This document provides a marketing program for the Formula 1 Malaysian Grand Prix. It begins with an environmental scan that includes an analysis of the background of F1, its inception in Malaysia, market segmentation, needs, trends, and competition. It then performs a PEST and SWOT analysis. The marketing strategy focuses on being a best cost provider with differentiation. Objectives, target markets, positioning, ticketing, and budget are outlined. Revenue forecasts and recommendations to install lighting and add amenities are also provided.

1. Marketing Program for F1 Malaysia
Fairus Binti Radin Mohd Ali GM03190
Hema Latha A/P Kumaresan GM03610
Tung Wai Chee GM03578
Chung Lee Lee GM03634
Siti Noraida Shaikh Abdullah GM03538

3. SCAN THE
ENVIRONMENT
KNOW OURSELVES  wants & needs
- External & Internal
Background Inception of Market PEST &
of F1 F1 in Malaysia Survey SWOT
Action Marketing Strategic
Financing
Plan Plan Planning
Differentiation??
Niche??
Low Cost??
Recommendation
for Future

5. BACKGROUND Highest Class of
auto racing
Known as
“Formula 1”
or “F1”
World’s Most
Expensive &
Glamorous Sports

6. Grand Prix
Teams
& F1 Competition
Drivers
Popularity
&
Commercials

7. INCEPTION OF F1 IN MALAYSIA
Portuguese GP
Negotiation >>>
Tun Dr. Mahathir Bernie Ecclestone

9. ** Source:
MARKET SEGMENTATION The Formula One Teams Association (FOTA)
www.caseynealracing.com
SEGMENTATION DETAILS
FACTORS
Geographic Global
Demographic:
1. Age 21 ≥ 49
2. Gender Male and Female
3. Income RM24,000 ≥ RM75,000 per annum
4. Education Background Tertiary Education

10. SEGMENTATION DETAILS
FACTORS
Psychographic:
1. Social Class Middle and Upper Social Class with
Disposable Income
2. Personality Sporty, Bold, Adventurous, Aggressive,
Technology savvy.
1. Lifestyle Aspirers, Explorers, Succeeder
(based on Cross Cultural Consumer Characterization model)
Behavioural:
1. User Status Regular, Moderate, Infrequent fans
2. Loyalty Status Heavy

11. MARKET NEEDS-SPECTACULAR EXPERIENCE
Source: The Formula One Teams Association (FOTA)

12. MARKET NEEDS - SENSE OF PRESTIGE
“ 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 businessman
Chairman of the United Breweries
Group and Kingfisher Airlines

13. MARKET NEEDS - DISTINCTION (VALUE FOR MONEY)

14. 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

15. MARKET TREND
- NIGHT RACE -

16. 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.

17. SINGAPORE – NIGHT RACE MONACO – STREET RACE
• instant entry into some of the best clubs • luxury Caribbean yacht charters
• VIP tables at restaurants • cruises and champagnes
• VIP tickets of the F1 Rocks concert
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

18. COMPETITION
FOR F1
MALAYSIAN GP

19. COMPETITION BETWEEN THE ORGANIZERS
• To date, there are 6 GP Organizers in in Asia:
Malaysia, South Korea, Japan, Bahrain, China
and Singapore
• The circuits in Bahrain and China were
developed further based on the SIC’s concept
by the same designer
• Foreign fans are now given more options in
which Asia country they want to catch the
race
Source:

20. COMPETITION BETWEEN THE PLAYERS
IN THE MOTORSPORTS
SUPER GT MALAYSIAN RALLY CHAMPIONSHIP
• A total of 39,486 in spectators in • Major spectator-sport event coming
2009 (Source:http://www.malaysiangp.com.my/news/super-gt- second to the Formula One race
39486-spectators-came-super-gt (Source: www.virtualmalaysia.com )
• Use street cars • Sanctioned by FIA
• Japanese fascinating race queens • Broadcasted to a potential 60 million
audience with over 176 broadcasters

22. PEST ANALYSIS
• Internal Political Stability
POLITICAL • Strong Malaysian Government Support
ECONOMIC • Global Slowdown Negatively Impact F1
• Passion For Speed / Racing – Mat Rempit
SOSIAL • Malaysian Spending Power
• Regional Auto Hub
TECHNOLOGY • 1Malaysia F1 team – transfer of technology
• Tertiary Education in Automotive Industry

23. SWOT ANALYSIS
STRENGTHS
• 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

24. SWOT ANALYSIS
WEAKNESSES
• 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

25. OPPORTUNITIES • Intense Price War between MAS and Air Asia
Team Lotus F1 Coffee, Tea or Me? Schumi

26. SWOT ANALYSIS
THREATS
• Second Wave of H1N1
• Weather
• Competition among GP Organizers
• Competition among Motorsports
• Negative News on the Internet
“F1 is an unnecessary
waste of public
resources …”

28. MARKETING STRATEGY
 differentiation  niche
 BEST cost provider
Mission:
“F1 for ALL”

29. MARKETING OBJECTIVES
(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

30. TARGET MARKET
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

31. POSITIONING
TRULY VALUE!!!
F1 GP destination

33. Price (by Sitting Arrangement)
Price

34. 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

35. Packaging – Distinctive Offering
F1 Paddock Club
Corporate Platform
Corporate Suite

36. Ticketing Channels
e-ticketing
Internationally Ticketing travel agents
tickets agents
Channels
Preferred
Agent and
Authorize
Agent

37. Logo and Tagline
“Alive with Adrenaline”
Customer Service
- Hotline and email
- Transportation

38. Grid Girls

39. Safety and Health
Food and Beverages

42. REVENUE FORECASTS
126,690 spectators RM62.5 million
or more
2010 ???
Source: Malaysia Airport Berhad (MAB) annual report

43. BUDGETED MARKETING EXPENSES
Avenues Budget Marketing
Direct Shaping the
(%) Cost (RM)
marketing, offerings,
Shaping the PR and 5%
5%
offerings 5% 1,000,000 publicity, 5%
Advertising 30% 6,000,000 Advertising,
30%
Sales promotion 15% 3,000,000 events and
Events and experience, sales
experience 40% 8,000,000 40% promotion,
15%
PR and publicity 5% 1,000,000
Direct marketing 5% 1,000,000
Total Budget 20,000,000

44. EXPECTED REVENUE 2010
RM(million)
Forecasted Revenue 62.5
Less: Budgeted Marketing Costs -20
Available disposable revenue 42.5
% of available disposable income
68%
from total revenue

46. 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.