Anyone who goes to or watches the Pacquiao-Margarito fightthis weekend will see Tecate beer all over the place.
While most companies spread their marketing budget across a variety of platforms, Tecate officials aren't shy about the fact that they love boxing.
Sure, might think the sport is dying, but Tecate is all in.
Felix Palau, the brand's vice president of marketing, says that they've gradually been betting more and more on boxing since 2007. Today, 70 percent of Tecate's marketing budget has been spent on sponsoring fights and being everywhere the boxing fan desires to be. Tecate's logo is on the mat for almost 90 percent of fights airing on American television.
"We're a Mexican beer that celebrates the character of the hispanic man," Palau said. "Fifty five percent of hispanic men are passionate about boxing compared to 35 percent of the general population."
Tecate's bet on boxing could be considered crazy by traditional marketing, like the company's underwriting of fan's pay-per-view costs.
Tecate (owned by Heineken) decided one of the best ways they could get "in" with boxing fans would be by helping them pay for fights.
For this fight, fans who purchase a 12-pack of Tecate (typically $12) can get $25 off the price of the HBO pay-per-view cost by mailing in or filling out an online rebate.
"We pay $25 and sometimes $35 and we lose money on it," said Palau. "But we think over time we'll win the bet that boxing fans will be loyal to Tecate. This benefits fans, it benefits promoters and, in the end, it benefits us."
Palau estimates that 1 to 3 percent of the total PPV buys are made up of people who received a Tecate rebate. So say 2 percent of the at least 1 million fans that will buy the fight got the Tecate redemption, that's $500,000 in rebate commitments.
The single-minded marketing approach makes Tecate unavoidable this weekend in Dallas. The beer brand has Chicas Tecate (Tecate Girls) roaming around as well as a traveling boxing museum that it sponsors.
"Every time there's a big fight we're focusing on it and promoting it a month and a half before," Palau said.
And it's all working.
"We have double digit growth for every month that there's a big fight," Palau said.
In a tough economy, Tecate has maintained its domestic market share, which officials attribute partly to its boxing investment.
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