Samsung top plan, which has been postponed for nin

2022-10-23
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Samsung top plan, which has been postponed for nine years, has missed the opportunity of free Olympic top; Samsung's brand value soared four times in ten years, Sales soared seven times

there is such a record in Samsung's official Olympic history: "if the sponsorship of the Seoul Olympic Games is just a small test, it has not led Samsung to have the idea of long-term sports marketing on the road. Then nine years later, in 1997, Samsung Electronics, which decided to enter the Olympic top sponsor against strong resistance, has embraced the belief of breaking the boat and fighting against the enemy"

but Samsung's top plan was postponed for nine years just because of a moment of hesitation

missed the free top

in 1984, the International Olympic Committee organized the negotiation and bidding for the television broadcasting rights of the Seoul Olympic Games in Lausanne four years later

a large South Korean delegation, led by IOC vice president Jin Yunlong, entered the IOC headquarters. Their consultant was Barry Frank of twi company under the international management group. It was this person who made Jin Yunlong believe that the TV broadcasting rights in the U.S. market alone could be sold for $1billion - under such optimistic expectations, the representatives of the Seoul Olympic Organizing Committee even thought it was unnecessary to waste too much time dealing with sponsors

but the development of the situation is unexpected. Professional analysts from major U.S. television institutions have keenly found that an Olympic Games held in Asia will definitely miss the prime time of U.S. television programs in terms of viewing time

at this juncture, ABC was forced to spend $39million to win the bid for the broadcasting rights of the Calgary Winter Olympic Games because it had to obey the new rules of the International Olympic Committee. This aroused the collective anger of American television institutions, and then they all treated the 1988 Seoul Olympic Games with a cold attitude. Even the largest broadcaster, ABC, offered only $225million. In the history of the Olympic Games, this is also the only time that the TV broadcasting right of the summer Olympic Games is cheaper than that of the last winter Olympic Games

the embarrassment of the TV broadcasting right of the Seoul Olympic Games was finally resolved in a subtle way, and a practical problem before the International Olympic Committee and the Seoul organizing committee is, where does the money come from

a few years later, Samaranch, then president of the International Olympic Committee, began to promote the top plan, the greatest initiative of his tenure. But this fledgling, chaotic plan itself is hard to trust

Fred Laoman, President of swatch from Switzerland, even said bluntly when facing Olympic Committee officials at that time: "you pay us to provide Olympic accounting services. We can't pay you!"

most enterprises have such an attitude, which makes the IOC a little confused - in order to successfully implement the top plan, they began to negotiate with sponsors, and even offered preferential conditions for some companies to upgrade to top partners for free. However, the companies that received these invitations seemed to have little interest in the plan

at that time, Samsung, like most enterprises, easily handed over this readily available free top opportunity under the excuse of a simple "not ready to take advantage of global marketing opportunities"

Samsung is really not ready. At that time, Samsung could only be among the international third tier brands. As a local sponsor, it just wanted to promote its brand to all Koreans through the Olympic Games held at home. And try to make more foreigners who come to South Korea because of the Olympic Games remember, or even just take a look at the brand Samsung through some ways that don't cause trouble. As for top partners, this plan was not favored by many world-class companies at that time. Naturally, Samsung is far away from the mechanical property testing of metal castings and forgings

this may be the only mistake Samsung has made in the history of Olympic sponsorship. They don't know that it will take nine years for the next opportunity to appear

embarrassing Seoul Olympic Games

Seoul, 1988. As one of the pillar enterprises in South Korea, Samsung's large advertising posters can be seen everywhere in the city. Under the flying five ring flag, the eyes of the world are focused here, a prosperous scene of singing and dancing. Samsung originally thought it could make its brand known to the world with the help of the Olympic Games at home

but in the past, it didn't work out. Until now, Samsung officials have not disclosed the relevant specific marketing results after sponsoring the Seoul Olympic Games. The only known financial data is that Samsung achieved a 27% increase in revenue that year - for the IT industry, which was in the ascendant at that time, it was obvious that such achievements were not so outstanding

however, after the Seoul Olympic Games, the international popularity of Samsung brand, which is also known, began to increase and developed rapidly. Samsung makes great efforts to open up the international market, and even there are as many as 55 overseas advertising agencies, but it still falls into a vicious circle of misery - without strong brand support, consumers are unwilling to try, so the products are unsalable and can only be sold off, resulting in the inability to collect funds to invest in publicity and brand building

Samsung Electronics is far from as powerful as it is today. The so-called internationalization is only at the stage of shipping products abroad for cheap sales

"let the world know that we are not a third rate brand! We can provide first-class products!" In May, 1996, Li Jianxi said angrily to the vice presidents of his rivals in the office, "we must come up with a plan to improve the third rate image of Samsung products to the first class!"

on this road, there seems to be no better choice than the Olympic Games. So in September, 1997, Samsung established its own brand strategy and clearly put forward the plan to enter the top sponsor of the Olympic Games. It is precisely because of the frequent contact with the IOC after the establishment of this plan that Samsung became the first mobile provider notified by the IOC after Motorola changed its mind

three days to finalize the top sponsorship

"we still have a small problem about this transaction." Late one Friday night in 1997, the senior vice president of Motorola's mobile communications department said to Michael Payne, who was then the marketing director of the International Olympic Committee, "I promise, it's just a small problem."

at that time, the International Olympic Committee had just concluded a negotiation with Motorola that lasted for several months, and the two sides finally reached a complete agreement after a tired dispute. According to the agreement, which should have been signed in a few weeks, Motorola will upgrade from an ordinary partner of the Olympic Games to a top Zan hydraulic testing machine, which should not have oil leakage and leakage. Of course, they have to pay a little more for it. Motorola's "small problem" is that they are very willing to continue their cooperation, but are only willing to pay half of the agreed price

"we will consider your suggestions and contact you if interested." This is the last promise Motorola heard from the International Olympic Committee. Of course, Motorola has not received a call back from the International Olympic Committee

for Samsung, this may become the most memorable and valuable one. Because Payne immediately informed Samsung after hanging up and let it know clearly what opportunities it would face

"Samsung has only three days to come to Lausanne for an interview. If they can finalize the deal here, they can become top." Samaranch said to Payne

Samsung has been looking forward to this opportunity for a long time and is well prepared. Although the consumer markets in South Korea and Asia were greatly affected by the financial storm at that time, for Samsung, which has missed the free top opportunity nine years ago, what it needs at this time is a boost to make itself "hit by spring thunder" - if it misses this opportunity again, it will pay a higher price

"at that time, Samsung was also in serious debt and its financial situation was very bad." Quan Guixian, the global vice president of Samsung Electronics, has fresh memories of the financial crisis, but Samsung finally did not choose to give up. "Almost all large companies in South Korea are cutting budgets, and Samsung has become the only company to increase its marketing budget."

after three consecutive days of 24-hour negotiations, the efficiency of the Korean people finally moved the International Olympic Committee, and the two sides reached an agreement. A few weeks later, Samaranch flew to Seoul to sign a contract with Samsung President Lee Kun hee and announced to the world that Samsung had become the new top sponsor of the Olympic Games

ten years have passed. Samsung soared fourfold in the corporate brand value ranking of brand consulting firm Interbrand, from $3.1 billion in 1999 to $16.2 billion in 2006. According to strategy analytics, a market research organization, Samsung's global mobile market share rose from 5.0% in 1999 to 11.6% in 2006, and its sales soared seven times, from 16.65 million to 114 million. (end)

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