"We see a steady rise of fantasy platforms providing a new sponsorship opportunity for brands to engage with fans" - Paroksh Chawla, CEO, ITW Catalyst
ITW Catalyst, an ITW division that specializes in sports, entertainment, and media consulting, negotiated 20 sponsorship deals for several clubs in the Indian Premier League (IPL) and Women's Premier League (WPL). The consultancy firm expanded its portfolio to include Goel Group, Happilo, Mahindra, Coca-Cola, Hindware, ITC, Herbalife Nutrition, and others, and negotiated deals worth over INR 150 crore for teams competing in the ongoing T20 season.
The firm also played a critical role in the WPL's recently concluded inaugural season, assisting franchises such as Royal Challengers Bangalore (RCB) in obtaining the front of the jersey (Kajaria) and leading trouser leg sponsors (Vega Beauty), as well as body care sponsor for UP Warriorz (UPW).
Sportskeeda Business of Sports got an exciting opportunity to pick the brains of Mr. Paroksh Chawla, CEO of ITW Catalyst. He talks about the vivid relationship between a brand and a sports team and also explains how relationships in sports matter to give the best results.
Paroksh Chawla, ITW Catalyst CEO on behind-the-scenes deal-making of brands and sports teams
1) ITW has worked with various IPL teams, and every team has different needs. Can you explain how ITW has customized its services to meet the needs of client teams?
Paroksh Chawla: Yes, we adopt a parallel process of mapping brand objectives to team initiatives, ensuring that both the brand and team have a natural synergy. We customize our services to meet the needs of our clients, and the first step to doing that is understanding the brand's goals and objectives. Every client has different goals, objectives, and activation requirements, and it's essential for us to work as an extension of the brand in order to provide customized services.
We also analyze the particular team's current marketing and sponsorship plans and map this against a brand's current marketing and sponsorship strategy to identify and develop a customized marketing and branding plan.
2) 10 teams in IPL now, which means an increased number of sponsors. How has ITW managed to expand itself to cater to the added teams and new partnership opportunities?
Paroksh Chawla: To expand its services to cater to the added teams and new partnership opportunities in the IPL, we have relied and focused on our years in the business of sports to build a strong network. We have this by building strong relationships with key stakeholders in the IPL, such as team owners, sponsors, broadcasters, and league officials.
This has helped us in staying up to date with the latest industry trends, identifying new partnership opportunities, and packaging opportunities for our clients. Simultaneously, our work speaks for itself, and ITW over the last 15 years has built a strong brand name and value by developing a unique value proposition, creating high-quality content, and consistently delivering exceptional service to our clients. This has helped ITW in attracting new clients, retaining existing clients, and differentiating itself from competitors.
3) It has always been difficult to measure the ROI when it comes to sponsoring sports teams. What metrics are most important for ITW in a successful sponsorship deal?
Paroksh Chawla: According to me, ROI is a combination of Return on Objective plus Opportunity plus Value of measurable elements in the partnership. Having said that, measuring the return on investment (ROI) of sports team sponsorship can be tricky. There are several metrics that we keep in mind while evaluating the success of a sponsorship deal. They are:
Brand awareness: One of the most important metrics is the level of brand awareness that the sponsorship generates. This is measured by tracking metrics such as website traffic, social media engagement, and media coverage.
ITW is proud to partner with @SBAandFBA As the Headline Sponsor.
ITW’s vision is to add value to any space where sport and business cross paths. We are delighted and honored to be a part of the Sports Business Awards that celebrate excellence in the business of sport. https://t.co/ysxuShazgd
Audience Engagement: Audience engagement is an important metric for measuring the success of a sponsorship deal. This can be measured by tracking metrics such as social media likes, shares, comments, and clicks, as well as in-person attendance at events or games.
Brand image: Another important metric is the impact on brand image. This can be measured by tracking metrics such as brand sentiment, brand favorability, and brand loyalty.
Sales: One of the main aspects of calculating ROI is the direct impact on revenue for the brand after sponsoring the event/team, which resulted positively on the overall P&L of the brand.
4) You said, “For us, at Catalyst, our relationships with both the teams and the brands are what ensures the perfect synergy, and that’s reflected in the partnerships we have facilitated this season.” Can you tell us how is Catalyst able to find or develop the synergy between the teams and brands?
Paroksh Chawla: To find or develop synergy between teams and brands for sponsorship, we at ITW Catalyst go beyond business to create a bond with clients and teams we work with. Our work ethic makes us who we are, but some of the SOPs we follow that set us apart are:
Understand the team's USP: We understand the team's brand and their unique selling proposition. This includes understanding the team's values, history, fanbase, and on-field performance to develop a customized sponsorship proposal for clients.
Understand team-brand synergy: Our customized sponsorship proposal highlights the synergies between the team and the brand. Details about how the sponsorship will benefit the brand, such as increased exposure, brand association, positive brand sentiment, develop content, etc.
Another golden association!
@KKRiders 🤝 @winzoofficial, facilitated by ITW Catalyst.
#ITW #Winzo #SportsBiz #ITWCatalyst #KKR https://t.co/ssRJdHurTR
Activate the sponsorship: Activating the sponsorship by assisting both brand and the team in developing their marketing campaigns that leverage the team's brand and the sponsor's brand. This includes developing content for social media, PR campaigns and press interactions, creating experiential marketing activations, and organizing fan engagement activities.
Measure the success of the sponsorship: In the end, we help both the team and the brand in measuring the success of the sponsorship by tracking metrics such as brand awareness, sales revenue, audience engagement, and ROI. This helps both the team and the sponsor evaluate the success of the sponsorship and make data-driven decisions about future sponsorship opportunities.
5) ITW has been focused on finding the correct alignment between brands and teams and not just finding the highest bid sponsor - is this your USP?
Paroksh Chawla: Yes, of course. This has been our USP since our inception, as we at ITW Catalyst are focused on finding the correct alignment between brands and teams because it leads to a more successful and sustainable partnership in the long run. While a high-bid sponsor may seem attractive initially, if there is no genuine connection between the brand and the team, it may not lead to a successful partnership.
Finding the synergy between a brand and a team means identifying shared values, target audiences, and goals. When a brand and team share similar values and have similar audiences, it can lead to a more authentic and effective partnership. The brand can benefit from the team's loyal fan base and association with the team, while the team can benefit from the brand's resources and expertise.
Moreover, when a brand and team are aligned, they are more likely to work together effectively and creatively, leading to a better return on investment for the sponsor. This can result in a more successful partnership, with both the brand and the team achieving their goals and objectives.
6) Can you briefly talk about what Catalyst has done most effectively to bring so many sponsorship deals between brands and IPL teams?
Paroksh Chawla: In order to bring in sponsorship deals between brands and IPL teams, Catalyst has relied on building strong relationships, a data-driven approach, and real-time information.
This involves understanding market behavior, identifying brand categories, and researching their business objectives and values, which is supplemented by our in-house research team at ITW. We are one of the only firms to place such value on data and research. The focus is on designing sponsorship packages to provide value and offer opportunities for exposure, activation, and engagement with end consumers.
partnership!
A ⚡ partnership!
"We are delighted to stitch together this partnership that brings a new age brand promoting sustainable energy through IPL, an imperative whose time has come." - Paroksh Chawla, CEO, ITW Catalyst
#ITW #SportsBiz #DelhiCapitals #BOLT #ITWCatalyst https://t.co/N01e8pVt8Q
7) How is making sponsorship deals different currently from what it was five years ago? Has Covid had any impact on it?
Paroksh Chawla: We understand the team's brand and their unique selling proposition, and the pandemic has had a significant impact on the sponsorship industry.
There has been an increased demand for engaging and snackable content as well as a digital and social media presence with a greater focus on virtual activations and digital campaigns to engage with fans. This has created new sponsorship opportunities that were not as prevalent five years ago. IPL teams have also created their own digital assets where viewership and fan engagement is very high, providing opportunities for brands to partner with assets too.
Alongside we see a steady rise of fantasy platforms providing a new sponsorship opportunity for brands to engage with fans.
There is a growing emphasis on sustainability in the sponsorship industry, and the IPL is no exception. Teams are now looking for ways to incorporate sustainability messaging and practices in their sponsorship activations.
8) What are the future plans of ITW?
Paroksh Chawla: The future plans for ITW consist of venturing into various new and unexplored domains of sports sponsorship as well as new territories, and the U.S. is an exciting market for us. We are also looking forward to expanding our network of sporting leagues in India as well as abroad.
Esports is a domain that I believe is very lucrative and holds huge growth potential, taking into consideration its following, especially the new generation. Sports tourism is another vertical we will be focusing on with ITW UXP, which stands for ‘ITW Unique Experiences’. While there are a lot of opportunities in outbound sports tourism, India has a huge potential to emerge as a sports tourism hotbed, with the IPL being one of the most followed and loved leagues throughout the globe.