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Using sports marketing to engage with consumers

Curriculum Topics
Marketing
Promotion
Above-the-line and below-
the-line promotion
Sponsorship

Introduction
Todays consumers have higher expectations than ever before.
Dramatic improvements in media, communication and transport
have made the worlds economy more connected. Products
developed in one country have become increasingly attractive in
other parts of the world. However, entering markets in other parts
of the world is not an easy task. Entrants face many different
challenges as they try to develop their brand profile. This is
especially evident in mature markets like the UK car market. This
market has a number of long established brands. The awareness
and brand loyalty that exists for established brands form a barrier
to entry for new organisations. This case study illustrates how
Kia, a South Korean motor company, has used sports marketing
to develop its brand identity in the European motor market.
To support this growth plan, Kia has to develop its brand identity.
In the past Kia has competed mainly on price, using a competitive
pricing strategy. The challenge for Kia has been to increase
awareness of its brand within European markets. Alongside this it
has created positive perceptions of its products through high
profile sponsorship deals. It wants consumers to view the brand
as a manufacturer of cars of great quality and design. To do this it
has harnessed the power of sports marketing to influence
consumers perceptions of its products.
Marketing
The Chartered Institute of Marketing defines marketing as:
The management process responsible for identifying,
anticipating and satisfying customer requirements profitably.

In simple terms, it is the process where customer needs are identified

The Kia Motors Corporation, based in South Korea, has
and serviced through the products and services that satisfy them.
12 manufacturing and assembly plants and subsidiaries in
165 countries around the world. Globally the Hyundai Kia Group is
now the fourth largest car company in the world. Kia Motors UK has
more than 166 dealerships. It also has plans to grow the network to
support the increasing demand. Kia is a relatively new entrant to the
UK car market. However, it has become more well known in recent
years. Kia does not have the same level of brand heritage in the UK
as it does elsewhere in the world. Kia aims to overcome this through
its massive ambition and plans for growth in the European market.

Brand profile: Ingredients, elements and Barrier to entry: Obstacles that may Sports marketing: Linking the activities Brand identity: The values or
GLOSSARY

characteristics that make up a brand at a
particular moment in time.
Mature markets: A market in which the
prospects of future growth have
diminished.
prevent a competitor entering or of an organisation with sports events that personality of a brand that are expressed
contesting a market e.g. licensing reach massive audiences in order to through its name, design or logo.
agreements or dominant brands. create and develop positive associations. Subsidiaries: Firms that are owned by
another business.

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This starts with a process of planning at the very top of an
organisation. Senior managers determine the long term aims of
the organisation. An aim for Kia is to become a major player in the
UK car market. Planning is then followed by a process of research
through which customer needs are identified. A business then has
to establish processes that enable it to satisfy these needs. Kia
wants to bring a fresh, fun and dynamic approach to the UK car
market. Its marketing strategy supports its objectives with a
focus on increasing brand awareness. It aims to emphasise the
great design and quality of Kias products, while still offering
competitive prices.
Marketing Strategy
Marketing Objectives
Brand Awareness
The marketing mix comprises of the 4Ps and is a useful way of
summarising the marketing strategy of an organisation. Every
organisation will have a unique marketing mix. Organisations need
to create a unique mix of:
the right product
sold at the right price
in the right place
using the most suitable promotion.
For example, the marketing mix for Kia is based around:
product good design and quality alongside a high level of
customer service, Kias unique selling point is its 7 years
warranty
price competitive prices provide an advantage over
competitors
place with 166 dealerships there is a large and expanding
number of outlets
promotion this includes a new sponsorship in cricket and
long term partnerships in football and tennis.
Promotion
Promotion is about communicating with customers and potential
customers. It has a number of purposes, for example:
to increase awareness such as the range of vehicles Kia offers
raise brand recognition this is important in an industry with
over 30 major players in the UK
to increase demand thereby helping to meet the objective of
growth in the UK
to improve brand perception promotion communicates the
fun approach of the Kia brand
to highlight the superiority of the product e.g. the high quality
and great design of Kia cars.
The acronym AIDA is useful when developing a promotional mix.
Promotion activities help to:

A capture a customers attention

stimulate their interest in a product,

I brand or organisation

D create a desire for the product

encourage action, which occurs when

A they purchase the product.

