Sponsorship leverage and its effects on brand image - Theory and Practice in Hospitality and Tourism Research - page 147

Government of the Republic entered into an agree-
ment with the German Volkswagen Group and
began to operate on 16 April 1991 under the name
Škoda, automobilová a.s. (Škoda Auto, 2011). By
the year 2000, the Škoda Auto had been owned 100
percent by Volkswagen Group and after 24 years
of absence, in 2007, the Volkswagen Group has
announced the return of Škoda Auto to Australia
(Fallah, 2007). The models which were re-intro-
duced to Australian were Škoda Fabia and Škoda
Roomster (Fallah, 2007; Škoda Auto, 2011).

consumers with the brand (Woodside & Summers,
2009). As such, when consumers are emotionally
involved with a sponsored property and identify
with it, it may also lead to a strong sense of attach-
ment with the sponsor (Sirgy, Lee, Johar & Tid-
well, 2008).

6.2 Association and co-visibility
By actively involving the brand with other types of
activities held by different co-sponsors, they could
impose the brand on different types of customers.
The visibility of the sponsor during the event is
conducive of a “halo” effect, where in some com-
petitive environment; this could also be considered
as an ambush marketing (Quester & Thompson,
2001). Although some types of ambush market-
ing is considered against the laws, more elaborated
types of ambush marketing might not as long as:
(1) they do not contravene any existing law; or (2)
enforcement is unlikely, given uncertainty regard-
ing the application of the law, the timing of the
event, and/or the costs of litigation (Chan & Hud-
son, 2007). For example, as many major sponsors
and partners of the Tour Down Under or Mel-
bourne UCI Road World Championships comes
from different kind of businesses such as hospi-
tality, state government, product manufacturers,
clubs to telecommunication companies, different
kind of customers would be available to the spon-
sor. Example of such activities is when a co-spon-
sor organizes an event; Škoda could send a group
of people driving their cars to impose a perspective
that most of the event attendees are actually driv-
ing their brand.

5.1 Events sponsored by Škoda in Australia
Škoda had done tremendously in sponsoring major
sporting events in Australia. Two major sporting
events sponsored by the brand are Tour Down
Under and Melbourne UCI Road World Champi-
onships as major suppliers of support vehicles and
official car partner (Škoda Auto, 2011).

6 DISCUSSION

There are ranges of activities that could be used
to leverage the sponsorship investment. This paper
will discuss on five elements namely Sponsorship
Leverage Packaging (SLP), association and vis-
ibility with other sponsors, TV sponsorship, emo-
tional connections and Cause-Related Marketing
(CRM). Stokes (2010) indicated that a sponsor
may use many media to meet the objectives and
reach out to its audience. These are touch-points,
known also as “activation” or “maximization”
of sponsorship investment. In other words, these
activities are sponsorship leveraging.

6.3 TV sponsorship
The strength of a sponsorship to persuade its tar-
get audience is embedded in “ability to convey the
commercial message and influence the consumer in
a more voluntary fashion than the standard adver-
tising sell” (Smolianov & Shilbury, 2005). As stated
by Pegg and Patterson (2010), television audiences
today are more touchable through “sponsored by”
advertising rather than television ads that inter-
rupts in the middle of a program. By televising
the event, Škoda Australia could be more in touch
not only with the audience attending the event, but
also those who are watching it on television. It has
been proven that airing an event could generate
more media exposure and media value, integrates
sponsorship messages more closely with audiences
and make them stand out more, for example by
switching electronic board messages during tel-
evised sports events to ensure brands are visible
to the right audience at the right time (Comperior
Research, 2006).

6.1 Sponsorship Leveraged Packaging (SLP)
SLP involves depicting the sponsored property's
image and logos on the sponsoring brand's pack-
aging (Woodside & Summers, 2008). In this case,
instead of displaying Škoda's logo on the market-
ing items for the event, the event's logo is rather
displayed on Škoda's products packaging (e.g.,
Škoda service centre, Škoda car pamphlets and
brochures, Škoda cars). It is to associate the event
with the car brand, a situation where a customer
would be reminded of the event every time they
see a Škoda car, passing by Škoda service centre
or stumble upon Škoda's promotional items, hence
the next time they attend any cycling events for
example, they would associate the events with the
brand, although the events are not actually spon-
sored by Škoda. The “association” aspect is highly
important in leveraging sponsorship because any
association which a sponsor established with the
events could also be established in memory of the