marketing program for f1 malaysia gp 2010

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.