Brands in sports. FoU-rapport 2007:5

Transcription

1 FoU-rapport 2007:5

2 FoU-rapporter STOCKHOLM MAJ 2010 ANDRÈN & HOLM FOTO: BERT-OLA KEJDER 2004:1 Ätstörningar en kunskapsöversikt (Christian Carlsson) 2004:2 Kostnader för idrott en studie om kostnader för barns idrottande :3 Varför lämnar ungdomar idrotten (Mats Franzén, Tomas Peterson) 2004:4 IT-användning inom idrotten (Erik Lundmark, Alf Westelius) 2004:5 Svenskarnas idrottsvanor en studie av svenska folkets tävlings- och motionsvanor :6 Idrotten i den ideella sektorn en kunskapsöversikt (Johan R Norberg) 2004:7 Den goda barnidrotten föräldrar om barns idrottande (Staffan Karp) 2004:8 Föräldraengagemang i barns idrottsföreningar (Göran Patriksson, Stefan Wagnsson) 2005:1 Doping- och antidopingforskning 2005:2 Kvinnor och män inom idrotten :3 Idrottens föreningar - en studie om idrottsföreningarnas situation 2005:4 Toppningsstudien - en kvalitativ analys av barn och ledares uppfattningar av hur lag konstitueras inom barnidrott (Eva-Carin Lindgren, Hansi Hinic) 2005:5 Idrottens sociala betydelse - en statistisk undersökning hösten :6 Ungdomars tävlings- och motionsvanor - en statistisk undersökning våren :7 Inkilning inom idrottsrörelsen - en kvalitativ studie 2006:1 Lärande och erfarenheters värde (Per Gerrevall, Samanthi Carlsson och Ylva Nilsson) 2006:2 Regler och tävlingssystem (Bo Carlsson, Kristin Fransson) 2006:3 Fysisk aktivitet på Recept (FaR) (Annika Mellquist) 2006:4 Nya perspektiv på riksidrottsgymnasierna(maja Uebel) 2006:5 Kvinnor och män inom idrotten :6 Utvärdering av den idrottspsykologiska profi len - IPS-profi len (Göran Kenttä, Peter Hassmén och Carolina Lundqvist) 2006:7 Vägen till elittränarskap (Sten Eriksson) 2006:8 Näridrott i skolmiljö (Björn Forsberg) 2006:9 Kartläggning av det idrottspsykologiska området med avseende på svensk elitidrott (Göran Kenttä) 2007:1 Idrotten Vill - en utvärdering av barn- och ungdomsidrotten (Lars-Magnus Engström, Johan R Norberg och Joakim Åkesson) 2007:2 Sexualisering av det offentliga rummet (Birgitta Fagrell, Jesper Fundberg, Kutte Jönsson, Håkan Larsson, Eva Olofsson och Helena Tolvhed) 2007:3 Det sociala ledarskapet (Martin Börjeson, Johan von Essen) 2007:4 Frivilligt arbete inom idrotten (Lars-Erik Olsson) 2007:5 Varumärkets betydelse inom idrotten (Anna Fyrberg, Sten Söderman) 2007:6 Analys av träningstider inom föreningsidrotten - en studie av sju lagidrotter sett ur ett ålders- och könsperspektiv (Christian Augustsson, Göran Patriksson, Owe Stråhlman och Stefan Wangsson) 2007:7 Målstyrning och bidragsgivning inom svensk idrott (Johan Söderholm ) 2007:8 Ekonomiska styrmedel inom ideella organisationer (Erik Lundmark, Alf Westelius) 2007:9 Näridrott i skolmiljö, etapp 2 (Josef Fahlén, Björn Forsberg) 2007:10 Doping - personlighet, motiv och moral i idrotten (Jesper Thiborg, Bo Carlsson) 2007:11 Eliten e liten - men växer. Förändrade perspektiv på elitidrott (Mikael Lindfelt) 2008:1 Doping- och antidopingforskning - En inventering av samhälls- och beteendevetenskaplig forskning och publikationer (David Hoff) 2008:2 Idrottens anläggningar ägande, driftsförhållanden och dess effekter (Josef Fahlén, Paul Sjöblom) 2008:3 Idrottens roll i samhället ll (Sara Sandström, Mats Nilsson) 2008:4 Vilka stannar kvar och varför? (Britta Thedin Jakobsson, Lars-Magnus Engström) 2008:5 Medlemskapet i den svenska idrottsrörelsen - En studie av medlemmar i fyra idrottsföreningar (Torbjörn Einarsson) 2008:7 Äldre en resurs för idrottsrörelsen (Margareta Johansson) 2008:8 Möjliga tekniklösningar för LOK-stöd, SISU verksamhet och antidoping (Kenneth Olausson, Stewe Gårdare, Torbjörn Johansson, Mikael Wiberg, Oskar Juhlin) 2009:1 Kunskapsöversikt: Styrketräning för barn och ungdom (Michail Tonkonogi) 2009:2 Kunskapsöversikt: Kost- och näringslära inom idrotten (Eva Blomstrand och William Apró) 2009:3 Varumärkets betydelse inom idrottsrörelsen - ett sponsorperspektiv (Anna Fyrberg och Sten Söderman) 2009:3 A Sponsor s Perspective on the Swedish Sports Movement (Anna Fyrberg och Sten Söderman) 2009:4 Valuta för pengarna - om föräldrars kostnader för barnens deltagande i tävlingsidrott (Krister Hertting) 2009:5 Ämnet specialidrott i gymnasieskolan - en utvärdering av ämnet läsåret 2008/09 (Magnus Ferry och Eva Olofsson) 2009:6 Vilka är idrottens valda makthavare? - Om rekrytering till styrelser inom svensk idrott (Jesper Fundberg) Tryckta rapporter kan beställas från Riksidrottsförbundets kundtjänst kundtjanst@rf.se Ladda hem rapporterna i PDF från

