UPS announced this morning that it will not renew its
Olympic sponsorship pas part of the IOC's TOP program. UPS
become a worldwide partner of the IOC in '94 (UPS). In L.A.,
Alan Abrahamson calls the move a "setback to the marketing"
of the Olympic Games. UPS is "opting out despite the
success" of the Sydney Games, which "appears to have
reestablished the marketing luster" of the Olympics. UPS
execs "stressed" that the Salt Lake City bid scandal "did
not figure in the move," as they "indicated they simply
preferred a different marketing strategy." But Abrahamson
notes that the "run-up" to the Sydney Games was marked by
"ongoing tension between UPS and Olympic officials over the
delivery to Australian households of tickets to the Games."
If UPS has renewed its deal, the IOC would have been "able
to boast that, despite the scandal, it had secured or
renewed commitments in all 11 TOP categories." But IOC
Marketing Dir Michael Payne said, "10 of 11 is not bad."
Abrahamson notes that the cost of the '01-04 TOP sponsorship
"generally starts" at $55M (L.A. TIMES, 12/21). UPS
spokesperson Susan Rosenberg said that the company decided
not to renew "because it's too expensive." The IOC has
"increased the price" for the next four-year cycle by $10M.
Westhead notes that UPS "may still find a way to be linked
with the Olympics," as it "may instead sponsor" OPUS, which
analysts say costs $6M a year (BLOOMBERG NEWS, 12/21).
SAMSUNG LIKES GAMES TIE: Samsung Senior VP/Global
Marketing Operations Eric Kim, when asked if he expects the
company to continue its Olympic sponsorship, said,
"Absolutely. We find that kind of a global sporting event
to be very effective for us in raising our brand awareness
and brand credibility" (AD AGE, 12/18 issue).
