Sports Marketing Real Madrid Case

In: Business and Management

Submitted By lovelovecesc
Words 6950
Pages 28
Real Madrid Football Club: A New Model of Business Organization for Sports Clubs in Spain
World soccer clubs, constrained by their inability to increase their income from their traditional businesses, have begun to adopt strategies to transform themselves into modern sports and media companies. Under the recent presidency of Florentino Pérez, the Spanish football club Real Madrid presents a good example of the application of this expanded vision. One of the fundamental pillars of this model has involved designing and implementing a new marketing strategy aimed at strengthening the value of the club's brand. The adoption of this model has resulted in a significant increase in income from marketing. Undeniably, in this area, Real Madrid has become the leader in world soccer. © 2006 Wiley Periodicals, Inc.


America. The key aspect of this conception resides in the idea that sports clubs can behave as brands, and the essential principle is to exploit the sponsorship plan and sale of products, together with the commercialization and sale of audio-visual and television rights of sporting events. In soccer, Manchester United in the United Kingdom was the pioneer in commercially exploiting its brand on an international level, and this strategy was highly successful in the 1990s. During the early years of the 21st century, however, Real Madrid has gained the position of “commercial leadership” within the world soccer market. Thus, during the 1990s, the soccer industry has been transformed into a new business reality that has transformed the sport, converting it into one of the most profitable entertainment and leisure businesses around the world. Szymanski, an economist specialized in the football industry, estimated that globally the soccer industry generates $170 billion per year. Indeed, this industry…...

Similar Documents

Real Madrid Marketing

...Introduction Real Madrid received the award of the world’s most successful soccer club due to its multiple wins: thirty one national leagues, nine European Cups and sixty other championships. Although Real Madrid is currently ranked forth of top fifteen professional soccer clubs in 2003, followed by Manchester united (1st place), Juventus (2nd place), AC Milan (3rd place). (See Appendix: Figure 1) To catch up with competitors, Real Madrid set three interrelated goals: (1) increase financial flexibility; (2) assemble a team of top players; and (3) expand Real Madrid brand across a variety of channels. This paper will address the goals of developing local players to save the enormous forward fees and to soften financial bills, and enhancing mobile & social media to expand internationally and to increase number of Real Madrid fans as well as revenue. SWOT Analysis The club recognition, number of fans and number of victories are the most important strengths of Real Madrid. On the other hand, the team strategy of acquiring the top soccer players can be seen as a weakness in that the club spends millions of euro to focus on team’s performance. However, the team should maintain this acquisition strategy but also focus on developing in a more efficient way as Brazilians and Argentina soccer teams do. The development of new talents and extension of the recognized brand to other soccer-related activities are opportunities for Real Madrid that could improve their revenue. The......

Words: 1552 - Pages: 7

Marketing Real People, Real Choices

...c MARKETING 7E People real Choices This page intentionally left blank MARKETING 7E People real Choices Michael R. SAINT JOSEPH S SOLOMON ’ U OLLINS NIVERSITY Greg W. MARSHALL R C STUART OLLEGE Elnora W. THE UNIVERSITY OF SOUTH CAROLINA UPSTATE Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Melissa Sabella Director of Editorial Services: Ashley Santora Editorial Project Manager: Kierra Bloom Editorial Assistant: Elisabeth Scarpa Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Anne Fahlgren Marketing Assistant: Melinda Jensen Senior Managing Editor: Judy Leale Project Manager: Becca Richter Senior Operations Supervisor: Arnold Vila Creative Director: Jon Christiana Senior Art Director: Blair Brown Text and Cover Designer: Blair Brown Media Project Manager, Production: Lisa Rinaldi Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management: S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Printer/Bindery: Courier/Kendalville Cover Printer: Courier/Kendalville Text Font: Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this......

