IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING
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1 THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING SEPTEMBER 3, ACTIVATION SIX FLAGS HELPS RAYOVAC CHARGE UP SPONSORSHIP Properties can add value and possibly access incremental revenue by offering turnkey activation platforms. While many rightsholders offer turnkey activation platforms, Six Flags Entertainment Corp. is taking the strategy to the next level. For the first time, the theme park operator has helped a partner activate its sponsorship of a third-party event. Six Flags last weekend helped Rayovac activate its sponsorship of Chicago s North Coast Music Festival by having theme park staffers serve as on-site brand ambassadors. The initiative builds on Six Flags long-running strategy of tapping in-house resources to offer turnkey activation platforms. That ranges from offering creative services to using employees as brand ambassadors. We can help satisfy partners needs at an efficient price because we are experts at delivering excellent guest service with a qualified pool of talent, said Jeff Portugal, Six Flags vice president of corporate alliances and partnership marketing. Six Flags uses employees from its entertainment division to serve as brand ambassadors, he added, noting that the staffers are energetic, engaging and comfortable being in front of guests. The opportunity to help Rayovac activate North Coast emanated from a review of sponsorship elements in the brand s Six Flags program and the introduction of a new line of Portable Power products, said Portugal, noting that the battery brand had already secured the music festival sponsorship. Once we discussed experiential programs in the parks, we offered taking the program to other venues. They had the rights, and we were happy to get involved. The Portable Power line features two battery-powered portable chargers, both of which were launched earlier this year. One device offers seven hours of talk time on a smart phone while the other offers two hours IEG, LLC. ALL RIGHTS RESERVED. 1
2 Rayovac this year activated Six Flags with the Rayovac Power Patrol, a team of brand ambassadors who explained the products to park guests. The North Coast Music Festival is the second music fest sponsored by Rayovac. The company kicked off its music marketing push with a tie to the July Country Jam USA festival in Eau Claire, Wisconsin. The company is focusing on music festivals to demonstrate the portable charging products to twenty-something music fans, said Jessica Yurchich, Rayovac product manager. Many people at music festivals use their smartphones to take photos, and their phones can die out quickly. People at the North Coast Music Festival didn t need an outlet they could use portable power chargers. The company is pleased with the Power Patrol program at Six Flags, she said. The Six Flags staff has done a great job. The partnership has definitely paid off in terms of spreading the word in how the products work and generating interest. Rayovac activated Country Jam USA with on-site sales, a strategy that paid off for the brand. A lot of people came by the tent because they were interested in what the products do. A number of them came back after their phones died. Rayovac picked the two festivals in part due to their proximity to the brand s corporate headquarters in Madison, Wisconsin, said Yurchich, adding that the timing of North Coast also provided exposure during the back-to-school shopping season. SPONSOR SURVEY: THE MOST POPULAR PROPERTY-PROVIDED SERVICES Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable. Source: IEG/Performance Research 2013 Sponsorship Decision-Makers Survey 2013 IEG, LLC. ALL RIGHTS RESERVED. 2
3 Rayovac is owned by Spectrum Brands Holdings, Inc. The company may align with other music festivals, she added. We are looking into additional events throughout the year. Rayovac also sponsors the FLW fishing organization, Walt Disney World and Kampgrounds of America. Rayovac is owned by Spectrum Brands Holdings, Inc. Sources Spectrum Brands Holdings, Inc., Tel: 800/ Six Flags Entertainment Corp., Tel: 972/ IEG, LLC. ALL RIGHTS RESERVED. 3
4 THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING SEPTEMBER 3, SPONSOR PROFILE INSIDE PANASONIC S SHIFTING SPONSORSHIP STRATEGY Electronics giant shifts sponsorship strategy away from consumer products in favor of more profitable B2B offerings. Panasonic Corp. of North America is increasingly using sponsorship to support its business-to-business offerings. While Panasonic makes and markets flat-screen TVs, cameras, home appliances and other consumer products, the company generates most of its revenue on businessto-business products and services. As a result, Panasonic has shifted its sponsorship strategy to promote its B2B solutions. For example, the electronics giant is activating the USTA US Open to showcase automotive, aviation and other B2B products as well as a dollop of B2C products in the Panasonic Gallery in Louis Armstrong Stadium. Panasonic last year used the tie to promote TVs and cameras. Panasonic also is placing more focus on gaining business from sponsored properties. For example, the company has leveraged ties to AEG and Major League Soccer to outfit sports and entertainment facilities with video boards, security systems and other products and services. Calling en route to the US Open, Lesley Poch, Panasonic s group director, sponsorship and experiential marketing, spoke to IEG SR about the company s evolving sponsorship strategy, how it uses the marketing medium to gain business from sponsored properties, and other topics. Below are edited excerpts from the conversation. On using the US Open to promote B2B offerings Our approach to sponsorship is changing. In the past we were well known as a consumer electronics brand, and our sponsorships focused on promoting consumer electronics products. At this point we are more of a business-to-business company. It s not that we re not focusing on consumer business, but the margins and profitability of consumer products are not the same as in the past. As a result, we re focused on using sponsorship to integrate our B2B products IEG, LLC. ALL RIGHTS RESERVED. 4
