July 19, 2010 800/834-4850 | · July 19, 2010 800/834-4850 ... senior vice president of marketing and sales 602/957-4200 Strategy: ... sponsorship with the project Aloft Star Facebook-centric

© 2010 IEG, LLC. All rights reserved.

IEG SponSorShIp rEport

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July 19, 2010 800/834-4850 | www.IEGSR.com

Who DoES WhAt

Hotel Chains Make Room For SponsorshipsCorporate deals look to earn business, position brands; local deals have similar goals but conducted through franchisees/operators.

With business and leisure travelers continuing to scrimp on travel spending, major hotel chains are using sponsorship to try to drive new business and retain existing customers.

According to market research firm STR, U.S. hotel occupancy is expected to be flat in 2010, while average daily rates decline 3.2 percent to $94.39 and revenue per available room slips 3.2 percent to $51.99.

Str expects the hotel industry to gain momentum in the second half of the year, leading to a turnaround in 2011.

As in years past, hotel chains continue to use sponsorship to attract travelers by securing property-related business, most often through discounts on stays offered to property employees, members, event attendees, athletes and other stakeholders.

More recently, hoteliers are increasingly using the medium to build customer loyalty and retention. For example, Starwood hotels & resorts Worldwide, Inc. this year expanded its year-old partnership with Live nation (“Live nation Charts new territory Selling Digital Media And Emotion,” 4/19/10) to create on tour with SpG, a global program that offers Starwood preferred Guest loyalty club members the opportunity to redeem Starpoints for concerts, discounts at house of Blues restaurants and other music-related perks.

Another recent trend: Sponsorship’s on behalf of major chains’ niche brands. Case in point: Starwood this year partnered with napa Valley’s Live in the Vineyard music, wine and food event on behalf of its two-year-old Aloft urban-boutique-influenced hotel chain.

Best WesternBest Western Int’l, Inc.6201 n. 24th pkwy. phoenix, AZ 85016

Dorthy Dowling, senior vice president of marketing and sales 602/957-4200

Strategy: Mid-price chain focuses sponsorship activity on seven-year-old partnership with Michael Waltrip racing, a tie it



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expanded this year with title of a Sprint Cup Series entry driven by David reutimann. Best Western activated the sponsorship with the tweet Crew team—three fans chosen through a nationwide search—that provided race updates via twitter at the April race at phoenix Int’l raceway. the hotel chain uses the sponsorship to drive room bookings and membership in its Speed Rewards loyalty program, a service it touts through BWRacing.com. The company dropped its official NASCAR partnership after the ’09 season.

Current Deals: Title: Michael Waltrip racing nASCAr Sprint Cup Series team. Cosponsor: Auto Club Speedway, Fontana, Calif.; Daytona Bike Week, Fla.; Maryland Int’l Raceway; Mississippi State University athletics; NBA New Orleans Hornets; Roger Dean Stadium, Jupiter, Fla.; Texas Tech University athletics.

Additional Comments: to drive bookings by families, Best Western is running a promotion around Disney Channel’s original movie Camp Rock 2: The Final Jam Dance Party that dangles a free hotel night and a dance party featuring a star of the film. The hotel chain also is distributing five Camp Rock collectible key cards.

Ascend Collection, Cambria Suites, Clarion, Comfort Inn, Comfort Suites, Econo Lodge, MainStay Suites, Quality, Rodeway Inn, Sleep Inn, Suburban Extended Stay HotelChoice hotels Int’l, Inc. 10750 Columbia pikeSilver Spring, MD 20901

Donald Crawford, director of sports marketing301/592-5000

Strategy: Choice hotels focuses on regional and national properties as a platform to drive incremental room nights and revenue for franchisees, with secondary goals of building brand awareness and positive consumer perception. the company frequently sponsors on behalf of its corporate brand, around which it offers 15 percent discounts on rooms to athletes, families and other stakeholders. Choice also sponsors and/or activates on behalf of individual brands; for example, the company last year used its LpGA partnership to promote Comfort Suites, while Comfort Inn sponsors The Steve Harvey Morning Show syndicated radio program and ancillary activities by the host/comedian. Signed a new partnership in May with the national professional Golf tour.

