EPM5600 | Management | A Case Study Of Game Clothing In Australia
Scenario
You are working for ProCon Services Australia, a Project Management consultancy. Your company has been engaged by Vella IT Office Fitouts, who are currently undertaking the fitout of a medium-rise office building in a Sydney suburb. A team of company staff and contractors, led by a Project Manager, have been performing the work. The fitout is part- completed, and the Project Manager, Tony Faultier, has just left the company abruptly, moving overseas to take up a position in another company.
You have been put in charge of working with Vella IT Office Fitouts to investigate the current status of the project and determine any corrective action required, including providing advice on replacing the project manager, and improving the performance of the project team. You are to report your findings to the board of Vella IT Office Fitouts, including Jim Vella, the business owner and chairman.
The building comprises four levels, and is designed to house 200 people, with 50 on each floor. Each floor provides 500 m2 of office space. Vella Office Fitouts are in charge of the entire fitout, including furnishings, plumbing, electrical and data and telecom infrastructure. 200 staff of Ferrari Software, a computer software company, are to be relocated into the building at the end of the fitout.
Information gathering
As you begin your investigation, you find that Tony Faultier has left very little in the way of reliable records of the project. As you interview other staff and stakeholders, you are able to build up the following picture:
The Project
- The total fitout budget is $1.2M.
- The original schedule was for completion in a total of four months, commencing on 1 March, and completing on 30 June. It is now 1 May. At this point, the schedule states that work on the ground floor should be completed, the first floor 50% completed and the second floor 50% completed. Work on the top floor is not yet due to commence.
- On investigation, it is found that the work on the ground floor is only 75% complete, the first floor is 25% complete and the second floor is 25% complete. Also, the top floor is 50% complete, ahead of schedule. So far, $675K has been spent on the fitout.
The People
- You are told that Tony Faultier was seen as a belligerent, even bullying, project manager; but the team also saw him as being somewhat lazy in his own work, while being impatient and intolerant of others.
- Tony’s style was quite autocratic, and he was unwilling to listen to advice from members of the team.
- Vella Office Fitouts have a strict policy of performance-based salary for all staff, where bonuses are paid for performing beyond work targets.
- Some of the team members were aware that work should not have commenced on the top floor, and attempted to tell Tony that this was causing problems, with one case of accidental leakage from the plumbing causing damage to the first-floor fitout, delaying work; however, Tony advised them to continue with the work. It was found that he was being paid a commission by a former senior manager at Vella for completing the Board Room on the top floor early for a personal celebration.
- A number of the Vella Office Fitouts staff complained that some of the contract staff did not seem to have received adequate training on the specialised data cabling required for this fitout, leading to costly rework in the cable terminations.
Your Presentation and Report
You are to produce a full report, which you will present to the Board of Vella Office Fitouts. Your report should include the following details:
• A brief summary of the current status of the project, including the Cost Variance and the Schedule Variance. This should also include an overview scorecard or chart of the project, comparing the scheduled tasks to the actual.
- A list of any additional information the new Project Manager will need to source in order to produce regular, detailed status reports on the project.
- An overview of the leadership behaviour on the project. This should use the Organizational Zoo model to represent Tony Faultier’s observed behaviour, and should also make recommendations for the preferred leadership behaviour to be targeted in the recruitment of a new Project Manager, including support and justification.
- An overview of the existing team environment, with recommendations for changes to work processes and policies to establish a more cooperative environment, where team members will feel more able to share their knowledge of project risks or problems, and contribute to improvements in project performance. This should also be supported with some analysis.
Answer:
Introduction
Sports industry in Australia is highly developed as significant popularity of different sports activities have helped this industry to contribute significantly to the Australian's economy. Despite such significant growth and demand, the Australian sports sector has been termed as a ‘fringe player' of the Australian economy. According to a report published by the Australian Bureau of Statistics (ABS), almost 1.6% of household spending on the Australian sports industry was identified in 2010. As per 2011 census data, only 96,000 people were employed in this sector. However, an increased rate of active participation has been determined in the sports sector of Australia in recent times (Theconversation.com, 2017). In this context, the importance of sportsmanship can be discussed. This research proposal looks to explore the relationship between sports sponsorship in developing brand awareness amongst consumers.
