Event Management
Assignment
Your organisation is considering whether to become a major sponsor for next year’s Tour Down Under event. Your Board of Directors has asked you to compile a report for their consideration. Your task is to use the sponsorship screening process framework CEDAREE to help justify the decision as to whether your organisation should or should not become a major sponsor of the Tour Down Under.
Prepare a report that outlines:
• the pros and cons of this potential sponsorship agreement;
• the organisational/event fit;
• the marketing benefits with a concise summary of the proposed marketing plan;
• the return on investment; and
• a recommendation as to why this opportunity should be accepted or rejected.
Note. The Tour Down Under, a 7-day event, is a major professional road cycling event. It begins and finishes in Adelaide with 150 cyclists from around the globe competing for the winner’s jersey. The tour is the first stop in the ProTour world cycling calendar and the first ever event to be held outside of Europe. The Tour Down Under attracts hundreds of thousands of spectators and attracts many thousands of event-specific visitors from interstate and overseas. The Tour Down Under injects many millions of dollars into the South Australian State's economy through the direct expenditure of event specific visitors. Total visitor nights during the Tour Down Under are high and many of these are event specific visitors.
For more information:
Tour Down Under: http://www(dot)tourdownunder(dot)com(dot)au
South Australian Tourism: http://www(dot)southaustralia(dot)com/
Textbook used for Event Management MBA – Allen/O’Toole/Harris/McDonnell Fesitval & Special Event Management Fifth Edition ISBN: 9781742164618
Important Assignment writing instructions;
This is for an MBA program and that research should be deep and the standpoint should be firm (executive).
Marking for this paper is based on:
• Principles learnt (for example, number and understanding of principles referred to, their influence on the structure of this paper, number and correct citations of references, use of appropriate jargon)
• Applications of principles. That is, the analysis and evaluation of the example problem based on the principles, including the final recommendations and their justification
• How well the example problem was described, including the extent and depth of information (including the data) about it that was accessed.
• Structure &Presentation
• Style, grammar and language
Font: Calibri size 12
Format: (Max 2500 Word Count with 10% overage allowance = 2750
No plagiarism allowed
Line spacing 1.5 for assignment
Line spacing Single for References section
English
Default Margin 3.17 Left/3.17 Right
2.54 Top/Bottom
Left aligned
1. Assignments must contain proper citations and referencing using the Harvard style referred. that is:
a. citations (or in-text references) of quoted and paraphrased materials to support your arguments/comments, and
b. a reference list relating specifically to your in-text references.
2. Your grade will be adversely affected if there is no/poor citations and/or reference list, as referred to above.
3. Assignments of this nature normally contain between 12 and 20 relevant references from different peer sources in the reference list. Must be Peer Reviewed.
4. All references must be from credible sources. Journals sourced from the EBSCO Host library (see Online Library User Guide on the next page) should be used first, then books, company documents and other media.
5.
The total number of words should not exceed 2500 words (excluding your cover page, an executive summary, table of contents, list of references or appendices.) Only allows a 10% Margin. (Penalties will apply if you exceed the word limit). You may place any supporting material that exceeds this word limit in the appendices. However, a reader should not have to look at an appendix to determine the main thrust of the points you are making in your assignment. So make sure all your main points are in the body of your assignment and refer to the appendices that will support the points you are making.
Please note I have lost points in the past for the following errors in the Assignment:
Make sure there are "no indents"
Student:
Professor:
Course title:
Date:
Executive Summary
At present, sponsorship of events and sports is a marketing activity that is growing rapidly and is actually a vital communication tool that gradually more companies are utilizing. Using the CEDAR EE sponsorship screening process framework in this report, it is determined that the organization should go ahead and sponsor next year’s Tour Down Under event to be held in Adelaide, South Australia. The Tour Down Under event has traditionally been held in Europe and it has an admirable track record. It has high reputation and is highly regarded. The opportunity of sponsoring this famous event fits well with the overall mission of my organization, and there are several benefits the organization will enjoy by sponsoring the event. These benefits include brand enhancement, increased awareness, improved image and reputation, as well as increased sales. The sponsorship will benefit marketing since it will result in increased visibility on account of positive publicity through the media.
