The Overview of Marketing Plan

Question:

What is the main aim of the overview of marketing plan of the winter Olympics ?

Answer:

Introduction

The main aim of the report is to look into the overview of marketing plan of the winter Olympics that was conducted in the year 2006 in Italy. The report consists of four sections. The first section specifies the key features and the background of the sports management in comparison with the winter Olympics of the tear 2006. It specifies the trends and the strategic areas, the marketing components of Olympics and the key strategies and policy objectives of Olympics. In section two the author discusses the aims and objectives of conducting the game and the key stakeholders that it has. It also mentions the communication strategies that Olympics have used to promote its components. In the third section the author specifies the marketing mix strategy of the Olympics game specifying the customer satisfaction level and the profitability. It also provides recommendation for the future marketing strategy. The last section specifies the portfolio of the winter Olympics game held in the year 2006 (www.olympics.com 2006)

Task 1 

• Background

The winter Olympics that is known also known as Torino was held in the year 2006 in February at Turin, Italy. It provided the word with wonderful experience and also attracted many tourists. The game promotion was supported by the broadcasters of Olympic and was provided the vital resources. It had a wide range of activities. It also received a great support from the broadcaster of Olympic and the national and international Olympic committee. The support of the Olympic committee has helped the sports gain popularity increasing the number of participant nations that it has (Frey et al. 2008). 

• Key Features of Marketing Programs

Many marketing programs were used by the Olympic Games to promote its strategy. It also got a great support form the broadcasters of Olympic and then Olympic committee as well. It used the media technologies and promoted its product thorough use of internet and other digital marketing strategies. It had great motivation and the brand name was enough to promote the product. It has become one of the large scales and one of the most used technology and programme to earn profit (Müller 2012).   

• Trends and Strategic Areas

The winter Olympics has gained a lot of popularity in recent years. The support from the broadcasters of Olympic helped the winter Olympic gain its popularity in recent years. Its main strategy was to grab as many nations as it can in the game to attract the greater group of audiences. It main objective was to increase profit. The game that was held in Italy in 2006 had also incorporated new strategies and activities that attracted greater tourists and nations.  

• Marketing components

Marketing components means the marketing plan. It includes the component such as branding, labelling, review and celebrating humanity. The main marketing component is branding that consists of three essential pillars such as success, attributes and values. It is involved in incorporating new activities that attracts major customers. Its main goal is to strive for success. Various elements separate the game of Olympic form other sports event. The brand name is what attracts the customer. Olympic Games are more about promoting peace, unity and global community. It is in fact much more than sports. The customers that it targeted included from worldwide. The main aim was to target the entire world to promote its activities. The major committee that is involved in promoting the brand is the international committee of Olympics. Celebrate humanity is the organization that greatly promotes the brand (Billings et al. 2008). 

• Key strategies Aspects

The key strategy that it has used to differentiate from other years was the use of Olympic torch replay that was the tallest Olympic cauldron in history. The main key strategy was to increase profit, attract wider nations to participate in the activities and promote peace and competition so that children get motivated from it and show their interest in learning new games and sports. It was the first Olympic game to be promoted in television and other online marketing channels that greatly increased the popularity of the game. It had live broadcasting where the audience could view what was actually happening in the game (Gordon 2012). 

• Policy objectives

The policy objectives of the winter Olympics included using the digital marketing techniques to promote the game. Its policy also included attracting more sponsors for its management. It also had highly successful ticketing and licensing programme that had surpassed the budget of the Olympic group. The main policy was to use the brand name to promote the game. The policy is to combine the goals with corporate culture (Chappelet 2008). 

Task 2 

• Aims and Objectives

The main aim of the marketing programme and promotional activity was to apply technological innovation in its strategy. Its aim was to attract great number of sponsors. It also aimed at increasing the number of participating nations in the activities. The main aim was to promote peace, and humanity. Another goal was to increase and maximise the profit. The main foundation on which the marketing plan is based is on its brand name that promoted the major strength to the game (Vanwynsberghe et al. 2013).      

