IEG SPONSORSHIP REPORT IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

MONTH 00, 2013 WWW.IEGSR.COM

RETAIL ACADEMY SPORTS GETS SCHOOLED ON SPONSORSHIP

Retailer borrows equity from pro sports teams and college athletic programs to build local presence.

Academy Sports + Outdoors is breathing new life into the otherwise lackluster sporting goods category.

While The Sports Authority, Inc. and Dick’s Sporting Goods, Inc. are both active sponsors—and to a lesser extent, Foot Locker, Inc.—other players have largely dabbled in sponsorship based on the ups and downs in the economy.

In a breath of fresh air, Academy Sports has significantly expanded its sponsorship portfolio over the last two years to support its growth ambitions.

The Texas-based chain—which operates roughly 170 stores in 13 southeast and Midwestern states—is aligning WHERE SPORTS EQUIPMENT RETAILERS SPEND MONEY with pro sports teams and collegiate athletic programs to build presence in new markets.

The company over the last three months has signed more than 10 deals in , Kansas, North Carolina, Tennessee and other states.

Case in point: Academy last month announced a multiyear agreement with The University of Memphis athletics to support the opening of its first Memphis-area store.

The retailer in August inked new deals with two schools in Florida and three in Kansas.

In Florida, Academy partnered with the University of ©2013 IEG, LLC. All rights reserved. Florida and Florida State University to support its growth in North Florida. The company—which operates two stores in Jacksonville—plans to open a third in the city by the end of the year.

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Academy partnered with the University of Kansas, Kansas State University and the University of Missouri to promote the opening of two new stores in Kansas City. The deals follow a new partnership in March with the MLB Kansas City Royals.

In July, Academy inked deals with the North Carolina Tar Hills and NFL Carolina Panthers, the latter of which includes title of the Academy Sports + Outdoors Field at the team’s training camp. The company entered Charlotte in March with two new stores in the Charlotte area—one in Concord and one in Kannapolis.

As a new player, Academy looks for media inventory and camera-visible signage to build visibility and awareness. For example, the Royals partnership affords branding on dugout rails in Kauffman Stadium.

Academy activates the Royals with an on-site putting contest to generate interest in golf products. The contest pits fans against a Royals player.

“The fans get into it, and it’s a great way for Academy to promote their golf brands and golf lines,” said Wes Engram, the Royals’ senior director of corporate partnerships.

Academy this fall will activate the partnership at the grassroots level through an affiliation with the Royals Winter Caravan. The community outreach program—which features players, announcers and other stakeholders—will visit Academy outlets in cities throughout Missouri, Kansas and nearby states.

The Royals are working with Academy on a promotion that can be activated across all of the retailer’s MLB team partnerships, said Engram. Ties include the Atlanta Braves, Astros and Texas Rangers.

The Royals had to carve up the sporting goods category to accommodate Academy, said Engram. Academy gains status as the Royals’ official sporting goods retailer while Rally House serves as the official clubhouse for team apparel.

The Most Active Sports Equipment Retailers

* Figures represent the percentage of properties reporting sponsorship from each company.

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Academy is supporting its college marketing platform with sponsorship of the inaugural Fox College Saturday Tour. The program is visiting stadiums where Fox broadcasts national football games.

Anita Sehgal, Academy Sports + Outdoors senior vice president of marketing and advertising, spearheads sponsorship on behalf of the retailer.

Investment firm Kohlberg Kravis Roberts & Co. in 2011 acquired a majority share of Academy Sports.

Sources Academy Sports + Outdoors, Tel: Tel; 281-646-5200 Kansas City Royals, Tel: 816/921-8000

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MONTH 00, 2013 WWW.IEGSR.COM

ONE-ON-ONE HOW ZIPCAR USES SPONSORSHIP TO FUEL BRAND GROWTH AND BRAND LOVE

Car share service uses sponsorship to engage consumers, promote local roots and demonstrate relevance.

