Tag Archives: Partnership

Formula One: Debunking the BP rumour

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Over the past week various news outlets have reported BP are set to enter Formula One with a $30 Million sponsorship deal heading the way of either Renault or Mclaren. Whilst there is no formal comment from any party to confirm or deny the story, a little bit of a sanity check might be helpful.

The optimisation of current the iteration of Formula One power unit technology is more dependant on fuel and lubricant specificities now more than any time in the history of the sport. Power units and their respective fuel and lubricants are developed in conjunction with each other. Whilst the fuel used in Formula One is made up of 99% the same compounds you would expect to see in the forecourt, the remaining 1% has a huge impact on vehicle performance and is unique to each and every supplier.

At this time there are 4 power unit manufacturers and 4 fuel and lubricant suppliers in Formula One. These are:

Shell with Ferrari

ExxonMobil (Mobil 1 / Esso) with Honda

Petronas with Mercedes

Total with Renault.

All teams using customer power units will use the fuel and lubricant supply defined as above. Any additional fuel and lubricant sponsorship with customer teams are sponsorship partners only. They do not supply the team.

Unlike agreements such as that with BR Petrobras and Williams, given the comparable size and market share BP have to Petronas, Shell, & ExxonMobil it is highly unlikely either party would be prepared to have a customer team run with BP branding and a competitor’s fuel and lubricant supply.

The development of fuel and lubricant solutions is a continual process, at any given time Shell, for example, could have up to 65 compounds in development. Fuel and lubricant partnership is integral to a team. In 2015 Scuderia Ferrari attributed 25% of their performance gains through the season to Shell. Fuel and lubricant suppliers bring trackside laboratories to every F1 race. They analyse the performance of their product after every session. Relationships are so well developed that a fuel and lubricant supplier can and do advise a race team on how to approach race strategy.

Fuel and lubricant suppliers do not enter Formula One for simple brand exposure. They use the sport as a platform to innovate. Innovation reaching the circuit can take as long as five years to hit the forecourt. Formula One engagement is not a short term quick win project.

In short, if BP were to be entering Formula One the undertaking and commitment would require a significant change in business strategy. It would be much more complex than writing a cheque for $30 Million. If a new partnership is not already known it would not be realistic to expect anything for at least 2 years. With all this in mind it seems highly unlikely BP would find an existing power unit manufacturer prepared to leave an existing partner for the foreseeable future.

What could be possible is an acquisition. This could take a number of forms. An existing fuel and lubricant supplier could be looking to exit Formula One. They may look to sell their assets and technology in the sport to BP. With consumers looking increasingly to renewable energy sources the return on investment of motorsport engagement may no longer be what it once was so this is possible.

Another option could be BP acquiring, or being acquired. Both Shell and ExxonMobil have been reported to be considering growth through acquisition strategies. If this was the case, they may look to showcase the BP brand through their premier  marketing platform. Equally if BP chose to merge or acquire Shell, Petronas, ExxonMobil, or Total, they may seek to promote the BP brand in F1. At this time it is not possible to entirely dismiss rumours of BP entering Formula One, but one thing is for certain, if a deal does transpire it will be a lot more complex than writing a cheque and putting a few stickers on a car.

Formula One: MODO joins The Sauber F1 Team

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With the financial stability of the Sauber F1 Team assured, the team have been able refocus energies into partnership and sponsorship development. The first of these partnerships take the form MODO, joining the team as a Premium Partner. MODO is an eyewear company founded in New York, and driven by a passion for innovation and technology.

MODO adopts the latest manufacturing technology and newest materials in its products’ designs, and its emphasis on quality and functionality produces ground breaking results. MODO’s Paper-Thin Titanium collection is some of the lightest and strongest eyewear in the world. At 6.8 grams, Paper-Thin Titanium sunglasses are fitted with high-performance polycarbonate lenses using High Chromatic Definition (HCD) technology to merge form and function.

The partnership with MODO will kick off during the upcoming Italian Grand Prix in Monza and is for the remainder of the 2016 Formula One season. The MODO branding will appear on the mirrors of the Sauber C35-Ferraris. Furthermore, the entire team will also be equipped with sunglasses to represent the MODO products in style.

