Final 10

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1. Sponsee - The Color Run LLC: 1.1. The overview of The Color Run: The Color Run (TCR) is a global five-kilometers running event, which is managed by The Color Run LLC, an American for-profit company. Being known as “The happiest 5k on the planet”, the no- winner racing’s purpose is to celebrate the healthiness and happiness by connecting the public together ( The Independent, 2014, November 29). Particularly, the runners are sprayed by colorful powders when they run through many different color sections during the race. Music parties, celebrations and food booths typically are served at the finish line. Despite of not

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Final 10

Transcript of Final 10

1. Sponsee - The Color Run LLC: 1.1. The overview of The Color Run:The Color Run (TCR) is a global five-kilometers running event, which is managed by The Color Run LLC, an American for-profit company. Being known as The happiest 5k on the planet, the no-winner racings purpose is to celebrate the healthiness and happiness by connecting the public together (The Independent, 2014, November 29). Particularly, the runners are sprayed by colorful powders when they run through many different color sections during the race. Music parties, celebrations and food booths typically are served at the finish line. Despite of not being a charity celebration, TCR has associated with Global Poverty Project, its global charity partner, and other local charities in which the event is hold in order to rise benefit for the communities. More details will be presented in picture 1.Picture 1: Timeframe of the Color Run and the Color Run UK:

The period of time from 2013 to 2014 is a significant stage in TCRs development process. After signing the agreement in 2013 with IMG group in order to expand the company beyond US, the event marked its presence in UK, Canada, Europe and Asia, with more than 2 million participants a year later. Insofar TCR has been perceived as the new phenomenon with the spread of its popular on social media and TV (Philips, 2013). The number of its sponsors is also increase with famous brand-names such as Sony and New Balance in Australia, Nike, Mitsubishi and GMs Chevrolet in US. Moreover, to distinct it among the rise of other similar events, The Color Run has added new concept to attract more players, diversifying the value of the company.1.2. Target audience: With the theme Be Healthy. Be Happy. Be You, TCR aims to approach a broad audience including non-runners and professional ones who come from all ages, especially the generation Y (16-30 years old). According to Larkin (2013) and Philips (2013), more than 60 percent of participants are first-time runners who seek the excitement and healthy lifestyle, mostly from families and youngster. 1.3. The companys mission statement:Its mission is To bring joy to the world through color. Apparently, TCR was born to inspire player of all ages and abilities to run sharing healthy lifestyle and happiness. Hence, the game has gained its reputation as a unique, entertaining workout and enjoyable experience. 1.4. The sponsorship analysis: TCRs sponsors are different in various locations where the event is located. In UK, 2015 is the third year British people have chance to take part in the game. In this context, the sponsorship analysis focus on the UK situation only. (Figure 1)

Figure 1: The sponsorship analysis of TCR UKTime/sponsorThe benefits that sponsors get from the sponsorship/partnershipThe benefits that Sponsee get from the sponsorship/partnership

2013DuluxMarketing in Kind: Viral marketing for the Dulux youtube clipCase and Marketing in Kind:- Brand Awareness: 20,000 participants for the first time introduced in UK (Run247, 2014).- Dulux is the main sponsor for Color Run 2013

2014Dulux

Capital FM

Save the Children are NSPCCMarketing in kind: Improve brand awareness. Showing the relationship between then event and the brand Bringing people together through the power of color. (Run247, 2014).

Marketing in Kind: Improve brand awareness and communication as Capital FM also team up for running at the event

Cash : Raise fund for children (northernrunningguide, 2014).Cash and Marketing in kind: The main supporter for 2014 Color Run. Dulux sponsor for the prize of a sub-contest (capitalfm, 2014). The boost for increasing participant up to 85,000 (Run247, 2014).

Marketing in kind and value in kind: Capital FM is the main Media Partner

Marketing in kind : Raise the awareness (Amarillo, 2013).

1.5. The reputation:Although TCR event is quite new hit among the youth, it has expanded as a hit among the youth, a part thanks for the viral spread on social media network (Galindo, 2012). Its key events will be displayed as following ( Figure 2). Figure 2: The reputation of TCRThe occasionsPositive impactsNegative impacts

Achievement Signing the contract with IMG Challenger World -the global sport, fashion and media corporation. The events popular has gone beyond the US with the support from global company, IMG. Featured on the news of ESPNs Sports Center channel first time to be on TV.

There are totally over 2 million runner in the word have joined in The Color Run (The Color Run UK, 2014). Gaining its reputation as the largest running race in the world (The Color Run UK, 2014). - Receiving the prize of 2014 Utah Marketing Award as The Best B2C Marketing team

Criticism The Color Runs related-charity issue:The Color Run mislead the participants to think that all revenue will go to the charity (Amarillo, 2013). Some players are disappointed to learn that not all revenue are given to charity. (Condie, 2013).

