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Morgan:News:2010 |Business| #1440
VISA MARKETING EXECUTIVES SAY COMPANY'S OLYMPIC SPONSORSHIPS GOOD FOR BUSINESS IN MANY WAYS
Visa USA, in an article about Olympic sponsorships in today's edition of BrandWeek, says the credit-card company's long-term, exclusive program with the Games, which will continue during the 2010 Olympics, is good for its business and those of its corporate customers in many ways.
In fact, much of its athlete-centred marketing program, developed over years of Olympics support, has many of the components of the program outlined yesterday by Rona, the renovations retailer that is a major sponsors of the 2010 Winter Games.
Susanne Lyons, chief marketing officer, and Michael Lynch, senior vice-president of event and sponsorship marketing, were involved in the interview.
"The Olympics is the most deeply activated, multipronged initiative we do, and it has its preeminent position because of its linkage to our brand,” said Lyons. “When consumers are aware of our relationship with the Olympics, they think more highly [of Visa] on a number of different levels."
From Visa's point of view, they told the publication, the company connects with these Olympic attributes perceived by the buying public: aspirational, celebratory, inclusive, trustworthy and empowering. Those traits, they say, speak to Visa's branding that implies a promise of helping consumers achieve their goals, whether making a dream-come-true acquisition or an everyday purchase.
"We also are helping the athletes achieve their goals," Lynch said in the publication. "The key to our sponsorship success is connecting to the athletes themselves... We find that when consumers view us as helping support the athletes, their perception of us as a brand builds significantly and that, in turn, develops preference for Visa products and ultimately drives incremental usage to the system.”
Visa believes that providing athletes with financial support is a key component of its endorser program. n the larger picture, Lynch told the publication, “We're looking for a variety of disciplines to provide creative content for our member banks and merchants so they can differentiate themselves [in their marketing programs]. You'll see a cross-section of athletes: male, female, different sports imagery, different ethnic backgrounds."
Visa also tends to use its Olympic marketing time to focus on new products it wants to establish. "We took a hard look to see how these sponsorships can work harder for us,” said Lyons. "They're doing things at a brand level, but can they help us drive usage and volume? The way to do it is to make sure real product benefits and reasons to believe are tied into the spot... It's more of a creative challenge, where we're not just saying, 'We're a proud sponsor of the Olympics.'"
Visa, in its set-up for the Torino Olympics has bought billboards, airport signage and retail point-of-purchase collateral. The company typically begins planning these components five years before the Games. Thus executives, already two years into planning for Beijing in 2008, began visiting Vancouver in 2003 and again last year to set up preparations for the 2010 Winter Games.
Originally published to Morgan:News:2010:Gold subscribers on January 31, 2006
Morgan:News:2010 |Moguls| #1439
Here are three more moguls we ran into today:
2010-RELATED SPENDING ABOUT C$93 MILLION TO DATE
To date, about 300 contracts, worth about C$93 million, have reportedly been tendered so far by VANOC and other agencies in connection with the 2010 Winter Games preparation and support. VANOC is expected to eventually award more than 10,000 contracts for goods and services. VANOC and those agencies are also expected to spend about C$145.6 million on its capital projects this year as work to upgrade facilities at Cypress Mountain for the Olympics' freestyle skiing and snowboarding events, as construction of the new arena at the University of B.C. begins, as the work continues in the Callaghan Valley on the Whistler Nordic Centre and on Whistler-Blackcomb on the Whistler Sliding Centre, and as the tenders for construction of the athletes villages in Vancouver and Whistler are eventually issued. Meanwhile, the Canadian Olympic Committee reports that about C$10 million of the C$110-million "Own The Podium" program was spent on supporting Olympic athletes in various ways, from financial to technical, during the past year and they prepared for the 2006 Games and as the program itself was established and its funding channels opened. "This money went into allowing athletes to have better, longer training camps and competition opportunities against their peers outside Canada," COC president Mike Chambers said. Some of the funding spent during the past year can be used to help develop existing and new athletes for the 2008 Summer Games in Beijing and the 2010 Winter Games in Vancouver, but the focus will shift towards 2010 after Torino's Games end. Half of the Own the Podium program budget is funded by the federal government through annual contributions, while the other half is funded by major sponsors of VANOC.
