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INTELLIGENCE REPORT – SPORT & ACTIVATION SPORT& ACTIVATION MAIN SPONSORSHIP ACTIVATION IN CANADA ENERG www.sportdecision.com INTELLIGENCE REPORT – SPORT & ACTIVATION INTRODUCTION Today, sport is viewed by the corporate world as a communica- What changes have occurred as a result of the emergence of tions agent that performs. The corporate sector has come to new technology? understand its advantages, and is now investing massively in sports sponsorship, whether through an amateur athlete, pro- This latest SportDecision intelligence report explores the major fessional team, federal or provincial sports federation, or local applications and initiatives used by businesses that are active or international sporting event. in sports partnership and provides examples specific to the Canadian market. How do these corporate partners manage their various sports sponsorships? What techniques and tools are the most used? Alain Hotzau - Editor SUMMARY 3 WHY EXPLOIT THE SPORTS SECTOR? 14 4 PRODUCT-CENTRED INITIATIVES -GETTING NOTICED -Molson Caps Off a New Original Contest -DEVELOPING AN IMAGE -Budweiser Super Bowl Tailgate Train -INCREASING SALES -Bud Light Stanley Cup Champions Hat program -ENERGIZING NETWORKS -CCM Vector Promotion -STANDING OUT FROM THE COMPETITION -McDonald’s Gold Medal Trio 16 5 ATHLETES 7 RULES FOR EXPLOITING -A Unique Situation in the Canadian Market A SPORTS PARTNERSHIP -Steve Nash: New Icon... in the U.S. -BASIC PREMISE: -Alexandre Despatie, McDonald’s Ambassador MAKE THE PARTNERSHIP COME ALIVE Support and Encouragement of Athletes -ESTABLISH THE SPONSORSHIP: MAKE IT KNOWN -Cheer and Believe in Canadian Athletes with Bell IN ORDER TO BE BETTER KNOWN -Petro-Canada’s Blizzard of Support -MANAGE SPONSORSHIP AND RIGHTS -Canada Post Freestyle Support Contest TO THE FULLEST 18 6 TOURS -VARY EXPLOITATIONS BASED -Tide@Wal-Mart Victory Lap Charity Program ON THE SPORTS SPONSORSHIP -NASCAR Canadian Tire Tour -PROVIDE FOR CRISIS MANAGEMENT -RBC Olympians Experience Tour -AVOID SCATTER -EVOLVE A PARTNERSHIP 20 7 SCHOOL PROMOTIONS -RBC Canadian Olympic School Program 9 TOOLS, ACTIONS, EXAMPLES -Petro-Canada Canadian Paralympic School Program -Often delicate or inappropriate situations 9 1 EVENT-BASED INITIATIVES -BMW F1 Pit Lane Park 21 8 INNOVATIVE EXPLOITATIONS -McDonald’s Shows Off on the Ski Hills -Purolator Tackle Hunger Program -Rogers Model Home -General Motors and Alpine Canada: A Winning Collaboration 10 2 ON-THE-GROUND PROMOTIONS -National Bank “Flash Mob” 22 9 COMMUNITY PROGRAMS -Oakley’s O Lab -Esso and Minor Hockey -Reebok Mobile Units -Hockeyville Scores Big for Kraft Canada -Rogers Cup Giant Exposure -MasterCard Hockey Mom of the Year! -The Danone Cup: A Local Success Story 12 3 CONTESTS -BMO Sponsorship Contest 24 10 THE NEW SPORTS MEDIA -Rogers Grey Cup Halftime Show Promotion -McDonald’s Line Up Contest -Holiday Inn CFL-wide Promotion -TELUS Activation Program Through Hockey -Petro-Canada Olympic Contest -Doritos Contest at the 2008 Super Bowl 25 WHAT DOES THE FUTURE HOLD -Campbell’s Grey Cup Tailgate Pros Contest FOR SPORTS SPONSORSHIP? SPORT & ACTIVATION 2 INTELLIGENCE REPORT – SPORT & ACTIVATION WHY EXPLOIT THE SPORTS SECTOR? Sports sponsorship is not meant GETTING NOTICED DEVELOPING AN IMAGE to replace traditional communi- Sports attract broad coverage by traditio- To associate one’s brand, product or cations media, such as adverti- nal and electronic media. For the corpo- services with sports is, first and fore- sing, public relations and sales rate sector, this is both an additional most, to espouse the values promoted promotion campaigns. Instead, alternative and an interesting communi- by the chosen discipline, athlete, team cations opportunity, compared with the or event. by offering significantly diffe- costs of paying for a full-fledged commu- rent advantages, it becomes a nications campaign. This goal applies mostly to recognized tool that can integrate easily brands that have considerable adverti- Sports sponsorship is a means of opening sing means at their disposal. At this level, into traditional communica- up new markets. By associating itself with the intent is to transfer strong values to tions and marketing activities. a local team, a company increases its visi- the brand or company image, which will bility and recognition with consumers. If have an indirect effect on sales. Companies can justify their investment in sports through multiple and varied goals. Here is an overview of the main To associate one’s brand, product or services with sports is, corporate motivations behind sports first and foremost, to espouse the values promoted by the chosen partnerships: discipline, athlete, team or event. this presence is accompanied by promo- BENEFITING FROM A HIGH tional activities, the