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Events and Attractions

Organization seeks simplified, ‘deeper partnerships’

Tourney patrons get a close-up look at Mercedes-Benz vehicles at a showroom along the 17th hole.
Photo by: MERCEDES-BENZ
While wining and dining partners inside the clubhouse of venerable Baltusrol Golf Club during last week’s PGA Championship, PGA of America executives were working ahead — looking to close a new top-level sponsorship that would include the PGA Championship and the Ryder Cup.

Kevin Ring, chief revenue officer for the PGA of America, which runs the Ryder Cup in the United States in addition to the year’s fourth major, wouldn’t disclose specifics, but he said a deal with a company in the energy category is in the works. He also said the deal is expected to be announced before the start of the Ryder Cup in late September.

The PGA of America currently has three top-tier sponsors, which it calls its patron-level partners: Samsung, Mercedes-Benz and Omega. Those companies are on board with sponsorships valued at seven figures annually. Additionally, Standard Life Investments has a deal in place for the Ryder Cup as a worldwide partner of that event.

The expected new deal, Ring said, will further reflect a revamped sponsorship approach at the PGA of America, which last year retained SJX Partners to help sales. In addition to the three top-tier deals, the PGA of America has five official partners — Chase, Club Car, National Car Rental, KitchenAid and Polo Ralph Lauren — and counts 26 licensee deals.

PGA of America Chief Commercial Officer Jeff Price said the organization is aiming to reduce its number of overall sponsors but offer more integration to those on board across the PGA of America — from the Ryder Cup and the PGA Championship to the 41 PGA sections around the country.

“We are trying to simplify and create deeper partnerships,” Price said. “We are looking for unique ways that we have not utilized in the past. We are looking at ways we can work with our members, work with our sections and be associated with our championships to make sure it all fits.”

DRIVE FOR GLORY: Only the PGA of America’s patron-level partners (Mercedes-Benz, Samsung and Omega) get on-course branding rights at the PGA Championship. That’s part of the payoff of their top-tier deals: getting an exclusive weeklong showcase for their brands. For Mercedes-Benz last week, that meant being able to have a product tent situated along Baltusrol’s 17th fairway where on the Monday of tournament week there was an hourlong appearance by company endorser Rickie Fowler. Fans lined up inside the tent to get a glimpse of Fowler, who was filming content to be uploaded to both the company’s and to Fowler’s social media channels. The tent also offered a digital kiosk that let fans post their own content on social media.

Mercedes-Benz hopes to extend its brand message beyond the week of the PGA Championship.
Photo by: MERCEDES-BENZ
It’s part of the company’s aggressive digital marketing strategy within golf to stay relevant far beyond the week of the tournament.

“The biggest challenge is the amount of time to the tell the story and connect the brand with fans 365 days a year,” said Monique Harrison, department head of brand experience marketing for Mercedes-Benz, which is also a Masters sponsor.

In addition to the social media elements, Mercedes-Benz’s brand experience at the PGA Championship offered fans a putting contest and a display of cars ranging from the $60,000 E Class model to the $175,000 S Class.

Harrison wouldn’t say how the company’s investment in the PGA Championship drives sales.

Mercedes-Benz’s patron-level deal ends after 2017, while Samsung’s deal ends after this year. Omega’s deal runs through 2022.

MERCHANDISE MATTERS: Some 200,000 fans were expected to pass through Baltusrol’s gates, the majority of whom at some point during the week were expected to visit the massive, 39,000-square-foot merchandise tent at the event.

Upon entering, shoppers immediately were greeted by a life-size Ryder Cup uniform display as part of the PGA of America’s Ryder Cup uniform soft launch. But it wasn’t anything from the new Ryder Cup product line that was expected be the top-selling item. Instead, fans were projected to purchase at least 60,000 hats emblazoned with the PGA Championship logo to lead sales. With a minimum price of $25 per hat, the PGA of America would generate at least $1.5 million in hat sales alone as part of an expected 15 percent
increase in overall merchandise sales compared with last year, according to Mike Quirk, senior director of merchandising and licensing at the PGA of America.

The most expensive item in the merchandise tent: a $525 painting of the 18th hole at Baltusrol.

So who buys the art?

“We will sell one to two paintings, with the club or a member buying them,” Quirk said.

The least expensive item: a $2 ball marker.

TRAVELING TROPHY: The PGA of America has created its first Ryder Cup Trophy Tour that will take the trophy on the road to some 24 stops in 15 cities beginning Aug. 29 and running through Sept. 23, just before the Ryder Cup tees off at Hazeltine National Golf Club in Chaska, Minn.

The tour is part of the PGA of America’s “We Are 13” promotion around the Ryder Cup. Stops will include the Notre Dame-Texas game in Austin on Sept. 4. The trophy also is expected to be at Wrigley Field for a Chicago Cubs game against Milwaukee and at Target Field in Minneapolis for a Twins game against Detroit.

The PGA of America worked with LeadDog Marketing on the campaign.

“As the biggest event in golf, we tried to understand the strengths and what are things we can do better as we walk up to the Ryder Cup,” Price said. “The goal is to create a sense of anticipation that translates into engagement.”

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