, the project found that the current situation of Fiji Volleyball reflects the general amateur status of sports in Fiji and its struggle to satisfactorily act in accordance with the expectations of corporate sponsors. Despite the good intentions of legislative acts designed to increase commercial sponsorship to sports, the survey concludes that amateur sports organisational set ups are not designed to keep up with the demands of sponsors.
Sponsors are corporations with business objectives and likewise expect sports organisations to operate in a similar way. The expectations of these sponsors are diverse and for a sports organisation to provide this service, it requires substantial resources which it does not have.
Despite the literature review pointing out the characteristics of sport sponsorship exchanges, the overall observation is that the commercial sponsorship market in Fiji is in its infant stage. The theoretical frameworks do not hold for an amateur sports organisation like Fiji Volleyball as the environment is not supportive of such operations. However, as seen in the operations of the two major sports in Fiji, the employment of full time professionals and engagement of marketing and sponsorship experts to operate its activities have proved successful in attracting and keeping the sponsors.
This is supported by the results of the Importance Performance Analysis which demonstrated that sponsors most important benefits are linked to commercially inclined characteristics.
Further, the analysis of stakeholders’ relationship showed a strong absence of coordination and partnership. This clearly reflects the human resource lack in the organisation. The inability to establish and maintain on-going relationships with identified stakeholders is of grave concern to the executive board of the Fiji Volleyball.
Nevertheless, the opportunities and strengths associated with the sports organisation provides a platform to start with. There is no doubt that Fiji Volleyball owns properties that have potential to take the sport to the next level. The Federation will have to consider employing full time staff or enter into a partnership with a commercially oriented corporation who possesses the market orientation and brand building capabilities necessary to satisfy modern relationship marketing trends.
The current sponsorship package of Fiji Volleyball requires additional and creative activation strategies to leverage the sponsorship investment and provide benefits customised to sponsors objectives to fully realise its potential. It must take into account the needs of its internal stakeholders like technical officials, affiliates (clubs) and national teams and external stakeholders like commercial sponsors, Ministry of Youth & Sports, FASANOC, Fiji Visitors Bureau, University of the South Pacific and the media before engaging in major events.
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Sponsorship has become a necessity for any sports organisation if it is to progress further. Until this is embraced by Fiji Volleyball, the sporting body will continue to lag behind with development at grassroots, national and international level. This may well require a major overhaul of the operational structure of Fiji Volleyball that will better manage the properties and better leverage the sponsorship market.
To manage the recommendations, the executive board will call a meeting of all its affiliates to advice of the proposed changes and its advantages and sought their consent to be part of the program. The changes will be implemented in phases beginning with the recruitment of full time administrative/sponsorship and programs personnel responsible for setting up the policies and procedures for the Sponsorship & Marketing department and Programs unit. Members of the Executive with experience in these two areas will provide supporting roles to the new recruits.
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Towards a development of a partnership program
The results of the survey indicate the inability of the current FVF structure to maintain the necessary relationship with sponsors and stakeholders. These sponsors have viewed extensive media coverage, high national sport profile, large attendances at events and events that result in new and repeat business as very important factors in engaging in sponsorship. Hence, these issues are considered in the development of new programs with stakeholders, design of the sponsorship program and the streamlining of Fiji Volleyball’s organisational structure.
Given the diagnosis of the Fiji Volleyball brand and its resources and competencies, competitor strategies, the recommendations of this project include: 1. Prioritising Fiji Volleyball stakeholders 2. Improving the quality of existing offerings for important stakeholders 3. Creating new offerings 4. Reinforcing the relationship between Fiji Volleyball and its stakeholders and among the stakeholders using collaborative programs 5. Formalising and monitoring process in order to deliver the desire quality 6. Allocating the resources (technical, financial and human) in order to implement the programs
5.1 Development of a sponsorship operational implementation plan for Fiji Volleyball For the sponsorship and marketing manager, managing the network based relationship marketing entails coordinating activities with the many parties, mobilising and controlling critical resources through relationships with them. In relation to sponsorship, the manager forms relationships with parties depending on the relevancy and salience of the stakeholders. The selection of stakeholders is a result of the stakeholder identification and salience process, the matching or congruency in sponsor partner objectives and communication medium and the use of the 3 dimensions of relationship marketing.
5.1.1 Strategy One – Prioritising the stakeholders, creating and modifying existing properties and linking to the identified primary stakeholders through relationship marketing
The initial step in this strategy is to re-brand the sport’s image and apply a consistent branding image to its properties. In this case, a Corporate brand representing Fiji Volleyball will be designed together with sub-brands like “Volley” incorporated into the various properties. The properties are either existing ones that are re-modified or newly created ones to match the target groups of sponsors identified from the survey. To protect the investment, the corporate and sub- brands will be legally protected as a registered trademark with the relevant authorities.
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These new properties or offerings are aimed at branding the experience for targeted customers and recreating a new image for the sport in Fiji. In the activation programs identified below, the important stakeholders are pursued through establishing collaborative programs hence strengthening the existing poor relationship and increasing awareness of the sport at recreational (village) and competitive levels (clubs and district) to the young and older target markets.
Table 10 – Activating properties through relationship marketing with stakeholders Property Stakeholders Benefits Activation Programs U21Volley ANZ, Fiji Visitors Bureau, Southern To promote service Tour Operator, Information World, Total Events, Oceania Access target Point, Spectator competition, Volleyball market SMS competition for Expose brand secondary audience Improve competition level VolleyOpen Affiliates, Media, Promote product Inflatable for kiddy castle and Xoolu, Powerade Drink, performance billiards games , Spectator Asics/Mizuno supplier, Billiards Access target competitions , VolleyXP Equipment supplier, Art & Soul, market promotions for 2 youths from dance groups, Power Jammer, each association , Volleyba ll Associations Awards Function
VolleyChallenge Fijian Holdings Ltd, Local Council, National pride Discounted training rates for Affiliates, Media, Community teams leading up to event , Xoolu, Powerade Drink, responsibility spectator competitions with Asics/Mizuno supplier, Billiards Promote local supplier products as prizes Equipment supplier, Art & Soul, community Clubs Promote product performance VitiVolley at Olympic Solidarity (FASANOC) & Olympism Camps for kids aged 15 -20 Olympics 2012 Coca Cola, FIVB, USP, Schools, promoted in years(lay foundation for Ministry of Sports Volleyball individual and team skills and develop youths) BeachVolley Fiji Visitors Bureau, Warwick & To promote product Competitions Promotions Outrigger & other hotels & Pepsi, and hotel facilities “Gold at 2007” Sportsworld, Television, in Nadi, Savusavu, Suva and Rakiraki VolleyCraze Fanta Brand exposure, Use of celebrity endorsements (Coca Cola), FBCL and Xoolu, attract target for no-alcohol event , National Center for Health market, Capture Customers engage in mobile Promotion, Local Council, market share, phone voting for winners , McDonalds Identifying young Inflatable structure , Games, talents for Go Active launch before the international games, 1 day seminar where exposure and star athletes are invited to talk Olympics 2012 core about active lifestyle and how
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group sports has changed their lives
VolleyJuniors National Center for Health Community issues Celebrity endorsements, Promotion, AIDS awareness promotion, promote school giveaway competitions, campaigns, brand and product school competitions use
ParkVolley MYEOS, McDonalds, Asco Motors, Develop the sport Radio and television de layed Municipal Councils & Nestle Milo Community based coverage Kids Fun Program – entertainment, Games and competitions activities Go Active launch before the games HibiscusVolley Associations, Fiji TV, Vodafone, Brand exposure Games and competitions , Event organisers Community VolleyXP for kids responsibility Corporate Volley Interiorz (Fiji) Ltd and Supreme Promote business Team Competition Fuel, Courts products Hospitality events during Business to business competitions and a reception networking at conclusion of the event VolleyXP MILO, Suva/Lautoka City Council, Sports Experience, Participant games , JR White or Sportsworld , USP promote USP All Inflatables , guest appearance Sports Program Rounder program, by celebrities, overseas experts, competitions
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5.1.2. Strategy Two – Formulating a sponsorship operational implementation plan Given the rebranding exercise and the newly developed properties, a framework is devised for the sponsorship and marketing office to guides its operations. This framework aims at monitoring the process and allocating the resources. The framework includes its objectives, revenue target, sponsorship pyramid, program, operational plan, staffing and organisational structure.
