Selling Sport Event Sponsorship 22 March 2011 Dear class: I have the pleasure of meeting with you again

Wednesday 23 March 2011 to briefly discuss sport sponsorship as part of our course on sport event management. Among the learning objectives intended for you from the session are: (1) An understanding of sponsorship defined; (2) awareness of sponsorship objectives for the sponsor and sponsee, (3) appreciation for the range of sponsorship opportunities a sport property may posses, (4) key features of a sponsorship proposal, and (5) awareness of sponsorship sales strategies. In advance of our time together, please read the enclosed articles. Consider the growth of sport sponsorship in relation to other forms of promotion (and why), and what sponsorships seem to work best (and why). A sponsorship bibliography is also provided, fyi. Cornwell, T. B. (2008). State of the art and science in sponsorship-linked marketing. Journal of Advertising, 37 (3), 41-55. Turco, D. M., Ghosh, A., and Ssawantth, P. M. W. (2009) Going for the gold: Sport sponsorship. Markathon, 1 (4), 10-14. In addition, please review the sponsorship plans for the Susan G. Komen Race for the Cure and Albuquerque International Balloon Fiesta. You may also want to visit their respective websites: ww5.komen.org and www.balloonfiesta.com. Consider the sponsors already on board for these properties and identify at least one other that would be an ideal prospect (and why). Should you have any questions re this session, feel free to contact me at E: douglasmicheleturco@gmail.com. I look forward to seeing you soon. With kind regards, Douglas Michele TURCO enc.

Sport Sponsorship Bibliography Ali, C., Cornwell, T. B., Nguyen, D. T. T., and Coote, L. V. (2006). Exploring the usefulness of a consumer activity in the sponsorship-linked marketing context. International Journal of Sports Marketing and Sponsorship, 7, 115-123. Amis, J., Slack, T. and Berrett, T. (1999). Sport sponsorship as distinctive competence, European Journal of Marketing, 33(3-4), 250-272. Chron, E. and Bissonnette, C. (1996). Analysis of the organizational sponsorship decision process. International Journal of Research in Marketing, 13(3), 299315. Christensen, S. R. (2006). Measuring consumer reactions to sponsoring partnerships based upon emotional and attitudinal responses. International Journal of Market Research, 48(1), 61-80. Copeland, R., Frisby, W. and McCarville, R. (1996). Understanding the sport sponsorship process from a corporate perspective. Journal of Sport Management, 10(1), 3248. Cornwell, T. B. (2008). State of the art and science in sponsorship-linked marketing. Journal of Advertising, 37 (3), 41-55. Cornwell, T. B. and Coote, L. V. (2005). Corporate sponsorship of a cause: The role of identification in purchase intent. Journal of Business Research, 58, 268-276. Cornwell, T. B., Weeks, C. S., and Roy, D. P. (2005). Sponsorship-linked marketing: Opening the black box. Journal of Advertising, 34(2), 21-42. Crompton, J. (2004). Conceptualization and alternate operationalizations of the measurement of sponsorship effectiveness in sport. Leisure Studies, 23(3), 267-281. Dean, D. (1999). Brand endorsement, popularity, and event sponsorship as advertising cues affecting consumer pre-purchase attitudes. Journal of Advertising, 18, 2-12. Grohs, R., Wagner, U., and Vsetecka, S. (2004). Assessing the effectiveness of sport sponsorships An empirical examination. Schmalenbach Business Review, 56, 2, 119-138. Grimes, E. and Meenaghan, T. (1998). Focusing commercial sponsorship on the internal corporate audience. International Journal of Advertising, 17(1), pp. 5174. Harvey, B. (2001). Measuring the effects of sponsorship. Journal of Advertising Research, 41, 59-65. Jalleh, G., Donovan, R., Giles-Corti, B., and Holman, D. (2002). Sponsorship: impact on brand attitudes and awareness. Sports Marketing Quarterly, 8(1), 35-45. Knott, B. and Turco, D. M. (2010). Event sponsorship and fundraising in (D. Tassiopoulos, ed.) Events management: A developmental and managerial approach (3rd Edition). Lansdowne: Juta Academic Pty, Ltd. Lardinoit, T. and Derbaix, C. (2001). Sponsorship and recall of sponsors. Psychology and Marketing, 18, 167-190. Lardinoit, T. and Quester, P. (2001). Attitudinal effects of combined sponsorship and sponsors prominence on basketball in Europe. Journal of Advertising Research, 41, 48-58.

Levin, A., Joiner, C., and Cameron, G. (2001). The impact of sport sponsorship on consumers brand attitudes and recall: The case of NASCAR Fans. Journal of Current Issues and Research in Advertising. 23(2), 23-31. Madrigal, R. (2001). Social identity effects in a belief-attitude-intentions hierarchy: Implications for corporate sponsorship. Psychology & Marketing, 18, 2, 145-166. Mason, K. (2005). How corporate sponsorship impacts consumer behaviour. Journal of American Academy of Business, 7, 32-35. McDaniel, S. (1999). An investigation of match-up effects in sport sponsorship advertising: the implication of consumer advertising schemas. Psychology and Marketing,16,163-184. Meenaghan, T. (2001). Understanding sponsorship effects. Psychology and Marketing, 18, 95-122. Meenaghan, T. (1998). Ambush marketing: Corporate strategy and consumer reaction. Psychology & Marketing, 15(4), 305-322. Moore, J.N., Pickett, G.M. and Grove, S.J. (1999). The impact of a video screen and rotational signage systems on satisfaction and advertising recognition. Journal of Services Marketing, 13(6), 453468. Pope, N. and Turco, D. M. (2001). Sport and event marketing. Sydney: McGraw-Hill. Quester, P.G., Farrelly, F. & Burton, R. (1998). Sports sponsorship management: a multinational comparative study. Journal of Marketing Communications, 4, 115128. Robert. (2000). The influence of social alliances with sports teams on intentions to purchase corporate sponsors products. Journal of Advertising. 29, 13-24. Roy, D. P. and Cornwell, T. B. (2004). The effects of consumer knowledge on responses to event sponsorships. Psychology & Marketing, 21(3), 185-207. Shin, H. and Turco, D. M. (2005). The effects of sport sponsorship on consumer purchase intentions: The case of the 2002 FIFA World Cup. International Journal of Sport Management, 6(1), 30-46. Stipp, H. (1998). The impact of Olympic sponsorship on corporate image. International Journal of Advertising, 17(1), 7587. Turco, D. M. (1996). The effects of courtside advertising on product recognition and attitude change. Sport Marketing Quarterly, 5(4), 11-16. Turco, D. M. (1994). Event sponsorship: Effects on consumer behavior. Sport Marketing Quarterly, 3(2), 21-24. Walliser, B. (2003). An international review of sponsorship research: Extension and update. International Journal of Advertising, 22, 5-40.

state of tHe art anD science in sponsorsHip-linkeD marketinG

t. Bettina cornwell ABSTRACT: This is a stock-taking paper in the area of sponsorship-linked marketing. First offered is a summary of the development of sponsorship as a mainstay of marketing communications. Arguments for the entrenchment of sponsorship in a new evolving indirect marketing mix are made. Progress in understanding the art of management and the science of communications measurement are then examined. Finally, a brief research agenda is described.

Sponsorship of sports, arts, and charitable events is a mainstream marketing activity no longer in need of extensive introduction or justification. There is, however, a need to account for the progress made to date in integration of sponsorship-linked marketing into management, theory, and research. Moreover, there is a need to open a discussion of realignment in our thinking regarding the role that sponsorship and other indirect marketing communications play and will play in the future. Up to this point, we have tended to consider sponsorship, product placement, advergaming, and other new approaches as uniquely interesting areas at the intersection of advertising and entertainment. It is time to consider these trends holistically as a move toward a new era in communications, one that could be called indirect marketing. There are many perspectives that can be taken on sponsorship. In this paper, the perspective of the firm or organization that might use sponsorship in a marketing and communications program is considered. History of Development anD GrowtH Over the past two decades, sponsorship-linked marketing growth has outstripped advertising growth by several percentage points (see Figure 1), with the 2007 figure for sponsorship topping $37 billion worldwide (IEG 2007). Moreover, this figure only represents the packaged sponsorship fee and does not include the leverage or activation that accompanies most sponsorship at a debated dollar for dollar ratio. Despite rapid growth, the area still suffers from lack of a strong understanding of how sponsorship works in the mind of the consumer and how it might be made more effective. Sponsorship and other indirect marketing communications (such as product placement) have also suffered from being free-standing areas of inquiry, sometimes thought of as sales promotion techniques or com-

munication gimmicks, sometimes as consumer promotions, and very often as other in the communications budget. sponsorships Hand in the Death of advertising Rust and Oliver predicted the death of traditional advertising fourteen years ago.
Mass media advertising as we know it today is on its deathbed, and its prognosis is poor. . . . direct marketing is stealing business from traditional advertising; and the growth of sales promotion and integrated marketing communications both come at the expense of traditional advertising. The reason for advertisings impending demise is the advent of new technologies that have resulted in the fragmentation of media and markets, and the empowerment of consumers. . . . the era of producerconsumer interaction will dominate by 2010. (1994, p. 71)

Clearly, the future is here. It has been over a decade since Rust and Oliver (1994) predicted the death of advertising at the hand of new technologies. It has also been over a decade since Fox and Geissler (1994) countered that advertising was not dying. It was simply having a crisisa crisis that was decidedly driven by the changing business environment that focused on the bottom line. It seems that not much has changed. A recent feature in Fortune magazine, Nightmare on Madison Avenue (Burke and Leonard 2004), again suggests that the old rules of marketing must be abandoned due to technological advancements and harsh control of spending. Admittedly, the rules have changed, but it is not only technology and economics driving the change; it is the intersection of these drivers with changed lifestyles and values of individuals and communities that is making this trend irreversible.

t. Bettina cornwell (Ph.D., University of Texas) is a professor of marketing and sport management, Sport Management Program, Division of Kinesiology, University of Michigan, Ann Arbor.

The author thanks Helen Katz and Michael Humphreys for insightful comments and Russ Laczniak for his invitation to write on this topic. She also thanks Chanel Stoyle and Emerald Quinn for their research assistance.
Journal of Advertising, vol. 37, no. 3 (Fall 2008), pp. 4155. 2008 American Academy of Advertising. All rights reserved. ISSN 0091-3367 / 2008 $9.50 + 0.00. DOI 10.2753/JOA0091-3367370304

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fiGure 1 advertising expenditure versus sponsorship expenditure

Source: Sisily (2005).

Around the world, countries wealthy enough to have discretionary income show increasing levels of out-of-home activities. In the United States, trends show increased spending on performing arts, and spectator sports in particular (Figure 2). While increased spending may partially reflect an increase in prices for these activities, participation in out-ofhome activities figures more and more into the typical budget. The magnitude of these changes is significant. In the United States, expenditure on performing arts events increased by almost 50% between 1989 and 2000, adjusted for inflation, and admissions to major sporting events have almost doubled since the 1960s (Woudhuysen 2001). In England and Wales, participation in sports has increased since the 1980s among adolescents and adults (Green, Smith, and Roberts 2005). Likewise, among Swedish adolescents, sports participation has increased between 1974 and 1995 (Wesersthl et al. 2003). This trend toward out-of-home activities holds multifaceted implications: People have growing emotional connections to events of their choosing; individuals are away from in-home television, and their engagement with communication technologies is typically self-selected. With cell phones argued to outnumber both television sets and personal computers as of 2005 (Townsend 2000), wirelessness supports the trend to be away and yet connected. Furthermore, the expansion of corporate involvement in readily sponsored out-of-home activities is evident in several areas. For example, the advent of extreme sports has been an image field day for marketers wanting to distinguish themselves from competitors (Puchan 2004). Likewise, expansion of music tours (Waddell 2005), sport tourism (Kurtzman and Zauhar 2003), local festivals (Felsenstein and Fleischer 2003), and mega events such as the Olympics and World Cup Soccer correlate neatly with the expansion of sponsorship. In addition to the expansion of potentially to-be-sponsored activities, the support for these and traditional activities fig-

ures into the long-term nature of this trend. Much sponsored activity is fueled, or at the minimum endorsed, by communities, governments, and nations as vital to economic prosperity (Felsenstein and Fleischer 2003; Matheson and Baade 2004). Large-scale and community event initiatives bind community and sponsors together and the glue is rather hard to undo. For example, it is almost unimaginable that community development or refurbishment of a major sports arena would be accomplished without corporate sponsorship. Taxpayers have learned that they can avoid at least part of the bill by selling the communications potential of the venue (Sillars 1995; Vadum 2004). the state of the industry Yet another perspective on the irreversible trend toward sponsoring would come from the firms themselves and the developing infrastructure surrounding sponsorship activities. While early on, firms in many industries, especially those even tangentially related to sport, sought out sponsorship opportunities, many other firms were drawn into sponsorship by the properties, that is, athletes, teams, events, and organizations that sought them out for sponsorship support. In response, many firms have some kind of sponsorship policy regarding, at the minimum, what investments they will and will not make and the type of information they need for this decision. A recent study of Fortune 500 firms found that one-third of these firms has made their sponsorship policy available on the Internet (Cunningham, Cornwell, and Coote 2009). Firms have invested in people and processes to deal with sponsorship and other indirect marketing initiatives. They have also begun to outsource these activities. As sponsorship-linked marketing began to take off in the late 1980s and early 1990s, the response from the advertising industry was mixed. It ranged from embracing excitement to

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fiGure 2 spending on performing arts, motion pictures, and spectator sports

Source: National Endowment for the Arts (2002). Note: Figures at constant 1996 dollars.

