This Is How I Became a Chaebol

136 : Unexpected money

“Yes. I want official sponsor status.”

“Now that you are designating a sponsor… If you really want to do it, you will be at a disadvantage in advertising compared to other companies, would you mind?”

“yes. good. As long as we can sponsor our products to our athletes, that’s no problem.”

It was still in the 1960s, so to become an official sponsor of the Olympics, a huge amount of money was required, and the business authority was not strict.

In keeping with the Olympic spirit of putting significance on participation, originally the IOC did not receive any direct sponsorship.

Then, in the early 1980s, when the IOC president changed, commercialization of the Olympics began in earnest.

Since the 1984 LA Olympics, it has obtained a large amount of money from official sponsors and given strict monopoly status, creating a surplus Olympics for the first time in history.

Compared to the system that the United States, the king of capitalism, will create in a few years, I was able to squeeze into it with a smile at the Mexico Olympics.

If you put some money in the pocket of the Olympic Committee President, you can get the qualification as a sponsor.

Since it was not a direct donation, we can argue that it did not undermine the spirit of the Olympics.

“Again, the panel behind the interview, the finish line tape, and the billboards at the stadium are all out of contract.”

Chairman Krach repeated his words as if he had promised.

Current Olympic marketing is at this level.

It was almost all about providing various billboards and items used for games, and engraving the company’s logo.

For me, it was more important to have a close-up of the Nike brand as the players progressed through the final than that static panel ad.

The Nike logo should be imprinted in the minds of the spectators at that moment when the adrenaline rushes out.

“No problem at all. A billboard contract doesn’t really matter, as long as we can play our product trademark on the TV screen.”

“Hahaha, that’s it, even if it wasn’t a sponsor, how would you stop it? Rather, it will be caught on TV cameras only when the athlete sponsored by the product enters the medal ticket. Good luck to the mainstream group.”

The chairman chuckled and told me to do it myself.

This man was already thinking of getting the back money by handing over the track construction to me cheaply.

And even if they gave me the qualification as a sponsor, I didn’t think I would cause a problem by spraying cheap products, so I readily accepted it.

This was possible because the quality of the sneakers was the best.

“Then make a deal. Phil, the contract, please.”

“Yes, boss.”

Phil Knights handed out the contract.

“Huh, this is also different from the companies we work with in the US. You came with such a perfect contract.”

Chairman Krach read through the contract and signed it in one fell swoop.

There was no special contract that could be an issue.

Since I wasn’t paying for a donation or buying a billboard, there was little to discuss.

In other words, they made the construction cheaper and won the qualification as an official sponsor.

“Then, as soon as the order is confirmed and the L/C (letter of credit) is opened, construction will begin.”

“good. See you then.”

We shook hands pleasantly.

It was a win-win contract in which each thought they had benefited.

***

We left the organizing committee building and headed to the nearby Sports City.

There is a nice lawn, so it was fun to have lunch with a hamburger.

“Phil Knights, what are you going to do with your marketing?”

I then asked Phil Knights.

“I’m thinking of making a large experience booth here in Sports City.”

“An experience booth? Is it like an amusement park?”

“That’s it. He is also the boss.”

“Experience booths require a lot of people to have an advertising effect. Is this a good place?”

“Sport City is the best. I’ve been here a few times when I was a student, so I know where people gather.”

Sports City seems to be a hot spot.

Come to think of it, there were quite a few people passing by.

“Most tourists do a city tour, and they spend a lot of time in the Sports City. I think the crowd will be huge during the Olympics.”

“A huge crowd… Are there many tourists here?”

At my question, Phil Knights gave me a somewhat bewildered expression.

“Of course. Mexico is a tourist country. Although the majority of tourists are Americans, Mexico is home to more than $700 million in annual tourism revenue. It will be even more amazing at the Olympics.”

“Seven billion dollars? That’s great.”

I saw Mexico as too watery.

In the 1960s, if tourism alone earned $700 million a year, becoming a middle-income country would not have been a problem.

After all, it is next to a rich country, so if you fall, you can ignore the beans.

“So I would like to open a soccer class for children here and sell soccer shoes, jerseys, and soccer balls. Is that okay?”

“It’s a soccer ball, isn’t it a good idea?”

“The response will be huge. In Mexico and other Central and South American countries, football is almost a religion. If you make soccer balls with Nike logos and boots that are light and bouncy, I won’t be able to sell them.”