5.1.2.1 Objectives of sponsorship The objectives of the sponsorship plan are: i. To establish partnerships that includes profit-sharing arrangements and commitments to ensure that members are well supported to administer their programs and provide maximum exposure for the sponsors.
ii. To increase awareness and target matching the top sports of rugby union and football in sponsorship income, sport participation and media coverage.
5.1.2.2 Revenue Target The target for the sponsorship plan is $1.82 million per annum for the next 3 years.
5.1.2.3 Sponsorship Pyramid and Program
Viti Volley Partners
FIVB Supporters
Official Suppliers
Major Events Supporters
Figure 10 - Sponsorship Pyramid Program
The hierarchy of sponsorship is divided into four levels: 1. VitiVolley Partners 2. FIVB Supporters
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3. Official Suppliers 4. Major Events Supporters
The profile of each level is presented in Table 11.
Table 11 - Sponsorship Program
Sponsor Target & Objectives Value Key Benefits Category VitiVolley Target FDJ$200,000 VIP Tier 1 - naming rights to Tier 1 program - Partners 10 partners per annum for Tier association and district team called by 1 (4) sponsor name, District team outfitted in Objective sponsors’ corporate colours/logo to national Develop the sport at FDJ$100,000 for events, all clubs to have sponsor logo on community level and Tier 2 (4) uniform, Logo on supporters shirts and other maximise exposure of the merchandise, naming rights to the national sponsoring brand FDJ$20,000 for Tier teams and a choice to naming rights for an 3 (2) affiliate outside central division.
Tier 2 – Naming rights to Tier 2 program, Naming rights for association and District team uniform with logo
Tier 3 – Naming rights to Tier 3 district team only
Plus other Benefits such as: § on-site signage during weekly competition & all Fiji Volleyball national and international events § sponsor receptions for networking purposes § media backdrop announcing sponsorship deal and during any media opportunities § media releases depicting sponsor name/logos § Sponsorship Recognition gift § Web page links § Logos on events programs
FIVB Target FDJ$50,000 VIP per § On-site signage at all national events Supporters 5 in-kind sponsorship sponsor per annum § Logo on all promotional materials (equipment) § sponsor receptions for networking purposes Objective § media backdrop announcing sponsorship To localise global brands deal and during any media opportunities
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associated with the sport § media releases depicting sponsor internationally and name/logos promote it as volleyball § Sponsorship Recognition gift specific brands § Web page links § Logos on events programs Official Target FDJ$50,000 – § Logos on all promotional materials Suppliers 10 suppliers in the areas of FDJ$100,000 VIP including website links publishing, Media, per supplier per § On-site signage at national events Merchandise, annum § Information Technology to host website Beverage, and sell merchandise for sport Airline, § sponsor receptions for networking Information Technology, purposes Office Supplies, § media backdrop announcing sponsorship Transport, deal and during any media opportunities Fuel, Entertainment and § media releases depicting sponsor Tour Operators name/logos § Sponsorship Recognition gift Objective § Logos on events programs To promote product performance and improve image of the sport
Major Target FDJ$20,000 per § Hospitality– VIP access, parking space, Events 10 partners in event sponsor ticketing partners National Center for Health § Naming rights to a program e.g. Promotion, McDonalds, McDonalds “Get Active” for health Nestlé, Sportsworld, promotion leading up to VolleyXP and Vodafone, Outrigger and VolleyCraze other hotels, Fiji Visitors § Intellectual property rights to VolleyXP Bureau and VolleyCraze. § Ticketing with sponsor name & logos Objective § Tent and on-site signage Increase brand exposure, § Officials with partner name/logo community image and lift § Advertising space in event program sport image Note – Refer to Annexure 13 for conditions on Tier 1-3 ratings
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5.1.2.4 Operational Execution Plan
Table 12 – Operational Execution Plan TASK OBJECTIVE PROPOSED DATE OF ACTION 1. The Executive Board to make To obtain endorsement from all affiliates on the End of September a presentation to all proposed sponsorship plan 2006 for the association Presidents & To outline the conditions of being part of the presentation Secretaries program – Tier 1, Tier 2 and Tier 3 ratings To devise an administrative and marketing plan October to December for each affiliate and outline the for marketing plan communications/evaluation methods to assess sponsorship effectiveness
2. Executive Board to present To negotiate rights fees and sell properties Merchandise and proposals to other To identify the merchandise and publishing Publishing partners stakeholders partners by beginning of To seek partnership consent November 2006 3. Design and legalise the new To launch the professional Volley brand and its Design and brand and properties associated new properties namely VitiVolley, legalisation in BeachVolley, ParkVolley, Hibiscus Volley, November/December ActiveVolley, VolleyCraze, Corporate Volley, 2006 EliteVolley, VitiVolley at Olympics 2012 and VolleyXP Launch in January 2007 4. Apply for the IOC Team To launch the VitiVolley at Olympics 2012 via a Apply in November Support Grant for 2008- media conference 2006 2012, identify the team coach, squad and finalise program Announce program in February 2007 5. Set up office and recruit a To carry out sponsorship/programs February 2007 full time implementation plan and coordinate with all administrative/sponsorship & affiliates regarding administration matters Programs officer 6. Media Launch of first group To promote the new direction of support and the March 2007 of sponsors new sponsors 7. Launch the first Volley Event To convey the largest event in Fiji Volleyball’s April 2007 – the VolleyOpen calendar 8. Host the first sponsor To maximise exposure for the brand June 2007 reception 9. Launch the second group of To promote the new direction of support and the August 2007 sponsors new sponsors 10. Evaluate the sponsorship To amend or improve on strategies December 2007 program success rate
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5.1.2.5 Staffing the new Fiji Volleyball Operational Management Structure
It is recommended that the Fiji Volleyball Federation recruit two professionals for full time employment. The Administrative & Sponsorship officer is targeted to begin work in early 2007 and the Programs Officer later in the year as the programs is gradually implemented. The suggested job descriptions of the new positions are shown in Table 13 and 14.
