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 SEPTEMBER 16, STRATEGY INSIDE BANCO SANTANDER S GLOBAL SPONSORSHIP STRATEGY Banking giant credits sponsorship with building brand preference and boosting employee morale. Banco Santander s sponsorship strategy is paying dividends. The Spanish banking giant aligned with Formula One in 2007 and a handful of high-profile Latin American soccer tournaments in 2008 to build its brand on the global stage and support its positioning as one of the world s leading international banks. The company whose portfolio includes the Scuderia Ferrari Formula One team, the Libertadores Cup and other properties credits the partnerships with building awareness and brand reputation among customers, prospects, employees and other stakeholders as well as opening the door to new commercial opportunities. That success includes the following: A 19 percent increase in awareness in key countries A 20 percent increase in recognition in the United Kingdom since the launch of the Formula One program Status as the second-ranking brand most strongly associated with soccer in Latin America Eighty-two percent of employees say they feel prouder of working at Santander as a result of the bank s sponsorships A 25 percent increase in appraisal among customers and a 41 percent increase among non-customers Santander has expanded its portfolio to build its presence in the U.S. market. KEY SPONSORSHIP DECISION-MAKERS Juan Manuel Cendoya, senior executive, vice president of communications, corporate marketing and research María Sánchez del Corral, head of corporate marketing and brand The bank this year signed a new partnership with the Confederation of North, Central American and Caribbean Association of Football (CONCACAF) and the 2013 Gold Cup to support the conversion of the Sovereign Bank 2013 IEG, LLC. ALL RIGHTS RESERVED. 1

2 brand under the Santander name. The company which purchased Sovereign in 2009 is in the process of converting the bank s roughly 700 branches under its corporate name. In the prepared document below, Banco Santander shares an overview of its sponsorship strategy, the thinking behind Formula One and soccer, how it activates sponsorship, and other topics. Banco Santander s sponsorship of Formula One represents the worldwide appeal of the motorsports series. The sponsorship has helped Santander become a more recognizable brand worldwide and a more highly valued brand. Since 2008 Santander has sponsored the best soccer competitions in Latin America, the sport par excellence in the region. In addition to brand recognition and reputation, the sponsorships have enabled the bank to achieve considerable commercial results. The main objective of Banco Santander s sponsorships is to strengthen its positioning as a leading global bank and to boost the prominence of the Santander brand in its markets. This plan has been made possible due to the strategic vision and drive of Emilo Botin, the chairman of Banco Santander. The plan was set in motion after the brand convergence in the bank s markets between 2004 and Years before defining the sports sponsorship strategy, Santander was already one of the world s top banks by profits and market value. But the bank s reputation and renown was not in keeping with those results. In order to rapidly reinforce the bank s international position different possibilities were analyzed. From the beginning it was clear that Formula One and football in Latin America were the best instruments to achieve this international fame. The two sports have more spectators than any other sport worldwide, thus offering a solid platform upon which to reach the public at large during their leisure time. Formula One: The Best Opportunity In 2010 Banco Santander and Ferrari two of the most prestigious brands worldwide sealed an alliance whereby the bank would become the official sponsor of the Formula One team with a prominent presence on the cars and equipment. This alliance, which initially was to last five years until 2014, was later extended through 2017 as a result of immediate improvements to brand presence. The bank sponsored McLaren between 2007 and 2009 and since 2010 it continues to sponsor McLaren drivers. The bank also sponsors Grand Prix races in its most relevant markets Brazil, Spain, Italy, the United Kingdom and Germany thus offering a very strong and stable brand presence, albeit over a shorter period of time. The successful formula consists of properly combining the sponsorships of Ferrari and the Grand Prix races. Furthermore, supporting an event which attracts hundreds of thousands of spectators to a country is a boon for tourism and investments. Sponsorship has improved the appraisal of the bank by 25 percent among customers and by 41 percent for noncustomers. In Spain, Santander was the top brand associated with sports in 2012 for the second year in a row ahead of Coca-Cola. Banco Santander s sponsorship of Formula One also offers brand fame and affinity and allows the bank to appeal to a younger audience. If also creates a sense of pride among employees. Knowledge of the Santander brand has increased by an average of 19 percent in the bank s key countries. Today, 82 percent of employees say they feel prouder of working at Santander IEG, LLC. ALL RIGHTS RESERVED. 2

