Download CHRISTOPHER JOHN PRICE ST08003550 CARDIFF SCHOOL OF

CHRISTOPHER JOHN PRICE
ST08003550
CARDIFF SCHOOL OF SPORT
UNIVERSITY OF WALES INSTITUTE CARDIFF
TO WHAT EXTENT DO CURRENT MARKETING PRACTICES REFLECT THE
ORIGINAL OLYMPIC VALUES?
TABLE OF CONTENTS
ABSTRACT
i
CHAPTER ONE – INTRODUCTION
1
CHAPTER TWO – RESEARCH METHOD
5
CHAPTER THREE – CRITICAL REVIEW
9
Olympic Values and Olympism
Olympic Marketing
9
16
Broadcasting
17
The Olympic Partners (TOP)
18
Domestic Sponsorship
19
Licensing
19
Ticketing
20
Does Olympic Marketing Reflect the Olympic Values?
21
Hosting the Olympic Games
21
Sponsorship
22
Broadcasting
25
Licensing
26
Ticketing
27
CHAPTER FOUR – SUMMARY
28
LIST OF TABLES
Table 1. Marketing revenue at the Olympic Games
2
Table 2. Olympic revenue 2005-2008
17
Table 3. Olympic sponsorship numbers and revenue
19
Table 4. Olympic ticket sales and revenue
20
Table 5. SWOT analysis of Olympic marketing and Olympism
32
ABSTRACT
According to Lamartine and DeCosta (2002) the Olympic Games and its organisers, the
International Olympic Committee (IOC), have been widely criticised over the last three
decades regarding its increasingly commercialised marketing campaigns. Businesses are
becoming engulfed with the prospect of using the Olympics as an advertising medium
(Shank, 2009). Although this may offer a surge in revenue it could be argued that it degrades
the values associated with the Olympic Games. This study aims to explore the current
marketing practices used at the Olympics, and how they reflect the original Olympic values
of the ancient Olympic Games. Through this means it will become apparent if the Olympic
Games have become a marketing phenomenon rather than following its purpose of promoting
Olympism globally.
This study requires comprehensive research into the marketing strategies at the Olympic
Games, using information from past and forthcoming Games, including London 2012. For
research purposes it is also vital to understand the original Olympic values, using qualitative
data from the ancient and modern games. Once a thorough analysis of each is made, a
discussion as to the extent in which they reflect each other will be viable.
The IOC fabricates up to date official documents defending the marketing of the Olympic
Games. For example the marketing fact file presented by the IOC (2010a) claims ‘to ensure
the independent financial stability of the Olympic Movement, and thereby to assist in the
worldwide promotion of Olympism’ (p. 5). Therefore the results of this study will require the
use of independent sources, however it is also important not to completely discount official
IOC documentation as it will provide valuable quantitative data.
With a sufficient understanding of the Olympic Games and marketing, a forecast can be made
as to the results. It is expected that there will be some marketing strategies in place that will
follow the Olympic values and Olympism. However it is also probable that there are some
anomalies that will arise. An initial suggestion is the Olympic sponsorship partners, and
whether there is evidence of moral purity, endurance and physical energy, words Barron
Pierre de Coubertin (1931) associated with Olympism.
i
CHAPTER ONE
INTRODUCTION
To fully understand the context of the question proposed it is essential to define key concepts
within the suggested topic areas. The title ‘To what extent do current marketing practices
reflect the original Olympic values?’ exposes four main subject matters; marketing
(specifically sports marketing), The Olympic Games, Olympic marketing, and Olympic
Values.
Sport Marketing according to Shank (2009) is ‘the specific application of marketing
principles and processes to sports products and to the marketing of nonsports products
through association with sport’ (p. 3). Pitts and Stotlar (2007) believe the marketing
principles of production, pricing, promotion and distribution are all designed and
implemented to suit the consumers needs. With this in mind it is logical that sport marketing
is the means by which a company presents and markets its product or service, whether it’s
directly a sports product, or using an association with sport. Consequently the Olympic
Games must entail sport marketing initiates, whereby the IOC controls all marketing aspects
at the Olympics (IOC, 2010a).
The Olympic Games originated in ancient Greece from 776 BC to AD 395, with the event
being held every four years in honour of the god Zeus (Swaddling, 1980). The Olympics
were reborn by Barron Pierre de Coubertin, founder of the Modern Olympic Games, in 1896
in Athens (Lucas, 1980). According to Lucas (1980) Coubertin’s philosophies for greater
forces of good were Hellenic Completeness (the ancient Greek’s historical and cultural
wellbeing), and this concept served as a platform for the Olympic Games.
Olympic marketing, or marketing in relation to the Olympic Games, has four main areas to
consider when creating a marketing strategy, these are; Sponsorship, Broadcasting, Ticketing,
and Licensing. According to Giannoulakis et al. (2008) marketing and the Olympic Games
have a long standing relationship, ‘ancient Greece cities would sponsor participant athletes by
providing athletic facilities, equipment and trainers’ (p. 257). The games have become
increasingly dependent on revenue generated from these marketing areas and according to the
IOC (2010a) the marketing programmes ensure the future of the Olympic Movement and the
Olympic Games. Table 1 (IOC, 2010a, p. 6) demonstrates this showing an increase in total
Olympic marketing revenue from 1993 – 2008 of US$2,820,000,000.
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Table 1. Marketing revenue at the Olympic Games
Source
Broadcast
1993 – 1996
1997 – 2000
2001 – 2004
2005 – 2008
US$1,251,000,000 US$1,845,000,000 US$2,232,000,000 US$2,570,000,000
TOP Programme
US$279,000,000
US$579,000,000
US$663,000,000
US$866,000,000
Domestic
US$534,000,000
US$655,000,000
US$796,000,000
US$1,555,000,000
Ticketing
US$451,000,000
US$625,000,000
US$411,000,000
US$274,000,000
Licensing
US$115,000,000
US$66,000,000
US$87,000,000
US$185,000,000
Total
US$2,630,000,000 US$3,770,000,000 US$4,189,000,000 US$5,450,000,000
Sponsorship
* All figures in the chart above have been rounded to the nearest US$1 million. N.B. Does not include
NOC domestic commercial programme revenues.
Olympic Values and Olympism in the present unfortunately lack a distinctive recognisable
definition, creating a vagueness that does not clearly identify the Olympic values and current
Olympic Movement (Wandzilak, 1980). However, according to Segrave and Chu (1981)
Olympic values were coined with the term Olympism by Barron Pierre de Coubertin in the
rebirth of the Games in 1894. The term Olympism is defined by Coubertin (1931) as a
‘school of nobility and of moral purity as well as of endurance and physical energy – but only
if . . . honestly and sportsmanlike unselfishness are as highly developed as the strength of
muscles’ (p. 208).
Gratton and Jones (2010) suggest that ‘it is highly unlikely that you will come up with a
completely original piece of research, building upon the work of others through using
existing knowledge provides the framework for a more realistic research proposal’ (p. 41).
Therefore in order to proceed it is important to resurface relevant research already undergone,
generating an understanding for the need of this study.
As one would predict, the Olympic Games has been studied in fine detail, and discovering
literature on the Olympics is relatively simple. As with the Olympics, sports marketing
literature is also not a restricted and undiscovered topic. However marketing at the Olympic
Games and specifically Olympism are both topics with somewhat partial literature. Of what is
available, it is evident that topics include the successfulness of marketing at the Olympics, for
example ‘Marketing of Olympic Games – success or end of Olympic spirit?’ (Kaehler, 2004),
‘The History of Marketing an Idea: The Example of Barron Pierre de Coubertin as a Social
Marketer’ (Chatziefstathiou, 2007), and ‘The Bid: Australia's greatest marketing coup’
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(McGeoch and Korporaal, 1995). Factual literature on how much revenue is attained through
marketing is also available but limited in providing an opinion or theoretical approach, for
example ‘Beijing 2008 marketing report’ (IOC, 2008), ‘Olympic Marketing Fact File: 2010
edition’ (IOC, 2010a), and ‘Olympic marketing: historical overview’ (Puig, 2006). Literature
is also precise to aspects of Olympic marketing, specifically sponsorship, for example
‘Olympic sponsorship: evolution, challenges and impact on the Olympic Movement’
(Giannoulakis et al, 2008), and ‘Global perspective of ticket price-making and marketing of
Olympic Games,’ (Xing-xing and Su-hai, 2008). Finally literature on Olympism is limited to
its origin, history and role within society, rather than Olympism within Olympic marketing.
For example ‘Olympism, Sport, and Education’ (Arnold, 1996), ‘Pierre de Coubertin and
Modern Olympism’ (Czula, 1975), and ‘Coubertin’s Ideology of Olympism from the
Perspective of the History of Ideas’ (Loland, 1995).
With literature of Olympic marketing and Olympism limited to specific topics it has
highlighted a gap in existing research and therefore seems appropriate to research the extent
to which current marketing practices reflect the original Olympic values. It has become
apparent that although there are articles on Olympic marketing and Olympism, they are rarely
linked with each other through critical analysis. For example the ‘Olympic Marketing Fact
File: 2010 edition’ (IOC, 2010a), represents all the marketing aspects at the Olympics,
however it fails to relate its marketing strategies in coherence with Barron Pierre de
Coubertin’s Olympism. It states they ‘aim to assist the worldwide promotion of Olympism’
(IOC, 2010a, p. 5), however it fails to detail how they will do, and have previously done this.
