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Marketing Program for F1 Malaysia GP 2010
 

Marketing Program for F1 Malaysia GP 2010

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assignment for Marketing Management

assignment for Marketing Management
UPM GSM MBA 2009/2010
Lecturer: Dr Kenny Teoh

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    Marketing Program for F1 Malaysia GP 2010 Marketing Program for F1 Malaysia GP 2010 Presentation Transcript

    • Marketing Program for F1 Malaysia Fairus Binti Radin Mohd Ali GM03190 Hema Latha A/P Kumaresan GM03610 Tung Wai Chee GM03578 Chung Lee Lee GM03634 Siti Noraida Shaikh Abdullah GM03538
    • SCAN THE ENVIRONMENT KNOW OURSELVES  wants & needs - External & Internal Background Inception of Market PEST & of F1 F1 in Malaysia Survey SWOT Action Marketing Strategic Financing Plan Plan Planning Differentiation?? Niche?? Low Cost?? Recommendation for Future
    • BACKGROUND Highest Class of auto racing Known as “Formula 1” or “F1” World’s Most Expensive & Glamorous Sports
    • Grand Prix Teams & F1 Competition Drivers Popularity & Commercials
    • INCEPTION OF F1 IN MALAYSIA Portuguese GP Negotiation >>> Tun Dr. Mahathir Bernie Ecclestone
    • ** Source: MARKET SEGMENTATION The Formula One Teams Association (FOTA) www.caseynealracing.com SEGMENTATION DETAILS FACTORS Geographic Global Demographic: 1. Age 21 ≥ 49 2. Gender Male and Female 3. Income RM24,000 ≥ RM75,000 per annum 4. Education Background Tertiary Education
    • SEGMENTATION DETAILS FACTORS Psychographic: 1. Social Class Middle and Upper Social Class with Disposable Income 2. Personality Sporty, Bold, Adventurous, Aggressive, Technology savvy. 1. Lifestyle Aspirers, Explorers, Succeeder (based on Cross Cultural Consumer Characterization model) Behavioural: 1. User Status Regular, Moderate, Infrequent fans 2. Loyalty Status Heavy
    • MARKET NEEDS-SPECTACULAR EXPERIENCE Source: The Formula One Teams Association (FOTA)
    • MARKET NEEDS - SENSE OF PRESTIGE “ F1 is the crown of motorsport and it is my style to look at the crown and not at the grass roots” ~ Dr Vijay Mallya ~ Indian businessman Chairman of the United Breweries Group and Kingfisher Airlines
    • MARKET NEEDS - DISTINCTION (VALUE FOR MONEY)
    • MARKET NEEDS - GOOD HOSPITALITY • Well organised and efficient transportation system • Wide selection of quality accommodations • Effective ticketing system • Good facilities - clean toilet, well-maintained seats • Wide range of quality food in accordance to international taste
    • MARKET TREND - NIGHT RACE -
    • MARKET TRENDS – POINT OF DIFFERENCE • Grand Prix organisers are striving give the event its own identity • In addition to on the-track experience, the organizers are competing in adding glitz, glamour and a sense of luxury occasion to the racing fans.
    • SINGAPORE – NIGHT RACE MONACO – STREET RACE • instant entry into some of the best clubs • luxury Caribbean yacht charters • VIP tables at restaurants • cruises and champagnes • VIP tickets of the F1 Rocks concert ABU DHABI – TWILIGHT TO NIGHT RACE • offers sophisticatedly design circuit • offers stunning luxury hotel intertwined with the raceway • offers World’s first Ferrari Theme Park, marinas, golf courses and yacht clubs
    • COMPETITION FOR F1 MALAYSIAN GP
    • COMPETITION BETWEEN THE ORGANIZERS • To date, there are 6 GP Organizers in in Asia: Malaysia, South Korea, Japan, Bahrain, China and Singapore • The circuits in Bahrain and China were developed further based on the SIC’s concept by the same designer • Foreign fans are now given more options in which Asia country they want to catch the race Source:
    • COMPETITION BETWEEN THE PLAYERS IN THE MOTORSPORTS SUPER GT MALAYSIAN RALLY CHAMPIONSHIP • A total of 39,486 in spectators in • Major spectator-sport event coming 2009 (Source:http://www.malaysiangp.com.my/news/super-gt- second to the Formula One race 39486-spectators-came-super-gt (Source: www.virtualmalaysia.com ) • Use street cars • Sanctioned by FIA • Japanese fascinating race queens • Broadcasted to a potential 60 million audience with over 176 broadcasters
