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 JUNE 11, SEEKING DEALS MOVE OVER JELLY: PEANUT BUTTER BRANDS SCOOP UP NEW DEALS Peanut butter brands place more focus on endurance sports to promote product attributes to health-conscious consumers. Peanut butter marketers are growing their appetite for sponsorship. Both established and upstart players are aligning with cycling teams, marathons and other types of endurance sports to position peanut butter as a product for fit, active consumers. Everyone in our industry is waking up to the fact that peanut butter isn t just for kids anymore. Athletes are always looking for protein and energy, and peanut butter delivers that in spades, said Lee Zalben, founder and president of Peanut Butter & Co., which sells its eponymous brand of peanut butter in Target Corp., Safeway Inc., Wal-Mart Stores, Inc. and other national and regional chains. And the company is using sponsorship to promote that message. Peanut Butter & Co. this year inked co-title of the Human Zoom cycling team and is scouting ties with other amateur teams. Other players also are using sponsorship to reach active consumers. For example, The J.M Smucker Co. has sponsored a handful of running events over the past year on behalf of its Adams natural peanut butter brand. Deals include the Portland Half Marathon and Divas Half Marathon in Vail, Colo. The peanut butter and jelly giant also uses sponsorship to promote Jif, the dominant player in the peanut butter category. Ties include the Kick It 3 v 3 youth soccer tournament (Jif to Go) and the Wal-Mart FLW Fishing Tour, a partnership the company uses to promote Jif, Folgers and other brands. Those deals come amid a backdrop of rising sales in the peanute butter category. Sales of peanut butter rose 18.3 percent at supermarkets, drugstores and mass merchandise outlets in the year-ended May 13, according to SymphonyIRIGroup. The increase in sales is largely driven by a shortage of peanuts, which has forced a number of brands to raise prices. Unit sales in the category declined 2.3 percent in the same period, according to the market research firm IEG, LLC. ALL RIGHTS RESERVED. 1

2 In addition to touting a health message, peanut butter marketers use sponsorship to sample product, gain platforms for retail promotions and promote new line extensions. For example, Smucker last month rolled out several hazelnut-flavored spreads for the Jiff brand. Seeking Deals: Peanut Butter & Co. Demonstrating the growing role of sponsorship in the category, Peanut Butter & Co. plans to expand its presence in the cycling space by aligning with six or seven regional amateur teams over the next year. SPONSORSHIP WISH LIST: WHAT PEANUT BUTTER & CO. WANTS FROM AMATEUR CYCLING TEAMS Title status Category exclusivity Established track record Existing infrastructure Sound finances/insurance Accreditation by USA Cycling and state/regional cycling body Existing sponsors Partnerships, not sponsorships Community service overlay The objective: Build visibility in front of active, health conscious adults and promote the healthy, versatile attributes of peanut butter. The new sponsorship push isn t the company s first foray into the cycling space. Peanut Butter & Co. over the past two years titled the TWENTY12 women s professional cycling team. The team features Kristin Armstrong, an Olympic gold medalist and spokesperson for the National Peanut Board. The company sponsored the team through the 2011 season, after which it was replaced by Exergy Development Group ( Amgen Tour of California Restructures Sponsorship Packages ) as title sponsor. Peanut Butter & Co. opted for a different course in 2012 by sponsoring a network of amateur cycling teams. The company kicked off the strategy earlier this year with co-title of Human Zoom, a team based out of Philadelphia. Peanut Butter & Co. was drawn to amateur athletes due to their passion for the sport, said Zalben. They work, raise families and still find time to nurture their passion by competing on weekends. That s something our customers can identify with. Local athletes also play a role in the company s activation strategy. Peanut Butter & Co. plans to promote Human Zoom and other cycling teams on shelf talkers and other in-store promotional material. Promotions that highlight local athletes often have more relevancy than those with athletes based in other markets, said Zalben. If you see an image of a pro cycling team out of California, you might say This is neat. This company is involved in cycling. If you see the same piece with a local cyclist, you get a sense that this brand is not only invested in sports, but sports in your community. We think that s a powerful connection. Peanut Butter & Co. activates Human Zoom by distributing coupons and samples at races. It also promotes the team through a dedicated Web site as well as a Facebook page and Twitter feed. The marketer also sells product at Human Zoom, a bike and snowboard retailer that operates two stores in Philadelphia IEG, LLC. ALL RIGHTS RESERVED. 2