3 Thanks to the sponsorship of the British Grand Prix and its drivers, Santander is now a brand that is fully recognized in the United Kingdom, and a highly prestigious one at that. Specifically, recognition of Santander in the U.K. has risen by 20 percent to 92 percent since Formula One is an excellent global platform to unify the brand and the international position of Banco Santander thanks to its 600 million unique spectators and 8.7 billion followers around the world. Formula One has a particularly high level of loyal fans in Banco Santander s key markets. Thirty percent of F1 fans around the world live in the bank s key markets and account for around 75 percent of profits. The passion for the sport connects the bank to the public. Furthermore, the support of the sport is part of Santander s commitment to society and associates the bank with the values of teamwork, innovation, competitiveness, leadership and technology. Formula One is the best marketing opportunity in the bank s history and the best tool to convey confidence, strength, loyalty and commitment to customers. Formula One allows efficient and centralized management from the bank s headquarters in Spain and has a lot in common with the values and attributes of Santander: innovation, competitiveness, technology and leadership. Banco Santander took a decisive step up when it became the official sponsor of Ferrari. Ferrari is more than a team: it is the most important and admired brand in Formula One, and is possibly the world s best car. Banco Santander is associated with Ferrari in an intuitive way, through the exchange of values and attributes of two leading companies. What s more, Ferrari has more matches on Google than Real Madrid and Manchester United combined. The Bank of Latin American Football In addition to Formula One, Santander is committed to soccer in Latin America. Since 2008 Santander has sponsored the best soccer competitions in the region: the Libertadores Cup, the main club competition; the South American Cup, the second most important cup; and the Americas Cup, the most important tournament for national teams. After the World Cup, the Americas Cup is, together with the European Championship League, the most highly valued soccer tournament worldwide. For the first time, Banco Santander is one of the main sponsors of Gold Cup 2013, the most important tournament of the Confederation of North, Central American and Caribbean Association Football (CONCACAF). The sponsorships and activity around them advertising campaigns, special offers, hospitality, etc. have allowed Banco Santander to adopt a position as the soccer bank in Latin America. In fact, Banco Santander is the second-ranking brand most strongly associated with soccer in Latin America after Coca Cola with a 66 percent association rate. Around 40 teams take part in the Libertadores Cup. The teams represent 11 Latin American countries which every year have a total audience of 1.1 billion people. Twelve countries take part in the Americas Cup. The tournament arouses a great deal of interest worldwide it can be viewed in 200 countries due the participation of soccer stars from the world s most prestigious teams. Using Sponsorship As A Commercial Tool Banco Santander s sponsorship of Formula One and soccer work very well as a commercial tool. For example, 96 percent of Banco Santander employees think that the sponsorship with Ferrari is a good marketing tool that will continue to generate new business IEG, LLC. ALL RIGHTS RESERVED. 3

4 One out of every two Formula One fans claim to be a Ferrari fan, and 80 percent would take out a financial product connected to the Formula One/Ferrari world. Seventy-five percent of branch managers state that Ferrari is the most attractive team a bank can focus special offers on. Banco Santander has been very successful in launching the Santander-Ferrari credit card in Germany, Brazil, Chile, Spain, Mexico, Portugal and Uruguay. All over the world, more than 500,000 customers have the card, which is Ferrari s first-ever financial product. The sponsorship also allows Santander to work with great figures in their respective countries such as Fernando Alonso, Felipe Massa, Pele or Neymar, making them an extraordinary commercial tool. Source Banco Santander, S.A., Tel: 91/ IEG, LLC. ALL RIGHTS RESERVED. 4

5 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING SEPTEMBER 16, CAUSE MARKETING BIRDS OF A FEATHER: PENNINGTON FINDS SUCCESS FROM CAUSE TIE-IN Sponsors can improve odds of success by moving beyond one-off programs in favor of long-term integrated partnerships. Cause marketing has come a long way over the past few years. To truly make an impact, companies need to move beyond one-off transactional relationships in favor of long-term partnerships that demonstrate their commitment to a nonprofit s mission. Central Garden & Pet Co. has taken that approach around its two-year-old partnership with the Cornell Lab of Ornithology. Rather than activating the tie with a traditional donation-with purchase campaign, the company supports the partnership with a multifaceted program designed to meet the marketing objectives of the Pennington bird seed brand and the Lab, a nonprofit at the forefront of the study of birds and biological diversity. All too often in cause marketing, companies and nonprofits come together on short-term or one-off activations versus aligning mission and common goals for longer-term opportunities. Upfront collaboration, evaluation and alignment of each partner s mission helps create the gestalt that one plus one equals three, said Brian Sockin, CEO of CoOptions Shopper Marketing, Pennington s shopper marketing agency of record. Our goal is to build collaborative expert voice and content that allows the Pennington brand to give our consumers an experience. We want the consumer to feel like when they buy a bag of bird feed and feeder, they re getting a whole world of resources. Central Garden & Pet in 2011 partnered with the Lab to create a point of differentiation in the bird seed category a category often viewed as a commodity and reposition Pennington as a consumer packaged goods brand. The wild bird category has generally been commodity focused, but in recent years Pennington has been building the line as a more traditional consumer packaged goods brand, said Sockin IEG, LLC. ALL RIGHTS RESERVED. 5