Words: 227255 - Pages: 910

Sports Marketing

...  Sports Marketing Association - 6th Annual Conference July 17, 2008 Gold Coast, Australia. 1 Brand Strategy for Sporting Teams By Charlie Quirk Brand Strategist at Tait  6 th Annual ConferenceJuly 16-20, 2008Book of PapersAbstract   In the twenty first century, sporting teams around the world are experiencingunprecedented levels of fame due to technology like the Internet and satellite TV. Assuch, teams can no longer rely on mobilizing fan support and sponsorship capital intheir home market alone. In the same way corporations are guided by a compelling andoriginal idea that forms the basis for their brand strategy, so too must sporting teams.The purpose of this paper is to draw parallels between “conventional” brands like Appleand Disney, and to articulate what sporting teams can learn from those companies inthe management of their own brands. Brand Strategy For Sporting Teams By any definition, sporting teams today are big businesses. Harvard Professor StephenGreyser has observed that in recent times we have seen teams migrate from the sportspages to the business pages and, now sometimes, to the front page (Comeau, 2005).Like other large corporations, teams employ great numbers of people, generate profitsand losses, all the while seeking to achieve success against certain performancemetrics. And like other businesses, they have to perform well, remain financially viableand satisfy several stakeholders who have a financial interest...

Words: 3168 - Pages: 13

Prince Sports Case Study

...M2. Case Study Analysis - Prince Sports, Inc. Quick and fast changes in an environmental market place such as social growth (globalization and the growth of social networks), economic instability (crises), industrial progress, fast growing competitive world and firm marketing regulatory mainly have an effect on the work of most of marketing companies or marketing and brand image divisions of the companies. In order to put into practice a winning marketing plan or a boost in sales and customer awareness companies have to stay in pace with the new marketing environment and take into thought every likely detail that might help out or ruin the image of a company or product. This case study will examine the marketing principle and vision in the background of Prince Sports, Inc. The main emphasis of the case study is Prince Sports, Inc segmentation and positioning. Prince Sports is a racquet sports company, their brands includes Prince (tennis, badminton, and squash), Viking (platform/paddle tennis), and Ektelon (racquetball). Its whole line of tennis products alone is quite remarkable: more than 150 racquet models; greater than 50 tennis strings; in excess of 50 footwear models; and numerous sorts of bags, attire and additional accessories. (Marketing, Eleventh Edition, Kerin, p.239). With the rise of the interest to tennis among different demographics Prince Sports perceived a necessity to target every possible type of consumer. Being in business from 1970 Prince......

Words: 1055 - Pages: 5

Sports Marketing

... * DAY1 * What is Sports Marketing? It depends! (IV League Schools say!) * We need to influence and Persuade! * Sponsorship “getting the bat in the hands of the right player” * IMGbiggest sports marketing agency in the world, Mark McCormick, said “it is putting a celebrity/athlete with a product/company”….and that is it. * Louis Shefield* wanted NBA basketball team in Miami (Miami Heat). He said “its easy to fill a stadium once, but each time its hard”. He saw that basketball would get bigger than it was and it needed to go to Miami. He said sports marketing is just about “Sagacity.” * Sagacity A vision for the future. Example by Louis, Nike taking swoosh off bottom of shirt and putting it on the chest. And, the only reason we know about Ted Turner is because of exposure. Active and innovate an idea. Dictionary Definition: foresight, discernment, or keen perception; ability to make good judgments. Seeing a trend and executing it! Execute your idea and fulfill what you start! * Tommy Karam Wanted to turn LSU scoreboard into a marketing opportunity by putting ads on it using triplicates (3 rotations: purple, purple and tiger stadium, then purple, tiger stadium and a company’s name). He thought this would be sagacity! He spoke with a man at Exxon and he liked Karam’s idea and Karam sold the sponsorship to Exxon for $250,000 per scoreboard (when they were going for around $300,000). Karam later found out that corporate signage is against University......

