Introduction
The Ford Motor Company is a US based global automotive manufacturer. The company has manufacturing operations in six continents. In Europe alone there are 35 factories located in nine countries. The Ford 'family' includes the Jaguar, LandRover, Volvo and Aston Martin brands, as well as the well known Mondeo, Focus and Fiesta models. The Ford brand is well-known and its company logo identifies this brand worldwide.
In the UK, Ford employs around 14,200 people at 10 different locations. It has led the UK market in new car sales for over 28 consecutive years. This has been achieved in the context of an increasingly competitive new car market.
Ford operates in both the private car and commercial vehicles markets. It serves a variety of markets from vans for commercial use to the Ford Focus (which is one of the world's best selling cars).
In the UK, Ford employs around 14,200 people at 10 different locations. It has led the UK market in new car sales for over 28 consecutive years. This has been achieved in the context of an increasingly competitive new car market.
Ford operates in both the private car and commercial vehicles markets. It serves a variety of markets from vans for commercial use to the Ford Focus (which is one of the world's best selling cars).
Sponsorship and marketing strategies
A strategy is a carefully considered plan devised to help a company meet its objectives. A strategy can relate to the company's brand, its marketing or how it meets customers' needs.
Global Blue Chip companies like Ford have carefully planned brand strategies. Sponsorship is an effective way of meeting Ford's brand objectives. It permits a company to enhance the value of its brand through a positive association with an event or tournament.
Ford has two objectives in its sponsorship strategy. One is to reinforce and further build the Ford brand. The other is to achieve a good connection between Ford and its potential customers. Through its association with such a premium sporting event such as the UEFA Champions League, Ford is able to directly reach its target customer for nine months every year. Research has clearly shown that this sponsorship creates a positive view of Ford particularly amongst football fans who watch football on TV regularly.
The UEFA Champions League is the premium European club football competition. It was officially inaugurated in 1992. The UEFA Champions League features the top 32 European club teams with matches taking place on Tuesdays and Wednesdays across Europe. The current format came into play for the 2002-03 season. This involves a qualifying competition, one group stage involving 32 clubs and a final knockout stage involving 16 clubs down to two and a final, which is staged at a major European venue at the end.
Ford is one of six sponsors of the UEFA Champions League. Only official sponsors, i.e. those companies who purchase sponsorship rights from the Rights holder, such as UEFA, are able to associate with the competition. By purchasing these rights for the UEFA Champions League, Ford and other sponsors have the unique and exclusive opportunity to associate themselves with this event. This helps Ford drive a competitive advantage in its particular market.
The marketing 'mix' is the particular set of marketing tools used by a company. By 'mixing' these, a business can work to achieve marketing objectives. Four basic tools are usually available: Product, Price, Place and Promotion. These are also known as the 4Ps.
Global Blue Chip companies like Ford have carefully planned brand strategies. Sponsorship is an effective way of meeting Ford's brand objectives. It permits a company to enhance the value of its brand through a positive association with an event or tournament.
Ford has two objectives in its sponsorship strategy. One is to reinforce and further build the Ford brand. The other is to achieve a good connection between Ford and its potential customers. Through its association with such a premium sporting event such as the UEFA Champions League, Ford is able to directly reach its target customer for nine months every year. Research has clearly shown that this sponsorship creates a positive view of Ford particularly amongst football fans who watch football on TV regularly.
The UEFA Champions League is the premium European club football competition. It was officially inaugurated in 1992. The UEFA Champions League features the top 32 European club teams with matches taking place on Tuesdays and Wednesdays across Europe. The current format came into play for the 2002-03 season. This involves a qualifying competition, one group stage involving 32 clubs and a final knockout stage involving 16 clubs down to two and a final, which is staged at a major European venue at the end.
Ford is one of six sponsors of the UEFA Champions League. Only official sponsors, i.e. those companies who purchase sponsorship rights from the Rights holder, such as UEFA, are able to associate with the competition. By purchasing these rights for the UEFA Champions League, Ford and other sponsors have the unique and exclusive opportunity to associate themselves with this event. This helps Ford drive a competitive advantage in its particular market.
The marketing 'mix' is the particular set of marketing tools used by a company. By 'mixing' these, a business can work to achieve marketing objectives. Four basic tools are usually available: Product, Price, Place and Promotion. These are also known as the 4Ps.
Product
Ford produces a wide range of vehicles, each is targeted towards a particular part of the total market: the Ford 'Ka' is aimed at a different consumer to the Ford 'Galaxy'. The features, size, style, image, colours and performance of these products all appeal to distinct 'segments' of the new car market. In developing new products Ford considers the needs of different types of consumer.
All products, whether they are physical things, or services, emerge with an end user in mind. This is a key part of meeting the needs of a market.