Problem statement
It is observed that Australian industry is going through a period of flux, which might create questionable future for the business organisations. Due to technological enhancement, Australian industry sector was able to offer wide range of products and services to consumers. This significant growth is restricting sports enterprises to maintain a connection with sports fans, who can be considered as potential consumers. Furthermore, a high price of sports equipment has disallowed consumers to buy those products, which also decreased the brand awareness of various sports organisations. According to a report published by Australian Government, sport industry is highly expanded and outperformed other competitors. Nevertheless, in recent times, a significant competition in this industry has been identified (Health.gov.au, 2018). Scholars have identified this situation as highly critical to the healthy environment of Australia. In 2015, Australians have lost almost $815 million AUD, which can be interpreted as an increased rate of 30% from 2014. Henceforth, gambling in the sports is another crucial factor that needs to be considered for expanding the economy (Willoughby, 2016). Besides this, fanatical support in games has been reduced significantly in recent years. In 2007, a survey identified 79% of ardent supporters in Australia. However, a recent study has noticed a gradual declination of 10% of fanatical followers. From this decreased rate of fans supports, it can be said that too much of available content in sports industry has reduced brand awareness Australians in a significant manner (Grealy, 2016). Nevertheless, the availability of sports fragments in the form of social and digital media has diminished the interest of fans regarding any sport. Therefore, sports manufacturing industries are also facing profitability issues due to lack of reputation amongst consumers. Due to this lack of standing, child participation rate has been decreased across this country (Wood, 2016).
Based on the above problems, this research proposal will explore the relationship between sport sponsorship and brand value of sports appraisal in Australia.
Research Aim
The aim of this research is to identify a relationship between sports sponsorship and brand awareness of Game Clothing in Australia. Furthermore, the study will also assess the impact of sports sponsorship on the brand equity of Game Clothing.
Research objectives
- To investigate the influence of sports sponsorship on the brand equity of any organization
- To identify the impact of sports sponsorship from
- To propose a possible recommendation for Game Clothing about their future sponsorship activities
Research Questions
- What is the impact of sports sponsorship on developing brand awareness of any organization?
- What is the current position of Game Clothing in the Australian sports industry?
- How will Game Clothing be able to improve sport sponsorship activities for creating better brand value?
Literature Review
This section gives an overview of multiple factors that are directly or indirectly associated with brand awareness and sports sponsorship. According to Hart (2018), a literature review of any research helps to identify multiple relationships between different variables.
Concept of Sport Sponsorship
Sponsorship can be interpreted as an investment opportunity that helps to build brand equity and corporate image significantly. According to Zouaoui, Ghorbel & Omri (2013), sports sponsorship in an organization helps to communicate with the consumers. On another hand Walraven (2013), opposed by identifying no proper definition of sports sponsorship. Rather, it has been said that performance and involvement of media play a crucial role in initiating sports sponsorship. Furthermore, change in lifestyle has also been identified as a significant factor to demonstrate sports sponsorship in an organizational context. In order to distinct sports sponsorship from other types of sponsorship, Schmid (2017) addressed three dimensions that can be found in sport sponsorship activities. These are:
- Discipline of sports
- Professionalism
- An object of the sponsorship
Figure 1: Dimensions of Sponsorship
(Source: Matar, 2016)
From the above illustration, it can be interpreted that the selection of the sports segment/discipline is necessary for investment. A significant reason behind the selection of a specific discipline is to target a group of audience, which can play a pivotal role in generating popularity. Furthermore, professionalism level selection is also necessary, as it helps to generate different types of qualitative and quantitative results regarding sports sponsorship. The object on another hand is crucial, which determines the amount of money that will be spent through sports sponsorship. Therefore, high acceptance of sports sponsorship in different target groups helps to determine the rights and commitment level required in sports sponsorship. In this context, three types of sponsorships have been categorized in the existing literature. As per the view of Matar (2016), full sponsor and co-sponsor are two important types of sponsorship. Depending on the engagement of media, sports sponsorship has been segregated in other genres such are presenting sponsor, equipment sponsor, official beverage partner and much more. Despite such variety of sports sponsorship, the principal aim is to enhance the popularity of sponsors through effective media coverage and socialization. Biscaia et al. (2013) proposed a different overview regarding the sports sponsorship in modern days. It is observed that activating aid also helps corporations from a different side. Isolation of social behaviour, development of a proper relationship with media and community involvement are three significant benefits that can be developed through sports sponsorship. This discussion on the concept of sports sponsorship reflects on the requirement of proper sports sponsorship in an organizational context.
