For Building Ties to a Sport, a Platform Worth Every Penny
Nike
and Callaway. Bridgestone and Buick. Lexus and PricewaterhouseCoopers.
But
during the last three years, FedEx has tried harder than almost any company
to stand out. Since 2007, the package delivery company has spent $44 million
a year to sponsor the FedEx Cup, a full season of PGA Tour events
culminating with a four-tournament playoff series to determine the top
men’s golfer.
In
many ways, the sponsorship is similar to the NASCAR Sprint Cup or the Sony
Ericsson WTA Tour: an attempt by a major corporation to become one with an
entire sport, not just a player or a single event.
But
in other ways, the FedEx Cup is different. Golf is a more understated sport
than Nascar or tennis in that it tends to keep sponsors’ messages muted or
at arm’s length. Television commercials are low key, signage is more
discreet and logos are modest.
That
does not seem to bother FedEx, whose first foray into sports marketing was
in 1986 with the St. Jude Classic, a golf tournament in Memphis. Like other
major golf sponsors, FedEx is trying to reach executives and other corporate
decision makers, hoping they will choose FedEx over U.P.S. or the Postal
Service. The most avid golf fans, it turns out, include those executives.
The
PGA Tour has golfers from around the world and its events are broadcast
worldwide, both of which attracted FedEx.
“This
appealed to us because FedEx is a global company, and we needed to
communicate to our customers on a global stage,” said Kevin Demsky, the
director of sponsorship marketing at FedEx, whose six-year deal with the PGA
Tour runs through 2012.
Demsky
said FedEx earned positive return on its investment, but he declined to be
more specific. Large corporations typically generate three or more dollars
in new sales for every dollar spent sponsoring sporting events, according to
industry experts.
For
a company like FedEx, which is recognized by executives and consumers,
sponsoring a long-running event makes sense because it provides wide,
extended exposure.
“It’s
a way to get your name out there on a consistent basis without having to
latch on to a particular player who might get in trouble, or a single event
that Tiger might not show up to,” said Bob Dorfman, who writes a
newsletter that analyzes athlete endorsements. “It’s insurance you’re
going to get a lot of brand value for your dollar.”
FedEx’s
affiliation with the PGA Tour, though, is not as well known as Sprint’s
relationship with Nascar. Sprint is embedded in the fabric of Nascar, which
relies on the company to help run its events, including news conferences
before and after races. Sprint has also designed audio and video
applications for cellphones to help fans follow the races.
“We’ve
tried to make it much more than banners, tickets and hospitality,” said
Dave Mellin, a Sprint spokesman.
During
live telecasts and replays of Nascar events last year, Sprint’s name or
logo was shown on screen for a total of 90 hours 6 minutes 21 seconds,
according to Joyce Julius & Associates, a sports marketing research firm. The
Sprint name was mentioned 1,476 times during those broadcasts — more than
twice as often as the next brand, Toyota.
“Nascar
is the top dog in terms of exposure,” said Eric Wright, a vice president
at Joyce Julius, who added that the tally did not include Sprint’s name
being mentioned on highlight programs or news broadcasts.
Still,
FedEx is getting its money’s worth because the demographic of golf fans
matches the audience it wants to reach. FedEx also gets to be associated
with winning players, even though it does not have an endorsement deal with
a player.
And
in a recession, when other companies are backing out of sports sponsorships,
FedEx is sending a message...