Ideas on Sponsorship in MotoGP

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US Sponsorship Opportunities for MotoGP How US firms can grow global sales through motorcycle racing Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use. 1

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As a student at Kenan-Flagler Business School, I engaged in an independent study on sponsorship in MotoGP. In this deck, I discuss potential activation ideas for both current and possible sponsors.

Transcript of Ideas on Sponsorship in MotoGP

Page 1: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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US Sponsorship Opportunities for MotoGP How US firms can grow global sales

through motorcycle racing

Page 2: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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Agenda

Benefits

Analysis of selected sponsors

MotoGP vs. competitors

Analysis of US racer’s sponsors

Page 3: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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Benefits from MotoGP sponsorship

Increase brand recognition worldwide, especially in the EU

Televised on major networks in US and worldwide

Capture the 18-35 year-old audience: 70% male

World-class hospitality in Monterey, CA and Indianapolis

Loyal and growing fan base in the US

Improve brand perception as a young, adventurous brand

Two very amicable World Championship-winning US riders competing for the top spot this year.

Page 4: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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Analysis of Selected Sponsors

Page 5: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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MotoGP and Red Bull

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Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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Red Bull: Changing the Game

Red Bull treats its motorsports and soccer expenses as part of the whopping $1.2 billion it will spend on marketing this year1

"It's (Red Bull’s image) about endless freedom…”

Major sports have become middlemen for TV and its advertisers- 60% of fans surveyed by ESPN think "the commercialization of sports has gone too far.

In 2005, Red Bull brought a MotoGP race to Monterey, Calif., the first in the U.S. in more than 10 years, enabling American fans to watch Kentucky native Nicky Hayden, one of the sport's greatest stars, in person.

Page 7: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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Riders for Health + Johnson & Johnson + MotoGP=

Riders for Health: NGO which delivers healthcare to rural Africa Exceptional activation with MotoGP in place Currently seeking corporate partners Riders clients can also be J&J’s customers helping J&J build

their market with BOP consumers

Johnson & Johnson: major vendor of medical supplies and CPG’s Customers perceive J&J as a caring brand Partnering with MotoGP and Riders would give J&J global

recognition for their (recommended) support of Riders Can leverage & measure MotoGP sponsorship with coupons

for strategic products Sell labeled products with proceeds donated to Riders

Page 8: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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FedEx- Filling the Need

FedEx currently does nothing to leverage their official supplier status. This might be a great opportunity to show how they have picked up the business DHL US has lost, and increase their EU presence.

For US advertisements, they could show a fashion designer waiting for clothes via DHL, and sending half naked models down the runway*, while a MotoGP race team uses FedEx, gets the critical new body panels from Japan, and wins the race… Ending with the line: ”Some models work better

than others without their clothes.”

Page 9: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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MotoGP vs. Competitors

Page 10: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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MotoGP vs. F1

Similarities

Cutting edge technology

Top racers, top series

Not enough passing

Visit many same tracks

European-based

Differences

MotoGP technology trickles down more

F1 is more for the older, wealthier crowd

Two USGP’s, zero US F1 races now

Page 11: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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MotoGP vs. NASCARJeff Gordon

DuPont (title)

Chevrolet (car) National Guard Pepsi Purolater Bosch Goodyear Tyvek Alpinestars (suit) …

Page 12: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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NASCAR Sponsors

Witness the difference-

Red Bull (title)

Toyota (car) Sunoco Puma (suit)

Sponsors crowd onto the leader, fighting to be noticed

But are they really noticed?

Scott Speed- last place

Page 13: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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MotoGP vs. WSB

MotoGP

Cutting edge technology

Top WSB riders defect to MotoGP

More exciting to attend

More sponsors

World Superbike

Based on production

No huge stars like Rossi

Lower attendance

Closer racing- more exciting to watch

Page 14: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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MotoGP vs. Football

While football (aka soccer) has a much broader appeal, there is no global series for sponsors to engage. It is still a rather fragmented sport, with a handful of teams enjoying global fan base, while the majority are known only locally.

The image/spirit of each sport is quite different, so companies would choose MotoGP for a faster, more cutting edge perception and football to convey teamwork and perseverance, for example.

Page 15: Ideas on Sponsorship in MotoGP

Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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US Racers, Sponsor Analysis

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Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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The Fast Boy Next Door

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Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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Nicky Hayden- The Kentucky Kid

Current team sponsor is Marlboro, but rumors say SanDisk may become Ducati team sponsor* Leverage opportunity for SanDisk: TV spot with Nicky

in the garage writing a letter to his mom, sending her a memory stick with all the on-board footage from his last race, as scenes from the race flash by. Shows off the capacity of new memory sticks while positioning SanDisk as the faster, cooler memory provider.

Promotion tracking: Distribute coupons at races, continue sales at races,

including new branding with Nicky’s popular race number- #69

Entry to win VIP tickets when buying large-capacity products

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Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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The Coolest Dad in TexasColin Edwards Aka “The Texas Tornado”

Much faster this year, even with two children at home in Texas. Probably the most approachable, friendly MotoGP racer.

Monster Energy has only recently become title sponsor, and will need to find ways to activate, as Colin is quite different from their former GP racer, John Hopkins.

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Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.

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Nicky Wins at Laguna Seca