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Shanghai, being successfully selected as 2004-2010
F1 Grand Prix Race Track has added another "Gold Card"
to its city. Shanghai has started its orientation and marketing
plan in order to obtain the Maximum Fame and Economical outcome.
On November 15th, Shanghai International Circuit and Sepang International
Circuit signed a long-term cross-selling plan and agreement in order
to gain maximum support in both sales and marketing. Meantime, Agriculture
Bank of China also signed an agreement as co-sponsor to promote
F1 related business. In addition to the official appointed Shanghai
Spring International Travel Service as Ticketing and Promotion Agent,
F1 is strongly in marketing progress in Shanghai.
Malaysia as an assisting selling-gear for Shanghai F1
Both Shanghai International Circuit and Sepang International Circuit
located in Asia, racing respectively in November and March, not
considered as competitor and no confliction predicted.
Mr. Yu Zhifei, Deputy Manager of Shanghai International Circuit
said that "The effective idea of partnership crossing-selling
with Sepang International Circuit is due to their 4 years successful
experience in organizing F1 races plus the "Best Organizing
Award" awarded by the FIA".
According to the Agreement, Sepang International Circuit will organize
viewers not only from Malaysia but also from other countries in
Asia to attend F1 in Shanghai. At the same time, Shanghai will made
arrangement for F1 fans in China to go to Malaysia F1 Grand Prix.
"We (Sepang International Circuit & Shanghai International
Circuit) will customize Special F1 Package Tours in both Cities
to elevate the promotion of F1 in order to attract more Race-Car
Lovers' participations" said Mr. Ahmad Mustafa - General Manager
of Sepang International Circuit.
He said that aside from these two cities, other Asia cities also
considered in the future developing plan including Formula One and
other racing competitions. There should be much more opportunities
than World Soccer Game including using Race-Car-Fleet with same-name
or different-name car products.
With over 10 millions attendance, mostly from Asia, Europe and America,
the 2002 Sepang International Circuit gained over 3 billions in
Economy. Mr. Yu Zhifei considered Asia countries as priority F1
fans to China. Malaysia will set as major target for the 2003 F1
marketing promotion year. A Promotion Plan Agreement signed by Shanghai
International Circuit and Shanghai Spring International Travel Service
will lounge a special "Experience F1 Romantic Tour" in
March 2003 for Chinese to experience F1 in advance.
High-Tech Advance Sponsor F1 development
Aside from Advertising, Tickets, TV Broadcasting, future Track rental
and hosting Carnival or related activities, major incomes are funded
by Sponsors. F1 with its world-famous classic games developed a
high-tech image. Business related with F1 including Renowned Cars,
Financial, Oil and Chemical Industry, Transportation and Communication-Technology.
Agriculture Bank of China became first State-owned investor, first
local Sponsor to provide and guarantee the stage-one 1 million RMB
promotional fund. Mr. Yu Zhifei said that other local or foreign
Corporation is welcome to participate the F1 development.
Mr. Yu said that Shanghai International Circuit would look into
an affordable ticket price for local consumers. Affected by 9.11,
this year Sepang International Circuit lowered their ticket prices
to equivalent 200 RMB each for general admission.
Major Development and Investment for Funding Reaction
At the moment, the amount invested in Shanghai International Circuit
is 26 billion, 8 billion invested by 3 State-owned Companies, the
Shanghai JiuShi Corporation, Shanghai State-owned Assets Co. Ltd.
and Shanghai Jia'An Investments & Development Co. Ltd. Other
funds will be rely on Bank financing, total investment over 50 billion.
All Banks are willing to finance SIRCT due to the fame of F1, the
high support from the Government and top state-owned Shanghai JiuShi
Corporation as guarantor. Other Development including Exhibition
Hall, Entertainment Area, Shopping Center, and Hotels are highly
supported by Investors. Shanghai International Circuit also in considering
on other low cost financial institution and at the moment has no
financial pleasure.
With this large amount of investment, the next will be the challenge
on organizing and managing the Shanghai International Circuit, Sales
and Marketing. The successfully result mainly rely on Sales and
Marketing.
Majority of F1 viewers are from overseas, Shanghai International
Circuit frequently attends overseas Trade Show and Exhibition to
promote F1 in China. Though F1 leveled with Olympic and World Soccer
Game, it's not as famous inside China as local promotion definitely
required. As appointed Agent, Shanghai Spring International Travel
Service together with Shanghai International Circuit will lounge
numerous marketing activities to promote "Tour Shanghai - Experience
F1".
Mr. Yu Zhifei is a well-known Managing Personnel after being successfully
running the ShenHua Soccer Club for 9 years. The Shanghai International
Circuit is divided into two separate systems, investment and management;
it is according to Mr. Yu "far more challenge, way to go".
"From the point of view of Shanghai International Circuit,
we have prepared for a long term investment plan, the market managing
and planning is definitely an uneasy goal to achieve. It is hard
to foresee when or how long to gain profit from the investment,
Shanghai International Circuit is working on a profit-and-loss mode
, but we will work hard on it."
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