McLaren Mangement Merrygo round...

McLaren Mangement Merrygo round...

Author
Discussion

Rich_W

12,548 posts

211 months

Wednesday 23rd April 2014
quotequote all
CraigyMc said:
RenOHH said:
McLaren have very few sponsors this year
2014 Partners/Sponsors/Technology Partnerships

Mercedes
Mobil1
SAP
Pirelli
Johnnie Walker
Santander
Tag Heuer
Hugo Boss
AkzoNobel
Hilton
NortonRoseFulbright
CNI
Gillette
Sikkens(AkzoNobel again)
Akebono
Enkei
GS Yuasa
Repucom
Kenwood
Mazak
NGK
Sparco
Intra Links
Detica

Coming Soon (announced): Honda.

Pretty much all they are missing is a title sponsor. This is obviously no small thing, but as previously discussed its a calculated risk by Ron based on his experience.
Some of those Such as Santader are "Associate partners" AFAIK it's not a traditional sponsorship. There's no Santader stickers on the car so not so much money changing hands, just preferential treatment if McLaren require their services. I believe that means that McLaren's business accounts (and lets be hinest a lot of money goes through the company) will be with Santader for example.

belleair302

6,835 posts

206 months

Wednesday 23rd April 2014
quotequote all
Having spent three years in Partner Management at McLaren and business development the 'Brand' is of utmost importance to the team and the Partners. McLaren does its research very well on who to approach, how to approach them and how to link investors, ie Mobil and Mercedes, SAP and Mercedes, Boss and Tag Heuer, etc. A number of Partners invest in the facility in Woking and not just on the car and the 'menu' is vast when looking at Official Partner, Supplier, Associate etc. McLaren don't advertise, yes they use sponsor agents, but have a large in house division and a full service marketing agency who do graphics, uniforms, trucks, garage and hospitality design, web, twitter, video etc and factory visits.

Ron and the team have been looking closely at who has the money and do they fit....it may sound odd but Coke, American Express, McDonald's (Global) and two hundred of the biggest global titans either don't do F1, are already involved or are not McLaren people. The car isnt performing and this will lower the 'real estate' price but McLaren still need to pay their staff. I am sure their 'Man in Japan' who sold more F1 road cars than anybody is busy at work wooing potential partners but so is the team in the US and also in the Middle East. Finding a board willing to sign over £50 million a year plus a leveraging budget, increasing by 5% per annum and by 10% for a wold championship usually takes 12-18 months hard work.

Not an easy job with Bernie in court, CVC sucking the business dry and issues over races in Russia, China, India and elsewhere.....a messy business. Partners dont have an interest in every nation with a GP, because they are usually already advertising there heavily, however the digital TV coverage and the brand association when winning is very attractive. Sadly the current driver pairing doesn't work for many sponsors and this could be why McLaren have not yet agreed terms with said major backer......all will be revealed either in Monaco, the USA or Japan.

Mashedpotatoes

1,344 posts

147 months

Thursday 24th April 2014
quotequote all
That was a pleasure to read, made a huge difference from the norm, many thanks.

Exige77

6,518 posts

190 months

Thursday 24th April 2014
quotequote all
Mashedpotatoes said:
That was a pleasure to read, made a huge difference from the norm, many thanks.
+1.

Blib

43,796 posts

196 months

Thursday 24th April 2014
quotequote all
belleair302 said:
Sadly the current driver pairing doesn't work for many sponsors and this could be why McLaren have not yet agreed terms with said major backer......all will be revealed either in Monaco, the USA or Japan.
Can I ask what issues sponsors would have with the current driver line up?

greygoose

8,225 posts

194 months

Thursday 24th April 2014
quotequote all
Blib said:
belleair302 said:
Sadly the current driver pairing doesn't work for many sponsors and this could be why McLaren have not yet agreed terms with said major backer......all will be revealed either in Monaco, the USA or Japan.
Can I ask what issues sponsors would have with the current driver line up?
I would guess two blonde north Europeans do not have as much appeal worldwide as a mixture of two drivers from different areas of the world. A Chinese/Asian driver and a Spaniard would probably be the ideal for worldwide marketing.

entropy

5,403 posts

202 months

Thursday 24th April 2014
quotequote all
belleair302 said:
Having spent three years in Partner Management at McLaren and business development the 'Brand' is of utmost importance to the team and the Partners. McLaren does its research very well on who to approach, how to approach them and how to link investors, ie Mobil and Mercedes, SAP and Mercedes, Boss and Tag Heuer, etc. A number of Partners invest in the facility in Woking and not just on the car and the 'menu' is vast when looking at Official Partner, Supplier, Associate etc. McLaren don't advertise, yes they use sponsor agents, but have a large in house division and a full service marketing agency who do graphics, uniforms, trucks, garage and hospitality design, web, twitter, video etc and factory visits.

