MARKETING IN INDIA Kenneth Lowe Swarupa Rani Sravan Reddy Joseph Cherian
What is formula one? • The highest class of single seater auto racing • The "formula" designation in the name refers to a set of rules with which all participants cars must comply • Formula One cars are considered to be the fastest circuit-racing cars in the world • “Auto racing, bull fighting, and mountain climbing are the only real sports ... all others are games.” –Ernest Hemingway
In the ET:Notice the Strategicuse of the CapableSpeed of the Cars,Distance Covered andTime
Why F1 for India?• Prestigious moment for the nation• Increase footfall of tourists especially after terroristsattacks (Give foreigners another reason to come toIndia)• China also has an F1 Circuit, India needs to stay on thesame competitive level as China is at.Why India for F1?• India is an emerging market with a huge sports fanaticsto tap such a market will increase revenues of FIA• If an international sport is thinking to survive andthrive long-term, India (and China - two of the growingeconomies and two largest population) will always be onthe radar
Sponsors for Grand Prix 2011Title sponsor : Airtel - The first time an Indian company (Airtel) has chosen to divertsponsorship funds from cricket to motorsportOfficial ticketing partner : Bookmyshow.comOther Sponsors:• Hero MotoCorp – Endorses Narain Karthikeyan• Mercedes - Mercedes with Jaypee Sports will also be setting up a driving academy atthe circuit after the Indian Grand Prix to nurture the home grown racing talent• Puma - The official merchandise partner for the Indian Grand Prix, Buddh InternationalCircuit• Amul - The official partner of Sauber F1 team• TAG Heuer - Limited edition watch for the Grand Prix
Media promotion• 85% of total income comes from sponsors and 15%from TV revenue• 14 per cent growth in the $40-billion sportsmarketing business• ESPN sold 800 advertising seconds@ INR 1.5 lakhper 10-second slot during the race• Besides showcasing engines and putting an F1 caron display, the auto makers have also planned a hostof competitions at various malls wherein F1 ticketscan be won• TV, Radio, Newspaper, Music Concerts, SocialNetworking Sites, pubs and Restaurants, Malls,Internet, Billboards, Contests
Celebrities adding The Glamour Quotient• Sachin Tendulkar: Flagging the finish• Sourav Ganguly : Appointed as the brand ambassador of the Sahara Force India racingteam• Lady Gaga performed at the closing ceremony• Metallica performed in concert for the first time in India since their inception 20 yearsago• Shahrukh Khan, Preity Zinta and Bipasha Basu, Arjun Rampal and many bollywoodactors/actresses watched the event Live!!
Co-BrandingPepsi - Contract which allowed to sell only Pepsiinside the circuitVodafone - Ambush MarketingAirtel - Title Sponsor of the event “Airtel IndianGrand Prix”Puma – Sells official F1, Indian Grand Prix clothingTag-Heuer – Sells limited edition Indian Grand prixwatchesMarlboro Cigarettes -Reebok -Nike -Inkfruit.com – Online sale of limited edition T-shirts
Place• Initially Bangalore, New Delhi, Hyderabad orMumbai were the options• Greater Noida was selected as it was seen asIndia’s first world city• An ideal place to show off an ideal, developedIndia to the Crème de la Crème that would attendthe event• An Attraction for FII
STPTargeting Engineers, Sports Fanatics, Socially active people, Motor Sport fansand Investors outside IndiaCurrently consumers look at cars as a means of getting around, They look for the mostcost and fuel efficient cars in the market.The event was positioned as a premium, exclusive sport that represents cutting-edgetechnology, reliability, speed, efficiency, teamwork, high performance, innovation,dynamism, fun and glamour (Positive values that companies can spend decades trying toassociate with their brands)With the Force India F1 team in the sport and emotional quotient is brought our in thepositioning and promotions
Impact of F1• The most viewed F1 race in India ever• The Indian Grand Prix has the potential togenerate around $170 million in revenue andemploy as many as 10,000 people.• India is not only about Cricket• A substitute for cricket• India is now one of the few privileged countriesthat has it’s own F1 track
Formula 1 India: FAD or Fashion?The tickets are extremely expensive, Yet the sport receives strong commercialsupport from brands eager to link themselves with the glamour and prestigeassociated with the eventThe Sport is set for the elite and since the Indian Dream is to make itbig, Attendance at this annual event creates as sense of statureThe Huge cost for maintenance for a two day event and the fact that break evenwill be achieved only after 4 years may say otherwiseTeam Force India is creating an environment of National Pride as shown atCricket matches
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