Olympic History

Ancient Olympics
The first Ancient Olympic Games can be traced back to 776 BC. They were developed from a historical sports competition and were held in Olympia every four years. In 393 AD, the Olympic Games were banned by the Christian Roman Emperor Theodosius I because of their pagan influences. From 1875 to 1880, the German archeologist Ernst Curtius, with the funding of the German government, began excavating the Greek site of Olympia which received attention from all of Europe. In 1894, Baron Pierre de Coubertin, a French educator, established the modern Olympic Games.

The Origin of Modern Olympics
Baron Pierre de Coubertin believed that through sports, youngsters could be taught the value of friendship, unity and fair play and the spirit of friendly competition among people would inspire affection and brotherhood feelings among human kind. Coubertin founded the International Olympic Committee (IOC) on June 23, 1894. The purpose of the ICO was to organize the Olympic Games and to build a more beautiful world through sports.

The Olympic organizations and related institutions includes the International Olympic Games Committee (IOC), the Organizing Committee of Olympic Games (OCOGs), the National Olympic Committees (NOCs), the International Sports Federations (IFs), as well many other national sports associations and clubs.

The responsibility of the IOC is to choose a city to host the Olympic Games after reviewing the applicants. The IOC monitors the preparations of the Olympic Games through a special coordination committee who works closely with the hosting city. The IOC also provides capital for the construction of Olympic stadiums and gymnasiums.

A Brief History of Modern Olympic Games
(1896 - 1916) - The first Olympic Games were held successfully in Athens in 1896. The three Olympic Games taking place from 1900-1908 had many problems relating to the organization and insurance. The games in 1912 in Stockholm were again successful. In 1916 the Olympic Games were canceled due to the First World War.

(1920 - 1936) - During this period the Olympic Games achieved progress in both internationalization and scale. The Olympic flame was introduced which is lit in Olympia and brought to the host city by runners carrying a torch in a relay. This symbolic significance of this tradition has improved the influence and position of the Olympic Games. In 1936, Germany held an unprecedented Olympic Games.

(1940 - 1944) - The Olympic Games were canceled due to World War II.

(1948 – 1980) - After the 12 year hiatus caused by World War II, London hosted the Olympic Games in 1948 showing vitality and international cooperation. In the 1960s, the emergence of the TV greatly influenced the Olympic Games. The most tragic event in Olympic history took place during the Munich Olympic Games held in 1972 when a group of Islamic terrorists brutally killed 11 Israel sportsmen. The Montreal Olympic Games held in 1976 incurred a huge loss of 100 million dollars. The Moscow Olympic Games held in 1980 were rejected by the US and some other countries. In the late of 1970s, the Olympic Games had a low point with only one city applying to be the host.

(1984 -2000) - During this period, the Olympic campaign evolved into a successful international sports organization from being close to bankruptcy. The sponsorship plan of the 1984 Los Angeles Olympic Games was successful with 230 million US dollars being raised. This paved the road for the international sponsorship plan (TOP) within the IOC which improved sponsorship and broadcasting. In August 1994, the 12th session of the Olympic Congress was held in Paris. This was 100 years after the rebirth of the Olympics and was named the Congress of Unity.

The Sponsorship History of Olympic Games:

1896 in Athens - The organizing committee of the first Olympic Games faced serious economic difficulties, and the wealthy Greek businessman, George Averoff, donated large amounts of capital to rebuild the Olympic stadium. Some companies such as Kodak also donated funds in exchange for advertising. The next three Olympic Games, Paris in 1900, Saint Louis in 1904 and London in 1908 were considered part of the World Exhibition in order to promote international trade.

1912 in Stockholm - Approximately 10 companies obtained the marketing rights to photograph and sell souvenirs during these games. Also a lottery took place and 41% of its income was from the sale of tickets and game schedules.

1920 in Antwerp - The organizing committee attempted to integrate the Olympics with the international flower fair, but they did not succeed. Sales on photographs and filming also were not very successful so the government issued a set of 3 stamps. Although the games schedule was filled with various advertisements, sponsorship was still lacking.

1924 in Paris - The government and the city of Paris covered its 50% outlay. The organizing committee endorsed the formal rights to produce and sell film of the games to a commercial company and operating rights to various circles of society. Advertising signboards could be seen clearly in and around the sports field, which was the only time advertisements were allowed in the sports fields of the Olympic Games.

