Competing For Olympic Marketing Rights: Another Tough Battle For Brand Shoe Companies

"Obtaining these resources is not only a simple way to get the benefit of ratings, but also to occupy the right to speak during the Olympic Games."

Facing the threshold of minimum 39 million of CCTV Olympic advertising targets, Dr Yuan Fang, director of media research of Limited by Share Ltd (CTR), commented on CCTV market research.

After 7 years of preheating in 2001, the Olympic marketing of enterprises in 2008 finally came to the end.

However, when enterprises are struggling to make the final move, they find that the marketing resources that they can choose are limited.

CCTV's Olympic advertising is the typical representative of scarce resources.

After two rounds of bidding within the Olympic sponsorship business, CCTV left only 5 left to the public to grab the advertising targets in public bidding.

This is undoubtedly too scarce for many enterprises that view Olympic Games as the best marketing opportunity.

But this scarcity has given the winning companies greater value.

"During the Olympic Games, if most Chinese people are watching the Olympics every day, the audience will also focus on those channels, and those channels only contain less than 100 brands.

It can be understood that in the more than ten days, most of the brands on China's TV screens were shielded, only the less than 100 brands were making a sound.

From this point of view, Yuan Fang thinks that the money is worth the money.

What is the return of the "related degree" competition to such a high capital threshold?

Hu Donglong, President of the three person Advertising Co., Ltd., like Dr. Yuan Fang, was the first to blurt out the answer.

At the CCTV tender meeting, the advertising agency headed by Hu Donglong exceeded 1 billion 100 million of the winning bidder, while the company's agent Wang Laoji and Jin Ju took nearly 200 million of the Olympic targets.

In his view, traditionally, 7 and August were originally the low season for most enterprises' advertising. This year, enterprises are still so active that part of the reason is to show their faces. This shows that the company has participated in the national event of the Beijing Olympic Games.

The Olympic Games in China are no longer simply a sports event, but an event containing the concept of "the rise of China's great power" and "national pride".

So from this perspective, Yuan Fang believes that this incident is important for all enterprises, and is a bridge for enterprises to realize the communication between the brand and the public.

But the threshold of capital really blocks many enterprises from the CCTV Olympic resources.

The successful companies, especially non sponsors, tend to have a clearer purpose.

The first purpose is to buy the relevance between the brand and the Olympic Games, which is reflected in the purchase of the exclusive naming right of the column program.

The exclusive title of the column.

The audience voted to announce the "star of the day".

Wang Rui, general manager of Red Bull, said on the day of winning the bid that although red bull was not a sponsor of the Olympic Games, it also hoped to applaud the Olympic Games.

Hu Donglong believes that some enterprises, especially non Olympic sponsors, want to buy brands.

Advertisements appear frequently in Olympic Games, which makes it easy for people to form an illusion that enterprises have some connection with the Olympic Games.

The exclusive title is also for the same consideration.

XTEP's main sports shoes emphasize fast running, and the fit with this column is very high.

Linking the characteristics of their own brands with the characteristics of the columns is an important way of sports marketing.

"It's like every time you go to a meeting, you always take a bench and sit next to Li Jiacheng, and people will feel that you have something to do with Li Jiacheng."

Will this correlation be related to the hidden market?

This reporter got the answer in an exclusive interview with Timmo Lumme, executive director of International Olympic Committee television and new media rights committee: "after guaranteeing the preemption of sponsoring enterprises, some advertisements related to the Olympic Games can be sold to non sponsoring enterprises.

However, the contract also stipulates that the rights holders are obliged to ensure that advertisements will not be confused and misunderstand the relevance of non Olympic sponsors to the Olympic Games.

Obviously, the words "confusion" and "misunderstanding" are too broad. As for how to grasp this degree, further consultation is needed.

Although correlation is very important, not all enterprises are suitable to buy it.

A marketing expert told reporters that it is not cost-effective for Olympic sponsors to buy such a connection if they are bleeding again.

Because in 2007 CCTV's resource bidding, if you want to get the exclusive name of an Olympic special program, the enterprise may pay up to 50 million or even billions of dollars.

The experts believe that if Olympic sponsors have already taken out huge sponsorship fees, they will be associated with the Olympic Games, or have already paid huge amounts of celebrity endorsements.

In the case of Olympic elements, it is a waste of resources if we spend tens of millions to buy correlation.

Based on this consideration, the three party recommends that Erie will change its strategy in 2008.

Making advertising more even, the key is to spread the relationship with the Olympic Games on a larger platform.

The targets of this year's harvest include: the first choice for the opening and closing ceremonies, the inserting suits for the Olympic Games, the weather forecast for 7 and August, and the location of the A special segment.

When tit for tat is compared to rival enterprises competing for CCTV Olympic resources, we must also consider the strategy of advertising for competitors.

For example, Erie must pay attention to the behavior of Mengniu, while Yanjing Beer (000729 market, stock bar) must also see Tsingtao Brewery (600600 market share).

According to Hu Donglong, at present, most private enterprises have a relatively complete measurement system to determine the total budget of advertising, the proportion of media distribution, and the distribution of the nature of advertising objects in various media.

In this system, a factor that plays an important role is the behavior of competitors.

Taking the beer industry as an example, Tsingtao Brewery, Yanjing beer and Budweiser beer are all Olympic sponsors. Snowflakes also have the banner of "non Olympic marketing". They have to pay attention to each other.

Therefore, every month, professional teams provide their competitors with reports of advertisements, and analyze the factors such as frequency of advertising, viewing shares and cost.

From the tender results, 3 other brewery enterprises have made their own voice besides Budweiser beer.

XTEP's contention also shows the smell of gunpowder.

To count XTEP's competitors, ADI, Nike, needless to say, have invested a lot in Olympic advertising resources; Lining is the host of sports channel's clothing, while Anta is an active sponsor of CBA's regular domestic league matches.

"All competitors are doing sports, it is not allowed to participate," Hu Donglong said XTEP bid for Olympic advertising reasons.

Compared to the above two enterprises, the main air conditioning household appliance enterprise Beauty Company also invested 68 million 900 thousand yuan to join in the fun, its direction for Haier is more clear at a glance.

Because in accordance with usual practice, August is the air conditioning industry's advertising slack season.

In addition to the above factors, for the beer and beverage products that are in the peak season of summer sales, the launch of the Olympic Games can also directly increase sales volume.

However, no one can play the Olympic Games.

The three party has repeatedly recommended its customers. Although the resources of the Olympic Games are very popular, if the enterprises are not facing urgent competition pressure, they should expand their options.

Shen Hua, assistant general manager of Beijing Future Advertising Co., Ltd. also holds the same attitude. He thinks that unless you are a leader in the industry, or will launch new products around the Olympic Games, otherwise the general small and medium-sized enterprises might as well take the initiative to withdraw from the competition. "Millions of dollars or ten million of the funds, playing the Olympic Games here, is simply a drop in the bucket, so it is better to avoid this time".