Barry Bronson Director of Communications - Valvoline

A Division of Ashland Inc.Lexington, Kentucky, USA

Activating Sponsorship to Achieve Strategic Business Objectives

A Sponsor - Owner View

Insert SEMA video Nov. 2006Up until MaxLife commercial;Include: At Track Race shop End with logos.

Valvoline SponsorshipGoal is to extend the Valvoline BRAND to popular sports

by achieving disproportionate exposure to dollars spent . . . and by attaching high-performance imagery to our products.

• Use motorsports for BRANDING• Use motorsports as ALTERNATIVE MEDIA• Element of our ADVERTISING• Element of our PROMOTIONS• Element of our CUSTOMER RELATIONS

PUBLIC RELATIONS VEHICLE

SALES PROMOTION VEHICLE

PRODUCT COUPON SAMPLING

TV BRAND EXPOSURE

LICENSING APPAREL,

SOUVENIRS

BUSINESS-TO-BUSINESS

DEVELOPMENT

SHOWCAR PROGRAM

HOSPITALITY VEHICLE

INCENTIVE VEHICLE

RESEARCH & DEVELOPMENT

NEW PRODUCTS

PRINTBRAND EXPOSURE

PRIMARY TEAM CAR

SPONSORSHIP

DRIVER, TEAM ENDORSEMENT

REGIONAL RETAILER LEVERAGE

PERFORMANCE IMAGERY

Brand Fact-of-Life

Consumers in many cases are becoming active supporters of brands, not just buyers.

• 30 new commercials featuring 15 drivers• Fox broadcast - 33.7 million viewers

U.S. viewership. Source: FORBES Magazine

1. Super Bowl2. Summer Olympics3. World Cup4. DAYTONA 500

Sponsor as Owner• F1: Mercedes & McLaren. • F1: Honda buys out BAR. • F1: BMW takes over Sauber. • NASCAR & F1: Red Bull!• Valvoline was first consumer products company to own

NASCAR team.

Integration• A car by itself is just a colorful advertisement. • It is the FIRST dollar spent. • It gives you a platform on which to spend more dollars.• Field participation.• TREND: Properties reducing or even waiving fees in

exchange for more promotional commitment.

Current NASCAR Sweepstakes

Who is Doing it Right?

The Rights Fee Was Just The Beginning!The Rights Fee Was Just The Beginning!

Crown Royal presents the Jim Stewart 400

• Team sponsor activates with:– Media Buy– Sweepstakes– Cause Marketing– Publicity

• Entitlement recognized by broadcast, media partners

• Online Essay: “Most Memorable Crown Moment?”

• 15,000 entries, nine finalists• $50,000 charity donation• Jim Stewart

Retail Promotions

Noticing promotions while shopping NASCAR Fans Non-FansIndex NASCAR Fans vs.

Non-Fans

Store brochures / flyers 66% 54% 122 *

Signs on racks and shelves 62% 48% 129 *

Free standing display w/ product 60% 46% 130 *

Promo/displays at end of aisle 55% 43% 128 *

In-store demos 46% 35% 131 *

Video monitor displays 21% 15% 140 *

Source: Simmons National Consumer Survey (Spring 2006 – Fall 2006) * indicates statistical significance at the 95% confidence level

NASCAR fans are more likely than non-fans to notice and value a variety of promotions when shopping. Retailer to effectively reach these consumers with NASCAR-related themes.

NASCAR Developments

• New Markets Push (1999-present)– California, Indianapolis, Chicago, Kansas City, New Hampshire– Hoping for New York, Pacific Northwest, Denver

• Lengthened Season• Los Angeles Outreach• Overseas Expansion: More Licensing than Event Strategy

– Canada – CASCAR– Mexico – Busch Series Event– China?– “Stars But Not the Cars”– NBA Model– Strong licensing, merchandising, TV packages– In-country exhibitions

NASCAR International Expansion• International development and growth is an important long-

term strategic initiative for the industry.

• In a short period, NASCAR has expanded its reach and is now broadcast in over 150 countries and more than 30 languages.

• Expansion into Canada and Mexico represents the first stage of international development. New strategic partnerships in these markets are providing incremental growth opportunities for the industry.

Activation Learnings -- NASCAR

• The huge run-up in NASCAR sponsorship fees makes activation very expensive.

• Companies choosing to become sponsors are placing bigger bets on more selective group of targets.

• PR is cost-effective alternative to expensive sales promotion, events.

• “Shoulder” TV programming helps.• Sponsorships increasingly multimedia.• Racetrack littered with failed sponsorships,

activation.

Challenges to NASCAR Activation

• Networks leverage advertising for coverage.• Short-term sponsors.• Multiple sponsors per car.• International activity, but national budgets.• More scrutiny of ROI.• More non-traditional sponsors.• More interactive broadcasts, digital TV.• More “shoulder” programming.• Teams, tracks becoming more adept at negotiating

deals, making sponsorships pricier than ever before.

Activation: Partners Help

Leveraging Technology

• Not just marketing which is leveraged . . .

• For Valvoline, racing is laboratory for developing new consumer products.

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