project speedway v6
TRANSCRIPT
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PROJECT SPEEDWAY
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1 - The Vision2 - Motorsports Team 3 - Television Show4 - Ultimate Racing Experience5 - Closing 6 - NASCAR Brand Review
Table of Contents
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The Vision Taking it to a whole new level
Some of the biggest names and hero’s of yesterday and today are sports and film stars. The impact on pop culture is often molded by these larger than life personalities.
Companies world-wide have proven its good business to align themselves with these stars and whole industries have been borne and flourished from it.
Few know and understand the purposeful strategies that go on behind the scene’s to create such figures and then profit made by them.
Our vision is to use this approach to develop a new “mega brand” that resonates with main stream audiences by combining motorsports elite and entertainment industry moguls for massive growth potential.
Our purpose is to inspire and generate legions of fans who consume our products and services by leveraging existing audience attention.
The following slides outline the opportunity and strategy for this new business model.
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Attract the eyes of the world.
Project Speedway is the culmination of years of development by visionaries Kenton Gray and Aaron Skyy.
Project Speedway has been meticulously been designed to take advantage of rich opportunities.
Project Speedway consists of:
A new Prime Time television series
A newly created & branded NASCAR team
A Project Speedway Fan Experience based in Hollywood CA.
A super progressive video game “Speedway X”
Each of the four components work in harmony to promote and popularize one another and exploit commercial opportunity. At the core of this Brand is an experienced teamand a handful of the worlds biggest celebrities.
Project Speedway is a complete sports entertainment juggernaut.Life in the fast lane just got a whole lot faster.
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What is Project Speedway?
Welcome to the world of
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What is it that we’ve identified that makes Project Speedway a gold mine? Read on.
What is the magic formula NASCAR is constantly searching for?
It is the perfect combination of factors that creates on-going excitement, enthusiasm and unwavering fan loyalty within the sport. The fans are the fuel for the NASCAR machine. Without the fans the revenue dries up.
What does NASCAR need? What do the sponsors want? What do the networks want?
The answer is “a bigger audience.” Access to the larger main-stream consumers. Per survey and market research the sponsor executives feel they’ve got the NASCAR fan base pretty much in hand but what they are looking for is something new and unique that is entertainment based. Still connected to the sport but that will give them the opportunity to reach a bigger audience.
NASCAR media’s purpose is to interface with the entertainment industry and create new opportunities. As of June 9, 2010 the series they had been working on with TLC has been canceled due to creative differences.
The timing is perfect as NASCAR, the sponsor’s, the network and the fans are ready for something new that resonates with consumers and attracts their interest and attention.
Project Speedway is that new entertainment project that captures the hearts and minds, that inspires the common man.
Lights! Camera! Action!
Building Brands and Profit
What do Presidents, politicians, TV stars, Movie stars, Rock Stars, Top Athletes, Hollywood Studio’s, Fortune 500 companies and every wannabe have in common? NASCAR! They all use NASCAR for exposure, exposure, exposure! It’s the place to be and the place to be seen.
Massive Exposure One of the biggest keys to success for any brand is Exposure. The world of motorsports and entertainment are littered with brand success stories. Companies consistently spend 10’s of millions of dollars each year to build, strengthen and sell there wares through sponsorships and product placement opportunities generating billions in profits.
The entertainment world and the world of NASCAR have the largest, most consistent on going media connection with the people of Earth. It is exposure, exposure, exposure that will fuel this concept.
Unparalleled Loyalty 72% of motorsports fans say they almost always or frequently buy a sponsor's product rather than choose one from a non-sponsor company.
High Impact Image Race cars generate impact and offer a highly visible, exciting and memorable advertising medium which enhances the corporate image by conveying competitiveness, innovation and a winning attitude.
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Take the initiative to celebritize Project Speedway’s own brands and identities.
The components that make up the NASCAR machine are individualized.
NASCAR Race teams traditionally are in the business of building and fielding competitive race cars, this is one piece of the puzzle. They’re not in the business of marketing concepts or entertainment idea’s that leverage the team and drivers. That is left to Hollywood, PR, marketing and ad agencies.
As the teams and drivers are what hold all of the value for fans this second piece of the puzzle is where most all of the opportunity lies. Like any product it must be marketed properly otherwise tremendous potential revenue is left on the table.
This is the sports and entertainment business and as such the team that embraces and exploits this fact fully will increase its bottom line and expand its influence beyond anything yet seen.
We are the first to fully integrate the best of entertainment with the world of motorsports to enhance and drive OUR brands.
It’s big business with multi-billion dollar opportunities.
Case Studies: Brands Entering NASCAR
Red Bull Racing: Goal - enhance the Red Bull brand & drive sales. Accomplished.
Toyota: Goal - To be the number one automaker in the US. Accomplished.
25% of the Fortune 500 use NASCAR to fuel their brand initiatives as well as other entities in politics, entertainment and Armed Forces etc.
Leveraging the Power of NASCAR and Leveraging the Power of NASCAR and Entertainment Entertainment
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• High profile celebrity support, press, PR, interviews, appearances etc.• Marketing partnership with high profile NASCAR tracks• MRN Radio - Sirius Satellite Radio• Hollywood & National Press • Marketing Partnership with NASCAR Media & Entertainment • Comprehensive viral marketing, web, radio, print
Creating Overwhelming PopularityLeveraging the power of NASCAR. Our team brings with them many key relationships that give us the
ability to align with the top echelons in motorsports and entertainment. This concept aligns with, supports & enhances all existing sponsor initiatives at all levels and creates many new and innovative campaigns. We have on-going opportunities via our relationships to leverage the following for PR, media and marketing purposes.
• Hospitality, Events & Entertaining• In Market Campaigns & Broad Promotional Strategies• Retail• Business to Business• Public Relations Initiatives• Advertising & Commercial Marketing Campaigns• Mobile Tours• Charity Functions & Goodwill Programs• In-store displays• Disney Adventures• Universal Studio City Walk • LA Live
Cross Promotion & In-Market Opportunities
Copyright © Project Speedways LLC., 2010. All rights reserved.
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More brand visibility
More targeted PR
More retail traffic
More online traffic
More excitement
More sales
More revenue!
Driving MORE
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Revenue Streams & Opportunities
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Project Speedway TV series
Production Fee’s Advertising Revenue from all formsProduct Placement and Show SponsorshipsFormat Rights Sales Syndication Fee’s Show & Team Apparel, Merchandise & Licensed goods
Text Messaging fees & bounce backs.
Project Speedway NASCAR race team
Endorsements and Team Sponsorships Race Winning’s, bonuses and contingency funds Television Fund Championship Owners ProgramApparel and MerchandiseLicensed goods Leveraged sponsorship packages that integrate other opportunitiesShow, Race Team & Driving Experience leveraged partnershipsTV & Film production fee’s
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Project Speedway Ultimate Driving/Racing Experience SponsorshipsDriving Experience’s & Training Programs Ride-a-long’sCorporate Events & EntertainmentApparel & MerchandiseLocation Fee’s for TV & Film Special Events Commercial, TV, & Film Consulting, Production, Studio rentals
Video game - Project Speedway’s “Speedway X”Game SalesSignature Series Racing/Driving Simulator and gear.
Opportunities Use of platform to expose proprietary brands and companies
Platform includes: TV Series, Fan Experience, Race Team the celebrity owners and friends who contribute to the popularization of Project Speedway.
Revenue Streams & Opportunities
12May 30, 2010CONFIDENTIAL: Kenton Gray, Inc.
NASCAR Affiliation
Equity Partner
Project Speedway TV show
PROVIDES: License Fees; Story Line; Value Add for sponsors.
RECEIVES: Sponsor & Sponsor Revenue; Location Fees,
Equipment, and Recognition
PROVIDES: Shooting location; racing facilities; Value Add for
sponsors; story line, promotion & marketing for the show
RECEIVES: Sponsors & Sponsor Revenue; Recognition
Distribution:Broadcast Network
Sponsors
Apparel and Merchandise
(Sold by Show, Race Team and School; revenue shared)
Production Company
Sponsors (non-show)
KentonGray
COOPERATIVE: Business Dev between
the entities; Race team may use
school facilities
PS OnlineAudience
participation, identity capture, sponsor
marketing etc.
