A REPORT ON

BRAND BULDING

OF VOLKSWAGEN Polo R Cup -2013

2

SUMMER INTERNSHIP PROGRAM

A REPORT ON

BRAND BUILDNG OF VOLKSWAGEN

Prepared by -

Niraj Yeole

Volkswagen India Pvt. Ltd.

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REPORT ON

BRAND BUILDNG OF VOLKSWAGEN

By:

Niraj Yeole

12BSP0787

A report submitted in partial fulfilment of the requirement of PGPM

Program of IBS Mumbai

Submitted to:

Date of Submission: 14/07/2013

Prof. Mahendra Singhvi

Faculty Guide,

IBS-Pune

Mr. Mihir Barve (Marketing Manager)

Volkswagen Motorsport India

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Declaration

This project entitled “Brand Building of Volkswagen” submitted to IBS Mumbai, is a

record of an Original work done during the period 12th

March, 2013 to 01st June, 2013 under

the guidance of Mr. Mihir Barve, Marketing Manager, Volkswagen Motorsport India and

Prof. Mahendra Singhvi, IBS Pune. This project work is submitted in the partial fulfilment of

the requirements for the award of the certificate of Post-Graduate Programme in Management

(PGPM).

The results embodied in this report have not been submitted to any other university or

institute for the award of any degree/diploma etc.

Adhering Volkswagen’s privacy policy, financial details are not discussed/disclosed in the

report.

Name: Niraj Yeole

Date: 14/07/2013

Place: Mumbai

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Acknowledgement

I have taken sincere efforts in making the project a case that would not only help my

professional growth in future but also give value addition to “Volkswagen Motorsport India”.

I express my sincere thanks to my project guide, Mr. Mihir Barve, Marketing Manager,

Volkswagen Motorsport India and Prof. Mahendra Singhvi, IBS Pune for guiding me right

from the inception till successful completion of the project. I would like to express my special

gratitude and thanks to Mr. Prithviraj Siddappa, Head of Volkswagen Motorsport India, for

giving me the opportunity to work with such esteemed organization.

I would also like to thank Prof. Madhavi Garikaparthi, Prof. Rachna Sharma and Prof.

Sudha Jayashankar for guiding me throughout the project. Their support stood not only for

professional learning but also for personal improvements.

I would also like to thank my colleagues Mr. Bhushan Bhole, Ms. Gasha Alawani, Ms.

Manju Karishma Sakhrani, Mr. Nikhil Arlikatti and Ms. Shivani Kanoongo, for their

help and cooperation throughout my project.

Name – Niraj Yeole

Enrollment number – 12BSP0787

College - IBS-MUMBAI

Batch – 2012-2014

Email- nirajyeole@yahoo.co.in

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Contents

Summary ................................................................................................................................................. 7

Introduction ............................................................................................................................................ 8

The Volkswagen Group ......................................................................................................................... 10

Volkswagen India Pvt. Ltd. .................................................................................................................... 11

Motorsport ............................................................................................................................................ 11

Motorsport in India ............................................................................................................................... 12

Volkswagen Motorsport ....................................................................................................................... 13

Volkswagen Polo R Cup ......................................................................................................................... 15

Brand Management .............................................................................................................................. 18

Sponsorship Development .................................................................................................................... 19

Advertising and Sponsorship ................................................................................................................ 20

Sponsorship development for Polo R Cup ............................................................................................ 22

Sponsorship development process: ...................................................................................................... 22

SWOT analysis - Polo R Cup .................................................................................................................. 32

Achievements: ...................................................................................................................................... 39

Conclusions ........................................................................................................................................... 40

Recommendations ................................................................................................................................ 41

Glossary ................................................................................................................................................. 42

Bibliography .......................................................................................................................................... 43

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Summary

The report is tasked to look at the marketing mix’s role in success of a business. The project

is focused on understanding various components of Advertising and promotional activities

carried by Volkswagen India and other businesses associated with the Polo R Cup event.

Brand managers use different strategies to promote their brand through different

forms/channels and reach at the customer’s touch points. The project had a special emphasis

on the Sponsorship development. This involved interacting with PR manager, event

organizing team, Brand Managers of other companies.

Sponsorship development include various data collection, understand prospective company’s

current marketing plan, making space for Polo R Cup in their marketing plan by customizing

offerings that would attract corporate/brand managers and reach their target market.

Over 70 brand managers were approached during the project. Even failure in deal closures,

left a lot of learning on brand management strategies adopted by different companies. This

includes effect of marketing mix on sales of the company, effect of financial stability and

growth prospects of brands on its marketing mix, what opportunities small businesses and

business conglomerate bag to target their market.

Volkswagen Motorsport India – Polo R Cup creates a set of market distinguished with

psychographic, demographic and societal characteristics which suits numerous marketers.

Factors that count while designing a marketing mix for a particular brand are - stage in the

product life cycle, market share and consumer base, competition, advertising frequency,

advertising budget, alternatives for the investment.

Polo R Cup gives exposure to its associates through Print advertising-Newspapers and

Community magazines, Broadcast media-Television and Radio, Outdoor advertising and

digital media (Internet) - Motorsport website, Facebook, Twitter.

The project further highlights the brand management and consumer decision journey, how

can a brand manager get a mix of marketing techniques to form an efficient promotion mix.

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Introduction

Businesses face new challenges and intense competition every day - lowering costs to reduce

selling price, Customer-First approach, One-stop-shop solutions, continuous improvement,

investment and expansion opportunities, etc., are amongst the fundamentals, parameters and

tools used by businesses for new customer acquisition, retain existing customers and create

value for its customers, investors and stake holders.

Brand awareness, Brand recall, Brand image and Brand attitude play important role in

connecting organization to its target market. These elements form a bridge to pull potential

customers to its set of consumers.

