NASCAR to Partner with NextVR for Virtual Reality BroadcastingMarketing Plan

Prepared By:Bianca Esposito

May 13, 2016

Table of Contents

Introduction and Executive Summary 3-4

S.W.O.T Analysis 4

Consumer Information 5-6

Market Strategies 6-18

Sponsorships 19-22

Implementation 22-25

Control and Evaluation 26-27

Resources 27-28

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Executive Summary

NASCAR’s partnership with virtual reality company, NextVR, will allow viewers to experience a virtual reality of live game broadcasts and exclusive driver footage through the lenses of Samsung Gear VR headsets. NextVR, is a revolutionary technology company that provides users with an unparalleled viewer experience “with its patented technology, NextVR is the only company capable of transmitting live high definition, three-dimensional virtual reality content over the Internet delivering a completely immersive and life-like experience for the viewer” (NextVR). This viewing experience will change the way viewers perceive NASCAR and will foster a new dynamic, intimate, and sensory experience in a way will appeal to new and existing fans and also tech enthusiasts. This plan will aid the NASCAR CEO’s, Brian France, goal of developing new digital marketing strategies that will help grow a new brand loyal, exciting, and digital fan-base aimed to target children, Hispanics, and Generation Y.

Introduction

The marketing goals and objectives of this plan to bring virtual reality broadcasting to NASCAR are to attract a younger and more diverse audience through revamping NASCAR’s dated digital aspects. By providing a more technologically advanced and engaging fan experience, NASCAR creates the opportunity to tap into Hispanics, children’s, and Generation Y’s brand loyalty and interest in consuming sport and the latest technology. This viewing installation will also allow fans the opportunity the build a stronger connection to NASCAR which will help increase NASCAR’s low “star power” appeal that has been expressed amongst consumers. The NextVR technology and Samsung Gear VR headsets allow for a portable device for virtual reality streaming of NASCAR at an affordable price; this innovative product and NASCAR VR channel has the potential to jumpstart NASCAR’s aging fan base by drawing in new targets to increase viewership, fans, and overall revenue for NASCAR.The appeal is also for existing fans that are not able attend games or dislike the NASCAR race track experience; fans will now have the opportunity to be in the midst of action packed and up-close views in a way that will draw them to this product. NextVR states,”[our] business model is focused on a technology called “lens-to-lens,” which specializes in beaming athletic competitions of all varieties in 6K resolution to virtual reality viewing devices around the world. Unlike traditional widescreen cameras that shoot from just one angle, NextVR’s multi-directional camera rigs capture the game stereoscopically in 360 degrees” (NextVR).

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We want NASCAR to be the first sport to offer a virtual reality broadcast of races and offer portable various content to be viewed in homes, outside, in-flight and beyond in order to spread the NASCAR brand awareness and reboot the sport appeal.

Section 3: SWOT ANALYSIS

STRENGTHS● Association with more Fortune 500

companies than any other sport● #1 sport in brand loyalty● #1 Spectator sport, 17 of the 20 most attended

games in the U.S● Technological era● Samsung is a smartphone market leader. 84%

of current Samsung smartphone owners said they prefer Samsung for their next smartphone.

● Portable

WEAKNESSES● Current decline in NASCAR sponsors and

viewership● Adherence to traditional corporate culture● Aging fan base that predominantly consists of

white, married males with an average age of 47.● Exclusive to Samsung smartphone owners (Works

with Galaxy S7, Galaxy S7 edge, Galaxy Note5, Galaxy S6 edge+, Galaxy S6 and Galaxy S6 edge)

● Lack of sport diversity● Lack of appealing social media presence● Change in “car culture”● Changing family dynamics, rise in single parent

homes, weakened “passing down” sport tradition● Does not have global fan base

OPPORTUNITIES

● Sponsorships● Deepen Fan Engagement/Connection● Make headset compatible will smartphones

beyond Samsung● Build better social media platforms● Online advertisements● New Markets● NASCAR promotional events● Creating video games for the headset● Product development opportunities (ex: pay

for exclusive footage, rewind features, share features, etc.

THREATS

● Technological difficulties● Potential take away from the “watch together”

nature of the sport● Financial Capacity● Competitors (ex: Google Cardboard)● Not an exclusive deal with NextVR; potential rise

in bringing virtual reality to other more action packed sports (NHL, NFL, Soccer, etc.)

Section 4: Consumer Information

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If this plan is selected to be executed, we would obtain consumer information by first looking at current customer contacts we currently have by retrieving ticket sale contacts from ticket distributors and gathering contact data from official NASCAR fan club members. After gathering existing consumers contact information, we also want to target the potential consumers who have expressed previous interest in the NASCAR product and sport.

● Live Marketing Strategy - NASCAR can also implement a live marketing strategy that would provide a certain

hashtag during a live race broadcast for social media users to post during live races and only those watching the race would be aware of the hashtag since it would be announced live. Those who use the hashtag during the game provides NASCAR with more contact information and social media accounts to target since they are consumers who are currently watching NASCAR and interested enough to engage with NASCAR through social media.

