International Marketing of the Winter Olympics

International Marketing of the Winter Olympics

Properly planned and executed, hosts of the Winter Olympic Games stand to gain a great deal in terms of investments in infrastructure, the multiplier effect of travel and tourism, and the enhanced prestige on the global stage that goes hand in hand with hosting these international games. Improperly administered, though, hosts and corporate sponsors of the Winter Olympic Games are faced with some staggering economic losses, as well as the damage that failures cause to the hosts' prestige and legitimacy in the international community. Therefore, identifying opportunities for improving the marketing of the Winter Olympic Games represents a timely and valuable enterprise. To this end, this paper provides a review of the literature concerning the marketing of the Winter Olympics Games drawing on a relevant case study as well as peer reviewed and other scholarly sources. A discussion concerning the key international market entry issues in the case study and salient conclusions using the 4 Ps is followed by a summary of the research and important findings concerning the international marketing of the Winter Olympic Games in the conclusion.

Review and Analysis

Background to the Problem

Things have certainly changed since the Olympics were first staged in ancient Greece. According to Smith (1976), "The earliest Olympics were religious festivals. The athletes swore to obey the rules, the judges swore to be fair, and the priests sacrificed a pig. A winner was crowned with a wreath of wild olive from a sacred grove" (p. 112). By very sharp contrast, the Olympics Games today are a global event that draws audiences in the hundreds of millions and revenues in the billions of dollars even without a pig being sacrificed. In this regard, Smith adds that, "The Olympics have grown so big and command such wide attention that they have become an irresistible attraction to any individual or group with a statement to make to the world" (p. 109). One global corporation that found the Winter Olympic Games irresistible for making a statement to the world about their product was Adidas, and these issues are discussed further below.

Marketing the Winter Olympic Games by Adidas

The Winter Olympic Games appeared to be a perfect match for the marketing executives at Adidas because they represented a global venue in which to promote their products. For instance, according to Elam and Hamakawa (2008), "Adidas had for some time been successful at creating an overarching global brand image for its company, while allowing individual product lines to have unique identities within that brand" (p. 2). Likewise, the Olympic organizers were struggling to formulate a brand for the games that was consistent with its three major themes of excellence, friendship and respect (Elam & Hamakawa, 2008). In this regard, Elam and Hamakawa (2008) report that, "Similarly, the Olympics needed to take control of its overarching brand image, which had not yet been clearly established. Each the Organizing Committee

for the Olympic Games was allowed to put its own 'spin' on its particular edition of the Olympic Games, but those customizations had to be consistent with and uphold an overarching Olympic global brand image" (p. 2). There were other issues involved as well that affected the branding of the Games. For instance, Elam and Hamakawa (2008 add that, "In addition, each host city is permitted to personalize the image of its Olympic Games so that those Games 'belong' to the host city without compromising the overarching global image of the brand" (p. 2).

Nevertheless, it is clear that the marketing executives at Adidas found their brand was highly congruent with the three major themes of the Olympic Games as well as its core focus: "Athletic excellence has always been a core element of the Olympic Games, inspiring spectators -- especially youth -- to strive for their personal best" (Elam & Hamakawa, 2008, p. 2). Indeed, despite the costs involved, the marketing executives at Adidas were likely drooling over the potential clout of their efforts at the 2006 Winter Olympic Games given the global audience of more than 3 billion viewers that watched the games (Elam & Hamakawa, 2008).

Key International Market Entry Issues

Companies seeking to promote their brands at the Olympic Games are faced with some enormous challenges given the scope and duration of the event. For Adidas, the key international market entry issues that were involved can be discerned from an application of the "4 Ps" which is provided below.

Product. Adidas introduced a newly designed Adidas Olympic range for the Winter Games (Adidas operational and sporting highlights 2006, 2009). In addition, the International Olympic Committee decided in 2005 that Adidas was not allowed to use its high-profile trademarked "three-stripe" design on an Olympic kit after the Committee received complaints from competitors. Adidas responded by introducing a new design for the Turin 2006 Winter Olympic Games that was not trademarked and was considered a "design feature" instead of logo and was allowed to be used (When Is a Logo Not a Logo, 2006, p. 121).

Price. In becoming an Official Olympic Sponsor, Adidas was looking at the big picture rather than the immediate costs. In this regard, Subs (2009) reports that, "Adidas has not blamed its poor performance solely on the downturn. It bought Reebok in 2006 hoping to boost the brand's sales and image, but progress has been slower than expected" (p. 19).