NASCAR: A Branding Success

NASCAR: A Branding Success

In the past 60 years, the National Association for Stock Car Auto Racing, better known as NASCAR, has become the top auto-racing series in the United States and he number one spectator sport in America. It has also become well-known for its branding alliances, with drivers sporting everything from coffee to deodorant logos. The sport is currently made up of three national series, the NASCAR Sprint Cup Series, the NASCAR Camping World Cup Series, and the NASCAR Nationwide Series, along with some regional and international series. Although primarily a U.S. sport, NASCAR has held races in Mexico, Canada, Australia, and Japan. It currently sanctions over 1,200  races on 100 tracks.

NASCAR's popularity has soared in recent years, partially due to its extensive media coverage. Drivers like Jeff Gordon and Dale Earnhardt, Jr., have become heroes of the auto racing industry, and many NASCAR drivers have made appearances in movies and television. NASCAR's growth has been so dramatic that it is now second only to the NFL in popularity. Despite its immense success, the sport has had to overcome challenges in its 60-year history and will likely have to face many more because of declining attendance and other difficulties from the most recent economic recession. Still, its strong brand image and brand alliances with other companies will likely keep the sport afloat through these tough times.

 

NASCAR'S History

 

NASCAR began with the vision of one man, a worker at an automobile dealership named William Henry France. France was already in love with auto racing when he moved to Daytona Beach, Florida, during the 1930s. Daytona Beach was the perfect place for auto racing enthusiasts like France^, as the beach's open expanses and flat ground offered a perfect area for races. In fact, by the time of NASCAR's founding over a decade later, automobile racing had become popular in places like Florida, Alabama, and North Carolina. Many sources give bootleggers the credit for promoting auto racing during the '20s and '30s, as moonshine cars had to be built to go fast in order to evade the law. The ^popular idea of bootleggers racing from the law is etched in racing mythology as one of the precursors of stock car racing, although in reality its influence on stock car racing is likely overemphasized. Auto racing continued to increase in popularity in the early decades of the twentieth century.

France recognized the potential popularity and profitability that auto racing offered. Yet at the time, this lucrative movement lacked what it needed to become a professional sport, including promoters, racetracks, rules, or respectability on the part of the racers. Therefore, in 1947 France met with owners, drivers, and mechanics at the Streamline Hotel to launch his idea of creating a professional sport out of stock car racing. Over the next few days, they worked on the details for the organization. The first race of the newly formed organization—held on February 15, 1948—was won by stock car racer Red Byron. A few days later, on February 21, NASCAR was officially incorporated, with France serving as president and CEO. What is today known as the NASCAR Sprint Cup Series was created in 1949.

Racing fans flocked to the tracks, and soon NASCAR names like Lee Petty, the Flock brothers, and Fireball Roberts became household names among NASCAR enthusiasts. Originally, many of the races were held on simple makeshift tracks, but in 1959 France opened Daytona International Speedway, which offered a paved race­track. The 2.5 mile racetrack provided an enclosure and more accommodations for spectators. Ten years later, France opened the Talladega Superspeedway in Alabama, a 2.7 mile racetrack that is the largest oval track in the world. France would serve as NASCAR president and CEO until 1972, when his son William France, Jr., took over. NASCAR continues to remain largely under the control of the France family to this day, a source of some contention among NASCAR fans and critics.

In the late 1960s and 1970s, NASCAR tracks began to emerge outside of the Southeast. Tracks were built in Delaware and Pennsylvania. Since then, NASCAR has tried to become more of a national sport, building racetracks in Chicago, California, and Texas.

Early Corporate Sponsors of NASCAR

NASCAR's growth really took off when it partnered with automakers Ford, General Motors (GM), and Chrysler in the 1950s. The automakers hoped their support of NASCAR would boost their own sales. The marketing phrase ''Win on Sunday, Sell on Monday'' became popular with the ^automakers as it was believed that success in the

races meant greater success for their companies. In 1971, the R.J. Reynolds Tobacco Company's Winston brand became a sponsor of NASCAR. During that time period, NASCAR also formed limited sponsorships with Union 76, Goodyear Tires, and Pepsi. Anheuser-Busch began to sponsor NASCAR's Budweiser Late Model Sportsman Series in 1984. NASCAR would soon become famous for its branding partnerships, and the support of major sponsors and brands has contributed to NASCAR's well-known image.

