Pledge system explained

Ruapehu Bulletin, Volume 8, Issue 375, 26 February 1991, Page 5

Pledge system explained

The 'Pledge1 system for the NZ Winter Games, referred to by Sue Allomes of the RSBA, works as follows:

All businesses in the Ruapehu region will be given an opportunity to support the Winter Games by pledging ,a sum of money to help with the promotion of the Games in jmtional and international media. Such promotion through press releases, magazine, newspaper and television coverage, sports outlets, ski shows and a variety of different sports codes associations (rugby, netball, golf, hockey, snooker, darts, badminton, squash, swimming etc) as well as the International Ski Federation(FIS) will inevitably bring a great number of people - competitors, supporters and spectators - to the entire region. These people - estimated at no less than 8,000 between 15 September to 5 October - will spend money on accommodation, food, entertainment, recreational activities, travel, clothes, sports gear and equipment within the Ruapehu region. Tour operators, restaurants, motels, hotels, camping grounds, clubs, sports associa-

tions and retailers - from the corner dairy to the supermarket - will all stand to benefit from this huge influx of visitors over this 3 -week period. The extent and degree to which these NZ Winter Games can be promoted depends upon funds available and this is where the business sector of the community is being asked to assist. But - and this is the beauty of the 'pledge' system - no one has to front up with any money at once nor will they have to until major sponsorship is confirmed. In this way local businesses take no risk whatsoever and do not have to 'front up' until they are absolutely certain that major sponsorship funds are available and they can be certain that they will derive some considerable financial benefit from the staging of the NZ Winter Games in the Ruapehu region. But it is essential to know immediately what these 'pledged' financial commitments will be so that a comprehensive promotion and market-

ing campaign can be prepared well in advance of the start date. Without such support from local businesses the advertising campaign will fall short of its objectives in attracting people to the area and a wonderful opportunity for creating an annual international event in the Ruapehu region will have been lost. It is therefore the responsibility of all local businesses to get behind the New Zealand Winter Games project by 'pledging' their support. (Note: Already - and without confirmation as yet of a major sponsorship commitment - Turoa Skifields have pledged $5000 and Whakapapa Skifield has pledged $3000) Currently negotiations are being conducted with major national sponsors. However, in the meantime, it is essential for the major marketing company to know what level of local support will be available to take advantage of the Games in the national and international media promotion campaign. And they have to know now, not in six months time when the Games are already in

progress. This 6-month lead-in time is necessary in order to get the promotion message spread throughout New Zealand and overseas and the more 'pledged' money available the more effective and comprehensive will be the marketing campaign, in advance of the Games, for the Ruapehu Region. The 'pledge' system concept was originally proposed by Gavin Moore of Ohakune and it was suggested that each' business organisation in the Ruapehu region should nominate a figure (in percentage terms) as a proportion of the major sponsorship's contributions. The suggested figure was between one-quarter and one percent (0.25 - 1.00%) Example: If the major sponsors decide to spend $100,000 on supporting the NZ Winter Games, a local business would be pledged to contribute $250 if it had nominated 0.25%, $500 if it had nominated 0.5% or $1000 if it had nominated 1.0%. Similarly if major sponsorship funds totalled $500,000 the pledge value would be $1,250 or $2,500 or $5,000 respectively.