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Home / Business

Signage, signage everywhere ...

2 Oct, 2002 09:02 AM4 mins to read

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By SIMON HENDERY

When one of the world's biggest marketing circuses is in town, a brand can find exposure at the most unlikely times.

On Tuesday afternoon, 200 international journalists assembled for the inaugural Louis Vuitton post-race skippers' press conference.

Larger-than-life master of ceremonies Bruno Trouble kicked off with a sponsorship question
for Stars and Stripes skipper Peter Isler.

"There was a new sticker on your boat today - Viagra. The question is, whether Viagra is a supplier or a sponsor?"

The room erupted in laughter and a diplomatic Isler replied that the team have yet to take delivery of any product, "but the sponsorship is certainly much appreciated".

Peter Harrison, multimillionaire head of British challenge GBR - beaten that day by Isler's crew - could not resist chiming in: "The GBR position is we were facing up today to a bunch of hardened professionals."

While multinational drug company Pfizer's decision to buy advertising space for its anti-impotence drug on the boom of Dennis Conner's boat generated a cheap laugh, America's Cup sponsorship remains a serious matter.

Around the "American Express" Viaduct Harbour, it is difficult to find a piece of property - either physical or intellectual - that is not plastered with sponsorship, particularly for products at the luxury end of the market.

In Auckland this week, Louis Vuitton president Marcello Bottoli and Prada chief executive Patrizio Bertelli both shrugged off suggestions that there was no room in one America's Cup for two luxury goods companies.

"This is about sailing above all, and we will compete and we have enough time to compete in the marketplace," said Bottoli. "I am not ready to buy a Prada bag yet."

Louis Vuitton's New Zealand head, former French America's Cup skipper Trouble, says the company's budget for its numerous regatta activities is equal to that of a small challenger syndicate - suggesting a commitment of about $50 million.

Louis Vuitton's support dates back to 1983, when its involvement was much more modest. Today, as well as being co-organiser of the challenger series with CORM (Challenger of Record Management), it runs the regatta media centre, sponsors the official timekeeping, and has various other branding rights.

What does it get for its millions? Trouble says there were about 750 hours of television coverage of the cup in 1995 and 2000 hours last regatta. He expects 3500 to 4000 hours this time.

Running the media centre is an effective way for a luxury goods company to use that exposure, he says, because advertising has a limited impact on the target market.

"Once you have bought a few pages in luxury magazines, what else do you do?"

For Fuji Xerox, one of two top-tier "event sponsors", the regatta is primarily about showing its products and entertaining clients.

"We are contributing a significant portion of our marketing resources to this event to make sure we maximise the opportunities," said Hamish Mitchell, Fuji Xerox's marketing communications manager.

The company is spending a high seven-figure sum on its cup activities, which include exclusive supplier status with Team NZ, CORM and the Louis Vuitton series.

It has chartered the 37m superyacht Ultimate Lady to host 40 clients on the harbour for each day's racing and will hire a second 100-spectator craft when the semifinals begin.

Mitchell said the company's sponsorship of the media centre allowed it to show off its hardware and software to world media in a real-life setting.

Lion Nathan's Steinlager has been involved in America's Cup sponsorship since New Zealand's first challenge at Fremantle in 1986. It remains one of Team NZ's "family of five" prime sponsors.

Steinlager spokeswoman Rachel Robertson would not reveal the sponsorship budget, but said the perception of Team NZ as a winner, plus the cup's summer timetable, made it an ideal beer sponsorship target.

One of the few sponsorship-free oases at the Viaduct is the new corporate hospitality centre, the Base Club.

This is not an act of charity aimed at those seeking somewhere to rest their brand-weary eyes, says Base Club spokesman Bob Billingham.

Because it is vying for the business of a range of corporate clients, the Base Club has kept itself "clean" so, for example, one liquor company does not stay away because the centre is plastered with a rival's signs.

nzherald.co.nz/americascup

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