For most marketers today, associating with a sporting event, sponsoring a team or even having a sportsperson, as a brand ambassador is `sports marketing’. The 60-year-old Shell and Ferrari partnership goes beyond these conventional tools and redefines the marketing mix. Being one of the most successful collaborations in the history of motorsport, Shell takes from its rich experience to develop new ways of marketing the association every day.
In September 2012, Shell and Ferrari celebrated their 500th Formula One Grand Prix. The partnership dates back to the 1920’s when Shell first sponsored Enzo Ferrari as a racing driver who then went on to form his own racing team, Scuderia Ferrari. Shell partnered Enzo on his venture and has never looked back.
The key takeaway from this partnership can be explained as the new ‘6Ps’ of sports marketing with respect to a luxury brand such as Ferrari.
Positioning Fit
The key to success in luxury brand associations is how both brands are able to complement each other, as sharing equity is important. In case of Shell and Ferrari partnership, the common ground was also the passion for performance, being premium, uncompromising quality, sustaining excellence and pushing the limits. Shell extends R&D support to Ferrari. Ferrari also leverages on the global reach that Shell has as being present in 150 countries.
Shell initiates other activities and associations to maintain its position as a premium brand like the recent Driven to Extremes program. In this program, three Hollywood actors Tom Hardy, Henry Cavil and Adrien Brody tested Shell oils’ performance in three extreme weather conditions. This program is now available on Shell’s YouTube channel.
Partnership
A luxury brand like Ferrari requires constant and continuous application of partnership principles. Shell has a dedicated team focused on building this partnership. Shell also believes in the concept of Track-to-Road, wherein the experience and learning from the racetrack are applied directly to the oils for end customer’s car. The Shell brand with the racing horse is a very good combination.
Planning
Planning for any F1 event starts about two years in advance. Shell uses this time to touch base with its core client base of retailers and distributors. This planning process can make or break of how successfully you will be able to execute an event.
Participate
For every dollar spent on the partnership, Shell spends three dollars on activation. The pre-activation begins 6-9 months before the event and goes on till D-Day with various activities, like road shows and simulator rides. A few Shell customers even get an opportunity to interact with the Ferrari drivers. The day of the event also becomes an opportunity for Shell to engage with its stakeholders. Key clients get the opportunity to visit Shell Track lab located at the Ferrari paddock, where scientists run constant tests on the fuel and oil used during the race. Post event, the focus shifts to the digital platform to continue the engagement with the target audience.
Presence Multiplier
Shell believes in being ‘new’ every moment. Keeping in with the way influencers today talk about brands, Shell aims to be present on popular auto blogs and utilize various social media tools to ensure a holistic message delivery system. Being associated with a luxury brand like Ferrari only helps this initiation. Our media team develops a 360-degree approach for traditional as well as social media for all our campaigns.
Performance Review
For Shell, this association has proven to be substantially beneficial and helped our relations with OEM partners. In fact, markets like Brazil saw a significant increase in retail business sales post a Formula One race. Hence it is important to continuously keep reviewing the performance of the partnership and aim to deliver more for your partner.
Mansi Madan Tripathy is the Chief Marketing Officer at Shell Lubricants India
This article first appeared in the luxury issue of Marketing Booster magazine
