SBJ/November 26-December 2, 2012/Marketing and Sponsorship

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  • Trimming it here, growing it there: Great Clips moves money from race titles to Kahne

    Great Clips will shift its NASCAR spending next year by dropping two Nationwide Series race title sponsorships in order to sponsor Kasey Kahne’s No. 5 car in three Sprint Cup Series races.

    The hair salon company has sponsored Kahne since he made his Busch Series debut in 2001, but it never sponsored him at the Sprint Cup level until buying a co-primary sponsorship with Hendrickcars.com for this year’s Nov. 4 race at Texas Motor Speedway.

    Great Clips will sponsor Kahne in three Sprint Cup races.
    Photo by: GETTY IMAGES
    The company saw enough value in that deal to buy three primary races — Bristol Motor Speedway in March, Indianapolis Motor Speedway in July and New Hampshire Motor Speedway in September — with Kahne at the Sprint Cup level.

    Sources valued the three-race deal with Kahne at more than $1 million. The agreement shrinks the number of available races on Hendrick Motorsports’ No. 5 car from seven to four for the 2013 season.

    Great Clips, which has 1,300 franchisees and more than 20,000 stylists, will continue its full-season primary sponsorship of Turner Motorsports’ Nationwide Series program. Kahne will drive in 10 Nationwide races next year for the brand and Turner.

    NASCAR has given Great Clips a 3-to-1 return in media value over dollars invested, according to Terri Miller, Great Clips’ vice president of marketing and communications. The company put its NASCAR program up for review before a board of franchisees and showed the board other options for sports sponsorships such as college basketball and the NFL. The board voted to extend its NASCAR sponsorships through 2014.

    “For the money we invest, NASCAR wins out over those in ratings, popularity, geography, seasonality,” Miller said. “To add the layer of Sprint Cup races on top of a powerful program is an exciting, emotional and smart business decision.”

    Miller said that Great Clips plans to develop a commercial for next year that features Kahne. It has partnered with History Channel to feature Kahne converting his garage into a man cave. It also will run a show car program and promote its ties to Kahne at retail.

    Great Clips works with Minneapolis-based Compass Point Media, a media buying and strategy agency, and Periscope, a creative and social media agency, on its NASCAR sponsorship.

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  • Success of Yankees scent means that more are on the way

    Terry Lefton
    There were some obvious jokes to be made when the Cloudbreak Group licensed New York Yankees cologne and perfume last year, and plenty of people made them. Not in this space, of course, but there were questions about whether the fragrance would smell like a locker room, if the scent would include traces of Cracker Jack or pine tar, and whether a Mets fragrance would be malodorous.

    With a season of retail success for units that sold for $62 for a 3.4-ounce bottle under their belts and sales well beyond expectations, the jokes have stopped and the extensions are proliferating. Before next season, Cloudbreak will launch fragrances bearing the names and logos of the Boston Red Sox, Los Angeles Dodgers and Texas Rangers.

    A holiday gift set for men includes a Yankees wristwatch. Fragrances for Red Sox, Dodgers and Rangers fans will be available soon.
    The first two teams have tradition and history on their side, if not quite the championship hardware count of the 27-time champion Yankees. As for the Rangers? Don’t mess with Texas in terms of that market’s importance and as a complement to the New York and California markets, with the addition of the Dodgers.

    NFL and collegiate licenses are also being eyed, said Cloudbreak CEO Thomas Butkiewicz.

    “We proved that the Yankees scent was a national play, which actually some people questioned,” he said. “The bottom line for us, as far as retail success, is picking teams with fanatical followings, located in big markets. So, we are proceeding carefully, but there is no question the demand is there.”

    While many anticipated the Yankees fragrances would quickly shift to midtier and downstairs distribution outlets, sales have been strong enough to keep “eau de Yankees” in the “upstairs” department store channel, Butkiewicz said.

    Now Cloudbreak is expanding distribution to Panama, the Caribbean, Venezuela, Europe and Asia, along with military channels and airport retailers. Forthcoming licensed products include a $10 “Game Ready Bath Set,” which includes shampoo, bubble bath and a Yankee-branded rubber ducky, slated to be available with the marks of 15 MLB teams by next season.

    > PADDLING ON: Just four years old, Peter Farnsworth’s TopSpin table tennis tournament continues to gather an impressive crowd among sports, media and entertainment marketing types and raise a notable amount of money for charity.

    This year’s tourney, held earlier this month in downtown Manhattan, attracted more than 900 people and raised upward of $275,000 for three educational charities: A Better Chance, Change for Kids, and Horizon/Brooklyn Friends School.

    Former NBAer Allan Houston beat another former baller, John Wallace, in the celebrity tournament. In the open division, GroupM ESP finance manager Cecilia Chen triumphed, while the digital agency Williams-Forrest won the corporate division.

    TopSpin sponsors included MLB, the NBA and NFL, the Brooklyn Nets and New York Knicks, and agencies including Wasserman Media Group, Group M, Van Wagner Sports and Entertainment, ANC Sports, Octagon, IMG and Farnsworth’s Foxrock Partners.

    Terry Lefton can be reached at tlefton@sportsbusinessjournal.com.

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