Who Does What
Healthy Market For Auto Parts Bolsters Sponsorship Activity From Largest Retailers
10/5/09: With many consumers holding onto their older vehicles and delaying new purchases until the economy rebounds, auto parts retailers that supply both professional mechanics and do-it-yourselfers are doing a steady business, and thus represent a good prospect for properties to target.
According to the Automotive Aftermarket Industry Assn., U.S. sales of motor vehicle aftermarket products are expected to rise 4.5 percent next year.
Industry consolidation has fostered new spending and the creation of more retail brands with national presence could give rise to further activity as competition heats up.
Biggest mover recently: O’Reilly Automotive, Inc., which last year purchased CSK Auto, Inc. and its four retail brands–Checker, Kragen, Schuck’s and Murray’s, all of which it has rebranded by adding the O’Reilly name to the existing moniker. To leverage its new national presence, O’Reilly late last year signed official auto parts retailer status with NASCAR.
While auto parts retailers have historically focused on NASCAR, NHRA and other motorsports properties, a growing number of players are aligning with non-endemic properties ranging from nonprofits to college athletics to pro sports teams.
Auto Parts Retailers: Who Does What
Advance Auto Parts, Inc.
5008 Airport Rd., NW
Roanoke, VA 24012
Jamie Woods, director of sponsorship marketing
540/362-4911
Targets / Objectives / Key Activations: Country’s second-largest single-owner auto parts chain centers sponsorship activities on three types of properties: college sports, NHRA and monster truck shows. Uses sponsorship to reach both the do-it-yourself and professional installer markets, although it is increasingly using sponsorship to reach the latter. Frequently activates to drive store traffic. For example, leverages Big South Conference by offering free conference-themed posters at stores, and has activated University of Kentucky basketball with a promotion offering a free gallon of windshield washer fluid when the team has 35 or more rebounds at home games. Has partnered with JDRF to raise more than $16.5 million through p-o-p paper sneaker sales and other fundraising efforts over the past 15 years. Operates more than 3,300 stores in roughly 40 states and Puerto Rico.
Decision-making Structure: Woods screens and signs off on deals with input from Cathy Hall, vice president of marketing, and other marketing staff.
Current Sponsorships: Title: Cruz Pedregon Racing NHRA Full Throttle Drag Racing Series team. Cosponsor: Bassmaster Tournament Trail; Big South Conference; Juvenile Diabetes Research Foundation Int’l; Monster Jam; NFL Green Bay Packers and Tampa Bay Buccaneers; North Carolina State University athletics; Syracuse University athletics; University of Kentucky athletics; University of Virginia athletics; Virginia Tech athletics; West Virginia University athletics.
Additional Comments: Introduced Big South Conference to vendor Royal Purple, Inc., which signed with conference last year; the motor oil brand gains exposure on conference-themed posters distributed in Advance stores.
AutoZone, Inc.
123 S. Front St.
Memphis, TN 38103
Lisa Kranc, senior vice president of marketing
901/495-6500
Targets / Objectives / Key Activations: Nation’s largest single-owner auto parts retailer, which operates roughly 4,100 stores, primarily sponsors sports, causes and other types of properties located near its headquarters. Uses sponsorship to demonstrate corporate citizenship and engage employees. For example, sells complementary Memphis in May tickets it receives from the event at a discount to employees as a fundraiser for the property. Has sponsored ALSAC/St. Jude Children’s Research Hospital since ’06, around which it raises funds through the nonprofit’s Thanks and Giving campaign.
Decision-making Structure: Kranc reviews and signs off on ties after receiving input from Trina Poquette, director of communications & community relations, and other staff.
Current Sponsorships: Title: Liberty Bowl; AutoZone Park minor league baseball stadium, Memphis. Cosponsor: ALSAC/St. Jude Children’s Research Hospital; ArtsMemphis; Brooks Museum, Memphis; Children’s Museum of Memphis; Memphis in May; National Civil Rights Museum, Memphis; NBA Memphis Grizzlies and New Jersey Nets; Orpheum Theatre, Memphis; Southern Heritage Football Classic presented by FedEx; Triple-A Memphis Redbirds.
Additional Comments: Contract with college football’s Liberty Bowl runs through ’13. Advertises during NASCAR TV broadcasts to promote its Duralast private-label brand of automobile batteries, but has dropped NASCAR series and team sponsorships from the middle of the decade.
NAPA Auto Parts
Genuine Parts Co.
