SociableSport

The Olympics and McDonald's: What's Behind The Sponsorship?


A revealing insight into life at one of the world's most prolific sponsors

 
Image source: LA Times Olympic Blog


McDonald's' historical association in monetary terms (including the activation on pack and in store menu costs of producing new materials etc.) will run into many $100m's. For such an enormous investment over such a long period of time the restaurant will constantly need to robustly justify the expenditure to the shareholders.

After all, how many restaurants could you make with $100m? How many bonuses to your Exec staff? What improvement could you make to your recipes?

Despite a consistent theme of corporate social responsibility, the primary reason behind the sponsorship will be in restaurant sales - whether this is driven by a more engaged workforce, higher brand awareness, or perhaps even better relationships with governments and media organisations... who knows, but whatever the interpretation, it's good to hear all this from the source - the guy that signs the cheques.

Thanks go to http://www.thebusinessledger.com for posting.

 

Olympics enhance McDonald's worldwide brand

As 2010 begins, much of the world is gearing up for this year’s Winter Olympic Games from Feb. 12 to Feb. 28 in Vancouver, B.C. Amidst the flurry, McDonald’s Corporation senior vice president for global marketing Dean Barrett took time to answer questions from associate editor Sherri Dauskurdas about the company’s preparations for the games, its long Olympic history and the advantages sponsorship offers to the international restaurant giant.

 Q: How long has McDonald’s been an “official sponsor” of the Olympic Games?
A: McDonald’s has a long-standing history with the Olympic Games, which began more than 40 years ago. In 1968 we airlifted hamburgers to U.S. athletes competing in Grenoble, France after they reported being homesick for American hamburgers. The Vancouver 2010 Olympic Winter Games will mark McDonald’s seventh Olympic Games as a worldwide partner and eighth as the official restaurant of the Olympic Games.

 Q: What does that designation entail?
A: As a worldwide partner and the official restaurant of the Olympic Games, we are the only branded retail food service company to feed the athletes in the Olympic Village, as well as share the excitement of the games with millions of customers around the world.

 We are implementing a variety of initiatives to connect our brand to the ideals of the Olympic Movement such as:
•    Feeding the world’s best athletes, coaches, officials and media at three new Olympic venue restaurants in the Olympic Village in Vancouver, the Olympic Village in Whistler and the main media center in Vancouver.
•    The venue restaurants will feature energy-efficient lighting and equipment in keeping with the Olympic Games green theme. The equipment from these restaurants will be reused and recycled at McDonald’s restaurants in Canada after the Games have ended.
•    The McDonald’s Champion Kids program, which provides a once-in-a-lifetime opportunity for kids ages 6-14 to experience the Games first hand. For Vancouver, one child from each province and one child from the territories in Canada will join kids from around the world to attend Olympic events, meet athletes, visit the Olympic Village, tour the cultural sites of Vancouver and Whistler, and receive their own gold medals from Olympic champions. The children will also have the chance to serve as special youth correspondents to share their experiences with their hometown news outlets.
•    Celebrating Canada’s Olympic spirit nationwide as the h ost country with several activities including: flying Olympic flags at select McDonald’s restaurants across Canada; offering Olympic-themed McDonald’s Vancouver 2010 Olympic sport water bottles to consumers; partnering with top Canadian athletes such as speed skater Cindy Klassen and figure skater Patrick Chan; and activating McDonald’s 2010 Hopefuls, a grant program that supports the Olympic aspirations of 26 Canadian athletes and recognizes the efforts of their parents by allocating a portion of the funding to the family.

 Q: How far in advance do preparations begin, here and onsite?
A: Preparations for each of the games begin years in advance and throughout the games. We know that it takes a lot of work to plan this exciting sponsorship, but it’s worth it to deliver a special and unique Olympic Games experience for all.

 Q: How many staff members are taken along to work at the games, and how are they chosen? Or do you bring in local employees from the country/community where the games are being held?
A: As part of our Olympic sponsorship, we honor the hard work and exceptional performance of our restaurant crew by bringing our best of the best to the games through our McDonald’s Olympic Champion Crew program.

For the Vancouver Games, in celebration of the Winter Games return to Canada, more than 300 top-performing restaurant employees from across Canada have been selected as the 2010 McDonald’s Olympic Champion Crew. They will serve the world’s best athletes as well as coaches, Olympic officials and media at our three new Olympic venue restaurants. While in Vancouver and Whistler, they also will have the opportunity to attend select Olympic events and participate in cultural activities.

