Category Archives: Motorsport

Formula One: Champagne returns to the F1 podium!

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The eagle eyed F1 fan may have noticed a new name featuring at the Monaco Grand Prix podium, that name, Carbon Champagne. As the name suggests, Carbon Champagne fits perfectly into the world of Formula One, with a unique carbon fibre surround crafted for  the premium champagne.

After Mumm Champagne transitioned motorsport involvement from Formula One to Formula E, a decision covered in detail here, Formula One Management partnered with sparkling wine brand Chandon. As followers of this website and  JWGP on Twitter, drivers and teams referring to Chandon as champagne had been a continual pet peeve of mine. With this in mind I applaud Formula One Management for bringing a true champagne back to the podium celebration.

Entering into partnership with Carbon Champagne represents a curious strategic development from Formula One Management and possibly hints towards an evolving business strategy. Carbon Champagne fits into the super premium drinks segment both in terms of quality and price point. A single bottle of Carbon Champagne costs between 10 and 20 times that of the podium product it replaces. This partnership perhaps reflects Formula One’s ambition to ensure the sport retains it’s status as the pinnacle of motorsport through association with brands unattainable to the typical fan. It is clear the sport is walking a tightrope seeking to broaden the appeal of the sport and grow the audience, whilst maintinaing and perhaps elevating its premium nature.

Typically the relationship between a champagne partner and a sports championship is more expansive than the three bottles drivers receive during podium celebrations. As a minimum, a champagne partner can expect to see all championship hospitality requirements to be purchased through this relationship. Beyond increased brand awareness earned through Formula One association, this sale will provide a clear return on investment for the brand against any sponsorship fee agreed. With Carbon Champagne this relationship could prove challenging due to the super premium price positioning of the product. Put simply, it may be challenging for Carbon Champagne to be made available within Grand Prix hospitality without increasing ticket pricing, a move unlikely to be well received by patrons of such said hospitality.

The Carbon Champagne Formula One partnership is one of the first under Liberty Media Management, however long the partnership lasts, it represents a clear statement of intent from Liberty Media. Decisions around championship partners will be made to build brand equity not dilute it.

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Formula One: No Mercedes power for McLaren in 2018

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Away from incredible on track performances this season, recent Formula One news has been increasingly fixated by the prospect of ‘divorce’ between Honda and McLaren, with a number of respected outlets and leading pundits suggesting the separation is already all but finalised.

Whilst frustrations around the on track performance of the McLaren Honda partnership are plainly visible for all to see, with senior representatives from McLaren doing little to calm stories, one key factor appears to have been forgotten. The FIA Sporting Regulations.

Within the FIA Formula One World Championship Sporting Regulations, all power unit manufacturers are required to submit a list of teams they will supply in the following season by May 15th.  Under this regulation both Honda and Mercedes have already informed the FIA of the teams which will be using their power units for 2018

No power unit may be used in a given Championship season unless the Power Unit Manufacturer supplying such power unit accepts and adheres to the following conditions.

Each of the Power Unit Manufacturers of an homologated power unit must :

i)  provide the FIA, before 15 May (or such other date as agreed in writing between all the Power Unit Manufacturers and the FIA) of the season preceding that in which such power units are to be supplied, with the list of teams (clearly identifying the appointed “works/factory” team, if any) to which a supply agreement has been concluded for the given Championship season ;

ii)  if called upon to do so by the FIA before 1 June (or such other date as agreed in writing between all the Power Unit Manufacturers and the FIA) of the season preceding that in which such power units were to be supplied:

T = 111-A/B-C

–  A = Total number of teams (including “works/factory” teams) having a supply agreement concluded for the given Championship season with a New Power Unit Manufacturer.

–  B = Total number of manufacturers of homologated Power Units for the given Championship season.

–  C = Total number of New Power Unit Manufacturers for the given Championship season.

provided that if the result contains a fraction then the fraction shall count as a full team (e.g. 11 teams divided by 4 manufacturers = 2.75, each manufacturer must, if called upon to do so by the FIA, supply at least 3 teams).”

Appendix 9 – FIA Formula One World Championship Sporting Regulations. 

Earlier today, confirmation was sought from both Mercedes and Honda as to the contents of the lists provided to the FIA in accordance with this regulation.

Honda stated their list submitted to the FIA documents Power Unit supply intentions for both Mclaren and Sauber. Mercedes confirmed their submission to the FIA references three teams, Force India, Williams, and the factory Mercedes team.

No provision is made within the Sporting Regulations around deviation from this commitment. With both Honda and Mercedes having stated intentions around 2018 it seems highly unlikely any change is planned or possible without the consent of all teams participating in the championship.