disdaining detachment, with some agencies feeling forced to deal with the often thematically incompatible (and seemingly financially incomprehensible) investments of their clients. As sponsorship investments have grown, so has the supporting infrastructure. With some advertising agencies slow to reinvent themselves to accommodate the rapid growth in sponsorship, the door for start-up service providers was left open and inviting. Early entrants, such as Joyce Julius (see Table 1 for a summary of this intermediary and others mentioned in this section), provided some much-needed measurement of the quantity of sponsorship exposures. Although measuring sponsorship investments in seconds of exposure time and comparing this to the cost of advertising in a similar time slot continues to be problematic because these exposures are not equivalent in quality to an advertising message (see Cornwell 1995), it is clear that this measurement does provide some comfort to practitioners wanting to put a value on their investment. The next identified need in sponsorship support was for some sort of matching service where sponsors and sponsees could locate each other readily. Several matching services have begun and many have faltered. Two that appear to be flourishing are found in the United Kingdom: Sponsorshiponline, which provides a database of sponsors and sponsorship seekers, and the government-funded Sportsmatch. The most recent addition to the sponsorship infrastructure has been proposal manager services. No matter their size, firms experience regular and sometimes overwhelming numbers of requests to sponsor sports, events, charities, the arts, and individuals. The task of managing requests has become a full-time job for many, since these groups and individuals see some relationship to the firm, and to rebuff or ignore them is

tantamount to telling them never to buy your product again. Proposal management services are an intermediary employed by the firm. They accept applications from properties seeking sponsorship either in a standard template or using a customized proposal submission form. They may either forward all applications for sponsorship as received or they may screen and develop received proposals under some guidelines. For example, Sponsorwise helps shape on-line sponsorship proposal submissions to meet corporate decision-making needs. Another evolution is the development of sports marketers such as Velocity Sports and Entertainment based in the United States, and Sportfive in Europe. Velocity tends to emphasize strategy and planning for sponsorship and event marketing, while Sportfive focuses more on an intermediary role between football clubs and leagues and potential sponsors. While these firms have broadened their offerings over time in recognition of the need for communications integration, they are decidedly centered on sport properties and property rights, an area where their expertise differs from that of the traditional advertising agency. This is not to say that traditional advertising agencies have not risen to the occasion. Most large agencies have a division that deals with sponsorship. At Starcom Mediavest Groups Relay, they manage the development of sport sponsorship and event-marketing projects for clients. Moreover, on the client side, firms are seeking to find agencies with specialized services for event planning and sponsoring (Maddox 2005). Thus, new entrants, such as Omincoms Element 79 Sports in 2006 (Baar 2006), are appearing on a regular basis. It should therefore be emphasized that Table 1 is only illustrative of the developing infrastructure. Trends in the industry taken together show a

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Table 1 examples of Sponsorship Intermediaries

Type Information house with multiple products Description of example product offering IEG has numerous products, including their biweekly Sponsorship Report and the Return on Sponsorship (ROS) service, which quantifies the link between expenditures and investment returns. They model the factors that tie back to client objectives and calculate returns in each area. Joyce Julius and Associates, Inc., provides independent sports, special event, and entertainment program evaluation. Key products include the Sponsors Report, which provides documentation of in-broadcast brand exposure during sports, special event, and entertainment television programming, and the National Television Impression Value (NTIV) Analysis, which provides impression measurement of sponsorship programs. Joyce Julius and Associates Survey Analyses provide quantitative and qualitative research feedback to gauge a sponsorships success. Element 79 Sports will use a proprietary process called SportsSynch, which attempts to find the intersection of sports, target, and brand. The process is intended to differentiate the shops work from other sports marketing companies (Baar 2006). Sponsor Direct is focused on developing Web-based applications for the sponsorship industry. SponsorPort is their sponsorship proposal and portfolio management software, which helps corporate sponsors and agencies manage new sponsorship proposals as well as current sponsorship portfolios. Sponsorshiponline provides a database of sponsors and sponsor seekers to help match sponsors and sponsorship seekers.

Name, URl, and year founded

IEG www.sponsorship.com 1984 Research supplier

Joyce Julius www.joycejulius.com 1985

Omnicom Groups Element 79 Sports www.element79.com 2006 Proposal management intermediary

Sports-marketing consulting and analysis

Sponsor Direct www.sponsordirect.com 2000 Matching service

Sponsorshiponline www.sponsorshiponline.co.uk 2000

Sponsorwise www.sponsorwise.com 2002 Government matching program

Proposal management intermediary

Sponsorwise is an on-line service that helps corporations and agencies manage sponsorship proposals and requests. Sportsmatch is a government-funded program that supports the development of grassroots and community sports in England by matching commercial sponsorship money invested in community sport with Sportsmatch funding. The Sponsorship Report is a Canadian publication focused on corporate sponsorship of the arts and entertainment, sports, charitable causes, festivals, and events. The aim of the newsletter is to foster partnerships between Canadian corporations and potential sponsees. SPORTfIVE specializes in sports rights marketing, with headquarters in Hamburg and Paris, and offices throughout Europe and worldwide. SPORTfIVE also offers consulting services and publishes market-media studies, feasibility studies, and market research reports. Relay is a sports and event-marketing company focusing on sports, sponsorship, lifestyle, and event marketing. Services offered by Relays sponsorship consulting division include strategy development, sponsorship evaluation, activation plan development and implementation, negotiation, sponsorship management, licensing, and consumer promotions. Relay SponsorVision is a digital monitoring system that uses image recognition technology to compute sponsorship exposure value. Velocity is a sponsorship- and lifestyle-marketing agency with services including consulting, brand promotions, retail marketing, event management, customer entertainment, meeting planning, municipal marketing, property alliances, and research and evaluation.

SPORTSMATCH www.sportsmatch.co.uk 1992 Newsletter and conference organizer

(The) Sponsorship Report www.sponsorship.ca 1988 Sports rights marketing company

SPORTfIVE sportfive.com 2001 Agency

Starcom Mediavest Groups Relay www.relayworldwide.com 2000

Velocity www.teamvelocity.com 1999

Sport and entertainment agency

Note: Unless otherwise noted, information and descriptions were drawn from the URLs provided in the table, and in some instances, from personal communications with representatives from the firms listed.

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worldwide network of sponsors, sponsees, and intermediaries forging a long-term business communications platform. the art of management As philanthropy gave way to strategic investing in sports, arts, and charities, the guardians of wealth were questioned for their intentions. Was it the CEOs love of tennis that moved Volvo into sponsorship or was it a match between the drivers of their cars and the tennis demographic? A paper that was perhaps a watershed in this regard was titled Sponsorship: From Management Ego Trip to Marketing Success. Written by industry practitioners James Crimmins and Marty Horn (1996) at DDB Needham, it endorsed overtly the possibility that sponsorships could be a reasoned business investment and need not be an emotional action of a sports enthusiast CEO. While commentators in the business press continue to suggest that management egos or agency effects overly influence sponsorship decision making, empirical evidence is mixed. Agency effects are said to exist when nonowner managers put their own interests above those of the shareholders in decisions involving corporate assets of the firm. That is to say, managers, with no cost to themselves, would invest corporate funds in activities such as sponsorship of sport or the arts that yield, for example, season box seats for their own use. Cash flow within a firm is often considered a proxy for potential agency expropriations by managers within sponsoring firms. The thinking is that in firms with abundant cash, there is less monitoring of activities such as sponsorship investing. So-called agency costs (Jensen and Meckling 1976) are incurred when sponsorships benefiting the CEO are placed above sponsorships that are of benefit to the firm and its shareholders. Since manager motives for sponsorship investment are difficult to study, cash flow has become a proxy variable for this potential. A study of the National Association for Stock Car Auto Racing (NASCAR) showed a significant negative influence of the cash flow proxy variable (Pruitt, Cornwell, and Clark 2004), suggesting that managers take advantage of the benefits of sponsorship at no cost to themselves. In an event study of major league official sponsorships, no influence of the cash flow proxy variable was found, suggesting no agency effects (Cornwell, Pruitt, and Clark 2005). Using a slightly different approach to discovery of any agency effects, Farrell and Frame (1997), in a study of the 1996 Summer Olympic Games in Atlanta, found a positive relationship between ownership by large investors and securing abnormal returns. The researchers explain this result to be consistent with a monitoring hypothesis where shareholders are powerful enough to discipline managers. Conversely, they did not find negative abnormal returns for entrenched managers, that is, those operating without significant shareholder pressure to maximize firm value (p. 179). One interpretation of these

various but limited event-study findings is that sponsorships with more public fee negotiations may be less subject to agency effects than those with clandestine decision making. NASCAR is known for very quiet negotiations. Alternatively, perhaps some contexts lend themselves more to agency effects than othersadequate evidence is not yet available. Another perspective on management decision making could be that some ostensible agency conflicts may be misconstrued. Take, for example, an industrial firm in Belgium that had a sponsorship portfolio of typical large-scale sports properties and one curiously small sponsorship of a church choir. When queried about this latter sponsorship while visiting the manufacturing plant, on exiting the building, the manager simply pointed to the church across the street and said, That is why we sponsor the choir. While it popped to mind that local civic responsibility would indeed be a reason for sponsorship, he explained that the reason for the sponsorship was far more pragmatic: The churchgoers did not need their parking spaces Monday through Friday and his firm did. Thus, while the managerial motives for sponsorship investments are important in understanding practice, it seems that we may need to borrow frameworks from management and marketing to better understand their complexity. Sponsorship decision making is thick with negotiation, barter, and deal making, and research is yet to unravel these complexities. researching managerial Decision making If advertising, as an area of study, embraces sponsorship as part of the domain of advertising, which it has, then sponsorship decision making must be embraced as part of the domain of advertising management, but this has not yet happened. The old set of advertising relationships focused largely on the relationship between the agency and the client (see, e.g., Gould, Grein, and Lerman 1999), and were focused on the transactional perspective of buying advertising exposure. For many clients, advertising agencies were the gateway to media. In contrast, sponsorship-linked marketing may take many forms and include many intermediaries, such as those noted in Table 1, but may also include direct alliances between the firm and the property (Farrelly and Quester 2005); sponsoring is almost always relational in orientation. Intermediaries may play a pivotal role in sponsoring, but sponsorship is characterized by go/no go managerial decisions involving the property and activation of the relationship to it. Thus, sponsorship decision making must come to the fore of the advertising management research agenda. In studying managerial decision making in sponsorship, it seems that choice-modeling approaches would be most useful. With choice modeling we could better understand how managers make trade-offs when considering sponsorship opportunities with differing characteristics. Similar methods

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such as choice-based conjoint (Pracejus and Olsen 2004) and conjoint analysis (Bloom et al. 2006; Dean 2004) have been utilized to understand how consumers make choices when sponsorship or cause-related elements are involved. A developing gold standard in this methodological vein is best/worst scaling (see Finn and Louviere 1992 for an example and Marley and Louviere 2005 for the underlying theory). With this approach, managers would evaluate choice sets (sponsorship alternatives, perhaps three or four at a time, with various characteristics) and indicate for each set the best choice and the worst choice. This approach has several advantages over traditional discrete choice tasks (Marley and Louviere 2005, p. 464). First, it yields a good deal of information (with information about rankings derivable from the task). Second, the approach takes advantage of a persons propensity to respond more consistently to extreme options. Last, and perhaps most attractive of all, best/worst tasks are easy for people to do. Of course, a major challenge would be finding adequate samples of managers willing to participate in such studies. How sponsorsHip works: tHeoretical propositions Underlying many marketing communications theories is more basic psychological theory on information processing. Key to an understanding of what happens in the mind is the idea of associative networks (Anderson and Bower 1973) and spreading activation (Collins and Loftus 1975). Briefly summarizing from this literature, knowledge is stored in memory in the form of linked nodes of information; activation of a node through some stimulation spreads, and in doing so, supports retrieval of stored information. Researchers in advertising and marketing have utilized this conceptualization extensively. For example, Keller (1993, 2003) shows sponsorship activities as resulting in brand knowledge, which is linked to the brand node in memory in an associative network. It is generally accepted that experience with the brand, and thus a large set of linkages, results in greater associative strength, which is a good thing in the main. Even so, Keller notes (2003, p. 597) that a deeper understanding of how knowledge for a brand and other linked entities interact is paramount. Understanding interactions with other linked entities and other linked information generally is important to sponsorship because sponsorship embeds the brand in a vast field of possible information nodes (e.g., player jerseys, time clocks, scoreboards), often with little direction on how to meaningfully link them to the brand. Henderson, Iacobucci, and Calder (1998) have noted that while research on associative networks has progressed in psychology, these developments have not been adequately leveraged in advertising and marketing. While some research in consumer behavior, such as work on interference (Jewell and Unnava 2003; Kumar and Krishnan 2004), is making use of

recent advances in psychology, there is still room for improvement. The need to consider theory is particularly important in sponsorship since little is known about how sponsorshiplinked communications are remembered. Unlike traditional advertising, where a rich depiction of the brand may be (but is not always) made, sponsorship is an impoverished media, with media being broadly construed as the context through which messages pass. Sponsorship without leverage is a logo or brand name briefly displayeda title sponsor mentioned by an announcer, but not a complete message. Although sponsorship may increase brand awareness and transfer event image elements to a brand or company, it accomplishes these things and others in an entirely different way. The question is then: What theories might be useful in consideration of sponsorship? Two of the more thought-provoking areas are now discussed. theory on How sponsorship might not Be working as we expect How sponsorship information is encoded and later retrieved depends not only on the nature of the exposure, but also on the nature of the receiver. Previous research suggests that the knowledge a person holds about a sport influences his or her perception of the congruence of a sponsorevent pairing (Roy and Cornwell 2004). This research only captured event knowledgewhat is the role of other information held in memory? What influence does it have on a new sponsorship relationship? The pairing of a brand or corporate name with an event or activity is similar to the paired-associate learning task found in numerous studies in psychology. In the paired associate paradigm, two words are presented at study and then individuals are asked to recall one given the other. In the memory literature, Nelson and his colleagues (Nelson, McEvoy, and Pointer 2003; Nelson et al. 1998; Nelson, Schreiber, and McEvoy 1992) have provided the most comprehensive account of how preexisting memories might contribute to recall. Their work accepts the associative networks of Anderson and Bower (1973), and then focuses on understanding one words relationship to another and the way in which these relationships influence memory. They now have convincing evidence that when recall is cued with an associate of a to-be-remembered word, the network of associations emanating from both the cue and the target are involved in the recall process (Nelson, Bennett, and Leibert 1997; Nelson and McEvoy 2002). For example, if you ask individuals, Is the brand TELUS a sponsor of amateur hockey? the associates of TELUS as well as the associates of amateur hockey are activated in memory. This activation of associates might allow an implicit mediator such as Canadian to naturally arise and influence memory since TELUS is a Canadian company and hockey is a popular sport in Canada. This leads us to the following testable proposition:

