2. Mr. Douglas Johnson,
Chief Marketing Officer,
345 Park Ave,
NY 10154,
United States
Mr. Stephen F. Quinn,
Chief Marketing Officer,
Walmart Headquarters 702,
S.W. 8th St. Bentonville,
AK 72716
Dear Mr. Quinn,
The NFL has a long tradition of associating with some of the largest organisations in the world and
has a track record of adding value for the sponsor as well as being in a position to offer Walmart an exciting
proposal. We are looking for a new sponsor for the season beginning in September 2016.
The NFL is one of the largest sports leagues in the world and continues to grow year on year in the U.S. as
well as abroad. Each team will play 16 regular season games which equates to 256 regular season games
in total. There are 11 post season games including the grand finale of the Super Bowl. The season starts on
the 8th of September 2016 and finishes on the 5th of February 2017 with the Super Bowl.
During the season there will be a considerable amount of opportunities for Walmart to connect with the
NFL audience and therefore reach out to consumers across the country. Our hope is that this partnership
will be the beginning of a long and successful relationship similar to partnerships we have had with other
businesses in the past.
Thank you for taking the time to consider the proposal and I look forward to hearing from you in the future.
Yours Faithfully,
Doug Johnson
3. Sponsorship Proposal Page 3 of 26
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY............................................................................................................................ 4
2 PROFILE OF NFL..................................................................................................................................... 5
2.1 BRIEF HISTORY OF THE NFL...................................................................................................................... 5
2.2 MISSION, GOALS & OBJECTIVES OF THE NFL ................................................................................................ 6
3 DESCRIPTION OF THE NFL....................................................................................................................... 7
3.1 VENUE LOCATIONS, SCHEDULING & STAFFING............................................................................................... 7
3.2 VIEWING FIGURES AND AUDIENCE PROFILE................................................................................................... 8
4 COMPATIBILITY OF WALMART & NFL...................................................................................................... 12
4.1 IMAGE COMPATIBILITY .......................................................................................................................... 12
4.2 STRATEGIC FIT.............................................................................................ERROR!BOOKMARK NOT DEFINED.
5 SPONSORSHIP BENEFITS ..................................................................................................................... 15
5.1 OVERVIEW OF BOOST TO WALMART’S BUSINESS ........................................................................................... 15
5.2 USE OF NFL SHIELD & OTHER LOGOS ........................................................................................................ 16
5.3 MARKETING OPPORTUNITIES AT NFL EVENTS ............................................................................................... 16
5.4 LINKING NFL REWARDS TO LOYALTY SCHEMES ............................................................................................. 19
5.5 “WALMART INTERESTING FACT OF THE GAME” ............................................................................................. 19
5.6 USE OF FOOTAGE OF GAMES IN ADVERTISING ............................................................................................... 19
6 MEDIA & PROMOTION PLAN ................................................................................................................. 20
6.1 EXTENT AND TYPE OF MEDIA COVERAGE ...................................................................................................... 20
7 SPONSORSHIP INVESTMENT................................................................................................................. 21
7.1 INVESTMENT OF OTHER SPONSORS........................................................................................................... 21
7.2 WALMART’S PROPOSED LEVEL OF INVESTMENT............................................................................................ 22
8 IMPACT MEASUREMENT....................................................................................................................... 23
8.2 TOTAL VISITS...................................................................................................................................... 23
8.3 NEW SESSIONS .................................................................................................................................. 23
8.4 SOCIAL MENTIONS & ANALYTICS ............................................................................................................. 23
8.5 MEASURING USER ENGAGEMENT &PERCEPTIONS THROUGH SOCIAL MEDIA........................................................ 23
8.6 MONTH OVER MONTH GROWTH IN ORGANIC WEBSITE TRAFFIC..................................ERROR!BOOKMARK NOT DEFINED.
9 REFERENCES....................................................................................................................................... 24
9.1 FIGURES........................................................................................................................................... 25
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1 Executive Summary
The NFL provides a unique opportunity to access on an average Sunday evening around 21 million people
and around120 million people during the Super Bowl in the U.S. alone. These figures speak for themselves
and illustrate why the league is able to attract some of the largest brands in the world including PepsiCo,
Microsoft, Hyundai and many more.