Through research, Ford knows that a large percentage of target customers who are considering purchasing one of its vehicles, will also be interested in football. It is likely they will watch the UEFA Champions League. The company's association with the competition allows it to target these people in a very direct way.
Sponsorship rights allows Ford to target football fans (some of whom may be potential customers) through several communication channels, e.g. at the stadium, within the television programme and through themed promotions. Through these rights, Ford can promote a specific vehicle - one which has just been launched, or which appeals specifically to football fans.
All products, whether they are physical things, or services, emerge with an end user in mind. This is a key part of meeting the needs of a market.
Through research, Ford knows that a large percentage of target customers who are considering purchasing one of its vehicles, will also be interested in football. It is likely they will watch the UEFA Champions League. The company's association with the competition allows it to target these people in a very direct way.
Sponsorship rights allows Ford to target football fans (some of whom may be potential customers) through several communication channels, e.g. at the stadium, within the television programme and through themed promotions. Through these rights, Ford can promote a specific vehicle - one which has just been launched, or which appeals specifically to football fans.
Price
A company like Ford will constantly evaluate the return on its investment in sponsorship. This evaluation measures both the value of the media exposure and the impact on its brand. Price is the second element in Ford's marketing mix.
Ford strategists must establish a pricing policy for its vehicle ranges. The price policy for a vehicle takes into account costs, a profit margin and also the price of competing products available in the market.
Its sponsorship of the Champions League is one way Ford competed without changing the price of its vehicles. This is known as non-price competition. By sponsoring the Champions League, the company can build the prestige and value of its brand - this is another element of non-price competition.
Ford's sponsorship can strengthen the company's pricing policy. For example, through its association with the UEFA Champions League, Ford is able to produce an exclusive range of Champions League edition cars, these will have some special features as well as Champions League branding. These vehicles will be more attractive to many buyers.
Ford strategists must establish a pricing policy for its vehicle ranges. The price policy for a vehicle takes into account costs, a profit margin and also the price of competing products available in the market.
Its sponsorship of the Champions League is one way Ford competed without changing the price of its vehicles. This is known as non-price competition. By sponsoring the Champions League, the company can build the prestige and value of its brand - this is another element of non-price competition.
Ford's sponsorship can strengthen the company's pricing policy. For example, through its association with the UEFA Champions League, Ford is able to produce an exclusive range of Champions League edition cars, these will have some special features as well as Champions League branding. These vehicles will be more attractive to many buyers.
Place
The popularity of football across Europe and the world, particularly amongst Ford's target customers means that its sponsorship of the Champions League allows the company to tap into its customers' passion for the sport. It means that, like the brand, it stretches beyond national boundaries.
Its dealership network is the face of the Ford brand at retail. This is where most customers will see the Ford product, test drive, and ultimately make a purchase. They will return throughout the life of the vehicle for servicing and the purchase of parts and accessories.
The Ford dealership network is one of the largest in Europe, it knows how far a potential customer is prepared to travel to purchase a car, or for servicing. The location of dealerships is strategically planned to ensure that every customer has a dealership within a certain radius of their home.
The dealership network is therefore another channel where Ford can appeal to the customer's passion for football, and promote its association with the UEFA Champions League. Dealerships across Europe hold football themed promotions and family fun weekends.
Its dealership network is the face of the Ford brand at retail. This is where most customers will see the Ford product, test drive, and ultimately make a purchase. They will return throughout the life of the vehicle for servicing and the purchase of parts and accessories.
The Ford dealership network is one of the largest in Europe, it knows how far a potential customer is prepared to travel to purchase a car, or for servicing. The location of dealerships is strategically planned to ensure that every customer has a dealership within a certain radius of their home.
The dealership network is therefore another channel where Ford can appeal to the customer's passion for football, and promote its association with the UEFA Champions League. Dealerships across Europe hold football themed promotions and family fun weekends.
Promotion
Ford employs a pan-European promotional strategyto draw attention to its products and services. The purpose of this is both to attract new customers and to retain existing ones.
Ford's promotional strategy must first create awareness of the company's product range. Promotion must reach target audiences that might be geographically widely spread.
A crucial aspect of Ford's promotional tactics is to develop the image of the company, rather than specific products. Ford develops a reputation as a manufacturer of quality, size, strength and vitality. The 'Destination Football' campaign serves to associate the Ford brand with passion, drive, desire, success, speed, movement and youth.
Marketingspecialists sometimes refer to promotion 'above-the-line' and 'below-the-line'. Above the line promotion occurs through independent media, such as the press or television. These external media are usually used to carry advertising messages from firms like Ford. Below the linepromotion uses methods that are not controlled by external agencies. This includes salespromotions, exhibitions and direct mail shots.
Promotion is therefore far more than just advertising. Ford uses below-the-line promotions by exhibiting vehicles at events and exhibitions; engaging in online promotions as well as direct mailing of customers. There is also a good deal to be gained from public relations(PR).
