Ask Jo Malone: Sponsorship can draw in a new customer base

Small-business agony aunt Jo Malone shares her thoughts on sponsorship deals.

Dear Jo

Can you give me some advice on sponsorship deals? I run a builders’ merchants and have been approached by the local rugby club (who are pretty good and have a decent fan base) for sponsorship. It’s not a huge amount but they want a three-season deal to give them some security. How big do you think the benefits are compared with traditional advertising?

Jo says..

Having never struck any sponsorship deal myself, I can only relate this one to a form of collaboration — with any relationship, you have to make sure it works for both parties.

Supporting your local sports team is a great way to bring brand awareness to the community — even better if your company is branded on the players’ shirts and televised. You need to feel confident that your relationship with combining brands will complement each other.

I remember many years ago creating a fragrance with French Connection and, although we both came from different markets, the collaboration was amazing. It opened my brand up to a whole new clientele that was previously unaware of me. It also taught me a tremendous amount about a whole new customer base, so perhaps view your sponsorship deal this way, in that it will draw in customers you may never have reached before.

If you are nervous about the three-year commitment, have a chat to the club and see if there is room to manoeuvre. Would there be an option for a break clause after one year, perhaps? Also, if it is working well for you both, can you have the option added to extend the sponsorship deal?