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Tie-ins: Marketers Seek Gold At 50th Daytona 500 Print E-mail
Tie-ins: Marketers Seek Gold At 50th Daytona 500
Unilever, ConAgra, Pepsi, Kellogg join Kroger in mega-Nascar drive.
June 25, 2007
By Barry Janoff

Sun, sand and burning rubber might not seem like the ideal combination to sell cereal, salad dressing or yogurt. But Kellogg, Unilever, ConAgra, General Mills, Nabisco and PepsiCo are among the companies that will ultimately activate upward of $100 million in marketing for the 50 running of the Daytona 500.

Although the golden anniversary of Nascar's "Great American Race" is seven months away (Feb. 17, 2008), nearly 50 products, branded with a special 50th race logo, will appear exclusively on shelves beginning next week at supermarkets owned by Kroger. The Cincinnati-based retailer is the nation's leading grocery chain, with more than $66 billion in sales in 2006 across its 2,500-store, 24-division operation, which includes its own banner and such units as Ralphs, Fred Meyer and Fry's.

Both Kroger and Nascar said this is the largest single activation in their respective histories. Products will have exclusivity in each category and will encompass the entire store. That includes snacks (such as Ritz and Chips Ahoy! from Nabisco; PepsiCo's Lays, Tostitos and Ruffles), condiments (Hunt's Ketchup, Gulden's Mustard from ConAgra; Bruce Foods' Louisiana Hot Sauce), center-plate items (ConAgra's Chef Boyardee) and CPG (Cottonelle bath tissue from Kimberly-Clark; Kingsford charcoal; Hefty from Pactiv; Georgia-Pacific's Sparkle Paper Towels). When Kellogg nabbed exclusivity in the cereal category (Corn Flakes, Raisin Bran, Frosted Flakes), rival General Mills gained rights elsewhere via such products as Hamburger Helper, Totino's Pizza, Yoplait and Pillsbury Refrigerated Dough. Kroger also will have its private label brands in the mix. (For a complete list, see Brandweek.com.)

"I know how big this is—it surpasses the Wow! factor," said Evan Anthony, vp-marketing and advertising at Kroger. "This has been about two years in the planning. The challenge wasn't in coordinating so many companies and brands but making sure we did something that would have value to the consumer and strong ROI for everyone involved."

Retail Sports Marketing, Charlotte, N.C., coordinated efforts among Kroger, marketers, Nascar and International Speedway Corp., which operates the Daytona (Fla.) International Speedway (home of the Daytona 500). Support at Kroger stores will begin with POP and circulars, then ramp up as the race approaches to include ads on Kroger's in-store TV and radio network, a dedicated Web site anchored each month by a different participating marketer, Nascar-Daytona 500 displays (including apparel) and personal appearances by drivers. Many of these marketers also will have their own Nascar and/or Daytona 500 campaigns as the 2008 season approaches.

The supermarket's Nascar alliance also includes title sponsorship of the Kroger 200 at O'Reilly Raceway Park, Indianapolis.

"We understand the power of brand loyalty among Nascar fans, and we wanted to take advantage of that on the store shelf," said Roger VanDerSnick, vp/CMO at ISC. "We want this effort with Kroger to attract dedicated fans as well as casual and non-fans. The planning was not just in getting products into the stores, but keeping the effort fresh and entertaining [for seven months] so consumers would keep coming back."

The strategy is to pump interest in TV coverage on Fox and solidify for consumers the link between Nascar and its marketing partners. Nascar said women make up 40% of its fans and that families drive many initiatives.

According to Forbes, the Daytona 500 is the fourth-most valuable sports event in the world with $91 million in TV rights fees, sponsorships, ticket receipts and licensing. The top three are the Super Bowl ($379 million), Summer Olympics ($176 million) and FIFA World Cup ($103 million).

"I would rank the Daytona 500 with the Super Bowl as far as fan interest, marketing, licensing and ROI," said Nancy Davis, program manager for Nascar at Unilever, Charlotte, N.C. "We work so closely with Nascar because in addition to reaching consumers, they are gender neutral. Many of our core products appeal to mothers 25-40." Bulldawg Marketing, Mooresville, N.C., handles Unilever's Nascar-related initiatives.

More than 350,000 attended the 2007 Daytona 500, which is the official start of the Nascar Nextel Chase for the Cup. Fox has exclusive TV rights through 2014. In-race 30-second spots are going for about $500,000, per analysts, during which many marketers will break ads. The 2007 race was one of the top-rated sportscasts of the year, per Nielsen Media Research, New York.

Lee Petty won the first Daytona 500. The defending champ is Kevin Harvick.

"Everyone has done an outstanding job on this," said Kroger's Anthony. "Now, it's show time."

 
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