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The importance of motorsport in North America

28/08/2009

While North America may not have had a Formula One race this season, there have been plenty in the past and there are increasing hopes of a return to the calendar in the future. Nevertheless, for Bridgestone, there are two MotoGP events in the US this season: the first in Laguna Seca and the second in Indianapolis; and with its Firestone brand, there continues to be a large presence in the IndyCar Series.

There is no doubt that the North American market is of strategic importance to many of the world’s car manufacturers as well as leading global brands and for Bridgestone in particular, North America is an ever growing market.

It is important therefore that Hiroshi Yasukawa, Director of Bridgestone Motorsport, the man who spearheads Bridgestone’s Formula One and MotoGP programmes, knows how these activities benefit Bridgestone’s sales companies around the world.

On this occasion, Mr Mark Emkes, Chairman, CEO and President of Bridgestone Americas, Inc., talks to Mr Yasukawa at length about the impact of motorsport in the company’s marketing strategy.

Hiroshi Yasukawa (HY): Mr Emkes, first of all, thank you for your time, a precious commodity in these tough times. Tell me, the business economy in North America has taken quite a hit. How has Bridgestone coped within this environment?
Mark Emkes (ME): Well, when we saw the economy starting to slow at the middle of 2008, we took very aggressive steps to reduce costs and expenses, while at the same time enhancing safety and quality.

HY: I know that traditionally Bridgestone Americas has been a positive supporter of motorsport activities in the past. What do you think is the most effective way of utilizing motorsport for sales activities?
ME: The most effective way is to get customer (dealer) and employee involvement. When both believe in the concept and the effectiveness, great things can be done. On a national and international scale, there is no doubt that our dealers and staff have a tremendous sense of pride in seeing our company have success in motorsports activities. When we are successful in motorsports, both our dealers and our sales people can use that as strong evidence and confirmation of the superior quality of our tires. When there is a racing event, our sales and marketing people work with our dealers in developing excitement and special tire promotional activities building up to the event. This helps increase sales. Our PR and marketing teams have relished the chance to host events with Formula One. For example, we have done open air press conferences and signing sessions with drivers for the general public in the US, run street décor programmes in Montreal and our employees have conducted workshops at the track showing the general public how we make our road tyres. Using motorsport we have really been able to interact with general consumers too.

Manufacturing quality products

HY: Has Bridgestone’s brand awareness increased by utilizing motorsport?
ME: I would say that the answer to this is “yes.” In the Americas, some countries have probably benefited more than others. Those countries that have recently hosted a race – like Canada and Brazil -- have definitely benefited.

HY: So contact with the end-users has increased through the use of motorsport and Bridgestone’s sales persons and dealers have been able to use our motorsport success as verification and confirmation of our superior quality products.

HY: Tell me, what sort of end-users do you think motorsport activities can particularly influence?
ME: If marketing activities are used correctly, I think motorsport activity can positively influence the buying decisions of a great majority of end-users. Of course some will be more impressed than others, but all can come away with a positive impression. I think it’s a simple conclusion — if a company can produce a tire that is on a winning car in a Formula 1 race or an IndyCar race, there’s a pretty good chance that the tire this company produces for a normal street car is going to be a high quality product.

Original equipment and tire sales

HY: What about the effects of motorsport activity on original equipment (OE) business?
ME: Again, it’s a similar story. When an OE manufacturer sees our success on the major motorsports stage, it confirms our credibility of being a producer of superior quality products. They understand the technology required in order to compete on a global stage, and, as a result, our image is enhanced. Also, an OE manufacturer has to be pleased with the increased brand awareness that is generated by our motorsports activity. In my opinion, the value of their vehicle is enhanced when they use products that perform well on winning race cars.

HY: Do motorsport activities contribute to tire sales in N America?
ME: We believe that the answer is “yes”. There are many IndyCar races which definitely enhance the awareness and credibility of the Firestone brand. Unfortunately at the moment, because there isn’t a Formula 1 race in North America, the benefit of Formula 1 to the North American market has been restricted. However, there is a definite benefit in Brazil where there is a race and a huge Formula 1 following.

HY: How has this affected your ability to recruit good, new staff?
ME: I do think that our involvement and success in motorsports has a positive impact on recruitment activities. Everyone likes to be part of a winning team. Also, a tire is round and black before it’s put on a race car. Then all of a sudden it becomes “sexy.” People are proud to be a part of that!

Diversified products

HY: Mr Emkes, as you know, our company supports not only F1, but also the GP2 Series, MotoGP, Karting and other series. It is not unreasonable to acknowledge that these motorsport activities will not influence all consumers in every market. What is important for us however is to send our message to our real target customers rather than all consumers. What else does Bridgestone in the Americas use to complement our motorsport activities as a way of increasing our company image and promoting our products?
ME: With the demographic that we’re trying to reach in the Americas, we feel sports marketing is key. Involvement with the PGA Tour (which has a global audience), the National Football League (primarily held in the USA) and the National Hockey League (with a strong appeal to the Canadian market and with followers in the USA as well) we have definitely enhanced Bridgestone brand awareness. However, none of these activities provide the benefit of having our product visible and tested on such a regular basis like motorsports. I don’t think there is a stronger testimonial.

HY: You mentioned the PGA Tour and indeed the Bridgestone Group companies produce not only tires but also sporting items such as golf and tennis products as well as bicycles. While F1 could appeal to high profile users and MotoGP to bike fans, I believe golf and tennis could appeal to a wide range of people while bicycles can also be associated with ecology. What role do you think these non-tire products will play in our company PR and sales promotion activities in the future?
ME: I think golf makes all the sense in the world since we certainly have great golf balls and an international audience. Tennis products and bicycles would have a smaller return. On the other hand, our experience with the NFL has been wonderful. It’s not an inexpensive investment, but we feel the return has been strong.

The future

HY: One final question Mr Emkes: how do you see motorsport fitting into our future global marketing strategy?
ME: I am a firm believer in motorsports activities. Formula 1 is considered the pinnacle of motorsports and continues to have a huge following worldwide. I have seen the positive impact that our success in motorsports has had on our customers (dealers) and our employees. If used effectively, our motorsports activities can have a very positive impact on the end-user as well.

To hear further insights from Mr. Yasukawa, please read the following articles:
Bridgestone in motorsport 2009
Life in MotoGP
Importance of MotoGP rider feedback
Developing Formula One technology
Charlie Whiting interview
Formula One benefits for the brand
Logistics and Formula One
Motorsport and the Spanish Market

Mr Yasukawa, Director
Bridgestone Motorsport

"On a national and international scale, there is no doubt that our dealers and staff have a tremendous sense of pride in seeing our company have success in motorsports activities."

"In the Americas, some countries have probably benefited more than others. Those countries that have recently hosted a race – like Canada and Brazil -- have definitely benefited."

Mr Emkes, Chairman, CEO
and President of
Bridgestone Americas, Inc.

"If marketing activities are used correctly, I think motorsport activity can positively influence the buying decisions of a great majority of end-users."

"When an OE manufacturer sees our success on the major motorsports stage, it confirms our credibility of being a producer of superior quality products."

"I think golf makes all the sense in the world since we certainly have great golf balls and an international audience."