Sponsorships Earn Their Stripes As Military Recruiting Tool

Transcription

Sponsorships Earn Their Stripes As Military Recruiting Tool
IEG Sponsorship Report
800/834-4850 | www.IEGSR.com
August 16, 2010
Category Update
Sponsorships Earn Their Stripes As Military Recruiting Tool
Properties that resonate with and offer opportunities to
interact with 17-to-24-year-olds get the nod from military
marketers.
Although their budgets may have taken a recession-related hit
over the past two years, the U.S. armed forces this year mark
a decade of active involvement in sponsorship.
Multiple armed forces branches continue to use sponsorship
as a platform to educate 17-to-24-year-olds about military
career opportunities and gain one-on-one marketing
opportunities for recruiters.
Among recent developments, the U.S. Marine Corps earlier
this year signed an estimated six-figure deal with Ultimate
Fighting Championship, while the Air Force expanded its
partnership with Kenny Bernstein Racing’s NHRA Full Throttle
Energy Drink Drag Racing Series team.
The armed forces also continue to sign deals with local and
regional properties. For example, the Maryland Army National
Guard recently agreed to a new deal with the NFL Baltimore
Ravens.
That new spending comes amid tighter recruiting budgets
the past two years, including reductions for advertising and
marketing. “Our sponsorship budgets have been significantly
reduced over the past two years as a result of the economy,”
said Tom Tiernan, chief of sports marketing for the U.S. Army
Accessions Command.
U.S. Armed Forces Sponsorships by Number of Deals
Entertainment 4%
Causes 8%
Festivals 12%
All Other
Sports
47%
Intercollegiate and
Interscholastic Sports 29%
© 2010, IEG, LLC. Source: IEG Research
Despite the cutbacks, spending by the armed forces branches
is still sizable. For example, the Army’s sponsorship and event
marketing budget is roughly $50 million for the 2010 fiscal year ending September 30, said Tiernan, noting that roughly half
that money is spent on mobile marketing programs.
The economy also has had an upside for the military, as the tight job market has persuaded more consumers to check out
and opt for military service.
© 2010 IEG, LLC. All rights reserved.
1
IEG Sponsorship Report
“We have definitely seen the benefit of a weak economy
in our recruiting numbers,” said Col. Rob Porter, the Army
National Guard’s chief of strength directorate.
However, the armed forces still need to stay front and center
to continue to spur recruits when the economy does fully
improve, Tiernan said.
“A lot of what we do is designed to impact consumers down
the road, so when the economy turns around we will still have
the same presence among young consumers as we did when
times were tough.”
And not every branch is having a sterling recruiting year. The
U.S. Air Force has nearly 24,000 new recruits, short of its
28,490 goal with about six weeks left in the fiscal year.
Strategy The Same, But Tactics Change
While their sponsorship strategy has remained largely
unchanged over the past 10 years, most if not all of the
armed forces have tweaked their tactics.
Some of the recent tweaks result from belt tightening. For
example, the Army next year will concentrate activation
spending around its primary sponsorship of a Stewart-Haas
Racing NASCAR Sprint Cup Series entry to support just a
handful of key markets.
“In the past, activation in every market looked the same,”
Tiernan said. “That will not be the case in 2011, as we focus
on more critical markets.”
The Army may focus on markets where military personal are
coming off duty and use the sponsorship as a platform to
encourage them to enlist in the Army Reserve, he said.
“One area we struggle with is getting folks who are on active
duty to go into the Army Reserve. We want to attract those
folks to go into active reserve instead of inactive reserve.”
The Army also plans to cut back its local deals in 2011,
Tiernan added. “We expect those types of deals to be few and
far between.”
Semper Fighting: Integration Key To Marines UFC Deal
The Ultimate Fighting Championship fits the Marines Corps’
paramount need for an integrated, relevant marketing
platform to engage 17-to-24-year-olds and discuss military
service, said Sean McNeeley, account director with the
Marine Corps’ ad agency JWT, which spearheaded the deal.
© 2010 IEG, LLC. All rights reserved.