In regard to Olympism and the values of the Olympic Games, ‘Olympic Values: The end
does not justify the means’ (Andreu-Cabrera, 2010), represents the act of fair play and
abiding to the sporting codes of conduct. Although aspects of Olympism are explored the
literature is athlete centred and does not consider marketing features. After all, the athletes
are the most important aspect of the Games, however the manner in which the Olympics are
represented and viewed is a major focal point identified by the IOC, and protecting the
Olympic Movement has always appeared at the forefront of their aims and objectives. For
example ‘The Olympic Charter 2010’ (IOC, 2010b), identifies advertising laws that are
enforced to prevent ambush marketing, a way of indirectly forcing a brand or product upon
the public at an event to gain recognition an official sponsor would get (Shank, 2009). The
law allows the manufactures identification within the stadium, for example a Nike tick, but
3
nothing else. These steps are a way of protecting the Olympic values and Olympism, however
it does not consider all marketing aspects before during and after the Games.
It is therefore evident that there is sufficient literature to undergo a conceptual study, using
secondary research methods. The purpose of this appraisal is to establish an understanding as
to whether the marketing of the Olympic Games reflects the original Olympic values. Using
literature on Olympic marketing and Olympism a comparative study can be produced in lieu
with Barron Pierre de Coubertin’s original Olympic ideals. In light of the literature available
a forceful argument ought to be possible, however due to conflicting sources it is unlikely a
definite conclusion will be established.
4
CHAPTER TWO
RESEARCH METHOD
Establishing a research method relies on theoretical understanding and knowledge of
previous studies (Gratton and Jones, 2010). Without using a theoretical element to support
the research it becomes simply descriptive and opinionated, ‘Research that is not theoretically
informed, not grounded in the existing body of knowledge, or of the ‘shotgun’ variety that
fails to raise and investigate conceptually grounded questions, is likely to generate findings of
a narrow and ungeneralisable value’ (Yiannakis and Greendorfer, 1992, p. 8). The research
undergone suggested that a conceptual study would prove most effective. A conceptual or
theoretical framework ‘refers to ideas that are abstract or purely analytical’ (McNeill and
Chapman, 2005, p. 2). Furthermore Gratton and Jones (2010) states ‘theoretical research
generally uses the findings from existing works to develop new ideas through analysing
existing theory and explanations’ (p. 8). Consequently this study will use research already
undergone in Olympic marketing and Olympism, and create a purely analytical study
drawing on existing theories to create new ideas and conclusions in relation to the research
question.
Before exploring further into the adopted research method it is necessary to comprehend why
various other research methods were discarded. An empirical research method means ‘based
on evidence from the real world’ (McNeil and Chapman, 2005, p. 2). In layman’s terms it is
research that requires data collection first hand and upfront. ‘Empirical research relies more
on initial discovery and conclusions drawn upon evidence, rather than speculation’ (Gratton
and Jones, 2010, p. 85). Adopting an empirical research design will prompt the use of
primary data collection, which according to Gratton and Jones (2010) involves the original
collection of data specific to a research project. Implementing this research approach for the
chosen study would have caused some immediate dilemmas. The initial thought of “who and
how” came to mind, who would be prepared to give an interview and how would an
interview be arranged? A credible source could be regarded to be a marketing member of the
IOC, or a leading company representing or sponsoring the Olympic Games. If an interview
could have been arranged, which is highly unlikely, it is reasonably foreseeable that each
member would adopt a bias towards their field of profession. However, primary research was
established on a recent trip to the Olympic Museum in Lausanne, Switzerland. Although the
Museum was primarily historically based it did bring to light the IOC’s determination to
maintain Olympism through the Olympic Movement. An example of this is the first exhibit
on entrance, it displays the Olympic Mantra ‘Citius Altus Fortius’ meaning faster, higher,
stronger. Even though this is commendable primary research, using the museum alone to
5
construct a detailed study is not sufficient, it is nonetheless important not to discount the
information sought on the visit. Consequently it became clear that an empirical approach
would not suit the design of the study.
Secondary data collection is evidence used that has already been collected by others (McNeill
and Chapman, 2005). Using this approach according to Gratton and Jones (2010) can save a
significant amount of time and can also produce higher quality data than if it was collected
firsthand. Using this information and having already discounted an empirical approach, a
decision to conduct a conceptual study with secondary data was made. On selecting a
secondary data collection approach, it is essential to identify weaknesses in the research
method before potentially collecting unworthy data. Gratton and Jones (2010) insist ‘data
collected must be valid and reliable, and not subject to any serious methodological errors’ (p.
73). Furthermore stating ‘you need to be aware of when data was collected, and whether it is
still appropriate, or is dated’ (p. 73). Consequently the key theoretical literature must be
collected and reviewed before considering using it as a credible source. This was achieved
through a series of structured searches of related theoretical works, which then highlighted
the academic literature available within Olympism and Olympic marketing. Through a
bibliographic analysis of similar works a varied selection of relevant academic literature was
chosen.
The secondary data proposed for this study will take the form of; books, peer-reviewed
journals, newspapers/magazines, and the internet. On considering the validity and reliability
of these sources of literature, McNeill and Chapman (2005) define validity as ‘the problem of
whether the data collected is a true picture of what is being studied. Is it really evidence of
what it claims to be evidence of?’ (p. 9). Whereas reliability is defined as ‘anybody who uses
this method, or the same person using it another time, would come up with the same results’
(McNeill and Chapman, 2005, p. 9).
Gratton and Jones (2010) understand that books are a key source of information and often
give sound information on a topic. However there is unlikely to be a focus on specific fields,
as they often lack sufficient depth or focus on the researched subject (Gratton and Jones,
2010). From this it could be suggested that using books would provide a sound source of
information for a brief overview on a specific topic. For example a sports marketing book
‘Sports marketing: a strategic perspective, Shank, 2009’ gives a through perspective of sports
6
marketing, but lacks an in depth study on Olympic marketing specifically. This may propose
that it would not be a valid source of information. Conversely it does include detailed
information on ambush marketing at the Olympics, providing key factual quantitative data
that would be useful in the development of this study.
Peer-reviewed journals give access to up-to-date research on more specific topics than you
would find in books (Gratton and Jones, 2010). This in turn can allow a further understanding
of a topic area. Where a sports marketing book is broad and factual, a journal article, for
example ‘Marketing of Olympic Games – success or end of Olympic spirit?’ (Kaehler, 2004),
is significantly more detailed and topic specific. Hence this will be the predominant source of
literature throughout the study. Using peer-reviewed journals is a recognised credible source
of information and is generally considered a reliable and valid data collection method. It is
however important to consider how up-to-date the information is, especially when
considering the ever changing Olympic Games.
To broaden the scope of resources used throughout the research it is important to consider
newspapers/magazines and the internet. Using newspapers/magazines can provide useful, upto-date information on current affairs (Gratton and Jones, 2010). This information is widely
accessible and with regards to the London 2012 Olympic Games, very topical in the media in
Great Britain at present. Gratton and Jones (2010) suggest that it is unlikely such sources
provide a bias free perspective. However through using credited broadsheet newspapers like
‘The Daily Telegraph’, ‘The Sunday Times’, and the ‘Financial Times’ this bias free
perspective is reduced to a more of a business, political argument. When using the World
Wide Web, Lee (2000) understands that because of the democratic character of the internet it
makes finding valuable information difficult to come by. This may cause reliability issues
when considering trusting a specific website. In order to eliminate potentially false or
misleading content only trustworthy websites will be used. For example the official Olympic
Website can be used to extract information and facts about the Games, and ‘Marketing Week’
will provide up-to-date marketing articles on the Olympic Games. Although one would
consider these websites to be trustworthy and reliable, Stein (2002) suggests that the content
of the internet has not been academically or scientifically verified. It is important to
understand however that although internet sources lack academic value, in terms of the
specific research for this study they can be a high value source in the same way an interview
7
or questionnaire could be. As a result of this, websites will be approached with caution, and
only used if the information is deemed academically trustworthy.
In light of the different research methods identified and analysed, it has become apparent to
conduct a conceptual study of the extent to which current marketing practices reflect the
original Olympic Values. This will take the form of research collected from books, peerreviewed journals, newspapers/magazines, and the internet. The structure of the study will
effectively be three fold as follows: An exploration of the Olympic values and Olympism, an
exploration of Olympic marketing, and finally a comparative discussion on how the two
subject areas coincide and co-exist with each other.