 Q: What does being associated with the Games bring to the branding of McDonald’s?
A: We’ve supported the Olympic movement for more than 40 years because we believe in the values and ideals represented by the world’s best athletes and the spirit of the games. The Olympic partnership adds value to our brand on a number of levels and specifically provides a unique opportunity to engage with millions of customers worldwide and deliver the excitement of the Olympic Games in restaurants and through various promotions and programs.

 We feel that our sponsorship goes well beyond a financial investment. The Olympics add value to our brand on a number of levels. First, our sponsorship helps make the games possible. And second, our customers around the world can experience the Olympics as we bring them to life in our restaurants with special promotions and activities, which is invaluable to our company.

 Q: Overall, what does sponsoring events do for business?
A: From enhancing our service and people promise to reinforcing our community presence, the Olympic Games are the ultimate expression of the spirit of McDonald’s and directly connect with people of all ages and cultures. Our customers want and expect us to support the Olympics, and we look forward to bringing our sponsorship to life in our restaurants and through special promotions and activities.

 Q: What other types of events does the company sponsor?
A: In addition to the Olympic Games, McDonald’s is a proud worldwide sponsor and the official restaurant of FIFA World Cup. McDonald’s is one of the biggest supporters of grassroots sporting opportunities in local communities. McDonald’s countries around the world also have sponsored national sports teams and sport leagues for many years.

 Q: What advice would you offer mid-sized or even small businesses looking to become involved in event sponsorship?
A: It’s important to not only look at what your customers are interested in and what opportunities would directly connect with them, but also what adds value to your brand, whether it’s giving back to the community, furthering an ongoing commitment or simply being more relevant to your customers.

 


Posted on Thursday, January 07, 2010 (Archive on Thursday, January 14, 2010)
Posted by jstoltz  Contributed by jstoltz

 

Dear Sponsors: Meet Tiger Woods (The Bad Boy)

And here he is - Annie Liebovitz captures a Tiger Woods few of us have seen. The void between Tiger Woods a personal and Tiger Woods a professional is discussed in January's issue of Vanity Fair.

BusinessInsider rightly ask, perhaps this could be the image sponsors clamour for in 2010?

Tiger Woods - Bigger Than Jesus, Smaller Than Christmas

For this festive season, Tiger Woods' scandalous relationship trauma seems to be driving more search interest than the Greatest Story Ever Told.  

Tiger Woods, Jesus

But stories of infidelity or sacrifice are dwarfed by the search traffic for Christmas itself. What the Spirit of this "Christmas" wave is? I'm not sure. It could be gift ideas, or it could be celebration ideas. Either way, Christmas has certainly arrived... Perhaps Woods could piggy back this with an Oprah Christmas Special? PGA comeback event to be held on December 26th? OK, that's pushing it.

Tiger WoodsJesus, Christmas

How Sports Personalities Are Embracing Twitter

Here's a really interested thought-piece on the relationship between Twitter and Sport. Enjoy. 

"The use of Twitter by sports stars has closed the gap between fans & athletes. But where do endorsements and marketing fit into this new 1-1 relationship?" 

</object><div style="font-size:11px;font-family:tahoma,arial;height:26px;padding-top:2px;">View more documents from Mindshare.</div></div>

Tiger Woods To Boost PGA Tour's TV Audience At "Comeback" Event

There's nothing like a contemporary advertising campaign. Do you think this example from Gatorade - recently divorced from Woods - has the flexibility to still good a good job for the brand despite Tiger's recent 'image change'? Probably not. Unfortunately, thinking about whether Tiger has "it" has taken on a whole new meaning: mental toughness not being one of them.

Celebrity news site TMZ (cited in the Indian Times) are adamant Woods' transgressions will "harm" his image - most notably as the face of Nike Golf - and suggest Woods' number could be up on other sponsorship deals in addition to the loss of Gatorade. His associative properties have certainly shifted and the Indian Times goes on to reference the Davie Brown Index, which measures celebrities' standing with consumers, where Woods has gone from 6th highest ranking celebrity endorser to 24th. Apparently the database comprises of 2,800 respondents but how often this survey goes out and how much it changes according to who's in the press and why, I'm not sure. 