Monisha Kaltenborn, Team Principal of the Sauber F1 Team:
“We are delighted about our new partnership with MODO – a lifestyle brand that has chosen with Formula One and us the perfect platform to represent its brand and products. Technological innovation, detailed precision, and the push for excellence are values the Sauber F1 Team stands for. MODO’s Paper-Thin Titanium collection proves these attributes at the highest level of quality – the lightest and strongest eyewear matching the carbon material Formula One cars are built with. We are pleased to welcome MODO on board, and we look forward to a successful and fruitful partnership in a promising future.”

Alessandro Lanaro, Founder and CEO of MODO:
“MODO is very pleased to start a collaboration with the Sauber F1 Team by becoming a Premium Partner. Our common interests in technology, innovation, and using new materials to create the highest performance make us ideal partners. The Formula One environment is the perfect theater to showcase our brand and products. We are also excited to further develop our partnership by researching new technologies with the Sauber Engineering Division that can be applied to eyewear. We are looking forward to our official debut at the Italian GP in the legendary Monza circuit.”

Check out the MODO homepage for more on the partnership and to visit the online store here

Formula One: Longbow Finances acquire Sauber F1 Team

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The Sauber group have announced  a change in ownership. Following the signing of the acquisition agreement with the current shareholders, Longbow Finance S.A. will fully acquire Sauber Holding AG which is the ultimate holding company of the Sauber Group. It is Longbow Finance S.A.’s clear intention to stabilise the group and create the basis for a competitive and successful future. This transaction also secures the continuation of the brand Sauber in Formula One and will open opportunities to further grow the engineering activities of the group. There will be no changes to either the company or the team name.

Peter Sauber will retire from all functions, being succeeded by Pascal Picci as Chairman of Sauber Holding A.G. Monisha Kaltenborn will remain as a member of the Board of Directors and continue to lead the company in her functions as CEO and Team Principal.

Pascal Picci, President & CEO, Longbow Finance S.A.:
“As a Swiss company, we are very pleased with having secured the future of a Swiss presence in a highly specialized and innovative industry.”

Monisha Kaltenborn, CEO and Team Principal:
“We are very pleased that by reaching an agreement with Longbow Finance S.A., we can secure the future of Sauber at the pinnacle of motorsport. We are convinced that Longbow Finance S.A. is the perfect partner to again make the team competitive and successful in Formula 1. At the same time the new structure will allow us to finally further expand our third party business in which we commercialise our know-how. This solution is in the best interest of our employees, partners, loyal suppliers, the base in Hinwil and for the Swiss motorsport. We are very grateful that Longbow Finance S.A.believes in the competences, efficiency and capabilities of Sauber Group, and we look forward to a new exciting future.”

Peter Sauber, President of the Board of Directors, Sauber Holding AG:
“Monisha Kaltenborn and I yesterday signed an agreement which secures the future of the Formula 1 Team and the Sauber Group. I am very happy that my courageous investment to buy the team back, which I made six years ago, with the intention to secure the base in Hinwil and the place in Formula 1 has proved to be correct.”

More to follow

Formula One: Sponsor in Profile – UBS

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Swiss Bank UBS are a key partner within Formula One. Working directly with the Mercedes AMG Petronas team and with Formula One Management the bank is heavily invested in the sport and will continue to be for some time to come. In an exclusive interview for JWGP, we explore what initially attracted UBS to the sport, how they measure success, and the future direction of the partnership and the sport in general.

A key point of interest in this interview is around the audience UBS are targeting or seeking to attract with the partnership. Whilst other banking partners within Formula One use the sport as a platform to attract a diverse audience, the UBS approach is geared heavily towards its Wealth Management customers and the audience demographic in that sector. This focused approach explains in some way why despite being one of the more significant partners to the Mercedes AMG Petronas team in terms of investment, branding on the car and with drivers is minimal.

  • What initially attracted UBS to F1?

Formula 1 is a global sport that attracts over 400m unique viewers every season. It operates for nearly 12 months of the year and touches all major markets that UBS operate in

  • Can you provide a background into how the UBS FOM and Mercedes Deal came about?

