LUXURY CAR REPORT
EVENTS ISSUE
Table of Contents Introduction AND Overview of luxury car events FOUR ATTRIBUTES TO LUXURY CAR EVENTS Character Profiles Ultimate 6 luxury car events to partake in Bandwidth of top-level products SWOT Analysis Media campaigns and promo Anti Laws of Marketing Hierarchy pyramid Conclusion References
By: Kallie Hoxter & Joey Calderon
Introduction Â
Â
Luxury automobile events rule the world of luxury and often set the pace for which autos are going to be collected at record high purchasing prices, or driving across Europe without a care in the world. These events rule the luxury world, and various generational and cohort groups as well.
The best races mainly take place in Europe, while the top car auctions tend to take
place in North America. Rally races, such as the Gumball 3000, often are international and require the participant to travel across the world. This luxury sector provides the space for car enthusiast and connoisseurs to come together and experience the wonderful world of automobiles. By infusing different styles and types of events into this industry, luxury consumers of all levels are able to join and experience this fantastic world of horsepower and gasoline. Through time period correct races such as the Goodwood Revival in Britain, observers, drivers, and car owners are able to relive the nostalgia of the time. For example, if the race calls for 1960’s Ferraris, the race will only be filled with cars from this time and often, spectators and participants dress the time/part as well.
When attending a race such as the Monaco Grand Prix, often only those who can
afford to resort in Monaco (mainly on yachts) are able to spectate the race. This is known in the industry as the “playground for the rich”. This race tends to be only for those who live in Monaco, resort, or the ultra high networth individuals who enter their private Formula 1 racecars in the Grand Prix. The same can be said for the 24 Hours of Le Mans, however, more spectatorship to public is available at this race. Events such as the Mille Miglia are simply for those who have the most luxurious vintage autos in the world. Very little spectatorship takes place at this often extremely private event.
Ultra High Networth Individuals enjoy participating or spectating these luxury auto events because admission is not often open to the public. When admission is offered, a buy in price or donation (often of 4-5 figures) is required to get through the gates. The wonderful world of these events is filled with luxury consumers from many generational groups including Millennials, Baby Boomers, and few Gen X’s. The differentiation of cohort groups and target markets is often bred at home and grown. This world tends to be widely masculine driven and has little room for change. The interesting factor is that while those who are not high on the luxury consumption pyramid tend to choose newer automobiles to collect, rather than vintage autos with a heftier price tag. Often, fathers begin a collection and leave it to their sons to continue with or sell the collection (often for multi-millions) to pursue their passions.
Attributes of LCE
Luxury car events offer many unique experiences and valued attributes to the few participants. A few of these attributes are listed below: ……………………………………………….. 1. High profit sector for automobile marketplace Luxury car events offer a unique and treasured experience for those who are able to afford the viable price tag. These special and limited affairs contribute to a major monetary gain in the automotive industry. Often times these events are held in non-public settings; when open to public, often times high donation costs are required to enter the event, weeding out the majority of public spectators. ……………………………………………….. 2. Heritage is present in brands and cars; gives an appealing history Heritage is important to our luxury consumers. This availability of historic accuracy, such as the Rolls Royce archival department can give a fully depicted history of every car ever made and every owner of each car. This is an important attribute to our luxury buyers.
3. Multi-generational interest; multiple cohort groups and target markets The beauty of the car industry is that it can offer something for everyone. For collectors, it can begin at a young age, mid-life crisis, or even as a pastime later in life. This is primarily a men’s hobby and sport, however some women break into the good old boys club. An event such as the concours d elegance at pebble beach is often flooding with car connoisseurs of all ages looking to find the next best vintage steal. …………………………………………………………………………………………………… 4 Art form – a presentation of masterpieces that allows reliving of nostalgia of the past These cars are not simply cars; rather they are pieces of art with curvature and craftsmanship. Vintage cars show the art movement and influence of the era, giving drivers and owners the ability to experience the nostalgia of driving a car during this historic period. Based on personal experience, riding in vintage 1960’s rolls royces and shelbys, one feels an immediate feeling of nostalgia, as if the ghost of the time is present in the ride and the car.
