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January 4, 2007
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PGA Tour Season Preview

Overnight Sensation? FedEx Cup Makes Its Debut On PGA Tour

By Rick Ellington, Staff Writer

FedEx’ title sponsorship of the PGA Tour’s new championship format marks the largest investment the company has made in the PGA Tour. The company had been the title sponsor of the annual tour stop in Memphis since ’86 and became an official marketing partner of the circuit in ’00. Also, FedEx maintains the title sponsorship of the Champions Tour event in Austin. However, this new venture with the PGA Tour raises the relationship to a different level. FedEx Dir of Sports Marketing Kevin Demsky said, “The FedEx Cup is everything that we’ve done times ten, but we think it was a very natural progression for us to take on.”

SUPPORTING EFFORT: To that end, FedEx is taking steps to make sure it maximizes its investment. “The most visible thing people will see is the advertising muscle we intend to put behind the FedEx Cup,” Demsky said. “We look at this FedEx Cup sponsorship as being a major plank in our entire sports marketing portfolio. We intend to leverage it and make the investment necessary to have it pay off.” The company is planning an integrated ad program across several media platforms, including 30-second spots that debuted during Fox’ coverage of the FedEx Orange Bowl and will air during PGA Tour coverage on CBS, NBC and Golf Channel. There also will be ads in print and online publications, as well as a large branding presence on-site at the 40 events comprising the series and the playoff. In addition, FedEx is planning a direct mail campaign featuring the FedEx Cup logo to reach its core customer base.


OPENING NEW AVENUES: As part of its wide-ranging marketing blitz, FedEx is attempting to take the clubhouse into the board room. The company is running ads for the FedEx Cup in non-golf-centric magazines like Business Week, Forbes and Fortune, and Demsky indicated that it is a conscious effort to attract a new awareness for the playoff system. Demsky: “This is a very unique opportunity for us — to take this sponsorship and the sport and communicate our business message, using the golf theme, in those channels where the PGA Tour traditionally hasn’t been.”

MAKING THE PUBLIC AWARE: Convincing the public to pay attention to a playoff system may prove to be a difficult task. Pro golf has long been centered around the four major tournaments, and outside of weekends when Tiger Woods is in contention or special events like the Ryder Cup, the sport has traditionally had trouble getting the casual fan to tune in. Demsky said, “You’re going to see a lot of effort from FedEx and the PGA Tour to remind the fans, ‘Hey, this year’s different. There’s a playoff structure in place.’” With most fans unaware of how the new scoring system works, Pickett Advertising Exec Creative Dir Bob Dorfman said, “I'd suggest a weekly Monday ad in USA Today displaying the Cup schedule, rules and current standings, along with commercials starring Tiger, Phil, Sergio, John Daly and other top players promising their full and enthusiastic participation in the Cup playoff.”

PLAYOFFS PART OF SPORTING FABRIC: While noting the majors are “always going to be an important part of golf,” Demsky said the creation of the Chase for the Nextel Cup in NASCAR has paved the way for a similar configuration on the Tour. Demsky: “The American fan understands the concept of a playoff across all sports. This concept of win-or-go-home is something that, because the fan is already familiar with it, we think is going to translate quite easily into golf.” ESPN.com golf writer Bob Harig said at the start of the season, the interest in the points race may be muted, but he expects it to pick up at the end of the year. Harig: “Here at the beginning, it’s going to be hard to get into it because it is new. But if a guy like Tiger had a so-so year, people could start speculating what he had to do to catch up and win the Cup.”

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