IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING
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1 SPONSOR PROFILE JOHN HANCOCK TAKES RUNNING ON THE ROAD Financial services company places more focus on using sponsorship to build relations with independent distributors. John Hancock Financial Services, Inc. is taking the Boston Marathon on the road. The company is activating the 30-year-old tie with 5K events across the country for distributors and their employees. John Hancock which markets life insurance, wealth management and other products and services through independent agents plans to host more than a dozen events in 2015, up from roughly six last year. Ours is an ever-changing business, and building relationships with intermediaries is very important to us. Financial services is an intangible product, so we have placed more focus on using our sponsorship portfolio to build trust with the men and women who sell our products, said Robert Friedman, assistant vice president of sponsorship and event marketing with John Hancock. Each 5K event draws between 100 and 1,300 participants including members of the John Hancock Elite Athlete Team, said Friedman, noting the company may eventually expand the program to include customers. The program continues to grow. More folks have taken notice, and it s been very well received. John Hancock uses sponsorship to accomplish three primary objectives: Build the John Hancock brand Build relationships with key stakeholders (advisors, customers, employees and the local community) Drive sales Like the 5K events, John Hancock uses the Boston Marathon as a platform to build relationships. Hundreds of employees volunteer and run in the event, as well as clients. The company also uses the event to raise funds for more than 100 nonprofits. John Hancock this year activated the marathon with a digital time capsule, a social media campaign that encouraged consumers to be part of the marathon legacy by sharing stories, photos and videos with the We Run Together hashtag. The company donated $1 to the Boys and Girls Club of Boston for each submission IEG, LLC. ALL RIGHTS RESERVED. 1
2 Social media is taking on greater importance for us, and I expect we ll see more of that in the coming years. The Boston Marathon sponsorship runs through John Hancock s other major sponsorship is the MLB Boston Red Sox, a partnership that includes a significant presence in Fenway Park. The company has sponsored the team for nearly 25 years. John Hancock is a subsidiary of Toronto-based Manulife Financial Corp. Using Endurance Sports As A Global Platform In what may represent the first step in using endurance sports as a global marketing platform, Manulife has signed a five-year sponsorship of Cambodia s Angkor Wat International Half Marathon on behalf of its eponymous brand. John Hancock is sharing its 30 years of experience in the endurance sports space with its Asian counterparts. We re working closely with our colleagues in Asia to help them plan, coordinate and activate the sponsorship. It s a great demonstration of cross-border collaboration. The December event draws more than 8,000 runners from more than 70 countries. Manulife Financial acquired John Hancock in Source John Hancock Financial Services, Inc., Tel: 617/ IEG, LLC. ALL RIGHTS RESERVED. 2
3 SIDEBAR JOHN HANCOCK TO GIVE BOSTON MARATHON NEW VITALITY John Hancock may join the growing number of financial services companies using sponsorship to promote Vitality insurance products. The company in April announced a partnership with Discovery Ltd., a global financial services company that offers incentive-based wellness programs to employers. The products offer savings on annual premiums and discounts from retailers to policyholders who take steps to improve their health. John Hancock has launched two Vitality products: Protection UL with Vitality and John Hancock Term with Vitality. I expect there will be some integration with athletes (on the John Hancock Elite Athlete Team) to educate producers about the product, said Robert Friedman, assistant vice president of sponsorship and event marketing with John Hancock. John Hancock would not be the first company using sport to promote Vitality products. As previously reported in IEG SR, Humana Inc. sponsors the Kentucky Derby Festival marathon and other events on behalf of the Humana Vitality Humana ( Vitality Gears Up Sponsorship Program, 9/17/2012) brand. More recently, Vitality in May announced a new partnership with AFC Bournemouth. The tie builds on a portfolio that includes rugby (England Rugby, Scottish Rugby, Rugby Football Union, etc.); cricket (Sky Sports 2015 Cricket World Cup channel); endurance sports (Vitality World Triathlon London) and other soccer clubs (Arsenal, Liverpool, Manchester City, etc.). Vitality uses sponsorship to encourage healthy behaviors and reward members. The company activates the Rugby Football Union by giving members the opportunity to win tickets, autographed merchandise, player meet-and-greets and other once-in-a-lifetime experiences. Discovery in late 2014 announced an agreement to acquire the entire share capital of Prudential Health Holdings Ltd., the holding company of PruHealth and PruProtect, the U.K. joint venture with Prudential Assurance Co. The company previously sponsored on behalf of the PruHealth and PruProtect with Vitality health and life insurance brands. Source John Hancock Financial Services, Inc., Tel: 617/ IEG, LLC. ALL RIGHTS RESERVED. 3
