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June 19, 2007

Comments

steve

Like I said in my post--I will be glad to take the crap if I'm wrong. But, i stand behind my MD prediction. There are a couple of basic flaws in the Monster Drink theory. First, while Hanson Natural Corp, maker of Monster, has a reputation for high advertising budgets, they balked at a partial sponsorship of Robbie Gordon earlier in the year. That throws up a huge red flag in my mind. If a company is willing to spend upwards of 30 mil to sponsor a Hendrick team full time, getting their feet wet with Robby would have given them a "view" of the sport. They opted (chickened) out. Secondly, Monster is heavily into sponsoring motorcycle racing, a much more cutting edge group of 20 somethings. For Monster, NASCAR is too stodgy. Yes--too stodgy. Sorry.

The Nike thing won't happen either, unless Nike has developed an entire line of racing apparel, much like Puma has. As a matter of fact, Puma makes much more sense than Nike ever did. At least Puma has an entire line of racing clothing, shoes, gloves and nomex underwear. Puma can be seen on a large amount of European race teams.

Visa--just no way. There is too little to be gained by Visa for the amount of money invested. Brand loyalty being what it is in NASCAR, most consumers don't rally care which credit card company is charging them 28% interest.

This all brings us back to the Mountain Dew brand of PepsiCo and a relationship that is firmly entrenched with Hendrick Motorsports. Corporate relationships that go back this far and have been slowly nurtured, pay big dividends. Hendrick, Junior and Pepsi (aka Mountain Dew) are a match made in heaven for all three. Thank God that the NASCAR world will once again be singing the praises of the "Dew Crew" on pit row, instead of the rainbow warriors.

charlie

As I said, I think your theory has a lot of merit. Junior really fits with the Dew's attitude too. But don't discount the Nike possibility totally. They won't be spending the dollars needed just to sell racing gear, like Puma does. Dale Jr. is a cultural icon who's influence, much like Tiger Wood's, goes beyond his sport. Dale Junior would sell Nike gear just as Jordon and Woods have. I like both possibilities, but you are the first that I've heard with the Dew idea and we shall see.

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