TABLE OF CONTENTS Chapter 1: Introduction to the study. 1 1.1 Introduction.. 1 1.2 Background sketch. 1 1.2.1 Branding.. 3 1.2.2 Brand equity... 4 1.2.3 Branding in South African rugby. 6 1.3 Reason for the study. 7 1.3.1 Formulation of the problem. 9 1.3.2 Contribution of the study.. 10 1.4 Objectives of the study. 10 1.5 Research method.. 11 1.5.1 Secondary research. 11 1.5.2 Primary research... 12 1.5.2.1 Population of the study. 12 1.5.2.2 Sampling method.. 12 1.5.2.3 Data gathering 13 1.5.2.4 Data processing. 14 1.5.2.5 Limitations of the study.... 14 1.6 Orientation of the study. 14 Chapter 2: The South African rugby industry. 17 2.1 Introduction. 17 2.2 The South African rugby industry 18 2.2.1 South African Investments Limited (SAIL).... 19 v
2.2.1.1 SAIL Sports Brands 21 2.2.1.2 SAIL Sport and Entertainment. 24 2.2.1.3 SAIL Capitol 26 2.2.1.4 SAIL Global 29 2.2.2 SuperSport International. 30 2.2.3 South African Rugby Football Union (SARFU) 32 2.2.3.1 The Bulls Rugby Union 35 2.2.3.2 Boland Rugby Union 36 2.2.3.3 Border Rugby Union 37 2.2.3.4 Eastern Province Rugby Union.. 38 2.2.3.5 Falcons Rugby Union.. 39 2.2.3.6 Free State Rugby Union. 39 2.2.3.7 Golden Lions Rugby Union 40 2.2.3.8 Griffons Rugby Union. 41 2.2.3.9 Griqualand West Rugby Union.. 42 2.2.3.10 Leopards Rugby Union 42 2.2.3.11 Mpumalanga Rugby Union. 43 2.2.3.12 Natal Rugby Union 44 2.2.3.13 South Western Districts Rugby Football Union 45 2.2.3.14 Western Province Rugby Union.. 46 2.3 The South African competitions... 47 2.3.1 Provincial competitions. 48 2.3.1.1 The ABSA Currie Cup 48 2.3.1.2 The Vodacom Cup. 50 2.3.1.3 National Under-20 Tournament 50 2.3.1.4 Regional tournament: the Super 12. 51 2.3.1.4 South African national rugby teams. 57 2.4 Conclusion... 62 Chapter 3: Sports marketing 64 3.1 Introduction... 64 3.2 The nature of sports marketing. 65 vi
3.2.1 Consumers. 67 3.2.2 Loyalty 67 3.2.3 Competition 68 3.2.4 Promotion 68 3.2.5 Price. 69 3.2.6 Distribution. 70 3.2.7 Product 70 3.2.8 Management.. 71 3.3 The sports industry.. 73 3.3.1 Sports consumers. 74 3.3.1.1 Spectators as consumers 74 3.3.1.2 Participants as consumers... 75 3.3.2 Sports producers and intermediaries. 77 3.3.3 Sports products. 78 3.3.4 Sponsorship.. 81 3.4 Sports consumer behaviour.. 83 3.4.1 Consumer decision making. 84 3.4.2 Individual factors that influence consumer decision making. 86 3.4.3 Group factors that influence consumer decision making 87 3.4.3.1 Level 0: Nonconsumers or indirect consumers 90 3.4.3.2 Level 1: Nonpattern attenders. 90 3.4.3.3 Level 2: Attenders. 91 3.4.3.4 Level 3: Frequent attenders. 91 3.4.4 Sports participant consumer behaviour. 92 3.4.4.1 Situational factors... 93 3.4.5 Spectator consumer behaviour.. 94 3.4.5.1 Initial stage. 96 3.4.5.2 Identification stage. 97 3.4.5.3 Optimal internalisation stage 98 3.5 The sports marketing strategy.. 103 3.5.1 Market segmentation and targeting 103 3.5.2 Marketing mix decisions.. 107 3.5.2.1 Sports product. 107 vii