Current Deals: Corporate/multibrand: LpGA; Midwest Conference; national professional Golf tour presented by Arnold Palmer Golf Management; Northeast Conference; Southeastern Conference; USA Diving; USA Triathlon; USA Track & Field; Xterra triathlete series. Choice Sports Travel (multibrand): American Collegiate hockey Assn.; Big South Conference. Clarion: Maryland Int’l raceway. Comfort Inn: Mid-ohio Sports Car Course. Comfort Suites: nhL Carolina hurricanes; Miami-Dade County Fair; 3M Championship presented by post-It products, pGA tour stop, Blaine, Minn. Quality: Centurytel Center, Bossier City, La.

Additional Comments: Partnered in late ’09 with nonprofit Rebuilding Together on behalf of the Choice Hotels Int’l Foundation; the company has leveraged the tie by providing volunteers for rebuilding projects, including the August 24-29 Fifty for Five event in new orleans. participating franchisees leverage the partnership by offering special rates to volunteers.

Conrad Hotels & Resorts, Doubletree, Embassy Suites, Hampton, Hilton, Hilton Garden Inn, Home2 Suites by Hilton, Homewood Suites by Hilton, Waldorf Astoria Hotels & Resortshilton Worldwide7930 Jones Branch Dr., Suite 1100McLean, VA 22102



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Andrew Flack, vice president, global brand marketing 703/883-1000

Strategy: Changed its name to hilton Worldwide from hilton hotels Corp. and relocated its global headquarters to McLean, Va. from Beverly hills, Calif. last year upon being taken private by owner the Blackstone Group. Focuses sponsorship activity on its partnership with the USOC, a tie it uses to support cultural understanding. Teamed with USOC and cosponsor Adecco Group North America to create Team USA Career Program that provides athletes with career training and job placement assistance. Activates deals with olympic sport national governing bodies by offering discount room rates to members through Team USA Advantage program. Also uses sponsorship to promote Hilton HHonors guest reward program. For example, activates cosponsorship of the Vodafone McLaren Mercedes Formula 1 team by offering hhonors members the opportunity to use points to bid on VIP hospitality packages at five races this year. Also leverages long-running Grammy Awards partnership by offering HHonors members and employees the opportunity to participate in an auction benefiting the Grammy Foundation.

Current Deals: Hilton Family of Hotels: AIDS Walk Los Angeles; USOC; U.S. Figure Skating; Vodafone McLaren Mercedes Formula one team. Doubletree: Autozone Liberty Bowl, Memphis; Gateway Int’l raceway, Madison, Ill.; Sony Ericsson WtA tour L.A. Women’s tennis Championships presented by herbalife. Embassy Suites: Ace Group Classic pGA tour stop, naples, Fla.; Allianz Championship presented by Administaff, Boca raton, Fla. Hilton: Title: hilton theatre, new York City. Cosponsor: Advocare 100 Independence Bowl, Shreveport, La.; Allstate Sugar Bowl, new orleans; At&t Cotton Bowl Classic, Arlington, Texas; Bank of America Chicago Marathon; Chick-fil-A Bowl; Grammy Awards; Nation’s Triathlon, Washington, D.C.; Orange County Fair; USA Judo.

Additional Comments: hilton Worldwide signed endorsement deal this month with LpGA pro Se ri pak. Is expanding use of branded entertainment. For example partnered with Bravo tV’s Top Chef D.C., around which the Washington hilton serves as the central location for the cooking competition and one episode features a hilton executive judge and contestants vying to place the winning dish on hilton restaurant menus. the company touts the tie on hiltontopChef.com. the partnership follows a tie-in in late ’09 with paramount pictures’ Up in the Air; a film that included scenes shot at Hilton properties and use of an hhonors rewards card used by the main character played by George Clooney. hilton leveraged the partnership with a sweepstakes offering one million hhonors points, a trip to the premier and other prizes.

