Posts tagged Dale Earnhardt Jr.

Smaller sponsors finding ‘new economy’ in today’s NASCAR

Green and yellow die cast stock cars wrapped in the Sun-Drop logo line his shelves reminding him of a period when small, locally-owned companies could afford to sponsor a car in NASCAR’s premier series and the partnerships were forged through friendship.

“Dale used to buy around 10 cases of Sun-Drop a week and he became friends with John King and his family, a local bottler in Concord, N.C. That’s how it all started,” said Falls, president of Choice USA Beverage, Inc. who today bottles the citrus soda for the Southern regions of South Carolina, North Carolina and Tennessee.

Dale Earnhardt and Sun-Drop had a five-year endorsement agreement that was terminated when Coca-Cola came into the sport.What began as a small agreement between Earnhardt and the local Sun-Drop bottler in Concord grew into a five-year personal endorsement agreement and associate sponsorship of Earnhardt’s No. 3 car making Sun-Drop one of the first major beverage sponsors in the sport. Although the company’s tenure that began in the early 1990s would not survive.

Since then, NASCAR’s sponsorship game has evolved tremendously and today’s economic landscape and recession is forcing smaller companies looking for viable fits to find new and innovative strategies.

“We couldn’t compete with Coke when they arrived,” Falls explained. “Dale [Earnhardt] got pressure to join the Coca-Cola racing family and he was never allowed to renew that five-year contract. We were left out of the sport because we couldn’t afford to compete with Coke and Pepsi’s resources and the money they were willing to spend.” Through the years, Sun-Drop and its regional bottlers would be approached with new opportunities to rejoin the sport, but none of the sponsor pitches were affordable or worth the expense.

But a recent cold call from a marketer at JD Motorsports, a small-tier Nationwide Series team, has changed all that. Sun-Drop is making a return to the sport in nostalgic fashion this summer and is becoming one of NASCAR’s growing examples of how smaller companies are creating unique, outside-the-box ways of either maintaining what sponsorship presence they have or creating new ones to increase their brand exposure in an affordable manner.

NASCAR teams cognizant of the economy and shrinking sports marketing budgets are starting to look to these smaller companies for support knowing that the larger companies have either left the sport entirely or can no longer afford to write multi-million dollar checks to cover a team’s entire season.

“The door is opening now and teams are willing to talk to companies like us and work with the smaller players in light of the economy,” said Scott Hunt, CEO of Hunt Brothers Pizza, who recently purchased six primary races from Richard Petty Motorsports to sponsor the No. 44 car.

“We’ve been cooking pizzas inside the garage area and feeding the teams. A.J. [Allmendinger] has handed out free T-shirts and our brand recognition has increased. Last year at our first race in Talladega everyone asked ‘who are you?’ That was not the case this year.” SCOTT HUNT, Hunt. Bros. Pizza”If the pricing was what it was three or four years ago, we couldn’t have done it,” Hunt added. “It’s made everyone a little more humble.”

To be more efficient with its sponsorship budget, State Water Heaters revamped their strategy and approach. The company chose to put their resources into a hospitality program created by a Charlotte, N.C.-based marketing agency where driver Ward Burton acts as a trackside tour guide of sorts. Instead of sponsoring a low-level team with a car that gets little television exposure, State Water Heaters decided to employ Burton as the company’s race day representative to entertain the company’s guests and most important customers.

Teams and companies are learning to reinvent the sponsorship sale so that both sides are happy. Value for the sponsor can have several different meanings in today’s NASCAR. Hunt said he discussed sponsorship options with several different Cup Series teams in order to increase brand awareness for his growing pizza company located in rural areas and convenient stores.

His first foray into the sport was brief and came in 2008 with Haas Automation. The company sat out at the beginning of the 2009 season to see what the economy was going to do. While the economy didn’t really improve much, the sponsorship opportunities and hood space among NASCAR teams did.

The pizza chain decided to go with Richard Petty Motorsports and its new driver A.J. Allmendinger, because the team was willing to accommodate the company’s goals.

It could afford to buy six races, but not the costly activation programs required to further reach NASCAR’s loyal fans. Therefore, the Petty team helped Hunt with a greater credentialing system that allowed Hunt’s larger distributors and potential clients to attend the Cup races.

Meanwhile, Hunt and Allmendinger have used low-budget grassroots activation methods to get the pizza into the mouths of many. “We’ve been cooking pizzas inside the garage area and feeding the teams,” Hunt said. “A.J. has handed out free T-shirts and our brand recognition has increased. Last year at our first race in Talladega everyone asked ‘who are you?’ That was not the case this year.”

Some economists and marketers note longtime and wealthy sponsors are still pulling out of NASCAR, but there are still a percentage of companies who are spending and even increasing their sponsorship budgets.

Kyle Busch helped push sales for NOS Energy drink through a case-by-case sales incentive program and a $5,000 personal services agreement that started in 2007.

Through NASCAR exposure and Busch’s success on the track, the partnership has grown into a $4 to $5 million Nationwide Series sponsorship agreement this season, according to his Motorsports Management team.

At the end of the day, companies know how valuable the loyal NASCAR fan base can be to their bottom dollar.

