POSTED: Thursday May 7th 2009

Madrid 2016's marketing strategy combines head and heart

Madrid 2016 combines the reliability of a realistic project with the emotive slogan ‘Feeling the experience is in your hands’

  Marketing with Head and Heart  -        Strategy is based on solid agreements with key partners, the protection of the Olympic image and an excellent service to the sponsors  -        The objective is to fill stadiums. Calculations indicate income of $507 million on ticket sales of 75%, and could be higher  -        The Games will have many windows to the world: 50,000 display advertising spaces on public transport, in airports and sub venues have been booked  -        Madrid 2016 will also create a department for brand protection   Madrid, 7 May 2009 - Madrid 2016’s marketing strategy “perfectly combines reliability and financial solvency with the slogan, ‘Feeling the experience is in your hands’”. With these words, the President of the Spanish Olympic Committee, Alejandro Blanco, introduced the presentation about marketing, a subject in which “every required guarantee has been given”. Commitment to “the protection and promotion of the Olympic brand before and during the Games is absolute”. Victor Sánchez, Secretary of the Spanish Olympic Committee, spoke about the IOC’s marketing requirements. “The agreement of joint commercialization between the City Hall and the Spanish Olympic Committee, and approved by the IOC, contributes to the optimization of the Olympic image, as well as the generation of income for the Games”, said Sánchez. The document also gives marketing rights to the Games organizing committee (COJO) with the aim of “joining efforts and unifying matters related to commercialization of the Games, as well as guaranteeing that Spanish sponsors are fully compliant with Olympic marketing strategies. Ramiro Lahera, Madrid 2016 Marketing and Sponsorship Manager, has set Madrid 2016’s marketing strategy based on solid agreements with key partners like the Spanish Olympic Committee, the Spanish Paralympic Committee and the national federations. Other strategic pillars are: creative promotion and strong protection of the Olympic image, the challenge of reasonable and attainable income; the reasonable ticket prices to fill stadia, and an excellent deal for sponsors.  His presentation touched on three main themes: protection and promotion of the Games and support of Madrid 2016’s marketing under the motto ‘Feeling the experience is in your hands’. The promotion of the Games goes hand in hand with the protection of the Olympic image and the defence of sponsors’ rights. It is guaranteed by fighting combating adverse marketing with the help of Spanish and European legislation in brand protection. “International sport events like the America’s Cup or EuroBasket 2008 have taken place without incident”. Madrid 2016 will also create a brand protection department that will prevent, manage, analyze and resolve any complaints or incidents, as well as develop campaigns and courses to educate, orient and increase awareness levels of all involved. Advertising spaceThe Games will have thousands of windows into the world. 50,000 advertising spaces have been reserved for the IOC, the organizing committee and their sponsors. The Olympic values will be on the streets and promoted on public transport. They will also be spaces in airports both in Madrid and the sub venues. “Around 100% of the spaces are covered by contract, which means that 100 agreements have been signed, involving 13 private entities and 23 institutions. These guarantees have been signed by the owners of the spaces, city councils and private companies that manage the spaces such as JC Decaux, one of Madrid 2016’s biggest sponsors. Support of the GamesSpain is one of the main investors in sports sponsorship in Europe, with approximately $900 million in 2007, i.e. 7.5% of Europe’s total investment. Spain has also been the country with the highest increase in sports sponsorship, at 11.2%. This data was given by Lahera, who set private financing of the bid at 70%. “Estimated sponsorship income has increased approximately to $657 million in 2008, a number that went down by 8% due to the economic situation. It is realistic and feasible data. We believe this number constitutes approximately 6% of total sports, social and cultural sponsorship for the 2011-2016 period.” The income obtained from local sponsors constitutes one of the financing pillars for the Olympic and Paralympic Games. It has been calculated by an in-depth analysis comparing the Sydney, Athens and Beijing Games, as well as other international sporting events held in Spain, like