Candlewood Suites, Crowne Plaza, Holiday Inn, Holiday Inn Express, Hotel Indigo, InterContinental, Staybridge Suites InterContinental Hotels Group, Americas3 ravinia Dr., Suite 100Atlanta, GA 30346

Gina LaBarre, vice president, brand delivery, the Americas770/604-5000

Strategy: InterContinental sponsors to build visibility, support communities in which it operates and gain business from sponsored properties. Parent Intercontinental Hotels Group PLC in June announced an official supplier deal with London 2012, a tie it is using to support the $1 billion global relaunch of the Holiday Inn and Holiday Inn Express chains. In the U.S., is using sponsorship to support its hit It Big summer promotion for priority Club rewards program: the program offers gift cards for frequent stays; from April 15 through the end of the year if a club member donates gift cards earned to Susan G. Komen for the Cure, IhG will match the amount (guaranteed minimum donation of $60,000). Also solicited donations on the nonprofit’s behalf at May’s Crowne Plaza Invitational at Colonial.

Current Deals: Corporate: Susan G. Komen For the Cure. Candlewood Suites: native rhythms Festival, Melbourne, Fla.; nhL Carolina Hurricanes; North Carolina Central University athletics. Crowne Plaza: Title: Invitational at Colonial pGA tour stop, Fort Worth, texas. Cosponsor: Bumbershoot: Seattle’s Music & Arts Festival; Florida State Fair; Medtronic twin Cities Marathon;



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Rutgers University athletics; WTT Boston Lobsters. Holiday Inn: Buc Days, Corpus Christi, texas; Colorado State Fair; Major League Baseball; north Dakota State Fair; State Fair of Louisiana; Watkins Glen Int’l raceway. Holiday Inn Express: Lake Erie Speedway. Hotel Indigo: Presenting: Carnival of Glass, Morean Arts Center, St. petersburg, Fla. Cosponsor: Arlington park horseracing season, Arlington heights, Ill.; harvey Milk Festival, Sarasota, Fla.; theater of the Stars, Atlanta.

Additional Comments: Last year extended holiday Inn’s MLB tie through 2011; the company leverages the deal—which confers status as “official partner of MLB road trips”—by offering customers the opportunity to redeem Priority Club Rewards for tickets, merchandise and one-of-kind experiences. Also gives registered guests who stay eight nights at a holiday Inn or holiday Inn Express two tickets to a game through the 2010 regular season.

Aloft, Element, Four Points by Sheraton, Le Meridien, The Luxury Collection, Sheraton, St. Regis, W Hotels, Westin Starwood Hotels & Resorts Worldwide, Inc.1111 Westchester Ave.White plains, nY 10604

Laura Donahue, senior director, partner marketing 914/640-8100

Strategy: Uses sponsorship to build its brands, generate incremental income from sponsored properties, their fans and other stakeholders, and gain perks to offer Starwood preferred Guest loyalty members. Leverages year-old Live nation partnership with on tour with SpG, a global program that gives members the chance to redeem Starpoints for concerts, house of Blues restaurant discounts and other music-related premiums. Uses PGA Tour partnership to offer access to clinics taught by tour professionals, opportunity to play on tpC courses and other perks. Also increasingly is using sponsorship to promote its three select-service hotels: Aloft, Element and Four points by Sheraton. For example, Starwood this year signed presenting status of napa Valley’s Live in the Vineyard music, wine and food event on behalf of two-year-old Aloft. The modern, urban-influenced chain leveraged the sponsorship with the project Aloft Star Facebook-centric promotion that offered musicians the chance to perform at the festival as well as at five Aloft properties. Aloft locations also served as concert venues for Live in the Vineyard artists through the Live at Aloft hotels (LiveatAlofthotels.com) music series. Starwood’s contemporary, business-focused W hotels this year partnered with international design show Design Miami/Basel, around which it titles the Designers of the Future Award.

