Grand Prix Marketing Blog Posts Sep-Oct 2013

7/27/2019 Grand Prix Marketing Blog Posts Sep-Oct 2013

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Hello and welcome to the Grand Prix Marketing blog. We are here to help, inform and discuss thelatest topics and trends in motor sports marketing. Enjoy!

Contents

No. Date Title Page

1 24/09/2013 An Introduction to Sports Marketing 2

2 01/10/2013 The Road to Formula 1 5

3 08/10/2013 How does GP2 & GP3 Work? 9

4 15/10/2013 GP2 & GP3 - A Marketing Platform (Pt 1) 13

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An Introduction to Sports Marketing

‘Business has only two functions - marketing and innovation’ Milan Kundera

Welcome to the very first post on Grand Prix Marketing’s blog. For those who don’t know, wespecialise in marketing companies through motorsport, predominately in the GP2 and GP3Championships, which are part of the Formula 1 events package.

For those whoaren’t yetfamiliar withGP2 & GP3,they are motorracing

categories thatthe mosttalented andexciting youngracing drivers,who aspire torace inFormula 1,compete in todevelop theirskills for the

future.

Now, thereason that

we’ve createdthis blog is to enable us to use our expertise to help, inform and discuss the latest news, trends andopportunities in sports marketing. So if you have any questions or opinions, then please get in touch.

In upcoming posts, we will cover motorsport in more depth and the commercial returns on marketinginvestment that it can offer.But first, let's bring everyone up to speed by answering these two questions.

1. WHAT IS MARKETING? Marketing can be defined as the promotion of products or services that encourage the target marketto buy. In it’s simplest form, marketing consists of the following:

• Researching your target markets’ needs and creating a product/service that satisfies them.

• Communicating the value of the product/service to your target market in a way that convincesthem to purchase it.



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• Keeping up to date with market needs and trends and continually innovating products andservices to meet these needs.

2. WHY DO COMPANIES MARKET IN SPORT?If it attracts an audience, sport at any level is a marketing opportunity to be capitalized on.International, national and local businesses promote themselves through sport to achieve differentobjectives. However, it’s essential to remember that the ultimate goal for marketing is to increasesales. It’s a lot easier for companies to increase recognition for themselves if they market in anenvironment that already encapsulates their target audience.

If we look atsports marketingat an international

level, Red Bull isthe best place tostart. The energydrinks companypromotes theirbrand throughmotorsport,football,skateboarding andother extremesports and events.In doing so, they

generate massivemedia exposurefor their brand,which is importantas each projectthat they invest inhas the sameobjectives: raise brand recognition, develop their brand image and perception and ultimately increasesales. For further information about Red Bull's sponsorship in motorsport, please read our Red Bullcase study.But sports marketing can also be a very effective medium for local companies. As an example, let’s

say that a new ice-cream parlor opens in a town. To raise awareness, the owner decides to marketthe parlor at a local football tournament during the summer. To keep the spectators cool in the hotweather, free samples of ice-cream are given out. As almost everyone loves free ice-cream, a highpercentage of the parlor’s target market samples their products, making it more likely that they willvisit the shop in the future to make purchases.So no matter what the industry or it's size, every company must create their own unique marketingstrategy that will allow them to identify their customers’ needs, create a product that satisfies themand present it to them in a way that encourages them to buy.

COMING UP



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Our next post will be up on Tuesday 1st October, where we will bring you up to speed on the differentstages on the road to Formula 1.

Copyright Note

All images are the copyright © of GP2 & GP3 Media Services.



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The Road to Formula 1

'Success is the result of perfection, hard work, learning from failure, loyalty and

persistence' Colin Powell

In our previous post, we mentioned that we'll be analysing the GP2 and GP3 Championships as amarketing platform in the coming weeks. But, before we do that, it's important that we help all of ourreaders to understand exactly what GP2 and GP3 are.

Formula 1 is the pinnacle of motorsport and it's where the best drivers and teams compete againsteach other for the World Championship. But how do drivers such as Sebastian Vettel and JensonButton learn to drive racing cars at 230mph, whilst racing millimetres apart? Like every sport, it took years of practice and hard work for the drivers to evolve from beginners into the elite competitors thatthey are today.

