Sponsorship

ESC – Tours – Poitiers -‐ 2009/2010

COURSEWORK COVERSHEET

Student name

Or Students’ names

(if group work)

Jolie Görlitz Isabel Lapuyade

Vanessa Levrat Rosalía Piña Stephanie L. Webb

Course IMCo

Module Sponsorship

Lecturer Gareth Thompson

Grade :

Lecturer’s Comments:

Sponsorship Report and Proposals Jolie Görlitz, Isabel Lapuyade, Vanessa Levrat, Rosalía Piña, and Stephanie Webb

17 May 2010

Table of Contents Introduction 4

Stage 2: Targeting 4 Stages 3-‐4: Approach and Sponsorship Solutions 5

A. Target Audience ‘Fit’ 5 B. Marketing Objectives ‘Fit’ 6 C. Values ‘Fit’ 7

Stage 5: Program Structure Selection 8

Stage 6: Complete Sponsorship Negotiations 9 A. Sponsorship Packages 9

Stage 7: Continuous Relationship Building 11 Stage 8: Measurements and Sponsorship Evaluation 11

Stage 9: Ethical Line 12

Bibliography 13 Appendix A: Stage 1 – Inventory 14

Appendix B: Accenture Proposal 19

Appendix C: Apple Proposal 25 Appendix D: Sponsorship Evaluation 31

Introduction ESCEM business school currently has locations in Tours, Poitiers, Paris, and The Futuroscope with 2,600 students in total. As an international school with 17 specialized masters’ programmes, ESCEM is committed to providing the curiosity needed to progress in life, as well as the humility and integrity to perform to the highest level. Through their open vision, ESCEM nurtures students by encouraging them to discover every aspect of the professional life. (ESCEM Website, 2010) It is imperative for ESCEM to maintain its competitive advantage and demonstrate their ambition through partnerships with strong and committed sponsors in order to further develop the brand. This report discusses the following companies and the mutually beneficial relationships that can be formed.

• Accenture is a “global management consulting, technology services and outsourcing company”. They collaborate with clients to increase their performance and become industry leaders. (Accenture Website, 2010)

• Apple is one of the world’s leading technology firms, offering its customers a wide range of products (small mp3 players to the Apple TV system). They commit themselves to excellent through an open world-‐view and ensuring the highest quality standards in all aspects of the business. (Apple Website, 2010)

• Orange has become one of the world’s leading phone, Internet, and television service providers. Currently, they are sitting at the third position in the French mobile market and the first ADSL provider in all of Europe. (Orange Website, 2010)

• Renault is a leading car designer and manufacturer (2,382 thousand in 2009 sales) through creating alliances and adapting to market demands for the next generation of cars (including the electric car market, where they are the strongest). (Renault Website, 2010)

• Subway is currently located in 91 countries, with 180 restaurants in France, making it a key player in the fast-‐food industry. They are committed to being a ‘healthy alternative’ and aim to have 2,000 franchises in the next ten years. (Subway Website, 2010)

• Ubifrance is dedicated to helping establish men and women from France abroad. Under the French ministry of Economy, Industry, and Employment, they provide students and companies with the “Volontariat International en Entreprise”. (Ubifrance Website, 2010)

Stage 2: Targeting ESCEM provides unique opportunities for students who chose to study at their school. They aim to have an equal balance in the male to female ratio and who are between the ages of 20 and 25. These students also represent over 40 different nationalities with 20% of them being international students who may be doing their ‘study abroad semester’ at the Poitiers location. All of the students are required to have a good working knowledge of the English language so they may be able to complete a business-‐related degree. Additionally, they have all lived abroad at some point in their academic career. These students come from a variety of scholastic backgrounds and 61% participate in some form of sports team or programme. Moreover, for every incoming student, ESCEM provides a laptop computer.

Stage 3-‐4: Approach and Sponsorship Solutions Before soliciting for sponsors, it is necessary to do background research on who should be approached and how they ‘fit’ with your organization or business through developing a similar target market, marketing objectives, and the values of both.

