Resources

Case Studies

The Comrades Marathon

  (Commercial Consultancy)
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Post the success of the 2005 sponsorship of the Comrades Marathon by Flora, Flora and Kaelo were again challenged by how we could connect the brand to runners and their lifestyles.
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Research

Sponsorship Tools


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At Kaelo Worldwide Media, we pride ourselves on being strategically led in all we do.  We use a variety of sponsorship tools to effectively evaluate and plan client strategy.  These tools also allow us to measure our clients investment against their business and marketing objectives.  These include:

Sponsorship audits are done to evaluate all existing client sponsorships and social investment programmes and recommend which sponsorships the client should retain, which should be terminated and how to leverage the retained properties. This strategic process ensures sponsorship is integrated into the overall business and marketing strategies of the company.

Sponsorship blueprint is an evaluation tool uniquely created for each clients business, brand and/or products. The blueprint assists in proposal evaluations, usually resulting in counter offers, requesting what the client needs as opposed to what the rights holder has to sell. The blueprint further assists with strategic decision making, strategic leveraging plans and budgeting. Blueprints highlight all relevant areas to be measured.

Sponsorship matrix. The development of a sponsorship matrix allows for all sponsorship activities to be mapped in terms of objectives, target markets, thematic platforms, regions and sponsorship genres, this highlights overlaps and gaps.

These three tools are used together to achieve the following outcomes:

  • Clarifying the role of Sponsorship within specified target audiences
  • Outlines/determines key messages
  • Confirms thematic platforms
  • Creates a common sponsorship evaluation currency
  • Highlights the inherent value of the sponsorship properties
  • Clearly identifies non-delivery areas of sponsorship properties
  • Creates a leveraging framework
  • Enables the creation of strategic and relevant leveraging plans
  • Leads to intelligent budget allocation
  • Assists in tailor-making sponsorship properties for the client/company/brand – requesting what the client needs as opposed to what the rights holder has to sell
  • Enables sponsorship mapping
  • Ensures strategically relevant ROO expectations
  • Creation of relevant measurement plans
  • Creation of client specific sponsorship proposal outline document
  • Articulates a Sponsorship Approach
  • Distinguishes between social responsibility, CSI, CRM, donations, promotions and sponsorships


Sponsorship valuations


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This tool values the rights included in the sponsorship proposal. To accurately gauge the sponsorship value of any property, the following areas are taken into account:

Value of Tangible benefits
Tangible benefits refer to the quantitative benefits in a package, both measured and non-measured, such as advertising in the ‘official programme’ and sponsor ID on the event website.

Value of Intangible benefits
Intangibles are the qualitative benefits that a sponsorship delivers, such as borrowed imagery and audience loyalty. When a company buys sponsorship, it is primarily buying access to property’s intangibles.

Geographic reach/impact
Reach reflects the number, size and value of the market(s) in which a property is relevant at the point of sale i.e. regional vs. national value.

Cost/Benefit ratio
Because sponsorship is more labour-intensive than measured media and lacks guarantees such as advertising’s ‘make-goods’, it must over-deliver. We therefore apply a cost/benefit ratio of at least 1-to-1.5
I.e. for every R 1 sponsors invest, they receive at least R 1.5 worth of benefits.

Price adjusters to rights fee
Price adjusters are external factors that are not reflected in the valuation, but should be considered on a case-by-case basis. These factors may result in increasing or decreasing the rights fee.

Price adjusters can include factors such as:

  • desirability of property to sponsor category
  • on-site sales rights
  • pass-through rights
  • value of sponsor’s promotional commitment
  • multi-term contract discount
  • introduction of new sponsors
  • right to content and its delivery