DEPARTMENT OF SPORT ECONOMICS & SPORT SOCIOLOGY DEPARTMENT OF SERVICES MANAGEMENT Innovative Place Branding during Olympic Games Case Studies from Turin 2006, Beijing 2008 and Vancouver 2010 Prof. Dr. Holger Preuß Dipl.-SpOec. Tim Ströbel 2010
Table of Contents 1. Introduction 2. State of research - Place branding 3. Methodology: Exploratory study on national houses at Olympic Games 4. Implications and theoretical background based on the exploratory study 5. Conclusions and future research 2
Introduction In 1900 & 1904 Olympic Games were (only) part of World Exhibition. They used the worldwide interest in the EXPO to gain recognition. Today, participating countries also seem to start using Olympic Games as exhibition platforms, not only through sport success but also by the installation of National Houses in host cities of Olympic Games. Research Question: Are National Houses at Olympic Games an innovative place branding tool? 3
Introduction Sport Branding Branding with Sport Branding of Sport Manufacturer/Producer Service Provider Corporate Houses IF Houses Federation League Place/Destination Case Studies: National Houses Local Houses Venue Lounches Club Event 4
Introduction: What is a National House? Facts and figures about the German House : Visitors: Turin (11.000) / Beijing (16.500) / Vancouver (9.500) Size: Between 900 and 1.600m² Official meeting point for the German Olympic Family Mainly team members, officials, sponsors, media and politicians. Motto of the DSM (agency in charge): From Institution to Brand In Vancouver, additionally German Fan Fest with open access for 600 visitors/day (each day entertainment program and typical German meals and drinks) 5
Introduction Turin 2006 Beijing 2008 Vancouver 2010 6
Introduction: Function of Houses There are many functions of these houses: 1. Hospitality Center for athletes, officials, politicians, fans & guests a) piece of home, b) meeting point / networking platform (Preuss, 2004) 2. Center for national sponsors & their guests a) corporate hospitality (Preuss, 2004; Walzel, 2011) b) only place to present sponsor in the host city 3. Office of the NOC 4. Media meeting point / daily press conferences 5. National exhibition area (information and experience) 7
Introduction: Function of Houses The main functions of these houses are: Target group Messages = foreign media, general sport tourists & guests = Place to feel home and present home as well as national exhibition area Communication Communication individual mass = Mouth to Mouth and direct marketing = Daily press conferences and sport news 8
State of research Place branding Today, most destinations claim to have spectacular scenery, superb attractions, friendly people, and a unique culture and heritage. However, these factors are no longer differentiators (Hudson/Ritchie, 2009) Successful place branding reduces substitutability in a global competition. A strong place brand attracts business and investments, promotes the goals of the tourism industry, promotes public diplomacy, supports the interests of exporting industries, strengthens national identity and increases self-respect. (Moilanen, 2008) 9
State of research Place branding Hallmark events are used to enhance the awareness, appeal, and profitability of the host location. (Ritchie, 1984) Especially, sport initiatives are often used for reimaging a place brand. (Smith, 2005) Olympic Games as example for positioning city/country brands: 10
State of research Place branding Literature mainly refers to place branding effects on host destinations. But, not only the host destination pursues place branding goals. Other stakeholders try to use the worldwide awareness towards the event Ökonomie der Aufmerksamkeit (Franck, 1998) Many participating nations run temporary national houses at Olympics. Research Question: Are National Houses at Olympic Games an innovative place branding tool? 11
Exploratory study National houses Methodological approach: 1. Lack of specific research and empirical results. Our aim is to look for patterns, ideas or hypotheses rather than testing or confirming a hypothesis. 2. Our exploratory research design focuses on gaining insights and familiarity with the subject area for more rigorous investigation later. We used participant observation (informal interviews, observation) semi-structured interviews. 3. Case studies at Olympics in Turin 2006, Beijing 2008 and Vancouver 2010 with an analysis of more than 20 houses: Australia, Austria, Czech Republic, Denmark, Germany, Greece, Italy, Japan, Liechtenstein, Netherlands, Russia, Scandinavian, Slovakia, Switzerland, USA. 12
Exploratory study National houses Participant observation: - Flexible, contextual, open observation, - Descriptions of specific environments, - based on symbolic interactionism (assuming that people are constantly in a process of interpretation and definition as they move through various situations) - Focused observation on research objects national houses. Semi-structured interviews: - Interview guideline, open questions, non-standardized response, - One-on-one interview situation, - Interview partners: Executive managers of the national houses. - Guideline referred to general data (location, size, visitors), organizational issues, main concept and idea, and target groups. 13
Results Implications based on our exploratory study => Theoretical backgrounds derived from observations at our case studies 14
