Mercedes-Benz Event Sponsorships Play Big Role in 2010 Marketing

Special to The Auto Channel
by Marty Bernstein, AIADA Contributing Editor

Although the luxury car business has suffered under the current economy, Stephen Cannon, vice president of marketing for Mercedes-Benz USA, is far from depressed. In fact, he’s upbeat about Mercedes’ opportunities in 2010.

During a conversation with AIADA, Cannon echoed his recent statement to the International Advertising Association: “We’ve realigned our marketing efforts to achieve greater efficiency and effectiveness, while simultaneously increasing our marketing voice to the consumer by more precisely targeting selective, value-conscious customers.”

Cannon believes that connecting and focusing the Mercedes brand on the consumers’ needs is critical and more important than discount and sales events that move the short-term sales needle, but which he believes can, in the long run do “lasting damage to the brand.”

To reach their target customers in 2010, Mercedes is taking a multi-level marketing and advertising approach. Television advertising will be increased with a new multi-tiered program for over-the-air and cable networks. The company’s new 2010 ad program will also improve national, dealer advertising, and dealer group advertising programs through heightened cooperation, programs, and targeting.�

New commercials for C-class and GLK models will follow the creative emphasis of the very successful E-class ads and will detail the brand’s heritage, new safety technology, as well as engineering innovation and design. Similar marketing elements will be used in the print advertising

However, the most unique feature of Mercedes-Benz’s 2010 marketing plans involves a major expansion of the company’s sponsorship and participation in popular events and activities. The goal of these sponsorships is to highlight the brand’s values and intersect with the interests of its customers.

Mercedes will utilize three types of sponsorships this year:
•�Auto concours events – Pebble Beach and Amelia Island
•�Sporting events� – PGA and USTA tournaments
•�Entertainment/Lifestyle events – Fashion and movies

Concours Events
These elegant events, with special hospitality, showcase the very best in new and classic motorcars and often include antique racecar races, fashion shows, art displays, and rare vehicle auctions. Mercedes expects to utilize concours events to connect the brand to its best customers in a specialized setting and location.

Sporting Events – Golf
As several automotive brands have dropped their sponsorship of major golf tournaments (Cadillac, Chrysler, Buick, Ford, and Nissan), Mercedes has replaced them and expanded its brand promotion.

According to Cannon, Mercedes-Benz will sponsor eight prestigious events this year including:
•�The Masters
•�The PGA Championship
•�Quail Hollow Championship
•�AT&T Pebble Beach
•�AT&T National
•�Senior PGA Championship
•�Northern Trust Championship
•�Chevron World Championship

Sponsorship at major events like these usually includes the obvious television time and commercials, as well as on-site vehicle displays, special signage, identification on tickets, caddy coveralls or bibs, hospitality suites or tents, pro-am event slots, pre-event rounds of golf with celebrities, special parking, as well as other elements.

Last year, Mercedes took its sponsorship one step further with the introduction of a “PGA Performance Center” – a state-of-the-art facility that pays homage to the defining moments in the evolution of golf. Visitors to the Center can view a series of golf balls dating from the 1600s to the present, including the first golf ball. The company also utilized the space for a series of displays, graphics, and videos to feature Mercedes-Benz technology and engineering innovation over the past half a century or more.�

Additionally, Mercedes sponsorship means the brand is the official vehicle of the PGA and provides vehicles to players at many of the tournaments detailed above.

Sporting Events – U.S. Open
After signing a four-year contract late last fall, Mercedes-Benz is now the Official Vehicle of the U.S. Open and the Presenting Sponsor of the U.S. Open Men’s Singles Championship. As hallowed ground for American tennis fans, the U.S. Open is the single biggest sports event in one location, generating almost 750,000 visitors every year.

Mercedes will take advantage of this group of fans with net signs, court signage, and on-site vehicle displays, and will provide transportation to the 250 professional tennis players participating in the annual event.�

Runway Model Lifestyle and Entertainment
Mercedes’ tri-star logo brand is very visible as the presenting sponsor of the New York’s spring and fall Fashion Weeks and Fashion Week in Miami. Both are huge events for members of the fashion industry, including retailer buyers, celebrities from around the world, television networks, international magazines, newspapers, and the Internet.
�
Mercedes will also make a splash in the 2010 film Sex and the City 2, starring Sarah Jessica parker.

Bottom Line
Reviewing the extensive list of Mercedes’ sponsorships, it’s no wonder Cannon is upbeat. As evidenced by its impressive lineup of sponsorship and branding events, Mercedes is making strides in leveraging its visibility and elite status among automakers.