Character Profiles
Bobby Axelrod
Bespoke elite luxury
o Prominently Male (Few Females) o Baby Boomer Generation Age of 50+ o Profession: hedgefund/bank management, stock market pro, chief officer, entrepreneur o Real estate holdings of at least $100M o Individual Net worth over $1 Billion o Connoisseur/collector of o Art o Yachts o Automobiles o Completely anonymous, anything at their beckon call o Events of participation: Mainly formula 1 – 24 Hours of le mans, Monaco grand prix,, Mille miglia, & Concours D’Elegance At Pebble Beach o This group includes: o Steven Cohen, Gerald Lopez, Sultan Hassanal Bolkiah
Tom claeren Ultra luxury
o Prominently male (more females than top tier, still few in general) o Baby Boomer, Generation x, & Millennials (Tom is a millennial) Ages of 21-35, 35-45, 50+ o Trust fund children, stock market, investors, entrepreneurs o Real estate holdings of at least $50M o Individual Net Worth of $50M+ o Collectors of o Automobiles o Planes o Art o Somewhat anonymous – some with social media, always showcasing the building of their collections o Events of participation: Monaco Grand Prix, concours d’elegance At Pebble Beach, Goodwood Revival o Other members of this group: o Manny Khoshbin, Robert Ross
Tyson Beckford
Moderate luxury
o Mixture of both male and Female at this level is more common o Mainly Millennials at this level, also baby boomers Ages of 21-35 & 50+ o Business men & women, entrepreneurs, corporate (Private Sector) or government based jobs o Real estate holding of at least $5M-S25M o Individual Net Worth of at least $10M+ o Collectors of o Automobiles o Yachts o Tend to be more famous in the lime light, well known people o Events participated in: Gumball 3000, Concours D’Elegance at pebble beach (Auction) o Other Members of this group: o Kate Moss, DeadMau5, Reggie Bush
Ultimate 6
luxury car events you must partake in
Concours D’elegance At Pebble Beach Pebble beach is the world-renowned stomping grounds for the world’s most famous and fabulous car show, auction, and driving events of the summer. Located in California, pebble beach sets the scene for a perfect summer stop to pick up the vintage lux Bentley or Benz that is rare enough to make an appearance to the auction. Gooding and Company debuted the pebble beach auction in the 1950’s as the first luxury car auction in North America, and supposedly the world. Currently, this auction is known as the most exclusive in the world and only allows serious buyers in to be apart of the auction. The car show and awards are extremely selective to general public, including a black tie and gown dress gown in order to enter into the viewing paddock. Tickets must be purchased, sell out almost immediately upon release, and are upwards of $1,,000 a person for one day. The drive is only available to those who had the chance to enter their auto in the show. Connoisseurs are often invited to debut their cars, and the car show is not an open application to anyone. In order to debut a car at pebble beach, the owner must be personally invited. Gooding and Company have developed the brand by later adding the Scottsdale auction and the Amelia island auction in Florida, both taking place before pebble beach, making pebble beach the final destination for auto collectors.
The first Monaco grand prix took place on the formula 1 circuit in 1950, and later returned on the formula 1 grand prix circuit again in 1955. This track is often thought to be the most luxurious of the circuit, even ranking for drivers above the world championships. Since 1955, the Monaco grand prix has become an annual event for any which wish to join, but only the most luxurious enjoy the event on yacht in the formula one paddock club. The race traditionally takes place at the end of may for 3-4 days in which luxury consumers and ultra high networth individuals arrive on their yacht to get prime viewing of the race in the paddock club. The race consists of 78 laps and runs an average of 3.3 Kilometers. Since the Monaco grand prix has become known as the most luxurious race in formula 1 history, racers distinguish the race as being the top pinnacle of their career for formula 1 racing. Driver Mika Häkkinen, claimed, "Winning Monaco is better than winning the World Championship". In order to buy a ticket to the luxurious formula 1 paddock club, one must pay over $5,500 USD for a singular ticket, which includes private parties, seating, and yacht reservations for the entirety of the race. Gourmet dinners and champagne are served at all times to the guests and luxury sailboats are provided to give ease from travelling on and off the private yachts.
24 hours of le mans One of oldest races of history, the 24 hours of Le Mans, began in 1923 as a race for speed and endurance. Winners of the race had the bragging rights of creating quite possibly the best car of the year, if not decade.. Traditionally this race was the stomping ground for Ferrari to test out new cars and concepts, however, when American Carroll Shelby wanted to join the race, he was addressed with many roadblocks. Europeans did not want to compete against the less superior American stallions, and were threatened by Shelby as he was on a solid winning streak during the 1960s. The race requirements take place after its obvious name of lasting 24 hours straight and stretching out of more than 4,500 Kilometers. This race is often the test of the best automobiles in the world. Only the strong make it, and only the superior survive and have a shot at winning the title. Certain decades are associated with car brand success including Bentleys and Alfa Romeos for the 1930’s, jaguars for the 1950’s, shelbys for the 1960’s, Porsche for 1970’s-1980’s, and Audi taking the lead in the contemporary era (speedhunters).