NASCAR's Jump in Attendance

NASCAR began to experience unprecedented growth in the 1990s, coming a long way from its 1.4 million attendees in 1976. To help with this growth, it launched its first website in 1995, which offers up-to-date news on NASCAR activities and even has a NASCAR community where members can chat online and post opinions and videos. In five years, NASCAR attendance increased by 57 percent to over 6.3 million. Its tele­vision viewership grew 48 percent between 1993 and 2002, and by 2006 about 6

percent of U.S. households watched NASCAR races on television, compared to less than 2 percent for its competitor, the Indy Racing League. New, younger NASCAR stars such as Ryan Newman, Dale Earnhardt, Jr., and Kurt Busch began emerging, which helped attract the youth market to the sport. Women also began racing for NASCAR, including drivers Tina Gordon, Deborah Renshaw, and Kelly Sutton, the only NASCAR driver with multiple sclerosis. Consequently, female NASCAR fans  grew to roughly 40 percent of its fan base.

Today NASCAR has approximately 75 million fans and has the second-highest television ratings for regular season sports. NASCAR fans are believed to be the most brand-loyal of any sport, and one estimate claims that fans spend over $2 billion in licensed product sales. For this reason, NASCAR has attracted the attention of nu­merous Fortune 500 companies. NASCAR has done especially well over the past decade, with attendance jumping 19 percent. Currently, NASCAR is broadcast in over 150 countries in over 30 languages.

 

NASCAR's Challenges

 

Despite NASCAR's immense success, the road to stardom has not always been an easy one. As with all major companies, the organization has had its share of criticism. One major criticism involves the control the France family has over NASCAR. A descen­dent of William France has been CEO of NASCAR ever since the sport was founded in 1948. In 1972, William France's son Bill France, Jr., took over as CEO of the company, and in 2003 his grandson followed suit. The family continues to be the majority

stockholder of the company, allowing them to call many of the shots. Indeed, even those within NASCAR refer to the sport as a "benevolent ^{dictatorship.''} Some argue that this gives the France family too much power. For instance, William France was known for replacing drivers that would try to unionize. So far, business decisions made by the France family have seemed to work out well for the sport. Many of the marketing ploys and changes the France CEOs have implemented have served to effectively promote NASCAR and attract an increased fan base. Still, some view the dictatorial style of the France family with concern because it depends largely upon the leadership abilities and business savvy of a few.

Another major issue involves vehicle safety. Critics claim that NASCAR often does not implement safety precautions until after a disaster has happened^, even if those safety features have been around for years. Its own drivers have expressed concerns over the lack of appropriate medical care received after a crash. NASCAR drivers who have died in crashes include Adam Petty, Tony Roper, Kenny Irwin, and perhaps most publicized, Dale Earnhardt. Earnhardt's death in 2001 was perhaps the most influential in convincing NASCAR to implement more safety features.

After Earnhardt's death, NASCAR made it mandatory for drivers to wear a head­and-neck support system, known as HANS, with a seat-belt restraint system. Cars are now equipped with a fire-suppressant system and equipment that will measure the forces placed on drivers' heads in a crash. NASCAR has also installed SAFER barriers on the concrete walls of the racetrack, which are made of foam and steel tubing that will lessen the impact of a crash. A more controversial safety measure is the use of restrictor plates, a piece of equipment used on superspeedways like the Daytona and Talladega racetracks to reduce speeds of the cars. Drivers have accused NASCAR of trying to manipulate the races with these, but NASCAR insists they are a necessary safety measure. Finally, NASCAR integrated a car with additional safety features, called the Car of Tomorrow, into the 2008 Nextel Cup Series Season. Through these measures, NASCAR hopes to position itself as a safer sport.

