This document appears to be a strategic marketing report for Liverpool Football Club. It includes a situational analysis covering a PESTLE analysis, industry analysis using Porter's 5 Forces and a forecast, market analysis of domestic and global markets, competitor analysis, financial analysis, customer analysis, and an internal analysis. It also includes sections on objectives and strategy, tactics, and references. The overall goal is to develop a 5-year strategic marketing plan to give the club strategic direction and competitive advantage by clarifying its mission, vision, and value proposition.

1. Emma Fisher (11050499)
Charlotte Ellis (11016377)
Alasdair Joe Hymers (11055728)
David Atkinson
Strategic Marketing Management
26th
January 2015

2. 2
Introduction
This report is being conducted as a strategic marketing consulting team, working on a contract for Liverpool
Football Club (LFC) to devise a 5 year strategic marketing plan.
Research conducted by LFC in 2014 highlighted: “The mission, vision and value proposition of the business
is at worst, non-existent and at best, difficult to decipher.” (MMU, 2014: p.23) Therefore, the overarching
goal of this report is to formulate a 5 year strategic marketing plan in order to give the club strategic
direction in order to help gain strategic competitive advantage.

3. 3
Table of Contents
Introduction.......................................................................................................................................................2
1.0 - Situational Analysis...................................................................................................................................3
1.1 - PESTLE analysis....................................................................................................................................................................................4
1.2.1 Industry Forecast.............................................................................................................................................................................5
1.2.2 Porters 5 Forces...............................................................................................................................................................................6
1.3 - Market analysis........................................................................................................................................................................................6
1.3.1 Domestic market analysis...........................................................................................................................................................6
1.3.2 Global market analysis..................................................................................................................................................................7
1.4 Competitor analysis..................................................................................................................................................................................9
1.4.1 Strategic Group Analysis...........................................................................................................................................................10
1.4.2 Market positioning .........................................................................................................................................................................10
1.4.3 Porter’s Generic Strategies ......................................................................................................................................................11
1.5 - Financial analysis.................................................................................................................................................................................12
1.5.1 Total revenue by revenue streams.......................................................................................................................................12
1.5.2 Average league position over total revenue....................................................................................................................12
1.5.3 Total revenue over 5 years.......................................................................................................................................................13
1.5.4 Key factors and strategies that affect club revenues..................................................................................................13
1.5.5 Total wages as a percentage of revenue over 5 years..............................................................................................14
1.5.6 Revenue per ticket sold (RPTS)...........................................................................................................................................14
1.5.7 Financial data...................................................................................................................................................................................15
1.6 Customer and consumer analysis..................................................................................................................................................16
1.6.1.Domestic Market............................................................................................................................................................................17
1.6.2 International Markets...................................................................................................................................................................19
1.7 - Internal analysis....................................................................................................................................................................................21
1.7.1 Dynamic Capabilities Value chain: Brand Heritage and Community of Fans................................................21
1.7.2 BCG Product portfolio..................................................................................................................................................................22
1.7.3 Sounders wheel..............................................................................................................................................................................22
1.7.4 Prioritised SWOT Analysis......................................................................................................................................................22
1.8 - Critical issues.........................................................................................................................................................................................23
2.0 - Objectives and Strategy..........................................................................................................................23
2.1 - Mission Statement, Corporate and Marketing Objectives ..............................................................................................24
2.1.1 LFC Mission Statement 2015..................................................................................................................................................24
2.1.2 Corporate Objectives...................................................................................................................................................................24
2.1.3 Marketing Objectives...................................................................................................................................................................24
2.2 - Strategic options ...................................................................................................................................................................................25
2.3 - Strategic evaluation.............................................................................................................................................................................26
2.4 - Justification of chosen strategies.................................................................................................................................................26
2.5 Evaluation and selection of Market segments....................................................................................................................28
3.0 Tactics, Action and Control.......................................................................................................................30
3.1 Tactics......................................................................................................................................................................................................30
3.2 Tactic Selection...................................................................................................................................................................................33
3.2 Action – Gantt Chart.........................................................................................................................................................................34
3.3 Control Statements ...........................................................................................................................................................................35
4.0 References.................................................................................................................................................35
5.0 Appendices................................................................................................................................................46
Appendix 1: Competitor data ...............................................................................................................................................................46
Appendix 2: Club accessibility.............................................................................................................................................................53
Appendix 3: TripAdvisor ratings (stadium visits)- accessed 8th January 2015.........................................................54
1.0 - SituationalAnalysis

4. 4
1.1 - PESTLE analysis
Table 1
PESTL
E Location Factor Positive Implications Negative Implications Opportunities/Ideas
Politica
l
National
Gov ernment set pricing
caps f ollowing av erage
ticket price f or English
f ootball clubs rising by twice
the rate of the Consumer
Price Index (CPI) since
2011. (BBC Sport, 2014 A)
Ticket prices are elastic as there is still
demand ev en with the rise of prices, as we
can see f rom the stadium operating at f ull
capacity and hav ing to be extended
Raising prices alienating
f ans -recent attempts
resulted in f ans holding
protests against prices in
October 2014 (BBC
Sport, 2014 A)
Generate additional match day
rev enue f rom other sources e.g.
f ood v endors, merchandise,
betting
Global
EU- US Trade talks to cut
tarif f s and regulatory
barriers to trade between
the US and EU countries.
Decision coming 2015/16
(Padmanabhan. 2014)
Could add £10bn to the UK economy ,
£80bn to the US and £100bn to the EU
ev ery y ear. Break down of trade barriers
will make it easier f or commercial activ ity in
US. Increase in economies all around has
positiv e implications including higher gdp -
f oreign f ans more likely to trav el to watch
matches, and increase spend on other
products, TV and merchandise
Focus on Dev eloping the
brand ov er seas could
alienate the core market
in the UK.
Increasing commercial activ ities
ov erseas, attract f oreign f an's to
match day , utilise FSG's
inf rastructure to capitalise on
commercial opportunities in the
US.
Econo
mic
National
Stagnant wages in the UK
(Inman, 2014)
Lower ov erhead costs in the running &
maintenance of Anf ield
Fans more likely to: 'cut
back spend on
merchandise and trading
down f rom tickets to TV'
(MMU, 2014: P.16)
Make products and serv ices more
accessible on multiple lev els of
income. E.g. Tiered ticket pricing
scheme, pricing promotions on
LFC TV, improv e match day
experience
National
Interest rates set to stay at
a record low of 0.5%
(Stewart, 2015)
Sales of LFC Credit Cards are likely to
benef it due to the higher spending ov er
sav ing. Exchange rate is likely to
depreciate, making the UK more attractiv e
to global audience.
Fans that rely on sav ings
to liv e of f e.g. 'Thermos in
row D' may result in lower
disposable income
Increase match day attractiv eness,
insensitise f oreign v isitors,
promote LFC Credit card
National
Inf lation rates at a 12 y ear
low (BBC, 2015a)
Operating costs f or LFC less likely to rise
as f ast. Fans weekly household disposable
income will also benef it
Dif f icult to raise prices of
tickets
Increase Match day rev enue per
ticket sold by encouraging time
spent at stadium and more
opportunities to spend e.g.
Subsidised transport that arriv es
early , increase ref reshment
outlets, f an zones
National
UK retail sales rose by 0.8%
in October as prices f ell
(BBC, 2014a)
Elasticity of demand shows that reduction
in prices can increase sales
Risk of reduced margins
and sales.
While this isn't necessary f or ticket
prices, the model could be applied
to subscription serv ices and
merchandise. Pricing promotions
on LFC TV subscription and
merchandise during recruitment
strategies
Global
Emerging markets: China
and India (IMF, 2014)
High lev el of existing f ans in both countries
(Section: 1.6.2) with good air transport
connections to both.
Distance f rom the UK
means there is low
opportunity f or ticket sales
Merchandise online and of f line,
subscriptions f or LFC TV, Of f icial
Partnerships e.g. of f icial noodle
sponsors, tourism
Global
Currency rates: Pound is
weak against the dollar
(Financial Times, 2014)
Encourages f oreign inv estment f rom the US
in the UK
Increases cost of
inv estment/activity in the
US
Encourage tourism f rom the US
with trav el incentiv es, LFC hotel
packages, raise awareness v ia
pre-season tours and social media
activ ity .
Social Global
As the economy improv es,
so will consumers demand
f or greater engagement
(MMU, 2014: P.16)
Potential to build closer relationship with
f ans, increasing lif etime v alue. Potentially
higher rev enue with f ans: 'willing to pay '
(MMU, 2014: P.16) f or higher engagement.
Cost of implementing and
maintaining f an
engagement. Risk of
alienating f ans and
causing strategic drif t
through abnormal
engagement methods.
Fan Zones, sponsorship activ ities
in stadium, global branded
partnerships
Global
Visit Britain reported
750,000 v isitors to Britain in
2010 f or a premier league
match, spending around
£600m. (MMU, 2014: P.11)
Foreign v isitors are likely to stay longer and
hav e higher consumption on LFC products
including merchandise and stadium tours
Top 5 countries reported are:
Norway , UAE, Japan, China, Aus
(MMU, 2014: P.11) Targeting
activ ities include trav el incencitives
and place marketing of Liv erpool
Techn
ology
National
Improv ed internet
inf rastructure: Three aim to
cov er 98% of the UK with
4G by the end of
2015(Hopping, 2014)
This will increase mobile usage amongst
consumers, benef icial f or LFC apps, social
networking, and m-commerce and make it
ov erall easier to touch f ans.
It is unlikely that it will
hav e a signif icant impact
in the stadium due to the
phy sical barriers of
concrete and metal
Increase Wi-Fi cov erage in Anf ield.
Increase digital presence and user
experience
National
Digital v iewing of matches
increasing (Dav ies, 2014)
"Die-hard sports f ans are unlikely to ditch
TV subscriptions any time soon" (Dav ies,
2014)
"Others may well be
tempted to (ditch TV
subscriptions) as
subscription-f ree serv ices
improv e, smart TVs enter
more homes and more
people use paid v ideo
streaming
serv ices.”(Dav ies, 2014)
Enrich of f ering of subscription TV,
of f er incentiv es to join
subscription, explore alternativ e
routes of broadcasting, make
matches more accessible v ia
subsidised transport and tickets.
Global
Spend on mobile ov ertaken
desktop (The Guardian,
2014a)
With "ov er half of e-tail traf f ic coming f rom
mobile" (The Guardian, 2014a) consumers
are spending increasing amounts of time on
mobile, and conf idence is growing in their
dev ices
It is more dif f icult to trace
f raudulent activ ity when
pay ment has been made
v ia a mobile dev ice
Increase user experience of
website and enhance social media
ef f orts to reach wider global
audience
Legal Regional Data collection regulations: Limitations to the

