Being Prepared for Disaster: 5 Considerations for Sponsors
“Today marks a big win for the USOC. We are extremely proud and appreciative to welcome BP to our growing family of U.S. Olympic Partners. The Olympic and Paralympic Games are the ultimate showcase of human endeavor and performance and we are thrilled to partner with an organization that has high performance at its heart.”
These were the words of US Olympic Committee CEO, Scott Blackmun when announcing BP’s sponsorship deal with the organization in February. “High performance” is likely not the term most would equate right now with BP.
On April 20th, an explosion occurred on BP’s Deepwater Horizon oil rig in the Gulf of Mexico triggering a massive oil leak deep below the surface of the water. A month after the explosion, answers are still hard to come by as oil continues to seep into the Gulf. Interestingly, within that span, BP announced sponsorship of the BP Cup, a new trophy to be awarded to the annual winner of the cross-town series between Chicago’s two venerable Major League Baseball teams, the White Sox and Cubs.
Let me be clear; I’m not suggesting that an oil company shouldn’t utilize sponsorship to advance its brand or generate business. In fact, at DEEP, we happen to believe that any category of business can utilize sponsorship and event marketing effectively as long as business objectives guide decisions and activation plans are built strategically.
We live in a time where everything seems to be political, but, let’s face it; the energy business, with constant pricing pressures and inherent environmental issues at play, is particularly political. And because of that, it’s incumbent on such businesses to be extra sensitive to consumer and media reaction to their sponsorships. Will a sponsorship of the USOC focused on helping the US Olympic Team travel to Games in Sochi, Russia with a neutral carbon footprint help make consumers think BP cares about the environment if they don’t think the company is doing enough to keep its drilling rigs safe or can’t fix environmental disasters quickly enough? Don’t bother answering, it was a simply a very long rhetorical question.
All of this got us thinking about sponsorship and corporate responsibility and how the two intersect. So, what should sponsors, particularly those in highly politicized categories, ask themselves before venturing into sponsorship or making a big PR splash about a property association?
1) Do not act in an isolated fashion when announcing a sponsorship – A brand is a brand whether it is adorning an event logo or is raised high above a corner gas station. The person or agency responsible for preparing a press release or organizing a press conference should be aware of all critical issues that the company is currently facing. Saying, “That doesn’t really have anything to do with this announcement,” is not an acceptable response.
2) Consider worst-case scenario – Have a definitive reason why you are sponsoring something. For clients, we often develop “property position statements,” to keep us on track for the primary reasons a client is sponsoring a specific alliance. But even beyond that, it is beneficial to be ready for the “How can you be promoting yourself as a quality company through this sponsorship when (fill in the blank worst case scenario) is going on?” type of question.
3) Keep customers in mind with all sponsorship decisions – No sponsorship decision should be made or activation concepts developed without giving thoughts to how they will benefit customers. Even if a sponsorship’s primary purpose is to generate significant brand awareness, you need to ask yourself what is in it for the customer. There are multiple reasons for this: 1) It will allow you to better communicate early on why a customer should be excited about your sponsorship; and 2) It provides a little cushion for you with customers if something negative happens to your business.
4) Never fall into trap believing that audience cares for you because of sponsorship – Properties like to tout research showing that if you sponsor something, fans of that sport/event will be more predisposed to patronize your brand or service. Don’t be lulled to sleep thinking your work is over. It’s the marketer’s responsibility to activate in such a way that engages the consumer. And never, ever, think for a minute that a sponsorship, even of the most universally-accepted cause, will nullify damage if you seem to be acting in a contradictory way to your stated brand promise.
5) Remember Enron – Like we can forget, right? Sponsoring big-ticket items for reasons of hubris or because you’re flush with cash, aren’t valid. The former Houston-based power giant went down for perpetrating massive fraud. Enron had placed its name on what is now Minute Maid Ballpark, home of the Houston Astros. When news broke of Enron’s demise, the ball club was left with a PR nightmare, which it deftly handled by purchasing back the rights. Such massive sponsorship undertakings can be negative symbols of excessive largesse if things go badly in other areas of a company.
The Cubs and White Sox face off for the first of six meetings on June 11th at Wrigley Field to open up the quest for the BP Cup. We’ll be watching to see if the noise they make will be drowned out by the heat being thrown back at them.
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Tags: BP, BP cup, Chicago, oil spill, sponsorship, sports marketing
We discussed BP in my Media & Society class, not on this subject of course. BP has been committing this crime of relying on the way they dress up their brand for a long time. I believe that some people don’t even know what BP is because they have greenwashed their product so much. It is kind of like the reverse effect of the celebrity endorsement stance you took in “Don’t Let the Stars Outshine the Product.” When your product doesn’t reflect how you are advertising it, it is a disappointment. Great work, can’t wait to read more!!