The Mille Miglia is one of the world’s oldest races beginning through the Brescia automobile club who started this race in 1926. Brescia has a strong passion for racing and has been racing on Italian circuits since the late 1890’s. The mille miglia was another addition to races of the early 1920’s to give another competitive route outside of the Italian grand prix. Since 1927, the race has stayed virtually the same, challenging the most superior vintage automobiles to race a 1,600-kilometer circuit over the course of four days. The first race took place in 1927 with 77 cars at an average speed of 47 mph, which considering the cars of the time was quite fast. This race was successful and has since gained hype as one of the greatest races in history that the Italians have again organized. Today, the race is often filled with time period cars of accepted mille miglia terms. For 2016, the car requirements are a model that competed in the speed races of Mille Miglia between 1927-1957. These models must have stock specifications and be as historically accurate as possible. Cars must also be maintained in near perfect mint condition, as this drive can be disastrous for cars that are not maintained. For may 2016, the cap is at 77 cars with two passengers mainly filled with Bentleys, Alfa Romeos, Buggatis, and Mercedes Benz of all years within the range.
The goodwood revival The goodwood Revival is Britain’s historical period race. The first goodwood race started in 1948 post world war ii to give the British people automobile racing since it had become nearly extinct during the war. The estate for the races took place at an old war aircraft hanger, making up the racing track (Goodwood). Upon fall of 1966, goodwood race closed their race and ended the period of British racing. In September of 1998, goodwood reopened the race for a 50year anniversary to quickly become known as the goodwood revival. The goodwood revival has multiple races over the three- day racing period as well as a car show and fashion show. The races all date for cars of pre 1966, mainly between 1930’s1950’s depending on the race. There is also an auction and off racetrack races that take place over road tracks. This event is held at the private estate of goodwood and is open to public to view, yet only private can enter and drive their cars in the races.
“Gumball is about challenging tradition and taking a non conventional approach to exploring and pushing cultural and creative boundaries.” – Maximillion Cooper
Gumball 3000 is an annual rally that takes place about twice a year both in Europe and the United States. Discovered in 1999 by Maximillion Cooper, Gumball 3000 is about a “driving adventure” with lavish parties, action sports, music concerts and of course spectacle cars. Cooper discovered Gumball 3000 in his hometown of London, and has done it on his own for almost 20 years now. From his first event which was just for fun to now, Gumball 3000 has grown into an international brand and global entertainment company. Young British entrepreneur Cooper was born into a life of creativity being the son of an artist and musician. He studied at the prestigious Central St. Martins College of Arts in London and had peers like Alexander McQueen and Stella McCartney, which caused him to quickly get into the party scene. After school he purseued to become a race car driver and actually had years of racing for privateer McLaren and Porsche. Cooper then had the vision to create a lifestyle brand that combined automobiles, art and pop culture; hence the birth of Gumball 3000. Today Gumball 3000 is one of the most popular race rallies in the World. In order to participate in Gumball, one must be invited. Although you can apply to be part of the rally, you are better off on a who you know basis. Cars come everywhere around the world to participate in the one-week event. For the European tour, cars start in Dublin and pass through major cities such as Manchester, Prague and Budapest to name a few. Each stop draws hundreds of crowds and receives various media coverage. Each stop also typically involves a party and concert typically attended by now only the drivers but celebrities as well. Participates of the tour have been Tony Hawk, Snoop Dogg, Eve, and Tyson Beckford to name a few. Gumball 3000 has received sponsorships from New Era, Shell, Nike and currently has coverage sponsorships with MTV.
Bandwidth of top level products
Status; heritage
Luxury
Values
Culture
Timeless; perfection is demanded
Design Manufacture
Appearance of wealth; experience of spending
Values
Bespoke; craftsmanship; rarity Status recognized by masses
Trend driven; enjoyable; recognizable
Design
Luxurious Look & Feel
Premium Manufacture
High quality; luxury to the masses
Premium Vs. Luxury
Premium Events: Luxury Events: Indy 500 Daytona 500 Good Guys Bull Run Great Race
Concours D’elegance Monaco Grand Prix 24 Hours of Le Mans Goodwood Revival Mille Miglia Gumball 3000
Swot Analysis
Strengths
High Revenue Exclusivity Sponsorships High interest amongst luxury market Heritage/History
Weakness
Limited target Expansion market Building into a Exclusivity brand causes less chance of Expansion into expansion different market segments Accidents Expansion into different areas/regions
Globally Recognized (by Market)
Opportunities
Threats
Car Shows Other Car enthusiasts
Media. Campaigns. Promo.