8
CHAPTER THREE
CRITICAL REVIEW
Olympic Values and Olympism
The ancient Olympic Games were reborn by modern Olympic founder Barron Pierre de
Coubertin in 1894 as an attempt to promote social unity based on ancient Olympic values
(Segrave and Chu, 1981). Coubertin devoted his life to social cohesion and the need for
social reform in the nineteenth century (Chatziefstathiou, 2007). According to Edwards
(1972) Coubertin wrote ‘the important thing in the Olympic Games is not to win but to take
part. The important thing in life is not the triumph but the struggle. The essential thing is not
to have conquered but to have fought well. To spread these precepts is to build a stronger and
more valiant, and above all, more scrupulous and more generous humanity’ (p. 56-57). Czula
(1975) argues that these values Coubertin wrote are contradictory to the ancient Olympic
Games. The ancient Greek competitor’s only concern was to win. ‘The winning athlete was
elevated to an almost godlike status, whereas the losing athlete is almost never mentioned in
the literature of the ancient Olympic Games, as a reflection of the god’s disfavour upon the
cowardly or dishonest competitor’ (Czula, 1975, p. 13). Furthermore Swaddling (1980)
explains that the winning athlete may be commemorated with a statue in his home town, as
well as been allowed to dine for life at public expense. Consequently the ideals expressed by
Coubertin in following the spirit and values of the ancient Games probably never existed
(Czula, 1975). For this reason the origin of these values must have appeared from another
external source, which leads onto Thomas Arnold, the English Public School head teacher of
Rugby school in 1840 (Chatziefstathiou, 2007).
Thomas Arnold appears to have had a strong influence on Coubertin in the structure and
creation of Olympic values and Olympism. Chatziefstathiou (2007) explains that the famous
English Public Schools were centred upon athleticism in the late Victorian era, coupled with
the ideology of Muscular Christianity, infusing the British culture. According to
Chatziefstathiou (2007) the world had forgotten the moral and social power behind sport and
Arnold brought it upon himself to adapt the ancient Greek philosophy into modern day
conditions. ‘Coubertin believed that England owed its strength and colonial power to the
Muscular Christianity ethos and its strong physical culture’ (Chatziefstathiou, 2007, p. 66).
Arnold implemented this ethos at Rugby School in the nineteenth century, and Coubertin was
convinced this had been responsible for Britain’s success as a world super power, therefore
exporting these values to France was of the upmost importance to him (Lucas, 1980).
Furthermore, according to Guttmann (2002) Arnold became a spiritual father figure to
Coubertin as he became increasing obsessed with how ‘sport seemed to have developed not
9
only the boys enviable physical prowess but also their character’ (p. 9). It may therefore be
suggested that these values were the foundation of Coubertin’s Olympic values.
Barron Pierre de Coubertin was not content with reforming France, and according to
Chatziefstathiou (2007) ‘his international interests transcended his limited national scope’ (p.
69). Morgan (1995) postulates that Coubertin believed the only way to influence an
international social transformation was through the reform of the Olympic Games. With this,
Coubertin formed his own set of values for the Olympic Games, which reflected his research
of both the ancient Olympic Games and the English Public Schools, these values were
identified through one word, ‘Olympism’ (Segrave and Chu, 1981). Although much credit
has been given to Coubertin for his international influences Hoberman (1995) cited in
Chatziefstathiou (2007) sees Olympism in parallel with other idealistic internationalisms,
‘organisations were products of late nineteenth century liberalism, which emphasised values
of equality, fairness, justice, respect for persons, rationality, international understanding,
peace, autonomy and excellence’ (p. 56). Consequently it is important to note that Coubertin
was not the only person obsessed with international social reform, and Guttmann (2002)
explains the United States, Sweden, and Germany were amongst others that were using sport
to restore social peace and domestic harmony.
The term Olympism was coined by Barron Pierre de Coubertin in 1894 (IOC, 2010b).
However according to Parry (2003) few people have heard of the term ‘Olympism’ as
opposed to the more familiar terms ‘Olympic’ and ‘Olympiad’. Furthermore Segrave and
Chu (1981) explain that there is not a universally accepted definition of Olympism, which has
resulted in misinterpretation of the Olympic code, which will be explored further on in the
text. As a result of this it is may be difficult to understand exactly what Olympism is.
However the key concepts of Olympism have been researched in great detail and it is
possible to arrive at a satisfactory definition by considering the literature relating to it.
According to Parry (2003) ‘Olympism is a social philosophy which emphasises the role of
sport in world development, international understanding, peaceful co-existence, and social
and moral education’ (p. 2). Chatziefstathiou (2007) believes that ‘the concept of Olympism
and the content of the Olympic philosophy have always been strongly linked with education’
(p. 57). Additionally Loland (1995) states that Barron Pierre de Coubertin ‘characterised
Olympism not as a system, but as a state of mind (une attitude spirituelle)’ (p. 63). With the
key principles and concepts of Olympism described, Parry (2003) identifies the core values of
10
Olympism as: ‘fair play, education and multiculturalism’ (p. 3). These will later be
incorporated amongst other ideas to form an author’s definition of Olympism.
Barron Pierre de Coubertin has been described as ‘a social marketer of his time who
attempted to initiate social change by the promotion of the ‘Olympic Idea’ on the grounds of
education and sport’ (Chatziefstathiou, 2007, p. 57). According to Chatziefstathiou (2007)
Kotler and Zaltman coined the term social marketing in 1971, meaning the application of
marketing in addressing social and health issues. Therefore Coubertin planned to use
Olympism to address the social and health issues on a universal scale, Olympism was his
social marketing product, and the world was his target audience (Chatziefstathiou, 2007).
However Coubertin’s approach and philosophies have been widely criticised, Loland (1995)
suggests that Coubertin developed a strong elitist sport philosophy, which is demonstrated in
the Olympic motto: ‘Citius, Altius, Fortius’ (p. 64), meaning faster, higher, stronger. This
exclusionary view is shared by Chatziefstathiou (2007) who believes Olympism was
discriminatory in resisting woman participation, as well as the working class through
amateurism. Segrave and Chu (1981) also support this suggesting that Coubertin believed
women were not socially or physically suited to athletics, this is exposed as no women
officially competed in the first Modern Olympic Games of 1896, Athens. However, to
suggest Coubertin was exclusionary may not reflect the idea that democracy and social
inclusion agenda is a moveable feast dependent on the prevalent view in society at the given
time. For example at the time women had little role in society when compared to men.
Furthermore in Coubertin’s defence it is evident that he was not reluctant to adapt to the
social and cultural changes around him. According to Chatziefstathiou (2007) Coubertin
promoted popular Olympism, which incorporated a more democratic philosophy,
emphasising inclusion for all.
Further criticism of Coubertin’s Olympism is the Olympic Movements ‘strive for global
participation at all costs, even sacrificing rudimentary moral standards’ (Loland, 1995, p. 67).
As one of the IOC’s aims of Olympism is sport for all, Loland (1995) believes that this has
caused nations to search for power, prestige and profit, forgetting about the values associated
with Olympism. However, Morgan (1995) disagrees with this understanding that
communities and nations have turned to a brutalisation of their own communities and nations,
but believes this is the undoing of nationalism, not Olympism. Morgan (1995) furthermore
11
expresses the view that the world on an international scale ‘is badly in need of the sort of
moral example that Olympism, at its best, and rightly articulated, can offer’ (p. 89). Parry
(2003) would also agree with this stating that Olympism can be used to as a means of
‘promoting international understanding and mutual respect, and a commitment to the peaceful
resolution of conflict’ (p. 6).
An up-to-date perspective on Olympism can be sought gained by examining the literature
produced by the Olympic movement itself. Although in many instances internet resources
are recognised as being of dubious quality for the development of academic work, in this case
official material produced by the organisation is considered to hold significant value to
express ideas and concepts within the organisation concerned. ‘The Olympic.org website has
been designed by the International Olympic Committee’ (IOC, 2011a), and therefore it would
seem fair to assume that information on the website is directly related to the thoughts of the
IOC. On the official website the IOC (2011a) present three Olympic values under Olympism:
1. Excellence
2. Respect
3. Friendship
Furthermore the IOC (2011a) highlights six fields of activities in Olympism:
1. Sport for all
2. Development through sport
3. Education through sport
4. Woman and sport
5. Peace through sport
6. Sport and environment
The official Olympic website is not the only way the IOC presents the values of Olympism.
The Olympic Charter 2010 edition ‘sets forth and recalls the fundamental principles and
essential values of Olympism’ (International Olympic Committee, 2010b, p. 9). Therefore
one would presume the values of Olympism would be displayed exactly the same as on the
official Olympic website. This is not the case however, the first fundamental principle of
Olympism is explained as:
‘Olympism is a philosophy of life, exalting and combining in a balanced whole the qualities
of body, will and mind. Blending sport with culture and education, Olympism seeks to create
12
a way of life based on the joy of effort, the educational value of good example and respect for
universal fundamental ethical principles’
(International Olympic Committee, 2010b, p. 11)
The Olympic Charter further goes onto explain the goal of the IOC to ‘place sport at the
service of the harmonious development of man’ and ‘promoting peaceful society, while
preserving human dignity’ (International Olympic Committee, 2010b, p. 11). Whereas the
mission of the IOC is ‘to promote Olympism throughout the world’ (International Olympic
Committee, 2010b, p. 14).