● Retrieving Contacts from Past Contest Entries/Donations - NASCAR can also retrieve the contacts from past contest entries and donation drives such as the ones from their 2013 partnership with the Hispanic Scholarship Fund to commemorate National Heritage Month with their dollars-per-lap donation program which allotted $5 dollar donations for every lap completed by a Hispanic or Latin American driver.

● Gather Information About Interested NASCAR Consumers - To gather contact information about interested consumers, NASCAR can launch online social media campaigns that have raffles embedded in them to win tickets to the next race happening and to test the virtual reality broadcast of the game during the next race in the potential consumers area. To be considered to win the raffle, the applicant must either repost or retweet the ad campaign with the designated hashtag and “tag" two friends to gain awareness about NASCAR’s new way to view live sport. All participating online users will provide us with their contact information which not only grants us with a new list of interested/prospective NASCAR consumer contacts but it also allows us to have the contacts of active technology users since it is a web-driven raffle. This is an important attribute for NASCAR to find in new consumers since our goal is to attract heavy online users such as those within the Generation Y and children demographic.

Secondary Research ● Case studies● Business websites

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● Magazines● Social media websites; track NASCAR hashtags and relevant sport conversation

Section 5: Market Strategies

A. Market Segmentation● The basis for our market segmentation will be focusing on demographics, primarily

Hispanics, children, and Generation Y. The reason for focusing on these three demographics is because they all are evolving target markets that have a large purchasing power and are heavy technology users that have the attributes to be attracted to NASCAR’s virtual reality broadcasts via Samsung NextVR headsets.

Hispanics● Studies show that Latinos will account for more than 80% of the growth in the population

of 18- to 29-year-olds over the next few years and this makes them a key demographic for marketers targeting young consumers.

● According to Hispanic-marketing.com, a blog started by Target Latino, a Hispanic Inbound Marketing consulting firm, in 2015, “a total of 22.7MM Hispanic Americans – that is a 42% of the total U.S. Hispanic population – are Millennials. This represents 27% of all U.S. Gen Yrs” (2016, Goffan).

● Hispanics are increasing their financial wealth at the fastest rate of any ethnic group in the U.S. According to “The Multicultural Economy Report” published by Terry College’s Selig Center for Economic Growth, the U.S. Hispanic spending power is expected to reach $1.7 trillion by 2020.

● According to a recent Nielsen study, Hispanic fans are twice as likely to attend a sporting event once a week. When they are not at the games, Hispanics tend to watch sports programming with others.

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● Hispanics are heavy technology users. Hispanic millennials are nearly 66 percent more likely to connect via mobile than non-Hispanic whites. This statistic provides us with the information that Hispanics are digitally connected and interested in technology, which are important attributes to have in our primary demographic segmentation since our core product is high-tech based.

Children

● Children are another primary demographic we aim to target because they provide an opportunity for NASCAR to rebuild their classic fan engagement model that includes being brought into the NASCAR fandom as a child by a family member and then passing on the fan tradition to their children and others as they age through this innovative way to view live race broadcasts.

● Targeting children who have already been exposed to NASCAR is a feasible market to reach since 37% of NASCAR fans have children under the age of 18.

● Children have a significant influence over family purchases. Children under 12 influence $500 billion in purchases per year while children under 14 spend about $40 billion annually. Children who are interested in the product have a high chance of purchasing this product due to their immense dictation of family purchasing power.

● Children are intrigued by technology, video games, and feeling connected to a fandom community. Focus groups conducted during NASCAR’s 2010 marketing initiative titled, Project EVOLVE, revealed that children felt that the sport was uninteresting, lacked driver “star power” and had a poor digital presence. Incorporating a virtual reality broadcast that will make viewers feel as if they standing on the racetrack will potentially diminish the disconnected feeling children have about the sport and provide them with a high-tech way to be connected to the NASCAR sport and drivers.

Generation Y

● Marketing this product to Generation Y consumers (18-36 year olds) is essential because they are considered ‘digital natives’ and are accustomed to new technology and gadgets being ingrained into their everyday lives.

● Generation Y is welcoming and interested in new technology. Recent studies have shown that Generation Y has spent five times more on discretionary spending as a share of their discretionary income than the wealthier Baby Boomer generation, a demographic that makes up a large part of the current NASCAR fan base.

● Generation Y consumers have a positive view of technology in their lives which makes them more inclined to be interested in a product that will take their sport viewing experience to a revolutionary and exhilarating new level. According to a 2014 Nielsen consumer report, “more than 74 percent feel that new technology makes their lives easier,

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and 54 percent feel new technology helps them be closer to their friends and family” (2014).

● Generation Y is more likely to stream on digital devices rather than watch cable. NASCAR has the opportunity to place an entirely new product in these tech savvy consumers hands and adapt to the way the younger generation is viewing sport.

