IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

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1 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING AUGUST 6, CATEGORY UPDATE THE RETURN OF THE PHARMA CATEGORY Pharmaceutical companies increase use of sponsorship to educate consumers in targeted, relevant environments. Although it may not be as active as a decade ago when companies were partnering with everything from NASCAR teams to flower shows, sponsorship activity in the pharmaceutical category is slowly coming back to life. That activity continues to be driven by one primary objective: engaging consumers in a relevant setting and educating them about health issues. Among recent deals, Mylan, Inc. last week announced a new partnership with the MLB Pittsburgh Pirates, around which it will host the first-ever Pirates Allergy Awareness night at PNC Park on Friday, Aug. 10. The global manufacturer of prescription generic drugs will follow up the partnership with title of the Oct. 15 World TeamTennis Smash Hits event presented by Geico in Pittsburgh. The deal includes a tie to the WTT Pro League. And it doesn t end there. Novartis Pharmaceuticals Corp. and Genentech, Inc. are sponsoring the Fort Smith Women s Living Expo, State Fair of Texas and four other events on behalf of The Asthma Express, a public awareness campaign designed to educate consumers about allergic asthma. Novo Nordisk, Inc. in May expanded its title of a Chip Ganassi Racing IZOD IndyCar Series team with a tie to the series sanctioning body. The tie affords status as the official diabetes care sponsor of the IZOD IndyCar Series. In NASCAR, the COPD Foundation this year renewed title of the Drive4COPD 300 NASCAR Nationwide Series race at Daytona International Speedway through The organization uses the two-year-old sponsorship to raise awareness of chronic obstructive pulmonary disease. Drive4COPD also serves as the official health initiative of NASCAR. Despite the drug industry s highly regulated nature, at least one sponsorship vet believes there are more opportunities in the category IEG, LLC. ALL RIGHTS RESERVED. 1

2 There are certain restrictions you have to pay attention to, but if you can find the right company that can articulate their objectives and what they re trying to accomplish, there is fertile ground to put a program together, said Steve Lauletta, president of Chip Ganassi Racing Teams, which works with Novo Nordisk. Case Study: Novo Nordisk and IndyCar The maker of human insulin, injection devices and other products aligned with IndyCar driver Charlie Kimball in 2009 to raise awareness of diabetes and educate sufferers about treatment options. Kimball was diagnosed with Type 1 diabetes in Charlie had an inspirational story and was rising up the ranks of the IndyCar Series. It seemed like a natural partnership, said Sarah Spielvogel, Novo Nordisk s manager of product communications. Another reason for the sponsorship: the large number of IndyCar fans who suffer from the disease. Twenty-three percent of IndyCar fans are more likely to have diabetes than the general public, said Spielvogel. The fact that Charlie has diabetes but can still race at 200 miles per hour is a powerful message. Novo Nordisk communicates that message as well as its NovoLog FlexPen insulin delivery device through an onsite display that discusses Kimball s story and the advances in insulin treatment. The company will take the display to 10 races in To spread the word about FlexPen, consumers that visit the booth can write their signature on a replica of Kimball s car in exchange for taking a pledge to talk to a diabetes sufferer about the product. Race fans also can take the pledge on around which the company makes a donation to the American Diabetes Assn. and similar organizations. Novo Nordisk also uses the program to build relations with health care professionals. Kimball participates in medical presentations attended by physicians and company reps, said Spielvogel. Camille Lee, Novo Nordisk s corporate vice president of diabetes marketing, oversees the motorsports program. Tips On Working With Pharmaceutical Companies Below, IEG SR offers three tips when pitching and working with companies in the pharmaceutical industry. Provide informational messaging. Drug makers typically use sponsorship to educate targeted consumers about health issues, not promote products. For example, Amgen, Inc. activates the Amgen Tour of California with Breakaway from Cancer, a national initiative designed to raise awareness of resources available to people affected by cancer. The biotechnology giant promotes the program with the Breakaway Mile, a one-mile march by cancer survivors and their supporters at the final stage conclusion on each day of the seven-day race. They use the platform to talk about survivor stories and educate people about their resources, said Nick Baker, vice president of sales with AEG global partnerships, which owns and produces the event. In a similar vein, Mylan is using its new partnership with the Pittsburgh Pirates to educate consumers about lifethreating allergic reactions. The Pirates Allergy Awareness night will feature a special seating section for baseball fans that are allergic to peanuts IEG, LLC. ALL RIGHTS RESERVED. 2