• Key Stakeholders and their Responsibilities (Points combined)

Stakeholders are the people, or the organization that are involved in promoting the service and in return gets the share of the profit that arises from the activities. Its major stakeholders were international Olympics committee, and its Olympic broadcast partners were CNN international, ESPN international, BGBNT, TRT, YLE, and ARD TV. Its major stakeholder was international Olympics partner (IOC) and the broadcasting channels that helped the game to be promoted worldwide (Huang and Sarigöllü 2012). 

• Communication Strategy

The main strategy of winter Olympics 2006 was to communicate its activities worldwide. Its main strategy was to incorporate the help of the broadcasting channels and the international Olympic committee to broadcast its activity live on television and internet and other social media. The three communication tools and essence that emerged was that of friendship, excellence and respect. The main aim was to communicate its activities worldwide across all audience. It aimed at attracting many nations as participants of the fame. The major strategy was to broadcast the winter Olympics activities live on television and internet. The strategy was to raise the awareness of the game through proper communication. Its strategy is to communicate the core values of the Olympics to the audience worldwide (Robinson and Bauman 2008).   

• Communications Tools and Channels

The main communication tool that was used was technology and digital marketing. It used television, internet, social media, broadcasting channels to communicate its strategies and objectives to people worldwide. The major communication tools that were used were internet and social media. It presents an example of great humanity and respect a respect for yourself, others and rules. Its communication strategy also aimed at promoting excellence and friendship as it gives the best example of sorts and culture. It aims at promoting peace and humanity (Shank and Lyberger 2014). 

• General Code of Conduct

The general code of conduct that was established in the Winter Olympics was based on the attributes of being global, participative, celebrative and festive. However, the most essential quality that was required to be in unity while posing positive human values as well. The general code of conduct is fulfilled with understanding and ascertaining to universal ideals namely inspiration, respect and optimism that not only transcends sport but also echoes the strength of unity in the world (Anon 2006). 

• Feedback Mechanisms

The support of feedback is important to any strategy but it holds a special role in communication strategy as it is the return message one gets. Moreover, in a major event like Winter Olympics, it becomes important to have two way communications as it provides a brief knowledge of what influence an event has given to the people (Georgievska 2011). The feedback mechanisms have been placed through effective and internal communication and as well as transparency of information (Varnier and Martin, 2006). 

The feedbacks mechanisms are used are customer interviews, customer surveys, customer visits, complaint system or through customer focus groups. However, all these feedbacks can add valuable information and develop a comprehensive understanding of the successful completion of the task (Atlikhan et al. 2013).

• Legislative Content

Winter Olympics have a great support from the government and international Olympics committee as well. The licensing and the ticketing programme of the game are also well developed. It has all the license support that it can get from different authority heads. It also gets support from the finance minister in the form of sponsorship. It also has the support from the marketing commission of the country. The government of Italy was a great support to the event. 

Task 3 

• Executive Summary

The Torinho 2006 Winter Olympics has witnessed various marketing programmes that have helped in broadcasting innovations as well as other sponsorship programmes. As a result the power of Olympic Brand has gathered various insights and marketing efforts that not only vividly have expressed celebration passion and participation but has also even contributed to the financial resources and promotional support while aligning values and corporate cultures with ideals.

• Marketing Outcomes under Fundamental Objectives

The marketing outcomes was been supported with maximum revenue through significant coverage worldwide. Moreover, sponsorship has provided opportunities in media technology through an excess of multiple channels on internet, television channels and mobile phones.  However, through its merger it has not only helped in integrating TV rights but has also helped in providing synergies to increase the level of support from the partners (Anon 2006). Moreover, the marketing outcomes also resulted in the enhanced brand image, positive brand attributes, high appeal and awareness while making contributions making on the worlds stage to increase sales and motivate employees at the same time.

• Client Service Grid

The major clients were its audience that included children and people from worldwide. It aimed at increasing the number of participant countries or nations to gain popularity, and promotes peace, friendship, and humanity worldwide. Its clients comprised of broadcasting channels, new channels, Social media channels and other Olympics and sports committee.  