3 One of the most important things that I ve learned as a sponsor is that you really have to be prepared to invest the same amount of money in activation as in the actual sponsorship. If you aren t, then I don t think you ll ever really see a positive return on the investment, said Zalben. The company hopes to partner with two or three more teams this year and a similar number next year, said Zalben, who plans to have eight teams spread throughout the country by the end of Source Peanut Butter & Co., Tel: 212/ ext IEG, LLC. ALL RIGHTS RESERVED. 3

4 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING JUNE 11, SPONSOR PROFILE NISSAN READIES SPONSORSHIP TO PROMOTE NEW VEHICLES Automaker uses sponsorship to reach consumers beyond the 30-second TV spot. With five new vehicles slated for release over the next 15 months, Nissan North America, Inc. is counting on sponsorship to drive interest in its refreshed product offering. The unit of Yokohama, Japan-based Nissan Motor Co. will roll out the all-new 2013 Altima by early July followed by the redesigned Sentra sedan and Pathfinder SUV later this year. The company will roll out two other new cars next year. The vehicles follow the December 2010 launch of the Leaf, the automaker s first all-electric car. And Nissan is using both international and domestic sponsorships to promote the new vehicles. On the global level, the automaker this year expanded its presence on the international cycling scene with co-title of the Radioshack Nissan Trek pro cycling team. Nissan has cosponsored the team since In the U.S., Nissan has extended its long-standing partnership with the Heisman Trust and Heisman Trophy with a new five-year contract. Nissan uses those and other ties as part of an integrated marketing platform to reach active lifestyle enthusiasts. The company accomplishes that goal through a mix of sponsorships, media buys and promotional extensions that extend the Nissan brand beyond 30-second TV spots. We want our marketing platforms to play off each other so we can maximize what it is that we want to do, which is to sell more cars and trucks, said J Schaffer, Nissan s senior manager of promotions. Nissan uses three platforms to engage consumers: pro cycling, marathons and college sports. Below, IEG SR breaks down the three platforms: Professional cycling. Nissan in 2010 inked a sponsorship with Team Radioshack, a tie it expanded this year with co-title status IEG, LLC. ALL RIGHTS RESERVED. 4

5 The automaker which also sponsors the Amgen Tour of California and the USA Pro Cycling Challenge expanded its involvement with the team to gain a deeper connection with cycling enthusiasts. The great thing about cycling is that the fan base is engaged and enthusiastic. This gives us another way to connect on a deep basis, said Schaffer. Like its other sponsorships, Nissan activates cycling across multiple platforms. For example, the company leveraged last month s Amgen Tour of California with an ad buy on NBC Sports and on-site vehicle display. The 2013 Altima served as the race s official car, an event that marked the vehicle s first public viewing outside auto shows, said Schaffer. Nissan also used the race to showcase the Leaf and other vehicles, he added. Nissan leverages the Radioshack Nissan Trek cycling team by hosting athletes at local dealerships. The company hosted eight riders earlier this year at a new dealership in San Francisco. Marathons. Nissan sponsors the Boston Marathon, ING New York City Marathon, Arlington, Va. s Marine Corps Marathon and other endurance sports events to promote its Innovation for Endurance marketing platform. The automaker, which previously sponsored the events under the Master the Shift banner, switched the moniker last year to reflect its new marketing tagline. Nissan uses the events as part of an integrated marketing platform that promotes personal achievement. The program includes an ad buy in Bicycling, Men s Health and other Rodale publications as well as endorsement deals with swimmer Ryan Lochte, long distance runner Ryan Hall and other elite athletes. Nissan promotes the athletes and events through the Innovation for Endurance Facebook page and other social media channels. The company uses the channels to promote athlete appearances and share content. College football: Nissan uses the Heisman Trophy as the centerpiece of a 360-degree college football marketing platform. The program includes a media buy during game TV broadcasts, an experiential marketing program in conjunction with Sports Illustrated and appearances by former Heisman Trophy winners. Nissan also activates the program by hosting Heisman Trophy appearances at local dealerships. In addition to marathons, cycling and college football, Nissan sponsors a handful of properties located around its Franklin, Tenn. headquarters. Ties include the St. Jude Country Music Half Marathon presented by Nissan, the NHL Nashville Predators and Ryman Auditorium. Source Nissan North America, Inc., Tel: 615/ IEG, LLC. ALL RIGHTS RESERVED. 5

