Auto racing is at the heart of Shell’s strategy
Shell is a major sponsor of Ferrari and a partner of F1 in general. We therefore met with Kai-Uwe Witterstein, the global head of sponsorship for the company, to present his strategy and objectives.
Spa-Francorchamps was the ideal place for such a meeting since Shell has been the title sponsor of the Belgian Grand Prix since 2011. This is therefore an essential event for the company: « Belgium is very important for us. First of all, because of the brand visibility we have here. But also for the hospitality we can offer here. Indeed, we have a large reception program, which allows us to welcome the press, executives, partners, and also consumers. Being in the heart of Europe, we can more easily bring people from many different countries, which is very interesting for us. »
If F1 is indeed the most important investment for Shell Motorsport, it nonetheless remains part of a range of participations in numerous categories, from Moto GP to Nascar, including rally and endurance: « Everything we do, we do to showcase the quality of our products, whether it’s fuel or lubricants. F1 is our main investment because it is the crème de la crème! It’s the third most-watched sport in the world, behind the Olympic Games and the Football World Cup. »
There is also a geographical logic in the investments made since each discipline allows reaching different customer categories: « Obviously, F1 is important in Asia. But if we look at our target customers in this region, they have more two-wheelers, and Moto GP is very important there. That’s why we are the title sponsor of the Malaysian Grand Prix in this category. »
Integration with Scuderia is therefore the most important since the goal is to provide the best fuels and lubricants meeting the technical specifications of the Ferrari engine, which has a direct impact on the rest of the oil company’s activities: « We currently have an important challenge with Ferrari. They tell us they want more power. But the developments we are doing with them in F1 allow us to develop better products for our consumers. »
Indeed, 99% of the components of a fuel used in F1 are common with those available at the pump. The last one percent is what makes all the difference and is achieved thanks to the significant technical setup established for this partnership. Over 50 people are mobilized, including an office directly located in the Ferrari premises in Maranello. These technical elements are custom-made for their needs. In fact, if we used our fuel with a different F1 engine, it’s not certain that it would work!
Such an association and development location allows Shell to bring customers to its service stations, but also to charge more for its products than the competition: « In Germany, we have 100-octane unleaded. It comes directly from F1. This allows us to gain customers’ trust and thus demand a premium for our products. It’s like when you order champagne at a restaurant. You know it will be better than regular wine. In the end, it’s the customer’s decision, but we show that our products are tested in the toughest environments. »
For Shell, motorsports are also a way to engage much more with consumers through communication because it creates passion: « We know that our products are not sexy, that they are very technical. But we want to get closer to consumers and invest much more in social media so that we can directly answer their questions. We want to move from brand communication to customer engagement. We want them to think of asking us directly for their lubricants, for the loyalty program, for their car maintenance. »
Furthermore, F1 is also a remarkable tool for developing relationships both in B-to-B (business to business) and B-to-C (business to consumers), and Shell takes full advantage of it. The paddock is thus an ideal place to bring in technical and commercial partners, as well as a means of internal motivation by rewarding the company’s top salespeople, while allowing customers to use their points to attend a Grand Prix: « Here at Spa, we have over 200 people in our reception center. »
But the technical elements are never far. Thus, we had the opportunity to also visit Shell’s mobile laboratory, directly installed in one of the Scuderia’s trucks. The two technicians ensure that the fuels comply with FIA homologation. The analysis of lubricants also allows noting the wear condition of the engines used, and therefore advising Ferrari on their management in the future.
From our special correspondent at Spa-Francorchamps
