Marketing through the Volvo Ocean Race by Eugene Platon

life at the extreme marketing through the volvo ocean race

contents

1.0 connexus precision

2.0 executive summary and key headlines 2.1 KEY MEDIA DELIVERY HEADLINES 2.2 KEY FINDINGS FROM AWARENESS AND IMAGE RESEARCH 2.3 RACE SUMMARY

07 09

3.0 research programme

4.0 volvo ocean race 4.1 TELEVISION 4.1.1 BACKGROUND 4.1.2 TELEVISION COVERAGE 4.1.3 TELEVISION AUDIENCES 4.2 PRESS 4.2.1 BACKGROUND 4.2.2 PRESS COVERAGE 4.2.3 DELIVERY OF EXPOSURE 4.3 RADIO 4.4 ONLINE 4.5 MOBILE 4.6 FOOTFALL 4.7 AUDIENCE PROFILE 4.8 QUANTITATIVE RESEARCH 4.8.1 BACKGROUND 4.8.2 AWARENESS, IMAGE & EFFECTIVENESS 4.8.3 VOLVO CARS 4.9 QUALITATIVE RESEARCH 4.9.1 BACKGROUND 4.9.2 KEY FINDINGS 4.9.3 VERBATIM COMMENTS

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5.0 case study: abn amro 5.1 SUMMARY 5.2 TELEVISION 5.2.1 DELIVERY OF VALUE 5.2.2 SOURCE OF VALUE 5.3 PRESS 5.3.1 DELIVERY OF VALUE 5.3.2 VALUE BY COUNTRY 5.3.3 VALUE BY TYPE OF EXPOSURE 5.3.4 VALUE BY TITLE

79 80 82 83 85 86 87 89 91 91

6.0 2001-2002 retrospective

11 13

this report summarises the key findings from the global research programme for the 2005-06 volvo ocean race. the research programme, which covered a wide range of topics, had two goals: to provide stakeholders with a comprehensive assessment of the race's reach and impact, and to offer original, objectively-derived insights into the values associated with the race. the research gathered for this report covers the period from october 2005 - the month before the start of the race - to july 2006 - the month after the race's conclusion. the research programme was designed and managed by connexus precision, the volvo ocean race's appointed research consultancy. it includes figures generated by several appointed data suppliers across the various disciplines covered. 02

1.0 connexus precision

Founded in 1999, Connexus PreciSion is an independent specialist sponsorship research, evaluation and strategy consultancy. Based in London, Connexus PreciSion designs and manages research programmes for both sponsors and rights owners, to help measure and analyse the value delivered by sponsorship investments. Services include measurement and analysis of both sponsorship outputs (eg audience delivery) and sponsorship outcomes (eg the impact of sponsorships on brand and commercial objectives).

Connexus PreciSion has, over the past eight years, built a reputation for developing innovative approaches to sponsorship research and for delivering professional, meaningful and credible analysis and reporting. A selection of some of Connexus PreciSionâ&#x20AC;&#x2122;s clients is illustrated below.

2.0 executive summary and key headlines

The mission statement for the 2005-06 Volvo Ocean Race was: “To attract, excite and inspire a global audience beyond the traditional sailing enthusiast.” The figures generated by the research programme demonstrate how effectively this target was achieved. Media coverage for the race reached a far greater audience around the world than ever before, and platforms such as mobile downloads provided a wholly new channel through which people could interact with the race. Similarly, a number of innovations were introduced to the format of the event itself, and research amongst race followers shows how successful these were at engaging audiences and building interest. Some of the research programme’s headline statistics are provided on the following pages, illustrating key findings such as: • A global TV audience of 1.8 billion, an increase of 121% on the figure for 2001-02. • Over 17,500 articles in the worldwide press, an increase of 15% on the volume achieved in 2001-02.

• 3.5 million unique visitors to the official website, a 15% increase on the 2001-02 figure. • 4 million mobile downloads – a new channel for the race in 2005-06. • 2.8 million visitors to the ports at stopovers. • Strong increases in all positive brand attributes associated with the race compared with last time. • A clear, distinctive identity for the Volvo Ocean Race compared with the America’s Cup and Formula 1, with strong competitive advantages on many of the brand image dimensions. • A demonstrable effect on the purchasing of new Volvo cars by race followers. • Typical return on investment for syndicate sponsors of up to 200-300%. These results will now be used to inform the strategic planning process for the 2008-09 race, to build on the successes achieved – and measured – in 2005-06.

