Posts tagged Sprint Cup Series
Smaller sponsors finding ‘new economy’ in today’s NASCAR
May 6th
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
Mars – integrated activation with NASCAR
Dec 31st
Mars North America announces that it will extend its contract as official NASCAR partner. The multi-year sponsorship commitment allows multiple Mars brands to connect with racing fans and includes four designations:Official Chocolate of NASCAR (M&M’S(R) Brand)
Official Chocolate Bar of NASCAR (SNICKERS(R) Brand)
Official Cheese-Filled Snack of NASCAR (COMBOS(R) Brand)
Official Pet Food of NASCAR (PEDIGREE(R) Brand)
“The relationship between Mars and NASCAR is a win-win,” said Suzanne Beaudoin, vice president, Sponsorships and Sports Marketing, Mars North America. “Mars wants to be part of every race experience. Being an official NASCAR partner illustrates our dedication to the fans, our drivers and the sport, while driving brand affinity and excitement for our brands.” The multi-year partnership aligns Mars with its existing contracts with Joe Gibbs Racing. For 2009, Mars will continue to develop programs that build relationships directly with NASCAR fans, including:
M&M’S “The Most Colorful Fan of NASCAR Contest” will launch at the Daytona 500 and run for 24 weeks.
Mars’ COMBOS Brand will also leverage its NASCAR sponsorship with the new “Man Zone” on-pack promotion, visiting ten race tracks during the 2009 NASCAR Sprint Cup Series.
SNICKERS Brand will promote its sponsorship at retail stores nationwide.
All trademarks acknowledged. http://www.mms.com/us/racing
NASCAR – sponsor $$$ still see value
Dec 19th
The #83 Red Bull Toyota driven by Brian Vickers will carry a new sponsor brand for the 2009 Sprint Cup Series season as Mighty Auto Parts joins Red Bull Racing Team as an associate sponsor. www.nascar.comCaterpillar Inc. and Richard Childress Racing have agreed to a multi-year partnership for the No. 31 Chevrolet driven by Jeff Burton beginning with the 2009 Sprint Cup Series season. The 2009 season will mark Caterpillar’s 17th year of sponsorship in NASCAR. It will also be Richard Childress’ 40th anniversary in the sport. “Success in the highly competitive environment of the NASCAR Sprint Cup Series requires substantially greater levels of technology and investment than even a few years ago,” said Jim Parker, vice president of Caterpillar’s North American Commercial Division. www.nascar.com
Air Force officials announced that it will begin a new NASCAR partnership with Gillett Evernham Motorsports when it sponsors the No. 10 car driven by Reed Sorenson for the 2009 NASCAR Sprint Cup season. For the 2009 season, the Air Force is changing their marketing strategy to rebalance their sponsorship and activation programs to increase public awareness about the Air Force and to attract more recruits. “Advertising and marketing that goes beyond the race track will help us connect with fans and emphasize the speed, power, precision and team work that is common to both NASCAR and the Air Force,” said Col. Timothy Hanson, Air Force Recruiting Service Strategic Communications director. www.af.mil
NASCAR drivers, Johnson and Edwards’ sponsor exposure exceeded $1 billion in ‘08: Joyce Julius & Associates monitors sports sponsorships, measuring exposure given to sponsors during televised sports coverage. In NASCAR, Joyce Julius looks at telecasts of races in NASCAR’s three top series and clocks how long a sponsor’s logo can be seen clearly. It counts each second and then multiplies that by what it would cost to buy a second of advertising on that telecast… ABC, SPEED TV or ESPN 2 – Jimmie Johnson’s sponsors had their respective logos shown for 59hours, 28minutes, 39seconds. By the Joyce Julius formula, that means Johnson’s sponsors got $510,161,750 worth of exposure. Carl Edwards, who finished second in the standings to Johnson, had his sponsors shown for 58:50:11. That equates to $495,908,515 in exposure. (More at Charlotte Observer)