PS Touring(owned)
PS California (owned)
Project Speedway Racing Experience
Kenton Gray Inc
Aaron Skyy
Equity Partners
Kenton Gray Inc
Aaron Skyy
Equity Partner
Project Speedway Racing Team
PS Race TeamBoris Said
Strategic Partner(s)
Nationwide & Sprint Cup
Equity Partner
Key AffiliationsSean Combs
Audience
Flow Chart
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MOTORSPORTS TEAM Introducing Project Speedway Race Team
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Championship Race TeamBuilding a New Power Brand
Only the best will do. The new Project Speedway Racing team will be debuting at the 2011 Daytona 500. The vision of being a new power brand is the goal. Executing this vision is completely possible with the high caliber of people behind this project and the existing key relationships within the top levels of the sport.
Project Speedway Racing will be partnering with the premier championship winning team in the sport. Hendrick Motorsports will be a technology partner providing engines, chassis and technical expertise to ensure we have the what we need to win races.
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MOTORSPORTS TEAM
About Hendrick Motorsports - One of stock-car racing's premier organizations.
In 26 years of competition, Hendrick Motorsports has garnered nine NASCAR Sprint Cup Series championships, three NASCAR Camping World Truck Series titles and one NASCAR Nationwide Series crown (formerly Busch Series), making it one of stock-car racing's premier organizations. Rick Hendrick is just the second team owner in NASCAR's modern era to earn more than 185 Cup Series victories.
The four full-time Sprint Cup teams of Hendrick Motorsports include:
• Mark Martin in the No. 5 GoDaddy.com Chevrolets• Four-time champion Jeff Gordon in the No. 24 DuPont Chevrolets • Four-time defending Sprint Cup champion Jimmie Johnson in the No. 48 Lowe's Chevrolets • Dale Earnhardt Jr. in the No. 88 AMP Energy/National Guard Chevrolets.
Hendrick Motorsports' sponsor-partners include some of the world's most respected brands: Adidas, AMP Energy Drink, Army National Guard, Bosch, CARQUEST, Chevrolet, Club Car, Delphi, DuPont, Freightliner, Gatorade, Georgia-Pacific, GoDaddy.com, Goodyear, HAAS, LORD Corporation, Lowe's, Mac Tools, MAHLE Clevite, Mechanix Wear, Nicorette, Panasonic Toughbook, Pepsi, Quaker State, Siemens, Stanley Tools, Time Warner Cable, Wix Filters and Wrangler.
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An American race car driver from Carlsbad, CA but considers his hometown to be Stamford, Ct. His father, Bob Said, was a Formula One race driver and US Olympic bobsled driver in 1968 and 1972. He currently drives the #26 Ford Fusion for Latitude 43 Motorsports in the NASCAR Sprint Cup Series. Although he is now making the move to full-time NASCAR competition alongside crew chief Frank Stoddard. His NASCAR career began in 1995 as a "Road course ringer" primarily due to his extensive road-racing experience.
Among the notable awards are 1997 & 1998 24 Hours of Daytona winner, 1998 12 Hours of Sebring winner, 2005 24 Hours Nürburgring winner.
He has driven for some of the most famous teams in Nascar and his passion for racing is higher than ever.
BORIS SAID – The MasterDriver – Project Speedway Racing
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• Kenton is a licensed NASCAR driver, Certified Hollywood Stunt Car driver and racing instructor.
• A true sportsman and competitor Kenton has been racing since he was 10 years old. First cutting his teeth on the oval dirt tracks of the Pacific Northwest, he has raced Go-Karts, Legends cars, and NASCAR stock cars.
• Kenton established Freedom Motorsports Group Inc. in 2000-2001. Fielding a professional road race team that competed in the Formula USA National Road Racing Series. This series was the first venture into professional motorsports. The team competed in the Sport Bike class racing SUZUKI GSXR 600’s and had fantastic success earning Rookie of the Year and finishing 5th in points out of 42 other race teams.
• Kenton is an excellent leader, with a never quit attitude. He is as comfortable behind the wheel as he is in front of the camera or the boardroom. He’s a fan first with a real passion and ceaseless enthusiasm for the sport.
KENTON GRAY - The ApprenticeDriver – Project Speedway Racing
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PRIMETIME TV A New Concept in Reality TV
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PROJECT
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Production: A Pecko Films ProductionDigital Graphics: Zoic StudiosProgram: 1 Hour Episode: Changing (Players)
Host- Eddie Rubin & Marry Morhring
Judges – Sean Combs Darrel Whaltrip Hot Female Agent
20 Finalist’s – Who say “I’m the best” But Project Speed Way will prove otherwise….
Product Placement Sponsors: Bridgestone Tires Metal Crafters
Zeiring Medical Tomarco
John Jory Corp.
PROJECT
SPEEDWAYCreated byAaron Skyy
Kenton Gray &Ed Shain
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Life at the top. The pinnacle of modern motorsports. Fortune. Fame and everything that goes with it.
If you had the chance would you risk it all for a shot at super stardom?
In the fast paced and highly competitive world of sports entertainment the chances of the average guy or gal making it is slim to none. In this gritty new series the best from all 50 states go head to head to prove why they deserve to be one of the 20 finaliststhat will compete for the coveted prize.
To emerge as America’s favorite driver .
What does it take to get there? Find out on Project Speedway.
Project Speed Way Nascar meets American Idol and Entourage in the hot new series “Project Speedway.”
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Project Speedway will break one new driver each season and will quickly emerge as the source for new talent in modern motorsports.
These newly crowned drivers will enter the world of motorsports more experienced, nationally exposed and sponsored. As known quantities each new driver will be completely armed with the potential of controlling their destiny. Project Speed Way will have selected guest star celebrities and our finalists showing their best trying to become the America’s next favorite driver.
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Branded Entertainment
Whether you call it Affinity Marketing, Experiential Marketing or Branded Entertainment they all basically mean the same thing; Getting a personal connection with the consumer.
Product placement is a marketing practice designed to intentionally insert products into thecontent of entertainment programs, such as movies and television programs. In most cases the placement is subtle so as not to divert significant attention from the main content of the program or media outlet.
Situation: As traditional advertising wanes advertisers are finding new life in unique stealth marketing. Better known as “branded entertainment,” where companies pay a premium to be placed or be integrated into the programming content.
Opportunity: Unlike all other sports and forms of televised entertainment, brands are part and parcel to the game of racing. “Brand Clutter” isn’t an issue in racing, on the contrary it is highly effective. No other show can compete with the potential of branded integration opportunity within Project Speedway. What would seem ludicrous & out of place on other shows is part of the story & expected in racing. The lifeblood of racing is sponsors and fans wholeheartedly embrace this fact.
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Audience … Demographics
Existing NASCAR fan base world-wide
Non racing fan general network audience
Male and female 18 – 45 yrs old
The power is in the numbers.
Database capture, development & activation program.
The program is heavy with weekly, monthly and seasonal activation initiatives. Within each episode clues, trivia, pieces of puzzles or instructions are given to viewers that invite their participation to enter the many contests, challenges, giveaways and other Project Speedway activities. This provides a powerful database capture development and activation program. Each viewer is instructed to text message their responses and/or go to our website at the end of each episode. This results in willful identity capture that includes participation.
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Distribution Model
Series on FOX Television 2011
2011 Premier aligned with Daytona 500 on Fox
Webisodes
Mobisodes – 3G & 4G content distribution
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Show Production Budget
$650,000 per episode
*Budget is based on estimated requirements for each episode. This figure represents true cost of each episode afterall preproduction expenses. Budgets can fluctuate drastically as a result of many factors, mainly it has to do with the value of the show. The more value the more revenue can be generated the more potential budget for episodes.