● According to a 2013 Taylor report titled, “NASCAR’s Power Grows as a Platform to Reach Gen Y Audience”, NASCAR’s Gen Y Avid Fans love to share content; 91 percent of 18-34 year olds routinely share NASCAR content they come across. It has also been reported that more than 50% of avid NASCAR fans want to consume the sport on multiple devices when watching the race on TV.

Secondary TargetsSecondary targets will be sport spectators, NASCAR fans who have low income or live in isolated geographic regions that make it difficult to attend live races, and technology enthusiasts. We also want to target these market segments with our marketing strategies for this product partnership because it allows us the chance to spark an interest in the NASCAR fandom by introducing a one-of-a-kind high-tech sport viewing experience.

o Spectators➔ Spectators will be eager to try this product because it will completely change the way

they view the sport and will also send a message to consumers that NASCAR is dedicated to adapting to evolving technological era and the way fans engage with sport. According to a Forbes.com 2012 report, NASCAR is the No. 1 spectator sport, is broadcast in 150 countries, and it is the second-most-watched sport on TV (after the NFL).

o Technology Enthusiasts➔ Consumers who are willing to buy any new and revolutionary technology product on the

market will be interested in this NextVR and NASCAR partnership. Targeting this market segment not only grants NASCAR the opportunity to increase revenue and viewers, but potentially expand the NASCAR fan base by transforming technology enthusiasts into NASCAR fans through this action-packed broadcast.

o Low Income/Isolated Geographic region NASCAR fans➔ This product will also greatly appeal to NASCAR fans who are unable to afford tickets

or attend games because this technology will allow this market segment to experience NASCAR races from various up close angles in a way that is potentially more engaging than being present at the actual race event. The views and angles shown in the NextVR broadcasts make each viewer have a NASCAR experience that is beyond a front row

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seat. Many fans with low income are either unable to afford close seats or are unable to afford to travel long distances to attend a game, making this product a second best option, if not, first option, to watching live NASCAR races.

B. Product

Tangible product: Samsung Next VR HeadsetIntangible product: Next VR app that is to be downloaded to Samsung Phone that will feature a NASCAR channel that will take the viewer to a virtual reality broadcast of races and exclusive NASCAR footage. After the Samsung smartphone is placed securely into the headset as featured below, the NASCAR app is ready to be navigated by pressing the headsets touch panel and side buttons as primary controls.

This product that will be heavily driven and marketed based on the experience it provides to fans, consumers, and tech enthusiasts. The product will provide consumers with an unparalleled NASCAR fan experience that will help to draw them closer to the sport and refocus NASCAR’s reputation in the new digital era.

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According to the Samsung NextVR website, the Samsung NextVR Headset is a device that can provide virtual broadcasting and the ability to stream live sporting events in a 360-camera view. This platform allows individuals to experience memories like you never seen before. This device works through the Oculus app on exclusively Samsung phones (Works only with Galaxy S7, Galaxy S7 edge, Galaxy Note5, Galaxy S6 edge, Galaxy S6 and Galaxy S6 edge) that will be used to access the features on the Next VR device. The Samsung phones will be mounted to the front of the Next VR headset that will allow user to navigate the headset’s offerings through the headsets side touch panels and navigation arrows.

Once the free NextVR app is downloaded onto the user's smartphone, there will be the option to access different channels free of charge. This device works by multiple cameras at the event that will capture up-close footage of races in areas that audience members wouldn’t see on regular

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television broadcasts or even at the physical race. NextVR can capture camera angles and live video in areas such as tire changing station or behind the steering wheel of a NASCAR car.

NextVR gives users a never-before-seen look into auto-racing. This product channel will not be limited to solely NASCAR virtual reality live race broadcasts; the channel will also feature content that has already been recorded such as replays, past sporting events, interviews, and behind-the-scenes footage featuring drivers to help enhance star power in NASCAR. The advantage of this product compared to a 3D-TV is its ability to provide 360 views in a way that makes the user feel as if they are a part of the action rather than witnessing the action. Since this partnership has a high potential to increase the NASCAR fan experience, NASCAR and NextVR will work to address the disconnected feelings that individuals from our target market expressed in focus groups conducted during the Project EVOLVE Research. Many individuals expressed a difficulty in knowing who’s winning at live races and stated the sport lacked a personal connection with fans which we are hoping to solve with the partnership with NextVR.

C. Pricing

Samsung Next VR Headset price: $99.99

According to research firm Tractica, more than 200 million consumer virtual reality head-mounted displays (HMDs) will be sold worldwide by 2020. The company forecasts that consumer virtual reality hardware and content revenue will increase from $108.8 million in 2014 to $21.8 billion worldwide by 2020, with a compound annual growth rate (CAGR) of 142%.

