And Now, a Word from our Sponsor...
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And Now, a Word from our Sponsor...
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By David Cameron, Italy
Atlas F1 Magazine Writer
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Table of Contents includes links to each chapter
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Tony Ponturo, Vice President of global media and sports marketing for Anheuser-Busch, was at Silverstone for the launch of the new sponsorship agreement with BMW Williams.
DC: What was Budweiser actually looking for when you decided to sponsor a team in Formula One? Ponturo: "It started with the fact that we were growing our business internationally. We realized that even though we're a strong American heritage beer, we have to start doing things and act in an international way - you need marketing properties that appeal to an international market. We have the World Cup, but that's only every four years and as big as that is we were only about to take advantage of that in a small timeframe. "So we've been doing our homework and looked at Formula One for about three years now, and we realised the popularity of the sport, that it crosses many, many countries in interest, and that as we use sport as a platform for our marketing communications to beer consumers it fit. And even though there is a perception that Formula One is kind of high end - you know, there is the paddock club and everything - all you have to do is walk around the track and you'll see a lot of hardcore fans that look more like beer drinkers than champagne drinkers! "So we felt that this was clearly our consumer base, and sort of the last leg in a sense is that it's every year rather than four years, so it gave our country managers around the world a very attractive marketing tool to communicate Budweiser as we go out each time." DC: You said it took three years to make the decision to go with Formula One - what was involved in that timeframe?
"We went to a race in Monaco just to understand what the opportunities were, and then out of constant communication someone said maybe it's time. And our country managers were saying 'we could use some more (help)' - if you use the UK for example, we have a very high image, we're an American import with a premium price, and that has created a great business for us, but how do we go to the next level of growth? And now you have to start bringing things to the consumer, hopefully that are relatable, and it just started seeming like the time was right." DC: Formula One has a very large fan base, but also a reasonably intelligent one - was that something that particularly appealed to you? Ponturo: "Certainly outside of the US, because I think there's two different plays here - as an imported beer with a premium price you're fitting a certain image and a certain niche, either from an aspirational aspect or certain people fit that personality that the brand projects. In the US we sort of want to be all things to all people, and if you reverse it out the import business in the US is attracting consumers who are or have a sophisticated image, that are high end, and they look at some sports that (others) are not interested in. "So as passionate as the NASCAR fan is in the US, someone who may be a beer drinker but may not be into NASCAR but has quietly been passionate about Formula One - and I think we're learning, because we don't have all the answers yet, that there's a lot of people out there in the US who are Formula One fans. "And as we have looked over the years to broaden the personality of Budweiser, to say this brand does have a place in a more sophisticated environment. We're starting to use some non-sports things for this as well, like trying to tie in on entertainment things like sponsoring the Academy Awards and things like that, that this Formula One is kind of the same personality - high end, a little bit above the crowds, sophisticated. "When you're tying in the sponsorships in many respects you are tied into the personality of that sponsorship, and I think it works for both sides because I think what we have felt from the BMW Williams people is that we bring a personality to the sport because of our heritage and our traditions. I think both sides feel they can benefit from that sponsorship." DC: What was it that brought you to BMW Williams? It's a fairly open secret that you were in talks with Ferrari, but what made you come across, and how did the deal change?
