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SHOOTING FOR GOLD Sponsors look to cash in on Olympics

These companies are making it possible for Szymczak and nearly 200 of his fellow countrymen to go to this year's Olympics by donating money, equipment and other products.
In return, the sponsors are looking to cash in on Olympic hype to build brand images and boost sales.
For the Olympic team, this is a fair trade. If it weren't for the sponsors, many like Szymczak might not be going to this year's games.
In communist times, Olympic athletes enjoyed the full support of the government. Since the 1990s, however, the national sports budget has been cut drastically and the government has been forced to look to private sources for funding.
Sponsors now provide 20% of Polish athletes' Olympic participation costs, estimated at $4 million for the Atlanta games.
"We don't have the amount of money we are dreaming about," said Andrzej Szalewicz, president of the Polish Olympic Committee, responsible for covering athletes' costs and travel expenses. The committee three years ago established the Polish Olympic Foundation to find companies willing to sponsor Poland's team.
In return, sponsors can use the Olympic symbol in their advertising and products. "We were looking for companies that treat sport as one of their marketing tools," said Zbigniew Wieckowski, vice president of the Polish Olympic Foundation.
Today, Olympic sponsorship has turned into a competitive playing field in its own right with companies playing their own marketing games aimed at capitalizing on Polish pride and patriotism.
Reebok Poland is hoping for nothing less than gold at this year's Olympic games - whether Polish athletes bring back medals or not.
A relative latecomer to the Polish athletic shoe market - Reebok only established a subsidiary here last year - the company hopes to use its sponsorship of the Polish Olympic team as its entrée to the market here. Not only is Reebok outfitting most Polish Olympians with shoes and gear to compete in, the company also made the snazzy red and white warm-up suits athletes will don during opening and closing ceremonies. The athletes will also wear the suits if they win a medal and have the chance to see the Polish flag raised in Atlanta.
Reebok is pumping most of its 1996 marketing resources into the Olympics.
"It's our budget," said Artur Czerwonogrodzki, Reebok Poland's marketing manager. "Next year we will have the cream" of the market.
Reebok is among more than a dozen private companies participating in Poland's first-ever Olympic sponsorship program.
While private companies could always make donations to the Polish Olympic team, it was not until 1993 that they could sign up as official sponsors.
Companies can become an official sponsor by donating money or equipment to the Polish Olympic Foundation. Most forked over cash, which was used to cover travel expenses, while others handed out equipment and clothing.
In return for this largesse, sponsors receive the distinction of using the Polish Olympic logo - created in 1992 - in their promotional materials and products.

Olympic showroom

Reebok donated zl. 600,000 ($222,415) worth of clothing for athletes to wear around the Olympic Village in Atlanta, U.S.A., during the games, which will begin in late July.
Goodies for each of Poland's nearly 200 Olympic athletes include a set of three warm-up suits, three T-shirts, three polo shirts, three tank tops, a set of sneakers and sandals, sweat- and wrist-bands and swim wear. This is all in addition to the red and white warm-up suits.
Through its association with the Polish Olympic Committee, Reebok has also signed contracts with 12 separate national sports federations to supply all clothing and equipment to be used during competitions.
This was a particular coup for the company as most of the federations had previously been working with rival Adidas.
"Adidas may provide some federations with some equipment, but there's not much left," Czerwonogrodzki said. "More than 80% of our athletes in Atlanta will be wearing Reebok."
But being present in Atlanta is only one part of the plan. Reebok is also launching a multimedia advertising blitz using the Polish Olympic logo back home. In the press, Reebok is starting with sports trade publications such as the daily Przeglˆd Sportowy and will move to more mainstream publications as the games approach.
Reebok also plans to show its name about 10 times a day on Telewizja Polska (TVP), which has the exclusive right to broadcast the games on both of its channels. To cap it off, Reebok will also use billboards, sponsorship of TVP's Olympic studio and regular commercials. Reebok would not reveal its budget for the ad blitz.
"We would like to underline as many times as possible that we provided the Olympic committee with stuff and that we really play well," said Czerwonogrodzki, whose business card even touts the company's Olympic sponsorship.
Getting the company's name out to the Polish public will coincide with the debut of the UK-based concern's new apparel line.
Up until now the company has sold relatively little clothing in Poland, but during and after the games Reebok plans to sell Olympic T-shirts and replicas of the warm-up suits worn by the athletes in addition to regular sports clothing.
Next year the company hopes to get 20% - 30% of revenues from apparel sales. In 1995, its first year of business in Poland, Reebok had sales of $5.5 million.
When the Olympic torch is extinguished in Atlanta and the hoopla has died down, Reebok expects to continue seeing sales from its sponsorship. The company hopes the sports federations will place sales orders. And Reebok in turn would use the association in its promotions.

