Financial Services Giant Grabs Northeast Naming Rights

Financial services giant Citibank North America has stepped up the ante for market share, name and brand recognition along the USA's eastern seaboard. As the country’s largest financial institution these announcements have industry implications and strengthen the trend of corporate involvement in high profile naming opportunities in the non-profit sector.

In what should be seen as one of the boldest moves of acquiring naming rights, Citibank just announced two blockbuster agreements on November 9th and 10th.

The first deal involves the Wang Center for the Performing Arts in Boston for about $36 million. The fifteen year agreement should be seen as more than just a giant load of cash landing on the doorsteps of the non-profit arts group.

The next day on November 10th, the multi-national banker / financial services giant, closed a deal to re-name Shea Stadium in New York, home of the baseball playing New York Mets. An official announcement pegged that deal to be close to $20 million.

But look at the way it plays out on the corporate stage. On the Citibank web site the announcement about the naming deal with the professional baseball team is labeled as a Strategic Sponsorship.

While the very next story in the Citibank news archives lists the naming rights agreement for the Wang Center under the title of, ”Supporting our Community”. Isn’t that interesting?

Why is one thought of as a strategic decision that suits the corporate mandate and the other a gesture of goodwill?

The naming rights deal in Boston sends $36 million to the Wang Center and just $20 million and change to the New York Mets to name the stadium. Almost twice the dollar amount yet the press release from the corporate office downplays the deal to the non-profit group.

According to Boston Mayor Thomas Mennino the involvement of Citibank will provide a needed boost to the city’s theater district. Survey results suggest that the arts community brings in over $6 million in tourism dollars to the area every year.

Now here is where it gets interesting.

Citibank just opened its’ first office at 491 Bolyston St. in Boston in October 2006, quickly followed by a second location at 100 Cambridge St.. How about that? Just in time to welcome new customers right after the naming rights deal was announced. Good planning on the part of Citibank.

For those that know that part of the country, Citibank is doing battle with its’ international rival Credit-Suisse and what used to be called Credit-Suisse First Boston. Taking a page from the competition, the New Yorkers at Citibank decided on a strategy that brings them into a dynamic and wealthy market through the side door and with a very big splash of publicity.

The soft sell announcement to the press about the commitment to the Wang Center is more like a thin veil that shrouds the intensive drive to capture a slice of market share for Citigroup’s banking and especially the very profitable wealth management division. And the Wang Center is happy to oblige and be a part of the equation.

So often non-profit organizations go searching for a naming rights deal only to find that the prospective partners in local business are already tied up in financial commitments or do not perceive the value of the trade off of cash for higher brand name recognition. Enter the outsider. Companies that stand to gain substantial market share and make the financial commitment pay off in the long run, include consumer products, financial services and high tech firms. How long before cash rich oil companies and Google step into the naming rights game?

Here are just a few examples of big ticket naming rights deals done this year.

On October 6th of this year, Honda stepped up and signed a deal to have their name on the hockey arena in Anaheim, California. Financial details not disclosed.

In August, Chevy Chase Bank signed on the dotted line with the University of Maryland to name the football stadium on campus, also a $20 million naming rights deal.

The biggest corporate naming deal of the year so far was on the west coast at Stanford University where the Business School received a gift of $105 million from the founder of Nike. The Knight Graduate School of Business has been named in appreciation of his generosity.

The Dell Foundation made a $50 million gift to the University of Texas back in May, 2006. Three new medical facilities will bear the Dell name.

Boston and New York on the share-of-market radar screen

The high profile venues in Boston and New York that will soon be wearing the Citibank name and corporate colors, cover both ends of the marketing spectrum.

In Boston, a city I like to think of as higher education heaven, you find one of the highest concentration of not just university undergraduates but also the post-graduate men and women who will be soon be filling the roles of the next wave of doctors, lawyers, engineers, high tech brainiacs and a host of other well paying jobs.

The long term formula to make a naming rights deal pay off is about getting involved in the community. Working to establish relationships with new customers and then cross-selling them other products and services, with a strong emphasis on growing market share, retaining clients while the organization builds up the brand name.

Then take a moment and think about what Citigroup has been able to accomplish in the Big Apple itself, the proverbial home of the media and national attention.

Landing a deal to re-name Shea Stadium and home of the New York Mets baseball team, Citigroup has pulled off a national advertising coup, not just for the present, but for the length of the naming rights agreement.

Baseball is at an all-time high tallying more than $5 billion in revenue last season with no let up in sight. Not to mention that the Mets have built a contender for the National League East division. Slap on the Citibank name in the upcoming stories about the team, the drive-by benefits of the casual observer even before you get to the in-stadium marketing efforts, this is a sweet deal in the hyper-competitive financial services market.

Making a decision to choose a naming rights presence is about marketing. It’s a strategic choice taking into account the current marketplace and projecting forward over the term of the naming rights agreement.

Emerging Trend for Non-Profit Naming Deals

The news of the Citibank naming deal in Boston should be considered a benchmarking type of event within the non-profit sector. We know that the commitment of corporate dollars towards a naming rights presence is driven more by marketing objectives than philanthropic virtues. That’s ok. As the old saying goes, “…walk a mile in their shoes….” as you try to develop your shortlist for probable naming partners.

Article Source: http://www.content.onlypunjab.com

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