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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