SPORTS NEWS YOU CAN USE

Issue 14--Sponsor-Created Events

Companies that are particularly committed to event marketing sometimes create their own events. There are several reasons why they might prefer to own an event rather than simply to sponsor it:

• They have the opportunity to develop an event specifically targeted to a particular audience.
• They don't have to worry about event organizers raising sponsorship fees each year.
• They have control over how an event is run and promoted.
• They can maximize the association between the event and their company, brand, or product.

Mike McNeil, vice president of marketing for the Hooters restaurant chain, explained why his company finds event ownership attractive: "If we don't like the way things are done, we can change them. When it comes to decision-making time, most sponsors are left out of the loop. In the normal business world, when it's your money, you have control. Too many sponsors leave themselves vulnerable in that respect. If the event doesn't go well, it reflects badly on the sponsor, as well as on the property." (1)

Similarly, Jeep/Eagle has moved toward owning its own events. According to Lou Bitonti, marketing manager, "We're bringing our promoters in and saying, 'New ball game, guys. We want to be your partner in events. Show us your manpower levels, your production costs, your breakeven points and we're going to help you." (2)

One of Jeep's properties is the King of the Mountain ski series. "We created the event and we have ownership of it," said Bitonti. (3)

"We had done celebrity ski events and pro races. They were not working. We decided to do our own downhill. We worked out a five-year plan with a promoter, covering what it was going to cost, how many sponsors we would bring in and what types of benefits we would offer." (4)

The King of the Mountain has grown from one event to five and has gone from syndication to a network time buy. Jeep sells ad time to Coca-Cola, AT&T, Visa, Hawaiian Tropic, and Goodyear Tire & Rubber.

Two other examples of companies creating events:

An event involving lawn mowers was a natural fit for Sta-Bil. The product keeps gasoline from deteriorating during storage and is often used in lawn mowers.

 

What was meant to be a one-time event proved to be so popular that it has been held yearly. Now there is a U.S. Lawn Mower Association and a Sta-Bil racing circuit. In 1996 there were 13 races across the country (12 regionals and a national championship).

 

Sta-Bil's races are divided into three classes based on horsepower and equipment. (A required modification on all vehicles--the blades have been removed.) Races are generally 3 to 9 miles long and run on a grass oval. A few are run on cement tracks, where some riding mowers can hit 60 miles an hour. No cash prizes are awarded, just trophies. Any money raised is donated to charity.

 

Most of the races are held in conjunction with community fairs and festivals in key markets around the country. In the South, where racing is most popular, as many as 4,000 to 6,000 people may show up to watch.

 

But the event's real value to Sta-Bil comes in the form of publicity. BrandWeek Magazine named the Sta-Bil Lawn Mower Racing Series the top media event of 1995. That year the company's video news release was shown on local news broadcasts around the world and seen by millions. The event also was featured on "Inside Edition" and as a half-hour show on Prime Network.

 

"We were up against a lot of big marketers with corresponding big budgets. I think the fact that we had such a tremendous return on a relatively small investment and such overwhelming television, radio, and print coverage made us rather unique," said Smith.

 

"What has helped this sport grow and has helped hold the media interest is the idea that the STA-BIL Series brings racing down to a level where just about anybody can afford to be a part of it. For a few Saturday's each year, these guys can feel like their favorite Indy or NASCAR driver. It really is Walter Mitty meets motorsports." (5)

In 1978 it started the Jose Cuervo Beach Volleyball series to promote its brand of tequila. Case sales nearly quadrupled from 1978 to 1993, at which time it was outselling all competitors combined by a 4-to-1 margin. Said Steve Goldstein, Heublein's vice president of public relations, "We created a legitimate sport with a party life-style." (6)

 

In 1988 the Yukon Jack Arm Wrestling Tournament was started to promote Yukon Jack Canadian Whiskey Liqueur. "This brand has always been one that has had a rugged male outdoor feel to it," said Sue Ritter, Heublein's director of marketing for Canadian products. "The type of consumers attracted to it are usually ages 21 to 30. They tend to participate in a lot of outdoor physical activities. Arm wrestling seems to work." (7)

 

In 1993 the Finlandia Clean Water Challenge (the world's longest canoe/kayak endurance race) was created to link the vodka brand to water sports and the environment. To add legitimacy to the race, Goldstein sought the blessing and advice of the American Canoe Association. According to Jeff Yeager, the association's executive director, "I remember my first meeting with Steve Goldstein. As he described the concept, I kept saying, 'But that's never been done before.' I must have said that a dozen times. At the end of the meeting he told me how glad he was I said that, because it was important to him to do something that nobody else had ever thought of." (8)

 

 

1 IEG Sponsorship Report, January 30, 1995.

2 IEG Sponsorship Report, May 6, 1996.

3 Advertising Age, November 18, 1996.

4 IEG Sponsorship Report, May 6, 1996.

5 Automotive Marketing, April, 1996.

6 Financial World, April 13, 1993.

7 The Hartford Courant, December 28, 1992.

8 Financial World, April 13, 1993.

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