Figure represents production costs to produce each 1 hour episode.
Minimum of 6-8 episodes for 20111
1 Based on terms negotiated with network and timing with NASCAR seasonal programming
Full season 2012
Pre-production budget TBD
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THE ULTIMATE VIDEO GAME An experience like no other game provides
PROJECT
SPEEDWAY
Project SpeedwayProject SpeedwayTHE ULTIMATE VIDEO GAMETHE ULTIMATE VIDEO GAME
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Bring Bring Project SpeedWay Project SpeedWay HomeHome
Our basic concept for “Project Speedway” the video game is based on something more original than any other video game of this caliber.
We want the interaction and graphics to take on a combination of characteristics of games such as, Tekken, GTA, James Bond, Italian Job, and Bourne Identity. Play Station offers all these games with the exception of James Bond which is offered by Nintendo. Graphically, Play Station stands on top as one of the best, therefore in going forward we want “Project Speedway” to be that next level video game where the characters in the video look like Polaroid’s of the characters from the actual show. Take for example this still photo of the main character in the new “Night Rider” ’08 video game above.
We would like the characters to be completely multi-facetted.
Such as, being able to jump into their personal vehicles, but also have the skills to hot-wire other vehicles within the game. Be able to change the views of the players controlling the vehicles from exterior to interior to full road view, etc. Not to mention have the capability to fly jets and helicopters when the situation within the game calls for it. Examples of the types of vehicles are above.
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Lastly we want the characters within the game to take on the exact driving skills and styles that the individual characters on the show. Lastly we want the characters within the game to take on the exact driving skills and styles that the individual characters on the show. The Bourne Identity video game has these capabilities but still looks video game like, where we would like the game to have the same flare The Bourne Identity video game has these capabilities but still looks video game like, where we would like the game to have the same flare
but look more realistic like the Night Rider video game. When it comes to styles and flare of driving styles and skills, we’d like to have a little but look more realistic like the Night Rider video game. When it comes to styles and flare of driving styles and skills, we’d like to have a little of the sort of flare you would find in the LA Nights and the competitive challenges of Grand Theft Auto games by Play Station. of the sort of flare you would find in the LA Nights and the competitive challenges of Grand Theft Auto games by Play Station.
In closing we just want to give a general idea of the vision and concept of the making of “Project Speedway” the video game We’re confident that with the proper funding and graphic artists, along with the technology of today, we can produce a product that will be talked about and anticipated long before its release.
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ULTIMATE RACING EXPERIENCE Fans line up for the ultimate thrill ride
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Project Speedway’s Fan Experienceis
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generated via our TV series is through the creation of an authentic NASCAR/motorsports experience. This provides an additional platform for our partners to interact with the fans. The home for this experience will be a purpose built entertainment destination at Toyota Speedway at Irwindale. The intention is to be the premiere operation of its kind. The ability to operate under an exclusive contract at Toyota Speedway and negotiate with Auto Club Speedway be the Official Racing Experience and promotional partner is possible. Auto Club Speedway is the fastest track on the circuit and NASCAR’s premier west coast facility.
Toyota Speedway is within the studio zone of the entertainment capital of the world just 25 minutes east of downtown Los Angeles. This state of the art racing facility will be unique in that it will serve as one of the active television studio sets for the Project Speedway TV show.
Both operations will operate year round providing heart pounding authentic NASCAR racing and driving experiences to the broad public and for corporate entertainment events. It is sure become a destination of choice.
Speed School X combines the best of Hollywood entertainment with motorsports for an unforgettable experience.
Fueling your Passion for Speed …
… & High Profits!
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Copyright © Auto Adventures LLC., 2010. All rights reserved.
The Ultimate Driving Adventure
It’s full throttle action in Project Speedways Ultimate Driving Experience called Speed School X (SSX).
Project Speedway will in many ways follow the same successful business model of other television show’s such as American Idol and American Chopper who build, popularize and sell their own brands via their TV shows. Both of these show’s enjoy massive success in the marketplace, but the potential for Project Speedway is much greater due to motorsports being sponsor driven.
One the many ways we intend to capture the interest and excitement
Future expansion plans include NASCAR experiences at additional tracks and the Project Speedway Tour.
Additional tracks include Las Vegas Motor Speedway and Infineon Raceway in Sonoma CA. The exclusive contract to deliver NASCAR racing experiences at the Las Vegas Motor Speedway ends 4 th quarter 2011 and its our intention to lobby to take over the contract in 2012.
A road course experience to be delivered in Sonoma CA at Infineon Raceway is definitely in demand by the local fan base and with the closest competitor based in Charlotte NC this market is wide open.
The timing is perfect to take advantage of new market opportunities, secure a foothold in the gap left by the withdrawing industry leader and capitalize on the enormous demand untouched in the Southern California market.
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Future Expansion Potential Immediate Operation
With operations running at both Auto Club Speedway and Toyota Speedway at Irwindale we will have essentially locked up the So Cal. market.
The racing experiences will be using two types of NASCAR race cars; the new NASCAR Nationwide and NASCAR Sprint Cup race cars. The same cars used in real races.
The Project Speedways NASCAR Experience will provide a menu of racing excitement from ride-along’s to the full racing experience, which puts fans behind the wheel and in control of an authentic race car. Our programs allow enthusiasts and corporations alike to get first-hand experience of what its like to race at high speeds around the same track as the biggest stars of NASCAR.
Real Tracks! Real Cars! Real Speed!
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“Let the experience begin.” This is where our business happens. Auto Club Speedway events draw hundreds of thousands of fans each year and we will be positioned to be in front of each and everyone of those fans. Our principal place of business will be located directly across the street from the Speedway allowing for year round track operations. The track facility is NASCAR’s west coast crown jewel hosting its top racing divisions. As the only local NASCAR experience of its kind we will have the opportunity to be a marketing partner with both the track and NASCAR media allowing for ongoing in-market campaign participation.
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Auto Club Speedway is a multi-purpose facility sitting on 568 acres and offering a 2-mile D shaped oval, 3 interior road courses, a sanctioned Karting track, an NHRA ¼ mile drag strip and enough pavement to accommodate any type of driving event. There is seating for more than 92,000 fans in the grand stands and another 50,000 in the infield including 63 corporate pit lane suites and 28 sky box suites. More than 38,000 paved parking spaces and over 1800 reserved RV spaces. Complete stadium lighting for night time events & enclosed garages make this facility one of the best in the country.
Copyright © Auto Adventures LLC., 2010. All rights reserved.
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Partners of Auto Club Speedway These companies are partners of the Auto Club Speedway and as such Project Speedways will have the opportunityto connect with each of them. Project Speedways has been asked to provide driving and racing experiences on behalf of the speedway for the executives of each of these companies for the 2010 season. In addition to these services proposalswill be provided to each company for additional programs for riding & driving events, corporate team building, employee and client entertainment programs and corporate hospitality.
Copyright © Auto Adventures LLC., 2010. All rights reserved.
Guests will have an opportunity to purchase a personalized DVD of their racing experience. An authentic TV production with a 4 camera view, pre-produced intro, ending and sponsors mini commercials. Includes a pre-recorded Project Speedway Rewards program offer that informs guests of special offers, promotions and our referral program. It is a great sentimental product that is a popular add-on to any experience. Just like the in car camera’s of actual NASCAR races we to have an authentic look with sponsor logo’s and a digital performance dash board showing vehicle data.
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Experience the sights, sounds and smells of NASCAR with a Project Speedway racing experience. As one of the sports most exciting NASCAR fan experiences we have designed a truly authentic racing adventure. We offer our guests all the fun, excitement and education they’ll need to keep the adrenalin pumping. From our interactive displays they’ll take home a truly authentic race day experience in one of the country’s biggest sport.
Everyone is a winner!
In Car Video’s – Added Value
These pictures are a glimpse of what our guestswill see and experienceduring one of our Speed Adventures.