SIDEBAR
Sponsorships By U.S. Armed Forces Branches
Army National Guard
Col. Rob Porter, chief of strength directorate
703/607-2584
Current Deals: Title: Michael Jordan Motorsports AMA
Pro Superbike series team; Panther Racing IZOD IndyCar
Series team. Co-title: Hendrick Motorsports NASCAR Sprint
Cup Series team. Cosponsor: Bass Federation; Bridgeport
Arena at Harbor Yard, Conn.; Colorado State Fair; GMAC
Bowl; Hot Import Nights; IZOD IndyCar Series; Michigan
Int’l Speedway; MLS DC United; Nationwide Better Health
Columbus Marathon, Ohio; NBA Minnesota Wild and
Washington Wizards; NFL Baltimore Ravens and Minnesota
Vikings; Wal-Mart FLW Tour; World Wrestling Entertainment
SummerSlam presented by 7-Eleven and Slim Jim.
Additional Comments: Negotiating with USA Rugby on new
deal to replace expired agreement that gave National Guard
title to some national teams and events. Army National Guard
has sponsored Hendrick Motorsports since 2007; in addition
to co-title of entry driven by Dale Earnhardt, Jr., receives
branding on fire suits worn by Jeff Gordon, Jimmie Johnson
and other drivers. Marketing agency Docupak executes ties,
while ad agency LM&O develops advertising strategy and
marketing thematics.
U.S. Air Force
Maj. Bobby Holland, chief of event marketing, Air Force
Recruiting Service
210/565-4678
Current Deals: Advance Auto Parts Monster Jam monster
truck series; Anderson Speedway, Indiana; Formula Drift
Professional Drifting Championship Series; Great American
Rivalry Series, high school football and hockey; Kenny
Bernstein Racing NHRA team; Monster Energy AMA
Supercross series; Professional Bull Riders; Richard Petty
Motorsports NASCAR Sprint Cup Series team; Scheuring
Speed Sports snocross team; State Fair of Texas.
Additional Comments: This year rolled out Command Center
Alpha, a mobile marketing tour that immerses consumers
in the world of the Air Force through an augmented reality
program. Tour supports Air Force ad campaign that touts how
technology once considered science fiction is deployed today.
Also activates ties by displaying a custom motorcycle created
by Orange County Choppers. Advertising agency GSD&M
Idea City helps develop sponsorship strategy.
U.S. Army
Tom Tiernan, chief of sports marketing, U.S. Army
Accessions Command
502/626-0170
2
IEG Sponsorship Report
“Joining the military is a highly considered decision, and
someone won’t be motivated to talk to a recruiter just
because they saw a sign at an event,” he said. “The UFC is a
credible, meaningful property that gives us an opportunity to
tell a story in a meaningful way.”
The Marines use the partnership to showcase elements of
the “warrior lifestyle” common to Marines and mixed martial
arts athletes, he said. Such elements include training, fitness,
competitive or combative development and brotherhood.
“It gives us a great platform to talk about the commitment
to the warrior lifestyle and common principles and values,”
McNeeley said.
For example, the Marines are activating the partnership
through UFC.com/marines, a microsite that features a threepart webisode series showing UFC competitors training in the
Marines’ martial arts program at Marine Corps Base Quantico
in Virginia. The series also shows the athletes visiting the
National Museum of the Marine Corps to learn about the
heritage, history and traditions of the Marines.
The partnership also affords integration into UFC pay-per-view
events, The Ultimate Fighter reality TV show on Spike, and
recruitment opportunities at UFC events.
On site, the Marines host chin-up challenges and other
athletic competitions to demonstrate the Corps’ “Nothing is
given, everything is earned’ philosophy, McNeeley said.
The Marines also sponsor local properties out of 48 recruiting
district offices, he added. Those districts largely focus on
state high school athletic associations and college football
games.
Tips On Approaching The Armed Forces For Sponsorship
Below, IEG SR offers insights into selling sponsorship to the
branches of the armed forces.
Provide access to high school students. Where possible,
properties should offer platforms that have an educational
component or otherwise can be used for entrée to high
schools.