2. The overview of Glacau Vitamin Water: Vitamin Water belongs to Energy Brands, a subsidiary firm of The Coca-Cola Company, which produces various lines of enhanced water. It is a colorful hydrating soft-drink with vitamins and minerals to help the customer maintain the nutritious balance for a whole day. Until now, Vitamin Water has been a bestselling in enhanced water line in US whereas in the UKs market it has introduced in seven different-tastes. The development of Glacau Vitamin Water has been influenced significantly after the acquisition of Coca-Cola Co. in 2007 which will be describe clearly in picture 2. The information related to its parent company, The Coca-Cola Company, also be shown as bellowed.Picture 2: Timeframe of Glaceau Vitamin Water and The Coca-Cola Company

Both The Coca-Cola Company and Glaceau Vitamin Water have to face a lot of obstacles since 2000s until now. On the one hand, The Coca-Cola Company still maintain its traditional reputation as a top brand sponsoring for sport 2.1. Target audience:Glacau Vitamin Water positions itself as a unique and healthy product to the youth market who are health conscious and desire to enjoy life. Vitamin water products targeted on the generation Y, mostly youngster and younger, as all its ad campaigns theme are fun, optimistic and sporty. (The Coca-cola Company, 2014)2.2. The products mission and perception:With the mission of Grab lifeby the bottles and hydrate the hustle, Vitamin Water portray it as a lifestyle product by which the customers are not only can enjoy tasteful hydrating drink but also can experience the feeling of life . Moreover, the message of the Coca-Cola Company is also effect to Vitamin Waters brand perception which can be recognized via some campaign of VitaminWater: Make Bore Brillian, and Shine bright (Galindo, 2012). The Mission of The coca-Cola is To refresh the world, To inspire moments of optimism and happiness, To create value and make a difference. (The Coca-cola Company, 2014)2.3. The sponsorship analysis: Figure 3: The sponsorship analysis of Vitamin Water:Key eventsThe benefits sponsor get from the sponsee

Sponsors the Vancouver 2010 Olympic Winter Games in Canada. Increasing brand awareness and reputation as a softdrink official for athlete at the game.

Worldwide sponsor of London 2012 Olympic Games.Jessie J is ambassador

Increase their sales in the U.K especially because Vitamin Water is still at the early stage of product cycle (Galindo, 2012) Increase brand association: join the show and platform game. Increasing trial Increasing the brand awareness : associate with Jessie J

Being the official soft drinks sponsor of London Fashion Week

Increasing the awareness since the models at the shows drink VitaminWater and its posters appeared significantly during a week

2.4. Reputation:Figure 4: The reputation of Vitamin Water The occasionsPositive impactsNegative impacts

Being acquiring by The Coca-Cola Company in 2007Having more supports from the parent company: more efficiency marketing strategy ( have more sponsorships), expand beyond the US market Because the Coca Cola company have to deal with a lot of criticism, especially the Health issues since 2000sVitamin Water also was assessed and criticized by the publics and the industry watchdogs

In 2009 the Coca-Cola Co. was used by the Center for Science in Public Interest (CSPI) due to the misleading claim for Vitamin Water as nutritious (Nbcnews, 2009, Staff, 2011). The coca-cola company partner, NCAA decided to ban their students to drink six over thirteen tastes of Vitamin water. (Zmuda, 2009). Effect to the relationship between two partiesVitamin Water advertising was also banned at that time in US(Nbcnews, 2009)

In 2011, Vitamin Water was sued again by the United Kingdom's Advertising Standards Authority for its advertising which claim the product is nutritious. (BBC News, 2011, Dailymail, 2011).Although Coca-cola declared that the products sugar content is below the Europe Food&health regulation, its advertising still be banned in UK(BBC News, 2011, Dailymail, 2011).

In 2014, Coca-Cola Co. reformulated the product by using stevia instead of sugar (Suddath, 2014).The company reproduce the original one to satisfy customers (Suddath, 2014).Receiving the negative feedbacks from customers toward new taste. (Suddath, 2014).

The brand Vitamin Water is used to stay a strong and successful brand among the young consumers within the line of enhanced water beverage. However, its reputation has been decrease over time while the growth of new and current competitors goes up significantly, causing the huge threat for Vitamin Waters long-tern success. Although, the product is the leader in enhanced water drink (making up 30 % in US market) (Trefis, 2014), its sale is on the decrease and believe to be declined for coming years in case of not being rebranding to retain the customers. For the UK market in this context, Vitamin Water is still being at the early mature which are likely still have a chance to attract more new buyers, expanding the share. These information leads to the establishment of the strategy objectives as following.3. The objective for the sponsor:Having a clear and sufficient objective is the key to successful partnership. In this assignment, an S.M.A.R.T matrix which is defined as a better way to set up goals and objectives. (Collett, and Fenton, 2011).Figure 5: The Objective of Vitamin Water at The Color Run eventObjective SpecificMeasurableAchievableRelevantTime-based

