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Activating Sponsorship to Achieve
  Strategic Business Objectives
    A Sponsor - Owner View
                 Barry Bronson
     Director of Communications - Valvoline
            A Division of Ashland Inc.
           Lexington, Kentucky, USA
Insert SEMA video Nov. 2006
Up until MaxLife commercial;
Include: At Track Race shop
End with logos.
London Campus07 Valvoline
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
TV                      PRINT
               BRAND EXPOSURE           BRAND EXPOSURE   SALES PROMOTION
                                                             VEHICLE


PUBLIC RELATIONS                  REGIONAL
    VEHICLE                       RETAILER
                                  LEVERAGE
                                                           HOSPITALITY
                                                            VEHICLE
   LICENSING
    APPAREL,
   SOUVENIRS
                                   PRIMARY                   INCENTIVE
                                  TEAM CAR                    VEHICLE
                                SPONSORSHIP
   BUSINESS-TO-
     BUSINESS
   DEVELOPMENT                                              RESEARCH &
                                                           DEVELOPMENT
                                                           NEW PRODUCTS

   SHOWCAR                           PRODUCT COUPON
   PROGRAM                              SAMPLING
                                                         PERFORMANCE
                                                           IMAGERY
                   DRIVER, TEAM
                   ENDORSEMENT
Brand Fact-of-Life
Consumers in many cases are
 becoming active supporters of
 brands, not just buyers.
1. Super Bowl
       2. Summer Olympics
       3. World Cup
       4. DAYTONA 500
U.S. viewership. Source: FORBES Magazine


•    30 new commercials featuring 15 drivers
•    Fox broadcast - 33.7 million viewers
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.
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.
Current NASCAR Sweepstakes
Who is Doing it Right?
London Campus07 Valvoline
The Rights Fee Was
Just The Beginning!
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
London Campus07 Valvoline
Retail Promotions
  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.

                                                                        Index NASCAR Fans vs.
Noticing promotions while shopping      NASCAR Fans          Non-Fans
                                                                               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 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
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.
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.
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.
Activation: Partners Help
Leveraging Technology
• Not just marketing which is leveraged . . .
• For Valvoline, racing is laboratory for developing
  new consumer products.
Insert EDITED CNBC segment on Steve Williams
Start: 00:50 End: 01:28
London Campus07 Valvoline
London Campus07 Valvoline

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London Campus07 Valvoline

  • 1. Activating Sponsorship to Achieve Strategic Business Objectives A Sponsor - Owner View Barry Bronson Director of Communications - Valvoline A Division of Ashland Inc. Lexington, Kentucky, USA
  • 2. Insert SEMA video Nov. 2006 Up until MaxLife commercial; Include: At Track Race shop End with logos.
  • 4. 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
  • 5. TV PRINT BRAND EXPOSURE BRAND EXPOSURE SALES PROMOTION VEHICLE PUBLIC RELATIONS REGIONAL VEHICLE RETAILER LEVERAGE HOSPITALITY VEHICLE LICENSING APPAREL, SOUVENIRS PRIMARY INCENTIVE TEAM CAR VEHICLE SPONSORSHIP BUSINESS-TO- BUSINESS DEVELOPMENT RESEARCH & DEVELOPMENT NEW PRODUCTS SHOWCAR PRODUCT COUPON PROGRAM SAMPLING PERFORMANCE IMAGERY DRIVER, TEAM ENDORSEMENT
  • 6. Brand Fact-of-Life Consumers in many cases are becoming active supporters of brands, not just buyers.
  • 7. 1. Super Bowl 2. Summer Olympics 3. World Cup 4. DAYTONA 500 U.S. viewership. Source: FORBES Magazine • 30 new commercials featuring 15 drivers • Fox broadcast - 33.7 million viewers
  • 8. 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.
  • 9. 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.
  • 11. Who is Doing it Right?
  • 13. The Rights Fee Was Just The Beginning!
  • 14. 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
  • 16. Retail Promotions  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. Index NASCAR Fans vs. Noticing promotions while shopping NASCAR Fans Non-Fans 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
  • 17. 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
  • 18. 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.
  • 19. 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.
  • 20. 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.
  • 22. Leveraging Technology • Not just marketing which is leveraged . . . • For Valvoline, racing is laboratory for developing new consumer products.
  • 23. Insert EDITED CNBC segment on Steve Williams Start: 00:50 End: 01:28