For example, the Army National Guard activates the WalMart
FLW Tour by taking a co-branded bass boat to high school
events. “We’ve seen great success in that venue,” Porter
said.
Current Deals: Title: All-American Bowl; Stewart-Haas
Racing NASCAR Sprint Cup Series team; Don Schumacher
Racing, NHRA Full Throttle Energy Drink Drag Racing
Series team. Presenting: musician Michael Peterson’s tour.
Cosponsor: Auburn Wild West Stampede, Calif.; Autozone
Liberty Bowl; Bank of America Atlanta Football Classic,
HBCU game; Big South Conference; Essence Music Festival
presented by Coca-Cola; Little Caesars Pizza Bowl; MLS
Houston Dynamo; NHRA; Rock on the Range music festival,
Columbus, Ohio; Triple-A Sacramento River Cats.
Additional Comments: Reportedly will serve as primary
sponsor of Stewart-Haas car for a total of 15 races this year,
down from 23 in 2009; activates with Race for Strength
Challenge on-site interactive game. Momentum Worldwide
helps develop strategy and execute ties.
U.S. Marine Corps
Lt. Col. Darrin Kazlauskas, assistant chief of staff, Marine
Corps Recruiting Command
703/614-1492
Current Deals: California Interscholastic Federation;
Connecticut High School Coaches Assn.; Georgia High
School Assn.; Kirk Herbstreit Varsity Football Series
presented by Burger King, high school exhibition games;
Konica Minolta Bowl; Louisiana High School Activities Assn.;
Maryland Public Secondary Schools Assn.; Memphis in May
Int’l Festival; Nebraska School Activities Assn.; New Jersey
State Interscholastic Athletic Assn.; New York State Public
High School Athletic Assn.; North Carolina High School
Athletic Assn.; State Farm Bayou Classic HBCU football
game; Ultimate Fighting Championship.
Additional Comments: In addition to UFC, other national tie
is a media sponsorship of Thursday night NBA programming
on TNT; the tie affords branding and sponsor integration.
U.S. Navy
Cdr. Brent Phillips, director of marketing and advertising,
Navy Recruiting Command
901/874-9340
Current Deals: Ironman; X Games (summer and winter)
Additional Comments: While local recruiting districts
sponsor professional and collegiate sports teams, on a
national level the Navy focuses on media-based properties
to promote its year-old America’s Navy, A Global Force for
Good positioning. The X games are owned by ESPN, while
World Triathlon Corp.’s Ironman brand has a partnership
with NBC Universal. The Navy’s level of on-site presence is
commensurate with the amount of media purchased during
event telecasts. X Games partnership affords multiple on-site
recruiting booths and in-arena media contests. Partners with
the U.S. Naval Academy to sponsor college bowl games the
academy’s football team appears in.
Similarly, the Army activates its sponsorship of Don
© 2010 IEG, LLC. All rights reserved.
3
IEG Sponsorship Report
Schumacher Racing’s NHRA team by having driver Tony Schumacher—known as “The Sarge”—give talks at schools in race
markets.
Offer access to influencers. The military frequently uses sponsorship to also build relations with parents, teachers, high
school guidance counselors and others who can influence a young adult’s career decisions.
Thus properties should offer hospitality and other benefits that can be used to host and communicate with those audiences.
Be prepared for one-year contracts. Because money cannot be spent until annual budgets are approved by Congress, the
armed forces must have either one-year contracts or multi-year contracts that allow the option of ending the deal after each
year.
“That’s a huge disadvantage for us,” said Porter, pointing to the National Guard’s inability to lock in a NASCAR Sprint Cup
Series driver for more than one season.
Stay abreast of military terminology. When working with the armed forces, properties should brush up on military speak
such as after-action reports (post-event surveys) and mobile recruiting devices (on-site displays).
In addition, the military branches typically refer to sponsorships as partnerships to ensure they are not viewed as endorsing a
property or athlete.
Help measure success. The military typically evaluates return by tracking on-site consumer interactions, changes in
consumer awareness, lead generation, the quality of leads generated, Web site hits, media impressions and the quality of the
impressions.
Properties should provide whatever information or assistance they can related to the above criteria.
