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New York Times: FedEx Seeks Home-Field Advantage with Potential Customers

December 2, 2003- The FedEx Corporation is for the first time extending its national marketing initiatives with football themes to the local level, sponsoring elaborate events for prospective and current customers at National Football League stadiums in five big markets.

The free events, called the Open House program, last about three hours each and are held on weekdays when there are no games, so the stadiums can play host to the sponsored events. The 400 or so people who attend each Open House are offered attractions that include behind-the-scene tours of the stadiums, fields and locker rooms: appearances by players, who mingle and sign autographs: and even massages like the pros get – perhaps a way of bringing to life the current FedEx advertising theme, created by BBDO Worldwide division of the Omnicom Group in New York , which is “Relax, it's FedEx.”

Of course, the attendees also hear copious pitches from representatives of FedEx proclaiming the benefits of the company's express, freight, ground, customs-clearance and other services.

The events, with a multimillion-dollar budget, are being created by Velocity Sports & Entertainment in Wilton, Conn., the FedEx sponsorship-marketing agency of record for the last decade. The first Open House was held in Cleveland on Oct. 30, with a second one in Boston on Nov. 6. A third is scheduled for tomorrow, Dec. 3, in Chicago. Two more are planned for this initial round, in Houston, on Dec. 17, and in Seattle, in mid-January, replacing one that was to have been held in San Francisco on Dec. 9.

The program is indicative of the growing interest among major marketers like FedEx in increasing their efforts on the realm of event marketing. The once-prosaic tactic, formerly symbolized by trade shows, is taking on more ambitious trappings to create closer ties with consumers at a time when traditional advertising is widely perceived to be losing its ability to gain attention.

“Its obviously a very cluttered commercial space out there,” says Kevin Demsky, managing director for sports marketing at FedEx in Memphis . “This is a fun, unique, creative way for our individual operating companies to communicate their business messages to our consumers.”

“We're not going to stop traditional advertising to direct marketing,” he adds, “but these events are a powerful way to leave a lasting impression with the right decision-makers” - everyone from shipping clerks to chief executives who have a say in how a company chooses its delivery service.

The open houses are designed to complement and support the FedEx role since 2000 as the “Official worldwide delivery service sponsor” of the N.F.L., which the company recently renewed for an additional three years. Other elements of the sponsorship range from running commercials during the Super Bowl – FedEx will be doing so again Super Bowl XXXVIII on Feb. 1 – to underwriting a weekly honors program for players called the N.F.L. Air and Ground Awards.

“We look for sponsorships with what we classify as leadership properties, “Mr. Demsky says, “a select few we can leverage and activate across the company.”

That way, no only do they involve potential and existing customers “in a one-to-one format,“ he adds, they can also “have an impact on our salespeople and the rest of our employee base.”

“One thing we decided this year was that while it's easier for us to leverage the N.F.L. on a national basis, “ Mr. Demsky says, “we wanted to focus on how to fine-tune our investment so it has returns for us in specific market places.”

Out of that came the idea for the Open House program, he adds, which is being tested to help “show how FedEx is an integral part of the local business network” in each of the five cities.

The cities are among those that David Grant, co-founder and principal at Velocity, describes as “key markets” for FedEx, and the people who are invited are “a nice blend of customers and prospects” who the company and agency hope are eager for “a new experience.”
“How often do you get to go into a locker room, to meet a quarterback?” Mr. Grant asks. “To a large extent, the power of the N.F.L. is at the local level. People are 49er fans, Jets fans, Patriots fans more than they are football fans.”

“We're using that affinity,” he adds, “so those who are invited will say: ‘FedEx has brought me an opportunity can't buy. Here's a company I can do business with.'”

These sponsored events also “lend themselves better” than traditional advertising, Mr. Grant says, to being monitored and measured for results and effectiveness. The reason, he adds, is that the people who are invited “are handpicked customers, and FedEx knows what they're shipping before and after” they attend the Open House.

And the analysis of the FedEx usage patterns by the attendees is already under way, he adds.

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