Brands queue up for their share of Formula1 pie

As the car racing world trains its eyes on Sunday in India, there are several brands trying to ride the Formula One train — Mahindra & Mahindra, Vodafone, UB Group, Sahara, Delhi Duty Free and Airtel —to name a few.

While Airtel is title sponsor, the UB Group and Sahara own the Force India team. Vodafone is title sponsor for the Vodafone McLaren Mercedes team and M&M’s Scorpio is the official intervention vehicle at the Buddha International Circuit.

What's there for these brands by associating with the F1? The viewership has been growing in India, say media analysts. Worldwide, it has a viewership of 500 million. ‘‘And, the involvement of viewers in the sport is high. This is the first time the country will host a race here. So, there is tremendous excitement around it, which explains why brands have queued for the event," said Madhukar Kamath, MD & CEO, Mudra Group.

This is endorsed by Nandini Dias, chief operating officer, Lodestar Universal. She says, "The entertainment value of the event is high. Plus, it is happening around Diwali time. So, clients have the budgets to spare." According to some estimates, Airtel's three-year title sponsorship of the Indian Formula One Grand Prix has cost it about Rs 40 crore. Some peg it a little higher, at Rs 60-70 crore.

Sanjay Kapoor, chief executive officer, India & South Asia, Bharti Airtel, describes the association with F1 as an appropriate fit for the brand. "F1 has a massive following, which includes the youth. Airtel, too, has a young and vibrant customer base. So, being affiliated with F1 makes sense," he says.

For Vodafone, this is a major global sponsorship and is part of an ongoing commitment to the F1 World Championship, a sport the telecom giant feels continues to deliver massive global television coverage and has significant appeal for its customers and racing fans around the world.

‘‘The team partnership delivers an innovative, powerful and integrated marketing platform, enabling Vodafone customers to get closer to the action through unique experiences, experiential events, offers and promotions,’’ says Anuradha Aggarwal, vice president (brand communication and insights), Vodafone India. Though F1 in India is still at a nascent stage, gaining momentum in recent years, Aggarwal feels the Indian Grand Prix will help it build stickiness with fans.

Who & how much
The F1 calendar which stretches from March to November every year, has 20-odd races, of which seven or eight are held in Asia. India is the newest addition to the Asian list, say experts. Besides Sahara, UB and Vodafone, other team sponsors include Red Bull and Amul.

While on-air advertising on F1 is typically pre-sold months in advance, last-minute bookings on the Indian Grand Prix are going for a killing. According to media planners, a 10-second spot on the latter on Friday was priced akin to a top-rated prime time show, about Rs 1,15,000-1,25,000. Team sponsorships vary from Rs 50 lakh to Rs 4 crore depending on the package taken.

On-air advertisers for the Indian Grand Prix include Airtel, Tata Docomo, BPCL, MRF, Amaron, Vodafone, Sony, Samsung and Malaysian lubricant maker Petronas, among others. According to media planners, broadcaster ESPN's feed will be available in 38 countries for the event, which is why international companies such as Petronas have tied up for advertising on the Indian Grand Prix.

R S Sodhi, managing director, Gujarat Cooperative Milk Marketing Federation, the makers of Amul, who are sponsors of the Sauber F1 team from Switzerland, says the company was looking to associate with the sport to connect with youth. "It is an exciting sport and the interest of the youth in it is high. We are the only milk-based beverage brand to be associated with the F1 and there was considerable talk about it on social media. We have wanted this kind of engagement, and are pleased with our association with the sport," he says.

Samar Singh Shekhawat, senior vice-president, marketing, UB Group, says the F1 ranks among the top sports sponsorship platforms for the company. "The first is IPL (the cricket Indian Premier League) and the second is F1," he says. "The Indian GP is very big for us because this is the first time it is happening in India. And, along with Sahara, we are the only Indian team owners in the race. That is a big milestone,’’ he said.

The UB Group has put in place a marketing plan to leverage the hype and equity around the sport. ‘‘For one, we are the exclusive beer partners for the event. We have tied-up with all the after-parties at the event. Second, we are giving out exclusive merchandise. Plus, we are launching new 500-ml Kingfisher Strong and Mild cans, which will replace the existing cans. All of this will serve to create the necessary visibility we want around the event," Shekhawat adds.