Marketing & PR – Formula One in America

By Liam Fisher

Why Formula One?Action Plan – Formula One, notably referred as F1, is one the most followed sports around the world, and statistics show that during the course of the 2010 season, 527 million people tuned in to watch it. However, in modern times, F1 has come under much scrutiny, with many great drivers of the past stating that the sport is 'too safe' and 'losing its dangerous nature', which is why there is a theory among the F1 community and F1 paddock that the reason F1 isn't popular among the Americans is because the sport doesn't bring much action like it use to.

F1 is often referred to as a 'rich mans sport', and yes it probably is; some tickets (weekend passes) costing over £1,000. However, many people do not know that F1 and F1 teams in general are actually struggling financially. Yes, the drivers are paid huge amounts of money, although the mega bucks are not coming from their respected teams, its their sponsors. Some teams cannot afford to pay the best drivers, so turn to 'pay-drivers' (Drivers who are paid by sponsors and do not require wages from their teams), this means that some of the more technically gifted drivers are missing out on seats in F1 as they are not financially backed by massive conglomerates.

So as we established F1 is suffering financially, and what better way to turn this around is there than to conquer America. The United States of America hasn't been affected as much by the recession than the Europe has, so companies can afford to sponsor F1 teams and help them afford the best. But why? The sport doesn't hold any relevance to America at all, with no American drivers or manufactures competing, not to mention the fact that its too safe for them; why bother watching technically gifted drivers and teams compete in F1 when you have 50 cars competing in an arena where the only direction they can turn is left?

In order for F1 to benefit financially, F1 needs to be successful in America and with only one major competitor (NASCAR), it shouldn't be a problem, as the only real problem for F1 in America is relevance.

Our Objective –

Ultimately, the primary goal of my campaign is to achieve a bigger audience, for Formula One in America only.

with the opportunities available in the USA, it’s imperative that this sporting relationship regains a positive atmosphere, for sporting and financial reasons. What we have to consider, is that the auto racing industry, in the USA, isn’t majorly competitive, with NASCAR controlling it, which is primarily overpowered with American drivers. Another consideration, is that F1 lacks American drivers, teams, and sponsorships, so in some way, it could be seen that the sport is completely irrelevant to the nation. However, the annual revenue and income that American sports generate is staggering and benefit the sporting industry financially, as well as create a positive image to the sporting community.

Target Audience – Socio economic grading & Demographic profiling

For this particular campaign, the target market is for an American audience ONLY.

F1 is primarily a male dominated/orientated sport, due to the technicality, mechanics and aerodynamics used. However, the female perception of the sport is becoming more and more positive now we’re in the 21st century, and its now ‘acceptable’ for females to enjoy sports with male heritage. F1 is also considered a sport that ‘rich’ men enjoy, however, this interpretation couldn’t be more wrong, as many working class (engineers and mechanics) people can relate to what’s happening off-track.

· Men aged 18-70 (Men who can relate, and/or already enjoy the sport)· Young females aged 7+ (In recent times, more and more young girls enjoy sports dominated by males)

Socio Economic Grading – • A – Higher managerial, administrative, professional eg: chief executive, surgeon, university professor etc• B – Intermediate managerial, admin, prof.eg: bank manager*, teacher, civil servants etc• C1 – Supervisory, clerical, junior management eg. sales person, bank clerk, retail manager.• C2 – Skilled manual workers eg: electrician, carpenter, builder etc

Competitive Environment – Who is the competition?• The National Association for Stock Car Auto Racing (NASCAR) is a family-owned and operated business venture that

sanctions and governs multiple auto racing sports events. NASCAR is the largest sanctioning body for stock car racing the United States.

• NASCAR has over 75 millions fans that purchase over $3 billion annually in licensed products, however, this figure has been in decline since the early 2000s.

• Over ¾ of NASCAR’s fan base are from The United States of America.

• With F1 in the decline in America, there isn’t a major competitor in terms of motor racing for NASCAR.

• Market research data shows that Formula 1's competitors in America do not rely on advertisements and promotion to engage with their audience, as NASCAR for example is huge in America. However, you could argue that NASCAR is predominantly American only and is relatively small across Europe and Asia. Despite the fact that NASCAR is small across other continents, they still do not advertise globally.