For the VR headset to work, the consumer must also own a Samsung phone device (Works with Galaxy S7, Galaxy S7 edge, Galaxy Note5, Galaxy S6 edge+, Galaxy S6 and Galaxy S6 edge). The cost of the phone will depend on the consumers selected carrier, monthly package, and desired GB space. To offer a rough estimate of what it may cost a consumer to purchase a Samsung phone that will be compatible to work with the NextVR headset, we provided various phone, GB, package, and price options to illustrate the potential cost of owning a Samsung phone.

If a consumer were to purchase one of the Samsung phones that are compatible with the Samsung Next VR headset from Bestbuy.com, approximate estimates may range from:

Phone Model Carrier Price

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Samsung - Galaxy Note5 4G LTE with 32GB Memory

Verizon Wireless $249.99(w/ 2 yr contract) or $24.97 per month

Samsung - Galaxy S7 edge 32GB Sprint $299.99 (w/ 2-yr contract)

Or

24-Month Installments for

$31.25/mo.

Samsung - Galaxy S6 Active 4G with 32GB Memory Cell Phone - Gray

AT&T $19.84/mo.For 30 months with AT&T Next plan

Samsung - Galaxy S6 edge with

64GB Memory Cell Phone

Sprint$33.92/mo. For 24-Month

Installments

Or $349.99 for a 2-year contract

Benefits of Price and Target Market(s) Purchasing Power

Generation Y● According to a Advantage Solutions 2014 study surveying a nationally syndicated panel

of 1,000 respondents ages 18 to 34, it has been recorded that more than a third of Millennials spent $500 or more on electronics in the 2014 year alone. Generation Y views purchasing electronics as essential to everyday life. The feeling that our target market views electronics as “essential” to everyday life allows for the price of this product to potentially increase in the future as innovations occur since our market is inclined to buy the latest technology as long as the quality matches the higher price.

Children● Children influence the buying patterns of their families. By targeting children, NASCAR

creates an opportunity to influence entire families purchasing decisions. According to futureofchildren.org, experts estimate that two- to fourteen-year-olds have sway over $500 billion a year in household purchasing.

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Hispanics● In a 2010 Adage.com article titled, U.S. Hispanics Lead in Technology Purchases, it

reveals the immense Hispanic purchasing power and their consumer behavior. Terra and ComScore conducted an online survey of 2,300 respondents over the age of 13, including both Hispanics and non-Hispanics, between Sept. 13 and Oct. 18, 2010 that revealed, 43% of Latinos vs. 31% of non-Hispanics are favorable to viewing a major sports or entertainment event. Nearly 40% of those surveyed have or plan to buy the innovative 3D TV—8% already own one and 30% said they intend to buy one, vs. 4% and 18% respectively for non-Hispanics. Smartphone ownership tells a similar story, with 43% of Hispanics owning a smartphone/PDA vs. 36% of non-Hispanics.

What will make our broadcast attractive to consumers is the fact that it is solely for the Samsung VR headset that costs hundreds of dollars less than competitors such as the upcoming Playstation VR that will cost $399 and launch in October 2016. Those who choose to purchase the Playstation VR headset will also need to purchase a Playstation console which will adds to the overall product fee. We want to partner NASCAR with the most cutting-edge VR service provider that features a lower cost headset to appeal to a larger audience and gain consumer attention.

We also want the NextVR product to be accessible to everyone who wants the experience. Our goal is to affordably make the sport exciting through a new viewing experience to draw in a more youthful, technologically advanced, and diverse NASCAR audience that has the potential and capability of growing with the brand. Because of the affordability of our product and smartphone driven lifestyles of our target markets, this product is enticing to those who looking for ways to experience new technology and sport.

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D. DistributionAfter carefully analyzing where our target markets prefer to shop for electronics, it is wise to make the products main channel of distribution would be through:

● Mass merchandisers (Target, Walmart, etc.)● Electronic stores (Best Buy, Radio Shack, etc.)● Specialty stores (Samsung, AT&T, Verizon, etc.)● Online retailers

The bar graph featured on the next page is taken from the 2014 Advantage Solutions study surveying a nationally syndicated panel of 1,000 respondents ages 18 to 34 (Gen Y/Hispanics).

● The blue bar liner represents the younger portion of Generation Y who are known as the “impressionables”. According to the study, “ they may have part-time jobs. They’re college age, have lower incomes, and live in multi-person households. While this group is young and impressionable, they will attain higher incomes soon. Making a good first impression now will pay off down the road” (2014).

● The orange bar line represents the older portion of Generation Y who are the big spenders of the millennial generation. The study defines this category as the ones who graduated from high school, went to college, got a job and got married. They are most likely to be home owners and married with kids. They have jobs and hold a large purchasing power for this product which makes focusing on their needs a key driver to sales.

