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Old 23 Dec 2004, 09:45 (Ref:1186582)   #1
GTRMagic
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New Sponsor For Kelly's Motorsport Holdings??

Whispers from the powder room suggest that the Kmart branding will not adorn the Kelly Motorsport Holdings cars in 2005.

It seems the major sponsor is looking to consolidate its business position rather than continuing this marketing tool.

More interesting is the mooted replacement sponsor... it seems a deal has been negotiated for HSV to become the title sponsor of this operation.....

... which begs the question about Mr Crawford... wanting to stay inside Tom's Army as opposed to putting up with the KelvinMonster on a daily basis...

I am not sure how comfortable that would make the "owner" of the "Official Factory Holden Team" right about now.... especially with PWR leaving the family so to speak as well...

Interesting times....
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Old 23 Dec 2004, 10:08 (Ref:1186607)   #2
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Why would HSV want to back PWR when they already have some backing into HRT.

Kmart racing has been a big success, and i think ColesMyer would be crazy not to continue it.

How much money would it cost ColesMyer per year anyway to sponsor the Kmart team ?
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Old 23 Dec 2004, 19:43 (Ref:1186992)   #3
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Based on the numbers of HSV's sold each year, about $250-300 per vehicle sold would run the race team.

In Europe, Renault once used one single car brand at $100 per unit sold to fund an F1 engine program.

It works and it's an easy way to spend marketing money.
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Old 23 Dec 2004, 23:59 (Ref:1187140)   #4
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It might be an easy way to spend Marketing Money, but how effective is motorsport as a marketing tool (ive had this discussion with some of my Marketing University Lecturers a few times)..

Marlboro pays $90 Million a year to have their name on the Ferrari F1, but how many people directly start smoking Marlboro's because they are on the Ferrari car.

Kmart puts money into V8's, but does it increase the amount of customers K-mart has ? very minimally.

Motorsport as a marketing tool (according to myself and marketing lecturers with doctorates!) is mainly just about product awareness. You arent going to sell products directly through sponsoring motorsport. Thats why you see Russel running number 98, and Castrol Formula R on the cars instead of just the conventional names..

Most people in Australia have an awareness of Kmart, thus motorsport funding becomes unviable.

Look around the V8 grid... the majority of the cars have what i would call "new" sponsors ... BJR has Virgin Atlantic, Dynamik has DODO,

Generally you see only emerging companies (DODO, Virgin Atlantic), and companies that have something to benefit from motorsport (Oil Companies developing new products.. etc.)

Those companies that find themselves in between those who (Kmart for example), find themselves making a quick exit from motorsports sponsorship.
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Old 24 Dec 2004, 00:26 (Ref:1187147)   #5
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DKGandBH has a lot of promise if they can keep it on the circuit!
Sponsorship is not necessarily there to attract "New Buyers".
It is also there (in a major way) to "convert" the "Old Buyers"

eg, get them shopping at K-Mart INSTEAD OF "big W" (for example)

The same applies to Winfield (they want to shange the existing smokers brand, not create new smokers)

D.
P.S. that last statement was very tongue in cheek :-)
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Old 24 Dec 2004, 00:29 (Ref:1187150)   #6
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Yeah... but the bean counters at Kmart are going to put it this way..

We can spend $5 Million a year on a V8 Team.

Or we can spend the $5 Million on extra prime-time advertising or a few more 15% off days.

Which is more beneficial to the organisation ??? that is the $5 Million dollar question.
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Old 24 Dec 2004, 00:47 (Ref:1187161)   #7
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You have to remember that the Motoring industry is the only industry with its own sport, which makes it the best place for the motoring industry to market/advertise its products. Kmart Tyre and Auto would benefit hugely from the K-mart Racing team.
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Old 24 Dec 2004, 01:27 (Ref:1187179)   #8
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This RENAULT program was not only about product awareness, it was very successfully used as an engine development project, the results of which can be seen in today's products sold with the RENAULT branding.......