3 The program gives us the ability to educate consumers about how serious these sorts of allergies are and give children and adults the opportunity to enjoy a baseball game and not worry about peanut allergies, said Aaron Cohn, the Pirates senior director of corporate sponsorship sales and service. 2012: Official diabetes care, IZOD IndyCar Series The team will hand-scrub seats and restrooms in the seating section to remove allergens and is working with venue concessionaries to make sure no products are sold that contain peanuts, he said. Watch out for industry regulations. Due to the highly regulated nature of the pharmaceutical industry, drug makers and properties need to be as careful as possible when it comes to product messaging. We re careful with everything we do. It all comes down to being balanced, transparent and straightforward, said Spielvogel. In addition to product messaging, drug makers also need to be careful in how they use tickets and other forms of client entertainment that may draw scrutiny. Novo Nordisk gets around that issue by sharing tickets with employees, said Lauletta. Look for a relevant fit. Like the partnership between Novo Nordisk (diabetes medications) and Charlie Kimball (Type 1 diabetic), drug makers look for partnerships where there is an organic fit with their products. That sometimes involves supporting a property s charitable beneficiary. THE EVOLUTION OF NOVO NORDISK S MOTORSPORTS PROGRAM 2009: Palm Beach Indy Racing IndyLights team 2010: AFS/Andretti Racing IndyLights team 2011: Chip Ganassi Racing IZOD IndyCar Series team For example, Mylan is leveraging Pittsburgh s inaugural WTT Smash Hits tournament in part due to the event s two primary beneficiaries: The Elton John AIDS Foundation and the Pittsburgh AIDS Task Force. As one of the world s leading providers of affordable antiretroviral medicines used to treat HIV/AIDS, Mylan has a long history of taking an active role in the fight of this disease. We strongly support the missions of the Elton John AIDS Foundation, the Pittsburgh AIDS Task Force and World TeamTennis and share in their passionate commitment to reducing the incidence of HIV/AIDS in the U.S. and around the world, said Heather Bresch, CEO of Mylan, in a statement. Sources Amgen, Inc., Tel: 805/ Novo Nordisk Inc., Tel: 609/ Mylan, Inc., Tel: 724/ Pittsburgh Pirates, Tel: 412/ Chip Ganassi Racing Teams, Tel: 704/ IEG, LLC. ALL RIGHTS RESERVED. 3

4 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING AUGUST 6, SEEKING DEALS SAMSUNG CANADA PARTNERS WITH TOUGH MUDDER, SEEKS ADDITIONAL DEALS Samsung seeks non-sports properties that support its Pursue Your Passion tagline and drive interest during key sales seasons. Just ten months after joining Samsung Electronics Canada, Inc. as vice president of marketing, Andrew Barrett has already made significant strides in taking the company s sponsorship strategy to the next level. That includes developing new consumer-facing promotions around the company s two national sponsorships Hockey Canada and the NFL in Canada as well as Seoul-based Samsung Electronics Co. s partnership with the International Olympic Committee. In addition, Barrett plans to round out the company s sports-centric portfolio with art, fashion and other types of properties that support its Pursue Your Passion tagline and drive interest during key sales periods. The marketing exec has already signed his first deal with the two inaugural Canadian Tough Mudder obstacle course events. We re looking at different types of sponsorships outside of the usual suspects, said Barrett. We want to embrace the diversity of Canadian passion. Barrett launched a similar strategy in 2009 while serving as vice president of global sponsorship with Seoul-based LG ( LG Turns Up The Volume With Host Of Major Deals ). The sponsorship vet expanded the company s portfolio with a handful of new ties including a five-year partnership with Formula 1. Making National Ties Work Harder Since joining Samsung in Sept. 2011, Barrett has placed more emphasis on activating the company s two national properties with more consumer promotions. The company, which previously leveraged the NFL in Canada with B2B hosting events at the Super Bowl and Pro Bowl, this year plans to run consumer promotions throughout the entire NFL season IEG, LLC. ALL RIGHTS RESERVED. 4

