Case Study

Read the following case carefully and answer all questions that follow

Formula One

Formula One racing is one of the worlds most recognized brands. Ask many young boys around the world what they would like to be when they grow up, and a Formula One racing driver is high on the list. Crowds of half a million attending race days are accompanied by millions watching on television around the world. Teams like Ferrari, McLaren and Jordan are household names as are the drivers like Michael Schumacher, and David Coulthard. Drivers come from all nationalities. The cost of running Formula one team is such that team owners seek sponsorship from many sources. Every square centimeter of the drivers overall is littered with advertising, cashing in on worldwide audience and publicity Formula One annual calendar is global and takes in 18 (2004) races covering Asia, Middle East, Europe, North and South America. Merchandising is through specialist F1 outlets worldwide, selling replica model cars, baseball caps, jackets and other memorabilia, all custom made and packaged with F1 logo. The technological innovations of the track are translated into innovations in the ordinary family car. In the early days, the F1 television rights business was risky and not very profitable

1. Identify the attitudes that made Formula One into global brand. (10 marks)

2. Has Formula One adopted a standardized or adaptation strategy? Give reasons for your answer. (10Marks)

3. Discuss the product globalization strategy of Formula One and Lessons that can be learned by global marketers from Formula. (20 marks)