HOME-SHOW OPERATORS FRET ABOUT LOCATIONS IN 2010
Operators of home shows, sprawling trade shows for the public that focus on home furnishings, are getting a bit nervous about 2010 in the Greater Vancouver area, apparently. VANOC will be using several of the locations from roughly November, 2009 until the summer of 2010, where these shows are normally held -- General Motors Place, BC Place Stadium and others. It's one of the arguments that proponents of Richmond's suggested new convention centre are using to support their C$75-million project. Tracy Lakeman, executive director of Tourism Richmond, says she'd like the facility to be ready by the end of 2008 to capitalize on the 2010 Games. "By 2009, the Olympics will take over many of the facilities a lot of the consumer trade shows are housed in, and they're very nervous about having a home, especially a purpose-built home," she said. "Hopefully we'll be able to be that home for them."
VERNON AREA PLUMPED FOR 2010-BOUND ATHLETES
About 60 million people worldwide watched televised coverage last weekend of the Viessmann FIS World Cup Nordic skiing championship at Sovereign Lake near Vernon, in BC's Okanagan area. The World Cup's direct economic impact through restaurants, hotels and other services is about $10 million, but, "That doesn't include a dollar figure for media exposure," said Jennifer Strachan, marketing co-ordinator for the Greater Vernon Services Commission. "An event like this puts us on the map. It puts us into areas we wouldn't be able to market in." Strachan suggests Europeans watching the TV coverage may consider their athletes could train in the area during the run-up to the 2010 Winter Olympics.
Originally published to Morgan:News:2010:Gold subscribers on January 31, 2006
Morgan:News:2010 |Business| #1438
CONTRACTORS ASSOCIATION FORECASTS CONTINUED STRONG INFLATION BETWEEN NOW AND 2010
The Independent Contractors and Businesses Association of BC, an organization of medium-sized and non-union construction firms, reports that the strong construction-cost inflation experienced over the last five years British Columbia is likely to be pushed by rising labour costs for the foreseeable future.
It's a gloomy forecast for the Venues departments of the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Games (VANOC), and for the federal and provincial governments which are helping to pay for the Games, and who have been asked by VANOC for additional dollars to keep their 2002 financial commitments even with inflation until the end of 2007.
Philip Hochstein, president of the ICBA, says, “We have just completed a detailed analysis of where we think construction costs are going and why. And the short answer is that the 45% increase in costs over the past five years is likely to continue for the next five with average yearly inflation of approximately 10%.” He calls it "a perfect storm" for the industry.
The reasons he cites for the continued escalation include:
Upward pressure on wages after 20 years of declining real incomes;
Sharp increases in construction material prices driven by world commodity prices; and,
Declining labour productivity due to the high ratio of new entrants into the industry.
“We are in a market not seen since the late '70s,” says Hochstein. “The labour market is extremely tight because construction is busy across the country, BC volumes continue to grow, and all [construction] costs are going up at the same time that our productivity is dropping because of all the new trainees we are taking on.”
The BC and federal governments, and VANOC, which is to undertaking its major construction program this year and next, with additional construction or renovations up to 2010, have been aware of the skill shortages for several years, but the apprenticeship training programs necessary to increase skilled trades people take several years to improve, expand and produce graduates. That process has been underway for more than a year now.
Hochstein, however, is calling on both the provincial and federal governments to work together on a strategy to streamline the immigration process to bring young skilled trades into BC to raise productivity and help mentor all the new apprentices being hired into the industry.
“The apprentices we are hiring now will supply the skilled labour a few years down the road, but the only way to bridge the immediate gap is to look beyond our borders and cut through the red tape that prevents or delays the infusion of much need skilled workers into the province,” says Hochstein.
Hochstein adds that the 1990s, where contractors and workers each encountered reductions in their compensation, set what he called "unrealistic price expectations for construction clients" and that "cost inflation is the new reality for the short to medium term."
