Impact of Sport Sponsorship on a Brand: Investigated in the Case of Löfbergs Lila AB

119 Pages·2012·2.49 MB·English

Nina Prantl
Stefan Andres

Impact of Sport Sponsorship
on a Brand

Investigated in the Case of Löfbergs Lila AB

Business Administration
Master Thesis
FEAD01
15 ECTS

Term: Spring 2012
Supervisor: Bo Rundh
Nina Prantl. Stefan Andres. Impact of Sport Sponsorship on a Brand: Investigated in
the Case of Löfbergs Lila AB

© The Authors
Karlstad, 2012

Nina Prantl, B.A. Stefan Andres, B.A.
Karrösten 168 Lußstraße 15
A-6460 Imst D-76227 Karlsruhe
AUSTRIA GERMANY
ACKNOWLEDGEMENT
First and foremost, we would like to thank our supervisor Prof. Bo Rundh for
his time and the constructive inputs. We are grateful for the extraordinary care
and support we received.
Furthermore, we highly appreciate the trust and support we got from Löfbergs
Lila AB, in particular from Leif Sjöblom, Head of Marketing. Without his
willingness to cooperate the research would not have been possible.
Additionally, we also want to thank Färjestad BK and Mats Tågmark for the
assistance and support in conducting the survey.
A special thank we would like to express to Berit Hjort for her help translating
the survey as well as to our “Swedish Survey Squad” for the great work done
at Löfbergs Lila Arena.
Last but not least, we would like to thank our families.

ABSTRACT
ABSTRACT
The underlying motivation of this paper is the investigation of the impact
sport sponsorship has on a brand. As sport sponsorship is scholarly
considered to be a powerful brand equity building method, this
communication tool gains globally in importance by contributing essentially to
business success. While the popularity increases, simultaneously the
investments, necessary for an efficient realization, rise. Nonetheless even
though sponsorship is frequently applied, the evaluation is mainly based on
quantitative terms (e.g. media tracking), neglecting the qualitative impacts.
In order to gain meaningful data, which allows generalization, the study is
based on the sport sponsorship involvement of Löfbergs Lila AB at the
hockey club Färjestad BK. A quantitative research strategy is applied by the
conduction of a survey within the pre-defined target audience of hockey affine
people.
Three propositions from different perspectives are used to investigate the
main research question and provide a broader picture of the topic. Therefore
in order to answer the research question, Does sport sponsorship especially in terms of
brand image and brand awareness in a particular target group affect the sponsor’s brand?,
brand awareness, brand image and sponsor-fit are examined separately.
The study has shown that brand knowledge (brand awareness, brand image) is
directly influenced by sport sponsorship efforts. The findings state a positive
impact and associations, whereby no direct effect in terms of customers’ brand
loyalty can be observed. Nevertheless according to the in the paper developed
conceptual model, an influence on brand loyalty building variables is not
dependent on sponsorship efforts, rather on the brand’s underlying product
attributes, satisfying customer needs and requirements.
In general sport sponsorship is a meaningful tool, but requires integration in a
diversified marketing communication-mix in order to tap the full potential.

