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Copyright © 2009 Nelson Education Ltd. All rights reserved. Olympic Marketing Chapter 17.

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Presentation on theme: "Copyright © 2009 Nelson Education Ltd. All rights reserved. Olympic Marketing Chapter 17."— Presentation transcript:

1 Copyright © 2009 Nelson Education Ltd. All rights reserved. Olympic Marketing Chapter 17

2 Copyright © 2009 Nelson Education Ltd. All rights reserved.2 To appreciate the history of Olympic marketing.To appreciate the history of Olympic marketing. To understand the place of television in the Olympic Movement.To understand the place of television in the Olympic Movement. To understand the sponsorship (TOP) program and its significance for the Olympic Movement.To understand the sponsorship (TOP) program and its significance for the Olympic Movement. To understand the role of branding in the Olympic Movement.To understand the role of branding in the Olympic Movement. OBJECTIVES

3 Copyright © 2009 Nelson Education Ltd. All rights reserved.3 The early years ( ) Commercialism: corporate interests that penetrate the Olympics (e.g., sponsorship, broadcasting, licensing) for commercial purposes. Television and its impact on commercialization ( ) Communication satellites led to growth of television industry internationally and strengthened its ability to act as global outlet of the Olympic ideal. HISTORY OF OLYMPIC MARKETING

4 Copyright © 2009 Nelson Education Ltd. All rights reserved.4 Financial stakes of hosting the Olympic Games (1976 Montreal) Including interest paid on the debt and additional money required to complete facilities after the games the Olympic debt totaled $2.729 billion. IOC’s opening to marketing (mid 1970’s) Montreal three tier sponsorship programMontreal three tier sponsorship program Rule 26: Full professionalization of GamesRule 26: Full professionalization of Games HISTORY OF OLYMPIC MARKETING

5 Copyright © 2009 Nelson Education Ltd. All rights reserved.5 Beginning of a new era – L.A. Games (1984) “ turning point for the Olympic movement representing the development of a structured partnership between commerce and sport.” (Stauble, 1994)“ turning point for the Olympic movement representing the development of a structured partnership between commerce and sport.” (Stauble, 1994) First time in history the Games were totally organized and funded by private enterpriseFirst time in history the Games were totally organized and funded by private enterprise Fewer sponsors paying more money to be involved with the Olympic GamesFewer sponsors paying more money to be involved with the Olympic Games HISTORY OF OLYMPIC MARKETING

6 Copyright © 2009 Nelson Education Ltd. All rights reserved – New Sources of Finance Commission.1982 – New Sources of Finance Commission – TOP (The Olympic Program) first worldwide sponsorship program.1985 – TOP (The Olympic Program) first worldwide sponsorship program – IOC creates its own marketing department.1989 – IOC creates its own marketing department. Since 1980 Olympic Marketing has generated revenue of over US$10 billion.Since 1980 Olympic Marketing has generated revenue of over US$10 billion. OLYMPIC MARKETING

7 Copyright © 2009 Nelson Education Ltd. All rights reserved.7 Olympic Games Moscow US$101 millionMoscow US$101 million Beijing 2008 – US$1.7 billionBeijing 2008 – US$1.7 billion Winter Olympic Games Lake Placid 1980 – US$21 millionLake Placid 1980 – US$21 million Torino 2006 – US$832 millionTorino 2006 – US$832 million Countries broadcasting games: Moscow 1980 – 111Moscow 1980 – 111 Sydney Sydney OLYMPIC BROADCAST REVENUES

8 Copyright © 2009 Nelson Education Ltd. All rights reserved.8 IOC FORMULA TO MAXIMIZE REVENUE Increase in number of countries broadcasting Games Bigger television audience – higher ratings Higher rights fees from Olympic sponsors Higher cost for advertising on Olympic broadcast Higher fees for broadcast rights IOC maximize revenue

9 Copyright © 2009 Nelson Education Ltd. All rights reserved.9 Agreements based on a quadrennial structure (four years commitment)Agreements based on a quadrennial structure (four years commitment) TOP partner companies are multinational organizations that provide direct support, sponsor services or expertise for staging the games.TOP partner companies are multinational organizations that provide direct support, sponsor services or expertise for staging the games. TOP SPONSORSHIP PROGRAM

10 Copyright © 2009 Nelson Education Ltd. All rights reserved.10 Olympic Symbols are well recognized around the world.Olympic Symbols are well recognized around the world. Symbols have contributed to making Games a celebration of values and aspirations.Symbols have contributed to making Games a celebration of values and aspirations. Sponsoring corporations hope such Olympic brand values will transfer to their own brand.Sponsoring corporations hope such Olympic brand values will transfer to their own brand. OLYMPIC BRAND

11 Copyright © 2009 Nelson Education Ltd. All rights reserved.11 Any action perceived to dilute, confuse or betray ideals will damage the brand.Any action perceived to dilute, confuse or betray ideals will damage the brand. IOC initiated intensive and extensive brand studies in 1998 and after every Games since.IOC initiated intensive and extensive brand studies in 1998 and after every Games since. IOC’s responsibility to keep the Games a visible and strong investment choiceIOC’s responsibility to keep the Games a visible and strong investment choice OLYMPIC BRAND

12 Copyright © 2009 Nelson Education Ltd. All rights reserved.12 The five interlocking rings is the symbol representing the Olympic brand.The five interlocking rings is the symbol representing the Olympic brand. Olympic brand derives power from ability to combine the ideals of the Olympic Movement with the intensity of its sport values.Olympic brand derives power from ability to combine the ideals of the Olympic Movement with the intensity of its sport values. WHAT IS THE OLYMPIC BRAND?