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Our fleet for the NASCAR adventures is planned to look and operate similarly to a Sprint Cup “COT” or Car of Tomorrow (as seen below). They will be much the same race car as currently raced in NASCAR’s top division, the Sprint Cup Series. Each one of our race cars are authentic and formerly raced by some of the top drivers in the sport. Each car will sport either current paint schemes of the top teams, or schemes of our major sponsors or major promotional opportunities.
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Copyright © Auto Adventures LLC., 2010. All rights reserved.
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Exciting TimesNew Nationwide Series car on course for 2010 season
The excitement surrounding the new NASCAR Nationwide Series car has everyone talking. After three-plus years of design, testing and back-and-forth discussion with series teams it’s come down to Friday night at Daytona.
The goals for the new car – closer competition, safety enhancements and creating a specific identity for the series – are included in the buzz that surrounding the models. Fans and drivers alike are eagerly awaiting the Dodge Challenger and Ford Mustang, along with another new model in the series, the Chevrolet Impala. Toyota will continue to race its Camry. The new-car model fits right into the look of cars that are on the road today.
What does this mean for the Project Speedway Experience? Fans lining up to see, ride in and have a chance to drive the new race car. It new, its exciting and its hot looking.
The Ultimate Driving Adventure
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“Rookie” Experience 1 session 10 laps $399Your hands are on the wheel, your foot is on the gas and you are in the driver’s seat for 10 Laps around the speedway in a 600-horsepower NASCAR-style stock car. The program lasts approximately 3 hours; the memories last a lifetime.
“Victory Lane” Driving Experience 1 session 20 laps $799You will feel like a “NASCAR Driver” during this program consisting of 20 laps in one adrenaline Pumping sessions; 20 laps of pure power….feel the excitementThe program lasts approximately 3-4 hours.
“Auto Club 500” Driving Experience 2 sessions 40 laps $1399Can you handle 40 laps of white-knuckled, heart-pounding speed? Improve your driving line, Increase your speed ….consider a career change during this experience of a Lifetime. Between sessions, drivers will receive individual feedback and coaching from YOUR driving instructor. The program lasts approximately 4 hours.
“3 Wide” Racing Experience 3 sessions 60 laps $1799Get ready for some serious track time during this 60-lap, 3-segment experience. This Intense experience has incremental increased Speeds before concluding. Between your 20-lap sessions, drivers will receive individual feedback and coaching from YOUR driving instructor. This program has a prerequisite of “Auto Club 500” the program runs 4-5 hours
Driving Experiences
Copyright © Auto Adventures LLC., 2010. All rights reserved.
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RIDE-A-LONG EXPERIENCES
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“The Draft” Advanced Racing Experience 4 sessions 80 laps - $2599Take your driving skills to the highest level. “The Draft” Advanced Racing Experience is designed for the die-hard racer. The “3 Wide” Racing Experience course is a prerequisite for this class; the highest level of driving experience. This very intense experience includes: Passing, Drafting, and Side by Side with your instructor. Personal coaching makes drivers who take this 80-lap program feel like they're getting ready to take on “NASCAR.” Between your 4 driving sessions of 20 laps each, drivers will receive individual feedback and coaching from YOUR driving instructor. This program has all elements and feelings of a real race the program lasts a full day.
“Pole Qualifying” Ride-A-long Experience 4 Laps $99 Experience real life racing thrills by riding shotgun in a NASCAR-
style stock car driven by a professional race drivers for a 4-lap qualifying run. The Ride-Along program starts one hour after the start of each driving class.
Ultimate Race Experience 10 to 20 Lap Ride-Along starting at $ 279Our ‘ultimate’ team building experience! From the passenger's seat you will feel the thrill of racing against your peers in this relay-type program. This event consists of 10 to 20 laps from flag to flag. As you experience side-by-side racing, drafting, passing and more.
Copyright © Auto Adventures LLC., 2010. All rights reserved.
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Unique Events. A great VenueAuto Club Speedway has had the privilege of customizing programs andhosting events for some of the top corporations in the world. From organizing meetings and team building events, to full-scale dining and multi-day activities. Once the Driving Experiences and Driving Academy programs have been established we plan to offer complete fulfillment packages to make every corporate event a success. Including, birthday parties, anniversaries, graduations, conventions and group events.
Ideas that Inspire
•Team building•Meetings•Incentive and Rewards Programs•Themed Parties and Events
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sCORPORATE EVENTS & PRIVATE PARTIESAlthough revenue from Corporate Events and Private Parties has not been included in the Project Speedways financial projections, we are confident that this can become a major source of future income and profit.
Event Planning & CateringWe will provide our clients complete onsite services including event planningand scheduling, creating curriculum and catering, and menu selection. Value-added items can include invitations,banners, signage, rentals, audio/visual rentals, entertainment, staffing, décor, merchandise, celebrity appearances, stunt and performance driving shows and more! We can create everything from simple box-lunch picnics andwestern barbecues to formal plated dinners.
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Primary Sponsorship Program - Vehicle Real Estate For Sale - Unlimited Opportunity for corporate and entertainment brand promotion. Each NASCAR race car in the fleet is a rolling billboard with saleable real estate.
Race suits worn with a sense of pride while marketing brands. Our customers wear these suitsand have their pictures takenfor lasting memories with the brands boldly displayed in the photo album.
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Each race care within the racing experience fleet includes salable real estate. This is an additional revenue source as well as used for in-kind partner programs. Packaged sponsorships are a complete branded program. The brand Is displayed in uniquely designed ways on all parts of a race team; including drivers helmets, race car, drivers suit, pit crew shirts and suits and pit wall signage, pit boxes and promotional signage. This creates an authentic experience.
High Performance Billboards
Sponsorship sales and partnerships
Copyright © Auto Adventures LLC., 2010. All rights reserved.
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As corporate America’s marketing machine inundates consumers with images and a myriad of product choices, consumers alter their purchasing behavior not on the functional value of products, but on the emotional connections they have with the brand. At Project Speedways the public are able to connect with consumer brands through personalexperience.
Unlike all other sports and forms of sports entertainment, brands are part and parcel to the game of racing. “Brand Clutter” isn’t an issue in racing, on the contrary it is highly effective. What would seem ludicrous & out of placeon other activity is part of the story & expected in racing.
Branded Entertainment
Copyright © Auto Adventures LLC., 2010. All rights reserved.
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Our power is in the numbers.NASCAR is the fastest growing sports market in the United States. A broad worldwide interest in speed and competition has
further popularized auto racing. Gilleard Marketing Research conducted a market study during the NASCAR Sprint Cup race held at the Auto Club Speedway in Fontana, CA in February 2008. Of those NASCAR fans surveyed, 22.5% of the men and women had attended a racing school or driving experience. They enjoyed the speed most of all, as well as the adrenalin rush and the feeling of driving. Of the 77.5% of those surveyed who had not participated in a driving school or driving experience of any kind, approximately 60% would like to. Therefore, 69% of those surveyed either had attended or would like to attend a racing experience like ours. See the diagram below for detailed figures. Based on this market data, our projections assume a market penetration of only 1/5 of 1% of the local market.
MARKET PENETRATION REQUIRED TO ACHIEVE PROJECTIONSPOPULATION
United States population (June 2007) 100% 303,757,983 Estimated NASCAR fans (per NASCAR) 25% 75,000,000
PRIMARY MARKET AREA (i.e. 1 hour drive) L.A. County 9,878,554 Orange County 2,997,033 San Bernardino County 2,007,800 Riverside County 2,073,571 PRIMARY MARKET AREA 16,956,958
Estimated NASCAR fans in Primary Market Area 25% 4,186,793
Portion of NASCAR fans that would either like to attend, or have already attended a racing school/driving experience (per survey) 69% 2,888,887
Projected Driving Experience and Ride-A-Long customers 2011 12,084
Projected penetration of primary market only (i.e., ignoring other markets where demand can be created) 0.42%
Source: US Population - U.S. Census BureauNASCAR Fans - NASCAR Corp. based on an Ipsos Reid NASCAR Brand Review
NASCAR FANS U.S. Pop NASCAR fans %/popNortheast 20% 20% 4%Midwest 23% 24% 6%South 35% 38% 13%West 21% 19% 4%TOTAL U.S. POPULATION 27%
Copyright © Auto Adventures LLC., 2010. All rights reserved.