3 Sport evaluates its brand Traditionally, sport has not sufficiently evaluated its trade mark. Now it is time. Through this report, the Swedish Sports Confederation - Riksidrottsförbundet- will focus on the importance of brands and branding. The report also aims at increasing the understanding within the sport communities on the benefits of working with, and valuing the brand. The supply and conditions of sports in this matter are unique. If we begin to load and package our offers in a better way, which are the prerequisites to major associations in the long run, a better economy and also even bigger sport successes can be expected. Anja Pärson and Zlatan are well known athletes and brands. Today brands are mainly valued in sport at an individual level, less on an organizational level. When an individual athlete is successful and performs well, the media and brand evaluators are quick in estimating that individual s brand in dollars and cents. Such ratings, however, are rarely managed in case of failure or on the level of a club or an association. Neither is the brand related to the size of the entire organization s turnover in the same manner as that of Coca Cola or BMW, whose brands are deemed to constitute a large part of the aggregate market capitalization or stock value. Is it a sign that the significance of the trade mark in sport is lower relative to the business sector? Or is it an indication that the sport is not working with the brand as a starting point in their business? All organizations have one or more brands. All these trademarks are associated with a promise, a personality and/or a position they represent a place, a position, in the minds of people. This applies whether the organizations like it or not. Everything it does and says- all in combination - creates a position. In business, brand is high on the agenda of both the Board of Directors and Management. Faced with a possible alliance or co-production, the companies and organizations do assess and analyze the values of the others and their audiences and customers carefully, as they now tend to value their brand much higher than before. The research Brand Orientation Index, conducted by the management consulting company, Label and Lund University, shows that companies working with the brand as the basis of their activity are more successful. Those companies display a higher ROI (return on investment) than companies that do not work with a focus on their brand. Brand Orientation Index is one basis for this report, which is the starting point and a tool for the sports to start valuing themselves and their brand. The brand is so much more than a logo. It is the starting point for the entire operation and conveys a message, what we stand for and what our values are. By working with the brand as a starting point in the operation, we create a transparency both internally for employees and externally to the environment in which our job is. This in turn creates an effective work and a more attractive attitude as well, being a driving force to engage our services. It also creates a major attraction in relation to potential sponsor partners. The Confederation of Swedish Sports aim and ambition is that this report will create an inspiration. We hope you enjoy the reading and understanding of what sport can contribute in business development, funding, recruitment and promotion by setting the branding issues higher up the agenda. Max Lauritzson Branding- and marketing strategist Riksidrottsförbundet Mattias Claesson Director of Communication and External Relations Riksidrottsförbundet 3

