NEDBANK GROUP SPONSORSHIPS Group Strategy and Corporate Affairs Group Sponsorship Policy. 01st January 2009
1) General: 1. A) Background 1. B) Sponsorship Strategy, Objectives and Selection 2. A) Why soccer is a desirable property 2. B) Nedbank Soccer sponsorship portfolio 3. A) Why Road Running is a desirable property 3. B) Nedbank Road - Running sponsorship portfolio
2) Soccer (football)
3) Road Running:
4) Golf:
4. A) Why Golf is a desirable property 4. B) Nedbank Golf Sponsorship portfolio
5) Sport for Disabled:
5. A) Why Sport for the Disabled is a desirable property 5. B) Nedbank Sport for the Disabled Sponsorship portfolio
6) Strategic Initiatives:
6. A) Why the need for s/ships in strategic markets 6. B) Nedbank Strategic Initiatives sponsorship portfolio
7) Brand Ambassadors
7. A) Definition 7. B) Roles 7. C) Duties
The content of this document is confidential and proprietary to Nedbank Limited and should be treated as such by any person being exposed to it. Copyright subsist in this document and no part of it may be copied, reproduced or transmitted, in any form or by any means, without prior permission of Nedbank Limited. Nedbank Limited, 2003.
Group Sponsorship Policy, Strategy and Leverage
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1) GENERAL:
1. A) Background: Historically and up until recent times, because of the Nedbank brand
positioning, the Nedbank sponsorship strategy has focused exclusively on properties aligned mainly to the high-end Retail, Corporate and Capital business unit target markets. In line with the new Group strategy and brand positioning, the role of sponsorships has been re-assessed and where appropriate, new and more relevant properties secured and leveraged to support the revised brand stretch target market, (i.e. mass and lower-end markets) and the brand-repositioning program – a challenger brand strategy! In addition, there are significant opportunities for Nedbank to collaborate with Old Mutual South Africa in both existing and new sponsorship properties, through aligning initiatives and properties where appropriate. Sponsorships also provide visible support to the group strategy of being highly involved in the community and environment. The revised Nedbank sponsorship policy was formulated to focus on and cater for an ever - changing market. It has been designed to provide a tool in the marketing mix that supports the Nedbank brand repositioning and overall business strategy. In order to ensure consistency in the repositioning process of the Nedbank brand, it is imperative that certain guidelines are adhered to when dealing with properties pertaining to sponsorships and related matters (donation requests etc). Such guidelines impact on group marketing, line marketing and line businesses.
1. B) Sponsorship Strategy, Objectives and Selection: In broad terms, sponsorship
strategies comprise: Positioning: Tactical: Appeals to the bulk of the Nedbank target market. Provides platforms for corporate hospitality and networking. Is where a clear and defined fit exists between the sponsored party or activity and a present or future internal business objective.
Nedbank has a excellent opportunity to maximise its brand stretch and full spectrum banking goals through a proposed integrated 5 dimensional approach where Sport and event Sponsorship can drive mass awareness and profile and compliment the thrust of the Nedbank Affinities and the Nedbank Foundation together with targeted / niche sponsorships in central strategic markets. To ensure focus, Nedbank has primarily selected various generic and some more specific properties in which to plough resources with the belief that the selected sponsorships will support the business objectives. The Nedbank sponsorship strategy takes into account the Group’s “Deep Green” strategic aspirations and therefore eliminates certain components that are automatically disqualified in principle from the selection process. In broad terms therefore, Nedbank will only consider events, activities or organisations where the association created will positively change the consumer’s perception of Nedbank and have a positive impact on the repositioning of the Nedbank brand and the overall Nedbank business strategy. Conversely, Nedbank will not consider or participate in sponsorships pertaining to: Religious Groups / Political parties and related activities. These can be very sensitive areas and furthermore, sponsorship decisions must be based on the ability to derive a tangible business return on marketing investment. Blood sports / Gambling (horse racing etc). / Environmentally unfriendly related activities. These are in conflict with the Nedbank brand value and positioning. Activities or events engaging direct competitor activity or other high profile sponsors who enjoy high level association / awareness, (Nedbank will also protect the Old Mutual brand where ever possible.) Joint sponsorship can dilute leveraging opportunities. Groups, teams, clubs and individuals (including staff) (excluding selected Brand Ambassadors) this can set precedents.