Marketing Strategy – Tools & TechniquesUltimately, the primary goal of my campaign is to achieve a bigger audience, for Formula One in America only.

with the opportunities available in the USA, it’s imperative that this sporting relationship regains a positive atmosphere, for sporting and financial reasons. What we have to consider, is that the auto racing industry, in the USA, isn’t majorly competitive, with NASCAR controlling it, which is primarily overpowered with American drivers. Another consideration, is that F1 lacks American drivers, teams, and sponsorships, so in some way, it could be seen that the sport is completely irrelevant to the nation. However, the annual revenue and income that American sports generate is staggering and benefit the sporting industry financially, as well as create a positive image to the sporting community.

Market research data shows that Formula 1's competitors in America do not rely on advertisements and promotion to engage with their audience, as NASCAR for example is huge in America. However, you could argue that NASCAR is predominantly American only and is relatively small across Europe and Asia. Despite the fact that NASCAR is small across other continents, they still do not advertise globally.

The way I'm going to achieve this is:

• Partnerships / Sponsorships

• American manufactures and drivers

• Celebrities

• Promotion

• Charity

• Events

Marketing Strategy – Tools & Techniques: PartnershipsIn the 2012 F1 Season, Sauber F1 and Chelsea Football Club sponsored each other and advertised each other in sporting events. For example, Chelsea Football Clubs logo was printed on Sauber F1's chassis, and Sauber F1 had an advert on a billboard at Stamford Bridge, Chelsea's stadium.

Specific F1 teams, or the sport in general, could have a partnership with American sports teams. For example, Scuderia Ferrari (F1's most famous name) could have a partnership with the New York Yankees (Americas biggest sporting team). This will help the brand of F1 become bigger in the US as well as promote the New York Yankees across Europe.

An American champagne will be used on the podium after the American Grand Prix. There will be a competition where tickets for the American Grand Prix can be one, if the champagne used for the podium is purchased.

Sports partnerships aren’t particularly popular as sportscompanies tend to compete against each other. Sports partnerships only tend to be done when the sports teamssponsoring each other are owned by the same person.

Marketing Strategy – Tools & Techniques: American Manufacturers & Drivers

There is a theory, among the F1 Community, that the reason America isn't that bothered about F1 is because the sport doesn't hold that much relevance to the country, in terms of lack of (Non-existent) American manufactures and drivers in the sport. In order to entice an American audience and essentially improve the financial scale of F1 we should let American manufacturers enter the sport at a discounted price, over a short period, to see whether they are successful or not.

The FIA should make funds available to the American government that will improve karting as a sport and entice young children to try the sport out. The next step will be create an 'American young drivers program', this will help American children pay their way in the sport without it effecting their family financially. Everyone, who likes F1, knows that F1 is a 'rich mans sport' and nowadays driver ability isn't an essential ingredient in becoming a successful driver, its also your financial backing and amount of sponsorship you bring to the team; this sometimes forces the best potential out of the sport. If the FIA fund an 'American program', it will help American young drivers, and therefor hold a relevance to the American community.

Marketing Strategy – Tools & Techniques: Charities

Allow F1 drivers to switch over to NASCAR and race against each other for a charity event, and we could also allow NASCAR drivers to race each other in F1 cars.

The money generated from this event would go to a charity specified by both NASCAR and Formula One.

This would create a positive image for both sports as the money generated isn’t needed by the sports; the event is purely taking place to settle the argument about which sport requires more technical ability.

Marketing Strategy – Tools & Techniques: CelebritiesAt the American Grand Prix, American music artists could perform at the event, with no additional cost to the audience. This will help bring an even bigger fan base to the event. For example, Jay-z, Kanye West, Beyonce, Alicia Keys or Michael Buble could perform at the event.

The race itself lasts an hour and a half, so events before and after the race will help keep the audience entertained.

Household names such as Beyoncé and Michael Buble help keep the American heritage in the American Grand Prix. Both acts mentioned would also be considered ‘classy’, which again reinforce the idea that F1 is a ‘classy’, ‘rich mans’ sport.