5. 5
Priv acy and Electronic
Communications Policy
2003 & Data Protection Act
1998
collection and usage of
date f rom Wi-Fi and other
electronic
communications. Threat
f rom hackers.
National
If new Labour law on club
ownership goes ahead
(Clubs to hav e supporters
on ev ery board) Football
Trusts would need to
become 'Industrial and
Prov ident Societies' and
would be required to meet
certain gov ernance
standards.
Better engagement and communications
with f ans
Could create barriers that
act as a disincentiv e to
the next generation of
owners and directors as
f ans on the boards could
be more likely to access
sensitiv e inf ormation
Global
UEFA Financial Fair Play
(FFP) Rules
Stops 'Financial Doping' of competitors
(Platini, 2014) Stadiums, training f acilities,
y outh dev elopment and community projects
are exempt.
Restricts spending, threat
of ban f rom UEFA
Champions League, f ines,
loss of prize money , point
deductions, ban on
registration of new
play ers f or UEFA
competitions
Capitalise on alternativ e rev enue
streams to counter balance
potential lack of broadcasting
rev enue. Youth dev elopment
opportunities to reduce long-term
play er costs.
Global
"Video streaming leads way
in paid online media"
(Dav ies, 2014)
"People are happy to pay to watch online
through a serv ice and av oid ads." (Dav ies,
2014)
There is potential f or a
serv ice prov ider e.g. Sky /
BT to aggregate all club
games online f ollowing a
similar business model to
Spotif y
Make LFC TV more attractiv e to
subscribers e.g. Increasing
cov erage of ladies & y outh
matches. Loy alty scheme points
linking to subscriptions. Potential
to inv est/acquire a subsidiary that
aggregates all club games and
streams them online.
Env iro
nment
al
Global Climate change ev er rising
Interests raising in env ironmental issues
amongst consumers (Zolf agharif ard. 2015)
More pressure on f irms to
act env ironmentally , by
expanding the stadium,
the C02 f ootprint is larger
and uneconomical
Of f set C02 f ootprint with activ ities
to improv e ef f iciency e.g. increase
recy cling, install solar panels
Regional Local planning permission
Lack of dev elopment
space and planning
restrictions limit f urther
phy sical expansion of
stadium
Activ ities such as LFC Hotel may
need to be dev eloped f urther away
f rom Anf ield
1.2.1 Industry Forecast
The football industry is to expect growth
in revenues in the next 5 years, from
£4,250m (2014/15) to £6,545 (2019/20).
Figure 1 (Mintel, 2014a)
There are five key trends influencing the
industry at present:
1. Premier League Broadcasting
rights remain: “the primary
influence on English football club
revenues.” (Mintel, 2014a)
Deloitte anticipates a jump in
Premier League revenues
expected in 2016/17 as
competition increases between
BT and BSkyB (Mintel, 2014a). When that deal runs out in 2019; there is the possibility that all
Premier League games will be broadcast in: ‘the biggest broadcast revolution since 1992’ (Mullock,
2015)
2. The introduction of UEFA’s financial fair play regulations mean that: “most clubs appear to be
adopting a more financially robust and balanced approach” (Deloitte, 2014c) as previous seasons
have seen average wage prices higher than club revenues. (Mintel, 2014)
3. Match day attendances are forecast growth, with 2013/14 witnessing the highest attendances in 64
years and: “the expansion of stadiums creating potential for further volume amongst Premier
League Clubs.” (Mintel, 2014)
4. The ‘big five’ European Leagues represent half (€9.8bn) of the overall size of the European football
market (€19.9bn) with revenue growth driven primarily by the commercial sources of a few eminent
clubs. (Deloitte, 2014c) In the Premier League, Manchester United, Manchester City and Liverpool
FC established 60% of revenue growth 2012/13. (Deloitte, 2014c)
5. Digital viewing is a major influence on how fans watch the sport, with examples including BskyB’s
Sky Go mobile TV service: “experiencing growth in users from 2.1 million to 3.3 million over the two
years to Q2 2013/14.” (Mintel, Online: 2014) And 14% of 20-24-year-olds who watched the
Figure1

