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CROWN ROYAL URBAN NASCAR PLAN:
EFFECTIVELY REACHING AFRICAN AMERICANS
PURPOSE

This deck outlines Crown Royal’s recommendation for
  how to incorporate the African American
  demographic into NASCAR
AGENDA
–  Crown Royal African American (AA) Marketing Strategy
–  Strategy Implementation
–  NASCAR Recommendation
CROWN ROYAL
URBAN MARKETING OVERVIEW
BRAND BACKGROUD
Assignment:
•  In 2002, Crown Royal enlisted help of African American
   advertising agency Carol H. Williams in San Francisco to
   develop and implement a marketing strategy targeting the
   21-29 year old African American consumer
•  Grey had been handling the general market advertising for
   many years
•  Worked as Account Planner to develop the consumer profile
   and marketing strategy

Research and Information Gathering:
•  Four rounds of African American focus groups across 12
   African American markets for consumer profiling and
   creative development
MARKETING OBJECTIVE/PRINCIPLES
Objective
•  To change the image and opinion for the Crown Royal brand
   among young African American consumers
•  To build awareness, familiarity, and consideration
•  Leverage social, trend diffusion from metropolitan cities into the
   broader pan-ethnic urban market, then smaller cities, suburban,
   and rural consumers


Principles
•  Do not become a fad or short-term trend. Create timeless equity
    and sustainable business
•  Invest to grow volume and share, profitably
4 A’S
Grow Crown Royal brand commitment among AA males
                                              It doesn’t matter what
                                                I drink when I’m out
                                               with friends at a club
                                 Availables
        I know about Crown
        Royal but I think it’s
       old school . . . My dad
              drinks it
                                 Acceptors
                                                       I was on the VIP list at
                                                       this party. All the cool
                                                        people were drinking
                                                         Crown Royal. Now,
                                 Adopters             when I go out out and I
                                                      want to impress, I know
                                                       to order Crown Royal.
    Crown Royal is my brand.
     I feel proud when I order
     CR, it’s a premium drink    Adorers
     that makes me feel good
    and look successful when
          I’m out clubbing
STRATEGY
        Urban Market
       Urban Consumer

(based upon consumer research)
THE URBAN MARKET

Born out of inner city culture, urban marketing is
  about a cool, current, hot attitude

•    It’s a mindset
•    It is defined by attitudes, beliefs and lifestyle
•    It is not limited by geographic boundaries, age, or ethnicities
•    It is all inclusive, not exclusive
•    It is fluid and constantly evolving
•    It has a rhythm to it
THE STUDY OF TRENDS
                                         African American experiences are connected in common
                                        history, values and beliefs that persist and evolve over time

African Americans re-
                                                      Reclamation and Evolution
invent themselves by                                                                         AA                                             At the core of urban
                                                        to a New Experience
putting a new spin or                                                                    Experiences                                       inspired mass trends
                                                       Reinforced by the Cycle
interpretation on the                                                                                                                       are experiences that
trend, resulting in a                                                                                                                            are grounded in
new experience                                                                                                                                  everyday African
                                                                                                                                               American culture
                                  Creation of an
                                                                                                                   AA Culture
                                American Experience



Adoption of key
trends in music,                                            Trendology as it                                                              Credibility comes from
fashion and lifestyle
become “mass                                                   relates to                                                             understanding how culture
                                                                                                                                       and lifestyle are important
market” that belong
to everyone                  Re-interpretation                  African                                                 AA Trends
                                                                                                                                      to African Americans = it’s
                                                                                                                                          how cultural icons and
                        of AA Experience by Others
                                                              Americans                                                                     trendsetters are born



 Trendsetters or icons
 become expressions or                                                                                                                   These cultural cues are
 representations of these                                                                                                            expressed through lifestyle,
                                              Adoption by                                              Migration
 important cultural cues,                                                                                                                 such as food, fashion,
                                              Mass Market                                              of Trends
 who then have the ability to                                                                                                        language, and dance which
 influence larger, mass                                                                                                             gain wider exposure through
                                                                             Exposure
 audiences that adopt some                                                                                                                          trendsetters
                                                                             to Others
 of these lifestyle cues
WITHIN URBAN, SUBSEGMENTING AA
There are three segments to the African American Urban Market



 Street                  Mosquito                   Blender




•  New tends and lifestyle cues tend to be passed along from Street to
Mosquito to Blender

•  He can be found associating with Street, and will pass on trends to the
Blender
WHAT WE KNOW ABOUT HIM
•  What he says and does influences a much broader population
•  He’s male between the ages of 21-29, educated
•  Has confidence and others look up to him
•  Wants to demonstrate his success without compromising his self-respect
•  Has ethnic diversity in circle of friends and is open to dating, socializing,
   outside his race
•  Goes to multi-ethnic clubs and listens to Hip Hop and R&B music
•  Is always in the know of the new trend, club, Hip Hop artist
•  Is spontaneous and does not live life by the rules
KING OF MY WORLD
•  Elements important to the Mosquito are also
   elements of Crown Royal’s brand personality:
      •  Hip
      •  Cool
      •  VIP
      •  Class
      •  Cleverness
      •  Approachable

