Sponsorship Proposal PRT 466 Brett Edwards Jonathan Potter Amber Butler Zachary Hutchison Dixon Christy Page|2 Primary Sponsorship Opportunity for the NASCAR Cup Series Dear Time Warner Cable Marketing Personnel Staff: The National Association of Stock Car Auto Racing has recently learned that Sprint will not be renewing their sponsorship of the Cup Series at the end of the 2013 season. NASCAR, as a sport organization is now in its 65th season. In those 65 years, only two sponsoring organizations (The R. J. Reynolds Tobacco Company and Sprint) have had their name tied to the sport. This gives a corporation a very unique opportunity to expand their marketing and product presence like no other organization can with our nationwide sport. We here at NASCAR would like to reach out to your organization because we feel our target markets, marketing strategies and product goals align. Time Warner Cable, over the past year, has become more and more a part of NASCAR. Sponsoring Dale Earnhardt Jr. as well as Kasey Kahne for select races has begun to make TWC a recognized organization among fans and viewers. If you choose to sponsor the top series of NASCAR we guarantee exposure for your company like never before. Commercials will run throughout the week for the upcoming race on multiple television networks throughout the 10 months NASCAR is running. Specialty networks such as Fox Sports 1 carry NASCAR related talk shows and other broadcast throughout the week. Our championship series (The Chase for the Cup) is covered by ESPN giving opportunity for fans of all sports to see the Time Warner Cable logo every day on driver’s fire suits, live interviews, and SportCenter coverage to name a few. Attached with this letter is a proposal packet discussing the ideas our marketing staff has planned out to successfully partner with TWC. Please consider this very rare opportunity as an advantage for your company over competitors, and know NASCAR will do whatever it takes to ensure your success in this venture. With best regards, Greg Downey Greg Downey NASCAR Senior Director in Brand and Consumer Marketing NASCAR Corporate Headquarters (386) 253-0611 1 Daytona Blvd. Daytona, FL 32114 Table of Contents Primary Sponsorship Opportunity for the NASCAR Cup Series ..................................................... 2 Page|3 Executive Summary ................................................................................................................................ 6 Description of National Association for Stock Car Auto Racing (NASCAR) .............................................. 7 NASCAR Divisions ................................................................................................................................ 7 Time Warner Cable Cup Series Race Cars ............................................................................................. 7 Time Warner Cup Series Branding........................................................................................................ 7 Time Warner Cup Series Point System ................................................................................................. 8 Iconic Names of NASCAR ..................................................................................................................... 8 Time Warner Cup Series Race Tracks ................................................................................................... 8 Brief History of NASCAR Time Line ......................................................................................................... 9 Description of Time Warner Cable ........................................................................................................ 10 Reach ................................................................................................................................................ 10 Customers ......................................................................................................................................... 10 Features of TWC Cable Television ...................................................................................................... 10 Brief History of Time Warner Cable ...................................................................................................... 11 Description of Events ............................................................................................................................ 12 Locations: .......................................................................................................................................... 12 Dates & Times: .................................................................................................................................. 12 Staffing and Experience: .................................................................................................................... 12 Compatibility of the NASCAR and Time Warner Cable Partnership ...................................................... 13 Target Market of the National Association of Stock Car Auto Racing ................................................... 14 Demographics ................................................................................................................................... 14 Gender Distribution: .......................................................................................................................... 14 Age Distribution:................................................................................................................................ 14 Race Distribution: .............................................................................................................................. 14 Target Market of Time Warner Cable Inc. ............................................................................................. 15 Consumer Statistics ........................................................................................................................... 15 Geographic Demographics ................................................................................................................. 15 Age Distribution:................................................................................................................................ 15 Race Distribution: .............................................................................................................................. 15 Income: ............................................................................................................................................. 15 Page|4 Education: ......................................................................................................................................... 15 Media and Promotion Plan ................................................................................................................... 16 National TV ........................................................................................................................................ 17 Radio ................................................................................................................................................. 18 Print Media........................................................................................................................................ 18 Internet ............................................................................................................................................. 