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Regional / Provincial bodies or activities. Precedents can be set and this activity normally starts a ripple effect. Once off unsustainable activities or events unless there is an immediate tangible business return.. Events or activities that are exclusionary on the basis of race, religion, colour, gender or disability. Travel costs to attend events. There is little to be gained from sponsoring airfares.
Using the afore – mentioned criteria, Nedbank has therefore selected components from desirable sponsorship properties from various portfolios that have the potential to support the Nedbank brand and assist in achieving business objectives:
Sport:
Soccer (football) & Golf: Portfolio Manager: Stuart Le Pere Road Running: Portfolio Manager:
Patrick Baransky
Sport for Disabled: Portfolio Manager:
Grahame Jones
Strategic Markets: Business transformation initiatives: BEE activities Wine related Portfolio Manager: Grahame Jones
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2) Soccer - (football):
1. The sport (the people’s game) appeals to a wide segment of the economic population, therefore ideal to use as a vehicle to engage the mass market. 2. Mass participation sport providing opportunities for community involvement. 3. Followed in the main by wide spectrum of black spectators (emerging / mass market). 4. Nedbank Cup is a knockout competition as opposed to a team sponsorship thus alleviating the risk of team relegation and compromising the Nedbank brand. 5. The volume of participants and spectators offer an ideal opportunity to drive transactional banking. 6. Indirect association to South Africa hosting FIFA World Cup in 2010 7. Excellent brand stretch anchor.
2. A) Why soccer is a desirable property:
2. B) Nedbank Soccer Sponsorship Portfolio: 5.B.1. The Nedbank Cup: South Africa’s premier knockout cup
contested between the 16 Premier League, 8 First Division and 8 amateur clubs.
Date
Custodian: National Soccer League Title Sponsor: Nedbank Contract in place until end 2012 Event Calendar 2009
Venue
23rd Feb
th th
Event
Official Launch / Last 32 draw Matches - Last 32 Matches - Last 32 Matches - Last 32 Last 16 Draw Matches – Last 16 Matches - Last 16 Matches - Last 16 Quarter Final Draw Quarter finals Quarter finals Semi Final draw Semi Final Semi Final Final
Nedbank HO. Jhb TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA
07 March 08 March 11th March 12 March 18 March 21 March 22 23
nd rd st th th
March March
11th April 12 April 14 April 25th April 26 April 23 May
rd th th th
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3) Road Running:
1. The sport appeals to a wide segment of the economic population, therefore ideal to use as a vehicle to engage the mass market. 2. Mass participation sport providing opportunities for community involvement. 3. Followed in the main by younger black spectators (emerging market) and the older white market (current market). 4. Not a team sport thus alleviating the risk of relegation and compromising the Nedbank brand. 5. Provides competition whilst aspiring to beating your personal best as opposed to the opposition. This aligns fully with the new psycho graphic halo. 6. Volumes of participants & spectators offer an ideal opportunity to drive transactional banking. 7. The cost of sponsoring the sport is low when compared to other mass-market sports such as football, cricket and rugby, which are all currently over-sponsored.