With hundreds of partnerships ranging from farmers markets to art festivals and pride parades, Zipcar, Inc. has long used sponsorship to demonstrate community involvement and support its brand DNA.

And the car share company continues to expand its portfolio. Zipcar this summer ran a promotion with GLAAD around which it made a $1 donation to the nonprofit for every hour one of 27 co-branded cars were on the road.

Zipcar also is expanding its partnerships with IKEA and Target Corp. The company recently aligned with IKEA on the “Zipcar Loves Design” promotion and Target’s Bullseye University, a live online back-to-school shopping platform.

The partnerships come amid a backdrop of increased competition as car rental companies enter the car sharing space. Avis Budget Group, Inc. in March closed on a nearly $500 million acquisition of Zipcar, which now operates as a subsidiary of the car rental giant.

Below, Brian Harrington, Zipcar executive vice president and CMO, discusses the thinking behind Zipcar sponsorships, the impact of the Avis acquisition, how the company activates ties and other topics.

On Zipcar’s long-running support of community events At Zipcar, community involvement is part of our DNA and integral to our culture. Zipcar operates in 25 major metropolitan markets across the country and in each of them our local Zipcar teams are on the ground taking part in events and activities.

We always get excited for the opportunity to sponsor events in line with the Zipcar mission of enabling simple and responsible urban living and as we’ve grown so has our ability to participate in both hyper-local and national partnerships and sponsorships.

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With the Avis acquisition, Zipcar is even better positioned to deliver on its mission of enabling simple, efficient and responsible transportation solutions on a global scale. This strategic transaction is a game-changing validation of the global potential of the car sharing category, and a huge win for Zipsters and cities around the world.

The marketing objective behind Zipcar sponsorships Sponsorships are a great way to be a part of our local communities and in addition are an opportunity to reach prospective Zipcar members that would find value in car sharing.

When you launch into a new city, you have to have a strong sense of who you are and what you stand for as a company, and sponsorships provide an ideal platform for that message. Through the use of sponsorship and event activity, we can reach those that live and work near Zipcars with information about what car sharing is and about Zipcar’s mission to enable simple and responsible urban living.

While sponsorship provides a unique venue for acquisition, the local connection allows Zipcar to maintain our connection and growth within a community.

How Zipcar activates sponsorship From small events to big parades, our local teams make an effort to have a presence at all the great occasions we take part in during any given year. Members of the team are on hand to answer questions and talk about Zipcar or sign up interested attendees on iPads.

If we can, we enjoy having Zipcars on hand for technology demonstrations and, depending on the event, we love to bring along some of our own fun like our “pot hole” game (Zipcar’s version of corn hole).

Recent additions to Zipcar’s sponsorship portfolio One example of a local sponsorship is our support of the DC MEETMarket in Washington, DC. DC MEETMarket is monthly outdoor market formed with the intention of showcasing and supporting local businesses, artists, and designers while highlighting what the DC Metropolitan area has to offer. Zipcar is a proud sponsor of this celebration of community and craftsmanship.

On a national level, Zipcar recently partnered with GLAAD. Zipcar has been an active participant in support of LGBTQ equality and rights for quite a while now so working with GLAAD was a natural extension of our efforts. Zipcar branded 27 cars across the country and for every hour that a car was on the road we donated $1 to GLAAD.

Zipcar also recently teamed up with IKEA to sponsor a contest for a revamped interior space. The “Zipvan Loves Design” contest provided participants a chance to win a Zipvan full of IKEA store products to help re-create a room in their home or office. Winners were chosen based on a short video they submitted to illustrate how they would design the space with the help of Zipcar and IKEA.

In addition, Zipcar recently sponsored mini pop-up “parks” on the international Park(ing) Day on September 20th. By transforming metered parking spots into parklets, Zipcar and Park(ing) Day brought attention to the need for more urban space and fewer cars on the road in our cities.

On July 15th Zipcar took over the “brand space” at Target’s Bullseye University. This was a live shoppable dorm room experience that was viewable online and allowed students to purchase everything they need for college, including a Zipcar membership.

