Tsingtao, the other domestic beer sponsor and the largest beer brand in China by output, is using the Olympics to reach out to younger consumers. Although Tsingtao produced over 5 million kiloliters of beer last year, Sun Mingbo, its president, says the brand was "getting old" before they decided to become a sponsor of the Games in 2005. "Many people would think, 'Tsingtao is my dad's beer'," says Sun. So revitalizing the brand and building a younger image have been the company's major goals. That's why when they learned that Beijing had won the Olympics bid, Tsingtao saw it in a perfect opportunity to reposition itself.
Tsingtao's marketing campaigns have become a lot bolder since it jumped on the Olympic bandwagon. In addition to widespread TV commercials produced with the help of international consultants, it now sponsors a show on China's largest television channel, CCTV, in which it promotes cities as tourism destinations while introducing itself to these cities. It has also sponsored another show on Hunan Satellite TV, a provincial channel known for its entertainment shows, that invites common people to compete with celebrities in speed walking.
These campaigns have cost the company around 400 million yuan. But three years after initiating them, Tsingtao says its efforts have paid off. "We did the right thing in linking up with the Games," says Sun. The Olympic platform even pushed us to change the sales model. Earlier, we only sold beer, either through retailers or wholesalers. Now we invite people to experience our brand."
Tsingtao is not the only Olympic beer sponsor. Budweiser is the international sponsor in this segment while Yanjing, a Beijing-based brand, is the other Chinese beer sponsor. With people questioning the wisdom of having three sponsors in one segment, the BOCOG official in charge of marketing, Yuan Bin, says the decision was meant to serve people with various cultural backgrounds.
The domestic beer market itself is highly diversified. Although China is the largest producer, consumer and the fastest developing beer market, with an output of over 39 million kl, up by 13.8 percent year-on-year in 2007, there is no single, dominant player in the market. The three largest beer brands take only less than 40 percent of the overall market share.
Although Yanjing is less famous than Tsingtao beyond China, its market share in Beijing is as high as 80 percent. In cooperation with Beijing Tourism Group, Yanjing serves all Olympic venues, hotels, and gymnasiums. Unlike Tsingtao, which emphasizes "young" and "passion" in its ad campaigns, Yanjing's marketing focus is patriotism, which fits nicely with the fact that it is based in the capital city. "Toast for China" is its famous slogan.
Branding, however, is only one reason why enterprises are so interested in the Games as a platform. For companies specializing in the service sector, the Olympics is also an opportunity to learn from foreign companies and improve.
Air China's air hostesses are practicing the "perfect smile". Earlier media reports said the company was teaching them to smile flashing eight teeth-no more, no less - and even circulated pictures to justify it.
"It is not that simple," says Jin Hongguang, an official in charge of air attendant training and an experienced air attendant herself. "You have to smile in a way that makes passengers feel good, make them want to talk to you and accept your service."
Jin says attendants have to practice in front of the mirror every day, though she denied the media reports about eight teeth.
But better service is more than smiles and make-up. A bigger challenge for domestic brands is to fill a cultural gap when offering services to international customers. And when trying to be international, even the tiniest of things could matter.
For instance, Air China was in a quandary on how to help disabled passengers. "If an attendant helps a disabled person to get on the plane by holding his arms, the Chinese might find it a nice gesture but a foreigner might interpret any physical touch as impolite behavior," says Zhang Chunzhi, general manager of Air China's marketing department.
The company has spent 568 million yuan to purchase wheelchairs and other facilities for the disabled. "Without the Olympics, Air China's services and marketing would not have improved this fast," Zhang says.
