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The Fast Track to Marketing in China Amin khatibi

This research delves into the strategic benefits and marketing opportunities Olympic sponsors gain, particularly in China. Compare multinational companies' financial support levels, key decision factors, and non-monetary benefits evaluation.

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The Fast Track to Marketing in China Amin khatibi

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  1. 2008 Beijing Olympics The Fast Track to Marketing in China Amin khatibi

  2. 2008 Olympic Sponsorship:Research Objectives 1. بررسي تاثيرحمايت مالي از المپيك بر كمپانيهاي چند مليتي 2.بررسي مزاياي بازاريابي وفرصتهايي كه حاميان المپيك براي خود فراهم ميكنند بويژه در زمينه اي خاص از بازار چين. 3. مقايسهمیزان حمايت مالي شركتها با اهداف استراتژيك متنوع 4. شناخت فاكتورهاي متعددي كه در تصميم گيري حاميان براي حمايت مالي تاثير گذار هستند .

  3. 2008 Olympic Sponsorship:Primary Research Questions 1. تحت چه شرايطي حاميان بيشترين منافع را كسب ميكنند ؟ -جستجوي فاكتورهاي استراتژيك موثر بر منافع حاميان مالي -تمركز روي چين و جامعه بين المللي 2. آيا ميزان دقيق هزينه ها و منافع حاميان قابل تعيين است ؟ -بررسي فاكتورهايي كه از نظر اقتصادي قادر به تعيين هزينه و منفعت هستند .

  4. 2008 Olympic Sponsorship:Hypotheses 1.حمايت مالي از المپيك براي شركتهاي كه در بازار چين فعاليت ميكنند بسيار سود آورتر از شركتهايي است كه فعاليت ندارند . 2. منافع حمايت مالي براي شركتهايي كه به دنبال شهرت جهاني هستند بيشتر است . 3. در انتهاي منافعقابل اندازه گيري ‘ ارتقائ شديد مالي قرار دارد كه شركتهاي حامي پس از اعلام نام آنها از طريق بازيهاي المپيك تجربه ميكنند . 4.اندازه گيري كمي منافع غيرمالي بسيار مشكل است ولي ما كنجكاويم بدانيم كه حاميان چگونه نگرشي نسبت به اين مشكل دارند. 5.به علت جايگاه بازيها وجو اقتصادي چين حمايت مالي از المپيك شبكه منفعتي مشخصي را براي حاميان فراهم ميكند .

  5. 2008 Olympic Sponsorship:Olympic Marketing History 1984 Los AngelesSummer Games • Prior to 1984, Olympic host cities were forced to underwrite the cost overruns. • 1976 Summer Games left Montreal saddled with US$1 billion in debt (repayment to be completed in 2006) • 628 sponsors and suppliers paid a total of US$7 million • For 1984 Summer Games, Los Angeles was the only serious bidder • U.S Olympic Games Organization head Peter Ueberroth proposed a new Olympic sponsorship model • aggressively marketing Olympics should yield a profit for organizers • model was heavily supported by a few dozen large sponsorships • Ueberroth’s plan succeeded, and the 1984 Summer Olympics yielded a mammoth profit of US$223 million

  6. 2008 Olympic Sponsorship:TOP Sponsors, Exclusive Product Categories Life Insurance/Annuities Information Technology Equipment Film, Photographics and Imaging Timing, Scoring, and Venue Results Services Non-Alcoholic Beverages Retail Food Services Audio, TV, Video Equipment Electricity Supply Protection Services Information Technology Services Consumer Payment Systems Wireless Communication Management

  7. 2008 Olympic Sponsorship:Prior Research • Research into Olympic Sponsorship is highly limited • No consistent methodology or conclusive evidence among studies -تلاشهاییجهتمشخصکردنمعیارهایکلیدیازقبیلفروشهایفزایندهیاتغیراتدرآگاهیهاازimage وbrandانجامشدهاست . -کاهشهایغیرعادیدرقیمتسهامحامیانپسازاعلامنامآنهابهعنوانحامیانالمپیکنتیجهگرفتهشدبازیهایالمپیک 1996 تاثیرمنفیبرمنافعسهامدارانداشتهاست . (Farrell & Frame, 1997)

  8. 2008 Olympic Sponsorship:Prior Research -یافتههایتحقیقدیگرحاکیازتاثیرمثبتحمایتمالیازالمپیکبراهدافاستراتژیکشرکتهاازقبیلافرایشآگاهیهااز brandوهمراهکردنارزشهایخاصیباbrandشرکتوتوسعهروابطبامشتریانو…انگیزشکارمندانوتوسعهشهرتوخوشنامیکمپانیبهعنوانیککمپانیمسولیتپذیروموردعلاقهاست . (Osmon, 2004). -درکل, اکثرمطالعاتبهتاثیرمثبتحمایتمالیازبازیهابراییککمپانیدستیافتهاند(Pope, 1998).