•  The success of Crown Royal’s communication with
   the target consumer depends on weaving these
   elements throughout all media
ADVERTISING
        Print
       Radio
Out Of Home (OOH)
OUR CONSUMER PROFILES
                General Market
                             African American & Urban 
    Target 
Consumer:
 Consumer
 CRAIG: 21-49                            CARL: 21-34
   Insight: - Males living in middle/lower         -  Urban males living in major US cites
               class suburban neighborhoods
                           .                       -  Carl is determined to succeed and be respected
               and rural towns                     -  Carl looks for ways to save money so he can buy the things
               - Work in blue collar/trade         he really wants, like the new line of Phat Farm clothing or the
               certified occupations               special edition he just read about in Complex
                                                   -  Carl demonstrates respect and acknowledgment for AA
                                                   culture, utilizing it as a basis for his uniqueness and
                                                   individuality.


     Brand
 In a world where overt statements      With the ongoing pressure to do better than what
                                                   society expects of him, the consumer wants to
    Insight:
 of success and status are
               intimidating and pretentious, the   demonstrate his success without compromising his
               target desires comfortable          self-respect.
               expressions of his success.




           2
GENERAL MARKET PRINT
USING EQUITIES AND CLEVER MESSAGING
AREA CODES CAMPAIGN
LOCAL MARKET OUT OF HOME
4 A’S
Grow Crown Royal brand commitment among AA males
                                              It doesn’t matter what
                                                I drink when I’m out
                                               with friends at a club
                                 Availables
        I know about Crown
        Royal but I think it’s
       old school . . . My dad
              drinks it
                                 Acceptors
                                                       I was on the VIP list at
                                                       this party. All the cool
                                                        people were drinking
                                                         Crown Royal. Now,
                                 Adopters             when I go out out and I
                                                      want to impress, I know
                                                       to order Crown Royal.
    Crown Royal is my brand.
     I feel proud when I order
     CR, it’s a premium drink    Adorers
     that makes me feel good
    and look successful when
          I’m out clubbing
EVENTS & ONLINE
To deepen the connection between the brand and urban
             consumers via VIP activities
OVERVIEW
•  2002-2003 Crown Royal African American national research
   and advertising launch

•  2004-2005 Crown Royal Event and Online Initiatives
URBAN EVENT STRATEGY
Communicate sophistication and style, making the consumer
   experience “King of Your World” through all aspects of the
   experience:
    –  Signature look and feel to reinforce the experience
•  Creates a young and stylish image of the brand that makes calling
   for Crown Royal at a bar or club acceptable
•  Events are unique and eclectic where cosmopolitan people with
   experience and broad-thinking connect and share lifestyles,
   interests, and desires with one another
•  Establishes Crown Royal as cool -- we engage with him in a way
   that’s different from others, but familiar and respected
URBAN EVENT/ONLINE STRATEGY
•  Keep Crown at the center of what’s hot
•  Host unique, VIP events at locations relevant to the urban target
•  Develop comprehensive online database of key influencers,
   trendsetters and followers of Crown Royal for year-round re-contact
•  Maximize resources across all channels: media, PR, online and post-
   event advertising
•  Cultivate relationships at the grassroots with “ears” in all markets
   that keep us abreast of rapidly changing trends
HOW WE DO IT
•  We respect the consumer, where he is, right now
•  We take our product and brand to him, we don’t expect him to
   come to us just because we make the offer
•  We don’t pay for celebrity endorsers – we organically cultivate a
   following of trendsetters through respect and invitation based on
   core cultural values and beliefs
•  We win his trust and respect so that later, he will come to us
•  Our strength is in understanding trend evolution and a strategic
   approach to creating world-class consumer experiences
CREATING CONNECTION MOMENTS
•  Crown Royal has a thorough understanding of the unifying
   psychographics that connect people to one another and to the
   brand
•  CR meets people where they are and transforms everyday
   experiences into something extraordinary
•  CR translates this into memorable experiences that shift the way
   guests see a brand
•  Leave them feeling stronger about the brand than before
HOW CONNECTION MOMENTS OCCUR
                    Everyday Consumer Life Experience




                               He Gets a
                                Hair Cut


                     Crown Royal      He Samples
                     Barbershop       Crown Royal
                                                        Creates a Connection Moment
  Strategic Brand
                                                              that Supports His
 Event Experience
                                                            Everyday Experience




     EXAMPLE: CROWN ROYAL BARBERSHOP
CROWN ROYAL BARBERSHOPS
•  Promotes connection moments essential to the African
   American male experience – we’ve been invited into
   the “living room”
•  Leverages niche media and local relationships to
   cultivate brand ambassadors for Crown Royal
•  Breaks away from the cluttered environment of
   promotions
•  We can do it because we’ve been invited and
   embraced
BARBERSHOP ELEMENTS
•    Local barber shops are given a makeover with lasting impact within the shop and
     the community
•    CR provides branded smocks, capes, mirrors, and promotional items for customers
     and barbers in the CR Barbershop
•    Exclusive events with media partners to enhance coverage in local media for
     Crown Royal