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Proposition 1: Natural mediators arise and influence memory for sponsorship-linked communications. The results of Nelson, Bennett, and Leibert (1997) suggest that the provision of a mediator concept (or word) would be most important when the associative pathway involves an intermediate link between the cue and the target, as would often be the case in sponsorship. That is to say that in practice, communication managers could supply a concept to support the link between the sponsor and activity instead of relying on individuals preexisting memory networks. Consider the example mentioned previously, TELUS sponsors amateur hockey (a hypothetical associative network is shown in Figure 3). In most past research, this pairing would not be considered to be highly congruent since telecommunications equipment is not typically featured or demonstrated during amateur hockey play, nor is there an obviously strong strategic relationship between the target market for telecommunications and the audience for amateur hockey (Cornwell 1995). For Canadian citizens, the hypothetical associative network shown might be cryptic, with their actual networks being much richer because TELUS is a Canadian firm and hockey is a national pastime for many. On the other hand, this hypothetical network might hold more information than the typical non-Canadian has in memory. With regard to supplied mediation (supplied by the communications manager of the firm), a plausible chain linking TELUS and amateur hockey could involve the intermediate links of young people and cold. By emphasizing young people as the link between TELUS and hockey, one might activate a pathway that would otherwise not be activated. It should also be noted that associations are not limited to words and concepts, but might include visual images (e.g., the Telus lizard made popular in advertising and available as a free download from www.telusmobility.com), or referents to places (like Canada) or people. This suggests a second testable proposition: Proposition 2: Plausible (yet distinctive) supplied mediating associations can help individuals form better memories for sponsorevent linkages and may also influence formation of positive attitudes. An extended network perspectiveone that considers natural mediators and secondary associationswould account for the superior memory results typically found for congruent sponsorevent pairs. An athletic shoe manufacturer would have numerous weak and strong links with a running event and would, in general, benefit from them. Without articulation or reasons to form an explicit memory for the sponsorevent relationship (Cornwell et al. 2006), however, implicit or unintentional memory for both the sponsor and event may make many connections available. These connections might be parallel and may activate resonant connections from the sponsor to the event and back, or they may traverse to other

similar associations such as competitors, especially ones that have sponsored this or a similar event. This also suggests that a direct competitor might be picked up in the activation of weak intermediate links, even if it is not a sponsor of the particular event under consideration. Thus, the following proposition is offered: Proposition 3: Providing a link of information relating to the sponsor and event may help establish memory for the sponsor as contrasted to any direct competitors. The idea of providing additional information to support memory for a relationship between two entities is straightforward enough; however, the question of what type of information to provide in a given situation is still an open empirical question. why use item or relational information? In a competitive marketplace where many brands are sponsors and many in the same category are sponsoring similar events, linking associations or relational information might not be enough. Weeks, Cornwell, and Humphreys (2006a) suggest that consideration of both item information and relational information might be instructive. This thinking, summarized here, combines the work of organizational memory theorists and levels-of-processing theorists. Organizational memory theorists (e.g., Bower 1970; Mandler 1967; Puff 1979) argue that good memory performance requires that an episode be encoded in an organized manner. They argue that similar features across various items produce overlap in memory, and overlap results in the various related items within an episode being encoded as a single, organized representation. Alternatively, levels-of-processing theorists argue that good memory is based on the encoding of differences (Craik and Lockhart 1972; Craik and Tulving 1975). Items are stored as unique representations in memory, identifiable through a lack of overlapping features or lack of integration across representations. It is this lack of overlap that assists retrieval, with the distinctiveness of a particular item allowing discrimination. Einstein and Hunt (1980; Hunt and Einstein 1981) bring these two ideas together. They argue that distinctiveness encoding, as suggested by levels-of-processing theorists, applies to the processing of item information, whereas similarity encoding, as suggested by organizational theorists, applies to the processing of relational information. Relational information serves primarily a generative function, by activating the general class or category to which a specific stimulus belongs. Item information may then be used to search within this limited group of representations. In this way, Einstein and Hunt propose that relational and item information each contribute to memory retrieval processes, but in different ways. To put this in the context of sponsorship, if someone is asked the question Which brand is the major sponsor of

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fiGure 3 Hypothetical associative network

deals and contracts cold cold Western Rockies good outlet Winter sport aggressive

telecommunications

lizard

TELUS brand Canada Canada wireless

Amateur Hockey

elbowing referee

ice rink text messages young people young people

skill

nonprofessional

Weak associate link Strong associate link

World Cup Soccer? both relational and item processing may be used to provide an answer. Relational processing is required to activate memories related to the category World Cup Soccer. This information alone may not be enough to provide a precise response, however, and so the use of item processing is also needed. Item processing would be used to discriminate among all those activated representations in the World Cup Soccer category, to identify the one with the distinctive feature of major sponsor. Thus, if a congruent sponsor for an event might be confused with other congruent sponsors, it may be more important to emphasize the distinctiveness of the sponsor (provide item information) than to further develop the sponsors relationship to the event. (For preliminary results in support of this proposition, see Weeks, Cornwell, and Humphreys 2006b.) This theorizing leads to the following two propositions: Proposition 4: A brand with a diffuse image (and many varied associations) might be congruent with and fit with more sponsorship opportunities, but memory for sponsorship relationships would be expected to be poor. Proposition 5: A brand with a very distinctive image might have to work to develop fit with a sponsorship opportunity, but would then be expected to have a stronger relationship in memory due to the distinctiveness of the association.

sponsorship theory and Generalizability The above-mentioned arguments for the growth and entrenchment of sponsorship also apply to other nontraditional or indirect forms of marketing communication. Advances in technology and changing lifestyles are also related to the growth of activities such as product placement, viral marketing, buzz, ambient marketing, and even guerrilla marketing. All these approaches stem from the need to be where consumers are and the need to be embedded in experience, thus circumventing technologically enabled avoidance on the part of the consumer. These approaches then result in a similar pattern of communication and loose memory networks. Brand names flit by in a video game or come in the form of an audio or visual mention in a sitcom, but they do not form rich advertising messages. We need to know more about the knowledge networks developed by indirect marketing and the ways that they contribute to consumer understanding and behavior. The other major player in indirect marketing is brand placement, and one of the lifestyle changes it follows is growth in cinema attendance. For example, in the United Kingdom during the years 1984 to 2001, cinema viewing increased rather dramatically (www.statistics.gov.uk/STATBASE/ssdataset .asp?vink=6484/). For individuals age 7 to 14, those reporting monthly viewing increased from 10 to 38%, and for those in

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the 1524 age group it increased from 16 to 50% (along with lesser but significant increases across other age groups). Karrh (1998, p. 33) defined brand placement as the paid inclusion of branded products or brand identifiers, through audio and/or visual means, within mass media programming. While the payment might be some kind of value exchange (barter is big in both brand placement and sponsorship), the idea is to connect with consumers by being embedded in media. Here, several points of integration are worth noting. In a recent review of the theory explanations for sponsorship effects (Cornwell, Weeks, and Roy 2005), the following mechanisms were found in the literature: mere exposure effects, low-level processing, reactivation, matching/congruence, articulation, balance or meaning transfer, social identification, classical conditioning, prominence heuristics, and attribution theory. Following are examples that demonstrate the overlapping theory and research implications that suggest the need for bridging among indirect marketing communication areas. As mentioned, one explanation for sponsorship effects is that the mere exposure of a brand name or logo during an event has the potential to influence affect, as suggested by Zajonc (1968, 1980). This has been explored in several papers on sponsorship (e.g., Bennett 1999; Olson and Thjme 2003). Similar theorizing was used by Auty and Lewis (2004) to explore childrens choice of a soft drink following exposure to a movie clip with the soft drink brand name embedded in it. The contribution of Auty and Lewiss work with application to sponsorship research is the role of previous exposure in producing a reminder effect for the brand. Although the best starting point for future research on mere exposure might be to view it as processing fluency (Reber, Schwarz, and Winkielman 2004), where aesthetic pleasure is thought to be a function of the individuals processing dynamics, it is clear that in most instances the substantive differences in information processing are few across sponsorship and brand placement. Again, focusing on brand placement, we find that several of the theory explanations for sponsorship are similar to those found in brand placement. Russell and Stern (2006) use balance theory to explain how consumers align their attitudes toward brands with those of the story characters. Likewise, congruence between brand and plot influence memory (Russell 2002), as is the case in sponsorship where congruence between brand and event influence memory (Cornwell et al. 2006). Blogging, brand pushing, and word-of-mouth communication also operate in a loose web of associations that might be studied in the same ways as sponsorship and brand placement. Thus, it would be beneficial to take a more integrative approach to the various forms of indirect marketing. As Gilbert says with regard to buzz and related custom communication approaches, While advertising remains a vital tool, it is increasingly becoming one element among equals in the

marketing mix (2005, p. 294). It is useful theoretically and practically to group techniques using experience-embedded exposure together as indirect marketing and to learn to what extent they differ from traditional advertising. Thus, a starting point would be to examine the following proposition empirically. Proposition 6: Indirect marketing communications result in context-dependent associations that are more variable and idiosyncratic than associations developed via traditional advertising messages. manaGerial implications If we were to conduct a similar analysis of industry activities for each of these indirect approaches to marketing as was done for sponsorship in Table 1, we would find fledgling firms reminiscent of where sponsorship was only a decade ago. Already, the established firms are capitalizing on core capabilities established in sponsorship analysis, namely, capabilities in choosing the best opportunity for a brand or organization and of measuring effects. Consider the expansion of Joyce Julius, known for sponsorship exposure analysis, to include products such as Television Product Placement Analysis, Motion Picture Product Placement-Rental/Sales Analysis, Opportunity Assessment-Projection Analysis, and On-Site Theater Surveys. Likewise, the major agencies are on top of these trends. For example, in addition to a Sport and Event Marketing division, Starcom Mediavest Group has one devoted to Entertainment Marketing for entertainment tie-ins and Gaming Communications to reach video-game players. While sponsorship should have an elevated status in advertising and marketing, it must reckon with traditional views of the promotions mix. Given the above discussion regarding the similarities between sponsorship and other indirect marketing approaches, and given the need for a term that is flexible for use into the future, the new element should be described with a term such as indirect marketing. At this time, spending on sponsorship dominates indirect marketing budgets, but other areas, particularly brand placements, are expanding rapidly. This suggests that definitional work is needed to set indirect marketing apart from advertising, public relations, personal selling, and sales promotion. future researcH In writing this review of the state of the art and science in sponsorship-linked marketing, a number of areas in need of research were brought to the fore. Several have already been addressed, but others seem noteworthy. Therefore, a research agenda seems a fitting note on which to conclude.

