Course Name: Written Analysis and communication

Assignment Name: Bank of America Sport Sponsorship

Assignment Number: 3

Amber Sharma

Section : A

Roll No: 111102

Date of Submission: 27th Sept, 2011.

Institute of Management, Nirma University

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Executive Summary:

Bank of America is world largest institution has been sponsoring majority of the sports events in the

region they have been working with the philosophy of the community, corporate and individual

connectivity in order to improve their lines of business. BOA’s is sponsoring sports events from 1880’s

with the same philosophy however the BOA decision to decide the future sponsorship on the basis of

return of investment and return of objective has made to continuation of NASCAR, Chicago marathon,

Dallas cowboys and discontinuation of sporting events like PGA and U.S Olympics .

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Bank of America:

Bank of America(BOA) is the world’s largest financial institution with the annual revenue of $56.9

billion and net income of $16.5 billion . BOA’s 80 % percent relationships with the Global Fortune 500

and 98% percent relationship with U.S Fortune 500 shows the bank’s deep interest in corporate

relationships for the banking business. BOA spent more in sponsoring events as compared to other

banks which shows the BOA’s keen interest in following this strategy. The bank spent as per IEG $85

million only on the sponsorship right fees excluding the amount required to promoting and advertising

the sponsorships. BOA’s strategy of sponsoring sports event is because of their strong belief to show

people and community their commitment to serve them. BOA serving as one of the original winner’s

circle Sponsors to eventually become the official Bank of Baseball which helped them to sweep the set

of corporate relationship in any sport defines the Bank’s strategy for the future growth.

BOA has three lines of business which are Global consumer and small business banking like checking

and savings, credit cards, home equity and online banking which is individual based. The second one is

Global wealth and investment management like full banking service, investment, and trust product to

wealthy clients which means catering to players and high net income group. The last line of business is

Global corporate and investment banking which includes cash management and payment services ,

commercial real estate banking, leasing and business capital which is related corporate relationship.

Rey Bednar an MBA from Harvard worked as a CEO of north America and south America prism,

sponsorship and event strategy currently working as senior vice president and global sponsorship

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executive in BOA. Rey Bednar has a good experience in formulating a method to calculate the amount

of profit, company will in terms return on objective and return of investment. Return of objective

(ROO) included such elements as Brand awareness, differentiation, favorability, positive associations.

Return on investment(ROI) includes aspects like direct business attribution such as individual group

such as fan base, high net income group such as players and corporate sectors. ROI also includes value

in kind such as revenue earned from tickets, passes and the last aspects is the marketing assets likes

signage, visibility on board. This model is known as “ the universal bank model “

As per Rey Bednar model NASCAR sponsorship fits into the model as it satisfies all the attributes of

the model like direct business attribution and value kind by NO 2 TV Viewership, 75 million fan base

and corporate involvement through tickets , visa brand credit, debit card, ATM card, processing,

servicing, payroll services, treasury and payroll services. Marketing assets also gets covered through

the visibility in 36 states and 110 tracks. Return of objective also gets taken care of marketing assets

and NASCAR reputation.

U.S Olympic Committee satisfy the marketing assets and the return on objective which can be inferred

from the global reach , the use of the Olympic rings in the brand promotion of the company. Dallas

cowboys satisfy the return on objective constraint of the universal bank model to the fullest. Return on

investment is also getting taken care by the financing of the stadium which is worth $1 billion. The

survey done by the IEG showed that PGA is just an 95% brand awareness in B2B platform which is

already taken care by Dallas Cowboys in Texas area which supports the decision of discontinuing the

title sponsorships and continuing the sponsorship on a smaller level so that the relationship is

maintained.

The acquiring of the LaSalle bank also create the situation to decide the continuation of the sponsorship

of the Chicago marathon as per the BOA’s philosophy the creation of trust level through the medium of

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sports is required to work on the basis of trust which will make them to connect with the community

and the return on objective is also getting satisfy due to the exposure level of 1.5 million.

Problem Statement:

Whether to continue or discontinue with the future sponsorships of the NASCAR, U.S. Olympics,

Dallas cowboys, PGA and Chicago marathon or not?

Causes:

1: The Return on objective the primary motive of the company was achieved however to continue with

the same policy was the area of concern.

2: The Return on investment policy was not properly executed on the above games.

Objective:

1: To get the maximum return on investment.

2: Growth of the lines of business.

3: proper utilization of the sponsorship.

4: To keep the return on objective on the same level.

5: To gain the trust of the newly acquired Bank’s local community.

Options:

1: To continue the sponsorship of the NASCAR, Dallas Cowboys, Chicago marathon and discontinue

the sponsorship of the PGA & U.S Olympics.

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2: To continue the sponsorship of the NASCAR, Dallas Cowboys and discontinue the sponsorship of

the PGA, U.S Olympics & Chicago.

3: To continue the sponsorship of the Dallas Cowboys, Chicago marathon and discontinue the

sponsorship of the PGA, U.S Olympics & NASCAR.

4: To continue the sponsorships of the NASCAR, Chicago marathon and discontinue the sponsorship of

the PGA , U.S Olympics & Dallas Cowboys.

Evaluations of options:

1:Option1 satisfies the objectives 1, 2, 3, 4 and 5.

2: Option2 satisfies the objectives 1, 2, 3, 4 however the discontinuation of Chicago marathon will

result in the decrease in the trust level of the local community as per the Banks policy.

3: Option3 satisfies the objectives 1, 2, 3, 5 however the discontinuation of NASCAR will result in the

loss of the return on objective in the U.S region.

4:Option4 satisfies the objectives 1, 2, 4, 5 however the discontinuation of Dallas will lead to loss on

return on investment.

Decision:

1: To continue the sponsorship of the NASCAR, Dallas Cowboys, Chicago marathon and discontinue

the sponsorship of the PGA & U.S Olympics.

Action plan:

1: Sign a Contract with Dallas Cowboys, Chicago marathon, NASCAR and promote the sponsorship.

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2: Discontinue the title sponsorship of the PGA and U.S Olympics however maintaining sponsorships

at a smaller level.

Contingency plan:

1: Sign a Contract with Dallas Cowboys, NASCAR and promote the sponsorship.

2: Discontinue the title sponsorship of the PGA, Chicago marathon and U.S Olympics however

maintaining Sponsorships at a smaller level.

Number of Words: 1047

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