Download Cereal Marketers Scoop Up Sponsorships

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April 25, 2011
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CATEGORY UPDATE
Cereal Marketers Scoop Up Sponsorships
Cereal marketers sponsor to gain promotional platforms
and promote health and wellness positioning.
Although The Kellogg Co., General Mills, Inc. and other
breakfast cereal marketers have dabbled in sponsorship
over the years, recent deal making indicates the category’s
heightened interest in the medium.
Activity is largely focused on national properties that afford
media exposure and local promotional extensions.
For example, Kellogg recently committed to a new partnership
with the USOC, returning after a three-year absence, while
General Mills late last year aligned with the Ford Ironman
World Championship triathlon series on behalf of its Wheaties
Fuel line extension. In addition, Wheaties Fuel has become
title sponsor of the National Motorsports Press Assn.’s Most Popular Driver award for the 2011 NASCAR season.
Cereal marketers primarily use sponsorship to build visibility, gain promotional platforms, feature health-and-wellness
positioning and offset growing competition from private-label brands.
Key Trend: Broad Exclusivity
Cereal marketers typically look for exclusivity across their entire product mix, which often can extend beyond the bowl to
snacks, crackers, bars, cookies and other products.
Broad exclusivity can allow marketers to fund deals from multiple product budgets.
Case in point: Kellogg’s USOC tie affords exclusivity in the cereal; cereal bar; frozen pancakes/waffles; cookie and crackers;
fruit flavored snack pieces and toaster pastries categories.
For packaged goods companies with broader product portfolios, exclusivity can go even further to allow for multi-brand
shared sponsorships.
For instance, General Mills uses its partnership with the Richard Childress Racing NASCAR Sprint Cup Series entry driven by
Clint Bowyer to promote its Cheerios and Hamburger Helper brands. The two brands are sharing primary status on the car for
roughly 24 races this season.
General Mills also uses the team to promote Chex Mix, Progresso, Yoplait and other brands in an annual racing-themed
promotion in February, said Ben Schlosser, the team’s senior vice president of business operations.
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For its part, Kellogg splits sponsorship of Roush Fenway Racing’s Sprint Cup entry driven by Carl Edwards between its Frosted
Flakes cereal and Cheez-It crackers, with Frosted Flakes’ Tony the Tiger mascot sharing hood space with Aflac, Inc., the
team’s primary sponsor.
Kellogg added a two-race primary sponsorship in the Izod IndyCar Series this year, putting the Kellogg’s moniker and Tony the
Tiger on Target Chip Ganassi Racing’s entry driven by Dario Franchitti.
Below, IEG SR highlights four sponsorship hot buttons for cereal companies.
Gain promotional platforms for retail activation. Cereal marketers typically use sponsorship to access intellectual property,
tickets and other inventory that can be used to create in-store promotions and otherwise build relations with trade partners
The focal point of that messaging: product packaging.
“Cereal brands have a built-in opportunity to activate because of the box, which is almost its own medium,” said David Paro,
president of Deep Alliance Marketing, a sports marketing and branding agency.
Account-specific promotions also have played a significant role for cereal brands.
For example, around its RCR sponsorship, General Mills typically runs promotions with a key retailer in each NASCAR race
market. Trade partners for such programs have included The Kroger Co. around the Daytona 500; Meier, Inc. around races at
Michigan Int’l Speedway; and Food Lion, LLC around events at Charlotte Motor Speedway.
Big G frequently shares on-car inventory with retail partners, Schlosser said. For instance, it gave Safeway, Inc.’s Tom Thumb
chain exposure on the car at the April 9 Samsung Mobile 500 at Texas Motor Speedway.
The retail promotions include show car visits and a sweepstakes dangling a shopping spree with Bowyer.
Huntersville, N.C.-based motorsports marketing agency Breaking Limits helps activate General Mills’ NASCAR program.
Engage consumers through social media and online. Cereal companies are activating sponsorship to drive consumers to
their Facebook pages and other online channels.
Kellogg last fall leveraged its Little League Baseball partnership with a Share What You Love about Kellogg’s Frosted
Flakes contest that offered the opportunity to win a practice session with former MLB New York Yankees first baseman Tino
Martinez.
To enter, consumers had to submit their thoughts about Frosted Flakes through the brand’s Facebook page.
Wheaties Fuel last month kicked off its Fuel a Future campaign designed to empower parents and other mentors to develop
the next generation of athletes. General Mills is donating $1 to the Boys & Clubs of America for every adult that pledges to
play one game of basketball with a child. Consumers can take the pledge at www.FuelaFuture.com.