Formula One: Zak Brown’s strategic masterstroke?

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McLaren Honda’s announcement that Fernando Alonso will compete in the 101st running of the Indy 500 this week came at the perfect time for both the team and driver. After a more than challenging start to the 2017 season the team were in dire need of some positive press coverage. The move towards Indy, initialed by Zak Brown (Team Principle) has achieved exactly that.

There are a plethora of reasons as to why this move will be a positive for McLaren Honda moving forward, this article will seek to explore these from driver, commercial, and team perspective.

Driver: Fernando Alonso’s contract with McLaren expires at the end of the 2017 F1 season. Mclaren Honda’s failure to provide Alonso will a car capable of challenging for regular points let alone podiums or wins has been seen by many as a waste of Alonso’s talent. Should Fernando seek to remain in Formula One beyond his current agreement McLaren Honda will have their work cut out to convince him they can deliver a car that will allow him to challenge for a 3rd world championship. Zak Brown and the team realise this, and as such have begun to explore other ‘benefits’ they can bring to the table that other teams may struggle to offer. Running at the Indy 500 is one such benefit. With Honda power supplying half the grid in Indycar, slotting Alonso into a front running team was not a challenge. Realistically only McLaren could offer an active works F1 driver this opportunity.

Will this alone be enough to convince Alonso to stay? Beyond money, which at this point in his career may not be an incentive,  what else could they offer him? Running in LMP1 at Le Mans for the foreseeable future would prove very tough for McLaren to offer to Alonso. With only Porsche and Toyota capable of challenging for a win, it is doubtful a manufacturer drive would be open.

Through Zak Brown’s involvement in the Motorsport Network he has a connection to Formula E (Motorsport Network are minority shareholders of the championship) in addition McLaren supply ECU units. Could the team offer him a drive in Formula E alongside F1 from 2018 and beyond? Equally Zak Brown runs his own endurance racing team, could this be used to entice Alonso to events such as the Daytona 24hrs.

If McLaren can find Alonso success in other categories could they convince him to remain with the F1 team whilst they rebuild? Or could it show him there is more to life than Formula One.

Of course this assumes Alonso would perform well in other categories. The flip side of this strategy would be if Alonso struggles at the Indy500 or other events the team ‘allow’ him to compete in, he will devalue his own stock. He may make himself less appealing not only to F1 teams but also to other championships. In running at Indy Alonso risks limiting his own options when it comes to negotiating new a new agreement with McLaren.

Commercial: McLaren Honda’s recent struggle to retain and entice new partners has been well documented. With another underperforming season in prospect the team’s ability to ‘stop the rot’ is unlikely. Partners join Mclaren on the basis of front running exposure. They are not receiving this. Media coverage the team does receive is largely negative or not focused on racing.

Alonso running at the Indy 500 has created a good news story for the team, media coverage has been extensive and positive. This will continue into Indy. Through running a McLaren livery at the Indy 500 with all Mclaren’s partners gaining exposure, Mclaren will be able to make up for any exposure shortfall they may have faced as a result of disappointing performances in Formula One. Running at Indy will also give Mclaren’s partners additional exposure in the US, a key strategic market. This will help the team in future partner discussions.

The counter argument to this is that existing partners may realise they can achieve expansive coverage, greater than that of F1, simply by partnering with a top driver at a single event. Any partner / sponsor questioning a future with the team may be presented with a new strategic direction through this gimmick / project.

Team. There is no I in team. As fantastic as it is to see a current F1 driver taking part in the Indy 500, but Zak Brown and McLaren Honda management can’t for one second forget that they have fundamental problems to address within their own team. Issues that no PR stunt will overcome. There is talk that Mercedes have agreed to support to Honda in overcoming some of their Power Unit shortcomings, assuming the support leads to a turnaround in form, perhaps there is a light at the end of the Honda struggle. McLaren must focus on this. There is no point ploughing resources into keeping Fernando Alonso happy if the situation around overall team performance does not improve.

A side comment on the offer of Mercedes support. It is impossible to imagine a scenario in which Mercedes will give Honda sufficient information to enable them to challenge for outright performance. Will a Honda Power unit developed with Mercedes not just become an incredibly expensive customer power unit which similar to a Williams or Force India will not be allowed to win?

Could McLaren Honda heading to the Indy 500 also be a comment to the FIA ahead of discussions around future power unit regulations? If they find success in Indycar will Honda start to camping for the same power unit to be used in F1? Are McLaren in sufficient a position of strength to threaten to switch to Indycar should future F1 power unit regulations not shift in their favour?