Current Deals: Corporate/multi-brand: An Evening with Sting featuring the royal philharmonic Concert orchestra presented by Xerox; Conservation Int’l; Live nation; nhL; pGA tour, WnBA. Aloft: Presenting: Live In the Vineyard, napa Valley, Calif. Cosponsor: Cooper river Bridge run, Charleston, S.C. Sheraton: Title: hawaii Bowl, honolulu. Cosponsor: AIDS Walk new York presented by Duane reade; California Int’l Marathon presented by Kaiser permanente, Sacramento; Florida Film Festival, orlando; InG new York City Marathon; Merriweather post pavilion, Columbia, Md.; new orleans Jazz & heritage Festival presented by Shell; papaJohns.com Bowl, Birmingham, Ala. W Hotels: Atp Legg Mason tennis Classic presented by GEICo, Washington, D.C.; Design Miami/Basel; Shoreline Amphitheatre, Mountain View, Calif. Westin: Amica Seattle Marathon; Atlanta Steeplechase; Dunkin’ Donuts Center, Providence, R.I.; WNBA Chicago Sky; World Sailfish Championship, Key West, Fla.

Additional Comments: Sheraton brand dropped nCAA partnership in ’09. Starwood hotels & resorts this year partnered with Conservation Int’l to promote its environmental stewardship; CEO Frits van Paasschen joined the nonprofit’s Environmental Leadership in Business division.

Baymont Inn & Suites, Days Inn, Hawthorne Suites by Wyndham, Howard Johnson, Knights Inn, Microtel Inns & Suites, Ramada, Super 8, Travelodge, Wingate by Wyndham, Wyndham Hotels and Resorts Wyndham Worldwide Corp.22 Sylvan Wayparsippany, nJ 07054



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robin Korman, senior vice president, loyalty marketing and strategic partnerships 973/753-6000

Strategy: With a portfolio of roughly 7,000 franchised hotels, Wyndham uses sponsorship to build its brand, fill hotel rooms and support the positioning of individual chains. For example, the company’s howard Johnson unit signed a new partnership with the harlem Globetrotters in late 2009 to support its Go happy brand campaign; the chain activated the tie with the Give happy Challenge, which encouraged consumers to spread happiness by submitting a video or essay through theGivehappyChallenge.com, with the winners receiving $15,000 and a visit by the Globetrotters. ramada leverages its four-year-old BASS sponsorship by offering 20 percent discounts on hotel stays. “We want BASS members to know that the Ramada brand is just as passionate about providing great service and amenities for a terrific price as they are about bass fishing,” said Kristin Rozewski, Ramada’s director of regional marketing, in a statement. The company frequently leverages ties to offer special perks to customers. For example, Wyndham is activating Cirque du Soleil by offering discount tickets to Cirque’s new York City shows, as well as discount room nights in conjunction with ticket purchase.

Current Deals: Corporate: Title: Wyndham Championship, pGA tour stop, Greensboro, n.C. Baymont: U.S. Youth Soccer Assn., USA Judo. Days Inn: Florida Film Festival, orlando; roger Dean Stadium, Jupiter, Fla. Howard Johnson: harlem Globetrotters. Ramada: BASS; Gateway Int’l Raceway, Madison Ill.; Pacific 10 Conference. Super 8: richard petty Motorsports. Wingate by Wyndham: Presenting: Second Empire 5K Classic, raleigh, n.C. Wyndham: Atp SAp open, San Jose, Calif.; Allianz Championship presented by Administaff, pGA tour Champions tour stop, Boca raton, Fla.; Arizona opera; Cirque du Soleil touring shows; San Jose Mariachi & Mexican heritage Festival, Calif.; Starlight Children’s Foundation.

Additional Comments: touts Super 8’s petty partnership on pettysGarage.com; in addition to checking out team news, consumers visiting the site can receive a 15 percent discount on hotel rooms and enter a promotion offering a trip to a race and a petty meet-and-greet. Sponsors San Antonio Stock Show & rodeo and other properties on behalf of Wyndham Vacation resorts timeshare unit.