In Gaffney, S.C., this week, employees at the Sun-Drop bottling company are celebrating their return to the sport with JD Motorsports and are hoping to grow with young driver Danny O’Quinn Jr. in the Nationwide Series No. 01 car this season. And the sponsorship agreement with Sun-Drop, which begins at Lowe’s Motor Speedway with a paint scheme similar to what Dale Earnhardt Jr. ran on a Late Model car in Myrtle Beach, S.C., also came to be with a cold call and a face-to-face meeting at the bottling company.

“I told them if you want someone in the top 10, that’s not us. But we will qualify for every race and we will get your apparel and merchandise program off the ground and into the stores. They just couldn’t find a home where they didn’t have to spend millions of dollars,” Priscaro said. “We are just honored Sun-Drop chose us, chose our team to make their return to NASCAR racing.”

Everyone is leery of the economy and tightening their budgets, but when teams and companies look outside of traditional practices and markets, lucrative partnerships are formed.   www.nascar.com

Athlete + Brand = Relevance to the fan!

If NASCAR fans wanted more proof that Dale Earnhardt Jr. has become an icon who can eclipse his sport, there was plenty during Sunday’s Daytona 500 telecast. In a 15-second spot for primary sponsor Amp Energy – Earnhardt and six buddies are seen racing go-karts, firing paintball guns and shooting pool. “We think we’re breaking new ground with an athlete and how we use him in the creative process,” says Lauren Hobart, vice president of marketing for Pepsi-Cola North America Beverages.The campaign is another indicator of Earnhardt’s endorsement clout as a six-time most popular driver. “Bud did a hell of a job making that identity,” Earnhardt says. “They were this big damn brand in NASCAR, and I rode shotgun for eight years. We’ve got to do the same thing now in reverse. I said to Amp, ‘Instead of snazzy commercials that are fiction, why don’t we do it like Bud?’ The things we preached were real, and that sincerity came across to fans.”

Earnhardt’s legions of followers already seem convinced. Amp’s sales are up more than 70% in the past year. “Dale Jr. was a critical piece of what drove our sales,” Hobart says. “It was a catalyst for 5 million new consumers to try the brand.” Marketing data suggest Earnhardt has no peers as a Cup spokesman. In polling of avid NASCAR fans after the 2008 season for the Davie-Brown Index, which quantifies an athlete’s relevance to consumer behavior, Earnhardt ranked first in all eight categories (including trust, awareness and appeal). Ken Cohn, vice president for the Millsport marketing agency conducting the survey, says fans are 20% more passionate about Earnhardt than about other drivers. “Junior can do no wrong in the eyes of the fan,” Cohn says. “He can solidify a brand because he embodies it. When you transfer the affinity fans have for Junior to a brand, that can be powerful.”

Go Daddy, which also began running commercials last weekend shot on Earnhardt’s property, aligned with the driver partly because he was a customer who had used the company’s domain registration and website hosting. The ads by Go Daddy, which sponsors JR Motorsports and Hendrick Motorsports in Nationwide and Cup, were scripted but with input from Earnhardt. “He’s extremely hands-on,” says Barb Rechterman, executive vice president of marketing for Go Daddy. “He likes to do things he calls ‘the real deal.’ If it’s something he wouldn’t say or do in real life, he likely won’t do it on a commercial.” www.usatoday.com

GoDaddy.Com Sponsors JR Motorsports in 09

Dale Earnhardt Jr. can relax just a little bit now that GoDaddy.com will fill in the sponsorship gaps at JR Motorsports had on the #88 Chevy and will also help out Earnhardt’s driver Brad Keselowski in the NASCAR Sprint Cup series with Hendrick Motorsports (source: jayski.com).

GoDaddy.com extends its relationship with NASCAR’s most popular driver Dale Earnhardt Jr. with its announcement that it will be the primary sponsor for JR Motorsports in the Nationwide Series in 2009 for 20 events. In addition, GoDaddy.com will become an associate sponsor of the NASCAR Sprint Cup Hendrick Motorsports #5 car piloted by veteran driver Mark Martin. GoDaddy.com joins Unilever and Delphi Corporation as primary sponsors of the #88 Nationwide Series car.

Measuring the Perceptions Fans Have of Drivers

Jimmie Johnson may have won his third consecutive NASCAR Sprint Cup Series Championship, but it’s Dale Earnhardt Jr. who’s won the hearts of NASCAR race fans according to the Motorsports DBI (MDBI), an index created by sports marketing agency Millsport. Millsport is part of Omnicom’s The Marketing Arm.
In a survey of avid NASCAR fans, Earnhardt Jr. scored the highest across each of the index’s nine attributes, including trust, appeal, influence, and passion. Johnson ranked fifth. “There are a lot of reasons to like Junior,” said Ken Cohn, a vice president in Millsport’s Charlotte, N.C., office. “Clearly, he’s inherited a strong percentage of fans who supported his father, a legend in the sport who really transcended racing emotionally. But Junior has built his own fan base that genuinely appreciates his style, personality, character, and so forth.”

For the first time, the updated Motorsports DBI also includes data on the top drivers from the NHRA and IndyCar racing circuits. Fans rate Castroneves, Kanaan, Danica Patrick, Dario Franchitti, and Scott Dixon the highest among IndyCar drivers, though Castroneves and Kanaan posted the strongest scores in nearly every attribute, including appeal and trust. According to the index, fans consider Patrick to be a trendsetter and solid endorser. Among NHRA drivers, John and Ashley Force ranked in the top two spots. www.millsport.com