A. Target Audience ‘Fit’ The target audience for both your own organization or business and the potential sponsor should have similar characteristics. The following information details the overlap of target groups between ESCEM and the four1 potential sponsors. Orange The mobile industry growth rate has recently begun to decline to as little as 0.1%, resulting from an oversaturated market (Mintel Report, 2010a). Orange is trying to counteract against this problem by penetrating into Internet browsing on mobile handsets; however, web-‐oriented smartphones are still low. According to a small poll, many ESCEM students use the Internet at least once a day. Students are accessing the email nearly once an hour at a minimum, which totals to around 30 times in just a week while they are in school2. A Mintel Report on mobile phones indicates the most active (46%) web-‐using age group is between 16 and 24 years (2010a). Similar figures are shown in a 2010 Key Note Report that highlights the largest group in percentage to use mobile calls (97%), texting (97%), and emailing (87.1%). Additionally, Orange has launched their new ‘Dolphin’ payment scheme, which is marketed to the ‘fun, loving, and sociable’ (a seemingly ideal ‘fit’ for students) (Orange Website, 2010). Renault As Renault offers a variety of models, it is difficult to see an obvious alignment with their target market to ESCEM; however, there are several common factors. The students of ESCEM are the buyers for the future. The average starting salary is around € 33,000 annually (ESCEM Press Book, 2010), which is perfect for Renault and their model offerings. Nearly 80% of ESCEM students are using eco-‐friendly transportation and 77% take measures for sustainable development in their daily lives, 20% of whom are regularly using a car, with 35% car sharing. (D’Audiffret and Daelman, 2010) Subway According to Chart 1 on the following page (Mintel Report, 2010b), Subway should focus on the “How I Like It” category, accounting for 15% of their potential market. This group appreciates having a choice in the decision, with 54% of them typically choosing a menu option (includes a drink and snack). Most of this demographic consists of students and part-‐time employees who are price-‐savvy, but not entirely price-‐led. ESCEM students look for convenience where they can get everything at once. (Subway Website, 2010).

1 There is no mention of Accenture and Apple sponsorships throughout this portion of the report, as they are detailed in the présentations in Appendix B and C.

2 Amount of 30 is from an approximated 6-‐hour school day for 5 days in a week.

Chart 1: Target Groups for Sandwich Shops

Ubifrance

As noted earlier, 100% of ESCEM students have lived abroad at some stage in their academic career. Ubifrance is interested in students who are looking to work in an international platform and are willing to cross boarders. ESCEM students could also use Ubifrance to help locate home-‐based positions that require travel and help them emulate and foster partnerships with foreign companies. Ubifrance boasts at least 5,600 internships a year, with 16% being out of the country (ESCEM Press Book, 2010). ESCEM is continually growing on an international scale and an affiliation with Ubifrance could help flourish the ‘contacts network’ for students looking to intern abroad.

B. Marketing Objectives ‘Fit’ To coincide with the right target group, it is also pertinent to maintain similar marketing objectives for both parties involved. Orange Currently, Orange has several establish sponsorship relationships and programmes with students. They have several scholarship opportunities for individuals to gain technological and multicultural knowledge. ESCEM fits this demographic as there are 40 different nationalities represented across the University. Renault Renault will be launching a new range of electric cars in 2012. The company is looking forward creating a communication platform on these new car models. Besides creating some PR activity, Renault needs to find partners to facilitate the product launch. For the moment they only have B2B partners, but no schools partnerships yet. Being a sponsor of ESCEM will enable them to create PR activity and to have a B2B partners and B2C end