Table 13 – Job Description of the Administration and Sponsorship Coordinator Position Administrative & Sponsorship Officer Reports to Director Sponsorship Purpose of the position Contributes to the mission of Fiji Volleyball by administering and supervising the programs of the sport, interacting with affiliates and the various commissions (referees, coaches and games), coordinating the national events, communicating with the media and sponsors. Specific responsibilities Administrative Record keeping – ensuring that all affiliates information, competition and program information is updated and reports submitted to the Board as required Organising of all national events in consultation with the Games Commission Director Coordinating the programs prepared by the Coaches and Referees Commission Updates of the SPORTSWARE database for all players, officials and members of Fiji Volleyball Preparing the annual budget for the sport and national teams with the Treasurer and other Directors for FASANOC and Ministry of Youth & Sports Preparing the annual events calendar Scheduling the training programs and coordinating international tours for the national teams in consultation with the coaches and managers Coordinating of volunteers during events hosted by Fiji Volleyball Updating of the Fiji Volleyball website Providing secretariat support to Executive Board
Sponsorship Servicing of sponsorship agreement and maintains regular contact with all sponsors Ensuring sponsors signage’s are in order at all national events Preparing of media releases and media conferences Providing post-event reports/fulfilment audits for sponsors Coordinating all special events and programs for sponsors Drafting the weekly volleyball update column with the Fiji Sun
Special Assignments Completes any special tasks assigned by the Executive Board Qualifications and Minimum of 3 years of related experience in administration, customer service, Competency Levels marketing or advertising Excellent organisational skills Strong verbal and written communication skills Knowledge of Microsoft Office – word, excel, powerpoint and publisher Able to travel out of Suva for up to 14 days per event Basic volleyball administration knowledge is desired but not necessary
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Compensation Full time position with a salary range of FDJ$8,000 to FDJ$12,000 per annum depending on qualifications and experience with FNPF and travelling allowance. Availability February 2007 Application Deadline January 17th 2006 Application Procedure Please provide a cover letter with your most up to date curriculum vitaé
Table 14 – Job Description of Programs Officer Position Programs Officer Reports to Executive Board of Fiji Volleyball Federation Purpose of the position Contributes to the mission of Fiji Volleyball by coordinating the programs of the sport Specific responsibilities Programs Undertakes all development and outreach volleyball programs around Fiji Coordinates and administers, through the Games Commission all competitions held under the auspices of Fiji Volleyball. Support the work of the Coaches and Referees Commission and implement a systematic training and development program for coaches and officials throughout Fiji. Provides reports to the Executive Board on all competitions conducts Recommends new programs based on market demand Qualifications and Experience as a volleyball player and coach Competency Levels Basic certificate in volleyball coaching Knowledge of FIVB rules Excellent organisational skills Strong verbal and written communication skills Knowledge of Microsoft Office – word, excel, PowerPoint and publisher Able to travel out of Suva for up to 14 days per event Compensation Full time position with a salary range of FDJ$8,000 to FDJ$10,000 per annum depending on qualifications and experience with FNPF and travelling allowance. Availability December 2007 Application Deadline January 17th 2008 Application Procedure Please provide a cover letter with your most up to date curriculum vitaé
The estimated costs for the setting up the proposed structure ranges from FDJ$16,000 to FDJ$20,000 per annum for the first year attributed to office set up and salaries expenses. The new full time officer will undertake the responsibilities of the Marketing, Sponsorship & Public relations and Executive Offices.
As depicted in the survey, the current structure of FVF is centralised with most decisions made by the executive board (see Diagram 1 in Annexure 3). The proposed structure is aimed at providing a more consultative and power-sharing approach with the directors of the various offices represented on the Executive Board (figure 12). The members and stakeholders are given opportunities to be part of the decision making process thereby strengthening the network base.
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Figure 11 – Proposed new Structure
Marketing, Sponsorship & Public Relations
Technical Team Office Fiji
Executive Board
Indoor Executive Volleyball Office Programs
BeachVolley Programs
The results of the survey indicated that the current structure of the FVF is incapable of sustaining the demands of the sponsors and fully exploiting the strengths and opportunities and dealing with the weaknesses and threats identified in the SWOT analysis.
The proposed structure is a semi-professional set up aimed at maintaining the amateur arm of the FVF and introducing a professional section to administer the sport. In this way, the parties concerned are not drastically impacted by the change and it allows for a more gradual transition from this very traditional amateur set up to a more professional unit.
As the transition is facilitated and the level of sponsorship support and its properties increases, the structure begins to fully absorb sports professionalism by which time, the franchise of properties concept is introduced.
The amateur portion namely the technical and executive offices will be largely driven by volunteers and volleyball technical experts. The segments to be commercialised are the marketing, sponsorship & public relations (includes merchandising, publishing and media rights), the Team Fiji, beach and indoor volleyball properties (shaded regions) which targets business ventures to operate its activities or purchase its rights.
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This recommendation proposes that as the professional operations are developed, their activities are outsourced to a commercial operative who would act as franchisee of Fiji Volleyball. This structure has the potential to apply right down to the current village levels of recreational volleyball by operating commercially viable competitions and development programs for the members of Fiji Volleyball.
Finally, these recommendations will be presented to the executive board that will in turn make a presentation to its affiliates to seek their consensus. The change is aimed at a gradual change from the current set up and is targeting a one year transition phase.
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7. Abstract In English
Corporate sport sponsorship is a global phenomenon that has impacted the growth of sports around the world. In Fiji, the recent 2003 South Pacific Games and the 200% tax incentive introduced by the Fiji Government saw the growth of the local sponsorship market. However, for Fiji Volleyball commercial sponsorship has not been fully explored, nor has it recognised its potential in the local market.
This project takes a broad examination of the commercial sponsorship market for sport in Fiji and identifies the factors that create and maintain sponsors interest. It examines the current structure of Fiji Volleyball to determine its effectiveness in both attracting and maintaining commercial sponsorship support for its activities and providing for the needs of its stakeholders.
Theoretical frameworks relating to sponsorship, brand equity, stakeholder theory and relationship marketing is investigated to understand sponsorship as it relates to sports properties. The literature review found that the Fiji sponsorship market is comparatively young to its European counterparts.
The findings of the empirical part of the project conclude that the current Fiji Volleyball operational management structure is incapable of sustaining the demands of the sponsors and stakeholders.
The project recommends creating partnership programs targeting identified stakeholders and streamlining the operational management structure to incorporate a semi-professional model. This recommendation proposes maintaining the amateur operations and simultaneously includes a commercially driven office focusing on the sponsorship and marketing of the sports properties. As the professional operations are developed, their activities are outsourced to a commercial operative who would act as a franchisee of Fiji Volleyball.
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8. Abstract In French Le sponsoring sportif est un phénomène global qui a concouru à la croissance du sport au niveau mondial. Aux Fiji, les récents Jeux du Pacifique Sud en 2003 et l'incitation fiscale de 200% introduite par le gouvernement ont contribué à la croissance du marché local du sponsoring. Néanmoins le volley-ball aux Fidji n’a pas exploré totalement cet outil marketing et n’a pas identifié son potentiel sur le marché local.
Ce projet fait une analyse élargie du sponsoring sportif aux Fidji et identifie les facteurs qui créent et maintiennent l'intérêt des sponsors. Il examine la structure actuelle du volley-ball aux Fiji pour évaluer son efficacité, ainsi que son niveau d’attractivité et sa capacité à satisfaire les attentes des sponsors concourrant au développement de ses activités.
Les cadres théoriques concernant le sponsoring, le capital marque, la théorie des parties prenantes et le marketing relationnel ont été analysés pour comprendre le sponsoring en relations avec les droits détenus par les organisations. Cette analyse a permis également de constater que le marché du sponsoring aux Fiji est jeune comparativement à l’Europe.