2.1 key media delivery headlines

cumulative global tv viewing audience 1,792,450,630 total number of press articles 17,609 total hours of recorded radio coverage 261 total unique visitors to the official website 3,509,282 total number of mobile downloads 3,933,065 total number of visitors to port cities 2,815,000

2.2 key findings from awareness and image research

awareness of the volvo ocean race amongst abc1 men in the netherlands, spain and the usa reached 53% by june 2006 the values most strongly associated with the race include: *adventurous *exciting *world-class *dramatic *global *performance compared with the america's cup and formula 1, the volvo ocean race is perceived as being the event most strongly associated with: *endurance *extreme *adventure *global *teamwork twice as many core followers of the race have recently purchased a new volvo car as have purchased any other marque those who are aware of the race are nearly twice as likely to consider purchasing a volvo as those who are unaware of it

2.3 race summary

Mike Sanderson’s ABN AMRO One dominated the 2005-06 Volvo Ocean Race, taking maximum points 15 times out of 21 scoring opportunities during the race. But, having said that, this was a highly competitive race, with plenty of drama and excitement provided by all seven boats – even before the official start in November 2005. In April 2005, Spain’s movistar broke the world record for the longest 24-hour run, covering 530 nautical miles. This record was then, in turn, broken first by ABN AMRO One, with 546 nautical miles, and then by the crew of ABN AMRO Two on Leg 2, from Cape Town to Melbourne, with a run of 563 nautical miles, demonstrating both the power and speed of the ground-breaking new Open 70 design.

final points table

abn amro one

96.0 points

pirates of the caribbean

73.0 points

brasil 1

67.0 points

abn amro two

58.5 points

ericsson racing team

55.0 points

movistar

48.0 points

brunel

15.5 points

The first ever in-port race, held in Sanxenxo a week before the fleet departed from Vigo for Leg 1, was won by Ericsson Racing Team. This was a real achievement for both the boat and the crew, who were the penultimate team to be announced only six months before the start of the race. A storm on the first night of Leg 1, just hours after the fleet left Vigo, forced three of the boats – movistar, Pirates of the Caribbean and Sunergy and Friends (later to be renamed Brunel) – to head for ports in Spain and Portugal for repairs. For the first two, this resulted in retirement from the leg. With no points gained from Leg 1, Pirates’ final position of second overall represented a strong performance. Their late entry into the race meant that skipper Paul Cayard and his crew had comparatively little time on the water prior to the start, but they benefited from an increasing familiarity with the boat as the race progressed.

The most severe storm, however, did not hit until the fleet was in the midAtlantic, having departed from New York. This storm caused the tragic loss of ABN AMRO Two’s Hans Horrevoets, followed shortly afterwards by the abandonment of the movistar boat. Following consultation with Hans’ family, the ABN AMRO Two crew decided to continue the race to the finish. They very nearly won Leg 9, the final leg between Rotterdam and Gothenburg, only to fall victim to a hole in the wind. They were overtaken near the end, giving Pirates their only win of the race. ABN AMRO One was the last of the finishers in the final leg but, by this time, had already won the race. Expressing what it meant to him, skipper Mike Sanderson said, “This is my Olympic medal, this is my climbing of Mount Everest, this is my childhood dream: to win the Volvo Ocean Race.”

3.0 research programme

The design and management of the research programme were consistent with the principles of industry best practice. The background and method to each of these are explained in greater detail at the start of each relevant section in this document.

The 2005-06 research programme included the following elements: • Measurement and analysis of TV audiences, exposure and value. • Measurement and analysis of press coverage and value. • Measurement of other key output variables. • Quantitative research into levels of awareness and perceptions of the race, and sponsorship effectiveness. • Focus group research to gain deeper insights into attitudes towards the race.

