IEG SPONSORSHIP REPORT · tickets and hospitality at the 2012 London Summer Games. More recently,...

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© 2012 IEG, LLC. ALL RIGHTS RESERVED. 1 WHO DOES WHAT HOTEL CHAINS CHECK INTO NEW SPONSORSHIPS Hotel chains double down on sponsorship to drive new business and engage consumers outside the hotel environment. Rising occupancy rates, the growing popularity of consumer loyalty programs and new hotels in the U.S., Asia, Middle East and other markets are driving a groundswell of new deals around the world, bringing the category back to life after taking a hit a few years ago. Those include Starwood Hotels & Resorts Worldwide, Inc. and the Mercedes AMG Petronas Formula One team; InterContinental Hotels Group and the LPGA, and Marriott International, Inc. and the Barclays Center, home to the NBA Brooklyn Nets. More recently, IHG last month announced a one-year partnership with the East Coast Hockey League, a deal that affords status as the league’s preferred hotel partner across the company’s various hotel chains. Those deals follow a spate of new ties over the past two years. Those include Marriott and the National Football League and IHG and the PGA Tour, Champions Tour and Web.com Tour. IHG in 2010 extended Crowne Plaza Hotels & Resort’s title of the PGA Tour Crowne Plaza Invitational at Colonial through 2015. Below, IEG SR highlights the three primary hot buttons in the hotel category: Drive bookings. To no surprise, hotel companies use sponsorship to gain new and incremental business. That includes business from fans and other frequent travelers as well as sports teams and other sponsored properties. WWW.IEGSR.COM IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING NOVEMBER 12, 2012 HOTELS BY NUMBER OF DEALS ©2012 IEG, LLC. All rights reserved.

Transcript of IEG SPONSORSHIP REPORT · tickets and hospitality at the 2012 London Summer Games. More recently,...

Page 1: IEG SPONSORSHIP REPORT · tickets and hospitality at the 2012 London Summer Games. More recently, Hilton in 2012 inked a two-year tie to USA Volleyball. The USOC partnership affords

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WHO DOES WHAT

HOTEL CHAINS CHECK INTO NEW SPONSORSHIPS Hotel chains double down on sponsorship to drive new business and engage consumers outside the hotel environment.

Rising occupancy rates, the growing popularity of consumer loyalty programs and new hotels in the U.S., Asia, Middle East and other markets are driving a groundswell of new deals around the world, bringing the category back to life after taking a hit a few years ago.

Those include Starwood Hotels & Resorts Worldwide, Inc. and the Mercedes AMG Petronas Formula One team; InterContinental Hotels Group and the LPGA, and Marriott International, Inc. and the Barclays Center, home to the NBA Brooklyn Nets.

More recently, IHG last month announced a one-year partnership with the East Coast Hockey League, a deal that affords status as the league’s preferred hotel partner across the company’s various hotel chains.

Those deals follow a spate of new ties over the past two years. Those include Marriott and the National Football League and IHG and the PGA Tour, Champions Tour and Web.com Tour.

IHG in 2010 extended Crowne Plaza Hotels & Resort’s title of the PGA Tour Crowne Plaza Invitational at Colonial through 2015.

Below, IEG SR highlights the three primary hot buttons in the hotel category:

Drive bookings. To no surprise, hotel companies use sponsorship to gain new and incremental business. That includes business from fans and other frequent travelers as well as sports teams and other sponsored properties.

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HOTELS BY NUMBER OF DEALS

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Hotels drive bookings by offering discount rooms to fans, athletes and other stakeholders. For example, IHG activates the ECHL with a special portal that ECHL teams and coaches can use to book discount hotel rooms for out-of-town games and recruitment initiatives.

“This partnership provides a terrific opportunity to showcase team travel accommodations for the ECHL’s players and officials,” said Doug Dixon, IHG marketing manager, U.S. sales & marketing.

Hotel chains also drive bookings through links on property Web sites. IHG activated USA Cycling—another new partnership in 2012—by posting a link on USACycling.org. IHG sponsors USA Cycling on behalf of the Holiday Inn brand, although NGB members can use the partnership to access exclusive rates at any of the company’s participating hotels.

