Kentucky Speedway:Getting a Checkered Flag with Customers

Deborah CowlesVirginia Commonwealth University

Jan OwensCarthage College

Matthew SauberEastern Michigan University

Jacobs & Clevenger Case CompetitionMarketing EDGE

Direct/Interactive Marketing Research SummitBoston, MA October 3, 2015

Who Competes at NSF Case Cup?

• For 2015

NSF CASE CUP• Cincinnati, OH, 2015• Real world case competition involving the

sports industry• Judged by real world sports management and

marketing executives.

Who Won the NSF Case Cup?

• For 2015

The Case for 2015

• First: NSF solicited case writers• The NSF Committee outlines the timeline for

case preparation before revealing the client• Client revealed: (drum roll)

The Case for 2015

• First: NSF solicited case writers• The NSF Committee outlines the timeline for

case preparation before revealing the client• Client revealed: (drum roll)

NASCAR!!!(Jan: oh, crap)

The Case for 2015

• First: NSF solicited case writers• The NSF Committee outlines the timeline for

case preparation before revealing the client• Client revealed: (drum roll)

NASCAR!!!(Jan: oh, crap)

Deborah: “Great! I love NASCAR!!!”(Jan: thank you, God)

Background: NASCAR • National Association for Stock Car Auto Racing• Many cup series• Many track records set in 2014 as a result of

rule changes• Opportunity to develop driver focus and

engagement

Background: NASCAR YET: Escalating costs of operating a race team

Declining attendance, even as other pro sports have recovered after 2008

Declining television ratings (and revenues)

How to grow the next generation of fans, i.e. What do Millennials want?

Background: Kentucky Speedway (KS)

• 2000: One of NASCAR’s newer tracks• 107,000 full attendance, but declining• Hosts race events multiple days in a row• Mostly draw fans from surrounding states

< 1 hr: Cincinnati, Louisville. Lexington< 2 hr: Indianapolis

• Six campgrounds• Won the privilege of hosting the Sprint Cup since

2011

Questions for KS and NASCAR

• How to make race day“Look better” on television“Feel better” for fans

• (Who are the prospective customers, anyway?)• How to drive customer and fan engagement in

the sport and the KS track• How to leverage and integrate various

communications

Questions for KS and NASCAR• How can KS enhance the value proposition and

“customer experience” for:current customers?prospective customers?

• How can KS maintain and attract media partners and cooperative marketing agreements?

• Objectives: increase ticket sales increase revenue fan engagement television ratings

Teaching the Case

This case can be used in:Capstone marketing managementMarketing strategySports marketing & managementDirect marketingVarious forms of IMCPricing strategyMarketing Research

Teaching the Case

To begin: Ask students if they are NASCAR fans?Why or why not?

Not top-of-mind?Not aware?Features/benefits?Preferred leisure activities?

Now that they’ve read the case, ask them to describe segments of NASCAR fans; research

Teaching the Case: Key questions• How can KS enhance the value proposition and

“customer experience” for:current customers?prospective customers?

• (Who are the current and prospective customers, anyway? Research!)

• Objectives for track and each segment: increase ticket sales increase revenuefan engagement TV ratings

Teaching the Case

• SWOT AnalysisFor current and future target customers?

• Focus: what are the key problems?What are the key solutions/objectives and tactics?

• Develop a 2-year IMC plan• Propose a budget (tables included, and

opportunities for research)

Five Sports Fan Segments(Sports Business Daily, July 23, 2012)

Yet more questions• What strategies can KS develop to build upon

NASCAR efforts to attract:MillennialsCulturally diverse fans

• What has been going on in NASCAR and KS lately, i.e. update the case?

• Should KS expand its list of travel partners?• Related businesses, e.g. drivers visit local car

dealers?

Teaching the case: the Drivers

• Who are the NASCAR personalities?• How are the personalities supporting the

sport?• How do drivers engage customers?• Examine the fan pages of various drivers –

Which media? How used?Describe the fan interaction

Nextmark.com exercise

• Nextmark exercise provides opportunities for some basic break-even exercises in DM

• Gets student thinking about market segments• Can make students a little paranoid

Other environmental factors affecting NASCAR patronageRelate to each target segment: Develops in macro-environments:• Economic• Technological• Socio-cultural• Demographic• Legal/regulatory• Competitive

THANK YOU!

ANY QUESTIONS?