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NASCAR

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?)

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NASCAR

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  1. NASCAR Sports Marketing and Product Endorsement Masters

  2. 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

  3. 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

  4. 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 Aerodynamic Changes

  5. 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

  6. 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?

  7. 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

  8. 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

  9. 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

  10. Sponsors • Budweiser • Tide • Hot Wheels • Cartoon Network • True Value • Kodak • STP

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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!

  17. 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 Southern Roots or Thorns

  18. 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

  19. 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

  20. 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

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