Formula 1 drivers learned their trade in the junior formulae, where they developed their race craft andvehicle set up knowledge, amongst other skills, that were essential for their future careers. Withoutthe junior formulae for drivers to practice and improve, Formula 1 would not be the elite sport that it istoday. The Road to F1 in the junior formulae is as follows:

STAGE 1 - KART RACING:

All of the current Formula 1 drivers began their racing careers in karts. It's a vital stage of a driver'sdevelopment process as they learn the basics of car control, race craft and vehicle set up that willstand them in good stead later in their career. Drivers can begin competing in karts as young as eightyears old, reaching speeds of up to 75mph. The video below is from 1998, of 2008 Formula 1 World

Champion, Lewis Hamilton, competing at the West of Scotland Kart Club.

STEP 2 - FORMULA 4: At 16-17 years old, driver's progress from karts to cars, with most opting to start in single seaters. A

single seater is aracing car that onlyhas one seat and thewheels are notenclosed within thecar's body.

In the UK, the mainentry level single seatercategory is the BRDCFormula 4Championship, butdrivers can alsocompete in FormulaFord and FormulaRenault, which havesimilar performance.



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http://grandprixmarketing.blogspot.co.uk/2013/09/an-introduction-to-sports-marketing.html

http://grandprixmarketing.blogspot.co.uk/2013/09/an-introduction-to-sports-marketing.html



In F4, each driver has the same specification of race car, which leads to exciting racing as the driversmust push their cars to the limit in order to win.

The Formula 4 car is a great starting point for drivers in single seaters, as they learnabout aerodynamics, slick tyres and paddle shifts; all of which they will need a sound understandingfor in Formula 1. Formula 4 is also a significant step up from karts in terms of speed, with the carscapable of a top speed of 145mph.

With the exciting and close fought racing, Formula 4 attracts worldwide interest through it's fantasticmedia coverage, including TV, print, online and social media. The championship takes place atseveral high profile events, the DTM (German Touring Car Championship) and the British GT & F3events, which draw in crowds of over 40,000.

As it's recognised as a brilliant driver development category and marketing platform, international

drivers from Brazil, Mexico, America and China compete in Formula 4, bringing their multinationalsponsors including Telmex, Claro and Valvoline with them.

STEP 3 - GP3:

Having learnt asmuch aspossible fromFormula 4, atabout 18 yearsof age, drivers

graduate to theGP3Championship,an internationalrace series thatis part of theFormula 1 eventspackagethroughoutEurope and Asia.

Alternatively,drivers have theoption of competing inFormula 3 at this stage in their career.

In comparison to Formula 4, GP3 cars are faster and more technologically advanced. They reachspeeds of 180mph and have more grip due to increased aerodynamics and softer tyre compounds.

With GP3 running as part of the Formula 1 package, drivers are able to learn the race circuits thatthey will compete on in GP2 and F1. They will also develop their vehicle set up knowledge with the



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cars being more complex than those in Formula 4. Esteban Guitierrez and Valtteri Bottas, who havenow graduated to Formula 1, won the GP3 Championship in 2010 and 2011 respectively.

As GP3 is part of Formula 1 events, all qualifying and race sessions are televised live to a globalaudience. Coupled with other media platforms that allow the championship to capture a worldwidefollowing, companies including Red Bull, Cepsa and Pepe Jeans are currently using the series toachieve their marketing objectives.

STEP 4 - GP2: The final stage before Formula 1 is GP2, usually for drivers between the ages of 20-24. Again, drivers

can competein WorldSeries byRenault,which is at asimilar level.

The GP2 caris a step up inperformanceterms fromGP3, with ahigher topspeed of 200mph and

greateraerodynamicand tyre grip.

GP2competes onthe Formula 1

eventspackage at circuits in Europe and Asia. It's essential for the drivers to achieve good results as theFormula 1 teams follow the championship closely to find the next racing star.

Since GP2 was created in 2005, six of the eight champions have graduated to Formula 1: NicoRosberg, Lewis Hamilton, Timo Glock, Nico Hulkenberg, Pastor Maldonado and Romain Grosjean.

Like GP3, GP2 benefits from the media coverage generated from being part of Formula 1 events.Combined, GP2 and GP3 have over 116 million annual TV viewers, who receive over 1 million minutesof broadcast time. In recent years, companies such as Aon, Comma Oils and the Giltrap Group havepromoted themselves in this race series.



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STEP 5 - FORMULA 1:

Every racing driver's dream is to compete in Formula 1. It's the pinnacle of motorsport and it's where

the best drivers and teams compete for the most coveted prize, the Formula 1 World Championship.

Each teambuilds theirown racing carand employsdrivers to raceit for them. Thecars are themosttechnologicallyadvanced inthe sport andreach speedsof over230mph.