Based on the Olympic Charter there are seven Olympic values:
1. The qualities of body, will and mind
2. Sport with culture and education
3. Life based on the joy of effort
4. Universal fundamental ethical principles
5. Harmonious development of man
6. Promoting peace
7. Promote Olympism worldwide
From these findings it is strikingly obvious that the IOC have difficulty in clearly defining
Olympism. There is a distinct degree of overlap between the definition on the official
Olympic website and the Olympic Charter, for example both mention education, worldwide
inclusion, peace, and ethical principles. However they do not run directly alongside one
another, there are some points made that are even slightly contradictory. Parry (2003)
understood the key values of Olympism as: ‘fair play, education and multiculturalism’ (p. 3),
and although these values are covered in both the website and Olympic Charter, it does not
lay down a clear and memorable definition of Olympism. Consequently Loland (1995) argues
‘its fundamental principles provide little action-guiding force; inconsistencies and
contradictions reduce its value as a system of ideas’ (p. 67).
This endeavour for a clear definition of Olympism can have an adverse effect upon
implementing it as a social state of mind. ‘The challenge of putting Olympism into practice
still remains’ (DaCosta, 1998, p. 209). This view is supported by Parry (2003) who believes
the test for such values is whether or not they are implemented in working practice. Parry
13
(2003) goes onto discover a contradictory element of the Olympic Movement, where the
main selection of sports for the Olympic Games is through popularity and universality,
whereas the Olympic Movement strive to contribute to the development of sport in all its
forms. Therefore Parry (2003) understands this may have a reducing effect on the traditional
and regional sports of certain universal cultures. Parry (2003) furthermore explains that if the
IOC were to live up to the mission of contributing to the development of sport in all its forms,
they could allow each continent to select one popular sport to be included in the Games, for
example Kabbadi in India.
It has been discovered that one of the main values of the IOC is to promote Olympism
worldwide. However it has also been discovered that because of the inconsistencies and
contradictions of Olympism it decreases its value on a worldwide scale (Loland, 1995). Parry
(2003) also supports this stating that the IOC’s search for a universal representation of
Olympism is the essence of fond hope and naive optimism. However a solution is suggested;
‘the principles of Olympism to be universal, must be unchanging’ (Parry, 2003, p. 5).
Consequently it may be interpreted that if the IOC can lie down fixed values of Olympism,
that are clear and precise, only then may the principles of Olympism become universal. This
may appear simple in an ideal world, however the ancient Games had developed over a
thousand years, social ideas and differences are inevitable over time and therefore not
adapting to social and cultural change may be implausible, Parry (2003). Czula wrote Pierre
de Coubertin and Modern Olympism in 1975 and at that present time he was calling for the
IOC to adapt to the twenty first century, ‘Olympic hypocrisy stems from the inability of the
IOC to adapt to a changing world’ (Czula, 1975, p. 16). This view is echoed by Zeigler
(1972) who states ‘we should realise that the Greek ideal was outstanding for its time but that
we in all probability need a different ideal for today that is based upon a conception of man
on earth moving into the twenty first century’ (p. 85). In light of this information it could be
argued that the IOC’s intention to promote Olympism worldwide is an unrealistic aim, the
ever changing world and social values create obstacles for a clearly defined term that is
‘Olympism’. ‘This seems to suggest that such meanings are culturally relative and that
therefore there could be no such thing as a universal idea of Olympism’ (Parry, 2003, p. 6).
However Parry (2003) is defensive of Olympism and explaining that it has served a purpose,
‘the philosophy of Olympism has been the most coherent systematisation of the ethical and
political values underlying the practice of sport so far to have emerged’ (p. 5).
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To conclude Andreu-Cabrera (2010) suggests that the athletes competing in the twenty first
century have forgotten the Olympic spirit that Barron Pierre de Coubertin believed the
Olympic Games would give young athletes. Therefore to resurface the values of Olympism to
the athletes and everyone involved with the Olympic Games, as already explained previously,
a clear and precise definition and understanding of Olympism is vital. These values must be
current and non contradictory. If the IOC can establish this clear, precise understanding of
Olympism, only then can it be expected to enforce these values on a global scale.
Consequently for the study to precede a judgement must be made on the author’s
interpretation of Olympism in the twenty first century. This understanding is as follows:
worldwide inclusion, promotion of peace, education through sport, and ethical values
associated with sport.
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Olympic Marketing
Olympic marketing has become one of the world’s most sophisticated and successful sport
marketing programmes, with increasing revenue and successful sponsorship evident
throughout the Olympic Games (O’Reilly, 2008). The ‘Olympic Marketing Fact File: 2010
edition’ (IOC, 2010a) is a document on the marketing policies of the IOC. It entails the
fundamental objectives of the IOC’s marketing programmes, of which the relevant key points
are ‘to ensure the independent financial stability of the Olympic Movement, and thereby to
assist in the worldwide promotion of Olympism,’ ‘to ensure that the Olympic Games can be
experienced by the maximum number of people throughout the world principally via
television coverage,’ and ‘to protect the equity that is inherent in the Olympic image and
ideal’ (IOC, 2010a, p. 5).
According to the IOC (2010a) marketing revenue is generated through six major
programmes, managed by the IOC and the Organising Committees for the Olympic Games
(OCOG’s):
IOC managed programmes:
1. Broadcast partnerships
2. The Olympic Partners (TOP) worldwide sponsorship programme
3. Official supplier and licensing programme
OCOG managed programmes:
4. Licensing within host country
5. Domestic sponsorship
6. Ticketing
Each marketing programme generates varying revenue throughout the Olympic Quadrennium
(the four year period before an Olympic Games). According to the IOC (2010a) the 20052008 period before and during the Beijing Olympic Games generated the following revenue
(see table 2):
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Table 2. Olympic revenue 2005-2008
Source
2005-2008 (US $)*
Broadcast
2,570,000,000
Domestic Sponsorship
1,555,000,000
TOP Programme
866,000,000
Ticketing
274,000,000
Licensing
185,000,000
Total
5,450,000,000
*Rounded to the nearest US $ 1 million
From this it is clear to see that broadcasting is the most considerable financial contributor in
Olympic marketing revenue. Furthermore, table 1 on page 2 also suggests that broadcasting
has been the dominant source of revenue since 1993 at the very least. The IOC distributes
90% of Olympic market revenue in order to support the staging of the Olympic Games,
retaining 10% for operational and administrative costs (IOC, 2010a).
Broadcasting
‘The IOC is the owner of the broadcast rights, including television, mobile and internet, for
the Olympic Games and Olympic Winter Games’ (IOC, 2010a, p. 22). Mullin et al. (2007)
believe that television is the broadcasting method that reaches the most people, and for mega
events like the Olympics and the Super Bowl it has been a proven medium for advertisers in
the marketing mix. However Mullin et al. (2007) also declares it can be a very expensive
means of advertising. To regulate and ensure the long term interest of the Olympic
Movement, the IOC are responsible for allocating these Olympic broadcasting rights to media
companies throughout the world (IOC, 2010a). Using the ‘Olympic Charter 2010’ (IOC,
2010b) and the ‘Olympic Marketing Fact File: 2010 edition’ (IOC, 2010a) there are two clear
objectives of the broadcasting strategy, these are:
1. Improved global coverage of the Olympic Games.
2. The spread and promotion of the principles and values of Olympism through media
coverage.
Evidence of the improved coverage of the Olympic Games is apparent in the increase of
countries broadcasting the Games, from just 1 in Berlin 1936 Games, compared to 220 at the
Beijing 2008 Games (IOC, 2010b). According to IOC (2010b) the Beijing Games recorded
17
record TV ratings around the world, with a potential audience of 4.3 billion people. Although
the IOC provides numerous facts and figures on previous Olympic revenue and increased
broadcasting, evidence of the spread and promotion of the principles and values of Olympism
is absent. This evidence in theory could be in the form of for instance a five minute
educational video before Olympic coverage, consequently promoting Olympism. It may
therefore be suggested that in principle the IOC intend to promote Olympism but in practice
this is not the case.
The Olympic Partners (TOP)
‘TOP programme is the worldwide Olympic sponsorship programme managed by the IOC
and provides sponsors with exclusive worldwide marketing rights to both the Summer and
Winter Games’ (IOC, 2010a, p. 11). The TOP programme exclusive marketing rights are
specific within a product service or category (IOC, 2010a). For example Coca-Cola has
exclusive marketing rights as a non-alcoholic beverage provider, therefore eliminating the
potential threat from competitors in the sector. Davis (2008) understands that ‘while the
investment for TOP programme sponsors is substantial, many of these companies have been
sponsors for several Olympics, generating financial returns and goodwill’ (p. 161). Shank
(2009) argues this is a form of relationship marketing whereby a ‘process of creating,
maintaining, and enhancing strong, value-laden relationships’ (p. 308). Coca-Cola and Visa
appear to have a very good relationship with the IOC and Olympic Games due to their
longstanding relationship since 1986 (IOC, 2010a) the longest of any TOP programme
sponsor. For a full list of the 11 official TOP partners for the London 2012 Olympic Games
see appendix A. Davis (2008) states that the TOP programme provides unique benefits to
each sponsor, including:

The right to use Olympic imagery and identities

Hospitality events at the Olympic sites

Direct marketing

Product promotion

Ambush marketing protection
Becoming part of the TOP programme for the Olympic Games can be very attractive and in
the long term financially rewarding.
