|
 The CART paddock is split.
Some argue CART should focus primarily on the USA market, while others say
CART should go guns a-blazing after the wide open international
market. The argument used by those who feel CART should focus on the
USA is a valid one - sponsor dollars in the CART paddock come out of the USA
advertising budget for a large majority of the teams, and the USA market is
the biggest seller for many companies.
Their argument, therefore, is
that CART should focus on the USA because that is where those sponsors want
to sell product. They don't care about the rest of the world market
some claim. While we respect their reasoning, we don't buy the
argument. Are these companies part of a larger company that sell goods
worldwide, and if so, doesn't the entire company benefit if CART exposes
their products outside the USA too?
While the USA is ranked first in
Gross national Product (GNP), and should always be the 'core' of CART, let's
look at other countries with a high GNP rank, countries where sponsors might
want to sell goods, and most probably already do.
| GNP
Rank |
Country |
Merits
for a CART Race |
| 1 |
USA |
The world's biggest
economy. CART should keep 50% (11 of 22 to 24 races) in the USA |
| 2 |
Japan |
CART already races there
and Honda and Toyota like that. The race at Motegi is starting
to draw very large crowds. |
| 3 |
Germany |
CART will be racing there
starting this year, but there must be a big name German driver in CART
for the race to really succeed. |
| 4 |
France |
CART doesn't race there,
but we have suggested they do so at Bernie Ecclestone's Paul Ricard
circuit |
| 5 |
England |
CART will be racing there
starting this year as well. England is really into racing and
there is a strong British influence in CART |
| 6 |
Italy |
Imola is about to lose
their F1 race. CART should be ready to jump in quickly.
That would make Maserati and Ferrari very happy. |
| 7 |
China |
7th now, but it is
expected to grow by leaps and bounds over the next 10 years. Is
CART ready to pounce on Shanghai now? |
| 8 |
Brazil |
CART already raced there
and will do so again in Rio in 2002. CART has many Brazilian
drivers. |
| 9 |
Canada |
Look how successful CART
has been there. Next year 3 races. Let's hope Molson or
Air Canada jumps in to replace Players when they leave after 2003 |
| 10 |
Spain |
There has been no talk of
CART racing there, though much to our surprise they rank higher in GNP
than we realized. Servia is from Spain. |
| 11 |
South Korea |
I don't see CART racing
there anytime soon unless Hyundai enters the series to supply
engines. Stranger things have happened. |
| 12 |
Netherlands |
A higher GNP rank than we
realized. Zandvoort is available for CART to race at.
Since they lost their F1 race, they long for a replacement. |
| 15 |
India |
15th is not too
shabby. Humongous population. Can you say 400,000 fans in
the grandstands?
See our recent article on the merits of
racing in India. |
| 16 |
Mexico |
Not as high as a China,
but, oh how the Mexicans love CART. With NAFTA now in place, we
expect Mexico to slowly jump up the GNP rankings. |
Based on GNP alone, CART should
already be in China and Italy. CART should not walk, it should run to Shanghai.
It should have been there yesterday. Ditto for Italy when Imola
becomes available. But it's not just based on GNP that I make this
recommendation. It's also based on where CART's sponsors sell
goods. Read on......
Let's take a closer look at CART's
sponsors, and see just how global they are, after which we will draw our
final conclusions. The list below is by no means all-inclusive.
It was what I could remember off the top of my head (comments welcomed).