Environmentalists have also cited NASCAR for its lack of environmental re­sponsibility. NASCAR estimates that it uses 6,000 gallons of fuel during a race weekend, which comes out to about 216,000 gallons for one season. It also used leaded gasoline for years after the Environmental Protection Agency (EPA) asked it to quit. Because a law makes NASCAR exempt from the EPA's regulation on gasoline, NASCAR is under no obligation to comply. Yet the pressures to go green have caught up with NASCAR, and in the past few years it has instituted many changes to improve its environmental footprint. NASCAR eventually partnered with the EPA and its fuel supplier Sunoco to phase in unleaded gasoline in 2006 and switch to unleaded gasoline in 2007. In an attempt to carry its green efforts further, NASCAR hired Mike Lynch in 2008 to head the company's new green initiative. NASCAR plans to build some of its new buildings with LEED certification and in the long-term work with Sunoco to come up with an alternative fuel. NASCAR is also now using tracks with recyclable parts and introduced its first green car, the Ford Fusion Hybrid, during a race in 2008. Becoming more eco-friendly will benefit NASCAR by attracting more environmentally conscious consumers to the sport as well as helping to effectively address environmentalists' concerns.

NASCAR has also been criticized for its lack of driver diversity. The majority of NASCAR drivers are white males, which has caused concern among some minority

fans. There are still few women in the NASCAR driver populace^, even though ⁴⁰ percent of NASCAR fans are women. Sexual discrimination allegations have also been a problem. In 2008, NASCAR official Mauricia Grant filed a $225 million lawsuit for racial discrimination (Grant is African-American), sexual discrimination, and wrongful termination. Additionally, NASCAR has not had many African-American drivers. In 2006, Bill Lester became the first African-American driver in almost

20 years to qualify for a race in NASCAR's top series. According to Lester, many African-Americans are secret NASCAR fans, but are not comfortable coming to the races because they cannot identify with the drivers. Indeed, only a few African‑ American drivers have participated in the Cup series in 60 years.

To enhance participant and driver diversity, NASCAR has worked to attract more minorities to the sport. In addition to its Drive for Diversity program, NASCAR gained two African-American drivers in 2009. Chase Austin and Marc Davis raced in the Camping World Truck Series and Nationwide Series. Austin drove a car owned by African-American businessman Art Shelton, owner of the Trail Motorsport team and the largest African-American investor in NASCAR's history. NASCAR also promotes supplier diversity and vendor programs, performs NASCAR college tours at ethnically diverse colleges, participates in civil rights conferences, and provides scholarship

funding to historically black colleges and Hispanic institutions.

The onset of the most recent recession introduced new challenges for NASCAR. One major problem is the financial situation of NASCAR's sponsors and partners. The Big Three automakers, GM (through Chevrolet), Ford, and Chrysler, experienced extreme financial setbacks. Traditionally, these automakers have lent enormous support to NASCAR, with estimates spanning from $120 million to $140 million. In the 2008 premier Cup Circuit, 75 percent of the NASCAR cars in the races consisted of cars from the Big Three. With GM filing for bankruptcy in 2009 and the other two automakers struggling as well, NASCAR will have to deal with a loss of financial support from these automakers. Additionally, other NASCAR sponsors feeling the crunch may not renew their NASCAR contracts, some of which total $15 million. Domino's Pizza Inc. and Eastman Kodak Co. have already pulled out. As it is estimated that funds from corporate sponsors comprise 80 percent of the NASCAR teams' budgets, a huge pullout will negatively impact NASCAR. This may be one instance where branding alliances, a major contributor to NASCAR's success, may actually do more harm than good.

Despite these potential setbacks, CEO Brian France is confident the sport can adapt and get through the situation. NASCAR survived the pullout of manufacturers before, and NASCAR champion Richard Petty believes the fans will still be there with or without the manufacturers. At the same time, NASCAR is working to lessen the costs for sponsors who are running teams, including trying to reduce testing costs. Also, NASCAR's situation is not unique; other racing circuits like Formula One are

also suffering from manufacturer pullout. Even sports like the National Football League and the National Basketball Association have had to reduce jobs. Additionally, Toyota, another major sponsor of NASCAR, announced it will maintain its sponsor­ship with NASCAR despite its lowered budget, believing that its partnership with NASCAR is critical to coming out of the recession. However, it too will have to reduce NASCAR spending as a result of the recession. Yet other sponsors, such as AFLAC Inc.

and Camping World, are even increasing their spending on NASCAR.

