Event sponsorship by alcoholic and non-alcoholic drinks businesses in India.

Abstract

Purpose – This paper aims to examine event sponsorship decision making by the Indian drinks industry, comparing the non-alcoholic and alcoholic drinks sectors. Design/methodology/approach – Data regarding event sponsorship activity, perceptions of event sponsorship, motives to sponsor, form of investment and structure of sponsorship was obtained from a sample of 61 drinks producers in India through a questionnaire. Mann-Whitney and logistic regression were employed to compare the alcoholic and the non-alcoholic sectors. Findings – The results suggest that the alcohol and non-alcohol drinks sectors sponsored a similar level of events, but in investment volume terms, sponsorship from the non-alcoholic sector is far greater than that of the alcoholic sector. While the two sectors are similar in many ways, the emphasis placed on certain motives for sponsoring events was different, with alcoholic drinks businesses placing greater importance on reaching niche audiences and increasing media coverage than non-alcoholic ones. Research limitations/implications – A limited number of areas of the sponsorship decision-making were covered, yet the study provides insights into the decision making of one of the key sponsoring industries: the drinks industry. Practical implications – Securing sponsorship is becoming more difficult and complex. By understanding how sponsors make decisions, including potential variations between companies within an industry, event organisers will be in a better position to tailor sponsorship proposals, enhancing the likelihood of obtaining the desired sponsorship contracts. Originality/value – Most sponsor decision-making research focuses on how sponsorship decisions can be improved so that they work better for the sponsor. This paper, in contrast, emphasises that by understanding how clients make decisions (i.e. sponsors), sellers (i.e. the sponsored) will be in a better position to win over competition and secure the desired sponsorship deals.