"Alltech, the Nicholasville-based global bio-technology company whose major markets are in dairy, beef and poultry, has launched a campaign to quell concerns among staff and clients about the company's $10 million investment as primary sponsor of The Alltech FEI World Equestrian Games Kentucky 2010 in Lexington."This was very much a break with tradition in our industry," explained Alltech Global Marketing Director Catherine Keogh, speaking by phone from her office at Alltech's European headquarters in Dunboyne, Ire. "You just don't have feed industries, supply industries, doing this type of sponsorship. For people to come out and do something a little different could be met with a little confusion."
Other than the fact that Alltech is based in Kentucky, it might seem a stretch for the company to sponsor a global equestrian event. Alltech's equine-related business is relatively small in terms of overall sales. And some wondered why a company that engages primarily in business-to-business sales would need to promote its brand among consumers. "When you look a little bit deeper, however," said Keogh, "and you consider what the Alltech brand represents and what the Games represent, there are a huge number of common points. The Games are global and Alltech is very much a global brand. While the Games are a global championship, there are all of these local activities tied into that - very much the case with Alltech as a global brand operating in 85 markets around the world, and the World Equestrian Games is the only international sporting event or competition involving an animal. And Alltech is all about the animal and all about performance. We like to think of excellence in everything we do," she said.
Prior to the FEI World Equestrian Games, Keogh noted, Alltech has not engaged in any major sponsorship. "Experts in sponsorship said to us that the first audience that we need to get on-message is our internal audience. A lot of the media picked up on the $10 million figure, and that is a lot of money in an organization that is concerned about being as cost-efficient and as cost-effective as possible. So there have been some questions as to whether this is the best use of sponsorship dollars."
Under the supervision of Keogh, a 16-year veteran of Alltech, the company is building its communications and marketing strategy around the idea of "passion for performance," which she said simultaneously supports the message of the company and the Games.
An aim of that strategy is to extend the company's message beyond suppliers to reach farmers. "We hope this will be a platform for moving on to that next level of marketing directly to the farmer," she said.
An estimated global audience of 460 million tuned in to the 2006 FEI Games in Aachen, Germany - a four-fold increase over 2002. Keogh said the company views the opportunity to repeatedly broadcast its message and logo worldwide during the 2010 Games as an efficient way to build its brand at the farmer level, "so that when we begin advertising more directly to them, they will have become familiar with the brand."
Keogh reiterated that another of Alltech's motives for sponsoring the Games should be obvious to many Kentuckians who know the company's president and CEO, Pearse Lyons, to be one of the state's leading goodwill ambassadors. "In fact," she observed from her office in Dunboyne, "I'm looking out my window now, and there are four-plank fences. It looks almost like our facility right there (in Kentucky)."
In a recent interview with Business Lexington, FEI Secretary General Michael Stone, a former Alltech client, spelled out an organizational vision to make equestrian sports more accessible to a broader audience. Keogh said Stone and other FEI officials, aware of the company's presence in 85 countries, were thrilled with Alltech's decision to sponsor the 2010 Games.
Are there concerns about Lexington's ability to host the 2010 Games? "No. None at all. And I really mean that," said Keogh. "Nobody does this sort of event like America does. The Horse Park is beautiful. We have enormous confidence in the team. And you've got (World Equestrian Games Foundation chairman) Jim Host, who has such a great track record."
She added that monitoring planning and preparation for the event is in Alltech's interest. The company will offer support when and where it is needed to ensure that the city and region are ready in just under four years when hundreds of thousands of visitors and media speaking a vast array of languages will descend on Central Kentucky.
While Alltech's staff and clientele acclimate to the company's sponsorship role, the company's top executives are looking ahead, beyond 2010. Keogh revealed that if all goes well in 2010, the company likely will remain as sponsor for the 2014 Games. A site for that event has not yet been selected.