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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 Image
    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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