Red Bull Versus Coca Cola Sport Sponsorship from a Sponsor’s Perspective
RED BULL VERSUS COCA COLA SPORT SPONSORSHIP FROM A SPONSOR’S PERSPECTIVE
Author: Inken Hillnhagen email: hillnhai@uni.coventry.ac.uk University: Coventry University Faculty: Business School/Sport and Event Management
buying the rights. Involved in this money is planning the sponsorship deal, carrying it out and last but not least evaluating the whole process and engagement (Hermanns 2003). So according to this the strategic planning process is crucial in order to communicate effectively and achieve the desired outcome. It has become more professional and the amount of money and time spent on this process has increased over the last years. Furthermore, Bühler and Nufer (2010) see mutual understanding, a long-term perspective and trust as important to satisfy the needs of both parties. Hence there are a lot of different perspectives that need to be considered during the strategic planning of a sponsorship deal and different types of strategies can be followed. The comparative case study of Coca-Cola and Red Bull’ sport sponsorship strategy relies on extensive secondary data, from newspaper coverage and official websites from
Abstract In 2010, 18.2 billion US-$ were spent on sponsoring in North America of which 68 per cent are spent on sport sponsoring, by far the leading form of sponsoring (Streng 2010). The area of Sport Sponsorship is immensely important in the sport business. In the major sport leagues sponsorship makes up at least a third of the overall turnover (Ludwig and Schneider 2010). However, the way in which sport sponsorship is dealt with has changed dramatically in recent years. The time where a sponsor just kindly signed a contract to support the local club is gone, especially when it comes to global operating organizations. On the one hand companies are willing to spend more on sport sponsorship. On the other hand they want to gain more in return. In 2010, 63.7 per cent of the companies have a written strategic and operational planning before
Author: Inken Hillnhagen email: hillnhai@uni.coventry.ac.uk University: Coventry University Faculty: Business School/Sport and Event Management
buying the rights. Involved in this money is planning the sponsorship deal, carrying it out and last but not least evaluating the whole process and engagement (Hermanns 2003). So according to this the strategic planning process is crucial in order to communicate effectively and achieve the desired outcome. It has become more professional and the amount of money and time spent on this process has increased over the last years. Furthermore, Bühler and Nufer (2010) see mutual understanding, a long-term perspective and trust as important to satisfy the needs of both parties. Hence there are a lot of different perspectives that need to be considered during the strategic planning of a sponsorship deal and different types of strategies can be followed. The comparative case study of Coca-Cola and Red Bull’ sport sponsorship strategy relies on extensive secondary data, from newspaper coverage and official websites from
Abstract In 2010, 18.2 billion US-$ were spent on sponsoring in North America of which 68 per cent are spent on sport sponsoring, by far the leading form of sponsoring (Streng 2010). The area of Sport Sponsorship is immensely important in the sport business. In the major sport leagues sponsorship makes up at least a third of the overall turnover (Ludwig and Schneider 2010). However, the way in which sport sponsorship is dealt with has changed dramatically in recent years. The time where a sponsor just kindly signed a contract to support the local club is gone, especially when it comes to global operating organizations. On the one hand companies are willing to spend more on sport sponsorship. On the other hand they want to gain more in return. In 2010, 63.7 per cent of the companies have a written strategic and operational planning before
References: Bühler, A. and Nufer, G. (2010) Relationship Marketing in Sports. Oxford: Butterworth-Heinemann Hermanns, A (2003) ‘Planung des Sportsponsorings’. in Sponsoring und Events im Sport ed. by Hermanns, A. and Riedmüller, F. Munich: Vahlen, 69-80 Hermanns, A. and Büscher, D. (2010) Sponsoring Trends 2010 [online] available from [21st January 2011] Ludwig, S. and Schneider, C. (2010) Finanzreport deutscher Profiligen. Sponsors 2010 (12), 36-50, Cologne Streng, K. (2011) Sponsoringausgaben steigen weltweit an [online] available from [21st January 2011] 160