•    Online:
      –  CR Barbershop site for free cut and/or invitation to special events building a
          database of urban consumers for future promotions
      –  Career database/Networking
P-DIDDY’S BAD BOYS of COMEDY
•  Crown Royal is sponsor of P-Diddy’s new TV
   show debuting up and coming comedians
•  Hosted by P. Diddy, MC’d by Doug E. Fresh
   and DJ’d by Mr. Cee
•  “Making of” video filmed simultaneously with
   extensive Crown Royal product placement
•  Debut shows held large theatres and venues
   with audiences of up to 5,000
•  Backstage “Crown Royal Lounges” host VIPs
•  After-parties held at the hottest clubs
   featuring talent
•  Broadcasted on HBO and on CR Barbershop
   sites
RESULTS
•  Huge peaks in product sales in cities after each barbershop
   program
•  Demonstrated the power of WOM
•  Product sales at AA clubs peaked
•  High attendance at upcoming CR sponsored events
•  High activity on barbershop sites
•  HBO made show about Barbershops
•  Sold out Bad Boys of Comedy shows
•  After local national plan completed incorporate initiative into
   high profile events: ESPY’S, BET Awards
•  Organically built celebrity interest
NASCAR URBAN COMMUNICATION
  Why Crown Royal Has Credibility
     The Urban NASCAR Plan
OVERVIEW
•  Crown Royal is a major sponsor of NASCAR-Crown Royal 97
   Car
•  Crown Royal is in the unique position of bringing AA’s to
   NASCAR because of the established relationship between
   the brand and the consumer
•  Presented following ideas to NASCAR in 2005. Ideas based on
   consumer and market insight learned throughout the three
   years of consumer research, creative development, event
   and online activity
NASCAR’S SITUATION
•  AA’s account for 4.2% of NASCAR’s 75 million fans
•  Predominantly white, heavily suburban, and rural fan base


OPPORTUNITY:
•  Racist
•  Increasingly diverse population
•  Aging baby boomers
•  Competition for younger fans’ leisure dollars
TREND POTENTIAL
•  The challenge of integrating a Caucasian middle-American
   sport with the Urban culture may not be as difficult today as it
   was five years ago

•  Recently, there are a number of subtle signs that point to a
   shrinking gap between auto-racing/middle-America and
   Urban culture
    –  Clothing trend among New York Urban males LDA-29 who
       have been spotted wearing NASCAR branded clothing
    –  Music Mix: Country & Hip Hop -Tim McGraw and Nelly with
       number one single “Over and Over”
MOSQUITO AND NASCAR
•  He probably hasn’t thought about adding auto-racing to his
   sport interests of primarily b-ball and football. He sees his
   culture’s interest in cars, whether it is in a Snoop video or his
   favorite NBA playa’s pimped out rides on Cribs. However, the
   idea of attending a NASCAR event is so foreign that he
   needs to be informed and convinced that it is worthwhile to
   become involved.
CROWN ROYAL’S CREDIBILITY
Crown Royal can introduce the urban consumer to NASCAR and create
an affinity by building upon and leveraging Crown Royal’s relationship
with the urban consumer




•  Compared to other brands, Crown Royal is in a unique position to
extend this invitation to the urban audience
•  The brand’s communication with the target has created a trust that no
other brand has among current NASCAR sponsors
CREATE NEW CONNECTION MOMENTS

    We can only work the proven
      paradigm we know best:
                         Everyday Consumer Life Experience




                            He Enjoys Car Culture



                  Crown Royal & NASCAR         He Experiences
                     in Relevant Places         Both Brands

                                                             Create a Connection Moment
     Strategic Brand
                                                                   that Supports His
    Event Experience
                                                                Everyday Experience
OUR STRATEGIC APPROACH OVER TIME

                           Cultivate Adoption      Connect through
                              by Making it       Relevant Experiences:
                             Discoverable          Urban Car Culture




    Generate wider interest by the Black                      Cultivate a class of Black
    community in NASCAR experiences                             NASCAR Top Drivers




       Seed Urban Racing in the Right Places:
                                                         Create Signature Urban
               Music, Fashion, Film
                                                 Events that Bring NASCAR to the People



                                  Utilize Network of Celebrities
                                 to Create NASCAR Trendsetters
OUR STRATEGIC APPROACH OVER TIME: short term (year one)




Connect through Relevant Experiences
            Urban Car Culture




                           INITIATIVE:
                 KEY URBAN AUTO SHOWS
URBAN AUTO SHOWS
Trend Insight for AAs:
   At the core of urban inspired mass trends are experiences that
   are grounded in everyday African American culture…