• Marketing Strategy Matrix

The marketing mix strategy of winter Olympics is the tool that is used to promote the service in the market. It comprises of the four Ps that are price, promotion, place and product. Product of the winter Olympics is not commodity but service of sports that it provides. Various services that Olympics provide are sports such as chess, swimming and others. The price that it charges is to earn the maximum revenue it can. The broadcasting channel has helped the game earn major revenue. Promotion has helped the Olympics gain popularity as it targeted audience worldwide. It has used many promoting channels such as internet, social media and other communication and broadcasting channels such as news and television. It was the first Olympics to promote and include technological innovation in its promotion. The other element of marketing mix is the place or the distribution channel. The winter Olympics was conducted in Turin in Italy. This was the host country that gave great support to the event (Müller 2012). Customer Satisfaction

Customer all across the world was very happy and satisfied. They got to see the new innovation in event as they also had ten opportunities to see the activities live in television. The customers were satisfied with the service and the price policy that it used.  

• Profitability and ROI

International Olympic Association had earned huge amount of revenue from Tunir Olympic 2006. The financial information from the annual report of IOA for 2006 is the biggest prove of the fact. The following table is presented to describe the financial growth of IOA on 2006 in terms of profitability and revenue, due to the particular event:-

In the Books International Olympic Association:-

Particulars 2006 2005 % of Changes

  USD 000 USD 000  

Operating Cost:  

Central Operating & Administrative Cost A 83416 80598 3.50%

Olympic Game Related Expenditure B 123451 48495 154.56%

Distribution of Rights C 852341 137070 521.83%

TOTAL   D = A+B+C 1059208 266163 297.95%

TOTAL REVENUE E 1132524 188693 500.19%

Operating Profit F = E - D 73316 -77470 194.64%

Excess/Deficit of Revenue G 143334 -32838 536.49%

Operating Ratio D/E 93.53% 141.06% -33.70%

Net Revenue Ratio G/E 12.66% -17.40% 172.72%

Operating Profit Ratio E/F 6.47% -41.06% 115.77%

Return on Investment:-

For further analysis, the return on investment rates of IOA is also presented below:-

In the Books International Olympic Association:-

Particulars 2006 2005 % of Changes

  USD 000 USD 000

Investment Cost :

Short Term Investment 497690 450623 10.44%

Long term Investment 191973 266750 -28.03%

TOTAL 689663 717373 -3.86%

Investment Income 70018 44362 57.83%

Return on Investment 10.15% 6.18% 64.17%

• Performance Gap 

The main performance gap that has resulted from the Winter Olympics is the contrast observed between the resource availability as well as support system that have been observed in the top management due to the shortfalls that have been observed in the resource allocation and strategy execution to the fullest (Bladen, Kennell, Abson and Wilde 2012).

• Performance Review against KPI’s

Figure: KPI’s of a Sports Event

Source: (Parmenter 2015)

According to the KPI’s, the performance review of Winter Olympics have been better in comparison to its last year performance such that the event has used its maximum utilization of resources but the only drawback lies the resource allocation. However, when it comes to customer paid through revenue and profitability, the Winter Olympics have been and success and with investment it has been able to revive its losses in the previous years. On the other hand, the customer satisfaction have have been content with the live broadcasting of the event and the strategic price policy charged from them. However, the only disadvantage was the integration of information through processes in the system regarding time.

Formal Set of the Winter Olympics 2006

?Objective – Customer satisfaction (high appeal and awareness)

?Realistic – Communication strategy

?Quantifiable – Revenue and Profitability

?Actionable – Broadcasting actions through social media and internet (Degaris 2015)

The team of IOC marketing includes experts in the global and local activation of Olympic sponsorship programmes by making keen insights into market trends, consumer perception and sponsorship marketing, IOC Television and marketing. 

• New and Emerging Trends

The new and emerging trends that have been highlighted in the event are social media broadcasting with communication strategy that has added value to the event by making a brand image of generosity, peace and harmony. The social media and impact and brand value serves a response to the company or an event such that the vent can maintain its sustainability through identifying its key points, reaching out to the masses, empowering tools and nourishment of engagement and sharing (LiveE 2011). The new trends highlight the change in the format of Olympic advertising depending on the money spent by the corporate from sponsors for advertising, public relations, displaying, staging the games and community and legacy programmes that guarantee the profits. However, this strategy applied is beneficial as games bring a solid commercial return so that the companies can elaborate more targeting steps to take in consideration the interests of consumer groups (Shank and Lyberger 2014).

