Monday, October 5, 2009

IndyCar: APEX Brasil Flexes its Fuel (and Moraes)


APEX Brasil is getting pretty generous with the free tickets to the IndyCar finale at Homestead-Miami Speedway this weekend. I already alerted readers here to the ticket giveaway in exchange for sampling free Brazilian foods at South Florida supermarkets.

Now, we learn that the first 50 customers that fill-up with E85 at Midway U-Gas in Miami will each receive two free tickets to the penultimate IndyCar race of 2009.

Is it possible that the three-way shootout among Dixon, Franchitti and Briscoe has not brought a crush of race fans to the ticket windows at Homestead-Miami? Terry Angstadt and Company can't sell these guys, so they've enlisted APEX Brasil to buy tickets and then give them away.

Strange Incentives
The E85 customers will get the fuel for $0.85 per gallon, courtesy of the Brazilian Sugarcane Industry Association, no doubt a member of APEX Brasil. That's a great deal even if the lucky fuel buyers don't use the tickets.

Cheap fuel is a sure crowd pleaser at any location in the United States. IndyCar driver and team financier Mario Moraes is not. Therefore, having Moraes sign autographs for those who seek cheap fill-ups is a shrewd move. The IRL will be able to tout the hundreds, perhaps thousands, who showed up to get Moraes's autograph.

Of course, few if any of those folks will be in the stands this weekend to watch Mario drive his car. But, thanks to APEX Brasil's ticket purchases, that's not a problem. Everybody gets paid, anyway!

This is how you prop up* a product that consumers have rejected. Why are the Indianapolis Motor Speedway Board and IRL management allowing this to happen to the series that races at the Indianapolis 500?

Roggespierre

*Originally, this line read, "This is how you prop up a lie, a product that...." BC argued that my choice of words was inappropriate. Reading it again, I agree. IndyCar racing is not a lie. It is a product that has been rejected. The latter wording suffices and is not needlessly inflammatory. Thanks to BC for rightly suggesting that I rethink my original language.

35 comments:

  1. Greetings RP,

    My comment is not intended as an insult, but an observation. You are not exercising enough objectivity to be an effective problem solver. You are selecting a tangent and presenting supporting arguments to justify your conclusion. If that works for you, it's all good.

    That's a Kymco scooter Mario is sitting on. I only know that because I stumbled across the pess release written when the sponsor came on board. I watched at least six races on TV, have been to the official IndyCar site hundreds of times, and read every blogger's blogging blog I could find...and had never heard of Kymco.

    That's how well IndyCar works to insure their investors are getting ROI. There isn't even a tiny Kymco logo in the ticket package I just got with all the other tiny logos that I can hardly read. Must be Mr. Gruning worked out a B2B deal with Safety Kleen, and helped them sell like six scooters. I'd like to be wrong.

    I'd also like to see Mario on a new Kymco scooter next year. But I wouldn't be jumping to that conclusion.

    If other Series sponsors are utilizing their position to gain market share from the exposure, they are activating their sponsorship. That exposure generates ROI, and presents the side benefit of promoting the race and the Series. The tickets have effectively been bought and paid for by Apex.

    Nothing looks worse on a live television broadcast than empty seats. Honda should have bussed people into Motegi for free, rather than suffer the indignation of displaying their failure to effectively promote their own event.

    I completely understand your view that the lack of previous promotion, and the shortcomings of the product, results in dismal ticket sales and zero media attention. Any steps taken, such as the ones you listed, are steps in the right direction.
    ____________________________________________
    Stay on track
    Andrew Bernstein

    ReplyDelete
  2. My comment is not intended as an insult, but an observation. You are not exercising enough objectivity to be an effective problem solver. You are selecting a tangent and presenting supporting arguments to justify your conclusion. If that works for you, it's all good.

    As observation, I find it interesting that your critique Monsieur's without actually indicating what it is that he said that was wrong. I mean, I guess ApexBrazil is getting lots of mentions on TV and doing some promotional work for the series. Question: How does this make Indycar racing more popular with any fanbase? Reply hazy, try again.

    ReplyDelete
  3. Greetings again Mr.Stallone,

    Perhaps the general tone of RoggesPierre's examples created a hazy impression in my mind that there was a measure of duplicity being undertaken by the Series and the sponsors. I'd gladly reevaluate my position if that impression is false.

    "This is how you prop up a lie..."

    I'm thinkin' that sort of rhetoric is not reel hazy.

    The Cleveland Indians could sell me a $10.00 bleacher seat, and hand me a Grady Sizemore bobblehead doll on the way in. Holy Cow, that's worth $8.95 at the gift shop! I'm making out like a bandit!

    And as I head back to my $10.00 parking spot after the game, filled with two hotdogs ($7.00)and two beers ($16.00), I think about how cool the stadium was, or how good the game was, or how hot the chicks behind the dugout were.

    "Wonder when the next homestand is", I say to Grady, as he bobbles on my dashboard. I'm headed home for now, after a quick stop at Panini's for a slice of pizza. I never heard of Panini's before, but they sponsored that bitchin' fireworks show that popped off right after the last out. They sponsor the "tower cam" shots on the telecasts too...yeah, that's where I first heard the name.