Anti-Laws of Marketing 1. Forget about ‘positioning’, luxury is not comparative out 4. Keep non enthusiasts 7. Make it difficult for clients to buy 8. Protect clients from non clients, the big from the small The first anti-law of marketing is true for all of the events discussed. Not one of the luxury events presented is similar or the same to another. This adds value as they are unique and can allow different levels of luxury consumers the experiences they enjoy The fourth anti law stresses to keep enthusiasts out. This is a common theme in every event, unless general public is allowed; however they cannot mingle with the luxury guests. The seventh anti law is true for the majority of our events as well – making it difficult to buy. For all the events, participation is on a private known basis, and for the majority of events, admission is hard to purchase. For the Monaco grand prix and Concours d’Elegance, one can easily purchase, yet the price tag is over $5,000 USD per person per day. The eighth anti law is to protect the luxury consumers from the masses at these events. These events are able to stay exclusive due to the high price tag for entrance.
Monaco grand prix 24 hours of le mans mille miglia
Bespoke Elite Luxury
Ultra Luxury Concours d’elegance at pebble beach
Moderate Luxury Gumball 3000 Goodwood Revival
Premium Luxury Indy 500 Daytona 500 good guys bull run usa, great race
Bespoke elite luxury o This tier is the top tier of the pyramid, often not easily penetrable, most are born into this realm of wealth o this is going to be made up of the concentrated billionaires of the world with the finest cars in the world o the events that appeal to this luxury consumer includes: o Monaco Grand Prix, 24 Hours of Le Mans, & Mille Miglia
Ultra Luxury o This tier of the luxury pyramid is still incredibly hard to reach for most – there is a sense of refinement and often collectors are apart of this group o Multimillionaires with impressive collections make up this tier o Events of appeal: o Concours D’elegance & Possibly the bespoke elite events Moderate luxury o This middle tier of the luxury pyramid is filled with those who have wealth or recent accumulation of wealth and want experiences as well o Millionaires and new money belong to this group o Events of interest include: o Gumball 3000 & Goodwood Revival Premium Luxury o This is the bottom tier of the luxury pyramid filled with those who want luxury but do not have the ,monetary gain to achieve higher levels o They go to these events to feel apart of this world without actually being in it o This is the general public so to speak o Events of interest include: o Indy 500, Daytona 500, good guys, bull run USA, and the Great Race
Luxury car events are essential to our luxury consumers on all levels. If they collect cars, they want to be able to show them off and drive them to their heart’s desire. The differences in luxury tier consumers showcases the multiple events that they would attend throughout the year. The luxury automotive world has heritage, history and fascinating stories. While it is a dying breed for most, collecting cars is truly for those who have the wealth to do so.
Resources http://www.pursuitist.in/rolls-‐royce-‐at-‐sea-‐island-‐this-‐is-‐the-‐life/ http://www.goodingco.com/auction/pebble-‐beach-‐2016/ http://www.bustle.com/articles/135922-‐is-‐bobby-‐axe-‐axelrod-‐from-‐billions-‐a-‐ real-‐person-‐the-‐character-‐is-‐a-‐wall-‐street-‐big http://www.therichest.com/rich-‐list/the-‐biggest/the-‐10-‐biggest-‐car-‐collectors-‐in-‐ the-‐world/?view=all http://gumball3000.net/participants/ https://www.formula1.com/content/fom-‐website/en/latest/features/2015/5/the-‐ monaco-‐grand-‐prix-‐-‐-‐did-‐you-‐know-‐.html https://www.monaco-‐grand-‐prix.com/2542-‐monaco-‐f1/#/photos http://www.speedhunters.com/2012/06/this-‐time-‐its-‐personal-‐ford-‐at-‐le-‐mans-‐ 66-‐69/ http://www.24h-‐lemans.com/en/race/historical_2_2_2501.html http://www.1000miglia.eu/2016-‐Edition/Provisional-‐starting-‐list/ http://www.1000miglia.eu/attach/Content/Interna/2291/o/ordinepartenzamm20 16_04_29.pdf http://www.1000miglia.eu/MilleMiglia/The-‐Original-‐Mille-‐Miglia-‐race/The-‐ sporting-‐tradition/ https://www.goodwood.com/flagship-‐events/goodwood-‐revival/ http://www.therichest.com/luxury/auto/get-‐revved-‐up-‐the-‐tell-‐all-‐of-‐recent-‐ luxury-‐car-‐shows/ http://www.askmen.com/fine_living/travel/27c_travel_tips.html http://www.caranddriver.com/features/10-‐events-‐to-‐see-‐before-‐you-‐die-‐ goodwood-‐revival-‐readers-‐choice-‐and-‐more-‐page-‐2 http://knowhow.napaonline.com/americas-‐top-‐10-‐classic-‐car-‐shows-‐and-‐events/ http://www.caranddriver.com/features/10-‐events-‐to-‐see-‐before-‐you-‐die http://www.motorsport.com/general/news/top-‐10-‐most-‐prestigious-‐races-‐in-‐the-‐ world/