london campus07 valvoline
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UK Sports Marketing Conference Presentation: A Sponsor Looks at NASCAR MarketingTRANSCRIPT
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Barry Bronson
Director of Communications - Valvoline
A Division of Ashland Inc.
Lexington, Kentucky, USA
Activating Sponsorship to Achieve
Strategic Business ObjectivesA Sponsor - Owner View
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Insert SEMA video Nov. 2006
Up until MaxLife commercial;
Include: At Track Race shop
End with logos.
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Valvoline Sponsorship
Goal is to extend the Valvoline BRAND to popular
sports by achieving disproportionate exposure
to dollars spent . . . and by attaching high-
performance imagery to our products.
• Use motorsports for BRANDING
• Use motorsports as ALTERNATIVE MEDIA
• Element of our ADVERTISING
• Element of our PROMOTIONS
• Element of our CUSTOMER RELATIONS
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PUBLIC RELATIONS
VEHICLE
SALES PROMOTION
VEHICLE
PRODUCT COUPON
SAMPLING
TV
BRAND EXPOSURE
LICENSING
APPAREL,
SOUVENIRS
BUSINESS-TO-
BUSINESS
DEVELOPMENT
SHOWCAR
PROGRAM
HOSPITALITY
VEHICLE
INCENTIVE
VEHICLE
RESEARCH &
DEVELOPMENT
NEW PRODUCTS
BRAND EXPOSURE
PRIMARY
TEAM CAR
SPONSORSHIP
DRIVER, TEAM
ENDORSEMENT
REGIONAL
RETAILER
LEVERAGE
PERFORMANCE
IMAGERY
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Brand Fact-of-Life
Consumers in many cases are
becoming active supporters of
brands, not just buyers.
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• 30 new commercials featuring 15 drivers
• Fox broadcast - 33.7 million viewers
U.S. viewership. Source: FORBES Magazine
1. Super Bowl
2. Summer Olympics
3. World Cup
4. DAYTONA 500
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Sponsor as Owner• F1: Mercedes & McLaren.
• F1: Honda buys out BAR.
• F1: BMW takes over Sauber.
• NASCAR & F1: Red Bull!
• Valvoline was first consumer products company to own NASCAR team.
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Integration• A car by itself is just a colorful advertisement.
• It is the FIRST dollar spent.
• It gives you a platform on which to spend more dollars.
• Field participation.
• TREND: Properties reducing or even waiving fees in exchange for more promotional commitment.
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Current NASCAR Sweepstakes
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Who is Doing it Right?
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The Rights Fee Was
Just The Beginning!
The Rights Fee Was
Just The Beginning!
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Crown Royal presents the Jim Stewart 400
• Team sponsor activates with:– Media Buy
– Sweepstakes
– Cause Marketing
– Publicity
• Entitlement recognized by broadcast, media partners
• Online Essay: “Most Memorable Crown Moment?”
• 15,000 entries, nine finalists
• $50,000 charity donation
• Jim Stewart
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Retail Promotions
Noticing promotions while shopping NASCAR Fans Non-FansIndex NASCAR Fans vs.
Non-Fans
Store brochures / flyers 66% 54% 122 *
Signs on racks and shelves 62% 48% 129 *
Free standing display w/ product 60% 46% 130 *
Promo/displays at end of aisle 55% 43% 128 *
In-store demos 46% 35% 131 *
Video monitor displays 21% 15% 140 *
Source: Simmons National Consumer Survey (Spring 2006 – Fall 2006)
* indicates statistical significance at the 95% confidence level
NASCAR fans are more likely than non-fans to notice
and value a variety of promotions when shopping.
Retailer to effectively reach these consumers with
NASCAR-related themes.
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NASCAR Developments
• New Markets Push (1999-present)– California, Indianapolis, Chicago, Kansas City, New Hampshire
– Hoping for New York, Pacific Northwest, Denver
• Lengthened Season
• Los Angeles Outreach
• Overseas Expansion: More Licensing than Event Strategy– Canada – CASCAR
– Mexico – Busch Series Event
– China?
– “Stars But Not the Cars”
– NBA Model
– Strong licensing, merchandising, TV packages
– In-country exhibitions
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NASCAR International Expansion
• International development and growth is an important long-term strategic initiative for the industry.
• In a short period, NASCAR has expanded its reach and is now broadcast in over 150 countries and more than 30 languages.
• Expansion into Canada and Mexico represents the first stage of international development. New strategic partnerships in these markets are providing incremental growth opportunities for the industry.
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Activation Learnings -- NASCAR
• The huge run-up in NASCAR sponsorship fees makes activation very expensive.
• Companies choosing to become sponsors are placing bigger bets on more selective group of targets.
• PR is cost-effective alternative to expensive sales promotion, events.
• “Shoulder” TV programming helps.
• Sponsorships increasingly multimedia.
• Racetrack littered with failed sponsorships, activation.
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Challenges to NASCAR Activation
• Networks leverage advertising for coverage.
• Short-term sponsors.
• Multiple sponsors per car.
• International activity, but national budgets.
• More scrutiny of ROI.
• More non-traditional sponsors.
• More interactive broadcasts, digital TV.
• More “shoulder” programming.
• Teams, tracks becoming more adept at negotiating deals, making sponsorships pricier than ever before.
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Activation: Partners Help
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Leveraging Technology
• Not just marketing which is leveraged . . .
• For Valvoline, racing is laboratory for developing
new consumer products.
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Insert EDITED CNBC segment on Steve Williams
Start: 00:50 End: 01:28
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