F1 Sponsorship - follow the money!

[adrianjordan]

Individual example, but...
I have a Medion PC computer. It was suspiciously cheap, it is boxy but it works just fine and I am very happy with it.
And I'd never have bought it if it wasn't for Adrian Sutil's personal sponsorship. I only bought it because I knew the brand thanks to F1, which meant that when one would pop in a Mediamarket catalog I'd check the characteristics of this Medion in particular, out of curiosity. And they looked alright. And when it popped up in the Aldi catalog, which normally would be a blemish in the prestige of a technology company, I had in my mind that it probably made sense for this cheap but yet good brand. And when a family member bought a horribly boxy and bulky Medion laptop, the brand got burnt in my brain.
So when I needed a new PC, I checked HP, Dell and Medion, in that order. And Medion won hands down. They do not have any physical shops and typically are not present in Computer stores, by the way, they do most of their selling online.

It is brand awareness... until it is not.

Assuming they paid 4M$ and a 400$ profit from me, I gave them 0.01% return on investment. I only takes 10000 like me to pay back.

Basically same here. Just over a year ago I needed a new laptop, was looking around and saw a decent looking one from Lenovo. Now I'd never really seen or read anything about Lenovo, but I did know that they sponsored McLaren....so I figured they were probably pretty good... Worked out okay for me!!

Then last year I wanted a new watch. Saw an Edifice in the sale. It looked nice and I remembered that they sponsor Red Bull (Edifice are a Casio sub-brand), so I figured that it might be nice having a watch from an F1 sponsor again (my last watch was Seiko - used to sponsor BAR & Honda).

I didn't go out looking to buy either of those brands, but they were reinforced in my mind by their F1 presence.

On the other hand, I use Wilkinson Sword razors even though Gillette are in F1...cos I don't like the Gillette blades

[GitanesBlondes]

So don't believe it. Not my problem if you want to believe otherwise.

I won´t, i don´t get involved in beliefs as they serve no purpose.

I had a private conversation some time back with a well known, long time F1 sponsor about the value of F1 sponsorship and exposure versus what had to be laid out in money. They were quite clear that at one time it represented very good value, but as the entire sport changed, it morphed into a poor value. The numbers were run, and they pulled out since there was no longer any benefit to F1 sponsorship. They never came back, and never will again, because F1 turned into a game for Ecclestone and Mosley.

[GitanesBlondes]

No amount of marketing sells me on any product period.

That's curious, how do you know the things that you buy even exist, or which shop sells those things?

Surely you're kidding me with that statement?

You can do research on your own to find out about products that you need especially if you know what you're looking for without getting drawn into the marketing crap.

Take tools as an example. Everything is manufactured in China for the most part nowadays. As such I don't care whose name is on the label, I simply buy whoever is cheapest. Kobalt, Craftsman, Husky, Snap On, etc. don't mean anything to me. Cheapest tool that gets the job done is what gets used.

[wesley123]

I'm not sure about that Wesley. F1's current wealth and ostentatiousness makes the 1990's seem like an amateur village fete. The difference is that income from fans is dominated by TV fees, and sponsorship is funneled through centralised global deals with FOM.

Current wealth in F1 is exactly that; In F1. While F1 itself has seen a growth in income, teams have not. Inflation plays a large role here, imo.

[wesley123]

Surely you're kidding me with that statement?

You can do research on your own to find out about products that you need especially if you know what you're looking for without getting drawn into the marketing crap.

Take tools as an example. Everything is manufactured in China for the most part nowadays. As such I don't care whose name is on the label, I simply buy whoever is cheapest. Kobalt, Craftsman, Husky, Snap On, etc. don't mean anything to me. Cheapest tool that gets the job done is what gets used.

I sincerely doubt you research every product you buy.

Whether you like it or not, marketing does affect your purchase. Because if your side was correct, then why would money be spent on marketing to begin with?

[Richard]

You can do research on your own to find out about products that you need especially if you know what you're looking for without getting drawn into the marketing crap.

Take tools as an example. ....

Your example is firmly at the utility or price sensitive end of the scale. You claim you'll buy the cheapest, but do you exclude the "I can't believe it was that cheap, oh no, it broke after one day" end of the scale?

