Minnesota Timberwolves Sponsorship Project

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Minnesota TimberwolvesSponsorship Project

• Category Telecommunications
• Company Qwest Communications
• Presented by Nick Long Devon Bissell

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Industry Analysis
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Telecoms Major Companies

• VERIZON
• BELL SOUTH

• QWEST
• SBC

Collectively, these companies have a combined
share of 55 of the nations wireline spending in
the U.S., including local and long-distance
service revenues.
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Coverage Area
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Industry Profile

• 96 of all households have choice of at least two
  local carriers
  
• (FCC data)

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Industry Profile

• 86 of U.S. consumers use a landline as their
  primary phone, while only 14 use wireless phones
  as their primary phone.
  
• (In-STAT/MDR, Feb 2004)

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The Trend

• Currently, industry analysts say that a shift
  from wireline to wireless usage is likely to
  accelerate.
  
• However, analysts also say that strategic
  marketing efforts, bundling strategies, and
  strategic investments in other technologies help
  telecom companies stay in the game!

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Customer Analysis
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Household Spending

• Although slight, the majority of household
  spending is still spent on wired services
  

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Customer Loyalty Survey

• 90 of respondents would keep wireline service
  despite ability to move phone number to wireless
  carrier.
  
• (Standard Poors Equity Research, Dec 2003)

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Customer Loyalty Survey
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Company
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Why Qwest?

• Successful, Equitable company
• Due to the mass Coverage area, willingness to
  sponsor is higher
  
• Quality and quantity of service is better and
  more, compared to competitors
  
• Currently sponsor Utah Denver

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What does Qwest expect?

• All proposals are evaluated against Qwest's core
  
  
• sponsorship objectives and criteria
• 1. Return on Investment Sponsorship
  opportunities should provide solid returns for
  Qwest and the community or organization.
  
• 2. Showcasing Qwest As a telecommunications
  leader committed to enriching the future of our
  customers, sponsorship opportunities should
  provide Qwest with an outlet to communicate our
  message and product benefits.

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Proposal

• Qwest Challenge
• Sign up for local/long-distance/internet service
  during TV telecasts
  
• If not satisfied with service after four weeks,
  money is refunded
  
• If service is retained for 6 months, receive two
  tickets to T-Wolves home game the following
  season
  

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More Proposals

• QWESTion of the Game
• Part of Challenge
• Qwest customers can answer trivia question via
  phone or internet
  
• Easy 1 pt Med 2 pt Difficult 3 pts
• Top 100 pt winners at end of season
• Drawing to win grand prize Four (4) lower-bowl
  season tickets for upcoming season
  

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Wolves on a Qwest

• In conjunction with Qwestion of the Game
• Percentage of Qwest monthly bills goes towards
  this program (1)
  
• T-Wolves match dollar amount
• Fit with each organization
• Opportunity to be seen/heard in community
  (current or new program)
  

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Why Qwest should invest!
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Value to Qwest

• Total Market Size (T-Wolves fans) 3,150,680
• X 1 sign up rate x 1
• Potential new customers 31, 506
• Average Monthly Bill x 50
• Potential Revenue for Qwest 1, 575, 340
• Signage within arena also included in
  partnership
  

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Why Qwest should Invest?

• TDS Metro com sponsors both the Minnesota Wild
  and the Minnesota Vikings
  
• One of XO Communications main telecom areas is
  Minnesota, but they have yet to gain sponsorship
  with any Minnesota sports team. (Golden State,
  Utah)

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Competitors in NBA

• SBC Communications
• Dallas
• Houston
• San Antonio
• XO Communications
• Utah
• Golden State

• AOL for broadband
• Boston
• Washington
• Bell
• Toronto

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Benefits for Qwest

• Transfer Brand Equity
• Drive Traffic/Enduce Trial
• Need to give people reason to not switch to
  wireless
  
• Exposure of product/service benefits features
• Boost Sales
• Strengthen Corporate Image
• By association with T-Wolves
• Reach Targeted Audiences
• T-Wolves fans in young demographic that is
  typically hard to reach

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Benefits for T-Wolves

• Association with successful, equitable firm
• Enduce trial Get people to experience
  excitement of Timberwolves basketball
  
• Partnership within community
• Opens door for future opportunities (i.e.
  community service Wolves on a Qwest)
  
• Drive consumers to arena
• Concession, merchandise sales
• Increased revenue