Brand: From The Olympic Games?

The establishment of influential brands by the 2008 Olympic Games may be an expensive starting point for small and medium-sized manufacturing enterprises in China.

However, regardless of whether the Olympic marketing is successful or not, it will be the beginning of a new journey for Chinese manufacturing enterprises with long term core competitiveness at low cost.

At the beginning of its establishment in 1988, AOKANG group, known as "brand", has reviewed the past 20 years of development. Although it has been one of the largest private leather shoes manufacturers in China, its sales volume has reached about 4000000000 yuan in 2006.

But this opportunity to become an Olympic sponsor gives them the impetus to rethink AOKANG's brand positioning and planning.

"Technology will be the main demand for us in the future."

Wang Zhentao, chairman of AOKANG group, said that AOKANG's propaganda words are "technology AOKANG, charming Olympics".

In September, at the 2007 China International Leather Exhibition held at Shanghai new international fair, AOKANG group's huge imitation bird's nest exhibition hall and Olympic Dance Ribbon Dance vigorously gathered a lot of popularity, but the most attractive one was the foot type measuring instrument before the exhibition.

After this "foot", the collector will pform the collected foot data into specialized data, pform it from 2D to 3D, and build foot database.

Then the designer combines the shoes, colors and materials that customers choose, and finally customize shoes with unique shoes for them.

AOKANG's first "shoe free shop" will also open in Hangzhou. The first generation of low-cost shoe measuring equipment stores will be tailored for consumers to customize their own personalized shoes.

Wang Zhentao, President of AOKANG group, announced that 3 orders were signed for more than 40 million yuan this year, all of which are related to the Olympic Games.

"In the next two years, our advertising investment budget is 200 million yuan, and the proportion of sponsorship fees has reached a record 1:5, a 30% increase over the previous years," Wang Zhentao said.

AOKANG's brand value surged from 3 billion 28 million yuan in 2006 to 5 billion yuan this year, and their long planned overseas development plan was highly improved with the help of Olympic LOGO.

Companies that win the sponsorship of the Olympic Games are racking their brains to make full use of the Olympic concept, and some enterprises that have been defeated in bidding have been trying to make use of this rare marketing opportunity.

These "Olympic cleaning committees" (Olympic Marketing Committee) because of their mature brand operation experience, flexible marketing methods, the effect is not necessarily worse than becoming Olympic sponsors.

Although the Li Ning Co launched the Olympic strategy as the basic development strategy in 1990, it failed to compete with Adidas in 2008 when bidding for the Olympic Games partners.

Adidas, who is rich in money, won the exclusive qualification to provide Olympic sports equipment for 1 billion 300 million yuan. According to the insider, the bid for the Li Ning Co bid was less than 500 million yuan, and it was in a bad sense. Li Ning Co sales revenue in 2006 was about 3 billion 180 million yuan. Adidas sold more than 10 billion dollars in global sales last year.

But Li Ning Co chose "curve to save the nation".

Not long ago, the company CEO Zhang Zhiyong announced at the Olympic strategic conference of "hero gathering, sword 2008". Lining will provide Chinese patronage, gymnastics, diving and shooting 4 golden dream teams, Spain, Argentina basketball 2 world champion team, and Sultan athletics team, Sweden Olympic Games delegation, Spain Olympic delegation, Ethiopia long-distance runner Trosa and other clothing sponsorship, perhaps the Olympic Games will be difficult for the public to distinguish who is the real Olympic sponsor.

In fact, as many enterprises have made great efforts in marketing with the Olympic concept, it is difficult for the public to distinguish which enterprises are Olympic sponsors and which enterprises are using the Olympic Games to do "edge" marketing.

To some extent, Olympic marketing has become the stage for many enterprises to develop their marketing skills and skills.

Qiu Zhiming, chairman of BEIFA group, is more aware of his own business. Before sponsoring the Olympic Games, they did not seriously consider the issue of brand.

