Additional lessons
LESSON 1
TOYOTA’S OLYMPIC TURN
Task 1. Look at the title of the article and discuss the following questions with a partner.
When did the modern Olympic Games start?
Why do big corporations and companies stand as Olympic Games sponsors?
What companies do you know which invest money in Olympic Games?
Task 2. Read the article.
TOYOTA’S OLYMPIC TURN
GM's decision to pull its sponsorship of the Olympic games has given the Japanese automaker an open lane. Will it go for the gold?
Toyota’s Olympic moment arrives thanks to an abdication by GM. After 24 years of sponsoring the U.S. Olympic team GM is exiting the games after the flame is extinguished in Beijing next summer. GM says it now believes it can spend its money more wisely by targeting its marketing more narrowly, the Internet, or by spending some of those Olympic dollars developing new models. And after losing nearly $13 billion in the last two years, GM is in no position to sign on for another $1 billion, 10-year Olympic deal. “We do feel the high cost of entry to be an official Olympic sponsor is not the most efficient way to spend our marketing dollars,” says GM spokeswoman Ryndee Carney. Besides, affixing those magic rings to its ads didn’t exactly transform GM into a champion: Since 1997, GM’s share of the American auto market has fallen faster than a Chinese platform diver, from 31 percent to 23 percent today. Says De Lorenzo: “The Olympics just didn’t deliver for GM.”
For Toyota, though, the Olympics could be golden. And it certainly has the gold to afford it. It made a record $13.7 billion last year and expects to earn even more next year, as it leaves GM in its rearview mirror. “This is a slam dunk, a no-brainer,” says marketing Gene DeWitt, who worked with GM on Olympic sponsorships. “Toyota should make it their biggest promotion of the year and they would sell a lot of cars.”
By wrapping itself in the Olympic and American flags, Toyota could seal the deal with car buyers, who’ve already vaulted Toyota past Ford into second place in sales in the U.S. market. “For Toyota, the Olympics could be a better deal than for anyone else,” says Global Insight auto analyst John Wolkonowicz. “Toyota wants to convince people that they’re not buying a Japanese car, they’re buying an American car.”
The prospects for an anti-Toyota backlash seem more remote among the Olympic faithful. After all, Toyota would not be the first foreign company to sponsor America’s Olympic athletes. Panasonic (Japan), Samsung (Korea) and Omega (Switzerland) are already sponsors. “Any time you attach yourself to Team USA, there’s always an opportunity for a backlash,” says Toyota marketing spokesman Chad Harp. “There’s still a lot of people who don’t want a foreign manufacturer competing in what’s seen as an all-American racing series.”
But it probably won’t cause a stir if NBC remodels its set so Bob Costas can deliver Toyota Olympic Moments rather than Chevrolet Olympic Moments. And the U.S. equestrian team isn’t likely to bolt if Lexus rolls up big as its sponsor. The fact is, most Americans already consider Toyota part of the landscape. That’s why the Camry is America’s No. 1 family car, the Prius our favorite hybrid and Lexus the top-selling luxury line. For Toyota to embrace America’s Olympians would only seem like it is returning the favor. Perhaps the most persuasive indicator that Toyota is destined to become America’s automotive Olympic sponsor is how GM war-gamed its exit strategy. As the General’s marketers debated ending a quarter century of Olympic support, they paused to contemplate the most likely fallout: that Toyota would replace them. “That possibility was considered when this decision was made,” admits GM’s Carney. Given the fragile state of its finances and the nascent nature of its turnaround, GM gave up the games. And now the torch can be passed.
Task 3. Decide if the following statements are true or false. Correct the false ones with the right information and discuss your answers with a partner.
Toyota will sponsor American Olympic athletes as a result of an abdication by GM.
GM is going to pull its sponsorship of the Olympics after the flame is extinguished in Tokyo next summer.
GM is going to spend Olympic dollars on developing new models.
The Olympics were not profitable for GM.
By wrapping itself in the Olympic and American flags, Toyota could seal the deal with car buyers, who’ve already vaulted Toyota into first place in sales in the U.S. market.
Toyota will be the first foreign company to sponsor America’s Olympic athletes.
Most Americans consider Toyota part of the landscape, that’s why the Camry is America’s No. 1 family car.
Task 4. Look through the article again and decide what the following numbers refer to. Discuss your ideas with a partner.
24 $13 billion 1997 $13.7 billion $1 billion 23%
Task 5. Make up questions beginning with the following words. Ask your partner to answer them.
What Where Why How much When How many
Task 6. Simulate the meeting at Toyota’s headquarters where the decision to sponsor American Olympic athletes is discussed.
Task 7. Summarize the article.