sponsorship quickly VALUE-ADDED WINDOW ON PRODUCTS achieves the initial goal of establishing the Sports partnerships enable companies to brand in the target market. focus attention on the benefits and strong ENERG points of their product. At the end of 2006, Pizza Pizza, one of Canada’s leading quick-service restaurant We often talk about Formula One racing operators, announced its sponsorship pro- as a technology window. For tire manu- gram with the Montreal Canadiens. This facturers and carmakers, F1 races are strategy was part of the company’s game an opportunity to show their products plan to grow its business in Quebec. in action. The search for top franchise partners in This is a huge issue for sports equipment the province was underway, according to manufacturers. Focusing on a winning Daniel Vukovich, Chief Operating Officer athlete or team can have immediate and of Pizza Pizza: “We are proceeding accor- positive results on sales during major ding to plans, with initial expansion driven sporting events. This explains the battle by our branding efforts, local partnerships, between brands like Nike and Adidas non-traditional sites and a concerted during the Olympic Games or the World search for franchise partners.” Cup of Soccer. SPORT & ACTIVATION 3 INTELLIGENCE REPORT – SPORT & ACTIVATION WHY EXPLOIT THE SPORTS SECTOR? (continued) PepsiCo Inc. has introduced new graphics Changing consumer attitudes is the hardest thing to do. on Pepsi cans and bottles, rotating through sports, music and fashion themes every But, regardless of the brand, the simple DIFFERENTIATING ONESELF FROM few weeks. According the company, 35 fact of associating a product with a cham- THE COMPETITION designs embellished 8 billion cans and pion reaps benefits from the athlete’s For service companies in the banking, bottles worldwide in 2007. aura and media exposure, and the win- insurance and telecommunications fields, ning image is thus transferred to the pro- sports sponsorship becomes a compe- The graphics are an effort to reverse duct or service. Everyone loves a winner. titive business advantage because it declining soda sales in countries, inclu- provides opportunities to access rights ding the U.S., by targeting consumers CHANGING CONSUMER ATTITUDES and exclusivity that their customers can who identify with activities such as snow- boarding, fashionable clothing and car “Changing consumer attitudes is the har- benefit from. racing. Before now, the company had dest thing to do,” admits a marketing spe- switched can designs 10 times for events cialist for a brand-name beer. “The more This is a highly profitable way of creating like the Super Bowl. often a brand is associated with events that a real exchange with customers who are integral to the consumer’s lifestyle, the have become keenly aware through the better the chance that we can have an medium of sports. A specific promotion “We’re changing the way we interact with effect on the consumer’s attitude towards for tickets to a sports event represents consumers, and now we’re doing it on their explains Cie Nicholson, Chief Mar- that product.” real added value that cannot be imitated terms,” by the competition. keting Officer of Pepsi-Cola North America. DEMONSTRATING INVOLVEMENT IN A PARTICULAR STYLE INCREASING SALES The technological evolution has led to a Today, 80% of buying hyperspecialization of the marketplace Sales, and not consumer perceptions, decisions are made at the to the detriment of mass audiences. are what pay the bills, and companies point-of-sale. Companies now segment their markets are increasingly using sports sponsor- along geographical, ethnic, psychologi- ship as a hook to increase sales. cal and demographic lines. They offer made-to-measure programs and mes- VISA, in particular, has learned to use sages that are adapted to each targeted the Olympic Games to increase its customer group. sales without increasing its marketing expenditures. Sports sponsorship represents an efficient way of individualizing communications. It Today, 80% of buying decisions are made can effectively integrate itself into a niche at the point-of-sale. Marketers need to market without wasting money or effort. have in-store promotions that are rele- vant to consumers. A promotion involving sports energizes the store’s department and sales. SPORT & ACTIVATION 4 INTELLIGENCE REPORT – SPORT & ACTIVATION WHY EXPLOIT THE SPORTS SECTOR? (continued) EXPLOITING THE POTENTIAL ENERGIZING NETWORKS Sponsoring an event is a pretext to OF DERIVATIVE PRODUCTS invite major customers and prospects, Sports derivative products are highly Competing for an in-store listing or to thank suppliers and to reward the popular with consumers. Offered as gifts best product placement on the selling best employees.

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