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 APRIL 29, MARATHONS WE WON T BACK DOWN: ENDURANCE SPORTS COMMUNITY BANDS TOGETHER IN THE WAKE OF BOSTON TRAGEDY Boston tragedy is expected to have little impact on corporate interest in endurance sports. Although the twin bombings at the Boston Marathon have already had a significant impact on marathons and other types of events namely increased security most sponsorship veterans expect the incident to have little impact on sponsorship spending in the endurance sports space. First and foremost, the attack was not on running but the citizens of Boston and the American psyche. The idea of this potential risk has been on the mind of every event producer since 9/11, said Scott Dickey, CEO of The Competitor Group, which owns and manages the Rock n Roll Marathon Series, TriRock Triathlon Series and other endurance sports events around the world. If anything, the incident has pulled together runners like never before. The one thing that we have seen is incredible interest among runners in participating and supporting events they feel passionate about. That surge in demand will continue to fuel growth and participation in the sport, said Dickey. Brian Corcoran, president of Shamrock Sports & Entertainment, takes a similar view. The sales agency represents the Boston Marathon, the TD Beach to Beacon 10K in Cape Elizabeth, Maine and other endurance sports events. We expect participation to grow stronger as a result of the unfortunate events that unfolded in Boston. We envision casual runners will join avid endurance sports communities to share in the physical and psychological-related benefits in pursuit of healthier and happier lifestyles. In addition to runners, sponsors, event producers and other stakeholders are increasingly banding together to support the victims of the Boston tragedy and the running community as a whole. For example, The Competitor Group has teamed with US Road Sports & Entertainment Group, Brooks Sports, Inc., Transamerica Life Insurance Co., the Independent Running Retailers Assn. and other organizations to form Run Now, an industry coalition designed to show solidarity with the running community and raise funds for The One 2013 IEG, LLC. ALL RIGHTS RESERVED. 1

2 Fund Boston, the nonprofit created by Massachusetts Governor Deval Patrick and Boston Mayor Thomas Menino to support those impacted by the tragedy. The organizations last week launched a site where consumers can donate money to The One Fund, learn about volunteer opportunities and otherwise support the running community. Goals of Run Now include the following: Raise $1 million for The One Fund by June 5, 2013 (National Running Day) Offer free race entries to the 4,500 Boston Marathon participants who were diverted prior to the finish line Distribute more than 1,000 tribute wristbands Other companies involved in endurance sports also have launched programs that support The One Fund. Adidas is selling a limited-edition Boston Stands as One T-shirt, while Saucony is selling a lace medallion. The medallion features the #BostonStrong hashtag and a lace-up heart icon. Adidas and Saucony are both donating 100 percent of profits to the nonprofit. In addition, Virgin activated the Virgin London Marathon a tie it has since extended through 2014 by donating 2 for every runner that finished the race. The event took place April 21st, five days after the Boston tragedy. There are a number of initiatives focused on raising money, and I m sure we ll continue to see that grow and gain momentum, said Dickey. Jackie Fast, managing director of London-based Slingshot Sponsorship, points to another potential silver lining: more focus on partnerships. I think out of this horrible tragedy, sponsorship has really proven that relationships exist beyond the often viewed commercialization of events showcasing how true partnerships exist within sponsorship. If anything, I hope rights owners will be enlightened by what has happened and start viewing sponsors as partners rather than just monetary funding objectives. Hopefully other sponsors will be inspired by the dedication and commitment of the Boston and London marathons, which in turn will lead them to pursue partnerships of a similar nature. Sponsor Reactions To The Boston Tragedy Alison Steinberg, corporate communications, JetBlue As a sponsor of the Boston Marathon, we d like to convey our continued support of the Boston Athletic Association and to all of the runners who participated this year during these difficult and highly unpredictable times. Our sponsorship agreement in this particular case, as well as our protocol for evaluating partnerships, does not change. As the largest airline in Boston, we ll continue to support those ventures that matter most to the community, as we do in many of the cities that we serve. T.J. Crawford, senior vice president of media relations, Bank of America We re heartbroken, along with the rest of the nation, following the tragic events in Boston. Our focus is on the victims and the city, and doing what we can to help. This includes accepting donations to The One Fund Boston at our banking centers across the country IEG, LLC. ALL RIGHTS RESERVED. 2

