Introduction to Olympic Marketing

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  • Why? Because IOC has become a multi-million “business” starting from amateur sport
  • Amount of sponsorship dollars that the Olympics generate ensure the IOC has a vested interest in maintaining & expanding the Olympic brand.
  • Definition A distinguishing name and/or symbol intended to identify the goods or services of either one seller or a group of sellers, and to differentiate those goods or services from those of a competitor.
  • Excellence - sporting excellence inspiring spectators to do more and want to do better Respect for yourself: having confidence in yourself and your ability to achieve, Respect for others: show consideration for others, value them Respect for the rules: not cheat (not do drugs, etc) Provide a positive example of non-conflict behavior (show counter-arguments)
  • Each of these positioning options is closely related, while drawing upon slightly different sets of emotional equities
  • Excellence - sporting excellence inspiring spectators to do more and want to do better Respect for yourself: having confidence in yourself and your ability to achieve, Respect for others: show consideration for others, value them Respect for the rules: not cheat (not do drugs, etc) Provide a positive example of non-conflict behavior (show counter-arguments)
  • The IOC began brand research at end of 1990s to define the Olympic Brand Qualitative and quantitative studies Sample from over sixteen countries Time-frame: 1999-2006 Information provides resource for the IOC and sponsors, broadcasters, NOCs and OCOGs to use as part of the planning of marketing activities Studies showed
  • In some ways, sponsors feel that they are taking « hostages » by broadcasters and in the end, contribute to the profit generated by the IOC While sponsors have first right of refusal on advertising during Games, they must negotiate with each official broadcaster from different regions around the world (i.e. CBC, NBC, EBU, etc.)
  • “ Take away sponsorship and commercialism from sport today and what is left? A large, sophisticated finely-tuned engine developed over the period of 100 years – with no fuel” (Pound,1996).
  • entitlement to an event Right to special designation Sponsorship includes various marketing and promotional components Many advantages are sought by sponsors including: Drive sales Image transfer Product differentiation Heightened visibility Hospitality opportunities Reach a particular target market
  • Indirectly: International Federations World Championships Other world series, grand prix, etc. National Sport Federations National Championships National Teams Athletes Individual likeliness Olympian, Olympic medallist
  • Overall cost of association with TOP program can be more if one considers cost of leveraging (estimated 3:1 – 5:1). Reasonable to assume that Olympic sponsors spent about $1.5-2 billion (US) in Olympic related marketing activities for 2004 Atlanta games
  • -> Sponsors seek consumers’ attention … Olympic Games create attention -> Attention is a pre-requisite for awareness and image trasnfer!
  • Research was undertaken by IOC during 2000, 2002, 2004 and 2006 aiming to find out among others, the subjects’ interest in Olympic Games, their ability to distinguish and recall sponsors or attitudes towards sponsorship. Sample - over 3000 subjects recruited from US, Canada, Germany and rance. Results showed: High interest in Olympic Games but strong competition from football and hockey depending on country Difficulty in differentiating between sponsors and non-sponsors Low top of mind recall for most sponsors In general, comfortable with sponsorship and understand its role 40-50% willing to support, increase by 20%+ if clear that support helps athletes in a tangible way Intent to purchase is low Not aware of ambush marketing as consumer do not really care about issue – when told about it, attitudes differ depending on country
  • Protect Olympic intellectual property Protect sponsor rights Protect revenue base Contain commercialism Reduce ambush marketing Uphold Olympic Charter
  • athlete image use - discussion Broadcast monitoring - brand protection - talk about YouTube Clean venues - not always easy as there are cases when some arenas are built with sponsor money On-site sponsor rights - IOC’s aim is to m aintain the unique nature of Partner on-site marketing rights via showcasing and concessions (sponsor area in olympic village); this is achieved by having the IOC revieweing the partner activities during Games-time and by educating the staff and volunteers (raise awareness of Olympic rules) Hospitality -IOC need to p rotect Partners’ exclusive right to Games-time hospitality meaning that only Olympic sponsors can undertake hospitality activities (protect by monitoring ticket sales) Host city - partner right protection is extended throught the city; control on other spaces is required; this includeds but isn’t limited to airports, airspace, outdoor advertising….--> olympic brand protection laws are passed by host countries and separate partnerships with airports/train stations are signed Ambush advertising - olympic sponsors should be protected from competitor hijacking (special legislation together with purchase of all outdoor advertising space on olympic route can be purchased during games time); liaisons with IOC and olympic sponsor offices also needed Counterfeit - licensing, trade mark legislation,
  • -> Sponsors seek consumers’ attention … Olympic Games create attention -> Attention is a pre-requisite for awareness and image trasnfer!