6 In addition to stepping up its game with base birding enthusiasts, Pennington is using the tie to expand the bird seed category. The company is targeting young adults and families by promoting bird watching as a fun backyard activity, with the goal of growing participation. BEST PRACTICE A ROADMAP TO SUCCESSFUL CAUSE ALLIANCES Pennington aligned with the Lab due to the nonprofit s positioning as the leading expert and steward of the birding community and conservation, said Sockin. Pennington articulated its objectives including its interest in helping the nonprofit reach new audiences at the beginning of the relationship. That communication has played a key role in the partnership s success, said Mary Guthrie, the Cornell Lab of Ornithology s director of corporate partnerships. Pennington is a great match for us. Their products are of interest to our constituents, and they had the clarity of mind to support our nonprofit and mission. Pennington is activating the tie through the following touch points, all of which are designed to generate excitement around bird watching, an activity of interest to roughly 60 million Americans. In-store Promotions At Walmart Central Garden & Pet over the past two years has activated the partnership with a month-long promotion around the Great Backyard Bird Count. The GBBC encourages bird watchers to monitor and track bird sightings over a four-day period in February. Central Garden & Pet touted the event through a national in-store promotion at Walmart. In-store displays featured information on the GBBC while specialty-marked packages of Pennington Ultra Songbird Blend dangled a free pair of binoculars and a bird watching guidebook. The promotion helped drive participation in the GBBC. Roughly 150,000 households this year participated in the event, up from around 100,000 in While the Lab promoted the GBBC through multiple marketing channels, the Walmart promotion helped expose the event to a new audience, said Sockin.. With a 20-plus year background in sponsorship, Brian Sockin, CEO of CoOptions Shopper Marketing, has developed dozens of cause-related marketing programs for companies and brands. Below, the sponsorship vet shares seven tips on how companies can get the most out of cause-based marketing programs: Partnering with a cause is a journey, which can be anything from underwhelming to outstanding, depending on the steps you take before and during the trip. Here are a few guidelines to help avoid the potholes and maximize the effectiveness of cause-based marketing on the road to success: Align the steering before the trip. Make sure your brand positioning and mission are fully aligned with that of the cause organization with which you are considering a partnership. When working with a cause, whether short or long-term, what they stand for and how they are positioned and perceived becomes part of your brand s forward face to consumers. Choose your partner carefully. Choose the best route: an existing or new destination? Marketers seeking to change their brand image by aligning with a cause to migrate consumer perception versus reinforce and grow positive perceptions that already exist do a disservice to their cause partners and own brands over the long term IEG, LLC. ALL RIGHTS RESERVED. 6