18 Social Media ...................................................................................................................................... 19 Naming rights and the NASCAR Logo ................................................................................................. 19 Hospitality ......................................................................................................................................... 20 Signage .............................................................................................................................................. 20 Promotion Pitch................................................................................................................................. 21 Impact Measurement ........................................................................................................................... 23 Measuring Media Coverage ............................................................................................................... 23 Measuring Brand Awareness ............................................................................................................. 23 Measuring Product Sales ................................................................................................................... 24 Sponsorship Package ............................................................................................................................ 25 Product Trail and Sampling Opportunities .......................................................................................... 25 Media Coverage and Exposure ........................................................................................................... 25 On-site Signage .................................................................................................................................. 25 Increased Sales .................................................................................................................................. 26 Product Trial, Promotion and Sampling Opportunities ....................................................................... 26 Media Coverage and Exposure ........................................................................................................... 26 On-site Signage .................................................................................................................................. 27 Direct Customer Hospitality ............................................................................................................... 27 Co-Sponsorship Opportunity.............................................................................................................. 28 Addendum .......................................................................................................................................... 29 Visual Examples of Branding and Signage ....................................................................................... 29 NASCAR Race Day Studio Desk ........................................................................................................ 29 Time Warner Cable Fan Zone ............................................................................................................. 29 Page|5 On-site signage .................................................................................................................................. 30 Outside Wall Signage Placement ........................................................................................................ 30 In-car Camera Advertisement ............................................................................................................ 31 Driver Interviews & Media Days ......................................................................................................... 31 Vinyl NTWCS Decals ........................................................................................................................... 32 Embroidered NTWCS Logos on Driver Firesuits .................................................................................. 32 Citations ............................................................................................................................................... 33 Page|6 Executive Summary The National Association for Stock Car Auto Racing or “NASCAR” is a family-owned business that was started in 1948 by Bill France Sr. Since the inception of NASCAR, Fortune 500 companies have continuously sponsored cars, events, merchandise, and other licensed products. In the beginning of NASCAR sponsorships, many alcohol and tobacco companies sponsored events and cars, but have since flourished into a multitude of other businesses and corporations including candy, cellular providers, and many other types of products. Because of the large draw that NASCAR has all across the nation, NASCAR sponsorships provide great exposure to all corporations that partner with the stock car organization. Obtaining a sponsorship agreement with NASCAR will avenues for Time Warner Cable to increase brand exposure through all of NASCAR’s media channels as it will be the forefront sponsor and the face of NASCAR’s top championship series. Aligning your organization with NASCAR will create a mutually beneficial partnership that will allow both parties to reach their goals and objectives. The proposed sponsorship package between Time Warner Cable and the NASCAR Cup Series will provide: • • • • • Local and National exposure as well as an exposure with the nation’s 2nd most televised sport New business opportunities to gain new and retain current Time Warner Cable subscribers with the creation of NASCAR fan specific networks and program packages The creation of a Time Warner Cable NASCAR channel and website which will allow exclusive race access to only TWC subscribers that other fans will not be able to find anywhere else Mutual access to both Time Warner Cable and NASCAR fan bases for both organizations Will help both NASCAR and Time Warner Cable enhance their national and global exposure Time Warner Cable opportunities for promotional activities at NASACR events include: • • • • • Signage at all 22 first class racing facilities. Graphic display of NASCAR Time Warner Cable Cup Series logo will appear on all HD video boards, televised broadcasts, commercials, and merchandise Ability to create the Time Warner Cable “Fan Zone” at all races which will provide unique opportunities for fans to experience race day Will allow for special Time Warner Cable giveaways before, during, and after the race Expansion of Time Warner Cable’s marketing segmentation throughout the United States As sundry hospitality offers at all race tracks including the TWC box suites, merchandise, licensed products, and ticket discounts with redeemable offers for TWC subscribers One of NASCAR’s main focuses is to expand not only the brand of stock car racing, but also all sponsors involved in making this organization what it is today. NASCAR is committed to building and maintaining a long lasting relationship with all sponsors while being able to provide a safe and entertaining environment for all drivers, staff, and fans during each of the 36 races throughout the year. Page|7 Description of National Association for Stock Car Auto Racing (NASCAR) The National Association for Stock Car Auto Racing (NASCAR) is the sanctioning body for premier sport racing. Though the races are held mostly in the United States, they are “broadcasted in more