4

5 Anna Fyrberg, and Sten Söderman School of Business Stockholm University Abstract Sponsorship has been a tradition within the international sports movement and is associated today with several athletes development. In sponsorship situations the concept of brand is highlighted and is increasingly associated with brand strategy and image. The brand is also important to take into account when enhancing a product or service with new values. This is often done by one or more organizations working together in particular ways. The brands are, therefore, often studied from this perspective if the organizations fit strategically. An optimal performance of a potential trade cooperation is thus predicted by analyzing the sponsorship situation. The interaction between the sponsor and the brand is a fundamental starting point for this study. The report describes the brand work in four federations and four clubs and the sports football, tennis, equestrianism and triathlon. The study focuses on federal and club perspective. By examining the relationship between business and sports sponsorship, we identify how federations and clubs practically implement branding. The report identifies and describes the concept of brand within the sport that is based on sports offer, the product which sports offer the market. Collectively, ideas on and concepts of how sports work with brands strategically are referred to as Sports Brand Management. It is a conceptual model that highlights what the mark (sports brand) stands for and how it can be controlled (management). The model is applied further on the empirical material consisting of interviews and questions and answers under the CIT method (Customer Information Tool). The interviews will be transformed in response to the brand work done internally and are expressed in terms of values, differentiation and positioning. The CIT method identifies and describes the perceived quality and perceived value, which is part of the brands image. This is done by federations, and clubs may indicate which factors they believe are crucial to how and when partners choose their sport. The purpose of this report is summarized to describe how some different associations and clubs work with their sponsorship and branding issues. The analysis is expected to provide guidance and knowledge of how other organizations within sport can and should begin or develop brand management. The study is funded by the Swedish Sports Confederation (RF). We want to thank Max Lauritzson and Anders Lundin for many constructive comments. The authors are, though solely responsible for the content. Varumäkets betydelse 5

6 Contents Sport evaluates its brand Abstract:...5 List of Figures...7 Reading instructions...8 Key concepts in the report and their definitions Introduction The process of selecting a test case - the four sports The report s conceptual apparatus - Sports perspective Literature review from brand to Sports Brand Management Trademark Definition Sports offer Brand Equity Image Perceived quality and value part of the image Sports Brand Management How can the brand phenomenon in sports be identified? CIT method - Combined data collection and analysis - identifying the relationship between sponsors and sports Value concept Data collection - presentation of four federations and four clubs Football Presentation by CIT Chart Football Equestrianism Presentation by CIT Chart Equestrianism Triathlon Presentation by CIT Chart Triathlon Tennis Presentation by CIT Chart Tennis Analysis and implications: Brand Management within the sport How unions and clubs work with Sports Brand Management? The Sport Offer s attractiveness of the partner Identification of the brand phenomenon and its current driving forces in sports Conclusions...61 Reference List...63 Websites...64 Annex 1 A methodological perspective...65 Annex 2 CIT method structure...66 Annex 3 Checklist