1928 in Amsterdam - The funds raised from donations, selling tickets and licensing rights on commodities related to the Olympic Games, compensated for 60% of its total expense. Because there were a high number of sponsors, the organizing committee made an unprecedented decision – to register trademarks of the Olympic Games and obtain their copyrights. The licensing sales rights were expanded to the dietary industry, and catering spots were allowed to open in the sports fields. Since then Coca Cola company began its Olympic Games marketing which has been lasted over 70 years. The IOC instructed that no advertising would be allowed to appear on the sports ground and in the buildings.

1932 in Lake Placid - The organizing committee allowed merchants to exchange services of commercial companies by using the Lake Placid winter games as advertisements. The Olympic Games advertising appeared on shop windows of many emporiums along America’s west coast, and many national advertising merchants carried out their winter advertising campaign. In the same year, the sports grounds of the Los Angeles Olympic Games were expanded by private enterprise. In the formal report, the organizing committee stated that California handled the Olympic Games in a vigorous and money-orientated way. Mr. Zack Farmer, chairman of the organizing committee stated that the Olympic Games of 1932 were successful as they were not only a splendid Olympic Games, but a profit was made from it. After the games, the houses of the athletes in the Olympic village were dismantled and sold to a construction company.

1950 in Helsinky - For the first time, there was an attempt to make an international marketing plan with 18 businesses from 11 countries providing commodities and services ranging from athletes’ dietary needs to the flowers for the prize winner.

1956 in Melbourne - Because of the remote location, the sale of operating rights only covered 4% of the total expenses.

1960 in Rome - The providers were expanded to include 46 national and international companies, as well as a number of smaller dealers selling perfume, chocolate, toothpaste, and maps of Olympic stadiums and gymnasiums.

1964 in Tokyo - The organizing committee founded its own marketing organization called The Foundation for the Promotion of the Olympic Games. It conducted commercials activities and the number of marketing company was increased to 250, which raised 16.9 million US dollars. The Olympia brand cigar earned over 1 million US dollars for the organizing committee.

1968 in Mexico City - Excluding the TV broadcast, the organizing committee raised funds from various channels including revenues from licenses, rights to exclusive operations, and the sale of goods and services which totaled 60% of its total income. Over 49% of the operating expenses were from commercial development (about 20 million US dollars) which accounted for 11% of the total expenses of the Olympic Games.

1972 in Munich - Private advertisers marketed and sold licenses for formal trademarks. The Olympic mascot was developed and private companies were awarded licenses to use the image to market their products. The IOC and organizing committee jointly protected the commercial development of the Olympic trademarks. Starting in 1966, some companies were illegally making Olympic medals.

1976 in Montreal - The organizing committee raised funds by entering into contracts with 628 companies in 47 countries. 42 of the companies sponsored 50,000 Canadian dollars each. However, the Games suffered a loss of nearly 1 billion US dollars.

1980 in Moscow - The organizing committee signed contracts with 19 companies who marketed in 40 countries. They released 6,972 pieces of licenses of Olympic products within 4 years, and it ultimately lead to manufacturing 17,500 varieties of merchandise. Additionally, 1,633 types of Olympic goods from merchants in 17 countries were permitted to be sold at the Olympic Games.

1984 in Los Angeles – This was the turning point of Olympic marketing. The marketing was completely organized by private organizations for the first time and an unprecedented profit of 222 million US dollars was produced.

In 1985, the IOC began to carry out the first term (1985 – 1988) Olympic marketing plan. 154 of 167 (92%) national Olympic Committees participated in it. The project achieved 95 million US dollars.

In 1988, the IOC began conducting the second term (1988 - 1992) Olympic marketing plan. The plan profited 175 million US dollars, and 169 of 172 (98%) national Olympic Committees participated in it.

In 1992, the IOC began conducting the third term (1992 - 98) Olympic marketing plan. It further clarified the right of each national Olympic Committee in their marketing, made specific stipulations on the conditions surrounding advertising, and started a more complex marketing mix. The number of the world wide marketing partners was reduced to 11 from 12, and each of them sponsored between 25 to 40 million US dollars.

1994 in Lillehammer - The income from sales of TV broadcasting and marketing exceeded 500 million US dollars, which created a historic record in the winter Olympic Games. The revenue from marketing licenses was also very high.

1996 in Atlanta - The Olympic Games completely depended on social fund raising and the major sources were TV copyright, commerce and ticket income. In total, 11 million tickets were sold which exceeded the total ticket income of Los Angeles in 1984 and Barcelona in 1992, accounting 36% of the total revenue.

