Coke, Kellogg’s and Masterfoods Form NASCAR Alliance
For Coca-Cola, Kellogg’s and Masterfoods USA, those NASCAR sponsorships are all about moving product off of retailers’ shelves.
The trio of megabrands joined forces to engineer a seven-month program at Wal-Mart stores nationwide, using their deals with the stock car association as the hook. Coke (promoting Coca-Cola Classic), Kellogg’s (two cereal and two cracker SKUs, plus Pop-Tarts) and Masterfoods (M&Ms and Pedigree dog food), generated measurable sales by requiring Wal-Mart to purchase incremental inventory and merchandising in exchange for the in-store endeavor.
“It was a perfect collaboration,” says Ismail Baki, senior co-marketing manager at Masterfoods. “Wal-Mart talks about wanting to enhance the shopping experience, customers tell us they want to enjoy their trip to Wal-Mart, and NASCAR was just the right sponsorship to leverage at the store level.”
The brands recognized that NASCAR would have more draw in certain markets, so Pierce Promotions & Event Management crafted a three-tiered structure for merchandising and in-store entertainment. Stores in Nextel Cup race markets got the full-court press during the week leading up to the race: in-store programming capped by a major parking lot event on a 100-foot-by-70-foot space. All three brands’ mobile trailers pulled in, each offering a mix of NASCAR-related activities and giveaways.
Presence was scaled down for key stores within 75 miles of a race—the brands offered in-store retailtainment only, with NASCAR trivia or a NASCAR match game letting shoppers earn race-themed and branded prizes. All other Wal-Marts received a multi-product merchandising kit for self-service.
Baki says Masterfoods saw double-digit sales increases in featured products during the events. The campaign encompassed 98 full-scale events, generating 335,000 at-store impressions and touching more than 25,000 shoppers. The 389 mid-level executions accounted for more than 40,000 interactions, giving away more than 30,000 premium items.
Wal-Mart and the three brands reupped for 2005. Floor it.