3.5.2.2 Distribution... 108 3.5.2.3 Pricing.. 109 3.5.2.4 Promotion. 110 3.6 Conclusion 112 Chapter 4: Branding and brand equity.. 114 4.1 Introduction... 114 4.2 Fundamentals of branding. 115 4.2.1 Brand elements.. 117 4.2.1.1 Branding decision 119 4.2.1.2 Brand-sponsor decision. 120 4.2.1.3 Brand-name decision.. 121 4.2.1.4 Brand-strategy decision. 122 4.2.2 The benefits of branding.. 124 4.3 Brand equity. 129 4.3.1 Brand awareness 130 4.3.2 Perceived quality. 132 4.3.3 Brand loyalty 134 4.3.4 Brand associations. 137 4.4 Brand management 141 4.4.1 Identifying and establishing brand positioning and values. 142 4.4.1.1 Customer- based brand equity (CBBE).. 143 4.4.1.2 Brand positioning and values 147 4.4.2 Planning and implementing brand marketing programmes 149 4.4.2.1 Decisions relating to brand elements. 150 4.4.2.2 Marketing activities.. 151 4.4.3 Measuring and interpreting brand performance.. 152 4.4.3.1 Developing a brand equity measurement and management system 153 4.4.3.2 Measuring sources of brand equity. 156 4.4.4 Growing and sustaining brand equity. 159 4.5 Conclusion 160 viii
Chapter 5: Research methodology. 162 5.1 Introduction 162 5.2 Marketing research... 163 5.3 The marketing research process 165 5.2.1 Step 1: Identifying and formulating the problem or opportunity. 166 5.2.2 Step 2: Formulating the research objectives.. 167 5.2.3 Step 3: Developing a research design.... 168 5.2.4 Step 4: Conducting secondary research. 169 5.2.5 Step 5: Selecting a primary research method 170 5.2.5.1 Observational research.. 171 5.2.5.2 Experimental research... 172 5.2.5.3 Survey research.. 173 5.2.6 Step 6: Determining the research frame. 177 5.2.6.1 Sample frame. 178 5.2.6.2 Sample size 178 5.2.6.3 Selecting the sampling method.. 180 5.2.7 Step 7: Gathering the data 183 5.2.8 Step 8: Processing the data.. 184 5.2.8.1 Descriptive statistics. 186 5.2.8.2 Inferential statistics 187 5.2.8.3 Determination of brand equity. 190 5.2.8.4 Reliability and validity... 194 5.2.9 Step 9: Reporting the research. 197 5.3 Conclusion... 197 Chapter 6: Research Results... 198 6.1 Introduction 198 6.2 Profile of the sample. 198 6.2.1 Demographic profile... 201 6.2.1.1 Gender composition of respondents. 201 6.2.1.2 Average age of respondents.. 203 ix
6.2.1.3 Race distribution of respondents 205 6.2.2 Rugby supporter profile 206 6.2.2.1 Scale of support. 207 6.2.2.2 Rugby team personally supported. 210 6.2.2.3 Period of support.. 213 6.2.2.4 Team most admired. 214 6.2.2.5 Amount of rugby games respondents watch 217 6.2.2.6 Average price for a rugby ticket and rugby jersey.. 218 6.3 Attitudes towards the industry. 224 6.4 Awareness of rugby teams.. 227 6.4.1 Awareness of the regional rugby teams 227 6.4.2 Awareness of the provincial rugby teams. 229 6.4.3 Awareness of the South African national rugby teams... 229 6.4.4 Awareness of the regional rugby team s brands. 233 6.4.4.1 The Bulls.. 233 6.4.4.2 The Cats... 234 6.4.4.3 The Sharks... 235 6.4.4.4 The Stormers... 236 6.4.5 Awareness of the provincial teams brands 237 6.4.5.1 The Blue Bulls. 238 6.4.5.2 The Boland Cavaliers. 239 6.4.5.3 The Border Bulldogs.. 239 6.4.5.4 The Cheetahs. 240 6.4.5.5 The Eagles... 241 6.4.5.6 The Falcons. 241 6.4.5.7 The Golden Lions 241 6.4.5.8 The Griffons. 242 6.4.5.9 The Griquas. 243 6.4.5.10 The Leopards.. 243 6.4.5.11 The Mighty Elephants 244 6.4.5.12 The Mpumalanga Pumas.. 244 6.4.5.13 The Natal Sharks 244 6.4.5.14 Western Province 245 x