  The car or truck is an extension of the personality and highly
  asprirational to the consumer
     Reflects the personality of the driver
     Tells the world “I’ve made it”
     Accessible status
DUB SUPER SERIES CAR SHOWS
–  Dub Magazine is the leading Urban automotive magazine serving as a
   resource on the most innovative customization trends
–  The Dub Super Series are car shows across the country that display
   cutting edge technologies and trends in car and truck customization
–  The event capitalizes on the Urban culture’s interest in cars and
   recruits a large number of Urban consumers
CARS + MUSIC DRAWS URBAN TARGET
  –  Hip Hop music plays a big role in setting the mood and draws an
     urban crowd to the event
OUR STRATEGIC APPROACH OVER TIME: short term (year one and two)




                    Cultivate a Class of AA
                      NASCAR drivers




                              INITIATIVE:
                       DRIVE FOR DIVERSITY
INITIATIVE: DRIVE FOR DIVERSITY

  –  Program seeks to cultivate minority drivers and crew pit
     members on lower-profile regional racing circuits
  –  Professional drivers and pit members do the training
  –  Crown Royal sponsored driving summer camp
  –  College Tour
  –  CrownRoyal/NASCAR.com membership register
OUR STRATEGIC APPROACH OVER TIME: short term (year one and two)



                   Create Signature Urban Events
                     that Bring NASCAR to the
                               People




                        Signature Events:
                   Crown Royal Body Shop
CROWN ROYAL BODY SHOP


Trend Insight for AAs:
   Credibility comes from understanding how culture and
   lifestyle are important to African Americans = it’s how
   cultural icons and trendsetters are born…

Initiative:
    Offer Body Shop Makeovers and feature best 12 shops
    nationally that can customize/urbanize the ’97 car
OUR STRATEGIC APPROACH OVER TIME: short term (year one and two)



                        Create A Sense of VIP
                           Exclusiveness




                       ONLINE INITIATIVE:
              www.CrownRoyal/NASCAR.com
WWW.CROWNROYAL/NASCAR.COM


Trend Insight for AAs:
   Trendsetters become representations of cultural cues,
   who influence mass audiences

Initiative:
    Create a private network of opinion leaders that have the
    ability to launch trends
   –  Register at Dub Super Series Car Shows, Drive for Diversity program,
      and CR Body Shops
   –  WOM campaign, brand ambassadors
WOM
•  A brand’s message has a stronger impact with word-of-mouth than
   any traditional media

•  Opinion leaders are interested in an alternative and exclusive
   approach of communication and marketing

•  Experimenting of the product in a relevant consumption context is
   the best way to engage over-targeted or savvy consumers
EXCLUSIVITY
•  Private network of opinion leaders and influential/high profile people that
   is built exclusively through referral

•  Members are charismatic, motivated, communicative and strongly
   engaged in their community

•  Each referral is screened online and then personally interviewed at CR/
   NASCAR events

•  Members are committed and highly motivated to launching trends
   through word-of-mouth

•  Members routinely provide valuable feedback
SITE ELEMENTS

BUZZ MARKETING
  - Invitation to exclusive events, involvement in urban
  marketing actions
  - Organization of events and establishing partnerships

VIRAL MARKETING
   - Trends/News - Broadcasting of online information before it
   hits the streets

RELATIONAL MARKETING
  - Creation and management of brand ambassadors’ clubs
  - Recurrent interactions with pools of opinion leaders close
  to the brand
ROI

•  Guaranteed to reach level N+1 with a positive and natural
   word of mouth
•  N+2 is measured and N+3/ N+4 is expected
-  Supporting WOM relays (events and buzz actions, PR, Media
   campaign)
-  Number of members participating in each city : the more
   members participate, the best coefficient the product have
   when reaching N+2 / N+3/N+4 level
OUR STRATEGIC APPROACH OVER TIME: mid-term (year two to four)




                           Seed Urban
                          Racing in the
                          Right Places:
                             Fashion,
                            Music and
                               Film
SEEDING THE PRODUCT IN FILM
Trend Insight for AAs: Cues are expressed in lifestyles,
   food, fashion, language, dance, film, and
   connection moments that gain wider exposure
   through trendsetters




   –  Remake “Greased Lightening” with Dave Chappell, Larry the Cable Guy,
      Mike Epps, etc.
   –  This film is based on the true life story of Wendell Scott, the first black stock
      car racing champion in America
   –  NASCAR product placement in racing relevant movies with urban male
      appeal (e.g. action and comedy)
SEEDING THE PRODUCT IN TV/MUSIC

  –  Driver appearances on “Pimp My Ride” or develop
     performance based “Ride” show
  –  Celebrity Driving School (televised)
  –  NASCAR product placement in videos, celebrity award
     shows, etc.
  –  Authentic integration in music videos
  –  Catch trend of spoken word music
CELEBRITY INVOLVEMENT
Celebrities and Trendsetters look to the streets/community for what’s
  “hot”
      They reflect back to the consumer what he already knows
      They illuminate what’s going on in the community for others to
       see


Initiative:      Focus on integrating urban and African American
   celebrities
    –    Leverage new product launches
    –    Celebrity racing
    –    Feature celebrity car makeover parties
    –    Drive awareness of NASCAR
OUR STRATEGIC APPROACH OVER TIME: long-term (year three to five)