Figure 2: Process of Sponsorship
(Source: Matar, 2016)
Matar (2016), designed a process of the sponsorship program that might help an organization to demonstrate it accurately. According to the process, sponsorship can be interpreted as an element of promotional strategy. Henceforth, aspects of promotional mix must be adequately mixed to achieve a successful aid. In the case of sports sponsorship, it is significant to maintain a proper integration with the marketing communication process. This allows organisations to incorporate a sports sponsorship deal. Besides, objectives and budget are essential parameters for initiating a sports sponsorship process. In this context, Grealy (2016) added that the evaluation of aim and opportunities are highly significant as it helps to track the marketing goal of an organization. After a strong consideration of objectives and sponsorship budget, organisations need to identify possible sponsorship opportunities. Later, the evaluation of alternative sponsorship is required to implement a sports sponsorship program successfully. However, Kim (2010), identified a significant relationship between patronage based sports event and changes in the stock market. It is observed that the financial rewards of support allow organisations to penetrate the stock market effectively.
AIDA model of Sport sponsorship
Kotler & Armstrong (2010) has developed the AIDA model by focusing on the theory of direct communication. According to the linear model of communication, eight components play a significant role in making a change in a model. The sender is a significant factor of this model that shares useful information to a specific audience. However, from the existing literature, it is identified that the application of appropriate images and languages are two primary aims of a sender in developing better communication with others. Nevertheless, the AIDA model reflects on the four parts of decision making that are required to demonstrate an effective sports sponsorship process. These major parts are:
- Attention
- Interest
- Desire and
- Action
Figure 3: AIDA model
(Source: Kotler & Armstrong, 2010)
It is observed that attention is the major factor of this model as it helps to initiate the process of sponsorship. The notice of audiences can be attracted by implementing various methods of the advertising process. After that, it is important to maintain the interest amongst target audience as losing interest might impair the sponsorship process critically. It is observed that the generation of interest helps to embed desire amongst consumers. In the context of sports sponsorship, the creation of desire is highly required for promoting brand equity. However, it can be said that taking appropriate action is another significant step, similar to other phases of this model. It helps business organisations to maintain a positive flow of the sponsorship process.
Figure 4: Updated AIDA model
(Source: Schmid, 2017)
The recent study has identified a developed AIDA model that can be a successful tool for business enterprises for attracting high investment through the sponsorship process. As produced by Schmid (2017), cognitive stage of the developed AIDA model helps top generate brand awareness amongst people. Besides this, reaching the target audience is another significant step of this cognitive stage of this AIDA model. Furthermore, it is identified that an active phase of the developed model helps to build a brand image amongst the targeted audience. Finally, the behavioral stage of this model ensures a massive increase in product sales and relationship marketing.