6.4.6 Awareness of the national teams brands... 246 6.4.6.1 The Springboks... 247 6.5 Brand association. 248 6.5.1 The Bulls.. 248 6.5.2 The Cats.. 250 6.5.3 The Sharks.. 252 6.5.4 The Stormers... 255 6.5.5 The Blue Bulls. 258 6.5.6 The Border Bulldogs.. 260 6.5.7 The Boland Cavaliers. 261 6.5.8 The Cheetahs. 262 6.5.9 The Eagles.... 264 6.5.10 The Falcons. 264 6.5.11 The Golden Lions 264 6.5.12 The Griffons. 266 6.5.13 The Griquas. 267 6.5.14 The Leopards... 267 6.5.15 The Mighty Elephants 268 6.5.16 The Mpumalanga Pumas. 269 6.5.17 The Natal Sharks 269 6.5.18 Western Province 271 6.5.19 The Springboks.. 273 6.6 Brand loyalty.. 274 6.7 Perceived quality (Trust and confidence)... 277 6.7.1 The Bulls 277 6.7.2 The Cats. 278 6.7.3 The Sharks. 279 6.7.4 The Stormers... 280 6.7.5 The Blue Bulls 281 6.7.6 The Border Bulldogs. 281 6.7.7 The Boland Cavaliers... 282 6.7.8 The Cheetahs... 283 6.7.9 The Eagles. 283 xi
6.7.10 The Falcons.. 284 6.7.11 The Golden Lions. 284 6.7.12 The Griffons.. 285 6.7.13 The Griquas.. 286 6.7.14 The Leopards 286 6.7.15 The Mighty Elephants.. 287 6.7.16 The Mpumalanga Pumas. 287 6.7.17 The Natal Sharks... 288 6.7.18 Western Province.. 289 6.7.19 The Springboks... 289 6.8 Determination of the brand equity... 290 6.9 Conclusion 293 Chapter 7: Conclusion and recommendation. 294 7.1 Introduction... 294 7.2 Conclusions.. 294 7.2.1 Demographic profile and attitude towards the industry.. 295 7.2.2 Rugby support profile 297 7.2.3 Brand equity of the provincial, regional and national rugby teams of South Africa 300 7.2.2.1 Awareness of rugby teams.. 300 7.2.2.2 Brand equity of rugby teams 302 7.4 Recommendations.. 322 7.4.1 Provincial rugby brands 324 7.4.2 Regional rugby brands. 325 7.4.3 National rugby brands.. 327 7.5 Reconciliation of the objectives of the study.. 328 7.6 Areas of future research. 329 7.7 Conclusion 330 BIBLIOGRAPHY. 332 ANNEXURE A... 351 xii
LIST OF FIGURES Figure 1.1 Branding and brand equity. 2 Figure 2.1 The main role players in the South African rugby industry... 18 Figure 2.2 South African Investments Limited... 21 Figure 2.3 SAIL Sports Brands... 22 Figure 2.4 SAIL Sport and Entertainment... 25 Figure 2.5 SAIL Capitol..... 27 Figure 2.6 SAIL Global..... 29 Figure 2.7 SuperSport rugby brands..... 31 Figure 2.8 Structure of SARFU..... 33 Figure 2.9 SARFU s revenue sources for 2003.... 34 Figure 2.10 Blue Bulls rugby brand..... 36 Figure 2.11 Cavaliers rugby brand... 37 Figure 2.12 Bulldogs rugby brand.... 38 Figure 2.13 Mighty Elephants rugby brand..... 38 Figure 2.14 Falcons rugby brand..... 39 Figure 2.15 Cheetahs rugby brand... 40 Figure 2.16 Lions rugby brand... 41 Figure 2.17 Griffons rugby brand...... 41 Figure 2.18 Griqualand West rugby brand.... 42 Figure 2.19 Leopards rugby brand..... 43 Figure 2.20 Pumas rugby brand... 44 Figure 2.21 Natal Sharks rugby brand... 45 Figure 2.22 Eagles rugby brand... 46 xiii
Figure 2.23 Western Province rugby brand..... 47 Figure 2.24 The Bulls brand... 53 Figure 2.25 The Cats brand..... 54 Figure 2.26 The Sharks brand... 55 Figure 2.27 The Stormers brand... 56 Figure 2.28 The development of the Springbok logo... 58 Figure 2.29 Springbok Sevens brand..... 61 Figure 2.30 Rugby brand of other South African national rugby teams. 62 Figure 3.1 The nature of sports marketing versus traditional marketing. 66 Figure 3.2 Role players in the sports industry... 73 Figure 3.3 Classification of spectators...... 75 Figure 3.4 Classification of participant consumers..... 