Ron and the team have been looking closely at who has the money and do they fit....it may sound odd but Coke, American Express, McDonald's (Global) and two hundred of the biggest global titans either don't do F1, are already involved or are not McLaren people. The car isnt performing and this will lower the 'real estate' price but McLaren still need to pay their staff. I am sure their 'Man in Japan' who sold more F1 road cars than anybody is busy at work wooing potential partners but so is the team in the US and also in the Middle East. Finding a board willing to sign over £50 million a year plus a leveraging budget, increasing by 5% per annum and by 10% for a wold championship usually takes 12-18 months hard work.

Not an easy job with Bernie in court, CVC sucking the business dry and issues over races in Russia, China, India and elsewhere.....a messy business. Partners dont have an interest in every nation with a GP, because they are usually already advertising there heavily, however the digital TV coverage and the brand association when winning is very attractive. Sadly the current driver pairing doesn't work for many sponsors and this could be why McLaren have not yet agreed terms with said major backer......all will be revealed either in Monaco, the USA or Japan.
LOL! Reminds of an episode of The Team where Ron said he doesn't deal with sponsors as McLaren isn't a charity! He wants investors and partners! which is one way of looking at income. Typical Ron. A spade isn't a spade, it's a....

Interesting on the driver front. It was reported not long ago that Button was the most marketable driver in the UK but neither he nor Hamilton made it into the global top 5. http://www.jamesallenonf1.com/2014/03/alonso-is-f1... Probably changed now.

CraigyMc

16,333 posts

235 months

Thursday 24th April 2014
quotequote all
entropy said:
Interesting on the driver front. It was reported not long ago that Button was the most marketable driver in the UK but neither he nor Hamilton made it into the global top 5. http://www.jamesallenonf1.com/2014/03/alonso-is-f1... Probably changed now.
The company that produced that report is called Repucom.
If you look at the list of Mclaren sponsors/partners etc, you'll find them on there.

belleair302

6,835 posts

206 months

Thursday 24th April 2014
quotequote all
Blib said:
Can I ask what issues sponsors would have with the current driver line up?
Certainly.....Jenson Button is a charming fellow but is possibly at the end of his contract. A great driver and ambassador but not a racer which is what McLaren want. Yes his girlfriend is partly Japanese with her own career but I am not sure his international profile is enough in the markets that a single principal partner or investor needs......USA, South America or Asia....not Japan.

Kevin Magnusson is a racer but has no international profile and is still very young. In 2016 I feel he will have more experience, have matured more when infront of a crowd and will have greater confidence hopefully having won at this level. You must remember McLaren work their drivers out of the car harder than any other team and these guys are brand ambassadors doing launches, appearances and press events every week race or no race somewhere. Alonso has both attributes, Weber had one, Coulthard likewise.....not so Vettel, nor Kimi. It is hard to pick drivers who deliver everywhere but in the media driven world of F1 where partners want as much off track as they do on, sometimes more a character filled driver with an edge is good. Perez in three years time could come good, as Latin markets are huge for F1 investors. Ron wants to win on track first, which is vital but to attract a company with upwards of £50 million a year to invest in the car, however they may be looking at teams with something slightly different from a sales and media angle not a racing angle. It is a very difficult choice and Grosjean could be somebody to watch for next year as could Ricciardo, Nico Rosberg has huge appeal for an international partner and we shall see what happens. Am happy to discuss and leave the floor open for further opinions....

davidd

6,443 posts

283 months

Thursday 24th April 2014
quotequote all
This is very interesting reading (and makes perfect sense).

So the logical choice must be Lewis.

Get a championship or two at Merc whilst McLaren and Honda sort themselves out then comes back to emulate his hero (Senna) in a McLaren Honda..

He has the driver and the profile qualities..

D


belleair302 said:
Certainly.....Jenson Button is a charming fellow but is possibly at the end of his contract. A great driver and ambassador but not a racer which is what McLaren want. Yes his girlfriend is partly Japanese with her own career but I am not sure his international profile is enough in the markets that a single principal partner or investor needs......USA, South America or Asia....not Japan.

Kevin Magnusson is a racer but has no international profile and is still very young. In 2016 I feel he will have more experience, have matured more when infront of a crowd and will have greater confidence hopefully having won at this level. You must remember McLaren work their drivers out of the car harder than any other team and these guys are brand ambassadors doing launches, appearances and press events every week race or no race somewhere. Alonso has both attributes, Weber had one, Coulthard likewise.....not so Vettel, nor Kimi. It is hard to pick drivers who deliver everywhere but in the media driven world of F1 where partners want as much off track as they do on, sometimes more a character filled driver with an edge is good. Perez in three years time could come good, as Latin markets are huge for F1 investors. Ron wants to win on track first, which is vital but to attract a company with upwards of £50 million a year to invest in the car, however they may be looking at teams with something slightly different from a sales and media angle not a racing angle. It is a very difficult choice and Grosjean could be somebody to watch for next year as could Ricciardo, Nico Rosberg has huge appeal for an international partner and we shall see what happens. Am happy to discuss and leave the floor open for further opinions....

longblackcoat

5,047 posts

182 months

Thursday 24th April 2014
quotequote all
belleair302 said:
Sadly the current driver pairing doesn't work for many sponsors and this could be why McLaren have not yet agreed terms with said major backer......all will be revealed either in Monaco, the USA or Japan.
Thanks for your post - genuinely informative.

