GM/Disney Test Track partnership

[mikoiv]

http://www.orlandosentinel.com/business/orl-biztesttrack04030409mar04,0,4184081.story

Economy could cause GM to drop out of Test Track Sponsorship. Off course this has happened before when AT&T, Exxon and GE all ended their agreements with Disney.
Each company sponsoring an attraction pays several million dollars per year to Disney for the right to display it's logo, a pretty cheap advertising cost if you consider the visibility. Do you think if all/most of the sponsors had to back away and no replacements would be available Disney would have to raise admission costs?

 

[CanadianGuy]

Moving to the News & Rumors Board.

 

[Mouseaholic!!!]

Ok, my intention is not to be flamed here...but HEY......do we really want our BAILOUT $$$ going to support a ride at EPCOT?

These people have taken our $$, are back with their hands out for MORE. Do you really think they will continue with Test Track?

Perhaps they should pay thier ESPN advertising bills first!!!!!

 

[mikoiv]

No flaming
I certainly agree that each major company with a sponsorship should consider if the $$$ are worth the return. We have seen many sponsors at all levels walk away for various reasons, some even from Disney push.
I was really asking how severe will the reductions be first of course to Disney as a company and second to us as customers???

 

[artesian]

This isn't just a Disney issue either. Take for instance Citi field in NY new home of the Mets. Citi is paying somehwere in the order of 200 mil for naming right. Annoys me to no end that they still are keeping it.

 

[Condorman]

But if you limit a company's ability to advertise and market, thereby bringing in new customers, thereby raising capital to pay off the government bailouts, then those companies will forever be owned and operated by the US Government and the American taxpayers.

I firmly believe every company that accepts money from the USG should have its exec's salaries capped and other cages slammed down upon their budgets and bonuses. However, advertising and marketing is key to any successful business, and the visibility allowed via WDW or Citi Field would be a boon.

 

[Horace Horsecollar]

Ok, my intention is not to be flamed here...but HEY......do we really want our BAILOUT $$$ going to support a ride at EPCOT?

Considering all the bailout money, I want GM to be a viable company that survives and eventually prospers again. GM needs to attract new customers by making them aware of new models and helping them see GM in a positive light.

If GM eliminates all advertising, they are doomed.

Test Track is a form of advertising. Unlike a spot during the Super Bowl or during a late-night movie, Test Track lets potential customers see, touch, and sit in GM products. Test Track builds awareness of GM's current brands and what they offer.

There are other benefits to GM. Because of the contract, Disney purchases a fleet of GM vehicles for company use.

Ideally, GM and Disney will reach an agreement that's a good use of GM's (our) money, while keeping GM's sponsorship of Test Track.

This isn't just a Disney issue either. Take for instance Citi field in NY new home of the Mets. Citi is paying somehwere in the order of 200 mil for naming right. Annoys me to no end that they still are keeping it.

To me, it seems that stadium naming rights are about corporate executive egos and gaining the use of the finest VIP facilities in those stadiums. The real advertising value seems rather limited.

In comparison, Text Track is a way to get millions of guests each year into a showroom full of GM cars -- guests who might otherwise never step foot into any GM car brand's showroom. And it's a chance to tell them stories that cannot be told in 30-second TV spots.

 

[Mouseaholic!!!]

But if you limit a company's ability to advertise and market, thereby bringing in new customers, thereby raising capital to pay off the government bailouts, then those companies will forever be owned and operated by the US Government and the American taxpayers.

I firmly believe every company that accepts money from the USG should have its exec's salaries capped and other cages slammed down upon their budgets and bonuses. However, advertising and marketing is key to any successful business, and the visibility allowed via WDW or Citi Field would be a boon.

That's very nice....but theyhave to PAY for the advertising. It is my understanding that GM still owes people a few million for past debts.

 

[Mouseaholic!!!]

Considering all the bailout money, I want GM to be a viable company that survives and eventually prospers again. GM needs to attract new customers by making them aware of new models and helping them see GM in a positive light.

If GM eliminates all advertising, they are doomed.

Test Track is a form of advertising. Unlike a spot during the Super Bowl or during a late-night movie, Test Track lets potential customers see, touch, and sit in GM products. Test Track builds awareness of GM's current brands and what they offer.

There are other benefits to GM. Because of the contract, Disney purchases a fleet of GM vehicles for company use.

Ideally, GM and Disney will reach an agreement that's a good use of GM's (our) money, while keeping GM's sponsorship of Test Track.



To me, it seems that stadium naming rights are about corporate executive egos and gaining the use of the finest VIP facilities in those stadiums. The real advertising value seems rather limited.

In comparison, Text Track is a way to get millions of guests each year into a showroom full of GM cars -- guests who might otherwise never step foot into any GM car brand's showroom. And it's a chance to tell them stories that cannot be told in 30-second TV spots.

Oh boy, I hate to burst your bubble....but Test Track, although it is available to lots of Disney fans, hardly offers the best scope for a GM dollar.

 

[Donald's#1Fan]

I know this will sound totally naive (sp), but what would happen if GM cannot continue with their contract if Disney were to let them continue sponsorship without paying until they get back on their feet. Disney is going to keep the attraction open anyways even without sponsorship and if they helped ride this out with GM, as a partner if you will, then not only will they be in good stead with GM, but think of the selling power for getting other sponsors in the future as they will show how loyal they can be and are willing to stick it out with a company even in the tough times. Just thinking this could go along way in the future by helping them out now. Again, I probably am not thinking this out completely, but just thinking how this could really be a good thing for them, both Disney and GM in the long run.

