Leveraging the Power of Sports Sponsorship: Impact on Brand Equity in the IPL Era
In recent years, sports sponsorship has emerged as a potent marketing strategy for brands worldwide. The Indian Premier League (IPL), one of the most-watched cricket tournaments globally, has become a prime arena for brands to enhance their visibility and build brand equity. This blog explores the role of sponsoring sports events like the IPL in bolstering brand equity, supported by data and sources.
Increased Brand Exposure: Sponsoring the IPL offers brands unparalleled visibility to a vast and diverse audience. According to a report by Nielsen, the IPL 2020 garnered a cumulative reach of 405 million viewers, making it a lucrative platform for brand exposure (Source: Nielsen Sports). With matches broadcasted globally and extensive media coverage, sponsors gain widespread visibility, thereby increasing brand awareness among a broad demographic.
Enhanced Brand Recall and Recognition: Associating with a high-profile sporting event like the IPL helps brands to establish strong associations in consumers' minds. A study conducted by Kantar revealed that IPL sponsors experienced a 17% increase in brand recall compared to non-sponsors (Source: Kantar). Consistent brand presence throughout the tournament, including on player jerseys, stadiums, and advertisements, reinforces brand recognition and ensures that the brand stays top-of-mind among consumers.
Positive Brand Image and Perception: Sponsoring sports events like the IPL allows brands to align themselves with the passion and excitement of sports, fostering positive brand associations. Research indicates that consumers perceive brands sponsoring sports events as dynamic, youthful, and energetic (Source: Marketwatch). This positive brand image translates into increased consumer trust, loyalty, and preference, ultimately contributing to enhanced brand equity.
Opportunities for Consumer Engagement: Sports sponsorships offer brands unique opportunities for direct consumer engagement and interaction. Through various activation activities such as fan zones, contests, and social media campaigns, sponsors can create immersive brand experiences for fans. According to a study by Ipsos, 75% of fans feel more positively about sponsors who engage them beyond traditional advertising (Source: Ipsos). Such interactive initiatives not only strengthen brand-consumer relationships but also generate valuable user-generated content, amplifying brand reach and engagement.
Financial Performance and Market Share: Research suggests a positive correlation between sports sponsorship and financial performance. A study published in the Journal of Advertising Research found that companies investing in sports sponsorship experienced an increase in market share and stock prices (Source: Journal of Advertising Research). The heightened visibility and positive brand associations derived from sponsoring sports events like the IPL contribute to improved brand performance and competitiveness in the market.
Long-Term Brand Building and Loyalty: While the immediate impact of sports sponsorship is evident, its long-term benefits in brand building and loyalty are equally significant. According to a report by Repucom, 65% of sports fans are more likely to purchase products from brands actively involved in sponsoring sports events (Source: Repucom). By nurturing emotional connections with consumers through shared experiences and values, brands can cultivate enduring brand loyalty, driving sustained growth and profitability.
Here are some of the prominent team-brand associations in the IPL:
Mumbai Indians:
Principal Sponsor: Samsung
Official Partners: Marriott Bonvoy, Colors, Usha, Jio, Kingfisher, Dream11, Burger King, Kotak, William Lawson's, Boat, DNA Networks, Radio City, Performax, Astral Pipes
Chennai Super Kings:
Principal Sponsor: Muthoot Group
Official Partners: Equitas Small Finance Bank, Gulf Oil, Nippon Paint, EUME, FanCode, Dream11, Boat, SEVEN, Astral Pipes, Usha, Nippon India Mutual Fund
Kolkata Knight Riders:
Principal Sponsor: BYJU'S
Official Partners: Lux Cozi, Astral Pipes, Dream11, Jio, Kingfisher, Greenply, Royal Stag, Kotak, Nokia, Medimix, Colgate, Asian Paints, Royal Stag, TV9 Bangla, Kotak, and Fancode
Royal Challengers Bangalore:
Principal Sponsor: Muthoot Fincorp
Official Partners: Duroflex, Astral Pipes, Kotak, Jio, Max Life Insurance, Exide, Singha, Mai Dubai, Kingfisher, Dream11, and Nissin.
Delhi Capitals:
Principal Sponsor: JSW Group
Official Partners: APL Apollo, Dream11, Jio, FanCode, Boat, Kotak, Colgate, BKT Tires, Livinguard, Fever FM, Nerolac, and EbixCash.
Rajasthan Royals:
Principal Sponsor: TV9 Bharatvarsh
Official Partners: Kei Wires & Cables, Astral Pipes, Kingfisher, Jio, Red Bull, Dream11, DafaNews, Dream11, FanCode, Acko General Insurance, and Jai Raj Steel.
Sunrisers Hyderabad:
Principal Sponsor: JK Lakshmi Cement
Official Partners: Ralco Tyres, Astral Pipes, Dream11, Jio, TCL, Colgate, Kia Motors, Nerolac, BKT Tires, and Jai Raj Steel.
Punjab Kings:
Principal Sponsor: EbixCash
Official Partners: BKT Tires, Colgate, Astral Pipes, Dream11, Jio, Fancode, Tata Motors, and Jai Raj Steel.
These associations not only provide financial support to the teams but also help brands in gaining exposure and reaching out to a wide audience during the IPL season.
Sponsoring sports events like the IPL offers brands a powerful platform to enhance brand equity and achieve strategic marketing objectives. The extensive reach, heightened visibility, and positive brand associations derived from sports sponsorships contribute to increased brand awareness, recall, and preference among consumers. Moreover, the opportunities for consumer engagement and long-term brand building further solidify the value proposition of sports sponsorship for brands. As the global sports sponsorship landscape continues to evolve, brands leveraging the inherent synergy between sports and marketing stand to reap substantial rewards in terms of brand equity and financial performance.
Authored by
Dr. Kanchan Yadav
Assistant Professor,
Department of Management & Commerce Studies,
The NorthCap University
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