Marketing games

But Reebok certainly will not be alone in using the Olympic hype to drum up sales and name recognition. Upon arrival in Atlanta, Poland's athletes will also receive Kodak cameras and LOT T-shirts. Should they take a nasty spill, they'll be covered by a special sports insurance policy from Warta SA.
Even on their way to the games, the athletes will receive a sponsor-driven donation. LOT Polish Airlines sold a discounted charter flight from Warsaw to Atlanta to the Polish Olympic Foundation and is also offering discounts on regular flights to Atlanta on its own and other carriers. LOT marketing executives declined to reveal the value of the discounts.
Foto-World, which is 40%-owned by Eastman Kodak, donated $850,000 worth of medical diagnostic machines to be used at the Olympics and at the Warsaw sports polyclinic. It will also provide athletes with disposable cameras, T-shirts and caps.
For all this, the companies gain access to the Polish Olympic symbol - a valuable marketing tool. Almost everyone agrees that the symbol inspires both patriotism and pride. Being connected with such feelings increases a company's credibility in the market.
"It gives added value to the brand image," said Marian Gromadzki, director of Foto-World. "Polish people are very sympathetic to the Polish idea."
To reinforce this association, Foto-World plans to air commercials for the next month on TVP, PolSat and Canal Plus showing footage from the 1992 Barcelona games. Like many companies, Foto-World is also selling special products associated with the Olympics - films with the Polish Olympic sticker, which can be collected and redeemed for a photo album or used to enter a contest for a trip to Atlanta or on a Kenyan safari.
The games also provide an excellent marketing opportunity for companies that are not allowed to advertise. Sponsorship circumvents this ban.
Lech Brewery, for example, forbidden by law to advertise, is sponsoring the Polish team this year and is using the Olympic logo on beer bottles and billboards.
"Sponsoring in general gives a brand power and creates a lot of awareness," said Per Akestad, deputy managing director of Bates Saatchi & Saatchi and a former member of the Danish national fencing team. "If you sponsor an event or people, you are getting some of their credibility."
Warta insurance company, another sponsor, hopes the logo will help build trust among consumers.
"We want to create an image that we are a solid company not only thinking about money but also some other things people consider important like sports, culture and science," said Zbigniew Augustynowicz, Warta's marketing director.
Capitalizing on this, Warta this summer will launch a billboard campaign for a sports insurance product that will declare, "The Polish Olympic team trusted us, so trust us too."
Other companies hope to use the Olympic logo to change their image, such as chocolate maker Wedel, which is using its association to promote a younger look, said marketing manager Marek Matysek.

Marathon run

As much as sponsors hope to boost sales during the Olympics, the real prize will come much later. Most are hoping the games will prove to be a stepping stone to a closer association with the sports world. And some, such as Reebok and Foto-World, said they are considering signing up as sponsors for the 1998 Winter Games.
Robert Ćliwinski, the head of the Polish archery association, which signed an agreement with Reebok for the 1996 games, said, "We hope we will prolong the cooperation after the Olympics."
Some sponsors will also be scouting for any Polish stars in this year's games who may be potential spokespeople.
"We are watching very closely," said Foto-World's Gromadzki.
-Marcin Bokszczanin
contributed to this article.

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