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sponsorship and reconstructive memory Advertising has been shown to influence consumer memory for past product experiences (Braun 1999). Brauns finding that consumer recall of past experience is subject to distortion and can be guided by marketing communications (p. 332) could certainly be applied to sponsorship. A simple extension would examine the potential of sponsorship to elevate recall of past brand experience, but other extensions could be even more interesting. While Braun focused on postexperience communication, attendees during sponsored events might also be influenced by contemporaneous product experience (e.g., through sampling and pouring rights at events) and exposure to signage, as well as postexperience advertising. This multifaceted potential to refashion brand experience has not been explored. leveraging and activation of sponsorship One of the most needed areas of research concerns spending that occurs in addition to the sponsorship contract. This spending typically results from efforts to build awareness of the link between the brand and event through advertising and promotion. Recently, Weeks, Cornwell, and Drennan (2008) distinguished leveraging as all marketing communications collateral to the sponsorship, whereas activation relates to those communications that encourage interaction with the sponsor. The term sponsorship-linked marketing as the orchestration and implementation of marketing activities for the purpose of building and communicating an association (link) to a sponsorship was coined to reflect the required coordination of interacting employees, audiences, volunteers, events, activities, sales promotions, merchandise, cosponsors, and media (Cornwell 1995, pp. 1516). Very few papers have attempted to address the integrative effects of sponsorship in combination with leveraging (consider Becker-Olsen and Simmons 2002; McCarville, Flood, and Froats 1998). Researchers know little about how each possible element in the sponsorship arsenal communicates, and we know next to nothing about how they communicate in combination. Practitioners also face challenges in managing them. For example, are logos able to communicate in a meaningful way on football jerseys, rotational signage, on a field, or when superimposed on broadcast scoring? Based on the findings of Janiszewski and Meyvis (2001), we know that logo meaning, familiarity, and presentation schedule are important for processing fluency, and in turn, for consumer decision making. Moreover, in focused experiments, it seems that processing fluency is not a monotonically increasing function of the number of exposures (Janiszewski and Meyvis 2001). Thus, with logos, more is not necessarily better. In fact, targeted logo presentations might be balanced with efforts to provide other meanings that would improve processing fluency and, arguably, memory.

sponsorship portfolios In addition to the management and measurement required in activating a sponsorship, one must also consider the firms portfolio of sponsorships. Managing a large sponsorship portfolio might be considered simply another integrated marketing communications challenge. On the other hand, there are at least two aspects of sponsoring that deserve additional research. First, there is a practical and strategic need to understand the value of integrating sport and charity sponsoring to gain reach (with sport) while at the same time avoiding perceptions of commercialization (via charity). This portfolio strategy seems commonplace in practice but is underresearched. Theoretically, it is important to understand how the addition of a new sponsorship to an existing portfolio changes the knowledge network of consumers. Keller (2001) argues that for any communications element, it is important to consider the trade-off between commonality and complementarity, in other words, the extent to which the same associations are reinforced or the extent to which new associations are added by any new communications element. Clearly, the theory presented in the previous section could be applied to the development of sponsorship portfolios. sponsorships role in market entry The ever-increasing internationalization of sport (Amis and Cornwell 2005) is making sponsorship a truly international communications vehicle, rivaled only by the Internet. Global and local objectives can be united in sport sponsorship, and a consistent brand image can be presented across multiple global markets (Rines 2002). In fact, large-scale sponsorships amortized across markets makes the most cost-effective use of sponsoring sport (Sports Marketing 2004). What, then, is sponsorships role when brands seek to enter new markets? Because sponsorship is only able to carry a rather cryptic message, it seems that it would be most useful where new markets can already make the link between the product category and the brand name. This would suggest that sponsorship would be helpful in brand line extensions, but would not be as useful as advertising for an entirely new entry for the brand in a category. Nonetheless, it seems that sponsorship may have an expanding role to play if it can be effectively combined with traditional advertising in market entry because it builds awareness for the brand (Schulz, Cornwell, and Weisenfeld 2005). social considerations Controversial sponsorships, such as those for tobacco brands, have been receiving academic attention for some time (Cornwell 1997; Dewhirst and Hunter 2002; Dewhirst and Sparks 2003), but only recently have the issues surrounding obesity

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forced fast food vendors into a similar unwelcome limelight (Barrand 2004). The main policy issue involves the combining of unhealthy consumption choices with seemingly healthful sport images. Does pairing sport and fast food implicitly communicate that one can eat these foods and still look like an athlete? In this regard, gambling, food, and alcohol may all deserve more researcher attention. Other more subtle social issues also merit investigation. It seems that in keeping with the commercialization of sport, holding celebrities in check may actually kill the goose that lays the golden egg. In NASCAR experience, for example, sponsorship is forcing drivers into the same corporate mold, thus reducing their wild appeal (Macur 1999). Also noted is a preference for decidedly attractive athletes for sponsorship. This is one point in the broader set of issues regarding people and sports included and excluded from sponsorship opportunities. sponsorship policy as a company instrument Sponsorship policies are a curious element as a corporate instrument. A sponsorship policy is the document a company crafts that typically explains what a company will (and will not) sponsor, which audiences should be targeted, the quantity of sponsorships that should be undertaken over a given period, and the level of sponsorship devoted to each. Unlike policies on marketing, advertising, and public relations, sponsorship policies are the most likely to be made public. Because sponsorship engagement has historically hinged on some rather unsophisticated, nearly random matching of sponsor and sponsee, policies have been made public to support this process. It seems that some publicly available policies show a missed opportunity to communicate positively and effectively with important audiences. Many sponsorship policies on the Web are deeply embedded in a tangle of links (Cunningham, Cornwell, and Coote 2009). Thus, the state of the art could be described as a bit Jackson Pollock-esque. sponsorship termination We have failed to give adequate attention to the end of the sponsorship relationship. A starting point is a paper by Olkkonen and Tuominen (2006) on relationship fading: The concept of relationship fading refers to the phase in which a relationship seems to be permanently or temporally weakening and declining. Relationship fading can precede an enduring relationship ending, but it can also represent a temporal weakening of the relationship without leading to ending (p. 67). One obvious challenge is to begin to understand carryover effects in sponsorship. When a sponsorship is taken over by a firm, in particular a competitive firm in the same industry, how significant are the carryover recollections of the previous sponsor? This suggests the need for additional research on

sponsorships as relationships or strategic alliances (Farrelly and Quester 2005) rather than tactical decisions. ambushing No paper on sponsorship-linked marketing would be complete without some mention of ambushing. Ambushing is typically thought of as the efforts of an organization to associate itself indirectly with an event in the hope of reaping the same benefits as an official sponsor (Sandler and Shani 1989). Past thinking on policies and strategies regarding ambushing needs to be reconsidered. Since legal protections for true sponsors have expanded, ambushers tend to come close to stepping over the legal line, but do so less often. Strategy research needs to consider how to incorporate would-be ambushers and form alliances, thus avoiding bothersome legal fees as well as painful and expensive surveillance. Communication research needs to consider the positive and negative outcomes for all parties involved. Perhaps an outrageous ambushing actually helps establish memory for the sponsorship in general, and moreover, for the true sponsor as contrasted with the ambusher. Sponsorship-linked marketing is a decidedly interesting and multifaceted area of research. While worthy of examination in its own right, it is also a leader in the sweeping trend toward greater investment in indirect marketing activities. There is a need to better understand the differing communication capabilities of sponsorship, product placement, ambient marketing, and other indirect forms of promotion. There is also a corresponding need to identify areas of overlap and synergy. references
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, , and (2006b), Empirical Support for an Item and Relational Conceptualization of Sponsorship, in Advances in Consumer Research, vol. 33, Connie Pechmann and Linda Price, eds., Duluth, MN: Association for Consumer Research, 312313. Westersthl, M., M. Barnekow-Bergkvist, G. Hedberg, and E. Jansson (2003), Secular Trends in Sports: Participation and Attitudes Among Adolescents in Sweden from 1974 to 1995, Acta Paediatrica, 92 (5), 602609. Woudhuysen, James (2001), Play as the Main Event in International and UK Culture, Cultural Trends, 11 (43/44), 95154. Zajonc, Robert B. (1968), Attitudinal Effects of Mere Exposure, Journal of Personality and Social Psychology, 9 (2), 127. (1980), Feeling and Thinking Preferences Need No Inferences, American Psychologist, 35 (2), 151175.

JULY 2009

SPORTS SPONSORSHIP
GOING FOR THE GOLD

IN THIS ISSUE SPECIAL INTERVIEW PROF NIRMALYA KUMAR

LONDON BUSINESS SCHOOL ASIAN PAINTS: COLORS FOR EVERYONE CELEBRITY ENDORSEMENT MODEL FOREIGN FLAVORS IN INDIA

markathon
Vol I, Issue 4

The IIM Shillong Marketing Magazine

FROM THE EDITOR

Distant Winds have a way of moving faster than we imagine

Dear Readers,
The word caution is usually used in two contexts. First one, when an imminent danger is approaching and the second context intimates about missing an opportunity. In the retrospect of the first sentence, I link the above analogy with the opportunities to be savoured from the UPA IIs first budget. The budget has infused gargantuan funds into the rural and social sector, thus creating a multiplier effect for the economy. Tax rates have been curtailed in many forms to infuse corporate & individual treasuries with fresh cash. But instead of fine-tuning tax saving plans, I would suggest one to channelize their saving towards building a robust wealth portfolio. Moreover, again my projections take me to marketing companies, in particular FMCG and auto sector, where their exposure to rural Our June 2009 economy makes them the right Cover choice for investment. Leveraging brand equity to generate cash flows is one of the most important functions of marketers. The same importance has been demonstrated in the Cover Story where sports sponsorship is projected as the saviour in disguise. Dr Douglous Turco from Drexel University has opined on a range of subjects concerning the sport sponsorship industry and has also talked about its basic premises in India. It is really disheartening to see the dismal appeal of sport in India, where its followers constitute a meagre 0.4% of the population as compared to up to 70 % in developed economies like Australia. Thus, of late, Indian marketers are slowly realizing the immense potential of the sport sponsorship market and it would be interesting to see how they exploit this opportunity in the upcoming Commonwealth Games.

In the special session with Prof Nirmalya Kumar of London Business School, he has talked about the upcoming challenges in marketing and has also briefed about his world renowned concept of 3V model. His immense command on the subject is best understood through the real life application of the model, as explained by him during the course of the interview. How to derive maximum profitability by endorsing a celebrity as well as the value chain formula of Asian Paints is opined by students of MDI Gurgaon and IIM Bangalore respectively. Our Silent Voice section has become synonymous with another Ad event of the country, bringing participation from every corner of the nation. This issue marks the internationalization of Markathon. We need your support and wishes to continue this growth story at exponential pace and spread the mantra of Marketing. Looking forward to your feedback. Asit Kumar Jain

THE MARKATHON TEAM

EDITOR Asit Kumar Jain SUB EDITORS Dilpreet Singh Gandhi Parul Gupta Pranab Talukdar Ritul Singh Saurav Kumar Bagchi CREATIVE DESIGNER Soumyasanta Roy

Markathon | July 2009

CONTENTS
STRATEGIC ANALYSIS Asian Paints: Colors for everyone
K SHRIRAM |IIM B

4 6 10 15 16 18 20

VARTALAAP Guru Speaks

AN INTERVIEW WITH PROF. NIRMALYA KUMAR, LONDON BUSINESS SCHOOL

COVER STORY Sports Sponsorship: Going for the gold

PROF. DOUGLAS MICHELE TURCO |DREXEL UNIVERSITY ANUBHAV GHOSH, PMW SSAWANTTH | IIM S

EYE TO EYE Foreign flavors rule Indian snack market

SATISH K TYAGI | UNIVERSITY OF LOUISIANA, APURV ABHISHEK |IIM I

PERSPECTIVE Celebrity endorsement model

ABHISHEK JAIN |MDI GURGAON

COMPETITION Silent Voice

PRINT AD FOR NOKIA GOES GREEN

SPECIALS Updates
ARUN KUMAR SALURU | IIM S

COVER PHOTO: DEAN SHARESKI

markathon
3

Strategic Analysis

Markathon | July 2009

asianpaints
Colors for everyone
K. Shriram | IIM Bangalore
Asian Paints has been Indias largest paint company for more than four decades; its nearest competitor is less than half of its size. The journey from a garage startup whose name was randomly picked by its founders from the telephone directory to its preeminent position today has been made possible through excellence in every step of the value delivery process. It is interesting to note the evolution of its strategy over the decades, especially since many of the leaders in consumer products from the days of the license raj have failed to remain relevant and face competition of the post-liberalization era. The analysis is based upon the value chain mentioned below: Choose the value
Segmentation Targeting Positioning

Choose the value The target segment for Asian Paints has changed over a period of time in response to the changing demographics and strategies of its competitors. When it entered the market in the 1940s the space was dominated by multinational companies like Jenson & Nicholson. The foreign companies appointed a few traders as their wholesale distributors and allowed them to perpetuate a situation of monopoly. These distributors had neither the compulsion nor the motivation to invest in distribution infrastructure and expand into semi-urban and rural areas. As a result, paint dealers concentrated on big cities where they could make the sales without much investment in distribution infrastructure and market development. Seeing that this bulk buyer segment although huge at that point of time was stagnating, Asian Paints decided to ignore this segment for the present and go to individual consumers. Asian Paints positioned itself to serve the rural markets with small pack sizes, allowing it to reach the remote parts of the country. After successfully capturing the rural markets, Asian paints successfully expanded to target the mid-tier and premium segment over the course of the next few decades. The strategy of creating sub-brands with a distinct promise for each segment allowed it cover the entire market. So while the Utsav and Tractor Acrylic in the economy segment offered protection and adhesion, the Royale Play offered superior finish, color range and special effect finish. Provide the value Asian Paints has been at the forefront of innovation, reaching the markets with new products before its competitors. At the time of Asian Paints entry, paint companies were supplying paints in containers of 500 ml or larger. Asian Paints saw that there was a felt need in the market for paints in smaller packs and 4

Provide the value

Product development Service development Pricing Manufacturing Distributing

Communicate the value

Sales force Sales Promotion Advertising

Strategic Analysis

Markathon | July 2009

harnessed the business opportunity by supplying paints in small packs sizes of 200 ml, 100 ml and 50 ml. This proliferation in pack sizes contributed immensely to its success in rural markets. In the early 90s, Asian Paints was the first to offer 150 shades to consumers, this soon expanded to over 1500 shades in the mid 90s. This was made possible through a tinting mechanism that allowed it to offer innumerable shades to the customer with only a limited set of bases and colorants that were manufactured and transported throughout the supply chain. Being in the business of colors, Asian Paints utilized color to achieve differentiation. Asian Paints also innovated to offer services such as HOME SOLUTIONS that offer painting services in select cities. It carries out intensive research with interior designers, architects and the fashion community to arrive at trend movements in color. This study has gone a long way in helping various industries decide their color combinations for a range of products ranging from furnishings, floorings to home accessories, while also ensuring that Asian Paints is in-tune with the latest trends. Along with product launches, Asian Paints focused on distribution, as it realized that distribution and service were the keys to success in the paints industry. Right from the start, apart from the urban markets, it also focused on small towns with population of up to 10,000, and on rural markets. Unlike other companies, field officers dealt directly with the dealers in small towns. With 22,000 dealers, Asian Paints has the largest network of distributors among the paint companies. It has a service level of more than 85 per cent whereas that of other large paint companies falls between 50 and 60 per cent. Asian Paints has been able to keep costs low while maintaining the high service levels through a strong commitment to manage inventory and dealer credit.