users who are the students themselves. On its side, although 76.8% of ESCEM students are informed on sustainability issues, only 41.2% of them are really involved and ready to change their behavior. These facts clearly show that still some efforts are needed in this field. Being informed does not mean taking actions and being involved. Subway By introducing point-‐of-‐order nutrition information, Subway tries to differentiate them based on the health aspect. Thus, a sponsorship at ESCEM provides a great hub for them to promote this objective. Furthermore, Subway’s student deal for 5-‐7 Euros for a sandwich drink and a cookie incorporates the Subway’s marketing campaign with the tag line ‘However you feel, whatever you want, we’ve got a Sub for that’. By sponsoring ESCEM Subway can focuses on a customer choice as a point of difference and try to engage customer in additional purchases of their product range. Ubifrance The mission is to support French companies in their efforts for internationalization of French products in foreign markets through a partnership with the Chamber of Commerce and Industry, as well as a network of French men and women in business. Their goal is to help ease market entry abroad. Currently, they are represented in all industries.

C. Value ‘Fit’

Along with the target and marketing ‘fits’, it is necessary to look at the values for each business or organization. If the values are not shared, there is potential for no successful agreements to be made. Orange Orange’s brand values are to be friendly, dynamic, straightforward, refreshing, and honest. This is in line with ESCEM Mission statement which highlights honesty and self motivation to new things, which supports Orange’s inspirational approach to finding new ways of connecting people. (Orange Website, 2010; ESCEM Website, 2010) Renault Renault and ESCEM are sharing the same values on sustainable development; they are integrating these issues to every level of their company–strategy to operational. More than integrating sustainable development into their company management, both partners are creating products and services to show their commitment to it, Renault by creating electric and an eco-‐friendly range of cars, ESCEM with the creation of teaching and research programmes such as the Master in Sustainable Development (in partnership with the University of Sherbrooke, Canada). (Renault Website, 2010; ESCEM Website, 2010) Subway Subway’s website quotes, “We know our success depends upon the initiative we take individually and our ability to work as a team”. This fits perfectly with ESCEM’s philosophy of teamwork and team projects. (Subway Website, 2010; ESCEM Website, 2010)

Ubifrance Ubifrance values curious interns and the sharing of knowledge, ensuring that students going through their VIE offers are leaving with an open mind and a creative resume. Ubifrance wants to share the French added value and create a network of schools and interested students to ensure a long-‐term relationship between the country, its schools, and the world of organisations. (Ubifrance Website, 2010)

Stage 5: Program Structure Selection The bespoke packaging has been chosen to develop sponsorships that are mutually beneficial by meeting the right owners and the sponsor’s objectives. The rights owner can create packages meeting the requirements of the sponsors. Here, partnerships are developed into a two-‐tier pyramid, with Apple and Accenture being the Goldfish and the four other companies on the Silverfish tier. This reasoning is simply due to the more important proposal put into place with the Goldfish companies. When relationships with Orange, Renault, Subway or Ubifrance will evolve, it will be possible for one of them to ‘climb the ladder’.

Status level two -‐ Silver/ish Orange Renault Subway Ubifrance

Status level one -‐ Gold/ish

Apple Accenture

Stage 6: Complete Sponsorship Negotiations Once a structure has been determined, the rights owner can return to its potential sponsors and finalize negotiations.

A. Sponsorship Packages Orange • Orange Innovation Scholarship – Orange will provide funding to enable 3

students to pay their tuition fees for the first year (3 x €7000 NESS/ISA). Orange will receive the naming rights of the Sponsorship as well as their placement of their logo on all related promotional material (email messages and website). In conjunction with the ESCEM board, Orange will make the decisions. This will support Orange’s CSR approach and provide Orange with media exposure.

• Expertise Speakers at the ‘Going Global’ Event – This will provide Orange with the opportunity to send some senior associates to act as speakers at selected events or conferences. This will incorporate Orange with a school event and bring their brand to the attention of the students, which will establish a competitive recruitment advantage. ESCEM will also provide a post-‐event evaluation, which will give Orange an opportunity for feedback.

