Automotive Marketing and Sportscar Racing. Any opinions?

[Rodger Davies]

Hello good folk of ten-tenths.

In my head, I wrote a long article about the marketing of sportscar racing (actually, about a year ago I did, but it was on a computer that was stolen).

As the point of racing in emerging markets is raised in several threads, most recently in the “Are British fans losing out?” topic, I thought I'd note down these thoughts again, in case anyone was interested. If you're not, no offence taken, and even if you are you'll be doing well to read to the end of this rather poorly written draft which I haven't yet re-read.

OK, let's begin...


Intro

We have to remember that marketing is a lot more complex than simply racing in a country to sell the car the next day; the 'win on Sunday to sell on Monday' concept simply no longer exists in today's world of media and information sources aplenty. It's my belief that sportscar racing is greatly misunderstood in many a boardroom; one where its purpose is not entirely understood and taken on board due to the rather unique position it occupies even among other forms of motor racing.

These days, you have to look at all number of things and in sportscar racing that falls into three main categories.


Category 1 - Marketing upon technology

OK, this isn't huge and until now it's such a false dawn for marketing that there's no proven experience of this approach. This is the "aren't we green!" approach that's taken from everyone between car manufacturers and shampoo brands. The number of people who's purchasing decisions are actually based on a 'green' agenda are few and far between and I don't see it as any great coincidence that the ALMS has failed as it's desperately tried to promote itself in this manner. It's a corporate image boost but with few tangible benefits compared to factors such as desire and price. In this context, desire is the one we are chasing.

That's not to say this has no relevance at all. Although 'green' programmes might not be as influential as bandwagoning marketeers initially believed, the exposure gained as a result of them further emphasises any success that they have. Media outlets looking for a story will give preference to technology leaders such as these and the small section that is influenced by this area of media is both a powerful and influential one.



Category 2 - Marketing based on exclusivity

This approach should not be underestimated. For a brand, any brand but luxury ones in particular, creating tangible benefits for those who have bought in is crucial for two reasons. Firstly, you keep those who have bought in loyal and, secondly, you create a higher perception of status to those outside. Corvette Racing is the best current example of this, and the legions of fans that flock to the circuit in the way football supporters follow their team are a key part of retaining a brand's appeal.

The perceived exclusivity and creating the feel that buying into that brand will allow you to join a 'members club' enhance the value attached to it. Methods such as these are how BMW keeps it's perceived exclusivity as higher than other volume saloon manufacturers and its successful racing programmes have always played a part in that. In fact, BMW have openly stated in the past that this is a main reason for programmes such as the WTCC, to act as a reward or participation scheme not just for customers but for employees and dealerships. Other examples are brand magazines that the automotive companies send to their customers. Alfa Romeo's is a fine example, full of subsidised adverts from other luxury brands and items that create an atmosphere within which the member of the 'club' can associate their membership with that of other exclusive goods.



Category 3 – Marketing based on brand building

This is split into two different sections again: future markets and future generations. Sportscar racing excels in these although very little value is actually placed upon it as it's the most difficult form of promotion to measure. The best example of this in modern times is the video game market. I know people that have never watched a sportscar race in their lives and couldn't place Le Mans on a map to within 300 miles say to me “oh, is that where the Toyota GT-One races” and cars such as the early 2000s BMW GT2s, JGTC cars and IMSA GT Nissans have been mainstays in mass-market console games for the last decade. There's no instant desire or means to go and purchase the cars of the game but each car that the user finds desirable helps create a definition and value to each brand that can play a part in decision in years to come. Sportscar racing's main benefit in this market is its distinctive and attractive cars. The immediate impact of ALMS campaigns may not create the ROI that return-happy boardrooms are looking for, but the long-term benefits are potentially endless. For instance, cars such as the Jaguars of the '50s and '80s, the Fords of the '60s, the Ferraris of the '50s and '60s and the Porsches of the '70s and '80s have created icons for those marques that their history is built upon.

OK, I had a point and here it is. The second part of this marketing concept is the future markets. The argument has been raised that China's car sales do not justify spending huge in racing within these specific markets but that is not the point at all. Developing markets are crucial for exactly that reason, they're developing. So they may not be able to buy a car this year, or next year, but if you race in front of a growing audience then those five years of building a brand in a country can reap huge rewards when that colossal market reaches the point at which it is able to invest in your marketplace. There's a huge gap in the Chinese, Indian and Brazilian markets to be filled should they become as prosperous as they are on track to be and beginning to develop a brand only when the market is ready would be economic suicide if your competitors have been there doing so for years preceding it.

This is also true of the series' themselves. Just because F1 is huge around the rest of the globe doesn't mean that the WTCC, SuperGT or WEC can't target this huge local market to develop its own fanbase.

This might sound far fetched at the moment, but think back to the days of the 1930s and Auto Union and Mercedes racing in Grand Prix all over the world. At the time the marketplace was not able to afford their wares, or even access them, but those brands are still established within those markets 80 years later, along with the Maseratis, Bugattis and Ferraris that they raced against, and all have benefitted from being an established name and image long before the populace was able to buy into the brands.


Conclusion

This is not to say that sportscar racing is without its negatives. I'll save that discussion for a future ramble, but for now I'll leave it by saying that all marketing in developing markets is as much art as science and there is no definitive way to tell what is most beneficial. In fact, in ten years time, there won't necessarily the means to be able to say exactly which programmes left the biggest legacy on the countries in question.

This isn't to say that I'm agreeing with FIA/ACO policies of late and, in particular, the taking of current markets for granted, but it gives some logic to each part of the calendars the global series are producing I hope.


End

If you're still reading, go take a break and sit down for a while! Well done, this needs much revision before I should have posted it, but there's my second draft......

By the way, if anyone's interested in my similar piece about the key media and market differences between sportscars and other motorsport, let me know and I'll tidy it up a little.