China will host the 2008 Olympic Games, which has given many companies that aim to open up the Chinese market an opportunity. For example, some electronic companies in island countries, Liangle Company in the United States, and some other companies.
However, the Japanese electronics companies and the Liangle Company in the United States have only a moderate relationship with the Chinese government. They feel that it is better to approach the International Olympic Committee for sponsorship directly than directly approaching China. After all, the so-called TOP sponsorship is decided by the International Olympic Committee. And it is mandatory to be included in the broadcast rights.
For example, Songxia, Coke and VISA have sponsored many Olympic Games, and they all think they are very cost-effective. For example, at the 2000 Sydney Olympics, their sponsorship increased their product sales a lot.
Songxia's rapid rise had a lot to do with their opening of the Chinese market. However, unknowingly, their share of the Chinese market has become less and less, and now they are squeezed out.
They know very well how huge the Chinese market is. It can be said to be the most important emerging market in the world. If the Chinese market can be opened again, Songxia's profits will definitely skyrocket again.
Few people have heard of VISA before in China. They also want to open up the Chinese market. After all, their credit cards can be used in many countries, which is more convenient.
Needless to say, Keke entered the Chinese market very early. Although it was not kicked out, its sales could not increase. Especially the big beverage alliance in China seems to be specifically targeting them.
The best media advertisements were snatched away, dealers were snatched away, advertising spokespersons were snatched away, and even the bottling plant they wanted to acquire was snatched away.
Coca-Cola is the leader in the beverage industry in many countries around the world, but in China, especially after so many years, it can’t even make it into the top five!
What depresses them the most is that many Chinese people now think that Lehaha's refreshing Coke is the authentic Coke. They are imitating it. God knows that this Coke was invented by their Coca-Cola Company!
Their delicious recipes are astronomically priced.
This time is an excellent opportunity. The Coca-Cola Company believes that they can take this opportunity to promote that Lehaha Coke is the imitator, and they can make a turnaround!
…
"What? Are you right? Why have the advertising fees of TOP sponsors increased so much? Didn't they say that they start from five million US dollars?" Keke's vice president of publicity shouted.
Are you kidding me? This is not the first time that Coca-Cola has sponsored the Olympics. They have always been a loyal sponsor of the Olympics and are the longest-standing sponsor in the history of the Olympics. They plan to keep setting this record.
No one knows the price of Olympic sponsorship better than their Coke company. Even for the Olympic Games in the United States, sponsorship fees are not that expensive. Why in China, a developing country, are sponsorship fees so high
"Jim, don't worry, this is not against your Keke Company. We can follow the negotiated sponsorship fee for 2004, but the price for 2008 is definitely not acceptable!"
"Why? There will be a certain increase in sponsorship fees every year. We have considered this, and our quotation is absolutely reasonable. But on what basis did you increase it so much all of a sudden? What do you mean, in 2008, China Can it become a developed country? Even if it is a developed country, sponsorship fees cannot be so outrageous!" Jim said angrily.
He wants to negotiate with the International Olympic Committee in advance for the 2008 TOP sponsorship. This is considered an advance, but it is not a loss. After all, if the contract is signed closer to the time, the price will definitely increase a lot.
Of course, China will not lose money. They can get the money earlier and use it to invest and build the Olympic Games. This model is familiar to Keke Company.
The sooner they sponsor, the more cost-effective they will be, because the sooner they can put the Olympic logo on their products, which will especially boost sales in the host country.
For example, launching products such as Olympic commemorative bottles can increase sales and profits a lot. Even after the Olympics are over, it can bring them sustained attention for a certain period of time.
But this time, it seems that the International Olympic Committee wants the lion to open its mouth. Is this what the Chinese Olympic Organizing Committee means
"Jim, let me show you a form and you will understand. This is the official sponsor of the 2008 Olympic Games. Look at their sponsorship amount."
Jim's eyes widened, this is impossible!
The top ten sponsors all have sponsorship amounts exceeding US$200 million, and the number one sponsor is US$500 million. How could there be such a high price!
Their sponsorship of the 2004 Olympics was only US$50 million. I originally thought that US$60 million would be enough for the China Olympics. After all, it would be paid in 2004.
But just now they saw the price given to them by the International Olympic Committee, which was US$200 million. They thought it was a lion opening its mouth, but now it seems that it really is not.
The amount of sponsorship from your TOP sponsor cannot be lower than the amount from other official sponsors, right
But the price of two hundred million US dollars is too high! The highest price they have in mind is not more than 80 million US dollars. This is just a TOP sponsor qualification, there are other advertising investments.
If this alone costs 200 million U.S. dollars, then the total investment for this Olympics will definitely exceed 300 million U.S. dollars. They may not be able to earn back such a lot of money.
"Has anyone signed a contract?" Jim asked.
"Not yet, but there are more than ten companies that have come to learn about it. Everyone said they should consider it. I suggest you consider it too. After all, you have sponsored so many Olympic Games. It would be a pity if it was interrupted. .”
Jim cursed in his heart, of course you hope we agree, so that your income can be greatly increased. But with such a high fee, he really didn't dare to decide.
Damn it, where did those Chinese sponsors come from!
Fengyu Electronics, Fengyu Electrical Appliances, Aihua Electronics, Aihua Electrical Appliances, Taihua Supermarket Group, Aihua Little Overlord, Taihua Consulting Company, Lehaha Group, Fengyu Consulting, Fengyu Holding Group.
After seeing Fengyu Holding Group and Taihua Holding Group, Coca-Cola Company knew what was going on. Aren't they both companies controlled by Feng Yu, the richest man in China
Isn't this Feng Yu a troublemaker? Can you make back the money you spent sponsoring this Olympics? And if you sponsor so much money, those other shareholders will agree
Feng Yu personally used funds to sponsor and promote the company, and others also took advantage. Of course they would not object. After all, this would create Olympic sponsorship history, and they would be remembered forever. This is a great benefit to the company. And brand promotion, has great benefits.
And they are all Chinese, and they will not be lenient when sponsoring their country. To put it bluntly, the shareholders of these companies are not short of money! For the company, it is also quite a publicity expenditure.
Jim left depressed. How should he explain this to the company? I had a guaranteed ticket before coming here, but something like this happened. What is this Feng Yu going to do
(End of chapter)