Sports fever

Dairy Foods, May, 1992 by Jeff Reiter

For high-profile brand exposure and image building, dairy marketers are playing ball

Most fans agree that the three-point shot adds excitement to college basketball. For Coleman Dairy, it adds goodwill, name recognition and, quite possibly, new business.

Coleman, based in Little Rock, Ark., sponsors a program with the University of Arkansas where the dairy donates $50 to a special scholarship fund for every three-point basket scored by a Razorback player. Coleman's generosity is rewarded by a plug on the Razorback radio network immediately after each successful three-pointer--no small exposure considering the games are carried by some 83 stations throughout Arkansas. At the end of each season, the dairy receives further positive publicity when it presents the school with a big check.

Coleman's association with Razorback basketball is just one example of creative sports marketing by the dairy industry. Many other companies also are using sports tie-ins to give their brands an exciting, healthful and high-profile image.

Affordable impact

The good news is that even companies with modest advertising and promotion budgets can get involved.

"Sports marketing may appear to be a 'bit ticket' item, but it doesn't have to be," says David Paro, director of sports marketing at Frankel & Co., a Chicago-based marketing services firm. "There are plenty of opportunities to get into local markets and make an impact without decimating your budget."

This point is reinforced by the example of Darigold Inc., which regards sports marketing as an economical long-term brand-building strategy. The Seattle-based company's sports affiliations include: Special Olympics, numerous minor league baseball teams, the Washington State Games, the Oregon State Games and the athletic programs of the University of Washington and Washington State University.

Jeff Princevalle, advertising and promotions manager, says Darigold is careful to limit its sponsorships to teams or events that are family- or fitness-oriented. The dairy also avoids professional teams at the major league level. "By and large, we feel they're far overpriced for what you get," says Princevalle. "I think sports marketing at the levels we're doing it is more cost-effective than, say, sponsoring Bat Night at a Seattle Mariners game for $50 grand. We can do all the things we're doing and then some for that kind of money."

Like Darigold, Anderson-Erickson Dairy Co., Des Moines, Iowa, devotes considerable marketing dollars to amateur athletics. The company is a Gold Patron Sponsor of the Iowa State Games, an annual Olympic-style event, and sponsors dozens of road races and "Fun Runs."

Running events, says Miriam Erickson Brown, director of advertising and marketing, are a way for A-E to support local charities and at the same time showcase its health-oriented branded products. At finish lines, the dairy typically hands out free cups of yogurt or half-pint juice drinks.

In particular, A-E has found road races to be a good vehicle for introducing new flavors in its Yo-Lite line of nonfat/sugar-free yogurt, and for publicizing its name in new markets such as Kansas City.

"It's a lot more effective than giving out coupons or sampling in a supermarket," says Brown. "With these events, we've got our target market right there."

Major league excitement

Besides reaching health-minded consumers, sports marketing can be used very effectively to enhance a company's image with the trade. Says Paro, "Sports tie-ins allow you to really involve the retailer."

Such is the case with Cream o'Weber Dairy, Salt Lake City, which enjoys a unique relationship with the Utah Jazz, the local NBA franchise with a large regional following. The dairy entertains key customers in its private suite during games at the sparkling new Delta Center, the Jazz's home court. Chuck Singleton, vice president-sales and marketing, says the suite is an important element in Total Customer Involvement, or TCI, a Cream o'Weber program for getting to know clients on a personal level as well as a business level.

The dairy, Singleton stresses, is very particular about how the suite is used. "I think at many companies these kinds of things become used as perks for employees and their families, but we've made sure our box is used strictly as a marketing tool." For most Jazz games, Cream o'Weber makes a point to send only one or two salespersons to serve as hosts--the rest of the 16-seat box is reserved for customers and their spouses or family members.

To support retail events such as Grand Openings and special promotions, Cream o'Weber sometimes supplies Jazz tickets as prizes. And for a fee, the dairy can have Jazz players appear on its behalf at trade shows to sign autographs. The Jazz tie-in also includes a permanent back-lit sign at the Delta Center, and a custom ice cream flavor called Berry Jazz Trio packaged in a 5-quart pail decorated with the Jazz's logo and team colors.

Cream o'Weber is just one of many dairy marketers affiliated with major league professional sports. In fact, its parent company, Dean Foods Co., advertises with the Chicago Cubs and Bears, Milwaukee Brewers and Bucks, and Green Bay Packers. H.P. Hood Inc. has strong promotional ties with the Boston Red Sox, and Dannon Co., besides sponsoring the Orlando Magic cheerleaders, has programs with the Atlanta Braves and Texas Rangers. Several regional dairy promotion groups also are using pro baseball as a vehicle to reach consumers with positive messages about milk (see chart).