NYC Seeks Global Brand Delivery

NEW YORK The City of New York, which has cut marketing deals with Snapple, the History Channel and others, plans to send out requests for proposals next week for an official ground delivery services provider.

The winner, which will likely be drawn from one of the three global package delivery firms—FedEx, UPS and DHL—will be known as the “Official Express and Ground Delivery Services Provider for the City of New York.”

Joseph Perello, CMO for the City of New York, said the city was seeking a global firm in the hope of promoting New York around the world. One way would be to sport the official designation on packaging. “Using their packaging is going to be a very important way to convey a message,” he said.

The winning firm will also be charged with promoting NYC Business Solutions, the city’s assistance program of the New York City Department of Small Business Services. Part of the task of winning the request for proposal—which will be sent out via the U.S. Postal Service—will be to come up with incentives for small businesses to sign up with the agency. The winner will be named in November.

Unlike past deals, the winning firm will also get a contract to provide services to all city agencies. “This is the first time we are going to marry a procurement agreement with a marketing partnership,” Perello said. “It’s a very big step for the city. We’re forging a new path.” A representative of the city’s Marketing Development Corp. said the RFP was “multi-million” in value, but declined to name an exact dollar amount.

Perello’s Marketing Development Corp., a city agency created in 2003 to provide revenue to New York, has previously inked various marketing deals with partners ranging from Snapple and the History Channel to Kodak, Universal Studios and General Motors.

Last month, the MDC renegotiated its longest-running deal, with Snapple. Under the original pact signed in September 2003, Snapple agreed to pay the city $66 million and spend $60 million on ads promoting New York in exchange for exclusive vending rights to New York City buildings over five years. (A separate $40 million deal for the New York City Public Schools put the total contract’s value at $166 million.) But aides to Mayor Michael Bloomberg said poor vending machine sales led the city to revalue the terms of the city deal from $126 million to $33 million.