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A great strategy on how to incorporate African American consumers into NASCAR.

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  2. 2. PURPOSE This deck outlines Crown Royal’s recommendation for how to incorporate the African American demographic into NASCAR
  3. 3. AGENDA –  Crown Royal African American (AA) Marketing Strategy –  Strategy Implementation –  NASCAR Recommendation
  5. 5. BRAND BACKGROUD Assignment: •  In 2002, Crown Royal enlisted help of African American advertising agency Carol H. Williams in San Francisco to develop and implement a marketing strategy targeting the 21-29 year old African American consumer •  Grey had been handling the general market advertising for many years •  Worked as Account Planner to develop the consumer profile and marketing strategy Research and Information Gathering: •  Four rounds of African American focus groups across 12 African American markets for consumer profiling and creative development
  6. 6. MARKETING OBJECTIVE/PRINCIPLES Objective •  To change the image and opinion for the Crown Royal brand among young African American consumers •  To build awareness, familiarity, and consideration •  Leverage social, trend diffusion from metropolitan cities into the broader pan-ethnic urban market, then smaller cities, suburban, and rural consumers Principles •  Do not become a fad or short-term trend. Create timeless equity and sustainable business •  Invest to grow volume and share, profitably
  7. 7. 4 A’S Grow Crown Royal brand commitment among AA males It doesn’t matter what I drink when I’m out with friends at a club Availables I know about Crown Royal but I think it’s old school . . . My dad drinks it Acceptors I was on the VIP list at this party. All the cool people were drinking Crown Royal. Now, Adopters when I go out out and I want to impress, I know to order Crown Royal. Crown Royal is my brand. I feel proud when I order CR, it’s a premium drink Adorers that makes me feel good and look successful when I’m out clubbing
  8. 8. STRATEGY Urban Market Urban Consumer (based upon consumer research)
  9. 9. THE URBAN MARKET Born out of inner city culture, urban marketing is about a cool, current, hot attitude •  It’s a mindset •  It is defined by attitudes, beliefs and lifestyle •  It is not limited by geographic boundaries, age, or ethnicities •  It is all inclusive, not exclusive •  It is fluid and constantly evolving •  It has a rhythm to it
  10. 10. THE STUDY OF TRENDS African American experiences are connected in common history, values and beliefs that persist and evolve over time African Americans re- Reclamation and Evolution invent themselves by AA At the core of urban to a New Experience putting a new spin or Experiences inspired mass trends Reinforced by the Cycle interpretation on the are experiences that trend, resulting in a are grounded in new experience everyday African American culture Creation of an AA Culture American Experience Adoption of key trends in music, Trendology as it Credibility comes from fashion and lifestyle become “mass relates to understanding how culture and lifestyle are important market” that belong to everyone Re-interpretation African AA Trends to African Americans = it’s how cultural icons and of AA Experience by Others Americans trendsetters are born Trendsetters or icons become expressions or These cultural cues are representations of these expressed through lifestyle, Adoption by Migration important cultural cues, such as food, fashion, Mass Market of Trends who then have the ability to language, and dance which influence larger, mass gain wider exposure through Exposure audiences that adopt some trendsetters to Others of these lifestyle cues
  11. 11. WITHIN URBAN, SUBSEGMENTING AA There are three segments to the African American Urban Market Street Mosquito Blender •  New tends and lifestyle cues tend to be passed along from Street to Mosquito to Blender •  He can be found associating with Street, and will pass on trends to the Blender
  12. 12. WHAT WE KNOW ABOUT HIM •  What he says and does influences a much broader population •  He’s male between the ages of 21-29, educated •  Has confidence and others look up to him •  Wants to demonstrate his success without compromising his self-respect •  Has ethnic diversity in circle of friends and is open to dating, socializing, outside his race •  Goes to multi-ethnic clubs and listens to Hip Hop and R&B music •  Is always in the know of the new trend, club, Hip Hop artist •  Is spontaneous and does not live life by the rules
  13. 13. KING OF MY WORLD •  Elements important to the Mosquito are also elements of Crown Royal’s brand personality: •  Hip •  Cool •  VIP •  Class •  Cleverness •  Approachable •  The success of Crown Royal’s communication with the target consumer depends on weaving these elements throughout all media
  14. 14. ADVERTISING Print Radio Out Of Home (OOH)