NASCAR is also experiencing a decrease in attendance due to the recent recession, though it is only in the single-digit percentage range. Still, the downturn in attendance during the NASCAR race at the Atlanta Motor Speedway in 2009 shocked some racers, as the stands were only two-thirds full. NASCAR is also experiencing a significant drop in its television ratings, which dropped 13 percent from the previous year. Consequently, NASCAR has had to lay off some workers in order to cut costs.

NASCAR is hoping that lower ticket prices will help give fans a greater incentive to attend. In January 2009, NASCAR reduced its 20,000 Sprint Cup tickets to $40. It is also working with communities to lower hotel prices so that fans can more easily travel to the cities in which the races are held. It is uncertain how well these deals will boost NASCAR attendance, but many are optimistic. NASCAR spokesman Ramsey Poston pointed out that average NASCAR attendance is still 100,000 and its TV ratings remain high. NASCAR officials are confident that NASCAR will successfully weather the

storm of the recession.

 

NASCAR's Branding Strategy

Early on, NASCAR worked hard to promote its brand name. It h_as b_een l_arg_el_y successful in its endeavors by integrating multiple marketing initiatives into a well-organized branding strategy. Part of this strategy dealt with partnering and co-branding with other companies. Driver jumpsuits and racecars are filled with the logos of various companies that NASCAR has formed brand alliances with. At the same time, NASCAR has successfully differentiated its own brand and, through the launch of campaigns, has effectively marketed its brand throughout the world.

Television Broadens NASCAR's Reach

Before the mid-1970s, the only way to watch a NASCAR racing event was to attend a race in person. During the mid- to late 1970s, NASCAR began to receive sporadic television coverage, and in 1979 the Daytona 500 was the first NASCAR event tele­vised in its entirety. NASCAR started to rely on television as a branding medium, and by 1989 all races on the Winston Cup schedule were televised (later changed to the NASCAR NEXTEL Cup and then the Sprint Cup). This did not mean that television did not introduce some problems for NASCAR. Each track negotiated its own tele­vision contract, which meant that each race could potentially be shown on a different network. This hindered NASCAR's exposure and presented a problem that NASCAR was not able to overcome until the turn of the century.
In 2001, NASCAR took a proactive stance by signing a comprehensive television contract with FOX and NBC that was worth $2.4 billion and enabled the televising of all the NASCAR races that season. Just four years later, another contract was signed for $4.48 billion, providing broadcasts in a total of 167 countries including Thailand, Pakistan, New Zealand, and Venezuela. Such media coverage has, in part, accounted for a fan base of over 75 million, 40 percent of which are women.

