Green Industry NASCAR Sponsorships

WHY NASCAR? The demographics of the NASCAR audience are a driving force behind these manufacturers’ decisions to become involved in the sport. "The NASCAR fan is a Husqvarna outdoor power equipment user," said Barbara Paez, Husqvarna’s director of marketing. "It was a perfect match up."

Paez said the demographics fit on both the homeowner and commercial user sides of their equipment offerings. "If I go to a landscaper meeting, they’re all trying to talk to me about NASCAR. When I’m talking to consumers at someone’s dealership, they are NASCAR fans," she said.

Bill Becker, Deere’s manager of event marketing, said the loyalty factor of NASCAR fans is a strong reason to become involved with the sport. "There are some figures that say 75 percent of racing fans will purchase products because you’re in NASCAR," he said. "Then we did our own research, and it was closer to 90 percent." He also said that professional landscapers, golf course superintendents and their employees are very interested in NASCAR. The tie-in to the golf market has even prompted Deere to develop a relationship with the Golf Course Superintendents Association of America (GCSAA), which includes adding the GCSAA logo to the Deere racecar.

The exposure of the sport is also a large motivating factor to become a sponsor, as approximately 150 million people watch the races on television, according to Becker. He also said that the television exposure of the sport is projected to increase by 50 percent as NASCAR racing moves from cable to broadcast networks, including NBC and FOX.

SPONSORSHIPS. Deere joined up with NASCAR about six years ago through Mark Rippen Motorsports Racing, which was later bought out by Roush Racing. Deere researchers analyzed the benefits of a NASCAR sponsorship and found enough reasons to start sponsoring through Deere’s division in Raleigh, N.C. However, it quickly became evident that the same customer base was spread across Deere’s entire organization. "NASCAR squarely hit the customer from agriculture to construction to power systems to consumer and commercial equipment. As a result the program is now corporate-wide," explained Becker.

Deere sponsors an entire car, the No. 97 John Deere Winston Cup racecar, which is driven by Chad Little. A car sponsorship is different than other companies’ sponsorships of pieces of a car, such as the hood, bumpers or doors. Becker explained that sponsoring the entire car was ideal due to the visibility and name recognition week in and week out. The company has been asked to sponsor races, but Becker said Deere could do three to four races, which generate less visibility, for the same price as supporting a car. Plus, he said, people are not loyal to tracks.

The loyalty among most racing fans, according to Becker, is to the car first and the driver second. Therefore it is important to have a good driver – not necessarily one that wins often, but rather one that is personable and respected. Like many NASCAR sponsors, Deere uses its driver as a goodwill ambassador to the company. Becker said Little is an excellent spokesperson as he appears at media events and shows up in several service-related videos.

"There are a lot of racing themes that are compatible with themes in business, including themes like teamwork, winner’s circle, victory lane, driving and racing," explained Becker. These themes are evident in the company’s promotions, advertising, videos, dealer open houses and trade shows, giving Deere a wide array of tie-ins to the NASCAR sponsorship.

In 1998 Husqvarna started its NASCAR marketing plan by becoming an associate sponsor of Joe Gibbs Racing, which boasts Bobby Labonte’s #18 Interstate Batteries Pontiac car for Winston Cup races. As part of the agreement, Joe Gibbs, the former coach of the NFL Washington Redskins, himself is featured in television ads, print ads, hospitality events and dealer communication. The decision to go with that team was due to Gibbs’ persona. "Joe Gibbs has great integrity, and his values fit with Husqvarna values," explained Paez.

The company covers the full range of sponsorships by supporting the Gibbs team, individual tracks and NASCAR radio networks. The track sponsorships including being the official outdoor power equipment for Texas Motor Speedway, Talledega Superspeedway and New Hampshire International Raceway. Television viewers will also see the Husqvarna name and logo on in-car cameras, which the company also sponsors. "I think we’re one of the few companies that, as NASCAR would say, activates the sponsorship in all of those areas," said Paez.

In December 1999, Husqvarna announced that it is now the Commercial Lawn Care Equipment of NASCAR. Paez explained that this is mainly a marketing sponsorship. "We will be putting the NASCAR name on all of our commercial mowing equipment. And we can do television and radio commercials with that tag line," she said.

NURTURING CUSTOMER RELATIONSHIPS. Both companies put great stock in maintaining strong relationships with their customers. In fact, Husqvarna’s mission statement is, "Through nurturing our customers we will be their number one choice." Part of maintaining these relationships includes inviting customers to Winston Cup races and giving them the entire NASCAR experience.

Husqvarna owns suites at several NASCAR tracks, which are used to entertain some of the company’s top dealers. During the weekend, the customers watch a race and tour the Joe Gibbs Racing pit and garage areas. They also get a chance to meet Gibbs and sometimes Labonte for autographs and photos. The races are watched from the comfort of Husqvarna’s air-conditioned, quiet suites, allowing time for some valuable feedback. "It’s a great way for us to be with our customers and talk about what’s important to them in their business," said Paez.

Deere has similar race weekend events for its customers as well. However, because Deere’s customer base also includes several other specialty markets, larger groups are invited to the races. Customers from Deere’s several divisions choose from a variety of race day packages. The most popular package includes a two-day stay at a hotel at which attendees enjoy a hospitality reception featuring John Deere team members.

On race day, the customers go to the track for a behind-the-scenes look at some of the NASCAR facilities, including time at a hospitality tent where they can interact with Little. According to Becker, approximately 20,000 people attend Deere’s race day events throughout the year, and 60 percent of the invites are end users, 30 percent are dealers and 10 percent are Deere employees. "The biggest benefit is that you’re getting closer to your customers," said Becker. "Relationships are important to the whole company, especially in the divisions, so this is another way to help strengthen the existing relationships and build new ones."

SPENDING. Although Paez would not give any specifics about Husqvarna’s sponsorship spending, she did say, "We get more out of it than what we spend because we use it in every way we can." The use includes featuring the relationship in on-hold messages, company catalogs and commercials with Gibbs. Spending for Husqvarna comes in the form of giveaways, too, as the company periodically challenges the pit crew to better their time in return for some Husqvarna equipment, such as chainsaws, trimmers and blowers.

Because Deere has a primary sponsorship for an entire car, its expenditures fall in the $5 million to $10 million range annually. Becker explained that this is the current range for a team to be competitive in the sport. However, he also said it is rumored that UPS is going to create a sponsorship totaling $15 million in the near future. That increased sponsorship could up the ante for other sponsors and seriously affect marketing strategies and participation in the sport, according to Becker.

PROMOTING ONLINE. Both Husqvarna and Deere dedicate web sites to the Motorsports divisions. Both companies’ sites include online shopping for racing apparel and other items. Husqvarna’s web site at www.husqvarna.com/racing/shl_racing.htm includes a brief introduction from Gibbs and racing schedules for both the Winston Cup and National Hot Road Association races.

Deere’s web site at www.deere.com/deerecom/_Motorsports/default.htm also features racing schedules and a variety of other information, including the latest news about team members. The site also features race summaries and Tech Talk, in which Jeff Hammond shares his experiences from a crew chief's perspective. The latest topic Hammond covered was the significance of not holding Winston Cup races on Mother’s Day. "This is NASCAR’s way of thanking the mothers for their support of the sport," writes Hammond.