Running Head: A sponsorship strategy for a specific brand

Marketing and Communication Specialization

Ramiro Lahera & Javier Tola

Professors’ managers

A sponsorship strategy for a specific brand

By
Sarah Barrière

Real Madrid Graduate School

MBA in Sports Management
March 3, 2019
Running Head: A sponsorship strategy for a specific brand

Table of contents

Sponsorship ................................................................................................................ 3

Sports sponsorship ..................................................................................................... 3

Sponsor to conduct values .......................................................................................... 3

IDS Borjomi International ............................................................................................ 4

IDS Borjomi International and sponsorship ................................................................. 5

Conclusion .................................................................................................................. 7

References.................................................................................................................. 8

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Running Head: A sponsorship strategy for a specific brand

Sponsorship

To be known, every business needs to communicate, and sponsoring is one of the key tools used to
communicate the brand.
Sponsorship is a commercial approach, which aims to support a person, cultural, caritative and artistic
organization, sports or scientific action. Sponsoring is not to be confused with philanthropy which is not looking for
commercial returns. A company that chooses to sponsor a person, such as an athlete, for example, a team, or an action
of general interest, expects returns which can have a financial interest or to merely improve the image of the company
or brand (Gross, 2014).
Sponsorship is now part of the communication campaigns developed by multiple brands in addition to an
advertising campaign which aims to highlight the company's investment in a cultural, sports or charity projects.
Sometimes it can also replace advertising campaigns that are often too expensive for many companies (Gross, 2014).
There are several ways to sponsor a project that meet the objectives of your communications campaign (West,
2017):
• Financial sponsorship usually consists of making a donation that will allow the development of the
action. The sponsor allocates a specific amount to support the development of the sponsored. These are
usually donations or grants.
• Technological sponsorship consists of offering to a person or a sponsored group its technological know-
how of the firm.
• In-kind sponsorship consists of offering material and human support or technical resources.
The advantages of sponsoring in a few points (West, 2017):
• Improve the image of the business
• Create brand awareness among the public
• Acquire new customers
• Offer services or products
• Show the quality of the products or services
• Benefit from the media coverage of the action
• Benefit from tax advantages

Sports sponsorship

It is a marketing tool that includes all the resources used by a company to support a sporting event, whether
professional or amateur. Different forms of support are possible: financial, material or technical. In return, the organizer
of the event must provide visibility to the company, in accordance with the height of its contribution, allowing to improve
its values, to increase its notoriety and its image (Schwarz & Hunter & LaFleur, 2012).
The objectives of a sport sponsorship plan must be part of a brand's own marketing and communication strategy.
It is a group that participates in the proper management of the company and it is a development and not just a craze.
We must, therefore, look at the meaning that the company wishes to give to its sponsorship policy and ensure that the
company is consistent with its values (Schwarz & Hunter & LaFleur, 2012).

Sponsor to conduct values

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Running Head: A sponsorship strategy for a specific brand

For sports sponsorship, brands carefully choose the sports fields they want to support according to the values
conveyed, the media exposure and the objectives set by the marketing department. Sport conveys many values. The
effect is an essential element in the buying behavior of clients. To be successful, we have to calculate the impact of the
action that will be sponsored (for example by using surveys before and after the event) (Gross, 2014).
The sports that attract the most brands are those that enjoy a high profile and transmit values in which brands
recognize themselves. For example, insurers have often represented the rugby for its values of cohesion and family
sport. Red Bull is the most active brand in recent years sponsoring extreme sports events. Through this communication,
the brand targets young customers who appreciate unusual events.
On the economic aspect, the main effect sought by sponsorship is the increased notoriety, therefore the
turnover, and the market shares. However, even if the impact indicators are somewhat reliable, it is be difficult to assess
the effect of long-term sponsorship directly. Moreover, sponsoring is frequently associated with an advertising campaign.
We can then ask what is the share of advertising on the economic and emotional benefits. Apart from sponsorship,
companies set up other marketing actions that can provide or even amplify the benefits (this is the case for the launch
of new products, for example) (West, 2017).
The decisive factors for the success of a sports sponsorship are (West, 2017):
• The consistency of the partnership with the company’s overall strategy is essential. Have an excellent
analysis of brand values and clearly identify target audience. The choice of sport is a crucial element in the
success of sponsorship actions.
• The objectives of the company must be clear, identified, and shared by both the company and its
partner. Requiring to achieve too many goals at the same time can be counterproductive. It is preferable to
slowly increase the participation of a partnership to meet all brand objectives.
• The duration of the partnership remains a determining factor in anchoring its action in the mind of the
consumer. Beyond the efficiency, it is also the guarantee of a reinforced coefficient of sympathy, and which
will withstand in time the possible storms that the company could go through outside its commitment to the
sport.
• The meaning or content of a sponsorship program is now fundamental. A sponsoring strategy can no
longer rely only on visibility criteria. It is necessary to give meaning to the image conveyed, to tell a
storytelling. Public buy-in will be strengthened and will accelerate awareness and the brand preference
process.