Increase the awareness of Vitamin Water among youngsters from 15-25 years old in UK by 30% over next 6 months (October 2015)youngster from 15-25 year old passing over 40,000 product sample in each event Increase number of fans on social network 6 months after first event ( in June)

Enhancing reputation

There are many reasons for Vitamin Water choose the Color run over other events. Firstly, the Coca-Cola Company is well-known as one of the top Global sponsor for sport sponsorship. Apparently, global revenues from sports sponsorships will increase in 2015, making up around 5.3 per cent, being a trend in sponsorship today (PwC, 2011); and Vitamin Water has a sporty image, hence, sponsoring for The Color Run is totally a fit sponsorship. Secondly, the theme of Vitamin Water is happy, energetic and lifestyle inspiration aiming at the youth which is suitable for the color run event. In addition, because the runners will need water before, during and after the event, as well as attract potential customers, the presence of Vitamin Water in this event will become a competitive advantage for the company strategy. Moreover, It is likely that the partnership can bring benefits to both organizations, in which Vitamin Water can approach to the new consumers as well as individuals who older and younger demographic of the main target consumer together with increasing brand awareness since The Color Run event occurs in 6 largest cities in UK. Last but not least, the brand can be recognized as a reputable and highly prolific brand via the public events which increase the brand image in customer perception. 4. Sponsorship Strategy based on sponsor objectives:4.1. Discovery:Both Vitamin Water an 4.3 Development:Key target audience:Due to the similar target audience between the color Run event and Vitamin water as mentioned above, the key target of the sponsorship will be descried in more detailed:Demographic: All genre, from 15- 40 years old.

4.2. Action plan:In this assignment, the schedule and location of event will be based on the real situation, regarding to The Color Run UKs information (Thecolorrunuk, 2015), the events in UK would spend from 7th June to 10 October respectively. However, VitaminWater decides to choose two over six events in total. The schedule will be as following:Figure 6: the location and schedule of The Color Run UK 2015 (Thecolorrunuk, 2015)LocationsSchedule

LondonJune 7th, 2015

ManchesterJuly 5th, 2015

The action plan is described in this context will be applied for the rest of TCR events which share the identical objectives and activities because the event structure at each place will be the same and the size of these two

Figure7: the action plan ObjectivesActionsMeasurementResources used

Increasing brand awareness 1. Becoming title sponsorship of The Color Run, hence, the brands logo is always at place that the runners recognize easily.1. Encourage the participant take photos/ video to share their happy moments 1. An unicorn mascot costumes wearing seven colors ( portray for Vitamin Water s colorful drink) and have logo Vitamin Water 1. Creating a swag bag: a white T-shirt, headband, bracelet, a number bib and a VitaminWater enhanced drink.1. Giving leaflets at the beginning of the race. The leaflets consist of the product introduction, value and its social network for retain consumers.1. Giving product sample with different tastes at the beginning of the race1. Creating some active games/dance before the run is started i.e. hiring cheerleader.

1. The brand awareness can be measured via the increase fans on Facebook 1. Comparing the number of participants this year and last year1. Logo of Vitamin Water 1. Financed resources1. Humane resource 1. Vitamin water s social net work

Enhancing the reputation of brand 1. Teaming up a group/ team to praise charity for the publics. Vitamin Water will contribute the prize for the winners.1. Create active game / dance in order to encourage the young keep fit and be active in life.1. Measuring by the sale and the feedbacks on Social network 1. Financed resources1. Humane resource

ObjectivesResources implementation

Increasing brand awareness Encouraging large number of target customer to engage with the game

Enhancing the reputation of brand Receiving the positive feedback from general publics.

No.Items/personIntention

1T-shirt-Wearing white T-shirt is compulsory to the participants. The T shirt will have logo of Vitamin water.

2Sunglasses Distributing for the player

3Vitamin water sample six tastes1. Distributing freely to the runner.

4A5 leaflet1. Introducing information about Vitamin Water.

5Poster display on events1. To increase the awareness and interest of participants on the product at the events.