  15. 15. OUR CONSUMER PROFILES General Market African American & Urban Target Consumer: Consumer CRAIG: 21-49 CARL: 21-34 Insight: - Males living in middle/lower -  Urban males living in major US cites class suburban neighborhoods . -  Carl is determined to succeed and be respected and rural towns -  Carl looks for ways to save money so he can buy the things - Work in blue collar/trade he really wants, like the new line of Phat Farm clothing or the certified occupations special edition he just read about in Complex -  Carl demonstrates respect and acknowledgment for AA culture, utilizing it as a basis for his uniqueness and individuality. Brand In a world where overt statements With the ongoing pressure to do better than what society expects of him, the consumer wants to Insight: of success and status are intimidating and pretentious, the demonstrate his success without compromising his target desires comfortable self-respect. expressions of his success. 2
  20. 20. 4 A’S Grow Crown Royal brand commitment among AA males It doesn’t matter what I drink when I’m out with friends at a club Availables I know about Crown Royal but I think it’s old school . . . My dad drinks it Acceptors I was on the VIP list at this party. All the cool people were drinking Crown Royal. Now, Adopters when I go out out and I want to impress, I know to order Crown Royal. Crown Royal is my brand. I feel proud when I order CR, it’s a premium drink Adorers that makes me feel good and look successful when I’m out clubbing
  21. 21. EVENTS & ONLINE To deepen the connection between the brand and urban consumers via VIP activities
  22. 22. OVERVIEW •  2002-2003 Crown Royal African American national research and advertising launch •  2004-2005 Crown Royal Event and Online Initiatives
  23. 23. URBAN EVENT STRATEGY Communicate sophistication and style, making the consumer experience “King of Your World” through all aspects of the experience: –  Signature look and feel to reinforce the experience •  Creates a young and stylish image of the brand that makes calling for Crown Royal at a bar or club acceptable •  Events are unique and eclectic where cosmopolitan people with experience and broad-thinking connect and share lifestyles, interests, and desires with one another •  Establishes Crown Royal as cool -- we engage with him in a way that’s different from others, but familiar and respected
  24. 24. URBAN EVENT/ONLINE STRATEGY •  Keep Crown at the center of what’s hot •  Host unique, VIP events at locations relevant to the urban target •  Develop comprehensive online database of key influencers, trendsetters and followers of Crown Royal for year-round re-contact •  Maximize resources across all channels: media, PR, online and post- event advertising •  Cultivate relationships at the grassroots with “ears” in all markets that keep us abreast of rapidly changing trends
  25. 25. HOW WE DO IT •  We respect the consumer, where he is, right now •  We take our product and brand to him, we don’t expect him to come to us just because we make the offer •  We don’t pay for celebrity endorsers – we organically cultivate a following of trendsetters through respect and invitation based on core cultural values and beliefs •  We win his trust and respect so that later, he will come to us •  Our strength is in understanding trend evolution and a strategic approach to creating world-class consumer experiences
  26. 26. CREATING CONNECTION MOMENTS •  Crown Royal has a thorough understanding of the unifying psychographics that connect people to one another and to the brand •  CR meets people where they are and transforms everyday experiences into something extraordinary •  CR translates this into memorable experiences that shift the way guests see a brand •  Leave them feeling stronger about the brand than before
  27. 27. HOW CONNECTION MOMENTS OCCUR Everyday Consumer Life Experience He Gets a Hair Cut Crown Royal He Samples Barbershop Crown Royal Creates a Connection Moment Strategic Brand that Supports His Event Experience Everyday Experience EXAMPLE: CROWN ROYAL BARBERSHOP
  28. 28. CROWN ROYAL BARBERSHOPS •  Promotes connection moments essential to the African American male experience – we’ve been invited into the “living room” •  Leverages niche media and local relationships to cultivate brand ambassadors for Crown Royal •  Breaks away from the cluttered environment of promotions •  We can do it because we’ve been invited and embraced
  29. 29. BARBERSHOP ELEMENTS •  Local barber shops are given a makeover with lasting impact within the shop and the community •  CR provides branded smocks, capes, mirrors, and promotional items for customers and barbers in the CR Barbershop •  Exclusive events with media partners to enhance coverage in local media for Crown Royal •  Online: –  CR Barbershop site for free cut and/or invitation to special events building a database of urban consumers for future promotions –  Career database/Networking
  30. 30. P-DIDDY’S BAD BOYS of COMEDY •  Crown Royal is sponsor of P-Diddy’s new TV show debuting up and coming comedians •  Hosted by P. Diddy, MC’d by Doug E. Fresh and DJ’d by Mr. Cee •  “Making of” video filmed simultaneously with extensive Crown Royal product placement •  Debut shows held large theatres and venues with audiences of up to 5,000 •  Backstage “Crown Royal Lounges” host VIPs •  After-parties held at the hottest clubs featuring talent •  Broadcasted on HBO and on CR Barbershop sites