the 1992 Barcelona Games, the Mediterranean Games in Almeria in 2005, EuroBasket 2007 and the Americas Cup 2008. Sponsorship investment has also been the subject of thorough market research into international sponsorship, “thanks to one-on-one meetings with some of Madrid 2016’s sponsors and other companies, we have obtained reliable information on this kind of investment, getting to understand which events are more attractive, what should be the general marketing strategy and which opportunities we would have of winning sponsorship for the Games, to an approximate amount.” Local Sponsorship PlanWith the comparative study, categories 1 and 2 of the Local Sponsorship Plan have been developed. The document identifies the unique characteristics of Spain’s sponsorship market, its main sectors and their involvement in sporting events. It also looks at tax benefits for sponsors and specifies which sectors won’t have exclusivity (such as real estate or sports equipment). Cost analysis that may be subject to sponsorship, like cleaning, catering or broadcasting, are also estimated. Antonio Garrigues, Club Madrid 16 President, referred to Madrid 2016 Sponsorship as the “support of the private sector for Madrid; and a vital project for Madrid, Spain and the Olympic and Paralympic Games of Madrid 2016”. Sponsorship goes “further than financing investment. It is a strategic association with the city and the contribution of knowledge, experience and strategic vision to help get the Games and position the city as a world leader. The sponsors’ support will continue if Madrid were chosen as host city”. This was confirmed by Repsol president Antonio Brufau. “Repsol will help Madrid 2016, as it has done during the bid phase”. ‘Feeling the experience is in your hands’Madrid will be immersed in the visual aspect of the Games. “It will be a great Olympic Village, because our objective is living the Games without having to be inside the venues. To achieve that, the bid has planned a series of activities, so the city can breathe and feel the Games. We will dress the whole city: buildings, stations and airports”. Getting the world to know about Madrid’s Games will cost $50 million, and $52 million for “Publicity and Promotion”, at national and international levels in press, radio and television. The sponsor, well looked afterSponsors will be well looked after. A Sponsor Welcome Centre will be set up one hundred metres away from the Olympic Stadium. It will have a specific department with an individual 24-hour coordinator for each sponsor, seven days a week. Sponsors and guests will have the unique opportunity of enjoying Spanish folklore, gastronomy and culture, in the capital city and the seven World Heritage Sites, situated within less than a hundred kilometres from the capital. Sponsors will also have areas for their products at their disposal. They will have stands and audiovisual support to follow all competitions. Realistic previsionsThe objective is to fill stadia. With data from 2008, income is estimated at $507 million if more than 75% of tickets are sold (even if estimates for sales are higher). “The IOC and Madrid 2016 will work together to reduce empty seats. The best way to enjoy this event is by going to the stadia, living the Olympic atmosphere; in conclusion, live it from the inside”, said Lahera. Ticket prices are at an average of $83. “We have a 50-50 rule: 50% of the tickets will be under $50. Spanish spectators are used to that price range. The cheapest ticket for the Real Madrid-Barcelona match last week was $70.” Taking the Games homeThe Games have three phases: preparation, celebration and memory. “The organizing committee will commercialize different product categories with different price ranges so they can be accessible to everyone. Estimates reach $105 million, with 2008 data”. Lahera also mentioned the importance of stamps and coin sales, a concept common throughout the Olympic world, thanks to “the tradition founded with Barcelona ‘92, Expo ‘92 in Seville and the Water Expo in Zaragoza”. - ENDS –  For further information please call Malcolm Munro on + 44 7795013006    MARKETING IntroductionAlejandro Blanco, President of the Spanish Olympic Committee SpeakersVictor Sanchez, Secretary of the Spanish Olympic CommitteeRamiro Lahera, Madrid 2016 Marketing and Sponsorship ManagerAntonio Garrigues, President of Garrigues and Club Madrid 16Antonio Brufau, President of Repsol

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Keywords · Madrid 2016 · Olympic Bid · IOC

Name: Malcom Munro
Organization: Madrid 2016 Olympic Bid
Phone: +44 (0) 7795 013006

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