With the eyes of the world turned toward Beijing, China’s capital was awarded the right to host the 2008 Olympic Games on July 13, 2001 in Moscow. People will remember this historic moment and a new page will be written in the Olympic history.
The celebration extended to all the Chinese who live abroad, uniting them with their homeland Through the Games, China and the world will be bound closer together than ever.
Looking ahead to 2008, it is clear that the opportunities are vast. In staging a most memorable Games in history, the Beijing Organizing Committee (BOCOG) will provide its corporate partners with an opportunity to invite the world in and introduce China to the world.
A poll conducted by the Beijing 2008 Olympic Games Bid Committee showed that 94.6% of the Chinese people supported the bid. This huge good will and enthusiastic support of the Games will translate into exceptionally high levels of recognition and support across the country for those companies who sponsor the Games.
For international entities looking to expand into the thriving Chinese market place, a partnership with the 2008 Olympic Games will deliver a powerful business opportunity for growth, and product/service showcasing while serving to strengthen and build ties of friendship throughout China.
For Chinese firms, the Olympic Games provide an honorable opportunity to enhance their image and demonstrate their strengths in key technologies, products and services while gaining recognition for their commitment to China’s national quest for professional excellence in all realms of business.
The journey begins here. It is a journey toward unbounded opportunities, toward the most dynamic economy and most promising marketplace in the world.
Section 1 Beijing 2008 Olympic Games Sponsorship Programme
The Sponsorship Programme developed for the 2008 Olympic Games is the most comprehensive sponsorship package ever created in association with the Games. It provides an all-encompassing, five-year calendar of events and opportunities. It is designed to consolidate, enhance and protect the rights, benefits and privileges of the sponsoring corporations, which secure marketing rights to the 2008 Olympic Games, the Chinese Olympic Committee and the Chinese Olympic Teams.
The Beijing 2008 Olympic Games Sponsorship Programme shall abide by the Olympic Charter and adhere to the Olympic Ideals and the three concepts of ‘Green Olympic Games, High-tech Olympic Games and People’s Olympic Games’;assist in the promotion of the Olympic Movement, the promotion of the Olympic image and brand awareness of the Beijing Games and COC in and outside China;ensure financial sufficiency and stability, and reliable technical and service support for the staging and operation of the Beijing 2008 Olympic Games; provide a unique Olympic marketing platform for both Chinese and foreign enterprises and encourage the broad participation of Chinese business entities to enhance their corporate image and brand awareness through their Olympic association, and provide quality services to sponsors and maximize the return on their investments while helping them forge long-term partnerships with the Olympic Movement in China.
Sponsorship of the Beijing 2008 Olympic Games will be developed on both the international and national levels. The TOP VI Programme supports the Olympic Movement internationally, including the Beijing Games, while the Beijing 2008 Sponsorship Programme supports the Olympic Games at the national level within the host country.The Beijing 2008 Sponsorship Programme consists of three tiers of support:
Beijing 2008 Partner
Beijing 2008 Sponsor
Beijing 2008 Supplier( Exclusive/ co-exclusive)
For each tier, there is a price benchmark. Possible price variations will be allowed to reflect specific industry conditions and competition and specific benchmark prices will be detailed further during the sales process with all interested entities.
Olympic sponsors at all levels of the BOCOG programme will help to promote Olympism throughout China and make significant contributions of technology, products and services to support the operations of the Beijing Organising Committee and the staging of Beijing 2008, the COC and the Chinese Olympic Team. The level of support will determine the extent of the marketing rights granted to each corporation. These rights will be exclusive marketing rights within each cateogry within the host country.
III. Rights and Benefits
Sponsors provide direct and significant support to BOCOG, the COC and the Chinese Olympic Team in the form of cash and/or value-in-kind. In return, sponsors will enjoy the corresponding rights and benefits designed by BOCOG and listed below.
Ø Use of BOCOG and/or COC marks, designations for the purposes of advertising and market promotions
Ø Product/service exclusivity in specific categories
Ø Hospitality opportunities at the Olympic Games, including: accommodation, accreditation, tickets for opening and closing ceremonies and competition events, sponsor hospitality village, etc.
Ø Preferred option to purchase TV ad space and billboards during the Games period
Ø Preferred option to purchase sponsoring opportunities of cultural programs and signature events such as the Torch Relay
Ø Participation in sponsor workshops and observations organized by BOCOG
Ø BOCOG sponsor recognition program and acknowledgements
Ø Protection of sponsorship rights via the anti-ambush marketing program of BOCOG
The rights and benefits are differentiated between each tier in proportion to the specific contributions made by the partners, sponsors and suppliers to the Beijing 2008 Games.
IV. Sales Process
(I) Sales approaches
In the spirit of openness, transparency and fairness, different sales approaches will be implemented to address the specific market conditions in all categories:
Ø Open Sales: Notice of sales will be made public and request for proposals will be issued.
Ø Selective Sales: Invitations will be sent out to a shortlist of companies capable of satisfying specific technical requirements needed to ensure the success of the Games.
Ø Individual Sales: Face-to-face negotiations will be conducted with companies in a given product category able to satisfy technical requirements for the Games.
(II) Sales Steps
In a broad line, the following steps will be taken:
a) BOCOG calls for interest or issues request for proposals
b) Interested companies submit an expression of interest
c) BOCOG Evaluation Group exams credentials of interested companies
d) BOCOG sales team discusses with qualified companies for proposals and offers
e) Companies submit official sponsorship proposals/offers
f) BOCOG Evaluation Group proposes sponsor-candidates
g) BOCOG determines sponsoring companies with approval of the IOC
The number of steps specifically taken in real sales process may be added or reduced subject to necessity.