2999 Circle 75 Pkwy.
Atlanta, GA 30339
Gaylord Spencer, vice president of marketing strategy
770/953-1700
Targets / Objectives / Key Activations: Genuine Parts Co. is largest member and majority owner of National Automotive Parts Assn., a voluntary trade association that distributes auto parts nationwide and franchises the NAPA brand. GPC operates about 1,100 NAPA Auto Parts stores–out of a total of 6,000-plus NAPA U.S. locations–in more than 40 states. Sponsors to build relations with two key audiences: independent retailers who operate NAPA stores and their customers. Highest profile partnership is Michael Waltrip Racing’s NASCAR Sprint Cup Series team, a relationship it promotes through TV ads with the owner/driver. Extended the MWR tie in a multiyear renewal signed this summer, titling a car driven by Martin Truex, Jr. beginning in ’10 as Waltrip takes a step back from full-time racing. Expanded its partnership with Susan G. Komen for the Cure from a $100,000-minimum commitment in its first year with the cause in ’08 to $250,000 for ’09. Komen relationship ties in NAPA AutoCare Centers in addition to parts stores, with promotions themed to importance of preventative maintenance for both bodies and automobiles. Sponsors soccer to build its presence with Hispanic audiences.
Decision-making Structure: Spencer reviews and signs off.
Current Sponsorships: Title: Don Schumacher Racing NHRA Full Throttle Drag Racing Series team; Michael Waltrip Racing NASCAR Sprint Cup Series team. Cosponsor: ArmDrop Live amateur drag racing series; Goodguys Rod & Custom Assn. car show tour; Mexican National Soccer Team U.S. tour; MLS; NBA New Orleans Hornets; Susan G. Komen for the Cure.
Additional Comments: Activating “All Out for the Cure” Komen partnership by distributing co-branded travel mugs to consumers who spend at least $25 in participating Auto Parts stores or AutoCare Centers in October; also will display a Komen paint scheme on its NASCAR and NHRA cars during two races in October. Presents the Pinks All Out amateur drag racing reality program on Speed TV, which also grants exposure at tracks where competitions are filmed, similar to ArmDrop Live events across the country. Leverages both by distributing $5 general admission discount coupons at local stores. NAPA also sponsors three outdoor/hunting-themed TV programs: NAPA North to Alaska on Versus and The Jackie Bushman Show and Buckmasters on Outdoor Channel.
O’Reilly Automotive, Inc.
233 S. Patterson Ave.
Springfield, MO 65802
Doug Ruble, vice president, advertising & marketing
417/862-6708
Targets / Objectives / Key Activations: Became third-largest single-owner auto parts retailer in the U.S. last year following acquisition of CSK Auto, Inc., a tie that expanded company’s presence in Western states beyond its Midwest and Southeast footholds. CSK purchase gave O’Reilly four new auto parts brands: Checker Auto Parts; Kragen Auto Parts; Schuck’s Auto Supply and Murray’s Discount Auto Stores. Has rebranded each chain by adding the O’Reilly brand to the existing name. Focuses on NASCAR and NHRA teams and tracks, with O’Reilly this year kicking off a new multiyear partnership as official auto parts retailer of NASCAR. Reportedly has scaled back relationships with tracks following NASCAR deal. In addition to motorsports, also sponsors pro sports teams, community festivals and other types of non-endemic properties. Operates more than 3,200 stores in 38 states–1,900 are branded under the O’Reilly name while 1,350 are co-branded chains acquired through the CSK acquisition.
Decision-making Structure: Ruble vets and screens proposals. Prefers proposals be sent via email to Druble@Oreillyauto.com.
Current Sponsorships: Checker O’Reilly Auto Parts: Title: NASCAR Sprint Cup Series race, Phoenix. Kragen O’Reilly Auto Parts: Title: NHRA Full Throttle Drag Racing Series race, Pomona, Calif. Presenting: Cruisin’ Grand, Escondido, Calif. Cosponsor: MLS Los Angels Galaxy. O’Reilly: Title: Two NASCAR Nationwide Series races, Texas Motor Speedway; NASCAR Camping World Truck Series races, Bristol, Tenn.; Kansas City; Raceway Park, Indianapolis; NHRA Full Throttle Drag Racing Series races, Dallas; Houston; Memphis, Madison, Ill.; Topeka, Kan. Presenting: NASCAR Camping World Series race, Memphis. Cosponsor: Bristol Motor Speedway; Buc Days, Corpus Christi, Texas; Darlington Raceway; Gateway Int’l Raceway; Kansas Speedway; Memphis Motorsports Park; Missouri State Fair; NASCAR; Price Cutter Charity Championship, Springfield, Mo. PGA Tour Nationwide Tour stop; San Antonio Stock Show & Rodeo; Texas Motorplex, Ennis.
Additional Comments: NASCAR deal affords exclusivity in the auto parts retailer category and title of season-ending awards in the Sprint Cup and Camping World Truck series. Sponsors local and regional car and truck shows, including next month’s Competition Sounds Heatwave in Corpus Christi, Texas.