Words: 2937 - Pages: 12

Sports Marketing

...SPORTS MARKETING AND BRAND BUILDING Marketing Management - II Prof. Sanjay Patro Section C - Group 5 George Antony B13148 Mayank Siotia B13156 Vijender Kaur B13180 SPORTS MARKETING AND BRAND BUILDING An Introduction Not that long ago, a company that wanted to reach 20 million young Americans could do it easily—place an ad on Friends on Thursday night. With the proliferation of media types and channels, though, such large and predictable audiences are few and far between. Among all the media touch points, for example, cable has the highest share—34 percent—and of course cable audiences are highly fragmented. Broadcast television gets only 20 percent. Getting people’s attention at all is difficult enough; getting them to pay attention is well-nigh impossible. Sports is the exception. Because it is live, and because there is so much free publicity around major events— everything from water-cooler gossip to blogs to newspapers—sports breaks through the static. It is one of the few areas (music and fashion are others), where people are admittedly passionate. In that passion is opportunity for marketers. Because fans are already invested in the event or their team— think how insufferable New York Yankee or Manchester United fans can be—companies can tap into these emotions to connect with consumers and build an emotional bond with them. And because sports are best watched live, it’s harder to skip the ads, as Tivo- or DVR equipped viewers increasingly do. To begin with,...

Words: 1325 - Pages: 6

Caso Real Madrid

...NT es to RN CO rta ip 7 O r . fe sc ág u P s JO 9 771130 875004 Control de Gestión [ ] El mapa estratégico del REAL MADRID: el arte de construir una marca La llegada de Florentino Pérez al Real Madrid supuso un antes y un después para el centenario club blanco. La transformación de una institución deportiva en un concepto más amplio de empresa de espectáculos trajo aparejado un incremento en los beneficios, una nueva versión del liderazgo y la reinvención del concepto de competitividad de Hoyos, Kimio Kase, Carlos Marti Sanchís, , Ignacio UrrutiaCentro de Sport Business Management - IESE BusinessMagdalena Opazo Bretón School 10 Estrategia Financiera Nº 231 • Septiembre 2006 Control de Gestión El mapa estratégico del REAL MADRID: el arte de construir una marca L a definición de Balance ScoreCard (BSC. Kaplan y Norton, 1996) es un instrumento que traduce la misión y la estrategia de una organización en una amplia colección de métricas de acción e indicadores ( Gráfico 1), y que posteriormente proporciona la estructura necesaria para servir como instrumento de control y de sistema de implantación de la estrategia. Para llegar a esta conclusión, hemos ido contestando a las preguntas que nos surgían con los discursos del expresidente del Real Madrid Florentino Pérez. un hecho palpable”. Ser el equipo del siglo XXI se consigue con el éxito deportivo y económico, logrando ganar campeonatos y siendo......

Words: 4055 - Pages: 17

Real Matrid Case Summary

...Real Madrid Summary Company: Real Madrid Strategy: 1. “Professionalize” the management team 2. Exploit the enormous value of the Real Madrid brand and players’ images to increase revenues. 3. Impose financial discipline to ensure that the team did not become overextended. Key to this discipline was limiting the players’ expense. With the new strategy of Zidanes & Pavones, Real Madrid would sign one star player per year and focus on the development of players through the farm system or cantera. Issues: 1. On the brink of bankruptcy. 1990’s Crisis: (Growth in revenues from TV rights; Greater investment of private personal fortunes; free-agent market) 2. Clean the debt by selling a training ground 3. Key to transformation would be modernization of its management. * Restructured the organization into four main units. * Implementing a variable pay structure. 4. Leveraging the Brand * Widen the scope of the brand by targeting international markets * New code of conduct promoted the values of honesty, transparency, and concurrence. * Three ways to exploit the brand:1. Sponsorship, image rights, advertising; distribution, merchandising, and licensing; and internationalization and new technologies. * Zidanes & Pavones 5. The Budgetary Process * Annual plan& midterm plan * Guidance of the strategic objectives and the assumptions provided by the corporate manager. * Revenue: Real Madrid transformed some......