Les résultats de la partie empirique du projet permettent de conclure que la structure du management opérationnel du volley-ball aux Fiji n’a pas actuellement la capacité de satisfaire les attentes des sponsors et de ses parties prenantes.
Le projet recommande de créer des programmes de sponsoring ciblant les parties prenantes les plus compatibles et d’améliorer la structure de gestion opérationnelle en adoptant un modèle de semi professionnel. Cette recommandation propose de maintenir des bénévoles dans certains secteurs et d’inclure simultanément une division commerciale se concentrant sur le sponsoring et le marketing liés aux droits détenus. Durant la mise en œuvre de ces opérations, les activités seront externalisées en collaboration avec un commercial qui agira en tant que Fiji mandataire volley-ball.
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9. Annexure
9.1 Annexure 1 – Identifying the expectations of existing and potential sponsors’ on Fiji Volleyball sponsorship offering Between January and May 2006, an interview was conducted to determine the expectations of existing and potential sponsors from Fiji Volleyball. The interviewee were asked to define sponsorship, express their views on the reasons for engaging in sponsorship, criteria used to sponsor organisations/events, identify areas that improve sponsorship relationship, intended target groups through sponsorship, quality offering measurement and their most desired benefits from a sponsorship. The result of this survey is depicted using a graph as shown below:
Prospective Sponsors
9.1.1 Figure 12 - Reasons for engaging in sport sponsorship
Generate goodwill and positive attititude 34.78%
Increase public awareness of the company, the 30.43% product or both
Build business trade/increase sales 13.04%
Promote company culture/image 13.04%
Expolit Government's 200% tax incentive 8.70%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Despite government’s 200% tax concessions, it is not the prime motivating factor to engage in sponsorship. This could be due to the company using sponsorship as a key marketing strategy whose budget allocations are below the minimum threshold of $100,000.
It also can reflect a lack of awareness of the benefits to corporate organisations and the perception that the qualifying minimum sponsorship value is significantly high for the many number of small to medium sized business organisations. Nevertheless, it still provides an opportunity to pursue these organisations that are able to invest at least $100,000 in sponsorship support given the benefits they gain.
Majority of respondents (around 65%) engage in sponsorship to establish their brand in the community and promote themselves as responsible community corporations. Therefore, for Fiji Volleyball, it is important that partnership links are created with media or communication firms to provide an accessible platform of increasing exposure and awareness of a sponsor’s brand. In
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addition, engaging in programs/events at community or grassroots level that attract large audience at minimal expense is another focus of its business strategy.
9.1.2. Figure 13 - Key criteria used by sponsors when analysing sponsorship proposals
Opportunities to increase brand exposure and awareness 26.92%
Platform to promote company goodwill and image 23.08%
Property/sport organisation managed by committed professionals 15.38%
Alignment of property objectives with company goals 7.69%
Post-event report on accountability & transparency of funds 7.69%
Confidential criteria assessment 7.69%
Category/Product exclusivity 3.85%
Involvement of employees 3.85%
Access to product target market 3.85%
0% 5% 10% 15% 20% 25% 30%
Consistent with results from the previous question, the two main criteria for evaluating proposals are linked to brand exposure and positive image in the community (50%). Of mention also is the demand by sponsors that sport organisations are expected to be administered by business-minded people who have some form of organisational and marketing skills. For Fiji Volleyball, it must consider recruiting volunteers or full time administrators with these skills or provide basic training for existing volunteers.
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9.1.3. Figure 14 - Areas of improvement for sports properties
Administrators to fully understand the sponsorship 60% process
One key point of contact between sponsor and 20% sponsee
Accountability of funds and regular communication with 10% sponsor
Events that focus on kids 10% development programs
0% 10% 20% 30% 40% 50% 60% 70%
The areas identified prove the urgency in employing a full time officer to deal with all sponsorship matters from the daily point of contact to proper post-event report preparations.
9.1.4 Figure 15 - Sponsors target market demographics
Youth aged 18-25 26.7%
General public 20.0%
Sports 13.3% organisations/teams/clubs/players/teachers
Local community 13.3%
Corporate organisations 6.7%
Two largest ethnic groups 6.7%
Shopping mothers 6.7%
Children under five 6.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% The sponsor target markets show a diverse range of groups due to the different business types of organisations interviewed. It provides an indication to Fiji Volleyball of the type of businesses available to target for future newly created properties.
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9.1.5 Figure 16 - Property characteristics typically analysed when assessing offering quality
Opportunities to improve sport 21.1% image and performance
Access to targeted media 21.1%
Evaluation effectivenss 21.1% methods provided
Expected spectator figures 15.8%
Provision of extra benefits 10.5%
Opportunities to improve 10.5% community image
Post event reporting/fulfilment 5.3% audit
Provision to improve staff 5.3% relations and motivation
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
The accessibility to target market and brand exposure (36.9%) and activating a positive corporate image in the community by contributing to improved sport performance (31.6%) rank amongst the key offering assessment areas. These are strong indications that corporations rate the corporate and media objectives as prime tools to achieve their business objectives.
9.1.6 Figure 17 - Top three most desired benefits from a sponsorship
On-site signage and 40% media coverage
Positive public perception of company 33% brand/products
Increase in sales of products/participate in 13% retail selling on site
Staff/employee relations 7% and motivation enhanced
Sport image and 7% performance improves
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
The three most common benefits for sponsorship partnership in order of priority are: i. On-site signage and media coverage ii. Positive public perception of company brand/products iii. Increase in sales of products/on-site retailing
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Existing Sponsors Interview Results
9.1.7 Figure 18 - Established sponsorship policies (multiple responses accepted)
A positive community image/reputation of the property 67%
Grassroots/community based events 60%
Congruency of target market 27%
Substantial media coverage/access 27%
Proposal outlining benefits to sponsor 27%
Multiple co-sponsors 20%
Funds requested within budget 20%
Events that involve employees 13%
Long term partner potential 13%
0% 10% 20% 30% 40% 50% 60% 70%
Multiple co-sponsors indicate these are not willing to provide large sponsorship but rather small amounts hence the desire to have multiple co-sponsors to spread the risk.
There is strong indication that existing sponsors intend to transfer positive image of the sport to the organisation.
When evaluating which properties to sponsor, development of sport at grassroots or community level was the most common. Sponsors also viewed positive associations as somewhat important in their policy. Not only is the events/properties expected to promote goodwill in the community, it was also important that both the sports administrators and the sports image itself had a positive image in the community.
9.1.8 Figure 19 - Expectations from a sponsee (multiple responses accepted)
Benefits promised are delivered 86%
Account for funds invested 64%
Pursue strong media presence of 50% sponsorship
Attract large audience to its 21% events
Committ to building long term 21% partnership
Produce winning combinations 21%
Commitment to leverage and 7% maximise investment
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
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In terms of servicing of the sponsorship, the respondents said they were most interested in post- event fulfilment report outlining how the funds were spent, media advertisements placed, number of attendants at event and the benefits achieved.
9.1.9 Figure 20 - Main expectation from a sponsee
Positive association/image of 45% brand in the community
Product/sales increase 18%
Relationship 18% building/partnerships
Sport produces winning 18% team/successful event
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
In evaluating a property, corporations’ main expectation is the importance of exposing the brand to the community at 45%.
