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The most valuable
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Brand Finance reveals the world’s
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Special Report: The marketers that must use data better 25Sponsorship
Disney
Can Disney really
bigger global sponsorship
vehicle than the Olympics?
Cross-media deals are
behind Disney’s success,
explains Christian Sylt
fterfinanceand proper (woot the worst
Aiitscirsintsenisan have
travel andmedia, Disposable income
tas ipped and sdverising budgets have been
slashed, With about thie ts 78bn 25.)
‘evemes coming om theme pak andthe bl
ance brainy television channels and movie
smulos, Walt Disney Company doesn't appear
well placed to seria happy ending
ut ikea goo Hollyo¢ bloekbustos there
isatwist, Through clover corporat alliances,
‘thecompany ie generating tsrvenues trom he
most unexpected sources.
16: Marketing Week 16.04.08
become a
Disney has a portfolio of corporate alliance
partners ranging from Hewlett Packard and
Koda ta Nests,
Steve Madincea, managing director of Prism,
‘WPP's biggest sponsorship agency claims the
‘media company is not aly set to reap che nan
cial rewards of this wrrangement but could
hhave: "A global sponsorship profile much larger
han the Olympics.”
Its not just tho sizeof Disney's portfolio that
fs worth marketets taking note of but the nature
of thedeals. Many of the partnarshipsrange over
variety of media. Some partners work with Dis-
ney to design and brand theme park attractions
‘while others opt for product placement in shows
onits ABC'TV notwors or pop up at promiéres of
movies made by its Miramax studio.
Disney has been involved in partnerships sinee
its ounderentisted Coca-Cola to help Rriance his
‘irsttheme park in the 1950s, An innovative mat
keting deal was struck, wiving Coca-Cola the
Fightstobe che solesupplior of soft drinks within
the park in return for is backing. It remains
partner to this das,
Disney now hasabout 20 global partners with
about the same mumber of companies sponsor
ing attractions locally at ls park complexes in
the US, France, Hong Kong and Japan.
‘Lawrence Aldridge Disney's sentorvicepres.
Ident of corporate alliances, reves: “Our busi
ness Is doing realy well, Everyone else may be
Josing sponsorship dollars but we are gaining.”
Aldridge raonty signed Visa asan Aslan Dis:
ney partnerand he s believed tobean the verge
of securing an allianee with a European bank ~
‘huge coup given the weak reputation of the
Danking sector
A former oll company executive, Aldridge
worn.marketingweok co.uk{Joined Disney in 2000. His lack of a media back
«ground hasbeen seen by the business as anasset
“A couploof yearsago'Tom Staggs [Disney's chil
‘nancial ffcer wanted seme'nody without ata:
ditional promotional matketing background to
take # fresh perspective on what corporate
alliances were about,” exslains Aldridge,
‘COMPANY-WIDE PARTNERSHIPS
Aleridge'sremit was omaximisethereturnsby
ensuring that corporate alliance opportunities
‘permeated the entire company. He shook up Dis-
ney’s partnership structure toachiow this “When
took the fb, 100% of the partners were wedded
to theparkand there were other elements, What
ve have been doing is lacking mote broadly,
terms of understanding what the partner wants
and hovs Disney's assols can bo uso,” ho 2,
A partnership between Disney snd Siemens
wu marketingwesk co.uk
demonstrates how Aldviage’s deals run across
multiple elements of the media business” port
folio. he German technology company hasewert
‘namingrights for Spaceship Earth, dhe lagship
attraction in Disney's science based pcot theme
park in Florida. A sign saying “presented by
Slamns" hangs outside the ride which takes vis
iMors through moe! scenes, explaining the his:
tory of communications.
‘Ata more subtle level, the end of the attrac
‘on features hel toch educational games deve
‘oped by Dimey showcasing some of Siemens
technologies: Dimey booksshavealso been writ
ten tohelpenildren with hearing diffcultiesset
accustomed to Siemens’ hearing aids
‘Siemens medical products haveeven appeared
in Grey's Anatoms, the medical drama broad-
cast on Disney-owned ABC. “Our imagineers!
have converted the Slomens story nto something
‘hat truly entortaining and that's what you're
paying for It's very differant to naming rights
ata stadium or something like that,” explains
Aldridge,
‘Madineea agroes: “Too many sponsorship
platforms try and foree a sponsor to accept
their standard package where Disney uses its
{inbred ereatvity tohelp sponsors fully Ieverage
their investment.
Other parinerships include tasting stations
inparksofferingfree samplesof new Coca-Cola
flavours to guests who give feedback on the taste,
Aspacesimulationride came courtesy of arela-
‘lonship withNASA and Howlett Packard. Lik
‘wise, General Motors has developed Test Trae,
arollerooater themed as oar testelroult; when,
‘GM wanted to publicise ts hydrogen cel cars,
‘it gave them to top Disney executives ar this.
was broadcast on ABC. D>
16.04.00 Marketing Week 17Disney
Aléridge is unwilling to revel the value of series, But with its reputation and resourees,
Disney's alliances, arguing that exch deal isthe potential is near limites.
bespokeforthebrandinvolved. Butthenumbers ‘There is @ eotporate lounge exclusively for
Involved are potentially massive —the Siemens partners to use, Top employees and clients are
partnership is reportedly a I2-year deal esti- incentivised with visits tothe lounges which
‘mated to be worth §100m (269.4m) in total. __olfer tue refreshments and queue-cutting ride
Disney argues that the number of eyeballs ances 965 days a year
IMsparksattractis equivalent io any top sports “A programme which allows the assoclates
event withmorethan 100millionvisttorsanni- or employees ofa firm tobe part of something
ally Theparks occupy the top eight psitions in bigger may be well more valuable than a large
the rankings of the world's most visited theme cardboard soft drink botleon a football pith,”
parks and with $4,000 hotel rooms onsite, predicts Heljnen.