In conclusion. Zak Brown’s commercial minded approach to management of McLaren Honda and their issues is hugely refreshing for the fan and for sponsors. I look forward to seeing this same dynamic approach being taken to resolving team performance issues.

Credit to Tim Holmes for the concept Mclaren Indycar livery imagery supporting this article. Follow Tim on Twitter here

 

F2, F3, F4: Erreà Sport join Prema

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Italian clothing Manufacturer Erreà Sport continue their rapid growth throughout Motorsport with the announcement of a new partnership with Prema for 2017 and beyond.

Joining the ranks of the Sauber F1 Team, Mahindra Formula E team, & Manor Endurance Racing, this new partnership will see Erreà Sport represented across F1, F2, F3, F4, Formula E, and the World Endurance Championship, with further partnerships in motorsport in development.

Fans of Erreà Sport in motorsport can find the online store for the Sauber F1 Team and Mahindra Formula E team though this link. Highlights of the Prema and Manor Endurance Team collection will be made available in the coming weeks.

The 2017 Prema team wear collection is a result of coming together of minds between the Prema and Erreà Sport design teams. The collection reflects the teams Italian heritage and team history, alongside ensuring functionality for the team in races around the world.

Commenting on the partnership René Rosin, Team Principal, remarked:
“We are proud to partner an excellent Italian company like Erreà for what is expected to be a particularly demanding season. Like in all professional sports, also in racing every single component can make a difference and Errea, to whom we will entrust our personnel, will definitely be a key component of the team”.

Errea Sport Chairman Angelo Gandolfi added:
“We are delighted for this new and prestigious partnership. Prema and Erreà share the same values and represent a dynamic, efficient and determined combination, looking forward to score great results in the upcoming season. We worked hard together with the team in order to provide them with all the support they need to keep pushing the limits forward.”

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To keep up to date on  Prema through the 2017 season in motorsport you can follow them on Twitter here.

Formula One: Could F1 consider cloud seeding to ensure Sunday’s race?

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Friday free practice running for the 2017 Chinese Grand Prix was all but a complete washout. With conditions at the circuit and the neighbouring city, in which the hospital on call for medical emergencies from the race weekend, too poor for helicopters to operate in, the FIA delayed and eventually cancelled most of the days running.

Current weather forecasts suggest conditions will improve for tomorrow, but are likely to return on Sunday. Should forecasts prove to be accurate there is a real possibility that it will not be possible for the race to take place on Sunday as scheduled. With only a one week turnaround between the Chinese and Bahrain Grand Prix it will not be possible to hold the race on Monday or at a later date. As such FOM, the FIA, teams, drivers, and broadcasters are apparently in talks to host the entire race weekend activities tomorrow.

Within Formula One, there is no prescient for a race taking place a day earlier than scheduled, and in reality with the highly complex global broadcast agreements in place, it is highly unlikely that terms for running the race a day early can be agreed. Sponsors, Broadcasters, race attending fans, teams, will all seek compensation. As such at this point in time the most likely outcome, if the poor weather returns, is that fans will be treated to a four hour broadcast of no track action at all on Sunday.

This will significantly damage the reputation of Formula One globally and most specifically in Asia, a market in which the sport is struggling (note the discontinuation of the Malaysian Grand Prix agreement from 2018 announced earlier today). To avoid such an outcome it is time for Formula One Management to get creative? Could they look towards a solution involving Cloud Seeding?

Cloud seeding is a form of weather modification, a way of changing the amount or type of precipitation that falls from clouds, by dispersing substances into the air that serve as cloud condensation or ice nuclei, which alter the microphysical processes within the cloud. The usual intent is to increase precipitation (rain or snow), but hail and fog suppression are also widely practiced in airports. (thank you Wikipedia). The process could be applied in areas away from the circuit and the route to the hospital supporting the race.

It is understood organisers of the Singapore Grand Prix, have long used this technology to ensure a dry race weekend during the rain season for the region.

The process was used during the 2008 Beijing Olympics to ensure a dry Olympics.

No doubt, as the weekend processes, the weather forecast will evolve and fans concerns will evaporate!

Formula One: Giovinazzi replaces Wehrlein at Sauber in Melbourne

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Italian Antonio Giovinazzi will replace Pascal Wehrlien for the Australian Grand Prix this weekend with the Sauber F1 Team. The Scuderia Ferrari development and reserve will make his Formula One debut sitting in for the German due to niggling fitness concerns following a incident during the pre-season Race of Champions Event.

