introducing formula 1 racing to the united states

Formula 1

RacingBringing Advanced Technology and Speed

to the United States

Presented By:

Michael Kanago

Marsha Buchanan

Scott Horn

Paula-Kaye Herdsman

Carrie Qin

NASCAR? NASCANT!

• Jeff Gordon couldn’t have said it better

“If they want to see the most technically advanced car that

exists...faster than anything that is humanly possible in your mind, then

go and see a F1 race”

Formula 1 vs NASCAR Demographics

• Wealthy, educated Males: mid 20’s-mid 40’s

• Average disposable income of $70,000

• Mainly in the Northeast

Formula 1:

NASCAR Demographics

SWOT Analysis

Strength Highest class of auto racing

Perception: most expensive, high-end and glamorous sport

World-wide fan following

Highly advanced purpose-built fallacy

Weakness No famous local racer

Expensive tickets

Haven’t gained an American fan base

Perception: dangerous, lack of entertainment

Opportunity Creating more job opportunities (add to the economy)

The success of the host of US F1 in Austin-Texas

Americans’ enthusiasm toward sports and advanced technology

Convenient transportation, lower air ticket price

Threat Competition with NASCAR

The popularity and loyalty of other sports in the US (football)

Miss out financially

MLS and Formula 1: A Blueprint

Major League Soccer

• 3rd largest attendance in U.S. pro sports

• Largest growth rate of any U.S. pro league

• 10th largest attendance rate of any professional soccer

league

• 2nd youngest fan base; 3rd highest average income

MLS and Formula 1: A Blueprint

Source: theatlantic.com, 2014

MLS and Formula 1: A Blueprint

The MLS Recipe for Success

• Know your (young, liberal) demographic

• Follow the (urban) money

• Think of the children

• Import

MLS and Formula 1: A Blueprint

Source: sportworldmap.com, 2014

Proposal: Sponsorships

• Acura, one of our clients, is owned by Honda

• Honda is getting involved in Formula 1 racing

• Lower barrier of entry

Proposal: Sponsorships

• jetBlue: another client of Mullen

• Provides international travel

Proposal: Sponsorships

• Red Bull sponsors two top 10 F1 drivers

• Broad digital/social media presence

Proposal: Sponsorships

• Under Armour invests in technology

• Niche markets

Proposal: Sponsorships

• American “Craft beer” of AB-InBev

• Access to major urban markets

• Largest growing bev. segment

among young, affluent pros

Proposal: Sponsorships

• NBC is bringing Formula 1 to a larger audience

• NBC heavily promoted the Monaco Grand Prix

• John Miller, NBC Sports Group President: F1 is a “perfect fit”

Advertising Tactics: Social Media

• Formula 1’s Facebook page: nearly 370,000 Likes

• Red Bull’s Facebook page: nearly 45 million Likes

• Red Bull Racing’s Facebook page: nearly 4 million Likes

• Cross-share links of different pages

• Boosts Formula 1’s number of Likes

Social Media Continued

• Instagram: 15 second videos and pictures

• @F1’s Twitter: 924,000 followers

• Snapchat: joined the advertising game

• Formula 1 mobile applications

Advertising Tactics:

Magazine/Digital

dadfsd

Magazines Continued: Popular

Science

Readership Demographics

Advertising Tactics: Out-of-Home

Signage in urban areas of interest

• Digital Billboards,

public transit hubs

• High visibility &

impact in drawing

new consumers

Advertising Tactics: Promotional Events

NBC Sports Group Sponsored Documentary

• Spiritual sequel to NBC’s 2014 F1 film, “1”

• Explore the sport’s great American drivers

• Follow Gene

Haas’s pursuit of

American F1 team

Advertising Tactics: Promotional Events

Sponsored “Formula Chicago” city race

• Red Bull, Goose Island,

jetBlue, Under Armour, etc.

• Watch parties in MLS

cities, sponsored by

Red Bull

Implications

Formula E Racing

Corporate Social Responsibility

• 150 MPH

• Two zero Emission tanks

• 25-30 Minute Battery Life

•Speed up electric car

development

Baby Formula 1

Junior Formula Racing

• Camps

• Junior Leagues

• Clubs for Kids

• Ages 5-17

• Girls and Boys

2014 Racing

Implications

1. Corporate Social Responsibility

2. Stealth Marketing via young crowd

Bibliography

• (n.d.). Retrieved September 14, 2014, from http://www.f1outdoors.com/f1-outdoors-kart-racing-for-kids.asp

• (2014, September 14). Retrieved January 1, 2014, from http://www.mirror.co.uk/news/world-news/formula-

1-cars-given-electric-41888

13

• 2014 Popular Science Media Kit. (2014, January 1). Retrieved September 12, 2014.

• "About." mullencom RSS. N.p., n.d. Web. 10 Sept. 2014. <http://www.mullen.com/about/>.

• "HLG Nascar Licensing and license negotiations." HLG Nascar Licensing and license negotiations. N.p., n.d.

Web. 15 Sept. 2014. <http://www.hlglicensing.com/nascar.htm>.

• "Hill Holliday." Can F1 Finally Break in to the United States?. N.p., n.d. Web. 12 Sept. 2014.

<http://www.hhcc.com/thinking/can-f1-finally-break-in-to-the-united-states>.

• "Honda Returns to F1 Racing as Engine Supplier to McLaren." Bloomberg.com. Bloomberg, n.d. Web. 15

Sept. 2014. <http://www.bloomberg.com/news/2013-05-16/honda-returns-to-f1-racing-as-engine-supplier-to-

mclaren.html>.

Thank You

Questions?