Minnesota Timberwolves Alcohol Industry Overview

1
Minnesota Timberwolves Alcohol Industry Overview

• Dan Elliot
• Mary Ellen Grannan
• Praveeta Panday

December 9, 2004
2
Alcohol Category Research

• 2 main potential alcohol sponsorship groups Beer
  Wine/Spirits
• 1) Beer
• Top 2 players
• Miller
• Bud
• Extremely saturated market
• Beer consumption decreases from age 55 on
• Timberwolves - average age 44
• Hispanics are most likely to drink beer
• Timberwolves demographics less than 5 hispanics
• Difficult to develop novel, effective ideas
• suggestions will only facilitate relationship
• Decided to pursue other possibilities

3

• 2) Spirits
• - 195 billion liters consumed in 2003
• - relatively untapped resource large amount of
  possibilities
• - Limited general sponsorships in professional
  leagues, currently
• - tremendous potential focusing on this group
  versus beer
• - often avoided due to league imposed sponsor
  restrictions (i.e. Co-branding), can work around
  them
• - 4 Major industry players
• Bacardi USA
• Brown Foreman,
• Allied Domecq
• Diageo

4
Our Choice- Diageo

• Diageo Company Facts
• Largest producer of alcoholic beverages in the
  world
• 27 billion servings of spirits sold this year
• 2 increase over previous year
• Ranked 6th amongst peer group in Total
  Shareholder Return
• Higher than Anheuser-Busch, Pepsi, Coca-Cola
• 33,000 employees
• 5.3 billion in 03 sales in North America
• 16 billion in worldwide sales
• Industry leader in market capitalization
• 2000 net income growth in 03
• Distributed in 200 countries worldwide

At Target Center capacity, could serve each fan 1
drink/game for 35,000 seasons
5

• Why Diageo?
• Vast diversity of brands/products
• 17 of the worlds top 100 PREMIUM distilled
  spirits brands worldwide
• Premium brands target markets match the
  demographics of the Timberwolves
• affluent, higher than average income, educated,
  middle-aged, male fan-base
• Multi-branding opportunities by focusing on
  parent company
• Vs. particular brand
• Flexibility available to Diageo to leverage
  particular brands at particular times throughout
  season
• Opportunity for TImberwolves to utilize brand
  relations to increase fan base
• Cross-branding capabilities
• Promotional opportunities with existing corporate
  sponsors

6
Timberwolves DIAGEOA Perfect Blend
7
Benefits to DIAGEO

• Exposure to fan base resembling target market
• 77 of fan-base are adults 21-49
• Median income of 62,000
• Multi-branding/ Cross-branding capabilities
• Flexibility available to DIAGEO to leverage
  particular brands at particular times throughout
  season
• Promotional opportunities with existing corporate
  sponsors
• Means to move product
• Hospitality opportunities
• Involvement in community
• Positive image portrayal
• Means to promote social responsibility

8
Methods of Activation Utilizing DIAGEO Brands
Baileys is the worlds 1 liqueur brand Baileys
is the worlds 6 premium spirit brand
Smirnoff is the worlds 1 premium vodka
brand Smirnoff is the worlds 2 premium spirit
brand
Captain Morgan is the worlds 2 premium rum brand
9

• Smirnoff ICE Cold Play of the Game
• 2 channels of promotion
• 1) local area Timberwolves network partners
• 2) In arena scoreboard promotion
• Involves a Timberwolves player committing an
  extraordinary play/maneuver resulting in an
  aspect of the scene becoming ICE and subsequently
  shattering away
• Shown at all home games on scoreboard and all
  network telecasts

10
Smirnoff ICE Cold Play of the Game
11

• Smirnoff ICE Zone
• Utilize Timberwolves relationship with local bar
  to offer promotional event sponsored by Smirnoff
  ICE
• Select road games
• Smirnoff ICE exclusive beverage of the event
• Extensive Smirnoff ICE signage
• Giveaways (i.e. TImberwolves tickets)
• Appearances by TImberwolves dance team

12
SMIRNOFF ICE ZONE
13
Backcourt Cafe

• Part of Cambria Lounge
• Throughout Target Center Concourse Coffee bars
  (co-branding with coffee sponsor)
• Significant presence within arena
• Coffee house setting with a Baileys twist
• Offer various specialty coffee/baileys drinks
• Minnesota Mocha
• Twin Cities Roast
• Crunchs Cappuccino

14
Baileys Fun Fact Over 50 million gallons of
milk, from 40,000 cows on1750 farms go into the
making of Baileys Original Irish Cream each year
15
Captain Morgan

• Captain vs. Crunch
• Sword Fight, Dunk Off etc., as part of
  in-game promotion at select home games
• 2 fans selected 1 as Crunch supporter, 1 as
  Captain supporter
• Winner receives Timberwolves/Captain Morgan prize
  pack
• Play Against the Captain
• Fans register to play against the Captain before
  half-time
• 1 lucky fan (21 and up) is picked to play against
  the Captain during half-time in a 5 min game
• If they can make 3 baskets they win a Captain
  Morgan Prize Pack

16
Captain
Crunch

• Vs.

17
Play Against the Captain Prizes
18
Captain Morgan

• Captain Morgan Designated CAPTAIN Of the Game
• Fans who will be designated driver for their
  group enter a ballot as they enter the arena to
  be the Captain Morgan Designated Captain of the
  Game.
• At the end of the 1st quarter of every home game
  one fan is selected and recognized as the
  Captain Morgan Designated Captain of the Game
• Fan will receive Captain Morgan prize pack along
  with free non-alcoholic beverages (soda) and be
  entered for a chance to come back to the last
  home game of the season and play for a chance to
  win a Toyota 4-Runner
• 3-4 names will be drawn after the second to last
  home game and those individuals will receive
  tickets to come back to the final home game and
  play a game of Captain to win the 4-Runner

19
Captain Morgan Game
20
Captain Morgan Designated CAPTAIN Game Prize
21
DIAGEO Corporate Hospitality

• DIAGEO Suite
• Exclusive suite solely for DIAGEOs use at all
  Target Center Events
• Can be used to entertain clients, reward
  employees, etc.
• Can be utilized by any of DIAGEO brands

22
DIAGEO Corporate Hospitality

• DIAGEO Day
• Designate particular off day as DIAGEO Day
• Select day when Timberwolves are not playing a
  game
• Special activities set-up for DIAGEO
  employee/clients
• Basketball game (DIAGEO specific jerseys)
• Player appearances
• Special hospitality (Club Cambria)

23
DIAGEO Day
24
Other Activation Points

• Corporate Events
• TV and Radio
• DIAGEO/ Player Golf Tournament
• During the off-season
• Foursomes with 1 player per team
• Special Timberwolves/DIAGEO prizes for winner
• Use of LED for Designated Captain promotion
• Game night promotional giveaways (Smirnoff key
  chains, posters, hats, etc.)
• Ticket purchase incentives (free Captain Morgan
  merchandise/ discount on DIAGEO products with
  purchase of ticket package)
• Captain Morgan Tiki Bar Beverage Carts

25
Captain Morgan Tiki Bar
26
Signage and LED Usage
27
DIAGEO

• Turning everyday events into special occasions.