Our sponsors come from a spectrum of industries reflecting the league’s broad appeal. One industry in
which the league lacks an appropriate partner is the retail industry. Walmart share core values including
integrity, responsibility and strong family and community connections. Furthermore, Walmart and the NFL
fit well in terms of a business strategy, appealing to a broad set of consumers in the U.S.
Our sponsors have been able to access the many benefits of partnering with the NFL. Many of these
sponsors have seen direct impacts in the revenues of their respective companies as well as improving the
perceptions of their brands. Walmart will have full use of the NFL logos and shield to use for their
marketing as well as having preferential access to the NFL’s events over the course of the calendar
culminating with the Super Bowl at the end of the season. In addition the NFL is open to ideas from
Walmart on how we can maximise and deliver value to the sponsorship agreement.
The effectiveness of the sponsorship will be evaluated using the NFL’s own marketing division that applies
a variety of online metrics and analytics appropriate to measuring the impact of such a large scale project.
We have significant experience in this area after years of managing sponsors from every industry.
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2 Profile of NFL
2.1 Brief History of the NFL
2.1.1 The American Professional Football
Association was created in 1920
before being rebranded as the NFL in
1922. The league now consists of 32
teams divided into the two
conferences, the National Football
Conference (NFC) and the American
Football Conference (AFC).
2.1.2 Today the NFL has the highest average attendance of any professional sports league at 67,591
in 20131. In addition, 114.4 million people watched the Super Bowl in 20152 in the US alone
equating to roughly a third of the entire population. It also has seven of the top eight most
viewed telecasts in U.S. history3.
1 http://www.abs-cbnnews.com/sports/01/06/13/nfl-worlds-best-attended-pro-sports-league
2 http://www.ibtimes.com/super-bowl-ratings-how-many-people-watched-new-england-patriots-seattle-seahawks-game-1803116
3 https://www.washingtonpost.com/news/early-lead/wp/2015/02/02/super-bowl-xlix-was-the-most-watched-show-in-u-s-tv-history/
Figure 1: The NFL in 1922
Figure 2: Super Bowl 2015
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2.2 Mission, Goals & Objectives of the NFL
2.2.1 This has been taken from the NFL official website4
Mission
2.2.2 To provide fans, communities and partners with the highest quality sports and entertainment in
the world and to do so in a manner in line with the core values of the NFL.
Responsibility
2.2.3 Every member of the NFL community embraces the unique leadership role in society and
assumes the responsibility that comes with that role.
Respect
2.2.4 We embrace everyone regardless of status, title or background and celebrate the diverse and
opinions and perspectives that are a credit to the league. Every contribution makes us better.
Integrity
2.2.5 We demand accountability and fair play. We accept responsibility when we make mistakes and
work hard to make them right. We always look to make the right call irrespective of the external
pressures.
Responsibility to Team
2.2.6 As a team we support one another. The fans, the communities and those who organise and
manage the league are all on team and we celebrate our interdependence. We attempt to
operate in a manner in which our teams, players, fans and communities can be proud.
Resiliency
2.2.7 We continue to strive for excellence no matter what obstacles are presented. We aim to turn
losses into lessons and embrace any challenge ahead of us.
4 http://www.nfl.com/careers/values
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3 Description of the NFL
3.1 Venue Locations, Scheduling & Staffing
Venue locations
3.1.1 There are 32 teams in the league with every corner of the United States represented from New
York City to Seattle. The 2016 Super Bowl will take place at the Levi’s Stadium, home of the San
Francisco 49ers.
Scheduling
3.1.2 Each team will play 16 regular season games which equates to 256 regular season games in
total starting on the 8th September 2016. There are 11 post season games including the grand
finale of the Super Bowl taking place on the 7th of February 2017.
Staffing
3.1.3 The NFL itself employs around 20005 people not including the employees of each individual
team.
5 http://www.sportsbusinessdaily.com/Journal/Issues/2014/02/24/Leagues-and-Governing-
Bodies/NFL-staff.aspx
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3.2 Viewing Figures and Audience Profile
Viewing Figures
3.2.1 As mentioned previously the 2015 Super Bowl achieved an audience of 114.4 million viewers in
the U.S. alone. The Super Bowl continues to pull in viewers on an upward trend over the years as
Figure 3 shows.
3.2.2 The NFL continues to be supremely popular as it tops the yearly TV ratings chart in the U.S.
Figure 4 below shows its popularity during the 2013-2014 television season in relation to other
primetime shows. The NFL averaged a viewership of 21,528 million people.