Communicate the Value Asian Paints has managed to garner a huge mindshare of the consumer in an industry that has been traditionally commoditized. It has done this by remaining consistent to its core purpose of continuously rejuvenating the living and working space of people and bringing joy to their lives, even while the message might have evolved over a period of time. The communication from Asian Paints centered on festivity and joy till the early 90s. This was born from the observation that demand for paints was highly seasonal and peaked around Diwali. However, by the mid 90s, the consumers had changed with festivals losing importance in the overall scheme of things and demand for paint itself becoming less seasonal. In the year 1999, Asian Paints revamped the brand when it was found that it currently lacked some of the values like contemporariness and global outlook. The old mascot Gattu was discarded to adopt a more contemporary brand personality. A revamp was undertaken in the entire packaging and visual identity of the brand to be attractive to the growing middleclass in urban markets. Asian Paints has always been more successful in striking a chord with the consumer and clearly conveying the functional and self-expressive benefits. It consistently remained a step ahead of the competition in its communication, such as the Mera waala cream.. campaign to covey the wide color range , and while its competitors were busy talking about the color range, Asian Paints saw the increasing involvement in home making to come up with the Har ghar yeh kehta hai. campaign. With its superior performance in all aspects of the value delivery process, it is not difficult to see why it has been a success. More important however is the lesson in the success of Asian Paints for all companies to constantly rejuvenate themselves in the face of changing environment while remaining loyal to their core purpose.

Vartalaap

Markathon | July 2009

An interview with PROFESSOR NIRMALYA KUMAR

Professor of Marketing, London Business School

Markets always change faster than marketing Nirmalya Kumar brought a drastic change to the frame works of marketing and awakened the sleeping lions of businesses to play a greater role in their territory. Nirmalya Kumar is Professor of Marketing, Director of Centre for Marketing, and Co-Director for Aditya V. Birla India Centre at London Business School. Prior to the current assignment he has taught at Harvard Business School, IMD (Switzerland), Northwestern University, Columbia University. He is also a coach, consultant, seminar leader for fifty Fortune 500 companies in forty-five different countries.

He serves or has served on the Boards of Directors of ACC, Bata India, BP Ergo and Zensar Technologies. His book Marketing as Strategy: Understanding the CEOs Agenda for Driving Growth and Innovation is sought after in the academic as well as in the corporate arena. His new book India's Global Powerhouses: How They Are Taking On The World is the perfect destination to savor the globalization march of India Inc. In this interview which is the very first for any B School Magazine, he talked to Markathon about the various dimensions of marketing that needs to be strengthened in these tumultuous times and also proposed a sustainable path to success for budding managers.

Markathon: In the book Marketing as Strategy, you have mentioned about the declining role of CMOs on the CEOs desk. Do you think the practice can change, with more emphasis now given to quick-fix tactics rather than well formulated strategies and the desire to achieve quicker ROIs? Nirmalya Kumar: As mentioned in the book to get CEOs attention and credibility, CMOs have to become more strategic, more bottom line oriented and more cross functional. In the light of the current situation, the role of marketing is to get a makeover. Because in the end, one cannot cut costs fast enough. You really have to find out how you can increase revenues; find out where the revenues are! The challenge for marketing people in the recession is how to get the revenue up, that too in a short term.

segments. Suppose for each segment I have dedicated purchasing, dedicated R&D, dedicated marketing, dedicated distribution and dedicated service, I can do that. That way I can have differentiation for each of the segments, but the problem is I will lose economies of scale. So the challenge in serving mutually exclusive customer segment is to find out where to cut the value network in order to get the differentiation that the customer desires, while still having the economies of scale that we need for efficiencies. And this is an art. Try to figure out where exactly we need to absolutely cut the value network in order to provide the differentiation that the customer needs and still maintain enough commonality between the value networks of serving different customers, so that we can get the economies of scale. Markathon: Which function of marketing can bring the unique value proposition to the company and to the customer, when value propositions are getting emulated in short period? Nirmalya Kumar: Of course the company will look towards new product development, as it can create the most value for the company if it comes up with unique products that truly meet the needs of the customer. Thats what the companies are looking for. So UVP best comes from the new product development. Of course innovative pricing or distribution can create value propositions that are interesting, but they can be emulated. The one which is most difficult to emulate is the one which comes out of the new product development, because it takes time for the competitors to develop them. Markathon: Along with product development would you also say discontinuing non profitable products should also be taken at a faster rate? Because see in this recession the companies will obviously look for cost cutting, but new product development will involve lots of investment. Nirmalya Kumar: Yes, you cannot have new product development without investment. The fact of the matter is that in the boom times lot of bad practices creep into the companies. There are so many products lying on the shelf and nobody took the decision to delete these products. Recession forces companies to confront products which are not selling, brands that are not performing, promotion tactics that are not working, distribution channels that are not adding value and sales force which are not productive. And for all of

UVP best comes from the

new product development.

Markathon: How does the proposed 3V model is applicable in case of mutually exclusive customer segments on the basis of their perceived value? Nirmalya Kumar: Basically the 3V model is about valued customer, valued propositions and valued network. The more segments you have the more applicable the model is. Because for each segment first you have to define who is the valued customer, thats what the target segment is. As you said, it could be innovative products Vs low cost Vs other products. So every segment has valued customer segment which is mutually exclusive. Thats how it defines the first part. The second thing is once each customer segment is identified, one has to have different value proposition for each customer. So for customers inclined towards innovation, you should have products which are innovative in features, for the low cost customers you have to strip away everything and give them a value proposition which is very much about low price and the basic stuff only. The most interesting part of the 3V model comes, after you know about your different valued customers, and then formulate the value propositions. Then the question becomes where to cut the value network in order to serve the different segments? Because of course I can cut the value network everywhere for each

these things that you confront in recession, you have no choice but to remove them to cut costs. So recession can be a very strong scenario for change management in marketing programs. You look at the automotive companies in US, they all have to restructure. Look at the banks, steel companies, and cement companies. They are closing down their plants and operations which are not profitable and working towards closing down the products which are not performing, removing sales people who are not generating sales. So, you need to prune parts of the product line in which you dont have competitive advantage. Thats what you are seeing across the board right now. Markathon: How can innovation in marketing help make corporate strategies sustainable? Nirmalya Kumar: There is no such thing like sustainable strategy because obviously competitors will copy successful practices. Environment changes, competitor changes, customer evolves and technology too is changing rapidly. So there is no one strategy which is sustainable. But of course, the innovation is an engine which can drive sustainability. Even the most innovative companies are not about launching an innovation and sitting back. To make it sustainable you have to improve it constantly. So the companies, which are successful in innovation, launch a new product with radical features and continuously improve it in small steps all the time and then again launch another product and thus innovation goes on. So innovation is the game which you have to play continuously. Markathon: India Inc is rapidly expanding abroad, but still many international marketing practices have not yet made inroads into India. What do you think the reasons behind it: whether its the characteristics of the Indian market, immaturity of consumers or the attitude of corporate? Nirmalya Kumar: I am not very sure that I have agreed with what you have said. I think that many international marketing practices have made inroads into India. For example the advertising industry in India is extremely creative and quite at par with world standards. Where international marketing practices that have not made into India, most of them are happen to do with online marketing. Online marketing or internet marketing is not that developed in India, it is for good reasons as many customers are still not connected online.

Thats why a big difference between India and abroad in marketing practices is all based on customer behavior. In India print and television advertising is very attractive. In developed world print is almost dying and effectiveness of television advertising is declining. So you have to go online, on the mobile, gaming and social networking to get most of your branding and promotions done. Thats where most of the new actions are and where marketing money is moving. This is not yet relevant in India. So thats why its not a valuable investment. Theres one other place where Indian marketing is different from the developed worlds marketing. Because of the fact that so many customers are either rural or at the bottom of the pyramid, many Indian companies are coming out with innovative products for them. We dont see this in the developed world and even we dont need to see them there. I think the reasons, for the differences between international marketing practices and to India; have less to do with immaturity of Indian market but more to do with its specific context. The Indian market is still very rural, poor and traditional in consumption and that is why many international marketing practices are not yet relevant in India. But when they will become relevant for India, I am sure they will be adopted. Indian marketing innovation will be in the rural market and in the bottom of the pyramid. You will see a lot of new products that are very robust, potable and low cost and that are where the innovation in India lies.

Innovation is an engine which can drive sustainability

Markathon: What should be the course of action for marketers in the aftermath of recession, with market sentiments at all time low? Nirmalya Kumar: Basically there are three actions. First course of action is to cut out all the products which are not generating any value. Look at the marketing programs which are not working and cut those out, because many programs of companies are ineffective. Second is, find ways to increase the revenue. And the third action is to look at the certain needs of the money strapped customers in this recession and find unique value proposition for that.

Markathon: Indian market is now turning into a battle ground for many emerging sectors such as retail, telecom, real estate etc. Whats your view on the emergence of these rapidly growing industries and marketing strategies required for consistent growth? Nirmalya Kumar: Retail and telecom are two different sectors. Telecom is probably going to be mature sooner than retail. In a growing market focus of the companies shifts from customer acquisition to customer retention. In the developing market you look for new distribution channels, new products, new programs and focus on attracting customers. When the market starts maturing, you look for efficiency and for retaining customers. If the market is mature you cant find new customers. Like in Sweden, Denmark everyone has mobile phones. In Ukraine there are 1.2 mobile cards per person- so you cant think of acquiring more customers. Customer retention, customer service and efficiency are the keys for marketers in the mature market.

workshop in Mumbai. I agreed and found out that they are the world leader in laminated tubes, having 32% market share. Then I thought are there more Indian companies becoming global and it was the catalyst for the book. Then I came to India 6-8 times and interviewed about 35 CEOs of Indian companies who were becoming global. Because of the large size of the Indian market, dominant Indian players will definitely go global. As Anand Mahindra told me we have global scale as we have the largest tractor market in India. It will be a disservice to my company, employees and country, if I dont go global or if I dont try to go global Many companies in India are going global because by being the largest in India they have a global scale. So it is really a start of the trend. You could not write this book in 2001. You could only write it in 2009. Because it took all of the 90s for the Indian companies to become globally competitive and in future you will see that many more Indian companies will follow the suit. Markathon: Finally we would like to hear from you the tenets to be followed and the capabilities to be developed by management graduates to become the true leaders of tomorrow Nirmalya Kumar: To be a good business leader you need two things. You need analytical abilities and emotional capability. Analytical abilities are finance, marketing, strategy; but in the end it is not only analysis. In companies, you are leading hundreds and thousands of people. So you need to have emotional capabilities which will allow you to learn how to work in a team. Being a leader requires people to follow you. So how to encourage and motivate those people is your main objective. And people will follow you only if they feel that they can achieve their goals by following you. Being a good leader also means being a good follower. Only if you learn how to follow someone, if you know who would like to follow, why you follow and start thinking about it; you will realize the reasons why should people follow you. And the third thing which relates to both of these two things is that, if you want to become a leader in future, you have to care about others. You have to care for something beyond yourself as it energizes you and others. These are the talents which you should have. Future of the business is going to be very different from the past. Society will expect more from the business houses. Based on the telephonic interview with Asit & Soumyasanta on 14th July 2009

To become a leader of future, you have to care for something beyond yourself

Markathon: We would like to know something about your new book where you have talked about the India Inc as global power houses. Nirmalya Kumar: This book is very personal to me. I am very fond of this book as it brought me back to India to study various companies. I still remember the day, when sitting in my office in London; I received a call from a company named Essel-Propack. I had never heard of the company. They were asking me to run a

Cover Story

Markathon | July 2009

SPORTS

The competition during an Olympic Games or FIFA World Cup can be fierce, passionate, and dramatic, with archrivals stopping at nothing to gain an edge. This may seem to be a description of the elite athletic contests at these mega-events but rather it is applicable to the world of sport sponsorship! Sponsorship has emerged as a marketing phenomenon worldwide, with corporate tie-ups ranging from the Olympic Games and Formula 1 to U2 tours and the Renoir exhibition. Globally, companies are expected to spend $US 44.4 billion on sponsorship in 2009 up 3.1% over 2008. Even in the current recession, European firms are projected to spend $12.1 billion in 2009 while there Asian counterparts are slated to infuse $10.1 billion into the sponsorship, an increase of 6.3 percent over last year.

SPONSORSHIP
PROF. DOUGLAS MICHELE TURCO|ANUBHAV GHOSH|PMW SSAWANTTH
Photo Courtesy: Michael W Giddens

ponsorship is defined as the relationship between a sponsor and a

property in which the sponsor pays cash or in-kind fee in return for access to the exploitable commercial potential associated with the property (IEG, Inc. 2003). Sponsorship is not a donation. A donation involves resources freely given with no expectation of anything in return. Sponsorship is a strategic marketing activity requiring resource allocation (usually cash) with expectation of return on investment. Global giants- Anheuser-Busch, Coca-Cola, McDonalds, and Miller although not directly linked to sports industry, are the top in terms of corporate sponsorship spending. This shows how corporate leverage sports sponsorship as one of the most potent promotional tool. Among the most common reasons why corporations sponsor sport are: Increase brand loyalty Through sport, corporate sponsors seek to build brand loyalty by tying their products and services to the athletes, events and venues their customers care about. Create awareness & visibility The exposure sport properties receive in electronic and print media provides sponsors with vast array of publicity opportunities. Change/reinforce image Sponsorship can create, change or reinforce a brand image. For example, Volvo changed its boxy, conservative image by sponsoring the Volvo Ocean Race and introducing its new sleeker styled vehicles at harbors along the race route. Drive retail traffic Companies use the assets of their sponsorships to create trafficbuilding promotions. For example, F1 sponsors bring show cars and top drivers to retail outlets. Some fast food restaurants sponsor basketball tournaments and when the home team scores a certain point total, the game ticket stub can be redeemed for a free food item, which inevitably leads to additional store purchases. Showcase community responsibility Corporate social responsibility has become the prime factor that influences a persons impression of a company more even than brand quality. Drive sales Companies use sponsorship as a hook to drive sales. Sample/display brand attributes Sponsorship allows companies to showcase product benefits. On-site sponsor kiosks permit spectators to see, touch, taste, smell, and hear sponsor products. Entertain clients Hospitality services at sport venues are relevant to companies that value the opportunity to spend a few hours with clients and prospects and solidify business relationships. Targeting Sponsorship allows companies to hone in on a niche market without any waste.