7 List of Figures Figure 1.1: Commercialization Grade - Choice of Case Figure 1.2: Sponsorship issues a part of brand strategy Figure 1.3: Sponsor page and the sports movement - Relationship F and K under investigation Figure 1.4: Organization, resources and collaborations Figure 1.5: Attractiveness by sporting success and image Figure 2.1: Parts of the literature review Figure 2.2: Simplification of the model from the Richelieu & Boulaire 2005 Combining tangible and intangible benefits for the fans Figure 2.3: Brand Equity (Aaker Simplification model 1991 Components of Brand Equity by Melin (1999)) Figure 2.4: Aperia (2001) interprets the Aaker brand equity (1991) by the different values generated Figure 2.5: Simplification of the model, The relationship between customer perceived quality and brand image (Kirmani & Zeithaml, 1993) Figure 2.6: Summary of key concepts of Sports Brand Management Figure 4.1: Structure of data presentation Figure 4.2: Summary Swedish Football Association Figure 4.3: Summary Football Club Figure 4.4: CIT Chart Football Association Figure 4.5: CIT Chart Football Club Figure 4.6: Summary Swedish Equestrian Federation Figure 4.7: Summary Equestrian Club Figure 4.8: CIT Chart Equestrian Federation Figure 4.9: CIT Chart Equestrian Club Figure 4.10: Summary Swedish Triathlon Federation Figure 4.11: Summary Triathlon Club Figure 4.12: CIT Chart Triathlon Federation Figure 4.13: CIT Chart Triathlon Club Figure 4.14: Summary Swedish Tennis Association Figure 4:15: Summary Tennis Club Figure 4.16: CIT Chart Tennis Federation Figure 4.17: CIT Chart Tennis Club Figure 5.1: Sports Brand Management Summary Data Collection, (simplification of Kirmani and Zeithaml 1993 Richelieu & Pons 2005) Figure 5.2: Perceived quality - Breakdown hard and soft factors Figure 5.3: Activities and commercialization Figure 5.4: Categories of sponsorship and motives of the partner Figure 5.5: Transfer of associations Figure 5.6: Sports and their customer bases Figure B.1: Recasting the Value Map: Five Generic Product/Service Positions (Source: Buzzel & Gale 1987) 7

8 Reading instructions For graduates - read the full report. For practitioners who work with information and marketing in federations, clubs and associations - read the introduction to Chapter 1, Section 2.2, 2.6, Chapter 4 and Chapter 5. For practitioners with an interest in brand management or those working in sports organizations, read the introduction, Chapter 1, Chapter 5, and a checklist, Annex 3. For sponsors and partners or the background to the report, read the summary, Chapter 1 and Chapter 5. For an introduction to the research report - read the summary, introduction, Chapter 1, and 5.4 final conclusions. 8

9 Key concepts in the report and their definitions Sports movement - organizations and activities in an integrated popular movement, rooted in local clubs, district federations and special federations containing both amateur activity and commercialized elite activity (Sund 2004). Commercialization grade - an index to describe and analyze an activity or process that is subject to profit-making business (Sund 2004). Sports Sponsorship - an arrangement in which the sponsor provides financial or other contributions in order to obtain an association and a right to communicate associations and/or to gain some direct or indirect benefits from the sport (Laga 2003). Brand - consists of an identifiable product, service, person or place that contains a uservalue (de Chernatony & McDonald 1998). 9

10 1. Introduction The following section presents the frame of reference for the report, which shows that branding is significant and important in sport In addition, the purpose of the report and the process of selecting four sports will also be presented. Why is Manchester United s brand well known? What sets the club apart within the sport and in the world? These issues have recently become very topical. A brand has often been associated with a product such as Billy the bookcase of IKEA. But often organizations, mainly companies, deliberately strengthen their brand as in the case of IKEA, which has a strong company name. In pace with the growth of tourism regions, cities and villages have also activated their names from a brand perspective. IKEA is sometimes associated with Småland and its entrepreneurial spirit. Moheda s football teams in the Swedish division four can thus also be associated with the Småland business acumen. Yet a brand is not just a product or a company, but a symbol of these phenomena. The realization that consumers pursue and pay for products and services because of symbols is startling and confirms again that people are irrational buyers. Therefore, the need for knowledge concerning the sale and purchase of both the symbol of the products and the products themselves has come to characterize much of modern marketing which is studied today. It is obvious that when one team wins over their opponents, attention will increase. Other companies that are in need of attention are trying to ally themselves with the winning team. But a dilemma arises quickly when the team does not want to be associated with this company, this sponsorship, or when this company does not fit the associations with the team. In order to evaluate the team and whether they fit together, knowledge of what they stand for or what their brands are loaded with is required. From a sports perspective, several questions arise. What distinguishes a mark in the sport compared to a traditional brand? What is the brand concept in the sport and what impact does it have on sport s longterm growth? These issues are central in this debriefing. Club Trademarks, team brands and other brands within the sports movement have received less attention than traditional brands in the industry (such as IKEA, Coca-Cola). On the other hand, sports brands are, often in relation to sponsorship, associated with major sporting events. Sponsorship turnover amounts to large sums, and the International Olympic Committee notes that the last four Olympic Games have generated record high revenues in the range of billion crowns. (Preuss, 2004, p. 97). A common definition of sponsorship is: An investment, in cash or kind, in an activity in return for access to the exploitable commercial potential associated with this activity. Sponsorship of the Arts and or sporting events is an increasingly popular way of generating positive feelings about firms. (Meenaghan, 1991) Sponsorship exists in multiple contexts and at different levels. At the individual level, it is about individual athletes working with companies. At the organizational level, it is collaboration between a team and a company (for example, Djurgarden IF and ICA) or federations and companies (such as the Swedish Football Association and the Post). This study, as pointed out above, focuses on cooperation between federations, clubs and businesses, where the starting point is the sporting perspective with its conditions. 10