Since our target markets are heavy online users, we want to make this product available on online retail sites that are reputable and easy to navigate. Consumers would be able to buy the product from retail locations such as Best Buy, Amazon, and NASCAR Fan Experience Merchandise Booths at races. Since we want to target a more youthful and tech savvy

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demographics, offering this product on online website outlets is beneficial since Generation Y is an easy demographic to reach, with 81 percent of Gen Y using Facebook every day (Anderson & Kilibarda, 2015). The goal of distributing this product at an affordable price and at convenient retail locations and online sites is to make this product easy to obtain. The main goal for distributing this product is convenience which will lead to more products sold. If people are able to easily purchase this product and experience the cutting-edge live virtual reality viewing experience, NASCAR gains the opportunity to expand their fan base and attract a younger and broader audience.

E. Promotional Plan Focusing on Generation Y, children, and Hispanics as our target markets will require that our promotional and marketing efforts appeal to each market segmentation on their preferred communication channel. The NextVR product will be comparable and exceed the experience of attending a live NASCAR event by getting unparalleled action packed and exclusive footage unable to be seen or felt from the racetrack stands.

The success of NASCAR digital content bringing in 7.2 million followers in 2008 to watch NASCAR events presents the opportunity for NextVR to capture that audience as well (Simmons National Survey).

There are four strategies that we will use to achieve our promotional goals:● Advertising● Events/experiences● Direct marketing ● Sponsorships

Within all of these promotional strategies we want to ensure we are tailoring every approach to the A.I.D.A principle to ensure we capturing our targets attention and interest in a way that sparks a desire that leads to action (downloads, increase in NASCAR viewership, etc.)

Attention Interest Desire Action

PartnershipsOne of our marketing goals is to partner with companies that will help increase our brand awareness and also add to the content that the NextVR can provide. Partnerships that would be

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ideal to promote our partnership product will be streaming and broadcasting services that all members of the family can enjoy. ABC, Nickelodeon, Netflix, and Hulu would all be beneficial partnerships because they have the mass appeal and potential to draw in a large audience that can be exposed to NASCAR in a new and digital way.

AdvertisementsProviding advertisements on popular social media channels such as Youtube, Facebook, Instagram, and major sport channels will allow us to capture existing and potential fans. Digital marketing is essential to targeting our target markets because of their high technological usage which means we must bring our product to them on their prefered channels and adapt to new digital marketing. NASCAR’s PR and advertising agency, Ogilvy & Mather, will be involved in developing the campaign and projecting it on the most effective media channels that our target audiences frequently use.

While digital marketing is our primary focus we do not want to limit this product to just the web; we can expand the growth and awareness of this product by installing:

● Signage/banners- Racetracks, billboards, retail stores etc. ● Contests/Sweepstakes

Event PromotionDuring NASCAR events, we will have the audience try the NextVR device to build an experiential relationship between the user and the product. With having audience members being able to use to technology, it will give them a look on how the product looks, how it works, and what it provides for them. 98% of people who took the EventTrack survey said that seeing a product or service marketed through an experiential marketing campaign would make them more inclined to purchase it (Factory 360). This is an important statistic that we should take into account and build on when developing experiential marketing experiences that can influence consumers to buy a product. Capturing footage of audience members using the Next VR headset and giving positive reviews about the product can help us building advertising campaign that can be showed on screen during games or on television and online.

We will also have promotional items that will be raffled away during NASCAR events such as t-shirts that feature the saying, “NextVR, THE FUTURE OF NASCAR REALITY” with the logos of NextVR, NASCAR, and the Samsung headset on the back of the shirt. Social media will also be a heavily utilized promotional tool when promoting the NextVR/NASCAR partnership by using hashtags that can universally used an tracked across different digital platforms such as Twitter, Instagram, YouTube and Facebook. can catapult this new innovative product into the

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media and into the minds of consumers . The hashtag will be “VR-TO-NASCAR” which we can utilize by launching ad campaigns featuring pictures of people wearing the Next VR headset device over their eyes or wearing a shirt that says, “NextVR, THE FUTURE OF NASCAR REALITY” while standing in the middle of the race track, tire changing pit, or race car, which will help to grab the attention of consumers, tech enthusiasts, and NASCAR fans.

Section 6: Sponsorships

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This chart illustrates the different sponsorship packages we will offer to our corporations. Within the different sponsorship plan, companies will be able to choose what services best fit the promotional service that they would like. One company can think that it will be more suitable and effective to have e-mail marketing campaign to connect with ticket buyers while another company would appreciate visibility as a factor to promote their service or product through the uniforms of pit crew-members and competing cars. We have designed our sponsorship packages to be flexible in that way so any company can find a service that will help their organization and capture their audience that they are looking for.

● Video Game Developers (ex: EA Games) - By securing a sponsorship with a video game developer such as EA Games will provide NASCAR with more opportunities to take advantage of their NextVR partnership by potentially developing a video game for virtual reality. In the 2011 focus groups from Project EVOLVE, children stated that the official NASCAR video game was the “worst game ever”. A survey outlined by Gravity Media reveals that two thirds of American households own a video game or entertainment console, while 57% of "adults" aged 18-34 play video games at least three times a week according to "Forbes" contributor John Zogby. The objective of securing a sponsorship with EA Games allows NASCAR the opportunity to not only provide fans with virtual reality broadcasts and footage from live races but also provide their audience with a revolutionary video game that will capture the attention of gamers and expand the NASCAR appeal. NASCAR can attract the children, Hispanic, and Generation Y demographic and general gamer audience by introducing a new video game on an entirely new digital platform and transform their past perceptions of NASCAR’s video game approaches. EA Games will benefit from this partnership deal by generating revenue from every video game sold for the headset device and also gaining publicity and mass recognition for creating one of the first sport virtual reality video games.