6. 6
2014 FIFA World watched highlights online, compared to 21% who did so on television (Mintel,
Online: 2014)
1.2.2 Porters 5 Forces
This model has been adapted to appropriately represent the
opposing values of the determinants of the two supplier groups
identified. Analysis was carried out on each force by identifying
and ranking key issues relating to each force, and issuing each
with a ranking of 0-5 (0=No threat, 5 = High threat)
From the analysis, the strongest threats identified are the:
‘Determinants of supplier power (Players)’, ‘Threat of substitutes’
and: ‘Rivalry amongst firms’. The following strategic marketing
5-year plan aims to reduce the threat of these three
dominant forces.
1.3 - Market analysis
The football market to Liverpool Football Club (LFC) can be analysed by the domestic and global markets.
1.3.1 Domestic market analysis
British Premier League (BPL) Market analysis:
The market is valued at £4,150m and forecast to rise to £6,545m by 2019/20. (Mintel, Online: 2014) The
UK’s football market is in mature growth, (figure 3) currently at 5.7% (Mintel, Online: 2014 REF).
There are five key trends influencing the industry at present, these include:
1) BPL Broadcasting rights anticipating a ‘broadcasting revolution’
2) UEFA’s FFP rules restricting: ‘financial doping’ (Platini, M, Online: 2014)
3) Anticipated match day attendance growth following multiple clubs investing in stadium expansions
4) Revenue growth in the league is dominated by LFC, MCFC and MUFC (Deloitte, Online: info graphic)
5) Increasing numbers of fans are trading down match attendance and substituting for other forms
viewing.
Rivalry amongst existing firms (High) 5/5
1. One of the main sources of revenue for a club comes from broadcasting rights (MMU, 2014) this is the most
competitive revenue stream , which relies on the success of the team on the pitch.
2. To increase the success of the team on the pitch; the club needs to buy the best players to create the team.
There is a limited pool of top players (Section: 1.3) available to purchase in limited transfer window
periods. This equation creates a market pressure that inflates players wages as club’s bid against each
other.
3. The Football industry is an oligopoly, with much of the revenue growth coming from a few
eminent clubs, in the Premier League, this is MU, MC & LFC (Deloitte, 2014)
4. Financial Fair Play regulations (FFP, 2014) are forcing clubs to be more responsible with their
spending. This is driving clubs to seek more investment in the aim to gain competitive advantage.
E.g. MUFC investing a presence in America(MMU, 2014), and also pushing clubs to make
significant investments in to Youth Training Schemes. (Deloitte, 2014)
Threat of substitutes (High) 4/5
1. ‘Evaluation of alternatives’ are split 50:50 between the 6 consumer segment types in the UK, with those that consider alternatives to be activities
such as ‘other club’s matches’ and ‘non –football priorities’ (Section 1.6.1)
2. Growing trend of fan’s trading down match attendances to watching on television’ (MMU, 2014)
3. ‘Growing numbers of supporters taking advantage of illegal streams via overseas providers.’ (Mullock. S, 2015)
4. Viewing on mobile catching up with TV, during the world cup; Traditional tv viewing more fragmented: 14% of 20-24 year olds watched online
compared to 21% that watched on TV (Davies, 2014) 55% of households now have access to a tablet (Davies, 2014)
5. Risk of cannibalisation from paid subscription TV
Threat of new entrants (Low) 2/5
1. Influx of foreign investors could accelerate lower clubs up the league table as seen with Manchester City (Smith, 2013)
2. Likelihood of a new league = low, therefore a set amount of clubs operating at one time
3. high barriers to entry (Players, stadiums)
Determinants of Supplier Power –
Sponsors & Operations (Low) 2/5
1. Suppliers can have coercive power
2. -Suppliers aspire for association
with clubs, therefore demand is
inelastic
3. -Determinants of power are low
due to supplier demand
outstripping club supply.
Determinants of Supplier Power-
Players (High) 4/5
1. Players personal lives off pitch
heavily followed by mainstream
media
2. -Determinants of power are high
as agents control players
commercial and marketing
activities (Neville, 2013)
Determinants of Buyer
Power: (Low) 2/5
When buyers are fans:
1. Determinants could
rise if individual fans
become a collective
e.g. Spirit of Shanky
Group (BBC Sport,
2014a)
2. Low switching costs
counterbalanced by
emotional loyalty
3. Limited stadium
capacity < Fan base,
equating to price
inelasticity
Figure2: Adapted from (Wilson& Gilligan, 2005:p.348)
Table 2

7. 7
BPL club revenues consist of three main streams: Match day, Broadcasting and Commercial Revenue
streams.
Broadcast Right revenues:
On average 43% of Premier League clubs income came from broadcasting revenues (Mintel, Online:
2014). Liverpool’s broadcast revenue for the 2012-13 season was £63.9m making up 31% of their income
revenue (Deloitte, 2014a). This revenue stream is forecast to rapidly rise in 2019 (Mullock, S, Online:
2015) with the possibility of all Premier League games being broadcast.
Some clubs, including LFC, are capitalising on this market via dedicated subscription TV services to
tackle the increasing number of fans trading down match day attendances. MUFC have even declared
this a fourth revenue stream, titled: ‘New Media’. Future development in this market could be to enhance
existing mobile apps to make viewing on second screens easier, as 55% of households now have access
to a tablet (Mintel, Online: 2014), which is the preferred viewing method in large homes, and exploring
individual broadcasting opportunities. (MMU, 2014)
Match Day Revenues:
Stadium capacity is the key restraint in BPL clubs. Despite not being allowed to spend more money on
players than earnings; the FFP states that: ‘any expenditure on the stadium infrastructure is exempt from
FFP calculations, the eventual financial benefits of such an investment can be used to offset the club's
wage-spend.’ (FFP, Online: 2014) This has resulted multiple competitors also expanding their stadiums
including Chelsea and MCFC.
LFC’s ticket prices for the 2014/15 season range from £37 - £59 per adult, falling within the average price
per tickets for the BPL. Ticket prices have increased 13% since 2011, double the rate of inflation (BBC,
2014b). This combined with stagnant wages (Section 1.1.0) has not proved well previously with fan’s
(Andrew, 2014). Other clubs, e.g. MCFC have introduced schemes including interest free season tickets
in order to increase sales and encourage time spent at stadium, e.g. City Square.
Commercial Revenue Streams:
Sponsorships:
Arsenal and MCFC have sold the naming rights to their stadiums, Manchester City achieving £400m with
Etihad airways for a 10-year deal as a means of increasing commercial revenues (Taylor, 2011).
Manchester United signed a sponsorship deal for their teams training kits (Daily Mail, 20110 and naming
rights to the training facility with AON for £120m over 8 years to increase commercial revenue (Deloitte,
2014a).
Merchandise:
BPL football shirts sold an estimated 5.14 million in 2013-14, higher than any other European league.
This success is linked to the huge interest in both Asia and Africa watching the BPL over other European
tournaments (Repucom, 2014b). Liverpool’s shirt sales between 2009-10 to 2013-14 seasons were 7th
highest of the largest European clubs (Miller, 2014), Dr Peter Rohlmann who completed the research
suggests “…in terms of overall merchandise sales Manchester United and Liverpool still remain the
biggest global sellers, outselling their Spanish rivals”.
1.3.2 Global market analysis
Figure 3 Plots 31 countries based on the % gap size ‘like or love’ for football against the BPL (Premier
League Survey, 2012), shown in a adapted market lifecycle (Brassington and Pettitt, 2006) the nodes are
colour coded indicating GDP per capita (World Bank, 2014d) to indicate markets financial health. Finally
splitting all global markets into 4 strategic groups and analyzing these using an adapted BCG matrix
(Wilson and Gilligan, 2008).

