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Sponsoring NASCAR driver is a winning formula for ag firms 

 
By MICHELE F. MIHALJEVICH
Indiana Correspondent

SPRINGFIELD, Ill. — Officials with agriculture-related companies and organizations that advertise at NASCAR events or sponsor drivers see a link between race fans and farming.
Brandt Consolidated, Inc., the National Corn Growers Assoc. (NCGA) and New Holland Agriculture are among several sponsors using the National Assoc. for Stock Car Auto Racing, or NASCAR, as a way to get their messages across.
This is Brandt’s fifth season in NASCAR and the company’s fourth as sponsor of Justin Allgaier, who drives in the Sprint Cup series.
“We see a relationship between the agricultural community and NASCAR; the ag community likes NASCAR,” said Karl Barnhart, Brandt’s chief marketing officer. “We have a global business in 48 states and 46 countries. There are millions of eyeballs on the TV each week, exposing our brand to all of them. It helps to show dealers, distributors and ag customers who we are.”
NCGA, an official partner of NASCAR, has been in the sport five seasons. “We had been watching the fight go on pointing out the benefits of ethanol and considering the time that had passed, we weren’t getting the leverage we wanted,” explained Mark Lambert, NCGA senior communications manager.
“We also needed to get out of the Midwest, where more people know about ethanol. On the East Coast and in the South, that is not the case. They either don’t know (what ethanol is) or what they think they know is wrong.”
The first year the organization went to a race in Dover, Del., NCGA officials were surprised at the number of negative remarks about ethanol from those attending the race, Lambert said. The next year, they heard more favorable comments.
“We started making major inroads after two years,” he stated. “We now use the campaign to focus more on selling E15. We’ve gone from that general message to selling fuel now.”
NASCAR switched from using unleaded fuel to E15 – a blend of 15 percent ethanol and 85 percent gasoline – in 2011. NCGA is a primary sponsor in American Ethanol, which will appear as the main sponsor on the Cup series car of Austin Dillon for six races this year. It’s the brand’s third full season with Dillon.
Lambert declined to say how much NCGA spends on the sponsorship, but said the average sponsor probably pays $3 million-$5 million annually to be on a car.
“American Ethanol is the seventh most-recognized brand in NASCAR,” he said. “I would say it’s been a big success in terms of the racing visibility it produces. One hundred million people are exposed to NASCAR in any given year, and 5 million watch on TV each weekend. NASCAR fans are the most brand loyal in sports.”
Brandt, based in Springfield, Ill., is in NASCAR for three reasons, Barnhart said. “We use our sponsorship to incentivize prospects to work with us, to reward customers and to develop a performance culture at the company. NASCAR is a team-oriented sport. At Brandt, it’s not just about the Brandt family and the executives. Everybody is helping to get a crop in the field and to get the crop out of the field. It’s all about how the team works together.”
Brandt’s relation-ship with NASCAR began with a one-race deal with driver Peyton Sellers in the then-Nationwide series. “That first year, we answered a direct email looking for sponsorship,” Barnhart explained. “We’d never done it before. We had a great time with our customers, and we saw it as a way to grow our brand. At the time, nobody here at Brandt was really a race fan.”
Allgaier, who moved to the Cup series two years ago, is from nearby Riverton, Ill.
“He’s a local kid,” Barnhart noted. “He grew up here, and we’ve known him his whole racing career. He’s not a farm kid, but he understands where we’re coming from as an organization.”
Brandt’s current deal with Allgaier’s team calls for it to serve as primary sponsor at 21 of 36 races. The company will be a secondary or associate sponsor for the remaining races. Barnhart also declined to say how much the company spends on its sponsorship.
New Holland was named official agricultural equipment of NASCAR in 2012 but has been involved with the sport for years, said Scott Byers, the company’s manager of national accounts and NASCAR. Tracks use several types of equipment, such as tractors and utility vehicles, for mowing, track repair and baling hay, he said. New Holland is also a partner in American Ethanol.
“(The NASCAR sponsorship) is all a part of our marketing plan,” said Ron Shaffer, director of the company’s North American specialty business units and West region sales. “We’re involved with ethanol because part of our platform is our focus on clean energy. This gives us additional exposure. We can see what the loyalty ratings (of fans) have been.”
At some race tracks, New Holland may offer remote radio broadcasts, pace car rides or pit tours, Byers said. Local dealers may opt to display equipment at a nearby track, he said. “We’ve seen success (with the sponsorship), and there are areas for improvement,” Shaffer said. “Brand awareness in the fan base for our rural products and outdoor market is the key.”
9/3/2015