    In some circles, this could be construed as an evil conspiracy to duisrupt my gastrointestinal pacification. Perhaps the insidious gassing of a few of my closest friends would soon follow. Curses to Shapiro, that devil of a General Manager.

    In Cleveland, they'd read this and hand me a freakin' Sports Marketing Degree. It would look great on the shelf next to Grady.

    Damn, I love going to a ball game. Even when the Indians suck.

    I'm sorry, I got a little hazy there. What were we talking about? And what was your name?
    __________________________________________
    Stay on track
    Andrew Bernstein

    ReplyDelete
  4. Andrew wrote;
    "You are selecting a tangent and presenting supporting arguments to justify your conclusion."

    Andrew,

    Here's the argument the way I see it:

    (M) Poor ratings and attendance are strong indicators of market rejection.
    (m) IndyCar has poor ratings and attendance.
    (c) Therefore, IndyCar has strong indicators of market rejection.

    The argument's valid. So if premises are true, the conclusion is true.

    The powers that be try to claim that the major premise is false: the promoters are to blame for poor attendance and the broadcasters are to blame for poor ratings.

    To challenge the truth of the minor premise we're told corporate give-away ticket are synonymous with fans and the ratings really aren't declining relative to market reach.

    I'm of the belief the premises are true and ICS' management use faulty logic and sophistry to avoid the conclusion: the market has rejected the product.


    Roggespierre can defend his views as to his objectivity, but I think his foundational argument is sound. Of course some inference is necessary, however I'm okay in defending the 'truth' of the above argument if you'd like to pursue it.

    -John

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  5. Hi Andy,

    This stuff might seem tangential, but it is the cornerstone of the plan to finance the series.

    And it's fool's gold.

    Corporate ticket giveaways can be either good or bad. When the product is demand, then giveaways can be good. If this event was sold out and a company was giving away tickets, then that company would be inclined to aggressively activate the program for significant promotional purposes. In this case, the league would be an ancillary beneficiary of the activation.

    Giving away tickets that are not in demand will at best have low impact and at worst have negative impact. It devalues the product because those who might have paid for tickets are incentivized to get freebies instead.

    These giveaways, particularly the grocery store and E85 permutations, are bad. The "winners" already got something of value, namely either free food or cheap fuel. The tickets are add-ons. The recipients come out ahead whether they use them or not.

    The Macy's giveaway is better because people have to buy $20 worth of IZOD clothes in order to qualify to win tickets. At least there is reason to think that the winners might attend the race; they had to spend some money to earn the consideration. But then you're back to the cannibalization problem. If those customers would have bought tickets anyway, then you have deprived yourself and/or your partner of additional revenue.

    Very few IndyCar sponsors - and almost no team sponsors - activate their sponsorships because it would be a huge waste of money. Unless you get something in another market or land a big direct sale, there is no way to generate competitive ROI in IndyCar racing. There are too many other sports and entertainment options that cost less and produce more.

    Look at McDonald's. Has it activated its sponsorship with Newman Haas Lanigan Racing? Of course it hasn't. Why would it?

    McDonald's needed to add salads to its menu in very short order because it was absorbing attacks for contributing to obesity. It had lettuce and other commodities in its supply chain, but it lacked salad dressing. Enter Newman's Own, a popular brand that already had a good reputation. Paul Newman demanded a portion of Newman's Own's compensation from McDonald's go to his racing team.

    So, why isn't McDonald's activating its IndyCar sponsorship? For the same reason that it did not activate its ChampCar sponsorship - it does not care about sponsoring a racing team. McDonald's wanted and got Newman's Own products. That the money was directed to a racing team was and is irrelevant to McDonald's. It is not going to spend a dime to activate its IndyCar participation because its army of marketing MBAs knows that IndyCar is a very poor advertising option.

    There was one exception to my McDonald's story. It did sponsor the Pit Stop Competition at Indy in 2008. The price was cheap, about $100,000. McDonald's got a nice press conference at which Paul Newman and Tony George shook hands, smiled, and buried the hatchet, so to speak.

    Then, Paul Newman died. This year the Pit Stop Competition was not sponsored. When McDonald's is no longer contractually obligated to fund Newman Haas Lanigan, it will leave.

    Companies and consumers want what they want. If you give them your product as an add-on for something else that they want, then you further devalue your product.

    If I want salad dressing, then I will buy salad dressing. If my check is sent to the racing team's account, then that's fine. I don't care. Just give me the freaking salad dressing.

    If I want to try Brazilian food or discounted fuel, then that's what I want. If I get race tickets, too, so what? Just give me the food and the cheap fuel.

    And don't be surprised when attendance and TV ratings don't improve.

    ReplyDelete
  6. The problems as I see with comparing the Indians and the IRL are these:

    The Cleveland Indians could sell me a $10.00 bleacher seat, and hand me a Grady Sizemore bobblehead doll on the way in. Holy Cow, that's worth $8.95 at the gift shop! I'm making out like a bandit!

    And as someone who works in promotion, I'm sure you've noticed that more often than not, these promotions are limited to the first XXXX in the door. They may help move seats that otherwise wouldn't be moved on day games on Wednesdays in June, but aren't as often employed on weekends, Friday night games, playoffs, etc. And these are not giveaways of seats. You have to pay for the seat. In return, you're given a free toy/souvenir that is cheap to produce. Bobbleheads are an excellent example of this.

