An Australian state based tourism organisation was approached for funding to stage a Formula E event in their capital city. This organisation required strategic advice on whether this event would drive new economic, community and global marketing benefits to the host city and a recommendation on whether they should fund this major event.
MI Associates reviewed all information provided by FIA and the host city including host proposals, initial financial modelling including costs and expected revenue and initial economic modelling including visitation and expenditure assumptions. This was complemented by a consumer interest poll to a nationally representative sample of 1,000 people to understand awareness and interest in the event as well as propensity to attend locally or travel interstate for the event. MI also undertook extensive desk top research on the current series ownership and commercial model as well as attendance, community and TV ratings from existing Formula E events.
The market intelligence, due diligence and feasibility analysis enabled the organisation to fully understand not only the benefits this event would bring to the Host City but also likely costs and return on investment based on the requested level of funding. MI's research also uncovered substantial commercial risks involved in investing in this event and therefore it was recommended not to proceed with a formal proposal.