OK. Why? Better yet, how? How did somebody at Yum Brands convince the finance department that sponsoring the Kentucky Derby was a good idea? Maybe next year we can have the Conagra Preakness Stakes? Helloooo? You are holding companies? Nobody cares about Yum Brands. They care about KFC or Taco Bell (powerhouse Yum Brands assets). Conagra means nothing to the average consumer, but Butterball and Hunts Ketchup do. I would prefer the Slim Jim Preakness Stakes if I had to be doomed to naming horse races like it was a bowl game.
Where's The Beef (or Slim Jim)?
I just spent four days in Kentucky at the Derby and the Oaks (for those of you who don't know - the Oaks is the REAL race for locals). Despite being in a mint julep induced haze, I am not buying the latest poop from Advertising Age. They state that YUM just receive a sum equal to total on-air exposure equal to nearly $2.7 million in commercial time. Ya, I know all the math for media impressions...blah blah blah. BUT, they don't run YUM Brands commercials. They would run KFC or Taco Bell commercials. If you pitched running a YUM Brands ad on the Derby do you know what would happen? Every Madison Avenue, black sports coat wearing pitchman would say you are nuts. Then they would say, but an ad about a Chihuahua saying "Yo quiero taco bell"....now that is brilliance!
Here is their rationale: "The Yum logo appeared clear and in focus for three minutes, 15 seconds during NBC's 90-minute broadcast, while the presenting sponsor was also mentioned by the network's announcers on 18 occasions." So what? Would that have been a real investment if not for the sponsorship? No. Why? Because it would be a bad investment. The point is, the comment assumes that you would be promoting YUM as a company versus one of their family of brands during that time. Logic (and advertising practices) tell you they would not. Why? Its all about revenue created per marketing dollar spent (read David Rados - Pushing The Numbers).
Will The Real Yum Brands Please Stand Up?
I did see a KFC banner on the back of a plane a few times. But, other than that I saw an extremely poor showing of YUM brands at the Derby. Why was I able to get a hamburger and fries or a hot dog at the food stands? I should have had the ability to chow down on some tasty KFC. I should have seen the Colonel everywhere in some sublime fashion - maybe on a horse cradling some bourbon or a mint julep. Where were the Pizza Hut slices? The A&W floats? Perhaps some Long John Silvers if I was feeling lucky! Seriously though - they did a horrible job of promoting the real value of YUM.
I have been associated with some big sponsorships in my days (NASCAR, NFL, MLB). The toughest thing to do with a sponsorship is to "monetize it". In my opinion, NASCAR has this all figured out for itself and its sponsors (see CNN article from last year). Nextel partnered with NASCAR for some simple reasons. First, the demographics from each others customer base are a perfect match. Second, NASCAR fans are 3X more likely to buy the sponsored products (If Budweiser is not selling, Dale Jr. is not racing). Third, Nextel could bring something to the table - namely new technology for the race teams.
Forgive me, but I don't think that YUM brands aligns with the Derby. The elite who watch and go to it are not Taco Bell, KFC, A&W, or Long John Silver fans. Its horse racing for Pete's sake! You may counter, "but ther infield is filled with real people - salt of the earth." No, the drunk infielders are just that - too drunk to notice or be of value to the sponsorship - especially when you are pushing YUM and not the brand family names. I can't imaging how many good jokes came from YUM out there though.
I am inclined to agree with John Moore's comments on Brand Autopsy. Although I am a marketer by trade, sales is the tale that wags the dog. If you don't perform well, the only thing good branding will produce is a large agency and media bill - not to mention a falling stock.
The real sponsors of the Derby are simple: bourbon (Makers Mark preferably) and gambling. They have that place 100% covered. You couple that with big hats, sun dresses on pretty girls, and smartly dressed gents in ties and you have a great time. Hey, does anybody have any Grey Poupon for my KFC sandwich?
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