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Brands chase Beijing Games boost Brands chase Beijing Games boost
(about 3 hours later)
By Bill Wilson Business reporter, BBC NewsBy Bill Wilson Business reporter, BBC News
Fans wave material for Coca-Cola, Lenovo, Samsung and other sponsorsFans wave material for Coca-Cola, Lenovo, Samsung and other sponsors
As athletes prepare to strike sporting gold at the Beijing Olympics, so big-name brands are hoping that time and effort spent in preparation for the games will also prove lucrative. As athletes prepare to strike sporting gold at the Beijing Olympics, so big-name brands are hoping that time and effort spent in preparation for the Games will also prove lucrative.
They include global giants like Adidas, Coca-Cola, McDonald's, Kodak, and VW, while Chinese firms also want to be associated with their home games. They include global giants such as Adidas, Coca-Cola, McDonald's, Kodak and VW, while Chinese firms also want to be associated with their home Games.
Lenovo, China Mobile, Sinopec, and Air China are among those looking to use the one-off occasion to their benefit.Lenovo, China Mobile, Sinopec, and Air China are among those looking to use the one-off occasion to their benefit.
'Building recognition''Building recognition'
Chinese PC maker Lenovo is the only home-based firm among the International Olympic Committee's top partners for 2008, although other home brands are partners of the Bocog local organising committee.Chinese PC maker Lenovo is the only home-based firm among the International Olympic Committee's top partners for 2008, although other home brands are partners of the Bocog local organising committee.
"Brand awareness is our number one goal," declares Alice Li Lan, Lenovo's vice-president of Olympic marketing and head of brand communications on the mainland."Brand awareness is our number one goal," declares Alice Li Lan, Lenovo's vice-president of Olympic marketing and head of brand communications on the mainland.
"The real return on investment from our Olympic sponsorship will be heightened awareness of Lenovo as an international computer company." IOC Top Partners for 2008 Coca-ColaAtos OriginJohnson & JohnsonGEKodakLenovoManulifeMcDonald'sOmegaPanasonicSamsungVisa"The real return on investment from our Olympic sponsorship will be heightened awareness of Lenovo as an international computer company." IOC Top Partners for 2008 Coca-ColaAtos OriginJohnson & JohnsonGEKodakLenovoManulifeMcDonald'sOmegaPanasonicSamsungVisa
The Games will be supported by more than 30,000 pieces of Lenovo equipment which it hopes will make a great impression on customers. The Games will be supported by more than 30,000 pieces of Lenovo equipment which the company hopes will make a great impression on customers.
"Lenovo is well-known in China, and we are in the process of building recognition throughout much of the rest of the world," says Ms Li Lan."Lenovo is well-known in China, and we are in the process of building recognition throughout much of the rest of the world," says Ms Li Lan.
The firm will have more than 500 technicians supporting the operations of more than 30,000 pieces of equipment at the games, so much management - from gathering and storing participant data to displaying the scores - will depend on Lenovo products and services, she points out. The firm will have more than 500 technicians supporting the operation of its equipment at the Games, so much management - from gathering and storing participant data to displaying the scores - will depend on Lenovo products and services, she points out.
"Our advertising connected to the Olympic Games varies across the world, and it will include print, out of home and web, and in some countries, television.""Our advertising connected to the Olympic Games varies across the world, and it will include print, out of home and web, and in some countries, television."
In Australia, Lenovo has been running its advertising tagged with local promotions around the games and it has aired adverts on national TV in China. In Australia, Lenovo has been running its advertising tagged with local promotions around the Games and it has aired adverts on national TV in China.
Lenovo athlete ambassadors have also been selected around the world, and many are included in advertising, like Liu Xiang in China. Lenovo athlete ambassadors have also been selected around the world, and many are included in advertising, such as hurdler Liu Xiang in China.
'Important market''Important market'
No doubt, Lenovo - which designed and sponsored the Olympic torch - will have been cheered by a recent online survey of 1,000 Chinese citizens by research consultancy Sport & Markt.No doubt, Lenovo - which designed and sponsored the Olympic torch - will have been cheered by a recent online survey of 1,000 Chinese citizens by research consultancy Sport & Markt.
It put Lenovo top of its list of Olympics-associated brand awareness in China, with a 38% recognition factor.It put Lenovo top of its list of Olympics-associated brand awareness in China, with a 38% recognition factor.
Close to half of Adidas' sporting goods are manufactured in ChinaClose to half of Adidas' sporting goods are manufactured in China
That was followed by Coca-Cola, China Mobile, Samsung, Yiligroup, Bank of China and Adidas.That was followed by Coca-Cola, China Mobile, Samsung, Yiligroup, Bank of China and Adidas.
Sports kit maker Adidas, involved with the games since 1928, is determined to use Beijing 2008 to secure a bigger slice of the Chinese sports kit market, where it is in strong competition with Nike. Sports kit maker Adidas, involved with the Games since 1928, is determined to use Beijing 2008 to secure a bigger slice of the Chinese market, where it is in strong competition with Nike.
"The Beijing 2008 Olympic Games will serve as a platform for the Adidas brand to become the leading sports brand in China in 2008," says Erica Kerner, director of Adidas's Beijing 2008 Olympic programme."The Beijing 2008 Olympic Games will serve as a platform for the Adidas brand to become the leading sports brand in China in 2008," says Erica Kerner, director of Adidas's Beijing 2008 Olympic programme.
"Impossible is Nothing" is its integrated Olympic marketing campaign that "aims to bring sport engagement with Chinese consumers to a new level"."Impossible is Nothing" is its integrated Olympic marketing campaign that "aims to bring sport engagement with Chinese consumers to a new level".