11 Strategic work on partnerships and branding issues is generally not common in sport. There are a number of different reasons why work on these issues is not prioritized. One explanation is the lack of resources such as capital and skill, but it could also be due to the fact that sport is based on other values - values expressed - than those which commercial enterprises account for. That in turn has meant that sport has chosen to focus on other, sometimes more mainstream parts of the activity. This trend is common in sports, but there are exceptions where some players are working so-called strategically. In this report we analyze the situation by looking at four clubs across four specific sports in the Swedish Sports Confederation (RF). In summary, the report has three purposes: 1) To identify and describe the phenomenon of the brand in sport; 2) to identify the strategic work of four sports by looking at the club and federation within each sport i.e. eight players; and 3) to identify and describe the practical implications for knowledge dissemination, as best practice, concerning branding within the Swedish sports movement. 1.1 The process of selecting a test case - the four sports In collaboration with representatives from the Swedish Sports Confederation (RF), important factors or indices for the study of brand relevance within the sport were discussed. Furthermore, we held discussions on how this could be studied. The process showed that two types of indices were considered important. The implementation was determined by a study of some special associations within the Confederation s organization. The two factors that emerged during this process were size, meaning the size of the Confederation in terms of the number of members, and commercialization. Commercialization can be found at the individual and organizational level. The individual level relates to athletes who, through achievements in their sport and due to their celebrity, can make contacts with companies, sponsors, resulting in commercial contracts. Examples include Carolina Klüft sponsored by Reebok and Malin Baryard sponsored by H & M. Commercialization at the organizational level consists of processes that are for-profit (Sund 2004), the report also uses this concept as an index, known also as the degree of commercialization. In order to find suitable study objects, we sought sports federations with the requirement that the federations would represent different types: small to large federal operations and with low or high commercial grades. Four associations that lived up to the required criteria were identified: football, equestrianism, tennis and triathlon were selected cases since they represent extremes on the basis of size and degree of commercialization. 11

12 COMMERCIALIZATION DEGREE High Low Large federal Football Equestrianism Small federal Tennis Triathlon Figure 1.1: Commercialization Grade - Choice of Case The next step in the process, once the commercialization level chosen, was to identify an appropriate procedure to identify the degree of commercialization. In discussions with the Swedish Sports Confederation (RF) we learned that some of the commercialization of sports is about contact with partners and sponsors. When the federation or club makes contact with the sponsors, the questions have been raised whether the sponsor and the sports match, what their long-term intentions are and what level of adaptation has been demonstrated. It is a natural assessment of brand strategy: the brand must evolve over time, for both sponsor and sport, through sponsorship issues as a part of the overall brand strategy. Sponsor questions Brand strategy Figure 1.2: Sponsorship issues a part of brand strategy The approach was therefore to examine the convergence of commercial and sponsorship issues, which also allowed for a link to be made with the brand concept in sport that forms the central purpose of the report. The relationship between sponsor and sport was used as a starting point, and is illustrated by the two sides bound together. The sports movement consists in the simplified picture below, of the National Sports, sports federations, clubs and individuals. On the other hand, there are companies and organizations that go under the umbrella of sponsors. 12