Dr. Douglas Michele Turco

is Associate Professor of Sport Management at Drexel University. He received the Ph.D. from the University of New Mexico and M.S. and B.S. degrees from the University of Wisconsin at LaCrosse. Prior to arriving at Drexel University, he was a professor of sport and tourism at Illinois State University, where he was named the Universitys Outstanding Teacher in 2002, and at DeSales University, where he received two teaching awards. Dr. Turco is also on faculty at the Indian Institute of Management- Shillong, IMC FH-Krems (Austria), National Taiwan Sport University, and IESE Madrid. Dr. Turco teaches courses on sport event marketing, sport tourism, international sport management, and sport economics. He has authored over 40 articles in journals including Sport Marketing Quarterly, International Journal of Sport Management, Journal of Travel Research, and the Journal of Sport and Tourism, and written several books. The professor also consults on sport and tourism planning, economic impacts and consumer market research for organizations worldwide. His current research involves the Commonwealth Games, U.S. Womens Open Golf Championship, Deaflympics, Pocono 500, Cricket World Cup, and Olympic Games. He is founder and director of the i-Team (International Sport Tourism Research coLaboratory).

Cover Story
Issues in Sport Sponsorship
There are several issues associated with corporate sponsorship of sport including ambush marketing, tobacco company tie-ups, and sponsorship during bleak economic times each are briefly addressed in the following section: Ambush Marketing Ambush marketing refers to the intentional efforts by a non-sponsor to counteract or disrupt the effectiveness of a rival companys official event sponsorship platform. Official sponsors and sport property managers consider ambush marketing to be unethical and poor form. In a highly competitive, profit motivated marketplace, others argue that ambush marketing is a necessary business strategy. Sport properties have gone to extreme lengths to protect their sponsors from ambush marketing tactics, including removal of billboard advertising of nonsponsors near sport venues, and prohibiting spectators from wearing clothing or other items that bear the name of non-sponsors. Tobacco Sponsorship There is a mismatch between the addictive nature of nicotine and other negative health risks of tobacco products and the positive benefits of sport participation, yet sport has been the most popular sponsorship forum for tobacco companies prior to 2005.Governments in Europe and North America

Markathon | July 2009

issued the red card to tobacco companies in 2005:Formula 1 severed ties with tobacco sponsors in 2004 (i.e., Marlboro Racing Team); NASCAR ended its association with the Phillip Morris Company (i.e., Winston Cup Series) and womens professional tennis found a new title sponsor, dropping Virginia Slims for Kraft. Tobacco advertising is now banned in and near sport stadia in the U.S. and most countries around the world including India.

Sponsorship in a Recession
The economic recession in North America has hit motor sport sponsorship the hardest. In the midst of bankruptcy, massive employee layoffs, and federal government bailout, General Motors severed ties with Tiger Woods, withdrew its sponsorship of the 2009 Super Bowl, and scaled back its automobile racing sponsorships. Elsewhere, Bank Credit Suisse terminated its sponsorship of Formula One team BMW Sauber, having sponsored the team since 2001. ING will end its F1 sponsorship in 2010. Subaru and Suzuki withdrew from the 2009 World Rally Championship due to economic pressures. However, some companies have come off the sidelines and into the sponsorship game during the recession. Richard Bransons Virgin has come on board as sponsor of Brawn GP.

CASE STUDIES The following section offers two vignettes illustrating the power of sport sponsorship in India. The first concerns with the Indian Premiere League (IPL) for Cricket, one of the worlds most profitable sport properties. The second vignette pertains to the Board of Control for Cricket in India (BCCI) and its rise to prominence and profitability through corporate sponsorship.

12

Cover Story

Markathon | July 2009 WSG won the marketing rights from BCCI for their sporting extravaganza- the Indian Premier League by committing a whopping$1.026 billion spread over 10 years. World Sport Group (WSG) won the marketing rights from BCCI for their sporting extravaganza- the Indian Premier League by committing a whopping$1.026 billion spread over 10 years. WSG India is a part of the Singapore-based WSG, a global sports management, marketing and media company. Venu Nair, president (South Asia), World Sport Group, said, Ground signages provide continuous visibility to the sponsors throughout the match, unlike the short television commercials which come and go in a flash. We have a method whereby we can show exactly where and how the advertisers will get visibility for their brands (Business World June2008). According to an internal study done by WSG, an average cricket match gets a TRP (television rating point) of 5 to 6, while the IPL matches are expected to enjoy double the TRP, in the range of 7 to 10 every match. The company would achieve such a high rating by having live entertainment shows before, after and throughout the matches, produced by each of the franchisees. These shows would include performance by Bollywood stars and artist.

1 Indian Premier League

Sponsors dream; Spectators delight
IPL has emerged as a sports entertainment phenomenon like never witnessed before by an Indian spectator; the sheer magnitude of deals struck under the IPL Sponsorship Offerings umbrella is astounding! All these revenues fall under the Central Pool, 40% of which will go to IPL, 54% distributed to franchisees and 6% to prize money. The money will be distributed in these proportions till 2017, after which the share of IPL will be 50%, franchisees 45% and prize money 5%.

DLF

Title sponsor Official website associate $ US 50 million

Hero Honda ITC

Associate Sponsor $ US 22.5 million Official Hospitality Partner Official Airline Carrier Official Broadcasters $US 918million

Welcom e Group

Kingfisher Airlines

WSGSony Pepsi

Official Beverage Sponsor $ US 12.5 million

This would mean a perfect marriage of Bollywood and cricket, as both are the most popular forms of entertainment in India, said Nair. Unlike the earlier practice of allowing several sponsors in the same category to advertise on the cricket ground, these deals will allow the sponsors to have an exclusive presence in their business category. This would reduce the clutter of brands displayed on the ground. A sponsor such as Hero Honda, for example, would be the only automobile company to advertise on the ground. These deals do not include the 30-second television commercials spots. Those would be sold by Sony Entertainment Television, which has won the rights to

WSG will also develop a special application for the mobile users. The users will be able to download this value-added service (VAS) on their mobile and get live updates on the matches. It has also developed a onestop portal. The number of brands an average Indian Consumer has been exposed to through the first two seasons of IPL has been remarkable. Moreover, the viewership which the television channels have experienced has been unprecedented as reflected by their TRP ratings. What this has meant is unparalleled exposure opportunities for a swarm of brands on board. 13

Cover Story

Markathon | July 2009

2 BCCI
From Rags to Riches
Cricket is the unofficial national sport of India and the Board of Control for Cricket in India, or BCCI, is the apex governing body for cricket in the country.

The wealth that BCCI is enjoying right now is astronomical and its income for the year 2008-09 is Rs 1000.41 crores. Things were not the same 2 decades ago. This kind of success was made possible by one man: Jagmohan Dalmiya. It was in 1979 that Dalmiya first stepped into the corridors of power of the BCCI along with his friendturned-foe I.S. Bindra. He became treasurer in 1983; the year the Indian cricket team won the World Cup. Dalmiya, along with Bindra, can claim the credit for gaining the right to stage the World Cup in India in 1987, which brought big money into the subcontinent. Even then, BCCI books showed a deficit of Rs 81.60 lakhs in the early 1990s and things started looking bleak. It was then Dalmiya became the Secretary of BCCI and led the commercialization of the game through the television rights revolution at that time, and recorded a profit within a year. Since then BCCI has never looked back and the present status of this elite Cricket Board finds it to be the richest Cricket body in the world.

The wealth that BCCI is enjoying right now is astronomical and its income for the year 2008-09 is Rs 1000.41 crores.
In the last 20 years, Indian cricket like India itself has been transformed. With the arrival of global television networks, mass-media coverage and multinational sponsors, cricket has become big business and India has become the economic driving force in the world game. For the first time, a developing country has become a major player in the international sports arena.

As discussed, sport sponsorship has evolved significantly over the years, transforming into a multi-billion dollar industry worldwide. The wave of sponsorship which has hit the Indian sporting arena in various forms IPL, PHL and NFL etc. - taking sports to an altogether different level. In addition, athlete endorsements have also scaled new heights of late. The multi-million dollar transfer fees exchanging hands in the world of soccer is a fact well-known. This has offered marketers newer avenues to market their brands by associating with some of the more lucrative sporting personalities (and properties) that appeal to a similar consumer base as

that of their products and with images aligning with that of their offering. Although researchers around the world have done significant work in the area of sport sponsorship management, there remains much to be explored in terms of sponsorship effectiveness tools and evaluation metrics used by prospective sponsors while evaluating sponsorship proposal by a sport property. Such tools are valuable to sport properties and sponsors in determining whether a sponsorship was a winner or a loser for the parties involved.

14

SPONSORSHIP
OPPORTUNITIES
2011 SUSAN G. KOMEN PHILADELPHIA RACE FOR THE CURE

Mothers Day, May 8

A World Without Breast Cancer: Our Mission. Your Legacy.

New This Year: The Healthcare Hotspot!

A World Without Breast Cancer:

Now is the Time to Leave Your Legacy.
Last year we celebrated the 20th anniversary of the Susan G. Komen Philadelphia Race for the Cure. This year, we enter into a new era in our Race history setting our feet on a path to make sure that the only thing we celebrate in another twenty years is an end to breast cancer forever. At the rate breast health science is advancing, we hope that by the time the children of today reach adulthood, they will be living in a world without breast cancer. Your Komen Philadelphia Race for the Cure sponsorship fuels these continuted advances in breast health science, as well as breast cancer education, awareness, support and services. In this way, you are not only empowering women to fight the disease today, but you are paving the way for a future where the disease simply no longer exists. What all this means is that in NO way is your 2011 Komen Philadelphia Race for the Cure sponsorship simply a donation that is here today, gone tomorrow. Instead, consider it your investment in future generations! So, as you review the opportunities in this brochure, dont ask yourself, How much do we want to give this year? Instead, ask, How great a legacy do we want to leave our children...how quickly do we want them to experience life in a world without breast cancer? With my deepest thanks for your passion and generosity,

Elaine I. Grobman Executive Director

SponSorSHip opporTuniTy GuiDe

Promotional Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3 Levels & Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 4-5 Special Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 6-7 New: The Healthcare Hotspot! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 7 Your Legacy at Work Today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 8-9 Important Dates & Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10 About Komen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10 2010 Sponsor Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 11 Salute to our Partner in the Promise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12
Photography courtesy of Sandy Edelstein, Dr. Kurt Bomze, Dan Z. Johnson and Howard Kanowitz 2

proMoTional power: CaSH in on THe enerGy of THe C.u.r.e.

The beauty of a Race sponsorship is that, as you leave a legacy of the cures for breast cancer to future generations, your business benefits from the C.U.R.E. we deliver to you.

Connections
As a 2011 Komen Philadelphia Race for the Cure sponsor, youll be in good company with some of the most respected leaders in the corporate, healthcare and political communities. All sponsors are given the opportunity to network and connect with each other at events including: Race Race Race Race Kick-off Party Sponsor Thank-you Party Survivor & Sponsor Breakfast Ceremonies & Sponsors Alley

universality
When you sponsor the Komen Philadelphia Race for the Cure, you energize the work of the global leader in the breast cancer movement. You become part of a Komen Race for the Cure family embracing communities from Germantown to Germany and everywhere in between. Komen has loyal followers around the world - loyal to us, and those who empower the Komen promise. In terms of local market reach, quick facts from the 2010 Komen Philadelphia Race for the Cure include: Overall attendance (approx.): 120,000 Registered participants: 35,282 - Male, 25%: 8,653 - Female, 75%: 26,629 Registrations by state: - PA, 74%: 26,067 - NJ, 21%: 7,469 - DE, 2%: 719 - Other, 3% 1,027

respect
As a member of our Race sponsor family, you gain instant respect and friendship from one of the most loyal groups around: Philadelphia Affiliate of Susan G. Komen for the Cure volunteers, Race participants and fellow supporters. They appreciate your devotion to ending breast cancer forever and demonstrate their thanks by giving back to those who support the cause.

exposure
On the web, in the media, over the expressway...the Affiliate goes the extra mile to gain recognition for our Race, and the generous sponsors who make it possible. In 2010, our Race had exposure via: Local affiliates of all major TV networks (CBS 3, The CW Philly 57, NBC 10, myphl 17, 6 ABC and FOX 29) Over a dozen TV & radio stations Ads in 8 major publications Over 20 daily and weekly community papers throughout PA, NJ and DE Multiple online and social media outlets Day-of coverage from approx. 15 media outlets

SPONSORSHIP LEVELS & BENEFITS 2011 Susan G. Komen Philadelphia Race for the Cure

Every 13 minutes in this country, a woman dies from breast cancer. That one woman represents countless lives - her children, spouse, sisters, friends and family - rocked upside down by the loss of a loved one. With just $100, enough to potentially fund one mammogram through our community grants program, all those lives could be saved the pain of this disease. again, ask yourself: how great will your legacy be?

naMe/loGo eXpoSure
T-shirts: 50,000; logo Sweatshirts: 5,000; logo Race brochure: 200,000; logo Bib Numbers: 50,000; logo Full-page Inquirer Ad: name Press Releases: name PSAs Company Literature in Press Kit* Affiliate Web Site: Feature sponsor page* Affiliate Facebook post w/ link to your site* Affiliate Web Site: online Race brochure Print ads: logo Billboards: logo Use of Race logo for company materials*

preSenTinG SponSor $100,000

x x x (logo on front) x name & logo x x x
logo, write up & link

ruby $50,000
x x x x x x x
logo & link

plaTinuM $25,000
x x x x

GolD $15,000
x x x x

x logo x x x logo logo logo

on-SiTe eXpoSure
Sponsor Tent: high visibility location on Eakins Oval Sponsor Table w/ Canopy on Sponsors Alley Rep Starts a Race Event Opportunity to Supply a Giveaway Item at the Finish Line** P.A. Announcements: name Patron Board Mile Markers Stage Banner Banners at Race Site Address at Opening Ceremony Introduction at Award Ceremony Oppty. for Satellite In-person Registration Site Oppty. for On-site display for Registration Form Pickup Kick-off Party Invitations Race-Day Sponsor/Survivor Breakfast Invitations Sponsor Party Invitations Commemorative Recognition Award Survivors Celebration! invitation and program book Oppty. to attend & supply a giveaway item at Volunteer Thank-you Party** 4 x x x logo logo logo 6 x x x x 10 10 10 x x x x x
*upon request **giveaway must be pre-approved

10x10

10x10 6x8 6x8

x name logo 3 x x x 8 8 8

x name

x name

x 6 6 6 6 6 6

NEW THIS YEAR: HEALTHCARE HOTSPOT!

