Ideas on Sponsorship in MotoGP

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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.

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  • Activation: promotions, competitions, television advertising during breaks, corporate hospitality and so forthmight multiply the sponsor’s budget two or three times over, and it is vital. In sponsorship it’s not what you have, it’s what you do with it, says Joe Tripodi, chief marketing officer of Coca-Cola. It’s all about activation. Sponsorship is still dwarfed by advertising: WPPestimates that global spending on all forms of sponsorship amounted to $38 billion last year, against $449 billion on advertising. But sponsorship is growing fast, rising by 11% a year for the past decade, according to Lesa Ukman, chairman of IEG. –Fun, Games and Money
  • "It's about endless freedom," Mateschitz says. "It says this product enables you to do whatever you want, without mentioning specifically what that is."28% own TiVo or DVR systems and 50% record games for future viewingCourtesy: http://sports.espn.go.com/espnmag/story?section=magazine&id=3641232
  • http://www.riders.org/us/corporate_supporters.aspx
  • FedEx.com (UK site) mentions their official logistics supplier status for the F1 Vodafone McClaren team, official sponsor of French Open, and Official Sponsor & Express Courier of the European Rugby Cup, but nothing about MotoGP. Given that these sports are more popular than MotoGP, even in the UK, they might not think it worthwhile to activate their sponsorship.* DHL US sponsors IMG’s fashion weeks worldwide, including in New York, where they do not offer domestic shipping service.
  • Current points leader in NASCAR, with a fan base to rival that of Valentino Rossi, if not in numbers, certainly in passion.Photo courtesy nascar.com
  • How many of Jeff Gordon’s sponsors do you recall from the previous page?Although MotoGP does not yet have the level of coverage NASCAR has in the US, it is growing, most likely cheaper, and certainly less crowded. This is Red Bull’s inaugural season in NASCAR, and Scott is also new to the series.Photo courtesy nascar.com
  • These days it might cost 150m to sponsor the UEFAChampions League, the club championship of European football, for three years, or as much as $70m to back a Formula One (F1) team for a season,And all that buys is the right to use the name of an event, a team or an organisation. –Fun, Games and Money
  • 20- years old, single, voted one of America’s most eligible bachelors…Photo courtesy nickyhayden.com
  • SanDisk is currentlyMotoGP’s official supplier of flash memory productsSanDisk also owns Veoh, and offers a special USB drive for storing Veoh movies, which is another good product tie-in.
  • Photo courtesy: http://content.usatoday.com/topics/photo/Colin+Edwards/0c4g9Um0PC3nQ/43A sponsorship problem for Colin is that his domain names (colinedwards.com, .info) have been hijacked by fans, and his official website does not turn up on the first page of any google search. Ceracing.com is noted as his official website on Wikipedia, but the domain expired February 4, 2009. Fans can only find him through the Tech3 site, which is a potentially weaker platform for his other sponsors.
  • Photo courtesy motogp.com
  • Ideas on Sponsorship in MotoGP

    1. 1. US Sponsorship Opportunities for MotoGP <br />How US firms can grow global sales through <br />motorcycle racing<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />1<br />
    2. 2. Agenda<br />Benefits<br />Analysis of selected sponsors<br />MotoGP vs. competitors<br />Analysis of US racer’s sponsors<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />2<br />
    3. 3. Benefits from MotoGP sponsorship<br />Increase brand recognition worldwide, especially in the EU<br />Televised on major networks in US and worldwide<br />Capture the 18-35 year-old audience: 70% male<br />World-class hospitality in Monterey, CA and Indianapolis<br />Loyal and growing fan base in the US<br />Improve brand perception as a young, adventurous brand<br />Two very amicable World Championship-winning US riders competing for the top spot this year.<br />3<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />
    4. 4. Analysis of Selected Sponsors<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />4<br />
    5. 5. MotoGP and Red Bull<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />5<br />
    6. 6. Red Bull: Changing the Game<br />Red Bull treats its motorsports and soccer expenses as part of the whopping $1.2 billion it will spend on marketing this year1<br />"It's (Red Bull’s image) about endless freedom…”<br />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.<br />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. <br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />6<br />
    7. 7. Riders for Health + Johnson & Johnson + MotoGP=<br />Riders for Health: NGO which delivers healthcare to rural Africa <br />Exceptional activation with MotoGP in place<br />Currently seeking corporate partners<br />Riders clients can also be J&J’s customers helping J&J build their market with BOP consumers<br />Johnson & Johnson: major vendor of medical supplies and CPG’s<br />Customers perceive J&J as a caring brand<br />Partnering with MotoGP and Riders would give J&J global recognition for their (recommended) support of Riders<br />Can leverage & measure MotoGP sponsorship with coupons for strategic products<br />Sell labeled products with proceeds donated to Riders <br />7<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />
    8. 8. FedEx- Filling the Need<br />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.<br />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…<br />Ending with the line: ”Some models work better than others without their clothes.” <br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />8<br />
    9. 9. MotoGP vs. Competitors<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />9<br />
    10. 10. MotoGP vs. F1<br />Similarities<br />Cutting edge technology<br />Top racers, top series<br />Not enough passing<br />Visit many same tracks<br />European-based<br />Differences<br />MotoGP technology trickles down more<br />F1 is more for the older, wealthier crowd<br />Two USGP’s, zero US F1 races now<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />10<br />
    11. 11. MotoGP vs. NASCAR<br />Jeff Gordon<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />11<br />DuPont (title)<br />Chevrolet (car)<br />National Guard<br />Pepsi<br />Purolater<br />Bosch<br />Goodyear<br />Tyvek<br />Alpinestars (suit)<br />…<br />
    12. 12. NASCAR Sponsors<br />Witness the difference-<br />Red Bull (title) <br />Toyota (car)<br />Sunoco<br />Puma (suit)<br />Sponsors crowd onto the leader, fighting to be noticed<br />But are they really noticed?<br />Scott Speed- last place<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />12<br />
    13. 13. MotoGP vs. WSB<br />MotoGP<br />Cutting edge technology<br />Top WSB riders defect to MotoGP<br />More exciting to attend<br />More sponsors<br />World Superbike<br />Based on production<br />No huge stars like Rossi<br />Lower attendance<br />Closer racing- more exciting to watch<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />13<br />
    14. 14. MotoGP vs. Football<br />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.<br />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.<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />14<br />
    15. 15. US Racers, Sponsor Analysis<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />15<br />
    16. 16. The Fast Boy Next Door<br />16<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />
    17. 17. Nicky Hayden- The Kentucky Kid<br />Current team sponsor is Marlboro, but rumors say SanDisk may become Ducati team sponsor*<br />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.<br />Promotion tracking: <br />Distribute coupons at races, continue sales at races, including new branding with Nicky’s popular race number- #69 <br />Entry to win VIP tickets when buying large-capacity products<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />17<br />
    18. 18. The Coolest Dad in Texas<br />Colin Edwards <br />Aka “The Texas Tornado”<br />Much faster this year, even with two children at home in Texas. Probably the most approachable, friendly MotoGP racer.<br />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.<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />18<br />
    19. 19. Nicky Wins at Laguna Seca<br />Prepared by Susanna Schick, MBA 2009 as a student project. Not intended for commercial use.<br />19<br />

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