From Tournament Sponsor to Tour Sponsor: Mercedes Makes a Move

Filed in archive Golf Business on March 4, 2008

2008 Mercedes Championship
German automaker, mercedes benz, is stepping up its involvement in the game of golf.

But it's doing so in a very clever way.

The luxury car maker already has a high profile on the PGA Tour via the Mercedes Championship, the early season event in Hawaii.

However, it's upped its stakes in the game of golf by becoming title sponsor of a regional tour in Southeast Asia.



Why a regional tour in a part of the world that isn't known for golf?

Here's a possible answer. Mercedes is sponsoring the ASEAN Golf Tour, not to be confused with the Asian Golf Tour.

ASEAN is an acronym for Association of South East Asian Nations and comprises countries like Thailand, Indonesia, Myanmar (also known as Burma), Laos, Malaysia, Singapore and Vietnam.

They are also some of the fastest growing economies in the world. We think too often that China and India are the economic powerhouses in that part of the globe. They are but coming up behind them like a Kenyan sprinter are the ASEAN countries.

Mercedes has scored a coup for three reasons: first, it's put its brand front and center in a part of the world where a lot of money is being generated. Second, it has scooped the Asian car makers like Toyota, Hyundai and Honda in particular. And third, it has done so for very little money.

Reports don't specify a dollar amount but Reuters news agency reports a 7 figure sum.

That's not much money to lock up title rights to a golf tour during flourishing economic times. The whole idea, corporate goodwill in helping to develop young golf talent notwithstanding, is to sell cars.

Big, expensive ones. Very smart.