9.1.10 Figure 21 - The unsatisfied expectations
Poor exposure/media coverage 40%
Lack of understanding of sponsorship process/disorganised 25% administrators
Absence of regular feedback/accountability of funds 20%
Negative associations of sport 20%
Failure to deliver on promises 20%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Sponsors were mostly dissatisfied with properties that failed to provide on-going feedback particularly in regards to accountability of funds. This is due to the fact of misuse of funds by administrators for personal gains. The second most dissatisfied aspect for sponsors was the perceived lack of understanding by administrators on the sponsorship process. Sports administrators continue with the mistaken belief that sponsorship as philanthropic rather than a business investment with expectations of return on investment by the corporation. As a result, proper sponsorship package proposals are not prepared hence maximisation of the benefits and designing of activation strategies is not incorporated in a sponsorship package.
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9.1.11 Figure 22 - Corporations sponsorship objectives
To increase brand exposure 38%
Potential strategic partnership opportunities with 31% other complementary brands
Ideal platform to communicate business values 25%
Capture target market 19%
Retention strategy for our clients 13%
Platform to build relationship with clients on a 13% personal level
Growth in advertising clutter 6%
0% 5% 10% 15% 20% 25% 30% 35% 40%
The most common objective for sponsorship partnership is brand exposure and awareness.
9.1.12 Figure 23 – Criteria to determine value of sponsorship proposals
Community publicity opportunities 50%
The extent of media coverage that can be gained 50%
Budget size required 25%
The strategic fit with product/brand 25%
Future sustainability plans of sport organisation 17%
Reputation of event organisers 17%
Gaining access to specific event audiences 8%
Executive personal preferences 8%
0% 10% 20% 30% 40% 50% 60%
Properties that are able to explicitly spell out the mode of platform of exposure e.g. coverage on all or some of the media modes in Fiji find that these are important factors considered by a sponsor. Sponsors most common or chief objective for sponsorship is creating awareness of its brand.
An interesting finding also is that most businesses interviewed do not have sponsorship marketing as part of its marketing plan but rather take on sponsorship if approached by the property owners in most occasions. Hence, upon receipt of a proposal, the business actually compares it by assessing the link to its business objectives and the availability of funds. This is
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unlike worldwide trends, where corporations have specific sponsorship or marketing departments responsible to research the market to identify suitable properties as a platform to achieve its business objectives.
9.1.13 Figure 24 - Sponsor's target market for sponsorship
Executives & Businesses 36%
Primary and secondary students 29%
Sports spectators 14%
$15,000 per annum salary 7% earners
Health/sports organisations 7%
Potential Customers 7%
Existing customers 7%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Given that the corporations interviewed were from a diverse of operations, the target group are fairly diverse. Interestingly, a common feature was the target of the young generation – 7 to 20 year olds. This provides opportunity for Fiji Volleyball to create properties for this target group.
9.1.14 Figure 25 - Sponsorship effectiveness evaluation methods
Review of previous sponsorship to show that 55% promise was fulfilled
Growth in sales/new 18% business creations
Queries/feedback from employees, clients, public 18% to management
Surveys 18%
0% 10% 20% 30% 40% 50% 60%
The evaluation methods of sponsorship in Fiji indicate a reluctance to invest substantial resources in measuring sponsorship effectiveness (18%) with most relying on casual responses that reach management and the results of the fulfillment audit reports. The proper research to measure top of mind awareness is only undertaken by 25% of the sponsors’ surveyed. This trend is due to the infant stage of the research market in Fiji and the large associated costs.
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9.2 Annexure 2 – In-depth interview sample for Existing and Potential Sponsors
9.2.1. Guide for in-depth interviews for existing sponsors 1. What are your established sponsorship policies? 2. What do you expect from a sponsee? 3. What are your main expectations? 4. What are the unsatisfied expectations? 5. Why are you using sponsorship? 6. How do you evaluate sponsorship proposals? 7. Which targets are you intending to reach through sponsorship? 8. What are your sponsorship effectiveness/evaluation methods?
9.2.2 Guide for in-depth interviews for Potential Sponsors 1. Why do you engage in sponsorship? 2. What are your business objectives for sponsoring organisations/events? 3. Which group are you intending to target through sponsorship? 4. How would you assess the quality of our offering? 5. What would be your three most desired benefits from a sponsorship?
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9.3 Annexure 3 – Internal Analysis of Fiji Volleyball Federation resources and competencies
9.3.1. Table 15 – Information on Fiji Volleyball Federation Category 1 (mission, values, internal culture, and objectives)
VISION - To establish volleyball as the first choice sport for all people MISSION - To promote and develop volleyball at all levels in Fiji, through the provision of affordable and quality programs, competitions and educational opportunities, and strong stakeholder partnerships. VALUES are Integrity - To uphold honesty, the truth and respect in all its business undertakings, Impartiality - To advocate neutrality and independence in its decision-making, Solidarity - To function in consultation with all its stakeholders and make decisions in the best interests of its members, Education - To provide a learning culture and knowledge enhancement through provision of training programs and hands on experience GOALS 1. To make volleyball a major sport at national level 2. To bring volleyball to the forefront as one of Fiji’s top spectator sports 3. For our most important national competitions to gain substantial media coverage and to be televised, and to be appropriately financed by sponsors 4. To enhance the management capabilities of each affiliate association as per business ethics and requirements 5. To increase the number of national competitions around the country 6. To prepare a national juniors and senior team to a competitive level at international events
The 2005-2008 Strategic Plan show a cost of at least $300,000 to implement its programs for 2006 alone.
Category 2 (Structure of the organisation) The executive committee is the governing body of the sport. The members are elected at the AGM where the office bearers serve a term of 3 years with other committee members serving a one year term. The sub- committees form the referee, coaches, games, sponsorship & marketing, administration, beach volleyball groups. These are headed by Directors who are represented on the executive committee. Its members are recruited by the Director.
These committees are outlined in the structure but most operate at a superficial level with only 1 to 3 volunteers actively involved. This volunteer nature of administration and the lack of resources contribute to its current inactive status.
Refer to Diagram 1 for the current structure. Category 3 (Employees of the Federation) There is no full time professional, all human resources support are volunteers.
Category 4 (Physical resources owned by the Federation) The Federation does not own any facilities and equipment.
Category 5 (Source of income – grants, equity, loans, and investment)
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1. Grants from Ministry of Sports for national team tours 2. Grants from FASANOC for Olympic Solidarity programs for coaches and referees and team Fiji preparations for regional events 3. Affiliation fees from affiliates 4. Competition registration fees from teams 5. Sponsorship from corporations and businesses.
Given its non-profit and volunteer method of administration, the Federation neither has any equity nor loans and investment.
Category 6 (Properties/rights owned by the Federation) It owns all the national events properties namely Vulaca, Northern and Western championship, Vanua Challenge, National Championship, Juniors Championship, National Volleyball League, East verses West, Inter-club, Beach Volleyball League and the National Juniors and Senior Teams.
It does not have any sporting rights whatsoever.
Category 7 (Sports team achievement regionally and internationally) Regionally – the men are placed 4th for men and women senior teams. Internationally, the team have not participated beyond Oceania and Pacific competitions.
However, for beach volleyball, the women are currently ranked number one and the men number three in the Pacific Region. It did not take part in the last Oceania Games but previously were ranked number 2 in both the men and women.
Category 8 (Organisation name and logo under legal protection) The organisation name and logo is not under any legal protection.
Category 9 (Corporate design of Federation) There is a volleyball logo which is only used on the letterhead and website.