The brand will make a minimum donation of $50,000 and will provide an additional $40,000 if the goal of 40,000
pledges is met.
“The Wheaties brand has long been associated with what it takes to become a champion, and the Wheaties Fuel campaign is
extending that association by supporting and sustaining new champions through influential mentor relationships,” said Betsy
Frost, Wheaties marketing manager.
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Promote health and wellness messaging. Like other packaged goods marketers, cereal brands are increasingly using
sponsorship to promote health-and-wellness messaging.
Kellogg will activate its USOC partnership by touting that it provides breakfast food and other products for athletes and
coaches at U.S. Olympic Training Centers.
On the branded entertainment front, General Mills will activate its tie to NBC’s The Biggest Loser with an upcoming segment
centered around the RCR car. The segment will feature the Wheaties Fuel brand on the car.
General Mills also has used team owner Childress to promote Cheerios and the brand’s heart healthy message,
Schlosser noted.
Gain sampling programs. Cereal marketers frequently use sponsorship to sample new and existing products.
Kellogg has used event marketing over the past several years to sample its Bear Naked (“Bear Naked Tries On More
Sponsorships Following Kellogg Acquisition,” 3/3/08) and Kashi cereals, while General Mills has used event marketing to
promote Cascadian Farm organic line.
General Mills also has sampled Wheaties Fuel at Ironman events.
Sources
General Mills, Inc., Tel: 763/764-7600
Richard Childress Racing, Tel: 336/731-3334
Deep Alliance Marketing, Tel: 630/574-3337
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April 25, 2011
ACTIVATION
Pepsi Uses New Technology To Take MLB Activation To The Max
Sponsors look to new technology as a way to raise their
activation game, drive more engagement with messages
and product.
Since relaunching Pepsi Max last summer, PepsiCo Inc. has
leveraged its partnerships with the NFL and NHL to promote
the zero-calorie beverage.
Now that it’s MLB’s turn, PepsiCo Americas Beverages has
added a high-tech, social media twist.
The beverage giant last week rolled out the first of two new
MLB-themed Pepsi Max TV spots. The current ad is themed
after the iconic film Field of Dreams and features Ozzie Smith,
Rollie Fingers, Evan Longoria and other baseball stars from
the past and present.
Through a partnership with Palo Alto, Calif.-based technology
company IntoNow, Inc., Pepsi Max is giving baseball fans an
additional reason to pay attention to the commercial beyond
its creative content.
Consumers can use IntoNow’s iPhone/iOS app that “listens
to” and identifies what the user is watching on TV to tag and
share the Pepsi spot with their social media friends. The
first 50,000 consumers to do that will automatically receive
a downloadable coupon for a free 20-ounce Pepsi Max. The
coupon is instantly redeemable at CVS Caremark Corp.,
Target Co. and other retailers’ stores.
“It’s a breakthrough way to connect the medium of TV
advertising and the consumption of our product,” said Amy
Wirtanen, senior director of marketing, Pepsi.
Sam Duboff, who manages Pepsi Max’s social media
accounts, expounded on the promotion in a blog post (http://
livingthepromise.pepsicoblogs.com/2011/04/checking-inwith-pepsi-max/).
© 2011 IEG, LLC. All rights reserved.
SIDEBAR
One-on-One With Pepsi Marketers
IEG SR spoke with PepsiCo Americas Beverages’ Amy
Wirtanen, senior director of marketing, Pepsi, and Mark
Rooks, senior director of Pepsi Sports, about Pepsi Max’s
sponsorship campaign, the beverage’s MLB activation and
other topics.
Below are edited excerpts from the conversation.
IEG SR: Pepsi last year relaunched Pepsi Max. What was
behind that step?
Wirtanen: We relaunched Pepsi Max in July 2010. We
wanted to promote the brand’s great-tasting, zero-calorie
cola positioning through a tighter, cleaner message. We use
all of our communications channels to build awareness and
engagement around the zero-calorie message.
The brand is targeted to both men and women, but a lot of
our communication is targeted at the sports area, where we
focus on Gen X men.
IEG SR: What role does sponsorship play for Pepsi Max and
other brands?
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Among other observations, Duboff noted that “people love
our ads and engage with our brand, but that experience
happens at the home, not in the store. People love our TV
ads and people love our zero-calorie cola once they’ve tried
it. Loving our product drives consumers to love our ads; with
this initiative, we’ve found an avenue to potentially invert that
relationship.”