Know who to approach. The five active military branches each sponsor national properties out of national headquarters and
local and regional properties out of local recruiting offices.
Sources
Army National Guard, Tel: 703/607-2584
U.S. Army Accessions Command, Tel: 502/626-0170
JWT, Atlanta, Tel: 404/365-7300
© 2010 IEG, LLC. All rights reserved.
4
IEG Sponsorship Report
August 16, 2010
800/834-4850 | www.IEGSR.com
One-on-One
New NHL Developments Signal Trends Of Interest To All Sponsors
And Properties
From slicing up categories to bundling local and national
rights, issues facing NHL deal-makers likely to become
important for other properties’ partnerships as well.
Having added five new league partners and posted a 20
percent increase in sponsorship revenue for the ’09/’10
season, the NHL has it work cut out if it wants to see similar
success in the upcoming season.
IEG SR recently spoke with David Lehanski, the NHL’s
vice president of integrated sales & marketing, about
how the league plans to build on its recent success and
other developments related to how it packages and sells
sponsorship.
Below are edited excerpts from the conversation.
IEG SR: Are there any new developments at the NHL relating to sponsorship?
Lehanski: In terms of new sponsors, there is nothing we can announce right now. Last year was a good year; we brought in
five new sponsors. We have had four really good years in row, and that has given us the opportunity to get in front of more
people than ever before.
That includes companies in categories that have been open for quite some time, including financial services, credit cards,
home improvement retailers and consumer electronics. We have a couple of opportunities in the marketplace that we are
feeling pretty good about.
We are also working on a couple of renewals, including Cisco. We are optimistic on where that is going. We are also looking at
a longer-term partnership with McDonald’s.
The QSR category is interesting. It is so fragmented and there is so much crossover. You think about coffee, and everyone is
serving it. The category is a little more difficult to navigate than it was before.
We are considering breaking it up into different categories, as well as the geographies of Canada and the U.S. We’re hoping
to bring McDonald’s back into the fold for next year and beyond, but it might be a different type of partnership.
IEG SR: So in addition to separating U.S. and Canadian rights—as you do in other categories—you may also slice the QSR
category into multiple smaller ones?
© 2010 IEG, LLC. All rights reserved.
5
IEG Sponsorship Report
Lehanski: Yes. McDonald’s currently owns the QSR category throughout North America. We can look at the category through
two lenses: One is interest in the U.S. and Canada, and whether or not it makes sense to do another North American deal
again.
Secondly, we can look at all of the categories within the QSR category: sandwiches, pizza, coffee, etc. McDonald’s has been a
great partner, but it’s all about where they see value and what they want to activate against. If there is a category they don’t
want to activate, it makes sense to have another partner that is activating with our fans.
IEG SR: What else is the NHL doing differently from a packaging or sales perspective?
Lehanski: The number of events on the NHL calendar has increased dramatically over the past several years. We have
the Winter Classic (regular season U.S. outdoor game), Heritage Classic (regular season Canadian outdoor game) and the
Premiere series (regular season opening games held in European cities), among others.
We are continually adding to our overall partnership opportunities and the same holds true from a media standpoint. We’ve
invested in NHL.com, which we believe is a best-in-class product.
The number of activation programs on NHL.com has increased significantly over the past two years in conjunction with
Game Center Live, our all-digital subscription package, and a new mobile product that we have been building in the U.S. with
Verizon. Next year, fans can watch up to 1,000 live games on their handsets.
Our new platforms and events are forcing us to change our partnership offering in a good way. In addition to having more
sponsorship opportunities, our new events give us the ability to offer custom solutions to corporate partners. No one wants to
buy off-the-shelf products anymore, such as title of this event or presenting status of that event.
They want unique ways to integrate their products into unique experiences, both on site and off. It’s all about creativity.
Everyone wants to see unique activation concepts.
In addition to highlighting the value of our assets, in every presentation we say, “This is how we can proactively activate the
partnership for your business.”
IEG SR: So more companies are expecting the NHL—and other properties—to help develop activation ideas?
Lehanski: Absolutely. The NHL had already been doing this for a number of years; we had to because we didn’t have the
scale of other properties, so we had to rely on being flexible and creative.
