Brand New View

The London Olympics Colors

London Olympics organizers will be asking citizens located in or near key Olympic competition areas to plant flowers based on the the colors in the 2012 London Olympics logo (the jagged, controversial logo designed by Wolff Olins and unveiled in 2007). Those colors are magenta, green, blue and orange and the Games organizers believe emphasizing these colors anywhere and everywhere possible will help make the 2012 Olympics visually memorable to visitors and viewers. Requesting such cooperation from citizens is easy, but getting locals to follow through is a bit harder. Assuming an additional amount of national pride bubbles up in the coming months, one can imagine Britons doing their patriotic duty by planting Olympic-influenced flowers. Viewed through the lens of business branding, coordinating colors around the main Olympic venues will certainly help create a consistent look for the Games. It will be interesting to see whether Britons in other parts of the country also step up to reinvent the classic English garden to honor the Games.  

The Cost Effective Olympics...

For those that subscribe to the Olympic newsletter 'Around the Rings' you probably saw today's article in which Britain's Olympics Minister Hugh Robertson describes the London 2012 Olympics as a model for cost effectiveness. The final costs won't be official until well after the Games end when LOCOG (London Organizing Committee of the Olympic Games) publishes their final report, but the early indications are that the London Olympics are under budget and ahead of schedule, as I have discussed before in this blog. Minister Robertson's point, however, is to draw attention to more than just a moment of fiduciary pride. As he implies, the 2008 Beijing Olympics were somewhat anachronistic; they were, in effect, the production of a far larger and wealthier country with a singular objective: to draw global attention to its ascendance in the world. London does not need such image burnishing, nor does it need to compete with Beijing by matching Olympic development costs dollar for dollar (or pound for pound or yuan for yuan). Furthermore, such an extravagence would not go down well with British taxpayers or, even more importantly, future host city bidders. Indeed, Minister Robertson is trying to show future host cities that the Games can be relatively affordable (note that I did not say cheap...), softening the concerns of those considering future bids that one does not need to spend $40 billion, as Beijing did, to have a successful Olympics. We are still too early in the Olympic cycle to know the full economic impact of London's Olympics, but LOCOG is working hard to be transparent about their overall budget, the specific expenditures within, and the general pace of progress, essentially making their Games a laboratory for publicly testing new ideas and, hopefully, helping future cities gain a clearer understanding about the challenges and complexities hosting a modern Olympics creates. As I discuss in The Olympic Games Effect the track record for host cities creating long-term value and generating sustained economic gain is decidedly mixed at best. London is trying to do the world, and the IOC, a favor by revealing their path to the Olympics as publicly as possible, warts and all. Such transparent insight is likely to bode well for future Olympiads and for the Olympic Movement overall.

Preserving the Olympic Legacy

An article today in Reuters discusses London's plans to build a permanent museum in the Olympic park. Scheduled to open in 2014, the museum would be an homage to London's three Olympiads in 1908, 1948 and 2012. While many artifacts from London's first two Olympiads are lost, there is enough history and chronicled content to provide visitors with a deeper sense of how the modern Olympics have affected London and the world during three distinct time periods: in the formative years of the modern Olympics; immediately following World War II (which I discussed in my February 20 post about the austerity Olympics), and now in the era of globalization and social media (and in the continued struggles of the post-financial crisis era). Preserving the Olympic legacy helps us understand the context of each Olympics and sheds light on the challenges of each era, which can provide useful insight about how to overcome adversity. In my latest book The Olympic Games Effect I review Olympic history not just in the modern era, but in Ancient Greek times as well, because this background gives us a richer understanding of how the Olympics have developed its positive reputation over the centuries. Sponsors recognize the rich traditions that have shaped the Olympics into the authentic brand it is today and these historical factors are a key reason why sponsors invest in the first place. Certainly the exploits and achievements of the athletes in each era are fascinating, revealing how training practices and performances have changed over time. At the same time, each of London's Olympiads are a snapshot into three very different worlds and such knowledge can only help us understand the world a bit better. Jacques Rogge, President of the IOC, supports this museum because he sees it as a lasting reminder of the Olympics role in the world. For sponsors, associating with such a revered event can reap significant benefits over time.