  31. 31. RESULTS •  Huge peaks in product sales in cities after each barbershop program •  Demonstrated the power of WOM •  Product sales at AA clubs peaked •  High attendance at upcoming CR sponsored events •  High activity on barbershop sites •  HBO made show about Barbershops •  Sold out Bad Boys of Comedy shows •  After local national plan completed incorporate initiative into high profile events: ESPY’S, BET Awards •  Organically built celebrity interest
  32. 32. NASCAR URBAN COMMUNICATION Why Crown Royal Has Credibility The Urban NASCAR Plan
  33. 33. OVERVIEW •  Crown Royal is a major sponsor of NASCAR-Crown Royal 97 Car •  Crown Royal is in the unique position of bringing AA’s to NASCAR because of the established relationship between the brand and the consumer •  Presented following ideas to NASCAR in 2005. Ideas based on consumer and market insight learned throughout the three years of consumer research, creative development, event and online activity
  34. 34. NASCAR’S SITUATION •  AA’s account for 4.2% of NASCAR’s 75 million fans •  Predominantly white, heavily suburban, and rural fan base OPPORTUNITY: •  Racist •  Increasingly diverse population •  Aging baby boomers •  Competition for younger fans’ leisure dollars
  35. 35. TREND POTENTIAL •  The challenge of integrating a Caucasian middle-American sport with the Urban culture may not be as difficult today as it was five years ago •  Recently, there are a number of subtle signs that point to a shrinking gap between auto-racing/middle-America and Urban culture –  Clothing trend among New York Urban males LDA-29 who have been spotted wearing NASCAR branded clothing –  Music Mix: Country & Hip Hop -Tim McGraw and Nelly with number one single “Over and Over”
  36. 36. MOSQUITO AND NASCAR •  He probably hasn’t thought about adding auto-racing to his sport interests of primarily b-ball and football. He sees his culture’s interest in cars, whether it is in a Snoop video or his favorite NBA playa’s pimped out rides on Cribs. However, the idea of attending a NASCAR event is so foreign that he needs to be informed and convinced that it is worthwhile to become involved.
  37. 37. CROWN ROYAL’S CREDIBILITY Crown Royal can introduce the urban consumer to NASCAR and create an affinity by building upon and leveraging Crown Royal’s relationship with the urban consumer •  Compared to other brands, Crown Royal is in a unique position to extend this invitation to the urban audience •  The brand’s communication with the target has created a trust that no other brand has among current NASCAR sponsors
  38. 38. CREATE NEW CONNECTION MOMENTS We can only work the proven paradigm we know best: Everyday Consumer Life Experience He Enjoys Car Culture Crown Royal & NASCAR He Experiences in Relevant Places Both Brands Create a Connection Moment Strategic Brand that Supports His Event Experience Everyday Experience
  39. 39. OUR STRATEGIC APPROACH OVER TIME Cultivate Adoption Connect through by Making it Relevant Experiences: Discoverable Urban Car Culture Generate wider interest by the Black Cultivate a class of Black community in NASCAR experiences NASCAR Top Drivers Seed Urban Racing in the Right Places: Create Signature Urban Music, Fashion, Film Events that Bring NASCAR to the People Utilize Network of Celebrities to Create NASCAR Trendsetters
  40. 40. OUR STRATEGIC APPROACH OVER TIME: short term (year one) Connect through Relevant Experiences Urban Car Culture INITIATIVE: KEY URBAN AUTO SHOWS
  41. 41. URBAN AUTO SHOWS Trend Insight for AAs: At the core of urban inspired mass trends are experiences that are grounded in everyday African American culture… The car or truck is an extension of the personality and highly asprirational to the consumer   Reflects the personality of the driver   Tells the world “I’ve made it”   Accessible status
  42. 42. DUB SUPER SERIES CAR SHOWS –  Dub Magazine is the leading Urban automotive magazine serving as a resource on the most innovative customization trends –  The Dub Super Series are car shows across the country that display cutting edge technologies and trends in car and truck customization –  The event capitalizes on the Urban culture’s interest in cars and recruits a large number of Urban consumers
  43. 43. CARS + MUSIC DRAWS URBAN TARGET –  Hip Hop music plays a big role in setting the mood and draws an urban crowd to the event
  44. 44. OUR STRATEGIC APPROACH OVER TIME: short term (year one and two) Cultivate a Class of AA NASCAR drivers INITIATIVE: DRIVE FOR DIVERSITY
  45. 45. INITIATIVE: DRIVE FOR DIVERSITY –  Program seeks to cultivate minority drivers and crew pit members on lower-profile regional racing circuits –  Professional drivers and pit members do the training –  Crown Royal sponsored driving summer camp –  College Tour –  CrownRoyal/ membership register
