A global sports brand show
Review by Leong Hung Yee
THE Olympics, a once-in-every-four-years event that celebrates sports, has been likened to a global brand show. It is the biggest sports marketing festival, attracting the attention of marketers from hundreds of companies.
Corporations fully recognise the fact that associating themselves with a revered Olympian and the tradition of the games is one way of winning over consumers.
In the book, Davis examines and explains what makes companies scramble to become sponsors for this competitive event and the many tangible and intangible returns they have reaped from their investments. For countries hosting the Olympics, it is no less significant. For Beijing which hosted the event in 2008, it was touted by observers as a coming-out party for China – to put their best foot forward on a global stage.
“The Olympics are unique because although they are about the athletes and transcend national boundaries, nationalism also plays an important role,” Davis writes.
The event is still the crowning glory for any athlete, as well as the businesses which are able to associate themselves with the pinnacle of sport and sporting values.
Davis, who wrote the book before the Beijing Olympics was held, speculated that the Tibet protests could have a detrimental impact on sponsors. “So far, such a severe outcome has not occurred, undoubtedly a by-product of the Olympic brand to stand for something above typical controversies.”
It’s that resounding brand value, what Davis calls the “halo” effect, based on tradition and universally understood values, that reach across cultural and political divides.
He highlights several successful corporate sponsors of the Olympics, including Coca-Cola, Visa and Lenovo.
Coca-Cola is the longest continuous sponsor of the games, beginning at the 1928 Amsterdam games.
Today, Coca-Cola is best known for the Olympic torch relay crisscrossing the globe.
He praises Coca-Cola’s long-term commitment in building sustainable value through sponsorship.
“If Coke were focused merely on selling caramel-flavoured, carbonated sugar water, then it is likely that the consumer interest would be diminished, as would investor interest and, ultimately, brand value,” he says.
“Instead, Coca-Cola has been a rigorous brand builder over the decades, choosing to associate its name and trademark products with consumer lifestyles. Coke’s ongoing Olympic support seems, in retrospect, a natural fit and a logical brand association.”
Similarly, Visa has been able to reap the benefits of its Olympic sponsorship that started in 1986, when it was one of three main competitors in the payment services industry, along with MasterCard and American Express.
The company cited building awareness as one of its objectives with its Olympic association, and it has achieved that over the years through strategic advertising, promotions and corporate relation strategies.
In the 2004 Olympics, Visa had garnered 87% consumer awareness, the highest level of awareness among all sponsors, Davis points out. Visa has also extended its Olympic success into other sports sponsorships, including winning the sponsorship of the 2010 and 2014 World Cups from MasterCard.
For companies who make the commitment to sports sponsorships, no doubt, the gains can be enormous, although it does come with a high cost. Olympic sponsorships do not come cheap at an average investment of about US$200mil. But the value as a long-term commitment must be weighed against using the money for other marketing activities.
This book is a good resource and practical guide for organisations evaluating Olympic sponsorship.
The best part of the book is the check-list section of how to go about your sponsorship programme and how to evaluate whether you need to be a sponsor and its pros and cons. This book is worth its weight in gold medals and is a helpful reference for businesses preparing themselves to be sponsors of the next Olympics!
