Who Does What
Big-box Retailers Mean Big Bucks To Properties
10/29/07: Despite slowing retail sales, big-box retailers have continued to sign new deals with properties both big and small.
For example, The Home Depot, Inc. recently announced a new partnership with the NFL, Best Buy Co. sponsored this summer’s reunion tour by The Police, and Borders Group, Inc. signed new ties to the New Orleans Jazz & Heritage Festival presented by Shell and other music festivals.
Borders also plans to sign additional deals in the music space, said Linda Caine, associate director, field marketing.
Big-box retailers largely use sponsorship to gain promotional platforms that drive store traffic, build relations with vendors and reward top customers.
The retailers–often referred to as category killers–also use sponsorship to demonstrate their community involvement, a hot button that is expected to take on increased importance given growing outcry from state and city governments over living wage and environmental concerns.
Those efforts can range from sponsorship of local festivals and nonprofits to community outreach programs built around existing ties.
Big-box Retailers: Who Does What
Best Buy
Best Buy Co.
7601 Penn Ave. South
Richfield, MN 55423
Debbie Estes, director of marketing
612/291-1000
Targets / Objectives / Key Activations: Largest consumer electronics retailer in U.S. sponsors pro sports, music tours and other types of properties to engage consumers and drive traffic to its 822 stores. Looks for properties that provide access to specific demographic groups–gamers, music lovers, small business owners, etc. Activates with on-site product demonstrations, in-store events and vendor promotions. For example, leverages its partnership with the MLB Minnesota Twins with in-store autograph signing sessions and a sweeps dangling products manufactured by Samsung Electronics America, Inc., which co-titles the Home Run Porch at the Hubert H. Humphrey Metrodome with the retailer. Leverages NASCAR Nextel Cup Series team with Fun Zone mobile marketing program and cross-promotions with associate sponsors Comcast Corp. and Garmin Int’l Inc. Also looks for sponsorships that build customer loyalty, e.g., activated its sponsorship of this summer’s reunion tour by The Police with pre-sale ticket offers and on-site hospitality for members of its Reward Zone customer loyalty program.
Decision-making Structure: Estes reviews ties with input from other marketing team members; Barry Judge, senior vice president of marketing, signs off. Motorsports manager Brad Morrill oversees Best Buy’s NASCAR program. Accepts proposals via email at sponsorship@bestbuy.com.
Current Sponsorships: Title: Haas CNC Racing NASCAR Nextel Cup Series team. Presenting: The Police Live in Concert tour. Cosponsor: af2 Everett Hawks; Buc Days, Corpus Christi, Texas; The Children’s Theatre Co., Minneapolis; Class A Hudson Valley (N.Y.)Renegades; Colorado State Fair; Dub Custom Auto Show and Concert Tour presented by Bud Light/Budweiser Select; H-E-B Houston Children’s Festival presented by Baker Hughes; Marine Toys for Tots Foundation; MLB Chicago White Sox, Minnesota Twins, St. Louis Cardinals; NBA Chicago Bulls, Minnesota Timberwolves, Sacramento Kings; NFL Chicago Bears, Minnesota Vikings; NHL Minnesota Wild; Ordway Center for the Performing Arts, St. Paul, Minn.; Rockstar Taste of Chaos presented by Hurley tour; Samsung’s Four Seasons of Hope; USL Atlanta Silverbacks; WNBA Minnesota Lynx.
Additional Comments: Distributes coupons at Twins, Bulls and Bears games offering a $10 gift card with each $100 purchase; Best Buy expanded the program this year after running a successful program with the White Sox. Launched Techno Zona mobile marketing tour this summer to promote home theater and digital imaging products to Latinos. GMR Marketing manages Best Buy’s mobile marketing programs. Best Buy Canada Ltd. sponsors a number of sports and music properties, including the Festival Int’l de Jazz de Montreal presented by General Motors; NBA Toronto Raptors; and NHL Montreal Canadiens and Toronto Maple Leafs. Accepts Canadian proposals at www.bestbuy.ca/companyinfo/EN/sponsorship_requests.asp. Estimated ’06 sponsorship spend: $15 to $20 million.*
*Source: IEG Sponsorship Report
Borders
Borders Group, Inc.
100 Phoenix Dr.
Ann Arbor, MI 48108
Linda Caine, associate director, field marketing
734/477-1100
Targets / Objectives / Key Activations: Book and music retailer sponsors literacy, education and music-related properties to build its brand, promote its core businesses and gain on-site sales rights. “We don’t sponsor events where we can’t set up a booth. We look for opportunities where we can do sales and branding together,” Caine said. The company signed several new music ties this year with events previously sponsored by MTS, Inc.’s Tower Records, which closed its doors a year ago. Those deals include the CMA Music and Monterey Jazz fests. Borders plans to sign additional music sponsorships, Caine said. Operates more than 1,200 retail stores in 50 states; plans to sell or franchise its international stores.
Decision-making Structure: Caine funds and manages large ties. Borders funds local ties out of four zone offices; senior marketing managers and district marketing managers screen and sign off.