The schedule of the 2005-06 race is given in the table below. Also shown below are the dates which – for the purposes of the media exposure and value figures described in this document – represent the finish dates of each leg.

The research programme’s focus and design were towards the Volvo Ocean Race and Volvo in particular. However, important findings and learnings for syndicates and their sponsors were also generated and can be extrapolated or inferred from the overall sets of results produced.

leg

start

galicia in-port race

05 nov

finish

vigo

12 nov

cape town in-port race

26 dec

cape town

02 jan

melbourne in-port race

04 feb

melbourne

12 feb

wellington

16 feb

wellington

19 feb

rio de janeiro

11 mar

rio de janeiro in-port race

25 mar

rio de janeiro

02 apr

baltimore/annapolis in-port race

29 apr

annapolis

07 may

new york

09 may

new york

11 may

portsmouth

21 may

portsmouth in-port race

29 may

portsmouth

02 jun

rotterdam in-port race

11 jun

rotterdam

15 jun

cape town

melbourne

baltimore

rotterdam

gothenburg

reporting dates

01 dec

21 jan

17 apr

10 jun

17 jun

pre-race + leg 01

11 dec

leg 02

29 jan

leg 03

19 feb

leg 04

19 mar

leg 05

23 apr

leg 06

10 may

leg 07

28 may

leg 08

11 jun

leg 09 + post-race

31 jul

4.0 volvo ocean race

the charts and figures in this section describe: * the media outputs generated by the 2005-06 race, in terms of media exposure and audience delivery * the profile of the audience that follows an event such as the volvo ocean race * the values associated with the race * the impact of the race on key measures for volvo

4.1 television

4.1.1 background Measurement for principal broadcasters at key times was carried out for the following territories between 1 October 2005 and 16 July 2006. australia, brazil, china, france, japan, netherlands, new zealand, south africa, spain, sweden, uk, usa Exposure in the countries to which packaged programming was distributed, and for pannational broadcasters covering over 200 territories, was monitored throughout. In addition to the TV exposure covered by this monitoring specification there was, clearly, further coverage for the race in other territories, on other channels and at other times. Based on various sources of additional information, including figures from the 2001-02 race, it has been assumed that this “unmonitored” exposure added an additional 10% of audiences and value.

Media values have been calculated by taking into account levels of brand exposure, audience size and profile, and the cost of purchasing TV airtime in the relevant territory. For syndicate sponsors, in line with the methodology applied to the 2001-02 race, sponsorship brand exposure has been weighted at 70% of the cost of paid-for TV advertising airtime. Indirect exposure for sponsors (or share of coverage) – when the boat or crew etc are visible on screen even if the brand logo is not – has also been valued at 70% of the cost of paid-for advertising airtime. Again, this is consistent with the 200102 methodology. Finally, it is important to emphasise that the figures described in this document do not include the audiences or values that will be generated by the forthcoming documentaries. Whilst these programmes will increase the audience size and will add further value for all sponsors, it is necessary to wait until the major distribution agreements are completed before specific figures are attributed to these.

4.1.2 television coverage

• Weekly half-hour programmes were produced in-house throughout the race, in collaboration with specialist production company Sunset & Vine. • This programming was provided to major international broadcasters and distributed to more than 192 countries by Television Corporation (now Tinopolis). • Daily news items were produced and distributed by ITV, the UK’s largest commercial broadcaster.

• This television coverage was based primarily on the footage created by the 10 cameras on board each boat, feeding live and stored content wherever they were in the world. • In addition, six half-hour documentaries have been produced, for which the distribution process is currently in progress. These documentaries aim to appeal to a broad audience, beyond the core sailing enthusiast, and will add to the TV audience and value figures described in this document.

number of broadcasts

In addition to the partner broadcaster relationships, coverage of the Volvo Ocean Race was also distributed to further broadcasters. This coverage was not monitored within the scope of the research programme. It has been estimated, for the purposes of this report, that the additional coverage from these and other broadcasters delivered additional audiences and value of 10% on top of that which was measured.

These charts do not reflect the coverage of the race that was featured on panterritory broadcasters (though this is included in the subsequent audience and media value analysis).

by territory 117

australia

by territory (hh:mm:ss) australia