Sponsorship is a rapidly growing tool in both commercial and social marketing areas, in India

and overseas.

Sponsorship is still very much in its infancy, especially in the sports arena. With this in mind,

there is unlimited scope and opportunities to broaden one’s competitive advantage by

increasing credibility, image, visibility and prestige in sponsoring events attracting the

market.

Increase in viewership of an event or expectation of an event will be viewed, discussed,

published or referred by the target market, these estimates and research outcomes pull

marketers for marketing their product as sponsor or partner for the event.

It is an element of the integrated marketing plan through which companies build strong

customer relationships, increased brand visibility, brand awareness and create value for their

customers and for themselves.

Audience can be clustered by their demographic, psychographic and societal characters.

Marketers decide on their target market for promotion techniques, positioning ideas and

attitude to increase visibility of their brand and in turn drive purchases.

Volkswagen Motorsport India – Polo R Cup is a platform to showcase and demonstrate its

technological advancement, brand building, increase in brand awareness and brand visibility

for Volkswagen Products. In today’s fast pace, where marketers do not want to evade any

opportunities to market their products, avoid losing its visibility and retain or climb the top

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spot of the customer’s evoked set, failure to which results losing current and potential market

share to competitors. Volkswagen Motorsport India invents a platform for other marketers to

market their products during the event and during the promotional activities carried by

Volkswagen Motorsport India.

Marketing opportunities include sponsorship rights, branding on huge hoardings, invitation

passes, branding at the food court, etc. Every possible place which gets scanned through

human eye is area of opportunity for the marketer to create its visibility.

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The Volkswagen Group1

The Volkswagen Group with its headquarters in Wolfsburg, Germany, is one of the world’s

leading automobile manufacturers and the largest carmaker in Europe.

The Group comprises twelve brands:

Volkswagen Passenger Cars

Audi

SEAT

ŠKODA

Bentley

Bugatti

Lamborghini

Porsche

Ducati

Volkswagen Commercial Vehicles

Scania

MAN

The product spectrum ranges from motorcycles to low-consumption small cars and luxury

vehicles. In the commercial vehicle sector, the products include ranges from pick-ups, buses

and heavy trucks.

The Volkswagen Group is also active in other fields of business, manufacturing large-bore

diesel engines for marine and stationary applications (turnkey power plants), turbochargers,

turbo machinery (steam and gas turbines), compressors and chemical reactors. It also

produces vehicle transmissions, special gear units for wind turbines, slide bearings and

couplings as well as testing systems for the mobility sector.

In addition, the Volkswagen Group offers a wide range of financial services, including dealer

and customer financing, leasing, banking and insurance activities, and fleet management.

The Group’s goal is to offer attractive, safe and environmentally sound vehicles which can

compete in an increasingly tough market and set world standards in their respective class.

1 (The Volkswagen Group, n.d.)

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Volkswagen India Pvt. Ltd.

Headquartered in Pune, Maharashtra (India), the Volkswagen Group is represented by three

brands in India: Volkswagen, Audi and Skoda. The Volkswagen Group has been active for

more than 10 years in India. The journey which began with the entry of the Skoda brand in

2001, Audi brand and Volkswagen brand in 2007. Each brand has its own character and

operates as an independent entity in the market.

Motorsport2

Motorsport is group of competitive events which primarily involve use of motorized vehicles.

Motorsport can be for non-racing or racing purpose.

Non-Racing Motorsport

Drifting - Driving technique where the driver intentionally over steers, causing loss of

traction in the rear wheels, while maintaining control from entry to exit of a corner

Regularity rallying (TSD-Time Speed Distance Rallying) - Conducted on public roads

which includes off-road and/or track sections and drivers compete to maintain precise

times and precise average speeds on various segments of a predefined route.

Motorcycle trials - Non-speed event on specialized motorcycles where drivers compete

to cross over the trials without losing balance and touching their feet on ground.

Freestyle Motocross - Sport of motorcycle in which motorcycle riders attempt to impress

judges with jumps and stunts

Racing Motorsport includes

Automobile racing or car racing

­ Formula Racing or Open wheel racing - variety of single- seater racing,

Formula One, involves an annual World Championship for drivers and

constructors.

­ Touring car racing - Road racing that is run with production derived race cars

­ One-make racing - Championships employed production-based cars from a

single manufacturer or even a single model from a manufacturer's range.

2 (Motorsport, n.d.)

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­ Stock car racing - Raced on oval tracks, stock cars vaguely resemble production

cars.

­ Kart Racing –Competing open-wheel motorsport with small, open, four-wheeled

vehicles called karts

Rally Racing - Form of auto racing that takes place on public or private roads with

modified production or specially built road-legal cars

Motorcycle racing (also known as bike racing) - Motorcycle sport of racing

motorcycles which include road racing and off road racing on race track circuits or open

courses.

Air Racing –Competition of airplanes

Boat Racing (Water racing) – Racing boats on water

Motorsport in India

Motorsport is a popular form of sport in the nation of India. Formula One in particular has

taken off in the country in the last few years. Motorsport is not a mass sport in India, huge

success for The First Formula One Indian Grand Prix which took place in October 2011 at the

newly built Buddh International Circuit created a pathway for making it taste for Indian

market.

The Federation of Motor Sport of India is official governing body of motorsport in the

country.

Motorsport Circuits in India3

Circuit Location

Buddh International Circuit Gretar Noida

Irungattukottai Race Track Chennai

Kari Motor Speedway Coimbatore

3 (The Federation of Motorsports Club of India (FMSCI), n.d.)

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Volkswagen Motorsport

In more than 40 years of motorsport history Volkswagen has been setting standards in

Motorsport World.

