Sponsorship Strategies in China

By Timothy Anderson, timothyanderson2005@gmail.com

The telephone rings. It’s another unique once in a lifetime sponsorship opportunity being pitched.

“China is awash with sponsorship possibilities at the moment”, according to Chris Humphrey of Virgin Atlantic, one of the expert panellists tackling the subject at the November 24 BritCham Business Forum. “Perhaps too much from a sponsor’s point of view.”

Sponsors in China, as anywhere, need to get the most out of any sponsorship deal - value for money is of paramount importance. Cost is one measure of this, but not the only factor. Cooperation is key, which requires a two-way flow of information, a theme echoed by each of the panel members over the course of the discussion.

“We see sponsorships as partnerships”, said Jeff Streeter of the British council, “by working as a project team and brainstorming the idea with the sponsor the process changes dramatically. It’s a win/win situation since we learn more about the target audience, how to approach publicity, logo placement and we challenge each other to develop the idea more effectively.”

Take the case of sports sponsorships, of which China offers many possibilities. Sporting events tend to evoke powerful emotions beyond those experienced in everyday life, noted Mark Thomas of S2M Group & Vroom Motor Sports Marketing. If a sponsor can link that passion to their brand, the result can be behaviour changing. To do this requires a clear vision and an integrated approach where the sponsor works closely with the event organisers to maximise the match between their brand values and the event, the fit with their marketing plan and the exposure it offers to their target market. If sponsors are unclear of their objectives from the outset, they will likely leave the experience uncertain just how they benefited from it - and dissatisfied as a result.

Effectively exploiting sponsorship arrangements often requires as much or more money than the cost of sponsorship itself. Companies need bear this in mind and plan for this as part of their involvement, David King of Publicis Dialogue pointed out as he chaired the evening’s discussion.

What is important for those seeking sponsors in China? Getting to the decision maker is key, which requires doing a bit of homework. The focus should be on finding potential sponsors who understand the relevance of the opportunity to their business, then discussing potential sponsorship strategies together. Top-down buy-in starting from the CEO’s office and an active engagement from the sponsor’s marketing and PR departments are all crucial elements.

On the other hand, knocking on a lot of doors with a set proposal and hoping somebody will come on board with a large cheque is not a very sophisticated approach and does not tend to result in long-term collaborations.

Sound Strategies for Seekers of Sponsors…

Virgin Atlantic’s Chris Humphrey offers a few tips when approaching potential sponsors:

• Leave plenty of lead-in time and make realistic requests.
• Be prepared to accept non-cash donations.
• Offer flexible, negotiable proposals for cooperation.
• Explain how the sponsorship can be tailored to fit the potential sponsor’s marketing plans and brand values.
• Stress the opportunity for relevant and affordable mass, long-term exposure in the Chinese market.
• Don’t bury the price, skimp on the details or expect charity – value for money is crucial.
• Emphasise the scope of possibilities to mutually benefit from synergies and complementarities arising from multiple sponsors working together.
• Ensure the proposal reaches the key decision-maker.

Originally published in ‘The Beat’, the monthly magazine of The British Chamber of Commerce in Shanghai.