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

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

BRAND BACKGROUD

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

MARKETING OBJECTIVE/PRINCIPLES

4 A’S Grow Crown Royal brand commitment among AA males

Availables

Acceptors

Adopters

Adorers

It doesn’t matter what I drink when I’m out

with friends at a club I know about Crown Royal but I think it’s

old school . . . My dad drinks it

I was on the VIP list at this party. All the cool people were drinking Crown Royal. Now,

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 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

AA Experiences

AA Culture

AA Trends

Migration of Trends

Exposure to Others

Adoption by Mass Market

Re-interpretation of AA Experience by Others

Creation of an American Experience

Reclamation and Evolution to a New Experience

Reinforced by the Cycle

Trendology as it relates to African

Americans

Credibility comes from understanding how culture and lifestyle are important to African Americans = it’s

how cultural icons and trendsetters are born

At the core of urban inspired mass trends are experiences that

are grounded in everyday African American culture

Trendsetters or icons become expressions or representations of these important cultural cues, who then have the ability to influence larger, mass audiences that adopt some of these lifestyle cues

These cultural cues are expressed through lifestyle,

such as food, fashion, language, and dance which

gain wider exposure through trendsetters

African American experiences are connected in common history, values and beliefs that persist and evolve over time

Adoption of key trends in music, fashion and lifestyle become “mass market” that belong to everyone

African Americans re-invent themselves by putting a new spin or interpretation on the trend, resulting in a new experience

THE STUDY OF TRENDS

WITHIN URBAN, SUBSEGMENTING AA

There are three segments to the African American Urban Market

Street Blender Mosquito

•  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

2

Consumer Insight:

Target Consumer:

Brand Insight:

In a world where overt statements of success and status are intimidating and pretentious, the target desires comfortable expressions of his success.

CRAIG: 21-49 - Males living in middle/lower class suburban neighborhoods and rural towns - Work in blue collar/trade certified occupations

.

General Market African American & Urban

CARL: 21-34 -  Urban males living in major US cites -  Carl is determined to succeed and be respected -  Carl looks for ways to save money so he can buy the things he really wants, like the new line of Phat Farm clothing or the 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.

With the ongoing pressure to do better than what society expects of him, the consumer wants to demonstrate his success without compromising his self-respect.

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

Availables

Acceptors

Adopters

Adorers

It doesn’t matter what I drink when I’m out

with friends at a club I know about Crown Royal but I think it’s

old school . . . My dad drinks it

I was on the VIP list at this party. All the cool people were drinking Crown Royal. Now,

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 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

•  2002-2003 Crown Royal African American national research and advertising launch

•  2004-2005 Crown Royal Event and Online Initiatives

OVERVIEW

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

Creates a Connection Moment that Supports His

Everyday Experience

Strategic Brand Event Experience

Crown Royal Barbershop

He Gets a Hair Cut

He Samples Crown Royal

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

•  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

OVERVIEW

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

Create a Connection Moment that Supports His

Everyday Experience

Strategic Brand Event Experience

Crown Royal & NASCAR in Relevant Places

He Enjoys Car Culture

He Experiences Both Brands

OUR STRATEGIC APPROACH OVER TIME

Connect through Relevant Experiences:

Urban Car Culture

Create Signature Urban Events that Bring NASCAR to the People

Utilize Network of Celebrities to Create NASCAR Trendsetters

Seed Urban Racing in the Right Places: Music, Fashion, Film

Cultivate Adoption by Making it Discoverable

Generate wider interest by the Black community in NASCAR experiences

Cultivate a class of Black NASCAR Top Drivers

OUR STRATEGIC APPROACH OVER TIME: short term (year one)

INITIATIVE:

KEY URBAN AUTO SHOWS

Connect through Relevant Experiences Urban Car Culture

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 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

DUB SUPER SERIES CAR SHOWS

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)

INITIATIVE:

DRIVE FOR DIVERSITY

Cultivate a Class of AA NASCAR drivers

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)

Signature Events:

Crown Royal Body Shop

Create Signature Urban Events that Bring NASCAR to the

People

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)

ONLINE INITIATIVE:

www.CrownRoyal/NASCAR.com

Create A Sense of VIP Exclusiveness

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!