In 1997, the IOC began conducting the fourth term (1997 - 2000) Olympic marketing plan. On December 2nd of the same year, the IOC and the World Federation of the Sporting Goods Industry signed an agreement on Olympic sales rules to strengthen the close cooperation between the two organizations. The rules include specific indexes when members of the World Federation of the Sporting Goods Industry are involved in activities related to Olympics.

1998 in Nagano – The marketing of these winter games earned revenue of 50 million US dollars which was 5 times more than expected.

On December 15, 1998, the IOC signed an agreement with the International Sports and Recreation Equipment Association to start a combined work team to develop cooperating plans.

Recruitment Background

On July 13, 2001, Beijing was awarded the right to hold the Olympic Games of 2008. The success of being chosen as the host city of the 2008 Olympic Games fully shows the strong national power and fulfills the solid will of the Chinese people.
Air China sent an airplane to the application delegation in Moscow and a historic moment was witnessed. Air China was successful in becoming the flagship carrier of the 2008 Olympic Games in Beijing.

The Beijing Olympic Games of 2008 will be a unique Olympic Games with the largest scale in history. The government will invest 34 billion US dollars in fundamental facilities such as match gymnasiums and fields, communications and traffic. It is predicted that the Beijing Olympic Games will earn over 3 billion US dollars being the most profitable Olympic Games in Olympic history.

To safely ensure the funding for the Beijing Olympic Games in 2008, on September 1, 2003, the Beijing Olympic Organizing Committee started marketing a development plan for the games.

As the backbone of China’s national enterprises and a representative of China civil aviation, Air China has the responsibility and duty to make contributions to the Olympic Games. In July 1984, carrying the first Olympic teams of new China, an Air China flight flew to Los Angeles. From this moment on, Air China became attached to the Olympics. During the past 20 years, Air China flew Chinese Olympic athletes to the games where there were many victories. The staff at Air China feels deeply connected to the Olympic Games and is honored to participate as the flagship carrier of the 2008 Beijing Olympic Games.

As host of the Olympic Games of 2008, China has developed their best marketing platform. The large profits incurred by sponsoring enterprises cannot be compared to any other events. As said by Michael Payne, the majordomo of market development for IOC, at the Beijing Olympic Organizing Committee’s starting conference for market development, “enterprises will achieve great profit in brand improvement, increased income and staff motivation.”

The long history, international spirit and the pursuit of excellence has made the Olympic Games one of the most compelling events in the world. With continued successful market development, the Olympic trademark has become one of the most attractive brands in the world. This is especially true in China where the Olympic Games have a powerful influence. By sponsoring the Olympics, China’s enterprises can combine their own brands with the Olympic brands which will greatly promote the brand value.

Course of Recruitment

In April 2003, Air China founded The Work Committee of Air China on Applying Beijing Olympic Game Copartner (Hereinafter called “applying committee”). President Li personally handed the application to the Beijing Olympic Organizing Committee and expressed Air China’s strong desire to be a copartner of Beijing Olympic Games.

In Aug. 2003, the applying committee engaged an Olympic expert team to be a consultant agency

Along with the start of the Beijing Olympic Organizing Committee’s marketing development on September 1, 2003, Air China’s work as the Olympic Games’ copartner started on September 2, 2003.

In January of 2004, a preliminary draft of negotiation analysis established the frame for Air China’s strategy.

On April 16, 2004, Air China received the invitation letter of the Beijing Olympic Organizing Commitment on recruitment for their participation of the Olympic Aviation Passenger transport copartner.

On the afternoon of April 22, 2004, Air China handed the Beijing Olympic Organizing Committee the “Letter of Interest” and the “Promising Letter of Secrecy”, which entered Air China’s involvement into the key stage.

On May 20, 2004, the Beijing Olympic Organizing Committee released “Letter of Recruitment” to companies competing for copartner including Air China, Southern Airlines, Eastern Airlines and Hainan Airlines. In the second half of May, the applying committee appointed a lawyer of Olympic experience as the legal consultant of Air China to participate in the recruitment document preparation and negotiation with the Beijing Olympic Committee.

The applying committee completed the preparation of the “recruitment document” on June 18, 2004 on schedule. President Li Jiaxiang personally handed the “Recruitment Document” and was praised by leaders of the Olympic Organizing Committee.

By the appraisal of the Beijing Olympic Organizing Committee, Air China won the copartner qualification of the Beijing Olympic Games with “powerful strength, painstaking preparation and rational cost”, and a signing ceremony was held in China’s Grand Hotel on Aug. 4, 2004 with Beijing Olympic Organizing Committee.