Marketing Strategies in the London 2012 Olympics Event Analysis

This report provides an in-depth analysis of the marketing strategies employed during the London 2012 Olympic Games. It examines the impact of the event on business marketing, focusing on the significance of team synergy and ethical conduct in achieving goals. The report highlights the role of the Olympics as a major marketing platform, with a focus on sponsorships, broadcasting rights, and athlete endorsements. It explores how companies like Proctor & Gamble and brands like Nike and Adidas leveraged the event to build brand awareness, increase sales, and expand into new markets. The report also discusses the evolution of marketing approaches, comparing the London Olympics with subsequent events and analyzing the challenges and opportunities for businesses in sports marketing. The report includes an examination of the benefits of athlete sponsorships, including brand awareness, increased sales, expansion, and new product launches, providing a comprehensive overview of the marketing landscape of the London 2012 Olympics and its lasting impact.

London Olympics
2012

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The Britain Olympic association have successfully won the bid to organise Olympics in
United Kingdom. This is considered to be one of the biggest sporting event ever existing. This
event is known for its history and tradition which makes it stand out from other sporting event.
This country have availed this opportunity 3rd time which were undertaken in the year 1908 and
1948. The country is very well capable of hosting such event as it is supported by its economies
and infrastructure. This nation have to initiate various gentrification programme to ensure that
event is a success.
TASK 1
In my opinion working in a team stands crucial as it helps in creating synergy which is
helpful in ideal accomplishment of tasks. A team is comprised of diverse member working
together to achieve defined goals (Davies and Mackenzie, 2014). Each member is possessed with
a particular skill set which helps in fulfilling task in ideal manner. There are two manner in
which task can be done i.e individuals can work as a team or can work individual on their
respective parts (Taylor, 2012). We decided that we will work as a team rather that fulfilling our
individual responsibilities. We were told that we have to perform within our perimeter and
maintaining ethical code of conduct. This approach that we undertook is beneficial for business
but the time undertaken to complete the task increased. This happened due to lack of
coordination and communication between us. This is one of the biggest obstacle that we as a
team faced. The clear description and fulfilment of task fails to solve the purpose of working as a
team. The presentation was to be completed by us as a team and to be achieved within specified
time. The task was accomplished in manner defined. The part that worked well in this operation
is that it carried the information which is to be inculcated in the presentation and it had the depth
which is essential to facilitate understanding to viewers. There were a lot of problems in role
clashing, diverse views and opinion clashing and these issues were resolved in norming stage of
team development. It is necessary to have a rhythm and understanding to achieve a certain level
of productivity.
TASK 2
London in successful in achieving bid for the 3rd time to host most renowned sporting
event in the world. Olympic and Paralympic games are to be organised in the country identified
needs for major developmental activities in the country. It is necessary to complete the
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gentrification tasks before the deadline provided by the Olympic authority. The hosting of such
events provides numerous activities to business organisations to market their products and
services through sponsoring events or athletes (Davis, 2012).
The topic which is undertaken in this assignment is “Marketing in Olympics event”. The
reason stands behind it that Olympics is one of the largest and profitable marketing event
witnessed by an organisation. Apart from being greatest sporting event it has now become a solid
business event as well. Marketing campaigns in such events is benefit for both business as well
as the host nation. The journal released by the IOC defines marketing programme as a tool to
which ensures financial stability to Olympic event. The two major sources which are defined to
generate huge revenue for businesses are broadcasting rights and sponsorships.
According to Gerhard Heiberg (IOC marketing head) states that Marketing programmes
are continuously growing and are essential from event and athlete point of view. The reason
stands for the same is that there are billions of viewers of this event and so many countries
participation there cannot be a bigger platform to advertise products and services of a business.
According to Ferrand, Chappelet and Séguin (2012), sponsoring an athlete is an major
approach which is utilised by the company in advertising its products and services. The reason is
that a business organisation earns large amount of profits and recognition through this marketing
programme. Every organisation aims to advertise their products with this event may carry a
relation with sports or not.