Formula One wouldn’t promote celebrity appearances separately, as it will start to lose relevance to the sport itself. However, Press releases would help promote the fact that there are household name celebrities performing at the race.

Marketing Strategy – Tools & Techniques: Promotion • Promotion on American Billboards, Television and Social Networking sites • Adverts on Twitter and YouTube.• Create a hook, keep American viewers guessing what it is. The advert could just consist of an F1 Engine noise. • Interviews with F1 stars of the past and present.• American magazine and newspaper articles.• Adverts on a bus.

Social Networking SitesA few months before the race, we will promote F1 on globally used Social Networking Sites, such as Facebook, Twitter and YouTube.

For example, whilst watching videos on YouTube, there is usually an advert beforehand. A few months before the race itself, we will advertise the race in Austin, Texas to remind fans on the event.

Twitter also promote events and companies over a period of time. Again, months in advance, we will promote the race in Austin which users will see, despite not Following them. The promotion will be seen on every Twitter users ‘Newsfeed. The same technique applies to Facebook.

Interviews / magazine articlesA few weeks before the race, popular F1 drivers like Lewis Hamilton, Sebastian Vettel, Fernando Alonso and Jenson Button will appear on American TV chat shows to answer questions regarding the race, personal lives and life in Formula One.

In sports related magazines and car magazines, based in America, there will be articles regarding the F1 season and information on the mechanical side of this years cars.

Marketing Strategy – Tools & Techniques: Events • There could be an event on an American circuit that involves both NASCAR and Formula 1. The event

would be over a week period where fans, of both sports, can interact with drivers from both NASCAR and F1. There will be races, stunts and speed tests, as well as access to the F1 paddock and NASCAR garages.

• There could also be a race between NASCAR AND F1, which will really resolve the argument of what sport is best, in terms of driver ability.

• Open events at an American F1 purpose built circuit where children can interact with F1 drivers and constructors and have access to the F1 Paddock. Children can also go karting round the track, and win tickets to F1 races and events.

• Tour in America (Sports Promotion). F1 Drivers can participate in a 'speed test' down famous American roads, where fans and onlookers can watch.

• Events in American schools where F1 drivers make special appearances, and children get the chance to win things and learn about the physical, technical and aerodynamic ability involved in F1. Children in secondary school, who study motor mechanics, can also visit F1 HQ's in England funded by the FIA. (Educational Trips)

• An event where NASCAR and F1 can compete against each other.

Marketing Strategy – Tools & Techniques: Events in detail: NASCAR & F1 Event

There could be an event on an American circuit that involves both NASCAR and Formula 1. The event would be over a week period where fans, of both sports, can interact with drivers from both NASCAR and F1. There will be races, stunts and speed tests, as well as access to the F1 paddock and NASCAR garages.

The event will take place at the ‘Circuit of the Americas’ in Austin, Texas. The event will last a week which will consist of stunt shows, speed tests and Karting. There will also be Q&A sessions between the fans, drivers and team principals.

All garages will be open and fans will be able to interact with team mechanics and engineers.

The event will bring American fans and potential fans closer to the sport and have a look into what the teams do to keep the teams running.

Marketing Strategy – Tools & Techniques: Events in detail: Speed Tests

Tour in America (Sports Promotion). F1 Drivers can participate in a 'speed test' down famous American roads, where fans and onlookers can watch.

All the top teams, such as McLaren, RedBull, Ferrari, Lotus and Mercedes will participate in speed tests down famous roads in major US cities, like New York City, Los Angeles, Las Vegas and Washington.

‘Speed Tests’ consist of drivers driving down long, straight roads driving at speed; 200 mph plus.

This event will bring in crowds of people that are completely oblivious to F1, as the noise of the engines is enough to make anyone curious. After watching this event, it may create an interest in the sport, meaning more people will want to watch it, specially at an American purpose built circuit.

Marketing Strategy – Tools & Techniques: Events in detail: Educational Trips

Events in American schools where F1 drivers make special appearances, and children get the chance to win things and learn about the physical, technical and aerodynamic ability involved in F1. Children in secondary school, who study motor mechanics, can also visit F1 HQ's in England funded by the FIA. (Educational Trips).

