When Peter Ueberroth turned the 1984 Summer Olympics in Los Angeles into the first-ever profitable Games, he might have not have imagined that it would be regarded as an epoch-altering event with the spotlight as much on corporate sponsors as the athletes.

With less than 800 shopping days left before the Games in Beijing, the capital of the world's fastest-growing major economy, cash registers at the International Olympic Committee (IOC) and the Beijing Organizing Committee of the XXIX Olympiad (BOCOG) are ringing loudly.

Enterprises from both home and abroad are jockeying for positions on different rosters connected to the Games, in the hope of marketing their products and enhancing brand awareness through this extraordinary opportunity.

It is not only corporate titans, but also Olympic officials who have are keeping a close eye on the bottom line, especially since costs have soared in the wake of the September 11 terror attacks in the United States.

"Without the support of the business community, without its technology, expertise, people, services, products, telecommunications, its financing - the Olympic Games could not and cannot happen," says IOC President Jacques Rogge of the importance of Olympic marketing.

"Without this support, the athletes cannot compete and achieve their very best in the world's best sporting event."

Liu Jun, deputy director of BOCOG's marketing department, says prospects for the marketing programme of the Beijing 2008 Games are bright. "The sponsorship and licensing programmes are progressing far better than our expectations," Liu observes.

If every programme involved in the Olympic marketing package the most comprehensive ever created for the Games goes smoothly, BOCOG's revenue from the Games will surely exceed original estimates, Liu tells China Business Weekly in an exclusive interview.

The original forecast by the Beijing 2008 Olympic Bidding Committee was US$1,625 million when the city bid for the 2008 Summer Olympic Games five years ago. The total cost of the Games was estimated at US$1,609 million at that time but due to soaring security costs, this has increased substantially.

Sponsorship programme

On September 1, 2003, BOCOG kicked off its marketing package, which includes the sponsorship programme, the licensing programme and the ticketing programme. It has already signed up 11 Beijing 2008 Partners, eight of which are Chinese companies, with Volkswagen, adidas and Johnson & Johnson rounding out the list.

Apart from the 11 partners, the local sponsorship programme includes two tiers of support: the Beijing 2008 Sponsor and the Beijing 2008 Supplier. Nine companies have already joined the sponsor team and five have signed on as exclusive suppliers.

The supplier programme, which started in December last year, is in full swing and will last until the opening of the Games, Liu says.

He reveals that the marketing department is in contact with businesses engaged in furniture, printing and vehicle rental which will be in great demand during the Games encouraging them to join the exclusive supplier group.

While trying its best to provide a unique Olympic marketing platform for both domestic and overseas enterprises, BOCOG will limit the number of corporate sponsors to "avoid excessive commercialization of the Olympic Games," Liu emphasizes.

"Companies must have a good reputation and social image. They need to identify with, and boost, the ideals of the Olympic Movement and the concepts of the Beijing Olympic Games. In addition, their products should be environmentally friendly."

Though most Chinese companies are inexperienced in Olympic marketing compared with their Western counterparts, domestic businesses have turned out to be quick learners and are getting adept at leveraging Olympic resources to maximize returns on their investments, while also forging long-term partnerships with the Olympics in China, Liu observes.

The 11 worldwide Olympic partners (TOP), including China's Lenovo, will also provide financial, product, technical and service support for the Games. It is reported that BOCOG will pocket about US$260 million from the TOP sponsors.

Licensing programme

BOCOG will have more licensees and retail outlets for more than 20 categories of licensed products this year. In addition, two specialized companies will be chosen to provide design and marketing services for the licensed merchandise.

BOCOG has already developed more than 2,000 different products bearing the Games logo, such as T-shirts, caps, pens and bags, and around 150 licensed retail outlets have been set up across the country. By 2008, it is estimated that 6,000 to 7,000 kinds of licensed products will be showcased at more than 10,000 licensed stores nationwide.

The debut of overseas sales is planned for the second half of this year, Liu says, adding that permission must first be secured from the IOC and local national Olympic committees.