• Orange to Sponsor the First-‐Year Welcome Ceremony – This goes in line with the Orange Innovation Scholarship by being a partner of the welcome event Orange’s logo will be incorporated in relevant posters, flyers and invitations issued to all first year students. Orange should provide the necessary funding to cater for 150 people. At the end of the welcome event, the 3 sponsorship recipients will be announced. This event will give orange access to all participants for their own promotional communications.

Renault • Sustainable Development Program – Renault will be the official sponsor of the

different sustainable development actions that ESCEM is having along the year (conferences, events, and fair trade week) providing either financial funds for catering, material, or participating as guest speaker.

• Mobility Event – One specific event will give the company a central focus. This event will be the organization of a “Mobility Event”, which will be held during the Sustainable Development week in March each year. The students will be able to learn about eco-‐friendly driving, assist at conferences on cars new technologies and innovation, and test Renault electric cars. This event will operate as a show window for Renault’s electric car range, and educate ESCEM students at the same time, providing them knowledge on this issue.

Picture : http://www.renault-‐ze.com/zoeconcept

• The Roadshow – In order to get the ESCEM student deeply involved with Renault, the sustainable development topic, and insure press coverage for Renault, Renault could sponsor a roadshow. The company will provide 2 ESCEM students with an electric car model and enable them to participate on a road tour around specific countries in Europe. Countries can be selected based on Renault target market and the road map could be to travel to European business schools to share knowledge and commit other students around this project. This type of project could be organized and managed by a student association. From September to November 2009, Renault already organized this type of project; nevertheless, only politics and journalists were invited on the tour (Renault Website, 2010).

Subway

• Student Discount Offers – Provides students with ‘special discount’ by continuing to offer the €5 and €7 menu deals.

• Official Caterer – Become the official catering sponsor for the Business Development Conference and other related activities where catering is necessary.

Ubifrance

• World Tour Program – Ubifrance allows free access into their database to the ESCEM students, furthermore, a better level of entry concerning the VIE. This partnership gives a good reputation to Ubifrance and is a facilitator for ESCEM. ESCEM wants their students to have internships abroad and to create companies. The total access to the Ubifrance database represents an important leverage when the students want to internationalize. Ubifrance wants more applicant interests around what they propose for their VIE, as well as more companies providing VIEs. By offering more visibility to the ESCEM students, they are creating discussions and in order to promote Ubifrance inside the school. A student competition can be put into place in order to recruit one or two students that would become "Ubifrance Ambassadors" and help promote Ubifrance to students and companies, through seminars and fairs in which ESCEM participates. Ubifrance could sponsor the Escemiale and invite a high profile company that needs students to work for them on an international platform.

Stage 7: Continuous Relationship Building

Showing the willingness to build a long-‐term relationship at the earliest stage will set the foundation to be more efficient and effective. Moreover, it is less costly to develop an existing relationship than it is to recruit a new one (Masterman, 2007). Relationships are built on commitment and trust. In order to improve the trust among partners, it is necessary to allow a certain degree of flexibility on both sides for change. Duff (2004) established some key areas when building relationships, applied solutions will be proposed as the following:

Personal Communications – Interaction between partners and rights ownership will be improved on the ESCEM side of a dedicated team of employees in charge of managing the sponsorship program. This will improve efficiency of the communication. One to one meetings will be organized in order to provide feedback from both sides.

Extra Benefits – One extra benefit ESCEM will provide is the organization of a “Thank You” communication campaign to acknowledge its different sponsors. It will be broadcasted internally using ESCEM’s various communication channels (website homepage, newsletter, e-‐mailing). In addition, advertising inserts will be placed in the magazine “Journal des Grandes Ecoles”. There are 20,000 copies distributed quarterly in 120 French business schools and in 400 French companies (Edicas Website, 2010). Moreover, ESCEM can provide free access to its conferences and meetings rooms on its campus at Futuroscope Technopole, which is the first business center of the region and offers 150,000 m2 of office space (Technopole Futuroscope Website, 2010).