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Domestic Sponsorship
‘The Olympic Games domestic sponsorship programme is managed by the OCOG within the
host county under the direction of the IOC. The programmes support the OCOG, the planning
and staging of the Games, the host country NOC, and the host country Olympic team’ (IOC,
2010a, p. 19). For a full list of the London 2012 official domestic sponsors see appendix B. It
is apparent that the revenue generated by domestic sponsorship is more than the TOP
programme; Table 1, page 2 reflects this as between 2005-2008 the TOP programme
generated US$866,000,000 whereas the domestic sponsors generated US$1,555,000,000. The
history of the number of partners and the revenue generated poses an interesting trend
through time, see Table 3 (IOC, 2010a, p. 19).
Table 3. Olympic sponsorship numbers and revenue
Olympic
Number of domestic
Revenue & Support
Games
sponsorship partners
(US $)*
1996 Atlanta
111
426 million
2000 Sydney
93
492 million
2004 Athens
38
302 million
2008 Beijing
51
1,218 million
*Rounded to the nearest US $ 1 million
Davis (2008) believes that the decrease in the number of sponsors from 1996 may be due to
the widespread criticism of the overly commercial nature of the 1996 Atlanta Olympics.
However as Table 3 shows the 2008 Beijing Games had 51 sponsorship partners and
generated approximately four times the revenue of Athens 2004. This may suggest that the
Beijing domestic sponsorship programme was far superior to any previous Games. The
London 2012 Games currently have 35 domestic sponsors, which may increase in the run up
to the Games.
Licensing
According to the IOC (2010a) Olympic licensing creates Olympic Games related products,
merchandise and souvenirs through licensing agreements that grant the use of the Olympic
marks. An example of this is the commemorative coins and stamps that date back to 425 BC,
and since 1951 350 million coins have been sold (IOC, 2010a).
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The OCOGs run their own licensing programmes under guidance from the IOC (Davis,
2008). Furthermore the IOC (2010a) state the domestic licensing is designed to promote the
Olympic image and convey the culture of the host region within a controlled commercial
environment. Examples of these products can be seen on the official London 2012 website
(www.london2012.com), ranging from clothing and homeware, to collectables and gifts.
Ticketing
The primary goal of Olympic Games ticketing is ‘to enable as many people as possible to
experience Olympic Games ceremonies and competitions’ (IOC, 2010a, p. 39). This suggests
that the IOC would make the tickets available to the public not only for the host country, but
also for countries worldwide (Puig, 2006). In order for ticket sales to circum to this
worldwide availability the tickets must be priced to accommodate the wide ranging economic
circumstances and the domestic market prices for major sporting events (IOC, 2010a). The
London 2012 Olympic Games have ticket prices ranging from £20 - £725 to watch the
events, however the opening and closing ceremonies are significantly higher, pricing from
£20.12 - £1,500 (LOCOG, 2011). Table 4 (IOC, 2010a, p. 39) shows the number of tickets
sold and the revenue generated from the sales. From this is it evident that although the
Beijing Olympic Games had the most percentage of ticket sales on record, the revenue
generated from this was the lowest since Barcelona, 1992. It may also be interpreted from
Table 4 that ticket prices for the Beijing Olympics must have been relatively inexpensive.
Puig (2006) forecasted this, arguing an expected lower price due to the lower purchasing
power of the Chinese. Evidence of this is in the ‘Beijing 2008 Marketing Report’ (IOC,
2008), where the price of a ticket at the Beijing Olympics varied from US $0.75 – US $150,
with an average price of US $23, significantly cheaper than the forthcoming 2012 Olympic
Games.
Table 4. Olympic ticket sales and revenue
Olympic Games
Tickets Available Tickets Sold
% Tickets Sold
1984 Los Angeles
1988 Seoul
1992 Barcelona
1996 Atlanta
2000 Sydney
2004 Athens
2008 Beijing
6.9 million
4.4 million
3.9 million
11 million
7.6 million
5.3 million
6.8 million
82%
75%
77%
75%
88%
71%
95.6%
5.7 million
3.3 million
3.021 million
8.318 million
6.7 million
3.8 million
6.5 million
*Rounded to the nearest US $ 1 million
20
Revenue to
OCOG (US $)
156 million
36 million
79 million
425 million
551 million
228 million
185 million
Does Olympic Marketing Reflect the Olympic Values?
Drawing on the information discovered on both Olympism and Olympic marketing a further
discussion can be made as to how coherent and coexistent both topics are with one another. It
has been argued that Olympism serves numerous definitions and consequently is
contradictory and indistinct (Loland, 1995). Consequently an author’s interpretation of the
Olympism values in the 21st Century was made. These were: worldwide inclusion, promotion
of peace, education through sport, and ethical values associated with sport. Olympic
marketing is less opinionated and more factually based, the documentation of its history and
current ongoing strategies are accessible and transparent, for example the ‘Olympic
marketing fact file’ (IOC, 2010a) provides a detailed description of Olympic marketing.
However there is little opinion or evidence of one of the IOC’s main objectives of Olympic
marketing; ‘to assist the worldwide promotion of Olympism’ (IOC, 2010a, p. 5).
Consequently this study will critically analyse Olympic marketing strategies and discover the
relationship between Olympic marketing and Olympism.
Hosting the Olympic Games
Xing et al. (2008) suggest the Olympics can allow a social, economic and political
transformation of a host city. At first glance this may seem positive and non detrimental,
however it is unclear if a host city accounts for the value of Olympism when bidding to host
the Olympic Games. According to Burton (2003) some previous OCOG’s bids have almost
exclusively thought about the economic impact and forgot about the value of sport or the
Olympics. As a result of this it may be argued that some host city bids see the Olympics as a
marketing catalyst to business enhancement and improved infrastructure within their city and
country.
The financial strain on both the public and private sectors (Chalip, 2002) may question the
Olympism value of worldwide inclusion when hosting an Olympic Games. If a country or
host city simply cannot afford these astronomical investments, for example the Sydney
Olympics public investment was US $ 2.3 billion and private investment US $ 1.2 billion
(Chalip, 2002), then they cannot be expected to host an Olympic Games. Consequently Xing
et al. (2008) believe only world renowned cities compete to host the Games, eliminating
smaller economically powerful countries and cities. An example of this lies in the non
existence of an African host city at the Olympic Games. Furthermore no South American city
has host the Olympics, until the successful bid of the 2016 Games in Rio de Janeiro. This
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may therefore be evidence of the rupture of Olympism values worldwide inclusion and peace.
Enchin (2010) suggests that the Olympic Games is the biggest branding opportunity a nation
gets, therefore it may be argued that some nations do not have the access to this marketing
phenomenon due to the excessive monetary funding needed to host the Olympics. Xing et al.
(2008) sum up the IOC’s lack of worldwide inclusivity stating ‘the IOC are more concerned
with how the Games will be organised rather than where’ (p. 324).
It has been discovered that not all cities worldwide have the funding or worldwide status to
host the Olympic Games. This suggests the worldwide inclusivity values associated with
Olympism are contradictory in the bidding process to hosting the Games. However, it would
appear according to Xing et al. (2008) host cities that bid for the Olympic Games include
many of the values of Olympism in bid presentations before a successful bid. For example
Xing et al. (2008) understand the London 2012 bid included aspects of worldwide inclusion,
peaceful wellbeing, and a specific focus upon young people and education. These were links
made with the city of London and the Olympic Games, and this connection included the
values of Olympism, so from an IOC perspective must have ticked all the boxes. Once the bid
was accepted it is the duty of the LOCOG to keep the promises made in the bid presentation,
and using the London 2012 official website, LOCOG (2011) state ‘we want to use the power
of the Olympic and Paralympic Games to inspire children and young people across the UK
and around the world’. LOCOG (2011) also demonstrates putting this into practice through
higher education opportunities, actively involving children and education in the build up to
2012, and using sport to enrich the lives of millions across the world in schools and
communities particularly in developing countries. In conclusion it is evident that host
countries market their Olympic programme in correlation with the values of Olympism,
especially drawing on evidence from the London 2012 Games. In summary Seb Coe,
chairman of the LOCOG summarised the bid stating that ‘it will show the new generation
why Olympic sport matters so much, and why the Olympic ideals still matter so much’ (Xing
et al., 2008, p. 326).
Sponsorship
According to Giannoulakis et al. (2008) the Olympic Games have become increasingly
dependent on the financial support from domestic and TOP programme sponsors. DaCosta
(2002) supports this view understanding that sponsorship is the fuel of the Games and
without it there would simply be no Olympic Games. This may pose the question of what the
22
purpose of Olympic sponsorship is, to ensure the Games continue or to sell products and
services? However, whatever the answer is it fair to argue that these sponsorship programmes
are designed to integrate alongside the values of Olympism?
Giannoulakis et al. (2008) discovered that due to the dramatic rise in sponsorship fees,
corporations are rethinking their marketing strategy at the Olympic Games, focusing on
platforms created by the IOC instead of forming alliances with athletes. Giannoulakis et al.
(2008) furthermore explored the main aims and goals of some of the TOP programmes at the
Beijing Games. These aims should form an alliance with the IOC’s objectives of Olympic
marketing (IOC, 2010a), to assist in the worldwide promotion of Olympism and the support
of Olympic marketing partners in the promotion of the Olympic ideals. If the TOP
programme aims do not run in parallel with the IOC’s marketing objectives then it may be
suggested that the IOC have not achieved the objectives desired.