After all, I thought Phil Knights was a world-class marketer.

Central and South Americans will go wild if they come to see the Olympics and kick a ball with the soccer boots made by Daeseok.

“Is it okay to target the North American market? Aren’t they not very interested in soccer in North America?”

Since I prioritized exporting to North America, I didn’t even think about soccer boots or soccer balls.

“All you have to do is make a premium product with the concept of a sneaker, not a soccer shoe, and sell it at a higher price than the product presented here at the Olympics.”

This was also a great idea.

The idea was to release a similar sneaker product as a premium product with only a slight change in design.

Using 21st century marketing techniques in the 60s.

“like. We will send it to you as soon as possible with the design you want, so feel free to sell it.”

“I would also like some support for booth operation costs. We plan to give out soccer balls as prizes and invite famous athletes.”

“You can do it. And I will use polyurethane to make soccer balls of the highest quality.”

“…You say soccer balls are also made of polyurethane?”

“sure. It is incomparable in terms of repulsion and durability, so it will be a big hit if you just make it.”

In the 21st century, soccer balls are, of course, made of polyurethane. It’s still in the 60’s, so we only use rubber and leather.

“Ha, this. The official ball for the World Cup in Mexico may change.”

“No, why are you talking about the World Cup all of a sudden?”

“Oh, didn’t you know? The World Cup next year will also be held here in Mexico. Olympic soccer is like World Cup soccer qualifiers.”

As expected, I am a heavy industry person, and marketing and fashion sports are separate experts.

I heard that the Olympics and the World Cup are held alternately every two years, but I never thought that Mexico would host them consecutively.

“How is it? Won’t you leave it to me?”

There was no reason to give up.

He came up with such a good idea, and isn’t he the one who will wear trending products for the US national team?

“Soccer balls and boots, as well as all event rights, are acknowledged. Instead, our sneakers and sportswear are unconditionally worn by the US national team. Can you?”

“Of course. Absolutely possible. trust me”

In fact, if everyone tries on a trending product once, they will try to wear it even if they are told not to wear it.

If only one person breaks through it, word of mouth will spread quickly. If Phil Knights’ marketing ability is added to Daese’s product power, it will not be difficult.

“How much can I put in? We don’t even have a booth yet.”

“Two weeks is enough to open a booth, and if you run promotional events and sponsor products to athletes, the advertising effect will come soon. Even if you can’t, please bring 100,000 pieces per product.”

I was honestly surprised.

Can you sell that many at once?

“With that amount, we can’t help but worry about inventory. Can you really sell it?”

“Of course. There is no way there will be any left in stock, and if there is any left in stock, I will sell it even if I go to the US. Just fill the warehouse here.”

It was great confidence.

If you can sell that much here, how much more will you sell in the US?

If you succeed, you will far surpass the stronghold of the gold skin.

“like. I will give you any quantity, so sell it.”

You’d better leave the sales here to Phil Knights.

When I came for construction, I thought I would just have to check sales for a while.

After all, I did see people properly.

Phil Knights was well aware that growing the pie was more important than negotiating a stake.

With this kind of defeat, Adidas or Reebok can be crushed in a much shorter time compared to the original history.

I don’t know what the relationship would be like later when the market matured, but it was certain that they would be good partners for a long time to come.

***

three months later,

“Boss, we have started!”

After eating, I returned to the scene and was called back to the cafeteria where the TV was located.

Numerous employees, including Deputy Manager Danchung-gi, gathered in front of the TV.

＜Was there ever been an Olympics with so many new records? The greatest record maker of all time, the Mexico Olympics.＞

＜The highlight of athletics is approaching the men’s 100m final, and the world is paying attention to whether the 10-second barrier will be broken.＞

＜The player who gets the most attention is Jim Hines, an American player in lane 3 over there. The shoes he is wearing are said to be made in Korea.＞

＜Yes. That’s right. It is said that Daesei Unemployment is a joint product with an American company. It’s not just sneakers. It is said that the tracksuit you are wearing is also a trending product.＞

＜It is said that popular products are showing a classy phenomenon due to their excellent quality. Isn’t that great? Korea’s technology is expanding to the world.＞

Broadcast casters were advertising the trend for free.

Since our players did not participate in the finals, boasting about our products would be better in terms of viewer ratings than reciting the biographies of unfamiliar foreign players.