BEIFA has developed into a tycoon from a foreign trade company and a processing and assembly plant in Ningbo that year. BEIFA has been focusing on the expansion of production capacity and the improvement of quality for more than 10 years.

In 2006, BEIFA's production and sales volume had reached 1 billion 500 million yuan, more than 95% of its products were exported overseas, and the scale of production and marketing ranked first in the country for 10 consecutive years, ranking third in the global pen making industry.

Olympic sponsorship is a big expense, and BEIFA is a decision.

In early 2006, Qiu Zhiming decided to sponsor the Olympic Games and began a comprehensive strategic pformation of three years. BEIFA will pform from a single writing tool manufacturer to a value chain manager in the stationery industry.

The sponsorship of the Olympic Games allowed Qiu Zhiming to study the successful operation of Olympic history more carefully. During his sponsorship of the Olympic Games, the experience of Fuji in the chain store and Samsung's promotion of international brands from local brands through Olympic marketing has greatly inspired him. He finally decided to define his own brand strategy as channel brand, service brand and consumer brand. First, he joined the terminal through chain affiliations, then realized the control of the terminal through capital strength, and finally realized the integration of industry resources through strong control of the terminal.

This concept, which is totally different from the traditional high, medium and low end brands, can also be regarded as a brand new thinking of brand in manufacturing enterprises.

After obtaining the qualification of exclusive supplier of stationery for the Olympic Games, BEIFA planned for more than half a year, and began to promote the franchise plan in January this year, and promised to invest 250 million yuan for the market promotion before the Olympic Games, and establish the logistics distribution system of 267 cities throughout the country.

By July this year, BEIFA has opened 638 franchises, and there are more than 100 counters and stores in Southeast Asia. Each store can cover 3 square kilometers of logistics and distribution services.

It is expected that by the end of this year, there will be 1000. By the end of 2008, it is possible to reach 1500, and overseas terminals will reach 500. In the next 35 years, the medium-term target will be opened to 1 000 terminal stores.

To this end, BEIFA spent more than ten million yuan on its IT system and training last year.

"Traditional manufacturers invest in land, factories, equipment and R & D, while brand operators invest in brand promotion, network development, information construction and logistics capability allocation."

Qiu Zhiming said that BEIFA, as the world leader in stationery manufacturing, has begun to have a clear framework for brand operation with the opportunity of Olympic marketing, and knows where its marketing costs are.

According to Qiu Zhiming's judgment, gross profit margin will increase by 10 points to 30% after the change of the mode of economic growth of enterprises.

Before that, they have just reached tens of millions of dollars this year, plus $30 million in Standard Chartered Investment in 2005. These are the financial capital of corporate pformation.

The pformation of BEIFA's business model will take some time. However, with the help of the "Olympic exclusive supplier" brand, their popularity will jump from nearly 3% to nearly 20% in less than a year. Their plan is that by 2010, the visibility will reach 50%, and the international public awareness will also be promoted.

Although BEIFA appears in the sponsorship list of the Olympic Games, Guangzhou Li Bai enterprise group is facing the fierce competition of product homogeneity. Making brand is the only way out.

In this market, there are pnational giants such as Procter & Gamble and Unilever, as well as local rivals such as Nye and long Liqi.

At present, Olympic marketing is a very effective way to establish differentiated brands in the Red Sea market.

At present, Li Bai is making marketing arrangements for the upcoming Olympic Games.

In Li Bai's more than 200 direct counters and 5.3 000 channel terminals laid by various dealers, Li Bai carried out the "Olympic deepening construction activities", that is, from terminal shelf display to product display and packaging, all of which were replaced by Olympic related Logo.

"The cost of this item alone is more than 100 million yuan, because only tens of millions of dollars can be exchanged for packaging."

But Xu Xiaodong, chief spokesman of Li Bai, thinks the money is very valuable, because the shuffling of the daily chemical industry is becoming more frequent. The Olympic Games, which is a national concern, can greatly enhance the brand of Li Bai.