IDS Borjomi International

The number one of the producers of mineral water in eastern countries derives its name from the sources of the
Borjomi Gorge in central Georgia, which has been in operation since the 19th century. Its story is associated with the
Russian Imperial Romanov dynasty. After the Russian Revolution in 1917 and the Soviet invasion of Georgia, IDS
Borjomi was nationalized. These naturally sparkling mineral waters become an important export product. Additionally,
the Borjomi brand, which is exported to more than 40 countries, sales ten other mineral waters in Russia, Ukraine, and
Georgia. The company, which employs 7,000 people, was founded in October 2002 following the acquisition by
Georgian Glass and Mineral Waters (https://www.ids-borjomi.com/).
The company’s best-known mineral water brands are Borjomi, Morshynska, Mirgorodska, Truskavetska and
Svyatoi Istochnyk.

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Running Head: A sponsorship strategy for a specific brand

In 2016, the International Taste & Quality Institute gave three gold stars (corresponding to the stars of the
Michelin Guide in gastronomy), for the taste and quality of water Morshynska, which derives its mineral spring from the
Carpathians (My-Breath. (2016).
In 2018, two giants of the mineral water market, Nestlé, and Coca-Cola were interested in buying the company
(Sutenko, 2018).
IDS Borjomi International is a company that is continually looking for new technologies and innovations
(revolutionary packaging designs specific to each mineral water). The company invests massively in the preservation of
the environment (preservation of the natural environment through reforestation in the Borjomi Valley reserves - Georgia
- and in the Carpathians in Ukraine. Several hydrogeological and scientific types of research have identified health
benefits (https://www.ids-borjomi.com/).
Their vision is to strengthen their leadership in national and international markets by introducing innovative
approaches to production. The mission of IDS Borjomi International is to develop a culture of natural mineral water
consumption and promote a healthy lifestyle by offering the customers high-quality natural mineral water
(https://www.ids-borjomi.com/).
The advertising slot of the company is:
• Water for pleasure
• Water for the well-being of the body
• Water for vitality, energy and mineral salts
• Water for the home and office (so-called "clean water" in these countries often includes chemicals to be
consumed.

IDS Borjomi International and sponsorship

The company mainly bases its marketing on partnership support. For example, with Walt Disney Studios.
Limited edition of bottles has been specially created with Disney characters (Frozen and Star Wars) (IDS Borjomi
International, 2019).
Until today, the company has sponsored very few events. The most important are (https://www.ids-
borjomi.com/):
• A festival/exposition dedicated to children's creativity and family activities, in Kiev. Different events were
organized for the children, their parents and the pregnant women. The sponsorship was to provide water
and organize information meetings about pregnant women, fitness, and yoga (IDS Borjomi International,
2019).
• IDS Borjomi International has become an official partner of the Carpathian Yoga Fest (IDS Borjomi
International, 2019).
If the company wants to be involved in sponsoring, it must ensure that it has an effective communication strategy
(use of social networks, advertising campaign, public relations operations) and be active within the sponsored sports.
These parameters are essential to allow the public to join the sports sponsor and to develop an emotional link with the
brand (West, 2017).
Mineral water is naturally the water of athletes, whether professional or nonprofessional. A product perfectly
adapted to any situation of consumption (before, during and after the effort). Athletes have significant water needs. Any
physical activity causes a rise in the temperature of the body which results in a phenomenon of self-regulation, which
eliminates water and mineral salts. It is therefore essential for people to preserve and replenish their water reserve so

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Running Head: A sponsorship strategy for a specific brand

as not to alter their performance. The consumption of water rich in mineral salts will, therefore, play a significant role in
the practice of a sports activity (Skerrett, 2012).
IDS Borjomi International could offer its quality mineral water to participants during these three sports events
highlighting the factors "wellbeing," health and sport as the common denominator. By associating with these images of
youth, proximity, dynamism, conviviality, emotion, health, well-being, the company offers a real opportunity to recruit
new consumers.
The company could promote its products in various ways:
• Posters and flyers
• Website of the sports competition or related associations
• Advertising signs during sports events
• Announcements during the event
• Offer publicity gifts to participants and the public
• Positioned logo (T-shirt, shorts, bibs, etc.)
• Offer a special price
• Sponsor a team and/or an athlete on behalf of the company
• Interview of the company (newspapers, radios, and TV)