             Make NASCAR Discoverable to
                the Wider Mainstream
                   Black Population
MAKE NASCAR DISCOVERABLE
Trend Insight for AAs:
  African Americans re-invent themselves by putting a new spin
  or interpretation on the trend, resulting in a new experience


KEY OPPORTUNITIES:
   –  The broader black community needs to find NASCAR on their own
   –  Avoid direct marketing NASCAR to African Americans -- allow them to find
      what resonates organically, over time
   –  Embrace controversy
   –  Cultivate a competitive driver that can be followed and championed by
      the community
   –  Make visible those in the pipeline now – use PR to put them in places
      where AAs will find them
FINAL THOUGHTS

•  NASCAR is already working the plan by identifying and
   cultivating a Black star/competitor -- a crucial factor in our
   success
•  To make NASCAR attractive to the urban consumer, all
   connections with racing need to be delicately seeded over
   time
•  It’s not easy, but it’s possible to attract this consumer
•  The payback for integrating the sport is enormous
•  Our recommendation is to to BRING NASCAR TO THE
   CONSUMER!

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Crnascarfinal.5

  • 1. CROWN ROYAL URBAN NASCAR PLAN: EFFECTIVELY REACHING AFRICAN AMERICANS
  • 2. PURPOSE This deck outlines Crown Royal’s recommendation for how to incorporate the African American demographic into NASCAR
  • 3. AGENDA –  Crown Royal African American (AA) Marketing Strategy –  Strategy Implementation –  NASCAR Recommendation
  • 5. BRAND BACKGROUD Assignment: •  In 2002, Crown Royal enlisted help of African American advertising agency Carol H. Williams in San Francisco to develop and implement a marketing strategy targeting the 21-29 year old African American consumer •  Grey had been handling the general market advertising for many years •  Worked as Account Planner to develop the consumer profile and marketing strategy Research and Information Gathering: •  Four rounds of African American focus groups across 12 African American markets for consumer profiling and creative development
  • 6. MARKETING OBJECTIVE/PRINCIPLES Objective •  To change the image and opinion for the Crown Royal brand among young African American consumers •  To build awareness, familiarity, and consideration •  Leverage social, trend diffusion from metropolitan cities into the broader pan-ethnic urban market, then smaller cities, suburban, and rural consumers Principles •  Do not become a fad or short-term trend. Create timeless equity and sustainable business •  Invest to grow volume and share, profitably
  • 7. 4 A’S Grow Crown Royal brand commitment among AA males It doesn’t matter what I drink when I’m out with friends at a club Availables I know about Crown Royal but I think it’s old school . . . My dad drinks it Acceptors I was on the VIP list at this party. All the cool people were drinking Crown Royal. Now, Adopters when I go out out and I want to impress, I know to order Crown Royal. Crown Royal is my brand. I feel proud when I order CR, it’s a premium drink Adorers that makes me feel good and look successful when I’m out clubbing
  • 8. STRATEGY Urban Market Urban Consumer (based upon consumer research)
  • 9. THE URBAN MARKET Born out of inner city culture, urban marketing is about a cool, current, hot attitude •  It’s a mindset •  It is defined by attitudes, beliefs and lifestyle •  It is not limited by geographic boundaries, age, or ethnicities •  It is all inclusive, not exclusive •  It is fluid and constantly evolving •  It has a rhythm to it
  • 10. THE STUDY OF TRENDS African American experiences are connected in common history, values and beliefs that persist and evolve over time African Americans re- Reclamation and Evolution invent themselves by AA At the core of urban to a New Experience putting a new spin or Experiences inspired mass trends Reinforced by the Cycle interpretation on the are experiences that trend, resulting in a are grounded in new experience everyday African American culture Creation of an AA Culture American Experience Adoption of key trends in music, Trendology as it Credibility comes from fashion and lifestyle become “mass relates to understanding how culture and lifestyle are important market” that belong to everyone Re-interpretation African AA Trends to African Americans = it’s how cultural icons and of AA Experience by Others Americans trendsetters are born Trendsetters or icons become expressions or These cultural cues are representations of these expressed through lifestyle, Adoption by Migration important cultural cues, such as food, fashion, Mass Market of Trends who then have the ability to language, and dance which influence larger, mass gain wider exposure through Exposure audiences that adopt some trendsetters to Others of these lifestyle cues
  • 11. WITHIN URBAN, SUBSEGMENTING AA There are three segments to the African American Urban Market Street Mosquito Blender •  New tends and lifestyle cues tend to be passed along from Street to Mosquito to Blender •  He can be found associating with Street, and will pass on trends to the Blender