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Creating Overwhelming Popularity
• Tap into the travel and tourism industry. • Convention industry • Event Planners & destination management industry• NASCAR media machine• Marketing Partnership with Auto Club Speedway • Marketing Partnership with NASCAR media & entertainment
office • Leveraged cross promotions with sponsors• Expansive fascination with motorsports and the car culture
of Southern California • Marketing partnerships with local professional sports teams
(i.e., LA Dodgers, LA Lakers, Angels etc.) • Major Theme parks – Disney and Universal Studio’s.
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Copyright © Auto Adventures LLC., 2010. All rights reserved.
The project Speedway Experience will create strategic partners within the local area to create awareness, drive traffic and build the brands popularity as well as marketing in specific targeted industries such as:
Show set tours
Visitors are able to watch live taping of the show.
Show themed entertainment and events
Retail opportunity with souvenirs, show merchandise etc.
Show themed Hollywood style interactive exhibit development
VIP entertaining with cast and crew.
Project Speedway Experience becomes a Hollywood destination utilized to attract on going attention that draws visitors & business to the facility as the TV show expands.
Guest celebrity appearances – photo opportunities & autograph sessions
Local promotion of “who’s on” the show. Creating a constant “CelebrityWatch” in the local press. Maintains top of mind and attracts interest.
Contribution to local economy
Copyright © Kenton Gray Inc.. 2010. All rights reserved.
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Project Speedway Experience is a Hollywood Attraction
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Fan E
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WHILE EVERY EFFORT HAS BEEN MADE TO INSURE THE ACCURACY OF THE NUMBERS, CALCULATIONS AND PARTICULARS CONTAINED IN THESE FINANCIAL PROJECTIONS, THE CONCLUSIONS ARE DEPENDENT ON FUTURE EVENTS AND MAY BE AFFECTED POSITIVELY OR NEGATIVELY, BY CHANGES IN ECONOMIC CONDITIONS, GOVERNMENTAL REGULATIONS AND OTHER CIRCUMSTANCES BEYOND THE CONTROL OF Project Speedway, LLC. Project Speedway, LLC, NEITHER GUARANTEES NOR WARRANTS THE INFORMATION AND PROJECTIONS CONTAINED IN THESE PROJECTIONS NOR ASSUMES ANY RESPONSIBILITIES FOR ANY ADVERSE CONSEQUENCES, NOR IMPLIES ANY IMPUTED PARTICIPATION IN ANY RESULTS THAT MAY OCCUR AS A RESULT OF THE FINANCIAL PROJECTIONS BEING AT VARIANCE FROM ACTUAL FINAL RESULTS.
The reader should be cautioned that the financial forecast set forth herein is not based on historical fact, and thus constitute forward looking forecasts and statements. Moreover, this financial forecast must only be read in conjunction with the more detailed information appearing in the Private Placement Memorandum, including, without limitation, statements regarding development of the business, anticipated capital expenditures, risk factors and other relevant information. All investments are risky and those noted are no less so. Even minor changes in actual performance versus the assumptions could result in significant changes in the performance of these investments.
Income Statement Summary2010 2011 2012 2013 2014
Projected Projected Projected Projected Projected
REVENUECorporate Events $681,250 $975,000 $975,000 $975,000 $975,000Speed Adventure Programs $2,682,282 $5,986,613 $8,447,777 $10,184,264 $12,277,696Sponsorship revenue $0 $0 $0 $0 $0Safety Program $0 $0 $0 $0 $0Academy Driving Program $99,200 $1,334,680 $1,954,872 $2,409,062 $2,968,777Total .........................................................................................................................................................................................................................................................3,462,735 8,296,294 11,377,649 13,568,327 16,221,474
COST OF REVENUE 638,465 1,173,563 1,487,022 $1,685,614 $1,910,727
GROSS PROFIT ..................................................................................................................................................................................................................................................2,824,270 7,122,731 9,890,627 11,882,713 14,310,746 Gross margin ..................................................................................................................................................................................................................................................81.6% 85.9% 86.9% 87.6% 88.2%
OPERATING EXPENSES General and Administrative $864,807 $1,318,115 $1,328,542 $1,333,797 $1,339,073Sales & Marketing (incl sales commissions) $1,352,558 $2,892,578 $3,448,086 $3,779,182 $4,142,071 Operations $145,409 $291,896 $361,663 $404,884 $453,270
Accounts Payable $66,753 $0 $0 $0 $0Total .........................................................................................................................................................................................................................................................2,429,526 4,502,589 5,138,292 5,517,864 5,934,414
Profit from Operations.....................................................................................………………………………………………………………………………………………394,743 2,620,142 4,752,336 6,364,849 8,376,332 Operating margin ..............................................................................................................................................................................................................................................11.4% 31.6% 41.8% 46.9% 51.6%
INTEREST, DEPRECIATIONDepreciation ………………………………………………………………………….94,011 104,591 125,751 125,751 125,751 Interest expense, net .........................................................................................................................................................................................................................................- - - - -
Total .........................................................................................................................................................................................................................................................94,011 104,591 125,751 125,751 125,751
NET INCOME ....................................................................................................................................................................................................................................................300,733 2,515,551 4,626,585 6,239,099 8,250,582 Net margin ....................................................................................................................................................................................................................................................8.7% 30.3% 40.7% 46.0% 50.9%
Copyright © Auto Adventures LLC., 2010. All rights reserved.
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Exit
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Management anticipates a long-term expansion and hold of Project Speedway. Management has structured this investment in such a way that the primary Exit Strategy for Investors is to provide them with priority and accelerated payments to recover 100% of their capital, followed by a 100% return on their capital and finally an attractive residual cash flow into the future. Regardless of this being management’s current view of the primary exit strategy, management may alternatively pursue a sale of the company or merger if the terms of such a transaction are, in management’s judgment, in the best interests of the owners.
Therefore, this investment has been structured with an incentive arrangement in such a way as to provide an attractive priority return to the Investors:
• 60% of distributable cash flow goes to Investors until they have recovered 100% of their investment capital
• 50% of distributable cash flow goes to Investors until they have received an additional amount equal to one half of their investment
Thereafter 10% of distributable cash flow goes to Investors
Management is comfortable to work with a lower front end return and for a higher incentive return on the backend in order to ensure that the Investors have first received their investment back together with an attractive return.
Exit Strategy
Copyright © Auto Adventures LLC., 2010. All rights reserved.
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Massive Untapped Market (2nd largest media market in the United States) ability to create dominant presence in this market & one of the largest markets in the US for tourism.
Immediate Growth Opportunities
Proven Management & Operationally Complete (Biz in a Box)
Scalable Expansion Strategy
NASCAR is Everywhere - This drives consumers to Project Speedways
Only LA based company providing a top NASCAR experience
Marketing Partnership with NASCAR & Auto Club Speedway in Southern California Market
Attractive Financial Returns
Why Invest
?W
hy Invest
?Why Invest?
You’ll always miss 100% of the shots you don’t take.
Copyright © Auto Adventures LLC., 2010. All rights reserved.
Tremendous long term profit potential exists at this moment due to significant changes in the economy and several key shifts within the power structure of NASCAR’s hierarchy and elite teams that are time sensitive.
We as veteran businessmen of the motorsports / entertainment industry are excited and motivated by these changes and invite you to become a partner in this highly lucrative and exciting business.
We have the opportunity to become the number one player in this category here in California, we are in the right place at the right time.
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The Ultimate Driving Adventure
Be a Partner
Copyright © Auto Adventures LLC., 2010. All rights reserved.