3 The Chicago Marathon continues to be a marquee sponsorship for Bank of America, an increasingly important event for Chicago tourism, and a source of pride for residents. Over the coming weeks and months, we ll work with city officials, law enforcement and our marathon team to plan October s race. The tragedy in Boston will clearly play an enormous role in that process. Jane Lazgin, spokesperson, Nestlé Waters North America The events will not change our commitment to endurance sports. We already had protocols in place to help us, under most any circumstances, to account for all employees involved in an event, as participants and as volunteers. Our event sponsorship management will name point people for the team at our events. That point person is asked to be aware of where NWNA participants and volunteers are located and how they are identified. They are clear on who to contact at the corporate office or elsewhere for events on a weekend, if a situation occurs where employees need to be accounted for. The safety of our employees is critical to us. We also, of course, work with event directors on their safety protocols for all participants in an event. Sources Bank of America Corp., Tel: 704/ JetBlue Airways Corp., Tel: 718/ Nestlé Waters North America, Inc., Tel: 310/ Competitor Group, Inc., Tel: 858/ Shamrock Sports & Entertainment, Tel: 207/ Slingshot Sponsorship, Tel: 07/ IEG, LLC. ALL RIGHTS RESERVED. 3

4 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING APRIL 29, CATEGORY UPDATE NO BEGGING HERE: PET FOOD MAKERS GROW APPETITE FOR SPONSORSHIP Pet food brands double down on sponsorship to create new connections and shared experiences. Consumers love their pets, and that passion is creating new sponsorship opportunities for nearly every type of property. Both established and upstart pet food brands have recently signed a host of new deals ranging from marathons to film festivals and fashion shows. The overarching goal: creating shared experiences with pet owners. Recent deals include Petcurean and the Tribeca Film Festival; Purina ProPlan and the Dick s Sporting Goods Pittsburgh Marathon; and Purina Beneficial, which has reupped with the MLS Chicago Fire for the second year in a row. In addition, Hill s Pet Nutrition, Inc. this year sponsored the Scottsdale Arts Festival, Florida Strawberry Festival and other community events on behalf of Hill s Science Diet. On the branded entertainment front, Purina last month announced official pet food status of ITV s Britain s Got Talent TV show on behalf of the Felix cat food line. The company is activating the tie with a Facebook competition for cats, with the winner to be featured in a Felix ad spot during the show s live finale. Other pet food companies also activate with unique programs. Case in point: Purina in February activated its sponsorship of Tracy Reese s fall collection show at Mercedes-Benz New York Fashion Week by integrating cats into the runway show. The company used the partnership to promote the launch of Purina One SmartBlend Healthy Metabolism. Dollar sales of cat and dog food rose 3.18 percent and 2.91 percent, respectively, in the year ended March 24, 2013, per Information Resources, Inc., a market research firm. Swapping Tribeca For Tribarka For its part, Petcurean partnered with the Tribeca Film Festival to support its new Savour Every Moment brand campaign IEG, LLC. ALL RIGHTS RESERVED. 4