  • 12. WHAT WE KNOW ABOUT HIM •  What he says and does influences a much broader population •  He’s male between the ages of 21-29, educated •  Has confidence and others look up to him •  Wants to demonstrate his success without compromising his self-respect •  Has ethnic diversity in circle of friends and is open to dating, socializing, outside his race •  Goes to multi-ethnic clubs and listens to Hip Hop and R&B music •  Is always in the know of the new trend, club, Hip Hop artist •  Is spontaneous and does not live life by the rules
  • 13. KING OF MY WORLD •  Elements important to the Mosquito are also elements of Crown Royal’s brand personality: •  Hip •  Cool •  VIP •  Class •  Cleverness •  Approachable •  The success of Crown Royal’s communication with the target consumer depends on weaving these elements throughout all media
  • 14. ADVERTISING Print Radio Out Of Home (OOH)
  • 15. OUR CONSUMER PROFILES General Market African American & Urban Target Consumer: Consumer CRAIG: 21-49 CARL: 21-34 Insight: - Males living in middle/lower -  Urban males living in major US cites class suburban neighborhoods . -  Carl is determined to succeed and be respected and rural towns -  Carl looks for ways to save money so he can buy the things - Work in blue collar/trade he really wants, like the new line of Phat Farm clothing or the certified occupations special edition he just read about in Complex -  Carl demonstrates respect and acknowledgment for AA culture, utilizing it as a basis for his uniqueness and individuality. Brand In a world where overt statements With the ongoing pressure to do better than what society expects of him, the consumer wants to Insight: of success and status are intimidating and pretentious, the demonstrate his success without compromising his target desires comfortable self-respect. expressions of his success. 2
  • 17. USING EQUITIES AND CLEVER MESSAGING
  • 19. LOCAL MARKET OUT OF HOME
  • 20. 4 A’S Grow Crown Royal brand commitment among AA males It doesn’t matter what I drink when I’m out with friends at a club Availables I know about Crown Royal but I think it’s old school . . . My dad drinks it Acceptors I was on the VIP list at this party. All the cool people were drinking Crown Royal. Now, Adopters when I go out out and I want to impress, I know to order Crown Royal. Crown Royal is my brand. I feel proud when I order CR, it’s a premium drink Adorers that makes me feel good and look successful when I’m out clubbing
  • 21. EVENTS & ONLINE To deepen the connection between the brand and urban consumers via VIP activities
  • 22. OVERVIEW •  2002-2003 Crown Royal African American national research and advertising launch •  2004-2005 Crown Royal Event and Online Initiatives
  • 23. URBAN EVENT STRATEGY Communicate sophistication and style, making the consumer experience “King of Your World” through all aspects of the experience: –  Signature look and feel to reinforce the experience •  Creates a young and stylish image of the brand that makes calling for Crown Royal at a bar or club acceptable •  Events are unique and eclectic where cosmopolitan people with experience and broad-thinking connect and share lifestyles, interests, and desires with one another •  Establishes Crown Royal as cool -- we engage with him in a way that’s different from others, but familiar and respected
  • 24. URBAN EVENT/ONLINE STRATEGY •  Keep Crown at the center of what’s hot •  Host unique, VIP events at locations relevant to the urban target •  Develop comprehensive online database of key influencers, trendsetters and followers of Crown Royal for year-round re-contact •  Maximize resources across all channels: media, PR, online and post- event advertising •  Cultivate relationships at the grassroots with “ears” in all markets that keep us abreast of rapidly changing trends
  • 25. HOW WE DO IT •  We respect the consumer, where he is, right now •  We take our product and brand to him, we don’t expect him to come to us just because we make the offer •  We don’t pay for celebrity endorsers – we organically cultivate a following of trendsetters through respect and invitation based on core cultural values and beliefs •  We win his trust and respect so that later, he will come to us •  Our strength is in understanding trend evolution and a strategic approach to creating world-class consumer experiences
  • 26. CREATING CONNECTION MOMENTS •  Crown Royal has a thorough understanding of the unifying psychographics that connect people to one another and to the brand •  CR meets people where they are and transforms everyday experiences into something extraordinary •  CR translates this into memorable experiences that shift the way guests see a brand •  Leave them feeling stronger about the brand than before
  • 27. HOW CONNECTION MOMENTS OCCUR Everyday Consumer Life Experience He Gets a Hair Cut Crown Royal He Samples Barbershop Crown Royal Creates a Connection Moment Strategic Brand that Supports His Event Experience Everyday Experience EXAMPLE: CROWN ROYAL BARBERSHOP
  • 28. CROWN ROYAL BARBERSHOPS •  Promotes connection moments essential to the African American male experience – we’ve been invited into the “living room” •  Leverages niche media and local relationships to cultivate brand ambassadors for Crown Royal •  Breaks away from the cluttered environment of promotions •  We can do it because we’ve been invited and embraced