Disney is also abla to obtain demographic data
on its guusts of which most rights-holders CHILDREN REALLY ARE THE FUTURE
could only dream. ‘While some might claim that Disney's target
Howovor, Xandor Holjnen, chief operating audience s mainly children, aldridgo says that
oficeraf consnttig firm CNC Communications, even for adult purchases, these are important
‘warns: “Tts America-ness may be a bit too people to reach, “Our researeh shows that 0%
«dominant for some potential partners. ofthe household burgetis controlled by women
‘Also, in terms of values such as competi> and influenced by kids,” he says, adding that
tiveness, innovation or sportsmanship, Disney _InvolvingDisney can help get children to become
scores rather low compared with, sy; sports early advocates of products
‘The Midlands was the first
region to step up to the
challenge. Aiter nearly 12,000
online votes Freya Lingerie
(Bveden) was the publie's eholee
with ereative agoney RBH
winning the frst round oF Ge
Regional Creative Challenge.
18: Markaing Weck 16.04.00 ‘am markotngwesk co.ukTin the case of GM's Test Track, the vistors
toDisney theme parks fit well with the ear man-
‘facturer’seastomer profiles, They mostlyhave
‘middle- and upperincomes and almost all
have highschool diplomas, What's more, most
‘aromarried with children, which allowsGMto
‘build exrlsrelationshipe with youngsters. Dis
ney evan has plish Test Track toys to deve the
message home.
Disney prohibits GM from selling any cars
‘onsite but itis still well worth it, as Aldridge
clalms: “Test Track is GM's largest lead gener-
ator of any showroom in the world,” Perhaps
the biggest testimony tothe value of the deal is
‘the fact that GM has not pulled out, despite its
financial woes
‘The relationships built with partner brands
are also taken beyond the promotional sphere
at Disney. The company reportedly spends
i2n (#8.2bn)a year on goods and services and
its partners are often at the front ofthe queue
‘when the company eames to place orders "We've
‘outsourced somecf our printmanaged services
to Hewlett-Packard,” says Aldridge and GM is,
allowed to supply feet vehicles to Disney Wori’s
51,200 employees,
PHOTO OPPORTUNTES
‘Boyon! Tost Track, photo opportunities with his:
torte Cadillacs litter the Grand Floridian, Dis-
ney’s Victorian themed hotel in Florida and the
uropean Opel brand Is sed inthe stunt show
at Disney's US movie park, The Jonas Brothers,
teenage pop act contracted to Disney, even
Dlayod a concert for GM staff and its cients at
the Disney studio buileings in California,
“We can do virtually anything provided that
itmeets our beand guidelines,” says Aldridge.
“There areeertain sectors wecan'td, Wewwon't
{do gambling, we won't do cigarettes and we can
‘nly do alcoho! as far as itrelates to Miramax
or our BSPN Sporis [7] brand.”
Iseems that fastfood isalso losing favour
Disues The brand recently parted ways with
‘McDonald's and Disney has introduced nutri
‘onal guidelines restricting who it oan partnar
with in tlsarea,
Inthelong erm, this should be enefieta but
{im the immediate futuro, Disney still needs all
thefinancialhelpitemn get The company’s share
price has slumped 45% from a high of $84.99 in
‘May 2008 and Aldridge is broadening his out
look to grow the business.
GLOBAL OPERATION
“Mostof ourpartersare American but itneeds
tobe « giobsl operation, which means talking
tottierea international payers and the brands
from emerging economies,” he says. “Our five
‘year goal Isto giobalise our partnerships.”
‘With media companies in such severe finan
cial turmoil, Disney's ability to generate income
‘Mhrough such alllanees will be under elose
seruting The company willbe hoping that this
story ends up with ts corporate marriages lea:
ing toa fairytale ending. @
Head of Loyalty
Development
ala Coral Group
Innovative ten tothe bus the strap line le
really bovghr to Ife wit thecrestve
enforcingtne afference an ox layer can
make! Trisis bound tobe a eve eacher
and have resonance. A sip messspe
executed beauty
Vote to put your favourite through to the Regional Grand Prix! www.upeveryonesstreet.co.uk/region ores
vv markotingweok oo.uk
Group Marketing
Manager, OMG Radio,
‘Avery spl heacline delivered with
rumour, which wlcapiure the attention
and bongawnysmie. Theagereynas
achieved strong brandi on the.) even
wien t’sbeen paced use down!
Planning Directar,
PHD North
“Too mary bLesides rely on sabeeeine nas
‘muchtext as possible and fal dow
because ofthis. Thistea teal teat Ise
‘wel known icon ie draw atiention tothe
ad na fun and engaging way ta
‘completely encapsulates he prone
message.
CBS
18.04.00 Markting Wook: 19