Other hotel chains bundle discount pricing with other perks. Marriott activates the NFL with an exclusive fan package that includes a $50 discount on a two-night weekend stay and a 15 percent savings on purchases over $100 on www.NFLShop.com.

Engage frequent customers. Hotel chains are increasingly using sponsorship to engage and reward frequent customers. That involves accessing unique, one-of-a-kind experiences for customers enrolled in loyalty programs.

For example, Starwood uses Cirque du Soleil, Live Nation, Penske Racing and other properties to access money can’t buy experiences for members of the Starwood Preferred Guest loyalty program. That includes VIP access to NASCAR races and behind-the-scenes tours of Penske Racing’s shop in Mooresville, N.C.

Other reward programs include Best Western Rewards, Hilton HHonors and IHG’s Priority Club Rewards.

Support growing brands. Domestic and international expansion is driving new interest in multi-market properties.

Case in point: Starwood partnered with the Mercedes AMG Petronas Formula One team to support its expansion in Abu Dhabi, Singapore and other Middle East and Far East markets, while IHG earlier this year partnered with championship winning BMW driver Joey Hand on behalf of the Crowne Plaza brand.

With more than 400 hotels and 100 in the pipeline, Crowne Plaza bills itself as one of the hotel industry’s fastest-growing brands.

Best WesternBest Western International, Inc.6201 N. 24th Pkway.Phoenix, AR 85016

Glen MacDonell, managing director, strategic partnerships and field marketing 602/957-4200

Targets/Objectives/Key Activations: Not-for-profit membership association focuses sponsorship activity on its long-running partnership with Michael Waltrip and the Michael Waltrip Racing NASCAR team. Best Western—which franchises more than 4,000 hotels around the world and 2,200 in North America—activates the tie with the “Fan Swap” promotion that gives business travelers that chance to swap jobs with Waltrip. The company also uses sponsorship to engage Best Western Rewards members. For example, Best Western leverages its new partnership with Hotels for Heroes by giving BW Rewards members the opportunity to use points to provide free

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hotel accommodations for returning soldiers receiving medical treatment. The company this summer leveraged its partnership with Disney Media Sales and Marketing with a promotion that offered BW Rewards members the opportunity to meet the cast and receive dance lessons from the stars of Shake It Up. Most sponsorships emanate from individual franchises or co-op marketing funds.

Current Deals: Anderson Speedway, Ind.; Caldwell Night Rodeo, Idaho; Central Washington State Fair; Elon University Athletics; Lafayette College Athletics; Make-A-Wish-Foundation; Maryland International Raceway; Michael Waltrip Racing NASCAR team; Portland Rose Festival; Southern Utah University Athletics; Virginia Arts Festival.

Additional Comments: Sponsors annual AAA pet photo contest to promote pet friendly hotels. Touts NASCAR content on www.YouMustBeTrippin.com; Best Western dropped its partnership with NASCAR after the 2009 season.

Hilton Worldwide, Inc.7930 Jones Branch Dr.Mclean, VA 22102

Jeff Diskin, senior vice president, global customer marketing 703/883-1000

Targets/Objectives/Key Activations: With more than 3,900 hotels in over 90 countries, Hilton takes an international approach to sponsorship through its seven-year-old partnership with the U.S. Olympic Committee. The company expanded its Olympic platform in 2011 with a tie to the Chinese Olympic Committee, a partnership that afforded tickets and hospitality at the 2012 London Summer Games. More recently, Hilton in 2012 inked a two-year tie to USA Volleyball. The USOC partnership affords status as the official family of hotels for Team USA; Hilton activates the tie with booking links on NGB web sites. The company also activates sponsorship to support the Hilton HHonors loyalty program. For example, Hilton leverages its long-running partnership with the Grammy Awards by offering customers the opportunity to donate points to the Grammy Foundation. Hilton also leverages the Vodafone McLaren Mercedes Formula One team to access perks for Hilton HHonors members.