"That intrigued us a lot, because there has to be a comparability and a respect for how you're going to market this brand, and also the combination of other sponsors; we are a beer company, how is that all going to work. And we just felt that their vision and their openness to say 'we want you to put point of sale up', 'we want merchandising', 'we want television commercials'. BMW, HP and FedEx - speaking to them - are looking forward to that additional exposure as well. You put that all together - the vision, the partnership, the people - and it all just made sense for us to go with this team, and it's been underlined ever since we signed the deal." DC: I love the concept of sponsorship workshops that Jim told me about, where you can all brainstorm ideas together, and I guess that must have had a lot of appeal to you. But, I must say I was surprised at the size of the logo on the car - does that reflect that there was far more to the deal than just the exposure on the car that brought you over? Ponturo: "I think that for the dollar investment we came in with the value on the cars and on the drivers sleeves was fair value relative to the costs of sponsorship in Formula One. The additional value we see is how we can market that association - we've already spoken with Jim about how we can do other cross promotions with the other motor racing programmes. "They did the exhibition with Jeff Gordon and Juan Pablo, and that was sort of a fun thing, and we sit here with Dale Earnhart Jr and Brandon Bernstein within HRA, and I guess Juan Pablo wouldn't mind going down a dragstrip at 300 miles an hour either, so how do you sit down and have some fun with that? And of course with HP and FedEx there are ways to think creatively about how to use it. So, as you said, that's some of the stuff that intrigued us - we liked the fact that there's some fellow partners. It's a bit of a disconnect from what people have known us for - it's a red car and you own the whole imagery - but I think in the perspective of what we were willing to invest today in Formula One that's the proper value of what you are going to get from what we invested, and then how we all work together to market this is the key. In our minds this is a 25 year play - when you get into Formula One you're not looking to get out even after the five year deal ends. So I think this is a very, very good step and where it goes no one really knows, but maybe in years six to ten the look or appearance on the car will be what people are more familiar with (laughs)." DC: Does this represent a dip of your toe in the pool, to see what it's like, and then go from there? Ponturo: "Yeah, I think one of the attractions for us is that you build up a partnership that you're going to build on, and in five years our business will be different and hopefully it grows and you'll see this as a bigger piece. So how you expand will be open to conversation, but from our standpoint we're not getting ahead of ourselves - this is something that will only grow, not diminish." DC: One thing that intrigues me is the fact that all sponsorship on the Williams car must fit in with their blue and white colour scheme. Obviously, Budweiser is a red brand, albeit with blue writing. So how did that fit in with your ideas? Ponturo: "Well, there was some apprehension, and we brought the conversation to them that 'wouldn't a red Budweiser look very nice on the car?'. Obviously well before we came into the picture the feeling was that blue and white was the theme, and to their credit it simply was a non-starter for them, so I think as a company we need to say 'okay, do all the other attributes outweigh the fact that Budweiser won't be red on the car?' "What they were very open to was work red into anything you want as long as the car is blue and white, and that's were we'll bring in the red from a sense of point of sale, outdoor and magazines that we do, and I know that we want to work very hard to do a television commercial too - we've done something very quick for this weekend, that basically pieces together some footage and introduces Budweiser as a new sponsor, but that's something we're going to take great time with when we develop this. "Because, you know, we want to respect the tradition of Formula One, the position of Formula One and the fans, who have probably been far more involved and interested before we are. And there are going to be people looking to see how we use this property and so we're going to want to put our best foot forward from the initial stages." DC: I'll be interested to see how it works, as yours is the most notably different of the sponsors logos, but for what it's worth I think the blue and white clears up a lot of the clutter Ponturo: "It seems that it's sort of an all for one thing, in other words lets make the whole thing work together, and obviously they've thought this out. So even though there's no doubt that BMW and HP and probably even FedEx have invested more in this team, we walked into this feeling that there was a 'how do you get your value out of this as equals' and that again was one of the uniqueness of this team - we weren't having to feel like we were earning our stripes the first day, it's more like you're one of the team now, and let's all work together to make this happen." DC: As the newcomers to Formula One, how does this place strike you operationally? It's clearly different to anything you're used to back home Ponturo: " I think you respect an organization that's been very successful and has a lot of heritage, and the last thing you want to do is come in and sort of be the know-it-all, because in this sport we're not, and coming back to respecting BMW Williams colour scheme you don't sit there and be a bully - first of all it's not going to work, and secondly you just accept it and move on. "I think we feel very strongly, and I think it's worked for us, that it has to be a partnership and about building friendships, and that it's ultimately sell the beer - the product is not an expensive product, and it's something that people can change their mind about not only every day but every hour if they want to, and so you've got to project an open and honest image. "We continually learn that the consumer is a pretty smart person and he'll catch on pretty quickly, particularly as the new generation comes through and they've been bombarded with advertising and marketing and everything going on and they weed through pretty quickly the imposters, and I think if you speak to the major sports in the United States - whether it's the NBA or football or baseball - they'll say for what these people spend they're maybe our most cooperative sponsor. I think we're smart, and I think we know how to get the right value out of it, but I don't think we're a prima donna."
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Ponturo: "Well that's sort of when we started thinking that, okay, we're growing an international business; we may not be there yet from the threshold standpoint in the sense of market share and growth, a sense of more than one or two countries doing well and we wanted a broader breadth of countries. There wasn't anything magical about that timeframe other than that's when we started talking about it.
Ponturo: "We did talk to Ferrari as you say and then obviously BMW Williams, and we felt that all the pieces of the sponsorship and the partnership had to work. Simply put, and probably the biggest motivator other than our respect for Frank Williams and his team - and we were incredibly impressed with his people - but they from the start were very impressed with wanting us to be a part as well, and they really wanted our marketing benefit as well.