Trades such as electrical and plumbing can move easily between residential and civil projects, but the ICBA says it expects there work will continue to grow faster than the supply of non-residential trades, including ironworkers, boilermakers, millwrights, industrial mechanics, refrigeration mechanics, air-conditioning workers, and those who specialize in earthworks, reinforcing steel and concrete forming. "The concentration of projects in southwestern BC is also drawing off workers from rural and small communities, where almost half the construction companies surveyed by the B.C. Chamber of commerce reported vacancies in hard-to-fill positions."
BACKGROUND
More information from the IBCA research:
After lagging during the nineties, construction Gross Domestic Product growth is now well ahead of the overall economy. In 2004, the latest information available, suggests that construction GDP growth was 8.6% compared to 4% for the overall economy.
BC construction employment has risen from about 110,000 in 1990 to more than 160,000 today. Combined with record low unemployment and a busy industry across Canada, labour shortages exist.
Construction wages have been falling in inflation-adjusted dollars since the mid-'80s, but recent building-trade settlements of more than 25% over five years are signalling an upward trend in real wages. Combined with increasing demand for labour, upward pressure on wages is forecast to continue.
All major construction materials -- lumber, iron and steel, cement and concrete, fuel -- have been rising consistently for several years, and most are projected to continue to rise due to world commodity trends.
Trade escalation varied considerably from about 4% in landscaping to more than 20% in concrete formwork and roofing between 2004 and 2005. Material and labour costs drove the increases.
Labour productivity -- defined as GDP per hour worked -- in the construction industry has fallen by almost 30%, while the overall productivity grew by 42%. The IBCA says, "This can be explained largely by the relatively small impact technology has had on construction productivity, and the high ratio of new entrants into the construction labour force."
The house price index rose 17.6% from 2000 to 2005, but land prices rose only 5.4%. The ICBA says, "Generally land prices are not as volatile or interest-rate sensitive as house prices, so projected interest-rate hikes will likely not impact construction costs for land, materials or labour in the short run."
Construction profit margins plummeted from 4.7% in 1988 to –0.2% in 1993. Profitability is slowly returning to the industry with margins nearing 4% in 2003, the latest year for which information is available.
Originally published to Morgan:News:2010:Gold subscribers on January 31, 2006
Morgan:News:2010 |Moguls| #1437
TORINO, 10 DAYS OUT, OPENS OLYMPIC VILLAGES IN CEREMONY
The three Torino Olympic Villages that are to house the athletes and their supporting staff -- officially known as "delegations of the National Olympic Committees" -- during their stay, today opened their doors. The opening of the village also marks the official start of the Games as far as the intensive athlete anti-doping testing is concerned. There are 10 days to go before the Italian Games begin. The Olympic Villages of Turin, Sestriere and Bardonecchia will operate from today until 28 February and have a combined capacity of 4,050. They'll shut down for about a week as the switch over occurs to host the Italian Paralympics, which begin in March. It's a process VANOC is expected to follow. The villages provide gyms, shops, restaurants and a medical centre. There was an opening ceremony, at the main, 10-hectare village in Torino, and it involved speeches by the IOC’s Executive Director for the Olympic Games, Gilbert Felli, who has been to Vancouver several times since the city won the 2010 bid, as well as the Torino Organizing Committee's Deputy General Manager and Chief Operating Officer and Sport Director, the so-called "mayor" of the Olympic Village (who is also an IOC member) and the two "vice-mayors" of the other two villages.
NBC OLYMPICS TO USE AVAYA AGAIN FOR TELECOM SUPPORT DURING TORINO GAMES
NBC Olympics, the division of the American TV network that focuses on covering Olympic Games, says it's contracted for a fourth Games with Avaya, a large communications consulting firm, with the services to link Torino's International Broadcast Center and NBC's Field Shop with sports venues in Torino, Italy, NBC Olympics headquarters in Stamford, Connecticut, and NBC Studios in New York with NBC's Olympic reporters. NBC, which will provided the largest contingent by far to broadcast the 2010 Olympics to the United States, gets control software from Avaya, as well as a messaging application that makes voice and fax accessible from any phone, fax machine or personal computer in NBC Olympics' network. It also provides a cellular-phone application, which enables calls made to a network extension to ring simultaneously on a cell phone so staffers can be reached through a single number. The software runs on a redundant server farm, the equipment also has a number of fails-safe build into it, and the company provides remote diagnostics and troubleshooting.