For Ford, promotional options are changing. TV advertising used to be the dominant above-the-line promotional tool used by the powerful corporations who had the resources. Today with more and more TV channels available, this communication method is becoming increasingly fragmented. TV audiences are able to tune in to multi-channelalternatives and satellite TV and digital freeview set top boxes are accelerating this trend.
For marketing executives seeking the most effective forms of promotion, technologyis affecting the value of TV advertising. People can now record programmes for viewing later and skip the adverts easily. Mass audiences are no longer tied to specific, one off, broadcasts. People will shortly be able to download programmes on to hand held devices. Will adverts have the same effect? With this trend, the ability through sponsorship to become part of the television programming itself, and not just part of the advert break, is even more important.
Ford's Champions League sponsorship has the advantage that it is an all-tactic promotional vehicle. The campaign contains both above-the-line and below-the-line components.
During matches broadcast live across the world, TV adverts for Ford products can be shown. The Ford brand and specific products aimed at local markets are emphasised before a match, at half-time and immediately afterwards. Ford can commission poster campaigns promoting the games as well as their products; press adverts can do the same.
At the matches, Ford's presence on the pitch in the form of perimeter boards means that the Ford brand is almost part of the game itself, and Ford can promote its brand message strongly for the full ninety minutes of the game. On TV the 'idents' which top and tail the match programme into and out of the advertising breaks provide another opportunity. Here Ford can promote a specific brand message targeted to the football audience who regularly switch on for Champions League matches. These are all 'above-the-line' tactics.
The Champions League connection can help to generate below-the-line promotion too. At the stadium as fans arrive for a match, shoot-out zones and five-a-side games are an opportunity for Ford to promote its association with the tournament. PR is gained by offering young children the chance to participate in the pre-match ceremonies.
Ford's promotional strategy must first create awareness of the company's product range. Promotion must reach target audiences that might be geographically widely spread.
A crucial aspect of Ford's promotional tactics is to develop the image of the company, rather than specific products. Ford develops a reputation as a manufacturer of quality, size, strength and vitality. The 'Destination Football' campaign serves to associate the Ford brand with passion, drive, desire, success, speed, movement and youth.
Marketingspecialists sometimes refer to promotion 'above-the-line' and 'below-the-line'. Above the line promotion occurs through independent media, such as the press or television. These external media are usually used to carry advertising messages from firms like Ford. Below the linepromotion uses methods that are not controlled by external agencies. This includes salespromotions, exhibitions and direct mail shots.
Promotion is therefore far more than just advertising. Ford uses below-the-line promotions by exhibiting vehicles at events and exhibitions; engaging in online promotions as well as direct mailing of customers. There is also a good deal to be gained from public relations(PR).
For Ford, promotional options are changing. TV advertising used to be the dominant above-the-line promotional tool used by the powerful corporations who had the resources. Today with more and more TV channels available, this communication method is becoming increasingly fragmented. TV audiences are able to tune in to multi-channelalternatives and satellite TV and digital freeview set top boxes are accelerating this trend.
For marketing executives seeking the most effective forms of promotion, technologyis affecting the value of TV advertising. People can now record programmes for viewing later and skip the adverts easily. Mass audiences are no longer tied to specific, one off, broadcasts. People will shortly be able to download programmes on to hand held devices. Will adverts have the same effect? With this trend, the ability through sponsorship to become part of the television programming itself, and not just part of the advert break, is even more important.
Ford's Champions League sponsorship has the advantage that it is an all-tactic promotional vehicle. The campaign contains both above-the-line and below-the-line components.
During matches broadcast live across the world, TV adverts for Ford products can be shown. The Ford brand and specific products aimed at local markets are emphasised before a match, at half-time and immediately afterwards. Ford can commission poster campaigns promoting the games as well as their products; press adverts can do the same.
At the matches, Ford's presence on the pitch in the form of perimeter boards means that the Ford brand is almost part of the game itself, and Ford can promote its brand message strongly for the full ninety minutes of the game. On TV the 'idents' which top and tail the match programme into and out of the advertising breaks provide another opportunity. Here Ford can promote a specific brand message targeted to the football audience who regularly switch on for Champions League matches. These are all 'above-the-line' tactics.
The Champions League connection can help to generate below-the-line promotion too. At the stadium as fans arrive for a match, shoot-out zones and five-a-side games are an opportunity for Ford to promote its association with the tournament. PR is gained by offering young children the chance to participate in the pre-match ceremonies.
Conclusion
Football sponsorship for Ford means being a key ingredient of the UEFA Champions League. This is a long-term strategy that goes beyond merely attaching the Ford badge to the event.
The dynamics of the competition, the excitement and the desire, the eventual outcome, combine to create a positive view of Ford.
The dynamics of the competition, the excitement and the desire, the eventual outcome, combine to create a positive view of Ford.