UBS entered Formula 1 in 2010 as a Global Partner, and has grown and diversified its investments in the sport since then. Formula 1 provides UBS with global brand awareness, an ability to invest in the creation of deeper client relationships through at-track client programs around the world, and a platform to both amplify brand stature and change brand perceptions. By adding the partnerships with the MERCEDESAMG PETRONAS Formula One Team and ex-Formula 1 legends, such as Sir Jackie Stewart, Mika Hӓkkinen and David Coulthard, UBS create and deliver truly unique at-track experiences for their clients. By working together with Formula 1 experts, such as James Allen, UBS produces engaging content that drives social media campaigns around topics such as strategy and insight. Further Formula 1 insiders such as Susie Wolff were also included to add even greater depth, diversity and appeal to the program.

  • What is the target audience for the UBS F1 engagement model from a social media, print & online media, branding, and hospitality perspective?

The key audience is UBS Wealth Management customers, who can be classified into existing and new clients. On the one hand we aim to increase brand visibility in our key markets and on the other we try to enhance brand relevance by distributing insightful content to our target audience. The distribution of this content is purely via digital and social channels. Looking at the hospitality, it focuses more on existing clients, who are invited to a select number of events where we try to give exclusive access to the sport, the drivers and our ambassadors.

  • The use of UBS branding within Formula One and the Mercedes AMG Petronas team is minimal. With limited on track signage and team branding featuring only on drivers and pit areas. Can you explain why, despite significant investment UBS have taken this route?

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The partnership with the MERCEDES AMG PETRONAS Formula One team provides UBS with the opportunity to create truly unique at track experiences, as well as access to the team and their star drivers for content.

  • What key performance indicators (KPI’s) do UBS have around the respective partnerships?

KPIs are set alongside the strategy, and continue to evolve year by year – metrics such as client satisfaction, brand exposure and brand equity all feed into an analysis of success.

  • Have experiences from the F1 world influenced any aspect of UBS or vice versa?

It would be hard to say if there has been any direct influence, but UBS and Formula 1 share common traits. And these similarities are what UBS enjoys exploring for the fans and followers of the sport. Traits such as strategy, insight and thought leadership are common to both UBS and Formula 1 teams and the series.

  • How would UBS assess the 2016 season so far?

As a partner of the MERCEDES AMG PETRONAS Formula One team we are pleased with the team’s success so far. With the top teams hot on their heels, it promises to become an exciting season.

  • What’s next for UBS with Formula One Management and Mercedes AMG Petronas?

The experiential and content plans for 2016 are very exciting. UBS will continue to deliver insights into the sport, the strategies for success and how Formula 1 is pushing the boundaries in numerous disciplines to as broad an audience as possible.

  • What is your view on the move of F1 coverage towards on the pay TV trend for F1 coverage in Europe?

The commercial side of the series has pursued a trend of moving from free-to-air broadcasting to pay-tv. This is a business decision which we cannot comment on. However, with the growth of social media in recent years, we feel more people than ever are watching the sport, commenting on it or are aware of race results.

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The UBS relationship to Formula One as a partner is an interesting one. The bank has committed to a strategy of using the sport as a platform to reward and attract the wealthy.  With the agreement heading into it’s 7th year it is clear all parties involved are seeing a return on the relationship. As a prestigious brand involved in the sport similar to Rolex, Chandon, or Emirates. UBS through their social media and digital interactions have developed a profile as an aspirational partner, the banking partner fans will think of when they reach a certain level of financial wealth in their private lives. They do this at the same time as rewarding those who have already achieved such success in a way which ensures customer loyalty.

It would be interesting to hear from other partners in the sport taking a similar approach.

Formula One: Mercedes free practice cameras explained

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Throughout the 2016 season the Mercedes AMG Petronas W07 of Lewis Hamilton & Nico Rosberg has sported additional camera mountings situated either side of the airbox above the drivers head. These additional units are seen only in Friday free practice sessions and test sessions, broadcast world feed does not include imagery from these locations leading many to ask what exactly are these units?

In this film produced with team partner Qualcomm, Paddy Lowe, Executive Director Technical, with support from Evan Short, trackside team leader, explain the units and how they give the team more data than ever before.

