A Buildup Begun
—
Corps Jump Aboard
Accelerating Beijing Bandwagon
Gearing up for what may prove to be
the most momentous and geopolitically significant PR event in the
history of the world, Olympic organizers, corporations and governments
are leaping hurdles of logistics, geography and ideology as they
accelerate into the home stretch for the 2008 Beijing Games officially
taglined as: “One World – One Dream.”
Looking to leverage the world’s
fastest growing economy and get their brand in front of China’s
1.3 billion potential consumers, corps having paid out a collective
$1 billion to become part of The Olympic Partner Program include
Johnson & Johnson, Coca-Cola, Atos Origin, General Electric, Kodak,
Lenovo, Manulife, McDonald’s, Omega, Panasonic, Samsung, and Visa.
At the two-decade mark, their Beijing Olympic buy-in will be more
than 800 percent of the sum invested in 1988.
Conceived in 1985, The Olympic
Partner Program (which the International Olympic Committee likes
to call “TOP”) provides for exclusive worldwide marketing rights
for both the Winter and Summer Games. According to the IOC, sponsorship
dollars amount to more than 40 percent of Olympic marketing revenue.
And during the 2001–2004 cycle, total revenue generated reached
$4 billion.
Adding to the sponsorship equation
on the China side, partnering with the Beijing Organising Committee
for the Games of the XXIX Olympiad (BOCOG), are a growing number
of firms at varying tiers of participation. These include Bank of
China, China Netcom, Sinopec, PetroChina, China Mobile, Air China,
Haier, Sohu, Yili, Tsingtao Beer, Yanjing Beer, BHP Billiton, and
the venerable textile producer, HYX China (Group), Ltd., founded
in 1927 as Heng Yuan Xiang, now with annual revenue of about 4 billion
yuan.
Western Windup
While Chinese firms enjoy an undeniable
home field advantage, Western firms on the sponsorship roster are
pushing hard for the China gold. For instance, ramping up operations
to coincide with the games, by 2008 McDonald’s expects to expand
its China chain presence from 750 to 1,000 units. Meanwhile, General
Electric has launched an Olympic-themed billboard campaign.
By 2008, GE is out to double its
China revenue from where it now stands, at about $5 billion a year.
And Peter Foss, GE’s President of Olympic Sponsorship/Corporate
Accounts, told the Associated Press (AP) that "The Olympics is one
way we can speed up the process." Meanwhile, Olympic officials and
NBC, one of the old big three US (non-cable) networks, are set to
reveal the exotic Eastern capital of Beijing to a US audience still
largely unfamiliar with the city. Gary Zenkel, executive vice president
of NBC, tells AP, "This is perhaps the most exciting Games we've
ever broadcast.” NBC will pay nearly $900 million for broadcast
rights in the States. That’s nearly $300 million more than the network
paid for the rights to broadcast the Winter Games in Turin.
For sponsors, Olympic officials
and the nation of China, this is an unprecedented opportunity to
put the best face forward. Worldwide, more than 4.5 billion are
expected to tune into the games. About 800,000 foreigners are expected
to visit Beijing and the capital city is anticipating that another
1 million of its own citizens will arrive from out of town.
From a global marketing prospective,
Scott Kronick, heading up Oglivy Public Relations in China, to AP
said, "The Beijing Games are like the Olympics to the power of two."
Hitting The Mark
China is investing heavily in renovating
and creating new venues, ranging from the Workers' Indoor Arena
near Beijing’s Tiananmen Square to equestrian courses in Hong Kong,
and other sites in the cites of Shanghai, Qingdao, Tianjin, Shenyang
and Qinhuangdao.
On or ahead of schedule,
Beijing continues its forward charge with a citywide renovation
and refit. Nearly complete is the construction and renovation
of the city's 31 athletic venues. Eleven of those
facilities will be new, including the 91,000-seat National Olympic
Stadium, a wild high-concept design by Herzog & de Meuron, coming
in at a price tag projected at $377 million. Housing the swim and
dive events, the new National Aquatics Center (with an exterior
look based on the molecular and aesthetic structure of soap bubbles)
is expected to run about $120 million.
Bolstered infrastructure expected
to be in place in advance of 2008 includes an airport upgrade, with
a new 3,800-meter runway and 900,000-square-meter terminal structure,
plus five bridges and 59 roads that will be either newly constructed
or renovated to accommodate traffic to and from venues.
Not stopping at steel and concrete,
the Beijing Municipal Government is continuing an aggressive urban
beautification and reforestation project. City managers plan to
plant trees on an additional 12,000 hectares in 2006, with the final
objective of increasing the city's green coverage to 42.5 percent.
In predicting the eventual result
of all this momentum, during a reception in Turino at the winter
games, Juan Antonio Samaranch, former president of the IOC, put
it simply: "Beijing will be the most successful Olympic Games in
history."
In slight contrast to Mr. Samaranch’s
rather bold declaration, a more Chinese-style statement was forthcoming
from Liu Qi, President of the Beijing Organizing Committee for the
Games of the XXIX Olympiad. He said, "We carefully planned, organized
and implemented our work. We have made solid and trustworthy progress."

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