Starting at just $7,500 weve customized a sponsorship package available exclusively for Race sponsors in the healthcare industry! See page 7 for details and bonus benefits.

Silver pluS $10,000

x x x x

Silver baSiC STarTinG aT $7,500

x x x x

bronze $5,000

SappHire $2,000

pearl $1,000

CrySTal $500

logo

logo

6x8

6x8

x name

x name

4 4 4

4 2 2

2 2 2

2 2

2 2

2 2

Local Presenters Power Boost!

Become a Komen Philadelphia Race for the Cure Local Presenting Sponsor and - in the Philadelphia Market - youll see your logo anywhere you see the iconic Komen Race for the Cure logo (excluding some donated media space). Plus, youll enjoy a promotional power boost, by sharing space with the logos of Komen Race for the Cure National Series sponsor, Yoplait, and National Presenting Sponsors, American Airlines, Ask.com, Bank of America, Ford, New Balance, Re-Max and Self. 5

SPECIAL OPPORTUNITIES!
To add more sizzle to your standard sponsorship benefits, consider a specialized Komen Philadelphia Race for the Cure sponsorship, designed to heighten the impact you can make in the local and global breast cancer movement - as well as your bottom line. Call today - 215.238.8900 - to discuss details of any of these fabulous opportunities, bonus benefits and how we can make them uniquely yours. (awarded to the first qualified candidates(s), and benefits not limited to those listed below)

yearly raCe-SeaSon SponSorSHipS

15th Annual Survivors Celebration! Luncheon: April 10 Be THE friend who makes this cherished memory possible for 1,000 survivors and loved ones. Designation: Co-Presenting Sponsor positions available: Two Contribution: $50,000 primary benefits: Logo on all event materials Logo on all event giveaways Logo on dedicated page in Race brochure Special recognition at the event, with opportunity to speak Race sponsorship benefits at the Ruby level Team Champion Show your spirit to more than 1,000 teams, with total team membership reaching 13,000+ Designation: Primary Sponsor positions available: One Contribution: $50,000 primary benefits: Logo on 2,000 team kits Logo on 900 Team Captain hats Logo on team signs and posters Logo in Race brochure (2 locations) and Team Captain Resource Guide Logo with link on team information web page (upon request) Banner at Team Tent Exposure at team meetings & Team Captain Mentor events Race sponsorship benefits at the Platinum level Finish Line Sponsor When all eyes are on the finish, theyll be on your name, too. Designation: Primary Sponsor positions available: One Contribution: $50,000 primary benefits: Company representative holds finish line tape Banner and display at finish area Opportunity to present and speak at award ceremony Logo/location indicator on Race site map Opportunity to supply item(s) for finish prize(s) Race sponsorship benefits at the Platinum level Park N Ride Shuttle and Security Sponsor Thousands will thank you for this in-demand convenience, as well as the safe keeping of their vehicles. Designation: Primary Sponsor positions available: One Contribution: $40,000 primary benefits: Logo on 2,500 parking hang-tags/shuttle passes Logo on shuttle bus signs Logo on Race-site shuttle pickup sign Logo in Race brochure parking communications Logo in online parking communications Race sponsorship benefits at the Platinum level Fundraising Sponsor 7,000 people fundraise as individuals and team Race participants each year - be in front of them all, every step of the way. Designation: Presenting Fundraising Sponsor positions available: One Contribution: $40,000 primary benefits: Logo on all fundraising materials Logo on 1,000 fundraising prize sweatshirts Logo with link on all online fundraising communications Banner on fundraising collection station at the Race Logo/location indicator on Race site map Race sponsorship benefits at the Platinum level Onsite Race Registration Sponsor Be front and center as more than 7,500 people register the three days of Race weekend. Designation: Primary Sponsor positions available: One Contribution: $30,000 primary benefits: Exposure at Friday/Saturday registration at the Sheraton Philadelphia City Center Display table near Registration Tent Race-site banner at Registration Tent Logo/location indicator on Race site map Race sponsorship benefits at the Gold level

HealTHCare HoTSpoT!
Designation: 2011 Komen Philadelphia Race for the Cure Healthcare Sponsor positions available: unlimited, requested for ALL healthcare industry sponsors Contribution: $7,500 and up For the first time in our 21-year history, the Komen Philadelphia Race for the Cure is honored to put all of our sponsors from the healthcare industry in the spotlight. First-Aid Station Sponsor Show everyone how much you care about their wellbeing at the Race. Designation: Primary Sponsor positions available: Two Contribution: $10,000 primary benefits: Banner on one of two First-aid Tents Display table near First-aid Tent Logo/location indicator on Race site map Race sponsorship benefits at the Silver Basic level Why the Hotspot? While we respect and appreciate all sponsors for the important services and products they provide our community, hospitals and healthcare professionals hold a special place in the hearts of the Komen Philadelphia Affiliate family...for you are the ones that put our Race dollars to work to enrich and save lives - every day! as a Healthcare Hotspot member you will receive: 1. All the benefits of sponsorship at the Silver Basic level: Logo on 50,000 t-shirts Logo on 5,000 sweatshirts Logo on 200,000 Race brochures Logo on online Race brochure Logo on Race patron board Name in full-page thank-you ad in the Philadelphia Inquirer 6 x 8 table with canopy on Sponsors Alley Mention in Race-day P.A. announcements 1 banner on the Race site 4 complimentary Kick-off Party invitations 2 complimentary Sponsor Thank-you Party invitations 2 complimentary Race-day Survivor & Sponsor Breakfast tickets 2. PLUS: bonus benefits including: Invitation to lead or be part of a group session panel for one or more of the following Komen Philadelphia Affiliate breast health empowerment events, each attracting approximately 1,000 women: - Sisters for the Cure, December 2011 - Latinas United for the Cure, March 2011 - Asian-American Womens Health Awareness Day, June 2011 Opportunities to submit article for the Mission in Action feature in our monthly e-newsletter Special recognition (as a group with other Hotspot sponsors) at the 2011 Survivors Celebration! luncheon, April 10 Logo on dedicated Healthcare Hotspot recognition page in Race brochure Second-tier logo grouping (below National and Local Presenting Sponsors) on Race t-shirts, sweatshirts and sponsor poster Designation as a 2011 Race supporter in listings of Komen Philadelphia Affiliate 2011 grantees, if applicable Opportunity to be paired with a Race team to host a fundraiser at your site (upon request)

In-Kind Contributions
Donation of products/services that make for a very memorable and successful Race are always welcome, and play a key role in minimizing expenses while maximizing dollars to empower the cures! For the purposes of determining sponsorship benefits, in-kind contributions are categorized at 50% of their retail value and will be accepted at the discretion of the Komen Philadelphia Affiliate. Items considered vital for the Race, such as water, are categorized at 100% of their retail value. For a list of in-kind needs, or to submit your own ideas, call 215.238.8900.

product Sampling
Please call 215.238.8900 for criteria and benefits.

YOUR LEGACY - AT WORK IN THE PRESENT

The beauty of your legacy as a Komen Philadelphia Race for the Cure sponsor is that it will empower people to fight breast cancer in the present, as well as serve as an investment in the future of a world without breast cancer. Every day...right here, right now...you can see your Race dollars at work to advance the Komen mission - empowering people, ensuring quality care for all and energizing science to find the cures. Up to 75% of new funds raised through the Komen Philadelphia Race for the Cure stays in the Komen Philadelphia Affiliates 13-county service area, making a difference through the work of The Affiliate and our grantees with: Education Mammograms & clinical breast exams Treatment Research Support

The remaining 25% goes toward the Komen Grant Program to help fund groundbreaking breast cancer research. We proudly serve the following 13 counties: PA: Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, Philadelphia, York NJ: Camden DE: Kent, New Castle, Sussex

GRANTEE ACTIVISM
In 2010-2011, The Affiliate distributed $2.1 million, a direct result of Komen Philadelphia Race for the Cure dollars, to thirty-three organizations for their breast cancer outreach programs. These initiatives are expected to accomplish: 3,787 mammograms 5,105 clinical breast exams 9,638 people educated 38,475 total people reached

2010-2011 GRANTEES
Our grantees represent the grassroots efforts that make Susan G. Komen for the Cure a leader in the global breast cancer movement.
Abington Memorial Hospital African Family Health Organization Albert Einstein Medical Center Allentown Health Bureau Bayhealth Medical Center, Inc. BEBASHI, Inc. Cancer Support Community of the Greater Lehigh Valley Center for Asian Health, Temple University Christiana Care Health System - Helen F. Graham Cancer Center Consortium, Inc. Cooper Cancer Institute Crozer-Chester Foundation/Crozer for Chester Medical Center Delaware Breast Cancer Coalition Delaware County Memorial Hospital - Delco Memorial Foundation Drexel University College of Medicine Family Planning Council Health Promotion Council of Southeastern Pennsylvania, Inc. Jefferson Kimmel Cancer Center Lancaster General Hospital Lehigh Valley Hospital Living Through Cancer Mazzoni Center Memorial Hospital National Nursing Centers Consortium Philadelphia Department of Public Health, Ambulatory Health Services Puerto Rican Unity for Progress Sacred Heart Hospital SEAMAAC Southeast Asian Mutual Assistance Associations Coalition Southeast Pennsylvania Area Health Education Center Tunnell Cancer Center at Beebe Medical Center Unemployment Information Center Virtua YWCA of Bethlehem

INVESTING WITH CONFIDENCE

With us, your legacy is in excellent hands! In 2010, Susan G. Komen for the Cure received Charity Navigators highest rating of four stars for the third year in a row. This means, no matter what level of support you give the Komen Philadelphia Race for the Cure, you can do so with confidence in the impact your investment will have on ending breast cancer.

IMPORTANT DATES & SPECIFICATIONS

Nov. 12, 2010 Nov. 12, 2010 Dec. 1, 2010 Dec. 1, 2010 Dec. 1, 2010 Feb. 4, 2011 Mar. 1, 2011 Mar. 1, 2011 Apr. 1, 2011 Apr. 15, 2011 Apr. 10, 2011 Apr. 24, 2011 May 7, 2011 May 8, 2011 Race brochure/entry form* Race t-shirts/sweatshirts* Team Captain hats & kits* Race bib numbers* Web site promotions* Race Kick-off Party (date subject to change) Race banners, patron board & mile markers* Sponsorship payments in full* Philadelphia Inquirer thank-you ad* Sponsor banners provided for Race site* Survivors Celebration! luncheon Literature for media kit* Sponsor Thank-you Party Komen Philadelphia Race for the Cure

Logo submission Adobe Illustrator .eps files only. Black and white vector art is preferred to assure the best possible reproduction. Submit to info@KomenPhiladelphia.org Sponsorship submission The Philadelphia Affiliate of SGK 125 South 9th Street, Suite 202 Philadelphia, PA 19107 215-238-8900 fax: 215-238-1419 info@komenphiladelphia.org contracts also available online at www.KomenPhiladelphia.org
* Indicates materials deadline; contract and logo artwork must be submitted by the given date for all sponsors wishing to be included in the opportunity indicated. To assure receiving all benefits of sponsorship, please remit a minimum of 50% of sponsorship donation by November 12, 2010, with the remainder remitted no later than March 1, 2011.

ABOUT SUSAN G. KOMEN FOR THE CURE

Nancy G. Brinker promised her dying sister, Susan G. Komen, she would do everything in her power to end breast cancer forever. In 1982, that promise became Susan G. Komen for the Cure and launched the global breast cancer movement. Today, Komen for the Cure is the worlds largest grassroots network of breast cancer survivors and activists fighting to save lives, empower people, ensure quality care for all and energize science to find the cures. Thanks to events like the Komen Race for the Cure, we have invested more than $1.5 billion to fulfill our promise, becoming the largest source of nonprofit funds dedicated to the worldwide fight against breast cancer. For more information about Susan G. Komen for the Cure, breast health or breast cancer, visit www.Komen.org or call 1-877 Go KoMen.