This in practice according to Giannoulakis et al. (2008) is the case, where examples from
Adidas, United Parcel Systems (UPS), Coca-Cola, and McDonald’s all fail to mention a
relation to the Olympic values or Olympism in their marketing strategies. The TOP partners
took a solely business approach, for example to double McDonald’s restaurants in China, or
for Coca-Cola to tap into the Chinese market, or for UPS to be the leading global package
delivery and logistics company (Giannoulakis et al., 2008). These aims are understandable
from a business perspective, and it has already been discovered that using the Olympic
Games as a marketing tool is very valuable (Davis, 2008). However the IOC seems to turn a
blind eye when regulating the sponsorship objectives at the Olympic Games. The IOC aim to
promote Olympism through its marketing strategies, although evidence of this within the
TOP sponsorship programmes is astonishingly vacant.
It is likely the IOC would challenge this view, the ‘Beijing 2008 Marketing Report’ (IOC,
2008) protects its TOP partners, clarifying that in associating themselves with the Olympic
Games they are in turn committing themselves to promoting and sustaining the tradition and
heritage of the Games and ultimately the values of Olympism. So according to the IOC the
TOP partners do conform to the values of Olympism by simply associating themselves with
the Olympic Games. This view may appear biased and evidence of its effectiveness is partial,
nevertheless according to the IOC (2008) Coca-Cola created interactive experiences
throughout Beijing in 2008 that focused on ‘shuang’ a Chinese expression meaning complete
23
physical, emotional and spiritual refreshment. As well as providing educational exhibits on
China, Coca-Cola and the Olympic Games. Consequently it could be suggested that CocaCola does in fact incorporate some of the values of Olympism within its marketing strategies,
exhibiting educational information at the Games, promoting the value of education and sport.
However it is still suspected that these values of Olympism are not at the forefront of CocaCola’s strategic marketing plan, and according to Dome (2006) cited in Giannoulakis et al.
(2008) ‘the Beijing Olympics is not about sport, but about creating a superbrand called
China’ (p. 261).
Séguin (2002) interviewed Olympic TOP executives, NOC sponsors and Olympic marketing
executives on the current Olympic marketing programme (see appendix C). From the
responses given Olympism is viewed as a benefit and a key component to success within the
Olympic marketing programme. However, from this study, it is still negotiable whether this
view has sufficient evidence supporting it. Consequently further critical analysis of Olympic
sponsorship will aid the understanding of the extent to which Olympic sponsors reflect the
values of Olympism.
Séguin (2002) identifies ambush marketing as a weakness and a threat to the Olympic
marketing programme. According to Shank (2009) ambush marketing is ‘a planned effort
(campaign by an organisation) to associate themselves indirectly with an event to gain at least
some of the recognition and benefits that are associated with being an official sponsor’
(p. 334). As previously mentioned Davis (2008) understands that when a company becomes
part of the TOP sponsorship programme one of the main benefits is the protection from
ambush marketing. It is also evident that the IOC try and prevent ambush marketing within
Olympic stadia, for example The Olympic Charter 2010 enforces advertising laws preventing
anything more than the manufactures identification within the stadium (IOC, 2010b).
Although it may seem steps have been taken to prevent ambush marketing at the Olympic
Games, Séguin and O’Reilly (2008) believe the endless opportunities for companies to
ambush market make it widespread at the Olympics. But does ambush marketing at the
Olympics hinder the effect of the values of Olympism, and if so, is the IOC responsible for
controlling it? Arguably, Toft (2009) would suggest yes, implying that the value of the
official sponsors are diminished and as a result the Olympic reputation and prestige is
damaged. Shank (2009) states that studies show most consumers cannot correctly identify
Olympic sponsors, often brands that ambush marketed enjoyed more public recognition.
24
Consequently it may be argued that ambush marketing at the Olympic Games is not fair
practice, and the values of Olympism seem to be brushed aside by the organisations enforcing
ambush marketing at the Games.
Séguin and O’Reilly (2008) understand that many of the TOP sponsors believe ambush
marketing is a form of competitive marketing, and that there is little wrong with this.
However, Séguin and O’Reilly (2008) also state that when an ambush marketing project tries
to imply they are supporting the Olympic Movement they may be unethical in their approach.
These unethical approaches are being strongly challenged by the LOCOG, and ambush
marketing at the London 2012 Olympic Games may see a turn of events (Shank, 2009). The
restriction of certain words surrounding the games has been amended, for example the words
‘London 2012, London’s bid logo, and derivatives of London2012.com’ (Shank, 2009, p.
336) have all been prohibited from use, exempting all official sponsors and partners of the
Olympic Games. In summary it is apparent that ambush marketing at the Olympic Games
degrades many of the ethical values associated with Olympism, but the IOC and currently the
LOCOG is working hard to reduce the amount of ambush marketing in order to protect its
TOP partners and the values of Olympism.
Broadcasting
The broadcasting of the Olympic Games has been a proven medium for advertisers in the
marketing mix (Mullin et al., 2007). It has also been discovered that broadcasting generates
the most revenue in Olympic marketing (IOC, 2010a). However do the IOC succeed in
achieving a broadcasting objective set out in the ‘Olympic Marketing Fact File: 2010 edition’
(IOC, 2010a), to spread and promote the principles and values of Olympism through media
coverage. Initially one may argue that before, during, and after an Olympic Games the
mention of Olympism in the media is virtually non-existent. However it is evident that the
IOC uses the values of Olympism when providing a broadcasting service. For example the
Beijing Olympic Games reached an audience of 4.3 billion people, the most to date (IOC,
2008). The IOC also states that using the internet, mobile phones and television offered an
unprecedented choice of when and where to watch the Games. This can be interpreted as
using the Olympism value of worldwide inclusion, by allowing such a vast amount of people
accessibility to watch and be part of the Olympic Games. However, in providing accessible
coverage it may be argued that the other values of Olympism are ignored, for example the
promotion of peace, education through sport, and the ethical values associated with sport.
25
Consequently the IOC’s objective of promoting the principles and values of Olympism
through the media is not met, the previous and most recently Beijing 2008 Games have been
widely accessible, but this alone does not reflect the values of Olympism. If for example
there was evidence of the promotion of Olympism through the media, i.e. through a five
minute educational film before Olympic coverage, only then may Olympism and its values
spread worldwide.
Licensing
It has been discovered that traditional Olympic licensed products feature in all Olympic
Games as a means of collecting unique memorabilia, for example the coins and stamps
available to purchase at the Beijing 2008 Games and the London 2012 Games date back to
425 BC (IOC, 2010a). This may suggest that history and traditional values are still at the
forefront of the licensing programmes. On reflection these products educate people through
sport, developing an importance to recognise the origin of the Olympic Games and why they
are held every four years. Other educational products that reflect the values of Olympism
include specific products reflecting the host city country and its culture, for example LOCOG
(2011) offer an array of products reflecting the culture and history of Great Britain. These
include a Queens’s guard toy, a beefeater toy, and die cast vehicles associated with Great
Britain (see appendix D). Consequently it could be argued that these products are marketed
with the Olympism value of education in mind.
However are the additional values associated with Olympism taken into account? For
example the ethical values associated with sport, promotion of peace, and worldwide
inclusion. Many licensed products feature the Olympic rings, which symbolise the union of
the five continents and the meeting of athletes throughout the world (IOC, 2010b). Therefore
does this represent worldwide inclusion and peace, words we strongly associate with
Olympism. It is down to personal interpretation whether this message of Olympism is clear
through the Olympic rings. It is however evident that words we associate with Olympism do
not feature on official Olympic licensing products, and it may be suggested that if these
products were available then the objective of the IOC to promote Olympism through its
marketing strategies may be more evidential. An example could be a t-shirt, poster, pin, or
badge with the values of Olympism incorporated into the design of them.
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Ticketing
With the IOC’s primary goal of Olympic ticketing ‘to enable as many people as possible to
experience Olympic Games ceremonies and competitions’ (IOC, 2010a, p. 39), one may
suggest that this incorporates the Olympism value of worldwide inclusion. Evidence of this
goal being achieved is represented in Table 3, page 19, where 95.6% of tickets were sold at
the Beijing Olympics in 2008. As the tickets ranged from US $0.75 – US $150 (IOC, 2008),
it enabled countries worldwide to purchase tickets for the Games. However have the London
2012 organisers priced the tickets too high for the current economic climate, and the goal to
enable worldwide inclusion? The tickets ranging from £20 - £725 (LOCOG, 2011) are
significantly higher than the Beijing Games which could in return eliminate less
economically powerful countries from purchasing tickets. Including the living cost of London
and Great Britain, it could be forecasted that a reduced number of overseas countries will
purchase tickets than previous Olympic Games. Consequently this does not promote the
values of Olympism through the narrowed market the London 2012 Games tickets reach.
However, since the 1984 Los Angeles Games, consistently over 70% of tickets always sell
(IOC, 2010a), proposing the trend is unlikely to change for the London 2012 Olympic
Games.
