By 7 o'clock tonight one driver will be the 2010 King of Formula One. If it is Fernando Alonso, then it is a good day for both Abu Dhabi and Italy. Ferrari World could have no better launch. If it is Mark Webber or Sebastian Vettel, then Red Bull has done the double with both F1 2010 Constructors and Driver World Championships. If it is Lewis Hamilton and McLaren, then the other drivers will have had a bad day at the office.
For Ferrari, losing today would mean a disappointing season and cost millions of euros in bonuses and future sponsorship. It will have an impact on its brand gloss and corporate morale. Cars are its business, and F1 is the core of its marketing. For Red Bull, losing will be demoralising, but the partying around F1 will not stop and its main revenue streams are only rising. Red Bull may lose the battle but it is winning the war. Particularly the brand sponsorship war.
Look at it this way: Ferrari has more than 80 years of heritage as a company, while Red Bull has fewer than 25. Both understand passion and sponsorship better than their peers. Ferrari is the establishment in terms of an F1 brand and rights-holder. Red Bull is the young, upstart challenger breaking all the rules.
Red Bull is an incredible story. Its marketing and ingredient origins are a Thai energy drink called Krating Daeng. Dietrich Mateschitz, the Austrian entrepreneur behind Red Bull, developed the energy drink brand when, as the international marketing director for a toothpaste company, he visited Thailand in 1982 and discovered a cure for his jet lag.
Between 1984 and 1987, Mr Mateschitz worked on adapting the recipe, then invested US$500,000 (Dh1.8 million) in a joint venture with Chaleo Yoovidhya, his Thai business partner, and his son, Chalerm. The Red Bull product and brand was launched in 1987. Today it is one of the world's best-selling soft drinks. Forbes estimated in 2008 that both men are worth $4 billion.
Red Bull's journey in terms of sponsorship is equally remarkable. Mr Mateschitz and his team understood that to align yourself to fans, content and passion through sponsorship was key. If you launch a business with a brand today, follow this approach. Place your brand in the heart of the right sponsorship content, and if your business has the right core product and fundamentals, you can grow very quickly.
Perhaps the key to Red Bull's success is that it has done everything its own way. It sponsored individuals and events - particularly in extreme youth sports. If the right opportunities did not exist, then it invented them. Today when you look at Red Bull's website - a YouTube-style channel in its own right and no doubt a future media channel modelled on Virgin's brand diversification model - the most impressive part is that Red Bull owns most of what you watch.
In a rare interview with The Times of London in 2006, Mr Mateschitz commented on his €400m (Dh2 billion) marketing strategy of the time: "It's quite normal that you spend millions of dollars on marketing on TV, but here it's marketing investment in assets." Best of all, he owns the assets. From its impressive F1 team to its New York soccer franchise, from the Red Bull Air Race to Flugtage, Red Bull owns, markets and delivers its own content. It is also now generating major revenue streams from these assets, which considerably reduce its sponsorship outlay.
Ferrari does have one advantage in this regard. Red Bull is so good at what it does that other brands drown or fade in comparison. Destinations, alcoholic drinks, individuals and content can benefit from a Red Bull sponsorship asset association. But consumer brands will often have issues.
At present, Ferrari sponsorship gloss is far wider in terms of commercial impact. The Red Bull-du partnership announced last week has great potential because of the content that du will get. Expect downloads, ticket promotions, special access to drivers, F1 races and even Red Bull parties to come through your du subscriptions.
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