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Co-Branding Enhances Profits and Brand Image
NASCAR also recognizes the benefits of co-branding relationships. It realizes that a successful branding alliance can give the companies involved a greater competitive advantage. In the early 1970s, NASCAR was primarily sponsored by R. J. Reynolds Tobacco Company. Today, NASCAR has marketing and sponsorship deals with a wide range of Fortune 500 companies such as Sunoco, Coca-Cola, Allstate, DuPont, Gillette, and UPS. In 2004, Sprint Nextel replaced R. J. Reynolds as the series' sponsor, with Nextel paying NASCAR $70 million annually for the title rights. In 2006, Toyota announced that it would start supporting NASCAR's three series.
NASCAR takes its sponsorship deals very seriously. A sponsor may spend several million dollars for a race team and then spend just as much on promotional events. It is not a task to be taken lightly. Brian France even has a team that runs seminars to help sponsors get the greatest advantage out of their sponsorships. Of course, the relationship between NASCAR and its sponsors may change somewhat due to the recession as NASCAR tries to retain sponsors who are tempted to pull out. Yet although NASCAR has already lost sponsors due to the financial crisis, numerous manufacturers still consider NASCAR to be a profitable investment. The awareness proplr have of NASCAR is unmatched by any other sport.
One potential weakness of NASCAR co^-branding is that some experts feel that the sport is becoming flooded with sponsorships. It has about 50 league sponsors and numerous team sponsors. This creates a cluttered environment of signage at the racetracks. Sponsorship has also increased in price within the last few decades, which means sponsors are now expecting more from drivers. Drivers are now expected not only to race well but also to show up for marketing functions and appear early on the morning of the race to sign autographs and answer questions. The pressure is on to win races, not only for the glory of the driver and for NASCAR but to retain the sponsor as well. New teams, even when they are owned by legendary racecar drivers, also have a hard time attracting sponsors, despite the teams' talent. NASCAR driver Jeff Gordon, for example, had a difficult time finding sponsors for his new team featuring novice driver Jim Johnson despite Gordon's legendary status.
Sponsors find that co-branding with NASCAR is extremely profitable, saving them from having to promote themselves through traditional media. And, because NASCAR fans are some of the most brand-loyal consumers to be had, NASCAR-sponsored products have benefited from sizable sales and market share increases. As a result of its co-branding alliances, NASCAR itself offers a plethora of consumer products either as brand extensions or through a direct relationship with other firms. Currently, NASCAR has licensing and merchandising rights for watches, clothes, chairs, tables, grills, hats, clocks, flags, doormats, blankets, auto accessories, sunglasses, and even food products.
Brand Image Differentiation Seeks New Audiences
In spite of its various brand partnerships, NASCAR has worked hard to differentiate its brand from other companies, particularly from competitor racing circuits. This often takes place in the form of well-coordinated marketing campaigns, such as the lavish campaign NASCAR launched to celebrate its 50th anniversary. One of the strongest differentiating factors for NASCAR is the experience of the race. NASCAR fans like the constant, unpredictable, and even dangerous action. Crashes, live entertainment, and danger all make up the NASCAR experience.
With only a single driver per racecar, NASCAR also offers a human touch in the bargain. The driver provides a face and personality to fans, allowing them to strongly identify with NASCAR. Additionally, NASCAR lets several drivers share the spotlight throughout the race. From an owner's perspective, it is more efficient to manage the public relations opportunities of one driver as opposed to an entire team of athletes.
A similar dynamic can be observed in advertising and sponsorship during the competition. Within the NASCAR culture, a large amount of sponsorship signage around the track and on the drivers' cars has historically been acceptable and is perceived to be part of the NASCAR experience. Although clutter is an issue that sponsoring organizations must consider, it does not appear to be viewed as negatively by the NASCAR fan base as it is viewed in professional golf and tennis, which are more conservative and traditional sports theme.
NASCAR has also attempted to further differentiate itself in order to attract other, more diverse market segments. In recent years, NASCAR has made it a priority to create awareness among diverse ethnic groups and among women. Called the "Drive for Diversity,'' this program has been in place since 1999. In 2009, NASCAR announced that 12 drivers would participate in its Drive for Diversity program, an increase of four from the year before.
NASCAR is also pursuing the Hispanic market in both the United States and Mexico through a joint venture with the entertainment subsidiary OCESCA. The venture oversees NASCAR licensing and marketing in Mexico. As of 2009, the pro­gram will be in its third year under NASCAR. Racetracks have been built in Mexico for these events. NASCAR also held the 2006 NEXTEL Cup Series in southern California, home to a large Hispanic community. It created numerous Hispanic promotions leading up to the California race to show respect for Hispanic culture. Additionally, Columbian NASCAR racer Juan Pablo Montoya is also garnering attention from dif­ferent segments of the population. Montoya is a Sprint Cup racer and won the Busch race in Mexico City in 2008. NASCAR hopes Montoya's success will portray it as a diversified sports venue as well as attract more Hispanic fans. This integration of racers, sponsors, and fans from the United States, Latin America, and South America seeks to expand NASCAR's popularity and audience over different countries, which separates it from other sports mainly geared toward American audiences.
Due to lower TV ratings and competition from other sports venues, NASCAR
attempted to generate greater fan interest by implementing the Chase for the Cup
Series in 2004. Chase for the Cup involves the last 10 races of NASCAR's 36-race
season. The top 12 drivers from the season are eligible to participate in Chase for the
Cup. Chase for the Cup is a playoff format for NASCAR; the top 12 racers play off each
other to see who will win the Chase for the Cup championship. Other racers are
allowed to compete in the last 10 events as well, but it is uncommon for racers to win
the Cup if they are not in the top 12. Each of the top 12 racers begins with a score of
5,000 points, and whoever gains the most points in the following races becomes the
Cup Series Champion. With this event, NASCAR differentiated itself from previous
NASCAR seasons and is effectively competing with other American sports. NASCAR's
Chase for the Cup was such a popular strategy, in fact, that the Professional Golfers' Association adopted a similar format