13 SPONSORS SPORTING MOVEMENT Partners RELATION Sponsors F K RF Federation Club Relationship Individuals Figure 1.3: Sponsor page and the sports movement - Relationship F and K under investigation By this division it was also made clear what perspective the report is proceeding from. The approach in this report is based on sports, namely the triangle in the figure above. Exploring the federations (the level under the RF) was selected first. The clubs were also included in the study when they bring in another perspective, and thus cover more of the sport. The actors, Riksidrottsförbundet and individuals and their relationship with sponsors are outside of this report, but should also be included in the figure as they help to create a whole picture of what the sports movement s structure looks like. Relationships F and K are the relationships that were further examined, from a sports perspective. 1.2 The report s conceptual apparatus - Sports perspective This section presents a conceptual apparatus based on the sport s structure. The conceptual apparatus clarifies some conditions and issues within the sport they are part of and influences the management of sponsorship and branding issues. The conceptual apparatus consists of three parts and uses the term sports organization that can be synonymous with a league or club. 1) The foundation of a sports organization (see Figure 1.4) 2) How the sports organization creates attractiveness through sporting success (see Figure 1.4) 3) Increased use of the image of the sports organizations to create more attractiveness (see Figure 1.5) In the first part we present the sports organization, in order to create an understanding of how an organization can generally be built. Point number two shows how sports can be made famous by sporting success, which is the traditional way to achieve success. The third part shows that increasing competition has changed the conditions and pushed forward new methods to strengthen sport. Image focusing is a method that the report takes into consideration. 13

14 In sports and marketing research, we observed quite promptly that sport by nature contains a unique value: sporting successes (see, for example Richelieu & Boulaire 2005). Whether the sport regularly generates sporting achievements or the sport possesses a sense of success is crucial if an association, club or trademark is deemed to be attractive. It is also what makes sport unique; exposure and celebrity are often of greater significance than their corresponding actual economic value (Söderman 2004). It is common that the League or the club builds its attractiveness on the dynamics of sporting success. They are then strategically placed to further develop its brand and the sport in several stages if the organization is properly structured. The structure of the federation and clubs can be characterized as marketing, match, development and management, inspired by Söderman, 2004 (p ). The challenge, in the sports organization, is to have strategies for the four sections to correspond. Operable success on the pitch (match), recruitment of talent (management), ability and competence (development) and business strategy (marketing) make possible the positive processes that generate more resources for sport. The correct balance between the four factors in a virtuous circle means that, for example, the media interest increases, the number of practitioners in the sport is increasing, the number of visitors to the arena is growing and that the sport may have an increased number of external stakeholders demonstrating an interest in cooperating with the current club. By getting more partners the club s resources increase, which in turn allows for better organization and coaches, which in turn can contribute to sporting successes. 1) Sports Organization 2) The virtuous circle that historic success process Sporting success Match Management Better management Increasing interest Development Marketing More resources More partners Figure 1.4: Organization, resources and collaborations The figure shows the factors in a sports organization, which could allow sporting success, which in turn results in partners and increased resources. This reasoning works at basal levels but has over time become increasingly sophisticated, often because the competition is fierce and it is difficult to constantly generate excellent results despite considerable resources. This has meant that in addition to sporting success, it is crucial for the sport to work on its image to maintain the level of attraction and interest. A concise but still vigorous definition (see literature 14

15 review below for the development of the concept) concerning the image is how consumers and others experience the bid or the brand (Aaker 1996). For the League and the Club, it is a means to generate a positive image of business that is attractive for others to share. 3) Two ways to achieve attractiveness CLUB 1 Sporting success Image CLUB 2 Sporting success Image Figure 1.5: Attractiveness by sporting success and image In general, an attractive sport, or an interesting brand, base their development on sporting success and image, which the model above shows. In this case, Club 1 mainly bases its attractiveness on sporting success. This means that the club is working hard each year to generate good performances and results. It will create an interest in the club and the different stakeholders will see opportunities for collaboration with the Club. Club 2 uses a different approach by working actively with its image. It may depend on several factors, but typically rely on the fact that the sport has not been able to achieve regular sporting success. Instead, the club communicates their values. The Club values, which also may be called the image in the sense that they are perceived by others, consist of so-called soft values. For example, the club promotes youth development; that sport is healthy, gives pleasure and calls for accountability and so on. If the club has an image consisting of one or more of these values, it is attractive to sponsors who want to be associated with these values. The club can build on the success of their image and not only sporting success. It is important for associations and clubs, based on Club 2 case, to show that sport is attractive irrespective of regular success, which means that it needs to be clear about their values and soft values. Another term for this is strategic brand management. Before the report describes how some different associations and clubs are involved in the issues, we present a literature review showing the origin of brand issues and its links with sport. 15