10

OUR WORLD...WITHOUT BREAST CANCER

Our appreciation goes out to all those who made our milestone 20th Komen Philadelphia Race for the Cure a roaring success in 2010.
Local Sponsors ACME Markets Action Wheels Affairs To Be Remembered, Inc. AFSCME 1199 Hospital & Healthcare Employees AstraZeneca The Bancorp Bank BIG Events Browns Super Stores Broyhill Asset Managemnet Bucks Magazine CBS 3 and The CW Philly 57 Centocor Ortho Biotech, Inc. Cescaph Ballroom Chapman Autogroup Charles Plaza Chutzpah Magazine Classic Cake/AHB Foods Cozen OConnor The Creative Group The Creative Print Group, Inc. CRW Graphics D&D Securities Daniel Stern Restaurants Dietz & Watson, Inc. Endo Pharmaceuticals Fairmount Park Fox School of Business, Temple University Genentech GlaxoSmithKline HADASSAH Haven Day Spa Hotel Palomar/Square 1682 Hubbell Consulting, LLC. Hyatt Regency at Penns Landing I.B.E.W. Local Union 98 Jane Lopoten School of Dance Janis Productions Video Artistry Jazzercise Joseph A. Ferko String Band, Inc. Kapos Gang The Karen Lundin Band Kerrygold Cheeses & Butters Imported from Ireland La Fourno Ristorante Trattoria Lannett Company, Inc. Lilly Pulitzer Living Well Magazine Loews Philadelphia Hotel Macys Mark Stinger Band Mainline Cycle Mainline Magazine Marriott Philadelphia Downtown Merck & Company, Inc. Novartis Pharmaceutical Corporation PECO Pfizer Oncology Philadelphia Coca-Cola Bottling Co. Philadelphia Daily News Philadelphia Gay News The Philadelphia Inquirer Philadelphia Magazine The Philadelphia Orchestra The Philadelphia Phillies The Philadelphia Tribune Philadelphia Zoo philly.com Poretta & Orr, Inc. Strategic Marketing, Exhibits, Events Quaker Chroma Imaging Rackow & Associates Rapid Delivery & Messenger Service RE/MAX The Ritz-Carlton Philadelphia Roberts Event Group, Inc. SEPTA The Sheraton Philadelphia City Center Hotel South Street Souvlaki Greek Taverna Stanley Steemer The Star Group Steen Outdoor Advertising Temple University Marching Band Thriftway & Shop N Bag UnitedHealthcare of Pennsylvania Voices of Gwynedd - Gwynedd-Mercy College Wawa Westin Hotels & Resorts Windsor Suites Womens Yellow Pages Zekes 5th Street-Deli-Restaurant Zeta Tau Alpha Zinman Furs, Leather, Shearling 3 B Orthopaedics KYW Newsradio 1060 94 WYSP 98.1 WOGL Sportsradio 610 WIP The Big Talker 1210 AM Healthcare Sponsors Albert Einstein Healthcare Network American Association for Cancer Research ARIA Health The Cancer Institute of New Jersey at Cooper Fox Chase Cancer Center Cancer Treatment Centers of America Christiana Care Health System Comprehensive Breast Center at Bryn Mawr Hospital Crozer-Keystone Health System Drexel University College of Medicine/Drexel University School of Public Health Hahnemann University Hospital Jefferson University Hospitals Lancaster General Women and Babies Hospital Mainline Health Mercy Breast Health Task Force Penn Medicine: Rena Rowan Breast Center at the Abramson Cancer Center Joan Karnell Cancer Center at Pennsylvania Hospital The Rosenfeld Cancer Center at Abington Memorial Hospital St. Mary Medical Center Temple University Center for Asian Health

11

Cancer Treatment Centers of America

The Official Partner in the Promise of the Philadelphia Affiliate of Susan G. Komen for the Cure

As we enter the new era of the Komen Philadelphia Race for the Cure - one where the next finish line we cross will be into a world without breast cancer - the Komen Philadelphia Affiliate family is proud and thankful to have Cancer Treatment Centers of America as our co-pilot for this exciting journey. The Affiliate and CTCA, our generous and compassionate Partner in the Promise, devote ourselves to creating a Race event that truly celebrates our communitys ever-growing dedication to ending breast cancer forever...as well as perpetuating the promise of Nancy G. Brinker made to her sister, Susan G. Komen to:

Do whatever it takes to one day cure breast cancer for good.

Together, we will embrace every corner of our community in the spirit of Susan G. Komen, not just on Race day, but every day...instilling hope, caring for the whole person, body and spirit, empowering this generation and all to follow, and stopping at nothing until all people are enjoying the legacy of a world without breast cancer.

Celebrate with us, on Mothers Day, and all year long!

The Official Partner in the Promise of the Philadelphia Affiliate of Susan G. Komen for the Cure

The 2011 Komen Philadelphia Race for the Cure Mothers Day May 8 Eakins Oval/Philadelphia Museum of Art

www.Race.KomenPhiladelphia.org
the Running Ribbon is a registered trademark of Susan G. Komen for the Cure

2011 SPONSORSHIP INFORMATION

ALBUQUERQUE INTERNATIONAL BALLOON F I E S TA

The World's Premier Balloon Event

MAJOR BRAND SPONSORSHIPS Title Few events the size and magnitude of Balloon Fiesta have title sponsorships available. With your brands name above ours, you will benefit most from news coverage and publicity of Balloon Fiesta, which each year amounts to millions in paid advertising equivalence in North America alone. (Of course, news coverage has greater consumer impact than paid advertising, so that figure is conservative.) As The [Your Brand] Albuquerque International Balloon Fiesta, consider: Each year, we host more than 800 journalists from around the world, making Balloon Fiesta a great match for international brands. In addition to national and international publicity, your brand will receive the loyalty of our guests: A 2009 independent survey found that 92% of Balloon Fiesta guests have a positive attitude toward Balloon Fiesta sponsors because of their association with the event. Almost two-thirds of those surveyed said they are more likely to purchase brands of Balloon Fiesta sponsors. This exclusive five-year sponsorship is custom designed to achieve your goals for brand awareness, hospitality, and product exhibit and sampling. To begin planning, call our corporate sponsorship team now. Presenting Our presenting sponsorship is second only to the title sponsorship in generating brand awareness. As The Albuquerque International Balloon Fiesta, presented by [Your Brand], you will be included in all Balloon Fiesta advertising, publicity and brand communications, from Balloon Fiesta Park to our website. This three-year minimum sponsorship is customized to your goals. Park Balloon Fiesta Park just keeps getting busier and better. In addition to Balloon Fiesta, the Park hosts Freedom Fourth the City of

Albuquerques official fireworks show and more events are added each year. With surface street directional signage outside the Park, multiple gates and entrances, and a Main Street more than one-third mile long inside the Park, every visitor will have multiple impressions of your brand. Think big: brand this first-class facility. Field When most people think of a manicured grass field, they think of a football field. How about 54 football fields in one? Thats the size of Balloon Fiestas 78-acre launch field. And the great thing about Balloon Fiesta is that people dont sit remotely in viewing stands; they walk the field and are part of the action. Make your brand visible in the spot where everything happens mass ascensions, Balloon Glows, race launches, precision flying competitions, and more.

Official Sponsorship Product and Service Categories Airline Automobile / Truck Bank Beer Breakfast Cereal Camera / Video Camera Candy Carbonated Beverage (soft drink) Caterer / Casual Theme Restaurant Cellular Carrier / Cell Phone Chase Vehicle Coffee Computer Consumer Electronics Courier Credit Card Dairy / Ice Cream Department Store Discount Retailer Food & Drug Center Film Footwear Gasoline Generator Health Care Home Improvement Retailer Hotel Juice Liquor / Liqueur Long Distance Carrier Magazine Newspaper Outerwear Photo Finisher Radio Station Rental Car Sandwich / Quick Service Restaurant Snack Chip / Cracker Sportswear Travel Gear TV / Cable Network Water Wine

OFFICIAL SPONSORSHIPS Becoming an official product or service of Balloon Fiesta gives you the right to associate, advertise and publicize your brand with ours for an entire year, and in some cases exclusivity in your category (excepting balloon entries and hospitality tents). It also brings significant brand visibility before and during the event, with in-park signage, website hotlink, Program Book ad, and inclusion in Balloon Fiestas brochures and publicity. But thats just the starting point for most of our Official Sponsors, who work with us to customize a sponsorship to their needs. Need exhibit space? Check. Want to play host to your key clients or associates? Got it. Want to sell your products on Main Street? Right this way. Official Sponsorships range from $30,000 to $125,000, depending on your category and benefits. Most require a multi-year commitment. Call our sponsorship team today, and get Official! Some of our Official Sponsorship product and service categories appear at right; please contact us to ascertain whether your category is available, or can be added.

OF BALLOON FIESTA IN 2010 AMOUNTED TO MORE THAN

News Coverage and Publicity $7 million

On-Site Sponsorships These facility-based sponsorships inside Balloon Fiesta Park provide interaction and visibility with guests and media. All include a full complement of benefits: a balloon, publicity, signage, web link, Program Book ad, social functions, VIP hospitality passes, gate and parking passes, and official jackets. Stage Sponsorship ............................$75,000 VIP Sponsor Hospitality Center ......$70,000 Balloon Discovery Center ................$35,000 Media Tent ......................................$25,000 Media Towers (4 towers, each) ........$10,000 Chasers Club ....................................$15,000 Balloon Sponsorships Our most popular sponsorship, and a great introduction to Balloon Fiesta. Get your custom-made banner on a balloon envelope, big enough to be seen by everyone on the ground. Sponsorship investment of $3,500 (not including banner production) includes benefits of a web link, 2 balloon rides, VIP sponsor hospitality passes, gate & parking passes, and official jacket for you and your pilot. Social Media Balloon Trading Cards......................$17,500 Text Updates ......................................$8,000 HOSPITALITY SPONSORSHIPS Entertaining clients, prospects, and friends at Balloon Fiesta is a sure way to strengthen bonds and share good times. Corporate Village is a controlled-access area at the south end of the launch field that provides the best seats in the house. We offer corporate sponsorship tents by the individual session (Fiesta Tents) or for the entire event (Corporate Tents). Tents include tables for serving inside, and large fenced patios furnished with tables and chairs for enjoying the hospitality and show. Prices do not include catering. Corporate Tent 40 x 20 ................$ 20,000 Corporate Tent 20 x 20 ................$ 15,000 Fiesta Tent 40 x 20 (single session).... $ 3,500 or $2,000 (depending on session) In addition, Balloon Fiesta lets you play host to the world by sponsoring several different transportation vehicles that win appreciation from all who ride. Park N Ride ..................................$50,000 (from various locations in town) (co-sponsorships available)

Fiesta Courtesy Shuttle (inside Park)..$2,500 (per shuttle) Fiesta Cart (inside Park) (per cart) ......$1,500 EXHIBIT / DISPLAY / PRODUCT SAMPLING Balloon Fiesta Park has two large exhibit areas, each anchoring one end of Main Street our concession row of food and merchandise vendors that stretches for one-third mile each fed by major parking lots. We take pride in offering our guests fun, interactive exhibits, and our guests repay exhibitors with plenty of attention. Exhibit space (600 square foot minimum) ..................................................$10/square ft. Product Sampling booth (10 x 10) ..$3,500

IN PAID ADVERTISING EQUIVALENCE IN NORTH AMERICA ALONE.

OTHER BRAND SPONSORSHIPS Event Sponsorships We have sessions that fly, sessions that light up, and sessions that explode. Theyre all fun, and they all draw great crowds! All session sponsorships are customizable to some degree; benefits include publicity, signage, web link, Program Book ad, social functions, VIP hospitality passes, gate and parking passes, and official jacket. AfterGlow Fireworks Show (5 sessions) .... $125,000 (co-sponsorships and individual sessions available) Americas ChallengeTM Gas Balloon Race ........................................................$80,000 Special Shape Rodeos (2 sessions)..$50,000 (per session) Special Shape Glowdeos (2 sessions) ..$50,000 (per session) Balloon Glow ..................................$50,000 Night MagicTM Glow ........................$40,000 Flight of the Nations ........................$40,000 Key Grab ..........................................$35,000 Twilight Twinkle Glow ................$35,000 Precision Flying Competitions (3 sessions) (per session)......................................$30,000 Dawn Patrol Show (5 sessions) ........$10,000 Day Sponsorships Own the day, brand the day. We have nine to choose from. Some already have themes; other days you can theme to match your brand. One things for sure: all Balloon Fiesta guests that day will come away with a strong, positive, memorable impression of your brand. Day sponsorships are customized to your marketing goals, and can include a combination of brand awareness, exhibit/display, and hospitality. Sponsorship investment ranges from $35,000 to $50,000, and benefits include publicity, signage, web link, Program Book ad, social functions, VIP hospitality passes, gate and parking passes, and official jacket.

2010 Statistics
ESTIMATED GUEST VISITS

811,484 500 873 17

REGISTERED BALLOONS

MEDIA REPRESENTATIVES

COUNTRIES REPRESENTED

SPONSORSHIP TEAM Laurie Riedle Sponsorship Sales 505-821-1000 ext. 113 lriedle@balloonfiesta.com Liz Davis Sponsorship Sales 505-850-3113 ldavis@balloonfiesta.com Elaine Acker Sponsorship Sales 505-204-8403 Elaine@balloonfiesta.com Nathan James Director, Corporate Sponsorships 415-246-0825 njames@balloonfiesta.com Albuquerque International Balloon Fiesta
4401 Alameda Boulevard, NE Albuquerque, NM 87113 www.balloonfiesta.com balloons@balloonfiesta.com Toll Free 888 422-7277 Phone 505 821-1000 Fax 505 828-2887