Transcript

  • 1. Olympic Marketing Ana ADI
  • 2.
    • Offer a review of Olympic Marketing focusing especially on Olympic Broadcasting and Olympic Sponsorship
    • Present and discuss the attributes of the Olympic brand
    • Analyze and discuss the Olympic brand equity
    This lecture aims to:
  • 3.
    • “ The emotional link the consumer feels with [the] athletes, their commitment to the Olympic values, combined with the pageantry and glory that are the Olympics” (Kane 1999)
    Olympic Brand
  • 4.  
  • 5. Source: freshpeel.com
  • 6.
    • Excellence
    • Respect
    • Friendship
    Olympic Brand Dimensions
  • 7.
    • Olympic Rings
    • Olympic Flag
    • Olympic Anthem
    • Olympic Flame (and Torch)
    Olympic Symbols
  • 8.
    • Hope
    • Dreams and Inspiration
    • Friendship and Fair-play
    • Joy in Effort
    Olympic Brand Attributes
  • 9.
    • Positive values
    • Community-centered experience
    • Striving for success
    Olympic Brand Mix
  • 10.
    • Watch Chicago 2016 Bid logo video:
    • http://www.youtube.com/watch?v=nBX9AqfBFDc&feature=channel_page
  • 11.
    • Revenue generating programs including broadcasting , sponsorship , ticket sales and licensing.
    • Marketing of organizations involved in the Olympic Games (IOC, NOCs, OCOGs)
    Olympic Marketing
  • 12. Sources of revenues Source: olympic.org, 2009
  • 13. Source: olympic.org, 2009
  • 14. US$ Overall Olympic Revenues Source: Seguin, IOA, 2008
  • 15. Broadcasting Revenues Source: Adi, IOA, 2008
  • 16.
    • 1960: mainly OCOG
    • 1970s: OCOG negotiates (IOC gets share of revenue)
    • 1980s: OCOG + IOC negotiate
    • 1990s: IOC negotiates in contact with OCOG
    • 2000s: IOC negotiates alone (other rights come into play)
    Olympic Broadcasting Evolution
  • 17.
    • Currently the IOC negotiates media rights
      • Include broadcasting and new media
      • For Beijing 2008, a separate deal was signed with YouTube
      • Efforts are made to negotiate with media-conglomerates
    Olympic Broadcasting Evolution
  • 18.
    • What are in your opinion the challenges with which Olympic Broadcasting is confronted?
  • 19.
    • Cost of Olympic advertising
    • Cost of activate sponsorship schemes
    • Emergenece of new-media
    • New approach to broadcasting rights
  • 20.
    • 70s-80s- the Games were confronted with bankruptcy, disunity and political challenges
    • Additional source of revenue
    • Brand endorsement/ Image transfer
    Olympic Sponsorship
  • 21.
    • use the Olympic logo, trademark, name
    • exclusively associate with the Olympic brand
    • conduct special promotions
    Olympic Sponsors have the right to:
  • 22.
