Lane Cardwell

Tour de Burrito

I probably should have waited more than a few days after saying that LTOs were problematic before praising one.  To ease my conscience, and not look so foolish, I will claim that it is really a sponsorship, and not a LTO, even though there is a special burrito involved.  Chipotle looks like it has the potential to score big with its sponsorship of the Garmin-Chipotle cycling team which is now competing in the Tour de France.

I have always been a little suspicious of the payback on sponsorships where the most obvious sign of your company's involvement might be a logo on a car, or a patch on someone's uniform, and a few special appearances.  And all too often the only connection between the sponsor and the sponsored is a too-obvious desire to sell more product, whatever that product might be.  However, this tie-in looks like a perfect match for Chipotle. Or, as your head of marketing would say, "Great brand alignment."

A recent news article makes the relationship between cycling team and burrito restaurant more than clear.

The team is making its first appearance at cycling's pre-eminent event while voluntarily adopting one of the strictest anti-doping monitoring programs in the sport. For co-sponsor Chipotle Mexican Grill, which prides itself on using only hormone- and antibiotic-free meat, the marketing deal gives the restaurant chain a vehicle to take its additive-free ethos to the world stage.

"This is a team that's very vigorous about their drug testing and keeping their bodies clean, and that's very much our philosophy," said Jim Adams, Chipotle's executive marketing director.  Garmin-Chipotle is one of at least four cycling teams that have stepped up efforts to go beyond the doping monitoring programs of the International Cycling Union. The team works with Agency for Cycling Ethics, which randomly tests each Slipstream-Chipotle cyclist every two weeks -- 20 times more than required by the governing body.

With the dissolution of the Discovery team, Garmin- Chipotle is in the running to be "America's Team" in this year's Tour de France. The only other U.S. team in the tour is Team High Road, the former T-Mobile team that's now owned by telecommunications executive Bob Stapleton.

Chipotle's sponsorship of the team started small, after team director Jonathan Vaughters approached Chipotle CEO and founder Steve Ells three years ago with the idea of spending around $10,000 to support the team.  Ells, an avid cyclist, quickly agreed, and soon the restaurant chain realized the benefit of being associated with what Adams calls "an extremely loyal, physically active" demographic.

Chipotle boosted its funding to co-sponsorship level last year, making it the largest sports marketing deal the restaurant has undertaken. Chipotle's Adams declined to discuss financial terms other than to say it is "significant."  Full title sponsorship -- a notch higher than Chipotle's involvement -- of a cycling team reportedly costs an average of $11.75 million.

Chipotle so far has limited its marketing of the team to ads in cycling magazines and rider store appearances along the Tour of California.  But the company expects to ramp up marketing efforts during the Tour de France, Adams said, including promotions to keep customers following the team.

The Chipotle website has a banner announcing their participation before you even enter the home page. There is a link to "Le Burrito," the team burrito. The website makes following the progress of the team both easy and fun.

You have a no dope company backing a no dope cycling team. It makes perfect sense to me, and I think it will resonate with their cult. I meant to say customers.  Besides I think the Hulk and Batman were already taken.
 
 

Posted by Lane Cardwell on July 11, 2008 | Comments (3)