  9. 2008 Olympic Sponsorship:Four Identifiable Cost Categories • Direct Cost of Obtaining Sponsorship Rights • Promotion Costs • Costs incurred by a sponsor while promoting its sponsorship of the Olympic Games. • Value-In-Kind Contributions • Goods and services provided directly to the Olympic committee • Opportunity Costs • Costs of foregoing a chance to sponsor another event • Highly speculative estimates

  10. 2008 Olympic Sponsorship:Costs are Quantifiable by Sponsors • Direct Cost of Obtaining Sponsorship Rights • Determined by IOC. Not officially released to the public • Estimates ranges from US$40 – 60 million Ex: Lenovo paid ≈ US$65 million in sponsorship fee Exception: Omega only provides Value-In-Kind contributions • Promotion Costs • Marketing and advertising costs including staged events that showcase athletes and corporate banners. • Determined by sponsors. • Usually defined as multiples of direct cost of sponsorship fees (i.e. McDonald’s: 1x, Lenovo: 2 to 3x, Coke: 9x)

  11. 2008 Olympic Sponsorship:Costs are Quantifiable by Sponsors Ex: Lenovo could spend up to US$130 – US$195 million Ex: VISA to promote credit education programs to help Chinese to understand benefits of using credit cards • Value-In-Kind Costs • Costs depend on products and/or services rendered by the sponsors • Ex: Lenovo to provide, test, install, and maintain at least 13,500 PCs at the Games • Ex: McDonald’s fed more than 300,000 athletes, coaches, officials and spectators at the 2004 Games in Athens

  12. 2008 Olympic Sponsorship:Sponsorship Benefits: Key Findings • No consistent methodology used by marketing managers to evaluate the benefits of Olympic sponsorship -نمیتوانباقطعیتتغییراتدرفروشرابهدلایلیخاصازقبیلترویجحمایتمالیازبازیهانسبتداد . -نمیتوانبهصورتسادهلوحانهایگفتحامیالمپیکخودعوایدمالیخاصلازاینسرمایهگذاریراتشخیصمیدهد . -دراینرابطهفرضیاتمانادرستبود .

  13. 2008 Olympic Sponsorship:Sponsorship Benefits: Key Findings • Benefits are not easily quantifiable • Interviews with TOP Sponsors’ executives reveal that non-monetary (brand) benefits are just as important as monetary ones • Companies’ strategic objectives are most important determinant of perceived benefits

  14. 2008 Olympic Sponsorship:Primary Strategic Benefits 1.Develop international brand credibility for a local company Ex. Lenovo showcases its firm as a world-class PC player in hopes of driving global sales. 2. Evolve global brand identity. Ex. McDonald’s leverages Olympic audience to launch “balanced” lifestyle platform to combat global negative sentiment toward the restaurant provider.

  15. 2008 Olympic Sponsorship:Primary Strategic Benefits 3.Penetrate a new market. Ex. Visa wants to increase credit card usage in China through educating the Chinese consumer and increasing awareness of the product with sponsorship advertising.

  16. 2008 Olympic Sponsorship:Conclusions The benefits of Olympic sponsorship for a firm are real and substantial Affiliation with the positive brand image and values of the Olympic Rings Exclusive marketing rights for one of the preeminent international events Launching point for entry into new markets or local/international strategies Scarce resource which provides distinct advantages over competitors Access to key strategic relationships within government and industry • The costs associated with the sponsorship are also high • Acquiring the sponsorship (i.e., sponsorship fee, value-in-kind, etc.) • The Olympic marketing campaign itself • Additional costs incurred to realize the long-term benefits of the sponsorship BUT…

  17. 2008 Olympic Sponsorship:Conclusions Sponsorship Benefits – Sponsorship Costs = Net Value to the Firm • Quantifying benefits • from sponsorship is • difficult • No clear metrics to measure direct effects of sponsorship • Dependent on strategic use of sponsorship • No conclusive findings about sponsorship value • Several hypothesized calculation methodologies applied in the past • Both intangible benefits and dilutive effects exist • The computation of • costs should be easily determinable • May be measured internally but not transparent to the public • Indirect costs far exceed direct sponsorship fee Firm management must determine how the Olympic sponsorship can be utilized to further a specific strategy in order to realize the maximum return from its investment.

  18. 2008 Olympic Sponsorship:Conclusions Existing Position Market Strategy Target Goal China Example Global expansion for a local brand International penetration into a local market International platform for strategic change

  19. 2008 Beijing Olympics Questions?

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