The brand’s history in motorsport started in 1966, in formula racing. Formula Vee – "V”

stood for Volkswagen – became an important career step for drivers like Keke Rosberg

(Finnish former racing driver and winner of the 1982 Formula One World Championship) or

NikiLauda (Austrian former Formula One racing driver and three-time F1 World Champion).

With 58 hp and the robust technology of the Beetle it offered favourably priced entry and

high-quality racing for young drivers. Later, one-make cups like Formula König powered by

Volkswagen and Formula Volkswagen built upon this line and consistently followed through

on the one-make cup idea with standard chassis.

In comparison with other manufacturers, Volkswagen set the pace on the formula stage as

well. Between 1979 and 1994 Volkswagen, as a Formula 3 engine manufacturer, won 55

international titles. At the prestigious Formula 3 finale in Macau in ¬November 2009 and

2010 Edoardo Mortara celebrated wins "powered by Volkswagen”.

Attractive one-make cups in touring car racing4

In more than three decades Volkswagen has shaped the touring car scene as well. The

Scirocco Cup, as the first one-make cup from 1976 onwards, produced a subsequent Formula

1 driver, Manfred Winkel hock. It was followed by the Golf Cup and the Lupo/Polo Cup

from which numerous talented drivers managed to ascend to higher-level series. Currently,

the Scirocco R-Cup is setting bench-marks in the European racing circuits.

Dakar Rally

Cross country rally racing is the biggest challenge in Motorsport which the Volkswagen

brand tackled at the world’s toughest rally the “Dakar” a distance of over 9000kms, spread

over 2-3 countries and covered within a period of 2 weeks.

4 (Volkswagen India, n.d.)

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Scirocco R Cup

The Scirocco R-Cup is world’s first one make cup in which eco-conscious bio natural gas

instead of conventional petrol is being used. Reducing CO2 emissions up to 80%.

Golf GTI Cup

Golf GTI Cup is Volkswagen’s one make cup tradition in the Far East.

Formula 3

Volkswagen announced its return to Formula 3 as an engine supplier in 2007, the brand continued

a long tradition that spanned the years from 1979-1994. 2010 will go down in Volkswagen

Motorsport history as an extremely successful year of chasing titles (41 victories in a total of 75

races in the 2011 season).

World Rally Championship (WRC)5

The World Rally Championship (WRC) is a rallying series organised by the Federation

Internationale de l'Automobile (FIA) or International Automobile Federation. World Rally

Cars are built on production 1.6-litre four-cylinder cars with turbochargers, anti-lag systems,

four-wheel-drive, sequential gearboxes, aerodynamic parts and other enhancements bringing

the price of a WRC car to around US$1 million.

Successes in rally sport

Volkswagen has been systematically promoting young talent since 1980. For a decade, the

Golf Rally Cup offered optimum opportunities to young drivers. Concurrently, Volkswagen

in the 1986 World Rally Championship (WRC) clinched the title win in Group A with the

Golf and driver Kenneth Eriksson. In cross-country rally sport the brand achieved its first big

exploit by winning the 1980 Dakar Rally. From 2009 to 2011 Volkswagen became the first

manufacturer to win the legendary rally with a car powered by a Diesel engine. Volkswagen

is creating history once again by re-entering the WRC 2013. After rigorous testing through-

out 2012, the Polo WRC race car is taking the rally by storm by stamping wins in the early

stages.

5 (Volkswagen Motorsport, n.d.)

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Volkswagen Polo R Cup6

Volkswagen Polo R Cup is one make race organized by Volkswagen Motorsport India. This

is one of the strategies adopted by Volkswagen to increase its brand awareness, demonstrate

the dominant position in market and bring about recognition and presence in motorsport.

In other words, Volkswagen motorsport is part of Volkswagen’s marketing mix tools for

Brand Building.

Currently in its fourth season, the Volkswagen Polo R Cup aims at bringing out and

promoting the circuit racing talent in the country, along with supporting and giving

international exposure to the seasoned drivers. Volkswagen Polo R Cup runs 1.4-litre TSI

powered, race-prepared Polo cars on a grid of 20. The 180 hp Turbocharged Stratified

Injection (TSI) 1.4 litre four-cylinder engine largely equates to the production version and

high torque development, easily handles the heavy touring car.

The engine control unit, engine mounts, flywheel, inlet and exhaust systems are modified for

use in racing. The agile suspension too, is fitted with special spring-damper units. Power is

transmitted by a DSG gearbox with modified final drive, gear ratios and a limited slip

differential.

The braking system features particularly ample dimensions and is combined with racing

ABS. The 334-millimetre discs in the front and the 232-millimetre discs at the rear, in

conjunction with the 17-inch wheels, enable enormous deceleration rates. The Race Polo runs

on special JK tyres for dry and wet conditions, which guarantee high levels of grip and

vehicle control.

Based on the high safety standard of the production version, the Race Polo is equipped with a

safety package offering maximum protection to the young drivers in case of an accident. The

HANS (head and neck support) system, which has proved its viability in Formula 1 is

prescribed. This protection is complemented by a roll cage of tubular steel in conjunction

with a racing seat integrated with a head protector. An integrated fire extinguishing system

which is activated in the cockpit and engine compartment in case of a fire adds up to the

safety features of these Race Polos. To prepare the young drivers for higher racing categories,

all cars are fitted with a professional data logging system.

6 (Volkswagen Motorsport India, n.d.)

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The drivers are chosen from all over the country after a rigorous selection process.

During the two day program, based on various tests, selection committee carefully chooses

13 drivers who would join previous season’s drivers to compete for top honours.

The selected drivers race on the three prominent race circuits of the country-Coimbatore,

Chennai and Delhi. Apart from the championship with six race weekends (a race weekend

includes one day for free practice, one day for qualifying races and the final race day). In last

season, the Polo R Cup drivers experienced competition against the international drivers in a

Night Race, organized on the streets of Colombo, Sri Lanka.