Category 10 (Organisations key success factors) Association as a grassroots sport, popular national events and access to a resident FIVB Level 3 coach
Category 11 (Fiji Volleyball Federation brand equity) Brand heritage – the sport has predominately being played by indigenous Fijians, it was brought to Fiji by American Peace Corps volunteers and spearheaded locally by the “Father of Volleyball” in Fiji Mr Josateki Vulaca in the early 1970’s. It started with four affiliates and has increased to 14 in 2005. The sport has been accepted widely as a recreational and grassroots sport seen to be played at villages, rural settings and outer suburbs to the main cities and towns. However, in the city of Suva, the sport is very competitive seen in the top rankings of central based teams during major national competitions and majority representation in the national men and women’s teams.
Vision – is to spread volleyball around the country and become the first choice sport for all fiji nationals and visitors.
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Identity – the sport has traditionally been accepted as a sport for Fijians, unemployed youths and the sport for children living in high crime prone suburbs. It has been deprived of quality international exposure for its national players. It has played second best to sports like rugby, netball, athletics and football.
Legal Protection – The brand and its properties are not legally protected as no one has seen the need for it.
Relationships exists with various organisations like affiliates (member clubs/teams), Ministry of Youth & Sports for outreach development programs nationwide and elite team overseas tours funding, FASANOC to access Olympic Solidarity funding and FIVB technical expertise and provision of training for executives, managers and players, Hotel workers/Police & Prison officers wives for technical support, Coaches/Referees & Games Commission bodies for provision of volunteers for national team and competition preparations
Stakeholders in regular contact with are MYEOS, FASANOC, affiliates or associations, coaches/referees and games commission, media and international federation.
Category 12 (Existing sponsorship packages) National Competition Partners – it ranges from $2,000 to $10,000 with benefits principally naming rights sponsors, on-site signage opportunities during event, media coverage, announcements during event, VIP access, free pass to sponsors, officials’ uniform with company logo and name, presentation of prizes, opening and closing of event by sponsor personnel and radio advertising,
Advertising Partners – range from $500 to $1,000 per event. The benefits include on-site signage, sponsor mentions throughout event and logo’s used on media releases.
Category 13 (Existing stakeholders and what are the related programs) Fiji Sports Council – sports facility owners which hosts all national events Affiliates – development or grassroots arm where it implements 26-30 weeks of league at village level and teams are entered to represent their districts at national events Coaches Commission – coaching of junior and senior teams and upgrading of coaching levels of members Referees Commission – upgrading of referees and official controllers of all national events Games Commission – organisers of all national events and any other events requested from members and general public Media – coverage of national events and related programs Southern-World Ltd – tour operators for visiting volleyball teams/groups Schools – annual secondary schools championship Oceania Volleyball – bi-yearly Oceania Volleyball Championship FASANOC/FIVB – Olympic Solidarity coaching, refereeing and administrative courses Ministry of Youth & Sports – Basic skills and administrative programs around the country, scholarship for players short stints with an overseas club and partial funding for Team Fiji overseas tours Sydney Lions Club – attachments of elite players for a season in the Australian/NSW Volleyball League
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9.3.2 Diagram 1 - Current Structure of Fiji Volleyball
Executive Board
Develpmt. Coaches Games Referees Sponsor. Admin. Beach Programs Comm. Comm. Comm. & Mktg & VBall Affiliates
Each of the commissions is represented headed by a volunteer director who is responsible to set up the respective operational structure. The Executive Board comprises of the President, Secretary, Treasurer and the Directors of Coaching, Sponsorship & Marketing and Games. Other directors are called upon to the executive boards at certain times to report on their progress.
Most of the decisions are made by the executive board on the advice of the directors of the various commissions.
All members are volunteers.
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9.4 Annexure 4 – In-depth interview sample for Fiji Volleyball Federation
1. What are the mission, values, internal culture, and objectives? Mission Values Internal Culture Objectives
2. What is the structure of the organisation? 3. How many employees exist in the Federation? Part Time Full Time
4. What physical resources are owned by the Federation? 5. What is the organisation’s source of income? 6. What properties/rights does the Federation own? 7. What has the organisation’s sports team achieved regionally and internationally? 8. Is the organisation name and logo under legal protection? 9. Is there an existing corporate design? 10. What are the organisations key success factors? 11. What is the Fiji Volleyball Federation brand equity? 12. What are your existing sponsorship packages? 13. Who are your existing stakeholders and what are the related programs?
9.5 Annexure 5 - Benchmarking against successful sports bodies that attract large sponsorship
Responsibility of Sponsorship for sports body 100% of respondents stated that a board member is a key representative for the sport for any sponsorship arrangement This is due to their expertise in the field and their key associations with local business entrepreneurs. Nevertheless, it is common to involve full time staff for the duration of the sponsorship (from first approach to end of sponsorship agreement) due to the cumbersome paperwork, increasing demands of sponsors daily and increase in activation programs by sponsors (this is shown in Figure 26).
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9.5.1. Figure 26 - Sports body sponsorship responsible parties
Board Member Only, 33%
Board Member and at least one professional staff, 67%
9.5.2. Figure 27 - Sponsorship Department Budget
Between $100,000 and 33% $200,000
Up to $100,000 67%
0% 10% 20% 30% 40% 50% 60% 70%
The results for this field showed extreme differences with some not paid at all (due to the volunteer nature of their involvement) whilst others which have accepted professionalism have full time paid staff. One of the sports organisations is contemplating selling rights to an established corporation to handle all sponsorship and media relations activities at an asking price of FDJ$120,000 per annum. Figure 27 shows that 67% of those interviewed reward their staff whilst the other 33% is the proposed minimum asking price if the sports organisation sells their rights.
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9.5.3 Figure 28 - Methods of attracting sponsors
Board member contacts and business associations., 25%
Existing Sponsors renewing contract, 50% Sponsor Objectives matched with Property offerings, 25%
Figure 28 identifies the methods used to attract sponsors for their properties. 50% of the respondents state the satisfaction of current sponsors to continue their sponsorship. Not surprisingly 25% are generated through business contacts.
9.5.4 Figure 29 - Benefits of the sports organisation that attract sponsors
20% 20% 20% 40%
20%
80%
Attractive and spectacular sport Large primary audience attendance at events Superior media coverage Government’s 200% tax benefits On-site product sales opportunities Leveraging opportunities programs
Media coverage (80%) and large spectator attendance during events (40%) is the most common benefit that attracts the sponsors supporting the results from the IPA survey.
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9.5.5 Figure 30 - Key success factors for successful sponsorship partnership
Mutually beneficial 10% agreements
Delivering on promises 30%
Leveraging opportunities 10%
Good partnership 60% relationship
0% 10% 20% 30% 40% 50% 60% 70%
Relationship marketing is very important as highlighted by Figure 30. Sponsors place a lot of emphasis on regular communication and involvement in the sports property activities apart from the events they sponsor signifying the importance of maintaining collaborative relationships with partners.
9.5.6 Figure 31 - Sponsorship Effectiveness Evaluation Methods
None 20%
Spectator attendance 20% figures
Column centimeters in the 20% press
Sales increase from 40% sponsored event
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
In evaluating sponsorship effectiveness, the sports property and sponsoring organisation have measurement methods in place to gauge the popularity of their products. It is seen to the be the contributing factor in their retention on an yearly basis.