    In the case of Homestead and the IRL, you have the final race of the season being home to mass ticket giveaways. We're talking about giving away the gate entirely, or what boxing/wrestling people refer to "papering". Historically, papering has never created a fanbase. Fans who are papered in rarely go buying in the future and instead show up hoping to get in for free. This is mirrored in the IRL and CART.

    And as I head back to my $10.00 parking spot after the game, filled with two hotdogs ($7.00)and two beers ($16.00), I think about how cool the stadium was, or how good the game was, or how hot the chicks behind the dugout were.

    Which begs the question: How different is the deal your average baseball team has with its municipality when it comes to things like concessions and parking versus what the IRL has with its tracks after the sanctioning fee is paid? I'm not even getting into the fact that baseball/basketball/etc have far more "events" per team than the IRL for home crowds.

    I don't see what Roggespierre is saying to be untrue. Its demonstrably correct. What does anyone gain from denial?

    ReplyDelete
  7. Andy,

    You bought the tickets to the game, right? There are good giveaways and bad giveaways.

    If the IRL were to give away bobbleheads of Dixon, Franchitti and Briscoe at Homestead-Miami, then I would be all for it. That would be a way of rewarding those who purchased tickets.

    Giving away the tickets - the core product - is a bad giveaway. We know that people want free food and cheap fuel. Free tickets are add-ons that are unlikely to be used.

    The problem is that consumers don't want to buy the tickets. They also don't want to watch on television. These facts really are not in dispute.

    Best Regards,

    Roggespierre

    ReplyDelete
  8. With all due respects gentlemen, wouldn't a bottle of Pepto-Bismal be easier for both senarios? It appears all of this is giving people a lot of gas !! ( only kidding guys!!)

    ReplyDelete
  9. Oldwrench,

    Your point is well taken. I just re-read my own posts. That's a heckuva lot of words.

    Best Regards,

    Roggespierre

    ReplyDelete
  10. Ok, since I got that out of the way, Now here is one that fits to Roggespierre's point about product value. The World Champion Philadelphia Philles major baseball team just recorded its 79 sellout crowd at its new stadium. The overall fan attendance for the year was over 3.6 million. Simply put..Give the consumer what they want and they will come. I had never seen such turnout for the Philles like I had this year. And they are on their way to selling out next year as well. Hot dog night, and all the other offers only enhanced the customer experience, but the real product the fans wanted and got was a World Championship. Tickets for the playoffs are gone! People are hoping for a repeat, but are just so happy that they got a second year of an outstanding product. This only supports the Roggespierre theory...give the people what the want and they will come. The IRL needs to listen to what "WE" want and not the subsidizers of Indycar if the want to return to profitability.

    ReplyDelete
  11. Oldwrench,

    Well said, and I know what you mean.

    Mrs. Roggespierre and I used to go to Indianapolis Colts games back in the 90s when we still lived there. The team was horrible. We lived downtown, walked to the game, and bought tickets from scalpers - it's legal in Indiana - for less than 50% of face value. We saw some decent games really cheap.

    Needless to say, that all changed when Mr. Manning came to town.

    It is more difficult when you're dealing with sports like racing. When the city shares its name with the team, then all it really takes is winning.

    Incidentally, there is a rumor out there that Andrew himself has free tickets to the Homestead-Miami race.

    Andrew?

    All in good fun - good for you if you got freebies. I would hate to see you pay when so many others didn't have to.

    Best Regards,

    Roggespierre

    ReplyDelete
  12. “This is how you prop up a lie”

    Roggespierre: I’ve been reading this blog and comments for a couple of weeks now, and I can see clearly that your intentions are, at the core, constructive. I also see that you have created an environment that fosters the best internet discussion out there addressing the ills of the IRL.

    HOWEVER, I think sometimes your language gets a bit over-inflammatory. Now, from reading the bulk of your posts I understand that you are really trying to hammer through the many manifestations of the main point – i.e. the defective economics of the whole situation.

    But if I were a big Indy 500 fan with relevant skills or perspective (much like the commenters you’ve already attracted) and I happened upon this post first, I might be tempted to use your tone and a line like “this is how you prop up a lie” to justify dismissing your blog as negative and overly slanted.

    This is all to say that I think your argument in this post and elsewhere is so strong and compelling on its own that it isn’t much in need of bolstering by excessively urgent language.

    Anyway, that’s my only beef. Keep digging, RP and others. Strong minds that seek understanding above the winning argument…something positive will surely come of all this.

    ReplyDelete
  13. RP,

    You're right. Thank you for setting me straight. My primary foible is that I get a bit emotional sometimes when "hammering". I'll change the wording, thanks to your suggestion.

    I really do appreciate this. I can't very well help the IRL find an audience if I don't do a good job attracting one here.

    Appreciatively,

    Roggespierre

    ReplyDelete
  14. BC,

    Don't know why I wrote "RP". It's getting late, I suppose. Anyway, I changed the wording and provided a note of explanation.

    I really do appreciate your sage advice.