● Gogo - Securing a sponsorship with Gogo, a company that provides wifi and entertainment

service for airplane flights, will allow for the Samsung headset gear to work while in-flight. According to the official Gogo.com website, “With 76% of North America's connected aircraft, Gogo is the leader in inflight internet, keeping passengers online, productive, and entertained inflight. Our premium platform is your chance to grab the attention of this otherwise unreachable audience and deliver the right message” (Gogo).The objective of securing this partnership will be to take full advantage of this product’s portability factor. This will allow traveling fans, children, and sport enthusiasts to watch broadcasts and engage in exciting NASCAR content no matter where life takes them. This partnership will also benefit Gogo by increasing the amount of people in need

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of their services when on an airplane. People often select to pay for one the various Gogo packages during their flight to obtain Wi-Fi for either their smartphone, tablet, or laptop. Incorporating a new product into the tech market will allow for more opportunities for their services to purchased and increase their brand awareness.

● Popular Children’s Media Companies/TV shows (ex: Nickelodeon, Disney, Spongebob etc.)

- Sponsoring with a media company such as Nickelodeon or Disney will allow for an increase in product exposure to the children demographic. The headset can be featured being used during Nickelodeon or Disney award shows, commercials, TV shows, and online content by some of these networks most popular stars. Children want to see their favorite TV characters and familiar networks ingrained into sport so that it instantly creates a familiar connection with youth. According to article from published by the Associated Press in May 2015, polls also have found that 37 percent of NASCAR fans have children under age 18. The objective of securing a partnership with networks such as Nickelodeon is to have children exposed to the product on their preferred communication channel to expand the NASCAR fan base and make it a sport for the entire family to enjoy. Children’s networks and TV shows can benefit from sponsoring this product by expanding their viewership and enticing parents who are fans of NASCAR to support their children's purchases influenced by these media sources.

● International Consumer Electronic Show 2017(CES)

-Showcase the product at the world’s biggest consumer electronic show. Showing the product at this event will allow for thousands of people to be exposed to the product, understand how it works, and test the product for themselves. While the headset is not exclusively made for NASCAR, NASCAR representatives can be present at the event and set up their own booth to showcase how the official NASCAR streaming app works on the Samsung headset. By putting the physical product in people’s hands and having them test it for themselves will open the doors for interested consumers who were confused about the virtual reality broadcast concept. Since there will be commercials and other sponsors promoting this product prior to this show, people will already have developed an anticipation and desire to test this product and see it perform. This will increase attendance for this show and overall boost the revenue due to guests, NASCAR fans, and sport/tech enthusiasts coming to see the show for this product.

● Snapchat -Securing a sponsorship with Snapchat is a key sponsor we should aim to secure if we want to reach a large portion of all three of our primary market segments. With over 100 million daily active users and 400 million snaps per day, Snapchat is one of the fastest-

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growing social networks. 71% of Snapchat’s U.S. users fall into the 18 to 34 age range (Generation Y/ Hispanics). According to a 2014 study conducted by Comscore, more than 40 percent of Hispanic millennials access the Internet solely through their mobile devices. These data findings show the importance of marketing this particular product through Snapchat because it will launch the product and display its use through utilizing the Snapchat geotag feature and “story” feature. The objective for securing this sponsorship is to showcase some of the exhilarating NASCAR angles that are featured through the Samsung headset. We want Snapchat users to get footage from the virtual reality broadcast in small 10-second Snapchat increments to entice the consumer and make them eager to want the product to experience the full effect and experience. This will draw in new NASCAR fans and stir up conversation and excitement about NASCAR amongst Generation Y, Hispanics and general Snapchat users. Snapchat will also reap benefits from this partnership because it will attract more NASCAR fans to download the app to use the geo-tag and get a sneak-peek at some of the virtual reality broadcast angles. This partnership will increase the number of Snapchat app downloads and generate an increase in revenue for both Snapchat and the Next VR/NASCAR product.

Section 7: Implementation

Factors That Will Influence ImplementationA. Lack of product awareness (Introduce audience to product concept, features, abilities)

● Many people are unfamiliar with the term and concept of “virtual reality”. This concept needs to be communicated and shown in various visual ways that allows consumers from every demographic, primarily Hispanics, children and Generation Y, to be intrigued and excited about a new tech experience.

B. Target Market● Consider how our primary target market’s might evolve as we begin to implement

our plans to market this product. We want to make sure that our plans to reach our target markets will be effective throughout each course of implementation.