COURT OF ABRITRATION FOR SPORT SETS UP TORINO AD HOC DIVISION
The Ad Hoc Division of the Court of Arbitration for Sport is just now in the process of naming the arbitrators who are to hear any disputes -- such as an athlete appealing an anti-doping order -- that occur during the 2006 Olympics. The Court, based in the IOC's headquarters city of Lausanne, Switzerland, is an institution that's independent of any sports organization, and which provides ways to settle any sports-related disputes through arbitration or mediation. It uses procedural rules adapted to the specific needs of the sports world. The CAS, created in 1984, is funded by the International Council of Arbitration for Sport. The CAS uses about 300 arbitrators from 87 countries, chosen for their specialist knowledge of arbitration and sports law. Around 200 cases are registered by the CAS every year. The Ad Hoc division was first set up to cover the 1996 Olympic Summer Games in Atlanta. By the way, Richard Pound, a member of VANOC's 20-person Board of Directors and head of the Montreal-based World Anti-Doping Association, is one of the 11 arbitrators that the Court uses in Canada.
RESOURCES
Court of Arbitration for Sport:
www.tas-cas.org/en/medias/frmmed.htm
Avaya's website:
www.avaya.com/
Originally published to Morgan:News:2010:Gold subscribers on January 31, 2006
Morgan:News:2010 |Business| #1440
VISA MARKETING EXECUTIVES SAY COMPANY'S OLYMPIC SPONSORSHIPS GOOD FOR BUSINESS IN MANY WAYS
Visa USA, in an article about Olympic sponsorships in today's edition of BrandWeek, says the credit-card company's long-term, exclusive program with the Games, which will continue during the 2010 Olympics, is good for its business and those of its corporate customers in many ways.
In fact, much of its athlete-centred marketing program, developed over years of Olympics support, has many of the components of the program outlined yesterday by Rona, the renovations retailer that is a major sponsors of the 2010 Winter Games.
Susanne Lyons, chief marketing officer, and Michael Lynch, senior vice-president of event and sponsorship marketing, were involved in the interview.
"The Olympics is the most deeply activated, multipronged initiative we do, and it has its preeminent position because of its linkage to our brand,” said Lyons. “When consumers are aware of our relationship with the Olympics, they think more highly [of Visa] on a number of different levels."
From Visa's point of view, they told the publication, the company connects with these Olympic attributes perceived by the buying public: aspirational, celebratory, inclusive, trustworthy and empowering. Those traits, they say, speak to Visa's branding that implies a promise of helping consumers achieve their goals, whether making a dream-come-true acquisition or an everyday purchase.
"We also are helping the athletes achieve their goals," Lynch said in the publication. "The key to our sponsorship success is connecting to the athletes themselves... We find that when consumers view us as helping support the athletes, their perception of us as a brand builds significantly and that, in turn, develops preference for Visa products and ultimately drives incremental usage to the system.”
Visa believes that providing athletes with financial support is a key component of its endorser program. n the larger picture, Lynch told the publication, “We're looking for a variety of disciplines to provide creative content for our member banks and merchants so they can differentiate themselves [in their marketing programs]. You'll see a cross-section of athletes: male, female, different sports imagery, different ethnic backgrounds."
Visa also tends to use its Olympic marketing time to focus on new products it wants to establish. "We took a hard look to see how these sponsorships can work harder for us,” said Lyons. "They're doing things at a brand level, but can they help us drive usage and volume? The way to do it is to make sure real product benefits and reasons to believe are tied into the spot... It's more of a creative challenge, where we're not just saying, 'We're a proud sponsor of the Olympics.'"
