July 28, 2010: Procter & Gamble confirmed that it has signed a ten-year deal to become a top tier global marketing partner of the International Olympic Committee. The alliance includes the next five Olympic Games and numerous events also under the auspices of the IOC.
Financial terms were not disclosed. However, industry analysts said that companies pay upward of $100 million for a four-year top tier IOC deal.
P&G is the second company to align with the IOC this month. Dow Chemical also signed a ten-year deal to become a global partner. The IOC now has 11 global partners entering the two-year countdown to the next Olympics: the 2012 Summer Games in London.
Acer, McDonald's and GE are currently signed through 2012. Atos Origin, Panasonic and Samsung are signed through the 2014 Winter Games in Sochi and the 2016 Summer Games in Rio de Janeiro. Dow and P&G join Coca-Cola, Omega and Visa as companies signed up through through the 2018 Winter Olympics and the 2020 Summer Games, the latter two of which do not as yet have host cities.
The signing of Dow and P&G help the IOC to replace several companies that opted not to renew global deals that expired after the 2008 Summer Olympics in Beijing, including Johnson & Johnson, Lenovo, Kodak and ManuLife.
P&G, which in 2009 signed a deal to become a top tier partner of the U.S. Olympic Committee, said that the IOC alliance would cover "the breadth of P&G’s portfolio, which includes 22 brands each generating $1 billion or more in annual sales." P&G said brands that would participate in the partnership include Pampers, Tide, Ariel, Always, Whisper, Crest, Pantene and Olay.
According to P&G, the alliance with IOC was a direct result of its "Team USA partnership at the Vancouver 2010 Olympic Winter Games, which resulted in increased favorability ratings, greater market share and nearly $100 million in incremental sales."
"P&G's Team USA partnership at the 2010 Winter Olympics resulted in increased favorability ratings, greater market share and nearly $100M in incremental sales."
Cincinnati-based P&G said it would activate both domestically and internationally. The first effort would be a continuation of its "Proud Sponsor of Moms"’ campaign in conjunction with the IOC’s inaugural Youth Olympic Games in Singapore from Aug. 14-26. P&G said it would help "25 moms of youth Olympians from around the world with their travel and lodging costs so they can be in Singapore with their children as they compete."
Moving forward, P&G said it has partnered with the mothers of seven high-profile Olympians and Paralympians worldwide, including Jennifer Bolt (mom of Jamaican sprinter Usain Bolt), Rosemary Jones (mother of Australian swimmer Leisel Jones), Debbie Phelps (mom of U.S. swimmer Michael Phelps), Pat Radcliffe (mother of British long-distance runner Paula Radcliffe) and Marlene Shirley (mom of U.S. Paralympic sprinter Marlon Shirley).
“P&G is proud to support the Olympic Movement for the next 10 years,” Marc Pritchard, P&G global marketing and brand building officer, said during a press event to officially unveil the alliance. “But we know from our successful results in Vancouver that this is about much more than a sponsorship. For P&G, it’s about partnering with the IOC to make life better for athletes, moms and their families as we take the Olympic movement to our four billion consumers around the world that our brands already serve.”
According to IOC president Jacques Rogge, “Procter & Gamble is a first class company and we are absolutely delighted to announce we will be partnering with them through 2020. P&G’s global reach and consumer insight will be a real boost in our efforts to communicate the Olympic values to a worldwide audience and their financial support over the next decade will benefit the entire Olympic Movement including the athletes themselves.”
P&G employs about 135,000 in some 80 countries. Brands include Pampers, Tide, Ariel, Always, Whisper, Pantene, Mach3, Bounty, Dawn, Gain, Pringles, Charmin, Downy, Lenor, Iams, Crest, Oral-B, Duracell, Olay, Head & Shoulders, Wella, Gillette, Braun and Fusion.