than 150 countries and 20 languages” (NASCAR.com). There are eleven divisions of racing that make up NASCAR (listed below). NASCAR sanctions more than “1,200 races at 100 tracks in more than 30 U.S. States, Canada, Mexico and Europe” (NASCAR.com). NASCAR Divisions • • • • Three main series o Time Warner Cable Cup Series o Nationwide Series o Camping World Truck Series Four regional series One local grassroots series Three international series Time Warner Cable Cup Series Race Cars The race cars are based on four-door American made cars and built completely for racing. Over the years, the sport has seen many body style advancements and technological developments through the NASCAR Research and Development Center. As the top series under the sanctioning body of NASCAR, rookie and veteran drivers competing in this series are the forefront of the sport as they climb into the most challenging, yet most technologically advanced machines the sport has to offer each weekend. An overlook at the basic specifications for a TWCCS racecar are as followed: • • • • • Weight: 3,400lbs (with driver) Wheelbase: 110 inches Engine: 358 cubic inch V8 Horsepower: over 750 Chevrolet, Dodge, Ford, Toyota Time Warner Cup Series Branding • • • • Drivers and team members are held at high responsibility to be public spokesmen for the multiple sponsorships of their organization Racecars are view as high speed moving billboards to increase brand image and sport partnership NASCAR fans are known for brand loyalty More involvement from Fortune 500 companies than any other sport Page|8 Time Warner Cup Series Point System Drivers and teams have the opportunity to gain points towards winning the Sprint Cup in each race. Below is a diagram that explains how the point system works. Image taken from Chase for NASCAR Sprint Cup Explained written by NASCAR.com. Iconic Names of NASCAR • • • Legends: Dale Earnhardt, Richard Petty, Bobby Allison, Darrell Waltrip, Cale Yarborough Current Superstars: Tony Stewart, Dale Earnhardt Jr., Jimmie Johnson, Jeff Gordon, Kyle Busch Females: Danica Patrick (current); 16 throughout history Time Warner Cup Series Race Tracks • • • • 36 races on 22 different tracks 34 on ovals or d-shaped tracks (with all left turns) 2 races held on road tracks Size varies from .526 to 2.66 miles Brief History of NASCAR Time Line Page|9 Early 1900s: Stock car racing gets its start during Prohibition, with moonshine runners attempting to flee federal tax agents Dec. 14, 1947: Bill France Sr. holds a meeting in Daytona Beach, Fla., to discuss the future of stock car racing and NASCAR is conceived Feb. 22, 1959: Lee Petty wins the first Daytona 500 in front of 41,000 fans July 16, 1961: ABC Sports televises two hours of the Firecracker 250 from Daytona as part of its Wide World of Sports Dec. 1, 1963: Wendell Scott is the first African-American to win a premier division NASCAR race at Jacksonville Speedway 1964: Richard Petty wins the first of seven championships Jan. 10, 1972: Bill France Sr. hands leadership of NASCAR to his son, Bill France Jr. Nov. 18, 1979: Richard Petty wins his record seventh series championship 1986: NASCAR renames its premiere series the NASCAR Winston Cup Series Nov. 15, 1992: Richard Petty retires after 35 years of racing 1994: Dale Earnhardt wins his seventh series title, matching Richard Petty's record 1998: NASCAR celebrates its 50th anniversary Feb. 18, 2001: Dale Earnhardt Sr. dies in a final lap crash at the Daytona 500 2004: The chase for the NASCAR Nextel Cup is introduced, with the Top 10 drivers racing for the Championship in the last 10 races of the season 2004: NASCAR expands to Mexico City with a new Busch Series event for 2005 November, 2006: Jimmie Johnson won first of five consecutive championships in a row March 25, 2007: The car of tomorrow debuts at the Nextel Cup Food City 500 in Bristol, Tenn. 2010: Kyle Busch becomes first driver to sweep victories all three top series of NASCAR on the same weekend 2013: Generation 6 body style is introduced for the 2013 NASCAR Time Warner Cable Cup Series P a g e | 10 Description of Time Warner Cable Time Warner Cable (TWC) is a cable telecommunications company that connects more than 15 million customers in 29 states to entertainment, information and each other via cable television, high speed internet and telephone services. Time Warner Cable is constantly expanding their services and looking for new ways to meet the needs of their consumers. One new edition to TWC is their security management system. Customers can control their lights and view footage of their home from their laptops or cellphones. Customer satisfaction is Time Warner Cable’s number one priority as it competes to stay at the top of the field of digital technology. Reach • • • 29 states including: Alabama, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin 51,000+ employees Local television rights in North Carolina, New York and Texas that focus in on local community interests Customers • • • • • • 15.2 million customer relationships 11.7 million residential video subscribers 11.1 million residential high speed data subscribers 4.9 million residential voice subscribers 28.7 million primary service units (video+data+phone for all residential and business services) Increasing number of business customers Features of TWC Cable Television • • • • • • • Digital channels Music Choice Channels HDTV 3DTV TWC TV (allows customers to watch on computers, tablets, and mobile devices at any time) Look Back (allows customers to watch Primetime TV after it has already aired) Start Over (allows customers to restart a program once it has started) P a g e | 11 • • • On Demand/Pay-Per-View Parental Controls Sports Pass (package of up to 20 sport channels such as MLB Triple Play and NFL RedZone which allow customers behind the scenes access to sporting events) Brief History of Time Warner Cable Late 1940s: Entrepreneurs began using antennas and Army-surplus coaxial cable to create the first cable systems 1968: American Television and Communications (ATC) is founded 1973: Time Inc. acquires 9% of ATC 1973: Warner Communications forms Warner Cable 1978: Time, Inc. acquired ATC completely 1989: Time Inc. and Warner Cable merged, later known as Time Warner Inc. 1992: ATC and Warner Cable become Time Warner Cable; NY1 News is launched in New York City 1996: TWC launches RoadRunner®, the first cable-delivered high speed Internet service 1999: Digital cable and Video On Demand premiered 2003: Digital phone service established 2005: Triple Play offering is rolled out 2006: TWC gains additional systems and employees with Adelphia acquisition 2007: TWC becomes a public company 2009: TWC separates from Time Warner Inc 2011: TWC enables a “cloud” service by acquiring NewWave Communications and NaviSite 2012: TWC acquires Insight Communications P a g e | 12 2013: TWC won two Emmy Awards for innovations in Technology and Engineering 2013: TWC Chairman and CEO Glenn Britt announces he will retire at the end of this year after 41 years of service in the cable industry Description of Events Locations: 22 tracks across 19 states in the United States Dates & Times: Season consists of 36 weeks from February to November. Scheduled green flag times vary depending on location and time zone of the event. A full look at the current season’s schedule and the 2014 schedule can be found at www.nascar.com. Staffing and Experience: Each of the 22 tracks selected to house one or more of the 36 events on the NASCAR schedule is an