3. A) Why Road Running is a desirable property:
8. Comrades Marathon remains a truly unique South African flagship event. 3. B) Nedbank Road Running Sponsorship Portfolio: 3. B.1. Nedbank City Marathon and Matha Series
Date Saturday 17thJanuary Sunday 08th February Sunday 22nd March Saturday th 04 April Saturday 04th July Saturday 29th August Saturday th 05 Septem th Sunday 27 September th Sun 04 October Sunday 01st November NB: 2009/10: Event Nedbank Matha Series Nedbank City Marathon Series (inc. SA marathon champs) Nedbank City Marathon Series Nedbank Matha Series Nedbank Matha Series (inc SA half marathon champs) Nedbank Matha Series – (inc SA 10km champs) Nedbank Matha Series Nedbank City Marathon Series Nedbank Matha Series Nedbank City Marathon Series Venue Tshwane Gauteng Durban KZN Johannesburg Gauteng Nelspruit Mpumalanga Port Elizabeth Eastern Cape Stellenbosch Boland Bloemfontein Free State Cape Town Western Province Polekwane Limpopo Soweto Gauteng Custodian: Athletics South Africa (ASA). Title Sponsor: Nedbank. Contract in place until end 2010. 2009 Event Calendar.
4xCity Marathons 42.2km incl. 10/5km mass participation events 6 x short series events, comprising 21/10/5k events
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2. B.2. Comrades Marathon (89km)
Custodian: Comrades Marathon Association. Headline Sponsors: Nedbank, Bonitas, Flora. Date: Sunday 24th May (Down run) Pietermaritzburg to Durban Contract in place until end 2010.
3. B.3. Additional 2009 Nedbank Title / co - event Sponsorship Road Races:
Nedbank Outeniqua Marathon: Sat 25th April - George. Nedbank Om Die Dammetjie: Sat 12 September - White River. Old Mutual Two Oceans (56km): Sat 11 th April - Cape Town.
th
3. B.4. Strategic Support:
Title Sponsor of Nedbank Runners’ Guide to Road Races In South Africa. Nedbank Runners’ Guide Summer Race dates with Comrades Feature. Nedbank Runners’ Guide Winter Race dates with Beginners Feature. Nedbank Runners’ Guide Newsletter (produced fortnightly)
3. B.5. Nedbank Running Club:
Introduced by Nedbank in 2008 to cater for the needs essentially for Nedbank staff and customers though clubs remain open to all comers. The program includes 11 clubs spread throughout South Africa and is be managed by well known running icons Bruce Fordyce, Nick Bester and Zet Sinqe. The Nedbank Running Club will focus on middle distances that are in line with the objectives of ASA and membership and participation of youth, women and athletes with disabilities will be encouraged.
3. B.6. Brand Ambassador – Hendrick Ramaala (see 7)
Participated in 5 New York Marathons winning in 2004, 2 nd place in 2005, 3rd in 2007, 12th in 2008. Rated as one of the worlds top 10 marathon runners Participated in 4 consecutive Olympic Games including Beijing 08 SA Record holder 21.1 km SA Record holder 10km 2006 - Won 3 Nedbank Matha Series titles Participated in 5 World Track & Field Championships
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4)
Golf:
1. Key target market aligned to an emerging sport in SA – (Strong emergence / fastest growing sport of women and black golfers). 2. The sport appeals to the upper section of the economic population, a very important part of our income stream. 3. As the sport is highly aspirational, it fits our Deep Green aspiration of “Most respected and aspirational brand”. Encompasses qualities of honesty, integrity, determination and the ability to compete in an individual capacity in the quest for personal achievement, perseverance and excellence 4. Not a team sport thus alleviating the risk of relegation and compromising the Nedbank brand. 5. Provides competition whilst aspiring to beating your personal best as opposed to the opposition. 6. The sport is relatively uncluttered in relation to other sports like soccer, cricket and rugby, which are all currently over-sponsored, and where all Nedbanks competitors already have a presence. 7. Offers synergy with Old Mutual specifically with the Nedbank Golf Challenge (eg: international broadcast) and the Nedbank SA Women’s Golf Tour. 8. The Nedbank Golf Challenge is regarded as a truly South African brand / event and a flagship property alongside the Pick’n Pay Argus Cycle Challenge, Comrades Marathon and the Durban July (Vodacom). 9. Nedbank has nurtured strong equity in golf over 20 years thus giving great credibility and a perception of ownership that in turn offers preferential “inside track” opportunities.
