The Results of Bell’s Investment in the 2010 Olympics
by jonathanli ~ November 30th, 2010. Filed under: Uncategorized.…continued
Before
Bell’s objectives for this proposal was to gain a 1% increase in market shares and use this experience as a “brand building exercise”[1]. Bell was a relatively small company in the west before the 2010 Winter Games, using this change, Bell took the risk of proposing $200 million to bid for the position of official sponsorship.
After
Bell’s third quarterly statement for 2010 explains that their operating income has increase by 15.6%, from $583 to $674 (in millions) while TELUS’ third quarterly statement for 2010 has an increase in their operating income by 2.43%, from $493 to $505 (in millions)[4,5,6]. Although Bell’s operating income increases, it is not the same as market shares, however these statements do provide a good estimate of the share of market gained by each company. In Canada’s wireless market, “more than 95 percent belong to Rogers Communications Inc., Bell Canada Inc. and Telus Corp[7].” In this case, a relative increase in revenue from one company results in a lost in another. Another reliable trend that can help us determine the success of Bell is the stock market in which BCE and T are invested in (Bell and TELUS); the stock price was analyzed and in figure. 1 [8] Bell (BCE) has a 67.4% increase from Jan2009 to Jan2010 ($20.46 to $34.24), meanwhile TELUS (TU) experiences a 64.91% increase from Jan2009 to Jan2010 ($26.76 to $44.13). This percentage increase is vital as we can see that the winter olympics have not only increased their stock prices but also has produced a new market for their company. Leading on, Bell says that “Winter Olympic [has] helped push ahead the deal in purchasing CTV [10].
Summary
Bell’s investment in the 2010 Winter Olympics was beyond successful. Through Bell’s proactive use in marketing during the Winter Games they have carefully positioned themselves within the west, previously dominated by TELUS. Bell’s success is mainly seen in the long run, their $200 million will be a good investment because of Bell’s involvement in the 2010 Winter Games. Traits of good investment are shown as their stocks are rising, market shares are increasing, and their brand is recognized all over the western coast. I believe that Bell will slowly but surely surpassed TELUS in terms of growth of target market, brand recognition, and sales.