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FInAnCIAL SErVICES

American Express Taps Music Sponsorships For New CardWith fashion, travel and other lifestyle elements as part of Zync’s positioning, possibilities exist for more deals with related property types.

Following its longstanding strategy of using sponsorship to promote new products and demonstrate their benefits, American Express Co. has signed a handful of new ties on behalf of its new Zync charge card.

Zync—introduced in May—is aimed at consumers in their 20s and 30s. Its most notable feature is the 10 “packs” that users may select to customize their rewards points and other benefits according to their interests.

the packs carry names such as Go (travel perks), Style (retail rewards) and Eco (double Membership rewards points at green merchants). Some are free while others cost $5, $20 or $25 a year on top of the card’s $25 annual fee.

thus far, AmEx is using sponsorship to promote Zync through music tie-ins. the card’s Music pack offers double rewards points for purchases of concert tickets, as well as presale access to ducats for select concerts and music events.

AmEx presented a May 15 new York City concert by indie rockers the national to celebrate the launch of the card. the company activated by providing Zync cardholders the opportunity to purchase tickets before they went on sale to the general public.

the company has since expanded its presence in music by partnering with some of the country’s largest festivals, including pitchfork Music Festival in Chicago, Mile high Music Festival presented by Kyocera in Denver, and the Austin City Limits Music Festival in texas.

Zync also will present a series of concerts July 26-30 in new York City celebrating Spin magazine’s 25th anniversary. participating acts include the Smashing pumpkins, the Flaming Lips and Spiritualized.

In addition to new deals, AmEx also is leveraging existing ties to promote Zync. For example, Zync is hosting a pool party at Mercedes-Benz Fashion Week Swim in Miami and offering on-site swimwear fitting tips from couture retailer Nic del Mar.

AmEx is activating Zync’s partnerships through Facebook.

For example, the brand’s Facebook page (www.facebook.com/zync) hosts a promo for the Spin concert series offering the chance to win a trip to new York, receive backstage passes and VIp seating to each show, and interview the bands using a



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new Flip video cam. AmEx will post the winner’s interview footage on Facebook and on AmEx’s Youtube channel, while Spin will post it on Spin.com.

AmEx also will stream video of the new York concerts on the Zync Facebook page, Spin.com and other locations in Spin’s network of music-related Web sites. the content will be available only to visitors who have “liked” Zync’s Facebook page.

“Music has always been at the core of how American Express connects with its cardmembers, and this partnership is a natural extension of that innovation,” said Mary hines, vice president, Zync product management, in a statement. “Zync was designed with music lovers in mind, giving cardmembers unique music-related experiences that they can then share with their network of family and friends.”

“Music festivals have provided American Express the perfect platform to showcase their new Zync card to the younger, relevant demographic that these events attract,” said todd Goldstein, president, AEG Global partnerships. AEG produces the Mile high Music Festival and the Coachella Valley Music and Arts Festival, in Indio, Calif., where Zync hosted a VIp tent.

Deals done specifically for Zync are in addition to those that come from AmEx’s global sponsorship marketing department (“no Credit Crunch for American Express Sponsorships,” 1/26/09). the corporate department’s team includes Jessica Igoe, director of global sponsorship, Courtney Kelso, vice president of sponsorship marketing and rich Lehrfeld, vice president of global sponsorship and access.

Source American Express Co., Tel: 212/640-2000



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SponSor proFILE

Dogleg Right: The Strategy Behind KitchenAid’s New Golf TiesProperties should look for opportunities to address multiple company and product goals to increase their chances of securing agreements.

In May, Whirlpool Corp. and the pGA of America agreed to a four-year deal that names the appliance giant’s premium KitchenAid brand as presenting sponsor of the Senior PGA Championship and official home appliance of the golf organization.

In addition to aligning with new marketing goals for the KitchenAid unit, the sponsorship also furthers a corporate objective to support its headquarters community.

While the first iteration of the presenting sponsorship will occur next May at Valhalla Golf Club in Louisville, Ky., the tournament will be held at the soon-to-open Golf Club at harbor Shores near Whirlpool’s Benton harbor, Mich. headquarters for 2012 and 2014. the location of the 2013 event has not yet been determined.

