Journal Articles 29/10/2012 - Brand Image Creation

With my dissertation topic still to be finally decided upon, I read three pieces in the latter stages of last week looking at image creation and the creation of value through brand building to help with the decision. These were as follows:

1. A model of image creation and image transfer in event sponsorship - Gwinner, K.

2. Image management in sport organisations: the creation of value. Ferrand, A and Pages, M.

3. Measuring Brand Equity across Products and Markets. Aaker, D. 

Each article had a slightly different focus, but what I was looking to get out of them was a deeper insight into the creation of value in a brand, and methods that management may undertake in the process of doing so. I'll summarise and highlight key points within each of the articles below and in subsequent posts, both for my benefit to reinforce what I've learnt, and also for those with a keen interest in brand management:

1. A model of image creation and image transfer in event sponsorship - Gwinner, K (1997)

The article opens with a brief introduction on the development of event sponsorship, particularly in the reasons why organisations undertake it. A movement away from the view that event sponsorship should be seen as obligatory suggests that the opportunity for commercialisation has been recognised by organisation management and as a result they expect some form of reasonable return for their initial outlay. 

In order to create value from a sponsorship however, it's identified that many features of 'brand association' play a critical role in determining the 'differential response' (ie. the eventual purchase decision). In an attempt to consider the creation of value from event sponsorship the paper looks at what factors are involved in creating image at an event and then the subsequent transfer of this image, to the brand. The article in part relates to celebrity endorsement and this holds significance in the movement of meaning, whereby consumers acquire the meaning of the product through consumption. Meaning movement in the sense moves from the event to the brand when the two are paired together at the event. Image represents the cumulative interpretation of meanings or associations attributed to events by consumers.

The article highlights three main components that form an event's image. These are the type of event (eg. sports related, music related etc), the characterisitics of an event (eg. event size, professional status) and individual factors (eg. number and strength of meanings). Propositions or hypotheses are made throughout identifying the impact sponsorship will eventually have on the brand image. 

eg. P2a: Direct experience and/or indirect information (word of mouth/advertising etc) with an event type WILL influence event image.

The transitional process noted by the article was as follows: Determinants of event image - Event Image - Image transfer (moderated by variables) - Brand Image. 

Moderating variables are perhaps the key characteristics that determine whether an event's image will project onto the brand image. The factors were as follows:

• Degree of similarity: A product can have either functional or image related similarity with an event. F = when the sponsoring product is actually used by participants eg. INNOCENT drinks. I = where the image of the event is related to the image of the brand. eg. PEPSI and Jackson World Tour (youth, excitement). It's suggested that functional or image based similarites forge stronger ties and help the consumer to link the event image with the brand.
• Level of Sponsorship: Basically, multiple sponsors at an event lessens the probability that a particular brand will forge an association with the event. Different 'levels' of sponsorship attempt to tackle this issue. (ie. higher dollar = increased association [exlusivity])
• Frequency of Event: An ongoing event should have the benefit of more firmly establishing a link between the event and the brand due to repeated exposure). However, this isn't to say that unique, one-off events will not attract large media attention and forge strong associations.
• Product Involvement: Involvement level impacts attitude formation, which is a component of image. In low involvement products, such as energy drinks and cereal bars, purchases are quick and so forging a strong link between an event and brand increases the likelihood of consuming the product. However, high involvement products - such as a new TV, and generally more expensive items require much more information about them. As such, the endorsement will hold little or no relevance to the eventual purchase decision.

Event sponsorship is an INDIRECT form of promotion, that is to say that the product is behind the event itself. The ELM model (Petty and Cacioppo) suggests persuasion occurs along two routes, either central and periphery. The peripheral persuasion route suggests that an attitude change through the association of the object with positive or negative cues. Theorizing from this model, it can be established that peripheral routes (ie. indirect event sponsorship) forge associations that are more beneficial towards low involvement goods. To highlight this the article proposes:

P6a: Brand attitudes of low involvement goods will be strongly influenced by event image.

P6b: Brand attitudes of high involvement goods will be weakly influenced by event image.

P6b: Persuasion processes take place on the peripheral route of the ELM model.

Second and third articles to follow :)

CLD.
Twitter: @callumldraper
Facebook: www.facebook.co.uk/callumldraper

UEFA host Corporate Social Responsibility Conference

European Football governing body UEFA has hosted a seminar with a central focus on corporate social responsibility (CSR) attended by Europe's national football governing bodies.

UEFA took to Sarajevo, Bosnia and Herzegovina, in a bid to continue evolving their sport inside a topic that is becoming increasingly prevalent within today's society. Alongside the topic of sustainability, CSR is debatably the most pressing issue on a global scale within organisations as football continues to expand and so participants from national associations along with major stakeholders inside the football world attended the seminar with the knowledge that this is a topic that increasingly requires attention.

