Holden’s exit from local manufacturing results in deeper commitment to grassroots sport
Faced with a backlash from the Australian community about its decision to cease local manufacturing, the general manager of marketing for Holden has revealed that moving money into grassroots sports sponsorship was a key part of the car maker’s strategy to reinforce its ongoing commitment to Australia.
Emma Pinwell, general manager marketing, brand and media strategy at Holden told the Mumbrella Sports Marketing Summit the company faced a major communications challenge following its decision to end Australian manufacturing.
“The biggest grassroots program we are involved in is called Holden’s Home Ground Advantage, so that’s a program we are committed to for 10 years – it’s a $5m commitment to grassroots sport, ” Pinwell said.
“We started the program in 2014 and it was at a time when Holden had just announced pulling out of manufacturing in the country, which wasn’t news that went down very well in Australia, as you can imagine, and we have been trying to deal with that ever since.
“A lot of people thought that meant Holden was pulling out of Australia all together. This program was announced to show commitment to the communities and to Australia that we have been here in Australia as Holden for the long term.”
Pinwell: “People had fallen out of love with the Holden brand”
Pinwell admitted that the perception of the brand had come under pressure as a result of the decision.
“People had fallen out of love with the Holden brand, it was an iconic brand in the past. It is sort of steeped in traditions of old Australia and we really need to start connecting again. Talking with TV ads is one way to do it, but I think you can actually connect with people at a community level.”
Under the scheme, sporting groups can apply for grants ranging from $1000 to $100,000 under the scheme.
Andrew Purchas, co-founder of the of the Pride in Sport Index and vice president of ACON, said small amounts of financial support from brands could make a big difference at the grassroots level.
Purchas said his own experience with Bingham Cup and the Sydney Old Convicts gay rugby club had shown him how far money went and that corporates had seen a fundamental change in the way they wanted to promote diversity.
“A little bit of money goes a long way,” Purchas said.
“The dollars they need to spend activating that sponsorship is significantly less than you would otherwise.”
Patrick Walker, chief executive officer of the Australian Sports Foundation, which allows corporates to make charitable donations to sport said direct investment in a sport was not the only way to go about grassroots sponsorship.
Walker: working with the Australian Sports Foundation allows marketers to access their CSR budget for sponsorship
He said companies wanting to take their brands into grassroots sport can access CSR budgets rather than marketing budgets if they support sports through the Australian Sports Foundation, which allows support to be classed as a donation.
“All of you who represent brands will have a marketing budget and marketing budgets are under pressure,” Walker said.
“One of the advantages of working with, say, the Australian Sports Foundation is that you can access your CSR budget. But connecting that spend with the same sport you might sponsor at an elite level it actually makes your money go further and it’s also very good at engaging employees in what you are doing.”
He said that corporate support for sports at the grassroots level was also vital to continue to battle against obesity and get Australians of more ages more active.
Interesting that Holden think that by throwing a bucket of cash at sponsorship for sports that Australians will think Holden has a commitment to Australia. Their commitment to Australia was shown by employing Aussies and manufacturing Holdens (proper Holdens, not Korean junk) here. Once the factory closes down their sponsorships will demonstrate no more commitment that Marlboro or Bensen & Hedges used to for motor sport or the cricket.
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