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 FEBRUARY 13, MOTORSPORTS IZOD INDYCAR SERIES DISCOVERS NEW SPONSORS Motorsports series will leverage new credit card partner to identify prospects and add value to existing partnerships. Like a driver heading toward the finish line, IZOD IndyCar Series sponsorship momentum shows no signs of slowing down. The open-wheel auto racing series has secured four new non-endemic sponsors for the 2012 season including a multiyear partnership with Discover Financial Services ( Sponsorships Remains A Constant Amid Changes To Credit Card Business ), the league s first in the credit card category. Other new sponsors include Genesco Inc. s Lids headwear chain; translation app developer Ortsbo, Inc.; and Fuzzy s Ultra Premium Vodka, the latter of which also will expand an existing partnership with Vision Racing and driver Ed Carpenter for the 2012 season. The IndyCar Series also has signed two new endemic partners: Group Lotus plc and General Motor Co. s Chevy, both of which will supply engines. It also has inked a three-year extension with Bridgestone Americas ( Tire Category Gains Sponsorship Traction ) Firestone brand. The new deals come amid growing viewership and race attendance. Attendance grew 9.8 percent in 2011 over the previous year, while ABC and NBC Sports Network average viewership increased by 28 percent, according to IndyCar. In another measure of success, IndyCar also has seen a lift in sponsor activation. Sponsors in 2011 increased activation expenditures 22 percent over the previous year, said Greg Gruning, IndyCar s executive vice president of corporate business development. And the motorsports series plans to build on that success in This is going to be a good year for IndyCar. You ll see more sponsors and more activation programs, said Gruning, who spoke to IEG SR in advance of the Feb State of IndyCar event in Indianapolis IEG, LLC. ALL RIGHTS RESERVED. 1

2 Discover Helps Open The Door To More Sponsors Discover will leverage the IndyCar Series with two co-branded credit cards. One card will feature an image from the 1960 Indy 500, while the other will feature a contemporary race car. The credit cards will offer a number of customer perks ranging from autographed hero cards and race credentials to once in a lifetime experiences such as the opportunity to attend a breakfast with an IndyCar legend or ride in a pace car or two-seater. The IndyCar Discover card will offer tailored benefits and exclusive access to events that cardmembers care about most, said Kevin O Donnell, vice president issuance, Discover Network. The card is Discover s first co-branded product with a motorsports property, he said. First National Bank of Omaha will issue the card. While the Discover deal is significant in that it marks IndyCar s first partner in the credit card category, what is truly notable is how it will help the motorsports series identify new sponsors and build relations with existing partners. The partnership will accomplish those goals in the two following ways: In-depth audience research. IndyCar will use the partnership to gain data on cardholder buying habits. The racing series will receive the information from Segmint, Inc., a technology company that tracks credit and debit card usage. IndyCar will use the data to better understand its fan base and identify potential sponsors. The data analysis company tracks what products and services cardholders buy and where they make purchases. If the data shows that my fan base loves dogs, I can to a PetSmart or Purina with third party authenticated research. I m not approaching them on a hunch, said Gruning, sharing a hypothetical example of how IndyCar can use the info. The data will support the league s existing consumer research, he added, noting that the Discover/FNBO relationships help alleviate the cost of accessing additional data. I would have to pay a lot of money to get this kind of analysis. In addition to the co-branded Discover card, Segmint will share information on credit cards issued by other banks with whom it works. IndyCar can use the data to track spending habits on specific activities and products, such as motorsports events and car parts, as well as geographic areas, such as purchases that have been made within a 150-mile radius of a specific track. OTHER NEW IZOD INDYCAR SERIES SPONSORS SPONSORS Fuzzy s Ultra Premium Vodka SPONSORSHIP/ACTIVATION Spirit brand will tout the IZOD IndyCar Series and Vision Racing on point-of-sale material and other marketing collateral at on-premise accounts. The company also plans to run a drink promotion in which consumers can vote on their favorite beverage made with Fuzzy s Ultra Premium Vodka. Lids Hat retailer will expand IZOD IndyCar Series merchandising presence in 2012 by hosting retail outlets in the IndyCar Fan Village and two other locations at each track. The locations will be staffed by local Lids employees. Ortsbo App developer will use its technology to translate presentations at live IndyCar events. For example, IndyCar will use the technology to translate comments from IndyCar CEO Randy Bernard in a real-time setting during the Feb State of IndyCar event IEG, LLC. ALL RIGHTS RESERVED. 2

