Earl from Yakima, WA asks, "Would it be a foolish marketing decision if Budweiser decides to end its sponsorship of NASCAR driver Dale Earnhardt, Jr.?"
Officials at Budweiser should be doing naked keg stands to ensure that the beer remains on Earnhardt's car when he debuts for Hendrick Motorsports next year in the No. 5. That's apparently not the case, since reports are emerging that Budweiser is courting Kasey Kahne for Budweiser's sponsorship.
Earnhardt has become almost as synonymous with Budweiser as the Clydesdales, and there is no better combination to sell merchandise than the union of Budweiser and Earnhardt. Why on earth Budweiser would want to end this marketing marriage made in heaven is beyond me. I can only surmise that age is contributing a factor, and Budweiser wants to appeal to a younger demographic, and they believe fans of Kahne fit into this demographic.
They're right — Kahne's fan base does offer a younger demographic. Unfortunately, the consumers within that demographic are too young to drink, and probably not the gender for which Bud is looking. In fact, there is probably not another driver in NASCAR who possesses all of the desirable qualities of Earnhardt that maximize marketability. These qualities include a legendary legacy, a blue collar ideal, and a persona that seems approachable to fans of all ages.
Can you picture Kahne adorning a 24-ounce can of Budweiser? That's sacrilege. You know what Earnhardt fans would do with that? They'd drink it. That's not fireplace mantle or curio material right there. When Budweiser puts Earnhardt's image on a can, fans buy twice as much beer — half to drink and half to collect. And Earnhardt's name or face on apparel, flags, banners, toilet seats, etc. is an even more lucrative business.
Don't get me wrong. Budweiser drinkers will continue to drink their brand regardless of who Budweiser sponsors, but I can't see merchandise sales even approaching the numbers and dollars reached under the Earnhardt-Budweiser partnership. Dale, Jr. appeals to the working class and the upper class; attach his name to any Budweiser product, and it will sell. When I think of Kahne, I don't think of beer; I think of a strawberry daquiri or some fruit-flavored alcoholic beverage. I don't believe that's the drinker Bud wants to invest in.
Earnhardt has already secured endorsement deals will two huge and well-known corporations, Sony and adidas. Maybe Budweiser doesn't want to share Earnhardt with those two giants. I see Sony and adidas as brands geared toward a younger demographic. Wouldn't it make sense for Budweiser to continue sponsoring Earnhardt and automatically benefit from the younger consumers attracted to the Sony and adidas brands? How many people do you know with PlayStations wear adidas and drink Budweiser? Even if you don't know any, you probably would if Earnhardt retained the Budweiser sponsorship.
If Bud doesn't pony up and resign Earnhardt, then they would be making as big a mistake as Teresa Earnhardt for letting Dale, Jr. leave DEI. I'm sure Hendrick Motorsports hoped Bud was staying with Earnhardt when they quickly snatched him up. And with Sony and adidas hurriedly affixing their names with Earnhardt, it's obvious he still holds a powerful marketing stance. The King of Beers should remain with the King of Merchandising.
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July 13, 2007
Jeff:
There is an article today on espn.com confirming Junior won’t have Bud as his primary sponsor in 2008, but it seems to have been a decision made by Hendrick Motorsports, not Budweiser. Nonetheless, Earnhardt will still be involved with Bud thru 2008, as he has a personal services contract with them.