Mission Statement: We are committed to take our guests to a vast new world of unparalleled driving excitement. In each guest, we will ignite the passion and fuel the spirit of competition, fun and achievement, creating exhilarating experiences that resonate long after the adrenaline stops.
CONCEPT SUMMARY Creating a New Phenomenon
Motorsports Team
TV Show Fan Driving Experience
PROJECT
SPEEDWAY
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Project Speedway/partner themed commercial campaigns
Cross-promotions
Project Speedway/partner Trackside integration
Fully integrated brand advertising and marketing campaigns
Celebrity appearances & use during on location shooting
The show is used to establish, develop and strengthen the personalities and brands. Leveraged to generate goodwill and positive PR world-wide creating overwhelming popularity & sale’s.
Heading to the Front
Live trackside filming with high profile guest-stars
Fully integrated brand advertising and marketing campaigns
Copyright © Kenton Gray Inc., 2010. All rights reserved.
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Leverage existing NASCAR media and main stream mass media
Internet hub and extensive viral and interactive marketing
THE FUTURE OF PROJECT SPEEDWAY?
The Project Speedway TV brand bridges the extreme and exciting technology of all things speed and entertainment with great characters and those whose passion and life revolve around all things fast.
The opportunity to export this franchise to foreign markets is very real in that Europe, South America and Australia all have big motorsports and extreme sports fan bases.
NASCAR is currently running in both Mexico and Canada and is expanding their presence in both countries. Foreign drivers are also coming to compete in NASCAR from the IRL, Champ Car and Formula One bringing their fans with them.
This all adds up to a world-wide audience.
ADDITIONAL FRANCHISE POSSIBILITIES!
Project Speedway – DirtProject Speedway – H2OProject Speedway – Formula OneProject Speedway – Indy
Project Speedway - Europe
Copyright © Kenton Gray Inc.. 2010. All rights reserved.
Project Speedway LaunchA time sensitive program.
Project Speedway’s rich opportunity only exist with its ability to plug into the existing structure, timelines and schedule of NASCAR, broadcasts networks and corporate America’s marketing and sponsorship financial budgeting.
We have to concurrently align our development and production of Project Speedway with the pre-existing schedule.
We have the opportunity to show up and be the center of attention.
To roll this out and meet the 2011 target we have only one opportunity when NASCAR and Hollywood come together this year. That is the weekend of October 8-10th at the Auto Club Speedway in Fontana CA.
And since the whole Project Speedway concept surrounds NASCAR meets Hollywood this is only one date this year that this is possible.
PLANHave a NASCAR Hollywood rollout and a New York/ Wall Street Roll out. Both of these need to be huge media days.
Hollywood rollout would be a big star studded event at the Staples Center and press conference at Auto Club Speedway with all of the main players the day of the big race. Followed up by a media tour. Fan experience cars already put together and onsite to deliver rides to all of our VIP guests.
Then we go to New York and do a Sean Combs Wall Street roll out with our race cars parked with Sean’s Bentley all dressed to the nines and have a big party with financial big wigs in New York followed up with a media tour in New York.
This rolls in to the road to Daytona coverage for Boris and I and B-roll for Project Speedway TV show. To get all of these pieces together is going to take tight coordination but is completely possible so lets make it happen and everyone will win.
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Motorsports Team - $50 million
TV Show - $4.5 million*
Fan Driving Experience - $5 million
*Includes: deficit financing for 11 one hour episodes, pilot & development
California Market Development
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In Sports we must learn to rise to the occasion and grow, as well such is life. Thus is our foundation of this proposal. We hope that at the least we inspired you to find one’s self for chance, risk and reward. The moment of focused winning is upon us. Be not a spectator, be a driver……
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Julia HayeProject Speedway 1900 Avenue of the Stars Los Angeles, CA 90067
Be a Partner.
The marketing overview is for informational purposes only. The information contained in this overview is privileged and confidential and protected from disclosure or reproducing in any manner. If the reader of this overview is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. All prices, data and other information are the property of Project Speedways, LLC. The disclosure policy will be strictly enforced.
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Representation
www.ProjectSpeedway.com
Aaron Sky3943 Irvine Blvd. #32 Irvine, CA 92602310.344.8809 M
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BRAND REVIEW
NASCAR Brand Review Table of Contents:NASCAR Brand Review Table of Contents:• NASCAR - A Sport Like No Other
• NASCAR Racing Series and Drivers
• The NASCAR Fan Base
• The NASCAR Brand
• Fans and Sponsorship
• NASCAR and Entertainment
• International Expansion
• Diversity and Charitable Efforts
• Marketing and Growth Priorities
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NASCAR - A SPORT LIKE NO OTHER
NASCAR - A Sport Like NASCAR - A Sport Like No OtherNo Other
75 MILLION FANSOne in three U.S. adults are NASCAR fans
NUMBER-TWO REGULAR SEASON SPORT ON TELEVISIONBroadcast in over 150 countries in more than 30 languages
EVENTS ACROSS NORTH AMERICA1,500 events at over 100 tracks in 35 U.S. states, Canada and Mexico
NUMBER-ONE SPECTATOR SPORT17 of the top 20 most attended sporting events in the U.S. are NASCAR events
A 10-MONTH SEASONNASCAR has a year-round sales cycle, with events during every month of the year
BILLIONS IN LICENSED SALESOver $2 billion in licensed product sales, a top performer among major sports
MOST BRAND LOYAL FANS IN ALL OF SPORTSNASCAR fans are three-times as likely to try and purchase NASCAR-related sponsors’ products and services
CORPORATE PARTNERSHIPSMore Fortune 500 companies rely on NASCAR to build their brands than any other sport
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Not just a sport…It’s a lifestyleNot just a sport…It’s a lifestyle
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Results reflect most recently completed regular seasons: NFL (2005), NNCS (2005), NCAA Football (2005), PGA (2005), MLB (2005), NBS (2005), NBA (2005-2006), NCAA Basketball (2005-2006), and NHL (2005-2006). Source: Nielsen Media Research
NASCAR is the #2 Regular-Season Sport on TV
10.1
3.72.7 2.6
2.21.7 1.0
2.5
5.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
NFL NNCS fball PGA MLB nbs nb bball NHL
2005 AVERAGE NETWORK RATINGS Most Recently Completed Regular
Season
Recent NASCAR InnovationsRecent NASCAR Innovations
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• Chase for the NASCAR SPRINT Cup
• Geographical realignment of events
• NASCAR research and development center
• Competition-based properties marketing calendar
• Grassroots marketing initiatives in New York and Los Angeles
• Significant marketing and PR communications efforts
• Increased commitment to diversity
• International expansion including Canada and Mexico
• Introduction of the NASCAR Hall of Fame
• Opened dedicated retail office in Bentonville, AR
• New entertainment properties and partnerships
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NASCAR RACING SERIES and NASCAR DRIVERS
NASCAR’s Strong National PresenceNASCAR’s Strong National Presence
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NASCAR national series tracks and top 20 NASCAR television markets
NASCAR Drivers Come From Every RegionNASCAR Drivers Come From Every Region
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NASCAR drivers come from over 20 different states
North Carolina (6) is home to the most NASCAR drivers followed by California, Missouri, and Indiana (5) and Wisconsin and Virginia (4)
NASCAR SPRINT Cup Series Driver HometownsNASCAR SPRINT Cup Series Driver Hometowns
NASCAR Drivers are Pop Culture IconsNASCAR Drivers are Pop Culture Icons
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NASCAR drivers rank #2 behind PGA players as the best role models among athletes according to a study published in BrandWeek.^
The stars of NASCAR continue to permeate mainstream culture, including appearances on shows such as:
^BrandWeek, Jan. 2005
1. Tiger Woods2. Brett Favre3. Shaquille O’Neal4. Dale Earnhardt, Jr.5. Lance Armstrong6. Peyton Manning7. Derek Jeter8. Jeff Gordon9. Michael Vick10. Tom Brady
Source: ESPN Sports Poll (18+) 2005
According to the ESPN Sports Poll, NASCAR drivers are among the top 10 favorite active athletes in the U.S.