London 2012 Olympics Tickets

An article today in TheGuardian discusses Boris Johnson's (London Mayor) request for transparency from LOCOG (London Organizing Committee of the Olympic Games) about how Olympic tickets have been allocated. His concern, and that of citizen advocacy groups, is that taxpayers may not be getting a reasonable allocation of tickets, particularly for marquee events. As a case in point, about 39% of total tickets will be made available to the British public for the 100M final (29,000 tickets out of 74,000 possible). In LOCOG's defense, Olympics ticketing allocation is tricky, with multiple forces putting pressure on the Games organizers. Pricing is complex, with different tiers and prices for each sports event. Each venue is unique, adding to the complexity. Even though tickets are just one of several revenue streams, expectations that the Games will turn a profit direclty affect ticketing pricing and allocation decisions. LOCOG must also meet the demands of key sponsors and VIPs from global governments, as well as the needs of Parliament's politicians. LOCOG is reluctant to release figures about how many tickets have been sold for each event and the corresponding prices, given that not all of the tickets have been sold. But any organizing committee would be remiss if they underserved local fans, and members of the British public are understandably seeking fairness in the ticketing allocation since their taxes are helping fund the Games. The good news is that of the 8.8 million tickets made available overall, 75% have been allocated to the British public and in April the final 1.3 million tickets will be available for sale. I discuss Olympic ticketing practices in greater detail in my latest book, The Olympic Games Effect.

British Airways-London 2012 Official Olympic Partner

The modern Olympics, in addition to being the most complex sporting event in the world, have also evolved into a sophisticated marketing stage for companies with significant financial resources. There are four sponsorship tiers for the modern Olympics:

1. TOP (The Olympic Partners)-the highest level of sponsorship conferring exclusive global rights to sponsoring companies;

2. Domestic/Official Olympic Partner-which give sponsors domestic sponsorship rights (but not global);

3. Official Olympic Supporters (these are usually experts in vital logistics and related expertise); and

4. Official Olympic Providers and Suppliers (these firms provide vital goods and services).

TOP sponsorships are the most expensive, whereas Providers and Suppliers are the most affordable, relatively speaking (although none of the sponsorship levels are cheap...). I discuss the various sponsorship tiers in my latest book, The Olympic Games Effect, with a specific emphasis on the TOP program. The IOC sponsorship programs are vital to the ongoing success of the Olympics because the vast majority of the funding goes to support the NOCs (National Olympic Committees) of over 200 countries and territories, as well as the OCOGs (Organizing Committees of the Olympic Games--for the host cities), enabling the athletes from around the world to participate in the Games who otherwise could not afford to do so.

British Airways (BA) is a domestic sponsor, meaning the airline has Olympic marketing rights that can be used across the UK and in London. One of BA's responsibilities is to safely transport the Olympic flame to the different destinations where Torch Bearers cannot travel on foot (such as across large bodies of water, or small ones for that matter...). BA views their sponsorship as a rare opportunity to showcase the company, the UK and also be associated with the values and reputation of the Olympic Games. Marketers will appreciate that this is not an easy undertaking, and certainly isn't as simple as throwing money at the Olympics. Indeed, BA has four pillars in their Olympic sponsorship that, collectively, go to the heart of sports sponsorships: clear activation planning.

First, BA is using the sponsorship to emphasize their role as a leader in aviation in the UK. That may strike some as unnecessary considering BA is clearly the dominant carrier. However, companies around the world are always trying to tell us why they are special, and BA's use of the Olympics perhaps nudges them toward a more distictive and exclusive leadership status. Second, BA is using the Olympics to create a more emotional connection to the company. Emotional connections are among the key reasons sports sponsorships are increasingly popular among companies around the world--sports fans are uniquely loyal to their sports, teams and athletes. Third, BA is using the Olympics as a rallying point for its own employees, serving as a source of internal pride, if you will. Long gone are the days when employees are expected to do what they are told. Today, employees want to join companies that are pursuing something special and meaningful, where they can feel like they are part of a larger cause, and not just slot fillers earning a wage with little understanding of how their work contributes to the greater good. Sponsoring the Olympics overtly supports a larger global effort to bring people together from around the world to celebrate sport. Fourth, BA intends for their Olympic sponsorship to produce economic gain for the company by attracting more customers and building long-term business partnerships with other companies. This latter pillar is, of course, what shareholders and market analysts want to hear. After all, investing tens of millions of pounds without a plan for generating a positive return on investment would not be a popular decision.  

Listing these four pillars isn't enough. As sports marketers know, successful sponsorships are intended to guide the tactical decision making required to realize the commercial gains. An interview with Frank van der Post, Managing Director of Brands and Experience at BA,sheds a bit more light on BA's London 2012 Olympic sponsorship efforts. His enthusiasm for and optimism about the Olympics is refreshing. 