Edit - I asked a question already answered. D'oh!

Can't see Lewis back there. He's being paid the same at Mercedes as he was before, gets to keep his trophies, and has far fewer promotional commitments. Oh, and there's the small matter of having a car and team that can win - not so the case at McLaren, sad to say.

Edited by longblackcoat on Thursday 24th April 18:35

Mashedpotatoes

1,344 posts

147 months

Thursday 24th April 2014
quotequote all
It's interesting to see that even the best drivers in F1 are considered by teams on how marketable they are.

In a way meening they have to pay for there seat....

10 Pence Short

32,880 posts

216 months

Thursday 24th April 2014
quotequote all
In response to an earlier post regards Hamilton; can anyone imagine him not wanting to drive a McLaren Honda, assuming it could be competitive?

CraigyMc

16,333 posts

235 months

Thursday 24th April 2014
quotequote all
10 Pence Short said:
In response to an earlier post regards Hamilton; can anyone imagine him not wanting to drive a McLaren Honda, assuming it could be competitive?
If he went back to his earlier helmet design in a white and red McLaren Honda it'd bring a tear to many eyes... and it'd have to be successful.

entropy

5,403 posts

202 months

Thursday 24th April 2014
quotequote all
10 Pence Short said:
In response to an earlier post regards Hamilton; can anyone imagine him not wanting to drive a McLaren Honda, assuming it could be competitive?
Only if Merc going downhill, ditched Brackley; or Ron offering lots of money and not cramp Lewis's style, Paddy Lowe or Brawn or some other big chief tech guru joins McLaren.

tvrforever

3,182 posts

264 months

Thursday 24th April 2014
quotequote all
entropy said:
Just read that Ron The Don is trying to seal the deal on Huawei as title sponsor.
Oh dear - things must be very desperate in Woking frown

CraigyMc

16,333 posts

235 months

Thursday 24th April 2014
quotequote all
tvrforever said:
entropy said:
Just read that Ron The Don is trying to seal the deal on Huawei as title sponsor.
Oh dear - things must be very desperate in Woking frown
Why desperate?

tvrforever

3,182 posts

264 months

Thursday 24th April 2014
quotequote all
CraigyMc said:
tvrforever said:
entropy said:
Just read that Ron The Don is trying to seal the deal on Huawei as title sponsor.
Oh dear - things must be very desperate in Woking frown
Why desperate?
They are well financed company, lots of resources, connections and very considerable aspirations (some would say beyond their current experience & capabilities but...) - however let's just say they've a lot to work on, particularly in Western business, marketing, engagement, commitment, culture and relationships...

CraigyMc

16,333 posts

235 months

Thursday 24th April 2014
quotequote all
tvrforever said:
CraigyMc said:
tvrforever said:
entropy said:
Just read that Ron The Don is trying to seal the deal on Huawei as title sponsor.
Oh dear - things must be very desperate in Woking frown
Why desperate?
They are well financed company, lots of resources, connections and very considerable aspirations (some would say beyond their current experience & capabilities but...) - however let's just say they've a lot to work on, particularly in Western business, marketing, engagement, commitment, culture and relationships...
I'm aware of them from a commercial relationship point of view (I work in IT, I've come across them in a fair number of comms contracts as a supplier). If they have an image problem, perhaps that plays into McLarens hand a little (spend some money on it).

I think their main issue is a total lack of brand recognition outside of people who know all the players. As for the "way of doing business", in recent years pretty much all the vendors have had various issues, even traditionally decent folk like Cisco and AlcatelLucent. I've not done enough with Huawei recently to know if they are significantly different.


Crafty_

13,248 posts

199 months

Thursday 24th April 2014
quotequote all
entropy said:
Only if Merc going downhill, ditched Brackley; or Ron offering lots of money and not cramp Lewis's style, Paddy Lowe or Brawn or some other big chief tech guru joins McLaren.
I don't think Lewis is motivated by money - IIRC McLaren ended up offering him more than he signed for at Merc.

Prodromou is still slated to join McLaren, although it doesn't look like Fallows will.

I think the biggest issue at McLaren on the engineering side is that their working practices/plans/methods aren't working - over the past few years they've started off with a car behind the curve and have been unable to move it forwards significantly. The only time this hasn't happened was 2012, when they started with a half decent car but quickly fell behind everyone else.
This year they promised an upgrade worth half a second - they slipped back against their rivals instead of moving forwards... how did that happen ?
Right now they are the third best Mercedes team.

They have a tendency to make big changes year to year so keep starting from scratch - most other teams have a degree of iteration between years. E.g. L shaped sidepods, their funky aero driveshafts and so on, seems the ideas never stay around long enough to be perfected.

Look at Merc - they spent 4 years building up their tech group and whilst everyone took the piss for them having Bell, Costa, Brawn and Willis I reckon that they've been setting in place working practices and methods of working so that the entire engineering team work cohesively and can properly quantify their work.. Job is done (for now), Brawn tiddled off and Bell is on his way too.

I think this is what McLaren need to do - and probably are, they've been recruiting quite a bit recently. I think that the pressure is on a bit as Honda will expect results within the next two years..