1.1.1 Furthermore, in the fall of 2015 the NFL accounts for 21 of the top 25 telecasts for that time
period6.
6 http://adage.com/article/media/nfl/301353/
Figure 4: Most popular TV shows in the U.S.
Figure 3: Super Bowl viewers over the years
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Audience profile / demographics
Using data from http://www.slideshare.net/alanmtzr/nfl-fans-audience-by-gwi
3.2.3 In the U.S. 65% of adults say they follow the NFL in some form, with 56% watching game on TV
and 9% tuning in via the internet. It therefore follows that the NFL has a broad appeal.
3.2.4 It’s popular outside the U.S. as well where 38% of adults are fans with notable peaks in Mexico,
India and China. In 12 countries more than 1 in 3 adults are fans.
3.2.5 Majorities of NFL fans in America express a strong interest in music, food and films.
3.2.6 NFL fans in the U.S. are nearly 20% more likely than average to say they tend to buy brands they
see being advertised.
3.2.7 Figure 5 below shows a detailed analysis of the fans and consumers of the NFL with men
between the ages of 25-34 with high incomes scoring highest in each category. However, the
story this figure really illustrates is the broad appeal of the NFL scoring well above 50% in every
category in the U.S. for adults who are fans. This is provides an unparalleled opportunity for
businesses to reach the American people.
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Figure 5: NFL Consumers
3.2.8 80% of NFL fans are looking for the best deals and are savvy shoppers, in line with Walmart’s
core strategy of providing value to customers.
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3.2.9 Finally, looking at the diverse range of ethnic backgrounds that make up the NFL viewership we
can see from Figure 6 that the NFL has over 60% adults as fans in every ethnic category.
Figure 6: Ethnic Demographics
The NFL’s capabilities and experience in running the league
3.2.10 The NFL’s ability to successfully carry out a season of the league has been well established
taking the league to not only the number one sport viewed on television but the number one
show in any category.
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4 Compatibility of Walmart & NFL
4.1 Image Compatibility
Blue Collar Image
4.1.1 Walmart bases its strategy around cost leadership7. This low price blue collar image is reflected
within the NFL because, as stated above, 60% of low income and 67% of middle income adults
in the U.S. are fans of the NFL.
Family & Community Image
4.1.2 During his time as CEO of Walmart Mike Duke identified family and community as one of his five
key enduring values of Walmart8. This matches perfectly with the responsibility to team value in
the NFL mission statement whereby the NFL outlines its commitment to the NFL family and
community.
Integrity
4.1.3 Another key value outlined by Mr. Duke, and one of the five key values of the NFL. At the NFL we
look for accountability and responsibility reflecting the values taught to us by America’s most
popular game.
Responsibility
4.1.4 Again, this value is represented in the core values of both companies as per Mike Duke’s list
and the NFL’s core values. By making food healthier and the planet greener Walmart is showing
that in its position as a leading retailer it is acting in a responsible manner in line with its
position.
7 http://panmore.com/walmart-vision-mission-statement-intensive-generic-strategies
8 http://corporate.walmart.com/_news_/news-archive/2012/06/01/walmart-ceo-says-companys-
enduring-values-will-continue-to-drive-its-success-over-the-next-50-years
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4.2 Strategic Fit
Accessing Walmart’s Target Markets
4.2.1 First we must identify who are the main target
markets for Walmart. As touched upon above
Walmart reaches out to the lower and middle
classes in society9. The NFL is able to be used as
a communicator to these demographics with the
vast majority of them being NFL fans.
4.2.2 Walmart has a store in every city in the U.S. The
NFL has a team in most major cities in the U.S.
meaning that it reflects Walmart’s national
presence.
4.2.3 Walmart also has a broad appeal as it is not only the lower income demographics who value low
prices. 84% of shoppers have shopped at Walmart in the past year and over 100 million
customers have shopped its stores in any given week10. As shown in the description of the NFL
section, the NFL has a hugely broad appeal with over 50% of people in each category, be it
gender, ethnicity, age, or income bracket being fans.
9 http://essayturf.com/blog/market-segmentation-target-market-for-wal-mart/
10 http://www.freeonlineresearchpapers.com/wal-mart-target-customers
Figure 7: NFL Parade in London
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4.2.4 Finally, as figure 7 shows the NFL has popularity in countries other than the U.S. What is
particularly pertinent is that the top nations in chart are also where Walmart has stores.
