NASCAR Sports Marketing and Product Endorsement Masters

NASCAR’S Popularity  Used to be viewed as a backyard, bumpkin dirt track sport!  Emerged as a $2 billion industry in just 51 years  Attendance up 63% since 1990 (NBA second with 12% growth – now without Jordan?)  Now reaching urban markets with tracks and viewers

NASCAR NEWS  With ratings declining last year for the first time in anyone’s memory – NASCAR decides to bring the fans back to the races. Races with little old style competition  What did the fans want to see? Lots of leader changes Hard racing, drafting

Aerodynamic Changes  Two strips of metal have been affixed to the roof and on top of the spoiler of each car Slows down and promotes drafting and passing  Change in the carburetor restrictor plate Keeps speeds below 200 mph and increases pack racing  Ford concerns Style of Ford vehicle enables too much air to be caught and unfairly penalizes the Ford drivers Speed Turning

Impact of Aerodynamic Changes  The race did result in tighter two and three across racing in both the straight-aways and the turns Attendance at 200,000, 50 lead changes  No clear ability to leave the pack behind  Pileup resulting in 21 cars being out of the race and driver Tony Stewart becoming airborne and receiving a concussion  Final lap accident results in the death of racing Superstar Dale Earnhardt

Impact of the Death on NASCAR  Marketing Concerns Loss of ratings Changes to the product, car Track improvements Merchandising  PR Backlash against Sterling Marlin?  Was the need to increase ratings for FOX causal?

Importance of Dale Earnhardt to NASCAR  Came along and notched up excitement and gave the fans a new hero as Petty moved out of the spotlight  Maintained strong career tied Petty for most championships and started a dynasty  Became an enterprise Merchandise – more than all others combined Owner – 2 cars and three drivers in the garage Driver - $41.6 million in earnings Salesperson – GM, Coca - Cola

NASCAR’S Value to Marketers  Since early 1970’s the autos themselves have been rolling billboards for sponsors  With NASCAR – the gravy is TV revenues – the main source of funds the sponsors!  Range of sponsoring firms growing dramatically – Lowe’s, Carton Network, Hot Wheels, BellSouth Appeal broadens and reaches young fans

Team Owners Need Sponsors to Support:  12 cars per driver  Dozens of employees from the crew, chief and PR people  Support personal appearances and travel budgets

Sponsors  Budweiser  Tide  Hot Wheels  Cartoon Network  True Value  Kodak  STP

Marketer’s Dreams  Coke – 20,000 new NASCAR themed vending machines  Loyalty of fans to endorsed products is unmatched  Hot Wheels jumped sales by 30% when Kyle Petty became a spokesperson!  NASCAR Barbie #1 collectible Collectible Jewelry and Charms

Marketer’s Expectations  CEO of Home Depot called NASCAR (not a sport but) a marketing machine  DuPont associates 20% of their growth from $500 million to $1 billion to Gordon

Sponsors  Texaco Combines with Robert Yates Racing Team and Ricky Rudd Active since 1917 in racing and feels it is a perfect match for their product Current car sponsorship since 1987

The Rise of Jeff Gordon  Was a national champion at age 8 Go cart division!  As a rookie (age 20) DuPont invested $11 million in stock car racing  Currently won three WINSTON Cup Finals

Value as a Pitchman  Young, attractive, clean record with the public  Recognizability  GenXer  First Driver to jump into high priced endorsements Pepsi, RayBan, Edy’s, Fritos Next Jordan?  Crosses gender and geographic boundaries  Fan Friendly and Comfortable with Press

The NASCAR Itself  Sponsors litter the frame Hood the priciest at $4 to $6 million and part of the primary sponsor package may also get quarter panel and trunk No ads on roof Trunk and back of trunk TV panels  What about the driver??? A Walking Ad! Now spreading to other sports!

Southern Roots or Thorns  Classically regarded as having very regional appeal – problems with heritage still exist Minority participation of drivers and fans minimal Dr. J. and Joe Washington sponsor a minor-league team Dr. Pepper current sponsor – PR value of minority venture support???  Still see the Confederate Flag flying – TV image?  Little support for enhancing participation directly  Only one African- American winner of an event – Wendell Scott  Need for a proactive approach to recruit and support minority owners

Public Relations Activities  Habitat for Humanity Team owner Joe Gibbs and Driver Tony Stewart volunteer time and effort to housing construction for disadvantaged Home Depot is providing the materials (and sponsors a car!) Home Depot will raise money to support Habitat for Humanity by selling commemorative merchandising including die-cast cars, apparel, etc. Hope to raise enough funds for another 100 houses

Event Marketing Activities  NASCAR Rocks Series of Concerts featuring the Allman Brothers Band, Sonia Dada, Hot Tuna and Lucinda Williams  Co-sponsored with True Value, Gatorade, VISA, CBS Sports and others

Specialty Advertising and Associations  MCI WorldComm ‘Celebrate with the Champ’ Used print ads, inserts in MBNA NASCAR Visa statements, programs Broadcast on Fox, TNN, Speedvision Ways to participate Sign up for 5 cent Sunday Apply for Visa or charge