    Glad to Think! along with You,

    Roggespierre

    ReplyDelete
  15. Greetings RoggesPierre,

    Apparently I have missed alot during the time I have been drafting a rebuttal to you and your supporters.

    Most notably, I see you have rescinded the objectionable language that prompted my response to the original article:

    Monday, October 5, 2009
    IndyCar: APEX Brasil Flexes its Fuel (and Moraes)

    After once having to validate my objections to another anonymous respondant writing in your defense, I now see that you have credited yet a third anonymous party with pointing out your error. No worries, the public record is clear.

    Not to be ignored entirely as the subject of your responses after 8:56 PM, I see that you later interjected, in a letter to yet another anonymous author, a seemingly unrelated point about my business. To wit:

    I publicly responded to an offer of two tickets and hospitality passes, made by a generous individual on a publc message board. So there is no confusion, the link below will direct any interested party to the entirety of that public correspondence:

    http://www.trackforum.com/forums/showthread.php?t=129044&highlight=Patryck

    Regardless of the value of the tickets, the opportunity for access to IRL personnel afforded by the passes serves as motivation for my 38 hours of round trip driving to and from the event.

    Through previous statements, also in the public record, I have revealed to any interested party that I am actively seeking a position within the IndyCar Series. Short of that goal, I am grateful for the anticipated opportunity to meet Series officials, and to hopefully add my contributions to their understanding of public sentiment. I'm sure it will be comforting for you to hope they did not read yours.

    No worries, the discussions here will not effect a diminution of my enjoyment of all the events to come at Homestead. Party on, Rogge.

    Once properly parsed to fit within the confines of your character limit, my rather lengthy rebuttal will follow in several contiguous posts. All parsed entries, and the sum of the text, will be clearly marked as copyrighted material.
    ______________________________________________
    Chopped from the high side and put off track and into the tullies,
    Andrew Bernstein
    __________________________________________
    Stay on track
    Andrew Bernstein

    ReplyDelete
  16. (c)Andrew Bernstein, October 6, 2009
    aka JagtechOhio
    Stay on track

    This copyrighted submission is the sole property of Andrew Bernstein. Any republication of this content without express written consent in any media, excluding the original electronic address of:

    "http://theindyidea.blogspot.com/2009/10/off-brand-gas-station-moraes-offer-100.html?showComment=1254813916248#c2468277828710449652"is strictly prohibited. Excluded from this copyright is the excerpted statement of (?), pseudonym oldwrench. Also excluded from this copyright is the following unattributed excerpt:

    "(M) Poor ratings and attendance are strong indicators of market rejection.
    (m) IndyCar has poor ratings and attendance.
    (c) Therefore, IndyCar has strong indicators of market rejection."

    Play ball.
    _____________________________________________

    This excerpt was posted at the time of my draft, and effectively serves as a preamble to my introductory sentence:

    oldwrench said...
    "With all due respects gentlemen, wouldn't a bottle of Pepto-Bismal be easier for both senarios? It appears all of this is giving people a lot of gas !! ( only kidding guys!!)"

    October 5, 2009 9:01 PM
    ____________________________________________

    Andrew Bernstein says:

    That's quite a belly full indeed. I have received the collective arguments of three presumed experts: Messers RP (X), John (X), and VB (?), with specific points raised in five new posts. Here is my solitary rebuttal, segmented into chapters to accomodate post length limitations.

    Good Grounds for Marketing, Chapter One

    There was a scene in "Gettysburg", where the Union Generals conferenced to decide whether the time and the place of impending confrontation was worth the investment. "This is good ground", was the phrase each General repeated as a consensus had been reached.

    Well guys, this is your ground. I'll stand and debate for a piece with Messers Angstadt, Gruning, Barnhart, Cotman, and any other Generals who will permit me access to their quarters. They can tell me what is in their minds, or attempt to dissuade me with postures that I suspect may be misleading. At least I'll know who's doing the talking. I've even learned how to spell their names. Their ground is where my view is focused.

    To whomever it is I am addressing that supports these postulations:

    "(M) Poor ratings and attendance are strong indicators of market rejection.
    (m) IndyCar has poor ratings and attendance.
    (c) Therefore, IndyCar has strong indicators of market rejection."

    To you sir(s), I'd say you don't have that "Four P's of Marketing" thing figured out. It's a pretty useful touchstone RP(X), thank you for teaching the lesson. All of the premises were common knowledge to me, but it's nice to demonstrate the familiar lexicon when speaking with foot soldiers on their own turf.

    "Market rejection" presumes previous "market exposure". Nascar fans who now opt out of the Kansas and Chicago ticket plans are demonstrating "market rejection". Three million other people in Chicago don't know what the IndyCar Series is. That is a lack of market Penetration. Hey look, I just added my own "P5" to the list.

    One million viewers who channel surf right past an IndyCar race are demonstrating "market rejection". Twenty million people who have no reason to surf past channel #xxxx don't know that the IndyCar Series is on. That is a lack of market Penetration (P5).

    If the race is locked on a "pay cable" service that they don't buy, we can call that a problem with Marketing Axiom Number Two: "Price". Come to think of it, "Place" (Axiom Number Three) looks like another "P" in that puddle. Can't afford it, can't find it, can't see it. Sometimes, you can't even find it if you can afford it. That's not the kind of penetration I would appreciate.