organization in its own respect and have been involved in the sport of NASCAR dating back to the60’s. These first class racing facilities are fully staffed with Advertising & Marketing, Corporate Sales, Communications, Fan Development, Events, Finance, Gift Shop, Guest Services & Logistics, Levy Restaurants, Operations, PRN, Security, Speedway Club, and Ticketing departments. Speedway Motorsports Inc. (SMI) is a leading marketer, promoter and sponsor of motorsports activities in the United States. The Company, through its subsidiaries, provides souvenir merchandising services, and food, beverage, and hospitality catering services. Along with the departmental employees, tracks such the nine tracks owned by Speedway Motorsports Inc. invites volunteers and organizations from surrounding areas to become involved in the successful Quick Facts *The follow facts are selected to highlight the cost-benefit analysis of SMI and its most used and home headquarters track, Charlotte Motor Speedway SMI • • • • • • Founded by Bruton Smith in 1959 Annual Revenue: $570 Million 793 full time employees 9 first-class racing facilities Approx. 900,000 grandstand seating capacity with 832 luxury suites Hosts 12 of 36 NASCA annual events Charlotte Motor Speedway • • • • • Construction cost of $1.25 million 200x80ft HD screen (world’s largest) Hosts 3 NASCAR events (most of all tracks) 136,000 grandstand seats with 113 luxury suites Avg. attendance of 124,000 in 2012 for the 3 NASCAR events orchestrating of a NASCAR event that can encompass 146,000 fans on a typical weekend. NASCAR Audience Profile & Attendance Figures Data Annual NASCAR revenue $3 Billion Average NASCAR ticket price Number of NASCAR fans $88.16 75 Million P a g e | 13 Average NASCAR race attendance Total annual NACAR attendance Decline in NASCAR attendance from 2005 – 2010 99,853 3.6 Million 22 % Number of households that watch the Daytona 500 12.5 Million Percent of NASCAR fans who are women Annual amount spent by women on NASCAR-licensed products Percent of NASCAR fans who are minorities Percent of kids age 7 to 17 that reported being NASCAR fans Percent of fans who are willing to pay more to buy a sponsor’s product 40 % $250 million 21 % 50 % 66 % Percent of NASCAR fans who could name every sponsor of the top 30 ranked cars 36 % Compatibility of the NASCAR and Time Warner Cable Partnership NASCAR partnering with Time Warner Cable will provide unique advertisement avenues that Time Warner Cable could not find anywhere else, which will help its brand image. This is also true for NASCAR as it tries to expand its brand image during a tough economic patch in the sport. These two organizations partnering together would provide enhanced image recognition for both parties in equally exclusive ways, making both organizations extremely compatible. Both companies are also similar in these values: • • LOYALTY: Both are focused on creating a memorable customer experience to ensure loyalty to their organizations brand EMPLOYEE RELATIONS: Both focus on maintaining good employee relations within the organization, valuing the contributions and capabilities of the employees • SCALE: Both companies are focused on maximizing corporate scale and adopting the best practices of our business units • INNOVATION: Both are focused on the cutting edge of innovation when it comes to providing a next generation experience for its customers Time Warner Cable’s compatibility with NASCAR’s advertisement techniques would allow them to expand their brand image immensely. Statistics show why this is true: • • Advertising at live sporting events is more influential than on the TV and internet 80% agreed they would be more influenced to buy after attending a live event P a g e | 14 • • • • 81% agreed that it would make them more receptive to their marketing from the product/brand 80% agreed that it is more likely to give them information than other forms of communication 1 in 3 American adults follow NASCAR (75 million +) 80% of NASCAR fans said that, when buying a NASCAR sponsor’s products, they feel they are contributing to the sport Time Warner Cable’s image fits perfectly with NASCAR in congruency. Here are some ways in which Time Warner Cable has already proven themselves in being compatible in the NASCAR organization: • • Time Warner Cable has already partnered in the past with Hendrick Motorsports, sponsoring the cars of both Kasey Khane and Dale Earnhardt Jr. Time Warner Cable’s main focus is providing fast, high speed internet, and customer satisfaction. This fits perfectly with NASCAR being a high speed sports event that people can enjoy. Target Market of the National Association of Stock Car Auto Racing The National Association of Stock Car Auto Racing (NASCAR) spans one of the largest target markets in the world. The sport reaches countries all over the world bringing people to the United States to further support the market. NASCAR is very diverse in who they reach as a sport organization. The core of the target market is based in the Southeastern United States. In efforts to develop the sport, the Drive for Diversity program was established, and more international as well as minority drivers are becoming successful causing the target market for the sport to expand further. NASCAR is a multi-generational sport, passed down since the beginning of the organization in 1948. Tracks spanning all over the continental United States gives the sponsoring company a chance to reach millions during broadcasts thirty-six weeks out of the year. Demographics Gender Distribution: • • 68% of the fan base and viewers are male 32% of the fan base and viewers are female Age Distribution: • • • • • • 11% comprise the 18-24 year old age bracket 17% comprise the 25-35 year old age bracket 20% comprise the 35-44 year old age bracket 21% comprise the 45-54 year old age bracket 16% comprise the 55-64 year old age bracket 15% comprise the 65+ year old age bracket P a g e | 15 Race Distribution: • • • • 78% of the NASCAR population are Caucasian 9% of the NASCAR population are African American 9% of the NASCAR population are Hispanic 4% of the NACAR population fall under “Other” The demographic data presented represents the fact that NASCAR is no longer just a “white male” dominated sport. Woman are becoming more attracted by the sport possibly due to the addition to Danica Patrick and the femininity that she adds to the male dominated sport. The highest percentage of consumers of NASCAR are adults ages 35-54 with 41%. This is key to the overall success of the sport due to the fact that these are financially set individuals who are able to contribute monetarily to the sport to continue its growth. With that said, the sponsoring agency will garner immediate feedback due to the fact that almost half the fan base consuming the product are financially established adults. In addition to the demographics, NASCAR has tracks ranging from New Hampshire to Southern California which is sure to boost the recognition of the sponsor. Target Market of Time Warner Cable Inc. Time Warner Cable’s market spreads across all demographics. As with any television and media supplier, they aim for the 18-29 market segment to add perspective consumers and turn them into long-term customers loyal to their brand. Additionally, Time Warner Cable tailors its offerings to target businesses of all sizes with its Business Class services. Time Warner Cable’s offerings aim to reach every demographic and psychographic in America. Time Warner Cable