A Marathon of Marketing : Torch Relay Lights a Fire in the Eyes of Olympics’ Corporate Sponsors

The cross-country torch relay begins in Los Angeles on Saturday amid an Olympic-size marketing blitz.

Corporate sponsors of the largest Olympic relay ever are using it to promote their products. They plan to hawk souvenirs and other merchandise along the 15,000-mile route to Atlanta. BMW, the “official provider of mobility” to the relay, is using the event to showcase a new luxury sedan.

At its core, the relay reflects the Olympic spirit: 5,500 torchbearers were selected because of their service to their communities, and cities along the route are planning free celebrations.

“It is awesome to be part of it,” said 16-year-old Ryan Holguin, a San Pedro High School honor student who will take part in the relay. “The Olympics are so big and worldwide.”

In Kingman, Ariz., residents are throwing a ‘50s-style pajama party at the local Boys’ Club as the torch arrives at midnight April 30.

“From Greece to Kingman,” said Eve Hanna, who is organizing the celebration in the city of 17,000 located along old U.S. Route 66. “It is very exciting to us.”

The relay has the makings of a blockbuster event. The entourage includes 10,000 torchbearers, 2,500 escort runners, 30 cars, 10 motorcycles and numerous mountain bikes. The torch will travel through 42 states by foot, boat, train, bike and even pony express, making it larger than the relay for the 1984 Los Angeles Olympics.

“We wanted to create a route that reached as many people as possible,” said Hillary Hansen, director of the relay for the Atlanta Committee for the Olympic Games. “This is the one chance many people will have in their lives to have an Olympic experience.”

It is also a chance for companies to tout their products before a huge audience. The relay is expected to draw between 30 million and 50 million spectators during its 84-day schedule.

“It gives us a platform to speak to America and give our products exposure in the markets where we do business,” said Scott Doniger, Olympic product manager for BMW.

Besides strutting its cars and motorcycles in the Olympic caravan, BMW is holding celebrations at dealerships along the route to welcome the torchbearers--and draw potential customers into its showrooms. Texaco Inc., the provider of fuel for relay vehicles, is giving customers commemorative pins and hosting celebrations at service stations near the route.

NBC will televise a 20-second report on the relay’s progress each night as a way of generating interest in its upcoming telecast of the Games.

Money and equipment from corporate sponsors are critical to the relay’s success, Olympic organizers say. The cost of staging the event is about $20 million, the bulk of which has come from Coca-Cola Co., the run’s primary sponsor.

As chief underwriter, the soft drink company reaps special benefits. Its logo is built into the official relay insignia, so licensed relay merchandise doubles as a billboard for Coke. In addition, Coke acquired the right to name 2,500 torchbearers chosen randomly in a nationwide drawing.

Trucks along the route will sell spectators everything from hats and T-shirts with the official insignia to candles that resemble Olympic torches. Items range in price from a postcard for less than $1 to a jacket for $75. Boy Scouts and Girl Scouts will sell Coke to the crowds, keeping the profits for their troops.

Coke is also throwing parties along the route, including one planned for Hollenbeck Park in Los Angeles. A sports festival there will include contests in baseball, soccer and boxing skills, with plenty of Coke available.

“The relay is a chance for us to really connect with the consumer,” said Susan McWhorter, a marketing director for Coke.

Experts say Olympic sponsors look to the relay as a way to enhance their images with consumers.

For example, “Coke may be trying to solidify an image as the all-American brand that touches your life every day,” said Marty Horn, a senior vice president at DDB Needham in Chicago who has studied Olympic sponsorships. It’s rare for the sponsorships to directly boost sales, he said.

One company planning to increase business through its sponsorship is Sara Lee Corp. The company’s Hanes and Champion units are outfitting the torchbearers, escort runners and Olympic volunteers and will be selling replica relay uniforms to spectators and in retail stores.

Jeff Bliss, president of the Sara Lee unit responsible for Olympic marketing, said the company has committed $150 million to Olympic promotions and has earned 65% of it back. “When you are spending that kind of money, you want to be out in front of the consumer,” Bliss said. Sara Lee, which is also sponsoring the Games, expects a small profit from its Olympic merchandising effort, he said.

Some companies view the torch relay as an opportunity to spread goodwill. In return for providing cellular phones, pagers and two-way radios to the caravan, Motorola Inc. received about 100 torchbearer slots that it is using to reward customers and employees. The company is planning celebrations for employees when the torch passes by two of its factories, one in Florida and another in Alabama.