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Throughout the day, Target showcased how Zipcar can make the college experience easier and more fun, offered interactive games and other exciting swag. The sponsorship falls into a larger partnership with Target to provide college students with the gear and supplies they need and the wheels to get them.

Earlier in the year, Zipsters in Boston, D.C., New York, and San Francisco got the opportunity to attend special drive- in screenings of Showtime’s Dexter and Ray Donovan in their Zipcars. Over 100 Zipcar members and their passengers were treated to free Zipcar reservations to enjoy the showing.

As the world’s leading car sharing company, Zipcar continues to put community involvement as a priority in all of our cities, from Detroit to Barcelona. We all work together to keep this show on the road and we enjoy having fun and supporting our communities while we’re at it.

Source Zipcar, Inc., Tel: 617/995-4231

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MONTH 00, 2013 WWW.IEGSR.COM

STRATEGY INSIDE XEROX’S EVOLVING SPONSORSHIP STRATEGY

Technology company doubles down on sponsorship to drive revenue and validate brand story on the global stage.

Xerox Corp.’s sponsorship strategy has come a long way over the past few years.

While Xerox once used sponsorship primarily as a customer entertainment platform, the document giant has overhauled its go-to-market strategy to support its evolving product and service offering and drive new business.

The strategy includes three primary components:

• Gain business from sponsored properties • Validate brand story through product/service showcase • Use intellectual property and other assets in 360-degree marketing campaigns

To support the new strategy, Xerox has expanded its sports-heavy sponsorship portfolio into the worlds of art and entertainment and added global properties that provide international reach and local touch points.

In its most recent deal, Xerox earlier this year announced a multiyear, multi-country partnership with the WTA Tour. The sponsorship affords a presence at roughly 20 of the WTA Tour’s 50-plus tournaments.

The company uses the ties to sell product to local tournaments under the WTA umbrella while gaining a multi-day hospitality platform for clients and prospects.

How Xerox Landed With The WTA The WTA partnership culminates a five-year-old evolution in Xerox’s sponsorship strategy.

The new strategy was spearheaded by Christa Carone, Xerox’s chief marketing officer, and Edward Gala, vice president of global experiential marketing. The two execs in 2008 tasked Jon Levine, a senior vice president at GroupM ESP, to overhaul the company’s sponsorship strategy.

“When we conducted an audit of Xerox’s portfolio, they were in a world of what I call hospitality-driven sponsorships. Some were official deals, others were just hospitality arrangements, and even those with official deals with completely

© 2013 IEG, LLC. ALL RIGHTS RESERVED. 7 IEG SPONSORSHIP REPORT hospitality driven,” said Levine, who joined Xerox as vice president of global experiential marketing in 2010 after Gala transitioned to another department.

Carone last month left Xerox for a position at another company.

As a result of the audit, Xerox broadened its sports-heavy portfolio (MLB New York Mets, NFL Buffalo Bills, University of Notre Dame athletics, etc.) with two global ties in the entertainment space: Presenting status of Sting’s 2010 global tour followed by a partnership with Cirque du Soleil in 2011.

“People accused us of being too U.S. centric, and we were guilty as charged. We’re a global company, and we made a promise to bring other markets into the fold.”

Xerox describes its partnership with Cirque du Soleil as vibrant, colorful and innovative.

Xerox next year will kick off a multiyear extension with Cirque, he added.

The WTA partnership caps an 18-month search for a global property that reaches C-level decision makers and other key targets, said Levine, who targeted the “usual suspects” spanning tennis, golf and motorsports.

One of Xerox’s criteria: category exclusivity. Xerox competes with Accenture, Hewlett-Packard Co., IBM Corp. and other technology firms following its 2009 acquisition of Affiliated Computer Service. The acquisition added business processing and other services to the company’s product offering.

“We wanted to find a partnership that not only provided a global footprint but recognized the full breadth of our category.”