Current Deals: Conrad Hotels & Resorts: Tribeca Film Festival. Doubletree: Npower Football League Milton Keynes Dons FC; World TeamTennis. Hilton: Advocare 100 Independence Bowl; AHL Milwaukee Admirals; America’s Baby Cancer Foundation; AT&T Cotton Bowl Classic; Auditorium Theatre, Chicago; Auto Club Speedway; Autozone Liberty Bowl; Bank of America Chicago Marathon; Beef ‘O’ Brady’s Bowl; California Polytechnic State University Athletics; Chick-fil-A Bowl; Chris Evert Raymond James Pro-Celebrity Tennis Classic, Boca Raton, Fla.; Cinequest, the San Jose Film Festival; Cleveland Convention & Visitors Bureau; College of the Holy Cross Athletics; Florida University Athletics; Florida State Fair; Indianapolis Motor Speedway; ING New York City Marathon; Kansas City Power & Light District; Kennesaw State University Athletics; Merriweather Post Pavilion; MLB Chicago White Sox and Tampa Bay Rays; Nashville Symphony; NBA Dallas Mavericks, Memphis Grizzlies and New Orleans Hornets, NFL St. Louis Rams; NHL Anaheim Ducks and St. Louis Blues; OC Marathon, Newport Beach, Calif.; Ohio Natural Gas Taste of Cleveland; Ohio State Fair; Oklahoma City Memorial Marathon; Orange County Fair; Oregon International Airshow; Outback Bowl; Palm Springs International Film Festival; PGA Tour Principal Charity Classic presented by Wells Fargo; Portland Marathon; Portland Rose Festival; Sacramento State University Athletics; Southwest.com Chinese New Year Festival & Parade; St. Jude Country Music Nashville Marathon; Thunder in the Valley Air Show, Columbus, Ga.; TicketCity Bowl; University of California-Irving Athletics; USA Volleyball; USA Water Ski; USA Wrestling; Wolf Trap, Vienna,

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Va.; XL Center, Hartford, Conn. Hilton Garden Inn: Albany Marathon and Half Marathon, Ga. Hilton Honors: Aviva Premiership Rugby; Chinese Olympic Committee; Kellogg’s Tour of Gymnastics Champions; Little League Baseball; Special Olympics; Sundance Film Festival; U.S. Figure Skating; USA Curling; USA Luge; USA Rugby; United States Olympic Committee.

Additional Comments: Hilton has an endorsement deal with swimmer Michael Phelps. The Marketing Arm helps activate USOC partnership. Touts sponsorships and strategic alliances through www.HHonorssponsorships.com.

Intercontinental Hotels GroupInterContinental Hotels Group, Americas3 Ravinia Dr., Suite 100Atlanta, GA 30346

Del Ros, vice president, Americas Sales & Marketing770/604-5000

Targets/Objectives/Key Activations: IHG—which bills itself as the world’s largest hotel company by room count—has significantly expanded its involvement in golf over the last two years. The company in 2010 inked a five-year partnership with the PGA Tour and extended Crowne Plaza’s title of the PGA Tour Crowne Plaza at Colonial through 2015. More recently, IHG this year inked a partnership with the LPGA on behalf of the Crowne Plaza and Holiday Inn Express brands. Crowne Plaza serves as the exclusive hotel of the LPGA, while Holiday Inn Express is the official hotel of the Symetra Tour. Crowne Plaza activates the LPGA by offering players, their families, caddies and LPGA Tour staff a custom portal to book accommodations at IHG properties around the world. IHG this year also inked a new tie to Leeds United A.F.C.

Current Deals: Candlewood Suites: NHRA: NHRA Kalitta Motorsports team. Crowne Plaza: Title: PGA Tour Crowne Plaza Invitational at Colonial, Fort Worth, Texas. Cosponsor: Albuquerque International Balloon Fiesta; ATP Tour/WTA Tour AEGON International, Eastbourne, U.K.; Australia Rugby Union; Columbus Jazz & Rib Fest, Ohio; LPGA; Medtronic Twin Cities Marathon. Holiday Inn: British Swimming; Buc Days, Corpus Christi, Texas; 94.5. Country Stampede presented by Verizon, Manhattan, Kansas; Indiana State University Athletics; Merriweather Post Pavilion; USA Cycling. Holiday Inn Express: Bucknell University Athletics; Delaware State University Athletics; Kennesaw State University Athletics; Lake Erie Speedway; LPGA Symetra Tour; PGA Tour 3M Championship presented by Post-it Products. InterContinental Hotels Group: American Theater Wing’s Tony Awards; Atlanta Pride Festival; Atlanta Symphony Orchestra; Canadian Soccer Assn.; Give Kids the World; IZOD IndyCar Series Lotus HVM Racing; Leeds United A. F.C.; Monterey Bay Aquarium; PGA Tour.