7 Central Garden & Pet followed up the GBBC promotion with a bird feed ornament kit around the Christmas holiday. The promotion which also was exclusive to Walmart dangled a bird ornament making kit with holiday molds in specially-marked packages. People scooped them up like crazy, said Sockin, noting that the retailer engaged mommy bloggers to promote the special offer. The promotions have paid off for the two organizations. Aided brand awareness of the Cornell Lab of Ornithology was 50 percent higher among Walmart customers than the general population of bird seed buyers, according to Pennington brand awareness research conducted after the first year of the relationship. What we re doing in-store has had a major impact on building the Cornell Lab of Orthinology name, said Sockin. School Outreach Initiatives Central Garden & Pet also activates the tie to reach students and teachers. That includes a tie to the nonprofit s educational outreach programs. For example, the company supports the Feathered Friends program a program jointly created by Pennington and the Lab by working with the nonprofit s education staff to distribute bird feeders at national and regional National Science Teachers Assn. events. The company also uses brand ambassadors to bring the program to life at nature centers and other community organizations. Pennington plans to enhance the partnership with additional programs going forward, said Sockin. Sources Cornell Lab of Ornithology, Tel: 800/ CoOptions Shopper Marketing, Tel: 919/ Content is still king of the road. When considering a cause based alliance, educate and empower your consumer passengers. Consumers need to have reasons to believe, not just in your brand or the cause, but why you are traveling together. Make every mile count. It s easy to make a donation, slap a logo on a package and call it a day. Don t get me wrong, donations are good for your cause partner, but they are one dimensional. Like a sports car with a beautifully polished exterior but nothing under the hood, consumers can dismiss or even react negatively without more. Partners should establish a mandate upfront to help build each other s brand by activating with promotions that truly engage consumers and reinforce positive behavior for your product and the cause. You might look good, but you won t get far in just first gear. Share the driving. Evaluate the assets each party will bring to the table and where the expert voices and best vehicles are garaged. Share and rely on each other s expertise and collaborate to build on each other s knowledge, communications vehicles, events and brand equity. Don t hog the road. Cause marketing should always be a two-way street. Take the scenic route. All too often we see one-off sponsorships in cause marketing, the shortest route to a short-term destination. True cause marketing is about building trust and continuity with consumers, so plan a long trip with many stops. Use conventional and digital assets for further linkages so that consumers can experience the journey with you. Are we there yet? Causes elicit consumer emotions, sometimes with deep passion and belief system impact. Just like how a cause based organization stewards its cause, you have to set your own GPS and steward the relationship. The most effective cause marketing takes time to nurture consumers and effect behavior. Like the saying goes, the journey is the destination. Take the time you need and never forget to enjoy the ride IEG, LLC. ALL RIGHTS RESERVED. 7

8 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING SEPTEMBER 16, SPONSOR PROFILE BNY MELLON BANKS ON EXPANDED SPONSORSHIP PORTFOLIO Wealth manager uses sponsorship to support brand attributes, engage customers and recruit employees. With the exception of the BNY Mellon Boat Race in London, The Bank of New York Mellon Corp. has kept a fairly low presence on the sponsorship scene. But that is starting to charge. The company recently inked two significant sponsorships: presenting status of Boston s Head of the Charles Regatta and cosponsorship of the NFL San Francisco 49ers, a tie that affords founding status of Levi s Stadium, the team s future home in Santa Clara, Calif. The wealth management company uses sponsorship to accomplish five primary objectives: Build exposure in markets with a large employee base Promote attributes of teamwork and collaboration Entertain intermediaries and other stakeholders Promote thought leadership Recruit employees For example, BNY Mellon uses the Head of the Charles regatta to build visibility in Boston, the location of its wealth management headquarters and Standish investment management subsidiary. BNY Mellon will activate the Oct event with client hospitality. The company will host its annual investment conference in Boston the week of the event, around which it will host customers and other stakeholders at the regatta. The sponsorship provides an opportunity to engage stakeholders outside of conference rooms and other marketing vehicles, said Paul Nobile, director of marketing for BNY Mellon Investment Management. Access and transparency is something that our clients value, and that can be hard to convey through white papers and webinars. Nothing is as valuable as one-to-one conversations IEG, LLC. ALL RIGHTS RESERVED. 8

9 The Head of the Charles builds on BNY Mellon s sponsorship of the Oxford and Cambridge Boat Race in London. The financial services company last year signed five-year title of the nearly 200 year-old event. In addition to gaining exposure on the race s TV broadcast the event is viewed by roughly seven million people on the BBC BNY Mellon uses the sponsorship to promote its thought leadership through an affiliation with the prestigious schools. Investment management is about delivering smart solutions and working with the brightest minds in the industry. An association with two world class legendary institutions felt right for us. The sport of rowing also provides a platform to promote the company s attributes of teamwork and collaboration, said Nobile. Rowing is about pulling in unison to win it s not about one star player. The company activated the April boat race with the Which Blue Are You? campaign, around which it encouraged fans to share their school affiliation on The site also features news, games and other content. The sponsorship was driven in part on behalf of BNY Mellon s Newton subsidiary, a London-based asset management company. BNY Mellon partnered with the San Francisco 49ers to build its presence in California, the location of the company s Mellon Capital unit. The subsidiary is based in San Francisco. The company was drawn to the team s new stadium in Silicon Valley, a market of interest to its wealth management business, said Nobile, noting that BNY Mellon plans to open an office in the market in the near future. In addition to providing visibility in front of affluent consumers, the bank also will use the tie to recruit employees from the technology industry. BNY Mellon provides services that allow the financial system to work, and because of that we re a huge recruiter of top technology talent. I can t image a better recruiting vehicle than one in Santa Clara County it has the best and brightest minds in technology. Source Bank of New York Mellon Corp., Tel: 212/ 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