To reach its promotional objectives, Kia uses conventional

techniques alongside extensive use of sports marketing such as
sponsorship. Sponsorship involves a business paying to be
associated with another organisation, event or even television
programme. Sports marketing allows Kia to reach a large
audience and create positive associations. Sports sponsorship
enables Kia to be linked with superiority in another field.

Marketing strategy: Budgeted plan(s) to Marketing mix: The combination of Unique selling point: Product with a Sponsorship: Where a firm funds a
GLOSSARY

meet customer needs through product, product, price, promotion and feature not offered by competitors. It sporting community or cultural event in
price, promotion and distribution. distribution (place) used to generate gives it distinctive appeal in the market return for exposure of their name or
Brand awareness: Degree of customer profitable sales often called the 4Ps. place. brand.
recognition for a brand.

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For example, Kia was involved with the FIFA World Cup in Korea
and Japan in 2002 through sponsorship. Since then it has
become partners of the World Cup until 2022. This enables Kia to
link its activities with well-attended and well publicised football
matches that are enjoyed by large groups of people.
Sponsorship also helps to develop good public relations with
European audiences. Public relations helps to build positive
perceptions of the brand. This enables Kia to engage with
potential customers who then view the organisation in a positive
way. This is particularly important in markets where the brand
identity lacks awareness and profile, such as when a new brand
enters a marketplace. By associating with exciting and interesting
sporting events Kia shows that it is also exciting and interesting.
Kia proves it is a major player in the UK market through its
sponsorship links with such high profile sporting events.
Kias sponsorships include:
Cricket. A new 5 year partnership with Surrey County Cricket
Club including extensive branding, shirt sponsorship and
naming rights for the historic Kia Oval cricket ground.
Football. Kia is the official sponsor for both the FIFA World Cup
finals and UEFA Championships. These long term partnerships
(through to 2022) include extensive branding and promotional
opportunities, also extends to other associated tournaments
(Women's World Cup, Under 21 Championships, etc). Kia is
also shirt sponsor for a number of major clubs in Europe and
around the world, including Athletico Madrid in Spain and
Bordeaux in France.
Tennis. Kia sponsored the Australian Open for 10 years.
Rafael Nadal is Kia's global ambassador.
You can find out more details about Kias sponsorships at
www.kia.co.uk - see About Kia and Sports Sponsorships.
Above-the-line and
below-the-line promotion
There are a number of approaches to promotion that are open to
organisations. Above-the-line promotions use mass media
methods. This type of promotion focuses on advertising to a large
audience. It includes print, online media, television and cinema
advertising.
As the fourth largest car company in the world, Kia is a big brand.
It offers a range of products targeted at different market
segments. Above-the-line activities include adverts in the press.
They also produce online banner advertisements, place
advertisements on billboards and use their website to meet the
needs of their consumers. Recent TV advertising campaigns have
included the small yet mighty cat for the new Picanto and the
future proof Kia cee'd, emphasising the 7 year warranty. TV
advertising has also been used to relay the message that Kia is
an official FIFA partner.
Making a message memorable to a large audience is not always
easy. It is difficult to tailor a promotion to a specific group of
consumers through above-the-line promotions. This is because
it is viewed by a mass audience with different tastes and needs.
Above-the-line promotion is also very expensive.
Below-the-line methods are very specific, memorable activities
focused on targeted groups of consumers. They are under the
control of the organisation. Kia uses these techniques to target
clearly defined consumer groups rather than a mass audience like
its above-the-line activity. The purpose of these activities has been
to develop the brand by creating awareness and building a brand
profile. Below-the-line methods include:
sponsorship
sales promotions
public relations
personal selling
direct marketing.

Sponsorships have helped to raise Kias profile amongst key

target markets. Kia has also developed its relationships with
consumers through public relations. Traditional press releases
work alongside newer forms of marketing. For example, Kia uses
digital and social media as an integral part of its below-the-line
activity. This helps to create relationships with customers online.
GLOSSARY

Public relations: Organisational
communications with external
stakeholder groups (e.g. customers, the
community, the media) and also with the
general public.
Market segments: Recognisable
consumer groups of people with similar
needs and characteristics.
Banner advertisements: An
advertisement that is embedded into a
web page.
Above-the-line: Promotion through
advertising: TV, radio, internet, press etc.
Below-the-line: Indirect sales
promotion other than advertising e.g.
price promotions and point-of-sales
displays.