Table of Contents
TOC \o "1-3" \h \z \u HYPERLINK \l "_Toc411757832" Executive Summary PAGEREF _Toc411757832 \h 2
HYPERLINK \l "_Toc411757833" Event Management PAGEREF _Toc411757833 \h 4
HYPERLINK \l "_Toc411757834" 1.0 CEDAR EE Sponsorship Screening Process PAGEREF _Toc411757834 \h 4
HYPERLINK \l "_Toc411757835" 1.1 Customer audience PAGEREF _Toc411757835 \h 4
HYPERLINK \l "_Toc411757836" 1.2 Exposure potential PAGEREF _Toc411757836 \h 4
HYPERLINK \l "_Toc411757837" 1.3 Distribution channel audience PAGEREF _Toc411757837 \h 5
HYPERLINK \l "_Toc411757838" 1.4 Advantage over competitors PAGEREF _Toc411757838 \h 5
HYPERLINK \l "_Toc411757839" 1.5 Resource investment required PAGEREF _Toc411757839 \h 5
HYPERLINK \l "_Toc411757840" 1.6 Event’s characteristics PAGEREF _Toc411757840 \h 6
HYPERLINK \l "_Toc411757841" 1.7 Event organization’s reputation PAGEREF _Toc411757841 \h 6
HYPERLINK \l "_Toc411757842" 2.0 Pros and cons of this potential sponsorship agreement PAGEREF _Toc411757842 \h 6
HYPERLINK \l "_Toc411757843" 2.1 Pros PAGEREF _Toc411757843 \h 6
HYPERLINK \l "_Toc411757844" 2.2 Cons PAGEREF _Toc411757844 \h 7
HYPERLINK \l "_Toc411757845" 3.0 The organizational/event fit PAGEREF _Toc411757845 \h 7
HYPERLINK \l "_Toc411757846" 4.0 Marketing benefits PAGEREF _Toc411757846 \h 8
HYPERLINK \l "_Toc411757847" 4.1 Proposed marketing plan PAGEREF _Toc411757847 \h 9
HYPERLINK \l "_Toc411757848" 5.0 Return on investment (ROI) PAGEREF _Toc411757848 \h 10
HYPERLINK \l "_Toc411757849" 6.0 Recommendation as to why this opportunity should be accepted PAGEREF _Toc411757849 \h 11
HYPERLINK \l "_Toc411757850" 7.0 References PAGEREF _Toc411757850 \h 12
Event Management
Sponsorship is today a very fast growing marketing activity and it has become a very powerful communication tool that more and more companies are using. Sports sponsorship, according to Sözer and Vardar (2009, p. 37), is of major importance is helping companies achieve visibility and grow their popularity. The 1-week Tour Down Under event is a big professional cycling event. Since my organization is considering whether or not to become a major sponsor for next year’s Tour Down Under event, this report details the advantages and drawbacks of the potential sponsorship deal. It also analyzes the organizational/event fit, and how the sponsorship will benefit marketing. The marketing plan is described as well as the return on investment (ROI). In addition, this report recommends why this sponsorship deal should or should not be accepted and the sponsorship screening process framework CEDAR EE is used to help in justifying the decision.
1.0 CEDAR EE Sponsorship Screening Process
1.1 Customer audience
This pertains to whether the lifestyle and demographic profile of the target audience correspond with that of the product (Reisman & Eccleston 2013, p. 192). In the Tour Down Under event, the on-site audiences are cyclists, fans, and cycling enthusiasts who would be watching the event either live or through media such as television. Other audiences include members of the local community in Adelaide, existing and potential customers, the general public, as well as key decision-makers who include business leaders and the government. Tour Down Under usually draws thousands of spectators as well as many thousands of event-specific visitors from both overseas and interstate. The sponsorship of the Tour Down Under event is the best way in which the organization can communicate about its product to the target audience.
1.2 Exposure potential
The life of this Tour Down Under event is 7 days. If the organization purchases sponsorship rights and becomes the main sponsor, its name would appear in the programme. Signage would be included in the sponsorship. The Tour Down Under event can be tied into other media advertising such as advertising on tickets for the event, on the event’s website, on television, posters, flyers, radio and outdoor advertising.