With the exception of the NFL, no other sport has more athletes in the top 10 than NASCAR
NASCAR and INTERNATIONAL NASCAR and INTERNATIONAL EXPANSIONEXPANSION
A World of OpportunityA World of Opportunity
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NASCAR International ExpansionNASCAR International Expansion
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• NASCAR has identified international development and growth outside the U.S. as an important long-term strategic initiative for the industry.
• In a short period, NASCAR has expanded its reach and is now broadcast in over 150 countries and more than 30 languages.
• Fueled by a global passion for motorsports, NASCAR’s worldwide presence is growing and is solidifying its position as the #1 motorsports property in North America.
• Expansion into Canada and Mexico represents the first stage of international development. New strategic partnerships in these markets are providing incremental growth opportunities for the industry.
NASCAR CanadaNASCAR Canada
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Partnership with TSN and Bell Globe Media - Canada’s leading media company and #1 sports brand.
Dedicated office and staff in Toronto.
The Canadian market expands the reach of NASCAR to an additional 30 million people – 80% living within 200 miles of the U.S. border.
Partnership with CIE and OCESA - the leading live entertainment company in Latin America.
Dedicated office and staff in Mexico City.
In addition to expanding the reach of NASCAR in Mexico (100 million people), NASCAR Mexico will have a significant impact on NASCAR’s domestic business with Hispanics representing the fastest growing segment of the U.S. population.
NASCAR Mexico
Racing Development Sponsorship Licensing Automotive Aftermarket National marketing and
communications initiatives
NASCAR Canada & Mexico focus on the development of the NASCAR brand with new business growth in the following areas:
Source: NASCAR.COMMillions
Monthly Page Views Outside the U.S.
0.0
5.0
10.0
15.0
20.0
1 2 32003 2004
13.013.0 14.214.2
2005
17.317.3
+33%
Canadian NASCAR Canadian NASCAR FansFans
Canadian NASCAR fans:
• Gender 63% Male / 37% Female
• 56% are 18-44 years old (112 index vs. pop)
• 50% earn $50,000 or more (100 index vs. pop)
• 41% with kids under 18 (105 index vs. pop)
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There are nearly 6 million NASCAR fans in Canada (1 out of 4 Canadian adults is a fan of NASCAR)
Canadian NASCAR fans are younger than the Canadian population, just as likely to be middle class, and more likely to have children.
Source: Ipsos Insight, NASCAR Canada Brand Tracker, 2004Index = Canadian NASCAR fans vs. Canadian Population
NASCAR is the #1 motorsport on Canadian TV
2005 AVERAGE VIEWERS (000) per event on TSN
151111
305
770
100
200
300
400
Source: TSN / Results reflect the following completed seasons on TSN: NNCS (2005), Formula 1 (2005), IRL (2005), and Champ Car (2005).
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THE FAN BASE – OUR CUSTOMERSTHE FAN BASE – OUR CUSTOMERS
The NASCAR Fan The NASCAR Fan BaseBase
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75 million NASCAR fans, equal to 1/3 of the total U.S. population.
1/3 have attended at least one NASCAR race
3/4 agree that NASCAR has become more exciting
2/3 agree that they are becoming more interested in NASCAR racing
Source: Ipsos Insight, NASCAR Brand Tracker 2005
Source: ESPN Sports Poll (18+) 2004
Female fans are 3X as likely as female non-fans to try and purchases sponsors products and services
What is Bringing New Fans to NASCAR?What is Bringing New Fans to NASCAR?
Mainstreaming of the sport - NASCAR is everywhereMainstreaming of the sport - NASCAR is everywhere• Major network broadcast partners - “It’s on TV more”
• More NASCAR news coverage in the general marketplace
• NASCAR drivers in everyday routine programming
• New mainstream sponsors
• NASCAR-themed sponsors’ national advertising (interesting & humorous + inclusion of drivers)
Enhancement, innovation and technology of NASCAR on televisionEnhancement, innovation and technology of NASCAR on television• New fans are intrigued by:
– In-car cameras and microphones
– Education about the sport
– Pit stop coverage
– New interesting/informative graphics
NASCAR drivers and integration of pop cultureNASCAR drivers and integration of pop culture• “The celebrity status of NASCAR”
• NASCAR drivers are being recognized as national celebrities
• Coverage of pop culture celebrities who are fans
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Recent NASCAR innovations have resulted in increased interest, thereby bringing in new fans as a result of:
Source: Healy/Wilcox Marketing Group, New Fan Qualitative Research, Fall 2005 (Atlanta & Minneapolis)
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THE NASCAR BRAND
The NASCAR Brand Owns Powerful The NASCAR Brand Owns Powerful EquitiesEquities
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Functional EquitiesFunctional Equities All Teams in All Events
Drivers
Edge of Seat Action
Intense Competition
Non-stop Action
Performance
Power
Skillful Competitor
Speed
Sponsors
“Stock” Cars
Teamwork
Thrilling and Exciting
Uniquely American
Emotional EquitiesEmotional Equities Aggressive
Ambitious
Applicable/Relatable
Athletes I Admire
Athletes that are Regular People
Down to Earth
Fun
Genuine
Heritage
Honorable
Like a Big Family
Open to All
Straight Up
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NASCAR is the only sports brand that thrills fans and creates a powerful connection through traditional values they admire.
A Strong Bond Between NASCAR and Fans
Sense ofSense ofBelongingBelonging
Thrilling & Exciting Thrilling & Exciting EntertainmentEntertainment
Regular PeopleRegular People HonorableHonorable Down to EarthDown to Earth GenuineGenuine Straight Up/HonestStraight Up/Honest Like a Big FamilyLike a Big Family
Speed & PowerSpeed & Power Edge of Seat ActionEdge of Seat Action Skillful CompetitionSkillful Competition Intense CompetitionIntense Competition Play Never StopsPlay Never Stops Daring/CourageousDaring/Courageous
UnduplicatedUnduplicatedSportSport
SharedSharedValuesValues
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The Power of the NASCAR MarkNASCAR fans expect quality and value from NASCAR-related products, and most are willing to pay a premium.
Source: Ipsos Insight, NASCAR Licensing Study 2000
“When I see the NASCAR logo on something, I know it will be a quality product”
“NASCAR-related products are always a good value for the money”
“If I see the NASCAR logo on something, I am much more likely to buy it than I am to buy a similar product that is not NASCAR-related”
“I don’t mind paying more for a NASCAR product”
% of NASCAR Fans Who Agree:
NASCAR FANS and SPONSORSHIPNASCAR FANS and SPONSORSHIP
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NASCAR Fans Embrace Sponsorship
Source: Ipsos Insight, NASCAR Brand Tracker
Percentage of NASCAR fans who agree
“NASCAR drivers could not run their cars without sponsors’ support”
“NASCAR is the kind of sport that needs corporate sponsorship”
“I know which companies sponsor NASCAR and its drivers”
NASCAR fans are NASCAR fans are three-timesthree-times as likely to try and purchase NASCAR as likely to try and purchase NASCAR sponsors’ products and services*sponsors’ products and services*
* vs. non-NASCAR fans
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NASCAR Fans Understand Sponsorship
A recent James Madison University study shows unparalleled fan awareness of NASCAR-related sponsors:
More than 1/3 of NASCAR fans can identify top-30 driver sponsors (unaided)
93% of fans say corporate sponsors are “very important” to NASCAR
83% of fans “like” corporate sponsorship of NASCAR
Fans say they are contributing to the sport when buying NASCAR sponsors’ product
““NASCAR sponsorship is the best buy in marketing. NASCAR sponsorship is the best buy in marketing. The combination of awareness, favorability, and effectiveness The combination of awareness, favorability, and effectiveness
is unparalleled in the sports world or anywhere else.”is unparalleled in the sports world or anywhere else.”
