Aaron’s has boosted its sports marketing budget by 10% about $1 million a year inking deals with the University of Alabama, NASCAR [Michael Waltrip Racing’s #00 Toyota] and Philips Arena, home to the NBA’s Atlanta Hawks and NHL’s Atlanta Thrashers. Aaron’s, which has seen its sales grow during the Great Recession, leases and sells residential and office furniture, consumer electronics, and home appliances and accessories. With an 18% increase in customers compared with a year ago, Aaron’s has the cash flow to spend on sports sponsorships, which the company has found to be a very effective way to reach its target market: households with annual incomes of $50,000 or less. Aaron’s has existing sports partnerships with Georgia Tech, the University of Texas and NASCAR’s Michael Waltrip Racing. “Companies continue to tighten their marketing dollars,” said William Chipps, senior editor at IEG Sponsorship Report. “It doesn’t surprise me that Aaron’s has ramped up [its sports marketing]. They’ve been involved in sponsorships for years. They’ve played a lot in motor sports.” Aaron’s sponsorship with NASCAR, in particular, “gives them a chance to directly communicate with people who tend to be their customers,” Chipps said. IEG has seen other “value retailers” increasing their sports sponsorships, as the economy has sagged, to more effectively reach their customers, he said. “Dollar General has also been increasing its involvement with motor sports, too,” Chipps said. And Aaron’s is looking for even more sponsorship opportunities, Aaron’s CEO Robin Loudermilk said. “A lot of opportunities are coming our way and we’re taking advantage of it to increase our exposure,” he said. “Sports marketing will be a major part of marketing in our foreseeable future.”(in part from the Atlanta Business Journal)(10-19-2009)
