As the first FIFA World Cup on the African continent, the 2010 tournament in South Africa offers a range of specific opportunities to brands sponsoring the competition. Not only is there the chance for multinational companies to make a significant impression in a largely untapped market place, but brands also have the opportunity to make a long term contribution to the legacy of the tournament within South Africa’s more deprived areas. Official FIFA partners for World Cup 2010 include Castrol, Continental, Coca-Cola, McDonalds, MTN, Budweiser and Satyam.

SKOPOS Market Insight (www.skopos.info) used its South African research panel to gauge the views of people in the country about the role of sponsors at the 2010 World Cup. These findings were presented to figures from the leading brands at November’s Soccerex Football Convention. Rob Horton, head of sport at SKOPOS, spoke to The Sport Briefing’s Dominic Farrell about the group’s research.

The Sport Briefing: Of FIFA’s official World Cup sponsors, which are best placed to maximise the opportunity of World Cup sponsorship?

Rob Horton: “In our study we looked at advertising awareness in South Africa across a number of channels and you can see that there is a clear separation among the brands. You have Coca-Cola, MTN and McDonalds leading the way in terms of advertiser awareness and being seen as appropriate sponsors for the World Cup. Coca-Cola is also leading the way in terms of its perceived brand quality. Lower down the line there is Budweiser and Satyam, who have limited recognition and equity within South Africa. The challenge for those brands is recognising what they can they do to increase awareness and exposure ahead of the World Cup through the use of relevant channels from television, magazines, Internet and mobile.”

TSB: Why is it important for international brands to be sensitive to the local needs of communities in South Africa?

RH: “There is the element of creating a legacy for the people of South Africa after the tournament. It has been noticed that there is a general feeling among South Africans that when the World Cup is finished, brands will then desert them and head on to Brazil without investing in the country’s infrastructure. This is a perception brands must work to overcome. For instance, are they maximising the brand equity by making their products available to the large proportion of the South African public? Are they catering for the tourists alone or are they also focusing on the desires, needs and requirements of the local population?”

TSB: Can sponsors actively assist in creating a positive legacy for the 2010 World Cup?

RH: “Very much so. I was speaking with a leading figure from one of the World Cup brands at the Soccerex Convention. He was saying that they were planning to go away from the main cities to set up fanzones and public viewing areas in South Africa’s townships. Brands have to look at ways that they can get out beyond the big cities such as Johannesburg, Cape Town and Durban and increase their exposure among South Africans. Obviously there is a debate around whether certain brands want to do that. Some will want to appeal to a different target audience, namely tourists at the tournament and those following the competition from Europe, America and Asia. With regards to increasing brand exposure and cementing a lasting legacy in South Africa, it is important to link into South Africa’s infrastructure in advance of the event.”

TSB: How can brands gain meaningful long term benefits in the area after the tournament?

RH: “There are a variety of ways in which companies can utilise their sponsorships. The World Cup is less than 500 days away so it is important to implement a strategy now. Based on conversations with people on the ground at Soccerex, it appeared to me that the advertising for some of these companies was still quite low. Having a look at the spontaneous, un-prompted awareness among South Africans, someone like Nike has a higher recall than some of the official FIFA sponsors. Long-term, companies like Adidas and McDonalds with a high brand loyalty and brand awareness will do well. On the other hand, someone like Budweiser has the challenge of other brands such as Castle Lager being the main lager drink consumed in South Africa. This is where approaching the appropriate audience through the correct channel is fundamental.”

TSB: Your report refers to the humanitarian element of sponsorship. Can you explain this further and why is this important?

RH: “One of the fundamental reasons behind taking the World Cup to the likes of South Africa and Brazil is to benefit the grassroots. Football in South Africa is something that is predominantly played among the working and lower classes, with cricket and rugby traditionally being seen as the domain of the middle and upper classes. So there is a wider question of how these football brands commitments extend to the welfare of South Africa and its people. The perception of Coca-Cola and MTN is that those brands are dedicated to the welfare of South Africa, which is helped by the exposure that people in the country have to them on a daily and weekly basis. There is a growing appreciation of the link between money in top level sport and how this can be beneficial to the grass roots. For example, infrastructure, such as hotels and roads, are improving in South Africa already in advance of the event and giving the prospects of a long-term legacy a genuine chance.”

TSB: Sponsorship with a humanitarian angle has become prominent in football recently, most notably with the partnership between FC Barcelona and Unicef. Why do you think this is the case?

RH: “It comes back to corporate responsibility. This is now key to all verticals across all industries. Anything that promotes a company or a sporting organisation in a positive way will lead to increased loyalty and an affiliation with that brand and club. This is definitely something I can see coming to the fore even more in football and across all sports in the next few years, particularly as a number of commercial sponsors may have less money to invest given the current economic climate.”

TSB: Can you expect multinational brands to gain an understanding of what complex communities such as those in South Africa require from their sponsorships?

RH: “Hopefully some of our research will point them in the right direction. There’s a general consensus that the World Cup will impact positively on the South African economy. People are excited and people will attend, if they can afford it. So simply by default, brands can get among South Africans and this is the best way to garner an effective understanding.”

Click here to view the brand analysis that SKOPOS presented to the Soccerex Football Convention. For further information on the research, contact Rob Horton on +44 (0) 207 953 8359 or rob.horton@skopos.info.