“We didn’t do much calculation. Mr Arnault (LVMH’s Chairman) always goes with his stomach,” said Pietro Beccari, Louis Vuitton’s CEO.
The F1 x Louis Vuitton 10-year deal valued at €100 million annually was a simple and non-data-driven decision.
Hard work and data were replaced by the “boss’s stomach”.
Is it a good
deal? The results will tell.
Is it a good investment strategy? Definitely not.
Sponsorship is a marketing tool that serves business objectives.
Louis Vuitton’s customer data should support all marketing decisions. CEOs’ or CMOs’ opinions aren’t necessarily accurate, data is.
Good deals attract more good deals.
What can we learn from this?
01) Commercial triggers
F1 growth pillars connected with important LVMH goals: cultural relevance, young audience, US expansion and global exposure. Netflix Drive to Survive documentary, The Netflix Cup and an American audience of 40 million followers unconsciously backed that stomach decision.
02) It’s part of the game
Whether working at the property or on the sponsor side, we will be asked to make partnerships work even if we disagree with them. It will be necessary to put effort and calculation into achieving the best possible ROI. And, yes, we will be fully responsible for the outcome.
03) Decision-makers
In some companies, Marketing Directors have more decision-making power, while others are totally led by CEOs. In this case, it was the chairman. It’s important to understand how sponsorship decisions are usually made as negotiations advance.
Sponsorship deals can serve multiple objectives, but the more data and analysis, the better the results.
It’s not only good for the company, it’s necessary for properties’ future sponsors quality.
Receive my weekly post