Innovative co-branding relationships have also helped differentiate the NASCAR brand and catapult it into new markets. The partnership between NASCAR and

Harlequin (romance novels) launched in ²⁰⁰⁶ created awareness among women who may not have even been otherwise exposed to the sport. It also provided a way for

NASCAR to tap into emotional branding strategies. Another effort to attract women and younger people to NASCAR includes a joint venture between the rock band Three

Doors Down and Dale Earnhardt, Jr., in which he participated in a music video and
the band members drove his car in a race. Additionally, the partnership between The

Cartoon Network and NASCAR emphasizes sponsorship diversification directed at the younger consumer.

NASCAR's Brand Equity and Brand Loyalty
NASCAR's brand equity is the value that is added to a product or service by having the NASCAR brand attached to the offering. As a result, many companies choose to sport the NASCAR logo on their products. A 2005 study by James Madison University revealed that fans appreciate the sponsorship associated with NASCAR. Approxi­mately 93 percent feel that corporate sponsors are "very important'' to NASCAR, and 51 percent said that when they buy a NASCAR product, they feel as if they are supporting the sport. This would account for the $2 billion fans spend on NASCAR­ licensed products. A whopping 47 percent of fans claimed they appreciate a sponsor's brand more because it sponsors NASCAR, giving companies a major incentive to sponsor NASCAR. Finally, unlike some sports figures who are seen as endorsing products just for the money, 56 percent of fans believe that NASCAR drivers use the products they endorse, which further increases the respectability of the drivers in their fans' eyes.
Despite all the efforts made by NASCAR to engage the customer, fan interest has begun to decline in the past few years. This situation is likely to be exacerbated by the recession. The median income of NASCAR fans is below that of the national average, making it harder for fans to afford to attend the races. It is also expected that concession stand sales will decrease for those that actually do attend NASCAR events. In addition to lowering the cost of tickets, NASCAR is also cutting the costs of food at its events. To show that it cares about its fans, NASCAR reimbursed the difference to fans at Daytona who had bought tickets before NASCAR began offering lower ticket offerings. NASCAR is clearly making significant efforts to maintain its brand equity and its loyal fan base.
NASCAR fans are loyal for several reasons. One reason is the sense of community NASCAR fans feel when engaged in the sport. NASCAR's brand is embodied in its drivers. When fans feel connected to the drivers, a bond is created that promotes the sport's brand image. NASCAR recognizes the sense of community that fans experience as a competitive advantage. Thus, a major link on NASCAR's website is "Community,'' where fans can become members of an online community devoted to NASCAR. The area allows fans to meet, discuss, and establish emotional bonds. Thus, a strong sense of community is a driving force behind NASCAR. NASCAR also cashes in on brand loyalty by using loyal fans as brand ambassadors and by establishing an emotional component with the brand.
Customers as Brand Ambassadors  Numerous studies have shown that word-of-mouth advertising is the most successful and trusted form of advertising for a company. Highly attached fans like those of NASCAR tend to serve as brand ambassadors by spreading positive word of mouth to other people and brand communities. Their loyalty makes them more likely to overlook weaknesses in the NASCAR brand and less likely to switch brands themselves when faced with competing brands. Even rival racetracks can be strong ambassadors for the NASCAR brand. The Rockford Speedway (located in Rockford, Illinois) hosts NASCAR-sponsored events. Rather than view NASCAR tracks as competition, this speedway embraces the benefits from a NASCAR connection. The Rockford Speedway carries the NASCAR message to the community through television and radio advertisements and through the actual racing events it sponsors.
NASCAR and Emotional Branding   Fans that have a strong interest in NASCAR and follow the sport diligently do so because of their emotional connection to the brand. NASCAR is able to achieve a high level of emotional branding because the fans connect with the drivers and experience the rush of the races. Studies reveal that 72 percent of NASCAR fans are strongly loyal to NASCAR sponsors, which is particularly helpful to today's automakers like General Motors who are facing bankruptcy. According to a Nielson People's Meter Sample and the Survey for the American Consumer, NASCAR fans give drivers of Chevrolet cars 70 percent higher ratings than other cars, Dodge 59 percent higher ratings, and Ford 64 percent higher ratings. The emotional connection consumers feel for these automakers contributes to their loyalty even in the face of financial woes.
NASCAR events and the "Community'' link on the NASCAR website also allow fans to connect with one another. Additionally, NASCAR works hard to portray its drivers as accessible men and women who care about their sponsors and fans. It recognizes that NASCAR drivers help elicit emotions in fans through their person­alities and individual attributes. The sport is so committed to portraying its drivers as positive role models that driver Dale Earnhardt, Jr., was fined and docked points after uttering an expletive on television. This shows that NASCAR's attempts to be cus­tomer-oriented and build emotional ties are essential toward constructing an effective, customer-friendly brand image.
The NASCAR Experience       For many NASCAR enthusiasts, the sport does more than simply offer entertainment. NASCAR also offers an experience—the chance to expe­rience the thrills of auto racing without actually going through the dangers. The action of NASCAR races keeps many fans on the edge of their seats, waiting to see what will happen next. They are able to connect with the drivers, who they tend to view as down-to-earth, respectable role models. NASCAR also tries to capitalize on the fact that the act of driving is a daily experience for most people. This allows fans to envision themselves as the driver, thus increasing their relationship to the sport. Increased connection increases attachment, which in turn strengthens the emotional connections between fans and NASCAR. Experiencing the brand in this way helps to increase the loyalty of NASCAR fans.

