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 Florida, 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. © 2013 IEG, LLC. ALL RIGHTS RESERVED. 1 IEG SPONSORSHIP REPORT 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, Houston Astros and Texas Rangers. The Royals had to carve up the sporting goods retail 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. © 2013 IEG, LLC. ALL RIGHTS RESERVED. 2 IEG SPONSORSHIP REPORT 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 © 2013 IEG, LLC. ALL RIGHTS RESERVED. 3 IEG SPONSORSHIP REPORT IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING 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. © 2013 IEG, LLC. ALL RIGHTS RESERVED. 4 IEG SPONSORSHIP REPORT 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. © 2013 IEG, LLC. ALL RIGHTS RESERVED. 5 IEG SPONSORSHIP REPORT Throughout the day, Target showcased how Zipcar can make the college experience easier and more fun, offered interactive games and other exciting swag.