  • 29. BARBERSHOP ELEMENTS •  Local barber shops are given a makeover with lasting impact within the shop and the community •  CR provides branded smocks, capes, mirrors, and promotional items for customers and barbers in the CR Barbershop •  Exclusive events with media partners to enhance coverage in local media for Crown Royal •  Online: –  CR Barbershop site for free cut and/or invitation to special events building a database of urban consumers for future promotions –  Career database/Networking
  • 30. P-DIDDY’S BAD BOYS of COMEDY •  Crown Royal is sponsor of P-Diddy’s new TV show debuting up and coming comedians •  Hosted by P. Diddy, MC’d by Doug E. Fresh and DJ’d by Mr. Cee •  “Making of” video filmed simultaneously with extensive Crown Royal product placement •  Debut shows held large theatres and venues with audiences of up to 5,000 •  Backstage “Crown Royal Lounges” host VIPs •  After-parties held at the hottest clubs featuring talent •  Broadcasted on HBO and on CR Barbershop sites
  • 31. RESULTS •  Huge peaks in product sales in cities after each barbershop program •  Demonstrated the power of WOM •  Product sales at AA clubs peaked •  High attendance at upcoming CR sponsored events •  High activity on barbershop sites •  HBO made show about Barbershops •  Sold out Bad Boys of Comedy shows •  After local national plan completed incorporate initiative into high profile events: ESPY’S, BET Awards •  Organically built celebrity interest
  • 32. NASCAR URBAN COMMUNICATION Why Crown Royal Has Credibility The Urban NASCAR Plan
  • 33. OVERVIEW •  Crown Royal is a major sponsor of NASCAR-Crown Royal 97 Car •  Crown Royal is in the unique position of bringing AA’s to NASCAR because of the established relationship between the brand and the consumer •  Presented following ideas to NASCAR in 2005. Ideas based on consumer and market insight learned throughout the three years of consumer research, creative development, event and online activity
  • 34. NASCAR’S SITUATION •  AA’s account for 4.2% of NASCAR’s 75 million fans •  Predominantly white, heavily suburban, and rural fan base OPPORTUNITY: •  Racist •  Increasingly diverse population •  Aging baby boomers •  Competition for younger fans’ leisure dollars
  • 35. TREND POTENTIAL •  The challenge of integrating a Caucasian middle-American sport with the Urban culture may not be as difficult today as it was five years ago •  Recently, there are a number of subtle signs that point to a shrinking gap between auto-racing/middle-America and Urban culture –  Clothing trend among New York Urban males LDA-29 who have been spotted wearing NASCAR branded clothing –  Music Mix: Country & Hip Hop -Tim McGraw and Nelly with number one single “Over and Over”
  • 36. MOSQUITO AND NASCAR •  He probably hasn’t thought about adding auto-racing to his sport interests of primarily b-ball and football. He sees his culture’s interest in cars, whether it is in a Snoop video or his favorite NBA playa’s pimped out rides on Cribs. However, the idea of attending a NASCAR event is so foreign that he needs to be informed and convinced that it is worthwhile to become involved.
  • 37. CROWN ROYAL’S CREDIBILITY Crown Royal can introduce the urban consumer to NASCAR and create an affinity by building upon and leveraging Crown Royal’s relationship with the urban consumer •  Compared to other brands, Crown Royal is in a unique position to extend this invitation to the urban audience •  The brand’s communication with the target has created a trust that no other brand has among current NASCAR sponsors
  • 38. CREATE NEW CONNECTION MOMENTS We can only work the proven paradigm we know best: Everyday Consumer Life Experience He Enjoys Car Culture Crown Royal & NASCAR He Experiences in Relevant Places Both Brands Create a Connection Moment Strategic Brand that Supports His Event Experience Everyday Experience
  • 39. OUR STRATEGIC APPROACH OVER TIME Cultivate Adoption Connect through by Making it Relevant Experiences: Discoverable Urban Car Culture Generate wider interest by the Black Cultivate a class of Black community in NASCAR experiences NASCAR Top Drivers Seed Urban Racing in the Right Places: Create Signature Urban Music, Fashion, Film Events that Bring NASCAR to the People Utilize Network of Celebrities to Create NASCAR Trendsetters
  • 40. OUR STRATEGIC APPROACH OVER TIME: short term (year one) Connect through Relevant Experiences Urban Car Culture INITIATIVE: KEY URBAN AUTO SHOWS
  • 41. URBAN AUTO SHOWS Trend Insight for AAs: At the core of urban inspired mass trends are experiences that are grounded in everyday African American culture… The car or truck is an extension of the personality and highly asprirational to the consumer   Reflects the personality of the driver   Tells the world “I’ve made it”   Accessible status
  • 42. DUB SUPER SERIES CAR SHOWS –  Dub Magazine is the leading Urban automotive magazine serving as a resource on the most innovative customization trends –  The Dub Super Series are car shows across the country that display cutting edge technologies and trends in car and truck customization –  The event capitalizes on the Urban culture’s interest in cars and recruits a large number of Urban consumers
  • 43. CARS + MUSIC DRAWS URBAN TARGET –  Hip Hop music plays a big role in setting the mood and draws an urban crowd to the event
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  • 46. OUR STRATEGIC APPROACH OVER TIME: short term (year one and two) Cultivate a Class of AA NASCAR drivers INITIATIVE: DRIVE FOR DIVERSITY
