Following the enormous exposure of Clark Rubber at the recent EJ Whitten Legends AFL Game on Channel Nine, National Communications and Public Relations Manager Andrew Kelly shares an insight into what to look for in sponsorships for a franchise organisation. He also provides the thought process behind Clark Rubber entering long-term sponsorship contracts with the Legends Game, as well as Australia's national organisation for the teaching of Swimming & Water Safety, AUSTSWIM.
"To sponsor something is to support an event, activity, person, or organisation financially or through the provision of products or services. A sponsor is the individual of group that provides the support.”
In many cases, the benefit to the sponsor relates to the marketing of their product or service. The difference between a sponsorship and a donation is in the extent of the recognition given. Limited publicity (eg. a news story in the local paper) is acceptable in relation to a donation, however any larger scale or ongoing publicity would be indicative of sponsorship support. When sponsorship is used well, it is an important business tool where both parties benefit.
There are many different reasons why companies enter the sponsorship marketplace, however, the most common objectives that companies should seek from a sponsorship program are:
- To increase sales
- Develop customer loyalty
- Heighten brand awareness
- Develop new markets
- Develop business-to-business relationships
- Launch new products
- Broaden customer base
- To develop community relations
- To change or revitalise brand image
Sponsorship in Franchising
Franchise organisations are an obvious target for those business and charity organisations, community groups, schools and sporting groups, among others, that are looking for 'a sponsorship'.
There wouldn't be a week that goes by where a franchisor didn't receive at least one request for sponsorship.
The key question is: 'How do we manage these sponsorship opportunities?'
Every sponsorship proposal is an opportunity. It could be an opportunity for the franchisor, or, more importantly, an opportunity for one or more franchisees.
The key for any franchisor in analysing sponsorships is to ensure that it has a clear and consistent policy to manage these opportunities.
Q: Why have a Policy?
- Businesses need to ensure that they are seen to be making decisions based on objective information, and the public should be confident this is occurring.
- Businesses need to ensure that all local organisations I and individuals are treated fairly by having equal access to the benefits associated with sponsorships.
- A sponsorship policy will guide staff in the determination of sponsorship applications, dealing with sponsorship issues, and in managing sponsors professionally.
- The policy enables the manager to monitor the sponsorship agreements and ensure consistency across the business.
At Clark Rubber, the criteria for sponsorship is simple and very clear:
- How does this opportunity benefit all franchisees?
- How does this opportunity benefit franchisees on a state by state level?
- How does this opportunity benefit a franchisee at a local level?
If the 'opportunity' does not benefit any franchisee at any level, then the proposal is simply not considered. However, communication by letter, stating the company's sponsorship policy, is always carried out.
If it does meet the criteria, at any level, the 'opportunity' becomes a consideration.
A local area or single franchise 'opportunity' is generally forwarded to those who will benefit, together with advice from the franchisor for implementation and maximum benefit.
At this point, it is important that the opportunity meets the next level of criteria:
- Is the 'opportunity' well-packaged for the benefit for both parties?
- Has the organisation seeking sponsorship demonstrated an ability to carry through the implementation of the 'opportunity'?
- How much will it cost and do we have the facilities to manage it?
The reality in franchising is that 'Sponsorship' makes-up a very small portion of the total marketing budget, so it's vitally important to ensure that you get the best out of the 'opportunity' and drive it to its maximum potential.
Franchisee Sponsorship Opportunities
It is important that all local sponsorship opportunities are targeted towards increasing in-store traffic.
The days of handing local sporting clubs $250 for a ground fence sign are a thing of the past. However, there are still plenty of opportunities. In this instance, a franchisee is much better off handing out 25 x $10 vouchers to ensure that it drives traffic in store and increases the opportunity for add-on sales.
Cash isn't the only lure to gain a sponsorship opportunity -stock or service is also very valuable. For instance, a Clark Rubber retail franchise store can provide a local sporting club with exercise or gym mats at cost, however, obtain a sponsorship package in return to the retail value of the goods.
Clark Rubber franchisees are encouraged to use dead stock to their advantage. Offer it to the local club or media outlet in return for a sponsorship package or advertising.
Franchisor Sponsorship Opportunities
The number one consideration for a franchisor when assessing 'big ticket' opportunities should be to ensure the majority of franchisees in the organisation benefit from the sponsorship.
The next consideration is to ensure that the return on investment can be measured. This can be achieved via an increase in traffic in-store and a subsequent spike in sales, brand recognition and media activity.
The motivation for Clark Rubber to get behind the EJ Whitten Legends Game was predominantly to support a good cause - Prostate Cancer Research, which goes hand in hand with Clark Rubber's main demographic.
The game is well managed, credible, has longevity, has strong brand backing, and most importantly for the Clark Rubber brand, generates press, radio and television coverage.
Again, exposure is only as good as the driver. Predominantly, the Clark Rubber sponsorship entails ground fence signage; player shorts logo and runner polo shirts. In all aspects, the branding was bold and strong, making it easily recognisable in the media. Clark Rubber look the sponsorship one step further by utilising mascot Clarkee in the television 'hot spots' during the game, as well as handing plush toys to children in the crowd, who were seated in high television traffic areas. Franchisees attended the event in a corporate sense, while game point of sale was visible in store for four weeks prior to the telecast. The results were outstanding.
AUSTSWIM is Australia's national organisation for the teaching of Swimming & Water Safety.
AUSTSWIM boasts 600 accredited swim schools around the country and more than 28,000 accredited teachers. There are also AUSTSWIM accredited swim schools in more than 70 Clark Rubber territories.
This was an obvious partnership for Clark Rubber on a number of levels - supporting children to learn to swim, which supports Clark Rubber's proud 60-year history of providing above ground pools to Australian families, joint branding opportunities and direct marketing opportunities to a target market.
AUSTSWIM has a fabulous database, which enables Clark Rubber to direct market, as well as having a number of publications and advertisements that are distributed to the database, bearing the Clark Rubber logo.
Clark Rubber plans to co-brand some of it's summer fun product with the AUSTSWIM logo, giving the Clark Rubber brand credibility while giving AUSTSWIM a retail connection.
By Andrew Kelly - Clark Rubber
19-Nov-2008