New Ideas – To enable creativity for generating new ideas, the students from the IMCo (International Marketing and Communication Strategy) programme will be asked to conduct projects on improving existing sponsorship programs as part of their assessment. These projects will enable them to work on real cases. A competition could be organized to stimulate the students and prizes can be offered. “Working with young people in education can result in new product ideas and new approaches, through the fresh creativity they can bring to a situation” (Mintel Report, 2006).

Cross Promotions – ESCEM will organize some meetings to facilitate networking among the different sponsors. At an initial stage, ESCEM and its partners will not create cross promotions but concentrate on making the sponsorship program work. Synergies among sponsors will be created throughout the relationship.

Stage 8: Measurements and Sponsorship Evaluation Approximately 5% of the sponsor’s monetary donations will be spent on continuous and post-‐program evaluations. Indeed, “continuous and iterative evaluation of sponsorship is necessary as opposed to a reliance on only post-‐event assessment” (Masterman, 2007). Concerning the time scale, the partnership evaluations will be held at the end of each year.

The rights owner will be in charge of evaluation; in this case, ESCEM will dedicate their employees to measure the sponsorship effectiveness. This evaluation will add value to our sponsorship proposal. According to the literature, there are three different measurement methods of evaluating sponsorship: sales effectiveness, media coverage, and communication effects. Sales effectiveness appears to have no relevance as the opportunities of selling products and services through the partnerships are low. The different partners are to add value and increase the reputation of ESCEM than associated for business objectives. As well, communication effects will not be measured in the early stage of the sponsorship program, as recall and recognition will need some time to develop. In the short term, media coverage will be the main method. ESCEM will count the press and online exposure. More precisely, any reported articles mentioning the name of our sponsors, their projects, and ESCEM. The quality of the sponsorship will be measured through student and partner satisfaction surveys. Please consult Appendix D to have specific details on the measurement tools for each partner.

Stage 9: Ethical Line The idea of corporate involvement in educational institutions has been controversial. Although there is an understanding that sponsorship is almost entirely a commercial arrangement, there is widespread support for companies to get involved in supporting schools and universities. According to a Mintel report on Sponsorship (2010), there are only 3% of survey respondents who believe sponsors are likely to support events because they genuinely care about them. In a 2006 Mintel survey investigating consumer attitudes towards sponsorship, 54 % of the respondents supported all forms of sponsorship that benefited schools. However, 46% disagree with the commercial involvement of companies in educational institutions; hence, there is a strong lobby supporting the idea that educational hubs should be provided directly by the government. Corporate sponsorship for schools should present a tool to transform universities into a creator of future leaders with business values and advanced corporate management techniques. Because of these issues, this document has been limited to the involvement of the chosen companies into the actual teaching. There is no sponsorship for entire course modules.

Bibliography Accenture Website (2010) http://www.accenture.com [Accessed on 3 May 2010]

Apple Website (2010) http://www.apple.com [Accessed on 3 May 2010] D’Audiffret Y. and Daelman A., (2010) Résultats de l’enquête Unis’Vert des étudiants durables [Accessed

on 7 May 2010 through http://www.escem.fr] Duff, M (2004) Give your sponsor more than they expect, Sport Business Journal, Street and Smith, 31

May-‐6 June, 2004 (in Masterman reference) Edicas Website (2010) http://www.edicas.fr [Accessed on 10 May 2010]

ESCEM Website (2010) http://www.escem.fr [Accessed on 3 May 2010]

ESCEM Press Book (2010) ESCEM Media Relations, May Edition Key Note Report (2010) Mobile Phones (UK)

Masterman, Guy (2007) “Sponsorship: for a return on investment” Linacre House: Oxford, UK and

Burlington, MA (USA)

Mintel Report (2006) Sponsorship (UK), October [Accessed on 12 May 2010]

Mintel Report (2010a) Mobile Phones and Networks – Re-‐igniting the Replacement Cycle (UK), January Mintel Report (2010b) Sandwich Shop Retailing (UK), January

