YM778.TV Chapter 1240 - The speechless Coca Cola
Chapter 1240 – The speechless Coca Cola
China will host the 2008 Olympics Games, and many companies looking to enter the Chinese market felt this is an opportunity. For example, some Japanese electronics companies, the two cola giants, and some other companies.
But the Japanese electronics companies and the two Cola giants are not close with the Chinese government. They felt they should look for the International Olympics Committee instead of the Chinese government. After all, the International Olympics Committee decides the ‘TOP’ sponsors and inserts their advertisements into the broadcast.
Companies like Panasonic, Coca-Cola, and VISA, had sponsored many Olympics Games in the past and felt it’s worthwhile. For example, the 2000 Sydney Games had increased their product sales by a lot.
Panasonic had risen quickly in the past because they had managed to enter the Chinese market. As years passed, their market share in China fell, and they had been kicked out of the Chinese market.
China is a vast market, and it is the biggest emerging market in the world. If Panasonic can penetrate the Chinese market again, their profits will shoot up.
Many people in China have not heard of VISA, and they had been eyeing the Chinese market a long time ago. VISA is a credit card, and it will be more convenient for its customers if more countries adopt them.
Coca-cola has always wanted to enter the Chinese market. Although they were not forced out from China, their sales are not improving. The Chinese Beverage Alliance had been targeting them.
The best media advertisement timeslots had been taken away. All the celebrities they wanted to sign as their endorser had been snatched away. Even the bottling factories they wanted to acquire were acquired by others.
Coca-cola is the beverage market leader in many countries around the world. But they cannot even enter the top five beverage brands in China!
What made them speechless is much Chinese thought Lehaha’s Refreshing Cola is the authentic Cola, and Coca-Cola is copying them. Coca-Cola is the one who invented Cola!
The secret recipe of Coca-Cola is priceless!
This is a good opportunity for Coca-Cola to tell the Chinese that Lehaha is the imposter. They are the authentic ones!
......
“What? Are you sure? How come the TOP sponsor fees increase by so much? Didn’t you say the sponsorship is at least 5 million USD?” Coca-Cola’s Marketing Vice President shouted.
Is this a joke? This is not the first time Coca-Cola is sponsoring the Olympics Games. They had always been the Olympics Games sponsor and are the longest sponsor in history. They want to maintain and continue this record.
No one is clearer about the Olympics Games sponsorship than them. Even the US Olympics Games’ sponsorship is not so expensive. How come a developing country like China’s sponsorship is so high?!
“Jim, don’t get angry. We are not targeting Coca-Cola. Our sponsorship fees for the 2004 games can be based on what was discussed. But this price is not enough for the 2008 games!”
“Why? We know the sponsorship fees will increase every year, and we have included it in our sponsors, which is reasonable. But you all are the ones who increased the sponsorship by a lot. How can you all do that? Are you saying that China will become a developed nation by 2008?! Even if it is a developed nation, the sponsorship should not be so ridiculous!” Jim shouted angrily.
Jim had wanted to discuss with the International Olympics Committee to enter the TOP sponsorship of the 2008 games. This is considered advance payment, but Coca-Cola will not suffer any losses, and the price will increase as it gets near to 2008.
Of course, China will get this sum of money earlier and can use it on the infrastructure. Coca-Cola is familiar with this procedure.
Sponsoring early can save lots of money for them, and they can advertise the Olympics logo earlier. This will help in increasing their sales in the host nation.
Coca-Cola can introduce memorabilia bottles to increase their profits, which will last even after the games have ended.
But this time, the International Olympics Committee is asking for a lot. Is this what the Chinese Organizing Committee wanted?
“Jim. I will show you a list, and you will understand. These are the official sponsors for the 2008 games. Look at how much they sponsored.
Jim’s eyes nearly popped out of his sockets! How is this possible!?
The top ten sponsors had sponsored more than 200 million USD each, and the top sponsor had sponsored 500 million USD! Why are the sponsorships so high?
Coca-Cola had sponsored less than 50 million USD for the 2004 Olympics Games and thought 60 million USD is enough to be one of the TOP sponsors in the 2008 games.
But the International Olympics Committee told them that they need at least 200 million USD.
How can the TOP sponsors’ sponsorship be lower than the organizing committee’s sponsors?
But 200 million USD is too much! The highest amount Coca-Cola is willing to spend is 80 million USD. This is only to be qualified as a TOP sponsor and did not include the advertising costs.
If Coca-Cola needs to sponsor 200 million USD, their total spending for the 2008 Games will be more than 300 million USD. They might not recover this cost.
“Did anyone sign the contract?” Jim asked.
“Not yet. But more than a dozen had come to ask about this, and all of them needs to consider. My suggestion for you is to consider this too. After all, you all had sponsored so many Games, and it will be a pity if you miss out on the 2008 Games.”
Jim cursed in his heart. Of course, you want us to agree, as your income will increase a lot. But this is a huge amount, and he dare not make the decisions.
Damn! Where did those Chinese sponsors come from?!
Wind and Rain Electronics, Wind and Rain Home Appliances, Aiwa Electronics, Aiwa Home Appliances, Tai Hui Supermarket Group, Aiwa Little Tyrant, Tai Hua Consultancy, Lehaha Group, Wind and Rain Consulting, and Wind and Rain Holdings.
When Jim saw Wind and Rain Holdings and Tai Hua Holdings on the list, he knows what happened. These are all Feng Yu’s companies.
This Feng Yu is creating trouble for everyone. You sponsored so much money for this Game. How are you going to earn it back? Also, why do the rest of your shareholders agree to these sponsorships?
Feng Yu had injected dollar for dollar into the companies for their sponsorships. This will be promoting the companies, and the other shareholders can benefit from it. Of course, they will not reject. After all, this will be written into the Olympics Games’ sponsorship history, and they will be remembered forever.
Also, all of them are Chinese and will spare no effort to contribute to China. These shareholders are all wealthy and don’t mind suffering some losses.
Jim left the International Olympics Committee’s office. How is he going to answer the company? He had guaranteed that Coca-Cola will enter the TOP sponsors before he comes, but everything changed because of Feng Yu! What is he up to?!