    (Continued in Chapter Two to follow)

    ReplyDelete
  17. (c)Andrew Bernstein, October 6, 2009
    aka JagtechOhio
    Stay on track

    This copyrighted submission is the sole property of Andrew Bernstein. Any republication of this content without express written consent in any media, excluding the original electronic address of:

    "http://theindyidea.blogspot.com/2009/10/off-brand-gas-station-moraes-offer-100.html?showComment=1254817149211#c4073368777180652257"
    is strictly prohibited.
    Play ball.

    Good Grounds for Marketing, Chapter Two


    If anyone in the Indy Racing League is foolish enough to criticize the broadcast television arrangement that they themselves negotiated, they should be busted to the rank of buck private. They made a bet, without considering that they couldn't afford to lose it. We will see where the chips fall. I reject the decision, and the stagnation it has created. Nobody will much care what I think.

    "Product". Axiom Number One. Not good enough for a significant percentage OF THOSE WHO HAVE SEEN IT. Good enough for others, and it will suit the palettes of more who have not yet sampled the goods. Replace it with Product(1) more suited to the competitive market? Sure, right after Santa (C) brings the engines, and the Easter Bunny (!) arrives with the chassis. Or a bunch of old-schoolers slaps themselves a bunch of rum-runners together. Wait, those are already in the market (sans culottes!). So are Formula Atlantic cars, and Dr. Palmer's little Hot Wheels (tm).

    Looks like improving the first "P" is the best place to start. Do the egos of the stakeholders permit such objectivity to scrutinize their product? I don't know, at times they seem to be off on a tangent of their own.

    So I start with Product concepts to augment the qualities of the only goods on the shelf. That seems to add another "P" to the equation, "Problem". My degree is not from West Point, or Cal Poly, or M.I.T. My perspective comes from one year of technical training, four years in racing, and another 27 years of working on sophisticated street cars. My input will likely receive a dismissive response, no matter how eleoquently I can express my deductions, and now matter how much validity they demonstrate. My "hard knocks" degrees are on the shelf with a bobble head baseball player.

    The "Product" is good enough to sell. The Product can be improved to increase market ACCEPTANCE.

    "Price". Homestead's website lists SEATING for 65,000 attendees. I don't care if there are viewing mounds or additional "corporal" admission tickets sold, or comped. Let's stick with the published available marketplace.

    The lowest ticket Price I have seen ADVERTISED is $30.00. Allowing for errors on the safe side, I will assume those are grandstand tickets. Not a bad "Price".

    With apologies to the General Staff, there is no way that they can enlist that many recruits. A large block has already been sold, included as a portion of the sponsorship negotiations with Apex Brazil. For 2009, this is their "home" race. Bang the drum and play the fife boys, let's fire up the troops now that you're here. For the historians, they are the Zouaves. Welcome!

    (Continued in Chapter Three to Follow)

    ReplyDelete
  18. (c)Andrew Bernstein, October 6, 2009
    aka JagtechOhio
    Stay on track

    This copyrighted submission is the sole property of Andrew Bernstein. Any republication of this content without express written consent in any media, excluding the original electronic address of:

    http://theindyidea.blogspot.com/2009/10/off-brand-gas-station-moraes-offer-100.html?showComment=1254818709633#c1301086285825501106
    is strictly prohibited.
    Play ball.

    Good Grounds for Marketing, Chapter Three

    (By the way, did you read the copy I wrote yesterday for a new Izod commercial featuring A.J.?)

    "Uncle Indy Wants You" might get some more bodies in the fray, and the recruitment drive seems to have kicked in rather noticably of late. As for me, this unwashed foot soldier can only dream that his correspondance to headquarters has been read...nah, best chew another biscuit and wait for battle. And anticipate that "Promotion" comes from my superiors.

    Not many Junior Officers have helped to swell the ranks. Few people know their names, or respect the uniform enough to surpass their own ambivalence. If only we could show them the gleaming rows of artillery....even one weapon of the battle, displayed in their town square...That's "Place", and "Promotion" in the proper lexicon. The Lieutenants stand proudly in full dress, and a few citizens will follow them to the field. The rest twitter amongst themselves of the news. Something big is going to happen here.

    Sadly, it seems the Generals have flat run out of "P". They can fight the good fight, and hope for the best. They can weather the jeers of opposing forces when the impending confrontation draws near. Listen to Versus bitch about the holes in the ranks. Watch the old rum-runners point and laugh at the size of their adversaries. Even them culottes start to look a little more like battle dress on the other side of the picket line.

    And the cynics. Armies of them, mostly anonymous, some credentialed, all waiting to pick the battlefield when the deed is done. They're watching. Not to surpass their ambivalence, but to find satisfaction in the defeat of the Generals. "We knew it all along. Screw that McClellan, he's an asshole. We won't give Grant any quarter either, if and when he ever rides onto that little podunk piece of ground".

    The Generals have committed to their ground. It's a good "Place" to wage battle, and to defend. The sun is shining. The belles of victory await. No culottes for them, this is string bikini country. We're fighting here, and now, and the belles and the whistlers are watching.

