Tight household budgets might have consumers cutting back on entertainment. But NASCAR fans appear to be motivated by ticket price discounts. And when the incentive for obtaining these discounted tickets is combined with the required purchase of their favorite CPGs, the marketing campaign can turn into a win for all vendors. Late last year, NASCAR ran a test promotion combining the efforts of local speedways, grocers and CPG vendors. This spring, a larger program proved highly lucrative in Texas so NASCAR is looking to expand on its success.
Here’s how it works. Consumers spend up to $20 on CPG items like branded soda. In return, they’ll get a discount of up to 50% on the purchase of 4 race tickets at a local speedway, along with discounts on beverages and food at the park. They can also be entered into a sweepstakes program for a chance to win even larger prizes. Marketing for the program includes point of purchase displays in the grocery stores as well as TV and radio. Some of the marketing costs were shared by all of the parties in this promotion.
Coca-Cola, a participant in the Texas program, reported significant sales increases up to 2 months after the 4‑week promotion ended. The speedway and the grocery stores also reported positive results. “We can help our partners by giving them a point of differentiation at retail,” explains Matt Shulman, NASCAR’s director of business solutions. The success of this program is leading NASCAR to look for other grocery partners for upcoming fall campaigns.[Source: Smith, Michael. Promo moves products, race tickets. Sports Business Journal. 12 Jul. 2010. Web. 22 Jul 2010]