 

[Horace Horsecollar]

That's very nice....but theyhave to PAY for the advertising. It is my understanding that GM still owes people a few million for past debts.

Previously, you asked, "do we really want our BAILOUT $$$ going to support a ride at EPCOT?"

Those are two different issues.

Whenever a company like Disney knowingly does business with a company that's having financial problems like GM, there is a risk that payments will delayed (or possibly delayed and reduced through bankruptcy). It's a risk.

Disney can mitigate the risk by being paid in cars and vans, rather than in money.

I hope GM can eventually pay all their bills, although I have my doubts.

 

[Horace Horsecollar]

Oh boy, I hate to burst your bubble....but Test Track, although it is available to lots of Disney fans, hardly offers the best scope for a GM dollar.

The marketing wizards at GM need to decide how best to promote their car models, and how to build positive brand awareness and image. They may decide that continued Test Track sponsorship is a worthwhile component of their marketing strategy. They may decide that other options are a better use of GM's marketing and advertising budget.

They probably don't care that "Horace Horsecollar" has pointed out that Test Track allows GM to reach potential buyers in a way that television cannot.

And they probably don't care that "Mouseaholic!!!" has stated unequivocally that "Test Track, although it is available to lots of Disney fans, hardly offers the best scope for a GM dollar."

 

[Mouseaholic!!!]

Previously, you asked, "do we really want our BAILOUT $$$ going to support a ride at EPCOT?"

Those are two different issues.

Whenever a company like Disney knowingly does business with a company that's having financial problems like GM, there is a risk that payments will delayed (or possibly delayed and reduced through bankruptcy). It's a risk.

Disney can mitigate the risk by being paid in cars and vans, rather than in money.

I hope GM can eventually pay all their bills, although I have my doubts.

Yes, you are right, they ARE two different issues.......expressed with two different notes. You are also right in your way....about GM not caring about it's customers. Those customers they prefer to ignor have now ignor'ed GM. Hummmmmmmm, and who is the looser in that choice??????

 

[jimmymac]

I think this money (as well as the money for CitiField) could definitely be better served. Hmm, tough choice. $5 million buys a lot of health care coverage

 

[KYMickey]

This same subject had a lot of discussion in January here's a link to the thread: GM sponsorship of Test Track.
The discussions then focused more on the effects on the ride and possible changes in sponsorship that might be considered. It didn't quite get so focused on better uses for the Federal money GM got to bail them out. Everyone might want to read the past discussion before posting here.

 

[Horace Horsecollar]

I think this money (as well as the money for CitiField) could definitely be better served. Hmm, tough choice. $5 million buys a lot of health care coverage

Unless people buy cars from GM, they won't have $5 million for Test Track, health care, or anything else.

GM needs to improve their product line, but they also need to make potential customers aware of those improvements. If GM stops spending money on advertising and marketing, there will be no GM.

The question is whether Test Track sponsorship is a valuable and cost-effective part of GM's strategy to get people to buy the cars.

 

[Mouseaholic!!!]

This same subject had a lot of discussion in January here's a link to the thread: GM sponsorship of Test Track.
The discussions then focused more on the effects on the ride and possible changes in sponsorship that might be considered. It didn't quite get so focused on better uses for the Federal money GM got to bail them out. Everyone might want to read the past discussion before posting here.

I'm sorry if others do not agree. I doubt that many would think the funding of an amusement ride in EPCOT is a good use of GM $$$$. I never paid attention to WHO the sponsor was until all of this HOO HAA started with bailouts and I have riden Test Track for years...hardly brought the GM brand to my attention.

Advertisement $$$ is allocated to reach the largest number of people in the most cost-efficient manner. As much as we LOVE WDW and think the WORLD loves WDW....I doubt if any advertising professional will say that an amusement ride is the focus of advertising dollars in this economy.


Perhaps GM should consider paying "The Taxes on Tara (sorry, that's my hidden Scarlett coming out)......aka: ESPN advertising from 2008......before they make more empty promises to Disney. Just a thought.


Sadly, I guess Toyota isn't going to jump in either. They asked their government for a $2 billion dollar loan today.

 

[Argent]

"Perhaps GM should consider paying "The Taxes on Tara (sorry, that's my hidden Scarlett coming out)......aka: ESPN advertising from 2008......before they make more empty promises to Disney. Just a thought."


I love all the uninformed opinions out there. You must work in accounts receivable for ABC/Disney or accounts payable at GM to know who does or doesn't pay their bills. Since you seem to know so much what are the lottery numbers for next week?

 

[Mouseaholic!!!]

"Perhaps GM should consider paying "The Taxes on Tara (sorry, that's my hidden Scarlett coming out)......aka: ESPN advertising from 2008......before they make more empty promises to Disney. Just a thought."


I love all the uninformed opinions out there. You must work in accounts receivable for ABC/Disney or accounts payable at GM to know who does or doesn't pay their bills. Since you seem to know so much what are the lottery numbers for next week?

Ahhhhhh - and you must be the person who signs my paycheck to know so much. Perhaps you should not be pointing fingers without proof - thank you very much.


4:30 update..

GM said it needs $22.6 billion (with a B) to remain solvent. Where do you think sponsorship of one amusement ride will factor into their budget now?

 

[redrosesix]

Sorry. I drive a Saturn, a GM product, which I bought before our first trip to WDW. The fact that they sponsored Test Track has no influence over which car I will choose to replace it. So I can't really say that their money is well spent there.