3 The auto racing series also will use the data to enhance its fan outreach and social media initiatives, said Gruning. The data will help us get smarter on how we market our sport and communicate with fans. Cross-promotional platform. Recognizing the value of sponsor cross-promotions ( The Importance Of Sponsor Cross-Promotions ), IndyCar plans to leverage the co-branded card with its other corporate partners. The motorsports series hopes to accomplish that goal by tapping sponsor assets to enhance the card s rewards program and promote the product. In exchange, the sponsors will gain exposure in card marketing activity. This provides an opportunity to engage other partners from a promotional and co-marketing standpoint, said Mark Sibla, IndyCar s vice president of partner strategy. IndyCar is working with five partners on the program, he said. Source Discover Financial Services, Tel: 224/ IZOD IndyCar Series, Tel: 317/ IEG, LLC. ALL RIGHTS RESERVED. 3

4 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING FEBRUARY 13, ONE-ON-ONE HUMANA TAKES SPONSORSHIP TO HEART Humana employs strategies and tactics from CPG industry to build its brand and promote health and wellness positioning. Sponsorship is playing an increasingly important role in bringing Humana Inc. s brand to life. The health insurance company is placing more focus on the marketing medium as a platform to support its wellbeing brand positioning and encourage consumers to lead active, healthy lives. Demonstrating its health focus, Humana leveraged the Jan Humana Challenge PGA Tour stop by distributing 12,000 pedometers to spectators and other event participants. It also offered body mass screenings and other health education activities through an on-site interactive experience. Those efforts build on CEO Mike McCallister s effort to personalize the Humana brand and connect with consumers on a one-to-one level. Looking to take those efforts up a notch, Humana in July 2010 hired former Anheuser-Busch marketer Ed Farley as director of brand advertising and sponsorship, a new position. His charge: To build brand loyalty and enhance Humana s value proposition using tactics and strategies from the CPG industry. IEG SR spoke with Farley about the company s approach to sponsorship, its evolving marketing strategy, the Humana Challenge and other topics. Below are edited excerpts from the conversation. IEG SR: Humana sponsors a number of properties ranging from the PGA Tour to the Taste of Chicago. What kind of role does sponsorship play for the company? Farley: We use sponsorship as an advertising platform to build our core message, which is all about encouraging healthy behavior and life-long well-being. Sponsorship gives us the opportunity to connect with our audience and bring our brand to life. It lets people know that healthy things can be fun, and fun things can be healthy. IEG SR: You joined Humana in 2010 after serving in a number of marketing positions at Anheuser-Busch. What is your charge at Humana? 2012 IEG, LLC. ALL RIGHTS RESERVED. 4

5 Farley: Raja Rajamannar, Humana s senior vice president and chief innovation and marketing officer, and Phyllis Anderson, vice president of marketing, brought me on to lead brand marketing, advertising and sponsorship. Humana has a charge to grow the brand into a more participatory, engaging value proposition, and my CPG background can help. There s a ton of potential in the health care space as we move into an environment where consumers have more choice. A company s brand has become more important in identifying what makes it unique. We have a unique and special value proposition, which is all about relationships and personal attention. The brand becomes a place where you want to spend time and create an emotional connection with consumers. IEG SR: Golf plays a major role in Humana s sponsorship portfolio. What is attractive about the sport? Farley: One thing about golf is that everyone moves, including players, caddies and spectators. That was a key insight into the Humana Challenge. The surgeon general recommends that people take 10,000 steps a day. That s about the same number of steps it takes to walk an 18-hole golf course. We engage spectators by distributing pedometers they can use to measure their progress. The event becomes more about well-being than just the sport of golf. It s an innovative way to use sports marketing to encourage our vision and mission of life-long well-being. That s the inspiration for the Humana Challenge. IEG SR: Do you also use golf to reach business audiences? Farley: We try to make golf a B2B and B2B play. Personal well-being is a vein that runs through all of our sponsorships, and we use sponsorship to bring it to life. When we do a B2B program, we try to encourage brokers, agents and other business partners to walk the course and familiarize themselves with our core brand strategies. We want them to understand our mission and what makes us different from our competitors. IEG SR: Humana sponsors Dollywood, Silver Dollar City and other Herschend Family Entertainment properties. Tell me about those. Farley: We use the partnerships to promote our Medicare and Humana Medicare Advantage products to seniors. They provide an opportunity to build awareness and talk about plans and packages to a captive, concentrated audience. IEG SR: Humana sponsors a number of other regional properties, including the Taste of Chicago. Tell me about those partnerships. Farley: The Taste of Chicago is a great example of what we hope to accomplish from a sponsorship. We sponsor the healthy eating pavilion at the event, and we ask participating restaurants to submit their healthiest recipes. We have a panel of dieticians rate the dishes for a green apple seal of approval. We ve done that for four years, and it s been hugely popular. That s a great example of what we try to do on both a national and regional basis. Source Humana Inc., Tel: 502/ IEG, LLC. ALL RIGHTS RESERVED. 5