Success in modern day Formula One sees teams strive to optimise every aspect of the sport, this includes optimisation of the collection, downloading and analysis of data. The amount of data a team is capable of collecting a digesting a nothing short of staggering

Including rotary switches, buttons and paddles, there are approximately 45 individual controls on a modern Formula One steering wheel – and by far the most frequently used are the gear change paddles. At Monaco, the average number of gear changes per lap is around 50 – which equates to nearly 4,000 changes over a 78-lap race distance. When one calculates the number of inputs a driver is likely to have to make, the total during a qualifying lap alone is impressive. 130 significant changes of steering direction, 50 gear changes and up to 20 further inputs for DRS / ERS deployment and any other adjustments.That gives the driver a predicted workload of over 200 different inputs per lap

On track, the team manages 200 physical sensors on the car, used to log 1,000 channels of data, 100 times per second – measuring variables from hydraulic pressures to drive train temperatures and, of course, the hundreds of driver inputs undertaken each lap. 17,000 further parameters are recorded in ‘slow row’ (recording whenever there is space in the logger, i.e. every couple of seconds) with a total logging rate of 440kBps in the on-car and 250kBps in telemetry broadcast to the pits. In total, the two cars generate data at the rate of 1MB every two seconds.

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Some of this data is sent back in real time through a high frequency telemetry system, which transmits data from the moving car to the pits. However, there is far more data available than can be extracted via that route. The excess has traditionally been transferred using a wired connection once the car has stopped – but even that is problematic, as crucial track time is lost waiting for the download to complete. This is where Technical Partner Qualcomm has helped the team optimise track time.

Engineers are now able to download that balance of data – which can be very bulky – in the time between when the car stops in front of the garage and is wheeled back into the garage via an extremely powerful wireless connection. The most noticeable benefit from this comes in understanding tyres via the infra-red camera system – and more specifically the speed at which information from that feed can be processed. In the past, the crew would plug in the cameras when the driver returned to the box and have just a few seconds to extract as much data as possible before the car returned to the track. There simply wasn’t enough time to extract the full data set until after a session, so the real-time nature of that data was lost.

Qualcomm’s technology allows the team to extract that information much more quickly. By the time the car pulls back into the garage, the engineers have now received that information wirelessly.

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Overall, the team’s telemetry systems generate 15 GB of raw car data per weekend, with post-processing adding a further 70 GB of data. That equates to 3.5 billion data points per car – or seven billion data points across all team operations – per weekend. Staggering numbers indeed, which are perfectly illustrated by the gearbox. In Monaco, around 19,000 gearshifts will be undertaken between both drivers over the course of the weekend – compared to roughly 15,000 in Barcelona – with each shift writing around 50,000 points of
data. While a gearshift itself happens in about 10 milliseconds, today the team can extract this information from the database in roughly 0.4 milliseconds.

As someone who follows F1 partnerships avidly I have for some time now found the emphasis on Information Technology partners at the Mercedes AMG Petronas Team quite strange, whilst not directly in competition with each other, these partners operate in similar sectors. Understanding the team’s focus on data collection, data analysis, and application of data, explains how each of these partners play a significant role in the success of the team and how their core competencies act to compliment each other.

Qualcomm have, with the team, developed systems to support rapid data logging and downloading of data, this data immediate requires storage space, Pure Storage supply this in the form of FlashArray-based data storage. With this technology, average transaction times have been reduced by around 40% – again, saving crucial decision making time for the engineers. This is great for trackside support, but the journey of the data does not end there.

During an average Grand Prix weekend around 200 GB of data is synched between the race track and the Race Support Room (RSR) at the team headquarters in Brackely UK. Transferring such vast quantities of data requires a fast, reliable and secure connection to ensure optimal collaboration between the team at base and their counterparts on the road wherever in the world they might be. This is where the TATA Communications global network comes into play. This same network SKY SPORTS are now using to rely F1 broadcast feed across Europe as explored here

This link enables real time communication and analysis to be managed between the circuit and RSR. From the circuit, on-track performance and reliability analysis, driver-specific system and car set-up work, car assembly and maintenance supervision data is beamed back to base, while, specialised system support, video analysis, competitor analysis and second-line performance analysis returns in the other direction.