5 We have a whole series of activities planned ranging from retail promotions to online promotions on the Samsung Facebook site, said Barrett. Without any NFL teams in Canada, the promotions will center around team merchandise and trips to games. For example, Samsung this fall will run promotions in Southern Ontario and British Columbia that dangle trips to a Buffalo Bills home game and a Seattle Seahawks home game, respectively. It also plans to a run a promotion with Future Shop that offers trips to games and player meet-and-greets. WISH LIST: SAMSUNG ELECTRONICS CANADA Arts, fashion and other non-sports properties Properties that support the Pursue Your Passion tagline Events that take place outside of the hockey and football seasons Properties that occur during key sales seasons Events that can be activated with consumer promotions and immersive experiences Another area focus: video content. Samsung this fall will use content from NFL Films to demonstrate its products at the point of purchase. We ll use highlights from the Super Bowl and other games from last season to demonstrate how amazing football looks on a high-definition TV, said Barrett. Samsung also has launched new promotions around Hockey Canada, a partnership it previously activated in advertising campaigns. That includes a ticket promotion around the Dec. 26-Jan. 5 IIHL World Junior Championships in Calgary and Edmonton. The company will further activate the tie with retail and online promotions offering team merchandise, game content and other prizes. We plan to turn up the heat this winter, said Barrett, who hopes to leverage the growing buzz around the 2014 Winter Olympic Games in Sochi, Russia. Samsung Electronics Canada activated its parent s IOC partnership by sending seven people to participate in the London 2012 Olympic Torch Relay. The company chose the participants based on their passion for the Olympic spirit and contributions to the community through philanthropic activities. One of the participants: Michael Joseph Bruni, chairman of Hockey Canada. That was the first time we activated a sponsorship with another sponsored property, said Barrett, noting that the chairman ran on behalf of hockey players in Canada and to raise awareness for the Hockey Canada Foundation. Filling Out Portfolio With Local Ties Barrett is supporting Samsung s national platforms with local ties that fill out the calendar year and support key sales seasons. Our national properties don t happen 52 weeks a year. We want to have promotional activity throughout the year, and sponsorship is a good way to communicate key messages at key time periods. Samsung plans to sign new deals with one or two major properties and a handful of local events over the next year, he said. Samsung partnered with Tough Mudder to promote home appliance products during the spring and summer, a period when many consumers buy new houses or renovate existing homes IEG, LLC. ALL RIGHTS RESERVED. 5

6 The company is using the tie to promote its PowerFoam washing technology. We needed an event in the summer that relates to getting dirty and clean and the power of PowerFoam technology. We needed to do something different, and nothing is more different than Tough Mudder, said Barrett. The company had a limited presence at the June Tough Mudder event in Vancouver but will expand its presence at the Aug event in Toronto. For example, the company will leverage the event with the Samsung PowerFoam Challenge station, around which brand ambassadors will clean up event participants after they cross the finish line. Samsung will post photos of participants on its Facebook page. Samsung is further activating the event with a tie to Samantha Boughen, a 31-year-old mother of two and cancer survivor. Boughen will compete in the event with a group of mothers under the Tough Mothers banner. We want to make an emotional connection with the Samsung brand and Pursue Your Passion. Samantha will show people that you can come back from medical difficulties and be one of the toughest mothers. Sources Samsung Electronics Canada Inc., Tel: 905/ Tough Mudder, Tel: 718/ IEG, LLC. ALL RIGHTS RESERVED. 6