Additional Comments: IHG in 2012 inked an endorsement deal with PGA Tour pro Rickie Fowler on behalf of the Crowne Plaza brand. Candlewood Suites this year extended Kalitta Motorsports through 2014.

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Marriott International, Inc.10400 Fernwood Rd.Bethesda, MD 20817

Janis Milham, vice president and global brand manager, Courtyard by Marriott301/380-3000

Targets/Objectives/Key Activations: The operator and franchisor of more than 3,700 properties in more than 70 counties has increased sponsorship activity on behalf of the Marriott brand. Recent deals include the NFL and the Barclays Center. Marriott this fall also inked a new partnership with the NFL Tampa Bay Buccaneers on behalf of The Renaissance and Ritz-Carlton brands. In Europe, Marriott this year extended and expanded its partnership with the Rugby Football Union for four years; the contract includes title of the Marriott London Sevens and official partner status of England Rugby.

Current Deals: Courtyard by Marriott: Brigham Young University Athletics; Bumbershoot: Seattle’s Music & Arts Festival; Carlsbad 5000; Cooper River Bridge Run; Experience Music Project; Florida State Fair; National Football League. Fairfield Inn & Suites: Florida A&M University Athletics; National Aquarium in Baltimore; PGA Tour ACE Group Classic. Marriott: Adrienne Arsht Center for Performing Arts; AIDS Walk San Francisco; American Cancer Society; American Express presents Downtown NYC River to River Festival; Atlanta Ballet; Barclays Center; Big Sur International Marathon; Brooklyn Book Festival; Broward Center for the Performing Arts; California Mid State Fair; Chicago International Film Festival; Children’s Miracle Network; Chris Evert Raymond James Celebrity Tennis Classic, Boca Raton, Fla.; Coconut Grove Arts Festival, Fla.; Colorado State Fair; Colorado State University Athletics; Columbia Museum of Art, S.C.; Detroit Jazz Festival; Grand Prix of Baltimore presented by SRT; MassMutual Center, Springfield, Mass.; MLS Chivas USA and Los Angeles Galaxy; NBA Denver Nuggets; NFL Panthers; Rugby Football Union; USA Football; USA Swimming; Utah Arts Festival; Valero Alamo Bowl; Vectren Dayton Air Show presented by Kroger; Virginia Arts Festival. Marriott Residence Inn: Alliance Theatre Company, Atlanta; Kennesaw State University Athletics. Multibrand: PGA Tour Allianz Championship presented by Insperity; NFL Tampa Bay Buccaneers; Sonoma Raceway; Xterra Trail Run Series. Renaissance Hotels: Atlanta Motor Speedway; ATP Tour Farmers Classic presented by Mercedes-Benz; Beef ‘O’ Brady’s St. Petersburg Bowl; Broadway in Chicago; Capital Pride, Washington, D.C.; Fort Worth Symphony Orchestra; Institute of Contemporary Art; Iowa State Fair; IZOD IndyCar Series Honda Grand Prix of St. Petersburg; Juvenile Diabetes Research Foundation International; PGA Tour Franklin Templeton Shootout; Wildfire Arts & Music Festival, Richardson, Texas. Ritz Carlton: Amelia Island Concours d’Elegance Foundation; Boston Ballet; Dallas Symphony Orchestra; NHL Los Angeles Kings; World Golf Championships, Accenture Match Play Championship.

Additional Comments: Marriott sponsors the Barclays Center on behalf of the New York Marriott at the Brooklyn Bridge; the hotel leverages the tie by hosting basketball teams, concert goers and others who attend, play and perform at the arena.

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Starwood Hotels & Resorts Worldwide, Inc.One StarpointStanford, CT 06902

Paulo Peno, vice president, global partnerships 203/964-6000

Targets/Objectives/Key Activations: Starwood—which operates more than 1,000 properties in more than 100 countries—uses sponsorship to accomplish one primary goal: access unique experiences for its Starwood Preferred Guest Loyalty program. The company is placing more focus on global properties to support its international expansion. For example, Starwood this year partnered with the Mercedes AMG Petronas Formula One team to build its presence in Abu Dhabi, Singapore and other growing markets.

