The background of this case is set with the Beijing Olympic Games 2008 which were recently held in China. The case focuses on the multinationals’ sponsorship of the Games as a lucrative marketing opportunity to expand their reach in the Chinese market. The companies which became official sponsors of the Games faced protests by the Chinese masses due to human rights issues in Tibet, and the earthquake in Sichuan province in China. The main focus of the case is the contribution of sponsors towards the Olympics in Beijing, and the challenges faced by them in China due to the country’s domestic scenario. The case also highlights the aspect of ambush marketing which is a major problem for sponsors, and the steps taken by the Beijing Organising Committee for the Games to protect its official sponsors from ambushers.

Under Armour, the sports clothing and accessories company founded by Kevin Plank in 1996, made football t-shirts, designed to maintain body temperature and enhance performance of players. By 2006, the company had generated revenues of $467 million. In May 2008, Under Armour decided to extend into the sports footwear segment by launching performance training footwear and introduced innovative products in spite of the global economic downturn. This brought Under Armour into direct competition with leading players like Nike, Adidas and Reebok. In addition, Under Armour planned to tap markets like Europe and Asia. The company grew by 41% in 2007 compared to 53% in 2006. But, Under Armour’s penchant for innovation to weather the global economic downturn and sustain its growth, especially in the US remained to be seen.