5 How Panasonic is leveraging the US Open This year we re using a technology showcase where we re taking bits and pieces of products from our sales units to create an interactive fan experience. It s actually a combination of B2B and consumer products. Panasonic makes TVs, but we re not just in the living room. We re also in places you wouldn t think about. We re in the back-end of many automobiles. We work with General Motors, Chrysler, Audi, Mercedes-Benz and BMW. Most people don t know that. We re using the sponsorship to showcase the Connected Car Console and Aupeo, a streaming radio product that will be fully launched in the U.S. next year. We also support back-end entertainment systems for airlines. Emirates (title of the Emirates Airlines US Open Series) is a huge customer. We re showcasing an in-flight television service by allowing fans to sit in an airline seat and watch a live feed of match play at the US Open on a widescreen seatback display. We re the official TV, home theater and imaging partner of the USTA. We have not varied that up in terms of exclusivity, so the USTA let us expand the categories. On gaining business from sponsored properties I was hired by Panasonic Enterprise Business Solutions, which is a sales company responsible for large scale integrations. Their business model is to get stadiums, arenas and teams that are building new facilities or refurbishing existing venues to consider LED boards, security systems, point-of-sale systems and other Panasonic products. I was brought on to help with that process. We were closing business and selling the assets we negotiated across our business units. That developed into more of a corporate job, and they moved the division under corporate marketing to take advantage of the assets that we acquired. On gaining business from MLS venues We have products in a number of stadiums as a result of our MLS partnership. Look at Red Bull Arena: Our products are integrated throughout the stadium. We have field level boards, TVs in suites and point of sale systems. Sporting Kansas City has received huge accolades for Sporting Park, and we have huge LED displays integrated into the venue. We re thrilled to be a partner with MLS and US Soccer. We have products in stadiums, it s a great way to leverage hospitality, and it allows us to showcase our brands in a legitimate and authentic way. On activating the 2014 Sochi Olympics We re hoping to have a cool activation around Sochi, which is something we re still working on. It s complicated to get clients to Sochi. It s expensive, and cost prohibitive. The USOC recognizes that, and they plan to set up a USA House in the U.S. We re hoping to get involved with that. Source Panasonic Corp. of North America, Tel: 201/ IEG, LLC. ALL RIGHTS RESERVED. 5
6 THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING SEPTEMBER 3, CATEGORY UPDATE RIDE SHARING APPS CALL UP NEW SPONSORSHIPS Events with a high demand for taxi service should put ridesharing apps on their prospect list. Sponsorship activity on behalf of taxi apps (Taxi Category Hails New Sponsorships ) and ride-sharing services continues to gain traction. Companies ranging from Sidecar to Uber are increasingly aligning with music festivals, culinary events and other types of properties to build their brands, demonstrate their services and drive new business. Demonstrating the growing popularity of sponsorship in the category, last month s FYF Fest was approached by three companies: Taxi Magic, Lyft and Uber. The Los Angeles music festival opted for Taxi Magic. At the end of the day it came down to who could be the larger partner, said Phil Hoelting, FYF Fest s director of sponsorships. Other deals in the category include Sidecar and the Pitchfork Music Festival and Uber and the Atlanta Food & Wine Festival, Fashion Week San Diego and the Life is Good Festival in Canton, Mass. While their business models and service offerings may vary, nearly every company uses sponsorship to accomplish one primary objective: gain new business. That typically boils down to offering discount service to festival-goers and event staff. For example, Taxi Magic activated the FYF Fest by distributing 10,000 promotional cards that dangled a $10 coupon for first-time users. The music festival touted the offer through social media posts and blasts to its more than 100,000 contacts, said Hoelting. The company also distributed $50 discounts to artists and $25 discounts to event staff and crew. In addition, Taxi Magic distributed hangover kits, hats and other swag from a backstage booth and hosted a photo booth in the general public area. The company collected roughly 600 s from the booth, said Hoelting IEG, LLC. ALL RIGHTS RESERVED. 6
7 Alexandra, Va.-based RideCharge, Inc. markets Taxi Magic through partnerships with local taxi companies. RideCharge sponsored the FYF Fest in conjunction with Los Angeles Yellow Cab. Other ride-sharing apps include Hailo, Flywheel and itaxi IEG, LLC. ALL RIGHTS RESERVED. 7
8 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 redefine what s possible, exceed expectations 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 2013 IEG, LLC. ALL RIGHTS RESERVED. 8
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