Current Deals: Aloft: Live in the Vineyard, Napa, Calif. Starwood Preferred Guest: Cirque du Soleil; Live Nation; Mercedes AMG Petronas Formula One team; Penske Racing. Four Points Sheraton: Loyola University Maryland Athletics. Sheraton: BBVA Compass Bowl; Boston Pride; California International Marathon; Canadian National Exposition; Chicago Auto Show; Delaware County Fair; Delaware State University Athletics; Fashion Week Montreal; FC Bayern Munchen; Fiesta San Antonio; Hong Kong Dragon Boat Festival in New York; ING New York City Marathon; Keep Austin Beautiful; Mercedes Marathon and Half Marathon, Birmingham, Ala.; Merriweather Post Pavilion; National Aquarium in Baltimore; NBA Phoenix Suns; New Orleans Jazz & Heritage Festival presented by Shell; Oklahoma City Memorial Marathon; Orlando Philharmonic Orchestra. Westin: Beef ‘O’ Bradys St. Petersburg Bowl; Belk Bowl; Columbus Arts Festival presented by Time Warner Cable; NFL Houston Texans; OneAmerica 500 Festival Mini-Marathon, Indianapolis; Opera Colorado; Ottawa Fashion Week; Outback Bowl; PGA Tour CIMB Classic, Kuala Lumpur, Malaysia; USTA US Open. W Hotels: ATP Tour/WTA Tour Citi Open; BNP Paribas Taste of Tennis; Colorado Ballet; Detroit Institute of Arts; Geffen Playhouse, Westwood, Calif.; Heritage of Pride, New York City; MLB New York Red Bulls.

Additional Comments: Spearheads sponsorship out of its corporate office in conjunction with local offices.

YEAR BILLION IN SALES REVENUE PER AVAILABLE ROOM

AVERAGE OCCUPANCY RATE

2011 $137.5 $61.05 60%

2010 $127.7 $56.47 57.6%

2009 $127.2 $53.5 54.7%

2008 $140.6 $64.37 60.4%

2007 $139.4 $65.52 63.1%

Source: American Hotel & Lodging Assn.

LODGING INDUSTRY PROFILE

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SPONSOR PROFILE

INSIDE STARWOOD’S SPONSORSHIP STRATEGY Hotel giant uses sponsorship to support international footprint and access one-of-kind experiences for loyalty program members.

While it may not have a no vacancy sign, Starwood Hotels & Resorts Worldwide, Inc.’s sponsorship portfolio is rapidly approaching full capacity.

The hotel company is expanding its portfolio to support its international expansion and gain unique, one-of-a-kind experiences for its Starwood Preferred Guest loyalty program.

Starwood—which operates more than 1,000 properties under the Sheraton, Westin, St. Regis and six other brand names—has recently expanded its presence in motorsports.

The company earlier this year inked official hotel status with two teams: the Mercedes AMG Petronas Formula One team and Penske Racing, a team that competes in the NASCAR and the IZOD IndyCar Series.

IEG SR spoke with Paulo Pena, Starwood’s vice president of global partnerships, about the company’s growing focus on multinational properties, how it uses sponsorship to build relations with SPG members and other topics.

Below are edited excerpts from the conversation.

IEG SR: Starwood has partnerships with sports, arts and entertainment organizations ranging from Cirque du Soleil to Live Nation and Penske Racing. What is the primary driver behind those relationships?

Pena: The primary purpose of our sponsorship activity is to find unique access and experiences for Starwood Preferred Guest members.

The majority of our sponsorships are centered around the SPG program, and we work with our various partners to find unique and innovative experiences for SPG members.

IEG SR: Starwood sponsors some properties on behalf of the SPG brand and others on behalf of individual hotel brands. How does that break down?

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Pena: We look for partners that can provide some type of experiential experience, and we combine that with an individual brand. We typically use sponsorship for the benefit of our SPG program and one or more of our hotel brands.

IEG SR: Can you share an example?

Pena: We sponsor Live Nation, which is at the core an SPG sponsorship. But it also provides digital media opportunities for our various brands. We also do individual programs or performances that may have a branding opportunity.

For example, we’re running a program this year that involves acoustic performances by various artists at our nine hotel brands around the world. Each of those events is a SPG member event, but we take the opportunity to bring to life branding elements at each event.