● Generation Y, Hispanics and children are all on an upward trend in generating a large annual income, holding a large purchasing power, and steady interest in consuming electronics. In a recent August 2015 CNBC article titled, “How Trillion Dollar Millennials are Spending Their Cash”, by Holly Ellyatt, Sarbjit Nahal, head of Thematic Investing at Bank of America Merrill Lynch, told CNBC, that in terms of the workforce and by 2018 millennials are going to overtake the boomers and by 2025 they will account for over $8 trillion worth of annual net income. These are promising numbers and anticipated trends

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considering our product will be continuing to evolve throughout the years and it will be key to appeal to this powerful target market.

C. Competition● Knowing our competition and how they incorporate their product into the market

is key to mapping our beginning implementation stages. Competitors, such as Google, have launched a similar virtual headset product for a much lower price ($14.99-$199.99) called Google Cardboard but they have yet to partner with a sport to bring a live virtual reality broadcast.

D. Budget● NASCAR has a large budget set aside for marketing, which places few

restrictions on our marketing abilities. Working with NASCAR’s PR and Marketing agency, Ogilvy & Mather, will help NASCAR to showcase what their NextVR sport channel is all about and how they are the first in sport to officially sign a deal with NextVR to change the way fans/consumers receive content and ground-breaking sport visuals.

E. Economy● Inflation, employment, taxes, loans etc. are a few economic factors to consider

when implementing this plan and targeting our new target markets. We want to make sure that our channel is going to be widely accessible and not hindered by lack of Samsung phone consumers or individuals unable to afford the headset product to view our NASCAR channel.

Implementation StagesSTAGE 1: Launch a Multi-Platform Campaign/Ad

● Due Date: July 2016-August 2016● Who’s Responsible: Jill Gregory, NASCAR Vice President of Marketing department

and Ogilvy & Mather, NASCAR’s public relations, marketing, and advertising agency team.

● Objective(s): Generate product awareness.

NextVR’s ability to provide virtual reality broadcasting of sport is a new technological concept that needs to be introduced to our tech-driven target markets through a multi-platform campaign that combines digital marketing, traditional marketing, and creative ways to attract fans.

1. Develop a campaign advertisement that will feature a variety of professional drivers, celebrities, children, hispanics, and individuals from the Generation Y demographic wearing the Samsung NextVR headset. The individual wearing the headset will be sitting on a common living room furniture piece (couch, recliner, etc.) in the middle of a blurred race tracks and race

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cars whizzing behind them. We want the images to be vivid and to capture the core essence of the product, which is bring the most revolutionary action-packed sport viewing experience to home viewers.

2. Develop a YouTube video that displays visuals from virtual reality NASCAR broadcasts. Many people are unfamiliar with virtual reality broadcasting and we want the partnership with NASCAR to be NextVR’s “claim-to-fame” and top-viewed broadcast. We want this YouTube video to show the ease of use, portability, and the excitement of the product. In order to gain our target audiences attention, we need to bring the product to them in a compelling way and on various digital platforms that they frequently use (Television, YouTube, Instagram, Facebook, Twitter etc.) to boost awareness and desirability.

3. Launch a social media campaign with a hashtag that encourages viewers to post a picture with the same hashtag to promote the product. Using a hashtag on social media will allow our market research team to easily track who has participated in the campaign and its overall success. Target smartphone apps that are available on Samsung phones, such as Snapchat, Instagram, and Twitter, and also on websites such as Facebook.com. These websites account for a large percent of social media use and they should be heavily considered when launching a campaign to showcase this partnership deal and product. Digital marketing should be a key marketing platform for this product because it informs consumers of all the information they need to know such as launch date, when to buy, where to buy, and what the product does in one digital format.

STAGE 2: Product Promotion through On-Flight Rentals ● Due Date: September 10th 2016● Who’s Responsible:

○ Gogo (Linda Ramsey, SVP of Marketing at Gogo and Mark Verone, VP of Global Operations at Gogo)

○ Gogo’s 12 airline partnerships, (Aeromexico, AmericanAirlines, Air Canada, AirTran Airways, AlaskaAirlines, Delta Air Lines, Japan Airlines, United Airlines, US Airways, VietnamAirlines, Virgin America and Virgin Atlantic)

○ Julia Hawley, Senior Global Account Executive at Ogilvy & Mather ○ Jill Gregory, Vice President of Marketing at NASCAR ○ Jon Schwartz, Integrated Marketing Communications Director at NASCAR

● Objective(s): Drive Consideration and Generate Conversations ○ Give consumers the opportunity to test the VR headset in a creative way and in a

unconventional in-flight setting. Make the Samsung NextVR Headset be available to rent during Gogo’s airline partners on-air flights by September 10th in anticipation of traveling fans to Chicago, IL for the September 18, 2016

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NASCAR Sprint Cup at Chicagoland Speedway. Passengers on the flight will be able to view exclusive NASCAR driver content, race footage, and showcasing content about the upcoming race.