    • PEST ANALYSIS • Internal Political Stability POLITICAL • Strong Malaysian Government Support ECONOMIC • Global Slowdown Negatively Impact F1 • Passion For Speed / Racing – Mat Rempit SOSIAL • Malaysian Spending Power • Regional Auto Hub TECHNOLOGY • 1Malaysia F1 team – transfer of technology • Tertiary Education in Automotive Industry
    • SWOT ANALYSIS STRENGTHS • Strategic Location of SIC – easy to reach • SIC is One of World Best Circuit • World Wide F1 Fan Base – Large Followers • 11 Years of Experience in Hosting F1 • Strong Malaysian Government Support & Sponsorship Backing • Cheap Ticket Price • Spatial Convenient • Medical Team is ISO Certificated
    • SWOT ANALYSIS WEAKNESSES • Lack of Entertainment/Amusements in close proximity of SIC • SIC is not Disable-Friendly • SIC has Poor Lighting Technology (not possible for night race) • No Local F1 Drivers
    • OPPORTUNITIES • Intense Price War between MAS and Air Asia Team Lotus F1 Coffee, Tea or Me? Schumi
    • SWOT ANALYSIS THREATS • Second Wave of H1N1 • Weather • Competition among GP Organizers • Competition among Motorsports • Negative News on the Internet “F1 is an unnecessary waste of public resources …”
    • MARKETING STRATEGY  differentiation  niche  BEST cost provider Mission: “F1 for ALL”
    • MARKETING OBJECTIVES (1) to have full house at SIC on race day (2) to create a uniquely unforgettable experience to the spectators through excellent hospitality (3) to increase F1 fans in Malaysia by converting available and ambient nonusers to users (nonfans to fans) through awareness of Malaysian GP, and bridging the gap between the F1 fraternity and the mass market (4) to maximize the boosts from gate proceeds and tourism spin-offs (5) to gain strategic partnership with more companies to co-sponsor the race
    • TARGET MARKET 1st group: local middle to upper class of income white collar corporate professionals 2nd group: foreign F1 fans 3rd group: high net worth individuals (elite) & corporates 4th group: blue collar workers, under-graduates, high-school students and retirees
    • POSITIONING TRULY VALUE!!! F1 GP destination
    • Price (by Sitting Arrangement) Price
    • Type of Tickets Price (RM) DIAMOND 2,600 SAPPHIRE 1,700 EMERALD 1,700 CRYSTAL 1,200 TURQUOISE 1,200 JADE 1,200 TOPAZ 700 CITRINE 500 TOWER NORTH 500 TOWER SOUTH 500 TOWER 1 (LOWER) 500 TOWER 2 (UPPER) 2,000 Other GRANDSTANDS 800 HILLSTAND COVERED 200 HILLSTAND NON-COVERED 100
    • Packaging – Distinctive Offering F1 Paddock Club Corporate Platform Corporate Suite
    • Ticketing Channels e-ticketing Internationally Ticketing travel agents tickets agents Channels Preferred Agent and Authorize Agent
    • Logo and Tagline “Alive with Adrenaline” Customer Service - Hotline and email - Transportation
    • Grid Girls
    • Safety and Health Food and Beverages
    • REVENUE FORECASTS 126,690 spectators RM62.5 million or more 2010 ??? Source: Malaysia Airport Berhad (MAB) annual report
    • BUDGETED MARKETING EXPENSES Avenues Budget Marketing Direct Shaping the (%) Cost (RM) marketing, offerings, Shaping the PR and 5% 5% offerings 5% 1,000,000 publicity, 5% Advertising 30% 6,000,000 Advertising, 30% Sales promotion 15% 3,000,000 events and Events and experience, sales experience 40% 8,000,000 40% promotion, 15% PR and publicity 5% 1,000,000 Direct marketing 5% 1,000,000 Total Budget 20,000,000
    • EXPECTED REVENUE 2010 RM(million) Forecasted Revenue 62.5 Less: Budgeted Marketing Costs -20 Available disposable revenue 42.5 % of available disposable income 68% from total revenue
    • RECOMMENDATIONS Installation of a lighting system to facilitate the night races in the long run. More amenities at Sepang such as hotels, an amusement park, an indoor entertainment arena, a duty- free zone and even a bigger and grander motorsports museum.