Alex Meshkin » IRL http://www.alexmeshkin.com NASCAR, Digital Media, and More! Fri, 19 Mar 2010 13:21:04 +0000 en hourly 1 Cost-Cutting at GM Racing – NASCAR a Branding Problem? http://www.alexmeshkin.com/2008/07/16/cost-cutting-at-gm-racing-%e2%80%93-nascar-a-branding-problem/ http://www.alexmeshkin.com/2008/07/16/cost-cutting-at-gm-racing-%e2%80%93-nascar-a-branding-problem/#comments Wed, 16 Jul 2008 16:27:38 +0000 Alex Meshkin http://www.alexmeshkin.com/?p=48 Yet Another Related Posts Plugin.]]> The day is fast approaching when the automotive manufacturers are going to reign in their motorsports budgets to reflect the current state of the automotive industry. The fundamental issue with NASCAR as a branding tool for the car companies is that it fails to demonstrate the future product portfolio and demands for “green” vehicles.
Even though financial uncertainty for the Big 3 car companies is really nothing new – surging fuel prices have disproportionally affected the U.S. carmakers vs. their foreign counterparts. This is because of their reliance on profits from the sale of light-trucks and SUVs. In May, GM saw a 37% decline in light truck and SUV sales; and subsequently its share of the overall U.S. market dropped below 20%, a new low for the automotive giant that in 1980 had 45% of the U.S. market.
Over the past couple of years, as the trends of high fuel prices and the decrease in light truck and SUV sales became a reality – NASCAR adopted rules and policies to further alienate the automotive manufacturers from the sport. Instead of embracing alternative energy branding or a “green” platform – the recent implementation Car of Tomorrow (COT) – is nothing more than an antiquated “led sled” and continues a branding platform that labels the U.S. carmakers as gas guzzlers.
Some may ask, but isn’t racing and “green” technology or fuel efficiency an immediate dichotomy? The simple answer is NO – at least it doesn’t need to be.
I am the last person to believe that Ethanol fuel is the answer to our energy crisis or believe it will be the long-term solution for consumers and carmakers alike. However; one must recognize the success of Honda and their racing program in the Indy Racing League (IRL) – the IndyCar Series.
Back in 2006, the Indy Racing League (IRL) and IndyCar Series adopted the use of Ethanol fuel instead of traditional gasoline to provide Honda (their sole engine provider and automotive manufacturer) a marketing platform to appeal to the growing consumer demographic interested in alternative energy sources and “green” technology. When you compare recent sales results of Honda versus GM, Ford, Chrysler and Toyota – you must see the correlation between their brand positioning and the motorsports platform of the IndyCar Series. As of May 2008, Honda is now selling more cars than Chrysler.

Last week, GM racing director Mark Kent said that every level of motorsports that GM supports-from the giant stock-car racing series NASCAR to the grassroots Sports Car Club of America-is being evaluated. “Racing is not exempt (from cuts),” Kent said last week. Troy Clarke, president of GM North America, added: Motorsports “have not gone without scrutiny. I’m not going to get into specifics about NASCAR. But there will be modifications-changes in our marketing footprint-in this area.”
You must wonder – why is NASCAR asleep at the wheel? Over the past decade, NASCAR has developed a phenomenal market platform for all types of companies – but without the financial and marketing support of the carmakers – NASCAR teams can’t afford to operate.
The time is now for NASCAR to embrace tomorrow’s future – alternative energy and fuel efficiency branding is required for the long-term viability of the sport as a marketing platform for the automotive manufacturers.

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]]> http://www.alexmeshkin.com/2008/07/16/cost-cutting-at-gm-racing-%e2%80%93-nascar-a-branding-problem/feed/ 1 Danica’s Victory – Watershed Moment for IndyCar? http://www.alexmeshkin.com/2008/04/25/danica%e2%80%99s-victory-%e2%80%93-watershed-moment-for-indycar/ http://www.alexmeshkin.com/2008/04/25/danica%e2%80%99s-victory-%e2%80%93-watershed-moment-for-indycar/#comments Fri, 25 Apr 2008 22:36:35 +0000 Alex Meshkin http://www.alexmeshkin.com/?p=29 Yet Another Related Posts Plugin.]]> During NASCAR’s off week, IndyCar stole the media headlines thanks to Danica Patrick winning her first race to become the first woman to win in open-wheel racing history. A few days ago, Danica was interviewed by Fox News and discussed her history making performance. While some may argue that her victory was a result of strategy and not performance – at the end of the day – the end result was a victory. This historic win will never be erased and will catapult IndyCar’s reemergence.

This recent ground breaking victory brought back many good memories of my own personal story in NASCAR and our team’s historic moments which were featured in interviews in 2004 on Fox News. Without a doubt, the marketing savvy of IndyCar to leverage historic racing moments, has become quite evident in recent days. In contrast and in comparison, after delivering Toyota’s first historic NASCAR victory I was the first NASCAR team owner ever to be interviewed on Fox News. As the youngest team owner in NASCAR history the media was mesmerized, not only with my young age; but with our historic and record-breaking year in NASCAR. However, unlike the IRL (IndyCar), who is leveraging Danica’s historic moment in history – and is utilizing this moment to bring in new sponsors into the sport to reach new demographic markets – not surprisingly, NASCAR failed to leverage their moment.

But only time will tell if Danica’s historical victory will be the “watershed event’ that reignites IndyCar as a true corporate sponsorship alternative for NASCAR.

By: Alex Meshkin

 

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