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These channels include blogs and social networking sites such as
Facebook. Kia also has its own YouTube channel to emphasise its
brand presence amongst target consumers. This enables them to
develop eCRM, allowing Kia to collect data from customers and
use it in a variety of ways for interaction. It also helps to create the
basis for viral marketing. This is when messages are so widely
received that they are passed on either electronically or by word of
mouth to other customers.
Kia also supports a variety of environmental issues, shown
through below-the-line promotions. For example, Kia works in
partnership with Trees for Cities, an independent charity which
aims to create social cohesion through inspiring people to plant
and love trees. Environmental issues are high on public agenda.
Partnerships like these are an important way for Kia to
demonstrate its commitment to supporting public concerns.
Sponsorship
Sponsorship involves positioning and matching brands together. It
develops a relationship that is both comfortable and positive for
both businesses. Kias partnership with Surrey County Cricket
Club was its first venture into cricket. Cricket is becoming an
increasingly popular sport.
GLOSSARY
Blogs: Personal online journal that is eCRM: Electronic customer relationship
frequently updated through discussion. management.
72 Kia | Using sports marketing to engage with consumers
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The T20 form of the game has helped the sport appeal to a larger
audience. Sponsorship provides Kia with a presence beyond which
many expect. It also provides Kia with a very high profile and famous
site in the heart of London, The Kia Oval. The relationship has also
involved branding, on-line marketing and shirt sponsorship.
Surrey County Cricket Clubs partnership with Kia will last for at least
5 years, from 2011 until 2015. This will allow Kia to reach a new
audience. It will also help Kia to be viewed as a permanent player
within the UK car market. This helps exhibit big brand behaviour. Kia
is therefore demonstrating that it is a main player in the car market
through high profile sponsorship deals. This reinforces the size and
scale of the Kia brand.
The Times 100 and Wilson and Wilson Publishing Ltd 2011. Whilst every effort has been made to ensure accuracy of information, neither the publisher nor the client can be held responsible for errors of omission or commission.
Sponsorship is not simply an advertising message that engages with
an audience at a particular time. It creates deeper engagement with
Kias potential customers. It also provides a platform for other
exciting events to take place. For example, sponsorship of T20
games at the Kia Oval enables a variety of other activities to take
place such as the Kia Catch and promoting the Stick Cricket Game.
With Kia Catch, any crowd member successfully catching a six can
claim a 100 prize, courtesy of Kia. Stick Cricket is an online batting
game which is available through both the Surrey County Cricket
Club and Kia websites.
Conclusion
It is very difficult for a large brand, no matter how good the products
are, to enter a mature market in which existing brands are popular.
This is a major challenge for Kia in the UK car market. Kia has
created a variety of partnerships through different forms of
sponsorship. These sponsorship deals help Kia raise its brand profile
and create positive associations with key sporting events and
athletes. Associating the brand with high profile sporting events
demonstrates the fresh, fun and dynamic qualities of the brand. Kia
has entered into a series of long term investments that will allow it to
engage with consumers for the duration of the sponsorship deals.
1. Describe what is meant by the marketing mix.
QUESTIONS
2. Explain the purpose of promotion within the marketing mix.
3. Analyse why organisations might choose below-the-line
promotions in favour of above-the-line promotions.
4. Evaluate how sponsorships differ from other forms of
promotion.
Viral marketing: The passing on of
messages either by word of mouth or
electronically from customers through to
other customers.
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Using promotion to position a brand

Curriculum Topics
Marketing process
Above-the-line promotion
Below-the-line promotion
Viral marketing

Introduction To deliver these values to the consumer, Hi-Tec offers high-quality

In order to gain market share and attract new customers, a
business needs to be distinctive in the marketplace. It needs
customers to think about its products in a particular way. This
helps them distinguish its products from those of competitors.
A business seeks to combine all the positive characteristics and
attributes of its products in a single brand image and message.
This gives the brand a unique place in the minds of consumers
and is known as positioning a brand.
shoes at a price that represents good value for money. The same
technologies that are used to produce sports shoes are used to
create lightweight and comfortable outdoor footwear.
Over the last two years Hi-Tec has undertaken a market
research programme. The company wanted to know how best
to encourage consumers to engage emotionally with Hi-Tec
products. It wanted its brand to be recognised both for sports
and also for an outdoor lifestyle.

