Learning From the Olympics

Source: Business Week August 18, 2008; Pg. 36

Authors: Reena Jana, Frederik Balfour and Oriana Schwindt

Concept: R&D, Marketing

Brief Synopsis: This article discusses how many companies are using the olympics to showcase new technologies and use the coverage as a free way to market products. Also, new products are tested and feeback from athletes and trainers are used to help R&D teams to improve the existing product. Companies display products from varying categories, ranging from medical scanning systems, to swimwear, shoes, tracking chips, and vitamin-enhanced energy foods! The olympics seem to be a great way to test and market new, innovative products. For instance, General Electric has been able to rack up $700 million in sales from the Games alone.

My Thoughts: I think that the companies who are using the olympics to test out new products have the right idea. Not only do these companies get feedback from the best athletes on their products, but they also get free media coverage which promotes their products to the public. If Michael Phelps is wearing the newest goggles from Speedo, you can count on swimmers everywhere going out and buying the same pair--and all that coverage was free (during the Games at least!) The Games give great insight to products, though. If a product in unsatisfactory for an athlete or trainer, the company can take that feedback to the R&D department for more work. For example, another article following this in Business Week talks about Nike's new equestrian boots that look more like "hooker boots". Clearly, Nike made a mistake by trying to modernize a sport that does not want to be modernized. But now they can go back to the drawing boards and change the look of the boot, if they want to try to compete with the skilled hand-cobblers!