IMI Magazine

Going Dutch with Renault

Formula 1 racing has a reputation for burning sponsors’ money at a rate faster than the 200mph cars can consume high-octane fuel.

Yet it continues to act as a magnet for corporations which contribute a substantial chunk of the estimated £2.1 billion yearly revenue generated by the F1 calendar.

Weaned off dependence on cigarette manufacturers by the EC tobacco advertising ban, F1 now embraces a new group of team and trackside commercial “partners”.

The logos of telecoms and technology corporations  and  financial service providers are increasingly prominent – from the cars themselves, to the strategically sited hoardings, team uniforms,  drivers’ helmets and even the tiny earplug containers handed out to corporate guests.

Distinctive among that kaleidoscope of colours and symbols is the blue, white and orange livery of Renault’s title sponsor ING, the Dutch-based financial services company, whose less than catchy full title is Internationale Nederlanden Groep.

'Holistic' programme
But there is nothing ponderous about how, where, and why the world’s tenth largest company (Forbes Global 2000) comes to be halfway through a three-year “holistic” F1 programme.

In its bid to “raise global brand awareness”, ING looked at a sporting shortlist, which included the Olympics and international tennis. The Olympics was considered to be the domain of established domestic brands and tennis was rejected because of its fragmented organisation.

“F1 has one organiser for the whole world, and it’s active in the areas ING wishes to grow business – the Middle East, Asia and Eastern Europe,” said Isabelle Conner, head of marketing.

Why choose Renault, though? “Ferrari said the car is red and will stay red. McLaren offered a black logo on the silver car, so neither was ideal. Renault suggested ING help them design the car around the brand,” reveals Conner.

ING entered F1 in 2007 with a budget of around £128m spread over three years. For this, it gets trackside branding at 13 events, Grand Prix title sponsorship for the Belgian, Australian and Hungarian races, and title backing of Renault’s Oxfordshire-based operation.

What it doesn’t secure, yet, is the halo effect of being associated with a leading F1 machine. Renault finished last year with only one  podium finish and a single figure constructors’ points score to date this season.

Saintly figure
But to Spanish eyes at least, there’s the saintly figure of Fernando Alonso, winner of the 2005 and 2006 world titles with Renault. The Spanish driver has returned to the French team – to join Nelson Picquet – from McLaren-Mercedes, whose backers include, with a nice touch of irony, ING’s financial services rivals Santander.

“The involvement of Alonso is fortunate because his profile in Spain has already boosted our business there with an 88% rise in monthly income,” admits Conner.

ING maintains that its backing is not dependent on track success. Instead, it’s measuring return on investment through increased public awareness, generation of incremental business and media exposure.

This is on a quality and quantity basis, says Conner, who points to a global 7% increase in brand awareness after last season (something that was not expected until the end of next year), and a 25% jump in people “liking ING better”, a corporate feel good factor. But most heartening to the company’s monitors was the claim that those willing to do business with ING had climbed by 29%.

Conner’s earlier comment about F1’s presence in locations where ING is keen to boost its business is reflected in the event calendar: a shift from Europe, with China and Bahrain to be joined by the night-time Singapore race in September.

Abu Dhabi, India and South Korea could be in the running order by 2010, with Russia, Dubai and Qatar pushing at an open door. 

Tangible return
If proof positive is needed of a tangible return on investment, the ING evidence highlights 238 minutes or nearly four hours of 2007 TV exposure (whether of the car, drivers, hoarding or pits action), nominally worth £34m in advertising fees.

This was not far behind McLaren’s Vodafone and ahead of solus F1 tyre supplier Bridgestone and finance sector rivals RIBS, which backs Williams-Toyota.

With many sectors and companies struggling to reach young men, F1 boasts potentially lucrative demographics. It claims 95% of its TV audience are male, with 53% aged between 16 and 34.

When ING, in conjunction with Holland’s Postbank, staged a competition offering the chance to win Spa Grand Prix tickets for those opening post office saving accounts, 14,000 accounts were opened – three times the response rate of a conventional promotion.

Although glamour, whether in the shape of the drivers or all the celebrity hangers-on, is part of F1’s appeal, Isabelle Conner emphasises: “Rubbing shoulders with famous people is not why ING is in Grand Prix racing. F1 gives us tools to do business.

“Obviously races provide an opportunity to involve customers and clients. But one of the main reasons people tell us we are different (in F1) is because we really do not focus on this.”

F1’s tender touch
Ian Tilbrook, managing director of ING’s UK car leasing operation, has no doubts that the parent company’s involvement in Grand Prix racing is helping to open doors in the tough world of leasing and fleet management.

Overseeing a fleet of more than 50,000 vehicles and architect of the takeover of Appleyard’s leasing business, Tilbrook says: “ING’s recognition in the wider world has grown through the F1 involvement and fostered greater direct and indirect exposure in our market place.

“We are increasingly on tender lists, particularly in the public sector, and apart from our own increased capacity and resources, it must be down significantly to that wider general awareness resulting from F1. We aim to quantify what impact it has made, but from word of mouth the link is obvious.”

ING Car Lease’s growing role in pan-European deals is also a likely beneficiary from ING Renault’s elevated profile, added Tilbrook.

Hugh Hunston