4. A) Why Golf is a desirable property:
4. B) Nedbank Golf Sponsorship Portfolio: 4. B.1. The Nedbank Golf Challenge:
Custodian: Sun International. Title Sponsor: Nedbank. Date: 03rd – 06th December 2009. Sun City. Contract in place until end 2011.
Regarded as South Africa’s premier golf tournament where 11international golfers (including current champion) are invited from world ranking list with South African order of merit winner securing 12th slot.
4. B.2 The Sports Trust Golf Challenge:
Custodian: The Sports Trust. Date: 07th December 2009. Sun City. Contract in place until end 2011.
A Nedbank / Sun International initiative, intrinsically linked to the NGC this event remains one of South Africa’s premier fund raisers with the funds raised on the day after the NGC going direct to The Sports Trust. Four balls remain in high demand attracting high profile Corporates who participate on a regular basis. The event raises a minimum of R1 million which The Sports Trust in turn allocates to worthy sport development projects throughout South Africa.
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4. B.3. The Nedbank Affinity Cup (A Sunshine Tour Event): Custodian: Southern African PGA Tour .
Title Sponsor: Nedbank. Contract in place until end 2009 Date 30th November – 02nd December 2009 - Lost City Golf Course
Played over three days before the NGC, the tournament provides for local professional golf development and CSI opportunities that enhance and support the current positioning of Nedbank being the “CARING / AFFINITY” bank. NAC will: give a broader understanding and bolster the meaning of Affinity as well as: •Support Nedbank’s “Official Banker of The Sunshine Tour” status •Heighten Nedbank’s golfing presence at the end of the year •Ensure a more meaningful golfing experience for Business Units’ clients in that they will be playing with professional golfers in a Sunshine Tour sanctioned event. •Allow the winning professional golfer to select the beneficiary from a list of Nedbank nominated projects. Nedbank will then make a donation (equal to the winners cheque) to the project •Give Nedbank clients the opportunity to play in an official professional event •Give Nedbank high profile (low cost) sponsorship entry to the “Sunshine Tour” program •Give Nedbank golf dominance for 9 consecutive days •Help alleviate the pressure from clients to play in the NGC pro-am •Give substance to our Proudly South African positioning
4. B.4. Strategic Support: 4. B.4.1. Official Banking Partner Sunshine Tour:
Custodian: Southern African PGA Tour . Rights Holder: Nedbank. Contract in place until end 2009
The partnership was born out of the need for a closer working relationship with the local PGA who had been courted by Sun International to sanction and secure world ranking points for Nedbank Golf challenge. The sponsorship offers hospitality and branding opportunities and exposes Nedbank to all players on the Sunshine Tour. All members / players / employees are incentivised to make use of the Nedbank Voyager credit card as well as other Nedbank products.
4. B.4.2. Brand Ambassador - Ashleigh Simon (see 7)
2007 - SA WPGA Ladies Open (WPGA Tournament) 2007 - SA Amateur Strokeplay & Matchplay Champion 2007 - Catelonia Ladies Masters Champion (LET Pro Tournament 2006 - Nedbank Ladies Masters WPGA Pro Tournament 2006 - Sanlam Ladies SA Amateur Strokeplay & Matchplay Champion 2006 - Gauteng North Strokeplay Champion 2005 - Pam Golding International SA Open (WPGA Pro Tournament) 2005 – Leading player on Order of Merit for 2005 WPGA Tour Gauteng North Champion
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5) Sport for Disabled:
1. Depicts beating your personal best, including overcoming a physical disability through determination. Commands respect and pushing beyond boundaries, key elements of Deep Green values. 2. Emotional pull of a wide segment of the economic population providing a vehicle to engage the mass market. 3. The sport is participation based, providing opportunities for community involvement. 4. Nedbank is the only bank currently involved in the sport, ensuring a competitive advantage. 5. It is the “right thing to do” 6. The cost of sponsorship is low when compared to other sports that enjoy TV coverage. 7. Not a team sport thus alleviating the risk of relegation and compromising the Nedbank brand. 8. High success of last 4 Paralympic Teams has created high profile role models and winners. 9. Nedbank involvement since the 1992 Paralympic Games has ensured strong equity in the sport. 10. No stigmas such as quotas etc. NB: See annexure “C” for statistics on disabled.