Walmart has Best Price in India, Walmex in Mexico, Walmart China and Asda in the UK.
Figure 8: NFL popularity by country
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5 Sponsorship Benefits
5.1 Overview of boost to Walmart’s business
5.1.1 “An NFL sponsorship is a way to announce you have
arrived, it is the last mass audience vehicle among
American sports. - Frank Hawkins
How does sponsorship boost business?
5.1.2 Mars Inc. credits its NFL sponsorship with double digit
sales growth11.
1.1.2 As Figure 9 shows promotional material related to the
Super Bowl had a significant effect on consumer
purchasing behaviour.
5.1.3 On the day that the Hyundai sponsorship deal was
announced, General Motor’s, previous sponsor, stock fell
by 2.5%12.
5.1.4 PepsiCo uses its affiliation with the NFL to drive its
$66billion global business sales13.
11 http://www.sponsorship.com/IEGSR/2015/10/26/How-Sweet-It-Is--Mars-Sees-Success-From-
NFL-Partne.aspx
12 http://www.thestreet.com/story/13202491/1/gm-stock-retreating-after-hyundai-becomes-
official-nfl-sponsor.html
13 http://www.forbes.com/sites/aliciajessop/2013/02/03/pepsis-nfl-partnership-helps-the-brand-
achieve-1-billion-in-sales-annually/
Figure 9: Effects of Super Bowl Promotions
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5.2 Use of NFL shield & other logos
5.2.1 Walmart, as an official partner of the NFL will have
full use of the NFL shield and other NFL logos.
These can be used in adverts and any promotional
material.
5.3 Marketing opportunities at NFL events
5.3.1 The NFL runs a series of events across the year with some exciting marketing opportunities
within them. As an official partner of the NFL Walmart will have access to these opportunities.
Some of the main events and opportunities will be outlined below.
NFL Draft
The Draft is the process by which NFL teams select newly available
players for the upcoming season. The NFL draft of 2014 attracted
32 million viewers14.As shown in figure 10 promotional materials
for this event display the logos of all the official partners.
NFL Kickoff
5.3.2 The NFL kickoff marks the start of season where the Super Bowl champions of the previous
season play host to the first game with related festivities such as a pre-match concert. In 2015
the kickoff game attracted 27.4 million viewers.15
14 http://www.nfl.com/news/story/0ap2000000348839/article/nfl-draft-sets-ratings-record-with-
32-million-viewers
15 http://deadline.com/2015/09/patriots-steelers-ratings-nfl-opener-2015-tv-ratings-nbc-
1201521675/
Figure 10: Use of NFL logo
Figure 11: NFL Draft sponsors
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5.3.3 Hyundai currently have the main sponsorship rights
for NFL kickoff but as an official partner there will be
electronic signage around the stadium as well as the
opportunity to have a Walmart zone in the hospitality
section of the stadium. This will allow you to market
Walmart in any manner you see fit; previous
sponsors have invited patrons to play games with sponsor merchandise or vouchers as prizes.
The Super Bowl
5.3.4 The biggest event on the calendar, the Super Bowl comprises of the most successful team from
each division battling it out for the championship.
Signage Opportunities
5.3.5 If you look closely at Figure 13, above the screens
you can see Pepsi and Bud Light signs. These are
electronic signs and rotate with all the official
partners. There are signage opportunities all over
the arena as Figure 14 suggests with the entrance
for SAP.
Figure 12: Super Bowl 2014
Figure 13: Other Signage Opportunities
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Other Super Bowl Opportunities
5.3.6 The Super Bowl is not just about the game, there is a wealth of activities and experiences for the
fans to enjoy in the arena. These are just a few ideas as a flavour of what can be done, but we
encourage sponsors to have autonomy and create their own ideas of fun and engaging
activities.
“The Walmart Fan Gallery”
5.3.7 Similar to what Bridgestone have done in past, where Walmart can set up an area in the arena
where they offer activities or give the opportunity to exclusive behind the scenes media such as
interviews with players that the NFL can help coordinate.
The NFL Experience
5.3.8 The NFL Experience is a fan favourite that offers
dozens of activities for fans of all ages from arts and
crafts to agility and skills tests that NFL players carry
out. This is run in the week up to the Super Bowl
normally features partners in some capacity from free
sampling to providing a 60 foot tall toboggan ride.
