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Working Successfully With Retail Partners
Retailers are key stakeholders in the success of any sponsorship program. Without the cooperation of this interest group, many sponsorships will fail miserably and provide a negative return on your sponsorship investment. So how do you get buy-in from retail partners and successfully integrate them into a sponsorship?
Move Product: If you approach your retail partners with drab, space-consuming point-of-sale materials that don't induce consumers to buy product, you will be laughed out of your meeting with the retailer. Coupons used to work, but discounting cuts into already squeezed margins, and consumers become accustomed to a lower price-point. Offer retailers attractive assets that allow them to truly become partners in a promotion. In-store appearances by athletes or entertainers will draw large crowds. Or how about a tour of your biggest retail partner by the league trophy? You'll be surprised how effective a POS program can be when the focus is on the consumer, not your product! It would not be surprising for the retail partner to see an up-tick in sales of other products as a result of the promotion. If the retailer does realize a significant increase in sales of your product, you have a legitimate case for asking the retailer to share the cost next year if it wants to remain an exclusive promotional partner.
Bring Them On-Site: Leaving the retailer in the store is a serious sponsorship mistake. Instead, when you negotiate your sponsorship contract with the property, make sure you have pass-through rights included in the deal. With that built-in flexibility, you can provide on-site branding for your retail partner, timed to coincide with in-store promotions. If the property, such as a motor sports league, moves from market to market every week or two, you can pass through signage and other assets to your retailer of choice in particular regions.
Use Hospitality Wisely: Instead of using all of your hospitality assets for internal audiences or other business customers, use hospitality to drive store traffic. How are you going to get occasional or infrequent users of your products to consider your brand or try your product? You must give them a reason, and for many consumers, an opportunity to win unique hospitality assets or experiences is enough to encourage product trial. A sweeps program supported by advertising and attractive POS materials can easily drive sales.
Speaking of Advertising… Involve your retail partners in advertising specific to your sponsorships. If you have a cooperative advertising program with your retailer, you don't have to shoulder all the costs yourself. You need to ask yourself why you would use themes and imagery from the sponsored property - which may prompt consumers to buy your product - and not direct the consumer to a retail location within the ad.