We just completed a performance by Natasha Bedingfield at the Grosvenor House in Dubai, which is one of our Luxury Collection Hotels. Last week Rob Garza from Thievery Corporation performed at the W hotel in Santiago, Chile, and later in the year Denise Ho will perform at the Sheraton Macau.

We activate Live Nation and other partnerships to offer other experiences for SPG members. That includes drum lessons with Nickelback, a tennis clinic with Andre Agassi at the U.S. Open and the opportunity to play golf with a professional golfer.

IEG SR: Do Starwood’s nine brands each have their own sponsorship platform, such as Westin and tennis?

Pena: I wouldn’t say there is a platform for each individual brand. We utilize sponsorship assets with brands that make the most sense. Westin currently has an association with the U.S. Open of tennis, but the hotel also has some branding exposure at various golf events.

St. Regis will be the brand we work on with the America’s Cup next year. Brand involvement varies from event to event. We look at each property, its fan base and on-site activation opportunities, and we marry that against the brand that makes the most sense.

IEG SR: Starwood this year expanded its presence in the motorsports space with new deals with Penske Racing

and the Mercedes AMG Petronas Formula One Team. What is the driver behind those partnerships?

Pena: We kicked off our motorsports program with Mercedes AMG Petronas. This is our first year working with Mercedes. The partnership works well because we are a global property and most of the races take place in our major markets. And obviously, Mercedes is a great brand to be associated with.

IEG SR: Starwood could have partnered with Formula One last year or next year. Why now? Were there any particular factors that promoted the partnership?

Pena: The opportunity came to us at the right time. We’re expanding globally at a rapid pace, and the markets that Formula One goes through are some of our most important markets, such as Abu Dhabi, Shanghai and Singapore.

Formula One has a lifestyle around it that suits us well. We haven’t done a lot of motorsports in the U.S., and the Penske relationship felt like a good opportunity to provide some unique experiences.

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IEG SR: Do you use sponsorship from a B2B perspective?

Pena: We try to utilize sponsorship assets across multiple stakeholders. From a B2B perspective that includes hotel owners, developers and corporate customers.

IEG SR: Starwood has been involved in sponsorship for many years. Has your strategy changed over the years, and if so, how?

Pena: Our strategy hasn’t really changed, but it has evolved. It has become centered on experiences for SPG members outside of hotel stays. Our strategy also has become more global in nature. We look for opportunities that we can leverage in multiple markets, such as Live Nation, Cirque du Soleil and Formula One.

IEG SR: Unlike some other companies, Starwood takes a centralized approach to sponsorship by managing both global and regional partnerships out of its corporate office. Tell me about that.

Pena: We drive our global strategy from the center, but we work closely with divisional operations and marketing teams to activate at the local level. We always engage our international divisional teams in the initial thinking around a sponsorship so that we know what they think going in.

Once we’re in, we work closely with our divisional teams to activate at the local level. But we do have a corporate global team that thinks through the strategy and maintains a certain element of control.

IEG SR: Where do you see the sponsorship industry going forward?

Pena: I see deeper relationships between properties and sponsors. That includes integrated partnerships that include B2B activity between the two organizations. Properties and sponsors need to think about each other’s business and how they can benefit each other.

Source Starwood Hotels & Resorts Worldwide, Inc., Tel: 203/964-6000

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STRATEGY

QUICK HITS: SPONSORS DISCUSS LEAVING THEIR COMFORT ZONE Sponsors are open to nontraditional properties, but relationships must be organic and support brand values.

How do sponsors approach sponsorships that involve taking a risk? What properties would they sponsor if they could experiment with something untried?

IEG SR asked those questions to sponsorship decision-makers at three companies: Advance Auto Parts, Inc. (“Quick Hits: Four Sponsor Pet Peeves” 08.06.12), The Clorox Co. (“Kingsford Cooks Up New Sponsorships” 03.19.2012) and Farmers Insurance (“Who Does What: Auto And Home Insurers” 10.01.12). Below are edited excerpts of their responses.

John Vaughn, manager, sponsorship and events, Advance Auto Parts “If I were going to pursue a risky sponsorship it would probably be a sport like MMA or boxing. I say risky because MMA and boxing, though great sports, don’t align with our core values or brand personality. However, both MMA and boxing index really well against some of our better product categories and the auto parts category in general.

