"its crunch time for the V8 race to get the formula right and for CTEC to lift its game "

MARKETING TIPS

by Ken Mitchell

With the third Canberra V8Race about to happen, it is crunch time for the marketers of the event to get the formula right.

Summernats is the only ACT tourism event that is run totally on private risk without any funding by the government, and it runs at a profit - thanks to the common sense business acumen of Chic Henry (the event owner/promoter).Summernats with its interstate and local rev-head based support is similar in many ways to the target market for the V8 race. Why does Summernats make a profit whilst the V8 race costs the ACT a fortune. The answer is simple and there are many lessons that can be learnt from Summernats.

As its contribution towards promoting the ACT as a tourism destination, the ACT government has committed approximately $25 million to subsidize the V8 Race over the 5-year contract. This means that there are very deep pockets to keep funding it until the V8 Race gets the formula right; in the meantime no one individual is responsible or is at risk of loosing their own house.

This event needs to be brought to the sharp end of marketing now and run with a "private venture mentality" if it is to even vaguely approach a break even point by race 5.Summernats went through this in its early years and has gone from strength to strength by doing whatever is necessary to live within budget and foster community support, including rescheduling to take place after the new year, relocating the Super-cruise to EPIC, introducing a total ban on bringing alcohol to the event, etc.

From a ratepayer perspective, the 5-year V8 Race deal means that each and every household in Canberra has debt equity of about $250 to hold the event in Canberra (more than the cost of a 3 day pass); this mainly benefits selected tourism businesses. Why should ordinary ratepayers throw money at a minority sport catering to rev-heads smack in the cold June weather - a time that clashes with other cultural happenings in the centre of a cultural-based city reliant on private-car usage and adverse to having daily traffic routine interrupted by the temporary barriers required by its current location in the major tourism triangle. Get real and turn threats into opportunities and change the time of the event to say March, move its location to a less central point that can accommodate the building of a long-term race infrastructure over time, build better community support, etc.

With many of the sporting icons of Canberra struggling for funds (Raiders, Cannons, Capitals, etc), it is time for CTEC to lift its game and review events such as the V8Race and get them right or consider backing other locally-based Canberra ventures.

Ken Mitchell is the CEO of Australian Marketing & Research Services and can be contacted on 62576677w, or kenmitch@austarmetro.com.au