My fitness level is not as it should be for a full race distance because of my training deficit. I explained the situation to the team yesterday evening. Therefore, the Sauber F1 Team has decided not to take any risks. It is a pity, but the best decision for the team.” Comments Wehrlien.

At this time both team and driver remain confident Pascal will return to the cockpit for the second round of the 2017 season in China.

“We have great respect of Pascal’s openness and professionalism. This decision was definitely not an easy one for him, it underlines his qualities as a team player. The focus is now on his fitness level, and in such a situation we do not take any unnecessary risks. Pascal will be in China as planned.” Remarked Team Principal Monisha Kaltenborn.

Giovinazzo completed Fp3 in P20 as he aclimitises to the track and continues team integration.

Formula One: Exclusive – Hisense on motorsport. F1 & Nascar

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With the 2017 Nascar season underway and the start of the 2017 F1 season less than one week away, JWGP caught up with partner to both championships, Hisense, to understand what attracts them to motorsport and why it pays to have partnerships in both Nascar & F1.

Hisense are a Chinese electrical goods company with an annual turnover in excess of $15 Billion. The company was founded almost 50 years ago. The company is made up of more than 40 subsidiaries, each focusing on a specific sector within the electronics sector. Hisense focus their motorsport activities on promoting the Television division of the business. Following an extensive period of evaluation of Formula One, in which an evaluation of how the sport can and will work for the business and how best to activate a partnership within the sport, in 2015 Hisense joined the Red Bull Racing Formula One Team. This multi-year partnership sees the team carry Hisense branding on the nose of the car and within the team environment.

In the same year Hisense joined Nascar team Job Gibbs Racing as principle partner. JWGP caught up with Deputy Director of Global Marketing Rolland Zhang to further hear more about their involvement in motorsport.

What attracted Hisense to Motorsport?

Hisense has two motorsport partnerships; one in NASCAR and one in Formula One. Generally speaking, there are a lot of synergies between motorsport and consumer electronics as technology and innovation sit at the heart of both.

Our technology and products have been integrated into team factories and garages around the world, used by the teams and sports we sponsor to improve performance on the track. This integration of technology shows consumers that if these world-class teams trust and rely on our products, they can too.

The fact that technology is so important in team performance is similar to our own values in terms of innovation and development, so it’s fantastic for us to be part of it.

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NASCAR is a hugely popular sport in the United States, so it is the perfect platform for Hisense to engage with the US market. In 2016, Denny Hamlin won the Hisense 4k TV 400 in a Hisense branded car. That played a huge role in raising the profile of Hisense in the United States. Our partnership with Red Bull Racing allows us to engage with audiences on a global scale. The Formula One season features Grands Prix in key markets that are important to our growth.

Why did Hisense choose Red Bull Racing over any other team in F1?

Red Bull Racing is a young, innovative and highly competitive team and we possess a lot of shared values.Red Bull Racing is a challenger brand, constantly pushing boundaries, which drives success on-track. We have a similar ethos and goals; we’re always looking to innovate and develop our technology to give our consumers bigger, better and more advanced products.

Red Bull Racing is also a fun and adventurous team; the drivers are exciting and fiercely competitive and the team is a very well-oiled machine which showed in their performance last year. The team’s determination, drive and success make us extremely proud to be a partner.

As a partner to Red Bull Racing, how does Hisense look to activate the partnership?

 Hisense supports the team by providing television screens in the Red Bull Racing factory and in the garage at races all around the world.  Last year, we installed a 9.6m by 3.6m state of the art LED screen in the team’s operations room at the factory in Milton Keynes. The screen allows the engineers at the factory to analyse live data and communicate effectively with the team at the track, no matter where they are racing in the world.

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In local markets, we use the buzz of the Grand Prix and driver appearances to amplify product launches and host media and influencers at the track. The markets also use Red Bull Racing assets in out of home advertising and in-stores to reinforce our partnership with the coolest team on the F1 grid.

Our social and digital channels are also a focus for us, giving us a direct line to consumers and the ability to interact with Red Bull Racing online.

How important is social media in the activation of Hisense in F1? 

Social media is the most direct route we have to reach consumers, potential customers and Red Bull Racing fans.We have social channels dedicated to our global sports sponsorships specifically, which include tennis, football and of course motorsports. Our local markets also have channels that they activate on, so we are reaching people in their local language and with market-relevant content.  Last year, Hisense UK ran a Facebook Live Q&A with Max Verstappen which was very successful. It was nicely timed too, just after ‘that’ Brazil race, so there was a huge amount of engagement.

Thanks to Rolland Zhang for his time. JWGP will carry updates around Hisense & motorsport through the 2017 season

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Indycar: Let the racing begin!