7 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING AUGUST 6, SELLING QUICK HITS: FOUR SPONSOR PET PEEVES Flexibility, a long lead time and proper recognition are key to creating mutually beneficial relationships. With the advent of the fourth-quarter planning season quickly approaching, IEG SR asked sponsorship decisionmakers about their frustrations when working with properties. The bottom line: Where are properties getting it wrong? What do they need to do to improve their chances of closing deals? To no surprise, there was no shortage of examples. I could go on for two days about my pet peeves, said Brian Maynard, director of marketing for Whirlpool Corp. s Jenn-Air brand. Below, four major areas where properties get it wrong: Sellers that provide a short lead time. To ensure that sponsors have enough time to develop comprehensive activation programs, sellers should approach prospects at least six months prior to an event or the beginning of a sports season. If you don t come to us at least six months out, we re not going to have a conversation. We can t properly activate without enough time, said Maynard, noting that one property recently approached Whirlpool two weeks prior to the event. If we can t promote a sponsorship and be organized about it, it s not worth the effort. Properties that exclude sponsors in event publicity. Another irritant of Maynard s: sellers that don t mention sponsors in their public relations efforts. They send us reports on how much media exposure the event generated, but my question is, How many times are we mentioned? A media interview is a great opportunity to mention brands that are part of the event. Sellers that aren t flexible. Once a contract is signed, properties should stay abreast of industry trends and be willing to accommodate a sponsor s changing needs. That sometimes requires going beyond terms of a contract IEG, LLC. ALL RIGHTS RESERVED. 7

8 Good properties embrace the need for flexibility, poor properties don t, said Andrew Barrett, vice president of marketing with Samsung Electronics Canada ( Samsung Canada Partners With Tough Mudder, Seeks Additional Deals ). Barrett points to the growing popularity of tablet computers as an example. Some properties want to charge extra for this new category. Replacing outdated categories with the tablet category should be the way good partners operate without trying to charge us extra fees. Properties that don t live up to their commitment. John Vaughn, manager of sponsorships and events with Advance Auto Parts, Inc. ( The Importance Of Sponsor Cross-Promotions 01.30/12), points to properties that don t do what they say they will do. Don t tell me you re going to take a specific action and then not live up to your commitment. Your word is your bond. I realize this seems very basic but many properties have a lot of room to improve in this area. My advice is simple. If you say you re going to do something, do it. Period. Sources Advance Auto Parts, Inc., Tel: 540/ Samsung Electronics Canada, Tel: 905/ Whirlpool Corp., Tel: 269/ IEG, LLC. ALL RIGHTS RESERVED. 8

9 ABOUT IEG IEG leads the way in sponsorship solutions. With over 30 years providing insights, evaluation, and guidance, our teams bring unparalleled perspective and proven methodology to every challenge. We partner with top brands and properties to create fresh strategies, evaluate opportunities and maximize results. Our clients rise above competitors, meaningfully engage audiences and achieve lasting impact. A unit of WPP s GroupM, IEG is connected to specialty sibling communications companies in media, digital and activation. GroupM is the leading global media investment management operation that also serves as parent company to WPP media agencies including Maxus, MEC, MediaCom, and Mindshare. INSIGHTS EVALUATION GUIDANCE IEG LEADS THE WAY IN SPONSORSHIP ANALYSIS, INSIGHT, VALUATION & MEASUREMENT For more information about IEG and the sponsorship industry, please visit or call 800/ (outside the U.S. and Canada, 312/ ). WWW. SPONSORSHIP.COM 2012 IEG, LLC. ALL RIGHTS RESERVED. 9