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SBD Global/July 30, 2012/Marketing and Sponsorship
Adidas CEO Herbert Hainer Says London Games Help Narrow Nike's Lead In Market
Published July 30, 2012
CLEAR TARGETS: This is the second consecutive Summer Games sponsored by adidas, following its sponsorship of the Beijing Games in '08. The company also sponsors FIFA's World Cup, which Hainer credited with boosting the company's soccer division's sales by as much as $2B. Hainer said the Olympics don't provide as much of a direct benefit as the World Cup because the soccer tournament results in the sale of countless national team jerseys and balls. The Olympics, he said, are less about sales and more about exposure. Hainer: "There are clear commercial targets (with football). This is not the case with the Olympics. If you are great with the 100 meter (dash), no one goes off to a store and buys a sprint shirt (jersey). But what it does is, for 17 days in a row, exposes your brand to I don't know how many billion cumulative people who go watch the Olympics."
BUILDING THE BRAND: Adidas' Beijing Games sponsorship helped it build its business in China, Hainer said, expanding to 5,000-plus stores across the country. He said he was "extremely pleased" with the results there and credited it with helping the company increase sales there to more than $1B. Despite the benefits the Olympics offered adidas in China and London, it opted not to pursue a sponsorship of the '16 Olympics in Rio. Nike reportedly has signed a deal to sponsor the '16 Games. Hainer said adidas felt sponsoring the 2014 World Cup in Brazil and '16 Olympics would be redundant, so the company decided to concentrate on the World Cup because soccer is the most popular sport in Brazil, as well as worldwide. The company will begin its marketing push for the World Cup in Brazil around next year's Confederation Cup (SPORTSBUSINESS JOURNAL, 7/29 issue).