But cast your minds back to 2004 and the David Beckham scandal. An Evening Standard poll asked London readers, 'Who is to blame for David Beckham's affair?' A staggering 41% blamed Victoria Beckham, 37% blamed David Beckham and only 22% blamed Rebecca Loos herself. Even David Beckham's own mother suggested Victoria was "partly to blame".

The situations are different: while Loos hogged most of the limelight as the 'mistress of choice', Tiger has multiple skeletons to remove from his closet. Yet, after a while, Beckham's image was restored as he and his family went about 'business as usual' and sponsors were un-phased.

When Kate Moss was photographed taking Class A drug Cocaine, associations with Calvin Klein, Rimmel, Chanel and Christian Dior were swiftly put under scrutiny by the press, but store chain H&M were the only brand to take immediate action to separate themselves from the troubled model but after no more than 3 months, Moss actually gained a new $1m+ deal with Virgin Mobile.

Far from being destroyed, these two personalities had their image shaken up - and soon all was forgotten as "in the past". 

According to US-based market research unit Nielsen, advertising featuring Woods hasn't appeared in US prime-time TV since November 29th, but perhaps Woods will go through a similar transformation to Beckham and Moss? Perhaps what he needs is a bit of calm: a period of time signifying the end of one chapter and the beginning of a new one. Next, a new appearance, a new deal or a new campaign to differentiate the old personality from the reformed. So long as his performance on the golf course is unaffected he will always be a beacon for advertisers because that's the constant - the unchanging champion.

At least the PGA Tour sponsors are benefiting from even more attention to their number 1 star - imagine how many people will tune in to watch his next tournament... . Even now he is delivering more awareness than ever (although not for the best of reasons - but that's not my point!).


 

For more on Tiger Woods and Gatorade check out the announcement on BBC News.

Edit after live: Today (Thursday December 10th), bookmakers Paddy Power have offered Tiger Woods $1m to get behind their new betting property, 'Tiger's Birdies'. The 12month deal would include an undisclosed profit share arrangement. The bet offers 500-1 odds for anyone who can correctly predict the number of Birdies Woods scores across the first four days of a tournament.

Yes - Tiger isn't going to accept the offer but at least Paddy Power have got some free exposure in the press on the back of a clever piece of product development!

 

The Definition of Client Servicing

Another beautiful quote from Jerry Maguire:

I am out here for YOU.... You don't know what it's like being ME out here for YOU!

It is an up-at-dawn, pride-swallowing SIEGE that I will NEVER fully tell you about, ok?!

Naming Rights - This Time It's Stamford Bridge


It seems the naming rights saga has caught fire among the English FA Premier League . On the back of Newcastle United's announcement that St. James' Park is to be known as the "sportsdirect.com @ St. James' Park", Chelsea's Chief Executive Ron Gourlay has now revealed that Chelsea are preparing to follow the lead by selling the naming rights for Stamford Bridge. Like Ashley and Co. at Newcastle, Gourlay is insisting that the associated brand will only be able to add to the name, rather than actually change the name of the stadium altogether. 'Stamford Bridge' would therefore be retained in the name along with the assocation with "a suitable blue-chip company."

"Retaining the heritage of the stadium is paramount to considering such a move but we think that is achievable and on that basis we would enter into discussions over naming rights with the right partner for Chelsea", Gourlay told Chelsea TV.

"We understand that this is a sensitive issue for our fans and that is why we would keep the name Stamford Bridge in any deal".

Could it be that scenes like the below are soon to be a thing of the past within the giants of the game? Surely Abramovich doesn't need the money as much as Chelsea need the identity of their stadium?

A sensitive issue indeed, but Gouray feels that the financial advantage of selling the rights is essential.

"What we are not prepared to happen, and I am sure our fans will appreciate this, is allow our rival clubs in England and Europe to gain a competitive advantage over us in terms of the revenue they can generate through either expanding the capacity of their existing stadia or moving to a new stadium and then invest that upside in their team or the club. Those possibilities are not open to Chelsea for the foreseeable future because of the restrictions in expanding our stadium and the issues around finding a new site, so that means we have to be creative and look at our sponsorship architecture and see if we can create new value and new opportunities that keeps us competitive".

In 2004, Emirates paid Arsenal £50million to acquire naming rights on their new Ashburton Grove stadium for 15 years, and Allianz is charged £4m every twelve months for Bayern Munich's ground to bear its name. In the USA, Citigroup pay £10m so for the new New York Mets baseball arena, now called Citi Field.

