Max Zeledon

Coca Cola: Olympic Sponsorship is a Profitable Tradition

Shaun:

You're research is very specific to China and it will be interesting to visit the numbers when Coca Cola releases earnings at the end of the year. I'm willing to bet sales will go up as they did last. But I'm also addressing the global market.

Billions of people watch the Olympics and that's a historically proven platform for Coca Cola in terms of brand exposure. The exposure is huge around the word. I'm not just talking about China (a tea drinking nation by the way where Coca Cola sells other products besides Coke to please local taste). The Olympics and World Cup soccer are the two most important international sporting events and brand linkage to these events increase brand awareness.

While there was a great deal of controversy over Coca Cola's sponsorship of the Beijing Olympics there is no evidence to suggest this has hurt sales. In fact, Coca Cola sales are up across the board despite the backing of the controversial Olympic torch tour. And the public has known about its sponsorship for years. The balance is in good shape.

As I a researcher I've learned that what people say does not always reflect what they do. As for Lenovo and others brands you mention in your Forbes article I suspect their problems are beyond the sponsorship of the Olympic games. They have an image problem that has nothing to do with the Olympics.

Consider this as well: Coca-Cola, Visa and McDonald's are long-term sponsors of the Olympic Games; if Beijing fall short of commercial expectations they will move on to London 2012. People are not going to link these brands to Beijing beyond this summer.

There is also no consistent research showing consumers make buying decisions based on their political views--in developing markets it's about price, feeling good, and value. I don't think Coke drinkers in Hungary or Costa Rica will boycott Coca Cola because they are sponsoring the Beijing Olympics. But I'm willing to bet they will be drinking a Coca Cola beverage while they watch the 100m dash.
That's why this political boycott talk is nonsense.