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Brand awareness is thought to accrue naturally from sponsorship making it a primary<br />

expectation for many companies that engage in sponsorship relationships (Dolphin, 2003).<br />

An additional attribute of sponsorship deals is extended, repetitive media coverage.<br />

Repeated exposure of a brand increases the likelihood that the target audience will be able<br />

to effectively identify and remember the sponsor (Michaelis, 2012).<br />

The 2006 FIFA World Cup provides a valuable example of the benefits achieved through<br />

repeated exposure. Surveyed individuals showed a 14% increase in recall of the official<br />

sponsor before and after the games (from 59% - 73%), coinciding with an additional 7%<br />

decrease in false recall (initially spurred by ambush marketing and brand confusion) from<br />

25% to 18% (Michaelis, 2012). This supports the belief that prolonged media exposure<br />

increases brand awareness. “Events like Formula One Racing, the Olympic Games, and the<br />

FIFA World Cup are fully globalized in terms of media coverage. Consequently, large<br />

international companies in particular use the FIFA World Cup as a platform for building,<br />

strengthening, and maintaining brand image” (Michaelis, 2012). Building, strengthening and<br />

maintaining brand image all directly effect company goals of increased awareness,<br />

consumer goodwill and brand enhancement. Otker and Hayes go on to state that the<br />

following association is made between food brands and the event they are sponsoring. “This<br />

sport involves energy, energy is provided by Mars bars, and Mars is sponsoring it”<br />

(McDonald, 1991). This can be transferred to the case of McDonald’s, inferring that the<br />

company sponsors events like the FIFA World Cup in order to create a link between their<br />

brand and the energy levels of the successful athletes involved.<br />

Sponsorship can also help to increase market penetration. Immediately following the<br />

London Summer Olympic games in 2012, McDonald’s saw a 3% increase in European sales,<br />

and a 5.7% increase in Middle East/Asian/African sales (McDonald’s Inc., 2012). McDonald’s<br />

has stated they believe this short term increase was “complemented by unique value<br />

offerings and promotions highlighting McDonald's Olympic sponsorship (which) benefited<br />

the segment's performance.” (McDonald’s Inc., 2012) Studies have shown that this can be<br />

attributed to the increase in viewer accessibility, reaching “potential customers, present<br />

customers, general public, local community, workforce, business community, distributors,<br />

suppliers, shareholders, and governments” (Dolphin, 2003) by engaging in sponsorships (of<br />

global events).<br />

Additionally, brands use sponsorship of global sporting events like the World Cup to send a<br />

message to stakeholders (Dolphin, 2003). Association with the values and image of the FIFA<br />

World Cup create a positive connection for the sponsor and work towards achieving<br />

increased interest from potential investors or to reassure stakeholders. Sponsorship for the<br />

World Cup may also be used as a way to reach markets at both a local and global scale,<br />

citing McDonald’s as an example in their prolonged sponsorship of the World Cup (Dolphin,<br />

2003). Studies have shown that individuals will evaluate a brand more positively over time<br />

if a brand that has previously been evaluated negatively, becomes the sponsor of a<br />

positively rated event. This investment and commitment is a sign of quality for the<br />

negatively perceived brand (Michaelis, 2012). This may be reflected in McDonald’s<br />

sponsorship, which could be striving for a healthier image to promote their new line of<br />

healthy meal alternatives.<br />

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