1.3 Distribution channel audience
In the Tour Down Event, most of the audience members include people aged 15-45 years from middle to high socioeconomic status. In attendance would be both men and women. In addition, most members of the audience are people who are fitness conscious and have a lifestyle of engaging in regular exercise and sports activities. As such, the lifestyle and demographic profile of the target audiences actually matches that of the organization’s sportswear and sports shoes products
1.4 Advantage over competitors
The Tour Down Under event is something that is unique and distinctive. Clutter may be a problem since the event is supported by 50 partners with Subaru and Santos being the main sponsors (Tour Down Under 2015). Moreover, the Tour Down Under event is strongly associated with Santos and Subaru; the event’s main sponsors. The other sponsors of the event are not compatible with the product of the organization. It is notable if the organization fails to sponsor this event, the competitors will do so.
Donlan and Crowther (2014, p. 295) pointed out that business organizations sometimes engage themselves in sponsorship deals because of some level of threat from their business rivals. A lot of sponsors argue that this is in fact the key reason as to why they choose to sponsor an activity or event. Put simply, if they are uninterested and do not invest in sponsorship, their competitors would do so; something that would ultimately result in a market loss for them particularly in big events such as Olympics.
1.5 Resource investment required
The cost of this sponsorship is AU$5 million which would be paid to the event. Another AU$ 500,000 is required for marketing support, and 5 staffs would be required. The Tour Down Under event guarantees a minimum level of benefits to the organization including increased sales and market share, increased exposure in the media, as well as enhanced brand image
1.6 Event’s characteristics
The Tour Down Under event to be held in Adelaide is an event of high stature and importance considering that it is actually a major professional road cycling event and includes a total of 150 cyclists from all over the world competing for the winner’s jersey. The Tour Down Under is a highly regarded event since it is the initial stop in the ProTour international cycling calendar and first ever to be hosted in Australia. It also draws hundreds of thousands of viewers from abroad and from other parts of Australia (Tour Down Under 2015). Involvement with this event will certainly enhance the image of the organization. There is a chance of the event being controversial for instance, if there is crowd trouble. There is potential for positive impact on the organization’s employees since the event can help in enhancing employees’ relations and motivation.
1.7 Event organization’s reputation
The Tour Down Under event has historically been held in Europe and it has a proven track record. Moreover, this event has an image and a reputation with what the organization desires to be associated. The staffs of Tour Down Under event are accessible to the requests of the organization, and this event has a history of honoring its obligations. Macintosh (2012, p. 46) stated that since consumers are inclined to associate companies with the event they are promoting/sponsoring, companies need to choose events which are actually fitting with their product or their corporate image. As such, prior to signing up, it is essential to investigate the way in which the event is perceived. For instance, does the show have a clean image? Does the show have a classy, up-scale image?
2.0 Pros and cons of this potential sponsorship agreement
2.1 Pros
The pros include the following: improved reputation and image. Through the sponsorship, the company’s image would improve. The organization would also achieve increased reputation. Researchers have reported that an event’s image could be transferred to the sponsor in an event (Ryan & Fahy 2012, p. 1138).
Awareness raising: Palmer (2014, p. 25) stated that the brand name of a company would gain visibility and it would be included in the media coverage. The Virgin London Marathon, for instance, takes the name of its main sponsor (Kelly & Whiteman 2010, p. 35). As such, the Tour Down Under event can take the name of my organization and this would considerably raise its awareness. In essence, the event will result in increased customer awareness. Increase or generate sales: this can either be indirectly, for instance a positive change in the awareness or attitude of the audience results in purchase, or directly for instance when the company sells its products at the event it is sponsoring (Jensen & Cobbs 2014, p. 444). Brand enhancement: it is notable that tying up with an event which has a strong repute could help in enhancing the reputation of the organization purely through association (Greenhalgh & Greenwell 2013, p. 83). In the case of my company, by tying up to Tour Down Under, an event with a strong reputation, the reputation of the organization would be enhanced.
2.2 Cons
Sponsorship clutter: the visibility of the sponsoring company could be questionable if a lot of sponsors are involved in the event. Car...