In the past, Hi-Tec shoes were only associated with sport.
However, today its shoes are promoted as an outdoor brand
associated with a leisure lifestyle. More than 500 styles are
available throughout the world. Hi-Tec develops attractive and
comfortable shoes which are lightweight and high quality. They are
sold in the mid-price market segment. Founded in 1974, Hi-Tec
Sports is a privately owned British company. Its products are sold
in over 100 countries worldwide. It is the global number two
outdoor brand in terms of sales value.
The brand theme behind the new market position is that
Hi-Tec products are inspired by life. For example, in targeting
holidaymakers with high technology cushioned sandals, the
emphasis is on having happy holiday feet. Trail shoes for runners
promote the ethos that feet feel free, with runners being
encouraged to think about where next?
Proud

Hi-Tec shoes have always had a high technology focus. However,

Hi-Tec
the brands unique selling proposition (USP) now also Honest
Hungry core brand
emphasises the companys four core values: values
proud, as Hi-Tec delivers more than the competition
honest, as products deliver on their promises Fun
fun, as it works creatively to provide positive solutions
hungry, as there is always a desire to improve products.
GLOSSARY

Positioning: Consumers' perception of Market segment: A recognisable Unique selling proposition (USP): Market research: The systematic
the place occupied by a company or consumer group consisting of people Product with a feature not offered by process of collecting and analysing data
brand within a market, relative to with similar needs and characteristics. competitors that gives it distinctive about customers and their relationship
competitors. appeal in the marketplace. with products and brands.

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This case study illustrates how Hi-Tec Sports developed a new
approach to promoting its brand positioning and engaging with
customers through a viral marketing campaign.
The marketing process
Customers are central to the marketing process. Marketing starts by
identifying the needs of customers. A business then seeks to meet
those needs by making the right products available when customers
want to purchase and at prices they are prepared to pay.
Marketing strategies are directly related to the overall business
strategy. Hi-Tecs marketing strategy aims to:
introduce a new brand category to the market
make people excited about the technology in its footwear
gain maximum exposure for Hi-Tec with measurable numbers
create a sense of cool about the brand.
Hi-Tecs key marketing objective is to reposition its brand to open up
new markets. This in turn will increase market share and revenues.
At the heart of the marketing process is the marketing mix. This is
commonly known as the four Ps - product, price, place and
promotion. Key factors in the marketing mix for Hi-Tec shoes include:
product innovative footwear that provides high performance
price sold at value for money prices
place sold online or through premium retailers
promotion a mix of targeted promotional channels and
methods to achieve market penetration and increased sales.
Hi-Tec adapts its marketing mix for each of its main market
segments. Examples of its approach in specific markets include:
The junior market this is a strong sector for Hi-Tec and it
offers hard-wearing shoes on the high street at prices to attract
parent purchasers.
GLOSSARY
Market penetration: The depth of Niche: A relatively small segment of a
sales of a product in a particular market. market with distinct consumer
characteristics.
54 Hi-Tec | Using promotion to position a brand
Outdoor sports such as trail running it offers high performance
products with water-repellent qualities using Hi-Tecs ion-maskTM
technology, priced to compete in the market.
Specialist sports for niche markets, such as golf shoes. The
same high performance product is promoted through the use
of sports ambassadors like Ian Woosnam. By using sports
champions in this way, the brand is linked with achievement.
The AIDA model explains the stages consumers go through before
making a purchase.
A Customers are made aware of the products.
I Awareness from the promotions stimulates their interest.
D They develop a desire for the products.
A Customers then take action by making a purchase.
Hi-Tec uses an approach that seeks to take the action stage
further. It wants customers to remain loyal to the brand after they
have used its products. Many loyal customers then become
advocates. This means that they recommend the brand to others.
If a business can get its customers to promote products, it will
have achieved one of the ultimate goals of marketing. Hi-Tec uses
many different methods of marketing communications and above-
the-line and below-the-line promotion to achieve this goal.
Advocacy
Loyalty
Experience
Commitment
Consideration
Awareness
Above-the-line promotion
Above-the-line promotion is based on advertising in mass media,
such as newspapers, television, radio, cinema and the internet.
This type of promotion reaches a wide audience, but it can be
difficult to measure and assess its impact. It can be used both to
inform the audience and raise awareness of a product or service,
as well as to persuade people to buy.
Different media outlets can be used to target audiences in specific
market segments. For example, an advertisement in The Times
newspaper or one shown on MTV will reach very different
audiences. The readership of The Times tends to be mature and
relatively better-off, while MTV attracts a much younger audience.
Above-the-line: Promotion through Below-the-line: Sales promotion using
advertising on television, radio and the methods other than advertising, such as
internet, and in the press, etc. price promotions and point-of-sales
displays.
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It uses character branding to promote its products. This means

