The Olympic experience of the product licensees who sell the
Games is much like that of the athletes who compete in them: For
the select few who qualify for the world's greatest sporting
event, it is an opportunity to reap golden rewards from the
unparalleled exposure unleashed by a medal-winning performance.
Gross revenues from merchandising this summer's Centennial
Olympic Games in Atlanta, for instance, is expected to exceed $1
billion-more than twice the total licensing revenues for the 1984
Los Angeles and 1992 Barcelona Summer Olympic Games combined. And
those numbers don't include the sales raked in by companies
that launch themselves to a new level as a result of participating
in the Games.
Even better news for small-business owners is that you don't
have to be a traditional powerhouse to break in. "The major
companies get most of the Olympic licenses, but that doesn't
mean small companies don't have the opportunity to get
in," says Karen Raugust, executive editor of The Licensing
Letter, a licensing trade journal. "If you have a distributing
niche or a unique product that no one else is making or that no one
else is making well, that's your edge. You have to convince the
licensor you are the right company and have something that sets you
apart."
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Although the merchandising arm of the Atlanta Olympics accepted
only 130 or so of the more than 10,000 licensee applications filed,
approximately a dozen small companies, including those profiled
here, demonstrated that certain je ne sais quoi. Contrary to
popular opinion, though, the Games don't automatically mean
instant success. Profiting from Olympic merchandising is a labor
more resembling a marathon than a sprint.
"The Olympics are a one-shot deal," Raugust says,
"but if the licensees are successful, they're going to
become known to other sports licensors, and that could provide them
an entree to other opportunities." That could include other
ways to tap the sports licensing industry, which Raugust says
produced $13.4 billion in sales in the United States and Canada
last year. "The Olympics also represent a chance to reach new
customers, besides the target audience, that will help a small
business in the long term."
Of course, the short term can also be quite rewarding if you
calculate your risks correctly. That includes figuring out how much
product to produce, how many different lines to use, what your
competition is likely to do, and planning how to react to any
unforeseen changes in the market that occur during your production
time.
On the plus side, there are several inherent advantages to
marketing Olympic goods you don't get from licensing other
products. First and foremost are the Olympic trademarks and
symbols.
"The Olympic marks [such as the five interlocking rings and
the torch] are some of the most recognized marks in the
world," says Darby Coker, director of communications for
marketing at the Atlanta Committee for the Olympic Games.
"They have close to a universal appeal. Demographics show
they're equally recognized by males and females, old and young,
rich and poor. All kinds of positive images come with the Olympic
marks. Products with the marks are already well-positioned in the
market; little development is necessary because people already
understand them."
The second major bonus of licensing Olympic products is the
marketing support you receive from the merchandising division of
the organizing committee. The marketing program in Atlanta,
directed by Atlanta Centennial Olympic Properties (ACOP), is a
comprehensive retail and marketing support effort that includes
assistance in distribution, promotions, public relations, mailings,
point-of-purchase materials and a score of other areas.
On the following pages, you'll meet three companies that are
reaching their Olympic goals. Each is a creative leader in its
field, and each brings something different to the table. Each also
has advice to offer other entrepreneurs interested in merchandising
future Olympics.
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