is the second largest cable company in the United States. Services offered include video production, high-speed data and voice services, cell tower backhaul services to wireless carriers, managed information technology solutions, and cloud storage services. These services are offered in 29 across the U.S. Additionally, customers in New York, North Carolina, and Texas are provided with local, all-news channels that give viewers content targeting community interests. Consumer Statistics • • • • • 15.2 million customers 11.7 million residential video subscribers 11.1 million residential high-speed data subscribers 4.9 million residential voice subscribers 28.7 million video, data, and voice subscriptions for residential and business services Geographic Demographics P a g e | 16 Age Distribution: • • • • 20.5% comprise the 5-19 year old bracket 20.1% comprise the 20-34 year old bracket 34.4% comprise the 35-59 year old bracket 19.8% comprise the 60+ year old bracket Race Distribution: • • • • 65% of TWC consumers are Caucasian 10.8% of TWC consumers are African Americans 17.9% of TWC consumers are Hispanic 5.9% of TWC consumers are Asian/Pacific Islander Income: Median income of $58,184 with 60.7% being between $25,000 and $100,000 Education: 78.4% high school graduates, with 25.6% having a Bachelor’s Degree or above Media and Promotion Plan There is no shortage of media coverage when it comes to the sport of NASCAR. Our sport of NASCAR is unique to most sporting events as our schedule allows all three of our top competition series to travel to one location (on occasion two locations depending on size of the location) each weekend. Fans consider our events week long vacations as they travel from all over the world to take part in the experience of a NASCAR weekend. Here is a typical look into a week in NASCAR as our sport is blanketed with media coverage every step of the way: Monday - Wednesday • Race teams are back at the shop building and setting up their racecars for the track type of that weekend • Team meetings are held to discuss previous weekend results and plans for the following weekend Thursday • Teams load up haulers and crew members board airlines making their way to the scheduled race track for that weekend • Fans begin piling into the city where the race is held to being setting up campsites and tailgating areas getting the race weekend kicked off Friday • NASCAR Camping World Truck Series Practice • NASCAR Camping World Truck Series Final Practice • NASCAR Time Warner Cable Cup Series Practice 1 P a g e | 17 • NASCAR Nationwide Series Practice • NASCAR Camping World Truck Series Qualifying • NASCAR Time Warner Cable Cup Series Qualifying • NASCAR Nationwide Series Final Practice • NASCAR Camping World Truck Series Race Saturday • NASCAR Tim Warner Cable Cup Series Practice • NASCAR Nationwide Series Qualifying • NASCAR Time Warner Cable Cup Series Final Practice • NASCAR Nationwide Series Race Sunday • NASCAR Time Warner Cable Cup Series Race Although not mentioned on previously described typical NASCAR weekend, it is important to note that each weekend, NASCAR hosts a media day. This is typically held on a Thursday afternoon after the teams arrive at the track or Friday morning before the drivers hit the track for the days on track events. NASCAR media day is home to live driver interviews that can be found on www.nascar.com National TV Multiple broadcasting companies including: ABC, FOX, FOX Sports 1 (previously known as SPEED Channel), ESPN, ESPN2, and TNT currently air coverage of our top three series of the NASCAR sanctioning body at various points throughout our sports lengthy 36 week season. As of 2014, NBC Sports will also join this list broadcasting NASCAR throughout the season. P a g e | 18 NASCAR takes National TV spotlight in numerous broadcasting opportunities such as: • Live coverage of all three series on track practices including driver and team interviews and news updates • Live coverage of all three series qualifying attempts including driver and team interviews and news updates • Live coverage of all three series fully sponsored races • NASCAR Now (a daily ESPN roundtable talk show that brings driver and team news to the fans and discusses the previous and upcoming weeks on track and off track performances, controversies, and predictions) • NASACAR Race Hub (another daily roundtable talk show found on FOX Sports 1, previously known as SPEED Channel) • NASCAR Trackside (a pre-race show held right before the drop of the green flag for the NASCAR Camping World Truck Series discussing the nights race accompanied by interviews, news updates, and strategies) • NASCAR Race Day (a pre-race show for both the NASCAR Nationwide Series and the NASCAR Time Warner Cable Cup Series designed to engage the fans at the race track with driver introductions, autographs sessions and entertaining responses from NASCAR fans from around the world) • Countdown to Green ( another pre-race show held 30 minutes before the drop of the green flag for the NASCAR Time Warner Cable Cup Series recapping all the week long on track activities leading up to the weekends final race ending with final comments from the hosts and predictions for the race) • Commercials designed to promote the upcoming scheduled race using advertisement and driver marketing efforts Radio News, talk shows, and live broadcasting of all three NASCAR series can be found on air through live radio. Motor Racing Network (MRN) as well as Performance Racing Network both share coverage of the weekend’s events as local stations around the nations broadcast their live coverage. NASCAR also is home to our very own Sirius XM Channel. Each of these radio broadcasting networks also provide their listeners with the opportunity to listen their broadcasts online making live NASCAR race coverage more readily available. Print Media There are three forms of print media that can be associated with our sport of NASCAR. The two most impacting forms of print media are newspaper articles and NASCAR illustrated the magazine. The third P a g e | 19 form of print media can be found at our race tracks as souvenir programs listing driver and team info, advertisements, and upcoming events. Newspapers articles, almost always found in the sports section can provide our fans that did not catch any of the week’s action on National TV with final results, news updates, and information leading into next week’s schedule. NASCAR illustrated is a monthly produced magazine (similar to sports illustrated) that reveals information to all of the subscribing fans. NASCAR is such a “tight knit” when it comes to information and these forms of print media are a great source for finding information not readily known to the average fan. Internet NASCAR has its very own official website that can be found at www.nascar.com. Although information and final results from the weekend’s events can be found on major sporting websites such as www.yahoo.sports.com, www.espn.com, www.usatoday.com, www.jayski.com, and www.msn.foxsports.com, www.nascar.com is the most rapid, accurate, and up-to-date source for online information, results, and articles pertaining to the sport of NASCAR. The official website of NASCAR, www.nascar.com, has much more to offer to our fans rather that news and results. It houses a full video library of footage from current and past races, NASCAR Raceview (a form of technology uses to track live in race stats, strategies, in car cameras, and live audio scanners from drivers