Hi-Tecs advertising emphasises the USP for its brand and its core
values. The imagery chosen to represent the brand values
focuses on people in action - running, hiking, walking - in order to
capture the fun element. Hi-Tecs above-the-line activities include:
television advertisements for raising awareness with the wider
public, for example in key TV advertising slots during peak
programmes, such as sports, in order to attract relevant
viewers
press advertisements in trade or consumer publications. Hi-Tec
deals both with retailers and directly with consumers through
its online shop
banner advertising on selected websites - this form of paid-for
advertising allows the business to measure responses through
click-through rates
billboards at locations relevant to the chosen audience, for
example, a sports track.
Advertising can be costly. It is therefore important for Hi-Tec to
analyse the cost-effectiveness of each activity. This can be done in
several ways. For example, it might monitor the numbers of visitors
to a website or the numbers responding to a sales promotion. It will
track the increase in sales following a promotional campaign.
Below-the-line promotion
Below-the-line promotion aims to reach consumers more directly
through forms of communication other than traditional advertising
channels. For example, Hi-Tec has targeted consumers through
collaborations with several organisations. It has set up
partnerships with the UKs National Trust (to promote a new
walking boot) as well as with the Caravanning Club (an audience
who might be interested in instantly comfortable and lightweight
outdoor footwear).
that it appoints ambassadors such as Alexandre Poussin, the
world explorer, and Martin Dreyer, from the world of extreme
sports, to endorse its products. Hi-Tec also uses sponsorship to
promote its brand. For example, it sponsors Amr Shabana, one of
the worlds leading squash players.
The company also uses other below-the-line activities:
Direct mail Hi-Tec emails customers, linking the message to
the e-commerce part of Hi-Tecs website. This means people
can go directly to the Hi-Tec online shop to buy goods.
Exhibitions Hi-Tec promotes at trade and consumer shows.
These allow Hi-Tec to give retailers and consumers the
opportunity to see the products first-hand.
Sales promotions H-Tec offers both retailers and consumers
a range of sales incentives, including discounts, to encourage
them to stock or buy its products.
Branding Hi-Tec supplies retailers with point-of-sale
materials, such as packaging and store displays and provides
training for retail staff within stores.
Promotional materials Hi-Tecs extranet website shares
material such as brand photography and press releases so
retailers can use this material in their own promotions. This
raises the profile of the Hi-Tec brand and ensures that it is
represented consistently.
Hi-Tec also uses PR (Public Relations) to create a positive public
perception for its products. This includes issuing press releases,
writing blogs and the use of social networking sites like Facebook.
A more recent way to take advertising to a different level is
through viral marketing. This is a self-generating activity in which
people pass on information to other consumers through the
internet. It can spread a marketing campaign more widely and
more quickly than traditional advertising. This is an example of
consumers becoming advocates.
Liquid Mountaineering
a viral marketing campaign
A key part of Hi-Tecs brand positioning has been the development
of a viral marketing campaign called Liquid Mountaineering. This
campaign was inspired by the water-repellent qualities of Hi-Tec
shoes. It was devised to reflect Hi-Tecs inspired by life brand
proposition and the brand repositioning strategy. It aims to create
a sense of adventure and push back physical boundaries. At the
centre of the campaign is a video commissioned by Hi-Tec which
went live on YouTube in May 2010. This video documentary
shows three men apparently running on water. They achieve this
miraculous feat thanks to their water-repellent shoes.
GLOSSARY

Sponsorship: Funding of a person or
event by an organisation in return for
exposure of its name or brand.
Point of sale materials: Sales
promotion material used where the sale
actually takes place, such as displays in
stores and by tills.
Extranet: A private (restricted)
computer network that shares
information with an organisations
suppliers and customers.
Viral marketing: The process of getting
wide circulation of a message through
word of mouth. These campaigns are
usually (though not exclusively) hosted
on the internet.

