The Dakar Car Rally - Essay Example

?Critique an events marketing actions: the Dakar car rally Introduction The Dakar rally is an annual off road event which is organized by the Amuary sports organization. It had its inception in the year 1978 and was initially held from Paris, France to Dakar, Senegal, hence the name. security threats from te year 1998 have led to a change of routes and the event came to South America in the year 2008 and is held there from then onwards. The 2011 Dakar car rally will also be held in Argentina. Objectives The race is open to both amateurs and professionals and is a widely watched and sponsored event. This sporting event, like all sporting events tests will power and endurance. Besides that the thrill associated with car races is legendary as cars and sports drive testosterone simultaneously. The benefits of the Dakar car rally are extremely varied. South America is a land of splendor and its discovery keeps on throwing surprises at motorists and viewers alike. Besides the sporting aspect and the discovery of the worlds different places, an important aspect of Dakar is the development of relationships and the human touch. Dakar has led to a development of many ties and instantaneous friendships between the competitors and the host nations. The cascade of colour also burgeons the culture divide and displays a rich amalgamation of culture of the motorists and the different countries where the races are held. It promotes culture of the host nations and brings the country exposure which is very valuable for the country from tourism point of view. Besides that there are numerous economic advantages associated with the Dakar car rally. Some of these are the liked to the logistical requirements needed by the rally which inject funds into the country's economy. A study resulted in finding that the estimate of its direct economic impact reaches 396 million pesos (i.e. 74.3 million euros).(Lavigne). The country's image was also optimized and tourist potential increased which also contributed to intangible benefits for the country which will be reaped in the years to come. The rally is all encompassing and is based on two core values, courage and endurance. The setting was in the Sahara, the most beautiful and mystical of all deserts and the effects are like an imprinted tattoo. For people in Africa where it was previously held they are the highlights of the normally uneventful life. For people watching it on TV, it is pure entertainment and for sponsors an extreme amount of exposure. It is a marketing juggernaut which is gold old fashioned selling adventure where every thing from toiletries to cars and motorcycles are sold. It is a paradox of cultures and a perfect amalgamation of the two sides of the world: the refined and glitzy Paris and the crude off road places where drivers have to battle difficult conditions. (Lawrence Hacking) Reasons for sponsorship The Dakar car rally, like all other sporting events is a well-sponsored event. Since it is an event which gets international coverage, the sponsors are also international. Sports sponsorship is not a new phenomenon and it is not only dine for social reasons. Not only sponsors fulfill their obligation towards the society but they also get a lot of positive publicity. Quester (P.G., 1996) has stated “the tacit nature of the message and the emotional involvement of the audience in the sponsored activity suggest that sponsorship may exercise an emotive rather than cognitive influence on consumer behaviour”. (Charles Bal). This fact is enough to draw sponsors towards the sporting event. “Sponsorship has become a critical element in the integrated marketing communication mix of many private and public sector organizations. Among different types of marketing communication sponsorship is said to be one of the most powerful mediums now used to communicate and form relationships with stakeholders and markets (Skildum-Reid). Thus companies are willing to sponsor events which will bring positive publicity and bring better positioning of the brand and its product. Main sponsors The Dakar 2011, whose venue is Chile and primarily Argentina is also multiply sponsored. All Dakar partners and promoters are deploying their activation strategies for the event. The main title sponsor for the rally is Personal. It is a major telecommunication company based in Argentina which is operating since 1996. It has multiple services on its portfolio and for this event it is the main sponsor for the event and the chief sponsor for the Argentinian team named X Raid Personal Team which is creating a great buzz. Besides that Personal is also the mobile phone operator for the rally. It is providing a mobile telecommunications assistance post, a Netbook service with a 3G connection and a multi-charger for mobile phones. There are many official partners for the rally which provide services, support, technical and financial expertise to the rally. The first among these is Total which provides fuel, lubricants and logistic services for the rally. Besides that Total also aspires to help the bikers and other competitors through its unmatched support. It is also the main sponsor for the team named Elf. Another premium official supplier is the Banco Marco which is the official bank of the rally. Banco Marco has branches all over the country and will provide products and communication strategies for the rally as well. Banco Marco proclaims that the bank and Dakar have similar values of courage, teamwork and solidarity. Following Banco Marco is Henkel which is a premium sponsor and official supplier for the Dakar in its sixth consecutive year. Since Henkel is a manufacturer of adhesives, sealants and surface treatment, it will be supplying its Loctite and Teroson products to the Dakar 2011, enabling competitors to carry out quick and efficient repairs in the Argentine plains and Chilean deserts. Their human support named "Loctite Charlies" will be providing technical support throughout the event. Similarly the official tyre brand for the rally is BFGoodrich. These are the same tyres selected by Henry Ford for his vehicles. The company is the part of the Michelin group and is an already distinguished brand when it comes to rally raids. Other sponsors for the Dakar car rally include LAN airlines, Nokia, Novotel hotels and resorts and Sodexo. Sodexo is also the official caterer for the rally and the Dakar-Sodexo affiliation is 3 years old. Volkswagen is also another sponsor which is providing its commercial vehicles for the event. Similarly Andesmar is the official transportation provider for the rally. Mutual is providing health and safety services while Fernet Branca, an Italian brand, will be providing its drinks. Palau will be providing its healthy and pure water for the event. Maindu photos will be the official photographer for the event. (Sponsors Dakar). Thus Dakar car rally is the result of extreme efforts by multiple sponsors and is a result of precise planning and development. It is these sponsors whose free or subsidized services result in the generation of income for the area, locals and the bikers. The generation of income is not only through tickets but also through transmission and broadcast rights. In case of the Dakar car rally they can be as high as 40% of the total income. (Andreff) As for the sponsors, they claim to have fulfilled their corporate responsibility but the advantages go far beyond that. The Dakar car rally proves to be a selling point for the products and services of the sponsors. Not only that, the sponsors get positive publicity and media coverage at a very low price. For example in the case Total and Personal have will have their names imbibed on the banners of the rally. Besides that the bikers and the motorists of their teams will wear their shorts and the cars will be painted in their colours and with their logos. These will be watched on TV by thousands and millions of viewers and thus the company will get television exposure which will be extremely wide without having to pay for it. The companies supporting the event will also be viewed as both sports and media friendly companies and might be approached by other sporting events for their products and services because of their excellence. Thus there is a positive relationship between the stakeholders of the event and the sponsors of the event and both of them are directly dependent on each other. Conclusion The bikers, motorists, viewers and organizers are all dependent upon sponsors for financial and service support and the sponsors look up to the organizers, viewers and motorists for positive publicity and healthy relationships. References Andreff, Wladimir. "Financing modern sport in the face of a sporting ethic." n.d. Charles Bal, A. Emotions and Sponsorship Marketing.Toward a Better Understanding of Sponsorship Persuasion Process. . University of Adelaide, 2004. Lavigne, Etienne. Official Dakar press release. 3 February 2011 . Lawrence Hacking, Wil De Clercq. To Dakar and Back:21 Days Across North Africa by Motorcycle. ECW Press, 2008. Skildum-Reid, Grey A &. he Sponsorship Seeker’s Toolkit. Sydney: McGraw-Hill, 2003. Sodexo the Official Services Provider for the Dakar Rally for Third Consecutive Year. 14 January 2011. 3 February 2011 . Sponsors Dakar. 3 February 2011 . Read More