Formula 1 isone of themost popularannual sportson TV, thatattracts an

audience comparable to the Olympics and the FIFA World Cup. Each year, there are twenty grandprix taking place in different countries throughout Americas, Europe, the Middle East and South East Asia, with an average spectator attendance of 170,000. With Formula 1's international appeal, someof the world's largest brands, Mercedes, Santander and Vodafone to name a few, use the sport as aplatform for them to engage with their target markets.

Conclusion:

Without the junior formulae, Formula 1 wouldn't be the elite sport that it is today. Each driver was abeginner at one time and each stage on the Road to Formula 1 allows drivers to develop the skillsthat they need to progress to the next level.

Coming Up:Our next post will be up on Tuesday 8th October, where we will discuss GP2 and GP3 in more depthand why they captivate a global audience.

CopyrightImages are copyright of GP2 & GP3 Media Services and MGR Motorsport

You Tube video is copyright of AleXcr86



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How does GP2 & GP3 work?

GP2 and GP3, as we discussed in our previous post, 'The Road to Formula 1', are racing categoriesthat aspiring Formula 1 drivers compete in to develop their skills and abilities for the future. Withoutthese championships, the calibre of drivers in Formula 1 would not be what it is today.

Both racing categories are partof the Formula 1 eventspackage throughout Europeand Asia. GP2 and GP3 benefitfrom a close relationship withthe FIA, the governing body of world motorsport, and FormulaOne Management. The FIA scrutineer the cars and oversee

the running of both series,whilst FOM broadcast andmarket the race series toensure that it has a globalreach and appeal.

This week, we are going to giveour readers a more in depth

insight into how the GP2 andGP3 Championships work.

GP2

The GP2 series made it'sdebut in 2005 and hashelped to launch the careersof many of the currentFormula 1 stars, including Vodafone McLarenMercedes driver SergioPerez. As outlined recently,GP2 is normally the finalcategory that drivers race inbefore they graduate to

Formula 1 and since it'sinaugural campaign, twentyfour drivers have graduatedto a driving role at thepinnacle of motorsport.

This year, twenty six driversand thirteen teams make up the GP2 grid. The drivers are from eighteen different nations, includingBritain, Germany, USA, Brazil and Venezuela.



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http://blog.grandprixmarketing.co.uk/2013/10/the-road-to-formula-1.html

http://blog.grandprixmarketing.co.uk/2013/10/the-road-to-formula-1.html



The Champions (drivers in bold are currently racing in Formula 1):2005 - Nico Rosberg

2006 - Lewis Hamilton

2007 - Timo Glock 2008 - Giorgio Pantano 2009 - Nico Hulkenberg

2010 - Pastor Maldonado

2011 - Romain Grosjean

2012 - Davide Valsecchi

GP3

The GP3 Championship was launched in 2010 and despite it being a relatively new series, it is filledwith an abundance of racing talent. Clearly valued as a category for advancing drivers' abilities, bothRed Bull and the Racing Steps Foundation have chosen to enter the drivers on their driver

development programmes in GP3.

The GP3 grid is filled with twenty seven international drivers, fielded by nine teams. Alongside the twoRed Bull junior drivers, Carlos Sainz and Daniil Kvyat, there are two very promising female talents,Samin Gómez and Carmen Jordá.

The Champions (drivers in bold are currently competing in Formula 1):

2010 - Esteban Gutierrez 2011 - Valtteri Bottas

2012 - Mitch EvansThe Championships

The GP2 and GP3Championships are made upof events held in countriesthroughout Europe and Asia. At each round, the drivers andteams in each categorycompete to score points thatare added towards thechampionship. At the end of

the season, the driver andteam that has scored the mostpoints at each round will becrowned the champions.

In 2013, GP2 and GP3 haveeleven and eight championship rounds respectively. Events are held at some of the most spectacularracing circuits such as Silverstone, Singapore, Monaco and Abu Dhabi.

Event Format



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http://www.racingsteps.co.uk/

http://www.racingsteps.co.uk/

http://www.redbull.com/cs/Satellite/en_INT/Red-Bull-Junior-Team/001243182345888

http://www.redbull.com/cs/Satellite/en_INT/Red-Bull-Junior-Team/001243182345888



At each round, both race series have a practice session, qualifying session and two races. Practice isfor the drivers and teams to familiarise themselves with the circuit and to develop a car set up for theweekend. Qualifying is used to determine the starting positions for race one. Each driver competes toset a fast lap time and the driver with the fastest lap will start from pole position in the first race.