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The Liquid Mountaineering campaign does not follow the usual
forms of advertising and promotion. Hi-Tec wanted to emphasise
the spirit of fun in its brand. The video is therefore a piece of
pure entertainment.
Although the video is based around Hi-Tecs hydrophobic
footwear, it does not mention the brand directly.
The documentary style and semi-scientific approach to
running on water aims to get consumers talking and thinking
about the brand differently.
To add realism, one of the video participants set up a blog the
previous year (www.liquidmountaineering.blogspot.com). This
back story created excitement in the build-up to the event.
In launching the campaign, Hi-Tec recognised the massive power
of the internet. It chose to host the video on YouTube. This was
because this website has a good fit with both the attitude of the
video (youthful and fun) and the target audience (prospective
consumers). The fact that there was no mention of the Hi-Tec
brand meant it was not perceived as a sales message.
It caught the imagination of millions of people in an incredibly
short space of time as viewers emailed or tweeted their friends
about the video. There have been press articles and interviews on
TV shows. Some people wrote blogs about the video; others even
set up groups to try the running on water sport for themselves.
The exchange of messages on sites like Facebook and Twitter
gave extra impetus to the swell of viewing numbers.
Having gathered impressive viewing figures in just two weeks,
Hi-Tec was able to extend interest in the promotion with a new set
of promotional activities:
It put out a press release in which it explained the hoax and
claimed ownership of the video.
Hi-Tec also hosted a video on its website showing how the
Liquid Mountaineering video was made.
The symbol Hi-Tec uses for its ion-maskTM technology shows a
man running on water, linking the video messages with the real
technology.
The Hi-Tec website links directly to an online shop for the shoes.
56 Hi-Tec | Using promotion to position a brand
www.hi-tec.com
To date (November 2010), the video has attracted more than
7.5 million viewers. It has been heavily featured in the press,
including The Sun, Daily Star, and The Guardian, as well as on
television channels around the world, including Rude Tube. This
has opened up the Hi-Tec brand to a worldwide audience. Hi-Tec
has also received very positive feedback on the campaign from
trade organisations. This has boosted awareness and reinforced
the fun element of the Hi-Tec brand.
As a marketing process, the video has been extremely cost-
effective. Hi-Tec has received a good return on the investment it
put into making the video. The company estimates that the Liquid
Mountaineering viral marketing campaign has given a return worth
The Times 100 and Wilson and Wilson Publishing Ltd 2011. Whilst every effort has been made to ensure accuracy of information, neither the publisher nor the client can be held responsible for errors of omission or commission.
10 times the initial investment. The average return on marketing
investment is usually only around four times. This indicates how
effective Liquid Mountaineering has been in helping to position the
Hi-Tec brand with prospective consumers. The ongoing marketing
campaign for shoes that love water will encourage consumers to
consider buying Hi-Tec products. Watch the video for yourself by
typing Liquid Mountaineering into Google or YouTube.
Conclusion
One of the most important things in managing a brand is to be
able to position it positively relative to competitors in the minds of
consumers in target markets. The brand needs to communicate
the key values of the products and the business.
Hi-Tecs four key brand elements are proud, honest, fun and
hungry. These elements have been developed to be closely
associated with its products. Hi-Tec aims to emphasise these
factors within its unique selling proposition.
The Liquid Mountaineering video demonstrates the power of viral
marketing. It built a huge following. It got people talking - was it
fake or not? It opened the brand to a new global audience.
This campaign has helped Hi-Tec to change consumer
perceptions of its brand and reach a worldwide audience. It has
also provided Hi-Tec with the potential to build on the campaign
through other more traditional promotional activities.
1. What is meant by a brand?
2. Explain what is meant by a unique selling proposition.
QUESTIONS
3. To what extent do you think above-the-line promotion
is the most effective method for Hi-Tec?
4. Evaluate the benefits the Liquid Mountaineering viral
marketing campaign has brought to Hi-Tec. Suggest
one way in which the company could either build on
this or link to other promotional activities.
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