Concept of Brand Equity
The concept of brand equity is directly linked with the promotional activities of any organization. According to Matar (2016), brand equity can be interpreted as a composition of liabilities and assets of any organization. Literary study on brand equity highlights the development of the marketing process of any organization. However, in recent times it is observed that branding as a significant part of business strategy, is terminated from the responsibilities of an advertising manager. As identified by Biscia et al. (2013), brand equity is an important aspect that defines a better relationship between consumers and brands. Henceforth, brand equity can be segregated into three significant parts such are:
- Brand awareness
- Association of brand
- Brand loyalty
Figure 5: Concept of Brand equity
(Source: Henseler, Wilson & Westberg, 2011)
Therefore, it can be interpreted that discussion on the brand equity helps to develop a better knowledge of brand awareness. In this context, Henseler, Wilson & Westberg (2011) described that brand awareness is highly related to the communication process. This can be explained further by terming brand awareness as a significant perspective from the end of consumers. Henceforth, researchers have identified brand recognition and brand recall as two important compounds of brand awareness amongst a specific target group. This also relates to the purchase intention of consumers. According to Snatomier (2008), brand awareness can be determined when a consumer can recognize that brand by noticing logo and additional information. Henceforth, brand awareness can also be viewed as the ability of consumers in developing a better relationship with a specific product. It is identified that brand awareness can be judged by focusing on the point of sales of any organization. As discussed by Azadi (2016), a decrease at the end of sales reflects on the significance of brand recall, whereas an increase in term of sales denotes the growing importance of brand recognition. Therefore, it can be summarized that brand awareness and equity are directly related to the sports sponsorship.
Multidimensional Brand Equity Model
This model can be interpreted as an alternative Ehrenberg and Aaker’s model of brand equity. As developed by Yoo & Donthu (2002), this multidimensional model ensures a proper bridging of gaps identified in the former model of Ehrenberg and Aaker. Henceforth, three dimensions such are brand awareness, brand loyalty and perceived quality of consumers can be applied to maintain high brand equity. Nevertheless, it can be argued that these dimensions might play different roles to incorporate high brand equity in an organizational context. In this context, it can be compared that the developed multidimensional model is equivalent to other brand equity models available in the existing literature. In order to support this view of comparison, Roy & Cornwell (2003) argued that available inter correctional paths described in the multidimensional model can be transformed into casual paths without manipulating the flow of this model. Henceforth, in order to consider a higher outcome by applying this model, organisations should increase the degree of these stated dimensions for a better result.
Relationship between brand value and sport sponsorship
It is observed that the impact of brand value can be assessed through the level of brand awareness. Therefore, through a proper brand awareness program, an organisation might be able to increase its brand value. In this context, da Silva & Las Casas (2017), identified a significant relationship between brand value and sports sponsorship. It is observed that brand awareness can be perceived as the primary stage of sports sponsorship. Henceforth, it can be interpreted that without a proper brand awareness, sponsors will not be able to attract a high level of consumers’ interest. Nevertheless, Kunkel, Funk & Lock (2017), argued that brand awareness is an important compound to fulfil marketing objectives. From this argument, it can be estimated that brand value is directly linked to the purchase decisions of consumers, which might be manipulated by sport sponsorship or any sponsorship program.
Papadimitriou, Kaplanidou & Papacharalampous (2016), commented that consumer purchase intention can be identified as the significant factor that imposes a massive influence on the future sales of any organisation. However, a substantial line of differences has been found between customer purchasing decision in sports appraisal and general consumer purchase intention of consumers. As commented by Zahaeia et al. (2016), purchase intentions of consumers regarding sport equipment reflects on the consciousness of consumers, which is a significant task to complete. Henceforth, it can be proposed that purchase intention of consumers plays the role of a motivational driver for purchasing a specific product.
From the array of available research, it can be said that sponsorship is a significant brand development tool that ensures brand exposure, brand association development, internal and external mobilisation and much more. Therefore, Alonso-Dos-Santos et al. (2016), claimed that a significant correlation between different factors of brand equity helps to develop brand awareness and brand image in a substantial way. The same has been addressed from the managerial perception of any organisation. It is identified that through a proper brand image, organisations become able to target a vast audience, who are significant for the future development of the business. As a result, through the increase of brand image, sports sponsors also become able to increase their profitability to a broad context. Henceforth, three significant connection between the sports sponsorship and brand value have been identified. Kelly et al. (2017), designated business function, support as a communication tool and branding function are essential aspects that explore the relationship between brand value and sports sponsorship. Henceforth, it can be said that through a proper relationship between sports sponsorship and brand value, organisations will be able to achieve corporate targets significantly. In addition, Lee & Koo (2015), identified an adequate relationship between brand success and mindset of consumers. Henceforth, it can be estimated that a useful simulation of brand knowledge helps to increase the relationship between these stated variables. On another hand, it is identified that trial and retrial of products help to improve the turnover rate of any organisation.
