There are a lot of reasons auto companies race: prestige, publicity, technological development and marketing, to name a few.
For Ford, it comes down to this: Racing makes good business sense.
As far back as 1901, company founder Henry Ford raced to prove out his new product, and to gain favorable publicity for his efforts. His victory in his one and only race in Grosse Pointe, Mich., that year proved to be the turning point in attracting investors to Ford and helping him start the Ford Motor Company in 1903.
“My great-grandfather understood the value of racing, and what it could do for a company,” said Edsel B. Ford II, a member of the Ford board of directors and a long-time supporter of Ford’s racing programs. “He knew what racing could do, both in terms of technical innovation and marketing. I think he’d be pleased that those are key reasons we still race today.”
Indeed, on-going research has shown racing works for Ford.
“Fifty-two percent of Ford owners call themselves race fans,” said Burt Diamond, global marketing manager, Ford Racing Technology. “Certainly that’s a huge number of people out there who have a strong emotional connection with what we’re doing. We’d be crazy not to market to these people.”
But more than just showing interest, these Ford race fans are proving to be good, loyal customers.
Among market-active consumers, Ford’s market share among race fans is 40 percent higher than non-race fans. And consideration for Ford products is 47 percent higher among race fans, than non-race fans.
“Not only that, but we’ve found that racing truly influences the fundamental beliefs about Ford products,” said Diamond. “Our research has shown that our primary brand attributes – things like ‘holds up well,’ ‘smart designs,’ ‘practical innovations’ – all rate higher among race fans than non race fans.
“Our NASCAR race fans have the strongest image of Ford on both primary and racing-related brand images than anywhere else we race.
“There’s no question, based on our research, that racing polishes the oval for Ford.”
Based on that fact-finding, Ford Racing marketing is working closer than ever with Ford Division marketing to promote new product and use racing to touch and influence consumers.
Starting Saturday, July 16, the first of nine Ford Racing Innovation Drives for 2005 will take place at Kentucky Speedway, with consumers getting their first chance to drive the new Ford Fusion, and to see the 2006 NASCAR Fusion that was unveiled today.
The Ford Racing Innovation Drives support new product launches, and are racing-themed, with interactive displays, driver autographs and Q&A sessions, and test drives with the Champ Car World Series pace car team.
“We tried five of these Innovation Drives last year, featuring Mustang, Freestyle and Five Hundred, and they proved to be a great success,” said Diamond. “We averaged more than 1,200 consumers test driving our new product at the events, and the buy rate afterward was excellent compared to similar promotional programs. It offers consumers a chance to test our new products in a fun, non-threatening environment, and often gives them a chance to drive actual race tracks that normally wouldn’t be available to them.”
The Innovation Drives are just the latest of Ford Racing marketing efforts that also include Ford Racing Fan Appreciations Days, the Team Ford Racing fan club, and “big event” sponsorships such as the Built Ford Tough 225 at Kentucky and the Ford Championship Weekend – NASCAR’s championship weekend – at Homestead Miami Speedway.
The Ford Fan Appreciation Days have been part of the marketing portfolio since 1996. The events are supported in conjunction with local Ford dealer groups in such markets as Dallas-Ft. Worth, Phoenix, Detroit, Indianapolis, Kansas City and Miami, and feature everything a consumer could see at a race, except the race itself.
Consumers attend for free with tickets available only at local Ford dealers. On average, 3,000-8,000 fans enjoy the four-hour event that provides fun for families, and data collection for Ford and its dealers.
The Team Ford Racing fan club is one of the major success stories. TFR is the largest racing affinity club for any car company, with 300,000 members expected by the end of 2005.
Team Ford Racing members receive access to exclusive events at race tracks featuring Ford drivers; exclusive “insider” information on their own news website; a monthly magazine, weekly emails, and discounts from numerous Ford Racing “crew members” like Hertz and NASCAR Scene Magazine.
Research on TFR members show they are the true Ford loyalists, with 1.8 Ford per garage and a Ford purchase history two to three times greater than average.
In terms of the “big events” for Ford, there may be none bigger than the Ford Championship Weekend, which features the championship race for each of the NASCAR Nextel Cup, NASCAR Busch and NASCAR Craftsman Truck series.
Ford uses the event as not only a way to reach the south Florida marketplace, but also to leverage consumers and internal incentives. In all, six different divisions of Ford Motor Company used the 2004 Ford Championship Weekend last year to host programs.
“We’ve stayed focused on what racing can do for Ford,” said Diamond. “At the end of the day, our job is to help the company sell more cars, trucks and services. Each of the promotional activities we’re involved in has to meet three key criteria – help polish the Oval, connect with our customers, and help us sell product.
“I think, because we’ve stayed focused on the marketing side, and because we’re committed to being successful on the track, we’re making a difference for our customers, and our shareholders.”