Not only will this allow us to put the product in the customer's hands and allow them to have a first-hand experience with using the product, it will revamp NASCAR’s consumer perception and show NASCAR as a leading sport dedicated to adapting to new media and the evolution of how consumers get their content. Passengers can then return their rental or purchase the product at their destination airport Gogo kiosk booth that will offer a range of NASCAR merchandise and showcase the headset product for sale along with a poster campaign of the product with details of how the product works, the app, and its primary use. Before returning the product, the customer will have to submit a quick review via the NextVR NASCAR channel that will include a likert-scale rating option and a chance to submit their personal feedback. This will allow our market research team to gauge initial reactions to the product and ways we can improve as the product progresses in its lifecycle.

STAGE 3: Continue to Build Brand Loyalty Amongst New Target Markets● Due Date: Ongoing● Who’s Responsible: NASCAR Marketing team and Ogilvy & Mather’s NASCAR

account employees● Objective: Keep the NASCAR name, sport,and new VR digital efforts relevant to our

target markets. Keep innovating and gathering consumer feedback about the VR broadcast to continue to update the NASCAR VR app so that it is tailored to our consumers evolving wants and needs.

● How: For every NASCAR VR channel download through the NextVR app, consumers will receive a first time 20% off coupon code for the NASCAR merchandise shop that can be used at merchandise kiosks at races and on the online store. This will show NASCAR’s appreciation for their fans and help to foster brand loyalty. We want consumers who view NASCAR through the VR headset to be completely immersed in the revolutionary visuals to the point they can’t get enough of everything NASCAR. Showing fan appreciation through coupon codes, contests, and social media shout-outs will make fans of our target market demographics feel connected to NASCAR on a level they have not previously been.

Section 8: Control and Evaluation

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Based upon our channels of distribution, promotion, and implementation for this product we will be able to track the success of our marketing efforts by tracking and analyzing:

Google Analytics Using Google Analytics, the user engagement tracker powered by Google, to help track and record visitor’s actions while on the NextVR.com/NASCAR website and also on the official NASCAR.com website. The detailed data provided by Google Analytics will allow us to gain an understanding of the campaigns success at attracting users to not only the headset product and NASCAR channel but to the NASCAR sport and brand. Google Analytics provides market researchers with the ability to track which campaigns bring the most traffic and conversations which will be critical data to reveal with this new VR channel launch.

Google Analytics can also provide:● SEO Position● Click-Through Rate (CTR)● Geographic/Demographic information about visitors (Did we reach our Hispanic,

Children and Gen Y target markets?)● The sites “stickiness” (stickiness = frequency of visits x Duration of Visit x Site Reach )

Social Media Effectiveness Track the amount of “likes”, “shares”, “retweets”, “views” and comments each campaign post/video receives on its various social media platforms. Use sites, such as TweetReach.com, which can provide powerful Twitter insights that will measure event hashtags and article headlines.

Gogo Rentals SoldRetrieve quantitative data that reveals the amount of Gogo headset on-flight rentals, required survey responses from user, NASCAR channel downloads, and post-flight product purchases from Gogo. This information will give us an understanding of the success of the partnership with Gogo and also if passengers enjoyed the VR experience of NASCAR in-flight. We will be able to get immediate consumer responses to the channel and product which are crucial to obtain to craft future marketing strategies for this channel.

Sales/ROIReview the sales data and ROI to reveal if the campaigns and marketing strategies drove sales and increased the purchases made by target markets. Paying attention to competitors or other sports organizations marketing actions and partnerships is also critical to evaluating success of the campaigns. If there is an increase in VR imitators and sport organizations developing their own VR channels, it may serve as an indication our marketing strategies have been successful.

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RESOURCES

Anderson, E., & Kilibarda, V. (2015). NASCAR: Leading a Marketing Transformation in a Time of Crisis. doi:10.4135/9781473970885

Gaudiosi, J. (2016). Over 200 Million VR Headsets to be Sold by 2020. Retrieved May 12, 2016, from http://fortune.com/2016/01/21/200-million-vr-headsets-2020/

Gray, R. (2016). FOX Sports teams with NextVR to broadcast live sports in virtual reality | Fox News. Retrieved May 12, 2016, from http://www.foxnews.com/tech/2016/02/17/fox-sports-teams-with-nextvr-to-broadcast-live-sports-in-virtual-reality.html

Hall, A. (n.d.). The Marketing of Nascar. Western Kentucky University.http://college.cengage.com/business/modules/nascar_module_secure.pdf

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NextVR http://www.nextvr.com/

Orzzzzhttp://orzzzz.com/ces-2015-what-to-expect-at-the-worlds-biggest-tech-expo.html

Where NASCAR should look for growth. (n.d.). Retrieved May 12, 2016, from http://www.sportsbusinessdaily.com/Journal/Issues/2014/02/17/In-Depth/Survey.aspx

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