Beijing 2022 Winter OlympicsBy Lehan (Evangeline) Shi”The Beijing 2022 Marketing Programme allows our partners from the business community to associate themselves with the unique appeal and attractiveness of the Olympic Games. In doing so, you are helping us to bring the magic of the Olympic Games to the world and to spread the Olympic values throughout China.” ——IOC Vice-President Yu ZaiqingPart 1: Winter OlympicsHistorical DevelopmentThe first organized international competition involving winter sports was held only five years after the first modern Olympics in 1896. This competition, known as the Nordic Games, included only athletes from the Scandinavian countries. It was held quadrennially in Sweden from 1901.In 1922, despite the protests from Scandinavian countries, IOC-sanctioned International Winter Sports Week was held in Chamonix, France. Scandinavian countries altogether captured 28 of the 43 medals awarded. The huge success dropped their previous objections. The Games staged in St. Moritz, Switzerland, in 1928 were formally named as the second Winter Olympics.Winter Games were held every four years from 1928. in the same calendar year as the Summer Games. because of concerns over the increasing cost and logistic complications of the Olympics, IOC voted to alter the schedule in 1989.After the 1992 Winter Olympics in Albertville, France, and the 1994 Games in Lillehammer, Norway, the Winter and Summer Games were each held quadrennially, alternating in even-numbered years. Hosting the Olympics: The Good, The Bad, The UglyIs hosting the Olympic really a good choice for a country? Countries commonly believe that hosting the Olympics can be a strong catalyst for economic progress, especially in countries under struggling economy. Such claim assumes that the Games can serve as “a tourist attraction, a chance to catch the eye of global business leaders and a way to rally political support for valuable infrastructure projects.” The other side of the story, however, is that governments rarely make use of what they built for Olympics after the Games. The costs of hosting the Games skyrocket these years while the profit it brings is found to be exaggerated.Successful examples of Olympics boost economy include the Los Angeles Olympics and the Barcelona Olympics. The key of Los Angeles’ success is that the city used as many existing venues as possible to save costs. It also discover the potential revenue of selling Olympics TV rights. The Games makes a profit of over $200 million; 85% of Barcelona’s budget leads to key infrastructural changes that are still in use today. Despite the cost overruns, improved infrastructure helps boost Barcelona’s struggling economy in the long run.On the contrary, the 1976 Montreal Olympics is considered to be a “financial disaster.” The city faced a $1.5 billion debt for almost 30 years after hosting the Olympics. The construction costs of venues were largely over the budget and many venues were still incomplete during the Olympic Games. Part 2: The “Ice-Snow” industry in ChinaTourismChina expects that the slowing economy due to heavy industries and sagging energy of northeastern cities can be improved by “ice-snow” industry including winter-sport and tourism retorts. Winter-sport tourism has already become a selling point in Heilongjiang’s economy. In Inner Mongolia, annual growth of winter tourism revenue has surpassed 30 percent, while in Jilin it accounted for one-third of the province’s tourism revenue. During this year’s Spring Festival, the number of tourists who visited Jilin province grew by 20.02 percent year-on-year to 10.7 million. Total tourism income across the province in the period reached 9.7 billion yuan ($1.4 billion), up 28.13 percent year-on-year, according to the local statistics agency. As the 2022 Winter Olympics in Beijing and Zhangjiakou approaches, the local government plans to develop ice and snow tourism by constructing more ski resorts and snow sculpture parks, and by developing leisure travel and high-mountain extreme skiing, according to an official document released in September 2016. SportswearA state-led push to promote winter sports in China ahead of the 2022 Olympics in Beijing will help outdoor brands maintain faster sales growth in the country than the overall sportswear market, according to the China head of German group Jack Wolfskin. Executives believe that Chinese government’s ambition of engaging more people on ice and snow will create incredibly large profit. Foreign brands are estimated to control about 70 per cent of the Chinese winter wear market — worth about 20bn RMB ($2.9bn) — led by Columbia and The North Face. Overall sportswear sales in China rose 11 per cent last year to Rmb187bn ($27bn), according to consultancy Euromonitor. Part 3: Olympics in ChinaBeijing 2008 Summer Olympics Beijing successfully held the 2008 Summer Olympics. The Olympic Movement generated profits mainly from several programmes: IOC Broadcast partnerships, TOP worldwide sponsorship programme, IOC official supplier and licensing programme and ticketing programme. According to the official marketing report, about 70% of the tickets are distributed to sales in China. There were 37 stadiums used for Beijing 2008 in total. 8 of them are only temporary and 14 of them were newly constructed including the “Bird’s Nest” and the “Water Cube.” After the Games, most of the stadiums were left empty. Some of them were rebuilt and became Olympic theme park. The Olympic “green area” lies deserted and unmaintained.Beijing 2022 Winter OlympicsBeijing was selected to be the host city for the 2022 Winter Olympics at the 128th IOC Session in Kuala Lumpur, Malaysia on July 31, 2015. It makes the capital of China become the first city which hosts both a Summer and Winter Olympic. Despite a lack of natural snow in the city’s distant mountains, and protests from human rights groups, IOC believes that Beijing has already proved its ability to stage Olympic games.It is worth noting that four European candidates who originally entered the 2022 race dropped out because of the concerns about the escalating costs of hosting Olympics.On Friday 15 December, entitled “Winter Dream”, the official emblem of the Olympic and Paralympic Winter Games Beijing 2022 was unveiled by the Beijing 2022 Organising Committee (BOCOG) at a ceremony at the National Aquatics Centre in Beijing.The emblem incorporates a skater at the top, a skier at the bottom and the shape of Chinese character “?.” Part 4: Marketing Program in ChinaWinter-Sports PromotionAccording to China National Tourism Administration (CNTA), China aims to encourage 300 million people in the nation to participate in winter sports and raise tourism revenues to 7 trillion yuan (about $1 trillion) by 2020 Winter Olympic.The World Winter Sports Beijing Expo 2017 (“WWSE”) opened in Beijing on September 7th. It was initiated to promote 2022 Winter Olympic and to help achieve the goal of “engaging 300 million people on ice and snow.”Beijing 2022 Winter Olympic is expected to promote winter sports popularization and include sustainability in all areas of the planning of the games. Business PartnersIOC and Alibaba Group launch historic long-term partnership as Alibaba becomes Worldwide Olympic Partner through 2022. Alibaba, the first Chinese company to commit to Beijing 2022 winter olympic. will become the official partner of the “Cloud Services” and “E-Commerce Platform Services”, as well as a Founding Partner of the Olympic Channel. Alibaba hopes to serve a young consumer base and strengthen its brand by “connecting more young people to Olympic Movement.”China’s giant sportswear brand ANTA becomes an official partner and sponsor of the Beijing 2022 Winter Olympics and Paralympics. It has provided service for Chinese Olympic team for eight years and claims to help promote winter-sports development in China.The Beijing 2022 Organizing Committee also announced domestic partnerships with the Bank of China, Air China, YiLi Group (leading dairy group in Asia) and China Unicom (Official Telecommunication Services Partner).Harvard Business School marketing professor John Quelch says that global brands attach themselves to big-time international sporting events to “boost brand awareness, preference and sales over competitors who cannot afford the global sponsorship prices set the International Olympic Committee” (Quelch, 2008). Question:What strategies should Winter Olympics organizing committee use to achieve its marketing goal?