Companies adopt 'low key' strategy for Olympic marketing

Korea's Olympic delegation arrives at Narita International Airport in Japan, July 19. Yonhap

Some brands offer for their products for Team Korea

By Lee Min-hyung

Korean companies are moving to adopt a low-key strategy for their Olympic marketing by minimizing a direct commercial approach and focusing more on indirect methods to enhance their brand image.

Many companies here and abroad have long taken advantage of the global sporting event as the ideal venue for marketing. But hunkering down during the sports extravaganza looks to have emerged as a new "normal" for major advertisers this time due to negative perceptions over Japan's push to host the pandemic-delayed Olympics.

With a number of key Japanese advertisers ― including Toyota ― boycotting their Olympic ads, Korean conglomerates and small- to mid-sized companies are also keeping a low profile in terms of marketing during the two-week event.

But they still want to utilize the Olympics as an indirect source of marketing by highlighting their support for Korean athletes taking part in the event.

Hyundai Motor Chairman Chung Euisun will visit Tokyo to encourage Korea's national archery team members. Hyundai has for decades been a strong supporter of the Korean archery team and Chung has served as the chief of the Korea Archery Association since 2015.

Chung's visit to Tokyo, in itself, will have a huge marketing impact on Korean consumers at a time when the leaders of major conglomerates here will not visit Japan during the upcoming Olympics. Back in the 2012 London Olympics, a group of influential industry leaders ― such as SK Group Chairman Chey Tae-won, LS Group Chairman Koo Ja-yeol and the late chairmen of Samsung and Hanjin ― visited the host city to encourage Korean athletes.

But this is not the case for the upcoming Olympics, with most conglomerate leaders ― including Chey and Koo ―not planning to visit Tokyo. They will, instead, offer prize money for the Olympic delegation.

A number of retail and fashion brands here also hope to generate marketing effects by running a series of promotional activities supportive of Korean athletes.

CJ CheilJedang, a major food company here, will run a special event predicting a record time set by Korea's swimming rookie Hwang Sun-woo during the upcoming Olympics. Those who win will receive a swimming cap with Hwang's autograph.

The company also delivered its Bibigo food sets to Team Korea in Tokyo, with hopes of raising the profile of the brand here and abroad. The CJ affiliate is also running an online event where fans can leave a message of encouragement for the Olympic athletes. Those who win a draw during the event will receive Bibigo food products.

Kolon Sports, an outdoor clothing brand, is also taking part in the promotional activities by producing uniforms for the national archery team. As multiple gold medals are expected from the team, the company expects the sponsorship to increase its brand reputation around the world.

Genesis BBQ, which runs a chicken franchise chain, clinched a sponsorship with the Korean Sport & Olympic Committee last month. This allows the firm to run a series of marketing activities supporting Korean national team athletes who participate in global sporting events until the end of 2024.

"Even if most Korean companies remain low key in their Olympic marketing before the opening of the event, chances are that some of them will start engaging in more aggressive marketing campaigns in the middle of the Olympics," an industry source said. "It is hard for local companies to do so before the start of the event at a time when globally-renowned multinational firms are opting not to do so amid the global pandemic."

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