TABLE OF CONTENT
TABLE OF CONTENT

LIST OF FIGURES ........................................................................................ III
LIST OF TABLES ........................................................................................... IV
LIST OF ABBREVIATIONS .......................................................................... VI
1 INTRODUCTION .................................................................................... 1
1.1 Purpose ................................................................................................................... 2
1.2 Research Question and Aim ................................................................................ 3
1.3 Paper Structure....................................................................................................... 3
2 BRANDING ............................................................................................... 4
2.1 Managerial Perspective of Branding ................................................................... 4
2.2 Brand Identity ........................................................................................................ 5
2.3 Brand Knowledge .................................................................................................. 6
2.3.1 Brand Awareness ........................................................................................... 7
2.3.2 Brand Image ................................................................................................... 8
2.3.2.1 Strength of Brand Associations .............................................................. 9
2.3.2.2 Favourability of Brand Associations ...................................................... 9
2.3.2.3 Uniqueness of Brand Associations ......................................................... 9
2.4 Brand Equity ........................................................................................................ 10
3 SPONSORSHIP AS A COMMUNICATION TOOL .............................. 11
3.1 Marketing Communication ................................................................................ 11
3.2 Communicative Challenge.................................................................................. 12
3.3 Sponsorship .......................................................................................................... 12
3.3.1 Definition of Sponsorship ......................................................................... 12
3.3.2 Advantages of Sponsorship ....................................................................... 13
3.3.3 Sponsorship Objectives .............................................................................. 14
3.3.4 Types of Sponsorship ................................................................................. 15
3.3.5 Sponsorship Effects .................................................................................... 17
3.3.6 Sponsorship Evaluation ............................................................................. 19
3.3.7 Limitations of Sponsorship........................................................................ 21
3.4 Sponsorship in the Marketing Communication-Mix ...................................... 22
3.5 Sport Sponsorship ............................................................................................... 24
4 LINKAGE OF SPONSORSHIP AND BRAND ..................................... 27

I
TABLE OF CONTENT
5 RESEARCH METHODOLOGY .............................................................31
5.1 Research Strategy .................................................................................................. 31
5.2 Research Design ................................................................................................... 31
5.3 Data Collection and Analysis .............................................................................. 32
5.4 Questionnaire ........................................................................................................ 33
5.5 Relevance of the Study ........................................................................................ 34
5.6 Limitations ............................................................................................................. 35
6 FINDINGS ............................................................................................... 37
6.1 Description of the Population ............................................................................ 37
6.2 Sport Sponsorship ................................................................................................ 39
6.3 Brand Knowledge ................................................................................................. 41
6.3.1 Brand Awareness.......................................................................................... 41
6.3.2 Brand Image.................................................................................................. 42
6.3.3 Geographical Differences ........................................................................... 46
6.4 Sponsor-Fit ............................................................................................................ 47
7 ANALYSIS ................................................................................................ 49
8 DISCUSSION ........................................................................................... 57
9 CONCLUSION .........................................................................................61
REFERENCES .............................................................................................. VII
APPENDIX ..................................................................................................... XV
1 Ad Sponsorship ........................................................................................................... XV
Sponsorship “Infancy” .............................................................................................. XV
Add-on to Types of Sponsorship ............................................................................ XV
2 Questionnaire English Language .......................................................................... XVII
3 Questionnaire Swedish Language ........................................................................ XVIII
4 Questionnaire Coding ............................................................................................... XIX
5 Löfbergs Lila AB ....................................................................................................... XXI
6 Ad 6.1. Description of the Population ................................................................ XXIV
7 Ad 6.2. Sport Sponsorship .................................................................................... XXIX
8 Ad 6.3.1 Brand Awareness .................................................................................... XXXI
9 Ad 6.3.2 Brand Image .......................................................................................... XXXV
10 Ad 7.3.3 Geographical Difference ................................................................ XXXVII
11 Ad 6.4 Sponsor-Fit ................................................................................................... XL
12 Ad Discussion....................................................................................................... XLIV