6unicorn mascot ( or cute characters)1. To catch the runners attention and arouse the crowd.1. Be a person who start the game 1. Reason to use the mascot: mascot is need for the sport event and unicorn is funny and attractive, inspire happiness and kind of be suitable for color theme

7Rainbow Headdband1. Distributing for the players ( having the logo of Vitamin water )

8Bracelet1. Distributing for the players ( having the logo of Vitamin water )

9hiring cheerleaders1. Arouses the participants before, during and after the racing

10Uniform for staffs (it must have logo of Vitamin water and Thecolorrun)1. Staff must wear uniform which have the logo of sponsors

Feature 8: The list of items the sponsor will provide for the sponsee:

4.3. Forecast:

Items/tangible goodsQuantityCost per itemTotal cost

Print logo on T-shirt and T-shirt ( racing cloth)15,000345,000

Rainbow Headdband10,000330,000

Sunglasses15,000345,000

Bracelet20,000120,000

A5 leaflet100,0000.0121,200

Poster display on events( Ao)1505750

unicorn mascot : costume cloth150/day50

Unicorn mascot: hiring person 150/day50

Sample product200,0001.5300,000

Swag bag 5,000550,000

cheerleaders1050/day50

The prize for the winner team 1500500

Uniform for staffs during the event (it must have logo of Vitamin water and Thecolorrun)50052,500

Total sponsor budget for one event 495,100.00 *

Final sponsor budget (for three events) 990,200.00

References:1. BBC News. (2011).Advert for Coca-Cola Vitamin Water 'misled public'. Retrieved from http://www.bbc.co.uk/news/uk-12218673.2. Dailymail, (2011).Coca-Cola's Vitaminwater adverts branded 'dangerously misleading' by U.S. consumer group. Retrieved from http://www.dailymail.co.uk/news/article-1353544/Coca-Colas-Vitaminwater-adverts-branded-dangerously-misleading.html.3. Staff, Journey. (2011).http://web.archive.org/web/20130116234344/http://www.coca-colacompany.com/media-center/company-statements/glaceau-vitaminwater-lawsuit. Retrieved from Statement on The glacau vitaminwater Lawsuit.4. Nbcnews. (2009).Coca-cola sued over Vitamin Water claim. Retrieved from http://www.nbcnews.com/id/28675966/#.VTenliFViko.5. Zmuda, Natalie. (2009).Vitaminwater Runs Afoul of NCAA Banned-Substances Rule. Retrieved from http://adage.com/article/news/coke-s-vitaminwater-runs-afoul-ncaa-banned-substances-rule/134534/.6. Suddath, Clarie. (2014).Vitaminwater Fans Hate the New Vitaminwater. Retrieved from http://www.bloomberg.com/bw/articles/2014-06-10/vitaminwater-fans-hate-the-new-lower-sugar-vitamin-water.7. Collett, P., & Fenton, W. (2011). The sponsorship handbook: Essential tools, tips and techniques for sponsors and sponsorship seekers. San Francisco, CA: Jossey-Bass.8. com.au/story/1750257/claims-cast-colourful-shadow/. Cleaver, Skip. (2013).The Color Run Racing Series: Highlighting Several Terrifically Enjoyable Races Around the USA. Retrieved from http://www.coolrunning.com/engine/1/1_22/16635.shtml.9. Philips, Sarah. (2013).The Color Run: an American running phenomenon comes to Britain. Retrieved from http://www.theguardian.com/lifeandstyle/the-running-blog/2013/jul/09/color-run-american-phenomenon-britain.10. The Coca-cola Company , . (2014).Mission, Vision & Values. Retrieved from http://www.coca-colacompany.com/our-company/mission-vision-values.11. Run247. (2014).The color run comes to Queen Elizabeth Olympic park!. Retrieved from http://www.run247.com/articles/article-5340-the-color-run-comes-to-queen-elizabeth-olympic-park%21.html.12. capitalfm. (2014).Win 2,500 With Dulux. Retrieved from http://www.capitalfm.com/manchester/win/dulux-2500-manchester/#LD7bkkek4dUo1KHc.97.13. northernrunningguide.. (2014).New Dates For Color Run. Retrieved from http://northernrunningguide.com/news/color-run.14. The Color Run Uk. (2014).About Us. Retrieved from http://www.thecolorrun.co.uk/About-Us.15. Amarillo. (2013).Does The Color Run mislead participants into thinking all proceeds go to charity?. Retrieved from http://amarillo.com/news/local-news/2013-07-27/race-leaves-mixed-feelings.16. Condie, Katrina. (2013).Claims cast colourful shadow. Retrieved from http://www.ulladullatimes. 17. Trefis. (2014).Coca-Colas All-Natural Brands Simply And Vitaminwater Could Face Headwinds Going Forward. Retrieved from http://www.trefis.com/stock/ko/articles/244334/coca-colas-all-natural-brands-simply-and-vitaminwater-could-face-headwinds-going-forward/2014-06-24.18. Galindo, Viviana (2012). Retrieved from http://www.tc.umn.edu/~gali0050/portfolio/images/PDF%27s%20for%20website/plcmktg.pdf.19. PwC. (2011).sport sponsorship. Retrieved from https://www.pwc.com/en_GX/gx/hospitality-leisure/pdf/changing-the-game-outlook-for-the-global-sports-market-to-2015.pdf.20. Thecolorrunuk. (2015).Location. Retrieved from http://www.thecolorrun.co.uk/Locations