The 4.6B RMB business potential behind 200 marathons, 2 millions marathoners

1. China: The (Healthy) Business of Running
The 4.6B RMB Business Behind a Potential of 200 Marathons, 2M Marathoners
Luca Destefanis |

2. 1. Human Potential
2. Business Levers
§ Customer Excellence
§ Revenue Drivers
3. Business Potential
Luca Destefanis |

3. 1. Human Potential
China Potential: 200 Marathons, 2M Marathoners
#marathons / China
Nation
$B GDP* Potential # Marathons
Japan 10,9 min 86
Spain 23,5
USA 27,5 benchmark 217
France 35,7
Italy 38,9
England 41,3
Canada 50,0
Netherlands 71,4
Switzerland 78,9
Germany 109,3 max 864
Number of 86 217 864
Marathons / Year
min Benchmark (US) max
Number of 1M 2M 3M
Marathoner/ Year
#r runners / China
Nation
1000 ab.* Potential # MArathoners
Spain 0,7 min 940.000
Canada 0,7
UK 0,8
Italy 0,9
Japan 1,3
USA 1,4 benchmark 1.900.000
France 1,5
Germany 1,6
Netherlands 1,9
Switzerland 2,2 max 3.000.000
Source: ARRS – Association of Road Racing Statisticians, 2008, Wikipedia; Open Run Analysis 2010 Luca Destefanis |

4. 2. Business Levers: Customer Excellence
Excellence in 25 Moments of Truth Across across Runner Experience
Runner Experience
1 2 3 4 5
Research Registration Before the Run Aer the
Race Race
ü Detailed information ü Clear and simple rules ü Toilets available ü Overall quality of ü Medal
timely updated of registration ü Hydration available course ü Gis
ü History, previous ü Smooth online ü Changing Rooms easy ü Overall quality of ü Changing Rooms and
edition numbers and registration process in to access restoration showers easy to access
key facts addition to physical ü Overall entertainment ü Overall entertainment, ü Entertainment
ü Easy access to web and one to get runners excited, especially important (especially important
all the key contacts: ü Different payment family members happy, aer km 35 for family members
mail, phone options: and aract new ü Medical assistance and friends waiting for
ü If registered to ü Immediate interested parties readily available athletes)
previous edition, confirmation of ü Safety (i.e. no cars)
monthly newsleer registration ü Timely runner info
from organization ü Easy and quick bib available through web
commiee collection and app
ü Tourist info: venues, ü Rich and entertaining
places to stay… expo
Luca Destefanis |

5. 2. Business Levers: Revenue Drivers
4 Key Revenue Drivers
Registration! Sponsorship!
Merchandising! Indirect!
5 Luca Destefanis |

6. 2. Business Levers: Revenue Drivers
4 Key Revenue Drivers - Registration
Differentiation § Enrich marathon with additional entertainment
Registration § Link to fund raising activities
Knowledge § Define Media Partnership
§ Leverage Social Network
Sponsorship
§ Maintain an open communication channel (i.e. newsleer) with all
the participants
Runner Experience § Excellence in 25 Moments of Truth Across across Runner
Merchandising Experience
Indirect
6 Luca Destefanis |

7. 2. Business Levers: Revenue Drivers
4 Key Revenue Drivers – Sponsor
Length § Entertainment activities starting on Friday, to give more visibility
Registration to Sponsors and more fun to your customers
News § Create news out of all your events and the marathon
§ Engage with media partners and leverage social media
Sponsorship
Exclusivity § Balance number with quality of sponsors
§ Personalize
§ Clearly differentiate sponsorship levels
Merchandising
Measurability § Provide your sponsors with tangible benefits and key parameters
to measure their ROI
Indirect
7 Luca Destefanis |

8. 2. Business Levers: Revenue Drivers
4 Key Revenue Drivers - Merchandising
Product § Develop partnership with recognized brand specialist
Registration (and Services) § Identify best supplier for all race related services (photo, video…)
Distribution § e-commerce, in the marathon website
§ Official Marathon Store
Sponsorship
§ All sport (running) stores in the region
Price § In line with competitors
§ Sale aer event
Merchandising
Communication § Merchandising area in all the newsleers
§ Ad hoc communications developed with key partners
Indirect
8 Luca Destefanis |

9. 2. Business Levers: Revenue Drivers
4 Key Revenue Drivers - Indirect
Registration
Sponsorship
+ Aract family & friends
Merchandising + Let them spend more night in the city
+ Let them shop…
Indirect + … and enjoy city services (transportation, museums, entertainment…)
9 Luca Destefanis |

10. 3. Business Potential
Revenue / Runner (RMB)
From To
400 Registration 600
120 Sponsorship 400
60 Merchandising 320
700 Indirect 5200
1280 6520
Luca Destefanis |

11. 3. Business Potential
4.6B RMB Business Potential
min benchmark max
Number of 1M 2M 3M
Marathoner/ Year
Split 80%
X 20%
Spending /
1280 5620
Runner (RMB)
= =
Spending
2B 2,6B
(RMB)
Total Spending 4,6B
(RMB)
Luca Destefanis |

12. thanks
Luca Destefanis |