Words: 287 - Pages: 2

Sports Marketing

...skill to where she started getting noticed as a tennis prodigy. She put her first mark in tennis as a thirteen year old when she won The Girls 16-and-under Eddie Herr Championship. 2. From the case how does the Business of Sports impact players’ careers (outside their sports activities)? Establishing a brand is key in any athletes career, in the case of Maria Sharapova she had ‘team sharapova’ that helped her build her brand. Like in Sharapova’s talent and winning are at the forefront of it all, without it it is impossible to build a power brand. Maria had all the talent in the world and winning the 2004 Wimbledon she exploded as tennis superstar on the court but also off the court as Max Eisenbud said “my phone did not stop ringing”. An athlete takes that winning image and sales it to corporations as the perfect person to the face of their brand. Athletes apart from their winning on the court, they have endorsements, licensing deals and merchandising the players earn huge amounts of money in the business of sports. Every endorsement is carefully chosen to fit and build an athlete’s power brand and that image that is built is what companies invest on when they sign an athlete to sale their brand. 3. The case spends several pages on the Tennis sector of Sports. Summarize in a few paragraphs the key elements of Tennis industry. 4. What part did Max Eisenbud play in the development of Maria’s career? Max Eisenbud played an enormous part in......

Words: 935 - Pages: 4

Marketing Plan on Real Estate

...Marketing plan on real estate company ‘UNITECH’ | Module – GMSI 579 | MODULE LEADER: MR.ROHIT SINGH | | GROUP MEMBERS:Ankur GuptaRuchika AgrawalRuhi SharmaSandeep SinghShreya Jindal | | | | EXECUTIVE SUMMARY: In any business environment where there is cut throat competition and where number of organisation are chasing the same dollars, volunteers and business sponsors, to stand out among the crowd is critical to success. UNITECH Builder is one of the largest real estate Developer in India with around US$ 5 bn market capitalization. Turning many barren landscapes into landmarks UNITECH has an experience of 20 years in real estate development. It comes under the top 50 real estate companies in the world and boasts development such as South City, Nirvana Country, Cascade, The Close and many more remarkable developments are there. Reliance and commitment is the cornerstone of Unitech’s corporate philosophy and combined with an exceptional insight that how people aspire to live. The first real estate company in India is Unitech which has achieved the ISO 9001-2000 certification for planning, Marketing and Construction of real estate in the National Capital Region. Unitech is committed to develop energy efficient green buildings and is also a registered member of the Indian Green Building Council. A great experience in developing prestigious projects across India an Unraveled expertise makes the Untiech the niche of conceptualizing and delivering world......

Words: 11336 - Pages: 46

Basics and Perspectives of Sports Marketing

...Basics and Perspectives of Sports Marketing Table of contents Index of figures ........................................................................................................ III 1. Differentiation and evolution of dedicated sports marketing ........................... 1 1.1. Historical development and modern definitions ............................................... 1 1.1.1. Historical development ........................................................................... 1 1.1.2. A broader definition ............................................................................ 3 1.2. Distinctiveness of the sports market compared to traditional markets ............. 3 1.2.1. Characteristics of the sports market ................................................... 4 1.2.2. Characteristics of the sports product .................................................. 4 1.2.3. Characteristics of the sports consumer .............................................. 5 2. Defining a marketing mix ..................................................................................... 5 2.1. Analysis phase and market segmentation ....................................................... 5 2.2.1. The traditional four p’s ........................................................................ 8 2.2.2. Additional domains of sports marketing ............................................. 9 3. Current Developments and future perspectives ............................................

