Reference no: EM132286701

The United States Olympic Committee Persuading Business to Participate in the Olympic Movement

"We don't receive government funds," said Lynne Cribari, "so corporate funds and private donations provide the bulk of our support. And, in asking for corporate sponsorship, we walk a very fine line between encouraging enthusiasm for and participation in the Olympic spirit on the one hand, and crass over-commercialization on the other."

Lynne Cribari is Manager of Corporate Participation for the United States Olympic Committee (USOC), and works in the USOC's headquarters in Colorado Springs, Colorado. She received a political science degree from The Colorado College and, following a brief career in media relations and local television, joined the USOC as assistant director of broadcasting. Today, her task is to assist the Director of Marketing and the Executive Director of the USOC in securing corporate sponsorship for United States athletes training for and participating in the Olympic Games.

"Asking for corporate sponsorship is a difficult task," she said, "because we maintain exclusivity in each product category and we must negotiate separately with each corporation for the rights to use our marks and logos." Exclusivity, she explained, means that only one sponsor will be permitted to use the U.S. Olympic Committee's logotypes, including the universally recognized five-ring Olympic symbol.

Current sponsors include such corporate giants as IBM, Bausch & Lomb, Eastman Kodak, VISA Cards International, and Anheuser-Busch Brewing.

"Our task is to create an environment in which the marks are used appropriately," Cribari said, "and that means that we're directly involved in what's known as 'cause-related marketing.' If you use your VISA card to make a purchase, for example, VISA will contribute a certain amount to the U.S. Olympic Committee."

Cribari said the persuasive challenge in her job is to create a partnership in which both the Olympic Movement and the corporate sponsor will benefit. "We have a $600 million budget for the current four-year period and, as you can imagine, the costs involved in training and preparing an Olympic team for the coming games are enormous. We're proud of the fact that 85 cents from every dollar contributed will go directly to our primary purpose: training athletes."

"We usually ask our sponsors for cash," she explained, "but some provide us with 'value in kind.'" For example, 97 percent of the food fed to athletes in our Colorado Springs Training Center is "value in kind" and comes from corporate sponsors in the food business. These contributions are not trivial, though. "On average," she said, "we receive about $60 million from each sponsor. As you can see, this represents a huge investment for these companies, because they'll probably spend twice that amount on advertising and promotion in order to use our [trademarks] and logos."

How does the U.S. Olympic Committee approach a potential sponsor and ask for that much money? "Well," said Cribari, "we look at these partnerships from a value-added viewpoint. Altruism only goes so far; at a certain point, we must show them how their sponsorship of Olympic athletes will pay off in greater sales and increased corporate revenues."

"We usually begin with some historical data about the Olympic movement," she explained, "and then demonstrate how association with the movement has helped drive sales for other firms. Once a potential sponsor understands how the association works, we'll help them develop a marketing plan that will make the most effective use of our marks."

Cribari cited the case of Kraft General Foods as an example. "We helped them develop a fully integrated persuasive campaign," she said. "Kraft wanted to change the public perception of processed cheese. The public impression was that their products weren't in sync with a health-conscious diet, so they began using the phrase, 'Kraft sets the U.S. Olympic training table.' We worked with Kraft to develop their campaign, because we insist [on] truth in advertising, accuracy, and the use of actual athletes in their commercials. It's been a successful partnership for both of us," she added.

The campaign involves more than just the use of the Olympic rings, however. "A typical arrangement with a corporate sponsor will include help with advertising, promotions, product packaging, and such things as point-of-purchase giveaways." In the case of Kraft, the USOC helped produce a number of Olympic training table recipes using Kraft products, a cookbook that consumers could receive by mail, and a number of in-store appearances by Olympic athletes.

"As we formulate persuasive messages," Cribari said, "we must keep in mind that we're accountable to the public, to our sponsors, and to the Congress of the United States. As a result, we insist on truthfulness and accuracy and we work very hard to establish and maintain long-term relationships with prestigious, reliable sponsors." Coca-Cola, for example, has been an Olympic partner for more than 75 years.

"Our persuasive task doesn't end with a signed agreement for corporate sponsorship," Cribari explained. "After we've convinced a sponsor that association with the Olympic movement will help them sell products, we must convince them to use the logos and marks appropriately, and to remain both ethical and true to the spirit of the Olympic movement. Our relationship is unique to each sponsor," she added, "and it's an [ongoing], evolving matter for us."

What's the single greatest challenge in all of this for the USOC? "No question about it," Cribari replied. "We're competing for corporate sponsorship in a market that includes the NFL, the NHL, the NBA, and Major League Baseball. We're after limited sponsorship dollars and it's up to us to show how the Olympic movement is useful, productive and worthwhile for a corporate sponsor. If we succeed," she added, "it's a win-win situation for all of us: for the sponsor, for the USOC and the Olympic movement, and for U.S. athletes who'll compete for the gold in the Olympic games."

Please prepare a strategy memo and a professional communication letter in addressing this olympic movement. In preparing these documents, you may assume one of two roles: you may identify yourself as an external marketing consultant who has been asked to provide advice to the U.S. Olympic Committee, or you may assume the role of Ms. Lynne Cribari, Manager of Corporate Participation for the USOC or the chair of USOC with a sponsorship.