Implications based on exploratory study Theoretical backgrounds derived from case studies 1. Principal-Agent Theory Information asymmetries between a better-informed agent and a lessinformed principal. The problem of hidden characteristics can be reduced by signaling. It is applied by sending credible signals to convey otherwise hardly observable qualities and information in order to prevent adverse selection. National houses might be used to send out unique information about the country in order to reduce information asymmetry towards tourists / qualified workforce / investors or politicians. 15
Implications based on exploratory study Theoretical backgrounds derived from case studies 2. Symbolic capital: Use of costly signals, which are supposed to be hard to imitate and send credible information about the sender. National houses might be used to generate unique symbolic capital by using costly signals (in particular through costly presentation of their houses at scenic / main places. 16
Implications based on exploratory study Theoretical backgrounds derived from case studies 3. BIRGing: Basking in reflected glory as self-serving cognition whereby individuals associate themselves with successful others such that another s success becomes their own. National houses as a piece of the nation uses the Olympics as spot of glory an high international media attention to show off as a nation. National houses serve as top spots where success stories and emotions are shared and visitors might bask in the athlete s/country s success. Cialdini, Borden, Thorne, Walker, Randall, Freeman, Sloan (1976) / Snyder, Lassegard, Ford (1986) 17
Implications based on exploratory study Theoretical backgrounds derived from case studies 4. Place branding: Management of place image through strategic innovation and coordinated economic, commercial, social, cultural, and government policy. National houses might be used as place branding tools for specific target groups in order to create positive place image in an unique and emotional environment. 18
Implications based on exploratory study Theoretical backgrounds derived from case studies 5. Emotions Theory: National houses might be used as place branding tools for those that directly visit the house. The setting (party in national setting) will be remembered and communicated to others. It can be seen as PR initiative. 19
3. Conclusions Case Study: and further National research Houses National houses spread information and create positive experience about the country brand. National houses raise awareness and influence the brand perception in an emotional and unique atmosphere. National houses contribute in a positive way to the country brand. The concept of national houses has overall positive effects on the country brand image as innovative place branding tool during Olympic Games! 20
Conclusions and further research Future research: 1) Verification of place branding-hypothesis by conducting a quantitative study regarding place branding. 2) Standardized survey with questions about the effects of national houses towards the visitor s perceptions of the nation brand. 3) Piggy-back communication is not new as we know it from Sponsoring. At Olympics corporate houses (non sponsors) as well as regional houses are common for many years. 21
DEPARTMENT OF SPORT ECONOMICS & SPORT SOCIOLOGY DEPARTMENT OF SERVICES MANAGEMENT Thank you very much for your attention! Prof. Dr. Holger Preuß Dipl.-SpOec. Tim Ströbel 2010
Case studies National houses 3. Case Study: National Houses Casa Italia (Beijing 2008): Area: 8.000m 2 600 visitors per day 3 areas: Piazza Italia, Business Area, Commercial Area Piazza: Get-together, live transmission, concerts, Commercial Area: Presentation, entertainment, information Idea: Bringing Italy to China! Open to everyone 23
Case studies National houses German House (Vancouver 2010): Two houses, in Vancouver (1.000m²) and Whistler (400m²) Vancouver 450 / Whistler 150 visitors per day Only access by prior accreditation through DOSB, but installation of German Fan Fest in Vancouver with open access for 600 visitors (each day entertainment program and sale of typical German meals and drinks)! Motto of charged agency DSM: From institution to brand! 24
National houses as place branding tools? Identification of three different house types : - Closed Community-House Athletes, sponsors, officials, team members, politicians, media, invited guests and VIP s. Focus on selected international multipliers (e.g. media) and important decision makers (e.g. politicians and investors). - Multi Level-House Areas with restricted access, but most areas open to everyone. Focus on media and politicians/investors, but also on local citizens in their role as potential tourists and workforce. - Exhibition-House Open to everyone, who is interested in the country. Focus on international media and local citizens. 25
National houses as place branding tools? National houses are used as place branding tools in the sense of promoting the identity of the country brand to tourists, interested workforce, politicians and investors. Presentation of location factors, tourist destinations, business partners, employers and peculiarities like inventions or lifestyle in the extraordinary environment of Olympic Games. No other promotional campaign could let visitors see, feel, taste and touch the country brand in that way. National houses offer multi-faceted emotional brand experiences to create a country brand image in the mind of the visitor. 26