It ultimately comes down to making specific sponsorship decisions between a lot of great options in the marketplace. They key for us is making sure the property is a fit from both a brand value and business alignment perspective.”

Drew McGowan, senior group manager, integrated media and entertainment, The Clorox Co. “There’s a tremendous difference between a risky proposition and a calculated risk. When we first look at a property, we consider insights surrounding our consumer. What will they think? How will they be engaged? What are our objectives? Can we get the right level of ROI to make this work? Consumers want honesty, transparency and an organic fit, otherwise, they’ll see right through it. We want to engage consumers and stay connected to them, especially surrounding their passions.

Since all sponsorships have some level of risk, we need to feel really good about the partner and the team that we’ll be working with to take that leap of faith. If it’s a great strategic fit and the team is solid, then taking on a sponsorship that’s risky can pay off.

For instance, music partnerships are filled with risk but we’ve been lucky to work with the right people. Our Kingsford brand has partnered with artists such as Zac Brown Band, Keith Urban and the Country Throwdown Tour, and our

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Brita brand has partnered with the Dave Matthews Band, Jason Mraz and the Campus Consciousness Tour. We recently sponsored the first-ever H20 Festival with Univision. There were tons of things that could have gone wrong. There were bumps along the way in every instance. But in the end, they were great relationships that paid dividends for us.

Another risky proposition actually occurred last weekend. We created the inaugural Kingsford Invitational where the top eight barbecue teams from across the country went head-to-head in a winner-take-all $50,000 competition. We filmed the event for a one-hour special that will air on Destination America this March. If hosting an outdoor event in Belle, Mo. in the middle of November isn’t risky, I don’t know what is.

Our Brita brand has sponsored of the Sundance Film Festival for the past five years. We help the festival from a sustainability standpoint by cutting out the need for 50,000 disposable bottles of water each year.

While that doesn’t seem risky on the surface, it was at the beginning. We had never tried to take an event this large bottle-water free. If we ran into problems, we would have had a lot of explaining to do and the PR wouldn’t have been pretty. But we dealt with the challenges and the cold weather and we’ll be back again in January.

And how do we increase the risk-reward? We talk about music at the film festival. Certainly a big risk but it worked well for us last year and we have that same strategy this time around.”

Charles Browning, head of sponsorship and corporate giving, Farmers Insurance“I think of the question a little differently: What we consider doing that might not seem so obvious.

In such a competitive marketplace we’re always looking for places or opportunities where our competitors are not. In other words, we’re always looking for the white space.

I will always entertain ideas that are innovative as long as they are not damaging to the brand or confusing to consumers.

When reviewing a proposal or identifying an opportunity we look to identify a fan base that might not know us but offers a great platform to tell our story or build awareness of our brand. We believe you should look at those areas and consider any opportunities that will allow for that.

We always look at every proposal or pitch that is sent. Some of them are reviewed fairly quickly, some are discussed and some we render a point of view from an agency or consultant. But the bottom line is we never want to ignore them. You never know where the next hidden jewel might lie.

Sources Advance Auto Parts, Inc., Tel: 540/362-4911 The Clorox Co., Tel: 510/271-7000 Farmers Insurance, Tel: 323/932-3200

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ABOUT IEGIEG leads the way in sponsorship solutions. With over

30 years providing insights, evaluation, and guidance,

our teams bring unparalleled perspective and proven

methodology to every challenge.

We partner with top brands and properties to create fresh

strategies, evaluate opportunities and maximize results.

Our clients rise above competitors, meaningfully engage

audiences and achieve lasting impact.

A unit of WPP’s GroupM, IEG is connected to specialty

sibling communications companies in media, digital and

activation. GroupM is the leading global media investment

management operation that also serves as parent company

to WPP media agencies including Maxus, MEC, MediaCom,

and Mindshare.

For more information about IEG and the sponsorship

industry, please visit www.sponsorship.com or call

800/834-4850 (outside the U.S. and Canada, 312/944-1727).

WWW. SPONSORSHIP.COM

INSIGHTSEVALUATION GUIDANCEIEG LEADS THE WAY IN SPONSORSHIP ANALYSIS, INSIGHT, VALUATION & MEASUREMENT