What sport has created a true lifestyle brand built on relationships between “players”, fans and sponsors and is selling over $1.4 billion annually in licensed products?

Answer:

Look no further than the racetracks for one of the fastest growing sports in the United States…NASCAR.

Source: 2003 Official Retail Guide: NASCAR (2003 Marketing Guide)

From Left to Right: Elizabeth Alligood, Megan Huffman, Susie Fleming, VF Jeanswear; Monica Jop-Zimeri, and Tiffany Williams

Dr. Cassill’s TAM 482 Global Textile Marketing students were given a challenge that rivaled the excitement of a NASCAR race. Teams of students embarked on a new semester with a challenge to develop a performance fabric and detail based textile product and the marketing and sourcing plans for the product for the 2005 NASCAR racing season.

Combining the education components of design, product development, sourcing, and marketing a classroom of diverse backgrounds came together to form innovative teams to tackle a “real world” challenge.

The challenge consisted of five main components with specific tasks of which the teams were asked to complete, at intervals throughout the semester.

Note: Project adapted from R. Kean and C. Rees project.

For those students unfamiliar with the current impact of NASCAR as the fastest growing sport in America, students certainly got a driving lesson this semester. The students’ research took off immediately with article scans, and general internet searching. NCSU Business Librarian, Susan Wolf-Neilson of NCSU Libraries shared research strategies and resources with students, helping them to gather product, country, and market data. She guided students through various research tools available through the NCSU libraries. Students utilized various databases such as STAT-USA and ABI/INFORM GLOBAL and websites of organizations such as the US Office of Textiles and Apparel, the Bureau of Labor and Statistics, the World Bank, and the World Trade Organization.

In addition to information on database searching, throughout the course of the semester, industry and government representatives visited the class and presented on topics relevant to their NASCAR product development challenge.

Ross Haymes Insert Title of Burlington Industries discussed trade agreement issues with the class, providing information the class teams could use to make sourcing decisions for the manufacturing of their products. These guidelines aided students in developing a guideline for suitable sourcing locations for their products.

Susie Fleming, Import Package Product Manager at VF Jeanswear, visited the group to talk about issues that her division faces and those that were pertinent for the students to understand when analyzing production capabilities and infrastructure challenges of possible source countries. Students were informed of global and sourcing issues to consider for their NASCAR licensed products, such as political concerns, price and competition strategies, lead times, time differences, technology and language communications, and cultural differences.

Fred Burke, President of Gem-Dandy, brought a perspective of a NASCAR licensee to the class. In addition to discussing his company’s transition from its role as a manufacturer to a marketer of leather wallets, belts, and other accessories, Mr. Burke raised the issue of the power of the NASCAR brand and what it has meant to the success of his company. He covered many guidelines to follow when developing a new product for a specific brand, from assessing the risk of pursuing a gap in product coverage to achieving balanced distribution by channel. His leave behind message that there “is no such thing as a commodity,” as a result of successful branding strategies reminded students of the opportunities that are created with a strong marketing strategy.

Derek Chen, Business Development Manager for Transportation and Automotive Equipment at the North Carolina Department of Commerce, represented the government perspective in the class. He offered important data concerning the impact that NASCAR has on the North Carolina economy, amounting to more than $1.5 billion annually. The importance of NACAR on North Carolina currently is being studied by Chen and others under a Golden Leaf Grant. In addition, the North Carolina General Assembly has formed a Motorsports Caucus to promote the growing industry, which has the highest economic impact of any sport represented in the state.

From Left to Right: Derek Chen, NCDOC; Allison Smith, Phillip Corriher, Meghan Corcoran and Tiffany Williams

Don Rothwell, Managing Director of Licensing Retail Development at NASCAR, came to the class to share specifics on the demographics of the NASCAR fan base, as well as NASCAR licensing strategy and development. Students were required to understand the procedures that typical companies must adhere to when seeking a NASCAR license; therefore, Mr. Rothwell explained how licensing terms, fees, and royalties are issued and the typical procedure a company must follow to obtain a license. He stressed the importance of a sound marketing and business plan for companies pursuing a license, as this is a major indication of a product’s future success.

To conclude the industry representatives’ presentations, Mark Messura, Vice President Strategic Planning, and Dennis Horstman, Director, Brand Marketing, represented Cotton Incorporated. Mr. Messura brought up the importance to Cotton, Inc. of identifying the points of influence along the supply chain to meet various goals. Identifying these points and understanding how to influence decision makers in the supply chain by performing extensive consumer and market research, he explained, is vital to achieving a growing demand and profitability for any company or industry. Mr. Horstman covered the importance of a company’s global focus and awareness and how a company allows these values to drive differentiation in the mind of the consumer. Together the two impressed up on the class the value of relationship marketing of a particular brand, an idea very applicable to the students’ own marketing plans concerning NASCAR products and the sport’s loyal fan base.

From Left to Right: Don Rothwell, NASCAR; Husnu Erenli, Monica Jop-Zimeri, and Amaris DellSanti

When speaking with several students regarding their experiences with the projects and the industry interactions within the classroom, many noted that the guest speakers from industry, government, and education added significant and beneficial assistance and research aid as they developed their products and marketing plans, while aiming to achieve a NASCAR license. “The speakers were a great addition to the class and really helped to connect projects with the real world.” commented senior Textile and Apparel Management major Megan Huffman.

Tiffany Williams, a business major whose first introduction to classes at the College of Textiles was her experience in TAM 482. “Having never taken a textile course or even going over to Centennial Campus while at NCSU, it was a real eye-opener to know how many careers are available in the textile industry.”

The cullmination of the project experience were the team presentations of new textile products for NASCAR, including nonwovens, apparel, industrial, and home textile applications.

Phillip Corriher, a Textile and Apparel Management senior reflected on his experience with the class and project. “I think these types of classroom experiences are just as important as lecture. I feel this way because, at this stage in my education, I need more application of what I know than simply piling more information on top of it. These speakers were a great way of promoting that type of application for me because I felt as if I were making contact with the real world in which businesses thrive, survive or die, not just the theoretical world of class lecture.”

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Last Site Revision:
January 16, 2004