  46. 46. OUR STRATEGIC APPROACH OVER TIME: short term (year one and two) Create Signature Urban Events that Bring NASCAR to the People Signature Events: Crown Royal Body Shop
  47. 47. CROWN ROYAL BODY SHOP Trend Insight for AAs: Credibility comes from understanding how culture and lifestyle are important to African Americans = it’s how cultural icons and trendsetters are born… Initiative: Offer Body Shop Makeovers and feature best 12 shops nationally that can customize/urbanize the ’97 car
  48. 48. OUR STRATEGIC APPROACH OVER TIME: short term (year one and two) Create A Sense of VIP Exclusiveness ONLINE INITIATIVE: www.CrownRoyal/
  49. 49. WWW.CROWNROYAL/NASCAR.COM Trend Insight for AAs: Trendsetters become representations of cultural cues, who influence mass audiences Initiative: Create a private network of opinion leaders that have the ability to launch trends –  Register at Dub Super Series Car Shows, Drive for Diversity program, and CR Body Shops –  WOM campaign, brand ambassadors
  50. 50. WOM •  A brand’s message has a stronger impact with word-of-mouth than any traditional media •  Opinion leaders are interested in an alternative and exclusive approach of communication and marketing •  Experimenting of the product in a relevant consumption context is the best way to engage over-targeted or savvy consumers
  51. 51. EXCLUSIVITY •  Private network of opinion leaders and influential/high profile people that is built exclusively through referral •  Members are charismatic, motivated, communicative and strongly engaged in their community •  Each referral is screened online and then personally interviewed at CR/ NASCAR events •  Members are committed and highly motivated to launching trends through word-of-mouth •  Members routinely provide valuable feedback
  52. 52. SITE ELEMENTS BUZZ MARKETING - Invitation to exclusive events, involvement in urban marketing actions - Organization of events and establishing partnerships VIRAL MARKETING - Trends/News - Broadcasting of online information before it hits the streets RELATIONAL MARKETING - Creation and management of brand ambassadors’ clubs - Recurrent interactions with pools of opinion leaders close to the brand
  53. 53. ROI •  Guaranteed to reach level N+1 with a positive and natural word of mouth •  N+2 is measured and N+3/ N+4 is expected -  Supporting WOM relays (events and buzz actions, PR, Media campaign) -  Number of members participating in each city : the more members participate, the best coefficient the product have when reaching N+2 / N+3/N+4 level
  54. 54. OUR STRATEGIC APPROACH OVER TIME: mid-term (year two to four) Seed Urban Racing in the Right Places: Fashion, Music and Film
  55. 55. SEEDING THE PRODUCT IN FILM Trend Insight for AAs: Cues are expressed in lifestyles, food, fashion, language, dance, film, and connection moments that gain wider exposure through trendsetters –  Remake “Greased Lightening” with Dave Chappell, Larry the Cable Guy, Mike Epps, etc. –  This film is based on the true life story of Wendell Scott, the first black stock car racing champion in America –  NASCAR product placement in racing relevant movies with urban male appeal (e.g. action and comedy)
  56. 56. SEEDING THE PRODUCT IN TV/MUSIC –  Driver appearances on “Pimp My Ride” or develop performance based “Ride” show –  Celebrity Driving School (televised) –  NASCAR product placement in videos, celebrity award shows, etc. –  Authentic integration in music videos –  Catch trend of spoken word music
  57. 57. CELEBRITY INVOLVEMENT Celebrities and Trendsetters look to the streets/community for what’s “hot”   They reflect back to the consumer what he already knows   They illuminate what’s going on in the community for others to see Initiative: Focus on integrating urban and African American celebrities –  Leverage new product launches –  Celebrity racing –  Feature celebrity car makeover parties –  Drive awareness of NASCAR
  58. 58. OUR STRATEGIC APPROACH OVER TIME: long-term (year three to five) Make NASCAR Discoverable to the Wider Mainstream Black Population
  59. 59. MAKE NASCAR DISCOVERABLE Trend Insight for AAs: African Americans re-invent themselves by putting a new spin or interpretation on the trend, resulting in a new experience KEY OPPORTUNITIES: –  The broader black community needs to find NASCAR on their own –  Avoid direct marketing NASCAR to African Americans -- allow them to find what resonates organically, over time –  Embrace controversy –  Cultivate a competitive driver that can be followed and championed by the community –  Make visible those in the pipeline now – use PR to put them in places where AAs will find them
  60. 60. FINAL THOUGHTS •  NASCAR is already working the plan by identifying and cultivating a Black star/competitor -- a crucial factor in our success •  To make NASCAR attractive to the urban consumer, all connections with racing need to be delicately seeded over time •  It’s not easy, but it’s possible to attract this consumer •  The payback for integrating the sport is enormous •  Our recommendation is to to BRING NASCAR TO THE CONSUMER!