and teams), and a social media interface allow fans to give their input for specific NASCAR sanctioned events. Social Media Just like with the rest of the world, social media has made a major impact on the sport of NASCAR. Drivers and teams typically each have at least a Facebook page for themselves, a Facebook page for their fans, a Twitter account, and an Instagram account. Some drivers take a step further and venture into using YouTube to post videos of themselves recapping performances, give current updates directly from the driver and team, provide information, and to share personal video footage. Each of these drivers and/or teams uses social media simply to reach out and continue to maintain and grow a strong relationship with their fans. NASCAR also utilizes social media to provide information, as well as to gain feedback from fans and listen for ways to improve the sport and the overall fan experience. P a g e | 20 Naming rights and the NASCAR Logo As you may know, our current contract is ending with Sprint and the currently known NASCAR Sprint Cup Series. As the top series in our sport, the sponsorship will be entitled in the name of the NASCAR Cup Series. With the acquisition of Time Warner Cable as a sponsor for the NASCAR Cup series, there are multiple benefits. You will own the naming rights to the NASCAR Cup Series for the length of the contract and Time Warner Cable will be visibly noticeable in the design of the NASCAR Cup Series logo. Through our graphics design department, we have developed 2 options for your choosing. We methodically designed these logos incorporating your design and color choices of your current Time Warner Cable logos. The logo of your choice will appear: • As large graphics on every form of National TV NASCAR Broadcast, print media, social media, and internet source • Verbal recognition of Time Warner Cable when referring to the NASCAR Time Warner Cable Cup Series by teams, drivers, media, and fans On various driver and team merchandise • Any form of NASCAR Time Warner Cable Cup Series advertisement, commercial, or promotion • Signage • Pre-race Fan Zone Activities and other race day promotions Hospitality At each track that the NASCAR circuit visits throughout the season, a hospitality corporate suite is reserved for our primary sponsor. It is honored as the Presidents Suite at each location as it is the easiest accessible suite for its occupants and rests directly on the start/finish line at each track. Other benefits of the Presidents Suite include: • Glass enclosed & air conditioned seating available for 120 of your corporate members • TV monitors showing the race broadcast • Premium seating with food and drink counter on the front stretch in front of the start/finish line P a g e | 21 • • • • Full service wet bar and catered food with available tableside service without leaving your seat Suite is decorated with Time Warner Cable signage displayed for others to see Easily accessible and ADA compliant Professional dress code required to maintain professional image Signage Signage will be displayed around the tracks that the NASCAR Circuit visits each and every weekend. During the pre-race fan zone activities, hospitality tents, and driver introductions, banners and various forms of signage will professionally decorated with the NASCAR Time Warner Cable Cup Series logo, along with the Time Warner Cable logo itself. Other forms of signage will include: • 200ft x 350ft banner with the Time Warner Cable Logo displayed at each track (as show in the first picture like the Lowes Home Improvement and Food Lion banner) • Space reserved for a large billboard displayed around each track (picture 2) • NASCAR Time Warner Cable Cup Series logo painted on the outside walls of each track • Time Warner Flags displayed at each track in the Fan Zone Activities areas • Time Warner Cable décor found in the Corporate Suite, driver introduction stage, victory lane, and pre-race fan zone activities area • NASCAR Time Warner Cable Cup Series graphics displayed at on track video boards, TV broadcasts, and other forms of media sources • 3”x10” NASCAR Time Warner Cable Cup Series decal displayed on each of the racecars • NASCAR Time Warner Cable Cup Series logo printed on each printed ticket and event program • NASCAR Time Warner Cable Cup Series logo printed on various forms of driver/team apparel P a g e | 22 Promotion Pitch Becoming a full time sponsor of the “currently known as” NASCAR Sprint Cup Series can open up several business opportunities for Time Warner Cable. Here at NASCAR, we have thrown around several ideas and have created three promotion pitches to discuss with you that we feel can help you maintain current subscribers and generate new ones. 1. NASCAR has been under contract with Direct TV offering a package designed to increase the fan experience at home for Direct TV subscribers known as Direct TV Hot Pass. This package allows the fan to choose a driver each weekend and listen to in car audio through his television, display multiple camera angles such as in car camera and bonus angles not seen on the live broadcast, and live stats updates for that particular driver. We offer the rights to Direct TV at an undisclosed cost. With your sponsorship we will offer the rights to offer this package to your current subscribers at no cost to you. 2. Just as described in the above mentioned package that we can offer to Time Warner Cable subscribers, we can offer the rights to the same technology online known as www.nascar.com Raceview to increase the fan experience for subscribers of Time Warner Cable Internet Services. The rights will again be offered to Time Warner Cable at not costs. This will allow you internet service subscribers to access in car audio, live leaderboard updates, in race stats, and multiple camera angles on their home PC or laptop. P a g e | 23 3. Since December 31, 1995, SPEED Channel was a TV Network designed for motorsports enthusiasts. SPEED Channel was home to majority of the NASCAR live coverage of events on a weekly basis until the merger of FOX Sports to create FOX Sports 1 earlier this year. Fox Sports 1 is now a 24 hour sports network (similar to ESPN) designed to cover all sports instead of just motorsports. NASCAR fans are unsettled with the merger and disappearance of SPEED Channel. We feel that as a full time sponsor of the “currently known as” NASCAR Sprint Cup Series, Time Warner Cable can offer its subscribers relief from the disappearance of SPEED Channel by creating a newly generated 24 hour motorsport network. Having this network onboard can be completely unique to Time Warner Cable subscribers just as The NFL Network is unique to Direct TV Subscribers. This network can return the feel of the previously known SPEED Channel with added features to bring in new subscribers. All three of these promotional pitches are viable options for increasing both NASCAR and Time Warner Cable’s brand image. Each option will create opportunity for your company to reach directly to the NASCAR fanbase while increasing subscriber loyalty and creating new subscriber and profitable business opportunities for your company. P a g e | 24 Impact Measurement NASCAR and Time Warner Cable (TWC) will have a symbiotic relationship based on the being America’s fastest in our respective industries. To effectively determine the return on investment (ROI) for TWC, this equally favorable sponsorship will be measured in three ways. The first will be media coverage, the second brand