Sports marketing - Olympian heights

However, unless they've paid the Olympic shilling, there's little that most brands can do. The International Olympic Committee tightened up its charter again after the Athens Games in 2004, and the only sponsorship with exclusive worldwide marketing rights to both the winter and summer Games lies with TOP (The Olympic Partner) programme partners.

Guy Hepplewhite, managing partner of Space - which is on the roster of Olympic partner Samsung - says that if TOP companies are to leverage sponsorship value from an event based in faraway China, they'll need to focus on tapping into the Olympic spirit. They will also have assessed how they can best add value to the Olympic spectacle.

"There is no denying that Coca-Cola's involvement will make Beijing 2008 a truly global event," he says. "The location for a European audience is problematic but there will still be ticket prize promotions from brands aiming to give customers the Olympic experience. It may be higher risk than sending people to Athens or Barcelona, but consumers these days expect more. Experiences create greater brand immersion and advocacy."

Once in a lifetime

Momentum UK marketing and business development director Simon White believes that brands will need to work harder to leverage value from the Games. "I want to hurl myself from the fifth-floor window each time I see a ticket give-away," he says. "Consumers engage because they want the ticket, not because of the brand. Brands will try and create a once-in-a-lifetime money-can't-buy experience to go to Beijing and it will drive participation, but not necessarily drive brand advocacy."

Sarah Bentley, head of sponsorship at BD-NTWK, one of several agencies involved in Coca-Cola's Beijing work, points to Scottish Widows for current evidence of ticket prize promotion activity. As the official pensions and investment provider for 2012, the division of the Lloyds TSB Group is running an online campaign to send winners to the Beijing Games. But it's not all plain sailing.

As Bentley points out, the competition's closing date is March. This is because Scottish Widows needs extra time to arrange visas for the winners to travel. Compared with previous Olympics, this kind of logistical problem will have a great impact on brand marketing, so the activity needs to be implemented much further in advance.

Another difference is that brands engaged in Olympic sponsorship and partnership around Athens were mostly interested in a global viewing audience, glued to what was happening. This time, the motivation to engage in Olympic branding is partly driven by the fact that China is already one of the most important global markets for many multinational brands.

According to The Marketing Store's marketing and business development director, Corine Pouvreau Miles, Olympic partner Visa is a good example. "Visa is using its Olympic status to drive its partnership business with Chinese member banks," she says. "Visa International and its local bank partners have so far increased the number of merchant outlets that accept payment cards in China by 60 per cent compared with a year earlier."

The activities of other Olympic partners supports this view. Among them is international IT services company ATOS Origin, which received Olympic support for the opening of a test lab in Beijing. Another is Panasonic, which has announced that it is extending its partnership deal until the 2016 Olympics, so that viewers across the world can experience the Games using its HD technologies.

Opening the floodgates

For Chinese brands, Beijing 2008 represents a massive opportunity for global exposure. Space's Hepplewhite works with Samsung to exploit its involvement with Chelsea Football Club. He anticipates more Chinese involvement in UK and European sports marketing following the Olympics. "Chang beer is already sponsoring Everton and Oki at Portsmouth, so the Games may open the floodgates," he says. "But I'm not convinced that local Chinese brands actually know what to do to leverage their sponsorship involvement in the Olympics, so it will be interesting to see."

One marketing initiative that most UK agencies agree won't be a deciding factor in Beijing is ambush or guerilla tactics. Ignition business development director Stuart Bradbury is involved with Coca-Cola's sponsorship of the torch relay. He predicts that a broad scope of experiential marketing will play a huge role in London in 2012 because televised coverage will be predominantly on the BBC. For Beijing, though, it will be more about the advertiser viewing platforms. "I still think ambush campaigns will take place, but they'll be so much harder to get away with because of the clampdown by the IOC and Chinese authorities," he says.

Hepplewhite is convinced that ambush marketing will "just not happen". BD NTWK's Bentley, meanwhile, believes that IOC restrictions have seen an end to the days when Nike would buy up a parking lot next to the sports stadium in order to ambush Adidas.

It is likely therefore that much of the battle between brands that have bought into Beijing 2008 will be fought online. Digital platforms will be used for merchandising, prize giveaways and sponsorship activation as they sidestep issues such as smog, political protests and human rights concerns that have been causing sleepless nights for TOP partner marketers.

Agencies such as the Ogilvy Group have already ensured brands such as VW have a strong online Olympic presence. Coca-Cola has even signed up popular Chinese athletes to strengthen its digital marketing campaign. If Europeans can't experience Beijing 2008 physically, there will be a demand from many to immerse themselves in the Olympics virtually.

NIKON'S GOLFING TRIUMPH

Will Oscroft, business development director at Ogilvy Sports & Entertainment - a division of Ogilvy Action - is focused on the agency's sports marketing in the UK while its Chinese office looks after a sizeable chunk of TOP partner activity in Beijing. In Britain, Ogilvy Sports & Entertainment manages the account of AIG, shirt sponsor at Manchester United, plus Volvo Ocean Race activity and Nikon's relationship with golf.

During last July's Open Golf Championship at Carnoustie, Nikon and Ogilvy set up a Nikon hospitality village for four days to drive consumer brand advocacy. Oscroft says: "Visitors to golf tournaments are not allowed to take cameras on to the course so Nikon photographers were based around the branded area taking photos of guests. The consumer could then register online to receive the images. It worked well as a data capturing mechanic and created a simple yet memorable experience of their day."

Nikon used a number of other touch points in its hospitality village, including retail areas and a longest drive competition using a virtual screen. Ogilvy was given sales and data capture targets for each day. "We'd like to take Nikon's sales promotion activity in store and we're talking to both Jessops and Dixons about the future," says Oscroft.

BEIJING OLYMPICS TOP PARTNER ACTIVITY

Omega

The Games' official timekeeper has released limited-edition versions of its Constellation watches. The men's version has the Olympic rings attached to the second hand. The women's version has blue and yellow sapphires, a black diamond, an emerald and a ruby representing the colours of the Olympics as hour markers.

Coca-Cola

Coca-Cola is working with the official pin licensee in China to produce branded Olympic pins from the same consignment of steel used in the construction of the Beijing National Stadium. "We are supporting the pursuit of green Olympics," says Coca-Cola Olympic project group general manager David Brooks.

Visa

Visa is the exclusive payment card for the Games and is helping China speed up its process of building a world-class payment infrastructure.

Atos Origin

The IT services company received Olympic support for a lab in Beijing that will test the key IT infrastructure and software applications used during the Games.

Johnson & Johnson

The official healthcare products sponsor since 2006, Johnson & Johnson will be following up its Sport for Good Health campaign. In-store promotions on Compeed and Neutrogena are anticipated but not confirmed.

Panasonic

Panasonic banners and advertising will be seen everywhere during the Games. The HD technology provider promises to "bring the excitement of the Olympic Games to life."

Samsung

Samsung is launching three mobile phone models around the Games and is embarking on a marketing drive to promote audio technology that enables users to customise SMS text messages.

Kodak

The 2008 Olympics will be Kodak's last as official imaging sponsor. It will provide accreditation badges, an imaging centre for journalists and diagnostic imaging of injuries.

Lenovo

The Chinese supplier will launch 2008 Games branded computers.

GE

General Electric is expecting to sell EUR357 million worth of turbines, lighting systems and equipment for the new Olympic venues.

McDonald's

Happy meal promotions and in-store point of sale is expected.