| Company |
Logo |
Parent
Company |
USA
Only |
Global |
Comments |
| CART
Series official Sponsors |
| Federal
Express |
 |
Federal
Express |
|
X |
Worldwide overnight
shipping |
| Worldcom |
 |
MCI
Worldcom |
|
X |
Worldwide
telecommunications |
| DieHard
Batteries |
 |
Sears,
Roebuck & Co. |
X |
|
Diehard brand USA
only. Parent company Sears is worldwide |
| elf
Fuels |
 |
elf |
|
X |
Petroleum products sold
worldwide |
| Firestone
Tires |
 |
Bridgestone |
|
X |
Bridgestone Tires sold
worldwide, though Firestone largely a USA brand |
| Ford |
 |
Ford |
|
X |
Cars sold worldwide |
| Featherlite
Trailers |
 |
Featherlite |
X |
|
Mostly USA and Canada |
| Honda
Motorcycles |
 |
Honda |
|
X |
Motorcycles sold around
the world |
| K&K
Insurance |
 |
Aon |
|
X |
Part of Aon Corp. 51,000 people working in 550 offices in more than 120 countries |
| Motorola |
 |
|
|
X |
Electronic communication
equipment sold worldwide |
| PPG
Paints & Glass |
 |
|
|
X |
A leading global
automotive product manufacturer, PPG operates about 120 manufacturing and several research & development facilities worldwide. |
| Simple
Green |
 |
|
|
X |
Headquartered in Huntington Harbour, CA., with branch offices and manufacturing facilities nationwide and
worldwide |
| Toyota
Trucks |
 |
Totota |
|
X |
Trucks sold worldwide |
| Gehl |
 |
Gehl
Company |
|
X |
Agriculture and light industrial construction
equipment. Primarily USA and Canada, Gehl has a 50+ year of history in international markets
through Gehl International |
| holmatro |
 |
|
|
X |
Holmatro has gained a worldwide reputation as a leading manufacturer of high-pressure hydraulic equipment. Holmatro solutions are based on almost 35 years of experience and are offered to rescue and industrial customers in more than 120 countries |
| Safety-Kleen |
 |
|
X |
|
Premier environmental services company in North America |
| Engine
Suppliers |
USA
Only |
Global |
Comments |
| Ford |
|
|
|
X |
Automobiles sold worldwide |
| Honda |
 |
|
|
X |
Automobiles sold worldwide |
| Toyota |
 |
|
|
X |
Automobiles sold worldwide |
| Team
Sponsors |
USA
Only |
Global |
Comments |
| Redback |
 |
|
|
X |
Networking products sold
worldwide |
| Tecate |
 |
|
|
X |
Beer sold worldwide |
| Quaker
State Mexico |
 |
Quaker
State |
|
X |
Parent company Quaker
State sells worldwide |
| Herdez |
 |
Grupo Herdez |
|
X |
Sells a variety of
products worldwide. Even sells McCormick seasonings in the USA |
| Marlboro |
 |
Philip Morris |
|
X |
Philip Morris sells so many
different products around the world, it's incredible! Marlboro
is sold worldwide |
| Pioneer |
 |
|
|
X |
Sells electronics
worldwide |
| Hollywood |
 |
British
American Tobacco |
|
X |
Sells tobacco products
worldwide |
| Worldcom |
|
|
|
X |
Telecommunications
worldwide |
| Kmart |
 |
|
X |
|
USA brand only |
| Texaco |
 |
Chevron |
|
X |
Sold worldwide |
| Nextel |
 |
Nextel |
|
X |
Worldwide |
| Visteon |
 |
Visteon |
|
X |
Nearly 80,000 employees in 25 countries. One of the largest automotive suppliers in the world. Visteon's 2000 global sales revenues were $19.5 billion; net income was $270 million |
| Alpine |
 |
|
|
X |
Electronics products sold
worldwide |
| Avex |
 |
|
|
X |
Japan based music and
entertainment |
| BAR
(Players) |
 |
British
American Tobacco |
|
X |
Sell tobacco products
worldwide |
| Bosch
Plugs |
 |
|
|
X |
Sell automotive products
worldwide |
| CocaCola |
 |
|
|
X |
Sell beverages in 200
countries worldwide |
| Compaq
Computers |
 |
|
|
X |
Sell computers
worldwide. #20 of Fortune 500 company |
| Craftsman
Tools |
 |
|
|
X |
Tools sold worldwide |
| DieHard
Batteries |
|
|
X |
|
Diehard brand USA
only. Parent company Sears is worldwide |
| Dupont |
 |
|
|
X |
Worldwide products |
| Energizer
Batteries |
 |
Ever
Ready Battery |
|
X |
Energizer Holdings, Inc. is the world's largest manufacturer of dry cell batteries and flashlights, and a global leader in the dynamic business of providing portable power. Energizer's worldwide work force of approximately 10,500 produce more than 6 billion battery cells annually. |
| Fuji Film |
 |
|
|
X |
Film sold worldwide |
| Indeck |
 |
|
|
X |
Power equipment sold
worldwide |
| Kraft |
 |
Phillip
Morris |
|
X |
Food products sold
worldwide. Owned by Philip Morris |
| Miller
Beer |
 |
|
|
X |
Alcoholic beverages sold
worldwide |
| Motorola |
|
|
|
X |
Electronic communication
equipment sold worldwide |
| Panasonic |
 |
|
|
X |
Electronics sold worldwide |
| Pepsi |
 |
PepsiCo |
|
X |
Beverages sold worldwide |
| STP |
 |
Clorox |
|
X |
Sold worldwide. The Armor All/STP Products Company is a wholly owned subsidiary of The Clorox Company (NYSE, PE: CLX), a multinational manufacturer and marketer of household products and products for institutional markets. Founded in 1913, The Clorox Company, based in Oakland, Calif., has $4 billion in annual revenue and employs more than 11,000 people worldwide. |