    So the Staff Meeting continues, and consuls from foreign allies join to formulate the plan of attack. Conscription is the unpopular, yet inevitable conclusion. Invitees. Deserters. You name it, we need them, about twenty thousand strong to fill the ranks. It doesn't matter if they pay the price to be here: the scribes, and the cynics, and the rum runners, and the belles, and rest of the FREAKING WORLD will see the formidable size of the assembly.

    They won't all show. They won't all know how to maintain rank, or let loose a battle cry at the right moment. Hell, half of them might not understand the marching orders. But they will be there, adorned in the colors and carrying the spirit which makes this "Place" worth fighting for.

    (Continued in Chapter Four to Follow)

    ReplyDelete
  19. (c)Andrew Bernstein, October 6, 2009
    aka JagtechOhio
    Stay on track

    This copyrighted submission is the sole property of Andrew Bernstein. Any republication of this content without express written consent in any media, excluding the original electronic address of:

    "http://theindyidea.blogspot.com/2009/10/off-brand-gas-station-moraes-offer-100.html?showComment=1254819530794#c6669403765722952893"
    is strictly prohibited.
    Play ball.

    Good Grounds for Marketing, Chapter Four


    None of the Generals, or the lieutenants, the Zouaves, or the foot soldiers know how the battle will turn. They pledge commitment, pray for safety, hope for valor, and strap it on. We hold this ground together. Light it up.

    When the season is over, you can play your little numbers games to your hearts' content. You can write facts about how many asses were in the seats, or you can bounce around numbers that you heard from a friend of an enemy. This is your ground. I didn't start this little pissing contest, and the floor here has received enough of my contributions. I have better ground to fight for.

    And when the winter of your discontent has passed, we shall see who returns to good ground. Some familiar faces of the veterans will be at the ready. Perhaps a new regiment, comprised of citizens from this ground or some other, will have realized the value and chosen to return. This is about people who want to participate. This is about "Raising" acceptance (4). This is about "Maintaining" the venues (3). This is about "Improving" the value(2). And most importantly, this is about putting on the best "Show" possible (1). We work with the equipment the best we can, survive the economic environment the best we can, and we go IndyCar racing.

    I'll be there. You guys can hold your ground.

    Andrew Bernstein
    aka JagtechOhio
    "Stay on track": This concludes my participation here, and the last time I will use that tag line. The new slogan is improved, inclusive, and aimed toward the future. It has a direct tie-in to specific promotional features and serves as the basis for direct retail marketing opportunities for potential IndyCar Series Sponsors. Catchy recorded theme song, too.

    I would like to thank Mr. Bob Jenkins and Mr. Johnny Rutherford for answering my written questions "on air", and Mr. Kevin Lee for citing my questions and comments during his discussion with Mr. Jamie Davis.

    Thanks also to Mr. RoggesPierre (X), for educating me with viewpoints I would not otherwise have recognized, and for the new paths of endeavor this dialogue has helped to inspire.

    ReplyDelete
  20. I dare anyone to read the above rantings by Andrew, and not wonder, "where in the name of everything racing was he headed"?

    We all know that for 2010 and 2011 the "product" is not about to change---well unless the sisters pull the plug on the IRL.

    What I think we all want is to see at least in 2012 a "new and better formula", one allowing for more people with the money and the desire to join.

    It is obvious that the present formula does not allow for new blood--it is built to protect the present owners--so growth of product is not a realistic goal--till 2012.

    Trying to defend the status quo, is tantamont to thinking you can teach a goat to dance.

    YOU CAN'T!

    My concern is that by 2012 there may well be nothing to save.

    We need a better product, which is fan friendly, with a greater number of owners, in a formula that is affordable, driven by more Americans.......and we need it soon!

    Roggespierre, keep up the great work!

    osca

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  21. That was something, wasn't it? It transitioned from "I didn't start this pissing contest!" to "And now we will look forward, forward to promoting street races, because it is what we have!" I didn't even know there was a pissing contest. I just assumed Monsieur was doleing out information about how bad things have gotten for the IRL. I half expected at some point to read about why papering in a crowd at Homestead would be a good thing.

    Andrew, dear, its obvious. If you think that the market hasn't rejected Indycar Racing in this format and that it merely needs to be reintroduced to casual/nonfans....you're gonna be very frustrated reading this blog and its commenters.

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  22. Guys,

    The beliefs above are, from what I can tell, fairly representative of those that are held by IRL management and the top IndyCar teams. They like what they have and for various reasons they want to keep it intact.

    They blame 1) race promoters, and 2) television partners because 1) people don't attend, and 2) people don't watch. They believe that arbitraged "sponsorship" and government subsidies are demonstrations of growth.

    We know that they are wrong. Yes, some people like the IndyCar Series as it is. But those people are too few to support the cost. That is the definition of market failure.

    Osca's simple proposals are spot on: better product that is fan-friendly, with a greater number of owners (this is an underrated factor, IMO), in a formula that is affordable, driven by more Americans. It can't be the same as NASCAR, but it does need to borrow some of the fundamental principles that NASCAR has used to achieve market success.

    Andy - I hope that you enjoy the race this weekend and accomplish what you hope to accomplish. I mean that in all sincerity.