Motor racing purists may question if this complex use of and fixation over data is really the right direction for motorsport. To be seen as the pinnacle of Motorsport, Formula One must pioneer new technologies. In the past the focus of this pioneering spirit has focused on the automotive industry. In my opinion, a team such as Mercedes AMG Petronas working with partners to  find solutions around data collection and usage reflect challenges in modern society and serve to broaden the applicability of motorsport engagement for business.

Technological solutions found through projects between Mercedes, Qualcomm, Pure Storage & Tata Communications will filter down into everyday consumers lives. developing partnerships to solve challenges within Formula One drive not only a team forward but shape the direction of industry and consumer expectation.

You Can find follow developments from Qualcomm via social media here

Keep up to date with the latest news from Tata Communications here

Check out the Pure Storage home page here

 

Formula One: Red Bull Racing PUMA partnership confirmed

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Red Bull Racing have just reconfirmed their agreement a long-term partnership with PUMA, as Team Partner and Supplier of Race and Teamwear as well as Licensed Partner for the 2016 Formula One season and beyond.
This new partnership aims to reinvent the concept of Formula One fashion. PUMA will apply a unique and energetic approach to its licensed product collection with Red Bull Racing that will result in innovative, eye-catching designs in lifestyle and replica ranges, as well as race and teamwear.
The strong synergy between these two brands presents an exciting opportunity to activate global marketing initiatives as Red Bull Racing delivers F1 power to PUMA in support of their mission to become the fastest sport brand in the world. The team will be part of PUMA’s elite partnership portfolio, joining the likes of Usain Bolt, Arsenal Football Club and the Italian National Football team.
Red Bull Racing’s history with PUMA goes all the way back to its first years in F1 and this new agreement revitalizes a highly successful relationship enjoyed by the two between 2007 and 2010.
Commenting on the reinvigoration of the partnership between the team and PUMA;
Christian Horner, Red Bull Racing Team Principal said: “We are looking forward to working with PUMA once again. This new partnership fits in with a global partnership that already exists between Red Bull and PUMA, involving athletes in other disciplines, the Wings For Life charity and various other Red Bull projects. The licensed collection that will launch in 2016 is looking fantastic; I’m sure the fans are going to love it.”
Björn Gulden, Chief Executive Officer for PUMA added: “PUMA and Red Bull have a great brand synergy, and this new partnership with Red Bull Racing is another big statement for PUMA. There is huge potential within the wider Red Bull organisation to build upon this partnership and explore new territory, and there is an enthusiasm amongst both companies to do so. Red Bull Racing is a great team with massive appeal, and this is another positive step in our desire to become the Fastest Sport Brand in the World.”

Formula One: Sauber F1 team announce Premium Partnership with CNBC for 2016

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The Sauber F1 Team have announced CNBC as a Premium Partner for the 2016 FIA Formula One Championship. CNBC is the leading global broadcaster of live business and financial news and information. This is the first time the Sauber F1 Team has partnered with an international broadcaster.

CNBC and the Sauber F1 Team will use the global Formula One media platform to maximise their potentials, as well as to reach a broader audience around the globe. The CNBC branding will appear on the rear wing end plates of the Sauber C35, on the drivers’ overalls of Marcus Ericsson and Felipe Nasr, as well as on the team’s clothing.

To launch the partnership with CNBC, the logo will be visible on the rear wing end plates of the Sauber C34-Ferrari during the 2015 Formula One season finale at the Abu Dhabi Grand Prix this weekend.

Monisha Kaltenborn, Team Principal of the Sauber F1 Team:
“CNBC and the Sauber F1 Team have many common values such as accuracy, speed and credibility. Both companies maintain these values on a global level. It applies to both of us that we face a tough competition in our field with the objective being perfection. These similarities build a strong basis for a solid partnership.”

KC Sullivan, President and Managing Director of CNBC International:
“This partnership joins two organisations with strong heritage and exceptional ambition. Working with the Sauber F1 Team, CNBC is joining a family of professionals and corporate partners committed to the standards of excellence and performance that elite sports demand.”