76 Figure 3.5 Sports products..... 78 Figure 3.6 Range of sports products..... 80 Figure 3.7 The sports product map.... 81 Figure 3.8 Consumer behaviour in sport..... 84 Figure 3.9 The escalator approach to sports marketing... 89 Figure 3.10 Model of participant consumption behaviour...... 92 Figure 3.11 Spectator consumer behaviour..... 95 Figure 3.12 Fan identification process.... 97 Figure 4.1 Fundamentals of branding... 116 Figure 4.2 Branding decisions... 118 Figure 4.3 The benefits of branding... 125 Figure 4.4 Brand valuation model... 128 Figure 4.5 The sources of brand equity... 130 Figure 4.6 The strategic brand management process...... 142 Figure 4.7 Identifying and establishing brand position and values...... 143 Figure 4.8 Possible Springbok Rugby associations... 145 Figure 4.9 The brand value chain... 155 Figure 5.1 Classification of research data... 164 Figure 5.2 The marketing research process...... 166 Figure 5.3 Observational research..... 171 Figure 5.4 Classification of experiments..... 172 xiv
Figure 5.5 Classification of survey methods...... 174 Figure 5.6 Multistage sampling process followed in this study... 182 Figure 5.7 Aaker s Brand Equity Ten Model...... 191 Figure 6.1 Gender composition of respondents... 201 Figure 6.2 Percentage of respondents in each age group (n = 496) 204 Figure 6.3 Race distribution (n = 501)..... 206 Figure 6.4 Boxplot of the claimed rugby support by different race groups 209 Figure 6.5 Distribution of prices respondents were willing to pay for a rugby ticket (n = 343)......... 219 Figure 6.6 Distribution of prices respondents will pay for a rugby jersey (n = 402)........... 222 Figure 6.7 Trust and confidence in the Bulls (n = 286).... 278 Figure 6.8 Trust and confidence in the Cats (n = 204).... 279 Figure 6.9 Trust and confidence in the Sharks (n = 354).... 279 Figure 6.10 Trust and confidence in the Stormers (n = 384).... 280 Figure 6.11 Trust and confidence in the Blue Bulls (n = 162)... 281 Figure 6.12 Trust and confidence in the Cheetahs (n = 76)...... 283 Figure 6.13 Trust and confidence in the Golden Lions (n = 86).... 285 Figure 6.14 Trust and confidence in the Natal Sharks (n = 56).... 288 Figure 6.15 Trust and confidence in Western Province (n = 193).... 289 Figure 6.16 Trust and confidence in the Springboks (n = 439)..... 290 Figure 7.1 Springboks associations....... 303 Figure 7.2 Stormers associations...... 304 Figure 7.3 Bulls associations...... 305 Figure 7.4 Sharks associations...... 306 Figure 7.5 Blue Bulls associations..... 307 Figure 7.6 Western Province associations.... 308 Figure 7.7 Natal Sharks association...... 309 Figure 7.8 Cheetahs associations.... 310 Figure 7.9 Cats associations....... 311 Figure 7.10 Golden Lions associations.... 312 Figure 7.11 Mpumalanga Pumas associations...... 313 Figure 7.12 Boland Cavaliers associations..... 314 xv
Figure 7.13 Mighty Elephants associations..... 315 Figure 7.14 Border Bulldogs associations....... 316 Figure 7.15 Leopards associations...... 317 Figure 7.16 Positioning map of the various South African rugby teams according to their winning performance and brand equity score 321 xvi