8. 8
BPL High Saturation – Mature market
“Defend market and capitalise on profit opportunities” (Wilson and Gilligan, 2005).
UK market is 100% saturated and growing. 51% of UK adults support a UK club (Mintel, 2014a), consumer
interest slowly growing (Mintel, 2014b). BPL is worlds second largest league, average game attendance of
98%+ means fans are looking for new ways to follow football (MMU,2014), increasingly turing to new media
and tablet devices.
China is 100% BPL saturation with continued growth. Stagnenet GDP growth(World bank, 2014b) but 8.1%
rise in income (World Bank, 2014c). Low interest in Chinese domestic leagues (The Economist, 2011), and
Inovation of the Barclays Asia Cup has increase BPL awareness (Premier League, 2013). Large fanbases
for UK clubs, 60 million LFC fans in china, with VisitBritain finding Chinese fans are likely to visit UK for
BPL matches.
Nigeria 95% BPL saturation. Worlds most engaged football nation 83% of population (Repucom, 2014a),
strong ecconomic growth up 11.27% (World Bank, 2014b). Possibilites of instablity in market due to current
political issues (Section 1.1.0) However current barclays CSR inititiatives further increase British
awareness.
Hong Kong BPL saturation of 89%, with dwindling interest in domestic league (The Economist, 2011).
Hong Kong shows stong ecconomic growth (World Bank, 2014b). Features in BPL Asia tour and strong
alliances with UK BPL clubs.
Ireland have 87% BPL market penetration, with increased BPL interest over Irish league football, most
probably linked to higher football standard and accessability to games, media and merchandice. VisitBritain
found Irish fans are likely to travel attend BPL matches (MMU, 2014). Recent decline in GDP growth could
be as effect of eurozone crash(World Bank, 2014b), However GDP cost per Capata remains strong.
BPL Medium Saturation – Growth markets
“These markets show potential gaps for market development” (Wilson and Gilligan, 2006).
Singapore BPL market penetration of 80%, and indicates a good GDP per capita (World Bank, 2014d).
52% of population is interested in football (Repucom, 2014).
Market Market Stage
GDP
Indicator
1 UK Mature Strong
2 China Mature Weak
3 Nigeria Mature Very Weak
4 Hong Kong Mature Fair
5 Ireland Mature Strong
6 Singapore Growing (high) Strong
7 Indonesia Growing (high) Very Weak
8 South Africa Growing (high) Weak
9 India Growing (high) Very Weak
10 Malaysia Growing (high) Weak
11 Thailand Growing (high) Very Weak
12 Norway Growing (high) Very Strong
13 Japan Growing (high) Fair
14 South Korea Growing (high) Fair
15 US Growing Strong
16 Russia Growing Fair
17 Canada Growing Strong
18 Poland Growing Fair
19 France Growing Strong
20 UAE Growing Strong
21 Sweden Growing Strong
22 Australia Growing Very Strong
23 Mexico Growing Weak
24 Netherlands Growing Very Strong
25 Egypt Growing Fair
26 Argentina Growing Fair
27 Italy Potential Fair
28 Brazil Potential Fair
29 Turkey Potential Weak
30 Spain Potential Fair
31 Germany Potential Strong
Figure3

9. 9
Indonesia has 76% BPL penetration, with 77% of the population interested in football (Repucom, 2014),
Indonesian fans currently follow BPL teams, as a result of corruption in their domestic league (Durden,
2012). BPL team interest has also developed substantially following pre season tours (Bland, 2013).
Making this a key audience to BPL football despite GDP per capita indicators (World bank, 2014d) and
offer potential for future development and acquisition.
South Africa and India both 74% and 73% penetration respectively, India’s affluent middle classes have
growing interests in BPL football and UK clubs (Wilson, 2009). Interest in South Africa have grown
following pre season tours and show potential as a future market despite current GDP per capita as this
is in growth (World Bank, 2014d).
Malaysia and Thailand have BPL penetration of 70% and 67% respectively, continue to be exciting
markets and growing interest in BPL (Banyan, 2010). BPL clubs investing in these territories to acquire
international fans, despite poor GDP per capita (World Bank, 2014d). Additionally the Scandinavian
nations offer affluent markets (World Bank, 2014d),
Norway and Sweden have BPL saturation of saturation is at 63% and 50% respectively, their proximity
allowing fans to visit to watch live games offers commercial potential for BPL clubs (MMU, 2014).
Japan and South Korea offer the BPL to Asian markets, with smaller penetration numbers of 62% and
61% respectively. They offer fairly mature domestic football markets, with fans interest split between
domestic and BPL games, GDP per capita makes South Korea unattractive whilst Japan is attractive
(World Bank, 2014d).
USA and Canada have penetration of 58% and 57%, and both countries having good financial health
make these attractive markets, key issues here are opportunities of alternatives with both countries
having strong sports industries. USA’s BPL Interest has substantially recently following pre-season tours,
key players transfers and American investment or acquisition of many UK clubs.
BPL Medium/Low Saturation – Potential Growth markets
Russia (54%), Poland (52%) and France (51%) again show lower interest levels in BPL, Russia and
Poland have unattractive GDP per capita (World Bank, 2014d), France fairing better. All demonstrate
poor BPL interest favouring local competitions. UAE (50%) and Australia (50%) share strong GDP per
capita, demonstrating lucrative potential markets. However opportunities to alternatives are key
implications here, investment in fan acquisition and engagement would be beneficial.
Mexico (45%), Netherlands (43%), Egypt (43%) and Argentina (39%) all demonstrate dwindling
interest in BPL football, with increased opportunities to alternatives being a major negative factor. Egypt
despite their low GDP per capita (World Bank, 2014d) offer some resolution offering a LFC youth player
academy in Cairo (Pearce, 2012) building brand awareness amongst younger fans. Despite lower
saturation figures, potential of leading investment in goring markets still in their infancy can lead to
competitive advantage.
‘BPL Low saturation – Introduction markets’
These markets demonstrate little interest in the BPL. Italy (28%), Brazil (27%), Turkey(26), Spain (22)
and Germany (20%) all demonstrate markets with low interest in the BPL. This can be linked to a number
of factors including; interest in domestic leagues, opportunity for alternatives, language barriers and time
differences. Currently ruling these markets not commercially viable for this 5 year Plan.
Continued analysis and development of potential global markets is essential to the sustained success.
The BCG matric could be adapted to demonstrate this with ‘High Saturation’ being Cash cows, ‘Med
Saturation’ being stars and ‘Low Saturation’ being question marks.
1.4 Competitor analysis
As mentioned in section 1.2.2 – barriers to entry in the industry are very high, therefore it is unlikely that
there will be new entrants to the market.

10. 10
Football is the most popular sport in the world, with 1.556 billion followers globally (Manchester United,
2014) therefore, the competitors of LFC are most likely to be currently within the same industry. However,
in markets where the football industry is less established, it is important to recognise that other sports
would compete directly with the football industry, for example American Football in America.
As the UK market is saturated (section 1.3.0) and brand loyalty in the industry is so high (section 1.6.0) –
competitors of LFC are likely to be the most successful football clubs in the industry – as these clubs will
gain more exposure in markets where the popularity of the industry is growing, such as America and
Australia. LFC will need to compete with these clubs to build fan-bases in these markets, which are in the
introductory and growth stages of the industry lifecycle. Therefore, the competitors that have been chosen
are the most successful clubs in the world based on total revenue.
Eight competitors were selected from the Deloitte Football Money League (Deloitte, 2014) that showed the
following; a sustained/stable high position, an increase in revenue growth over time/a move up in the
money league or a decrease in revenue growth over time/a move down in the money league. These
competitors should show insight into both successful and unsuccessful strategies. Some clubs were
discounted on the basis that they have not competed in the money league consecutively over 2008/09 to
2012/13, and Italian clubs were excluded as no club owned their own stadium until 2011, when the new
Juventus Stadium opened (Hall, 2014). All six English clubs in the money league were included,
regardless of movement, as the Premier League teams are arguably LFC’s main competitors due to it
being the biggest league in the world (Manchester United, 2014), attracting an estimated 70 per cent of the
world’s football fans (Premier League, no date).
1.4.1 Strategic Group Analysis
The strategic group analysis shows three clear strategic groups, by total revenue over five years and
stadium capacity. The graph shows that there is correlation with total revenue and stadium capacity – the
larger the stadium, the more revenue generated. This is likely due to match day revenues, however, also
indicates for example, that on pitch success, leads to increased revenue and popularity, and therefore a
demand for a larger stadium.
LFC’s closest competitors, that hold
similar resources to them, are Manchester
City, Tottenham Hotspur and Chelsea.
These four clubs fall within the strategic
group with the lowest revenue and
stadium capacities, although it is worth
noting that Liverpool, Manchester City and
Tottenham Hotspur have secured plans to
increase their stadium capacities within
the next few years (Mintel, 2014; Deloitte,
2014), with a bid to increase match day
revenues. Chelsea is also looking to
increase their stadium capacity (Mintel,
2014).
1.4.2 Market positioning
The clubs’ positions in the market have
been calculated by brand attractiveness
(average position in the clubs’ domestic
league over 2008/09-2012/13) and
accessibility (rated by access to club TV
channel subscriptions/on-demand TV
access – see appendix 2).
Figure4: Model adapted from (Wilson& Gilligan2005: p.243)