4 SIDEBAR THE MOST ACTIVE CATEGORIES SPONSORING ENDURANCE SPORTS When it comes to sponsorship activity in endurance sports, insurance companies are moving to the front of the pack. Insurance was the most active non-endemic category sponsoring marathons, 5Ks and other endurance sports events in 2014, according to IEG research. Insurance companies were 4.9 times more likely to sponsor endurance sports than the average of all sponsors. Insurance was the fourth most active sponsor among all categories in 2013 (4.3) and the sixth most active category in 2012 (3.9). Sports apparel and equipment companies were the most active sponsors of endurance sports in 2014 followed by sports nutrition. MOST ACTIVE CATEGORIES SPONSORING ENDURANCE SPORTS (NORTH AMERICA) Sports apparel & equipment companies are 8.2 times more likely to sponsor endurance sports than the average of all sponsors IEG, LLC. ALL RIGHTS RESERVED. 4
5 WHO DOES WHAT WHO DOES WHAT: LIFE INSURANCE Chinese insurers lag their European and North American counterparts in using sponsorship as a marketing platform. The life insurance category has yet to reach its full sponsorship potential, particularly among companies based outside North America. Although MetLife, Prudential and Manulife Financial are active sponsors, some of the category s largest players have yet to fully embrace sponsorship. Case in point: China Life and China Pacific the category s largest and ninth-largest companies, respectively are some of the industry s least active sponsors. Life insurance companies use sponsorship for three primary reasons: build brand visibility (particularly in new and/or emerging markets); engage sales intermediaries and customers; and demonstrate community involvement. Sales as of September Source: Statistica 2015 IEG, LLC. ALL RIGHTS RESERVED. 5
6 ACTIVATION HOW THE SAN FRANCISCO 49ERS APPROACH THE TECHNOLOGY CATEGORY NFL team uses creative counsel to ensure activation programs are authentic and relevant. With its hometown in the heart of Silicon Valley, the San Francisco 49ers serve as a best-in-class example of how sports teams and other rightsholders can work with companies in the technology category. The team s approach to the category is straightforward: product integration must enhance the fan experience. Having technology for technology s sake isn t what we re collectively looking for. It s how we use our partners technology to make it authentic and relevant to our fan base, said Brent Schoeb, the San Francisco 49ers director of corporate partnerships. Schoeb points to Intel as an example. The semiconductor giant plans to leverage the upcoming NFL season to showcase motion-detecting camera technology. Intel will demonstrate the technology via three on-site stations where fans can make a virtual pass, catch or kick from the perspective of a 49er player on a digital screen. Intel has a ton of microprocessors. How do we find a product that makes sense and showcases technology that is relevant to 49ers fans? To ensure sponsors make the most of activation, the 49ers have created a creative counsel to keep programs on track. The counsel is comprised of a cross-section of internal and external stakeholders including sponsors and 49ers sponsorship, marketing and stadium operations personnel. The creative council signs off to make sure each activation is authentic and relevant to fans. Below, two new technology-centric activation programs for the 2015 NFL season. Esurance and Faithful 49. The direct-to-consumer insurer ( Esurance Moves Into The Big Leagues With Major League Baseball, 5/18/2015) is exploring several different activation programs for the 2015 season. One idea under consideration: Supporting its presenting sponsorship of the team s Faithful 49 fan engagement program IEG, LLC. ALL RIGHTS RESERVED. 6
7 Esurance will reward consumers who visit the brand s on-site activation area with yards (the program s digital currency). Fans can redeem yards for tickets, the opportunity to meet players and other perks. The insurer last year activated the 49ers with a virtual reality program in which consumers could visit the team s locker room, walk on the field and participate in a huddle. SAP and the SAP Tower. Looking to leverage its official partnership with the National Football League and the 2016 Super Bowl at Levi s Stadium, SAP ( The Rise Of The B2B Technology Category, 2/3/2014) plans to showcase real-time stats and analytics from action on the field via a digital pylon in the SAP Tower. SAP may also outfit suites with virtual reality technology to allow guests to view statistics as they happen. Source San Francisco 49ers, Tel: 408/ IEG, LLC. ALL RIGHTS RESERVED. 7
8 ABOUT IEG AND ESP PROPERTIES IEG has shaped and defined sponsorship over three decades. It is the globally recognized source for industry insights, trends, training and events via sponsorship.com, its annual conference, online publications, trend reports, surveys and webinars. IEG is part of ESP Properties, a WPP company. As a commercial and creative advisor for rightsholders, ESP Properties helps organizations unlock greater value from their audiences and brand partnerships. Our consulting team assesses and advises how to grow the value of rightsholders commercial programs. We do this through a full range of services across data, digital and content development to better understand audiences and create more relevant ways to engage with them. This provides brand partners with new ways to connect with communities of fans and followers, growing the potential value of commercial partnerships. Our sales team provides partnership strategy and sales representation to the world s most active sponsors, within and beyond the WPP network of brand clients. Through WPP we have extensive contacts and deep insights into what it takes to create successful partnerships. INSIGHTS EVALUATION GUIDANCE IEG LEADS THE WAY IN SPONSORSHIP ANALYSIS, INSIGHT, VALUATION & MEASUREMENT WWW. SPONSORSHIP.COM For more information about IEG and the sponsorshp industry, please visit or call IEG, LLC. ALL RIGHTS RESERVED. 8
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