LIST OF TABLES Table1.1 Provincial, regional and national rugby teams of South Africa 6 Table 2.1 Currie Cup attendance figures for 2000 to 2003...... 49 Table 2.2 Super 12 attendance figures for 2000 to 2003..... 56 Table 2.3 Attendance figures for the 2000 to 2003 Tri-Nations played in South Africa.... 59 Table 2.4 Attendance figures for rugby tests played in South Africa in 2000 to 2003...... 60 Table 5.1 Summary of questionnaire... 176 Table 5.2 Number of respondents selected in each rugby province... 179 Table 5.3 Relevant statistical test..... 185 Table 6.1 Number of respondents in each rugby province... 200 Table 6.2 Cross-tabulation of gender by rugby area..... 202 Table 6.3 Descriptive information of age distribution (n = 496)... 203 Table 6.4 Comparison of the average age within rugby areas : ANOVA 205 Table 6.5 Degree of rugby support (n = 510).... 207 Table 6.6 Correlation between degree of rugby support and age... 208 Table 6.7 Comparison of males and females regarding degree of rugby support: T-test for differences in means........ 209 Table 6.8 Teams personally supported (N = 507)..... 211 Table 6.9 Percentage support for teams in each area..... 212 Table 6.10 How long supporters have supported their teams... 214 Table 6.11 Most admired rugby teams in South Africa... 215 Table 6.12 Cross-tabulation between the most admired rugby teams and the eight most supported rugby teams...... 216 Table 6.13 Descriptive information of number of games watched (n = 508)....... 217 xvii
Table 6.14 Descriptive information of number of games watched at a stadium (n = 497)...... 218 Table 6.15 Descriptive information on the amount respondents were prepared to pay for a ticket (n = 343)..... 219 Table 6.16 Average amount a team supporter was willing to pay for a ticket....... 220 Table 6.17 Descriptive information on the amount respondents were willing to pay for a rugby jersey (n = 402)........ 221 Table 6.18 Average amount a team supporter was willing to pay for a jersey 223 Table 6.19 Descriptive information on attitudes towards the industry (508 n 511)...... 224 Table 6.20 Comparison of males and females on their attitudes towards the industry: independent t-test......... 225 Table 6.21 Correlation between age and attitude towards the industry... 226 Table 6.22 Top-of-mind awareness of the regional rugby teams...... 228 Table 6.23 Top-of-mind awareness of the provincial rugby teams... 230 Table 6.24 Top-of-mind awareness of the national teams..... 231 Table 6.25 Awareness of the colours and logo of the Bulls... 234 Table 6.26 Awareness of the colours and logo of the Cats.... 235 Table 6.27 Awareness of the colours and logo of the Sharks.... 236 Table 6.28 Awareness of the colours and logo of the Stormers.... 237 Table 6.29 Awareness of the colours and logo of the Blue Bulls...... 238 Table 6.30 Awareness of the colours and logo of the Cheetahs... 240 Table 6.31 Awareness of the colours and logo of the Golden Lions.... 242 Table 6.32 Awareness of the colours and logo of the Natal Sharks..... 245 Table 6.33 Awareness of the colours and logo of Western Province... 246 Table 6.34 Awareness of the colours and logo of the Springboks.... 247 Table 6.35 What is the first thing that comes to mind when you think of the Bulls?.......... 249 Table 6.36 Complete the sentence: The Bulls are... 250 Table 6.37 What is most unique about the Bulls?.... 250 Table 6.38 What is the first thing that comes to mind when you think of the Cats?.......... 251 xviii