13 Copyright © 2009 Nelson Education Ltd. All rights reserved.13 Essence of Olympic brand consists of three pillars: Striving for SuccessStriving for Success Celebration of CommunityCelebration of Community Positive Human ValuesPositive Human Values Three communication platforms: ExcellenceExcellence FriendshipFriendship RespectRespect WHAT IS THE OLYMPIC BRAND?

14 Copyright © 2009 Nelson Education Ltd. All rights reserved.14 Crises: DopingDoping CorruptionCorruption Event fixingEvent fixing Olympic systems inability to protect exclusivity.Olympic systems inability to protect exclusivity. Cluttered Olympic landscape.Cluttered Olympic landscape. Lack of brand consistency.Lack of brand consistency. THREATS TO THE OLYMPIC BRAND

15 Copyright © 2009 Nelson Education Ltd. All rights reserved.15 As the owner it is the IOC’s responsibility for educating the Olympic family on the meaning and importance of brand management.As the owner it is the IOC’s responsibility for educating the Olympic family on the meaning and importance of brand management. Consistency is the essence of a great brand.Consistency is the essence of a great brand. An integrated public relations program is also important.An integrated public relations program is also important. MANAGING THE OLYMPIC BRAND

16 Copyright © 2009 Nelson Education Ltd. All rights reserved.16 Of all NOCs, the COC has one of the most sophisticated marketing programs.Of all NOCs, the COC has one of the most sophisticated marketing programs. Canada has hosted many successful eventsCanada has hosted many successful events Brand management is a key component of COCs operations.Brand management is a key component of COCs operations. OLYMPIC MARKETING IN CANADA

17 Copyright © 2009 Nelson Education Ltd. All rights reserved.17 CBC has televised Games since 1956 (CTV- 1988, 1994 Winter Olympics, 1992 Olympics).CBC has televised Games since 1956 (CTV- 1988, 1994 Winter Olympics, 1992 Olympics) and 2012 awarded to an alliance of CTV and Rogers.2010 and 2012 awarded to an alliance of CTV and Rogers. IOC strategy to get a diversification of partners or multiple broadcasters thus maximizing hours broadcast.IOC strategy to get a diversification of partners or multiple broadcasters thus maximizing hours broadcast. OLYMPIC BROADCASTING IN CANADA

18 Copyright © 2009 Nelson Education Ltd. All rights reserved.18 Salt Lake City men’s hockey final drew 9 million viewers, an all-time record for a TV program in CanadaSalt Lake City men’s hockey final drew 9 million viewers, an all-time record for a TV program in Canada On average Canadians are big consumers of the Olympic Games.On average Canadians are big consumers of the Olympic Games. Torino 2006: 313 hours of coverage on CBCTorino 2006: 313 hours of coverage on CBC OLYMPIC BROADCASTING IN CANADA

19 Copyright © 2009 Nelson Education Ltd. All rights reserved.19 VANOC has developed the most sophisticated and successful marketing program in Canada.VANOC has developed the most sophisticated and successful marketing program in Canada. Includes:Includes: SponsorshipSponsorship Licensing and merchandisingLicensing and merchandising TicketingTicketing VANOC MARKETING

20 Copyright © 2009 Nelson Education Ltd. All rights reserved.20 Decided to go for quality over quantity.Decided to go for quality over quantity. Limit number of domestic sponsors to 50 partners in three tier system.Limit number of domestic sponsors to 50 partners in three tier system. Tier I: National partners, also involved in own the podium, actively leveraging commitment.Tier I: National partners, also involved in own the podium, actively leveraging commitment. Tier II & III: provide products and services that will help VANOC stage the Games.Tier II & III: provide products and services that will help VANOC stage the Games. VANOC SPONSORSHIP

21 Copyright © 2009 Nelson Education Ltd. All rights reserved.21 Success of licensing lies in ability to control the brand and create product authenticity.Success of licensing lies in ability to control the brand and create product authenticity. VANOC goal to sell out every single Olympic and Paralympic event.VANOC goal to sell out every single Olympic and Paralympic event. To do this they must sell a total of 1.8 million tickets.To do this they must sell a total of 1.8 million tickets. VANOC LICENSING & TICKETING

22 Copyright © 2009 Nelson Education Ltd. All rights reserved.22 VANOC has hired a number of individuals devoted to brand protection.VANOC has hired a number of individuals devoted to brand protection. Created comprehensive stakeholder education program.Created comprehensive stakeholder education program. Anti-ambush legislation (Bill C-47).Anti-ambush legislation (Bill C-47). BRAND PROTECTION

23 Copyright © 2009 Nelson Education Ltd. All rights reserved.23 Provides additional funding to high-performance athletes.Provides additional funding to high-performance athletes. Aims to make Canada number 1 nation in total medal won at 2010 Games.Aims to make Canada number 1 nation in total medal won at 2010 Games. Money committed from federal and provincial (BC) governments and sponsorship and fundraising.Money committed from federal and provincial (BC) governments and sponsorship and fundraising. OWN THE PODIUM

24 Copyright © 2009 Nelson Education Ltd. All rights reserved.24 COC must nurture long-term relationships with sponsors.COC must nurture long-term relationships with sponsors. After Games all sponsor relationships revert back to COC.After Games all sponsor relationships revert back to COC. Sponsors may feel they have tried every idea, developed every promotion and created every advertisement they possibly can.Sponsors may feel they have tried every idea, developed every promotion and created every advertisement they possibly can. BEYOND VANOC

25 Copyright © 2009 Nelson Education Ltd. All rights reserved. Questions?


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