6 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING FEBRUARY 13, TELECOMMUNICATIONS SAMSUNG MOBILE CALLS UP NEW SPONSORSHIPS Handset maker expands sponsorship portfolio to promote new products, reach new audiences and gain B2C and B2B marketing platforms. Samsung Telecommunications America, LLC ( Cell Phone Makers Expands Sponsorship Portfolios ) has embarked on two uniquely different sponsorships, one in fashion, the other in sports. Samsung is using the ties to promote two different products, reach two different audiences and build relations with two wireless carriers. Case in point: Samsung and AT&T Inc. have teamed with apparel brand rag & bone to support the launch of the Galaxy Note. On the sports front, Samsung and Verizon Wireless have expanded an existing partnership with the NBA Phoenix Suns with a B2B marketing platform on behalf of the Galaxy Tab Below, the breakdown of both deals: Rag & Bone Helps Hit The Right Note Samsung and AT&T aligned with rag & bone to promote the Galaxy Note, a smartphone slated for U.S. release on Feb. 19. The two companies will co-title the fashion brand s Feb. 10 winter collection shows at Mercedes-Benz Fashion Week in New York City. Rag & bone designers David Neville and Marcus Wainwright also will design a custom case for the Note and will host the product s U.S. launch party on Feb. 14. The sponsorship provides direct access to creative and other early adopters, a demographic that has historically been the domain of Apple Inc. s iphone. The Galaxy Note is the perfect device for designers, as it allows everyone to sketch out thoughts and ideas, and easily share no matter where you are, said Dale Sohn, president of Samsung Mobile, in a statement. Samsung and AT&T later this month will launch a campaign touting the Note and rag & bone collaborations. The two companies also will launch a Facebook page that will feature daily giveaways of rag & bone merchandise, wireless devices and VIP passes to the apparel brand s Fashion Week show IEG, LLC. ALL RIGHTS RESERVED. 6

7 New York City-based MAC Presents brokered the deal on behalf of Samsung; CAA negotiated the tie on behalf of rag & bone. Rag & bone sells through seven eponymous stores in the U.S. as well as Barneys New York, Bergdorf Goodman and other upscale boutiques and department stores. Phoenix Suns Provide B2B Calling Card Samsung and Verizon Wireless have expanded their year-old partnership with the NBA Phoenix Suns by equipping the team s business and basketball operations with the Galaxy Tab and 4G LTE technology. The partnership helps support the Suns positioning as a forward-thinking team in using social media and other new technology to engage fans, sponsors and other stakeholders, said Brad Casper, the Suns president of business operations. The Suns will use wireless tablet technology across its basketball and business operations. On the basketball front, players will use the Galaxy Tab to review the team playbook, watch game and practice videos and check out travel itineraries. The program will provide Samsung and Verizon a case study on how wireless technology can help other potential B2B customers, Casper added. This partnership will provide a B2B case study when they call on professional basketball teams and other types of organizations. The Suns also will use the tablet as a sponsor activation tool. The team plans to use the Galaxy Tab to sign up new members for Fry s loyalty card program. The supermarket chain previously relied on an on-site booth to recruit new members. That s one example of how we can use the technology to open up marketing possibilities that haven t existed before, said Casper. The team also will use the tablet to show simulated sight lines in US Airways Center to potential season ticket holders. It also plans to launch an app within the next several weeks that fans can use to access real-time statics and other content on their tablets. Sources Samsung Telecommunications America, LLC, Tel: 972/ Phoenix Suns, Tel: 602/ IEG, LLC. ALL RIGHTS RESERVED. 7