US GP in Austin Discussion and Speculation...

Racing is important. All this without a race in the US. Great results for the BRAND Big push on merchandising. Interesting read.

http://www.ferrari.com/English/about_ferrari/Corporate/Pages/101026_COR_Ferrari_Board_of_Directors.aspx

 

12 teams, half of which sell cars:
Renault, MB, Ferrari, Lotus, Caterham, McLaren

Math is hard

Add to that Lada and Tata. And for the rest of the teams it is a showcase of high tech for their sponsors.

Say what you want, I'm sticking to my line of reasoning.

 

Yes, another interesting question to ask of any Mercedes buyer, "Who are the two drivers for Mercedes Grand Prix?" Not even any signage in our local dealer, one of the Midweat's oldest, I would bet no more than 2 or 3 workers there could answer that Q.

Haven't seen too many Lotus or Renault dealerships, and McLaren are interested in stores on Rodeo Drive and the like.

Tata, Lada?? Seriously???

F1 is followed by a fair number of educated people over here, but even in a RACING town like Indy, the first GP drew some very surprised and disappointed local punters. So Austin or NJ are going to be different/better in what way and appeal to a consistent large attendence? It's been a long while since an F1 Long Beach GP, but even now, the EVENT draws a large group. Same with Montreal, a lot of knowledgable fans into a small geographic area which over the years has evolved a great surrounding complex of parties/events. I like Montreal atmosphere as much as Monaco.

 

This is false logic. You can't draw the conclusion you did from the data. Perhaps Ferrari sales would be even higher if F1 was more prominent in the USA?

Either racing has an ROI or it doesn't. I would submit that it must, because the teams spend billions to be there. F1 is a big, big business.

So given that racing does have an ROI, it's also true that the ROI must be derived from eyeballs watching the races either in person or on TV. You could argue that since the races are televised in the USA, no domestic races are necessary, but it's also been shown that local participation (in the form of teams, drivers and events) significantly increase viewership. That's why Spain got 2 races for a while, and why Germany did when Schumi was kicking butt.

 

You're being a coy here, I think.

Let's think about the most macro level. The reason these guys run around the track is for marketing, and for indulgence of rich guys. The last of those is only relevant for guys like Mallya and Mateschitz, not corporations like Mercedes and Ferrari.

And fundamentally, that means eyeballs seeing the cars and the ads they carry, and the brand awareness and reverence that is associated with winning races and beating others. The highest ROI would be in places where you stand to gain the most. For most of the manufacturers, that is the USA. It's possible for a company to earn a good living not selling anything in the USA (Renault), but there is no scenario where being in the USA isn't beneficial to the teams and sponsors. Since the USA is the biggest market by a huge amount, it is more beneficial to be here by a huge amount.

That doesn't mean F1 is dead without the USA, it just means that of the places where F1 stands to gain the most, the USA is at the top of that list.

Philip Morris sells more in the USA, AFAIK, than any other market. Whether the funding comes from Ferrari or from Marlboro, it's still based on financial benefit derived from people watching the sport. And having high penetration in a rich market is more valuable than in a poor or small one.

I think you're answering the question right here So you say Ferrari's marketing department sucks - I agree. So what has caused their sales success? Look at their sales compared to their success in F1.

Race on Sunday, sell on Monday is a cornerstone of automobile racing - and it's held over all these years because it's true. No company is exempt from the rules of business. I can't actually think of any company that proves the "win on Sunday, sell on Monday" line more than Ferrari. They are a textbook case.

 

Couldn't agree more and I'm amazed folks don't grasp such an obvious and simple concept. It is the very reason for why any sponsor gets involved in any kind of motorsports.

And if your product is Red Bull, well guess what: You'll sell more of your drinks on Monday.

 

I went to Le Mans in 1963 when I was 10 years old. I wanted to one day own a Ferrari from the minute I got there and saw Bandini's car. I finally achieved that dream 4 years ago. That is one data point for win on Sunday and buy on, well, eventually a Monday......

 

I went to the Montreal GP in 2008, my first F1 race. I had despised Ferrari up to that date, from that moment on I was determined to own one, and in May 2008 I bought my first. The Ferrari experience sold me, and I am a lifer because of it. Though a McLaren may be in my future as well.

Ferrari knows that it's brand drips with marketing, they have it right, and MB/Mac, and Renault understand this as well.

 

All true without an F1 race in the US. Plenty of growth and no race in the US. Ironic isnt it. Largest market for Ferrari and no race there....

 

We're a little OT here, but my point was to mean that there is not a huge number of people salivating at the opportunity to attend a Grand Prix. There will be initial, 'first event' interest, but will tail off quickly as seen in most previous attempts in the US.