6 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING JUNE 11, SELLING GETTING IT DONE: PROSPECTING SPONSORS AND CLOSING DEALS Properties should attend trade shows to prospect sponsors and offer turnkey activation platforms to close deals. What are veteran sellers doing to identify prospects and close deals? What are they doing to add value to sponsorship offers? IEG SR asked those questions to sales vets at two properties: Six Flags Entertainment Corp. and Traverse City, Mich. s National Cherry Festival. Below, they share feedback on closing deals in today s sales environment. Attend trade shows. David McKillips, Six Flags senior vice president of corporate alliances, has found success using trade shows to uncover potential partners. Case in point: The sales vet attended last week s E3 show to identify prospects in the computer and video game categories. When attending events, McKillips tries to identify upcoming product launches that overlap Six Flag s summer and fall promotional platforms. We make introductions, learn about new products and look for a natural marriage with our brand, audience and events. Once a prospect has been identified, McKillips learns as much as possible about the company and its products. That includes its target demographic, distribution channels, in-store marketing programs and sales goals. The seller tries to glean much of that information from sales reps. Hearing what sales people want helps us from an overall sponsorship perspective. The strategy has paid off: Six Flags last year secured a partnership at E3 with Sega of America, Inc. The video game company sponsored Six Flag s Fright Fest on behalf of three titles: Rise of Nightmares, Sonic Generations and The House of the Dead: Overkill Extended Cut IEG, LLC. ALL RIGHTS RESERVED. 6

7 Six Flags reps also attend the International Consumer Electronics Show, National Restaurant Assn. show and the Sweet & Snacks Expo, among others. Be proactive with activation ideas. Properties should be prepared to share activation ideas when pitching potential partners. Chuck O Connor, director of corporate partnerships with the National Cherry Festival, used that strategy this year to close a new deal with Beam Global, Inc. The sales vet gained Beam s interest with the idea of selling cherry-flavored spirits at the festival. Beam will pour Cruzan Black Cherry Rum, Dekuyper Cherry Pucker and other cherry-based spirits. The July 7-14 festival is working with Beam on on-and-off-premise activation programs that will take place prior to the event, he added. Provide turnkey execution platforms. Looking to add value to its sponsorship packages, Six Flags over the past few years has placed more focus on offering turnkey activation platforms. That includes everything from printing promotional material to developing ad creative and providing on-site brand ambassadors. There is often a challenge when it comes to the cost of execution. This helps us get over that hurdle, said McKillips. The capability requires little out-of-pocket expense, said McKillips, who taps the theme park s TV production studio, creative staff and other in-house resources. Six Flags uses singers, dancers and other in-park talent to serve as brand ambassadors, he added. They are charismatic with great personalities, and this gives them an opportunity to gain experience in experiential marketing. Sources National Cherry Festival, Tel: 231/ Six Flags Entertainment Corp., Tel: 212/ 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 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. 8