SBD/December 7, 2011/Marketing and Sponsorship

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  • Tecate Exec Discusses Company's Strategy Of Reaching Hispanics Through Boxing

    Palau says boxing sponsorship is part of long-term brand positioning

    Tecate is a “rare brand -- beer or otherwise -- whose sports involvement is limited entirely to boxing,” and the company has used the sport in “reaching out to all Hispanics in the U.S.,” according to Karl Greenberg of MEDIA POST. The company's four-year-old boxing activities “are via relationships with the top boxing promotional organizations in the U.S.: Golden Boy Promotions and Top Rank.” The company “activates at retail with limited-edition packaging, pay-per-view rebate deals with purchase, advertising, and a huge brand presence in major fights.” Tecate VP/Marketing Felix Palau recently discussed the company's marketing strategy. Below is an excerpt from the interview.

    Q: The first obvious question is why just boxing? Isn't soccer a bigger draw?
    Palau: I think the most important point is that we really felt that we could be a significant player in this arena. It's about a long-term positioning for the brand. Instead of diluting our resources towards soccer, baseball or any other sport -- we'd love to but don't have those resources -- we align with boxing where we think we can be a significant player. But we need to be consistent and really disciplined in how we integrate here and in Mexico.

    Q: How do you track ROI from boxing activities?
    Palau: It's actually hard to track because it varies a lot by state. We look at it from a sales standpoint. There's a lot of money involved in promoting the fights in terms of media, the pay per views and even all of the specific tailored communications around all five big PPV events we sponsored this year. At the end of the day, we want to build positioning for Tecate that is all around character.

    Q: Have you seen sales spike because of retail activities around PPV?
    Palau: We see from 15% to 17% growth in sales, specifically in markets or outlets in which we activate. That's very hard data, a very clear wave. But it also has a halo effect for us as well in other markets, in on-premises accounts, and grocery stores, even where we don't necessarily promote the fights. We find (even there) that consumers tend to increase consideration.

    Q: What programs would you like to add around boxing going forward? 
    Palau: We may bring to the U.S. a boxing road show that we have had in Mexico for the past two years. It's a big event in fight markets over two or three days, in a large space, with consumer events, autograph signings, music, three to four months per year (MEDIAPOST.com, 12/5).

    Print | Tags: Marketing and Sponsorship, Boxing
  • Marketplace Roundup

    Go Daddy endorsers Michaels (l) and Patrick will be featured in the .co commercial

    Go Daddy has purchased two 30-second ad slots for the Feb. 5 Super Bowl broadcast on NBC, and both commercial scripts have already been approved by the net's standards and practices division. One of the spots features the company’s new .co Web address. The ads are being produced this week in Scottsdale, Ariz., and L.A. Go Daddy endorsers Danica Patrick and Jillian Michaels will be featured in the .co commercial (Go Daddy). This year will mark Go Daddy’s “eighth consecutive Super Bowl broadcast” (BIGLEADSPORTS.com, 12/6).
     
    EYE OF THE TIGER: In Portland, Erik Siemers wrote it is “clear that Nike, perhaps as much as” Tiger Woods himself, is hoping Sunday’s Chevron World Challenge victory “harkens a return of the Tiger that dominated the game like no other.” If Nike can “be given credit for helping make Woods an international superstar, Woods can be credited for turning Nike Golf into a $650 million business.” But in Woods’ recent downfall, Nike Golf “has suffered, too.” Nike Golf sales “fell 4 percent last year to $623 million, making it the only Nike division to post a decline in revenue” (BIZJOURNALS.com, 12/5).

    TRADEMARK FOR TERRIBLE TOWEL: A federal judge ruled in a trademark case yesterday that the Allegheny Valley School Foundation in Pittsburgh “has clear ownership of ‘The Terrible’ trademark -- donated to it by legendary broadcaster Myron Cope.” U.S. District Court Judge Arthur Schwab “ruled in favor of the foundation and the Pittsburgh Steelers LLC in a lawsuit claiming that South Park-based Eugene Berry Enterprises LLC and its owner, Eugene Berry, infringed on the trademark by selling black-and-gold T-shirts with the words ‘The Terrible T-Shirt: A Pittsburgh Original.’" Schwab “permanently banned Berry Enterprises from producing and selling the shirts” (PITTSBURGHLIVE.com, 12/6).

    SELLING IT ON EBAY: British sprinter James Ellington on eBay is seeking US$47,000 to “wear a sponsor's branded kit at training in the run-up” to the ’12 London Olympics. Ellington “lost out on sponsors through four years of injury problems.” He said that he “had managed to qualify for the Games despite no lottery support, kit deal, or any kind of endorsements” (BBC NEWS, 12/7).

    Print | Tags: Marketing and Sponsorship
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