“This is the first time where consumers can close the funnel
between a brand experience on a TV commercial right down
to a real world drink you can consume,” said Adam Cahan,
IntoNow founder and CEO, in a statement. “We’re thrilled to
be creating a new consumer experience with a brand like
Pepsi Max.”
Pepsi Max is IntoNow’s first brand marketing partner.
Source
PepsiCo Americas Beverages, Tel: 914/767-6000
Rooks: Sports is a passion point for consumers and it’s a
great way to connect with our target audience.
We work with teams and, in some cases, players
associations, to gain assets that we can use to create
programming and advertising that speaks to our target
audience. That includes TV ads, digital inventory and other
areas where sports fans congregate.
IEG SR: Pepsi has sponsored MLB since 1997 and has
relationships with 15 teams. How has the brand historically
leveraged its baseball platform?
Rooks: We use the platform to support key initiatives. For
example, last year we executed the Pepsi Refresh Project
with local teams, and we also present the MLB Clutch
Performer of the Year Award. Those are key initiatives for
baseball, and they allow us to connect to fans and the sport.
IEG SR: What was the thinking that went into Pepsi Max’s
new “Clubhouse in the Corn” MLB ad campaign?
Wirtanen: We wanted to tap into consumers’ love of baseball
and key in on something that is familiar and iconic in nature,
and we all agreed on Field of Dreams. When we address
advertising, we like to do things in a fresh, fun Pepsi way, so
this is how Pepsi Max creates a “field of dreams.”
IEG SR: How else will Pepsi Max leverage baseball?
Wirtanen: The baseball ads are a great program to build off
of. Whenever you see Pepsi Max, our hope is to make sure it
is integrated with the advertising on the air, with the idea of a
clubhouse in a cornfield and the “field of dreams” idea.
Rooks: Our activation programs will be locally driven. You will
see local radio and, in some cases, local TV broadcasts where
we can tag media with a retailer or other promotional partners.
I also expect to see a number of in-store promotions linked to
our baseball program That activity will come later in the year.
IEG SR: Pepsi is a longtime user of sports marketing and
other types of sponsorship. Has your approach to the
medium evolved or changed over the past several years?
Rooks: The world of sports has evolved, and we have tried
to keep pace and stay ahead of the pace. Digital and mobile
marketing are a much bigger part of the marketing landscape
than four or five years ago.
We are trying to make sure we are involved in the technology
consumers use to consume sports. We are doing a lot more in
the digital space and more around the in-stadium experience.
It’s not that we haven’t done signage, but we are much more
involved in what our messaging looks like, as well as making
sure that fans can assess our full assortment of products.
Source
PepsiCo Americas Beverages, Tel: 914/767-6000
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April 25, 2011
800/834-4850 | www.IEGSR.com
SEEKING DEALS
Promotional Merchandise Companies Grow From
Vendors To Sponsors
Properties should consider converting a variety of product
and service suppliers into marketing partners.
A trend has emerged among companies that supply seat
cushions, fan towels and other promotional merchandise to
pro sports teams: They are enhancing their relationships with
their prime customers through sponsorship deals.
For example, promotional products company Idegy, Inc. has
forged deals with a handful of pro teams over the past several
years and plans to sign additional ties.
“We are aggressive, looking to expand our reach and open to
any deal,” said Matthew Grossman, Idegy founder and CEO.
The company’s sponsorship portfolio includes the NBA New York
Knicks, NFL Chicago Bears, MLB Cincinnati Reds, WNBA New York Liberty and NHL Detroit Red Wings and New York Rangers.
Another promotional merchandise supplier, Synergy 5, plans to expand its sponsorship portfolio beyond its current deals
with the NFL Baltimore Ravens and Green Bay Packers, said Kyle Caddell, the company’s founder and owner, and the former
director of sponsor sales and services for the NFL Carolina Panthers.
A further sign of sponsorship interest from the category: Sports marketing agency Aquarius Sports & Entertainment is
negotiating consulting deals with two promotional products companies interested in exploring sponsorship relationships, said
Marc Bluestein, Aquarius president.
Sales To Teams, Access To Cosponsors Drive Deals
As B2B firms, promotional merchandise companies use sponsorship to enhance their business relationships with teams and
gain a higher profile in front of other sponsors that purchase promotional products.
On the cosponsor front, Synergy 5 leverages its Ravens partnership to access corporate decision-makers at the team’s
RavensTown Saturday Night pre-game events for sponsors and other VIPs at M&T Bank Stadium.
The positioning has helped the company generate incremental revenue, its owner said. “Our relationship with the Ravens has
been as important to the growth of our company as anything else we have done,” said Caddell, whose company also offers
sponsorship activation consulting.
