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Table of Contents TABLE OF CONTENTS Chapter 1: Introduction to the study ……………………………………………. 1 1.1 Introduction ……………………………………………………………..……… 1 1.2 Background sketch …………………………………………………….……… 1 1.2.1 Branding ………..…………………………………………………………… 3 1.2.2 Brand equity ………………………………………………………...……… 4 1.2.3 Branding in South African rugby ………………………………….……… 6 1.3 Reason for the study ………………………………………………….……… 7 1.3.1 Formulation of the problem ……………………………………….……… 9 1.3.2 Contribution of the study …………………………………………..……… 10 1.4 Objectives of the study ……………………………………………….……… 10 1.5 Research method ……………………………………………………..……… 11 1.5.1 Secondary research ……………………………………………….……… 11 1.5.2 Primary research …………………………………………………...……… 12 1.5.2.1 Population of the study …………………………………………….……… 12 1.5.2.2 Sampling method …………………………………………………..……… 12 1.5.2.3 Data gathering ……………………………………………………………… 13 1.5.2.4 Data processing …………………………………………………….……… 14 1.5.2.5 Limitations of the study …………………………………..……………….. 14 1.6 Orientation of the study ………………………………………………………. 14 Chapter 2: The South African rugby industry …………………………………. 17 2.1 Introduction ……………………………………………………………………. 17 2.2 The South African rugby industry …………………………………………… 18 2.2.1 South African Investments Limited (SAIL) ……………………...………. 19 v 2.2.1.1 SAIL Sports Brands ……………………………………………………… 21 2.2.1.2 SAIL Sport and Entertainment ………………………………….……… 24 2.2.1.3 SAIL Capitol ……………………………………………………………… 26 2.2.1.4 SAIL Global ……………………………………………………………… 29 2.2.2 SuperSport International ………………………………………….……… 30 2.2.3 South African Rugby Football Union (SARFU) ………………………… 32 2.2.3.1 The Bulls Rugby Union ………………………………………………… 35 2.2.3.2 Boland Rugby Union …………………………………………………… 36 2.2.3.3 Border Rugby Union …………………………………………………… 37 2.2.3.4 Eastern Province Rugby Union ………………………………..……… 38 2.2.3.5 Falcons Rugby Union …………………………………………..……… 39 2.2.3.6 Free State Rugby Union ……………………………………….……… 39 2.2.3.7 Golden Lions Rugby Union …………………………………………… 40 2.2.3.8 Griffons Rugby Union ………………………………………….……… 41 2.2.3.9 Griqualand West Rugby Union ………………………………..……… 42 2.2.3.10 Leopards Rugby Union ………………………………………………… 42 2.2.3.11 Mpumalanga Rugby Union …………………………………….……… 43 2.2.3.12 Natal Rugby Union ……………………………………………………… 44 2.2.3.13 South Western Districts Rugby Football Union ……………………… 45 2.2.3.14 Western Province Rugby Union ………………………………..……… 46 2.3 The South African competitions ……………………………………...……… 47 2.3.1 Provincial competitions …………………………………………….……… 48 2.3.1.1 The ABSA Currie Cup …………………………………………………… 48 2.3.1.2 The Vodacom Cup ……………………………………………….……… 50 2.3.1.3 National Under-20 Tournament ………………………………………… 50 2.3.1.4 Regional tournament: the Super 12 …………………………….……… 51 2.3.1.4 South African national rugby teams …………………………….……… 57 2.4 Conclusion ……………………………………………………………...……… 62 Chapter 3: Sports marketing ……………………………………………………… 64 3.1 Introduction …………………………………………………………...……… 64 3.2 The nature of sports marketing …………………………………….……… 65 vi 3.2.1 Consumers ………………………………………………………….……… 67 3.2.2 Loyalty ……………………………………………………………………… 67 3.2.3 Competition ………………………………………………………………… 68 3.2.4 Promotion …………………………………………………………………… 68 3.2.5 Price ………………………………………………………………….……… 69 3.2.6 Distribution ………………………………………………………….……… 70 3.2.7 Product ……………………………………………………………………… 70 3.2.8 Management ………………………………………………………..……… 71 3.3 The sports industry …………………………………………………..……… 73 3.3.1 Sports consumers ………………………………………………….……… 74 3.3.1.1 Spectators as consumers ……………………………………………… 74 3.3.1.2 Participants as consumers ……………………………………...……… 75 3.3.2 Sports producers and intermediaries …………………………….……… 77 3.3.3 Sports products …………………………………………………….……… 78 3.3.4 Sponsorship ………………………………………………………..……… 81 3.4 Sports consumer behaviour ………………………………………..……… 83 3.4.1 Consumer decision making ……………………………………….……… 84 3.4.2 Individual factors that influence consumer decision making ….……… 86 3.4.3 Group factors that influence consumer decision making ……………… 87 3.4.3.1 Level 0: Nonconsumers or indirect consumers ……………………… 90 3.4.3.2 Level 1: Nonpattern attenders ………………………………….……… 90 3.4.3.3 Level 2: Attenders ……………………………………………….……… 91 3.4.3.4 Level 3: Frequent attenders …………………………………….……… 91 3.4.4 Sports participant consumer behaviour ………………………….……… 92 3.4.4.1 Situational factors ………………………………………………...……… 93 3.4.5 Spectator consumer behaviour …………………………………..……… 94 3.4.5.1 Initial stage ……………………………………………………….……… 96 3.4.5.2 Identification stage ……………………………………………….……… 97 3.4.5.3 Optimal internalisation stage …………………………………………… 98 3.5 The sports marketing strategy ……………………………………..……… 103 3.5.1 Market segmentation and targeting ……………………………………… 103 3.5.2 Marketing mix decisions …………………………………………..……… 107 3.5.2.1 Sports product …………………………………………………….……… 107 vii 3.5.2.2 Distribution ………………………………………………………...