marketing program for f1 malaysia gp 2010
DESCRIPTION
assignment for Marketing ManagementUPM GSM MBA 2009/2010Lecturer: Dr Kenny TeohTRANSCRIPT
Fairus Binti Radin Mohd Ali GM03190 Hema Latha A/P Kumaresan GM03610 Tung Wai Chee GM03578Chung Lee Lee GM03634Siti Noraida Shaikh Abdullah GM03538
Marketing Program for F1 Malaysia
Background
of F1
Inception of F1 in Malaysia
Market Survey
PEST &
SWOT
FinancingAction
Plan
Marketing Plan
Strategic Planning
wants & needsKNOW OURSELVES
SCAN THE ENVIRONMENT
- External & Internal
Recommendation for Future
Differentiation??Niche??
Low Cost??
Known as “Formula 1”
or “F1”
World’s Most Expensive &
Glamorous Sports
Highest Class of auto racing
BACKGROUND
F1
Grand Prix
Competition
Popularity
& Commercials
Teams
&
Drivers
INCEPTION OF F1 IN MALAYSIA
Bernie EcclestoneTun Dr. Mahathir
Portuguese GP
Negotiation >>>
MARKET SEGMENTATIONSEGMENTATION
FACTORS
DETAILS
Geographic Global
Demographic:
1. Age
2. Gender
3. Income
4. Education Background
21 ≥ 49
Male and Female
RM24,000 ≥ RM75,000 per annum
Tertiary Education
** Source: The Formula One Teams Association (FOTA)
www.caseynealracing.com
SEGMENTATION
FACTORS
DETAILS
Psychographic:
1. Social Class
2. Personality
1. Lifestyle
Middle and Upper Social Class with
Disposable Income
Sporty, Bold, Adventurous, Aggressive,
Technology savvy.
Aspirers, Explorers, Succeeder
(based on Cross Cultural Consumer Characterization model)
Behavioural:
1. User Status
2. Loyalty Status
Regular, Moderate, Infrequent fans
Heavy
MARKET NEEDS-SPECTACULAR EXPERIENCE
Source: The Formula One Teams Association (FOTA)
“ 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 businessmanChairman of the United Breweries
Group and Kingfisher Airlines
MARKET NEEDS - SENSE OF PRESTIGE
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• instant entry into some of the best clubs• VIP tables at restaurants • VIP tickets of the F1 Rocks concert
MONACO – STREET RACE• luxury Caribbean yacht charters• cruises and champagnes
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
• To date, there are 6 GP Organizers in in Asia:Malaysia, South Korea, Japan, Bahrain, Chinaand Singapore
• The circuits in Bahrain and China weredeveloped further based on the SIC’s conceptby the same designer
• Foreign fans are now given more options inwhich Asia country they want to catch therace
COMPETITION BETWEEN THE ORGANIZERS
Source:
COMPETITION BETWEEN THE PLAYERS IN THE MOTORSPORTS
SUPER GT MALAYSIAN RALLY CHAMPIONSHIP
• A total of 39,486 in spectators in
2009 (Source:http://www.malaysiangp.com.my/news/super-gt-
39486-spectators-came-super-gt
• Use street cars
• Japanese fascinating race queens
• Major spectator-sport event coming
second to the Formula One race (Source: www.virtualmalaysia.com )
• Sanctioned by FIA
• Broadcasted to a potential 60 million
audience with over 176 broadcasters
PEST ANALYSIS
POLITICAL• Internal Political Stability• Strong Malaysian Government Support
ECONOMIC • Global Slowdown Negatively Impact F1
SOSIAL• Passion For Speed / Racing – Mat Rempit• Malaysian Spending Power
TECHNOLOGY• Regional Auto Hub• 1Malaysia F1 team – transfer of technology• Tertiary Education in Automotive Industry
SWOT ANALYSIS
• 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
STRENGTHS
SWOT ANALYSIS
• 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
WEAKNESSES
OPPORTUNITIES
Team Lotus F1 Coffee, Tea or Me? Schumi
• Intense Price War between MAS and Air Asia
SWOT ANALYSIS
• Second Wave of H1N1• Weather• Competition among GP Organizers• Competition among Motorsports• Negative News on the Internet
THREATS
“F1 is an unnecessary waste of public resources …”
differentiation niche
BEST cost provider
Mission:
“F1 for ALL”
MARKETING STRATEGY
(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
MARKETING OBJECTIVES
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
TARGET MARKET
POSITIONING
TRULY VALUE!!!F1 GP destination
PricePrice (by Sitting Arrangement)
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
Corporate Platform
Corporate Suite
F1 Paddock Club
Ticketing Channels
Ticketing Channels
e-ticketing
travel agents
Preferred Agent and Authorize
Agent
Internationally tickets agents
Logo and Tagline“Alive with Adrenaline”
Customer Service
- Hotline and email
- Transportation
Grid Girls
Food and Beverages
Safety and Health
126,690 spectators
2010 ???
RM62.5 million or more
REVENUE FORECASTS
Source: Malaysia Airport Berhad (MAB) annual report
BUDGETED MARKETING EXPENSES
Shaping the offerings,
5%
Advertising, 30%
sales promotion,
15%
events and experience,
40%
PR and publicity, 5%
Direct marketing,
5%
Avenues Budget (%)
Marketing Cost (RM)
Shaping the offerings 5% 1,000,000
Advertising 30% 6,000,000
Sales promotion 15% 3,000,000 Events and experience 40% 8,000,000
PR and publicity 5% 1,000,000
Direct marketing 5% 1,000,000
Total Budget 20,000,000
RM(million)
Forecasted Revenue 62.5
Less: Budgeted Marketing Costs -20
Available disposable revenue 42.5
% of available disposable income
from total revenue68%
EXPECTED REVENUE 2010
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.