CSR is a systematic approach to management whereby an organisation seeks to increase social responsibility throughout all aspects of the corporate body, that is economically, financially, environmentally and socially. Functions of CSR policies are often self-regulating and work in compliance with ethical standards in order to elicit a positive perception of an organisation's activities. CSR work holds the potential to offer extremely positive opportunities in terms of future planning and beneficiaries for the footballing community in the long run. A number of steps could be taken by football associations in pursuit of CSR aims such as:

• Identifiying a strategies/policies main purpose, values and goals. (Economic)
• Identifying senior management hierarchically throughout the organisation to demonstrate responsibility. (Economic)
• Identifying key stakeholders and thus producing specific strategies to satisfy each of them. (Finance)
• Identifying potential costs and benefits. (Finance)
• Adopting efficient communication policies. (Social)
• Identify key 'green' areas throughout the organisation that hold the potential for improvement. (Environmental)

This seminar is not to say however, that governing bodies have not already identified the importance of CSR and it is clear that football associations are continually producing CSR work, the extent to which is often in comparison with the size of the body in question. Countries in attendance offered various examples of social responsibility they had produced already within their governing body. Such an example was provided by the Irish FA, whereby they demonstrated the strategy and visions behind their community-targeted 'Football for All' programme. Such a scheme epitomises the direction in which football must continue to move, in collaboration with it's hierarchical model of governing bodies, if it is to satisfy it's diverse communities and also protect it's integral ethics and values.

The European football market easily distinguishes the need for CSR to be at least in the thoughts of football associations with it's wide range of different cultures, ideas and knowledge. Of course, it is a learning process that most probably, will never end and continuously evolve and it's interesting to see what goes on 'behind closed doors' within UEFA, so to speak. The ability for ideas behind CSR to be shared at least on a European basis and put to best use is a superb use of time.

This is a topic I'm not sure many football fans adhere to, or perhaps understand the importance of in comparison to the need for goal-line technology, but it's excellent to see UEFA identifying one of the worlds most pressing issues at present business-wise, and relaying it's importance to the organisations it governs!

CLD

Twitter: @callumldraper

Facebook: facebook.com/callumldraper

The end of NPower sponsorship.

The Football League will be on the lookout for a new title sponsor throughout the 2012/13 season after partner NPower decided to opt out of renewing it's sponsorship at the end of the season.

NPower sponsorship as of
the 2013/14 season
will be no more.

The utility provider signed a three-year deal back in 2009 worth £21m as it looked to position itself as a positive energy provider in the minds of the football community. Since then, the company has had a change in directorship as then marketing-director Kevin Peake left NPower last year, leading to speculation around the decision against renewal. Incidentally the change of leadership meant a change in company brand positioning.

It is understood recently appointed top marketer Debbie Britton oversaw a thorough brand and strategy review upon assumption of her post. The results of their findings effectively produced the collective agreement within the energy company for the necessity to move it's marketing 'in a different direction'.

The Football League's chief commercial officer Richard Heaselgrave is now free to negotiate with other brands after the period of negotiable exclusivity between NPower and The Football League has now expired.

Previous title sponsors of the Football League since 1993 have been Endsleigh Insurance (1993-1996), Nationwide (1996-2004) and Coca-Cola (2004-2010).

CLD.

@callumldraper

The use of Twitter - Schalke 04

Schalke 04 have taken an interesting insight into a method of motivating their players by taking to social media site Twitter to showcase tweets encouraging their stars.

LCD screen's can be found throughout their training base with stirring tweets acting as constant inspiration to the players, coaches and staff alike. The screens are surrounded by the club's branding in a technique that could be used to encourage the players to become autonomous in their feelings towards the club, and thus intrinsically believing and understanding what the club and it's heritage stands for.

It would be interesting to know whether the tweets are moderated to ensure only the 'right sort' of tweets reached the players, or if they are left leaving the players free to interpret any tweet themselves, as with any club, a certain amount of abuse can be found in the small corners of the twittersphere.

This is just one of the many examples Schalke provide of how getting the little things right throughout the club can make a big difference in getting things right on the pitch as they currently sit high-flying in 3rd position in the Bundesliga.

Good to see Twitter being put to good use in the media, and not to criticise and single out players on what they have/have not said (and subsequently deleted!) - well done Schalke 04!

CLD.

@callumldraper

The 'Wiggins Effect'

Following an abundance of British Cycling success at London 2012, spearheaded by the performances of Bradley Wiggins, all-rounder franchise Halfords have recorded record bike sale increases in the second quarter.

Of course, sales increases were expected in specific areas as a result of the games, of which associated companies may/may not have budgeted for, yet Halfords recorded a near 15 per cent rise (14.7%) in bike sales figures in the second quarter of the financial year alone surely surpassing all expectations!

Timely launched brands such as the Victoria Pendleton and Chris Boardman ranges, matched with excellent staff knowledge in store are notable explanations for the rise. It is these features that those in high positions within Halfords will be looking to maintain and improve upon in the upcoming months as the legacy continues. The Pendleton range in particular stands out as a brand launched purely off the back of the Olympics, aiming to encourage women to participate in cycling at the most basic of levels. The range is advertised by Pendleton wearing dress, showing that the ladies can act and be natural whilst taking part in the sport.

The news will come as a delightful reprieve to Halfords who, following the resignation of chief executive David Wild based on a profit warning issued following record levels of rainfall affecting sales of outdoor products earlier on in the year, were clearly in search of some good news! Luckily it arrived and long may it continue!

CLD.