Daily Journal of Commerce

Friday, Aug. 28, 1992

Sports sponsorship a springboard for promotion

By Cindy Hudson - The Coates Agency

You're getting pressure from your marketing staff to sponsor a sporting event. It's good for the image, they say. It'll make us look strong and progressive. And on top of that, we'll get tickets and we can take clients to see the action.

It all sounds good. But before you sign on the dotted line you should give strong consideration to the effectiveness of your sponsorshop without additional investment to promote your involvement. You should also define specific marketing objectives you wish to achieve.

For many companies who use sports sponsorships well, the actual event, team and athlete is secondary. The real value comes from extending the impact to various internal and external audiences, and they commit to funding promotions that will give them that impact. Sports sponsorship is considered a springboard for promotion, not a complete promotional project in itself.

Supercuts Inc., the national hair salon chain, is a good example. Each year, more than one million people pass by their store located on the grounds of the U.S. Olympic Training Center in Colorado Springs, Colo., where they supply free haircuts to Olympic hopefuls. But, according to Gary Gaap, the company's senior vice president of sales and marketing, the biggest benefit to Supercuts comes from the way they extend that involvement.

"We tag our advertising with the Olympic rings," Gaap says. "We think this elevates our status. It says we're playing in the major leagues.

Also, each day of the summer Olympics this year, Supercuts ran a promotion giving away one official Barcelona t-shirt in each of its shops. Once a week each shop gave away one prize of free haircuts for a year. Television, radio, print and direct mail were all used to promote the giveaways, build traffic at the stores and solidify Supercuts' tie with the Olympics.

Gaap also says the company's Olympic involvement helps recruit and retain staff. "When our stylists reach the internal goals that have been set for them they have the opportunity to spend a week at the training center. They stay on premise, eat with the athletes and cut hair there for a week. It's a great morale booster."

Supercuts' involvement lets them buld upon their sponsorship even in non-Olympic years. Continuity such as this is important because it allows sponsoring companies to build recognition for their programs each year, thereby providing a higher return for the dollars they spend.

How do you decide the amount to budget for promotional effort outside of the sponsorship cost?

"A good rule of thumb is to double or triple the cost of the sponsorship to determine how much you need to support it," advises Bill Savage, vice president and manager of marketing services for Bank of America Oregon. His company is a major sponsor of the Portland Trail Blazers.

In addition to what they spend as a television and stadium sponsor of the team, Bank of America has conducted many other promotions to reach Blazers fans and directly build business. One of the goals: to establish roots in the community by supporting a team that is important to a broad array of consumers across the state.

"Nothing else in this state covers the geography and whole spectrum of people like the Blazers do," Savage says.

Bank of America spends its money promoting products such as "Blazer Banking," which offers a year of free checking and internal merchandising, including cutouts of Clyde Drexler. The promotions, according to Savage, "allow our customers and staff to have fun. Also, the Blazer name helps to catch the attention of people who may not normally notice an ad for banking services. These programs reach the whole community in an attention-grabbing way, not just active Blazers fans."

For some companies, sports sponsorships provide a way to strengthen business partnerships while reaching a target market. Tektronix, a sponsor of the Fred Meyer Challenge golf tournament, uses its involvement with that event to educate customers and suppliers about new developments at the company, while promoting to heavy users of their products in the sports world.

Guest are invited to participate in a two-day event. One day is aside for meetings at Tektronix, the other for watching world-famous golfers at the tournament. Jim Searles, director of corporate marketing programs for the company, says they get the opportunity in a relaxed setting to showcase advances they've made.

"The forum also allows us to be more receptive and it brings focus to particular challenges and needs," Searles says. Here, the sports sponsorship becomes a reward for customers and a catalyst for a client powwow.

For other companies, the appeal of a sports event or athlete lies simply in association with a successful image. Avia, the Portland-based sports shoe and apparel manufacturer, places heavy emphasis on athletes.

"We're always looking to sponsor people in key events," says Dan Richard, manager of Avia's off-road division. "Endorsers lend credibility to the brand and can be key influencers for sales."

For instance, Avia has the endorsement of Drexler. His success and media attention bring more recognition to the company that makes his shoes. Because the target market for basketball shoes is boys ages 12 to 17, Avia has invested in special promotions to reach that group using Drexler as the attention-grabber.

For instance, Drexler fans can sign up for the "School of Glide Club" at G.I. Joe's stores. Members receive a membership card, posters, key chains and special membership merchandise. Drexler t-shirs also are available. In addition, Avia supports a scholastic improvement program designed to encourage interest in learning among school-age children. Winners of the contests, conducted three times a year, receive tickets to Blazer basketball games and certificates personally presented by Drexler.

Todd Gilmer, marketing communications manager for Avia, believes that an "endorser has to fit in with the corporate philosophy. Clyde's philosophy and commitment to excellence fits in with ours."

Whether your budge is larger or smaller than many of these companies' budgets, it's crucial to consider your promotional investment beyond your investment in any sponsorship itself. If your budget is exhausted by the sponsorship alone, then maybe you should look for other avenues to be effective with your dollars. There's little point in buying a tool if you can't afford to use it.

Cindy Hudson is a senior account executive/public relations for The Coates Agency in Portland.