    Best Regards,

    Roggespierre

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  23. "And the cynics. Armies of them, mostly anonymous, some credentialed, all waiting to pick the battlefield when the deed is done. They're watching. Not to surpass their ambivalence, but to find satisfaction in the defeat of the Generals. "We knew it all along. Screw that McClellan, he's an asshole. We won't give Grant any quarter either, if and when he ever rides onto that little podunk piece of ground." "

    I believe the issue here is partially the limitations of written debate. No eye contact, no vocal inflections.

    Andrew B (I hope you're at least planning to come back and check the replies to your long discourse), you've characterized this as an US vs. THEM situation - the embattled IndyCar management vs. outsiders snarling at the gate, waiting for the defeat of "The Generals", intending perhaps to rebuild in the wake of the destruction. But destruction first!

    This, I think, the sentiment of the THEM that you characterize, is NOT what I understand this blog to be about. If Terry Angstadt were to show up one day saying "Hey, we're in difficulty and we'd hope you might be able to help us plot the future of IndyCar" I don't think any of the qualified participators here would turn the offer down out of spite.

    "The Generals have committed to their ground. It's a good "Place" to wage battle, and to defend. The sun is shining. The belles of victory await. No culottes for them, this is string bikini country. We're fighting here, and now, and the belles and the whistlers are watching....
    And when the winter of your discontent has passed, we shall see who returns to good ground. Some familiar faces of the veterans will be at the ready. Perhaps a new regiment, comprised of citizens from this ground or some other, will have realized the value and chosen to return."

    Emotional optimism, which is good. I mean, why go to the race (I am too!) fretting uselessly? But here's the thing: you are anticipating a "return to good ground" that is not contingent on any alterations to the culture or methods of IndyCar racing.

    Here is the disagreement: you feel that THE PROBLEM is not a poor product, but poor deliverance of the product to the American masses. Others here feel that THE PROBLEM is the product.

    But it's both, of course. The product isn't fantastically promoted. Versus does not lend itself to channel surfers. But the product is also a shell of its former self.

    What is potentially harmful is dismissing something as "not part of the problem" without first carefully ascertaining that this is true, because then your perspective and plan of attack become prematurely fixed.

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  24. And continued (typed it all in, wasn't allowed to publish the whole thing)...

    "With apologies to the General Staff, there is no way that they can enlist that many recruits. A large block has already been sold, included as a portion of the sponsorship negotiations with Apex Brazil. For 2009, this is their "home" race. Bang the drum and play the fife boys, let's fire up the troops now that you're here. For the historians, they are the Zouaves. Welcome!"

    On this I AGREE, as far as my knowledge of the situation allows me to. Whatever it takes to make a respectable crowd this year, do it - this is MY personal feeling on the matter!

    But I also think that FOR THE SHORT TERM (i.e. this race) neither you nor Roggespierre can claim knowledge of what's right for IndyCar. Why? Because it's a balancing act that only an insider would be able to draw conclusions about: value gained by better crowd showing on TV vs. value lost by giving away free tickets to those who would otherwise buy them. That sort of thing.

    The argument that this is a poor LONG-TERM strategy (as well as an indicator of overall poor health) seems rather less debatable, though.

    Don't allow disagreement to chase you away! Opposing views are the strength of trying to really figure it out.


    (By the way: you know what good ground is? Good ground is the Month of May in Speedway, Indiana. This is the first and last stronghold, the only place where it still really, truly works, where the response of the people still transcends the reality of the product.)

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  25. Indy is good ground indeed!

    I first went to the 500 in 1946 as a wide eyed 15 year old.

    From that day to this a member of my family has been there--and we will be there as long as we have breath and since I have great grand kids going---that should cover anything needed to "help restore open wheel racing".

    I have been there as a team member, an owner (silent partner), an advisor, and as a spectator, so my ambition is to not "kill" racing so as to pick over the bones, and say, "I told you so", but rather to try to make what we all love as an avocation---better, watchable, innovative, and fan friendly.

    What bothers me is that the IRL was started from anger (TG's), constructed using faulty economic logic, and maintained in the face of a growing deficit.

    Suddenly the reality (IMS owner's reality), that to pour more and more money into a failing and costly business is fool's work.

    The fallicy, in part, is that the sanctioning body should have any vested interest in the teams.

    The sanctioning body should set rule, and get out of the way.

    An aside: Bill France (the old rascal, who never met a rule he didn't change, even after the fact), has to be turning over in his grave with the COT and NASCAR beginning to step down the same path--the sanctioning body being too involved with the teams.

    As to giving away tickets--I agree with Humpy Wheeler---an empty seat is a future fan missed!!

    Might as well give them away, (of course Humpy would have a tie in to something down the street), or give them away at least at the last minute.

    If you gave me free tickets to Indy, I'd still buy the NW Vista Deck seats. Why? My family would cheerfully choke this old man, and not attend the funeral, if I didn't!

    May I add one more thing--life is too short to be mean--so let's disagree---but let's also do it with humor!

    osca

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  26. Andrew wrote;
    "Market rejection" presumes previous "market exposure".

    With only 6% of the 500 audience (market exposure) following the series on cable, I'd focus on the rejection side of things, unless of course, I was under the belief there was nothing wrong with the product.