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9.6 Annexure 6 – In-depth interview sample for Sporting Bodies
1. Who is responsible for securing sponsorship? 2. How many people are responsible in the process – part and full time (from proposal design to delivering the promise and re-negotiating)? 3. What is the estimate cost of operating the sponsorship department? 4. How do you select organisations to sponsor your events/association? 5. What in your experience are the key success factors for a successful sponsorship partnership? 6. How do you assess the effectiveness of the sponsorship/evaluation process?
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9.7 Annexure 7 – Identifying other stakeholders expectations
9.7.1 Table 16 - Other stakeholders expectations Stakeholder Group Expectations & Measurement of Relationship level with Fiji Volleyball Service Referees Commission 1. Funds to recruit more members The commission is defunct and is activated during 2. Clinics and outreach programs national competitions. around Fiji 3. Remunerate officials during Past qualified referees have disappeared from the national events sports scene. Majority of practicing referees are unqualified. Measurement of Service Provision of funds to conduct clinics and remuneration for officials during events FASANOC Deliver Strategic plan Delivery of expectations has been fulfilled except Gold medal for volleyball in for Gold at regional multi-sport events. Samoa Hold AGM’s and provide A good relationship exists with two administrators minutes and constitution annually provided with scholarship to undertake coaching Run club, district and national and sports management training. Annual funding is competitions received to conduct clinics for coaches and referees. Participate in regional and Team Fiji support is also available. international competitions
Measurement of Service Achievement of goals Timely submission of reports Gold at the event Regular local competitions Sport competition involves most centers around Fiji Participation in FASANOC organised events Programs implemented in schools
Coaches Commission Technical training support The Director is a member of the Executive Board Organising of foreign teams to but formation of the commission is in its infant visit country and play local teams stage. Funding to fully outfit national teams A national structure needs to be developed to implement a consistent coaching program. Measurement of Service Outfitting of national teams at training and national tours Association affiliates Entertaining and professionally Communication is minimal and often only those administered national events affiliates that have a member in the Executive Spectacular video coverage Board are aware of developments and upcoming Provision of playing equipment, events.
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funding for team travel to national events and negotiate for affiliate playing facilities Technical training support – coaching and refereeing
Measurement of Service Sports mixed with entertainment during national events Subsidisation of travelling costs to national events Improved performance results of teams during national events and regional competitions
Federation of Implement national Fiji is rated a level 1volleyball country which International championships, national teams, means the sport of volleyball is underdeveloped. Volleyball (FIVB) coaching programmes, youth development projects for beach Leading volleyball national teams like Brazil, Italy and indoor and Japan are ranked as Level 5 countries. Progress report on developments to AVC and FIVB
Measurement of Service Country performance rating progresses to next level Local Media Accessible administrators Relationship is primarily existent during national One point of contact events. Networking Information dissemination Coverage around these times is minimal, although, Fresh interesting news Volleyball enjoys a weekly column with one of the Involvement of media in offering print media. media coverage benefits to sponsors
Measurement of Service Efficient and quality news stories Accessible and informed media relations personnel Sponsors Refer to IPA analysis
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9.8. Annexure 8 - Interview Sample for other stakeholders
Guide for in-depth interviews for Stakeholders 1. What is your expectation from Fiji Volleyball? 2. How do you assess or measure the quality of our service?
9.9. Annexure 9 – Analysis of other stakeholder opinion on Fiji Volleyball sponsorship and brand
Survey of stakeholders The on-line survey was used as an additional reference point for the SWOT analysis and the level of networking by Fiji Volleyball. The graphs below show the strong points and areas of improvement for Fiji Volleyball.
9.9.1 Figure 32 – Fiji Volleyball Stakeholders Opinion about the characteristics of an ideal sponsorship program for a sports federation and the degree to which Fiji Volleyball provides this services at present
Mean Assigned order % of Performance of Importance Characteristics respondents Rating 1 Inclusive of all properties on offer 48.0% 2.22 2 Yearly Package incorporating all the sports needs 22.2% 1.75 3 Outlines demographics of property/sport 20.0% 3.00 4 Strategic Fit with Sponsor 19.0% 4.00 5 Sport & Property Profile 16.7% 3.00 6 Clear Benefits to Sponsor 16.0% 3.17 7 Deliverable 14.3% 2.00 8 Provision for periodic review 7.7% 1.00 9 Realistic and Well planned 4.0% 1.00
From the findings, it is obvious that Fiji Volleyball needs major improvements to those characteristics that are considered extremely important. The top three characteristics show a mean rating of poor to satisfactory performance. In order to effectively perform to the expectations of an ideal sponsorship program, Fiji Volleyball needs to improve on the following:
1. Identify, profile and outline the benefits for all the properties 2. Package the proposals on an annual basis 3. Research the demographics of the properties/sport events 4. Periodically review the program to align with changing internal and external market needs
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The second most important characteristic is supported by the stakeholders response that the current sponsorship program, although has improved from the past year (57% of the respondents), there is a need to refocus the package to secure long term partners (length ranging from 1 to 5 years).
9.9.2 Figure 33 – Level of effectiveness of Fiji volleyball in forming partnership programs with stakeholders
43% Satisfactory
57% Low
0% 10% 20% 30% 40% 50% 60%
According to stakeholders (figure 33), a large percentage (57%) has indicated Fiji Volleyball’s low involvement with stakeholders in carrying out its duties. This has reflected in the ineffectiveness of its sponsorship program. This almost non-existent consultation process with stakeholders has resulted in the non-coordination of its activities and the poor performance of the sport locally and internationally.
9.9.3 Figure 34 – Strong points of Fiji Volleyball
Popularity of sports at grassroots 65%
Established internal and external associations 25%
Support of Volunteers 20%
Regular high profile national competitions 15%
Resources (sports facilities and USP Program) 10%
Government Support 10%
Age Group Competition Plan 10%
Abundance of untapped talents 10%
On-Going Technical training 5%
Reasonable Media coverage 5%
0% 10% 20% 30% 40% 50% 60% 70% Despite, the poor networking of the Federation, the stakeholders highlighted various strengths of the sport (Figure 34). These strengths and weaknesses (Figure 35) were used to develop a SWOT analysis of the Federation (see Table 4).
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9.9.4 Figure 35 – Improvement areas for Fiji Volleyball
Networking 3%
Marketing & Promotion of 3% the sport nationally
Player & Volunteer 11% Welfare
Financial Resources 11%
Training for technical 14% officials
Junior Development 14% Structure
High Performance 22% National Team
Leadership & 22% Administration
0% 5% 10% 15% 20% 25%
The weak areas identified include the: Executive board leadership and policy systems (22%) Structure linkages depicted by the junior development programs, technical officials training and sports performance results through the national senior teams regional rankings (50%) Marketing of the sport and financial resources (14%).
9.9.5 Figure 36 – Stakeholders opinion on Fiji Volleyball sponsorship
Sponsorship is a key 100% objective for next 4 years
57% Improved from past year
Not privy to the 43% sponsorship program
Need to secure long term (1-5 years) sponsorship 14% partners
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Without a doubt, given the strong points of the sport, the stakeholders undoubtedly agree (100%) that sponsorship should become a key objective for the next four years (figure 36). With 57% accepting that the sport’s sponsorship improved from the past year, a significant 14% believe that the new focus should be on developing long term sponsorship partners so that other facets of the sport is enhanced.
