Finish Line

Klondike, the ice cream bar, is the latest brand to join an elite group of Unilever products tied to NASCAR.

Racecar driver Kasey Kahne represents nine brands, collectively known as “Ultimate Chargers.” His image and voice are used for marketing, and he makes personal appearances.

Sales typically jump 50% simply by pasting the image of a well-liked driver, like Kahne, on packaging, Unilever says. Even so, each brand is backed by plenty of marketing muscle.

“We’ve been able to meet everyone’s needs to do multiple brands under one sponsorship,” says Nancy Davis, Unilever’s shopper marketing manager for the southeast division and NASCAR.

The other brands pitched by Kahne are: Ragu, Hellmann’s, Shedd’s, Lipton, Lawry’s, Wishbone, Wisk and Slim-Fast.

Klondike is NASCAR’s first ice cream partner. It debuted last February at the Daytona 500, launching the largest marketing activation in its history.

At the track the Klondike logo appears on Kahne’s No. 9 car and racing suit. At a tented area just outside the tracks samples and coupons are distributed. A “master of ceremonies” talks up the nine brands. Visitors can use a driving simulator to see what it’s like to maneuver a racecar on some of the major racetracks around the country.

A traditional ice cream truck wrapped in Klondike branding is also used for sampling. The truck makes the rounds through NASCAR campgrounds, some that accommodate as many as 60,000 people. The vehicle also visits local stores and events, like Speed Street, which was held in May in Charlotte, NC, during race time.

As part of a media push, Klondike is the first brand to promote its NASCAR sponsorship in TV spots, which also air on Jumbotrons at the tracks.

At retail, P-O-S materials support packaging that shows images of Kahne, who drives for Evernham Motorsports, and the “Proud Sponsor of NASCAR” callout.

Yellow Flag

Unilever began its partnership with NASCAR in the mid-1990s. It put the images and logos of a handful of food and personal care brands on racecars and watched them roar around the tracks. But not much else happened.

The problem, as it turned out, was that very few dollars had been earmarked to back the deal with in-store promotions, driver appearances or sampling events.

“We learned our lesson going down that path that you’re never really going to get your return on investment unless you leave enough dollars back to activate at retail,” Davis says.

In 2004, Unilever tried again. It went back to the races part time, or 13 races per year, with three food brands — Ragu pasta sauce, Hellmann’s mayonnaise and Shedd’s Spread Country Crock chilled sides and meals — and plenty of funding at track and stores.

Early positive results prompted Unilever to go full time with 35 races a year in 2005. It added Lipton tea and Lawry’s seasoning and spice blends and marinades. One year later, it expanded the sponsorship again with Wishbone salad dressings, and moved beyond food to include home and personal care products Wisk laundry detergent and weight-control product Slim-Fast.

Also last year, Unilever employed AC Nielsen to determine the amount of incremental volume attributable to its NASCAR sponsorships, a significant step in helping Unilever define and refine the program. Nielsen looked at key retailers, specific displays, FSIs and print ads and TV spots focused on the NASCAR alliance.

“Based on our investment, we’re seeing a 5:1 return,” Davis says. “It’s a very good return on investment. Overall, NASCAR is very successful and profitable for us.”

The Nielsen data, combined with internal assessments, resulted in the decision to drop Wishbone and Slim-Fast from the program and to scale back to 25 races.

“Not all tracks are created equal,” Davis says. “Some are better for us to be at from a promotional side versus being at all of them. What we’ve found is a nice medium.”

Faithful fans

One reason for the program’s success is matching products that have a good fit with the NASCAR demographic.

Considered a gender-neutral sport, NASCAR draws audiences of 100,000 to 250,000 per race that are 60% male and 40% female. The Busch series shifts slightly to 55% male and 45% female. Fans range from young families to empty nesters. Females ages 25 to 45 years old those out buying the products Unilever has under its NASCAR sponsorship.

“The growing number of fans was a key factor in our decision to sponsor NASCAR racing and develop NASCAR-branded products this year,” says Julio Del Cioppo, Klondike’s director of marketing.

And they’re a loyal bunch.

“The NASCAR consumer knows that if it wasn’t for sponsors like us supporting the cars out there they wouldn’t be out there,” Davis says. “If they see a Kasey Kahne on packaging, they know it’s important to buy those products to support NASCAR.”

When NASCAR branding appears on packaging, that helps drive the 50% increase in sales. Shoppers often buy one for consumption and another for a keepsake or to sell on eBay, Davis says. Kahne’s popularity remains strong, ranking either No. 3 or No. 4 among other NASCAR drivers.

“A NASCAR fan is three times more likely to purchase a NASCAR-sponsored product than any other,” she says.

Racecar driving is a dangerous sport. Unilever and other brands spend millions on the sponsorship, often designating huge sums to promote one driver, like the deal with Kasey Kahne. Do they worry?

“Yes, there’s always a concern,” Davis says. “It’s obviously a risk, but never one where we said, ‘maybe we’d better consider golf.’”

Case Study: Office Depot — Official Small Business of NASCAR www.thepromoevent.com

NASCAR AT A GLANCE

• NASCAR consists of three major national series (NASCAR Nextel Cup Series, NASCAR Busch Series and the NASCAR Craftsman Truck Series) as well as eight regional series and one local grassroots series. It sanctions more than 1,500 races at more than 100 tracks in 35 U.S. States, Canada and Mexico.
• The racing series is the No. 1 spectator sport — holding 17 of the top 20 attended sporting events in the U.S.
• The No. 2 rated regular-season sport on television with broadcasts in more than 150 countries.
• 75 million fans, one-third of U.S. adults, who purchase more than $2 billion in annual licensed product sales
• NASCAR runs 41 races annually
• Sponsors include Allstate, Nextel, Pepsi, Coca-Cola, Budweiser, Samsung, Gatorade, Chevy, Ford, Toyota, Daimler-Chrysler, Dodge, Goody’s and Subway
• 34% of fans are between 18-34 years old; 60/40 split among male/female fans
• 41% of fans earn $50,000 or more per year
  Source: www.Nascar.com