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POST GRADUATE PROGRAMME IN MANAGEMENT

Sports Marketing & Management

Bank of America Sports Sponsorship Case Analysis

Group No. – 11
Group Members:

Adya Prabha (2015IPM006)


Advitya (2015IPM005)
Mayuresh Chapate (2018PGP103)
Princy Parul (2018PGP278)
Sambit Halder (2018PGP321)
Sanchit Ameria (2015IPM094)
Shashwata Pal (2018PGP346)
1. What would be your decision in each of the four cases?

Bank of America was focusing on achieving business goals through sponsorship. Their objective was
(1) To get the maximum return on investment, (2) Growth of the 3 lines of business, (3) Proper utilization
of the sponsorship, (4) To keep return on objective on the same level, (5) To gain trust of the newly
acquired Bank’s local community. Let’s evaluate each option:

 NASCAR Sponsorship:

NASCAR model fits into the Bednar’s ROI model as it satisfies the Direct Business Attribution and
Value in Kind attribution as Bank of America will be the exclusive partner for banking and related
financial services for NASCAR.
It will get no. 2 TV Viewership, 75 million fan base and provide corporate involvement through tickets,
visa-branded credit, debit cards, ATM Card, processing, servicing, payroll services and treasury,
consumer and commercial lending, merchant and security brokerage services, mutual fund distribution,
community development distribution services. Marketing assets also gets covered through the visibility
in 36 states and 110 tracks. Return of Objective also gets taken care of through mass-market
promotions, at-track branding, B2B and cross promotional opportunities with NASCAR’s sponsor
partners. NASCAR’s geographic expansion allows BoA more national presence and global reach.
Hence this deal satisfies all the 5 objectives and BoA should go ahead with this.

 Renew US Olympic Team Sponsorship:

Being the official sponsor of the US Olympic team ensured global media coverage and attention of
spectators during the games. Association with one of the best performing teams on such a prestigious
platform would help them build repute in Europe and Asia- where they are not well known. The IOC’s
Olympic Partners programme gave BoA the right to use the Olympic rings in their marketing and
branding. This would help tap into BoA’s main market back in the US.

The three ROI criteria for sports sponsorship would also be fulfilled. The value in kind return from
Olympic tickets, passes, appearances by and meetings with coaches and players would be high given
that the tickets are very expensive and Olympians are much sought-after. The marketing asset return
would also be very high because the visibility on the scoreboards, named section of the arenas would
go on to improve brand recall and build association between the Olympics and BoA. Direct business
attribution would improve when BoA would be the natural first choice for managing the wealth of the
successful Olympic athletes or financing new stadia. 57% of avid Olympic fans were favourable to BoA.
Considerable business could be generated out of this fan base for the Consumer and Small Banking
division. Continued association between the US Olympic team and BoA would help tap further into the
fan base.

Given that this can be achieved by spending 8 million USD- 10% of the annual sports sponsorship
budget, the US Olympic team sponsorship should be renewed.

 Renew NFL Dallas Cowboys Sponsorship:

The Dallas cowboy’s sponsorship deals fits their sponsorship requirements strategically as BOA under
Ray Bednar are going to follow the ‘concentrate to dominate’ strategy. This means that they want a
narrow set of premier platforms with very deep penetration in them. NFL is a largely American entity
which favours their current revenue mix.
BOA can continue to work its presence and strengthen their band of offerings and broaden their
market reach within Texas to work around the fragmented market that is Texas. Moreover, BOA has
figured out opportunities to garner returns across their three main lines of business, be it through
consumer banking, commercial financing, personal wealth banking etc.
The Dallas Cowboy sponsorship can open up doors to a big ticket opportunity like the official bank of
NFL, like they have done for baseball.

 Exit Colonial Golf Tournament:

BOA has to exit its sponsorship role in the namesake Colonial Golf Tournament in a manner that befits
their stature and does not jeopardize any of its existing relationships with their clients. BOA had its
concerns with the dissipation of costs incurred for raising brand awareness as it already seemed to
have a strong brand awareness in the Texas region.
The added benefit they could get was if they nurtured their banking relationships which they evaluated
to arise from B2B clients, via the entertainment route. BOA then must look into delving deeper into a
more full-fledged golf-tainment offerings, forfeiting their title sponsor rights. They can design another
exclusive members program for selected golf courses under the PGA ambit. They can design the client
hospitality service in a manner that it favours or gives a fillip to their Global Wealth and Investment
Management clients, by hosting them at all the major PGA hotspots.

2. Do you like Bednar's approach (ROO and ROI)? Please critique.

Bank of America is already considered as a strong brand with high brand awareness. So, it must
invest strategically in sponsorship to boost its business objectives. Bednar rightly pointed out that it
does not need to be in 30 sports, rather it must go deep into premier associations. BoA is now looking
to strengthen its 3 lines of business through the sponsorships. The ROO and ROI model perfectly
depict the business objectives of BoA by giving additional revenue, new customers, differentiation,
positive association, favourability etc. The focused approach of these two models will eliminate bad
expense behind sponsorship. Finally the purchase of LaSalle Bank along with its existing sponsorships
has added to the sponsorship portfolio of BoA. Therefore, BoA must be using ROO and ROI model for
sponsorship decision making.

3. Is the ROI approach practical? How would you calculate this in practice?

ROI approach is a good indicator of potential gain but fails to accurately measure the value. It mainly
fails to correctly measure the value of intangible assets. Results also vary highly when there are too
many external influencers and future uncertainties. But ROI approach can be used to get a fair amount
of idea whether a deal is worthy or not.

I would decide various KPIs and parameters and understand all the variables to map with my
objectives. Then I’ll calculate the value of brand impressions, no. of new leads generated, onsite and
social media mentions, PR releases, website visits, click-through rate, social media interaction, TV and
other broadcast coverage, sponsorship terms for minimum returns etc. Finally I’ll compare with the
sponsorship fees and costs and decide whether ROI is viable or not.

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