Superbrand sponsorship
A Vodafone case study

Page 1: Introduction

Vodafone sponsors several leading sporting brands including the record breaking Ferrari Formula 1 motor racing team and Manchester United, one of the world's most successful football clubs. Sponsoring these leaders is an important part of Vodafone's corporate and marketing strategies, which are designed to make the company one of the world's best known brands. As a winner itself in its own line of...
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Page 2: The benefits of sponsorship

Sponsorship is the material support of an event, activity or organisation by an unrelated partner. It is a good way of increasing brand awareness, which helps to generate consumer preference and to foster brand loyalty. A company can reinforce awareness among its target market by sponsoring an event or organisation that attracts a similar target market. Sponsorship is not an act of charity...
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Page 3: Sponsoring Ferrari

Vodafone intends to be recognised as one of the world's leading brands. Its sponsorship of Ferrari, with the immensely valuable media coverage that Formula 1 attracts, helps Vodafone to achieve this objective. Vodafone has over 100 million customers worldwide, spanning five continents and 28 countries. Formula 1 offers Vodafone high profile exposure in a sport that commands a worldwide...
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Page 4: Sponsorship strategy

Vodafone sees sponsorship as involving far more than having a logo on a football shirt or a racing car. The company believes that its sponsees act as ambassadors for the Vodafone brand, saying to the world 'This brand is all about being dependable, empathetic, innovative, can do and full of vitality and life.' Moreover, Vodafone has established tangible links between the products and services it...
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Page 5: Fitting into corporate strategies

An organisation's strategies are the long-term plans that are the means that enable it to achieve its objectives (ends). Vodafone's current target is to become one of the world's top ten brands. To achieve this, it is expanding its global presence. Vodafone is the market leader in the UK and in many of the other markets in which it operates. To stay ahead of the field it continually seeks...
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Page 6: Marketing strategy

Marketing strategy is a key part of overall corporate strategy, which is concerned with developing plans for finding out what customers want and then efficiently meeting their requirements. Vodafone's marketing aim in the UK is to retain market leadership on revenue per customer, network quality and customer satisfaction. Vodafone's strategy is customer focused and product led; the company is...
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Page 7: Vodafone UK, Ferrari and Formula 1 products - building public relations

Public relations (PR) is the planned, sustained effort an organisation makes to establish, develop and build relationships with its many publics. Links that Vodafone has built with its partners (including Manchester United and Ferrari) provide excellent positive public relations. In an information hungry society, many people want to know about key events and breaking news. Consumers want...
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Page 8: Is it worth it?

Sponsorship is expensive, particularly at the premium end of the market; a world famous company like Ferrari deals only with partner organisations that it also sees as its equivalent. Given the cost of sponsorship agreements, companies make a careful financial analysis of them to ensure that there are substantial ongoing rewards. Vodafone is committed to sponsorship because the benefits are...
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Page 9: Conclusion

This case study has shown that intelligent sponsorship involves far more than putting the sponsor's name on football shirts or racing cars, however famous. A sponsorship partnership involves identifying a shared set of objectives, and also leveraging a set of additional benefits from partnership - which in this case involves providing a range of value added services to users that enhance...
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