The championship divides the drivers into three categories-

Junior (drivers under 26 years of age, with less than 8 races’ experience within the last 5

years)

Pro (drivers under 26 years of age, with more than 8 races’ experience within the last 5 years)

Master (drivers over 26 years of age).

By the end of the season, the winner of Pro category gets to represent India at the

Volkswagen Scirocco R Cup, Germany as a driver-exchange programme. The winner of

junior category gets a free seat in the next season of Volkswagen Polo R Cup.

Rules:

To fulfil the entry cost for the races the drivers can also bring in their sponsors who

would be approved by Volkswagen for a commercial display on the car, the racing suit

and helmet.

The drivers may not perform any modifications on the vehicle. Only the front stabilizer is

three-way adjustable, in addition, the inflation pressure of the tyres may be adjusted.

Per race weekend and driver a maximum of six JK slick tyres are permitted and four rain

tyres.

For the drivers, including the helmet, the HANS system and fireproof clothing, a standard

weight of 75 kilograms has been established. Drivers weighing less than that will be

given respective ballast, which is installed under the driver's seat, to compensate for the

difference.

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Per event a free practice and a qualifying session, each lasting 30 minutes, are scheduled.

After the free practice and qualifying sessions, respectively, a driver's name is drawn

from the top five who will disclose the data recorded for his or her fastest lap to all the

other contenders.

Points are awarded according to the following scheme: 60-48-40-34-32-30-28-26-24-22-

20-18-16-14-12-10-8-6-4-2. For the first two races of the season, half-points are awarded

in order to reduce the advantage of the experienced drivers over the rookies.

Guest entrants receive no points and no prize money. Registered contenders move up in

the points and prize money classification.

The title winner is not allowed to compete again in the Volkswagen Polo R Cup the

following year.

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Brand Management

When we talk about brands most people think of Pepsi, Coca Cola, Microsoft, Nike, Adidas,

Nokia, Samsung, Airtel, Vodafone , Hero, etc. These brands are cited with best practices

examples in the Business to Customer (B2C) branding. For these companies, their brand

represents strong asset and element to increase sale of its products.

“Branding is about taking something in common and improving upon it in ways that make it

more valuable and meaningful”7

Companies are constantly approached and invited by various groups or business to sponsor

events or activities. For example, Pepsi has been title sponsor for Board of Cricket Council

India’s (BCCI) Indian premier league for next five seasons, starting from 2013.The deal was

signed for INR 396.8 crores.8 By shelling out such large sum, Pepsi hopes to gain favourable

public attention. Companies put out good money to place their names on physical

facilities such as buildings, stadiums, sporting gears, jerseys worn by players to keep their

names in the public’s eye.

Not only the entertainment events, companies partner for important cause such as - Colgate

sponsoring oral health care kiosk, Aircel distributes umbrellas during the monsoon, CRY is

supported by Novartis India Ltd., by donating 2% of value of its sales.9 By partnering with a

cause many people believe in, the company can enhance its corporate reputation, raise brand

awareness, increase customer loyalty, build sales and increase favourable press coverage.

These sponsorship efforts are not limited to events. Companies also consider celebrities from

movies, sports, television commercials to add glitter to their brand image. Sponsorship is an

investment which gets returns for the business by sales in turn or it gets treated as expense if

it does not affect the sales volume and value.

If a company decides to sponsor an event it need to figure is there a brand fit, does the event

or the physical property is scanned by its target market. A good example of for brand fit is,

Jaguar sponsoring James Bond movies to convey the aggression and performance delivered

by its cars. On the other hand, it does not make sense for Cadbury’s Bournvita or a baby food

7 (Philip Kotler and Waldemer Pfoertsch, n.d.)

8 (The Times of India, 2012)

9 (CRY, n.d.)

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brand sponsoring the same movie which will not match the character and treat the deal as an

expense for the business.

Sponsorship Development

Introduction

A sponsor is the individual or group that provides the support, similar to an activity, event or

organization financially of by provision of products or services.

Sponsorships are a business tool used by various companies to achieve defined marketing

and communication objectives. Sponsorship is a cash and/or in-kind fee paid to a property

(typically in sports, arts, entertainment or causes) in return for access to the exploitable

commercial potential associated with that property.

Sponsorship is about two parties creating additional value to each other through their

association. Successful sports organisations are able to link sponsor (the customer) need with

an appropriate product (or property).

Objectives

Most commercial sponsorships have both trading objectives and communication objectives. Trading

objectives mainly refer to securing merchandising rights at events. For example, Energy drink

sponsors an event, as part of their sponsorship arrangement they seek to have exclusive rights that

only their Energy Drink available at the tournament. It is hoped that these ‘forced’ trials of product

will lead to more favorable attitude to the product and lead to repurchase in other situations.

The two main communication objectives for sponsorships are brand awareness and brand attitude.

However, most sponsorship evaluation has focused on process evaluation (e.g., amount of exposure in

various media), or consumers’ awareness of event sponsors and the influence of this awareness on

corporate image or attitude.

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Advertising and Sponsorship

Sponsorship is similar to advertising. Both are used to communicate an organization’s

message and image for a product, brand, or service to the target market. Both advertising and

sponsorship aim to increase the salience or relative differences in competitor’s products

However, the process by which advertising and sponsorship achieve these communication

objectives differ. Advertising is a paid communication in which the medium and the message

are controlled by the advertiser and can be explicitly linked to the relevant organization or

brand.

Corporate goals for sponsorship can be: Increase revenue, create platform for developing

relationships and provide an opportunity to entertain customers in unique environment and

generate benefits for employees10

Advertising is able to communicate complex messages, both in terms of information and

imagery. On the other hand, sponsorship persuades indirectly by linking the sponsor’s

message to an event or organizational though the sponsor’s contract may include advertising

at the event.

