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

McDonald's' historical association with the Olympics 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.

McDonald's' historical association with the Olympics 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.

 
Image source: LA Times Olympic Blog
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