Sports & Entertainment Marketing

1. Sponsorship Sports & Entertainment Marketing

2. Sponsorship • Sponsorship occurs when a company supports an event, activity, or organization. • In return for money, the sponsor is provided with some type of advertising at the event.

3. Sponsorship • Form of Sales Promotion • Most often used in the sports and entertainment industries

4. is built on sponsorship

5. The History of • Founded in 1948 • Annual attendance exceeds 9 million fans visiting 37 races N - National A - Association S - Stock C - Car A - Auto R - Racing

6. as a BRAND • NASCAR is a “brand” • The second highest rated live sport on TV • Behind the NFL • 71% of NASCAR fans are loyal to brands that sponsor the sport • More than any other sport Banking on NASCAR

7. sales • NASCAR licensed products • 1990 – $80 Million • 2004 – $2.1 Billion • Sales have increased 3000% since 1990

8. sales • Last year NASCAR made 3 billion in licensed product sales • More Fortune 500 companies sponsor NASCAR than any other sport

9. fans The majority of NASCAR fans do not fit into the general stereotype associated with the sport • 78% of NASCAR fans are high school graduates • 40% of NASCAR fans attended college • 36% are in professional or managerial occupations • 70% have full-time employment

10. fans • 33% have annual incomes between $30,000 and $50,000 • 30% have household incomes over $50,000 • 53% are over 35 • 64% are married

11. fans • Women make up almost 40% of the NASCAR fan base • More than any other sports

12. Brand Future • NASCARCafé: Themed restaurant • NASCAR SpeedPark: Go kart tracks • Vaughan, ONT • Myrtle Beach, SC • Concord, NC • Smokey Mountain, NC • St. Louis, MO

13. Brand Future • NASCAR ride at Carowinds Park • NASCARdriving experience

14. So What’s The Big Deal? 1/3 of the Fortune100 firms sponsor a NASCAR racecar

15. The BIGGEST Sponsor of All NASCAR Sponsorship

16. Who’s missing? Winston sponsored NASCAR for 32 year Replaced by Sprint in 2003 • No tobacco brand sponsors exist anymore

17. Who’s missing? Hard liquor has not traditionally been a part of NASCAR • Introduced into the sport in 2004 to bring an influx of cash to the sport

18. Main Sponsor $5-9 million Includes hood, driver’s chest and TV panel (back of trunk) TV Panel Hood Driver’s chest

19. Other Sponsorship Options B-Post $75,000 - $150,000 Trunk $500,000 - $1 million C - Post $250,000 - $750,000

20. Other Sponsorship Options Front Fender $30,000 - $100,000 Front Quarter Panel $750,000 - $150,000 Rear Quarter Panel $750,000 Behind Rear Wheel $200,000 - $600,000 Lower Quarter Panel $25,000 - $75,000

21. Other Sponsorship Options Roof and Door panels Car Number locations No Ads are permitted here

22. Why do they sponsor? NASCAR Sponsors - Why they Invest

23. Endorsements • Any type of advertising done by a person who reflects his or her own opinions, beliefs, findings, and experiences that are separate from those associated with the product’s company

24. Athletes that make more money endorsing

25. #1 Tiger Woods

26. #2 Phil Mickelson

27. #3 Dale Earnhardt Jr.

28. #4 Derrick Rose

29. #5 Jeff Gordon

30. #6 LeBron James

31. #7 Jimmie Johnson

32. #8 Tony Stewart

33. #9 Kobe Bryant

34. Controversy of Endorsements • Celebrities must use the products they endorse. • The political opinions of celebrities may have an adverse effect on the endorsement. • The personal controversies of a celebrity may have an adverse effect on the way the public views the endorsed product. • Companies do not want the image of their product damaged.

35. Lance Armstrong - Steroid Use Endorsements Lost • Nike • Anheuser-Busch

36. Kobe Bryant – Accused of Sexual Assault Endorsements Lost • McDonald’s • Coca-Cola • Nutella

37. Barry Bonds– Steroids Endorsements Lost • Master Card • KFC • Charles Schwab

38. Michael Phelps– Marijuana Use Endorsements Lost • Kellogg’s

39. Tiger Woods– Extramarital Affair Endorsements Lost • Accuenture • AT&T • Gatorade • Gillette