The Walmart Lounge”
5.3.9 This is an area where Walmart can allow for sampling or connect with the company. This can
contain whatever Walmart thinks would be appropriate and fun, so the NFL can be quite flexible
to the needs of sponsors here.
Figure 15: NFL experience 2011
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5.4 Linking NFL rewards to loyalty schemes
5.4.1 Many previous sponsors such as VISA, Anheuser-Busch and Marriot have linked rewards such
as tickets to NFL events outlined above, NFL merchandise and other NFL related rewards. In the
case of Walmart this can be linked to the Savings Catcher or Luvs Club loyalty programs to
reward loyal customers.
5.5 “Walmart Interesting Fact of the Game”
5.5.1 Bud Light currently has the play of the game but something similar could be done with Walmart
with an interesting fact of the game, or a quiz question with the reward of Walmart vouchers.
5.6 Use of footage of games in advertising
5.6.1 Anheuser-Busch has recently negotiated the use of NFL footage in their adverts and we are open
to the use of NFL footage for Walmart advertising purposes.
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6 Media & Promotion Plan
6.1 Extent and type of media coverage
6.1.1 There will be a press release following a sponsorship agreement in order to officially announce
what will be a fantastic partnership for both sides.
6.1.2 One of the unique aspects of a partnership with the NFL, this constitutes why sponsorships are
so sought after, is that the media attention and coverage will, to an extent, take care of itself.
The reach and popularity of the NFL is such that any agreements in the past have featured
heavily on the news, websites, and forums.
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7 Sponsorship Investment
7.1 Investment of Other Sponsors
7.1.1 We look to give you a brief overview of what other sponsors have paid to be official partners in
the past and then recommend a level of investment based on this.
Pepsi
7.1.2 Pepsi paid for a 10 year deal paying between $160 and $200 million a year16.
Anheuser-Busch
7.1.3 In 2011, the NFL and Anheuser-Busch secured a deal of $1.2bn over a 10 year period equating
to $120 million dollars a year17.
Microsoft
7.1.4 In 2014 Microsoft paid $400 million dollars over five years equating to $80 million a year.18.
Hyundai
7.1.5 Hyundai secured a four year deal equating to around $50 million a year NFL19.
16 http://www.wsj.com/articles/SB1017339280423008000
17 http://www.bizjournals.com/stlouis/stories/2010/05/10/daily9.html
18 http://www.businessinsider.com/microsoft-nfl-surface-ipads-2014-9?IR=T
19 http://espn.go.com/nfl/story/_/id/13167821/hyundai-replaces-general-motors-official-nfl-
sponsor
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7.2 Walmart’s Proposed Level of Investment
Official Partnership
7.2.1 For the basic partnership agreement we would request an amount in line with Hyundai
commitment of $50 million a year for a five year term. This level of investment would secure the
benefits outlined earlier in the proposal.
Expenditure Guarantees
7.2.2 In line with the other sponsors we request that a further $100 million a year is spent on
advertising and NFL themed marketing. This money does not go directly to the league but helps
promote the league as well as the additional benefits that Walmart will gain through
advertising.
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8 Impact Measurement
8.1.1 Online tools allow for the analysis of large quantities of data and therefore constitute an
appropriate method. With all of these metrics it is essential to track changes of before and after
the NFL sponsorship or particular promotions. Any one of these alone will only provide part of
the picture; it is therefore to use a variety of metrics to show a more complete assessment.
8.2 Total Visits
8.2.1 Total visits to your website is a good starting metric for Walmart. Measuring changes to levels of
visits around timings of the NFL sponsorship will help measure the impact.
8.3 New Sessions
8.3.1 You can find this in Google Analytics, it tells you how many visitors to your website are new and
how many are recurring.
8.4 Social Mentions & Analytics
8.4.1 Social mentions show how many times Walmart has been mentioned on the internet. These can
be categorised into positive and negative mentions by analytical tools such as PPC analytics
and can therefore help measure brand perception as well.
8.5 Measuring User Engagement & Perceptions through Social Media
8.5.1 Tools such as TweetDeck and Hootsuite allow businesses to measure how active Facebook,
Twitter and Instagram accounts are. In addition Facebook also show how engaged users are by
using their metric “People Talking About This”.
