Business Aspects
Sponsors

 

Sponsors

Because the parade’s theme is “Holiday Entertainment for Children Everywhere”[1] many of these sponsors come in the form of companies that cater to children—children’s toys, food, music, and TV/movie entertainment. Such sponsors have in recent years included everything from Kraft Macaroni and Cheese with its Cheesasaurus Rex balloon, to the Lego Company with its Lego Carousel float, to HIT Entertainment with its Barney’s Musical Playground float. In nearly every case, the float or balloon not only serves as a fantastic visual spectacle, it also reminds viewers to buy, watch, or eat whatever product is being displayed.

The majority of the sponsors fund a single balloon or float. These companies pay Macy’s millions of dollars to construct a balloon or float that advertises their product or service. Many of the companies with balloons in the parade end up paying about $5 million in total to Macy’s. First year expenses for each balloon averages about $190,000 which includes the cost of construction. After that, the yearly price of admission is $90,000.[2] Although it is a great expense to reserve a spot in the parade, it is worth it to the companies because a single balloon or float can carry an advertising message to millions of people. Thus the expense is outweighed by the publicity opportunity provided by the event.

In some cases, though, a sponsor may have very little to do with children’s products. After all, millions of adults see the parade each year, and Macy’s stipulation is merely that each sponsor must be able to provide good family entertainment. In 2000 Pulte Homes, a Michigan-based home builder, sponsored a float telling the children’s tale of “The Three Little Pigs.” The display consisted of three homes and the one left standing was a Pulte Home.[3]

In 1999 the US Mint became the first government agency to sponsor a float in the parade. This float promoted the new Golden Dollar featuring Sacagawea, just one week after coin production began at the US Mint in Philadelphia. The elaborate display featured a Denver Mint antique stagecoach, costumed Mint Police, five foot coin replicas, and a musical group.[4]
Click on the photograph of the Sacajawea float to go to the US Mint Website
Although the funds that flow in from sponsors are essential to the parade’s existence, not just any company can become a sponsor. Because the parade reflects the Macy’s name, Macy’s reserves the right to choose which companies will participate in the parade.[5]

The Federed Departments Incorporated gives Macy's a set of policies for parade participation. A business that sponsors a float and balloon or a performer and entertainer must be able to provide approproiate entertainment that is family friendly. Macy's denies floats and balloons that are too adult oriented or that are tied to alcohol or cigarettes. In addition Macy's policy says that "the parade will not represent any specific cause or special interest (no matter how worthy), the store will not grant requests from any charitable, civic, political, or cultural organization seeking to participate in the parade." Macy's chooses floats and balloons based on entertainment, while also preserving the traditions of the parade.[6]

Not only is promoting seen in the floats and balloons of the parade, it is also shown in the clothing worn by parade workers. Weatherproof Garment Co. has been the official sponsor of the Macy’s Thanksgiving Day Parade. Weatherproof provides micro fiber fleece-lined parkas and crewneck sweatshirts to 1,000 store employees and event workers. The Macy’s Thanksgiving Day Parade logo is embroidered in white on the back of the parkas, along with the Weatherproof Garment Co. logo.[7]

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[Citations]
[1] Matzer, Marla. US News and World Report, "The Price of Hot Air." 1 December 1997 v123 n21 p.10
[2] Macy's Thanksgiving Day Official Parade Site, n.d. <http://www1.macys.com/campaign/parade/parade.jsp?bhcp=1> (6 December 2005).
[3] Fanjoy, Rob. "Proffessional Builder, "Pulte Launches Branding Initiative." December 2000 v65 il4 p. 44
[4] Department of the Treasury, "The United States Mint," n.d. <http://www.usmint.gov/index.cfm?flash=yes> (6 December 2005).
[5] Federated Department Stores Incorporated, "Corporated Policies Positions," n.d. <http://www.fds.com/company/parade.asp> (6 December 2005).
[6] Federated Department Stores Incorporated, "Corporated Policies Positions," n.d. <http://www.fds.com/company/parade.asp> (6 December 2005).
[7] Daily News Record, "News in Brief," 5 November 2001. p.7
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[Images]
Cheesasaurus Rex Balloon
courtesy of: <http://www.wnbc.com/slideshow/1772861/detail.html?qs=;s=4;w=200>© 2005, Internet Broadcasting Systems, Inc
Lego Float courtesy of: < http://club.lego.com/eng/newsandfeatures/story.asp?contentid=418>© 2005 The LEGO Group. All rights reserved.
Sacajawe: courtesy of: <http://www.usmint.gov/about_the_mint/mint_police/index.cfm?flash=yes&action=photo_gallery> Portions © 1998-2005.  The United States Mint. All Rights Reserved.