Interview with Stéphane Samson, Marketing Director of Lotus

Stéphane Samson, you are currently the marketing and communication director at Lotus. What does it mean in 2013 to hold such a position?

« Today, it means two things. The first is that marketing is about dressing the team so it looks attractive to the outside world. Attractive not only to sponsors but also to fans, attractive to journalists but also to existing partners. For partners who have signed up for three years, they need to find the team attractive in the first year but also in the following two years, throughout the entire partnership.

That’s why for the past year or two, we have decided not to communicate only with the accredited press at the Grand Prix, but to communicate equally with media representatives, our fans via social media, our partners, and also internally. Because we realized that in an F1 team, there are 500 or 600 people working, but only 80 people go to all the circuits. So the remaining 420 are not necessarily aware of everything happening within the team.

That’s why we did something that I think is quite unique in F1, which is to dedicate a resource with the mission of informing the staff internally via the intranet. We have a newsletter printed every week that is handed directly to them because when you work in the composites department on front wings, you might see Kimi Räikkönen once or twice a year. So we try to keep them as informed as possible so they feel fully integrated.

For you, what is the most important performance indicator?

« But above all, I think that where the game has fundamentally changed over the past five years is commercial communication. Today, we can no longer measure the performance of a communication service by its television audience share or the number of articles in newspapers, whether positive or negative. It’s still a performance indicator that we continue to monitor, of course, but it’s no longer our priority. When I arrived, I stated that we were not going to measure our performance by the quantity or quality of our media coverage. Now, we measure our performance by the number of stickers we have on the car the following year. Have we managed to present the team in a sexy enough way to attract new sponsors? Coca-Cola will be on our car and not the others. In that regard, it worked. For others, it didn’t work, but there it worked well.

Today, it is no longer enough to present the team well to the press. We must constantly think about how we can break new ground to present ourselves to the fans. When I say fans, I’m not necessarily talking about those who are already F1 fans; that’s not necessarily what interests us. In relation to the press, we want to establish a discourse of trust. When we have a fuel pump problem, we don’t say, like another gray team, that we had a technical problem. We say it’s a fuel pump problem.

What prompted in you this desire for transparency?

« Unfortunately, it started with an unfortunate event. It was Robert (Kubica)’s accident two years ago. It happened on a Sunday, in February. That’s when I remembered what other teams had done in serious accidents, where they waited hours and hours before releasing a statement. It only served to amplify rumors and controversy about the driver’s health. We, on the other hand, decided to issue three or four statements during the day. »

What is your relationship with the press today?

« There you go, after two years, I think we have managed to build a relationship of trust with the press and it’s very important for us. The instructions for the press officers when they receive an email is to respond within two hours. It’s not because we are an F1 team that we can afford to act like thugs, not saying hello, goodbye, or thank you. Otherwise, it’s true that it could look bad, and it’s not necessarily the way our competitors behave. So it’s good for us. »

Lotus seems to have chosen a marketing positioning of being the cool team in the paddock, a role previously occupied by Red Bull. However, at the same time, you have managed to recently attract major consumer companies (Coca-Cola, Unilever, Columbia Records, Microsoft…), which were previously absent from F1. What appealed to these companies to take the step of investing in a sport where they had chosen not to be present?

« That’s the whole paradox. We have a somewhat amusing communication, slightly edgy, a bit biting, but at the same time, it’s what attracts the arrival of some of the biggest multinational companies in the world, which could otherwise be seen as corporate giants. This isn’t something new: Jordan had this stance, BAR had it, and so did Red Bull until a few years ago. With this language, we get noticed, we have a friendly side, people like us. And it’s certain that Kimi helps us a lot in this regards. This is where we see large groups like Coca-Cola, like Unilever, preferring to be with teams that have a slightly edgy communication but with real personality, rather than being with very corporate teams where everything is square, with magnificent press releases, and where if 14 Paddock Clubs are promised, there are indeed 14 Paddock Clubs… But ultimately, this communication is so smooth that the logo on the car isn’t even noticeable; the boundaries of partnership activation are so limited that apart from on the website or a tweet, there’s not much else going on. For us, the best compliment is Coca-Cola’s press release announcing Burn’s arrival, where they declare that it is due to the team’s creativity that they decided to join us. »

Speaking of this partnership, what led this group to be present through its brand rather than its umbrella brand?