In Europe, Renault once used one single car brand at $100 per unit sold to fund an F1 engine program.

It works and it's an easy way to spend marketing money.[/QUOTE]
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Old 24 Dec 2004, 01:59 (Ref:1187194)   #9
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Originally Posted by jasonhill9884

Look around the V8 grid... the majority of the cars have what i would call "new" sponsors ... BJR has Virgin Atlantic, Dynamik has DODO,

BJR doesn't have virgin atlantic, and they won't have next season...

Sponsorship isn't all about just awareness though... I know of a sponsor in a team that signed a multi million dollar deal with another sponsor... synergy.. some companies target certain teams with the knowledge that they may be able to supply/service another partner in that particular network.
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Old 24 Dec 2004, 02:12 (Ref:1187202)   #10
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Originally Posted by Dirk
You have to remember that the Motoring industry is the only industry with its own sport, which makes it the best place for the motoring industry to market/advertise its products.
Golf
Swimming
Sailing
Bicycle
etc
.
.
.

D.
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Old 24 Dec 2004, 02:14 (Ref:1187204)   #11
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they are all sports, different from industry!
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Old 24 Dec 2004, 02:19 (Ref:1187206)   #12
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So no one makes golfing / push bikes products ?
I'm sure speedo would have something to add to the swimming arena.
There are a *lot* of boat manufacturers out there...have a look on the harbor in a few days.

Yes they are sports, but as with motor RACING, ther are closely allied with their respective INDUSTRY.

D.
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Old 24 Dec 2004, 02:58 (Ref:1187213)   #13
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Golf clubs came about as a sport, not as a means to beat peoiple over the head.

Boats is a valid point, but I am sure as popular as boat racing is, it's not as profitable as motor racing.

Bicycles are another good one, though.

The golf one is silly, though. The suppliers for motor parts and additives should get in strong here!

Anyway, back on topic.....
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Old 24 Dec 2004, 08:33 (Ref:1187289)   #14
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Quote:
Originally Posted by jasonhill9884
Yeah... but the bean counters at Kmart are going to put it this way..

We can spend $5 Million a year on a V8 Team.

Or we can spend the $5 Million on extra prime-time advertising or a few more 15% off days.

Which is more beneficial to the organisation ??? that is the $5 Million dollar question.
I dont believe K Mart are the major sponsor of the Kelly crew. They have naming rights but the 2004 web site suggests Holden are the largest contributors followed by Castrol - love to hear from someone who knows.
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Old 24 Dec 2004, 08:39 (Ref:1187292)   #15
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[QUOTE=Senna05]
Boats is a valid point, but I am sure as popular as boat racing is, it's not as profitable as motor racing.

QUOTE]
Alfa Romeo sponsor Neville Crichtons super maxi for international competition.

Konica Minolta are going to get advertising of their brand big time over the next few days.

You could argue these are sponsorships that motor sport has lost.

PS not related but I think HRT Kelly is driving a VZ as a road car over Xmas - only caught a glimpse but...

Last edited by cavvy; 24 Dec 2004 at 08:42.
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Old 24 Dec 2004, 08:45 (Ref:1187295)   #16
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Aren't ATECO the Australian importers for Alfa Romeo? Wouldn't that explain why Alfa is sponsoring a yacht?
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Old 24 Dec 2004, 10:31 (Ref:1187329)   #17
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Quote:
Originally Posted by jasonhill9884
It might be an easy way to spend Marketing Money, but how effective is motorsport as a marketing tool (ive had this discussion with some of my Marketing University Lecturers a few times)..

Marlboro pays $90 Million a year to have their name on the Ferrari F1, but how many people directly start smoking Marlboro's because they are on the Ferrari car.

Kmart puts money into V8's, but does it increase the amount of customers K-mart has ? very minimally.