11. 11
The perceptual map (Fig. 5) shows that Manchester United currently have the strongest market position,
with high brand attractiveness and high accessibility, although accessibility could be improved with the
offering of an online TV service.
LFC are in the worst position in terms of brand attractiveness, and therefore will need to improve their on-
pitch performance to successfully attract new fans.
An incentive they could offer to potential/current fans to support LFC would be to make their TV
subscription available to overseas fans and/or reduce the cost of their online TV subscription – LFCTV Go.
This would bring them closer to Tottenham Hotspur who offers their online TV for free.
Chelsea are in a good position and could move away from competing with LFC by improving their on-pitch
performance.
At present, LFC have an advantage over Real Madrid, FC Barcelona, Bayern Munich, Arsenal and
Manchester City, with regards to accessibility. However, these clubs could improve this through strategic
tactics.
1.4.3 Porter’s Generic Strategies
All of the selected clubs target broad markets and therefore none opt for a focused strategy as visualised in
(Fig. 6)
Analysis of the data in (figure 6,
appendix 1) shows that LFC have a
weaker cost leadership position than
some of its rivals (in terms of wages
as a percentage of revenue), although
the majority of their annual figures still
fall under the recommended 70 per
cent set by the European Club
Association (Real Madrid, 2014).
They also have a poor position in
terms of differentiation, as they do not
lead the way in performance quality,
having only a very small quantity of
the top 100 football players in the
world (Sedghi and Arnett, 2014). This
leaves LFC ‘stuck in the middle’,
without competitive advantage (Wilson
& Gilligan, 2005).
Manchester United appears to prioritise lower wage bills rather than differentiating themselves by buying
more of the top 100 players. This could also indicate that they strategically build their team gradually over
time through developing youth talent, to save on cost.
In contrast, Manchester City and FC Barcelona prioritise standing out, with a higher number of top 100
players, resulting in a higher wage bill. This could be the reason why FC Barcelona can command a price
premium, charging consumers approximately £100 more than the competing clubs for their membership
scheme (see appendix 1).
The majority of clubs are ‘stuck in the middle’ alongside LFC, although where some clubs are performing
neither in cost leadership nor differentiation, such as Tottenham Hotspur, others are performing strongly in
both strategies.
Although Porter (1980) world argue that this leaves the clubs with no competitive advantage (Wilson &
Gilligan, 2005), Hill (1988) disagrees, suggesting that a company performing well in cost leadership and
differentiation gives them a higher chance of sustained competitive advantage.
Figure5: Perceptual map adapted from (Brassington& Pettitt, 2006: p. 359)
Figure6: Model adapted from (Wilson& Gilligan, 2006: p.388)

12. 12
This could be the case in the football industry, for example, Real Madrid have achieved the lowest wage
bill, yet strongly differentiate themselves with having 9 of the top 100 players, effectively leaving them in the
middle.
Similarly, Bayern Munich has the highest number of top players; yet manage to have one of the lowest
wage bills. This can be linked to higher total revenue figures as a result of successful on-pitch performance
- due to a high quantity of top players.
1.5 - Financial analysis
1.5.1 Total revenue by revenue streams
The three main streams of revenue in
the football industry are from match day,
broadcasting and commercial (section
1.3.0). It is clear from figure 7 that LFC
need to increase total revenue to
compete with their rivals.
Due to the economic climate there is no
scope to increase ticket prices (MMU,
2014), so other strategies must be
investigated to improve match day
revenue.
To increase broadcasting revenue, LFC
need to improve on-pitch performance,
or look to develop independent broadcasting opportunities (MMU, 2014).
Commercial revenue is LFC’s strongest revenue stream, accountable for 47% of total revenue in 2012/13
(see figure 10).
New financial fair play regulations (FFP) came into play in 2013, which prevents clubs from spending more
than they earn annually (MMU, 2014). LFC are currently under investigation for a possible breach of the
break-even rule, with reported losses of £49.8m in 2012/13 and £40.5m in 2011/12 (The Guardian, 2014).
1.5.2 Average league position over total revenue
Figure 8 shows that unsurprisingly there is
correlation between total club revenue and
average domestic league position.
LFC are performing better than average, with
higher revenue than what would be expected
for their average league position. McNulty
(2013) suggests this is due to their historical
success and club heritage.
The reason for correlation is simple, the more
successful the teams are on-pitch, the more
revenue the club earns through broadcasting,
commercial and match day revenue streams.
The clubs can also then afford to invest money
Figure7: Total revenue by revenue streams
Figure8: Average league positionover total revenue