If I had to choose three sports to sponsor by the mineral waters of IDS Borjomi International, it would be:
Running: The choice of this sport is mainly linked to the fact that this activity corresponds to the needs of our
generation. This sport can be practiced as a novice or as a professional, and everyone can set their objectives. The
evolution of running demonstrates the need for a collective experience. Nowadays, people are very individualistic (Magill
& Schwartz & Breyer, 2014). Aside from the sporting and professional aspect of the sport, I think IDS Borjomi
International should focus on sponsoring health-related charity races (for example, a popular race to raise funds for
breast cancer research). This objective would be in line with the mission and the slot of the company.
Cycling: The company's wish is to grow at European and international level. Cycling is one of the favorite sports
in Europe. Sponsoring cycling races would be an incredible visual promontory for IDS Borjomi International in Europe.
The benefits of cycling for the environment and health are essential arguments in any brand promotion action. Cycling
is an environmentally friendly means of transportation, which does not consume fuel and does not produce any sound
nuances. For non-professionals, cycling conveys a "health" image that has many physical advantages (regular and
moderate physical activity, respect the body, improved mood, and reduced stress) (Carleton, 2009). All these values
are part of IDS Borjomi International's vision.
Tennis: In an international perspective, I would choose tennis. Mainly, competitions organized for juniors
players. The mineral water sponsorship market in adult tournaments is already under the influence of major brands such
as Vittel, Evian, Perrier, etc.
To target a younger audience, IDS Borjomi International can count on tennis. This sport can be practiced from
an early age. Tennis is both a social and physical activity. Concerning health and well-being, tennis has a considerable
physical impact. Aerobic strengthens the cardiovascular system (heart and lungs), and anaerobic improves the
functioning of the musculoskeletal system. Aerobic and anaerobic activities produce peptides that promote tissue
regeneration, repair torn muscles, and combat inflammatory problems. Tennis is both an aerobic and anaerobic activity
and contributes directly to keeping the endocrine system healthy (Lynch, 2016).
Tennis teaches self-discipline, sense of responsibility, respect for others and sportsmanship while promoting
critical and analytical thinking. All these skills can be beneficial in the activities of everyday life. One of the goals of IDS

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Running Head: A sponsorship strategy for a specific brand

Borjomi International is to teach people the importance of having a healthy body in a healthy mind, and that consuming
quality mineral water reinforces that ideal.
Tennis is a sport played, recognized and respected around the world. The game has not changed much since
the 19th century, but its popularity has grown steadily. Tennis knows no borders, and it is an essential opportunity for
the company to grow.

Conclusion
Sports sponsorship is a helpful communication tool and can be considered as a real communication opportunity
for a company. Indeed, it will help boost and improve the image of the company by reaching a wide audience, partners
and employees of the company (Lagae, 2005).
However, sports sponsorship is no longer an action initiated by sport passionates. In a current society in crisis,
the company is forced to carry out a precise study of strategy before committing to an investment in sport area (West,
2017).
Thus, many parameters such as sporting activity, the logical link between the image and the company, the cost
of the investment both in terms of communication and in terms of partnership and the support provided to the sponsored
sport, must be taken into account by the company before starting this adventure (Gross, 2014).
Sponsorship has an excellent image among consumers. The challenge of sponsorship is to create relationships,
emotions, more than any other form of communication. Sponsorship should allow the company to build a real
relationship with its consumers. Sports sponsorship remains a growing value in the marketing strategy of huge
companies. It is a procedure that allows the business to differentiate itself from its competitors, increase its sales,
increase its visibility and change consumer behavior. In the past, it was challenging to analyze the impact of sponsorship,
but now it is becoming easier. Sponsorship can be an economical alternative to expensive advertising campaigns.
Sports sponsorship is not a risk-free business, and the expected media coverage can turn out to be the opposite of
expectations (West, 2017).

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Running Head: A sponsorship strategy for a specific brand

References

Carleton, K. (2009, August 15). What Happens to Your Body When You Cycle. The Rosen Publishing Group, Inc - 48
pages.
Gross, Ph. (2014, November 7). Growing Brands Through Sponsorship: An Empirical Investigation of Brand Image
Transfer in a Sponsorship Alliance. Springer - 349 pages.
IDS Borjomi International. (2019). Company History. Retrieved from https://www.ids-borjomi.com/en/company/history/
Lagae, W. (2005). Sports Sponsorship and Marketing Communications: A European Perspective. Pearson Education -
248 pages.
Lynch, T. (2016, June 29). The Future of Health, Wellbeing and Physical Education: Optimising Children’s Health
through Local and Global Community Partnerships. Springer - 174 pages.
Magill, P. & Schwartz, T. & Breyer, M. (2014, July 29). Build Your Running Body: A Total-Body Fitness Plan for All
Distance Runners, from Milers to Ultramarathoners—Run Farther, Faster, and Injury-Free. The Experiment -
448 pages.
My-Breath. (2016). Ukrainian Water “Morshynska” Received International Recognition And Reward For Taste And
Quality. Retrieved from https://en.my-breath.com/56670-ukrainian-water-quotmorshynskaquot-received-
international-recognition-and-reward-for-taste-and-quality.
Schwarz, E.C. & Hunter, J.D. & LaFleur, A. (2012, August 9). Advanced Theory and Practice in Sport Marketing.
Routledge – 409 pages.
Skerrett, P. J. (2012, July 30). Trade sports drinks for water. Harvard Health Publishing. Harvard Medical School.
Retrieved from https://www.health.harvard.edu/blog/trade-sports-drinks-for-water-201207305079
Sutenko, J. (2018, October 5). Nestlé and Coca-Cola emerge as buyers of Russian mineral water company. Retrieved
from https://iegvu.agribusinessintelligence.informa.com/CO222282/Nestl-and-CocaCola-emerge-as-buyers-of-
Russian-mineral-water-company
West, D. (2017, May 15). Project Sponsorship: An Essential Guide for Those Sponsoring Project Within Their
Organizations. Routledge - 256 pages.