Commercial sponsors are concerned primarily with brand names, trademarks, logo, symbols,

and associating these with the “image” attributes of the sponsee. Hence, most commercial

sponsorship objectives require only limited cognitive processing, mainly via “unconscious”

associative learning.

10

(Philip Kotler and Waldemer Pfoertsch, n.d.)

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Type of Media

Media Description Example

Paid media A company pays for media

space or for a third party to

promote its brand

Television commercial, Radio,

magazine, billboard, newspaper,

search engine marketing

Owned A company uses its own

channels to advertise

Catalogues, brochures, website,

Facebook fan page

Earned Consumers create and/or share

the media company creates

Sharing popular commercial

over social media, rankings by

community sites or magazine

Sold Company Invites other

marketers to place their content

on its owned media

An e-commerce retailer sells its

ad space, Facebook,

Magicbricks

In Polo R Cup marketing team we have continuously worked on the ‘sold media’ category.

Associates/partners for the event get opportunity to place their products, branding, campaigns

in the event. In exchange, other business gives cash or supports the event with its products

and/or services.

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Sponsorship development for Polo R Cup

Objective of sponsorship/partnering with Volkswagen Motorsport India – Polo R Cup is to

create platform for other organizations and businesses to have opportunity to showcase its

offerings to audience and spectators of the event.

Sponsorship development process:11

1. Identify potential sponsors

The first step is Identify. This is the infancy stage of the process. Everything is fresh and new.

At this stage we look at the options and identify prospective or potential sponsors.

Central to product identification is determining those brands or properties that will best meet

or fit the needs of potential sponsors.

Sponsor needs generally lies within one or more of the following areas:

Support for brand position: This is usually when a new product is launched or a product is

re-branded

11

(Masuda, 2011)

Identify potential sponsor

Development Process

Reaching Sponsor targer market

Recruit

Negotation

Evaluate

Closure

Servicing the sponsor

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1. New range of deodorants launched by Cinthol which needs brad positioning in

demographics of youth. Godrej Consumer Products limited had initiated its aggressive

marketing campaign during Indian Premier league Season 6

2. Pepsi Official sponsor for Indian Premier League used its investment in the sport by

launching its new product Pepsi Atom (competing Coca Cola’s Thumps Up) with strong

campaign

Exposure for the Brand: Hero Motocorp, leading two wheeler manufacturers associated

with MTV’s reality show Roadies to give higher exposure to its recently latest launch – Hero

Impulse.

Increased access to the target audience: A finance company sponsors a sport because the

demographics of the sport match their target audience and the sport provides opportunities to

interact with that demographic.

Carefully identifying the target market for potential sponsors minimizes time wastage and

ensures potential sponsors are not overlooked

There can be a temptation to look at only current contacts or high-profile organizations. This

limits the potential of sponsorship and should be avoided by the identification process.

Developing a list of businesses marketing products/services within the region of activity i.e.

the area in which the event predominately operates. This should not be limited to businesses

with offices located in specific region. Even if the business markets in the given region, it

should be included in the list.

A brainstorming session is an easy way to create this list. Identify as many businesses as

possible and avoid narrowing.

In current project the brands and businesses were distinguished broadly by their sectors as

outlined below:

1. Life style – Apparels, Accessories, Watches, Luggage carriers, personal care products

(deodorants, fairness cream, grooming products etc.)

2. Electronics – Mobile, Camera, Music system for cars and home, Television,

Computers, Home appliances, Electronic companies, automobile batteries

3. Telecom

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4. IT – Software development firms, Anti-Virus, hardware manufacturers

5. Food and Beverages – Fast food, confectioneries, health drinks, carbonated drinks,

Milk, energy drinks, Ready to eat, snacking, whey protein, liquor

companies(surrogate), packaged drinking and mineral water

6. BFSI(Banking, Financial Services and Insurance) – NBFCs, Banks, Security trading ,

Insurance companies, Mutual Funds

7. Logistics

8. Hospitality and tourism – Hotels, travel and leisure, State tourism, Online travel

portals

9. Automobile – Spare part manufacturers, automobile interior manufacturers

10. Miscellaneous – Movies, TV channels , Cement, Real estate, Business groups (Future

group, Aditya Birla, Reliance etc.), Pharmaceuticals, Online Shopping retailers

(Myntra, Jabong, Yebhi, etc.)

The list is revised with list of businesses that include sponsorship as part of their marketing

plan or have recently been aggressive in market penetration. (Karbonn Mobile for Champions

league T20, Fiama Di Wills – Packed to the rafters, etc.)

Businesses that have not used sponsorship in the past require substantially more work in

creating any successful sponsorship partnership. If organization is also new to the

sponsorship world, it is highly recommended that we use sponsors with previous experience

in Sponsorship.

At this stage we decide not only who should be approached but following elements are

furthermore considered-

­ What value will be added to the prospect by partnering the event

­ Does the event provide a stage for the prospect to communicate their message to its

target market

­ How does it fortify their brand image and visibility

­ What opportunities for marketing can be offered during the promotional activities and

the main event

­ Is there a brand fit

­ Demographics of audience match the target market of potential sponsor

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There is need to identify own needs during this phase. Having limited time, sponsors that will

offer clear value should be targeted on priority with whom the deal can be finalised. These

are the ones for whom the event meets their needs and offer benefits worth cost.

2. The development process

At this stage we decide how the events and activities can better meet the sponsor. This can

easily be done by dividing our offerings or features of the event in two parts:

1. Generic:

i. Number of race drivers / race cars

ii. Number of races per season

iii. Type of sport

iv. Regions where the races will be organized

2. User features

i. Number of spectators

ii. Demographics of the spectators

iii. Media exposure (Digital, Print, Social, etc.)

iv. Brand recognition

Now, colossal research and findings about listed brands/companies is done to best fit the

needs of the identified potential sponsors.