 

Conclusion

Branding has evolved to represent the personality of a company, and NASCAR is a shining example of an organization that successfully embraces the branding mantra. Throughout its 60 years of existence, NASCAR has developed and implemented a branding strategy that encompasses a wide range of marketing initiatives. Brands are built on powerful emotional connections through an extremely wide variety of touch points. NASCAR delivers these connections through event marketing, emotional branding, brand communities, customer understanding, brand drivers, differentiation, co-branding, and the understanding that once a brand has been created, it must be monitored and allowed to continuously evolve.
However, in spite of NASCAR's highly successful branding strategy, the future of NASCAR is uncertain. The most recent economic recession has hit NASCAR hard. The majority of sports are suffering as sponsors pull their endorsements. Yet for NASCAR, which depends so much on its brand alliances and partnerships with other companies, the pullout of sponsors will have an even greater impact. Automaker support has been a crucial component to NASCAR's success, and as the financial situation of key automakers deteriorates, their funding of NASCAR events is likely to decrease. Still, experts foresee that manufacturers will continue to play a major part in NASCAR.
            The lower attendance at NASCAR events is also born of the recession. As con­sumers strive to save money, discretionary spending on entertainment is one of the first budget items to be cut. NASCAR has taken a proactive stance toward the issue by lowering ticket and concession prices, and working with communities to offer incentives to get fans to travel to the events. Whether these actions will be successful remains to be seen, but the intense brand loyalty of fans certainly lies in NASCAR's favor.

 (Source: Marketing Strategy 5th edn, Ferrell &Hartline, case 3:NASCAR : A branding Success, pg 414

 to pg 425, (Cengage, 2011)