The old "If you build it" addege is a tough pill when the bill is around the $400K, especially in current times. The NY/NJ model may be more appealing in the longer for many outside visitors. Indy had nothing other than the race to offer, and it was heard repeated often around the bars/restaurants. I didn't care, I saw many old friends and associates when they came into town, I left my house at 10:30 Sunday and was home by 5:30, perfect. Only problem I had was getting back in with my trailer to pick up the Shadow from the HGP area.

 

Ferrari had it's ups and downs in US sales as well, it is not true that they are selling out completely.

Yes the sell here the most because it is the biggest market (I think that is also true for MB) but they could do better.

Also let's not be so shortsighted: Read Axecent's post. Tomorrows Ferrari buyers are today's kids and they don't get the chance to go to a US GP.

You live in Europe. If you loose the German GP you still have 7 alternate GPs to go to. Here in the US we only have Montreal as a weekend trip

 

I take the Ferrari out to all kinds of local events. Unfortunately, Ferrari sightings are rare around here. Many kids have sat in the driver and passenger seats and a few have taken a ride around the block. FWIW, I have never seen anything but BIG smiles, and most of those kids will remember the day they sat/rode in a Ferrari, likely for the rest of their lives. No other car I own illicits that response because, surprisingly, most know the Ferrari marque.

 

And I dare say none of those kids have ever watched an F1 race.

 

I don't know...let's not forget that video games play a role in this. When I was a kid, the game F-1 World Grand Prix was what got me interested in F1:

http://en.wikipedia.org/wiki/F-1_World_Grand_Prix

The unfortunate thing was I had no clue what channel the races were on and would only be lucky enough to catch them. Of course, we didn't have DVR then

Now, kids have F1 2011 and promise to have many more to come. That title was released in very late September and has sold nearly 105,000 copies in the USA alone.

That's 105,000 households in the USA that is exposed to F1 on that level. I'm an optimist, but I think that if you pair that with an actual race (or 2!) in the US, the interest amongst youth would be great.

 

Just like "Guns of War" (or whatever the war game of choice is) has them lining up outside the recruiting depot huh? Agree that the technology within F1 may intrigue some to become involved. But again there's that 100K figure, seems to be the cap at which any discussion about USA/F1 seems to peter out. A very small percentage of the population.

 

Consider that the Beeb had 6.1 MILLION watching the Monaco GP this year!!

my niece who lives and works in Dubai, took herself and several friends to their GP since the tickets were essentially free to residents.

100K+ trudge through the mud and crap every year for Silverstone, same at Monaco, Monza (granted, no mud at those normally) as well as the other established events. And have done for well over 30 years.....

The public will not support a race nowadays at new venues in those types of numbers, attendence quickly falls away. It will in Austin and NJ both....

 

Growing up in Texas (born in 79) I had no idea what Formula 1 was until I was 18 y.o.

And there was a GP in Dallas when I was 5! My dad was GM of one of the hotels team support staff stayed at. He doesn't remember who. Because F1 didn't move the needle for him either!

 

I really hope it doesnt fall off. Austin has me slightly pessimistic with its lack of information and the feeling its just not up to speed/weak management and program. NJ/NY has yet to show anything as they have but must sooner than later.

 

I don't see how committing to serve your country and possibly risking your life in armed conflict is in ANY way related to interest in sports. Is there any doubt that games like Madden or Tiger Woods increase brand equity?

I am a youth mentor and I personally have dozens of teenage guys intensely interested in F1; many of them DVR every race.

 

I'm not giving up hope for a US F1 race even if it is not in Austin but I do think it would be a crying shame too put all that time,money and effort into a project that secretly was setup for failure in the first place imho.

 

Ooo dozens. Hope they can go and find a seat in Austin.

Playing any of these games are fantasy playing whether F1, golf, war. your argument is that Tiger Wood golf will start youth playing the real game? My son is a lifer USMC, plays TW golf, real golf, grew up with my heritage from F1, but only went to two of the GPs here with me. Heck I had a hard time reselling most of my 12 tickets, even year one, and they were great seats high in J. Gave em away one year to the first person to PM me on this forum.

 

There is a licencing fee for the sanctioning groups and sure for Ferrari too, that's the point, it will sell with/without a GP. Sure you may see some added sales, but those add to the Ferrari bottom line, won't keep COTA's gates open.

 

pit building.

retaining wall.
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Pessimistic much? That is a sure-fire way to bring more people to this sport in the US. I'm just glad you aren't cynical.