Olympic Games: Brand Winners & Losers
Karen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
No one can accuse the British of not taking their duties as Olympic hosts seriously. The London organizing committee needed to raise money, and many of the companies putting up the over one billion dollars demanded exclusivity in return for their financial support. As a result, all non-sponsoring companies have been blocked from even hinting they have any type of connection to the games. This exclusivity has brought out the best and the worst in those companies who paid for the right to have their brand showcased at the Olympics.
General Electric (NYSE: GE) is bringing the London Olympic Games to light and so far has earned over $100 million in additional sales revenue. Over the past four Olympic Games, the company generated a total of over $1 billion in infrastructure sales.
The Olympic Games are a substantial source of additional revenue and GE is already preparing for the 2016 Summer Games in Rio de Janeiro, Brazil. Investors considering taking a stake in GE may want to wait until the London Games are over and buy on a stock price dip in anticipation of the Rio games.
Who couldn’t help but cry while watching Procter & Gamble’s (NYSE: PG) “Thank You, Mom” videos? In addition, some athletes also made short videos showcasing the special relationship each one has with their mother. It should come as no surprise that P&G’s videos took first, second, third and fourth place per Ace Metrics, the only company scoring every ad run nationally before and during the games for their effectiveness.
The company looks to earn an additional $500 million in sales from the Games, a welcomed profit in the face of declining earnings due to the slowdown in Europe and Asia.
2012 marks the 36th year McDonald’s (NYSE: MCD) has been an Olympic sponsor and the first time the restaurant is serving Happy Meals. To help fight obesity claims, McDonald’s is promoting such healthful Happy Meal items as Kiwi-On-A-Stick, corn and the traditional apples. It waits to be seen if this Olympic change of menu is temporary or will become a fixed part of the Happy Meal fare.
Don’t expect to take the Pepsi Challenge at the 2012 games. Coca-Cola (NYSE: KO) has been an Olympic Games sponsor since 1928 and continues the tradition this year. Along with P&G, Coke has featured Olympians Shawn Johnson, Jessica Long and David Boudia in videos celebrating the Games. The company gave away free cans of Coke at the Olympic Torch Relay along with commemorative pins.
Visa (NYSE: V) has come in as one of the worst Olympic sponsors. On one hand they have scored big with videos highlighting past and present Olympic heroes. On the other, Visa is the only card accepted at the Games venues and is the exclusive payment services sponsor through 2020. Visitors who don’t have or use Visa had better come prepared with lots of cash in hand. Exclusivity is one thing. Inconveniencing millions of potential clients is something else.
Without the support of corporate sponsors, the Olympic Games would not have the grandeur we’ve come to expect. Exclusivity is one perk these companies should enjoy in appreciation of their financial contribution.
kprogers has no positions in the stocks mentioned above. The Motley Fool owns shares of The Coca-Cola Company and McDonald's. Motley Fool newsletter services recommend McDonald's, The Coca-Cola Company, The Procter & Gamble Company, and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.