Below outlined parameters are considered while learning about the potential sponsor

­ Their products / Services

­ Their customers

­ Financial performance in past. Reports are referred from regular releases about

company’s financial performance (Balance sheet, annual report)

­ Company’s strategy to expand – New product launch, merger and acquisition

­ Company’s record of sponsoring different events (specially sports)

­ Upcoming events

­ Marketing initiatives / plans

o Recent ad campaigns

o Trial campaigns

o Intense and frequency of advertising

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o Brand Ambassador

This information can be accessed or studied from websites, publicity materials, annual

reports, newspapers, magazines and other sources.

Case

Company: Godrej Consumer Products Ltd.(GCPL)

Product: aer

Description: air fresheners

Launched: June, 2012

Financials: Net profits INR 727 Crore for Financial Year 2012

Competition: Ambi Pur (Procter and Gamble), Air wick (Reckitt Benckise)

USP: Eye catching design and On/Off Switch.

Target Set: Car owners

Sponsorship: Confederation of Indian Industry's (CII) flagship event, the Marketing

Summit 2012

Marketing initiatives: Television Commercial, On Ground and print

Brand Ambassador: Bollywood Actor, Aamir Khan is signed as brand ambassador for

GCPL products

This information was gathered from information available on internet – Godrej Website,

Articles and press releases, Community websites (Campaign India, eventfaqs, etc), E-

Newspapers.

3. Reaching Sponsor target market

Here targets are set of marketing managers and brand managers who decide inclusion of

different tools in their organization’s marketing mix.

Generation of contacts is crucial stage in sponsorship development. Contact information of

Brand manager, corporate communications manager, media Manager etc. are not easily

accessible. In general practice, communication can happen only through board line numbers

given on organization’s website and other media.

Large number of organizations in potential sponsor’s list gets discarded at this stage.

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Techniques of contact generation are:

­ Personal Individual contacts – References from friends, colleagues, professors,

­ Contacts from different verticals in organization- Purchase department, Vendor

management team.

­ Timely released directories like Autocar professional which has information of

automobile companies and their contact details, Overdrive Magazine

­ Social websites – LinkedIn

4. Recruit

It is important to understand the role of the corporate marketing manager (the person usually

has to be convinced). Role of the marketing manager primarily takes two responsibilities:

Brand Building and enhance the marketing activities to increase sales.

This is the “growing up” phase of sponsorship development life cycle. Ideas of creating value

for potential sponsor now grow from a vague impulse into a full-fledged proposal. The focus

is on pitching and selling the proposal. Recruit here is preferable to “Pitch” or “Sell” as this

emphasizes the two-way nature of relationship.

The pitch consists of a meeting with interested prospective cantered on presentation of

sponsorship proposal. The aim here is to introduce our product / event, clear communication

of how it can meet perspective’s needs

The proposal consists of following components: (Appendix A)

I. Introduction

Introducing the organisation.

Main objective of the organisation

Achievements

II. Introduction to the event

Introduce the event

Objective of the event

Schedule / event calendar

Achievements in previous seasons

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Technical specifications

Media exposure in previous seasons

III. How the event will meet their needs

Detailed specific sponsor needs that will be met and how they will be met e.g. media

coverage, demographic profile of spectators and viewers

IV. Specifics of sponsorship

Details of the sponsorship package offered which includes deliverables from the

organizer i.e. the host and the receivables from the sponsor. Space allocation for

display/demonstration of their products and services, platform for their

communication, Branding areas, etc.

Specifics of offerings are dependent on the amount sponsorship amount or equivalent

products/services are exchanged

V. The cost

The sponsorship fee - Amount that sponsor will directly pay to the sponsee/host

Signage costs

VI. How to move forward

A clear plan of how the deal can be taken forward. Means of payments, delivering the

products (Barter), and point of contact for hosts.

5. Negotiation

At this stage, both the parties get opportunity to further discuss, develop and negotiate the

exchange (branding from the host, receivables from the sponsor).

The aim is not just to get sponsor on board, but also to gain mutual benefits in long run.

Understanding, needs, value, brand and decision making process is important to effectively

communicate the proposal.

Few simple pointers to maximise chances of converting potential sponsor to a partner-

- Over deliver and under promise

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- Consider prospect’s needs as signing a sponsor which is not good fit may be bad deal

for both

It creates avenue for both the parties to develop the relationship to better suit both their needs.

Aim here is to customise the offerings from both the parties. Customization will cover

position for branding space, kiosks at the venue, cross promotion techniques on websites and

social media, etc.

While customising the package or the offer, it should be clear for the negotiator to know what

are the limits, what cannot be customized e.g. logo placement of Volkswagen on roof of the

Race Car cannot be replaced, space allocated to the associate partner cannot be allocated to

other parties.

6. Evaluate

The next stage is to weighing of proposal by the prospective. At this stage not much stays in

control of the sponsee. The prospective evaluates the proposal on its merits and calculates the

benefits brand would get by signing the deal.

One way to ease the anxiety, cross check if the proposal includes detailed information on all

deliverables and receivables that will be traded during the deal. All information, prior

commitments during the recruitment stage, terms and conditions should be made clear to

have hassle free transactions further.

Sponsorship deals have large amount of cash or owned product’s turn around. Here it is not

only the brand manager who is to be convinced with the proposal, the top management of the

organization takes decision on such deals.

Factors like tax, brand image, return on investment, worth of the deal, man power to be

allocated for commencement of the deal are studied deeply.

7. The close

The close is simply signing the contract. Legal counsel for both parties should be involved in

this stage or process that will provide specific legal elements which need to be covered in the

contract such as intellectual property rights, clauses of contract breached by any of the

parties, clause of event being cancelled for any events, and so forth.