13. 13
back into the team to buy players or develop youth talent and increase such things as; fan
experience (for example, with technological improvements to the stadium), stadium capacity and
potentially lower membership fees to attract more fans, through economies of scale – generating
even more commercial and match day revenue.
1.5.3 Total revenue over 5 years
The Spanish teams Real Madrid and FC Barcelona currently have an advantage over English and German
teams, as they are able to negotiate their own broadcasting deals on an individual basis rather than as a
collective.
As Real Madrid and FC Barcelona dominate in
Spain, they can claim the majority of the share of
broadcasting as there is a higher demand for the
matches they participate in (Hunter, 2013).
However, the chief executive of the Spanish
domestic league seeks to take the rights
(negotiations) in-house within three years, ensuring
La Liga is more competitive and enabling other
Spanish teams participating to close the gap
(Hunter, 2013).
This could have a large impact on Real Madrid and
Barcelona’s revenue income, seeing them fall from
the top of the Deloitte Football Money League, of
which Real Madrid have sustained the lead for nine years (Deloitte, 2014).
Another factor that could contribute to this is the new record-breaking broadcasting rights that have been
negotiated for the Premier League (Gibson, 2012). Deloitte (2014) predict that this will increase revenues
for the English teams participating significantly. Additional key factors affecting individual club revenues
are detailed in table 2 below;
1.5.4 Key factors and strategies that affect club revenues.
Table 3: Sources from Deloitte (2014a) unless otherwise stated
Real Madrid
 No trophies won in 2012/13
 New shirt sponsorship deal with Emirates
 Prestige f riendly matches prov ide a signif icant
rev enue source
 Match day rev enue down by 6% due to a f all
in match day attendance, as a result of the
poor economic climate in Spain
FC Barcelona
 Regained La Liga title in 2012/13
 Reduction in commercial rev enue attributed to
f ailure of qualif y ing f or UEFA Super Cup and
FIFA Club World Cup as it did in 2011/12
 New technology partner Intel - deal worth
€19.2m; logo to appear on the inside of the
shirt
 New shirt sponsorship with Qatar Airway s of
€30.5m f rom 2013/14 will secure commercial
rev enue growth
Bayern Munich
 Treble win in 2012/13 season, resulting in total rev enue
increase by 17%
 Broadcast rev enue increased by 31% and commercial by
18% (through
 On-pitch success resulted in high match attendance
 Shirt sponsorship continuation worth €30m per season
 Long-standing stadium naming rights deal worth €6m
 New manager - Pep Guardiola
Manchester United
 League Champions in 2012/13
 New sales of f ices in Hong Kong and USA
 Hav e already receiv ed £12m f rom Chev rolet
shirt sponsorship despite it not appearing on
shirt until 2014
 £120m ov er 8 y ears f rom AON f or training kit
and training ground sponsorship
 2011 – new rev enue stream reported: New
Media and Mobile Activ ity , accountable f or
£5m (MMU, 2014).
 £10.4m (11%) match day rev enue increase
due to hosting Oly mpic Games matches
 Listed on New York Stock Exchange since
2012 (Mintel, 2014)
 Regional sponsorship deals in Saudi Arabia,
Middle East and Asia (Joy , 2014a)
 Short-term sponsorship deals (Joseph, 2014)
 Long-serv ing club manager and chief
executiv e both departed
Liverpool
 Recently hav en’t participated in Champions
League as of ten, resulting in less exposure
and rev enue, howev er, they hav e qualif ied
f or the Champions League in 2014/15.
 Kit supplier deal with Warrior Sports worth
£25m per y ear
 Extended existing shirt sponsorship with
Standard Chartered and partnership with
Carlsberg
 New agreements with Electronic Arts and
Gatorade
 First training kit sponsorship signed in 2 y ear
deal f rom 2014/15 with airline Garuda
Indonesia could help increase f an-base in
Asia (BBC News, 2014)
 New sponsorship deals with Subway and
Dunkin Donuts (Joy , 2014b)
Manchester City
 New club ownership
 Etihad shirt and stadium sponsorship
 Commercial deals in prev iously unexplored markets e.g.
Indonesia
 Match day rev enue increase of 12% af ter ticket price
increase
 On-pitch success due to purchasing of top play ers – this
has also secured them a place in the Champions League in
recent y ears, which is a big step up f inancially compared to
clubs like United who hav e regularly competed in the
Champions League f or y ears.
 Failed to qualif y f rom Champions League group stages in
2012/13, howev er, came runner up in Premier League and
FA Cup
 Formed umbrella organisation ‘City Football Group’ to
manage holdings in f oreign clubs (USA, Australia and
Japan) (Mintel, 2014; Ritson, 2014)
 Fined £49m f or breaching Financial Fair Play rules set by
UEFA (Herbert, 2014)
Figure9: Total Revenue Over 5 Years

14. 14
 Launch of City Square in 2010 (Manchester City , [no date])
Arsenal
 Qualif ied f or Champions League f or 16th
consecutiv e y ear, securing additional
broadcasting rights
 Commercial rev enue increase helped by shirt
and stadium sponsorship f rom Emirates
 New lucrativ e kit supplier deal f rom Puma in
2014 of £150m will increase commercial
rev enues going f orward (Mintel, 2014)
Chelsea
 Receiv ed €20m less in broadcasting in
2012/13 than in 2011/12 af ter winning
Champions League
 New commercial deals with Delta and
Gazprom, plus shirt sponsorship renewal
with Samsung
 Won UEFA Cup in 2012/13
Tottenham Hotspur
 Only made it into the Champions League once, in 2010/11.
It can be v ery benef icial f inancially to participate in the
Champions League as v iewership f igures are as high as 4
billion globally (Heineken, 2013)
 New 5 y ear deal with Under Armour worth £10m per
season
 Dual shirt sponsorship agreement
 Match day rev enue decreased –limited by stadium capacity
1.5.5 Total wages as a percentage of revenue over 5 years
Real Madrid, Bayern Munich and Manchester
United benefit from economies of scale, enabling
them to sustain financially healthy low wage bills.
(Fig. 10)
Manchester City has invested, on average, 95% of
their total revenue on wages over the past 5 years
(Fig.12). Although they have since been penalised
by UEFA for breaching FFP rules (Herbert, 2014),
the investment in players contributed to doubling
their broadcasting revenue and increasing their
commercial revenue by 800% over a 5 year
period, resulting in lower wage bills effective from
2011/12.
Investment in the team manager and players is
core to the success of the team and the overall business success (MMU, 2014). According to Deloitte
(2014b), six of the seven clubs that finished at the top of the Premier League in 2012/13 had above
average wage bills at £89m.
1.5.6 Revenue per ticket sold (RPTS)
Close rivals Chelsea lead the way on average RPTS, over the seasons 2008/09 – 2012/13, with a figure of
£1,724. (Fig. 11)
This could be a result of the affluent area around the
stadium, as well as the multiple hospitality package
offerings, the Michelin Star restaurants and hotel facilities
on-site (Chelsea, [no date] a).
Manchester City boast the lowest season ticket of the
Premier League (Deloitte, 2014), which likely contributes
to their low average RPTS.
However, it is noted that this figure is increasing year on
year (Fig. 10) potentially due to a rise in fan pride, glory
seekers and wealthy international visitors, and the
introduction of ‘City Square’ in 2010 (Manchester City,
[no date]a).
LFC’s RPTS is reasonable, however, there is “scope for
improvement “(MMU, 2014).
Figure10
Figure11

15. 15
1.5.7 Financial data

16. 16
Figure 12
*Sources:Deloitte (2010),Deloitte (2011),Deloitte (2012), Deloitte (2013),Deloitte (2014a),FAME (2014a),FAME (2014b),FAME
(2014c),FAME (2014d).
1.6 Customer and consumer analysis

17. 17
The football industry is a ‘specialist sector’ with ‘unique characteristics.’ Loyalty levels within football are
assumed to be higher than consumer characteristics within conventional industries. (Adamson et al, 2005)
Loyalty to support a team generally derives from following family loyalty or success of the team. (O’Donnell,
2013)
Segmenting allows a better understanding of customer needs and characteristics, which allows for more
accurate marketing approaches to be made (Frank et al., 1972). (Tapp & Clowes,2002) created a model
based on UK football that highlights three generic types of football fan: ‘Casuals,’ ‘Regulars’ and ‘Fanatics.’
A full break down of these fan types can be found in appendix 4.
LFC’s fan base has two primary segments, a) the Domestic market and b) the Global market.
1.6.1.Domestic Market
BPL physical attendance to games hit 13.7 million for the 2012/13 season. (Davies, 2014). LFC have
24,500 season ticket holders in total and another 28,000 fans are on the season ticket waiting list. The club
also has around 100,000 members accessing tickets over the course of a season. (Pearce, 2014)
Table 4 details six segments of football fans based on an adaptation of the Fan Relationship
Management model proposed by (Tapp et al, 2005) combined with supporting material from the research
conducted by (Tapp & Clowes, 2002) Segmenting football followers.
Table 4, column 3, shows each segment ranked by their ‘likelihood to spend’ based on the behaviours
identified in each profile and the indicated amount of people involved in each segment.
Figure 13 shows the Life stage of each segment (x) against their attendance levels (y) (Tapp et al, 2005).
Adaptations were made to show the Family lifecycle ranges (Brassington and Pettitt, 2006: P.134) and
subsequent average weekly household disposable income by age. (ONS, 2013)
Segmen
t
Profile
Likelihood to
spend ranking
(X)
Avg. weekly
household
disposable
income
Avg. Weekly
household
disposable income
index (Y)
X+Y
Attractive
ness to
LFC rank
Mine’s a
pint
These are f ans that like a drink or two either side of the game. These f ans will arriv e
early , “to park”, will of ten meet casual acquaintances at the bar or may be read the
programme.
3 £625 3 6 3
Juggling
the kids
Families try ing to f it in two or three ev ents in the day . They may arriv e at the ground
at the last minute, but be high half time spenders on snacks and so on. Families are
also high spenders on merchandise.
2 £625 3 5 2
Thermos
at row D
These are creatures of habit that get into the ground quite late, they were not
interested in talking to any one and may not spend much money at the ground on
programmes or f ood. These are likely to be season ticket holders, of which LFC
currently hav e 24,500. (Liv erpool, 2014)
6 £500 6 12 6
Season
ticket
f riendly ’s
These people enjoy the social ev ent of meeting f ellow supporters by v irtue of always
hav ing the same seat. These are likely to be season ticket holders, of which LFC
currently hav e 24,500. (Liv erpool, 2014)
5 £500 6 11 5
Loy al
cash
and
chanters
They buy tickets with cash when they get paid and hav e a good shout at the game.
May be “regular” f ans, which hav e a low ev aluation of alternativ es, high commitment
to the club/f ootball, pref er entertainment ov er winning, f av our non-f ootball ov er
f ootball priorities and av erage 10-18 matches per season.
4 £500 6 10 4
Dads
and
sons
These are loy al, “club” rather than “f ootball” oriented, with a low ev aluation of
alternativ es and a high commitment to the club/f ootball. They f av our a winning ov er
entertaining match and f av our non-f ootball priorities ov er f ootball. They hav e a high
priority on serv ice/phy sical env ironment rather than building relationships. Income is
not an issue, they v alue v ariety and choice. Considered as lif etime f ans, howev er
26% attend other team’s matches.
1 £700 1 2 1
Table 4

