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Home->November/December 2007

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You see the banners at the racetracks and the decals on the hats and jackets of nearly every racer. Corporate sponsorship is a key marketing tool for all levels of the industry, from the dealers to the manufacturers. The riders depend on the support to keep racing, but what's the return for those writing the cheques?

Parts Canada Sponsorship

Mark Fries, marketing manager for Royal Distributing, says that for a national retailer, extensive sponsorship is "just natural." Royal Distributing is a sponsor of the CMRC national motocross series, the Royal Distributing Stoneridge KTM national motocross team and two of its own national snowcross teams.

"It's more than just name recognition," says Fries. "The people that attend these events are our customers." Fries says that showing the Royal Distributing name on the track and in the broadcasts sends a strong message that they care about the sport. "The younger buyer wants to shop somewhere cool," he says. "If you can generate excitement with news of your team, that will bring people in."

While Royal Distributing does contribute to intermediate riders, the company focuses its sponsorship on its own teams. "The exposure of a big national team gets you magazine covers, and photos everywhere of your guys on the podium. It creates a willingness to shop at our stores," says Fries. Running a team also helps him build co-sponsorship relationships with suppliers and manufacturers. "Working with Ski-Doo, we've won nationals in pro and semi-pro. It was a boon for them and for us - we won the title, and we did it with their support."

Getting the best value from a national sponsorship plan can be a big job. Companies like Parts Canada and KTM have staff whose role is to not only to arrange sponsorship, but to be actively involved in overseeing teams and events. Shauna Szewczuk, marketing coordinator for Parts Canada, helps oversee all facets of sponsorship for Parts Canada. "Our motto at Parts Canada is, 'We support the sport' and Parts Canada truly does. Whether you see our banner, hear our name or watch our products in action we have everything covered."

As a distributor, Szewczuk is more interested in promoting Parts Canada products than her company itself. "We focus on promoting our house brands primarily. Brands such as ICON, Thor, Alpinestars and HJC Helmets are just a few to name."

Szewczuk is involved in almost every aspect of their title-sponsor events. "With the money that we spend it's crucial that we're there. I'm the first one in and the last one out." She takes the same care with her riders by observing their relationship with other riders, how they act with the public and media, and the care they take with their pit area, decals and gear. "You want someone that's going to win, obviously, but it's more than just winning. It's the whole package. When they're not on the track, I'm still watching them."

Andy White, race manager for KTM Canada, also spends much of his time out in the field working with the racers. "I'm the go-to guy during events," he says. "I help them find the best lines on the track, act as interpreter with the technicians and work with the riders to make their motorcycles perform better." White also brings in other sponsors from outside the industry, such as Aldo and Stoneridge.

On top of his pro teams, White works with more than 70 regional dealers to sponsor 150 young amateurs. "When we find a kid who's talented, wellgroomed, can talk well about the product and doesn't get in trouble, we'll get him a deal on a bike, give him a jacket and hat, brand him all orange [KTM's corporate colour] and send him out racing." But fundamentally, White says, his job is to get KTM bikes on the podium. KTM's market share is increasing in Canada - it recently reached the #3 spot behind Honda and Yamaha. "Now that we have the motorcycles at the dealership, we have to prove that they are winners." White says his dealers tell him that KTM's racing successes are a big help in convincing a buyer to choose their bike.

Florian Burguet, marketing manager for KTM Canada, says that while gauging a return on sponsorship is not a science, he believes race sponsorship is where everything starts. "You race Sunday and you sell bikes on Monday," he says. Burguet says that more and more local dealers are getting involved in national racing because they are seeing benefits on a local level. "In the end, the ratio is not so expensive, because you get more support from the manufacturers and you can go and find bigger sponsors. When your local guy is a top national racer, it pays off."

Craig Fortune is one such dealer. His Kamloops-based store, RTR Performance, has reached into national racing, sponsoring ten professional riders, including Cory Graffunder, a current off-road champion. "The racers, the mechanics, the whole team can act as salespeople out in the field. Not that they're making sales, but they are representing who we are at RTR Performance and where we're going." Fortune adds that bringing his national-level talent to Kamloops helps his local riders in their training.

While he admits that maintaining a national team is a big commitment and requires a lot of resources, Fortune has more reassuring words for smaller dealerships that are just getting started with sponsorship. "It costs a little bit of time and money, but it's not too hard. It's a great way to give back and to stay current with our sport." Fortune recommends getting help from manufacturers, and choosing riders with a good attitude who won't "throw their bike" if they lose.

"They represent the shop at all times, so even if they're frustrated they have to hold it in. They need to run the decals, and their bikes have to look good." Making all of this clear to the rider at the beginning of the sponsorship contract is the best way to keep it simple, he says. "I think dealers worry that overseeing the riders will be too much trouble," he says. "But if you set out criteria - agree that you will do this if the rider does that - it's very clear-cut."