    FWIW, I don't believe addressing the reasons for market rejection will in themselves bring the series back to life, anymore than I'd say because everyone in the NBA is tall, therefore, all tall people are in the NBA. I just see it as a distraction to 'penetrate' or expose your product to a new market when you can't hold the one you're already in; you'll just end up losing the new market for the same reason you lost the old one.

    Best of luck with your endeavors,

    -John

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  27. Roggespierre wrote;
    "We know that they are wrong. Yes, some people like the IndyCar Series as it is. But those people are too few to support the cost. That is the definition of market failure."

    Keeping with Andrew's theme;

    The Charge of the Light Brigade
    The Light Brigade set off down the valley, with Cardigan out in front leading the charge. Almost at once Nolan was seen to rush across the front, passing in front of Cardigan. It may be that he had now realized the charge was aimed at the wrong target and was attempting to stop or turn the brigade, but he was killed by an artillery shell and the cavalry brigade continued on its course…

    -John

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  28. (M) Poor ratings and attendance are strong indicators of market rejection.
    (m) IndyCar has poor ratings and attendance.
    (c) Therefore, IndyCar has strong indicators of market rejection."

    To you sir(s), I'd say you don't have that "Four P's of Marketing" thing figured out.

    ............................................

    To keep in line with your reasoning, I'll change it for you then, Andrew.

    (M) Poor ratings and attendance are strong indicators of market rejection.
    (m) IndyCar has poor ratings and attendance.
    (c) Therefore, IndyCar must find a market that doesn't reject its product.

    -John

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  29. With all the History majors and quotes of American Literature on this site, I am feeling compelled to spout William Faulkner from the "Sound and the Fury", but for the sake of peace among us, I will refrain. Just a sidenote to all of the information provide. Keep one thing in mind gentlemen, it has always been the smaller lower fund teams that have brought forth the truly talented drivers that were destine for greatness. Several include one Rick Mears, a California lad who failed attempt at the 1977 Indy 500 caught the attention of one Roger Penske. The rest is history. This feat occured again recently, Enter one Sam Hornish and a small but prideful bunch called PDM Racing. From there it was on to Panther Racing. After a brief stint it was on to another prideful organzation, but this time the financial resources provided the young lad with the tools to win the Indy 500. Again Roger Penske and again on to greatness. The point to this is simple, when Americans want American drivers, they turn to the smaller teams to find the talent.Take a moment to review history and you will find most Indy car champions started at the back of the field, not the front. And on that note, I will bid you gentlemen a fond, but glorious evening. You may fire at will !!!

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  30. Oldwrench,

    I still think that Hornish's most impressive race came when he finished 3rd at Las Vegas in PDM's old chassis. That's when he really caught my eye.

    Of course, we don't see that anymore. Nobody runs old chassis because everyone has to buy Dallara's update kits - yet another example of the grossly inefficient IRL supply chain of which you speak!

    Best Regards,

    Roggespierre

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  31. Hence my reasons stated about smaller teams and cost of entry to the sport. If people like Damon truly do want Americans behind the wheel of an Indy car (and I truly believe they do), then one must consider the options I have presented. It is the only way to right the ship. As we know, the product in present or future form can not provide the consumers with what he or she desires without them. Bubble Day is paramount at Indy and without it, Indy also will hear the rattle from the saber of death!!

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  32. Oldwrench,

    The 1st and 4th days of qualifying were, in many respects, my favorite days of the month in years gone by. They were routinely better than the race itself.

    One of Indy's great Pariahs was Kevin Cogan. I don't know if he was to blame for what happened in '82 or not, but I do know that he never would have been in that Penske PC-10 if it had not been for his 4th place finish in a four year-old McLaren as a rookie in 1981.

    That is opportunity. It didn't take a huge wallet. Other drivers (Michael Chandler, for one) of that era were able to bring money, and Cogan was no poor boy. But he got a shot in an old car, ran all day, surprised some people, and then started on Row 1 the following year.

    When was the last time that happened? It seems that, today, drivers either start in top equipment and stay there or start in s-boxes and stay there. There is neither upward nor downward mobility.

    That contributes to the uninteresting proposition that is today's IndyCar Series.

    Best Regards,

    Roggespierre

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  33. Well if you really want to know....Cogan had no one to blame but himself. During an interview for a chief mechanics position with Cal Well's Toyota factory truck team, I met and was interviewed by Bob Sprow. Mr Sprow was involved at Penske Racing that year. After a brief discussion, Bob informed me that after the crash, parts were removed and sent out for inspection. No fault was found and AJ Foyt's call was correct in what happened. Thats why they call it racing luck. Not good for Mr Cogan that year!

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  34. Oldwrench,

    Thanks for the info. I love going to YouTube and watching that crash every year when May comes around. Foyt's interviews with Chris Economaki are priceless!

    I was twelve years old, sitting in the Paddock with my dad. The crash happened right in front of us. So, too, did Johncock's thrilling victory. I always loved Gordy - he might not have been the sharpest tool in the shed, but the man had a couple of big brass ones.

    Best,

    Roggespierre

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  35. Isn't that what racing is all about? That is what made racing great! And you didn't need arbitrage finance to do it. As I say..Back to the basics!

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