Sponsoring an athlete in such events can be seen overtime. This tool of aggressive
marketing helps in garnering positive outcomes business. Athletes in such events carries a
number of advertisement with itself which are advertised by him in front of million of viewers
worldwide. The name of the companies are branded on the jersey that they wear. Major sports
brand such as Nike, Adidas and Oakley use this tool effectively to market their products and
services. These organisation enters in agreement with famous athletes who are paid heavily to
endorse company's offering in the event (Prayag and et al., 2013). There are variety of
approaches which are used in this marketing tool such as appearing with a defined, advertising
on the equipment used and sponsored by sport company. The reason for this is being carried out
is that organisation get benefited from such programme. The promoted organisation is able to
charge premium pricing for the equipment and achieve higher level of profitability. These
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organisation often modify the outfit wore by the sportsperson so that they are more adoptable
and suitable to the circumstances of consumers.
(Source: Athlete sponsorship, 2012)
Proctor and gamble was one of the leading sponsor for London Olympics 2012. this
organised sponsored around 150 athletes including star attractions such as Michael Phelps, Lin
Dan, Rudy Fernandez and many more (P&G Sponsors More Than 150 World-Class Athletes at
the London 2012 Olympic Games, 2012). This organisation released a statement stating that
“Company is delighted to introduce P&G's line of athletes for the Olympic tournament.
Organisation is sponsoring hard work, passion and commitment of sportspersons which is similar
to that of a company”.
A lot changes in the market within a four year gap between two Olympics which takes
place. The changes in the market, political and environment domain determine level of
participation of companies in branding programme. The two events are being compared on
marketing grounds to ascertain the changes which took place in the mean time of 4 years. Aldi is
one such supermarket chain in United Kingdom which is expecting Rio Olympics to carry a
same impact as of London Olympics of 2012. Research conducted states that there will be a lot
less viewership of the recent event therefore minimising impact of the same in the British
markets. The recent event have garnered attention through social networking platforms rather
than on other media such as T.V. And print media. For the market of United Kingdom it has
become risky business to go for athlete sponsorships as it may not achieve results which are
desired out of them. Business organisation are opting for variety of marketing programme to
advertise products and services. Nike and Adidas are the front runner and investing a whopping
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Illustration 1: Athlete sponsorship

200 million euros to have their name on the Olympic sponsorships. The benefit which can be
availed is more brand recognition and awareness which may or may not results in financial gains
(Fussey, Coaffee and Hobbs, 2016). Rather than opting for Olympic sponsorships businesses are
now targeting star athletes or strategies of ambush marketing to endorse their companies. The
advertisements are now carrying emotional connection with viewers rather than just promoting a
company. Strategic marketing have now taken the centre stage. The efforts are now aimed to
form a connection rather than to been seen on T.V.
The change in the scenario causes a significant on the company's profitability. The money
spent by sponsors are not sure that spendings will influence company's operations to expected
level. The spending pattern have been same but its effect have been reduced. But the
sponsorships are to be accompanied by suitable marketing strategy to make the best out of the
money spent on such events. People have started questioning their questioning their association
with Olympics and its effect on company's revenue earning capacity. There is decline in people
who watch Olympics which is another reason for sponsorships to go down in vain. The interest
of various consumer groups is now undertaken before formulating a strategy for the company.
There are in-numerous number of companies and brands which are opting for Olympic event
sponsorships but it is difficult to make sure that every organisation achieve positive outcomes
from the same. Usain Bolt is Jamaica leading sprinter and is one of heavily sponsored athlete
(earning $10 million per year )by Puma and organisation is heavily benefited from this marketing
practice. This is not every organisation attains this level of profitability from the event.
According to Hopwood, Skinner and Kitchin (2012), Sports sponsorships are contemporary age
marketing tool adopted by the sports brands. It is an technique preferred by entrepreneurs to
market their products and services. The mega organisation are investing heavy amounts in
domain of sports better than before. It is defined to be mutually beneficial relation for the athlete
as well as for the company. The funds given in return to promoting products and services ensures
financial stability to athlete necessary for his survival whereas benefits to a business can be
defined in an elaborative manner (Kian, Bernstein and McGuire, 2013). The major opportunities
to a business are:
Build brand awareness: the first and most crucial aspect which can be availed by a
business are that athlete sponsorship helps in making people aware about existing of a brand. An
athlete when promotes a product to such major sporting event it catches eyes of more and more
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people across the world. The exposure offered to these mega sports events is to million of
viewers witnessing an event. Usain Bolt's association with Puma helps more and more people be
aware about existence of certain brand.
Increase in sales of products: The another major benefit which can be assessed by the
company through athlete sponsorships are improved sales figures of an organisation. When their
favourite player endorses a certain brand his followers tend to follow. The agreement between
Nike and basketball legend LeBron James is beneficial for a company. The followers of the
legend tend to follow him and buy endorsed product therefore impacting sales of the company in
positive manner.