IEG SR spoke with Deb o’Connor, KitchenAid’s senior manager of brand experience, about the new partnership and where it fits with the brand’s long-running sponsorship of Susan G. Komen for the Cure and other property ties. Below are edited excerpts from the conversation.

IEG SR: What is the origin of the partnership with the pGA of America and Senior pGA Championship?

O’Connor: the pGA of America approached Jeff Fettig, Whirlpool’s chairman and CEo, about the opportunity. Jeff had a vision to use the sponsorship not only to help our brand, but the local community as well. It was a great opportunity for Whirlpool as a company and KitchenAid as a brand.

IEG SR: What objectives does the partnership address for KitchenAid?

O’Connor: When you first think about it, you ask the question, “How do appliances and golf fit together?” In reality, there is an overlap between the demographics of the KitchenAid customer and people who attend golf events.

Secondly, it’s a great opportunity to build relations with our trade customers. We will activate the sponsorship with pro am spots and tickets to the tournament. that’s a great way to differentiate the KitchenAid brand.

Lastly, the 26,000 members of the pGA of America represent a new opportunity for us. We usually sponsor food and wine events, but we are putting more focus on reaching families. Many families go to golf tournaments. this gives us a different



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way of approaching the same demographic.

IEG SR: Beyond the B2B activity you mentioned, how else will you activate the partnership?

Connor: We will host a live kitchen at the tournaments, featuring a celebrity chef cooking with a pGA pro.

We also plan to attend the pGA of America’s merchandise show, and we also may have product demonstrations in local country clubs.

We are still in initial conversations about all of that and we haven’t nailed down anything, but we will have the opportunity to be in front of these folks throughout the year.

IEG SR: You mentioned KitchenAid is putting more focus on reaching families. Might you sponsor other types of properties that reach families?

O’Connor: We have always known the KitchenAid consumer likes to cook with people, including friends, families and neighbors.

We have refined that in the past year. We are not changing anything we are doing, but we are adding a new twist. Instead of just doing food and wine festivals, we are looking to reach people involved in other activities.

IEG SR: So might KitchenAid sponsor other types of events or organizations?

O’Connor: people are constantly knocking on our door. Before we do any event, we look at the opportunity and determine if it’s a good target audience and a good spend.

IEG SR: KitchenAid is now in its 10th year as a Susan G. Komen for the Cure partner, committing a minimum of $500,000 annually to the cause through the Cook for the Cure platform. how are you keeping that partnership relevant and compelling?

O’Connor: the partnership started in 2001. We wanted to do something in the social responsibility area, and we looked at issues that affect our customers. Breast cancer was an obvious one.

the relationship started with our pink stand mixer, where we make a $50 donation for each mixer sold. We now offer a whole line of pink products including spatulas, whisks and gadgets, and we have also added more programs.

For example, we auction pink mixers at food and wine events. Celebrity chefs sign the mixer, and they also have their photo taken with the winning bidder.

We have a new program this year called 1,000 Cooks for the Cure. Since 2001 we have encouraged people to host fundraisers in their homes. this year we decided to make the event an annual affair with parties across the country from July 16 to July 18. We didn’t reach 1,000 parties this year, but hopefully we will next year. We also have a program called pass the plate where we encourage cooks to buy a plate specially designed for us by Villeroy & Boch, make their favorite recipes and share the dish with a friend. the plate can be registered on our Web site and KitchenAid makes a $5 donation every time a plate is registered and each time it is passed.

IEG SR: how does the Komen partnership support the KitchenAid brand?

O’Connor: It creates loyalty. We know that consumers who purchase one of our pink products are loyal KitchenAid customers. Consumers are likely to switch brands to support companies that support a good cause.



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We also know that 50 percent of MBA graduates are willing to accept a lower salary from a company that’s dedicated to social responsibility. taking care of local communities is part of Whirlpool’s DnA.

IEG SR: Which food and wine festivals is KitchenAid now involved in? how do you leverage those ties?