This event will help young ‘motor heads’ gain a better understanding of the sport, with a view to a possible career path.

After going to this event, which is funded by the FIA, children will have a better understanding of the sport and will pick up an interest.

SWOT Analysis –

Strengths - Formula One is one of the most followed sports in the world, with over 527 million people watching over the course of the season. Tickets are very pricey, with some costing over £1000 (Weekend paddock pass), however the fans still pay to watch their idols, whereas in other sports, the fans would boycott in outrage of prices. F1 is in demand.

Weaknesses - Despite F1 being huge in Europe and Asia, its yet to conquer America, with NASCAR being the major competitor in terms of motorsport. The fact that F1 is yet conquer America means that F1 is missing out financially as many sport teams in America are bringing in huge amounts of revenue, even though some of the sports are exclusive to America. (American Football, Baseball and NASCAR)

Opportunities - The opportunities for F1 conquering America are amazing, financially.

Threats - A threat would be that if F1 fails in America, then obviously F1 would miss out financially. Also, if it does fail in America then other continents would see that F1 were prioritising America ahead of them, despite their huge support and loyalty.

Research –NASCARThe National Association for Stock Car Auto Racing (NASCAR) is a family-owned and operated business venture that sanctions and governs multiple auto racing sports events. NASCAR is the largest sanctioning body for stock car racing the United States.

NASCAR sanctions over 1500 races at over 100 tracks, however, only two countries have hosted these, and they are America and Canada. In the past, Suzaka and Motegi (Both Japan), Mexico and Calder Park Raceway (Mexico) have hosted race's, however, they were not official and were for promotional purposes only.

NASCAR have teamed up with social networking sites, such as Twitter and Facebook to spread the word of upcoming events, in the hope of gaining more viewers across the globe, other than the US.

NASCAR has over 75 millions fans that purchase over $3 billion annually in licensed products, however, this figure has been in decline since 2000s.

Another topic on the NASCAR circuit is the increase in foreign born drivers and the effects they may have on the future of NASCAR. Juan Pablo Montoya, Patrick Carpentier, and Dario Franchitti are among the foreign-born big names who have crossed over from Formula One and the Indy racing circuit. These drivers have made an impact on NASCAR not only by winning races and dominating road courses, but by expanding NASCAR's point of view.

In 2006, Toyota announced they would be joining NASCAR's ranks. Toyota generated early success winning several races off performances from Denny Hamlin and Kyle Busch. Other foreign manufactures are looking to jump in the mix of NASCAR. Honda is speculated to be interested in joining the NASCAR ranks in the near future. The increase in foreign competition is expected to raise the price of putting a car on the track.

GP2The GP2 Series, GP2 for short, is a form of open wheel motor racing introduced in 2005 following the discontinuation of the long-term Formula One feeder series, Formula 3000. The format was conceived by Bernie Ecclestone and Flavio Briatore, while Ecclestone also has the rights to the name GP1. In 2010 the GP3 Series class was launched, as a feeder class for the GP2 series.

Designed to make racing affordable for the teams and to make it the perfect training ground for life in Formula One, GP2 has made it mandatory for all of the teams to use the same chassis, engine and tyre supplier so that true driver ability is reflected. All but three races have taken place as support races at Formula One race weekends to boost the series' profile, to give drivers experience on the Grand Prix environment, and to take advantage of the infrastructure (Marshalls, medical facilities etc.) in place for a Formula One event. GP2 mainly races on European circuits, but has appearances on other international race tracks as well with their most recent races in the 2012 season at the Sepang International Circuit in Malaysia and the Marina Bay Street Circuit in Singapore.

GP2 rely on Formula 1 race weekends to promote. For example, for F1 pre-race entertainment, GP2 hold their races at the same track to entertain the audience beforehand. Not only does it keep the F1 fans entertained before the race, but it warms up the track, gives young drivers the chance to compete against thousands of fans, promotes GP2 to a wider audience and gives F1 teams the chance scout and retrieve data.

Billboard Design –

Bus/Subway Design –

Partnership/Sponsorship Design – McLaren / New Yankees / New York Knicks Partnership