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At this stage, initial draft of agreement or contract is shared with the sponsor. Once sponsor

agrees to the details mentioned in the draft, contract on legal documents (stamp paper) is

printed, shared and copy of each contract is kept with both the parties (third party if

involved).

8. Servicing the sponsor

Servicing the sponsor is process of delivering what is promised. This is critical step in

ensuring sponsor specification and an enduring long term relationship.

The “senior” phase of the life cycle, the proposal has matured into a real business deal.

Fulfilment is the most important step in the process and the key to future success. This

is where, we deliver what is promised.

Ensuring ‘the sell’ is right. Sponsor servicing starts before the contracts are signed. Crystal

clear articulation of promises objectives, and assumptions should be communicated and

thoroughly understood.

Creating timelines, roles and responsibilities for how and when each element of sponsorship

should be planned in conjunction with the sponsor.

At every stage the timeline, sponsor should be in loop of who is doing what and when.

If something is not going as hoped, it should be communicated to the sponsor. Solicit their

input and make them part of the solution. This will add value to the relationship for future.

Protecting the sponsor from ambush marketing, if it is in organization’s power, there should

be maximum efforts to prevent sponsor’s competitors to market their product around the

property or event venue. Competitors usually try to have ambush marketing to gain visibility.

These circumstances are unavoidable when an individual player or team endorse the

competition brand. Example-

Nike, the official apparel sponsors for the Indian National Cricket Team. This deal is

estimated at about INR 270 Crore for five years. On the other hand, Nike’s competitor

Adidas has endorsed Cricketer Sachin Tendulkar who uses cricketing gear with eye

catching branding of Adidas12

12

(NDTV, 2011)

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Pepsi being official sponsor for IPL, it cannot keep its competitor Coca Cola away

from the event during the matches held in Mumbai for their home team being official

sponsor for the franchisee

After the event, have a feedback with the sponsor. Results and experience should be shared

by the sponsor. What could have been done better? What aspects did the sponsor like best?

How can the event improve the process next time around?

There should be a report form to communicate with the sponsor how each attribute of the

contract was fulfilled. Feedback and response are very important. Understand it is far easier

to retain the current sponsor than to find a new one.

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SWOT analysis - Polo R Cup

Strength Weakness

Strong Brand Name

Geographically diverse business

Over 50 Years of experience in

Motorsport

Continuous technological elevation

High standard quality products and

services

Motorsport not a mass sport in India

No Government support

Only one International circuit built in

India

Opportunity Threat

Scope of building stronger ground for

Motorsport in country

Option for small businesses to partner

for the event

World class built Buddh International

Circuit to elevate motorsport in India

Other sporting events – Indian

Premier league

Reality Shows – Roadies, Kaun

Banega Crorepati, etc.

Industry rivalry – Maruti, Mahindra,

Toyota

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Marketing Planning

Marketing plans vary by duration, scope and method of development.

Target set

The target set for Volkswagen Motorsport India -

1. Businesses, Organizations, Brands, Products (B2B connect)

Who would partner the event by cash sponsorship or in-kind sponsorship (barter deals for

products and services). These entities will partner to market their own products and/or

services to second set of target market for Polo R Cup.

2. Spectators, audiences, participants, viewers (B2C connect)

Target market for Volkswagen Products

Polo R Cup event connects partnering organizations and their target set. Partnering for the

event is more towards ‘Promotions’ part of the marketing mix. Promotions include various

media and methods used for connecting product/service to the market.

Sponsors get to connect to its potential customers by branding on race tracks, race cars, race

suits, hospitality area, media lounge, media booklet etc. This creates greater visibility for the

brand.

Consumer buying Behaviour

Buying behaviour is the decision processes and acts of people involved in buying and using

product or services.

Buyers’ reaction to a firms’ marketing strategy makes great impact on the sales of its

products which lead to success or failure. Firms create a marketing strategy that will create or

satisfy customer to purchases. Hence marketers carefully analyse what, where and how to

present their products to its target market.

These target markets are decided by segmenting the whole set. The segments are done by

demographics- Age, sex, ethnicity, income etc.

Geographic – Metros, towns etc.

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Psychographic –lifestyle, personality, motives etc.

While making decisions to partner the Polo R Cup event, marketers consider the lifestyle,

personality, attitude of the target market towards their product.

Brands which target youth and speed lovers or motorsport followers will tend to join hands

for the event.

Benefits of targeting one set or group of individuals-

It allows firm to specialize or make a isolated marketing plans as maximum information

is accessible and available

All energy can be focused in satisfying one group

Comparatively lower expenditure

Cons for targeting single set of customers

All eggs in one basket

Small shift in taste of audience will affect achievement of desired objective or goal

Objective for such partnering is not directly maximising sales, it is efficiency to attract large

portion at less cost.

The Marketing Communications Mix

A company’s total marketing communication mix or promotion mix consist of blend of

Advertising, personal selling, sales promotion, public relation and direct marketing. This

combination will help a marketer to reach out to the customer base raising awareness and

driving sustained sales of the product or service offerings.

What makes a consumer pick a particular product when offered a set of products from

different brands? All businesses inculcate the best technology and design to attract their

customers. At the shelf, all products have the very similar features, quality, quantity to price,

etc. What and How would you make customer buy your product?

35

Being there, strong, bright and concrete in consumer decision journey13

It is important for marketers to be in the mental block of the consumer and pull them to buy

their brand. The purchase decision process has changed over period of time. The way the

consumer research and buy a product. The main goal of marketing is to reach consumers at

the moments that most influence their decisions. That’s why consumer electronics companies

make sure not only that customers see their televisions in stores but also that those televisions

display vivid high-definition pictures. Every feature is demonstrated to the customer base.