The ethical values of purchasing tickets for the Olympic Games would consider how and
where the tickets were purchased. According to the BBC (2011) the maximum penalty for
touting at the 2012 Olympic Games is set to be raised from £5,000 to £20,000, as a means of
reducing the unethical and criminal activity of ticket sales. This implies that the London 2012
Games have considered and taken action on the ethical values associated with Olympism
within its ticketing strategy. It may also imply that the promotion of peace and safety are at
the forefront of the LOCOG, furthermore complying with the promotion of Olympism.
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CHAPTER FOUR
SUMMARY
This section of the dissertation will review the project and its findings in order to emphasise
the main findings of the research project and suggest ways in which future research could
develop. The topics of Olympism and Olympic marketing were highlighted as two areas of
importance for the project investigating the extent to which current marketing practices
reflect original “Olympic values”.
The definition of Olympism is problematic. The literature gives no universally accepted
definition of the term (Segrave and Chu, 1981). During the research project, evidence of
varying definitions was found in official IOC documentation, the Olympic website, and the
Olympic Charter 2010. Consequently DaCosta (1998), Parry (2003) and Loland (1995)
proposed that the value of Olympism has been decreased, resulting in an ongoing challenge
of putting Olympism into practice. Parry (2003) suggested that if Olympism is to be effective
the values must be universal and unchanging. In order to provide a bassis for discussion of
Olympics as a framework for marketing policy evaluation, this research project sought to
interpret the values associated with Olympism in the literature and provided by the
International Olympic Committee (IOC (2011a) and IOC (2010b)). These values were:
worldwide inclusion, promotion of peace, education through sport, and ethical values
associated with sport.
Olympic marketing is managed by the IOC and one of the fundamental objectives of the
marketing programme is ‘to assist in the worldwide promotion of Olympism’ (IOC, 2010a, p.
5). Four major sections were determined within the Olympic marketing programme;
broadcasting, sponsorship, licensing, and ticketing. Throughout each aspect of Olympic
marketing there was evidence of the IOC aiming to promote Olympism, for example
broadcasting aimed to spread and promote the principles and values of Olympism through
media coverage (IOC, 2010a) and (IOC, 2010b). Furthermore, the ticketing programme aims
to enable as many people to experience the Games as possible (IOC, 2010a). It may therefore
be argued that the Olympic marketing programmes aim to promote and reflect the original
Olympic values. However it was unknown if implementing and putting the values of
Olympism into practice was evident.
Initially the marketing strategies of the bidding host city were analysed in order to discover if
they reflected the original Olympic values. Research showed that some bid cities are more
concerned with the business enhancements the Olympic Games generate (Burton, 2003),
28
rather than the ethical values one would associate with Olympism. It was also discovered that
the astronomical cost of hosting the Olympic Games (Chalip, 2002) prevented less
economically powerful countries and cities bidding to host the Games (Xing et al., 2008). A
vacant African host city at the Olympic Games is an example of the IOC disregarding
worldwide inclusion, one of the fundamental principles of Olympism. However according to
Xing et al. (2008) previous successful host city bid presentations included many of the values
of Olympism, for example the London 2012 bid included aspects of worldwide inclusion,
peaceful wellbeing, and young people and education. Additionally there was evidence of the
LOCOG putting these principles of Olympism into practice. For example the London 2012
official website demonstrated evidence of higher education opportunities, actively involving
children and education, and also using sport to enrich the lives of people in underdeveloped
countries worldwide (LOCOG, 2011).
Olympic sponsorship was described as an essential component to the staging of an Olympic
Games (DaCosta, 2002). The IOC (2010a) explains that the objective of Olympic marketing
is to assist in the promotion of Olympism, and to support the TOP programmes in the
promotion of the Olympic ideals. With this in mind some of the marketing strategies of the
official TOP sponsors from the Beijing 2008 Olympic Games were analysed using
Giannoulakis et al. (2008). McDonald’s, Adidas, UPS, and Coca-Cola all failed to mention
any association with Olympism in their marketing strategies, which is not surprising from a
business perspective, who’s ultimate goal is to make money. However the IOC seems to turn
a blind eye to this, without regulating and enforcing the sponsors to incorporate some
Olympism values into their strategies. The IOC (2008) state that in sponsors associating
themselves with the Olympic they are conforming to the values of Olympism. Consequently
it may be suggested that the IOC have little power over determining the marketing strategy of
the TOP sponsors as the Olympic Games relies so heavily on sponsorship investment and
revenue. However it may be suggested the IOC could require all official sponsors of the
Olympic Games to incorporate factors of Olympism throughout their marketing strategies.
Coca-Cola showed some evidence of Olympism at the Beijing 2008 Olympics, where
educational exhibits of Coca-Cola and the Olympic Games were displayed among the
Olympic village (IOC, 2008).
29
Ambush marketing was viewed as a threat and a weakness to the Olympic marketing
programme (Séguin, 2002). Furthermore Toft (2009) suggests the attributes associated with
ambush marketing hinder the effectiveness of Olympism, with the value of sponsors
diminishing, leaving the Olympic reputation and prestige damaged. Although this is evidence
of the Olympic values and Olympism being ignored and sidelined in marketing strategies it is
apparent that the IOC appear to be making steps in preventing and reducing ambush
marketing. For example the IOC and LOCOG have prevented the use of words associated to
the London 2012 Games, unless you are an official Olympic sponsor. It may therefore be
argued that even though it is an open free market, the IOC has taken steps to protect
Olympism in reducing ambush marketing. However it is foreseeable that marketing strategies
will be adjusted and modified to conform to IOC regulations, but still take the form of
ambush marketing.
The IOC’s objective of Olympic broadcasting is to spread and promote the principles and
values of Olympism through media coverage (IOC, 2010a). To understand if this objective is
achieved broadcasting facts and figures were analysed. According to the IOC (2008) the
Beijing Olympic Games reached 4.3 billion people, providing an unprecedented choice of
where and when to watch the Games. This widespread audience suggested that the worldwide
inclusion value associated with Olympism had a direct relation to the IOC’s objective.
However is simply providing coverage of the Games enough to cover all aspects of
Olympism? It could be argued that worldwide inclusion is the only value the IOC spread and
promote through its media coverage, education, peace, and ethical values associated with
sport appear to be vacant. A possible suggestion to address this lack of promotion of
Olympism through the media is to air a five minute educational film before Olympic
coverage, provided by the IOC, potentially sponsored by an Olympic partner, to help promote
and spread the values of Olympism in accordance with the broadcasting objective.
Olympic Games licensing memorabilia dates back to 425 BC (IOC, 2010a), where coins and
stamps were produced to mark and commemorate different Olympic Games. As these items
are traditionally continued today it was suggested that these products are a means of
educating people through sport, recognising the origin and history of the Olympic Games.
Education is strongly linked with Olympism and it therefore could be proposed licensed
products reflect the original Olympic values and Olympism. There is further evidence of
these educational products in the approach to the London 2012 Olympic Games, where an
30
array of products reflecting the culture and history of the host city are available (see appendix
D). Although this does imply a strong relation to Olympism, the other values associated with
Olympism seem to have been eluded, for example peace, worldwide inclusion, and the ethical
values associated with sport. If one would give advice to the IOC licensing programme to
suggest a solution to further promote Olympism through its products, t-shirts, posters, pins, or
badges with Olympism related words or phrases designed into them may seem appropriate.
The Olympic ticketing objective is to enable as many people as possible to experience
Olympic Games ceremonies and competitions (IOC, 2010a). It was discovered that evidence
of this objective being achieved is in the percentage of ticket sales from the Beijing 2008
Olympic Games, where according to IOC (2008) 95.6% of tickets were sold, a higher
percentage than any previous Games. This could possibly suggest that the IOC link the
Olympism value of worldwide inclusion within their ticking strategy, allowing as many
people as possible to experience the Games. However it was also suggested that the
percentage of tickets sold was due to the relatively inexpensive price of a ticket at the Beijing
2008 Olympics, between US $ 0.75 and US $ 150. This when compared with the London
2012 ticketing prices of £20 and £725 (approx US $ 32 and US $ 1165) is significantly lower.
Consequently the London 2012 Olympic Games may be pricing tickets too high to enable
worldwide inclusion, a fundamental value of Olympism. However other Olympism values,
for instance peace and ethical values associated with sport seem to have been addressed by
the LOCOG. According to the BBC (2011) fines for ticketing touts at the London 2012
Olympics will rise from £5000 to £20000, as a means of controlling the unethical sale of a
ticket. This may therefore suggest that the LOCOG consider peaceful wellbeing and ethical
values of ticket sales when marketing tickets for the London 2012 Games.
To summarise the key findings from the text a SWOT analysis will be formed, see table 5. A
SWOT analysis is ‘an analysis of the strengths and weaknesses present internally in an
organisation, coupled with the opportunities and threats that the organisation faces externally’
(Lynch, 2009, p. 302). A SWOT analysis of Olympic marketing and Olympism will present
clearly and precisely the information discovered.
31
Table 5. SWOT analysis of Olympic marketing and Olympism
INTERNAL STRENGTHS
 IOC’s clear aim to promote Olympism
through marketing strategies.
 Successful bid cities include many
aspects of Olympism in bid presentation
and show evidence of implementing
these objectives.
 Coca-Cola shows evidence of promoting
Olympism through educational exhibits
at Beijing 2008 Olympics.
 The IOC makes steps against ambush
marketing with the banning of Olympic
related words.
