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Enhancing the Value of the Sponsorship Packages - an Analysis of the Fiji Volleyball Framework –

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Enhancing the Value of the Sponsorship Packages - an Analysis of the Fiji Volleyball Framework – 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 ©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework 3 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 ©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework 4 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 ©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework 5 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 ©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework 6 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 ©Enhancing the value of the sponsorship package – an analysis of the Fiji Volleyball Framework 7 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).
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