They Got Games
Ah, the Olympics. You’ve finally reached the pinnacle of performance so many dream about, yet so few achieve. The endless hours, weeks, and years spent preparing for this singularly incredible opportunity to show the entire world that you’re the very best at what you do has finally arrived. Some say that simply getting this far is victory enough, but you want to go all the way and perhaps even win the ultimate prize – yes, that’s right, a Reggie Award.
Oh, sure, there will be thousands of amazing international athletes vying for hundreds of medals in 28 sports at the 2000 Summer Olympic Games in Sydney, Australia, this September. But the competition that’s most interesting here and now is among Olympic sponsors, who are racing to win customers with flawless marketing campaigns that they have paid oh, so dearly to conduct.
Featured events include scores of elaborate and widespread promotions, from supporting athletic training to running sweepstakes for trips to Sydney; from tying into Olympic team qualifying trials to hosting the maniacal pin-trading center on site during the Games.
“Two levels come to mind when considering sponsorships,” says Richard Pound, vice president of the International Olympic Committee and chairman of its marketing commission. “From the Olympic perspective, [sponsors] help build excitement and broaden public awareness for the Games. For the sponsors themselves, it’s an opportunity to link their services or products with the Olympic Games.”
An unparalleled halo surrounds the Olympics – even after the host city selection scandal rocked the IOC’s foundation in late 1998 and forced major administrative reforms (March 1999 promo). While many sponsors justifiably questioned the wisdom of continuing their multi-million dollar associations right after the scandal broke, most ultimately determined that the athletes and the ideals embodied by the Olympics had not been tainted. And so the games, both of the athletic and marketing varieties, go on.
Olympic sponsorships mean different things to different companies, and vary largely on a company’s overall marketing objectives. At the high end are those in The Olympic Partners (TOP) program, which was instituted by the Lausanne, Switzerland-based IOC in 1985 to infuse funds throughout the global Olympic “family.”
Now in its fourth cycle, the TOP program grants worldwide, category-exclusive sponsorships over a four-year “quadrennium,” or one cycle of winter and summer Games (TOP IV included Nagano and Sydney; TOP V covers the 2002 Winter Games in Salt Lake City and the 2004 Summer Games in Athens). The 11 TOP IV sponsors will provide $500 million in rights fees and in-kind goods and services tothe IOC. In return, they get usage rights for the Olympic rings, logos, and other trademarks and sponsorship opportunities related to the Games, as well as ties to all 199 National Olympic Committees and their Olympic athletes.
Beyond the TOP program in the U.S., companies can opt to support the Colorado Springs-based United States Olympic Committee and its teams and athletes as either a sponsor, a supplier, or a licensee.
Shooting for gold
TOP sponsor Kodak, Rochester, NY, has developed a multifaceted international program designed to promote its latest films, cameras, processing, and digital services. In Australia (where the company boasts majority market share), Kodak is hosting a promotion that lets consumers buy limited-edition Olympic pins with the purchase of products.
Another Sydney effort requires the Games’ 200,000 volunteers to visit a Kodak retailer to have accreditation photos taken and digitally transferred to a database, thereby providing a personal glimpse of the company’s imaging services. Stores in Sydney are decked out in the Olympic theme, and P-O-P and Olympic packaging are in place throughout the country. Back in the U.S., in-store displays will zoom in on Kodak’s support of U.S. Olympic teams and athletes as the Games get closer. “We want to drive consumers to our retail customers through promotions and take Kodak from behind the counter and into places where consumers are,” says Manny Rivera, director of corporate partnerships. “The Olympics is a good way to really go out and showcase all our technologies and services to the world. We’re using this as a steppingstone to the future [in terms of] of what we’re going to be doing. It’s part of our growth strategy.”
Kodak has maintained a single on-site location at past Games to hawk its products and services. In Sydney, there again will be a central Kodak Image Expo, but the company will have a presence at the competition venues as well. Professional photographers will be directed to the Kodak Imaging Center, a 21,000-square-foot facility where they can have film processed and images scanned and digitally transmitted to media outlets free of charge. Athletes will have access to free cameras, film, and services, including the ability to upload and e-mail digital images to friends and family.
“We’re not just a sponsor,” Rivera likes to say. “We’re making the Olympics happen.”
Everywhere it wants to be
Visa International’s Olympic programs will encompass more than six geographic regions worldwide. But the Foster City, CA-based credit card company is taking a site-based approach, too. The wider goal is to drive use of the Visa card in Australia before, during, and after the Games. “Within the host country, we’ve got quite a few major merchant promotions tied into shopping malls, restaurants, and hotels,” reports Scot Smythe, vp-international event marketing.
As usual, Visa’s sponsorship means it’s the only card accepted at the Games. To drive that point even further, banks are now issuing Olympic-themed cards.
Domestically, Visa is using several usage promotions to pull together its integrated Dream With No Boundaries campaign. In a program that began last October and runs through May 31, cardholders are entered into a Dream Trips Sweepstakes to win one of five Games travel packages for two every time they make a purchase. The sweeps is being touted on Visa’s Web site, via billing statement inserts, and through P-O-P signage.
In another sweeps called Your Dream, Your Team running July through September, 10 winners will receive $5,000 cash, with Visa donating a matching amount to a U.S. Olympic team of the winner’s choice. Visa is also continuing its Reach for the Dream program, which began in 1986 and allocates a portion of overall usage revenues to the U.S. squad. (To date, $7 million has been donated).