Visa, in its set-up for the Torino Olympics has bought billboards, airport signage and retail point-of-purchase collateral. The company typically begins planning these components five years before the Games. Thus executives, already two years into planning for Beijing in 2008, began visiting Vancouver in 2003 and again last year to set up preparations for the 2010 Winter Games.
Originally published to Morgan:News:2010:Gold subscribers on January 31, 2006
Morgan:News:2010 |Moguls| #1439
Here are three more moguls we ran into today:
2010-RELATED SPENDING ABOUT C$93 MILLION TO DATE
HOME-SHOW OPERATORS FRET ABOUT LOCATIONS IN 2010
VERNON AREA PLUMPED FOR 2010-BOUND ATHLETES
Originally published to Morgan:News:2010:Gold subscribers on January 31, 2006
Morgan:News:2010 |Business| #1438
CONTRACTORS ASSOCIATION FORECASTS CONTINUED STRONG INFLATION BETWEEN NOW AND 2010
The Independent Contractors and Businesses Association of BC, an organization of medium-sized and non-union construction firms, reports that the strong construction-cost inflation experienced over the last five years British Columbia is likely to be pushed by rising labour costs for the foreseeable future.
It's a gloomy forecast for the Venues departments of the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Games (VANOC), and for the federal and provincial governments which are helping to pay for the Games, and who have been asked by VANOC for additional dollars to keep their 2002 financial commitments even with inflation until the end of 2007.
Philip Hochstein, president of the ICBA, says, “We have just completed a detailed analysis of where we think construction costs are going and why. And the short answer is that the 45% increase in costs over the past five years is likely to continue for the next five with average yearly inflation of approximately 10%.” He calls it "a perfect storm" for the industry.
The reasons he cites for the continued escalation include:
“We are in a market not seen since the late '70s,” says Hochstein. “The labour market is extremely tight because construction is busy across the country, BC volumes continue to grow, and all [construction] costs are going up at the same time that our productivity is dropping because of all the new trainees we are taking on.”
The BC and federal governments, and VANOC, which is to undertaking its major construction program this year and next, with additional construction or renovations up to 2010, have been aware of the skill shortages for several years, but the apprenticeship training programs necessary to increase skilled trades people take several years to improve, expand and produce graduates. That process has been underway for more than a year now.
Hochstein, however, is calling on both the provincial and federal governments to work together on a strategy to streamline the immigration process to bring young skilled trades into BC to raise productivity and help mentor all the new apprentices being hired into the industry.
“The apprentices we are hiring now will supply the skilled labour a few years down the road, but the only way to bridge the immediate gap is to look beyond our borders and cut through the red tape that prevents or delays the infusion of much need skilled workers into the province,” says Hochstein.
Hochstein adds that the 1990s, where contractors and workers each encountered reductions in their compensation, set what he called "unrealistic price expectations for construction clients" and that "cost inflation is the new reality for the short to medium term."
Trades such as electrical and plumbing can move easily between residential and civil projects, but the ICBA says it expects there work will continue to grow faster than the supply of non-residential trades, including ironworkers, boilermakers, millwrights, industrial mechanics, refrigeration mechanics, air-conditioning workers, and those who specialize in earthworks, reinforcing steel and concrete forming. "The concentration of projects in southwestern BC is also drawing off workers from rural and small communities, where almost half the construction companies surveyed by the B.C. Chamber of commerce reported vacancies in hard-to-fill positions."
BACKGROUND
More information from the IBCA research:
Originally published to Morgan:News:2010:Gold subscribers on January 31, 2006
Morgan:News:2010 |Moguls| #1437
TORINO, 10 DAYS OUT, OPENS OLYMPIC VILLAGES IN CEREMONY
NBC OLYMPICS TO USE AVAYA AGAIN FOR TELECOM SUPPORT DURING TORINO GAMES
COURT OF ABRITRATION FOR SPORT SETS UP TORINO AD HOC DIVISION
RESOURCES
Court of Arbitration for Sport:
www.tas-cas.org/en/medias/frmmed.htm
Avaya's website:
www.avaya.com/
Originally published to Morgan:News:2010:Gold subscribers on January 31, 2006