Check out http://chelseafc.com for more information.

"sportsdirect.com @ St James' Park Stadium" - What do you make of the change?


"With the renaming it was always going to be whatever brand it was, at St James' Park. For the remainder of this season, we already have sportsdirect.com on the Gallowgate so we'd like to take that branding through the rest of the stadium."
Derek Llambias, Manging Director

Tampering with brand equity is risky business, particularly when the equity is built by generations of sports fanatics.

How do you think it's going to be received by the Newcastle United faithful? In changing the Official Name of Newcastle United's home ground, are they changing the very essence of the club itself?

Post your comments below and read more on the debate on BBC Sport's 606 debate

'Benefiting The Whole Football World' - East Against West, Frank Lowy and The FIFA World Cup

"We are able to show that bringing the game to Australia and having the Asian continent with us at the same time-zone will benefit not only Australia, not only Asia, but the whole football world"
Frank Lowy, Chief of Australia's FIFA World Cup Bid and Australia's Richest Man


Asia comprises the world's fastest growing economies, the fastest growing television and media audiences and the fastest growing consumer markets. Intuitively, Lowy's claim seems to be sensible. But how valid is this regional bias? The three points below try to open this up a bit.

1. The combined audiences for West and East are broadly similar


By looking at FIFA's published TV and Out Of Home (which includes pubs and other public viewing areas) cumulative viewing figures by region we can compare the 2002 World Cup held in Asia with the 2006 World Cup held in Europe.

In terms of the number of viewers, comparing Europe with Asia is hard to swing in Europe's favour. In 2002 there were 2.7 Asian viewers to every European viewer. In 2006 this figure was cut to 1.6 but still, this is a huge difference.
However, this only takes into account numbers for Asia and Europe. 'East' and 'West' is much broader.

By grouping together figures for Europe with North America, South America and Central America (EurAm) we get a better idea of what Western audiences actually add up to. We can then compare this with an Eastern group comprised of the Asia and Oceana (APAC). When we look at East vs. West in this hollistic way we get a slightly more even result. In the 2002 World Cup, held in Asia, there were only 1.3 Eastern (APAC) viewers to Western (EurAm) viewers but in the 2006 World Cup there were 1.2 Western viewers to Eastern viewers - despite the fact that the Germany World Cup was broadcast in 11 fewer EurAm territories than the 2002 World Cup.

So there wasn't that big a difference after all.

The audiences are pretty much similar from East to West. The drop off in audience attributable to changes in time-zones is nearly identical with both regions losing roughly 7% of their audience when the games were shown at more unsociable hours. Let's not forget, though, that with China's population alone being double that of the whole of Europe, Asia's 7% certainly represents more people. This brings us on to our next point - although the audiences are roughly the same, and the drop off is the same, advertisers will look for efficiency over reach and this may present the West with another argument against the Lowry.

2.  Rights fees are based on efficiency, not just reach 

Lowry also spoke about the revenue that an Australasian World Cup would bring in. He didn't go into specifics in the article I read but someone told me he'd quoted a difference of +$1bn. That's a lot of money and I'm not sure where he gets it from. Despite offering huge reach, there's going to be an awful lot of wastage in a market where the audiences are almost inconceivably large. In EurAm, penetration is much higher with a greater proportion of the total populations watching or experiencing the tournament. I don't want to waste any money speaking to people who aren't in the mood to listen, especially if there's millions of them.

Also, because there aren't many national broadcasters in the regions, the scope for competition among those looking to secure broadcast rights is smaller. Coupled with the lack of efficiency, this makes for risky - and tricky - business for those formulating broadcast revenue prediction models. Although, broadcast revenue isn't the only source of income from the tournament.

3.  A successful event needs the stadia to be full

Although we hate to admit it, everyone secretly loves the English. English football fans, like many of our counterparts, bring with them a fantastic enthusiasm for the game that heralds from decades of disappointment and ecstasy from following the nation's team. World Cup tournaments need these fans. They need them to fill up the stadiums and prevent what happened at some of Beijing's Olympic events where organisers had to give tickets away to locals for free (retail price was very high - around £90 per ticket) in order to fill the seats. In Sydney's Olympic games, kids were actually transported to the venues by buses to fill the venues with the right kind of audience.

What's the lesson here? Big TV audiences don't necessarily equate to a success on a national level.