I think what made the difference is that other teams communicate more towards people who are 35 years and older. These are the traditional F1 fans. Those who know who drives for whom, which team has which sponsor… We decided to communicate with people who appreciate F1 but also love tennis, football, video games, rock, music… That’s why when we look at our demographic studies, we realize that our fans on Facebook are 60% of people who are between 18 and 30 years old, and especially we have 30% of our fans who are women.

So we have a relatively unique positioning in F1. So if Burn decided to join us, it’s because last year we started doing things with Linkin Park, with Angry Bird… Similarly, the fact that we signed with Columbia Records aligns with what they like.

You launched the burn Yard project together in Barcelona. What motivated you to venture into this field?

« It wasn’t us who launched the idea. It was them who came up with this concept, telling us that they wanted to activate their partnership with Lotus and that instead of inviting people to the Paddock Club or having a dinner in the motorhome with VIPs, they preferred to use a disused warehouse and do a Burn Yard. It worked very well in Barcelona, and they plan to do something even bigger in Budapest. Of course, we try to provide support by bringing in the drivers, relaying information on social media… »

We see you very active on social media, both through an official team profile and also through your personal profile. How important is this new form of communication for your team? Is it one of your major arguments during negotiations with existing partner companies and prospects?

« We realize that today people who watch a Grand Prix on television do so with at least two screens in front of them: the television and a smartphone or an iPad… So we started by deciding to begin with Twitter because we realized that the people in the commentary booth have no idea what’s happening on the track when there’s a problem. When a car retires, they have to come down from the booth to see what’s happening. So we started using Twitter three years ago to inform people. We then used Facebook, Instagram, Pinterest as communication levers with our fans. »

How do you select the different tools you use?

« It’s quite simple. We reach nearly half a million fans on Facebook. It’s our somewhat lifestyle, somewhat fun showcase, where we have fun posting photos of Christian Horner completely naked. On Twitter, we have about 250,000 followers. There, it’s people who are F1 fans. So we try to share information mainly about us. The website is more of the corporate side, announcements of new partnerships, official driver interviews… It doesn’t mean it’s more boring, it’s just more traditional so that everyone can find what they’re looking for. »

We are now going to discuss the ownership of the team. Until now, Genii Capital held 100% of your shares. When he arrived, Gérard Lopez said he wanted to use F1 as a B2B platform, central to his core investment fund activities. How do you position yourself in relation to the Sauber Club One, which was set up to bring together sponsors who particularly did not want to be present on the car?

In fact, we are doing exactly the opposite. Genii established Genii Business Exchange while there was already quite an interesting set of businesses around them. It’s true that we had a bit of difficulty explaining this new concept. The F1 activity allows the rest of the businesses, such as Genii Capital, Mangrove, etc., to operate. So for him, as an investor, if he loses 10 or 15 million euros in a season with F1, it’s not an issue if it has allowed his other activities outside of F1 to gain 40, 50, 80, or 200 million. It’s true that it’s a culture so different from what’s being done elsewhere that we had a hard time explaining it.

Moreover, we often see articles emerging in the paddock about monumental losses we could have made. I think we need to distinguish ourselves from Toro Rosso, Force India, or Sauber because we don’t need to break even financially for our owners to be happy. As long as the F1 business allows them to do business outside, they are very happy. And unlike Red Bull, which has cans to sell and therefore invests money in its team via sponsorship, for us, when Genii invests ten million, it’s a loan to the team, and then it’s normal for them to recover money because they are investors. So recently, there was mention of 50 million euros in debt. Yes, there is a part that is real debt because, like many teams today, we can lose money in F1. But a large part of this debt is what Lotus F1 owes to Genii Capital. To simplify, it’s what the right pocket owes to the left pocket. So if tomorrow Gérard Lopez decides to wipe out this debt with a stroke of the pen, the team becomes profitable again. If he did it for this season, the team would be profitable by 30 to 35 million euros.