O’Connor: We sponsor the Food & Wine Classic in Aspen, the Food network South Beach Wine & Food Festival presented by Food & Wine and the Fine Cooking Epicurean Classic presented by KitchenAid, which is in our backyard in Benton harbor.

this year we have also become a new sponsor of the Food network new York City Wine & Food Festival presented by Food & Wine and Travel + Leisure.

those are truly the top food and wine events in the country. We set up kitchens and have multiple demonstration stages featuring celebrity chefs.

people have the chance to go into the kitchen, check out our products, kick the tires and ask questions. hopefully they will remember KitchenAid when they are shopping for kitchen products.

Source Whirlpool Corp., Tel: 269/923-5000



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StrAtEGY

New Water Brand Puts Sponsorship Elements In PlaceProperties should not overlook small companies, as upstart brands often find sponsorship the most cost-effective way to market.

With bottled water getting a bad rap due to its eco-unfriendly packaging, an upstart water marketer is hoping that its aseptic container made primarily from paper will give it a leg up on much larger competitors—and is using sponsorship to spread the word and gain additional retail distribution.

With its tag line of “Save the planet, one drink at a time,” refreshing Ideas LLC positions its h20 natural spring water as “the most sustainable option for water on the go,” said Julie Atherton, the company’s president and owner.

refreshing Ideas’ biggest sponsorship play has been with music festivals, signing deals for h20 with Lollapalooza in Chicago, Austin City Limits Music Festival in texas, and Mile high Music Festival presented by Kyocera in Denver.

the brand also is partnering with events outside of music, including a tie to the publix Family Fitness Weekend presented by Gatorade, a 13-stop April-through-october series of sprint triathlons and other events.

In addition, refreshing Ideas has sampled h20 at rock ‘n’ roll Fantasy Camps, the Grammy Awards, comedy shows, charity fundraisers and other events.

As a small company, the two-year-old, privately held refreshing Ideas is using sponsorship as a cost-effective platform to stake its territory and establish its brand.

“We are such a small company, and we are the first in the U.S. to market water in a paper package,” Atherton noted. “We had to find a way to make a big bang very quickly so if anyone follows us into this business we’ve already made our mark. “Sponsorship provides us lots of media exposure that we could never afford.”

In addition to generating awareness and trial, h20 also is using sponsorship to gain the interest of prospective trade accounts, Atherton said.

“When you have 225,000 people at Lollapalooza drinking h20, it makes sense for a retailer to have it available. having artists and celebrities drink the product is the best way to get attention, but this is all about getting distribution.”



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the company is using sponsorship of the publix Family Weekend to build relations with title sponsor publix Super Markets, Inc. While the chain does not currently sell h20, Atherton hopes the sponsorship will change that.

“We’re not available at publix, but we are getting a lot of requests from their customers as a result of the sponsorship,” she said.

the brand currently is sold through Sears Brands, LLC’s Kmart Superstores, Amazon.com and h20’s Web site, oneDrinkAtAtime.com.

At many events with which it is involved, h20 focuses on sampling among celebrities, the media and other influencers. Its rights at the Mile High festival are for backstage sampling as the official water for bands and performers.

With larger deals, the company looks for on-site sales rights to help recoup some or all of its rights fees.

For example, Atherton noted, h20 has sales rights at Austin City Limits and Lollapalooza—both produced by C3 presents—and expects to at least break even on the sponsorships.

“We are so small we can’t afford to do things for exposure alone. With something of this magnitude we have to get some sort of return on investment.”

the company focuses on events with recycling programs to support h20’s green positioning, she added. “We look for events that have a recycling program in place, or where we can do that easily.”

the company, which also sponsors green confabs and marketing conferences, is in negotiations for additional deals, Atherton said.

Source Refreshing Ideas, LLC, Tel: 954/607-4299

Documents

July 19, 2010 800/834-4850 | · July 19, 2010 800/834-4850 ... senior vice president of marketing and sales 602/957-4200 Strategy: ... sponsorship with the project Aloft Star Facebook-centric