"The licensing programme is not designed for money," Liu observes, "Our aim is to promote the brand image of the Beijing Olympic Games and express the unique culture of China and Beijing, as well as offer opportunities for ordinary people involved in the Games, when they purchase the products and make their own contribution."

The licensing programme also includes Olympic stamps and coins. The State Postal Bureau has been authorized to issue a series of Olympic stamps, with themes covering sporting events, the torch relay, the opening and closing ceremonies, sports venues, and the traditional culture of China and Beijing.

About 20 million sets of stamps with the Beijing Olympic emblem and 15 million others with Olympic mascots quickly sold out just after they hit the market in November.

BOCOG and the People's Bank of China signed an agreement earlier this year on the Beijing 2008 Olympic Numismatic programme. According to the agreement, the bank will issue Olympic commemorative banknotes and coins over the next three years, including nine types of gold coins, 14 kinds of silver coins, eight kinds of base metal coins and one banknote.

Ticketing programme

BOCOG has already worked out a strategic ticketing plan for the Games, which covers pricing, sales, marketing, promotion, as well as printing and distribution.

Based on an analysis of previous sessions of the summer Games, BOCOG expects to have 7 million to 8 million tickets for public sale worldwide. "We will observe the low-price principle and provide ordinary spectators with as many inexpensive tickets as possible," Liu says.

According to the IOC, about 7.6 million tickets were available and 88 per cent sold at the 2000 Sydney Games, bringing in US$551 million. At the 2004 Athens Games, of the 5.3 million tickets, 3.8 million were sold, or 72 per cent, generating US$228 million in revenue.

It is estimated that tickets for the Beijing Games will be available in the first half of 2007, after the timetables for all events are finally determined. Chinese people can buy tickets through the Internet, call centres, agents and ticket offices at sports venues. Overseas, fans can purchase tickets through the national Olympic committees of their countries.

Financial viability

The three programmes and broadcasting rights constitute most of the revenues that BOCOG can net from the 2008 Games. The income structure of BOCOG is also almost the same as that of the IOC, according to Liu.

IOC statistics show that during the 2001-2004 cycle, including the 2002 Winter Olympic Games in Salt Lake City and the 2004 Athens Games, total revenue from Olympic marketing hit approximately US$4.2 billion. About 53 per cent came from broadcasting, 34 per cent from corporate sponsorship, 11 per cent from ticketing and 2 per cent from licensing.

IOC estimates that the broadcast revenue for the 2008 Games will top US$1.7 billion, compared to US$1.5 billion in Athens. Forty-nine per cent of the broadcast revenue will be allocated to the national Olympic organizing committee.

BOCOG's budget will be met by the IOC's contribution from the sales of broadcast rights and international sponsorship and also by its own efforts in finding commercial partners and ticket sales, Liu says.

"However, our aim is not simply to get money, but to pursue a win-win solution that can both support the Olympic movement and enhance the image of the companies involved," Liu emphasizes.

Paralympic marketing

BOCOG launched the Beijing 2008 Paralympic marketing programme on June 5, which is more focused on public welfare rather than profit, Liu says.

He points out that a successful Paralympics in Beijing will further propel society to pay more attention to disabled people and help build better facilities for them.

The participation of enterprises ensures the success of the Paralympic Games, and contribute greatly to the development of the world Paralympic Movement, Liu adds.

The Paralympic marketing programme consists of two parts, sponsorship and licensing.

Like the Olympic marketing plan, Paralympic sponsorship is divided into three tiers: the Paralympic Partner, the Paralympic Sponsor and the Paralympic Supplier. The Paralympic sponsorship will be decided in July 2008, two months before the Paralympic Games begin.

It is reported that all the Beijing Olympic Games partners and sponsors have agreed to sponsor the Paralympic Games as well, and companies could still back the Chinese Paralympic Committee or Chinese teams by buying relevant marketing rights.

The Beijing Paralympic Games will be held between September 6 and 17, 2008, 12 days after the XXIX Olympiad concludes. The Beijing Paralympic Games will have a total of 20 sports, the highest number in history.