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Case Study


Labatt Breweries of Canada

 

Background

 

Labatt Breweries of Canada, one of Canada’s largest and most successful beer companies, has a strong commitment to exceeding customer expectations and to adding relevant value. This is illustrative through an extensive, national sponsorship initiative, which operates on several platforms. All lead back to the simple notion of making Labatt brands a part of Canadians’ good times.

 

Part of AB InBev, Labatt is furthering the company commitment to excellence by bringing additional brands and leadership to Canada.

 

Issue

 

The beer business is a highly competitive industry that measures its success not only financially, but in terms of social performance as well. Brand loyalty is paramount and successful brand managers have focused their efforts on creating added value in target markets to increase beer brand’s relevance. Sponsorship has been a vital tool in doing this, as it offers a natural complement to an event/festival, for example. Events/festivals often feature a celebratory component; as a sponsorship partner, beer companies have supplied the means in which much of the celebration occurs.

 

As a competitive company, Labatt’s focus on this connection with consumers has lead to a large national sponsorship portfolio that has become a core component of Labatt’s marketing mix. Labatt has continually used sponsorship platforms as a means to connect and relate to consumers at the event as well as in retail/on premise and through brand advertising. Activation among such properties is very important to Labatt – it provides financial revenue and the means of connecting socially to consumers, increasing brand loyalty.

 

More than ever, the value of these sponsorships and the dollars allocated to their growth are of utmost importance. However, like many sponsors with large sponsorship portfolios, some properties were going relatively unmeasured. Labatt was seeking a systematic means to assess current sponsorship properties and future opportunities to ensure true value and market-driven rights fees that could be used on varying sizes of sponsorship deals.

 

Solution

 

Using Desperado’s customizable proprietary valuation tool, True Value™, create a sponsorship valuation model that reflected Labatt’s unique needs and added value propositions, creating a more accurate monetization of sponsorship assets being acquired or renewed.

 

Results

 

To create a customized valuation model, Desperado Marketing Inc. worked extensively with Labatt to understand what intangible and tangible assets were important to the brewer. Additional activation investments and specific Labatt-offered assets were included to create a more precise process to assess sponsorship value. The final outcome was a valuation tool that provided a systematic means of valuing current and potential sponsorship properties against Labatt’s key market objectives.  This process led to a stronger value placed on activation spend and a more methodical process of ROI measurement.

 

Over a few months, Labatt’s entire sponsorship portfolio was valued and negotiation techniques were established to obtain better overall value and benefits from sponsored properties.

 

This systematic way of valuing sponsorship properties has become an engrained part of Labatt’s marketing process, from sponsorship acquisition to renegotiation. It has lead to a stronger, more strategically focused and financially viable national sponsorship portfolio.

 

Sponsorship is one of many ways that Labatt connects with consumers. True Value™ allows Labatt to measure value among sponsorship opportunities, as well as against other marketing initiatives.