Even assuming you really do buy the cheapest crap available from tins of soup to power tools, you're still subject to marketing. If you buy online then some marketing person has ensured their product is at the top of the search results. If you go for cheapest a marketing person might offer 2 for the price of 1, that's a cheaper unit cost but it boosts their revenue. A marketing person will have considered if you are time sensitive, are you happy to wait for the thing to be shipped from china, or do you want to physically get it from a store now? If so which store? When you check the specs a marketing person will make sure you see the information that is important to you. Every step of the way from factory to your hands is influence by marketing crap. In a nutshell everything you ever purchase has been subject to a marketing person making sure their product catches your eye ahead of a competitor.

Anyway that's completely irrelevant because cheap crappy tools from China aren't advertised on F1 cars.

Products and services advertised in F1 usually have an element of personal enjoyment or preference rather than pure utility. For example phone purchasing is heavily swayed by fashion. So no surprise that the dullest phone company in the world is proudly brandished by Hamilton & Rosberg.

"heh what phone is that incredibly cool guy using?"



People ask for Red Bull by name in a bar because of other people being sponsored to drive cars:



As I've previously said, I do agree that team sponsorship is probably on the wane. The world has moved on since 1990's when team sponsorship was great way to get global exposure with a hi-tech brand. There are much more exciting technologies than cars, there are more sports with bigger audiences, the TV audience is no longer captive and has lot more choice.

However Benie still has the trump card with his connections with stupidly rich people looking to spend money, whether it's the CEO of Santander being patriotic with Alonso, or an oligarch wanting to be seen as playing with the big boys.

That trump card means the price of joining his circus works out like this:

- Running an F1 team - £100m
- Private jet to Monaco - £50,000
- Having influence despite looking like this - priceless




At the end of the day it's all down to rich men and pretty girls.


Who looked at the lady in the red dress?

Anyone notice the ENVGROUP logo? No? Sponsorship is just a fig leaf, and I'm sure the ENVGROUP board had a great time and thought spending the money was worthwhile.

[strad]

Haas is a moron?
Once again I have to ask where is your successful business?
Show me your huge success and fortune that stems from your superior intelligence. Which by the way you have not shown here.

[NathanOlder]

No amount of marketing sells me on any product period.

That's curious, how do you know the things that you buy even exist, or which shop sells those things?

Surely you're kidding me with that statement?

You can do research on your own to find out about products that you need especially if you know what you're looking for without getting drawn into the marketing crap.

Take tools as an example. Everything is manufactured in China for the most part nowadays. As such I don't care whose name is on the label, I simply buy whoever is cheapest. Kobalt, Craftsman, Husky, Snap On, etc. don't mean anything to me. Cheapest tool that gets the job done is what gets used.

If you use tools every day in a manual job , then you will surely know buying the best or atleast a decent quality of toolis vital, not just some unbranded crap from China

[SectorOne]

I had a private conversation some time back with a well known, long time F1 sponsor about the value of F1 sponsorship and exposure versus what had to be laid out in money. They were quite clear that at one time it represented very good value, but as the entire sport changed, it morphed into a poor value. The numbers were run, and they pulled out since there was no longer any benefit to F1 sponsorship. They never came back, and never will again, because F1 turned into a game for Ecclestone and Mosley.

What company was this? What´s he doing today? Where´s his advertisements today outside Formula 1?

[Moxie]

Coming a little late on this thread, please bear with me.

The term many of you are looking for is " Return On Investment" or "ROI." ROI is a an enormous concept in the business world as it defines what a firm is willing to spend on any given investment. That investment may be a new piece of plant equipment, or a print ad campaign or an F1 sponsorship. ASSSUMING A COMPANY MANAGER IS MAKING DECISIONS FROM A PURELY MATHEMATICAL PROFIT DRIVEN MOTIVE, the ROI of a given investment option must be morethan positive. The potential ROI must exceed the potential ROI's of all other investment options. In the end the firms hope that actual ROI meets or exceeds the expected ROI on a specific investment.

Consequently, it advertizing departments are obligated to quantify the potential return on the investment dollar. I have seen one study that actually measures the ROI of F1 sponsorship. The study shows that very few of the sponsors receive an ROI worthy of the investment.

http://www.academia.edu/4417136/Analyzi ... ompetition

[bdr529]

No amount of marketing sells me on any product period.

That's curious, how do you know the things that you buy even exist, or which shop sells those things?

Surely you're kidding me with that statement?