GP2: Race one is run over 170km or sixty minutes, depending on which is completed first, with eachdriver having to make one mandatory pitstop, in which a minimum of two tyres must be changed. Thestarting positions for race two are determined by the finishing positions in race one, with the top eightpositions reversed. Race two is shorter, with a length of 120km or forty five minutes and no pitstopsare allowed.

GP3: The GP3 races have a maximum time limit of thirty minutes. There are no mandatory pitstopsand refuelling is not permitted. The finishing positions of race one determine the starting positions forrace two, with the top eight reversed.

Point Scoring System The points scoring system for GP2 and GP3 are the same. Throughout the weekend, drivers andteams score points that contribute towards the championship.

• Four points will be awarded for the fastest driver in qualifying.

• The top ten drivers in race one score points (1. 25 2. 18 3. 15 4. 12 5. 10 6. 8 7. 68. 4 9. 2 10. 1).

• However, in race two, only the drivers who finish inside the top eight positions will score points(1. 15 2. 12 3. 10 4. 8 5. 6 6. 4 7. 2 8. 1).

•In both races, two points will beawarded to the drivers who setsthe fastest lap.

Prizes

GP2: The winner of the GP2series will receive a Formula 1test with the official tyre supplier,Pirelli. For more information,please click here.

GP3: In 2012, GP3 ChampionMitch Evans, received a€200,000 prize for winning the

title, which helped to fund hisGP2 campaign this season. Formore information, please click here.



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http://www.gp3series.com/News/2012/09_Sep/Pirelli-present-GP3-Series-Champion-with-Prize/

http://www.gp2series.com/News-Room/News/2013/01/Pirelli-offers-Formula-One-Test-to-GP2-Champion/















Cost Control

To keep the drivers' and teams' costs of competing in check, GP2 and GP3 are strictly controlled. There is centralised purchasing, strict limits on testing and an outright ban on individual developmentswhich ensures that budgets are reasonable.

Next Week: We will look at GP2 and GP3 as a marketing platform and how companies can receive similar benefitsto marketing in Formula 1, but at a fraction of the cost. It will be posted on Tuesday 15th October.

Copyright

Images are copyright of GP2 and GP3 Media Services



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GP2 & GP3 - A Marketing Platform (Pt 1)

GP2 and GP3 are part of the most exciting and dramatic sporting event, Formula 1. Stars of

the future, battle wheel to wheel, in identical cars, on the most historic race circuits,entertaining hundreds of thousands of spectators and a global television audience of wellover one hundred million people. With the Formula 1 teams observing, each driver mustimpress if they are to stand a chance of reaching the pinnacle of motorsport.

2013 GP2 & GP3 CHAMPIONSHIPS

With one round remainingthis season, held at the

Yas Marina Circuit in AbuDhabi on the 2nd & 3rdNovember, the GP2 andGP3 titles are still to bedecided. In GP2, aftertwenty races spanning tendifferent countries, thepoints gap between thetop two drivers in theseries, Swiss driver FabioLeimer and Britain's Sam

Bird, is seven points.Similarly, in GP3, Argentinian Facu Regalia

is seven points clear of RedBull young driver, Daniil Kyvat.

Now compare this to Formula1, where it's almostguaranteed that Sebastian Vettel will be crowned worldchampion for the fourth

consecutive season. By thetime we get to Abu Dhabi,round 17 of 19 of thechampionship, the title willprobably have been settled. If that's the case, I know whatraces I'm most looking forwardto watching that weekend!



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http://www.gp3series.com/






As a fan, the racing in GP2 and GP3 this season has been extremely entertaining to watch. There's been fantastic overtakes, brilliant displays of skills from the drivers and dramatic

crashes that keep the audience on the edge of their seat at all times. The coverage of theracing is exceptional, with Formula One Management ensuring the broadcasting is of equalquality to that of Formula 1, being shown on major channels including Sky and Fox Sports. The GP2 and GP3 organisers also do a superb job of keeping the fans up to date with thelatest news through various media channels including their electronic magazine, the GP2 & GP3 Insider.

So with epic racing and a captive audience, what can these race series offer as a marketingmedium?

Find out next week!

Copyright

Images are copyright of GP2 and GP3 Media Services



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http://www.gp2series.com/News-Room/GP2-Insider/




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Grand Prix Marketing Blog Posts Sep-Oct 2013