16 2 Literature review from brand to Sports Brand Management The literature review presents some important theories and concepts concerning trademarks related to the sport. In addition, the concept of Sports Brand Management is introduced - a model that demonstrates the most important factors to enhance a sports brand. In order to undertake a study on brand concept we needed a platform and an overview on the theoretical concepts. In the literature, there is a range of knowledge about marketing and branding issues. This previous research can be used to approach the survey question, by selecting a few key concepts. A starting point is to identify the brand as a concept and brand phenomenon in the sport, and then select a few factors that are important in the process of branding issues. The key concepts are collected as Sports Brand Management. The Literature Review consists, firstly, of a description of four different steps, which are part of the Sports Brand Management, i.e. brand content (sports brand) and how, secondly, it can be managed by the association or club management. 1. Trademark definition 2. Sports offered 3. Brand Equity Brand Equity 4. Image part of the brand 5. Perceived Quality Value parts of image 6. Sports Brand Management Figure 2.1: Parts of the literature review 2.1 Trademark Definition Brand as a concept is defined in the literature in several ways and the definitions relate more to a traditional product perspective. Two examples are Kotler (2006) and Riezebos (2003) who say that a brand is a symbol that means that the product or service can be traced to a company. In addition to this narrow definition, there are writers who use the concept of brand to include more aspects. De Chernatony & McDonald (1998) use the following definition: A successful brand is an Identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added value, which match their needs most closely. Furthermore, its success results from being variable to sustain these added values in the face of competition. (de Chernatony & McDonald, 1998 p. 20) 16

17 In addition to this definition covering more functions than products, de Chernatony & McDonald emphasize the user s role. The trademark s strength lies in what relevant dimensions and added values the user sees through the brand. The authors also believe that the brand differentiates the bid over rivals. Sport is not mentioned as an individual phenomenon in the definition, but is included under the category of service. The next section describes sport as a specific offer and the quality factors of sport, concepts that then recur and are summarized in the Sports Brand Management Model. 2.2 Sports offer Part of the strategic work in a given sport involves protecting and working with the brand when the brand affects the development of the sport in the longer term (Richelieu & Pons, 2006). That is, we argue, there is a difference if that brand is attached to a sport, a team, or sporting events when compared to traditional products and services. The difference lies in the fact that sport, as a phenomenon or an offer, is different and, in theory, is classified as a hedonistic offer. Hedonism is about choosing to consider the offer based on experience (Mossberg, 2003) where a sporting activity in nature is included in this classification. It is based on the fact that sporting activities are unknowable, ephemeral, unpredictable, and subjective in nature (Holbrook & Hirschman, 1982, Gladden, Milne & Sutton, 1998). Despite the sporting character of the offer (the product), branding is significantly within the international sports movement (Chadwick & Thwaites, 2005, Richelieu & Pons, 2005). Brand management theory originated from companies operating on the basis of the so-called vertical value chain. The sport offer, as mentioned earlier, has a different character and cannot be fully based on traditional business theories. Account is taken of the nature of an offer. However, there is no reason to reject the vertical dimension. Instead we try to provide an additional perspective. According to the Richelieu & Boulaire (2005) the sporting brand consists, from a consumer perspective, of the tangible and intangible benefits. Tangible benefits Intangible benefits Figure 2.2: Simplification of the model from the Richelieu & Boulaire 2005 Combining tangible and intangible benefits for the fans 17

