Corporate Hospitality in Australian Grand Prix Corporation

This study focuses on the corporate hospitality in Australian Grand Prix Corporation and its impact on brand recognition. It presents the audit findings and potential theories in service marketing. Recommendations are also provided to improve the service.

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CORPORATE HOSPITALITY IN AUSTRALIAN GRAND PRIX CORPORATION
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Institution
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Current Review
According to the 2019 Australian Grand Prix(AGPC) 2019 reviews, undertaken on
March 18, 2019, OTT subscribers struggled to see the win due to buffering and streaming
breakdown. However, the Australian Grand Prix Corporation had its best financial year results in
more than five years. The formula one still faces difficulties in brand recognition.
The first Australian Grand Prix is a corporation that conducts the Formula One races in
Australia around the Melbourne Grand Prix circuit. Most audit report finding follows a general
laid down structure that is supported by most written reports. It includes the introduction, scope
of the audit and the auditor’s opinion. The Australian Grand Prix organizes the Annual
Australian Formula 1 race at the Melbourne Park Circuit. Australian Grand Prix Corporation
(AGPC) is a service industry. In this regard, the target population was the staff responsible for
general admission ticketing, corporate packages and hospitality (Fairley, Tyler, Kellett, and
D'Elia, 2011). This was to help in auditing the processes of the AGPC.
Problems/ issues
Scope of the Audit
The audit was carried out by students in MKTG1053, Service Quality, who acted as
consultants for the AGPC. Results of the audit were presented following the Auditing and
Assurance Standards Board (AUASB) guidelines. Information gathered in the audit were based
on the people, processes, physical evidence, customer relationship management and corporate
handling in the Australian Grand Prix Corporation.
The audit concentrated on the Corporate Hospitality of stakeholders during Formula 1
races in Australia. It reviewed customer experiences in different packages available. It sought to

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find out the service delivery environment and how this environment is suitable for this service
provision. The audit teams carried out tests on the different food and beverage options available
to the customers to understand the value of physical environment to customers. Customer
feedback/complain processes were audited. This was to help the auditing team understand how
customer complaints are dealt with by the organization.
Audit findings
After a careful analysis of the organization's operations, the following audit findings were
made. The process of service delivery for corporate hospitality was ‘messy.' There is a need to
streamline ticketing processes to avoid duplication and loss of clients' data. It was also
established that the hiring and training of new employees have been simplified and was more
effective. Another finding is that the information collected during service delivery by the
employees is used to gain insights into building/maintaining customer loyalty. Also, the
environment around the AGPC is engineered to facilitate service provision. However, it still
faces many challenges, and there is an opportunity for improvement. Lastly, the channels used
by customers to complain, deliver feedback, or seek help are in place to deal with complaining
customers (Morgan, and Taylor, 2017).
Potential theories
Corporate Hospitality in the Australian Grand Prix is a form of service marketing. The
best concept is that of the 8 Ps theory of service marketing namely Price, Product, Process
People, Promotion, Place, Physical evidence, and productivity and quality. It is majorly used for
deciding a marketing strategy, from strategy formulation to actual implementation. It has been
recognized that the profitability of a firm can be impacted by focusing on the bottom-line by

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lowering the cost of production. Often in the service industry, variable costs are more than the
fixed costs and so incremental costs, can have a considerable impact on productivity.
Service-dominant logic (SDL) is another potential service marketing theory. A modern
way of customer value and value creation evaluation. The founders, Vargo and Lusch didn’t
expect this to be published as a workable theory that offers a solution to the daily marketing
problems and issues. It provides a framework for thinking about goods and service. Their work
was based on ‘foundation propositions,’ rather than offer hypotheses that could be tested
empirically.
Recommendations
Provide a taste of what’s to come
It is complicated for prospects to connect with the service until they’ve purchased it
emotionally. Some marketers are afraid of ‘giving away their expertise.' This is an ideal solution
to Formula One’s problem of streaming disruptions.F1 TV should be a permanent site that offers
services all the time and not only during races.
Provide sharable information
Generally, corporate hospitality services have a much longer sales cycle than products.
Besides, there are more shareholders involved. Because of these nuances, clear, shareable printed
and online information is crucial. Sales sheets, checklists and written confirmation of all the
compelling details are essential. Case studies of previous Grand Prix in other cities can be
particularly helpful. This will help tackle the issue ‘does it work’ from the stakeholders’ minds.

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References
Morgan, A. and Taylor, T., 2017. The Australian Sports Industry. In Sports Business in Leading
Economies (pp. 27-64). Emerald Publishing Limited.

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Fairley, S., Tyler, B.D., Kellett, P. and D'Elia, K., 2011. The formula one Australian Grand Prix:
Exploring the triple bottom line. Sport Management Review, 14(2), pp.141-152.