But that’s now become the standard, in part due to the state of the economy, reduced corporate spending and more
emphasis on return on investment, analytics and metrics. Every single prospect we speak with asks about ROI, and every
partner we have is pushing us to come up with unique activation concepts. There are very few cookie-cutter activation
programs in the NHL.
IEG SR: From your perspective, has the sponsorship marketplace recovered from the doldrums caused by the recession?
Lehanski: The good news is that activation is definitely up. I don’t know if that is a sign of a broader rebound in sponsorship
spending, but it is definitely up. We will see more NHL-themed advertising this year than we have ever seen before.
From a promotion and experiential activation standpoint, we are also seeing activation planning further ahead than we have
ever seen. We have been talking to our current partners about the upcoming season for weeks if not months, depending on
the sponsor.
© 2010 IEG, LLC. All rights reserved.
6
IEG Sponsorship Report
IEG SR: What other trends are you noticing?
Lehanski: I see two other trends as it relates to the marketplace. First, we are seeing shorter deals. The days of the big fiveyear deal aren’t gone, but fewer companies are willing to make that type of investment.
Thankfully for us, we still have multi-year deals across the board, and people understand that it takes time to start a
partnership, build equity in the relationship and properly activate it. All of our partners have multi-year deals, but the window
has probably shrunk a little. Hopefully we will get back to longer-term deals eventually.
Related to that, some companies are looking for shorter-term deals that have more flexibility on renewals and extensions.
That includes discussions up front on mutual opt-outs and exclusive negotiating windows to extend an opportunity. That’s not
brand new, but it is happening with greater frequency.
Another trend is non-exclusive agreements. That’s not to say we have any, but it is coming up more as a discussion point,
whereas four or five years ago it was sacrilegious to mention non-exclusive agreements.
It happens on the local level, where teams have multiple partners in certain categories. On a national level, these discussions
are forcing properties to think about having multiple properties within a category, and to sell promotional windows around
those relationships.
It comes down to whether or not it makes sense for a company to activate across an entire season, or if it can live with
activating during a specific promotional period.
IEG SR: Speaking of teams, the NHL last year forged an interesting partnership with Enterprise Rent-A-Car (“Brand
Differentiation The Key to Car Rental Sponsorships,” 11/2/09), that included rights to the league’s 30 teams. Gatorade also
has team rights as part of its NHL deal. Do you plan to strike similar agreements in other categories?
Lehanski: That’s a great question; we are exploring it. There have definitely been more requests for packages that include
local partnerships and activations.
Right now there are two categories where we are working on partnerships that include league rights as well as marketing
assets with roughly 10 to 15 teams. The two prospects aren’t looking for all 30 markets, but they are interested in
partnerships that reach fans sitting in the seats.
The Enterprise partnership was great for us in terms of working with a great company and helping us establish a process of
working with clubs and pulling together assets so that everyone wins.
IEG SR: What are the two categories where there is interest in local as well as national rights?
Lehanski: Quick-service restaurants and distilled spirits, the latter of which would be the first for the league. We are taking
our time with that category to make sure we go through all of the checks and balances.
Source
National Hockey League, Tel: 212/789-2000
© 2010 IEG, LLC. All rights reserved.
7
IEG Sponsorship Report
August 16, 2010
800/834-4850 | www.IEGSR.com
Strategy
Hyundai Looks To Cover All Bases Through National, Local Deals
On-site execution must change to fit with updated brand
perceptions.
When it comes to sponsorship, Hyundai Motor America (“New
Beginning: Hyundai Genesis Hits Festivals,” 6/30/08) takes a
two-prong approach: Use national media-centric properties to
build the Hyundai brand and local properties to let car buyers
touch, feel and drive its vehicles.
On the brand front, the automaker recently struck a fouryear deal to title college football’s Sun Bowl as part of its
self-described “big voices in big places” ad strategy, which
encompasses traditional and digital media buys around large
events such as the NFL Super Bowl and the Academy Awards, as
well as leveraging its South Korean parent Hyundai Motor Co.’s
status as worldwide partner of FIFA and soccer’s World Cup.