It is the German giant's biggest marketing campaign ever created in, and rolled out in, a single market.It is the German giant's biggest marketing campaign ever created in, and rolled out in, a single market.
Through a combination of TV, print, outdoor, public relations, digital, point-of-sale and roadshows across the country, the campaign includes various platforms enabling consumers to get close to Adidas athletes.Through a combination of TV, print, outdoor, public relations, digital, point-of-sale and roadshows across the country, the campaign includes various platforms enabling consumers to get close to Adidas athletes.
Bocog Top Tier 2008 sponsors AdidasCNCBank of ChinaSinopecCNPCChina MobileVolkswagenJohnson & JohnsonAir ChinaPICCState GridBocog Top Tier 2008 sponsors AdidasCNCBank of ChinaSinopecCNPCChina MobileVolkswagenJohnson & JohnsonAir ChinaPICCState Grid
Adidas expects group sales to exceed 1bn euros by 2010 ($1.55bn; £790m), helped in part it hopes by a potential sporting boom in China post-Games. Adidas expects group sales to exceed 1bn euros by 2010 ($1.55bn; £790m), helped in part, it hopes, by a potential sporting boom in China post-Games.
"The importance of sports and the sporting goods industry will further increase in China," says Ms Kerner."The importance of sports and the sporting goods industry will further increase in China," says Ms Kerner.
For the Adidas group, China will continue to be an important manufacturing and sales market, with nearly 50% of all its products being produced in China.For the Adidas group, China will continue to be an important manufacturing and sales market, with nearly 50% of all its products being produced in China.
ShowcaseShowcase
At the IOC's worldwide IT partner Atos Origin, there are different expectations to those at Lenovo and Adidas.At the IOC's worldwide IT partner Atos Origin, there are different expectations to those at Lenovo and Adidas.
Atos Origin is an international information technology services company, which employs 50,000 people in 40 countries.Atos Origin is an international information technology services company, which employs 50,000 people in 40 countries.
"We are quite different to the likes of Adidas and Lenovo, as we are purely business to business, so our expectations are very much in terms of targeting marketing towards our business partners and customers," says Guillame Huard, sales and marketing director for major events."We are quite different to the likes of Adidas and Lenovo, as we are purely business to business, so our expectations are very much in terms of targeting marketing towards our business partners and customers," says Guillame Huard, sales and marketing director for major events.
Atos Origin recognises the power of being connected with the Olympic ringsAtos Origin recognises the power of being connected with the Olympic rings
"We use the Olympic Games as the showcase to demonstrate what we can do, to show we can meet what is expected of us, but also to show the breadth of our services.""We use the Olympic Games as the showcase to demonstrate what we can do, to show we can meet what is expected of us, but also to show the breadth of our services."
The firm will bring current and prospective customers to the games, to showcase what it can do. The firm will bring current and prospective customers to the Games, to showcase what it can do.
"The Games are very useful in raising the broader awareness of our firm through the recognition power of the Olympic rings. You are also more credible as a business if you are associated with the Olympic rings."The Games are very useful in raising the broader awareness of our firm through the recognition power of the Olympic rings. You are also more credible as a business if you are associated with the Olympic rings.
"The visibility of the rings has also been used internally, it is very reassuring for our staff to know the firm is associated with the games." "The visibility of the rings has also been used internally; it is very reassuring for our staff to know the firm is associated with the Games."
'Personal views''Personal views'
However, for sponsors there is always the risk of negative connotations surrounding the games, following the disruption by Tibetan protestors around the Olympic torch in some cities, particularly London. However, for sponsors there is always the risk of negative connotations surrounding the Games, following the disruption by Tibetan protesters around the Olympic torch in some cities, particularly London.
Reebok, which is owned by Adidas and is outfitting 250 Games participants, has decided against making its athletes available for press conferences or one-on-one interviews during the event.Reebok, which is owned by Adidas and is outfitting 250 Games participants, has decided against making its athletes available for press conferences or one-on-one interviews during the event.
Consumers can distinguish between the political situations of host countries and the engagement of a sponsor in a great international sporting event Hartmut Zastrow, Sport & MarktConsumers can distinguish between the political situations of host countries and the engagement of a sponsor in a great international sporting event Hartmut Zastrow, Sport & Markt
Instead, it plans to use a video news service to interview athletes and distribute content to media organisations.Instead, it plans to use a video news service to interview athletes and distribute content to media organisations.
"As a brand, we didn't want to put our athletes in the position when being interviewed or having to explain their personal views on the human rights issue, and we also didn't want to act as a censor either," explains Josie Stevens, Reebok director of global public relations. "As a brand, we didn't want to put our athletes in the position when being interviewed of having to explain their personal views on the human rights issue, and we also didn't want to act as a censor either," explains Josie Stevens, Reebok director of global public relations.
Hartmut Zastrow, executive director of Sport & Markt, says the Olympic Games have always been a platform for discontent.Hartmut Zastrow, executive director of Sport & Markt, says the Olympic Games have always been a platform for discontent.
But he does not believe any negative publicity will have an impact on the associated brands' long-term reputation.But he does not believe any negative publicity will have an impact on the associated brands' long-term reputation.
"Olympics sponsors have never suffered [damage to their] image," he says."Olympics sponsors have never suffered [damage to their] image," he says.
"Consumers can distinguish between the political situations of host countries and the engagement of a sponsor in a great international sporting event.""Consumers can distinguish between the political situations of host countries and the engagement of a sponsor in a great international sporting event."