    • TOP Program
      • IOC /OCOG/ NOC Partners
      • World-wide and exclusivity based
      • Launched in 1985
    • OCOG Marketing
      • Host country offers exclusivity
      • OCOG and partners, sponsors, licensees, etc. and host NOC
    • NOC Marketing
      • National exclusivity is offered to all sponsors of a NOC
  • 23. 12 TOP Partners (7 from USA) Calgary & Seoul Albertville & Barcelona Lillehammer & Atlanta Nagano & Sydney Salt Lake & Athens Turin & Beijing TOP Program Rights Source: Seguin, IOA, 2008
  • 24.
    • Central guidelines of Olympic sponsorship
    • Exclusivity
    • Low number of sponsors (avoid clutter)
    • Long-term relationships
    • Clean venues
    Olympic Sponsorship
  • 25. Photo credit: Flickr -BSR-12 Photo credit: Flickr Sheep“R”US
  • 26.  
  • 27.
    • What are the challenges and issues that you believe Olympic Sponsorship is facing?
  • 28.
    • Consumer interest
    • Consumer awareness
    • Campaign activation
    • Ambush marketing
    • Ethical, business and legal (depending on each country)
  • 29. Source: Seguin, IOA, 2008
    • Olympic brand management & protection
    • Worldwide public relations programs- full integration of all marketing programs
    • Develop sponsor recognition program
    • Olympic brand protection
    • Development of a program, in collaboration with sponsors, to protect exclusivity
    • Educate NSOs and OGOCs
    • Integrate television into sponsorship programs
    • Establish the structure of sponsorships and sponsorship contracts
    INTERNATIONAL OLYMPIC COMMITEE ROLES AND RESPONSIBILITIES ORGANIZATION
  • 30. Source: Seguin, IOA, 2008
    • Develop and implement public relations programs that adhere to those of the IOC
    • Develop a promotional mix, including sponsorship that adheres to that of the IOC
    • Protect the Olympic Brand
    • Develop and administer education programs for specific target markets
    • Work with sponsors on business strategy
    • Sponsor recognition program
    • Establish the structure of national sponsorship programs
    NATIONAL OLYMPIC COMMITEE ROLES AND RESPONSIBILITIES ORGANIZATION
  • 31. Source: Seguin, IOA, 2008
    • Activate their sponsorship to ‘claim their space’
    • Establish specific objectives of sponsorship
    • Work with managers in the Olympic family and co-sponsors in order to establish common communications strategies and plans to prevent ambush marketing
    • Develop a leveraging program that utilizes the Olympic brand and its associated values
    • Include athletes in communications and messaging
    SPONSORS ROLES AND RESPONSIBILITIES ORGANIZATION
  • 32.
    • Why would the Olympic Brand need protection?
    • Whom should the IOC protect?
    Olympic Brand Protection
  • 33.
    • What does it involve?
      • Broadcast and Internet Monitoring
      • Athlete Image Use
      • Clean Venues
      • On-site Sponsor Rights
      • Host City
      • Ambush Advertising
      • Counterfeit Merchandise
    Olympic Brand Protection
  • 34.
    • On-screen infringement
    On-screen infringement and ambush
  • 35. Photo credit: BusinessWeek Video: Nike Courage Ad
  • 36. “ No kind of demonstration or political, religious or racial propaganda is permitted in the Olympic areas. No form of publicity shall be allowed in and above the stadia….commercial installations shall not be allowed in the stadia…” Olympic Charter , 2007, Rule 61
  • 37. “… no competitor who participates in the Olympic Games may allow his person, name, picture or sports performance to be used for advertising purposes during the Olympic Games.” Olympic Charter , 2007, Rule 45
  • 38. Let’s discuss: - the case of athletes entering the Olympic arena wearing commercial symbols - the case of athletes entering the Olympic arena wearing non-commercial, political symbols
  • 39.  
  • 40.  
  • 41.  
  • 42.
    • How should the IOC address Olympic marketing online?
    • Should sponsorship and broadcasting rights merge?
    • How to maintain the attention and interest of people (especially youth) in the Olympics?
    • How to monetize the Olympics online?
    Questions