II
LIST OF FIGURES
LIST OF FIGURES
Figure 1: Comparison Growth Communication Tools .................................................... 2
Figure 2: Functions of a Brand ............................................................................................ 5
Figure 3: Brand Knowledge Model ..................................................................................... 7
Figure 4: Sponsorship Life Cycle ....................................................................................... 16
Figure 5: Tools of Marketing Communication ................................................................ 23
Figure 6: Key Elements of Brand Equity ......................................................................... 28
Figure 7: Combination
Brand Adaption Model and Hierarchical Communication Model ............... 28
Figure 8: The Conceptual Model of the Study ................................................................. 29
Figure 9: Itemized Rating Scale Categories ...................................................................... 34
Figure 10: Frequency Demographics Gender and Age .................................................. 37
Figure 11: Frequency Home Province in Percentage ..................................................... 38
Figure 12: Frequency Preferred Coffee Brand in Percentage ........................................ 38
Figure 13: Histogramm Positive Attraction by Sport Sponsorship .............................. 39
Figure 14: Frequency Perception of Löfbergs Lila .......................................................... 41
Figure 15: Frequency Attributes Perceived Related to Löfbergs Lila ........................... 42
Figure 16: Frequency First in Mind Associations of Löfbergs Lila .............................. 43
Figure 17: Frequency Attributes Perceived Related to Hockey..................................... 47
Figure 18: Sport Sponsorship Framework on Brand Knowledge ................................. 56
Figure 19: A Conceptual Model Enlarged by the Underlying Findings ....................... 57
Figure 20: Demonstration of the data
in terms of gender, age and survey origin ................................................. XXV
Figure 21: Frequency
Likelihood of Preference of Löfbergs Lila Coffee due to
Sport Sponsorship ....................................................................................... XLVI
Figure 22: Frequency
Influence of Discontinued Sponsorship on Coffee Preference ........... XLVI
Figure 23: Frequency
Likelihood of Switching to Another Coffee Brand due to
Discontinued Sport Sponsorship .............................................................XLVII

III
LIST OF TABLES
LIST OF TABLES
Table 1: Frequency Summary Section Sport Sponsorship .............................................. 40
Table 2: Cross-Tab
Positive Attraction by Sport Sponsorship and
Frequency of Arena Visits ................................................................................... 44
Table 3: Cross-Tab
Frequency of Arena Visits and Positive Perception of Löfbergs Lila
due to Sport Sponsorship .................................................................................... 45
Table 4: Chi² Test
Frequency of Arena Visits and Positive Perception of Löfbergs Lila
due to Sport Sponsorship .................................................................................... 45
Table 5: First in Mind “Ishockey (FBK)”, First in Mind “Hockey Arena” and
Perception of Löfbergs Lila “Ishockey” by Home Province ......................... 46
Table 6: Frequency Association Swedish Ice Hockey and Coffee Brands ................... 48
Table 7: Frequency
Multiple Choice Answers Influencing Criterions for Coffee Choice ............ 48
Table 8: Frequency Data Collection Method ............................................................. XXIV
Table 9: Frequency Favourite Team ........................................................................... XXIV
Table 10: Frequency Gender ......................................................................................... XXV
Table 11: Frequency Age .............................................................................................. XXVI
Table 12: Frequency Preferred Coffee Brand ............................................................ XXVI
Table 13: Frequency Home Province ....................................................................... XXVII
Table 14: Cross-Tab
Preferred Coffee Brand and Coffee Consumption per Week ............ XXVIII
Table 15: Statistical Values Sport Sponsorship .......................................................... XXIX
Table 16: Frequency Positive Affection by Sport Sponsorship .............................. XXIX
Table 17: Frequency Neglecting a Brand Sponsoring a Sport/Team .................... XXIX
Table 18: Frequency Positive Attraction by Sponsorship at Favourite Team ....... XXX
Table 19: Frequency Neglecting Brands Sponsoring Competitor Teams .............. XXX
Table 20: Frequency Preference against Competitive Choice .................................. XXX
Table 21: Frequency Unaided Sponsor Recall ........................................................... XXXI
Table 22: Onsite Sample – Unaided Sponsor Recall .............................................. XXXII
Table 23: Online Sample – Unaided Sponsor Recall .............................................. XXXII
Table 24: Frequency Multiple Choice Answers Brand Perception ......................XXXIII
Table 25: Perception of Löfbergs Lila Subdivided by Survey Sample ................XXXIII
Table 26: Knowledge Löfbergs Lila .........................................................................XXXIII
Table 27: Cross-Tab
Unaided Sponsor Recall and Frequency of Arena Visit ...................... XXXIV
Table 28: Frequency
Positive Perception of Löfbergs Lila due to Sport Sponsorship ........ XXXV
Table 29: Frequency
Multiple Choice Answers Emotions toward Löfbergs Lila ................. XXXV
IV