Current Sponsorships: Ann Arbor Book Festival; Authors Guild Foundation; CARE; Chicago Tribune Printers Row Book Fair; CMA Music Festival, Nashville; Dunkin’ Donuts Newport Folk Festival, R.I.; First Book; Geraldine R. Dodge Poetry Festival, Stanhope, N.J.; JVC Jazz Festival, Newport, R.I.; Harlem Book Fair; The Hurston/Wright Foundation; Los Angeles Times Festival of Books; Monterey Jazz Festival presented by Verizon; National Book Foundation; New Orleans Jazz & Heritage Festival presented by Shell; Philadelphia Flower Show; Quill Book Awards; Syracuse Jazz Fest; Tanglewood Jazz Festival, Lenox, Mass.; Wordstock, Portland, Ore.
Additional Comments: Leveraged tie with Philadelphia Flower Show by selling tickets at local stores. Estimated ’06 sponsorship spend: $500,000 to $1 million.
Circuit City
Circuit City Stores, Inc.
9950 Mayland Dr.
Richmond, VA 23233
Frank Burchfield, manager of event marketing
804/486-4000
Targets / Objectives / Key Activations: Circuit City focuses on action sports, gaming and music tours to promote video games and car stereo products to 18-to-24-year-olds. Leverages with on-site product display, in-store sweeps and online programs. For example, the retailer activated its sponsorship of the World Cyber Games with a microsite on CircuitCity.com, where consumers could register for the U.S. tournament, purchase games used in the tourney and interact with other gamers. It also hosted the Circuit City World Cyber Games Mobile Tour that offered gamers the chance to qualify for tournament wildcard spots and win other prizes. Operates 669 stores.
Decision-making Structure: Burchfield reviews proposals; Peter Weedfald, CMO, signs off. Accepts proposals at www.circuitcity.com/sponsorship.
Current Sponsorships: Title: Circuit City 250 presented by Funai, NASCAR Busch Series race, Richmond. Cosponsor: AFL Philadelphia Soul; AMA Rockstar Energy Drink U.S. Open, Las Vegas; Amp’d Mobile AMA Supercross Series; Boost Mobile Hot Import Nights; MasterCraft Pro Wakeboard Tour; Richmond Int’l Raceway; Samsung’s Four Seasons of Hope; Vans Warped Tour presented by AT&T; World Cyber Games USA Championship Series.
Additional Comments: Leverages Circuit City Foundation’s seven-year-old tie to Boys & Girls Clubs of America with a national photography competition in conjunction with Olympus America, Inc. The retailer this year leveraged the tie with an online voting initiative through CircuitCity.com and a cause-related marketing program through which it donated $10 to the nonprofit for every Olympus camera sold. Estimated ’06 sponsorship spend: $5 to $10 million.
The Home Depot
The Home Depot, Inc.
2455 Paces Ferry Rd. NW
Atlanta, GA 30339
Hugh Miskel, director of event marketing
770/433-8211
Targets / Objectives / Key Activations: World’s largest home improvement retailer and second-largest U.S. retailer sponsors pro teams, festivals, nonprofits and other types of properties to stay top of mind and gain promotional platforms to drive retail traffic. The company leveraged its new multiyear tie to the NFL with an online sweeps dangling tickets to the Super Bowl, Pro Bowl and NFL Draft; consumers who purchased select products received double entries into the promo. Sponsors nonprofits to engage employees and demonstrate its corporate citizenship. Leverages NFL and NASCAR partnerships to create programs that support KaBOOM!, a nonprofit that builds playgrounds in underserved communities. For example, announced last month the Home Depot NFL Neighborhood MVP, a program that rewards NFL athletes that make a positive impact in their community with a donation to a charity of their choice and a playground build or a football field refurbishment in their community. Operates nearly 1,900 U.S. stores.
Decision-making Structure: Tim Lynde, manager of sponsorships, oversees sports ties; Kelly Caffarelli, director of community affairs, manages community outreach initiatives. Miskel signs off after approval from senior execs. Accepts sponsorship opportunity information at homedepotproposals.com.
Current Sponsorships: Title: Home Depot Center, Carson, Calif.; Joe Gibbs Racing NASCAR Nextel Cup Series team. Cosponsor: American Red Cross; AT&T Fiesta Broadway, Los Angeles; Atlanta Zoo; Class A Kane County (Ill.) Cougars and Yakima (Wash.) Bears; Florida State Fair; Food Lion Speed Street 600 Festival, Charlotte; Georgia Aquarium; Georgia Institute of Technology Athletics; 11 Int’l Speedway Corp. tracks; KaBOOM!; Kansas Speedway; Mexican National Soccer Team; six MLB teams; MLS Los Angeles Galaxy; NASCAR; NBA Atlanta Hawks and Phoenix Suns; NFL; five NFL teams; NHL Atlanta Thrashers and Los Angeles Kings; Philips Arena, Atlanta; San Antonio Stock Show & Rodeo; Six Flags; Staples Center; State Fair of Louisiana; University of Hawaii Athletics; USA Curling; USA Softball; USOC.
