Sponsorships keep the wheels turning

Sponsorship needs to be a win/win situation where sponsors are linked to passion brands and can drive their positive and targeted messaging home to an already receptive audience.

Sponsorship is an essential part of the marketing mix just as PR, marketing and advertising are and every successful company should make this part of their strategy. But before signing up a sponsorship agreement there must be a structured plan that includes the objectives and the synergy between the partners.

The days of random acts of altruism by top dogs or “Chairman's Choice” sponsorships are over. The strategy should clearly identify marketing and leverage opportunities, be imaginative but realistic and never over-promise, just to secure the sponsorship. Event organisers need to find creative ways to expose sponsors' messages to the marketplace.

Symbiotic relationship

It also has to be a symbiotic relationship. As soon as either party is taking more or giving less, the delicate balance is destroyed and you have an unsuccessful partnership. There is a strong business principle behind sponsorship which needs to be clear and also part of the company objectives. The most obvious is return of investment, be it immediate or over the longer term.

Conversely though, sponsors must also realise they ‘facilitate' an event, and don't own it because there are a whole host of other role players involved – all with their own agendas and expectations – all of which need to be satisfied. Bottom line: expectations need to be managed!

So, how do you approach companies for sponsorship of events, especially sporting events that are not perceived as “mainstream” such as cycling?

It can be a difficult sell to begin with but as long as the sponsorship has mutual benefit and fits in with company marketing objectives, it can be an easy marriage. Cycling is a predominantly LSM 7 – 10 market so it opens up huge opportunities for the right companies. In addition to this, a number of high profile cycling events have found a home in Africa – such as the Tour d'Afrique from Cairo to Cape Town, the Absa Cape Epic, the Pick 'n Pay 94.7 road race and Cape Argus/Pick 'n Pay Cycle Tour – raising the profile of the sporting discipline.

Surface not scratched yet

But we haven't begun to scratch the surface of what can be done for, and by, sponsors linked to these events.

Cycling is growing in both popularity and stature and the interest in sponsoring international events bodes well for future high profile cycling events in South Africa. In the case of the 2007 UCI B Championships, Intaka Tech was approached as the primary sponsor. Intaka Tech manufactures and markets innovative and cost-effective equipment such as water purification plants, on-site oxygen and medical-air generation equipment. The company could see a perfect opportunity to get extra leverage for its brand and also lend credibility to this premium event and vice versa.

Apart from primary and support sponsors, the cornerstone of any sporting event is the ‘endorsement' or partnership by institutional partners. The Cape Town Routes Unlimited economic impact figures project that the UCI B World Championship could generate R18 – R22 million for the region through bed nights, meals, shopping, tourist destinations and other spin offs. All of these are direct benefits to the region, which is why the local government should be supportive in a pro-active way.

Besides the considerable economic benefits sporting events bring to any province, they also generate powerful media exposure for the region and South Africa as a tourism destination.

The 2007 UCI B Championships is big in anyone's terms, with close on 60 countries coming to Cape Town to compete. With an operation budget of R6.4 million, sponsorship is obviously vital for its success!

The future of any sponsorship is to ensure that organisers put good products together. You need to deliver on promises so that there is return business, making each event even bigger and better. You need to look after each and every sponsor, regardless of size – they are involved because they believe it is their target market and it will work for them – so your biggest hurdle is to deliver on expectations and promises or you will lose them forever.

In turn, the sponsors must understand the benefits of sponsorships and not expect more than is reasonably deliverable.