5. A) Why Sport for the Disabled is a desirable property:
5. B) Nedbank Sport for the Disabled Sponsorship portfolio: 5. B.1. South African Paralympic Team:
Custodian: SASCOC Sponsors: Nedbank (official banking partner) Coca-Cola, Mercedes Benz, PicknPay, PUMA, South African Airways, Sasol, Sun International, Telkom, Vodacom. Dates- September 2012 Paralympic Games London. Contract in place until end 2012.
5. B.2. Nedbank National Champs for Physically Disabled:
Custodian: South African Sports Association for Physically Disabled. Title Sponsor: Nedbank. th 04th – 11 April 2009 – Port Elizabeth Contract in place until end 2012.
5. B.3. The Nedbank SA Disabled Golf Open:
Custodian: South African Disabled Golf Association. Title Sponsor: Nedbank. Date: 20th – 23rd April 2009 – Rand Park Ridge: Johannesburg Contract in place until end 2011.
The tournament provides for golfers of all physical disabilities and represents an Confidential Nedbank Marketing Division Nedbank Limited Page 9 of 13
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emerging market that has shown significant growth. The tournament attracts International participation and is gathering momentum due to additional interest being shown by supporting sponsors including Telkom and Bells Whiskey.
5. B.4. Strategic Support: 5. B.4.1. Brand Ambassador - Oscar Pistorius (see 7)
2004 - Paralympic Games – Athens Greece won gold medal in 200m (world record) and bronze in 100 m track Current world record holder in IPC 100m, 200m, 400m track events 2006 – gold medals in 100m, 200m - VISA World Cup – Manchester 2005 / 6 / 7 – gold medals and SA records in 100m, 200m, 400m, at Nedbank national Championships for physically Disabled 2007 finalist for Laureus Award for “International break through” category (TBA in 2008) Oscar has been campaigning to run in able bodied Olympics with final decision awaited. Training for Paralympics – Beijing 2008
6)
6a)
Strategic Market Initiatives:
Why the need for sponsorships in strategic markets:
Strategic initiatives are aimed at niche demographic markets that are encompassed by the new Nedbank halo with a main emphasis on transformation.
6b)
Nedbank Strategic Initiatives Sponsorship Portfolio: 5b.1) Business Women’s Association.
BWA – Naming rights – “sponsored by Nedbank” BWA - Corporate Women in Leadership Census - May Jhb BWA Businesswomen of the Year Awards - 07th August Jhb The BWA Regional Businesswomen Achiever Awards (partnership) Contract in place until end 2009.
The BWA is the only Government recognised association of women in business. It was formed 6 years ago through the amalgamation of 3 previous associations with Nedbank acting as “matchmaker. Although a relatively small membership (+/- 2300 paid up members), its area of influence is great particularly at Government level where the BWA is frequently consulted on gender issues a matter high on the Government agenda. Women in business are a strategic target market for Nedbank as evidenced by the future supporting role of Business Banking Division.
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6b.2) Cape Winemakers Guild.
CPT Showcase – 20 August Nedbank CWG Gala Dinner Jhb – 26th August JHB Showcase – 27th August th Nedbank CWG Gala Dinner Cape Town – 30 September nd Cape Town Final pre auction tasting Spier – 02 October rd Auction 03 October Spier Contract in place until end 2011.
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Nedbank has a proud history with CWG that provides Nedbank with excellent client hospitality and branding opportunities. The CWG represents the top 38 wine makers in South Africa. The CWG Development Trust works with Nedbank to assist the families of the farm workers. The Nedbank sponsorship further supports the business initiatives of Business Banking Division who have long been a major supporter to the wine industry in SA providing full spectrum banking in support of the entire business chain - from growing through to bottling.
