Group Created with Sketch.
Volume 24 No. 116

Sponsorships Advertising Marketing

     CNN's Casey Wayans reported on the high frequency of
advertising during sports broadcasts through non-traditional
ways.  Sponsorships such as the "Prudential at the Half," and the
"McDonalds Game Break," have become more prevalent. Dutch Boy
Paints, which sponsors the "In the Paint" highlight package on
NBA broadcasts, claims sales have increased 31% since starting
the deal in 1992.  Dutch Boy President Scott King:  "Marketing
today is a lot more than just running TV commercials.  When
people think of in the paint, they think of Dutch Boy, so we're
looking at awareness, and of course, sales."  MCI, which sponsors
the "Long Distance Home Run," aims their promotions at consumers
who "tune out" commercials.  Scott Ross, President of MCI
Business Markets:  "What we would like to do through the long-
distance home run spots, is once again promote the MCI brand
image and tie it to a sporting event or activity that the viewer
can focus in on."  Wayans reported that these sponsorships are
cheaper than buying and producing ads.  Dean Barrett, VP/Sports
Promotion for McDonalds:  "This allows us a unique way of
bringing the NFL alive.  It really is not an incremental cost to
the advertiser, it's really part of the overall program."
Wayans: "The bottom line is these spots are cost effective"
("Moneyline," CNN, 6/21).

     A federal judge granted Taylor Made Golf a temporary
restraining order shutting down sales of copies of its Burner
Bubble metalwoods by OH-based Gary's Custom Golf (Taylor
Made)....George Foreman and Mile Record Holder Steve Scott will
be featured at the Sunoco Welcome America Event in Philadelphia
from June 24-July 4.  Kicking off festivities will be the Wawa
Market Street Mile on June 27, featuring Scott (Sunoco)....Sega
of America has awarded media buying and the print part of its ad
account to McCann-Erickson Worldwide, San Francisco, from BBDO
Worldwide, Los Angeles (AD AGE ONLINE, 6/22)....The Sponsorship
Group of London has acquired 70% of Championship Group, an
Atlanta-based sales promotion/sports marketing agency.
Championship Group will operate its U.S. business independently,
retaining its name and personnel (AD AGE ONLINE, 6/22).... USA
TODAY looks at "Fashion at Wimbledon," the event that calls for
players to wear predominately white apparel.  Agassi is
reportedly set to wear all-white Nike oversized shirt, shorts,
and a white bandana (USA TODAY, 6/22).

     MasterCard Int'l has reportedly signed on as title sponsor
of the PGA Grand Slam golf tournament, which will take place in
Kauai on November 7-8.  MasterCard President & CEO H. Eugene
Lockhart called the deal "part of an integrated global
sponsorship and promotions strategy."  Part of the plan includes
a "golf-themed cardholder sweepstakes, an ongoing hole-in-one
award program at 10,000 pro shops and an interactive mall tour
called 'Tour de Gold' that will visit 20 top markets" (AD AGE
ONLINE, 6/22).

     Quaker Oats CEO Bill Smithburg is leading Quaker "into the
rowdiest marketing war of many summers, taking on the beverage
brutes Coca-Cola and PepsiCo in two categories," sports drinks
and natural beverages, according to a piece in the current
FORTUNE.  FORTUNE's Patricia Sellers writes that Smithburg
deserves credit for keeping Gatorade on "top of its game," as the
brand's visibility in pro leagues like the NBA is "unparalleled."
Sales hit $1.2B in '94, but Coke and Pepsi are "applying a full-
court press" with All-Sport and PowerAde.  Pepsi is increasing
All-Sport's ad budget by 40%, and, since '94, Gatorade's market
share has dropped three points to 81%.  Michael Jordan is "trying
to help Gatorade rebound," but he is "being double-teamed by"
Shaquille O'Neal and Ken Griffey, Jr., who pitch for All-Sport.
Smithburg says Gatorade, available in 27 countries, can remain
No. 1 worldwide (FORTUNE, 7/10 issue).
          MARKET SOURS ON SNAPPLE?  Shares of Quaker Oats fell in
     trading yesterday after the company warned that the
     acquisition of Snapple soft drinks "had been failing to live
     up to expectations."  Quaker told analysts that sales of its
     Snapple iced tea and juice drink brands are running 15%
     behind last year (FINANCIAL TIMES, 6/22).  In the current
     FINANCIAL WORLD, Jason Vogel asks, "Snapple shareholders
     made a killing selling out to Quaker.  What about Quaker
     shareholders" (FINANCIAL WORLD, 7/4 issue).  FORTUNE also
     notes that many feel Quaker overpaid for Snapple and that
     the brand "has a crowd of competition" (FORTUNE, 7/10).
          COKE FEELS LIFE:  Coca-Cola is expected to post "strong
     second quarter earnings fueled by continued double-digit
     growth internationally and healthy U.S. results," according
     to Chris Roush of the ATLANTA CONSTITUTION.  Overseas case
     sales are expected to increase 11-12%, while domestic sales
     could rise as much as 6% (ATLANTA CONSTITUTION, 6/22).

     Last week Topps Co. announced that its sales dropped nearly
30% in the first quarter (ending May 27) due to the fallout from
the MLB players strike.  But, according to Miriam Leuchter of
CRAIN'S NEW YORK BUSINESS, baseball isn't Topps' only problem.
The stock "has been in the doldrums since the bottom fell out of
the once-hot sports card market a few years ago."  But analysts
and investors "see a number of good reasons to collect stock in
Topps."  One is the "growing strength of the confectionery
business," as sales of Bazooka gum, lollipops and taffey account
for nearly 1/3 of their total sales.  Another is the planned $50M
purchase of Merlin Publishing, a "fast-growing, highly
profitable" British company that has the 2nd largest collectible
sticker and album business in Europe (CRAIN'S NEW YORK, 6/19

     The Red Wings' Sergei Fedorov will soon be one of Nike's
national spokespersons, according to Rani Cher of the DETROIT
FREE PRESS.  Fedorov will be involved in promoting items for
Nike's new division, Canstar Sports, which owns both the Bauer
and Cooper brands.  Although "few hockey players" have the kind
of national exposure Fedorov's deal will bring, marketers "are
jumping at the chance to be involved" with hockey largely because
of its "huge following among young men, age 18 to 34."  Fox
Sports Exec VP/ Marketing Tracy Dolgin sees a "window of
opportunity" with the NHL "that has never been seen before."
Keith Helfrich, and ad exec for Dodge, says the NHL is "up and
coming":  "Now it is more regional, but it promises to become a
national sport."  But Cher writes, although hockey "is catching
on, the rub off has not made it to Madison Avenue," as the top
players have not generated the endorsement deals of stars from
other leagues (DETROIT FREE PRESS, 6/22).