awareness, and the third product sales. Measuring Media Coverage • • • • NASCAR will have in place electronic signage that will be utilized for TWC and NASCAR cobranding exposure. These logos will be displayed at every race during the entirety of the event, to include pre and post-race activities. Additionally, signage will be in place at all race track entry and exit locations as well as in and around high traffic areas such as restrooms, concession stands, and ladder wells. The displaying of these logos during major television network broadcasts will be tracked in addition to the number of times that TWC is mentioned during broadcasts. Co-branded logos will be placed in the banners of all NASCAR websites on all pages. This will also extend to all partner sites that currently display the NASCAR Sprint Cup Series logo. NASCAR will track the number of page views, with help from our partners, as well as the number of times that the logo was click on, effectively serving to track the number of visits to TWC’s web page. NASCAR TWC logos will be constantly displayed during all TWC Cup Series races on the onscreen leaderboard banner at the top of the television race coverage. The time of leaderboard logo display will be measured during each race. The final measure of media coverage will be done through audience estimation at races and on television. This will be done through ticketed entry into races and television rating numbers measured by household. This will be an efficient way to track TWC’s exposure to a broad audience both in person and through the aforementioned television on-screen leaderboard banner logo, television display of signage, and mentioning of the TWC Cup Series during the television broadcast. Measuring Brand Awareness • • The beauty behind a partnership between NASCAR and TWC does not simply lie in the fact that NASCAR can increase the exposure for TWC in the geographic areas that they serve, but the coining of phrases such as ‘fastest sport, fastest internet, TV, home phone, and security provider’ cannot be overlooked. Phrases such as this will increase the emotional attachment that NASCAR fans and even casual viewers have through co-branding of the NASCAR sport product with TWC’s products. Spectator surveys will be conducted onsite and through on-line content (advertised during races) to measure emotional attachment if slogans and the recognition of products that TWC offers. This will serve as a determinant as to what TWC products need increased exposure to our fan base. All current NASCAR drivers and crew members will be given pre-paid memberships to all TWC products. In person surveys will be conducted to obtain both quantitative and qualitative feedback on all products. This will also serve to increase exposure to TWC, with drivers and crew members being made available for interviews and commercial usage to endorse this new ‘fastest around’ co-brand. P a g e | 25 Measuring Product Sales • Without a hearty bottom line, no sponsorship is worthwhile for the sponsor. To measure the dollars and cents of this relationship, all new TWC customers or current customers making a new product purchase will be asked, or surveyed if on-line, if they are aware of NASCAR and TWC’s relationship and if it had any impact of their decision to purchase these services from TWC. This data will be analyzed and broken down by product to help further determine where exposure needs to be increased among TWC products. • Special on-line and over the phone promo codes will be provided to customers through television and in-race promotions/ advertising. These will be an additional way to track the effectiveness of the relationship between NASCAR and TWC as well as showing what products consumers are being brought to purchase from TWC. • NASCAR’s marketing department will conduct research at races to determine the interest of fans with TWC and their products. This data will be used to examine preconceived notions and current customer views on prices, product delivery, services offered, value, and reliability. This data will help NASCAR and TWC to better enhance the future of our partnership through satisfying customer and potential customer wants. At the conclusion of every race season, NASCAR will gather all data collected during the season and compile an end-of-season report on an individual race basis and overall trends to evaluate the effectiveness of the sponsorship. This evaluation will encompass an assessment of media coverage, brand awareness, and product sales. These numbers will be used to determine the overall impact that the sponsorship agreement to TWC. P a g e | 26 Sponsorship Package Total Value of Sponsorship = 1,100,000,000 Product Trail and Sampling Opportunities 1 race trial of online Time Warner Cable Race View $390,000 1 race trial of Time Warner Cable Hot Pass $195,000 Interactive Fan Zone Bus $3,000,000 Free year trial of “The Inside Line” $15,600,000 Text to win race tickets $11,780 $19,196,780 Total Media Coverage and Exposure Nationally Televised Commercials $546,000,000 Newspaper Advertisements $15,600 Radio Advertisements $280,800 Internet Advertisements $28,080,000 Total $574,376,400 On-site Signage Videoboard’s $99,000 One 200 ft. by 350 banner $264,000 Billboards $220,000 Graphic wall displays $880,000 Flags $62,500 Corporate Suite Décor $136,500 Driver Introduction Stage $20,000 Victory Lane Décor $4,000 On-site Merchandise Trailers and Tent $2,798,000 Total $4,484,000 Total Cost of Sponsorship to Time Warner Cable $598,057,180 P a g e | 27 Detailed below are the many opportunities for the sponsoring organization to be recognized and promoted to the stated fan base as well as possible additional clientele. Each sponsorship category is broken down in outline form as to specifically what Time Warner Cable will gain through a sponsorship of NASCAR. As a multi-billion dollar company, NASCAR provides its sponsoring agency an excellent opportunity to profit from areas such as expanded media coverage, on-site signage at all 22 race tracks and promotional activities throughout the season. Most importantly in this partnership, increased sales are to be expected due to a fan base that strives to be more connect to the race teams than ever before. The prices listed in the above expense to revenue breakdown are based on a 39 race, 10 month season. All revenue and expenses are based on a 7 year contract with NASCAR that can be renewed and or renegotiated at the end of the stated time period. Increased Sales • • • • Increased number of prescribers due to NASCAR race package Time Warner Cable merchandise will be sold at every NASCAR sanctioned event The rights to Raceview will be given to Time Warner Cable at no cost The rights to Hot Pass will also be given to Time Warner Cable at no cost Product Trial, Promotion and Sampling Opportunities • • • Free 1 race weekend trial of Raceview to fans who sign up at the track Free 1 race weekend trial of Hot Pass to fans who sign up at the track Interactive motorcoach for fans to sample Time Warner Cable’s race as well as standard cable packages • • Free 1 year trial of “The Inside Line” channel Text-to-win race tickets to any race during the season for the at-home viewers Media Coverage and Exposure Television o 40 nationally televised commercials per week throughout the season o Includes commercials before, during and after the event o Show on multiple Time Warner Cable channels o “The Inside Line” channel gives race fans who are subscribers of Time Warner