＜Ah, let’s begin. Ready…＞

bang!

＜We left. As expected, Jim Hines, it bounces like a bullet.＞

＜It stretches out. It stretches out.＞

＜Good. It has already hit more than 1m.＞

＜8 seconds… 9 seconds… 9 seconds 95!＞

＜This is a world record! He broke the 10-second barrier in men’s 100m and horse at the Mexico Olympics!＞

＜Awesome. The men’s 100 meters is also a world record. This track is also the work of Daesei Construction, right?＞

＜Yes. That’s right. An American athlete set a new world record wearing Korean sneakers on a track built by Korea. Long live the Republic of Korea!＞

＜I hope that one day our athlete will wear those shoes and win a medal. Will that day come soon?＞

＜Someday it will come. Even if short distances are difficult right now, long distances or marathons have a good chance.＞

“Wow, our trend also appears on the Olympics!”

“Yes, there are more shoes than players.”

Employees looked proud while watching TV.

I couldn’t hide my pride either.

Moreover, unexpected luck followed.

The Nike logo was just caught on the screen in the 100m final, but the high jump was literally awesome.

Among American athletes, a high jumper named Richard Fosbury created a sensation with his back jump.

Until then, the high jump technique was dominated by the frontal jump (Scissors jump) or the belly roll (belly roll over).

The frontal leap is a technique of jumping over the bar by kicking the legs like scissors, and the masked leap is a technique of jumping over the bar toward the belly as if lying down.

But Fosbury crossed the bar on his back, looking up at the sky.

Whenever Fosbury did the first and second trials, due to the nature of the back jump, his shoes continued to be close-up.

Eventually, with a height of 2m 24cm, he broke the previous world record by 6cm and decorated the sports headlines of numerous newspapers, and the Nike logo shone clearly instead of the player’s face.

“Boss, you must be happy. Everyone was in a frenzy about the amount of orders coming in to the head office.”

“Ha ha, good. However, the day will come when the mainstream Joseon will make more money than that. Not long left”

“Indeed, it is. Rather than selling small clothes, don’t we have a room? Then I’ll go on the night shift, boss.”

The deputy director Danchunggi gave me a smirk, saying, “Going on,” and then went out to the yard.

To be honest, this Olympic special far exceeded my expectations.

Phil Knights sold and repurchased products at a much higher unit price than I expected, so the net profit was 12 million dollars.

Even after subtracting all the profits from the Phil Knights and the cost of the event, he made a huge amount of money.

in this short time.

In particular, this special was expected to continue until the first half of next year.

Even after the Olympics, the enthusiasm for the products that were packaged in premium quality and released to the US market did not seem to cool down.

With Phil Knights’ marketing skills added to the quality of the product, the momentum seemed to literally eat the market.

“Boss, this is an urgent call from the headquarters.”

“Oh yeah. I see.”

Someone from the office came running to tell me that Bill Bain had a call.

If he was looking for it, the emergency call was right.

Because the usual report was written by telex or in person.

“Hello, I changed my phone.”

＜Yes, boss. This is an urgent report. A plaque of appreciation and a proposal arrived from the president of the Olympic Organizing Committee in Krak, Mexico.＞

Why is Chairman Krach?

You can say it’s a plaque of appreciation, but a proposal?

The track construction was completed successfully, and all payments were received.

“What is your suggestion?”

＜He wants us to develop an official ball for the next Mexico World Cup.＞

“The official World Cup ball?”

＜Yes, it is. P.S. It says that they would like to have an additional consultation.＞

If there is an additional agreement, it seems that he intends to entrust him with soccer balls, soccer shoes, and soccer uniforms.

I think you’re thinking of taking over as World Cup president with that?

To Krak, I was an unexpected nobleman.

Somehow, I ended up making a lot of money at the World Cup.

“Good. Come to the negotiations, and with your reply, send me a souvenir package mainly of our samples.”

＜Yes, I understand. boss.＞

There’s nothing wrong with making connections in Mexico.

“Is that all?”

＜No. There is one more.＞

Then it is.

There was no reason to report something like this over the phone at this hour.

“Tell me. What is it?”

＜The Blue House, no… to be precise, I want to meet you at the secretary’s office.＞

“In the secretary’s office?”

Yes, I wanted to know when the Blue House would call me.

Everyone knows that he made a lot of money.

By the way, it’s a little surprising that the secretary’s office came out, right?