As the economy continues to sputter, construction related companies are cutting back on their investments in NASCAR sponsorships. Recently, Dewalt announced it was ending its NASCAR sponsorship, and Lowes announce it was ending its sponsorship of Lowes Motor Speedway in Charlotte.
Dewalt, one of a handful of construction related companies involved in NASCAR’s Sprint Series, recently announced a decision to end its 10 year relationship with NASCAR driver Matt Kenseth. Driving the number 17 Dewalt Ford Fusion, Kenseth won a Sprint Car Championship in 2003. Unfortunately this ends a chapter in a great construction branding success story. Dewalt is literally a Harvard Business School case history on brand building and customer loyalty.
Roush Fenway Racing said they were notified by Dewalt that they would not be renewing their NASCAR sponsorship due to a drop in construction activity. “While the motor sports program has been a valuable marketing tool for DEWALT during the past twelve years, the company has decided to redirect its resources in light of an unprecedented decline in the construction industry,” read a press release on Dewalt’s web site. The decision by Dewalt to end their sponsorship was another blow to NASCAR, who has been hurt by Detroit’s woes and a drop in attendance and viewership.
“Our decision to discontinue the sponsorship, while a difficult one, will help us to continue delivering value to our customers and end users, while managing our financial results. We remain committed to the team for the 2009 season, and will have an ongoing presence in the sport as DEWALT tools will continue to be used to build and maintain racecars and equipment. We would like to thank DEWALT racing fans for their loyal support over the years and we also thank Matt, and the entire Roush Fenway Racing organization for their efforts and outstanding results, and wish them continued success,” the release continued.
Dewalt, a unit of Black and Decker, built a dominating construction brand in the 1990’s. Dewalt’s NASCAR sponsorship was a key part of that brand building initiative. Dewalt is a well know case history
in marketing circles. Dewalt was transformed from a little known business-to-business and became a leading industrial tool company. While their focus was contractors, Dewalt quickly became a household name in the home owner market.
Their aggressive strategy included reaching their customers where “they live, work and play.” That’s where the NASCAR sponsorship was a key strategy. Dewalt was also well known for hiring hordes of recent college graduates and blitzing job sites, doing demos and giving away items. Dewalt also leveraged their NASCAR investment at trade shows and events by having a 17 car and racing items. They also successfully leveraged the investment by taking cars to retailers such as Lowes and Home Depot.
Roush Fenway Racing said they were notified by Dewalt that they would not be renewing their NASCAR sponsorship due to a drop in construction activity. “While the motor sports program has been a valuable marketing tool for DEWALT during the past twelve years, the company has decided to redirect its resources in light of an unprecedented decline in the construction industry,” read a press release on Dewalt’s web site. The decision by Dewalt to end their sponsorship was another blow to NASCAR, who has been hurt by Detroit’s woes and a drop in attendance and viewership.
“Our decision to discontinue the sponsorship, while a difficult one, will help us to continue delivering value to our customers and end users, while managing our financial results. We remain committed to the team for the 2009 season, and will have an ongoing presence in the sport as DEWALT tools will continue to be used to build and maintain racecars and equipment. We would like to thank DEWALT racing fans for their loyal support over the years and we also thank Matt, and the entire Roush Fenway Racing organization for their efforts and outstanding results, and wish them continued success,” the release continued.
Dewalt, a unit of Black and Decker, built a dominating construction brand in the 1990’s. Dewalt’s NASCAR sponsorship was a key part of that brand building initiative. Dewalt is a well know case history
in marketing circles. Dewalt was transformed from a little known business-to-business and became a leading industrial tool company. While their focus was contractors, Dewalt quickly became a household name in the home owner market.Their aggressive strategy included reaching their customers where “they live, work and play.” That’s where the NASCAR sponsorship was a key strategy. Dewalt was also well known for hiring hordes of recent college graduates and blitzing job sites, doing demos and giving away items. Dewalt also leveraged their NASCAR investment at trade shows and events by having a 17 car and racing items. They also successfully leveraged the investment by taking cars to retailers such as Lowes and Home Depot.
Lowes and Home Depot have been long-time NASCAR Sponsors. Both have significant customer bases in in consumer and professional markets. While Lowes and Home Deport are continuing their car sponsorships, Lowes announced that it is ending its 11 year sponsorship of the Lowes Motor Speedway in Charlotte. In 1999, Lowes' naming rights deal was one of the first for major NASCAR tracks. Lowes cited "changing marketing strategies" in a press release. The Speedway will likely return to being called Charlotte Motor Speedway.
MAPEI, a leading supplier of construction products, has sponsored Robby Gordon Motorsports' race team since 2006. A number of other companies that serve the construction market are involved in NASCAR. For example, Fastenal, which primarily serves the commercial market sponsors a Nationwide Series Team.
A key part of the sponsorship strategy has to be leveraging the sponsorship investment across all marketing programs. For example, featuring the sponsorship in ads, mailer, and the web. In addition, using the races and other events as opportunities to entertain clients.
While sponsoring a NASCAR team is not possible for most firms in the AEC industry, the premise of Dewalt’s marketing strategy are relevant for all firms. Focus on building your brand, connect with customers, and focus on building loyalty.
While sponsoring a NASCAR team is not possible for most firms in the AEC industry, the premise of Dewalt’s marketing strategy are relevant for all firms. Focus on building your brand, connect with customers, and focus on building loyalty.