Recently, there has been a capital opening to new investors up to 35%. In the statement, it is mentioned that these new partners will allow the team to attract new sponsors. Can you tell us more about it?

« That’s exactly what Gérard Lopez and Eric Lux were saying right from the start when they stated that they were ready to give up part of the capital. I think it’s a common practice in F1. There are very few teams with a single shareholder. When they said they were looking for the right partner, they meant they were obviously looking for partners capable of paying the right price for the right stake. But above all, they were looking for partners who fit into a slightly different logic. Contributing a few million euros for a stake and then doing nothing more is not very interesting. They preferred to have a long-term relationship. The group in question has not only committed to buying part of the team but also to helping us in our search for new sponsors. They have the right connections in the right places. We hope therefore that this will materialize quickly. This is somewhat different from other teams where partners come in to take 10, 15, 30% of the capital and are content to make decisions on the board with others. With us, there is a proactive approach. We want them to feel like a full member of the family, but they must get their hands dirty just like us! »

Since the middle of last season, you no longer have a title sponsor or at least a paying one since Lotus no longer contributes financially. Are you looking to fill this gap or does the Lotus name suffice, given its history in F1, to secure the necessary funds to achieve your goals on the track?

Clearly, in the setup, that’s the last thing we’re missing. Everything has come together well in two and a half years, but having XXX Lotus F1 Team would allow us to make a leap forward in terms of communication and marketing. We have the best expenditure/point scored ratio in the championship.

That brings us precisely to Kimi Räikkönen and Red Bull…

« The deal with Red Bull is far from done. But just being compared to the Red Bull giant when we’re the underdog is already flattering for us. I’m not saying he won’t leave us tomorrow, but something significant has happened over these past two years. »

Exactly, did your strategy revolve around him, or did he adapt very well to your strategy?

« We managed to find ourselves very well. We were missing a black knight. Some drivers are very competitive on track but have an image that is too smooth, too nice to be striking outside to fit with our slightly quirky communication. So having Kimi with his tattoos, those statements that make us cry with laughter… It’s true that sometimes these statements are a bit laconic, but we are his biggest supporters because we understand that it’s his true personality. We tried to make the most of him. I think he realizes that thanks to his performances on track and our strategy, his value in the paddock has significantly increased. I’ve always believed he was a grown man. So he doesn’t arrive at the circuit with a 30-page document with what he should say, not say… He’s not briefed on communication or only very subtly or on very delicate subjects, like the death of the track marshal in Montreal, not on commercial things. It’s true that he has a very, very reduced number of commercial operation days in the year so that it suits him and suits us as well. »

You recently launched a commercial operation with Rexona with your brand featured on their products sold in stores. Is this something you want to push in the coming years?

Contractually, it’s possible, it’s regulated. There are no royalties being paid. It’s just that Rexona determined it could be beneficial for their commercial strategy to use us and that it aligns with their slogan. It’s not unique to us. All sponsors in F1 can do it. We are lucky they choose to do it this way. For example, one could imagine one day having a Magnum Kimi Räikkönen…

And a marketing department in a team like Lotus, how many people does that represent?

« It’s not bad. It’s much less than in other teams that have much more resources. I imagine that McLaren or Red Bull are extremely structured. We are a small team of about twenty people handling all of communication, marketing, and commercial activities. It roughly corresponds to our position in the world championship. But where we are fortunate is that we are independent and within our marketing guidelines, we are free to present ourselves as we wish. I imagine that in a large manufacturer like Mercedes or a well-established brand like Red Bull, it must not be the same story. For example, with Daft Punk, we met for three hours and agreed for them to make their third public appearance in 20 years with us in Monaco. We didn’t even sign a contract, and it was free, even though they had turned down multi-million euro offers from other companies. We try to keep things simple, without imposing overly strict commercial conditions. »

From our special correspondent in Silverstone