Promoting a brand

by The Times 100 on Monday 20th June, 2011

The chief executive of the All England Club, Ian Ritchie, is confident that this year's Wimbledon Championships will make good profits, even if the weather is somewhat unpredictable. Last year Wimbledon made a 31 million pound profit (surplus), and the previous few years saw surpluses in the region of a 25 to 30 million pounds. Any surplus made is passed on to the Lawn Tennis Association. Only a small percentage of the revenue actually comes from ticket sales though. 50% of Wimbledon's income comes from selling the broadcasting rights of the tournament, which is now shown in 185 different countries. The second largest contributor to Wimbledon's revenue is sponsorship. Wimbledon does not have advertising around the courts, but firms can take advantage of the promotional possibilities the event has to offer by entering into agreements to provide goods and services. Firms that sponsor Wimbledon include Slazenger, Jacob's Creek and Lavazza. Unsurprisingly, Slazenger supplies the balls for the Championship, and has done since 1902. Jacob's Creek and Lavazza are providing the wine and coffee respectively. For the sponsors, association with the Wimbledon name provides an excellent promotional opportunity. (BBC News 19th June 2011)

Food company McCain also uses sponsorship as part of its promotional activities. An example includes the sponsorship of the TV show Family Fortunes. This is an effective way of reaching a wide audience because the popular family programme attracts many viewers. McCain also sponsors McCain Athletics Networks which encourage young people to get involved in athletics through local clubs. Sponsorship is regularly used within the area of sport. An organisation can benefit two-fold from the use of sponsorship in its promotional mix. Firstly, a greater awareness of the product or brand can be developed; and secondly, the image of an organisation can be cultivated by being associated with another well-known and highly regarded organisation or event.

Questions

1.Define sponsorship.
2.Other than sponsorship, what other types of promotion might organisations employ?
3.Using the case study, explain how McCain uses both above and below-the-line promotion.

Answers to questions

1.Define sponsorship.Sponsorship is a long term association where a business provides funding to another body e.g. McCain sponsors the TV show Family Fortunes.
2.Other than sponsorship, what other types of promotion might firms employ?Other types of promotion include:

  • sales promotion
  • direct marketing
  • public relations
  • advertising.

3.Using the case study, explain how McCain uses both above and below-the-line promotion.
 Above the line methods employed by McCain include:

  • Television advertising, for example, the 'It's All Good' campaign
  • Advertising on supermarket trolleys.

Below the line methods that McCain uses include:

  • Leaflets and discount voucher books delivered door-to-door
  • Newsletter emailed to consumers
  • Track and Field Roadshows are delivered by McCain and UK Athletics.

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