This keeps adding data about the product. When the buyer reaches the shelf and is about to

pick a product from multiple options available, the buyer will be comfortable in picking the

one they have learnt more during the research process.

The Purchase Funnel

Marketing has always sought those moments, or touch points, when consumers are open to

influence. For years, touch points have been understood through the metaphor of a

“funnel”—consumers start with a number of potential brands in mind (the wide end of the

funnel), marketing is then directed at them as they methodically reduce that number and

move through the funnel, and at the end they emerge with the one brand they chose to

purchase .

Today, the funnel concept fails to capture all the touch points and key buying factors

resulting from the explosion of product choices and digital channels, coupled with the

emergence of an increasingly discerning, well-informed consumer. A more sophisticated

approach is required to help marketers navigate this environment, which is less linear and

13

(David Court, 2009)

36

more complicated than the funnel suggests. This approach is called the consumer decision

journey.

The Consumer Decision Making process

In order for organizations to most effectively use allocate its budgets to media which are

exposed to its target set. It is important to recognize and embrace that the emerging platforms

are additional resources to complement and expand their entire marketing arsenals rather than

replacements for existing marketing initiatives.

The goal of many marketing campaigns is to establish their business brand firmly among the

evoked set of products considered by most target consumers when making a purchase

decision.

Partnering the events gives marketers to connect to its target set closely. Experience about a

product is important element in decision making process. For a business which enters the

market with product that already exists, it is difficult to divert the users of other brand to

purchase their product. The reason why a buyer will change its taste or would like to switch

to other brand would happen when the services provided by current brand disappoints the

user, consumer wants to try a new product, etc.

37

A Garnier Men’s Face Wash user will not shift to other brand unless the product has not

delivered what it promised. Whereas if a new entrant like Fiama Di Will Men’s face wash

will be able to pull the users of other brands by offering free samples or trials. It is not

feasible for marketers to do such campaigns by going door to door. Marketers include events

like Polo R Cup, college functions, shopping malls in their marketing communication mix to

give the customer base the experience and pull them towards purchasing their brand.

Following such practices, ITC had targeted students at college fests for brand activation of

Fiama Di Wills new range in Men’s grooming products. The activations were held at college

fests In Mumbai and Bangalore like Crossroads at SRCC, Confluence at Hansraj, Mecca at

Hindu, Quintessence at Lady Irwin, Lashkaara at Khalsa, etc.

The objective was to increase awareness about the product and generate maximum trials14

Such initiatives during the growth phase of product life cycle, does the strong brand building.

14

(Patel, 2013)

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Brand Building of Volkswagen

Corporate exposure-

When an organization partners with the event, it is not just the exchange of goods, cash,

services etc.; it connects large number of employees to the brand.

Media Exposure-

News channels, newspapers, magazines, social websites like Facebook and Twitter, videos on

you tube and other broadcast channels connect large number of audience and to the brand.

Exclusive Facebook page could gain over 20,000 likes in a month’s time.

Technology showcasing-

Competitor brands make efforts to touch customers by advertising, offering test drives, giving

discounts on purchase during specific period etc. Volkswagen additionally offers its viewers

the experience of performance delivery by Volkswagen cars.

Contests to keep followers close to the event-

Monthly contests designed for individual participation. Lucky winners were given prizes.

This created buzz amongst the event followers to stay updated on past facts and technical

questions.

39

Achievements:

IT Company – Barter deal for online game development for Polo R Cup and Inventory

management software

Electronic Retail – Barter deal and Cash sponsorship

Beverage company – Barter deal

40

Conclusions

Chances of getting a organization on board as associate is directly proportional to the

exposure or visibility index of the event

Getting a sponsor on-board which has very high brand fit takes least efforts to complete

the sponsorship development process

Marketing mix of the company is designed in a manner that it supports the other

initiatives by the brand and covers maximum ground

The brand name of Volkswagen plays important element for an organization to partner

for the event

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Recommendations

Extensive efforts for greater exposure for motorsport should be made in initial years.

There would not be inflow in form of huge number of audiences, sponsorship

agreements as immediate effects. It will take at least 2 to 3 years to make space for the

event in country of over 1.2 billion census

Brand activation for the event should be done at mass and populated regions like

shopping malls, universities, express highways, etc.

Brand Managers who decline partnering with the event should be invited for the event

Feedback from current sponsors to work on the on the weaknesses and build on the

strengths

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Glossary

Brand attitude: Brand attitude is how you portray the attitude of the brand and how the

consumers think about it

Brand Awareness: Extent to which a brand is recognized by potential customers, and is

correctly associated with a particular product. Expressed usually as a percentage of target

market, brand awareness is the primary goal of advertising in the early months or years of

a product's introduction

Brand image: The impression in the consumers' mind of a brand's total personality (real

and imaginary qualities and shortcomings). Brand image is developed over time through

advertising campaigns with a consistent theme, and is authenticated through the

consumers' direct experience

Brand Recall: A qualitative measure of how well a brand name is connected with a

product type or class of products by consumers

Dual Shift Gearbox(DSG): An electronically controlled dual-clutch multiple-shaft

manual gearbox, in a transaxle design – without a conventional clutch pedal,[4] and with

full automatic,[2] or semi-manual control.

Evoked Set: A group of relevant brands that a prospective consumer is favourably

familiar with when they are thinking about making a purchase

Integrated Marketing Plan: An approach to achieving the objectives of a marketing

campaign, through a well-coordinated use of different promotional methods that are

intended to reinforce each other.

Target market: A target market is group of persons/companies for whom a firm creates

and maintains a Marketing Mix that specifically fits the needs and preferences of that

group. Does the company have the resources to create the appropriate MM and does it

meet the company's objectives.

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