18 The tangible benefits concern the stadium, the actual results, facilities, sites, contact with players, etc. The second part of the brand is about soft values, intangible benefits, which consist of feelings for the club, such as the experience of success, and a pride to have them associated with the brand. By looking at sport as an offer, it can be strengthened over time, which results in the creation of brand equity. 2.3 Brand Equity Brand Equity had its breakthrough in marketing in the early 1990s and is today one of the more fundamental aspects of brand theory. The term brand equity was launched by the author Aaker (1991) and the term refers to the portion of the firm s equity attributable to the brand. Brand equity is a set of assets (and liabilities) linked to a brand s name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm s customers. (Aaker, 1996 p. 7) Aaker (1996) divides brand equity in to four main components: Brand Awareness, Brand Loyalty, Customer Perceived quality and brand (other) companies. In addition to these four elements mentioned by Aaker, a fifth component is legal access, which includes other brand assets. The figure below illustrates the four major components that make up brand equity. Brand loyalty Brand awareness Gives value to competitor Brand Equity Perceived quality Brand associations Gives value to producer Figure 2.3: Brand Equity (Aaker Simplification model 1991 Components of Brand Equity by Melin (1999)) Brand loyalty is about securing loyal customers, which in turn affects future profits, but also provides a barrier against competitors and their actions. Loyal customers provide the conditions for trade and consolidate the market position. Sports Fans are an example of the often extremely loyal customers who continually return and who are reluctant to switch teams or sports. 18

19 A strong brand awareness increases the chance for consumers to choose the product or offer. If the brand is not very well known, there is the risk that the trademark falls outside the consumer s choice. Brand Awareness is something that grows over time and can be influenced by brand exposure. One way to get a club known in a short time is if the team is in a Premier Division, which is monitored by the media. Then there is the possibility that more people gain knowledge of the club over a short period. Perceived quality is an important component if the brand will survive in the long term, since the consumer s perception of quality affects both profitability and market share. In a first stage, the knowledge of the brand captures the consumer s interest; but to get the consumer to return, the perceived quality is decisive. The idea of the federation or the club and its ability to deliver quality is important for sponsors and partners. Brand associations, including the companies that are linked to the company and its brand, mean the direct or indirect associations that arise in consumer memory, in contact with the brand. The associations can provide help to understand the brand, differentiating it from competitors and create positive feelings/attitudes for the brand. Football has launched itself as a national sport which is an example of how football creates associations and simultaneously differentiates itself. More concretely, the four components together give value to the consumer and the producer (brand owner). The value generated can, according to Aperia (2001), be interpreted as improvements before, during or after the purchase decision for consumers. For brand owners brand equity improves the capability or ability to achieve the right marketing, create loyalty, create opportunities to influence price and distribution, and provide a competitive advantage. Brand equity provides value to the brand owner, by improving: Marketing Brand loyalty Prices/margins Brand equity provides value to consumers by improving: Interpretation/processing of information Confidence at the time of purchase Satisfaction with the use Brand Extension Better distribution Competitive Advantage Figure 2.4: Aperia (2001) interprets the Aaker brand equity (1991) by the different values generated 19

20 The brand equity model shows how the brand owner and the beneficiary meet at different levels. An important aspect for the relationship between the sender and the receiver is the perceived quality since it binds the parties together and confers an image of the brand (see Figure 2.5). This is referred to as image and will be presented in the next section. The next step is also an examination of the factors behind the component s perceived quality and value that are part of the image, which are central to the report. 2.4 Image Image or brand image concept has, like brand definitions, different meanings, and meanings depending on context and author. A first definition (Smith 2004, referring to the Gardner & Levy 1955) is that the image is part of brand value (brand equity). Other authors such as Aaker (1996) argue that the image is how consumers and others are experiencing the brand. This definition has been further developed by Keller (1998), who means that the image delay is about companies perceptions about a brand as reflected by the brand associations held in consumers memory. (Keller 1998, p. 93) According to Kirmani & Zeithaml (1993), the brand image is formed by perceived quality and perceived value and attitude. This means that work on the concept of quality and value results in a perceived image of the brand. The diagram below shows the assumed relationship between the factors. Brand attitude Perceived quality Brand image Perceived value Figure 2.5: Simplification of the model, The relationship between customer perceived quality and brand image (Kirmani & Zeithaml, 1993) Brand attitude is about consumers overall scores of the mark and is important in that it controls the consumer s choice of brand (Aperia 2001). The perceived value is in accordance with, Kirmani and Zeithaml (1993): We define perceived value as the consumer s overall assessments of the utility of a product, based on the perceptions of what is received (e.g., quality, satisfaction) and what is given (e.g. perceived price). (Kirmani & Zeithaml 199, p. 45) 20