©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework 80
9.10. Annexure 10 – On-Line Survey Questions on sponsorship and Fiji Volleyball brand
Dear Volleyball stakeholder: As a stakeholder for Fiji Volleyball, I am kindly requesting your assistance in answering this questionnaire to help complete a project on enhancing Fiji Volleyball’s sponsorship package. This project is part of requirements of an Executive Masters in Sports Management course. Your opinion is extremely important for this project!
1. What in your opinion are the characteristics of an ideal sponsorship program for a sports federation? Name five at the most, ranked from the most to the least important.
2. In terms of the five points stated in Q1, how good in your opinion is Fiji Volleyball providing those services at present? (Please tick one box for each of the five criteria's)
Very Good Good Satisfactory Unsatisfactory Not at all
Criteria 1
Criteria 2
Criteria 3
Criteria 4
Criteria 5
3. How effective has Fiji Volleyball been in forming partnership programs with you as a stakeholder? (please tick one box only) ¨ Highly effective ¨Satisfactory ¨ Low ¨Zero ¨ Not Applicable
4. What in your opinion are the strong points of Fiji Volleyball? Please provide 5 points. 5. What areas, in your opinion, should be improved by Fiji Volleyball within the next 3 years? 6. What are your views concerning Fiji Volleyball's sponsorship program? Please comment. 7. Do you think that sponsorship should be a key objective for Fiji Volleyball in the next 4 years? ¨ Yes ¨No
Thank you for taking the time to fill out this survey.
©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework 9.11Annexure 11 – Sample of Importance Performance Analysis survey
To answer the questions, please follow the instructions: 1. Read the criteria one by one in the middle column under the title “Criterion” 2. In the left column, Circle the appropriate number according to the importance you place to the respective criterion regarding sponsoring Fiji Volleyball events and competitions 3. In the right column, Circle the appropriate number according to the degree in which Fiji Volleyball performs this criterion at present.
The importance of the criterion for The degree to which Fiji Volleyball you as a Fiji Volleyball sponsor Criterion satisfies this criterion
t
atisfied mportan mportant Absolutely not important Not very important I Very I Extremely important Absolutely not satisfied Not very satisfied S Very Satisfied Extremely satisfied 1 2 3 4 5 Property showcases community/social responsibility 1 2 3 4 5 1 2 3 4 5 Property is well organised 1 2 3 4 5 1 2 3 4 5 The property increases brand awareness and visibility 1 2 3 4 5 1 2 3 4 5 Extensive media coverage of the sport and its events 1 2 3 4 5 1 2 3 4 5 Establishing a long term partnership 1 2 3 4 5 1 2 3 4 5 Large attendance at events 1 2 3 4 5 1 2 3 4 5 Preparation of a post-event report/fulfillment audit & accountability of funds 1 2 3 4 5 1 2 3 4 5 The contractual agreements are achieved 1 2 3 4 5 1 2 3 4 5 Property attracts desired demographics/target market 1 2 3 4 5 1 2 3 4 5 Property offers title or naming rights 1 2 3 4 5 1 2 3 4 5 Contribute to development of athletes and referees/ coaches 1 2 3 4 5 1 2 3 4 5 Involvement of our staff and families as volunteers/participant in associated events/programs 1 2 3 4 5 1 2 3 4 5 Provision of hospitality benefits during events 1 2 3 4 5 1 2 3 4 5 Property offers category exclusivity as well as complementary corporations as co-sponsors 1 2 3 4 5 1 2 3 4 5 Property attracts all ethnic groups to its events 1 2 3 4 5 1 2 3 4 5 Property has high national/district profile 1 2 3 4 5 1 2 3 4 5 Property association stimulates sales and repeat business 1 2 3 4 5 1 2 3 4 5 Property sponsorship results in improved administration and sport performance 1 2 3 4 5 1 2 3 4 5 Clear understanding of the sponsorship process and its implications 1 2 3 4 5 Thank you for your time and cooperation. 9.12. Annexure 12 – The most and least important performance criteria for sponsorship according to sponsors
9.12.1 Table 17 - The 15 most important performance criteria Mean Mean Sponsorship Offering Importance Satisfaction No. Attributes Rating Rating The contractual agreements 8 are achieved 5.00 4.00
Property showcases 1 community/social responsibiity 4.75 3.50 The property increases brand 3 awareness & visibility 4.75 3.25 Extensive media coverage of 4 the sport and its events 4.75 2.75 Preparation of a post-event report/fulfillment audit & 7 accountability of funds 4.75 3.25 Property sponsorship results in improved administration and 18 sport performance 4.75 3.50 2 Property is well organised 4.50 4.00 6 Large attendance at events 4.50 2.50 Contribute to development of athletes and referees/ 11 coaches 4.50 3.25 Property attracts all ethnic 15 groups to its events 4.50 3.25 Property has high 16 national/district profile 4.50 2.75 Establishing a long term 5 partnership 4.25 3.25 Provision of hospitality 13 benefits during events 4.25 3.50 Clear understanding of the sponsorship process and its 19 implications 4.25 3.50 Property attracts desired 9 demographics/target market 4.00 3.25
The rankings of the attributes have brought about mixed results. In the first interview, most of the sponsors’ key objective is to increase brand exposure and to associate with complementary co-sponsors. However, the IPA results indicate otherwise. Involving complementary corporations as co-sponsors is the 2nd least important offering despite it being well provided by Fiji Volleyball.
83
Further, the IPA results indicate a blend of corporate, marketing and media objectives is important to sponsors but the performance of this attributes is not up to par.
9.12.2 Table 18 - The least important performance criteria The least satisfied Mean Mean sponsorship offering Importance Satisfaction No. expectations Rating Rating Property offers title or naming 10 rights 3.75 3.75 Property offers category exclusivity as well as complementary corporations 14 as co-sponsors 3.75 4.00 Property association stimulates sales and repeat 17 business 3.75 2.75 Involvement of our staff and families as volunteers/participant in 12 associated events/programs 3.25 3.50
It is recommended that at the end of the first year of this program, a similar survey must be conducted to gauge the performance level of Fiji Volleyball sponsorship offerings.
©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework 84
9.13 Annexure 13 – Fiji Volleyball Affiliate Ratings
9.13.1 Table 19 Fiji Volleyball Affiliate Ratings Card Tiers Dimensions Tier 1 1. Financial member 2. Affiliated member of at least 6 straight seasons 3. Club membership of at least 21 clubs 4. Elected committee in place with annual conduct of general meetings 5. Established competition structure for men and women categories 6. Participation in all national events 7. Constitution in place 8. Financially stable with own bank account and annual accounts provided 9. Participate in all Fiji Volleyball sanctioned events 10. At least 2 members of the Coaching, Refereeing and Games Commissions Tier 2 1. Financial Member 2. Affiliate member of between 3-5 straight seasons 3. Club membership of between 16-20 clubs 4. Elected committee in place with annual conduct of general meetings 5. Competition structure for men and women categories 6. Participation in all national events 7. All dimensions from 7-10 listed above
Tier 3 1. Financial member 2. Affiliate member of less than 3 straight seasons 3. Club membership of between 10-15 clubs 4. Elected committee in place with annual conduct of general meetings 5. Competition structure for men and women categories 6. Participation in all national events 7. All dimensions from 7-10 listed in Tier 1
Note – Each affiliate must fulfill the first six conditions in each of the levels to qualify for that tier. The other conditions will be given a probationary period of a maximum of 2 years to meet the criteria by the respective affiliates, failure of which will result in relegation to next level below.
©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework