29/05/2024 12comments  |  Jump to last

Cazoo, the online car retailers who were Everton's shirt sponsor from 2020-22, entered administration yesterday following an aggressive and high-profile sponsorship strategy, report The Sponsor.

"The company's downfall highlights critical lessons for other brands considering similar approaches. Here’s a detailed look at why Cazoo's sponsorship strategy failed to yield the desired results and what other brands can learn from this expensive misstep.

"While sponsorships can generate significant brand awareness, their true power lies in engaging audiences beyond mere visibility. Without meaningful activation and genuine connection to the audience's passions, sponsorships become an exorbitantly costly form of advertising that fails to influence consumer behaviour effectively.

"In Cazoo's case, the lack of engagement meant that their extensive sponsorship portfolio did little more than put their logo in front of millions without fostering the deeper relationships needed to drive brand loyalty and purchasing decisions."

» Read the full article at The Sponsor

Reader Comments (12)

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Michael Kenrick
1 Posted 29/05/2024 at 16:35:14
The sponsorship model has always puzzled me. How can it possibly be a cost-effective means for exposure, advertising and brand recognition?

Yet it obviously forms a major component of many companies' strategy and has provided vast sums to football and a host of other sports… so what do I know?

Danny O’Neill
2 Posted 29/05/2024 at 16:40:42
Reading that, Michael, it seems they went for quantity over focusing over a few. Basically, they spread their wings too far.
Martin Farrington
3 Posted 29/05/2024 at 18:20:45
Yup. I've never understood commercial Sponsorship.

Advertising is equally shit. Tax evasion if you have the right accountant is all I can think of.

Kim Vivian
4 Posted 30/05/2024 at 08:35:32
Tax evasion?

Each £100,000 spent on corporate sponsorship will save approx £25,000 in corporation tax (assuming the sponsor is turning a profit). Obviously the intention of sponsorship is to increase revenue and by extension profit, but sponsorship for tax evasion?

Hardly worthwhile is it?

I haven't read the article yet but Danny has probably nailed it. Simply overstretched themselves and chose unwisely. Not a rare occurrence in business.

Paul Kossoff
5 Posted 30/05/2024 at 15:32:58
We are the opposite of King Midas, everything he touched turned to gold, everything we touch turns to? Fill in your answer. And isn't a cazzoo a primitive cheap musical instrument? 😀
Peter Mills
6 Posted 30/05/2024 at 20:32:34
A sponsor of a Premier League club told me they were watching a game on telly to check how many times per minute their company name appeared on the hoardings around the pitch.

I assumed it was to do with the number of people watching the game, but I was told it was much more important how often that name would appear on the screens of those playing FIFA 23 (or the current manifestation of that game).

Ian Bennett
7 Posted 30/05/2024 at 21:09:03
I'd spin it a different way.

They stopped sponsoring and went bust after they left.

Nothing is the same after Everton...

Mick O'Malley
8 Posted 31/05/2024 at 15:20:51
Paul @5 I was thinking the same, "Once Everton have touched you"
Derek Thomas
9 Posted 01/06/2024 at 07:53:11
Paul Kossoff @ 5; the Hollies nailed it back in the 60s...

"He's King Midas with a curse
He's King Midas in reverse"

Jerome Shields
10 Posted 01/06/2024 at 08:00:57
HMRC are probably a creditor.
Jack Convery
11 Posted 01/06/2024 at 10:21:09
Once Everton has touched you!
Dean Johnson
12 Posted 27/06/2024 at 07:38:27
Or, they went bust when the bottom fell out of the used car market and BCA owned all the auctions.

Cinch haven't gone bust, why? Because they are owned by BCA who have all used car disposal contracts with all the major manufacturers.

One day you hope for honesty and openness, seems like bullshit season is on full swing. That's why Cazoo went bust.

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