5 The campaign centers around a four-minute film by New York City filmmaker Keith Hopkin, who specializes in short films that feature pets. Petcurean debuted the film at last weekend s Tribeca Family Festival Street Fair. The festival was a good match for the brand: the event draws roughly 250,000 affluent consumers, many of whom have dogs and other pets. A lot of people bring dogs to the festival, so Petcurean wasn t a fish out of water. They weren t trying to put a square peg into a round hole, said Brandon Lowitz, Tribeca s senior vice president and co-head of sponsorship development. Petcurean activated the tie with on-site photo opportunities for pets and their owners on an orange carpet. Petcurean products feature an orange label. The company also ran in-store promotions at local retailers and touted the sponsorship on Below, IEG SR highlights three hot buttons for the pet food category: Create shared experiences. Like Petcurean and Tribeca, pet food companies look for opportunities to engage consumers and provide them an opportunity to show off their pets. Natural Balance activates the MLB Los Angeles Dodgers with the annual Bark in the Park event in Dodger Stadium. Dog owners can walk their pets on the warning track prior to the game and sit with the animals in a special seating section during the game. In a different twist, the Dick s Sporting Goods Pittsburgh Marathon this year created a proprietary pet walk for Purina ProPlan. The event will be held on May 4th, the day before the marathon. It s a cute event that will bring fitness to everyone. You may not be able to run 24 miles or a 5K, but you can do the walk, said Patrice Matamoros, the marathon s executive director. The first 500 registrants will receive a goody bag with a pet kerchief, pet bowl, dog toy and other items, she said. Purina approached the marathon about the sponsorship, she added. SALES IN THE PET FOOD CATEGORY CATEGORY DOLLAR SALES SALES INCREASE Cat Food Cat snacks/beverages $380 million 5.21% Dry cat food $2.27 billion 1.91% Frozen/refrigerated cat food $3.4 million 71.77% Semi-moist cat food $673,000 (28.38%) Wet cat food $1.9 billion 4.26% Dog Food Dog biscuits/treats/beverages $1.9 billion 3.35% Dry dog food $5.2 billion 3.16% Frozen/refrigerated dog food $72 million 21.5% Semi-moist dog food $123.2 million 3.54% Wet dog food $1.35 billion 0.45% *Sales in supermarkets, drugstores and mass merchandise outlets in the year-ended March 24, 2013, per Information Resources, Inc IEG, LLC. ALL RIGHTS RESERVED. 5

6 Other companies also activate by tapping into consumers love for pets. Purina activates the Chicago Fire with an online program that features photos of players with their dogs, while Central Garden & Pet activates University of California-Berkeley Athletics with the Cal Dress Your Pet contest. Central Garden & Pet which sponsors the team on behalf of the AvoDerm pet food and Nylabone dog chew brands receives exclusivity in the dog food, chews and treats categories. Promote brand values. Purina in 2012 sponsored Chicago s Pitchfork Music Festival ( Purina Moves Beyond Traditional Media To Promote New Brand, 6/18/12) on behalf of Purina One Beyond. The goal: promote Beyond s brand values of authenticity, sustainability and positive goodness. Purina touted those values through roving brand ambassadors and the ingredients for good on-site experiential area. The brand also underwrote the festival s recycling program to support its eco-friendly packaging and manufacturing process. Access promotional platforms. Like consumer packaged goods companies, pet food brands frequently use sponsorship to drive retail traffic. For example, Purina will activate the Dicks Sporting Goods Pittsburgh Marathon with PETCO Animal Supplies, Inc. The two companies will sample coupons at the race expo and other ancillary events. In a different twist, Natural Balance activates the Los Angeles Dodgers with end-aisle displays and other in-store promotions for Bark in the Park. The promotions give the team valuable exposure, said Michael Young, the Dodgers senior vice president of corporate partnerships. They do a marvelous job of pushing ticket sales for the event, he said, noting that the success of Bark in the Park has prompted the team to consider adding a second event this year. Sources Dick s Sporting Goods Pittsburgh Marathon, Tel: 412/ Los Angeles Dodgers, Tel: 323/ Tribeca Film Festival, Tel: 212/ IEG, LLC. ALL RIGHTS RESERVED. 6

