Shifting Gears

The Fastest, The Furthest and Everything In Between

2009-06-02T17:01:00.000-07:00

Is it possible for motorsports and sustainability to co-exist?

Shell does a nice job of bringing together its F1 Ferrari Technical Partnership and its Shell Eco-marathon fuel efficiency competition.

On the surface, motorsports and "new energy" mix as well as oil and water. In reality, the technological advances formulated through each have direct implications on everyday driving. Performance coupled with efficiency. Together, it's a very compelling story.

It demonstrates that we're all facing the challenge of alternative energy together - from the top engineers at the racetrack to the brighest minds of the future in the classroom.

May the best ideas win!

Motorsports in the Mile High

2009-05-28T09:51:00.000-07:00

Denver is buzzing about a $200 million racetrack complex that has reportedly received the green flag. The location is ideal - 10 minutes east of Denver International Airport off of I-70.

However, if developers expect a Sprint Cup Race, they’ll have to get in line. And they do expect it. Otherwise, there wouldn’t be 65,000 – 100,000 seats in the plan.

We’re excited about the prospect of elevating the motorsports scene in Denver. Hopefully this announcement spurs action after many failed attempts to build a racetrack.

The key to success is partnership. The developers must align with ISC (Int’l Speedway Corp.) in order to secure a Sprint Cup date. Additionally, local attractions such as Bandimere Speedway and the National Western Stock Show Complex could relocate and upgrade their facilities.

These partnerships need to be solidified in advance of any groundbreaking. It’s a tough task, but it is possible. It’s the only way this venture will be successful.

The real question is why haven’t more Colorado companies taken advantage of NASCAR? With its 10-month schedule that criss-crosses the country, and rabid fan base, NASCAR is ideal for companies that want to increase awareness and expand nationally. And Colorado has a long track record of successful start-ups!

NASCAR is incredibly accommodating to budgets big and small. The common myth is that it requires $15 million to play. In reality, the cost of entry is considerably lower than any of the major sports leagues. Effective use of sponsorship assets is what allows success at a variety of investment levels.

Pennzoil Victory Challenge

2009-05-20T15:15:00.000-07:00

Is it possible for sponsors to stand out from the NASCAR clutter without breaking the bank? Yes – with some creativity and little help from your friends.

For Pennzoil, SD partnered with SPEED Channel and Lowe’s Motor Speedway to create an entertaining, proprietary event before the All-Star Race. In addition to reaching fans attending the race, the Pennzoil Victory Challenge was televised LIVE by SPEED. This takes motorsports marketing to the next level.

The concept: Seven top NASCAR drivers are invited to showcase their best victory celebration skills (smoking tires, donuts, etc.) with the winner receiving $10,000 for their charity.

NBA has the Slam Dunk Contest. MLB has the Home Run Derby. And now NASCAR has the Burnout Challenge.

An added dimension - the cars are “two-seaters” allowing for a Ride-A-Long participant with each driver. This gives Pennzoil an opportunity for customer recognition, media engagement and direct fan involvement through an experience that can not be bought.

The 2009 participants:
Greg Biffle: Shell U.S. CEO Marvin Odum
Clint Bowyer: ESPN’s Lead NASCAR Reporter Marty Smith
Kyle Busch: CNBC’s Sports Business Reporter Darren Rovell
Jeff Gordon: Jeff Gordon Foundation Participant
Kevin Harvick: Pennzoil “Ride Shotgun” Sweepstakes Winner Jeanie Matthews
Kasey Kahne: Lowe's Lucky Fan-in-the-Stands Danny Rodgers
Darrell Waltrip: Marci Gratizanna from SPEED TV Show “Wrecked”

SD added a new dimension to the 2009 event – leverage the celebrities already onsite to form a panel of judges. They included (left to right) SPEED's own Jimmy Spencer, NASCAR spokesperson and actor Kevin Costner, Eddie Montgomery and Troy Gentry of the award-winning country music group - Montgomery Gentry, NFL All-Pro wide receiver and NASCAR Truck Series owner Randy Moss plus 16-time World Wrestling Champion Ric Flair.

The event exceeded expectations for ROI and impressions. SD designed it to bring value to all partners (Pennzoil, SPEED and Lowe’s Motor Speedway) which allowed us to collectively tap each other’s resources to create an event that allowed Pennzoil to rise above the sponsor clutter.

This pulled together many different aspects of sponsorship activation, including public relations, branding, entertainment, promotion and media engagement. So how can you effectively implement something similar for your business? Well, this is certainly a sweet spot for SD, but I will explore various avenues of this in future posts that you can learn from.

Where's the Value?

2009-02-06T11:53:00.000-08:00

Oftentimes, it’s right in front of you. If there has ever been a need to focus on value, it is now. Our friends at Merriam-Webster define value as “relative worth, utility, or importance”.

With the uncertainty of the economic situation, we need to revamp, refocus and ensure we are maximizing our value with all of the sponsorships and programs we are involved with.

Every asset has worth and importance – maybe not to you, but certainly to your stakeholders.

I have reviewed many cases where the available assets are not all utilized. Sponsors use the standard driver visits and exposure elements, but few truly know and understand all of the assets available to them!

Take a closer look at your contract. Delve into the assets sections and consider new and creative ways to leverage them. In most cases, it probably won’t cost you anything.

As an example, make sure you use all of your event credentials - “hot passes”. You may not have hospitality at every race, but it does not mean those credentials should go to waste. Perhaps some vendors or local customers could use them. Offer them to a business prospect. And since they are difficult to obtain and provide unique access, offering a credential provides the recipient with a valuable opportunity that will be remembered.

A prospect may remember a dinner; but they’ll never forget a “behind the scenes” VIP experience at a race. If you can make them a hero, they’ll make you one too.

Make a list for each event. If you receive four per race, make sure and use as many as possible…reach out beyond the normal “guest list”.

You never know, something of value may come back to you.

They always talk about the fans.

2009-02-05T11:54:00.000-08:00

Lately, promoters and sanctioning bodies have been talking a lot about race fans. Fans are the foundation and barometer of any sport’s importance. The more fans, the more media attention, financial stability and the higher up the food chain the sport becomes.

NASCAR is an exciting sport for sure, but its relevance comes from the size of its fan base. Without the emotion and loyalty of its race fans, NASCAR would be just another struggling racing sanctioning body in the U.S.

So, when I hear anyone talking about “it’s about the fans”, I often take a minute to see if they are really serious. Knowing that fans are the life-blood of the financial success of the industry, let’s make sure they are getting treated with respect and provided significant value.

For promoters, it’s offering a heightened experience during the race weekend. It is not continuing a PSL (personal seat license) program to force a multiple race purchase (many of the races fans could care less about), rather it is about providing more access, better food options, reasonable prices, adequate and improved restroom facilities, and the list goes on.

Bruton Smith and the SMI properties seemed to be focused in these areas. With choices and limited income to spend this year, fans will be very choosy on what they will spend their money on. Those businesses that provide value, such as the Neon Garage as Las Vegas Motor Speedway, should weather this financial storm quite well. Those that don’t are in for a tough season.

And then there are the sponsors, teams and support agencies that should be valued as well. That’s a topic for another day…