Motorsport as a marketing tool (according to myself and marketing lecturers with doctorates!) is mainly just about product awareness. You arent going to sell products directly through sponsoring motorsport. Thats why you see Russel running number 98, and Castrol Formula R on the cars instead of just the conventional names..

Most people in Australia have an awareness of Kmart, thus motorsport funding becomes unviable.

Look around the V8 grid... the majority of the cars have what i would call "new" sponsors ... BJR has Virgin Atlantic, Dynamik has DODO,

Generally you see only emerging companies (DODO, Virgin Atlantic), and companies that have something to benefit from motorsport (Oil Companies developing new products.. etc.)

Those companies that find themselves in between those who (Kmart for example), find themselves making a quick exit from motorsports sponsorship.

Try having this discussion with Craig Gore. The exposure and awareness and business that WPS has achieved this year will make your lovely doctorate professors scratch their heads
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Old 24 Dec 2004, 10:35 (Ref:1187332)   #18
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Converting brand awareness into sales is something quite a few motorsport sponsorships have yet to achieve....
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Old 24 Dec 2004, 10:41 (Ref:1187335)   #19
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Aren't ATECO the Australian importers for Alfa Romeo? Wouldn't that explain why Alfa is sponsoring a yacht?
Correct! One suspects that it is a self-funded "advertising" campaign. Croakie has a superyacht being built almost continually and sells them off after little use in the Northern Hemisphere.

It's a money hungry sport, but where could he race Alfas down here for similar exposure?
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Old 24 Dec 2004, 10:51 (Ref:1187340)   #20
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Correct! One suspects that it is a self-funded "advertising" campaign. Croakie has a superyacht being built almost continually and sells them off after little use in the Northern Hemisphere.

It's a money hungry sport, but where could he race Alfas down here for similar exposure?
Sure of your facts? Crichton has had a very successful run (sail) since his last Sydney - Hobart. The boat was to come back for this years event but literally missed the boat. If it were a self funded exercise Alfa Romeo have had received big bucks worth of free advertising.
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Old 24 Dec 2004, 12:53 (Ref:1187427)   #21
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Alfa Romeo could always buy the rights off Audi to the safety car
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Old 24 Dec 2004, 23:17 (Ref:1187689)   #22
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Originally Posted by GTRMagic
Whispers from the powder room suggest that the Kmart branding will not adorn the Kelly Motorsport Holdings cars in 2005.

It seems the major sponsor is looking to consolidate its business position rather than continuing this marketing tool.

More interesting is the mooted replacement sponsor... it seems a deal has been negotiated for HSV to become the title sponsor of this operation.....

... which begs the question about Mr Crawford... wanting to stay inside Tom's Army as opposed to putting up with the KelvinMonster on a daily basis...

I am not sure how comfortable that would make the "owner" of the "Official Factory Holden Team" right about now.... especially with PWR leaving the family so to speak as well...

Interesting times....
Interesting to note too GTR, driving past the Clayton Business Park not soo long ago, I noticed the K-Mart Racing B-Double transporter had been completely de-stickered and in a nice shade of plain white. Perhaps in prep for a new sponsor? or just a new truck design?
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Old 25 Dec 2004, 01:34 (Ref:1187716)   #23
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Why would HSV want to back PWR when they already have some backing into HRT.
Would the rumour that Walkinshaw hates Skaife's guts have anything to do with it?? "Every Dog has it's day".
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Old 25 Dec 2004, 13:24 (Ref:1187816)   #24
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Over a beer with my uncle today for xmas... he seemed to hear a rumor from his dad (who happened to be a part of HDT in the early 70's), that Kmart Racing are to be rebranded "Kelly Motorsport" with a new sponsor..

apparentally its a bank..

I'll leave it up to your imagination 'Which Bank' it might be.....
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Old 25 Dec 2004, 13:52 (Ref:1187827)   #25
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Black and Yellow Commodores. Seen that before. Does look good though.
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