You can do research on your own to find out about products that you need especially if you know what you're looking for without getting drawn into the marketing crap.

Take tools as an example. Everything is manufactured in China for the most part nowadays. As such I don't care whose name is on the label, I simply buy whoever is cheapest. Kobalt, Craftsman, Husky, Snap On, etc. don't mean anything to me. Cheapest tool that gets the job done is what gets used.

Actually you did fall for that marketing crap, you bought the cheapest product on the shelve.
manufacturing the cheapest product in that segment was part of the companies marketing plan.

Some people are confusing Advertising with Marketing. Advertising is the medium in which the message of a product or service is conveyed to the consumer radio/tv commercials, billboard/news print, facebook/twitter etc...
This is just one part of a companies overall marketing plan for product or service.

Marketing is the "big Picture" It's research of market size and potential, of competitive products/services, strengths, weaknesses, pricing, It's research of your product compaired to your competitor's product. It's developing a pricing strategies for your product/service, identifying primary and secondary markets, strengths and weaknesses of the distribution channels. tracking sales and market share (this is were ROI comes into play) And a whole lot more crap.

the Nike swoosh on the shoes the Apple logo on the the phone/laptop, the BMW emblem on the hood/bonnet are all part of product development not advertising

finally get to use my degree in Marketing on this forum, I knew those 4 years would payoff eventually

[dmjunqueira]

Talking about sponsorship...
The state-owned brazilian oil company, Petrobras, is considering to withdraw its sponsorship from Williams.
They say that's because they were not able match the performance of the fuel supplied by Petronas (current fuel supplier for Mercedes power units), so they can't supply fuel to Williams and, therefore, cannot advertise as planned.
Not to mention that Petrobras is facing a serious corruption scandal in Brazil and their stocks dropped significantly.
The source is the same guys that revealed that Massa was going to Williams when he left Ferrari.
It's in portuguese:
http://www.diariomotorsport.com.br/2015 ... formula-1/

[Vettel Maggot]

No one can tell me sponsorship doesn't work. For someone that doesn't live in Europe I remember going to the 1996 Melbourne Grand Prix and seeing a Sauber and wondering what the hell a 'Red Bull' was. It wasn't sold here in Australia at that stage. But the first time I ever saw one in a shop while in Europe on holiday I immediately grabbed one to satisfy my curiosity. So there you go, Red Bull got a sale out of an Aussie guy in Europe.

It is all about awareness.

Is the value there anymore, well I am not sure, but F1 was certainly a bit too comfortable with the big tobacco dollars rolling in.

[strad]

Take tools as an example. Everything is manufactured in China for the most part nowadays. As such I don't care whose name is on the label, I simply buy whoever is cheapest. Kobalt, Craftsman, Husky, Snap On, etc. don't mean anything to me. Cheapest tool that gets the job done is what gets used.

Man if you don't see or know the difference between Husky and Snap-On for example you are no mechanic. You go for what's cheapest? You do realize they are built, wherever that is, to the company specs. Much as it pains me to say this, China can build as high a quality as anyone as long a the specs are right and quality control is tight.
Husky for the most part are heavy as compared to Snap-On which is more comfortable in the hand and grams lighter which when you're spending time on your back or working overhead makes a real difference.
And who cares whether Craftsman is guaranteed for life when you have to stop what you're doing and drive down to Sears to exchange it for a new one. Your time is worth a lot in the middle of a project.

[GitanesBlondes]

Take tools as an example. Everything is manufactured in China for the most part nowadays. As such I don't care whose name is on the label, I simply buy whoever is cheapest. Kobalt, Craftsman, Husky, Snap On, etc. don't mean anything to me. Cheapest tool that gets the job done is what gets used.

Man if you don't see or know the difference between Husky and Snap-On for example you are no mechanic. You go for what's cheapest? You do realize they are built, wherever that is, to the company specs. Much as it pains me to say this, China can build as high a quality as anyone as long a the specs are right and quality control is tight.
Husky for the most part are heavy as compared to Snap-On which is more comfortable in the hand and grams lighter which when you're spending time on your back or working overhead makes a real difference.
And who cares whether Craftsman is guaranteed for life when you have to stop what you're doing and drive down to Sears to exchange it for a new one. Your time is worth a lot in the middle of a project.

Craftsman quality was different years ago strad.

I never claimed to be a mechanic.