 Broadcasting promotes Olympism value
of worldwide inclusion through
accessibility of Olympic coverage.
 Licensed products promote Olympism
value of education using culture, history
and origin of the Olympic Games and
host city.
 Ticketing sales suggest a link with
Olympism value worldwide inclusion.
 Effort of IOC and LOCOG to reduce
touting at the London 2012 Olympics
promotes ethical and peaceful values
associated with Olympism.
EXTERNAL OPPORTUNITIES
 The creation of a worldwide definition
of Olympism. Worldwide inclusion,



promotion of peace, education through
sport, and ethical values associated with
sport.
The IOC to require all official sponsors
of the Olympic Games to incorporate
Olympism throughout their marketing
strategies.
Broadcast a five minute educational
video before Olympic Games coverage
to promote Olympism.
Create licensed products that promote
Olympism through the use of Olympism
related words of phrases designed into
products.
INTERNAL WEAKNESSES
 No worldwide recognised definition of
Olympism.
 Implementing all the values of
Olympism within marketing strategies.
 Cities bidding to host the Olympic
Games for purely financial and
economical benefits.
 Less economically powerful countries
and cities unable to host Olympic Games
due to cost of hosting.
 TOP Olympic sponsors only mention
business and financial related goals, with
no mention of Olympism.
 Ambush marketing hindering the
effectiveness of Olympism.
 Broadcasting does not promote the
Olympism values of education, peace,
and ethical values.
 Licensing products do not promote
peace, worldwide inclusion, and ethical
values.
EXTERNAL THREATS
 Value of Olympism decreased.
 A continued growth in ambush
marketing.
 The price of the London 2012 Olympic
Games tickets too high to allow for
Olympism value of worldwide inclusion.
32
From this SWOT analysis one would suggest that Olympism is reflected throughout some of
the marketing aspects at the Olympic Games. The IOC aim to promote Olympism throughout
Olympic marketing strategies, and the analysis shows evidence of this implementation.
However, the analysis also suggests that not all Olympism values are represented and
promoted through each individual marketing practice. For example sponsorship, broadcasting
and licensing all incorporate some, but not all Olympism values. With this in mind it could be
argued that the current marketing practises at the Olympic Games reflect only some of the
original Olympic values. It appears the IOC marketing objective of promoting Olympism
worldwide is only partially met, with inconsistencies and contradictory representations of
Olympism in Olympic marketing.
From a personal perspective the IOC appear to have various solutions to the problem of
implementing Olympism into Olympic marketing. These are represented in the opportunities
of the SWOT analysis. However it is also understandable that without a worldwide
recognised definition of Olympism, none of these values are clear and free to be enforced in
the twenty first century. With common values ever changing the IOC may continue to
struggle to implement Olympism values within its current marketing practices.
A reflective consideration of the theoretical implications of the study indicate that, the use of
academic theory was paramount to the completion of the research project and to achieve the
results documented, and the arguments put forward. Information on both Olympism and
Olympic marketing was sought using up to date official Olympic documents, allowing
reliable factual data. Academic articles and journals permitted further analysis and
contributed highly in the creation of personal judgment and proposed solutions. Although to
suggest that all recommendations made throughout the study are faultless and thoroughly
well documented would be imprudent. Consequently the practical implications of proposed
solutions may not represent the aims of the IOC. For instance if the Olympic Games cannot
run without the Olympic sponsors (Giannoulakis et al., 2008), would the IOC risk the
requirement for all Olympic sponsors to incorporate Olympism throughout their marketing
strategies? Without putting forward the ideas of this study to the IOC, the answer is
undoubtedly unknown.
33
The research approach to this study allowed numerous theoretical arguments to be supported
from previous studies, which consequently allowed the author to interpret these theories and
critically process the results. The information was gathered from reliable sources of both
academic and non-academic documents. This contributed significantly to the final summary
of the study, and without such literature it would simply not have been feasible. However, the
process may have benefited from interviews to find out more firsthand information from the
IOC about the Olympism marketing objectives, and how they propose these are implemented.
An interview with an IOC marketing executive may be beneficial, as they should be able to
answer these questions and it may also be suggested that a clearer definition of Olympism
would have been sought. Additionally, an interview of a TOP sponsor of the Olympic Games
could help further understand a sponsors view, understanding, or opinion of Olympism, as
well as questioning their connection with the values associated with Olympism.
For improvements and developments of the study it is suggested as previously mentioned that
an interview with an IOC marketing member would deem beneficial. Questioning the
definition of Olympism, and how they incorporate the values of Olympism into their
marketing strategies. Furthermore an interview with a TOP or many of the TOP sponsorship
partners may allow additional information on a sponsor’s opinion of the values of Olympism,
and questioning their relationship with Olympism as an official Olympic sponsor. However
arranging and organising interviews with high profile business persons is usually problematic
and the barriers for a student to reach such a target is exceedingly optimistic.
To conclude the hypothesis of this study expected that there will be some marketing
strategies in place that will follow the Olympic values and Olympism. However it is also
probable that there are some anomalies that will arise. From the results of the study it is clear
that this hypothesis was accurate, there are some marketing practices that reflect the original
Olympic values, but also numerous aspects that are contradictory and elements that
demonstrate an inadequate reflection of Olympism and its purpose.
34
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APPENDICES
APPENDIX A
The following companies are TOP Partners for the London 2012 Olympic Games.
Source: IOC (2011b)
39
APPENDIX B
2012 official partners:
2012 official supporters:
40
2012 official suppliers and providers:
Source: LOCOG (2011)
41
APPENDIX C
Summary of interview responses by Olympic TOP executives, NOC sponsors and Olympic
marketing executives on the current Olympic marketing programme:
BENEFITS
KEY COMPONENTS TO SUCCESS
• SCORE OF PROPERTY
• POWER OF THE OLYMPIC BRAND
• BRAND FIT, ASSOCIATION
• IDEALS OF OLYMPISM
• ASSOCIATIVE ENERGY
• REVENUE GENERATION
• CONTRIBUTE BACK TO THE COUNTRY
• RIGHTS TO MARKS
• HOSPITALITY BENEFITS
• ABILITY TO DRIVE SALES
• AWARENESS OF OLYMPIC BRAND
• POINT OF DIFFERENTIATION
• WORLDWIDE PROPERTY WITH OPPORTUNITY TO
BUILD
PROGRAMMES LOCALLY/GENERALLY
• IDEALS OF OLYMPISM (PURITY)
• ASSOCIATION WITH ATHLETES
• POWER OF THE BRAND
• ACTIVATION AT THE LOCAL LEVEL BY
SUPPORTING LOCAL
OLYMPIC TEAM
• FULLY INTEGRATED AND LEVERAGED OVER A
SIGNIFICANT PERIOD OF TIME
• TELEVISION COVERAGE
• EXCLUSIVITY IN 200 COUNTRIES WORLDWIDE
• HOSPITALITY EXTENSIONS
• DEEP UNDERSTANDING OF WHAT ONE IS
LOOKING
TO ACHIEVE WITH THE BRAND ASSOCIATION
• PROTECTION OF EXCLUSIVITY FOR PARTNERS
• CLEAR DEFINITION OF STRATEGIC OBJECTIVES
• SPONSOR SERVICING
WEAKNESSES
THREATS
• PUBLIC RELATIONS
• PROTECTION OF RIGHTS
• OVER-COMMERCIALISATION
• CLUTTER-DILUTION
• WINDOW OF MARKETING OPPORTUNITY
AROUND
THE GAMES LIMITED
• AMBUSH
• LACK OF RELEVANCE TO YOUTH
• ERODING EFFECTS OF BRAND FROM SCANDALS
• HIGHLY OVERPRICED
• SPONSOR RECOGNITION
• LACK OF INTEGRATION BETWEEN THE PROPERTY
AND
TELEVISION
• LACK OF PROGRAMMES TO SUPPORT SPONSORS
• LACK OF IMPACT ON ATHLETES
• CLEAN VENUE RESTRICTIONS
• COMMUNICATING THE ROLE OF SPONSORS
• SPONSOR SERVICING
• CLUTTER
• AMBUSH MARKETING
• POLITICS
• LACK OF SPENDING (TIME AND MONEY) ON
BRAND
• TELEVISION RIGHTS, LACK OF BROADCAST
INTEGRATION WITH SPONSORSHIP
• UNPREDICTABLE RATINGS FOR TELEVISION
• RELEVANCE OF OLYMPICS TO YOUNGER
GENERATION
• DOPING
• MISMANAGEMENT OF FUNDS
• COST ESCALATION WITH PROPERTIES
• CONVERGENCE OF CATEGORIES
• ABILITY FOR A COMPANY TO CONNECT AT ALL
LEVELS
• NON-SIGNAGE CLAUSE/CLEAN VENUE
• UNDER-SERVICING SPONSORS AND NOT
DELIVERING VALUE
• NON-ACTIVATION OF SPONSORSHIP
BY SPONSORS
Source: Seguin (2002)
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APPENDIX D
Official licensed products for the London 2012 Olympic Games that reflect the history and
culture of Great Britain.
Queen’s guard toy
Beefeater toy
Die cast vehicles associated with Great Britain
Source: LOCOG (2011)
43