Furthermore, an effective relationship between sports sponsorship and brand value also influence the consumer behaviour in a significant manner. As identified by Temel & Sirin (2017), brand image of any organisation is highly related to the brand adaptation process of any organisation. In this context, a great relationship between communication processes has been identified. Furthermore, it is observed that in a specific sports sponsorship context, organisations become able to develop the internalisation process that imposes an indirect influence on the behaviour of the specific target audience in a significant manner. Henceforth, the aspect of sponsorship as a communication tool cannot be neglected in this context.
Different ways of developing brand value through the sports sponsorship procedure
Advertising campaigns can be considered as one of the most effective ways to maintain the relationship between consumers. As identified by Lu, Chang & Chang (2014), advertising campaigns allow organisations to develop a better communication channel with consumers, which in a way enables advancing brand equity. However, issues have also noticed in this context. According to Abeza et al. (2014), illustrating the return on investment to media campaign is another tough task to be completed. Henceforth, to project the impact of a media campaign, many sporting investments need to be considered as this helps to assess the importance of this tool in an appropriate manner. Therefore, scholars have recommended that organisations need to focus on the timing of popular televisions as highlight advertisement in that time will ensure a better brand value in a significant context.
Besides this, Seele & Lock (2015), identified a significant relationship between radio advertisements and an increase in sports sponsorship popularity. It is observed that radio advertisements in urban areas play a significant role in stretching the buying behaviour of consumers. Furthermore, it is also assessed that through a proper relationship between the radio advertisements and sports sponsorship, sales promotion of any brand gets increased effectively. In this regard, an observational study has conducted that highlight the significant impact of product selection and buying behaviour of consumers in a substantial manner. A single source of the methodology developed by Nielson (2013) has identified a crucial linkage between radio advertisements and households in a significant way.
Conceptual Framework
Research Methodology
This segment reflects on multiple approaches that will be taken in conducting this entire research. This segment gives a proper overview of research philosophy, approach, method and much more.
Research philosophy
Positivism, post-positivism, realism, and realism are four types of research philosophies that can allow a researcher to demonstrate research in a significant manner. For this research, positivism philosophy will be applied. It is observed that positivism philosophy ensures proper enlightenment of a truth. In order to assess the relationship between sports sponsorship and brand value, positivism philosophy will assist the researcher to advance this study in a professional manner. In this context, post-positivism philosophy will also be applicable as this philosophy gives a mixed view of reality. However, the application of the former will generate an effective outcome of this study.
Research design
In order to explore the domain of sponsorship and marketing, the researcher will conduct descriptive research. According to Crowe et al. (2017), descriptive research design will create more opportunity for the researcher, which might be useful to explore the relationship between sports sponsorship and brand value. From the literature review section, an important relationship between these variables has been identified. Henceforth, the application of other research designs might seem inappropriate in this context.
Research approach
Existing literature has identified two practical approaches that can be applied in research; such are deductive approach and inductive approach. It is observed that a deductive approach allows researchers to develop an effective research strategy, which ensures a better examination of a specific topic. Henceforth, through a proper application of the research approach, the researcher will be able to identify causal relationships between dimensions of brand value and models of sports sponsorship. Besides this, the deductive approach will allow the researcher to conduct a secondary analysis. In addition, this research will be able to conduct this study in a particular context. Due to these advantages, the inductive approach will not be applied in this research
Data collection
This research will be performed on Gaming Cloth, an Australian sports appraisal organization. Henceforth, it will be necessary for the researcher to collect secondary data for this research. Henceforth, secondary data will be collected in this study. In order to identify the relationship and impact of sports sponsorship, factual data will be collected. Despite such a wide topic, primary data will not be collected as this type of data might reduce the quality of this study. Besides this, a chance of bias can also occur in this research.
