by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
GP Week : Issue 176
42 GPWEEK.com // 42 GPWEEK.com // PARTNERS: first time that the team had been in the black since 1999 and it has remained there ever since. By 2008 the investment had paid off as Toro Rosso scored its first ever victory when Vettel won the Italian Grand Prix for the team. This was step three of Red Bull’s strategy in action as it has used Toro Rosso as a test bed for new talent which led to it selecting Vettel as the best of the bunch. It also gave Red Bull economies of scale in manufacturing and procurement since, until a few years ago, the design work for both teams was carried out by the same company - Red Bull Technology. Red Bull has stood by both of its teams. Not only did it buy back Berger’s Toro Rosso stake in November 2008 in order to secure the future of the team, it also shelved plans to sell it when no suitable buyers came for ward. In September last year unfounded and misguided reports emerged saying that Toro Rosso was yet again up for sale. They claimed that “Scuderia Toro Rosso will be taken over from the Italian Grand Prix onwards by the International Petroleum Investment Company (IPIC) of the United Arab Emirates. There have been suggestions that the Faenza-based team will become known as Team UAE.” Red Bull’s chief executive Dietrich Mateschitz denied that the report was accurate and, true to his word, Toro Rosso is still owned by Red Bull. From the moment that Red Bull bought Minardi concerns were raised about its strengthening grip on F1 since the regulations in many other sports prevent one company from owning multiple teams. Although it is perfectly allowable in F1, it was one of an extremely small number of occasions where the drinks company has strayed close to controversy in the sport. This in itself is a remarkable feat and is the fourth key step in Red Bull’s road-map for F1 success. In 2007 McLaren was found guilty of spying and several years later it came to light that Renault had rigged the result of a race. Red Bull however has kept its nose extremely clean. It has contributed to the incredible exposure that the brand has got through F1. Red Bull has the most visible logos on the Red Bull Racing and Toro Rosso liveries and this has made it the most exposed brand in F1 for the past three years running. According to F1’s industry monitor Formula Money (www.formulamoney.com), Red Bull’s Advertising Value Equivalent (AVE) - the price it would have to pay to buy a similar amount of on-screen exposure - came to an estimated £144m in 2009 and £232m in 2010 when it received almost a quarter of the total received by all the teams. Although this reduced to £165m in 2011 it was still over 20% of the total gained by all the teams. Through the value of this exposure alone Red Bull offsets the cost of its annual investment in its team. Having one dominant brand on the livery has kept Red Bull Racing clear of association with other sponsorship clutter and increased its exclusivity. This gives the space on its cars a higher value and is the final step in Red Bull’s path to F1 success. It could be the most important and may indeed be the key to the long-term survival of its flagship team. The reason for this is that the increased sponsorship income has allowed Red Bull to reduce its investment in the team. In turn this makes it less likely that Red Bull will cut its funding in future. The biggest threat to Red Bull Racing doesn’t come from Ferrari or another team but from Red Bull itself because if it pulled the plug on the financial support it would not be able to continue. The team’s success could be counter-productive as the more well-known the brand becomes through F1, the less of an impact its association with the sport may have. However, if the cost of Red Bull’s investment is decreasing at the same time that its exposure from F1 is increasing then it wouldn’t make sense to pull out of the sport. This is the real race which the team has got to make sure it keeps on winning. F1 >>> FEATURE BOX: THE ROADMAP TO RED BULL’s F1 SUCCESS 1. Commitment of long-term financial support 2. Investment in the most talented staff available 3. Economies of scale and driver test-bed gained through dual team ownership 4. Impeccable reputation 5. Clutter-free livery: Increases Red Bull's exposure and exclusivity