“The only drawback is not executing it correctly,” Mr. Prazmark said. “It's a major investment that clearly at this size goes all the way to the top of the house. There has to be a clear vision on how you implement it internally worldwide. That's the only element they've got to be prepared for. It has to be embraced by the entire organization.”
He added that an Olympic affiliation also helps with recruitment. With unemployment tightening up in areas of the world, there becomes a fight to hire the best and the brightest in engineering or accounting. A lot of companies leverage their Olympic association to help tell their story and sell prospective employees on their culture.
“We see the Olympic Games as a strategic investment that differentiates us from our competitors and will lead to new growth opportunities,” Higgins said. “Our partnership will also help build awareness and reputation with consumers, and we know these are determining factors in their brand preference and choice.
"This is good for our entire value chain. Our partnership is also an opportunity to showcase, on a global scale, our company's values, and marks the first truly global marketing platform in Bridgestone's history, allowing us to engage new customers and key stakeholders around the world.”
Companies approach the Olympics differently. Mr. Prazmark said some firms use the Olympic affiliation every day over the four-year period, such as GE. While others, such as Coke, go all in during the weeks leading up to and through the games, and then they're done until the next Olympics.
Mr. Andrews said to be successful, a company has to take advantage of all the different elements having this association offers, and sometimes that means spending upwards of two times on the activation than what they spent on the fee. Some companies go into these associations not realizing that, or paying lip service to it, and then come to a painful realization.
“It certainly depends,” Mr. Andrews said. “You have to do it right. If Bridgestone, or any sponsor, does the right things and takes advantage of what they just bought and really uses this as a platform for all of these different kinds of marketing communications, we've seen that it can be a really effective vehicle. It certainly has great potential to be a very powerful marketing vehicle if it's activated and executed in the right way.”
Bridgestone has already begun leveraging its partnership, with a special “worldwide Olympic partner” logo and integrated Olympic themes into its most recent commercial for its DriveGuard tire line. The spot started running in May and featured Lorig firing arrows at both the DriveGuard and standard tire then comparing their performance.
Mr. Higgins said Bridgestone Americas' Olympic advertising will begin airing in August in both the U.S. and Brazil, running through the Paralympic games.
“Our activation plans for Rio 2016 include soon-to-launch national advertising and digital campaigns that will share our Olympic message in the U.S. and Brazil,” he said. “We've also launched an Olympic-themed retail marketing campaign to inspire teammates and help drive sales.”
Key concerns
With major events like the Olympics, there is always a concern that non-sponsors might try to employ ambush tactics. Mr. Prazmark said that the IOC goes to great lengths to protect its TOP sponsors.
“We have exclusive rights as a (TOP) partner, and both the IOC and USOC have very strong rules and protection plans in place to prevent ambush marketing,” Higgins said.
“As a TOP, we also have an exclusive buy with NBC, which gives us access that non-sponsors don't have. Some brands may try to push the limits when it comes to ambush marketing around a major event like the Olympic Games, and we trust that the IOC and the USOC will continue working hard to protect the rights of Bridgestone and other TOP partners.”
Ms. Skildum-Reid, however, said what the IOC and the Olympic organizing committees do tend to be limited to legal remedies, and the best ambushers know that they don't have to break any laws to be effective. But she added that TOP sponsors such as Bridgestone have the power to dominate many ambush channels by fully leveraging their sponsorship access.
“If a competitor is determined to run advertising that has a theme of athletic competition and sportsmanship, you can't prevent somebody from getting right up to that line,” Andrews said.
“You can only stop them if they cross it and most brands are smart enough to know right where that line is. But you go into these kinds of relationships understanding that's the environment. In this case, the best defense is a good offense. If you're out there marketing your official recognition, your rights to the games logo and the five rings, that's something nobody else can do in your category.”
And with every Olympics, there are usually a number of political and social issues leading up to the games. In 2008 it was concern over air pollution in China, and with Rio the Zika virus already has caused some athletes to back out of the games. Not to mention the financial situation in Brazil and the usually recurring concern that the host city might not be ready.
Mr. Higgins said Bridgestone is aware of the issues surrounding the games and is in close contact with the IOC and the Rio organizing committee on how they are being managed, taking a variety of precautions in its onsite operation. Andrews added that while global events such as the Olympics attract negative coverage, the brand is instantaneously recognized and comes with far more positive energy.
“Every Olympic games seems to have its hiccup going into it,” Mr. Prazmark said. “There's always this nail-biting period that we're in right now. A lot of people write about it, and the virus gets a lot of attention because some known athletes aren't going. But the games will happen. It's a worldwide phenomenon.
“The games start, and all of a sudden it's a global festival of humanity. People tend to rally around that.”
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This story appeared in Rubber & Plastics News, a sister publication of Tire Business.