A Lesson from the Austerity Olympics

No, this is not a reference to the UK of 2012 which, along with most European countries, is fighting a losing economic battle to grow by imposing strict austerity measures. Instead, the 'Austerity Olympics' refers to the 1948 London Olympics. I remain optimistic about the prospects for the London 2012 Olympics to generate international goodwill and a measure of economic gain, albeit shortlived, despite the country's drastic macroeconomic policies of the past 2-3 years. The hoped-for Olympics success in 2012 will be the result of the significant investments being made in permanent infrastructure upgrades, economic revitalization, tourism programs and innovative post-Olympics facilities usage. But in 1948 no such investments were made or even possible. London had emerged victorious from World War II but not without signficant cost--in addition to the horrible loss of life, the country was nearly bankrupt. The UK saw the 1948 Games as a way to generate badly needed revenues from visitors. Miraculously, the UK came together in a stunning example of national unity to host one of the most successful Olympics ever, serving as a beacon of hope at a time the world needed it, and even turning a small profit in the process. While we are not recovering from the unrivaled devastation of a world war in 2012, much of the world is still struggling to recover from the devastation of the global financial meltdown of 2007-2008. I can think of no better city in the world to, once again, lift our collective spirits and help the Olympics serve as the world's beacon of hope.

Rolling Stones and London Olympics?

While official spokespeople deny that the Rolling Stones will perform at the 2012 Olympics in London, the band's guitarist Ronnie Wood has said that the band is indeed in talks to perform, according to various reports in the British press. If true, the London Olympics would certainly be a invaluable way for the iconic band to celebrate their 50th anniversary. Given that London is the only city to have hosted 3 Olympiads (1908, 1948, 2012), a Rolling Stones performance would add yet another distinctive and quintessential 'Britishness' to the Games (Paul McCartney is supposedly in talks to perform as well, and rumors have also hinted for a Led Zeppelin reunion although this seems unlikely since band spokespeople have repeatedly denied this). Irrespective of which bands actually perform at the Olympics, 2012 is a celebratory year for the UK with the Games and also the 60th anniversary of Queen Elizabeth as monarch. A separate but newsworthy note is about Lord Michael Bates who just completed a nearly 3,000 mile walk as he strode up Trafalgar Square in London this week. The reason? He was drawing attention to the Olympic Truce, an ancient Greek tradition that required all wars and conflicts cease during the Olympics (to allow athletes and visitors to travel to the Games without risk). Lord Bates hopes that his journey, which began in April 2011, served a useful purpose in reminding the world of the importance of the Olympic ideal and Olympic values. If you haven't heard about his journey, or about the Olympic truce, then click on the highlighted links.

Italy Drops Its Rome 2020 Host City Bid

The economic troubles in Europe that have engulfed Greece won't improve for some time. At the same time Italy, Spain and Portugal have faced their own economic challeges, although not as severe as Greece's. Today Italy's Premier announced that the country would not provide financial support for Rome's 2020 host city bid due to more pressing economic needs. The Italian Premier believes that the $12.5 billion estimated cost of being host city places taxpayer money at risk at a pivotal time given Italy's continued economic weakness. While Rome, which hosted the Summer Olympics in 1960, would have been an interesting candidate city, the country's and even Europe's larger economic concerns are understandably of greater importance right now.

DOW and The Olympics-The Challenge of Managing an Unintended Reputation

DOW, one of the TOP (The Olympic Partners) sponsors for the 2012 Summer Olympics in London, is facing human rights protests, particularly from India. The reason? DOW acquired Union Carbide in 1999, and Union Carbide was responsible for the 1984 Bhopal toxic gas disaster that claimed the lives of thousands around the facility in India. While DOW was not the parent company at the time of the disaster, critics have wanted the company to increase the compensation to victims and their families ever since the company purchased Union Carbide. DOW officials have held firm to their stated position that while it sympathizes with the victims of the disaster, it is not responsible for the disaster and should not be held accountable for something that did not occur on its watch. The issue has led to the recent resignation of Meredith Alexander, a volunteer who served on the Commission for a Sustainable London 2012. Alexander felt she could no longer remain on the commission given that LOCOG (London Organizing Committee for the Olympic Games) selected DOW to create the stadium wrap around the main Olympic stadium. Chairman Sebastian Coe defends DOW's position, saying the company was not responsible either for the disaster nor the compensation settlement that was reached years before the company acquired Union Carbide. TOP sponsors like DOW pay to be associated with the positive values of the Olympics, but many would argue that DOW also 'paid' to be associated with Union Carbide and the implications are now being felt.

London 2012 and Thomas Cook Corporate VIPs

An issue sure to raise the ire of the London Organizing Committee of the Olympic Games (LOCOG) is the selling of corporate VIP road lanes by Thomas Cook Travel for £20,000 per person. Under LOCOG rules, Thomas Cook is allowed to use the VIP lanes itself since it is a hospitality organization supporting the Games, but the company is not allowed to provide access to the lanes for its clients. LOCOG has already weighed in, stating that any selling of access rights to the VIP lanes would be investigated. A spokesperson for Thomas Cook acknowledges that the company is trying to keep the issue quiet, most likely to keep any controversy to a minimum. Too late, however. Common sense suggests that if you state publicly that you are trying to keep an issue quiet then you are not actually keeping the issue quiet.