(III) Timeline of Sales
In view of the differences in the value of contributions by each tier of sponsorship, a timeline of the sales process will be developed to prioritize sales to the largest group of contributors first, beginning with BOCOG’s potential National Partners. The process may produce overlapping sales activities as the market and contract negotiations evolve.
Partner 4rd quarter 2003 – 4th quarter 2004
Sponsor 2nd quarter 2004 – 2nd quarter 2005
Exclusive Supplier/Supplier 4th quarter 2004 – 2nd quarter 2007
V. Evaluation and Measurement Criteria
Generally speaking, the following criteria will be applied in the process of selecting sponsors:
Ø Corporate strength and accountability. Companies must be prestigious Chinese or international enterprises, enjoying market leadership, boasting good growth prospects, financial strength and health, and the ability to generate adequate cash flow in order to meet the sponsorship investment requirements.
Ø Quality and reliability of product/service. Companies should be able to supply sufficient top-notch and reliable products/technology/service as required to ensure the sound operation of the Games.
Ø Financial pledge/investment. Companies should make competitive financial offers, which is one of the key criterion for selecting sponsors
Ø Brand alignment. Companies must possess a good reputation and social image, identify with and boost the Ideals of the Olympic Movement and the concepts of the Beijing Olympic Games. In addition, their products should be environment-friendly.
Ø Marketing activation. Companies should invest an adequate amount of financial and other resources in their promotions, advertising and general activation efforts in order to fully leverage the Olympic marketing platform and thereby assist in promoting and propagating the Olympic Ideals and Beijing Games.
Section 2 Beijing 2008 Olympic Games Licensing Programme
I. The Olympic Games Licensing Programme
An Olympic Games License is an agreement that grants the rights to use Olympic marks on products for retail sale. In return, licensees pay royalties for the rights, which go directly toward funding the Olympic Games.
The program aims at promoting the Olympic Ideals and the Olympic Brand, providing quality consumer touch points for the inspiration of the Games. It thus consists of the manufacturing of souvenir products that are usually of a festive and commemorative nature, such as pins, T-shirts, baseball caps and the like. Building on each Games’ experience, the programme has evolved into an integrated design approach. It has adopted a comprehensive and cohesive merchandise range using quality products that enhance the overall presentation of the Games.
Olympic licensing provides companies in the host country with a great business opportunity to produce and sell potentially large quantities of Olympic goods, through which, the licensees may have the opportunities to:
i. Gain considerable profit through producing or selling of the licensed products
ii. Enhance brand image and increase market share and sales
iii. Develop new merchandise and product lines and expand into new markets
iv. Develop direct and close contacts with consumers and achieve brand loyalty among them
II. Beijing 2008 Licensing Programme
Ø To promote the brand image of the Beijing Olympic Games and the COC
Ø To express the unique culture of China and Beijing by offering an array of traditional cultural products
Ø To make a strong effort to involve Chinese enterprises in Olympic licensing
Ø To showcase Chinese products and build the brand image equation that conveys a quality message, i.e.‘Made-in-China = High Quality’
Ø To raise funds for the Beijing 2008 Olympic Games
2. Management and development phases:
The Beijing 2008 Licensing Programme will continue to promote the Olympic Ideals and Olympic Image with an appealing blend of Chinese culture, helping to shape a unique image for the Beijing 2008 brand.
To follow the brand positioning, product categories will be clearly defined and a broad range of product lines will be developed. With this brand management approach, the program will adopt a segmented market strategy, ensuring that Beijing 2008 licensed products will be available in a broad sample of styles and at a wide range of prices to target precisely different consumer segments.
The program is comprised to two parts, a National Programme and an International Programme. The National Programme will start in late 2003 while the International Programme will start after the Athens 2004 Olympic Games, subject to the conclusion of agreements with the required NOCs.
All the licensed products must be designed and produced according to the BOCOG and COC graphic standards manuals, which provide clear guidelines for the use of the emblem and other marks of BOCOG and the commercial marks of the COC.
Selection of licensees:
The following principles will be followed in choosing a licensee, either in manufacturing or distribution:
Ø Licensees will be selected on the basis of marketing research, qualification assessment, and first-hand investigation.
Ø The overall investigation will cover financial status, quality control management, design ability, production capacity, environmental protection, anti-counterfeit measures, marketing strategy, after-sale services, logistics, etc.
Ø Licensees shall have the financial ability to pay guarantees and royalties on time
Ø The contract term may vary and contract renewals will be subject to prior performance.
Licensing agreements will include a royalty advance and a minimum guarantee. The advance is a non-refundable deposit for the licensing rights while the guarantee is the minimum amount a licensee will pay, against which royalties may be offset.
III. Olympic Stamp and Coin Programs
Commemorative Stamp Program
There will be three specific initiatives within the Commemorative Stamp Program: regular issues, personalized stamps and philatelic products. The themes will cover sports-related events (the Olympic Games, the image of the IOC, the image of BOCOG, the image of the COC, Olympic sports events, the Torch Relay, and the opening and closing ceremonies), culture (Chinese traditional culture, Beijing traditional culture and sceneries), and sports venues, etc.
The program is planned to start in 2003 and last 5 years.
Commemorative Coin Program
This program includes both commemorative coins and circulating coins. The themes will cover sports-related events (the Olympic Games, the image of the IOC, the image of BOCOG, the image of the COC, Olympic sports events, the Torch Relay, and the opening and closing ceremonies), culture (Chinese traditional culture, Beijing traditional culture and sceneries), and sports venues, etc.
The commemorative coin program will include mainly a mixture of gold and silver coins, while the circulating program consists mainly of copper, nickel and paper.
The coin program will also start in 2003 and conclude in 2008.