“We also will have member bank and merchant-specific promotions,” states Michael Lynch, vp-event and sponsorship marketing for Visa USA. “We’ll work with them to customize programs specific to their marketplace needs to build their profitability.” The latter might include tie-ins with local pre-Olympic competitions or appearances by athletes.
Team building
While part of every sponsorship dollar is funneled to U.S. National Governing Bodies that oversee individual sports such as USA Track & Field, USA Basketball, and USA Cycling, some sponsors polish their halos by providing additional support to aspiring Olympians.
Atlanta-based United Parcel Service, a TOP sponsor, launched its Athlete Training Assistance Program (ATAP) in 1995 to support UPS employees who go for the gold. Although only three of 31 ATAP employee-athletes have actually made it to the Olympics thus far (and haven’t won any medals), it’s still a pet project for the company. Four of this year’s hopefuls are pictured in action on UPS packaging as part of the delivery service’s Sydney program, which is targeted primarily to business customers. Earlier in 2000, UPS touted its worldwide express and international services through a Games-related direct-mail campaign.
General Motors, a sponsor of the USOC, joined with the United Auto Workers union to assist Olympic aspirants in a $3.5 million Team Behind the Team program that will give away select GM models to 100 athletes.
Detroit-based GM was hoping to push eight different brands to their target audiences through the effort, so it didn’t want to simply dole out the cars willy-nilly. The company is using its proprietary Sports & Entertainment tracking poll, a nightly phone survey that racks up 4,000 monthly interviews, to match athletes with autos and, theoretically, match fans of specific sports with the brand they’re most likely to choose. For example, the poll paired demographics of gymnastics enthusiasts with the Pontiac Grand Am and Montana minivan; thus, Pontiac will support USA Gymnastics by sponsoring televised events leading up to the Games. In addition, GM has enlisted a roster of high-profile past Olympians including Carl Lewis, Dorothy Hamill, and Grant Hill to help in the selection process.
When the vehicles (which are being detailed by celebrity fashion designer Joseph Abboud) are finally presented, local GM dealers will host events. “The Team Behind the Team offers GM a platform to raise awareness of the eight `gold medal’ brands associated with the program while we support America’s athletes,” says Phil Guarascio, vp-advertising and corporate marketing.
Jock supporters
The Home Depot is a less-demonstrative sponsor of the USOC, although visitors to the home-improvement chain’s stores will see Olympic signage and employees sporting themed aprons.
“For us, it’s more directed internally,” says Mandy Holton, public relations manager for sports sponsorships. For instance, the company is actively involved in the USOC’s Olympic Job Opportunity Program, which finds jobs for athletes in training who may not receive adequate funding from other sources. Home Depot recently signed on its 100th Olympic hopeful during a press conference at its Atlanta headquarters. The company believes working side by side with athletes will inspire other employees. But retail centers will also trot out their star workers at local cause-related events and sporting activities.
Boston-based John Hancock rides Olympic athletes, too, although the company’s TOP-level sponsorship lets it do so in more celebrated fashion. Hancock is looking to raise the profile of its local salespeople in addition to enhancing awareness for its financial products and services. So it sponsors gymnastics, track and field, figure skating, and other high-profile local events. This year’s 34-city John Hancock Champions on Ice Summer Tour, for example, will feature such past Olympic medallists as Michelle Kwan, Oksana Baiul, and Brian Boitano.
Of course, it wouldn’t be an Olympics without massive on-site marketing efforts. Some sponsors will host hospitality centers and kiosks. Others will be intricately involved in the day-to-day operations of the Games as part of their agreements. While Kodak is e-mailing everybody’s pictures, McDonald’s and Coca-Cola will serve lunch, IBM will manage the computer systems (and host a Surf Shack enabling U.S. fans to e-mail athletes), Samsung will supply the cell phones, and Panasonic will handle the videotape.
Rochester, NY-based Xerox’s name will be ubiquitous: As the Olympics’ official printer, the company’s name will be stamped on everything from media guides to the daily results booklets (which, FYI, can run be as lengthy as 200 pages). “Our mantra is, impressions make a difference,” says Carl Langsenkamp, the company’s manager of public relations.
And as everybody knows, Olympic impressions can last a long time.
The No. 1 spectator sport at the Sydney Games does not award medals. It’s pin-trading, an Olympic event expected to attract upwards of 500,000 of the world’s elite pinheads (as aficionados are affectionately known), as well as newcomers caught up in the growing mania.
Numerous pins are issued for each Olympics by host cities, the media, and various Olympic teams. Sponsors first got on the bandwagon at the 1960 Winter Games in Squaw Valley, CA, when Sylvania Electric designed a pin with a microphone juxtaposed over the five Olympic rings. Since then, corporate pins have become key promotional tools as giveaways, prizes, and with-purchase items. Multiple varieties are produced by each company, including limited-edition pins especially prized by collectors. A recent visit to eBay turned up 336 auctions for Olympic pins, most bearing company logos.
Atlanta-based Coca-Cola is arguably the pin gold medallist. Among the dozens it will circulate for Sydney are different ones for each day of the Games. Those should be highly coveted at the Official Pin Trading Center, which Coke began hosting at the ’88 Winter Games in Calgary and which is now the hottest venue at every Olympics. GM is offering pins on its Web site, and Visa member banks will use them to spur debit card sales. Some corporate pins are only available in Australia, including three from UPS that together form the shape of the Land Down Under.