6.b.3) Nedbank Old Mutual Budget Speech Competition: 11th Feb 2009 - Cape Town
2009 marks the 36th anniversary of this unique competition in partnership with Old Mutual (SA) and the National Treasury which has as its core objective the "Growth of economic excellence in South Africa". The competition focuses on all economic students and post - graduate students specialising in economics eventually identifying the top 10 students in each category. Prize - winners are recognised at a banquet on the evening of the reading of the national budget at which the Minister of Finance is the guest of honour. Appropriate clients of both Nedbank and Old Mutual are invited to attend the banquet which provides a unique form of hospitality.
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7) Nedbank Brand Ambassadors:
Whilst Nedbank does not entertain the sponsorship of individuals (as outlined in the main policy) Nedbank reserves the right to appoint “Brand Ambassadors” to add value to sponsorship properties where Nedbank has entered into formal contracts in accordance with the sponsorship policy. The Definition, roles and duties of a Nedbank Brand Ambassador are clearly outlined below: 7a) Definition:
Nedbank Group Sponsorships defines a Brand Ambassador as a contracted loyal and loud advocate that represents and spreads goodwill in the name of Nedbank and its products and services. Nedbank Brand Ambassadors are South African role models that are synonymous with selected and respective Nedbank sponsorship properties. Nedbank will only appoint Brand Ambassadors where formal sponsorship contracts are in place with respective rights – holders / custodians and where it is deemed that the Brand Ambassador will add value to the overall promotion and association of the respective sponsorship contract. Nedbank will only appoint one Brand Ambassador per sponsored property and the Brand Ambassadors contract will be aligned to the timing of the respective sponsorship contract. Nedbank Brand Ambassadors must: Attend an introductory session to gain a broad understanding of the Nedbank “Deep Green” vision and strategy. Update sessions may be held from time to time if Nedbank deems it necessary. Be passionate about Nedbank’s values and brand and the respective sponsorship property to which they are associated. Possess and demonstrate the highest integrity, credibility and be regarded as South African role - models in their respective activities and communities as well as by the general public at large. Understand the values of (and display) honesty, empathy and humanity as pre – requisites that empower them to become trusted representatives of the Nedbank brand. Utilise Nedbank for personal banking requirements and services.
Nedbank Brand Ambassadors are NOT: Official Nedbank spokespersons. Sales representatives responsible for pushing product. Appointed as PR agents. Regarded as sponsored individuals. Political appointments. Appointed or contracted employees of Nedbank sponsored entities. Brand Ambassadors or sponsored entities of other financial institutions unless approved by Nedbank.
7b)
Roles:
A Brand Ambassador can be used (where it is deemed to be appropriate) to promote the association and goodwill between the Nedbank brand and the selected / respective sponsored property to: Nedbank staff, clients, shareholders, stakeholders and regulators. Associate companies. Specific Nedbank target markets. The general public. Nedbank Limited Page 12 of 13
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7c) Duties:
Duties and obligations of Nedbank Brand Ambassadors are determined and agreed upon by both parties who enter into formal and legally binding contracts that are limited to a period of time not exceeding the termination date of the respective sponsorship contract. Nedbank will secure (without obligation) a first right of renewal contract with each selected Brand Ambassador. Contracts may be extended by mutual agreement if both parties so desire. Such contractual duties and obligations may include but are not restricted to: Public appearances where Nedbank has a direct or vested interest. Officiating at prize giving ceremonies / functions at Nedbank sponsored events. Attendance at Nedbank Executive Committee road shows or functions. Nedbank branch launches. Nedbank product launches. Media launches and conferences. Appearances at and linkage to Nedbank or Nedbank Foundation CSI projects and functions. Topical speaking engagements delivered to appropriate audiences. Use and association of name, images or voice in Nedbank media related print, electronic, radio or TV, interviews or advertising campaigns. Endorsement (but not the sale of) of products and services and respective sponsored properties. Displaying (where required) the Nedbank logo on appropriately branded apparel and equipment for brand projection purposes.
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