| Target
Stores |
 |
Dayton
Hudson |
X |
|
No strong international
ties |
| Telmex |
 |
|
X |
|
Mexico |
| Globalstar |
 |
|
|
X |
Sells satellite based
phones worldwide |
| Jack
Victor |
 |
|
|
X |
Sells clothing worldwide |
| Kool
Cigarettes |
 |
Brown
& Williamson |
|
X |
Sells tobacco products
worldwide |
| Archipelago |
 |
|
|
X |
A whole host of services,
worldwide |
| Timkin |
 |
|
|
X |
Timken operates facilities in 24 countries on six continents |
| Shell |
 |
Royal
Dutch Shell |
|
X |
The Royal Dutch/Shell Group of Companies has grown out of an alliance made in 1907 between Royal Dutch Petroleum Company and The "Shell" Transport and Trading Company |
| Denso |
 |
|
|
X |
A global supplier of advanced technology, systems and components, DENSO serves all the world's major automakers. |
| Champion |
 |
Federal-Mogel |
|
X |
150 plants in 24 countries |
| Rumored
potential
New Sponsors/Manufacturers |
USA
Only |
Global |
Comments |
| Eli Lilly |
 |
Lilly |
|
X |
Lilly is a leader in the pharmaceutical industry. The company employs more than 35,000 people worldwide and markets its medicines in 159 countries. |
| Audi cars |
 |
Audi |
|
X |
Sells cars worldwide |
| Fiat/Ferrari |
 |
Fiat |
|
X |
Sells cars worldwide |
| Maserati/Fiat |
 |
Fiat |
|
X |
Cars sold worldwide |
| Numerous
more once CART declares itself a true global series |
The conclusion I draw from the above analysis is
simple - the vast majority of CART's sponsors are in some way, shape or form
selling products globally. If CART were to declare itself a global
company in a strong, vigorous way, it would not only attract more new
sponsors, it's existing sponsors would be well served.
Certainly some of the companies might want to
change what 'brand' they have on the side of the car, but for the most part
the brands they are already advertising through CART racing are recognized
and sold worldwide.
There is, however, one small
hurdle. Because existing budgets largely come out of US
marketing/advertising budgets, the USA arm/subsidiary of a larger company is
going to have to bring together other subsidiaries to chip in and contribute
to the sponsorship deal.......because they are indeed benefiting from CART's
global presence. It's up to CART's Rich Henley and Joe Heitzler to
help the existing sponsors understand that CART's future is a global one,
and they must start thinking 'global' when putting together their
sponsorship package. Should CART change overnight? Perhaps, but
it's best they take one strategic step at a time, for CART itself, in many
respects, has to reinvent itself into a global-thinking, global-operating,
company.
As Steven Levinson recently
wrote on these pages, Sponsors like Motorola, Shell, Texaco (and most others
above) who have global perspectives have also seen that CART can be a viable marketing and advertising vehicle to project their names on the "Global Market". I think that Honda (whomever they are HONDA USA or HONDA JAPAN) knows that the 115,000 people who come to Surfer's Paradise in Australia certainly get their HONDA name all over Australia and the rest of Asia during the 4 days of Honda's CART Indy Carnival. Who cares whether or not it's HONDA USA or HONDA JAPAN. The consumer and fan "down under" only see "HONDA," and this is certainly good for HONDA. When HONDA wins in CART, do consumers in Japan, Europe, Australia or South America say, "that doesn't count, that's HONDA USA!" Of course they don't, the consumer does not differentiate, to them it's all the same.
A win by Honda endures to the benefit of the entire Honda "Brand name". The powers that be in Tokyo are pleased by any CART Honda win, as would be the Toyota Corporate heads in Tokyo. If not, why is Honda Corporate furious that HONDA has not won the CART Motegi race in Japan. They are exasperated by not winning. And Honda certainly wants to beat Toyota at Motegi, and vice-versa. Its up to Corporate Honda to assess each of their worldwide subsidiaries to do the "bookkeeping" and assess each for the total costs of the program!
F1 sponsors pony up 10 times
more for a F1 sponsorship than a CART sponsorship, yet CART has a far better
on-track product. If CART wants to start to attract new sponsors, and
the really big sponsorship dollars ala F1, it's going to have to define
itself as a global racing powerhouse. Enough of this "we are an
American Series that sometimes races globally"! The statement
should be "we are an international world series, based in North
America"!
Should CART be racing in
China? Yesterday! And Italy? Tomorrow! The future is
global my friends. There's a reason why the world below is green like money.
It's even partially peeled off, there for CART's taking.
Think Big!
The author can be contacted at markc@autoracing1.com
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