The search uncovered two possibilities: The WTA and Formula One.

Xerox chose the WTA based on several factors: The opportunity to cherry pick tournaments around the world. access to content and digital rights, expanded reach in China and Brazil, and an affiliation with Maria Sharapova, Serena Williams and other high-profile athletes.

“We effectively doubled down on tennis,” said Levine, noting that the company’s sponsorship of the USTA U.S. Open also provides exposure on the international stage.

Similar to its partnership with the U.S. Open, Xerox titles the media center at each WTA tournament. The company also presents the WTA’s “Live All Access Hour,” an interview segment that features the tour’s eight top-seeded players.

Xerox uses the All Access Hour to gain visibility through content promoted through WTA.com, Youtube.com and other social media channels.

For example, Xerox gained incremental exposure from the program following Sharapova’s comments about the Sugarpova candy line at the Apr. 22-28 Porsche Tennis Grand Prix in Stuttgart, Germany.

“The content is very spreadable,” said Levine.

On the business-building front, Xerox hosts Real Business Live and Focus Forward business summits in conjunction with WTA tournaments, Cirque du Soleil shows and other sponsored events.

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“We try to integrate what we’re doing from a sales perspective with what we’re doing from a marketing perspective, and we use sponsorship to do that.”

Xerox measures success across two fronts: brand exposure and incremental business.

Brand-building metrics include media exposure while business-building metrics range from direct revenue generated from the sale of products and services to sponsored events to indirect revenue from client entertainment.

“We’re not selling an off-the-shelf product that costs $100. We’re one of many touch points along the sales cycle, and we use entertainment to develop and sustain relationships.”

Xerox also looks to gain business from property cosponsors, he added.

Source Xerox Corp., Tel: 203/968-3000

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MONTH 00, 2013 WWW.IEGSR.COM

COLLEGE SPORTS THE MOST ACTIVE CATEGORIES AND COMPANIES SPONSORING COLLEGE ATHLETICS

The Coca-Cola Co., Lowe’s and are the three most active companies in college sports.

While concerns over conference realignment, player rights and controversial actions may put a damper on future spending, corporate interest in college athletics remains as healthy as ever.

Demonstrating college sports’ appeal among a wide variety of brands, Green Mountain Coffee Roasters, Inc. last month announced a 25-school partnership with IMG College on behalf of its Keurig single cup coffee brand.

On the other side of the brand spectrum, Burger King Corp. is reportedly negotiating an NCAA partnership with Turner Sports and CBS Sports.

IEG expects spending on college athletic programs, COLLEGE SPORTS SPONSORSHIP SPENDING conferences and events to total $763.8 million in 2013, up 6 percent from $720.6 million in 2012.

According to IEG Research, the financial services category is the most active sector sponsoring college athletics with 6 percent of properties reporting a sponsor in the category. The restaurant, retail and hotel categories were the second, third and fourth most active sectors, respectively.

The Coca-Cola Co., Lowe’s Cos. and The Allstate Corp. are the three most active sponsors in terms of number of deals.

* Projected ©2013 IEG, LLC. All rights reserved.

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Most Active Companies Sponsoring College Athletics

* Thirty-three percent of college athletic programs reported The Coca-Cola Co. as a sponsor.

Most Active Categories Sponsoring College Athletics

* Financial services companies are 6 times more likely to sponsor college athletics than the average of all sponsors.

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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. INSIGHTS

We partner with top brands and properties to create fresh EVALUATION strategies, evaluate opportunities and maximize results. Our clients redefine what’s possible, exceed expectations GUIDANCE and achieve lasting impact. IEG LEADS THE WAY IN SPONSORSHIP A unit of WPP’s GroupM, IEG is connected to specialty ANALYSIS, INSIGHT, VALUATION & MEASUREMENT 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.

For more information about IEG and the sponsorship industry, please visit www.sponsorship.com or call WWW. SPONSORSHIP.COM 800/834-4850 (outside the U.S. and Canada, 312/944-1727).

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