Expansion: There can be no bigger event for a company who wishes to expand its
products and services to international boundaries (Thornley, 2012). The sponsoring an athlete
helps an organisation to enter in the market with their own player promoting a product. The
leading example of the same is basketball star Al Horford promoting major brands such as Nike,
Dove and Intel helped them to enter into markets of Boston as their local player is promoting that
product. These organisation can open up retail outlets and to make it more effective basketball
star can attend opening. Press conferences and social media tactics are other ways through which
product can be expanded into newer markets.
Launching a new product: The company is also derives with product innovations and
development of technologies which ensures improved performance of an athlete (Kavetsos,
2012). Under armour is a company which is promoted by legendary athlete Michael Phelps and
have been successful in catching eyes of the people during mega event. The company have
successfully integrated technology in sports range. The company have launched HealthBox
which is a smart band aimed to identify the amount of work done by an athlete.
New target audience: When a company forms an association with an athlete. He possess
a number of follower which are influenced by his behaviour. The company who is forming a deal
with sports help in establishing a brand name for itself (Local athletes, companies benefit from
sponsorships, 2015). Under armour have signed a deal with Tottenham hot spurs have worked
well for the brand and are able to maintain a brand name for the company. The association with
the football team automatically helps a company to enter into new target segment altogether and
to achieve ideal results. Example: Lexi Thomson, a renowned golfer when promoted by a
company helps undertaking golf followers as well.
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CONCLUSION
It can be concluded from the above report that, Olympic are the major events organised in
the history of world. Sponsorships play a crucial role in this mega event and carries benefit for
both the sides. This helps in maintaining financial stability for a business as well as helps
business organisations into promoting their products and services. Marketing through athletes is
essential as it helps in ideal promotion of goods and services of a business. The emphasis is on
attraction of customers from around the world. These mega events are undertaken in promoting
goods as they are perceived as ideal brand throughout the world. This tool of marketing is
beneficial for business as it helps in brand awareness, product development and enhancing sales
of the commodity.
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REFERENCES
Books and Journal
Davies, A. and Mackenzie, I., 2014. Project complexity and systems integration: Constructing
the London 2012 Olympics and Paralympics Games. International Journal of Project
Management. 32(5), pp.773-790.
Davis, J.A., 2012. The Olympic Games effect: How sports marketing builds strong brands. John
Wiley & Sons.
Ferrand, A., Chappelet, J.L. and Séguin, B., 2012. Olympic marketing. Routledge.
Fussey, P., Coaffee, J. and Hobbs, D., 2016. Securing and sustaining the Olympic City:
reconfiguring London for 2012 and beyond. Routledge.
Hopwood, M., Skinner, J. and Kitchin, P., 2012. Sport public relations and communication.
Routledge.
Kavetsos, G., 2012. The impact of the London Olympics announcement on property prices.
Urban Studies. 49(7), pp.1453-1470.
Kian, E.M., Bernstein, A. and McGuire, J.S., 2013. A major boost for gender equality or more of
the same? The television coverage of female athletes at the 2012 London Olympic
Games. The Journal of Popular Television. 1(1), pp.143-149.'
Prayag, G., Hosany, S., Nunkoo, R. and Alders, T., 2013. London residents' support for the 2012
Olympic Games: The mediating effect of overall attitude. Tourism Management. 36,
pp.629-640.
Taylor, C.R., 2012. The London Olympics 2012: what advertisers should watch.
Thornley, A., 2012. The 2012 London Olympics. What legacy?. Journal of Policy Research in
Tourism, Leisure and Events. 4(2), pp.206-210.
Weed, M. and et al., 2012. Developing a physical activity legacy from the London 2012 Olympic
and Paralympic Games: a policy-led systematic review. Perspectives in public health.
132(2), pp.75-80.
Online
P&G Sponsors More Than 150 World-Class Athletes at the London 2012 Olympic Games. 2012.
[Online]. Available through: <http://news.pg.com/press-release/pg-corporate-
announcements/pg-sponsors-more-150-world-class-athletes-london-2012-olymp>.
Local athletes, companies benefit from sponsorships. 2015. [Online]. Available
through:<http://www.bendbulletin.com/business/3222258-151/local-athletes-
companies-benefit-from-sponsorships>.
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