……… 108 3.5.2.3 Pricing ……………………………………………………………..……… 109 3.5.2.4 Promotion ………………………………………………………….……… 110 3.6 Conclusion …………………………………………………………………… 112 Chapter 4: Branding and brand equity …………………………..……………… 114 4.1 Introduction …………………………………………………………...……… 114 4.2 Fundamentals of branding ………………………………………….……… 115 4.2.1 Brand elements ……………………………………………………..……… 117 4.2.1.1 Branding decision ………………………………………………………… 119 4.2.1.2 Brand-sponsor decision ………………………………………….……… 120 4.2.1.3 Brand-name decision ……………………………………………..……… 121 4.2.1.4 Brand-strategy decision ………………………………………….……… 122 4.2.2 The benefits of branding …………………………………………..……… 124 4.3 Brand equity ………………………………………………………….……… 129 4.3.1 Brand awareness ………………………………………………………… 130 4.3.2 Perceived quality ………………………………………………….……… 132 4.3.3 Brand loyalty ……………………………………………………………… 134 4.3.4 Brand associations ……………………………………………….……… 137 4.4 Brand management ………………………………………………………… 141 4.4.1 Identifying and establishing brand positioning and values …….……… 142 4.4.1.1 Customer- based brand equity (CBBE) ………………………..……… 143 4.4.1.2 Brand positioning and values …………………………………………… 147 4.4.2 Planning and implementing brand marketing programmes …………… 149 4.4.2.1 Decisions relating to brand elements ………………………….……… 150 4.4.2.2 Marketing activities ……………………………………………..……… 151 4.4.3 Measuring and interpreting brand performance ………………..……… 152 4.4.3.1 Developing a brand equity measurement and management system 153 4.4.3.2 Measuring sources of brand equity …………………………….……… 156 4.4.4 Growing and sustaining brand equity …………………………….……… 159 4.5 Conclusion …………………………………………………………………… 160 viii Chapter 5: Research methodology ……………………………………………. 162 5.1 Introduction ………………………………………………………………… 162 5.2 Marketing research ………………………………………………...……… 163 5.3 The marketing research process ………………………………………… 165 5.2.1 Step 1: Identifying and formulating the problem or opportunity ……. 166 5.2.2 Step 2: Formulating the research objectives …………………..……… 167 5.2.3 Step 3: Developing a research design ………………………….……... 168 5.2.4 Step 4: Conducting secondary research ……………………….……… 169 5.2.5 Step 5: Selecting a primary research method ………………………… 170 5.2.5.1 Observational research ………………………………………..……… 171 5.2.5.2 Experimental research ………………………………………...……… 172 5.2.5.3 Survey research ………………………………………………..……… 173 5.2.6 Step 6: Determining the research frame ……………………….……… 177 5.2.6.1 Sample frame …………………………………………………….……… 178 5.2.6.2 Sample size ……………………………………………………………… 178 5.2.6.3 Selecting the sampling method ………………………………..……… 180 5.2.7 Step 7: Gathering the data ……………………………………………… 183 5.2.8 Step 8: Processing the data …………………………………………….. 184 5.2.8.1 Descriptive statistics ……………………………………………………. 186 5.2.8.2 Inferential statistics ……………………………………………………… 187 5.2.8.3 Determination of brand equity …………………………………………. 190 5.2.8.4 Reliability and validity …………………………………………………... 194 5.2.9 Step 9: Reporting the research …………….…………………………… 197 5.3 Conclusion …………………………………………………………............ 197 Chapter 6: Research Results ……………………………………………............. 198 6.1 Introduction ………………………………………………………………… 198 6.2 Profile of the sample ………………………………………………………. 198 6.2.1 Demographic profile ……………………………………………………... 201 6.2.1.1 Gender composition of respondents …………………………………. 201 6.2.1.2 Average age of respondents ………………………………………….. 203 ix 6.2.1.3 Race distribution of respondents ……………………………………… 205 6.2.2 Rugby supporter profile …………………………………………………… 206 6.2.2.1 Scale of support …………………………………………………………. 207 6.2.2.2 Rugby team personally supported ……………………………………. 210 6.2.2.3 Period of support ……………………………………………………….. 213 6.2.2.4 Team most admired ……………………………………………………. 214 6.2.2.5 Amount of rugby games respondents watch ………………………… 217 6.2.2.6 Average price for a rugby ticket and rugby jersey ………………….. 218 6.3 Attitudes towards the industry ………………………………………………. 224 6.4 Awareness of rugby teams ………………………………………………….. 227 6.4.1 Awareness of the regional rugby teams ………………………………… 227 6.4.2 Awareness of the provincial rugby teams ………………………………. 229 6.4.3 Awareness of the South African national rugby teams ………............. 229 6.4.4 Awareness of the regional rugby team’s brands ………………………. 233 6.4.4.1 The Bulls ……………………………………………………………….. 233 6.4.4.2 The Cats ………………………………………………………............. 234 6.4.4.3 The Sharks ……………………………………………………............. 235 6.4.4.4 The Stormers …………………………………………………............. 236 6.4.5 Awareness of the provincial teams’ brands …………………………… 237 6.4.5.1 The Blue Bulls …………………………………………………………. 238 6.4.5.2 The Boland Cavaliers …………………………………………………. 239 6.4.5.3 The Border Bulldogs ………………………………………………….. 239 6.4.5.4 The Cheetahs …………………………………………………………. 240 6.4.5.5 The Eagles ……………………………………………………………... 241 6.4.5.6 The Falcons …………………………………………………………….
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