• Marketing Performance 

The marketing performance of the winter Olympics was good as the broadcast of the channel helped the Olympics gain popularity and also high revenue and profit. The future recommendation would be to plan the activities of the event and promotional activities within the budget that it has set. The only drawback of the entire event was that the cost of providing the event was high due to application of innovation in its technology (Jennings 2012).

• Staff Training

The staff and the workers that were involved in managing the event of Olympics were given proper training before the event started in order to avoid any mishap. Special instruction was given to communicate the event effectively and provide the best quality that it could its customers (Lusch and Vargo 2014).  Even more staff training can be effective if employee incentives and rewards are programmed through Olympic spirit that involves their personnel in an important corporate endeavor while leveraging an opportunity to strengthen morale and build staff loyalty (Anon 2006). However, staff training can be improved by providing by installing of different training programs that not only lessens the time and cost but also the efforts made by the staff to yield maximum results. However, staff straining can be based using in-house training, job shadowing, online course for effective coaching whereas effective mentoring can be provided by interaction by setting an example, challenging the ideas and thinking out of the box (Hess 2012).

• Recommendations for Future Marketing Strategy

The recommendations made on the strategy would be that the companies should insist to review their traditional theories of sponsorship. However, there is need to provide more private investments than public ones such that different programs could receive online association which could ultimately acquire loyalty among different consumer groups. On the other hand, improved strategies will not only strengthen the factor of sponsorship but will also lead to broadcasting on TV as well. Lastly, with more advancement of technology and a brand new vision of marketing a combination of advertising, promotion and sponsorship strategy can be devised (Ferrell and Hartline 2012). The future marketing strategies that can be applied in the process are through mobile because customers spend almost 60% of the time on mobile. According to reliable predictions in 2017, approximately 29.7 billion access the internet that totals to be 91% of the total populations. However, to build a strong strategy so that the customer feedback even does not hinders the progressive strategy. This can be done by following certain levels of building a strategy.

Firstly, through personal interactions with customers through customizing experiences whether it is message titling as “dear user/customer” or through personalized advertisements that ensures a wide base of interest and preferences of customers. Secondly, by building a clout of customer loyalty that not only encourages friendly competition but also ensures positive rewards for the customers. Lastly, offering entertainment on mobile while enabling broadcasting to the potential customers (Dawson 2015). Apart from this, the marketing strategy activation can be regulated through Olympic Museum, OTAB (Olympic Television Archive Bureau) and OPAB (Olympic Photographic Archive Bureau) and filming of Olympic through various programmers through images, interviews and strong narration. These videos demonstrate the scope of sponsor involvement in the staging of the games and the value that sponsors bring to the Olympic experience (IOC Marketing Report: Torino Olympic, 2009).

Task 4 

Portfolio 

The comparison between the amounts of operating cost, total revenue, operating profit and excess of revenue for 2006 and 2005 are shown in the following graph:-

The profitability ratios are also compared in the following bar chart:-

From the above charts, it can be explained that both the amounts of operating expenses and the revenue has been increased in the year 2006. It had happened due to the Turino Olympics, 2006. The central operating expenses had increased at a very minor rate, but the Olympic Game & distribution Right related expenses had increased at a very high rate, because of the expenses, incurred for the Winter Olympic, 2006. On the year 2005, there were no such big events, hence, the total revenue was very low and IOA had suffered from deficit of funds. The deficit was covered by the huge revenue, earned from the Winter Olympic,2006 and Net Revenue Ratio had became positive in comparison to the negative value of last year. The Operating Ratio which explains the share of operating expenses in the total revenue, earned has also decreased, which means that the proportion of operating expenses in the total revenue has decreased and the organization was able to earn a handsome of excess fund.

The increase in the return on investment also defines that the organization had earned more income from the investments on 2006 comparing to 2005.

The marketing strategy of the event was well established that mainly focussed on communicating its channel to the audience worldwide. Its main aim was to incorporate the technological innovation such as broadcasting channel and social media in its marketing mix strategy. It got a great support form the international committee of Olympics and the broadcasting channels. The main aim was to maximise revenue and promote peace, humanity and culture (Singh and Zhou 2015).   

?

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