We have a little time to go before the decisions for 2018 and 2022 will be made (December 2010) but at the moment, it seems as though the argument isn't as black and white as we may have originally thought. Let's see what FIFA say.

You can read more about Lowry's argument here
Picture found here


The Path To Immortality: Roger Federer, Muhammad Ali and The Definition of Champion

'Champions do not fall from the sky. They are born among us, live among us and are worshipped by us'

On the eve of October 30th 1974, in the Mai 20 Stadium in Kindshasa, Zaire, world Heavyweight Champion George Foreman against former Champion Muhammed Ali. After his refusal to obey his drafting for the US Army in a storm of political and racial significance, Ali had been spent over seven years forging his path to regaining a title he saw as rightfully his. Ali eventually met Foreman that wild night in 1974 and beat the man who had defeated him in the Fight of The Century three years earlier. The events before and during this famous bout are immortalised in the Academy Award winning documentary, When We Were Kings. Norman Mailer's book, The Fight, describes the events within the context of his views of black American culture. It was more than a boxing match, it was an event that defined an era.

On the afternoon of Sunday, June 7th 2009, Roger Federer will enter the Philippe Chatrier court at Roland Garros in Paris for the fourth consecutive year as a finalist in the hallmark claycourt event of the year - the French Open. It is the only one of the four tour majors Federer has never won, having lost on his four previous attempts to the same man - Rafeal Nadal. Victory will give Federer a career Grand Slam and tie him with Pete Sampras on 14 major wins. But with the coveted Coupe de Mousquetaires trophy that elluded the great American, he will surpass Sampras as, according to Andre Agassi, the Greatest tennis player to have graced the sport.

The significance of this victory, should it come, is not weighted in the political or social history of that October night in Zaire, but rather in an affirmation of a man - like Ali - who is widely considered to be a God of his sport. Greatness comes in many forms, but in individual sports like tennis, boxing or golf, the pressures - personal and professional - are so great that they can break even the most gifted. Now, after six years being at the top of the game, Federer is on the cusp of sporting immortality.

Illness at the start of the 2008 season, along with his recent loses to Rafael Nadal not only at Roland Garros but then at Wimbledon and Melbourne Park have revealed a certain frailty within Federer that had otherwise gone unnoticed. It is this frailty - this mortality - that reminds us that Roger Federer, although a global superstar, is human. Like every one of us, he has to overcome emotions like anxiety, fear and self-doubt in order to succeed. In Federer we see a man who has dedicated his life, his soul and his very being to his sport. In the process he has had to bear great suffering: breaking down in tears at the Australian Open final and having to stand and watch as Rafael Nadal lifted a Wimbledon trophy that would have seen him become the first man in history to win six consecutive titles at the All England Club.

This year's French Open has been an up-and-down tournament for Federer and his route to the final is arguably his hardest yet (incidentally, this will be his 19th - tying Ivan Lendl's record). Two of his last three matches have seen him pushed to the very edge of defeat, taken to five sets first by Tommy Haas in the fourth round and then in the semi-final by Juan Martin del Potro. In both matches there were times when Federer looked down and out, staring down the barrell of the gun with no response and no means of stopping what was coming; yet he prevailed. His path to the final demonstrated all the qualities of a Champion - a belief greater than the sum of his doubts and a determination more powerful than the strength of his body - qualities that he will need with him if he is to succeed tomorrow.

Standing in Federer's way is Robin Soderling, an apparent anomaly of the game. Thrust from obscurity, Soderling  has smashed all odds to shreds with victories over David Ferrer, four-time defending Champion Rafael Nadal and having come from 1-4 down in the fifth set to beat Fernando Gonzalez in the semi-final. Should Soderling continue this remarkable run and halt Federer on his quest for greatness there are many who feel he will be defying the very natural order of things - not just of sporting achievement but of human accomplishment, of reward for the deserved and of justice itself.

However, should Federer succeed in defeating his foe (as he has done in their nine previous meetings), he will prove once and for all that the greatest Champions are those who are humble in defeat and gracious in victory; like Ali before him he will prove that true Champions are those who pursue universal greatness when the world seems to be against them; he will prove that the Champion Elite are those who harvest, year after year and season after season, a burning hunger and passion in their hearts so deep and so bright that no man no matter how strong and no matter how fierce can ever extinguish their unfaltering goal: to be the best there has ever been.

Roger Federer, I wish you the very, very best of luck.

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