Should Red Bull keep on investing in the Formula 1 Championship for Essay

Should Red Bull keep on investing in the Formula 1 Championship for next year - Essay Example The increasing trend of marketing through sponsorships of events is visible to everyone. Around 15 years ago less than 25 percent of events had some sort of corporate support and involvement but today this percentage has increased to 80 percent (McDowell, 1999). These events are an easy way through which an organization can communicate their messages to the customers. Red Bull is a soft drink company that is using sponsorships as a way to market its soft drink. Red Bull sponsors Formula 1 racing events all over the world. They also have many sports teams that take part in sporting events. Red Bull Racing is a Formula 1 racing team that is owned by Red Bull. The company also owns another racing team in Formula 1 known as Scuderia Toro Rosso (Formula 1.com, 2008). The company also sponsors other extreme sport like snowboarding and wakeboarding. The marketing technique of Red Bull is well known and it is known to work for the company. Associating the brand with extreme sports also commu nicates a brand image of the product to the consumers. This is one great advantage of sponsorships of events. Sponsorships of events actually communicate with consumers in a better way than conventional marketing (Meenaghan, 1991). Therefore the efficacy of marketing through sponsorships of events is well established.... It is vital to find the efficacy of this marketing technique in times of financial crisis. This is the main problem that we will attempt to solve. The topic of this research proposal is that whether Red Bull should continue to invest in Formula 1 championships or not in the next year that is 2012. This investment includes the sponsorships of the event and the racing teams of the company. This research proposal will identify the process in which the answer to the above question will be obtained. Aims and objective of the research alongside with a comprehensive literature review on the subject of marketing through sponsorship will be presented. Research methodology will also be discussed in the proposal. Aims and Objective Research Topic The Marketing of Red Bull through sponsorships of sports events like Formula 1 Business Question Should Red Bull continue to invest in Formula 1 championship in the next year? Aim The aim is to help Red Bull make a decision about its marketing techniqu es in the wake of the financial crisis the world is facing today. Objectives 1) To understand what marketing through sponsorships of event it and its importance 2) To seek the economic worth of sponsorship marketing 3) To evaluate the benefit of sponsorships for Red Bull 4) To gain insight on the effect of Formula 1 Championship on brand awareness of Red Bull by collecting responses from customers Literature Review Marketing through Sponsorships Different marketing techniques have been developed over the years and all of them aim at better communication with the target audience. Sponsorship is a way through which a product can be marketed to the customers. Research has suggested that sponsorships do help a product achieve competitive advantage over