Hyundai reportedly has plans to add a major golf property to that mix, with word it is negotiating title of the World Golf
Championships stop in Miami, replacing IT management and enterprise software company CA, Inc., which opted not to renew
after its contract expired this year.
On the local level, Hyundai uses a two-year-old partnership with the MLB Los Angeles Dodgers and ride-and-drive programs—
including the just-launched Hyundai Sonata Uncensored Tour—to support national ad campaigns, promote its vehicles and
gain leads for follow-up marketing.
IEG SR spoke with Monique Kumpis, Hyundai’s experiential marketing & strategic alliances manager, about the Hyundai Sun
Bowl, the Dodgers and Sonata Uncensored. Below are edited excerpts from the conversation.
IEG SR: How does the Hyundai Sun Bowl sponsorship fit with your “big voices in big places” strategy?
Kumpis: We have used the strategy for several years to position our brand in high-profile advertising venues. It’s a North
American strategy that includes the Super Bowl and exclusive auto status with the Academy Awards.
It’s primarily an advertising strategy, whereas the Sonata Uncensored Tour lives in the experiential, promotional world.
The Sun Bowl gives us another great platform to tell our story. It lets us tap into the dedication and passion of college sports
fans. Those types of partnerships are a great way to reach our audience.
Sponsorship also gives us a platform to connect with consumers as we launch new products. We have a lot of new vehicles
coming down the pike.
IEG SR: The experiential piece, particularly the test-drive platform—has been an important element of Hyundai marketing for
© 2010 IEG, LLC. All rights reserved.
8
IEG Sponsorship Report
the past couple of years. Has anything changed regarding that strategy or the tactics that support it?
Kumpis: As we’ve worked to elevate the brand, the way we communicate our message has changed. For example, the Sonata
Uncensored Tour goes beyond just tents and cones to offer a real brand statement.
We see ourselves as a modern brand, and we target modern consumers. As such, we partnered with Dwell magazine on the
tour. Dwell is an architecture and design magazine that helped create the Uncensored program.
Dwell speaks to the same consumer we are trying to reach. The Sonata target isn’t really a demographic profile, but more of
a mindset. The target has a forward-thinking view of the world and is committed to making a difference and engaging with
others, while still expressing a unique sense of self. They are socially responsible, expressive, aware and savvy.
The tour features components that appeal to the modern consumer, including the use of iPods, Foursquare—the locationbased social networking app—and the opportunity for guests to upload their thoughts to a Facebook page. Those comments
will be used in the national Sonata Uncensored ad campaign.
Dwell also brought in Starbucks and Izze juice, both of which receive a presence at the events.
IEG SR: When did the Uncensored Tour kick off, how many markets will it visit, and when will it conclude?
Kumpis: The tour kicked off in Chicago, and we’re taking it to ten locations, all of which are located in major markets.
We’re taking it to venues where we can set up a big footprint, such as the Autobahn Country Club outside of Chicago, Citizens
Bank Park in Philadelphia and FedEx Field outside of Washington, D.C. The tour will run through the middle of October.
IEG SR: Is Hyundai purchasing sponsorship packages at any of those venues, or just renting some temporary space?
Kumpis: There is no sponsorship component. We sponsored a mix of festivals and invitation-only events two years ago as
part of the Discover Genesis Tour around the introduction of our Genesis sedan. We invited attendees at the festivals to come
see us and experience our brand.
That kind of event was appropriate where we were with our brand then. But perceptions of our brand have shifted and people
are more open to our message, so Uncensored is an invitation-only event. That type of event is working well for us now.
IEG SR: What’s the thinking behind Hyundai’s sponsorship of the Dodgers?
Kumpis: This is year two of our partnership with the Dodgers. This is another area where we can tap into the passion of our
target consumer. People are passionate about baseball.
We leverage the partnership with a campaign that is respectful to fans, the team and other stakeholders. For example, the
color of our on-site display is coordinated with the team’s colors. It’s not a big, glaring sign. It’s very respectful.