Orange Website (2010) http://www.orange.com [Accessed on 6 May 2010]

Renault Website (2010) http://www.renault.com [Accessed on 6 May 2010] Subway Website (2010) http://www.subway.com [Accessed on 6 May 2010]

Technopole Futuroscope Website (2010) http://www.technopole-‐futuroscope.com [Accessed on 10

May 2010]

Ubifrance Website (2010) http://www.ubifrance.fr [Accessed on 6 May 2010]

Appendix A: Inventory

Appendix B: Accenture Proposal

Appendix C: Apple Proposal

Appendix D: Sponsorship Evaluation

General Objectives The Target Audience

What kind of evaluation is proposed?

Who will pay for it?

RENAULT

- Involving the student in

sustainable development - Provide market examples

illustrating the theory aspect

Every student no matter which year they are in

(4,600 students)

- Measuring the press coverage for

the Roadshow event - Measurements: how many student

participate at the Mobility event, how many conferences where held by Renault

- Students satisfaction survey

ORA

NGE

- Support the students

success: Provide scholarships to students / Funds the Welcome ceremony

- Sharing business expertise with students


- Students satisfaction survey - Measuring the press coverage - How many conferences were held

by Orange visiting speakers / how many student assist to the conferences

SUBW

AY

???

- Students satisfaction survey - Measuring the press coverage

ACC

ENTU

RE

- Promote a closer

affiliation between the commercial world and teaching world

- Teaching, education goals

- Sharing business expertise with students

Every student no matter which year they are in;

professionals

- Students satisfaction survey - Measuring the press coverage - How many guest conferences were

organized - How many students participate

APP

LE

- Build a high-‐technology

business center - Offer the possibility to

students to try the new software and computers

- Generate recognition for the school (high profile brand)


- Students satisfaction survey - Ratio computers/students - Measuring the press coverage

UBIFR

ANCE

- Generate a

international network for recruitment

- Improve student recruitment

Students willing to work internationally

- Students satisfaction survey - Measurements: Number of students

who consult the database, How many students apply for an internship, How many companies propose international offers on the database

About 5% of the sponsor’s donation

ESC TOURS-‐POITIERS ANNEXE 1 Tours-‐Poitiers Business School APPENDIX 1

Déclaration à joindre à tous vos travaux individuels et/ou de groupe

Statement to be attached to all your individual and/or group work

Nom(s) et Prénom(s) de(s) l’étudiant(s) / Surname(s) and Christian name(s) of the student(s): -‐ LEVRAT Vanessa……………. -‐ LAPUYADE Isabel……………

-‐ GORLITZ Jolie…………………. -‐ WEBB Stephanie L………………………. -‐ PINA Rosalia……………………. -‐ …………………………………….

Promo / Year : 2009-‐2010……………………………………. Date / Date : 12 Mai 2010……………………………………….

Groupe de scolarité / Administrative group : 3A double diplôme « MSc International Marketing and

Communication Strategy »……………………….

Intitulé du cours / Course title : Sponsorship……………………………….

TITRE DU DOCUMENT REMIS / TITLE OF THE GIVEN DOCUMENT: Sponsorship Report…

"Je reconnais avoir pris connaissance du contenu de l'article 9 du chapitre V du règlement intérieur de l'ESCEM concernant le plagiat.

Je déclare sur l'honneur que mon travail est exempt de tout plagiat et que toutes les citations d’œuvres originales

qui y sont incluses sont signalées par des guillemets, et que leurs sources sont clairement mentionnées."

”I acknowledge having studied the contents of article 9 of chapter V of the ESCEM School Rules regarding plagiarism.

I swear that my work is free from any plagiarism and that all quotations taken from original works are identified by the use of inverted commas, and that their sources are clearly mentioned.”

Signature(s) de(s) l’étudiant(s) / Student(s) signature(s) :

Sponsorship

Business

Transcript of Sponsorship