Table 6.39 Complete the sentence: The Cats are..... 251 Table 6.40 What is most unique about the Cats?.... 252 Table 6.41 What is the first thing that comes to mind when you think of the Sharks?.......... 253 Table 6.42 Complete the sentence: The Sharks are..... 254 Table 6.43 What is most unique about the Sharks?.... 255 Table 6.44 What is the first thing that comes to mind when you think of the Stormers?.......... 256 Table 6.45 Complete the sentence: The Stormers are..... 257 Table 6.46 What is most unique about the Stormers?.... 258 Table 6.47 What is the first thing that comes to mind when you think of the Blue Bulls?......... 259 Table 6.48 Complete the sentence: The Blue Bulls are.... 259 Table 6.49 What is most unique about the Blue Bulls?... 260 Table 6.50 Brand association of the Border Bulldogs..... 260 Table 6.51 What is most unique about the Border Bulldogs?.... 261 Table 6.52 Brand association of the Boland Cavaliers... 261 Table 6.53 What is most unique about the Boland Cavaliers?..... 262 Table 6.54 What is the first thing that comes to mind when you think of the Cheetahs?.......... 263 Table 6.55 Complete the sentence: The Cheetahs are..... 263 Table 6.56 What is most unique about the Cheetahs?... 264 Table 6.57 What is the first thing that comes to mind when you think of the Golden Lions?.......... 265 Table 6.58 Complete the sentence: The Golden Lions are... 265 Table 6.59 What is most unique about the Golden Lions?.... 266 Table 6.60 Brand association of the Leopards..... 267 Table 6.61 What is most unique about the Leopards?.... 267 Table 6.62 Brand association of the Mighty Elephants... 268 Table 6.63 What is most unique about the Mighty Elephants?.... 268 Table 6.64 What is the first thing that comes to mind when you think of the Natal Sharks?........... 269 Table 6.65 Complete the sentence: The Natal Sharks are... 270 xix
Table 6.66 What is most unique about the Natal Sharks?..... 270 Table 6.67 What is the first thing that comes to mind when you think of Western Province?....... 271 Table 6.68 Complete the sentence: Western Province is..... 272 Table 6.69 What is most unique about Western Province?... 272 Table 6.70 What is the first thing that comes to mind when you think of the Springboks?........... 273 Table 6.71 Complete the sentence: The Springboks are...... 273 Table 6.72 What is most unique about the Springboks?.... 274 Table 6.73 Descriptive information about statements referring to loyalty (506 n 511)......... 275 Table 6.74 Mean loyalty scores of each team..... 276 Table 6.75 Trust and confidence in the Border Bulldogs.... 282 Table 6.76 Trust and confidence in the Cavaliers.... 282 Table 6.77 Trust and confidence in the Eagles.... 284 Table 6.78 Trust and confidence in the Falcons...... 284 Table 6.79 Trust and confidence in the Griffons...... 285 Table 6.80 Trust and confidence in the Griquas...... 286 Table 6.81 Trust and confidence in the Leopards.... 286 Table 6.82 Trust and confidence in the Mighty Elephants..... 287 Table 6.83 Trust and confidence in the Mpumalanga Pumas.... 288 Table 6.84 Brand equity of the provincial, regional and national teams of South Africa....... 292 Table 7.1 Brand equity and winning performances of the provincial, regional and national rugby teams of South Africa........ 320 xx