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Riding With Suppliers Into the
NASCAR Profits Victory Lane
Unless you’re
there, at the track, with the roar of the engines ringing through your
head at a fever pitch, the next best way to catch the thrill is not to
watch at home by yourself or even with your buddies. No, there’s one
key element missing in that scenario: the supplier’s presence.
For on-premise operators, there are few better
sporting opportunities to take advantage of supplier promotional
dollars than with NASCAR. There’s more money in it than there is
sunburned skin at the actual event, and even if your operation isn’t a
chain partner in a supplier program, those suppliers want you to sell
more of their products, too.
Full Throttle Promos
“What it really comes down to is generating programs
that provide measured lift for franchisees,” says Bill Catania, account
manager with Bensur Creative Marketing Group, a firm whose specialties
are food and spirit/beverage marketing, wireless marketing and
motorsports marketing.
Marketing isn’t the only passion Catania fuels by
driving profit on-premise with NASCAR programs; at the age of 17, he
built and began racing his own stock car and today he still is involved
in racing, as the owner and driver of a NASCAR late model, competing
throughout the North East. But let’s talk marketing.
“As a franchisee, you make an investment, and you
expect a return,” he says. “For example, Lone Star Steakhouse just made
an investment in the Nextel Cup series, working on co-marketing
programs with Coors, centered around the Nextel Cup series. As a
franchisee, no matter where you are, you expect to generate some return
on that. It’s Coors responsibility as much as it is Lone Star’s
responsibility to put together programs that make sense that appeal to
the lifestyle trends of NASCAR fans — who number 40-50 million in North
America — and tap into that loyalty.
“Seventy-two percent of NASCAR fans buy products or
services that support their favorite sport, as compared to the 30s or
40s in the NFL. The Olympics is in the low 30s. So when you talk about
loyalty, driving traffic and driving repeat sales, NASCAR is just a
natural hotbed.”
Coors, Anheuser-Busch, Miller and a number of other brewers go with
auto racing, but big spirits are competing just as hard, and operators
who aren’t in radio contact with them may miss out. Coors Light, for
example, is creating and distributing “Trackside Chats” in conjunction
with four races throughout the 2006 season, giving race fans a
behind-the-scenes look at the world of NASCAR through the eyes of
rookie driver David Stremme. During these online interviews, Stremme
will comment on what it’s like to race in the NEXTEL Cup series and his
experiences on and off the track. And Bud’s involvement? The No. 8 car
— need they say more?
But, spirits definitely are in the mix in a major
way. “Two years ago was really instrumental for the spirit industry
because the ban on hard liquor (advertising) was removed,” Catania
says. “It’s exciting for spirit companies. Future Brands has done a
really good job with its Jim Beam execution. You’re starting to see
programs that integrate on-premise and off-premise. They have a great
program going right now to tie in their Indy car and NASCAR teams with
the Jim Beam sweepstakes. Diageo’s been really aggressive with Crown
Royal, but by and large, this is just the very beginning of it.”
Pit Crew Performance 
While it may be easy for the independent to accept
meager upswings in crowds and revenues on race days, moving into the
winner’s circle is entirely possible. It just takes hard work.
“As operators, they’ve got to do a good job
executing,” Catania says. “Whether it be point-of-sale, whether it be
the upsell, the whole goal is to drive incremental sales and drive high
margin and targeted margin products. That’s how these programs are and
should be created.”
Sharp execution is one thing for a large chain with
near-scientific, rote policies and training programs for its
franchisees, but it can be another matter entirely for the independent
operator, putting the tires on the promotional car without the right
tools, so to speak. But even the small guys can achieve leader status
in their neighborhoods and markets.
“I think the programs the suppliers are building are
very turnkey for franchise operations. They work with marketing firms,
and they also do them in-house, to put together a cookie-cutter
program,” Catania says. “As an independent, you really have to take
responsibility to tap into that value. You have to work with your
suppliers, reps and distributors and get creative and activate. You’ve
got to activate.”
“Activate” is a word Catania uses often. The term is best explained by example.
“When a company spends money on sponsorship in motor
sports, they have to spend another dollar per dollar to promote the
promotion,” Catania says. “So those funds are there, on behalf of the
suppliers, so long as it’s a good account. You really have to get
creative and work with your distributor and supplier directly. You
really should be entitled to the same promotion that’s being executed
at the franchise locations.”NCB
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