Words: 3800 - Pages: 16

Real Madrid - Sports Marketing

...------------------------------------------------- Real Madrid – 1st Case Assignment The following answers are based on the case materials “Real Madrid Club de Futbol”, “Real Madrid Club de Futbol in 2007: Beyond the Galacticos” and the links in the footnotes. 1. What differentiates Real Madrid from other Soccer clubs? One thing that differentiates Real Madrid from other top soccer clubs is that Real Madrid is owned by its members while most other top club is owned by shareholders (investors). Another difference is that Real Madrid were quite early to realize the importance to serve as a marketing vehicle all over the world rather than just a soccer club compared many other soccer clubs. This was especially under the management of Perez Real Madrid as a brand and business got in focus. This meant that Real Madrid became a real business and that the management managed Real Madrid as a business rather than just a soccer club. The performance of Real Madrid as a soccer club is still key to the performance of the business though. 2. What provides the revenue stream from which the club benefits? About one fourth of the income in most top clubs is generated on match-day from such things as sponsorships, television rights and merchandising revenues. Revenue depends largely of the clubs participation and performance in major competitive events such as the European Champions League for instance. Below are listed four types of revenues the club generates and what it basically......

Words: 1470 - Pages: 6

Prince Sports Case Study

...Prince Sports Case Study Valerie Bodner Marketing Principles Dr. Awesome October 17, 2015 Abstract This case study explores different marketing techniques utilized by Prince sports. Research is conducted by utilizing marketing concepts retrieved from various publications as well as Prince sports website. Evolution in technology, joint ventures and adoption of different marketing techniques proved to be successful for Prince sports. There was an evolution of marketing all together at the height of Prince sports success with the introduction and adoption of social media in the marketplace. Prince sports ability to adapt and make changes based on consumer feedback showcased their ability as a company to bounce back after hard times and re-energize the brand. Organizations utilize technology in marketing strategies as a way to ensure that they are able capture all audiences. Social media marketing and innovation are essential components that organizations use today. In today’s society, social media is a given as a marketing tool to most companies. It increases more awareness about a brand as well as reaches a broader, more global audience. Successful organizations evolve their product or service to align with market trends and segments. Prince Sports is an example of an established company that has innovated its products, utilized grass roots marketing techniques and social media to target younger......

Words: 1304 - Pages: 6

Real Madrid Marketing Hbs Case

...REAL MADRID CASE STUDY Summary Real Madrid is one of the most storied sports franchises in the world. It is one of the few sports teams with international appeal to a very broad fan base. This case delves into how Real Madrid transitioned from a good soccer team with a winning history into the global sports juggernaut we know today. We first examined Real Madrid’s revenue streams and found that from their inception through the 1970s their business model was based almost entirely on their ticket sales. After the 1970s up until 2003 they had some media rights, a small merchandising department, and some other negligible streams of income. It was in 2003 that team President Florintino Perez decided to make Real Madrid into a special type of sports team that was akin to large global corporations like Walt Disney. After reviewing the facts we agree with the decision to shift the business model into its current position (as of 2003). After identifying and examining the lifetime values of different consumer groups which are listed below under the “Question 2” headline, we have found that each group has different desires in order to be completely satisfied. However, each group has a common denominator that will maximize utility across all segments and that is winning. A winning team sells more merchandise, can demand higher advertising revenues, and can attract the best players for less money which also leads to winning more often. We also quantified two types of......

Words: 3405 - Pages: 14

Sports Marketing

...Business 115 6 August 2006 Sports Marketing Marketing has become a vital part of sporting events in our country. When market researches use the four P’s to marketing; product, price, place and promotion they are more likely to be successful. NASCAR is a good example of a sporting event that spends a lot of money in market segmentation and marketing research. By doing so, NASCAR is able to find their target market and design their advertising for that particular market. There are many marketing opportunities available for sporting venues. Often we will see commercials advertising the next competition day on television or local areas will advertise for their specific venue. We also see billboards, magazines and newspapers advertising an event or an athlete. There is a lot of money to be made in advertising. According to an article written by Nickels-McHugh-McHugh, NASCAR decided early on that corporate sponsorship was vital to long-term growth because market research showed that NASCAR fans are three times more likely to buy NASCAR sponsors’ products than fans of other sports. Using the four P’s to marketing will ensure a company can use best marketing strategies as possible. Evaluating the product you are selling is the first step in marketing. You must have a product that people want and are willing to spend money. In sports, for example, the product is the sporting event. The product or event must be pleasing to the consumer so that they will continue to...

Words: 758 - Pages: 4