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After 2 weeks of intensive Formula One testing, the motorsport fans may be craving a bit of real open wheel to wheel action this weekend. Fear not! Indycar is here to satisfy your needs with the 2017 season getting under way at the famous street come airport circuit coming from St Pete!

Mobil One’s The Grid, preview this weekends racing and the season in prospect, with fantastic insights from the likely title contenders. With F1 drivers talking about increase fitness requirements to master their 2017 contenders, with retired World Champion Nico Rosberg referring to his former peers as gladiators, it’s worth remembering that Indycar drivers have to cope with heavier cars with no power steering! With Nico’s new found spare time perhaps he should head state side to see real gladiators at work!

Formula E: Omologato join Mahindra Racing

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Indian Formula E Team Mahindra Racing have announced a new partnership with British watch manufacturer Omologato. This new partnership will see Omologato branding feature extensively on the M3Electro, on drivers Nick Heidfeld and Felix Rosenqvist’s gloves and within the team environment with Omologato wall clocks.

Within the partnership Omologato have  designed a unique Mahindra Racing timepiece collection, which can be found here. Omologato believe “everyone should have a watch with a story” as such they have positioned their products at a price which the everyday motorsport fan can afford. Omologato and Mahindra Racing set out to engage with their fans and followers with this partnership, combining a mutual passion for motorsport with a desire to pioneer new concepts and enhance awareness of Formula E in new markets.

 

Commenting on the new partnership Dilbagh Gill, Team Principal, Mahindra Racing Formula E Team remarked, “We are delighted to welcome Omologato into the Mahindra Racing family. The Omologato brand is highly regarded in the motorsport community; we both share the same passion for delivering exciting motor racing and heritage to fans across the globe. We look forward to engaging with fans at Omologato events and having their logo on our cars from the next race in Mexico City.”

Shami Kalra, Founder of Omologato added, “We are delighted to become an Official Partner of the Mahindra Racing Formula E Team in one of the world’s most forward-thinking sports championships. We welcomed the challenge of designing these special timepieces for the team to take to iconic cities across the globe. One of our aims at Omologato is to give motorsport enthusiasts the chance to immerse themselves in motorsport, through our chronographs and our #ChronosAndCars events. This exciting partnership will give Omologato fans the opportunity to get closer to the Mahindra Racing Formula E Team.”  

To check out the Omologato Mahindra Racing collection follow this link

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Formula One: Premium partners flock to Force India

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Judging by additional branding adorning the VJM10 and partnership announcements in the off season,  plaudits surrounding Sahara Force India’s forth place finish in the 2016 Formula One Constructors Championship have extended far beyond the commentators and fans.

With an increasing number of leading teams in Formula One struggling to secure new partners Force India are bucking the trend. The teams ability to attract new partners can be attributed in part to their success on track, but perhaps of more relevance, the way in which the success has been achieved. It is a well known fact the Force India operate on a significantly lower budget than the majority of other teams on the grid. Rather than complaining about a lack of finances, the team focus there efforts on maximising what they do have. The ratio of investment to performance gain and as a consequence exposure gain is far higher with Force India than with any other team on the grid. No doubt the marketing team of the Silverstone based team use this information as a key factor in presenting to new partners. The approach is paying off!

Diageo, have upgraded their relationship with Force India, increasing branding space and influence on the 2017 livery and shifting the brand they are seeking to promote through the partnership from mass market offering Smirnoff, to premium brand Johnnie Walker.

Innovative premium watch brand Felio Siby have extended their partnership with Force India for a second year, with promises of unique brand activation events through the season.

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Hype Energy Drink have expanded their partnership within the sport for the third season in succession. With increased branding on the VJM1o in premium exposure positions.

New clothing partner Farah have joined the team, supplying a unique range of travel wear and fan range to be launched later in the season.

Eye Respect – LDNR eyewear join Force India as the official sunglasses / eyewear partner for the team, taking brand positioning on the wing mirrors of the VJM10

Forex Trading partner FXTM also join the team with branding on the rear sidepod of the car. As forex trading moves into the mainstream Force India have done well to secure a leader in the sector.

With online gambling partner W88.com and digital technology partner Orangebus also joining the team, the Force India marketing team should be more than satisfied with an impressive winter work rate!

Another interesting component of the partnerships Force India have established ahead of the 2017 season is the amount of deals which are customer facing. Increasingly partnerships within Formula One are focused on business to business relationship building or hosting high net worth individuals. Force India are establishing partnerships which incorporate a consumer facing offering. They are achieving this whilst also introducing partners with aspirational product offerings.