7 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING APRIL 29, HEALTHCARE CATEGORY UPDATE: HEALTHCARE COMPANIES Pharmaceutical companies ramp up sponsorship to promote products in an organic, relevant environment. From IEG SR s perspective, few categories represent as much opportunity as the healthcare industry. Driven by the ongoing rollout of the Affordable Care Act and the aging Baby Boomer population, nearly every segment of the industry is undergoing seismic changes in how they market products and deliver services. That evolution has created new sponsorship opportunities for nearly every type of property as companies place more focus on taking their messages directly to consumers. Those messages range from anti-obesity and other health and wellness campaigns to educating consumers about undiagnosed medical conditions and the products that treat them. Below, IEG SR provides an overview of three active segments of the healthcare industry and their sponsorship hot buttons: Drugstore chains. Walgreen Co., Rite Aid Corp. and other drugstore chains are placing more focus on sponsorship to support their health and wellness positioning and promote front-of-store products. One growing trend: customer rewards programs ( Trendwatch: Two Trends To Look For In 2013, 12/10/12). Like other types of retailers, drugstore chains are increasingly using sponsorship to access perks and other assets that can be used to reward loyalty club members. For example, Walgreen uses its partnership with Susan G. Komen Race for the Cure to promote its Balance Rewards OTHER CATEGORIES TO CONSIDER Below, four other segments of the healthcare industry and their sponsorship hot buttons: Blood Banks Educate consumers about the importance of donating blood Access tickets to prompt sign-ups Gain real estate for blood drives Physical Rehab Clinics Showcase expertise Promote injury prevention Pharmaceutical Companies Educate consumers about health issues (diagnosed and undiagnosed) Promote message in organic environment Build relations with health care professionals Medical Device Companies Demonstrate products/services in action Educate patients about treatment options Engage employees Promote community involvement 2013 IEG, LLC. ALL RIGHTS RESERVED. 7

8 loyalty program. The company activates the tie by distributing pedometers to race participants who earn points for every mile walked. Consumers can then use the points to gain discounts on future purchases. Like other types of retailers, drugstore chains frequently activate with vendor partners. For example, Walgreen in January partnered with The Procter & Gamble Co. to activate the CPG company s sponsorship of The People s Choice Awards. Walgreen activated the tie with the Night at the W, an in-store event held the day after the show. The event featured Walgreen beauty advisors who used CoverGirl, Pantene and other P&G products to help customers create their own red carpet look. Another key hot button: community involvement. Walgreen last year partnered with the NFL Detroit Lions in a deal that affords presenting status of the team s Living for the City health and wellness initiative for disadvantaged and at-risk families. The deal also provides a platform to drive store traffic: Walgreen activated the sponsorship with in-store flu immunization events that featured both current and former Lions players. Sponsorship hot buttons: drive store traffic; demonstrate community involvement; promote customer loyalty programs; promote in-store clinics Hospitals. Health care reform and industry consolidation continues to drive new sponsorship activity on behalf of hospitals. While hospitals previously used sponsorship in large part to promote areas of expertise, they are increasingly using the medium to promote broader health and wellness messages. The Hospital for Special Surgery activates the NBA New York Knicks with the Train like a Knicks contest, around which fans can submit entertaining exercise videos on the team s Facebook page. The contest dangles the opportunity to train with Knicks trainers and alumni at the MSG Training Center in Tarrytown, N.Y. among other prizes. HSS also uses the sponsorship to discuss the importance of physical fitness through a series of videos that feature Knicks players, doctors and announcers. The hospital shows the videos at home games and on the Knicks s Facebook page. Sponsorship hot buttons: promote health and wellness; showcase medical expertise in action; demonstrate community involvement Health insurers. While they once used sponsorship to build their brands and promote health and wellness, a growing number of insurers are using the medium to engage consumers and reach new audiences. That activity is driven in large part by the Affordable Care Act and the millions of consumers that will soon be required to purchase health insurance. And some companies are already expanding their portfolios prior to the Oct. 1 rollout of health insurance exchanges. Case in point: Horizon Blue Cross Blue Shield of New Jersey ( Insurers Ready New Deals As Health Care Reform Gains Momentum, 1/14/13) is signing new deals to reach Latinos and other under-insured consumer segments. The company this month announced a $1 million partnership with the New Jersey Performing Arts Center, around 2013 IEG, LLC. ALL RIGHTS RESERVED. 8

9 which it will sponsor NJPAC s Sounds of the City summer concert series and the nonprofit s Latin and urban music performances. Sponsorship hot buttons: reach uninsured consumers; support CSR initiatives; promote Medicare Advantage programs to senior citizens; promote loyalty wellness programs Sources Horizon Blue Cross Blue Shield of New Jersey, Tel: 800/ Hospital for Special Surgery, Tel: 212/ Rite Aid Corp., Tel: 717/ Walgreen Co., Tel: 847/ IEG, LLC. ALL RIGHTS RESERVED. 9

10 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. 10