Data collection tools
As this research will consider secondary data only, therefore data will be collected from authentic databases. Besides this, extensive research on the e-library will be done to assess the impact of sports sponsorship on the brand value of the selected organization. Furthermore, the Government published a report on the sports industry of Australia will also be considered in this research. Besides this, public records, statistical documents and published reports of Game Clothing will also be taken for this research.
Sampling method and size
This research will consider the secondary sources. Henceforth, approximately 35-40 official secondary sources will be considered in this research. Furthermore, inclusion and exclusion sampling method will be applied in this research. Therefore, the researcher will not take any sources that are written in another language. Furthermore, published sources in commercial and promotional websites, will not be considered for this research. Besides this, journals and articles that require subscription charges for full access will also consider rejected for this study.
Data analysis tools
In order to assess the significance of the relationship between sports sponsorship and brand value, a thematic analysis of the study will also be considered. Henceforth, multiple themes will be constructed in this research. However, statistical analysis of secondary quantitative data will also be performed in this study. The researcher will use SPSS to find correlation between multiple variables. In addition, Cronbunch’s alpha analysis and linear regression will also be conducted to assess the relationship between these stated variables. Finally, descriptive analysis of qualitative studies will be conducted in research to identify the pattern that influences consumers to consider any brand significantly.
Research ethics
The researcher will not perform any illegal action to complete this research. Data security act of Australia will be obtained thoroughly to make this research ethical and widely applicable. Henceforth, academic misconduct policy of university will also be adhered to make this research study plagiarism free. In addition, proper credit will be given to the authors, which ideas will be implemented in this research.
Expected outcome of this study
From the secondary qualitative and quantitative data analysis of this study, a major relationship between brand value and sport sponsorship will be understood. From the recent review of the literature, it can be said that sport sponsorship and brand value are relatively connected with each other. Henceforth, high influence of former variable on the latter, can be noticed in this research study. Furthermore, statistical analysis of published data might help the researcher to generate a significant relationship between these variables. Henceforth, full exploration of entire research will be highlighted from theoretical and practical perspective of this study. Therefore, it can be said that analysed data will ensure a proper findings of this research, which might have been unexplored in academic research. Lastly, a strong output of increased brand value in demonstrating an effective sport sponsorship will be generated at the end of this research.
Structure of the entire study, project budget and schedule
This entire research will be intersected in five major chapters and each chapter will contain an in-depth analysis. Structure of this research report will be:
Chapter 1: Introduction: This chapter will propose the context in which the entire research will be discussed. Furthermore, aim of the research and research questions will be developed in this chapter. Besides these, an extensive research rationale will develop a proper justification of conducting this research.
Chapter 2: Literature Review: This will be a pivotal chapter of this research. Multiple variables (dependent and independent) will be identified, and a thorough study on the concepts and models will be performed in this research. Furthermore, the literature gap segment will link this study with other scholarly works that have been developed previously by other scholars.
Chapter 3: Research methodology: This chapter reflects on the multiple methods that will be taken to complete this entire research. Positivism philosophy would be applied in this research. In addition, deductive research approach and descriptive research design would be discussed in detail.
Chapter 4: Data findings and analysis: In this segment, secondary data will be collected and analysed in this chapter. This chapter will play a vital role in generating outcomes of this study correctly as thematic and statistical analysis will be done. Furthermore, linear regression and descriptive analysis of variables will help to estimate a significant relationship between sports sponsorship and brand value of Game Clothing.
Chapter 5: Recommendation and Conclusion: Objectives of this entire research will be linked in this chapter. Furthermore, recommendations have been provided that will help the selected enterprise to demonstrate a better sports sponsorship for future success.
Estimated budget for this research and timeline
In order to complete this research correctly, the researcher will consider following budgets, which have been presented in the table below:
|
Senior Personnel |
$12,000 |
|
Other Personnel |
$10,000 |
|
Total Personnel |
$22,000 |
|
Equipment |
$18,000 |
|
Travel |
$5,000 |
|
Purchasing research materials |
$11,000 |
|
Printing |
$9000 |
|
Total Direct Costs |
$65,000 |
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