  • 47. INITIATIVE: DRIVE FOR DIVERSITY –  Program seeks to cultivate minority drivers and crew pit members on lower-profile regional racing circuits –  Professional drivers and pit members do the training –  Crown Royal sponsored driving summer camp –  College Tour –  CrownRoyal/NASCAR.com membership register
  • 48. OUR STRATEGIC APPROACH OVER TIME: short term (year one and two) Create Signature Urban Events that Bring NASCAR to the People Signature Events: Crown Royal Body Shop
  • 49. CROWN ROYAL BODY SHOP Trend Insight for AAs: Credibility comes from understanding how culture and lifestyle are important to African Americans = it’s how cultural icons and trendsetters are born… Initiative: Offer Body Shop Makeovers and feature best 12 shops nationally that can customize/urbanize the ’97 car
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  • 52. OUR STRATEGIC APPROACH OVER TIME: short term (year one and two) Create A Sense of VIP Exclusiveness ONLINE INITIATIVE: www.CrownRoyal/NASCAR.com
  • 53. WWW.CROWNROYAL/NASCAR.COM Trend Insight for AAs: Trendsetters become representations of cultural cues, who influence mass audiences Initiative: Create a private network of opinion leaders that have the ability to launch trends –  Register at Dub Super Series Car Shows, Drive for Diversity program, and CR Body Shops –  WOM campaign, brand ambassadors
  • 54. WOM •  A brand’s message has a stronger impact with word-of-mouth than any traditional media •  Opinion leaders are interested in an alternative and exclusive approach of communication and marketing •  Experimenting of the product in a relevant consumption context is the best way to engage over-targeted or savvy consumers
  • 55. EXCLUSIVITY •  Private network of opinion leaders and influential/high profile people that is built exclusively through referral •  Members are charismatic, motivated, communicative and strongly engaged in their community •  Each referral is screened online and then personally interviewed at CR/ NASCAR events •  Members are committed and highly motivated to launching trends through word-of-mouth •  Members routinely provide valuable feedback
  • 56. SITE ELEMENTS BUZZ MARKETING - Invitation to exclusive events, involvement in urban marketing actions - Organization of events and establishing partnerships VIRAL MARKETING - Trends/News - Broadcasting of online information before it hits the streets RELATIONAL MARKETING - Creation and management of brand ambassadors’ clubs - Recurrent interactions with pools of opinion leaders close to the brand
  • 57. ROI •  Guaranteed to reach level N+1 with a positive and natural word of mouth •  N+2 is measured and N+3/ N+4 is expected -  Supporting WOM relays (events and buzz actions, PR, Media campaign) -  Number of members participating in each city : the more members participate, the best coefficient the product have when reaching N+2 / N+3/N+4 level
  • 58. OUR STRATEGIC APPROACH OVER TIME: mid-term (year two to four) Seed Urban Racing in the Right Places: Fashion, Music and Film
  • 59. SEEDING THE PRODUCT IN FILM Trend Insight for AAs: Cues are expressed in lifestyles, food, fashion, language, dance, film, and connection moments that gain wider exposure through trendsetters –  Remake “Greased Lightening” with Dave Chappell, Larry the Cable Guy, Mike Epps, etc. –  This film is based on the true life story of Wendell Scott, the first black stock car racing champion in America –  NASCAR product placement in racing relevant movies with urban male appeal (e.g. action and comedy)
  • 60. SEEDING THE PRODUCT IN TV/MUSIC –  Driver appearances on “Pimp My Ride” or develop performance based “Ride” show –  Celebrity Driving School (televised) –  NASCAR product placement in videos, celebrity award shows, etc. –  Authentic integration in music videos –  Catch trend of spoken word music
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  • 65. CELEBRITY INVOLVEMENT Celebrities and Trendsetters look to the streets/community for what’s “hot”   They reflect back to the consumer what he already knows   They illuminate what’s going on in the community for others to see Initiative: Focus on integrating urban and African American celebrities –  Leverage new product launches –  Celebrity racing –  Feature celebrity car makeover parties –  Drive awareness of NASCAR
  • 66. OUR STRATEGIC APPROACH OVER TIME: long-term (year three to five) Make NASCAR Discoverable to the Wider Mainstream Black Population
  • 67. MAKE NASCAR DISCOVERABLE Trend Insight for AAs: African Americans re-invent themselves by putting a new spin or interpretation on the trend, resulting in a new experience KEY OPPORTUNITIES: –  The broader black community needs to find NASCAR on their own –  Avoid direct marketing NASCAR to African Americans -- allow them to find what resonates organically, over time –  Embrace controversy –  Cultivate a competitive driver that can be followed and championed by the community –  Make visible those in the pipeline now – use PR to put them in places where AAs will find them
  • 68. FINAL THOUGHTS •  NASCAR is already working the plan by identifying and cultivating a Black star/competitor -- a crucial factor in our success •  To make NASCAR attractive to the urban consumer, all connections with racing need to be delicately seeded over time •  It’s not easy, but it’s possible to attract this consumer •  The payback for integrating the sport is enormous •  Our recommendation is to to BRING NASCAR TO THE CONSUMER!