18. 18
From figure 13, the average
weekly household income
was then indexed and the
index added with the
likelihood to spend, thus
giving a figure, which was
ranked to show the
attractiveness of each
segment to LFC.
This ranking method is
intended as a basic
indicator to inform LFC of
the generic fan segments
available to target. One
limitation to consider when
choosing segments is the
relationship between the
attendance level of each fan
and their behaviours. For
example: ‘Loyal Cash and
Chanters’ are ranked 4/ 6 due to their low disposable income levels, however their attendance is high, and
their profile indicates that what cash they do earn, they like to spend on football.
Figure 14 (GE matrix) shows an adaptation of The General Electric Multifactor Portfolio Model. (Gilligan &
Wilson, 2013: P.375)
The six consumer segments have been plotted on this matrix to show their potential attractiveness and
positioning, this is beneficial for LFC to develop strategic marketing tactics to suit.
Figure13
Figure14
Figure15

19. 19
1.6.2 International Markets
LFC chief commercial officer Billy Hogan recently announced LFC have: “580 million fans globally,”
(Pearce, 2014). LFC is: ‘Globally the world’s most active sports brand on social media’ (MMU, 2014: P.20)
The official LFC Facebook page has 24,619,000 fan’s in over 90 countries (Foy, 2015) and there are over
200 official LFC supporter groups in over 50 countries (LFC, 2014)
Table 5 (Below) Profiles the main 5 global market segments which were prioritised following a cluster
analysis through an adaptation of The General Electric Multifactor Portfolio Model (Giligan & Wilson, 2005:
P.375) (Fig 15 above) The adapted axis are:
 X = Lifecycle stage (Introduction, Growth & Maturity) based on market analysis figure 3
 Y = The level of ‘official activity’ LFC has in each country, of which:
o Low = CSR activities and Official fan clubs (OFC’s).
o Medium = CSR, OFC’s, Pre Season Tours in the past 10 years and targeted
partnerships/sponsorships.
o High = all of the below, plus physical presence (Stadium, stores, teaching
academy’s).
Segm
ent
Countries (% of
LFC Facebook
likes- top 20 only)
Profiles
Dom
estic
UK (7%) & Ire See above
1A Indonesia (10%),
Malaysia (5%),
Thailand (15%),
UAE, Egypt (4%)
- Growth stage of market lifecycle*
- High level of currentofficial activity
- Group equates to 34% of total Official LFC Facebook fans, with Thailand the highestgrowing Jan
2014-15 at 282% and Egypt also growing 123% (Foy, 2015)
- Group represents high % ofoverall LFC Facebook fans.
- Group has weak/very weak economies,apartfrom UAE, which is one of the top 5 nations that
visited Britain to watch BPL in 2010 (MMU, 2014:P.11)
- Even spread ofpopulations with few denselypopulated areas.
- BPL broadcasting:Asia 31%,Middle East/ North Africa 23%,
- LFC planning to open store in Malaysia & Thailand (LFC, 2015) following success from brand
partnership with Honda in Thailand.
- Qatar (UAE) has high level of investor interestin BPL, and are also hosting the 2022 FIFA World
Cup
1B China & Hong Kong - Mature stage of marketlifecycle*, high level of saturation
- Medium level of Official LFC activity
- China potentiallyhas the largestLFC following ofall segments with 60 million fans (MMU, 2014) This
is hard to prove as they don’t use Facebook and the Weibo accountshows just450,000 followers- an
area for deeper analysis.China are also one ofthe top 5 nations to visit Britain to watch BPL in 2010
(MMU, 2014: P.11) China also has a 33% interestin football, with 100% of that BPL.
- Weak and fair economies respectively,however income gravitated to rich, denselypopulated areas.
2 Singapore,South
Africa (1%), India
(4%), Norway, USA
(2%), Australia
- Growth stage of marketlifecycle*
- Medium level of Official LFC activity
- All strong and Very strong economies,apartfrom India which is currently very weak, but has high
growth of affluentmiddle class.(BBC, 2009)
- India & South Africa = high growth in web traffic to Official LFC page (MMU, 2014:P.21)
- Norway & Australia amongsttop 5 nations to visit Britain to watch BPL in 2010 (MMU, 2014:P.11
(MMU, 2014: P.11)
- USA have the fastestgrowing interestin BPL (Manchester United, 2014)
- Australia account for the highestonline spend on Official LFC website.LFC also have first team
Australian GK Brad Jones
3 Japan,South
Korea, Russia,
Canada,Poland,
France (2%),
Sweden,Mexico
(3%), Netherlands,
Argentina (1%)
- Growth stage of the marketlifecycle*
- Low level of Official LFC activity
- Primarilyfair, strong and very strong economies respectively,with the exception of weak Mexico.
- France could have interestin 1st
team player Mamadou Sakho
- Japan was one of the top 5 nations to visit Britain to watch BPL in 2010 (MMU, 2014:P.11)
4A Nigeria (1%) - Mature stage of the marketlifecycle,* high saturation
- Low level of Official LFC Activity
- Very weak economyand suffering political instabilitydue to Boko Haram activity.
4B Turkey (3%) &
Germany (1%)
- Introduction stage of marketlifecycle*
- Medium level of Official LFC activity
-Strong & weak economies respectively
- Both countries have own established leagues:Soccerwayand Bundesliga,fans mayhave strong
loyalty with own domestic football.