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Similarly, Idegy credits its Chicago Bears sponsorship
with opening the door to Motorola Solutions, Inc., a team
sponsor. Idegy now sources promotional items for Motorola’s
football ties, as well as other needs the company has.
“Our sponsorship of the Bears got us into Motorola,”
Grossman said.
Idegy activates its sponsorships by demonstrating its
marketing savvy and the ability of promotional products to
generate fan interest.
SIDEBAR
Properties Convert Other Vendors To Partners
In addition to promotional merchandise companies,
rightsholders have found success in expanding relationships
with other product and service suppliers to include sponsorship.
“It’s a missed opportunity if properties don’t try to turn
an expense line into a marketing partnership,” said Marc
Bluestein, president of Aquarius Sports & Entertainment, a
sports marketing firm.
The company accomplishes that task by running an
in-stadium promotion that offers a merchandise prize pack
to the fan that posts the “craziest” photo on Idegy’s Facebook
page. Consumers can access the page directly through a
quick-response code on the company’s ad in the
game program.
The strategy has worked for a growing number of properties.
Case in point: The NHL New York Islanders (“Sponsorship
Sales Resolutions For The New Year,” 12/28/10) turned
roughly 30 vendors into sponsors during the 2010-11 season.
That includes new partnerships with companies ranging from
a limousine provider to a pest control service.
“We want to show our marketing prowess so other sponsors
say, ‘Wow, I can activate my sponsorship the same way by
using a promotional merchandise kit,’” Grossman said.
Aquarius Sports & Entertainment recently put together a
partnership with a minor league baseball team on behalf
of a human resources solutions provider, said Bluestein,
noting that while Automatic Data Processing, Inc. works for a
number of teams, it is not an active sponsor.
The company typically receives status as the official
promotional merchandise partner of each team, a benefit
it touts on business cards and marketing collateral,
Grossman added.
Another category to consider: payroll services.
Source
Aquarius Sports & Entertainment, Tel: 301/604-2606
Teams that have sponsorship deals with Idegy and other promotional companies typically do not include exclusive supplier
rights in those agreements, instead retaining the right to put their promotional merchandise needs out to bid.
“We work with Idegy in a partnership, and they understand that; they need to have the most competitive price, and we give
them the opportunity to win each project,” said Chris Hibbs, the Bears’ senior director of sales & marketing.
Sources
Idegy, Inc., Tel: 614/545-5000
Synergy 5, Tel: 704/575-8477
Chicago Bears, Tel: 847/295-6600
Aquarius Sports & Entertainment, Tel: 301/604-2606
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IEG SPONSORSHIP REPORT
April 25, 2011
800/834-4850 | www.IEGSR.com
CATEGORY UPDATE
Scanbuy Gets Smart About Sponsorship
As their mobile and digital services become more popular,
wireless technology providers are adding sponsorships to
build relations with property cosponsors.
Sponsorship activity on behalf of wireless application
developers (“There’s A Sponsor For That: App Developers
Strike Partnerships,” 10/15/10) shows no signs of slowing
down.
In one of the category’s latest deals, mobile barcode solutions
company Scanbuy, Inc. has come on board as a new partner
of the Tribeca Film Festival in New York City.
The nine-year-old privately held company is sponsoring
the event on behalf of its ScanLife product, which allows
marketers to develop quick-response codes and includes a
multi-barcode reader app that consumers download to scan the codes from their mobile devices.
Scanbuy, which markets the technology to businesses, media companies and advertising and marketing agencies, aligned
with Tribeca to build visibility and generate business from the film festival’s cosponsors.
“Our technology is an enabler for other sponsors and we are using the sponsorship as a means of expanding our business,”
said Mike Wehrs, Scanbuy’s president and CEO.
Marketers increasingly are using QR codes and other new technology to activate their sponsorships. For example, General
Motors Co. (“What GM Has Learned About Sponsorship And Social Media,” 1/24/11) has used QR codes to activate its
involvement with South by Southwest Music + Film + Interactive conferences over the past two years.
Scanbuy is leveraging Tribeca by showcasing its technology to attendees and cosponsors. Festival-goers can scan QR codes
on posters and other festival promotional collateral to access movie trailers, film schedules and other content.
The April 20-May 1 festival marks new ground for Scanbuy, which previously focused sponsorship activity primarily on trade
shows. The company also is a new partner of the April 22-May 1 New York Int’l Auto Show.
Scanbuy clients include The Gap, Inc.; The Home Depot, Inc.; and Macy’s, Inc.
Source
Scanbuy, Inc., Tel: 212/278-0178
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