Our ad campaign around the sponsorship also is respectful of fans. It’s a “think about it” type of campaign, where we ask
questions about baseball and the Dodgers, such as, “Why do we wait until the seventh inning to stretch?” We want people to
think about why they spend so much money on a car: Are they buying a badge or a vehicle?
The campaign is a 360-degree program. It starts with signage and vehicle display on the stadium concourse and includes an online
sweepstakes. It positions Hyundai as an active and passionate fan and demonstrates a genuine appreciation for baseball.
Source
Hyundai Motor America, Tel: 714/965-3000
© 2010 IEG, LLC. All rights reserved.
9
IEG Sponsorship Report
August 16, 2010
800/834-4850 | www.IEGSR.com
Adding Value
Inaugural B2B Program Yields Positive Returns for NBA Team And
Sponsors
Investment in facilitating business relationships among
sponsors leads to better ROI delivery for properties.
The NBA New Jersey Nets have helped at least two sponsors
generate incremental business as result of the Nets Chamber
of Commerce, a year-old B2B networking program for sponsors
and season ticket holders.
Commercial landscape management company Lawns by
Yorkshire, Inc.—the Westwood, N.J.-based preferred landscape
service of Nets basketball—has developed a new business
relationship with Vonage Holdings Corp., while IT consulting
and systems integration provider High Point Solutions, Inc.
also has seen positive results.
“Has the Nets Chamber of Commerce helped generate new
leads and business? Absolutely,” said Mike Mendiburu, High Point Solutions’ president.
The chamber was introduced to augment existing, if less formalized, efforts of the team to forge connections between
corporate partners.
“As we are all being measured differently in this economy, this is another important way for season ticket holders and sponsors
to justify their investment in Nets basketball,” said team CEO Brett Yormark upon launching the chamber in June 2009.
To incent participation in the program, the team guarantees each member company at least 10 qualified introductory
meetings throughout the course of a season.
“We encourage members to identify companies they want to meet, and we facilitate that introduction to help them generate
business,” said Josh Pruss, the Nets’ managing director of partnership marketing.
Chamber members have the opportunity to attend exclusive networking events. Most of last season’s events were held
prior to or at halftime of Nets games at the Izod Center. The team also has hosted chamber events at its nearby Nets
Center training facility. For the next two seasons, the Nets will host the meetings at Newark’s Prudential Center, the team’s
temporary home prior to its 2012 relocation to the Barclays Center in Brooklyn.
The events typically include presentations on relevant business topics, led by professionals from team sponsors as well as
outside companies. Topics have ranged from the economy to social media.
© 2010 IEG, LLC. All rights reserved.
10
IEG Sponsorship Report
The Nets hosted five one-hour chamber events last season, and plan to host two or three more before the start of the 201011 season, Pruss said. Roughly 75 sponsors—the majority of the team’s B2B partners—participated in at least one event,
with roughly 10 to 12 participating in every event, he said.
Outside of the events, chamber members can reach out to each other via a member directory accessed through a passwordprotected area of NJNets.com. The area also includes a schedule of chamber events.
In addition to providing added value to sponsors, the program has benefited the Nets in the form of new sponsorship
inventory: For the program’s first year, the Nets included presenting status of the program as part of team partner Aflac Inc.’s
sponsorship.
“In the first year we were trying to figure out how it would work,” Pruss said. “Moving forward, we will look to develop
secondary sponsorship packages with individual chamber events.”
Presenting sponsorship included the incorporation of Aflac’s name into the Nets Chamber of Commerce logo, among other
benefits.
Pruss said the team plans to enhance the chamber’s event offerings with bigger and better speakers and topics. “We tapped
our internal relationships to bring in speakers, but now we’re trying to dig deeper,” he said.
Overall, Pruss is sold on the concept of forming such B2B groups. “It has definitely been a success for us, and I would
recommend it to others.”
(For more information on property efforts to promote relationships among corporate partners, read “More Sponsors
Interested in Property-led B2B Networking Groups,” 8/9/10.)
Sources
High Point Solutions, Inc., Tel: 973/940-0040
New Jersey Nets, Tel: 201/935-8888
© 2010 IEG, LLC. All rights reserved.
11