In the highly competitive world of corporate sponsorships, aligning with major entertainment venues can be a strategic move for boosting visibility and consumer affinity. However, this strategy also comes with risks, as evidenced by the recent challenges faced by the retailer Co-op in its titular sponsorship of the Co-op Live arena in Manchester, England. Delays in the arena’s opening and a series of last-minute concert cancellations including A Boogie Wit Da Hoodie, Olivia Rodrigo and comedian Peter Kay, have created a complex scenario for Co-op, that experts say has impacted its brand perception negatively.
Strategic Intent vs. Reality
Co-op, known for its commitment to community values and ethical business practices, sought to expand its brand presence through a naming rights partnership with Co-op Live, envisioned to be one of the UK’s largest and most technologically advanced arenas. This venture was intended to not only enhance Co-op’s visibility across diverse consumer segments but also to align the brand with high-profile cultural and entertainment events, reinforcing its image as a vibrant and contemporary retailer. However, the persistent delays in the construction and eventual opening of the arena, compounded by logistical challenges leading to abrupt concert cancellations, have painted a different picture. These operational issues have significant implications, from logistical nightmares for event organisers to disappointment and frustration for ticket holders, which in turn pose a risk to Co-op’s cultivated brand image.
“A staggering £100 million sponsorship deal for 15 years sets high expectations, but the reputation impact for Co-op due to these delays could tally up to millions in damaging PR,” notes Ed Watson, a PR expert with over 20 years in communications management. “It’s interesting to note the minimal visibility of other major stakeholders in the public narrative. Despite significant involvement from City Football Group and Oak View Group, and even celebrity linkage through Harry Styles’ Erskine Records, it’s predominantly Co-op that’s shouldering the negative publicity as it is the Co-op name above the door. This imbalance not only highlights the risks of title sponsorships in large ventures but also underscores the need for strategic public relations planning that safeguards all partners involved.”
Watson further elaborates, “This situation is a costly reminder that effective communication strategies cannot be limited to just a ‘Plan A’ or crisis management. There must be a robust plan in place for keeping stakeholders informed and onside throughout the project lifecycle. Transparency and proactive engagement are crucial in maintaining trust and managing public perception, especially in high-stakes partnerships like this one. The focus should be on an integrated communication approach that encompasses not just tackling crises but also ensuring continuous, open dialogues with all stakeholders.”
Impact on Customer Experience and Brand Loyalty
For many fans and event-goers, the anticipation of attending a high-profile concert or event can quickly turn into disillusionment if faced with last-minute cancellations. Such experiences not only dampen consumer enthusiasm but also directly impact their perception of the Co-op brand. Despite Co-op’s non-direct role in the operational aspects of the arena, the brand sponsorship ties its image closely to these events, making it partly accountable in the eyes of consumers. These disruptions translate into more than just immediate financial losses from refunds or event relocations; they can erode customer trust and loyalty, which are critical to Co-op’s business model focused on community trust and support. The negative publicity surrounding these events, especially if amplified by social media, can lead to long-term brand damage.
“Co-Op Live have done a lot of damage with their delayed launch”explains Haddy Folivi, publicist and brand expert. “Top acts such have been forced to postpone their gigs, and their fans are understandably fuming. It takes a lot to plan a night out, from booking days off work, to planning outfits and arranging childcare, and gig goers have got long memories, so I believe that this will impact buyer’s confidence in the long term.”
“Citing safety concerns is not enough damage limitation” continues Folivi. “Concert goers expect that a £365million venue would have factored in rigorous testing and launched on time, and the effects of making this public long term is that people will lack trust in the venue overall. Top acts will be reluctant to hold events there in the future, as it could affect their brand reputation. Music fans are unforgiving, and they talk with their wallet and via social media, so this is not looking good overall.”
Financial Implications and Strategic Reevaluation
The financial ramifications of the delays to the venue owners extend beyond the direct costs associated with event cancellations. There are broader financial implications such as lost revenue opportunities from merchandising, concessions, and partnered promotions initially planned around the events.
From a strategic standpoint, Co-op may need to reevaluate its sponsorship criteria and risk management frameworks to better mitigate such scenarios. This could involve more rigorous due diligence processes, enhanced contingency planning, and perhaps a more conservative approach to high-risk, high-reward ventures.
The Road to Recovery
For Co-op to navigate out of this challenging situation and minimise long-term brand damage, a multifaceted approach is necessary. First, transparent and consistent communication with all stakeholders—ranging from customers to partners and the general public—is crucial. Apologies from the venue owners as well as the title sponsor, coupled with clear explanations and updates about the steps being taken to address the current issues, can help rebuild trust. Moreover, Co-op could insist on the venue enhancing its customer service protocols during such disruptions, offering not just refunds but also additional compensation or perks to affected customers. Such gestures can go a long way in preserving customer relationships.
The Co-op should perhaps use this experience to fortify its brand narrative around resilience, safety and commitment to customer satisfaction. By actively engaging in problem-solving and showcasing its dedication to upholding its community and customer-centric values, even in the face of adversity, Co-op can turn these challenges into testimonies of its brand strength and reliability.
Kellie Whitehead, UK Communications Director at Tish Tash feels that this communications situation is not at crisis point for the brand yet:
“It’s unfortunate for the brand in many ways, but the barrage of negative coverage is amplified towards venue owners Oakview Group and construction company BAM due to disruption and inconvenience to acts and ticket holders – this in itself however makes it a ‘social’ story – rather than purely business or construction based.”
“And it is in this ‘social story’ that Co-op has the opportunity to engineer itself within. As the crisis continues, media coverage has lent itself to the disappointed public and the individual tales of the disgruntled, let down and truly saddened families and friends who have been unable to see their favourite artists on stage” Whitehead continues.
“Health and Safety willing, and completion certificate in hand, this 15 year naming rights deal is a positive for the Co-op brand in many ways. Once fully operational, these embarrassing teething issues will hopefully become quickly forgotten – and better this than the unthinkable for the general public’s wellbeing.”
The ordeal of the Co-op Live arena presents a critical learning curve in balancing ambitious marketing strategies with operational realities and risk management. Whilst the immediate repercussions may paint a grim picture, the long-term brand equity of Co-op will depend on how effectively it manages this crisis and realigns its strategies to prevent future mishaps. Through proactive engagement and strategic adjustments, Co-op has the opportunity to not only recover but also emerge stronger, as a trusted community retailer and the title sponsor of what is still due to be a revolutionary and cutting-edge venue.
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