Cable the opportunity to have 24 hour racing news and coverage Newspaper o 4 newspaper advertisements per week throughout the season o Each advertisement is done in newspapers who cover the 3 largest markets in each state • Radio o 60 radio mentions/advertisements per week throughout the season o NASCAR has multiple radio stations in each state that broadcast every race to a live audience o Several times during the week, the partner stations will advertise for the race broadcast the coming weekend P a g e | 28 o • Before, during and after each race day, Time Warner Cable will be thanked as well as advertised on each broadcast Internet o 1,200 internet advertisements/logo appearances every week during the season o These include but are not limited to banners on multiple sporting websites o NASCAR.com will have a blue and white color scheme along with the proposed logo throughout the website o Raceview rights will be given to Time Warner Cable without cost o Social Media accounts for Miss Time Warner Cable, the Time Warner Cable Cup Series, The Inside Line and Raceview will allow for interaction and promotion of products and services provided to NASCAR fans by Time Warner Cable On-site Signage • • • • • • • • 3 videoboards in which the Time Warne Cable logo will be adorned at every track 1, 200 ft. by 300 ft. Time Warner Cable Series banner hung on the main grandstand at each track 2 on-track billboads in which the Time Warn Cable logo will be shown at every track 4 graphic displays with the Time Warner Cable logo on the walls of each of the 22 tracks 250 Time Warner Cable Cup Series flags collectively flying between all 22 tracks Corporate suite décor at all tracks exclusively for Time Warner Cable Driver introduction moveable stage truck that will travel to every race Victor lane Time Warner Cable Cup Series décor that will be nationally televised during the interview with the winning driver • 2 on-site merchandise trailers that will sell Time Warner Cable Series hats, t-shirts, cars, seat cushions etc. at every race. • 1 large Time Warner Cable Cup Series tent that will sell merchandise located on the front stretch of every track Direct Customer Hospitality • • • Corporate customer hospitality offered in the presidential Suite at every track Benefits include o Glass enclosed & air conditioned seating available for 120 of your corporate members o TV monitors showing the race broadcast o Premium seating with food and drink counter on the front stretch in front of the start/finish line o Full service wet bar and catered food with available tableside service without leaving your seat o Suite is decorated with Time Warner Cable signage displayed for others to see o Easily accessible and ADA compliant o Professional dress code required to maintain professional image Outside-the-track hospitality can be purchased by any fan who is looking for an increased experience during their time at the track o Items provided Breakfast, lunch or dinner depending on the start time for the race Beverages (beer, soda, water) Souvenirs Driver appearances P a g e | 29 Raffles Merchandise give-away opportunities Co-Sponsorship Opportunity Joining forces with NACAR will not only provide Time Warner Cable with increased sales, customer base and promotional opportunities; it allows for a working relationship to be built between two companies who strive to be the best in all aspects of business. Choosing to partner with the National Association of Stock Car Auto Racing also allows for the building of business relationship with our many co-sponsors who help make our series successful. In-race hospitality, marketing/promotional events and executive meetings help coordinate the goals of all our sponsoring companies so that we as an organization work as whole to provide lucrative sponsorships. Listed below are some of our current sponsors • • • • • • • • • • • Bank of America Coors Light Ford Goodyear M&M’s Featherlite Trailers Sunoco Visa UPS Sherwin Williams Hellmann’s P a g e | 30 • Coca-Cola Addendum Visual Examples of Branding and Signage P a g e | 31 NASCAR Race Day Studio Desk Example: Large graphic display of NTWCS logo on HD monitor visual to the crowd and TV viewers Time Warner Cable Fan Zone Example: Lay out of interactive fan area with NTWCS info booths, merchandise tents, entertainment stage, and spectator deck for viewing of the garage area. This area is decorated with TWC signage. P a g e | 32 On-site signage Example: Time Warner Cable will have permanent billboard locations at all 22 NASCAR race tracks Outside Wall Signage Placement Example: Time Warner Cable logos will be strategically placed along the outside wall of each track to ensure brand image exposure during National TV broadcasts P a g e | 33 In-car Camera Advertisement Example: Each week a driver will be selected to run the “TWC In-car Camera” with TWC signage placement inside the car to allow video footage to display the TWC logo during the utilization of the incar camera shots during the broadcast Driver Interviews & Media Days Example: During pre-race and post-race driver interviews, backdrops will display the NTWCS logo along with other participating sponsors for the week’s event. Drivers and team members will instructed to stand or sit in front of the backdrop for each interview. P a g e | 34 Vinyl NTWCS Decals Example: Each of the 43 competing race cars each weekend will display a decal representing TWC and the NTWCS. These decals create new ways to increase brand exposure through broadcasts and photo opportunities for fans and the media. Embroidered NTWCS Logos on Driver Firesuits Example: Each NTWCS driver will have the NTWCS logo embroidered on their firesuits and other race track apparel. Here provides a look at both logos we have designed using the TWC logo colors. The logos can be seen during driver interviews, pre-race ceremonies, photographs from media outlets, and broadcast footage. P a g e | 35 Citations Crash Media Group. (2008) NASCAR delivers $1.7 billion in sponsor exposure. Retrieved October 15, 2013 from http://www.crash.net/nascar/news/92023/1/nascar_delivers_17_billion_in_sponsor_exposure. html Danner, A. (2007). NASCAR: A Timeline. Retrieved October 15, 2013 from http://abcnews.go.com/Sports/story?id=3455755&page=1 Hall-Geisler, K. (2008). How a NASCAR Sponsorship Works. Retrieved October 15, 2013 from http://auto.howstuffworks.com/auto-racing/nascar/nascar-basics/nascar-sponsorship.htm Jayski. (2013). NASCAR Sprint Cup Race Track Seating Capacity and Attendance Chart. Retrieved October 15, 2013 from http://www.jayski.com/pages/tracks-seating.htm NASCAR Branding Research. (2004). Advertising Benefits and Statistics. Retrieved October 15, 2013 from http://www.trackmediagroup.com/company/advertising/nascar/ Reuters, T. (2013). Time Warner Inc TWX.N. Retrieved October 15, 2013 from http://www.reuters.com/finance/stocks/companyProfile?symbol=TWX.N Roberts, J. (2012). How NASCAR Advertising Can Increase Your Public Awareness and Grow Your Sales. Retrieved October 15, 2013 from http://www.capstonemarketingservices.com/nascar.html Scarborough Research USA. (2009). NASCAR Fan base Demographics Retrieved October 15, 2013 from http://www.dkmsm.com/pdf/2010%20NASCAR%20Fan%20Base%20Demographics.pdf SponsorMap. (2009). Measuring Sponsorships ROI. Retrieved October 15, 2013 from http://www.sponsormap.com/ Time Warner Cable. (2013). About us. Company Overview. Retrieved October 15, 2013 from http://www.timewarnercable.com/en/about-us/company-overview.html