Additional Comments: CMO Roger Adams, who spearheaded the new NFL deal, abruptly resigned from the company two weeks ago. Vice president of advertising John Ross is serving as interim CMO. Caffarelli transferred into her current position earlier this year after serving as executive director of The Home Depot Foundation. The company does not sponsor on behalf of its Expo design stores. Home Depot of Canada, Inc. sponsors Air Canada Centre, NBA Toronto Raptors, NFL Canada and other sports properties. Estimated ’06 sponsorship spend: $55 million to $60 million.
Lowe’s
Lowe’s Cos.
1000 Lowe’s Blvd.
Mooresville, NC 28117
David Sutphin, sports marketing manager
704/758-1000
Targets / Objectives / Key Activations: Second-largest home improvement retailer in the U.S. largely focuses on motorsports and pro and college sports to build customer loyalty. “Fans are loyal to companies that sponsor their favorite sport,” said Chris Ahearn, vice president of PR. Leverages its tie to the NFL Carolina Panthers to reach three audience segments: women, through its sponsorship of the team’s Football 101 program; families, through support of a children’s play area at Bank of America Stadium; and employees, through hospitality. Activates Komen partnership with a Plant for the Cure promotion, around which it donates 10 percent of retail sales of select flowers. Last year’s promotion raised $255,000, $5,000 over the company’s minimum guarantee. Operates more than 1,380 superstores in 49 states.
Decision-making Structure: Sutphin and a small marketing group review proposals. Bob Gfeller, senior vice president of marketing signs off.
Current Sponsorships: Title: Fernandez Racing American Le Mans Series team; Hendrick Motorsports NASCAR Nextel Cup Series team; Home Court Gallery, Charlotte Bobcats Arena; Lowe’s Motor Speedway. Presenting: MerleFest, Wilkesboro, N.C. Cosponsor: American Le Mans Series; Atlanta Motor Speedway; Bristol Motor Speedway; Busch Gardens Africa, Tampa, Fla.; Busch Gardens Europe, Williamsburg, Va.; ECHL Charlotte Checkers; Infineon Raceway; Susan G. Komen for the Cure; Las Vegas Motor Speedway; MLS Real Salt Lake; Muscular Dystrophy Assn.; NBA Charlotte Bobcats; NCAA; NFL Carolina Panthers, Denver Broncos, New Orleans Saints and Seattle Seahawks; Texas Motor Speedway.
Additional Comments: GMR Marketing manages most sports ties and their activation. The Promotion Network and Gage Marketing ran Lowe’s NCAA Final Four sweeps in ’07. Estimated ’06 sponsorship spend: $25 million to $30 million.
Target
Target Corp.
1000 Nicollet Mall
Minneapolis, MN 55403
Laura Sandall, director, events marketing and publicity
612/304-6073
Targets / Objectives / Key Activations: “Cheap chic” retailer sponsors to gain a point of differentiation, demonstrate its corporate citizenship and connect with mothers. Focuses on the arts, community festivals and other properties that reach families and children. For example, sponsors children’s activities at the San Jose Int’l Mariachi Festival and Savannah Music Festival. Offers free or discount tickets to the more than 40 art museums that it sponsors. Activates Chip Ganassi motorsports teams with in-store promotions in conjunction with team cosponsors Energizer Holdings Inc.; Fujifilm U.S.A., Inc.; and GlaxoSmithKline Consumer Healthcare’s Tums. Also sponsors to engage employees. For example, offers volunteer opportunities at the children’s fair and young artist exhibition at the Omaha Summer Arts Festival. Operates 1,684 stores.
Decision-making Structure: Sandall reviews sponsorship proposals; Michael Francis, executive vice president of marketing, signs off. The company also funds marketing and philanthropic ties out of local stores and 25 distribution centers.
Current Sponsorships: Title: Two Chip Ganassi Racing IRL IndyCar Series teams; Chip Ganassi Racing with Felix Sabates NASCAR Nextel Cup Series team; Target Center, Minneapolis; World Challenge presented by Countrywide, PGA Tour event. Presenting: Grandma’s Marathon, Duluth, Minn. Cosponsor: AFL Philadelphia Soul; Coconut Grove Arts Festival; Festival Latino, Columbus, Ohio; Houston Int’l Festival; MLB Minnesota Twins; NBA Minnesota Timberwolves; NHL Minnesota Wild; Medtronic Twin Cities Marathon; National Cherry Blossom Festival, Washington, D.C.; Omaha Summer Arts Festival; Savannah Music Festival; San Jose Int’l Mariachi Festival; South Beach Wine & Food Festival; Summerfest, Milwaukee; TCF Holidazzle Parade, Minneapolis; Tribeca Film Festival, New York City; WNBA Minnesota Lynx.
Additional Comments: Sponsored the Medtronic Twin Cities Marathon on behalf of Target Pharmacy. Estimated ’06 sponsorship spend: $30 million to $35 million.