- Larry DeGaris, James Madison University
NASCAR Impacts Consumer Purchase NASCAR Impacts Consumer Purchase BehaviorBehavior
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According to Best Western, it’s NASCAR Sponsorship has generated more attention than any other brand-wide initiative in company history.
Domino’s Exec VP/Marketing Ken Calwell said that the company has become the “top brand preferred by NASCAR fans,” who are “six times more likely to order pizza from Domino’s because of its NASCAR affiliation.”
Wilson's Leather chief executive Michael Searles credits NASCAR with a huge share of the company's 13 percent first-quarter sales growth. Less than 5 percent of the store’s inventory is NASCAR-branded, said Searles. But those products, ranging from leather jackets autographed by drivers to women’s handbags, account for around 20 percent of sales.
"We did a survey and found out that if we sponsored NASCAR, 44 percent of the people shopping at our competitors said they'd switch [to Office Depot,]" said Tony Ueber, Office Depot Vice President of Marketing.
According to Checkers/Rally’s, the NASCAR Combo Meal is the chain’s #1 or #2 selling combo item in all Checkers/Rally’s restaurant locations.
Case study examples:
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Fortune 500 Firms and NASCAR
1 Wal-Mart2 ExxonMobil3 General Motors4 Ford Motor Co.5 General Electric6 Chevron Texaco8 Citigroup
12 Berkshire Hathaway13 Home Depot17 Altria Group18 Bank of America21 Kroger24 Pfizer 26 Procter & Gamble27 Target28 Dell30 Johnson & Johnson31 Marathon Oil32 Time Warner33 SBC Com.35 Albertson's41 Microsoft42 UPS 43 Lowe's45 Sears Roebuck49 Motorola51 Allstate
125 Wyeth134 Emerson Electric135 Kimberly-Clark138 Delta Air Lines139 Anheuser-Busch153 Eastman Kodak156 Office Depot157 Nextel168 Waste Management171 MBNA182 Winn-Dixie Stores197 General Mills201 Dana215 Gillette Company234 Kellogg236 PPG Industries249 Yum Brands252 Ashland259 H.J. Heinz265 Alltel266 EMC267 MeadWestvaco273 SunTrust Banks278 Avon Products280 Dollar General283 Gannett300 KB Home
301 Fortune Brands304 Newell Rubbermaid307 Yellow Roadway308 ITT Industries326 Federal-Mogul331 Sherwin-Williams334 VF350 AutoZone359 Black & Decker373 Family Dollar Stores377 Brunswick383 Mattel387 AMD390 Charter Comm.396 Harrah's399 Radio Shack410 Maytag429 Rockwell Automation430 Timken433 USG436 Hershey Foods445 Clorox447 Molson Coors455 Ecolab464 Levi Strauss487 Advance Auto Parts493 Stater Bros. Holdings
52 Wells Fargo54 Walt Disney
57 Caterpillar61 PepsiCo63 Delphi66 DuPont69 Viacom72 Tyson Foods75 Honeywell Int'l77 Best Buy78 FedEx82 Sunoco89 Weyerhaeuser92 Coca-Cola95 EDS98 News Corp.99 Nationwide
102 Comcast105 3M106 Deere107 Cendant109 Georgia-Pacific115 General Dynamics116 McDonald's118 Visteon120 Goodyear121 ConAgra Foods
Source: Fortune Magazine, 2005 Fortune 500 List
More Fortune 500 firms rely on NASCAR to build their brands than any other sport.
What Sponsors are Saying About What Sponsors are Saying About NASCARNASCAR
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50% of sports industry executives in 2005 indicate NASCAR is a 50% of sports industry executives in 2005 indicate NASCAR is a ““rising star with still more growth potentialrising star with still more growth potential,” up +100% vs. 2003.,” up +100% vs. 2003.
“It’s a national sport that’s growing and the demographics make it very attractive. They index very well— on income, on occupation, on gender mix, on diversity. We think there’s really an opportunity for us to grow with NASCAR over the following years.”Chuck RubinPresident
“We’re most impressed with the number of opportunities to activate, across our customer base, both internal and external. It’s afforded us an opportunity, this brand alignment, to message directly to our customers in a way that we may not have been able to without bringing the two brands together as one.”Patrick GuilbertVice PresidentSponsorship & Events
“As the leading brand by over a two-to-one margin, we only align ourselves with leading properties. We wanted to align with NASCAR because, clearly, they're the #1 motorsport out there and the #1 fan base there is. And if you can tap into that fan loyalty, that passion, and connect with them in a relevant, differentiated manner, you can really grow your business. That’s what NASCAR does for us.”Michael LynchSenior Vice PresidentEvent & Sponsorship Marketing
“At the very beginning, this was a way for us to connect with our customers. That’s the most important thing for DuPont, and I think NASCAR gives us the opportunity to do that—we entertain about 25,000 customers every year at NASCAR events.”Edward DonnellyGroup Vice President
Source: Turnkey Sports
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NASCAR and ENTERTAINMENTNASCAR and ENTERTAINMENT
NASCAR is Everywhere You LookNASCAR is Everywhere You Look
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The celebrity status of NASCAR: The stars of NASCAR, combined with celebrities, continue to permeate the mainstream culture.
• Pamela Anderson• Quentin Tarantino
• Sheryl Crow
• Toni Braxton
• The Wayans Brothers
• Will Ferrell
• Whoopie Goldberg
• Vanessa Williams
Pop culture Pop culture celebritiescelebrities and and musiciansmusicians love NASCAR love NASCAR
• 3 Doors Down• Adam Sandler• Arnold Schwarzenegger• Ashton Kutcher• Ben Affleck• Black Eyed Peas• Bon Jovi• Britney Spears • Carmen Electra
• David Spade• Fantasia• George Lopez• Hillary Duff• James Caan• Jay Leno• Jessica Simpson• Jewel• John Travolta
• JoJo• Gavin DeGraw• LeAnn Rimes• Lebron James• Lenny Kravitz• Lindsay Lohan• Lisa Marie Presley • Matthew McConaughey• Nickelback
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COMMITMENT TO DIVERSITY
NASCAR and its Commitment to DiversityNASCAR and its Commitment to Diversity
““NASCAR is committed to making our sport, on and off the NASCAR is committed to making our sport, on and off the racetrack, look more like America. For NASCAR to continue to racetrack, look more like America. For NASCAR to continue to
succeed and to grow, no other issue is more important.”succeed and to grow, no other issue is more important.”
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Diversity ProgramsDiversity Programs::• Drive for Diversity Program
• Current and future NASCAR drivers
• NASCAR Mexico
• NASCAR Diversity Internship Program
• NASCAR College Tour presented by Coca-Cola
• Supplier Diversity Program
• Minority Scholarships
• National Jobs Program
• Support of Urban Youth Racing School
• Partnership with NASCAR Technical Institute
One in five NASCAR fans are minorities
Source: Scarborough USA+ 2001, 2004
- Brian France – NASCAR, Chairman and CEO
Diversity focus areasDiversity focus areas: :
1. ON TRACK 2. OFF TRACK 3. CONSUMER MARKETING PROGRAMS1. ON TRACK 2. OFF TRACK 3. CONSUMER MARKETING PROGRAMS
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NASCAR MARKETING and GROWTH PRIORITIES
NASCAR Growth PrioritiesNASCAR Growth Priorities
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• Product Investment - Safety, Cost Control and Competitive Racing
• Strong TV and new media partnerships
• Geographical realignment of races
• Commitment to Diversity
• Evolve the NASCAR Nationwide Series and North American expansion
• Regional Racing Series
• Public Relations
• Entertainment Marketing
• Consumer Marketing
• NASCAR Hall of Fame
Copyright © Project Speedways LLC., 2010. All rights reserved.
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#1 Spectator Sport
# 2 rated regular-season sport on television
75 Million fans
Over $2 billion in annual licensed sales
More Fortune 500 companies than any other sport
Not just a sport…It’s a lifestyleNot just a sport…It’s a lifestyle