20. 20
- Germany could have interestin 1st
team player Emre Can
5 Italy (1%), Brazil
(3%) & Spain
- Introduction stage of marketlifecycle*
- Low level of Official LFC activity
- All have fair economies
- 1st
team player nationalities = Italian 2, Brazil 2, Spain 3
- All countries have own established leagues:Serie A, Campeonato & La Liga.Fans may have strong
loyalty with own domestic football,however Facebook likes from Brazil grew 141% Jan 2014-15 (Foy,
2015) possiblya resultof RIO World Cup 2014.
*Position on Lifecycle based on affiliation to BPL
Table 5

21. 21
1.7 - Internal analysis
1.7.1 Dynamic Capabilities Value chain: Brand Heritage and Community of Fans
Supporting Activities
Owner:Fenway Sports Group (FSG) took ov er the club in October 2010 and hav e ‘…a prov en track record in sports marketing, asset maximization, stadium regeneration, contra branding f ertilization, strategic management and
inv estment, and international business dev elopment’ (MMU, 2014:23). The takeov er helped LFC negotiate higher v alued sponsorships, howev er, on-pitch perf ormance has not been as successf ul (MMU, 2014). FSG is based in
North America and also owns Major League Baseball team Boston Red Sox, Fenway Sports Management (FSM) and New England Sports Network (NESN), amongst other companies (MMU, 2014). This could prov ide additional
exposure and sponsorship opportunities f or LFC.
HQ & Management:Managing Director Ian Ay re brought all commercial aspects of the organisation in-house to enable LFC to hav e more control ov er its prof itability . LFC saw commercial rev enue up 85% ov er 2007-2012 af ter
this change was implemented (MMU, 2014). A new of f ice has been opened in London ‘to realise commercial potential’ (Joy , 2014), and Billy Hogan was hired as the Chief Commercial Director in 2012 to boost the v alue of the
brand (Joseph, 2012).
Newly appointed Chief Media Of f icer, Matthew Baxter, has been employ ed in an ef f ort to boost reach of digital content to ov erseas f ans (Joseph, 2013a).
Managementand support (Football Team): Brendan Rodgers manages the f irst team, along with 19 other staf f who support the team, comprising of assistant coaches, analy sts, phy siotherapists and consultants to name a
f ew (Liv erpool FC, [no date]a). Brendan Rogers joined the club in 2012, and has since signed 24 play ers f or LFC – many of those signed hav e been y oung play ers inv ested in f or the f uture, howev er, Sav age (2014) believ es that 20
of the signings don’t meet the mark. LFC also hav e ov er 40 play ers signed to their Under 21s and Under 18s squads through the ‘Academy ’, which current captain Gerrard joined when he was nine y ears old (BBC Sport, 2015),
prov ing the Academy has a history of success. They also hav e a successf ul women’s team – Liv erpool Ladies FC (ITV News, 2014).
Corporate Social Responsibility:LFC were awarded the ‘Community Mark’ in 2009 f or their inv estment in local and ov erseas communities, with a f ocus on ‘…education, health, social inclusion, phy sical activ ity and charity
support…’ (MMU, 2014:20). Although their community work benef its ev ery one, most initiatives aid y ounger people in the community by partnering with local schools.
Brand and Marketing:LFC has a strong brand, rich with heritage (Rogers, 2013), with the brand being v alued at £279m in 2014 and ranked 8th
highest f ootball brand in the world (Brand Finance, 2014). The LFC brand is
reportedly the 5th
most inf luential sports brand in licensing (Crookes, 2013). Brand Finance CEO, believ es that brand v alue can be lev eraged to grow rev enue (Brand Finance, 2014). The LFC brand is ‘…about inclusiv eness,
society , community and respect’ (MMU, 2014:22), resonating with f ans internationally . LFC works with its partners to create ‘…innov ativ e and measurable marketing programmes that consistently meet and surpass their business
objectiv es’ (Liv erpool FC, [no date]b).
Primary Activities
Players & Team:LFC
currently employ 3 of the top
100 f ootball play ers in the
world (Sedghi and Arnett,
2014), this could result in
increased brand attractiv eness
and improv e on-pitch
perf ormance, leading to
rev enue growth. Howev er,
long-serv ing captain Stev en
Gerrard is due to depart the
club at the end of the (Smith,
2015) and the team will need
to be strengthened (Brand
Finance, 2014). Wage bills are
also v ery high considering lack
of top play ers (Sav age, 2014).
The f irst team tour
international markets ahead of
the f ootball season (MMU,
2014) to grow interest.
Stadium & Facilities:Stadium capacity is
currently 45,522 with plans to expand to
58,000 (Menezes, 2014), as stadium capacity
utilisation rate is so high. As well as of f ering
v arious hospitality packages, conf erence
f acilities, stadium and museum tours (MMU,
2014), and prov iding additional f acilities f or
f amilies (Family Park & Family Zone), LFC are
committed to improv ing f an experience by
making changes based on f an f eedback
(Liv erpool FC, [no date]c). It is also used f or
hosting ev ents like tribute acts and Christmas
parties. (Liv erpool FC, [no date]d). The Anf ield
Stadium has receiv ed the highest percentage
of ‘excellent’ ratings on TripAdv isor, compared
to competitors (see appendix 3). LFC of f er f ree
Wi-Fi access to the f ans in the 12,000-seater
Centenary Stand, howev er, they hav e no
plans to roll this out to the rest of the stadium
(Rey nolds, 2013). LFC can collect data on the
f ans who use the Wi-Fi (Joseph, 2013b)
Stores & Merchandise:
LFC hav e a wide range of
branded and licensed
merchandise (MMU, 2014).
Branded merchandise can
be purchased at 8 of f icial
club stores throughout the
UK, Northern Ireland,
Republic of Ireland and
Malay sia, with concessions
in Indonesia (Liv erpool FC
Store, [no date]), online, and
through other partnered
retailers. Replica kits and
f ootball accessories, such
as f ootball boots, make up
the bulk of the sales (MMU,
2014). LFC also plan to
open of f icial stores in
Thailand and Indonesia
(Liv erpool FC, 2014).
Subscriptions (Membership &
TV/Web/Mobile):LFC of f er
competitiv ely priced junior, light, f ull and
international membership (MMU, 2014;
see appendix 1 f or price comparison with
competitors). They are also v ery
accessible, hav ing a TV channel av ailable
on pay -TV packages in the UK, and LFC
TV Go (an on-demand serv ice av ailable
digitally ) f or both UK and international
f ans, which generate ov er £5m annually
(MMU, 2014). LFC are the most activ e
sports brand on social media (MMU,
2014), creating localised pages to
increase engagement and loy alty
ov erseas (Joseph, 2013c; Joseph, 2013a)
and also hav e a dedicated online f an area
on their website – ‘theKOP’, increasing
f ans opportunities to interact f urther
(Liv erpool FC, [no date]e). There are also
multiple mobile apps av ailable to
download (Liv erpool FC, [no date]f ),
adding to f an experience.
On-pitch
Performance:
Broadcasting rev enue
increases with on-pitch
success (MMU, 2014).
In the 2012/13 season,
broadcasting rev enues
accounted f or 31% of
total rev enue at
£63.9m, approximately
£40m less than close
riv als Chelsea and
Manchester City
(Deloitte, 2014), On-
pitch success can also
be linked to an increase
in sales of
merchandise,
subscriptions and
match day tickets,
whilst enabling LFC to
negotiate bigger
sponsorship deals.
Sponsorship, Partnerships &
Franchises:LFC hav e 3 main
sponsors, 14 global partners and 4
regional marketing partners (in
Thailand, Malay sia, Singapore and
India). The partnerships are committed
to putting f an rewards and engagement
f irst (Liv erpool FC, [no date]b).
LFC of f er a co-branded rewards credit
card (MBNA, [no date]), which allows
LFC to collect data on f ans. LFC of f er
coaching to play ers all ov er the world
through their Soccer School and
International Football Academy
programmes (MMU, 2014). This driv es
f an recruitment and engagement
through brand exposure internationally .
Figure 16: Porter's (1980) Value Chain adapted by Atkinson (2010)
CompetitiveAdvantage

22. 22
1.7.2 BCG Product portfolio
(Dibb, Simkin, Pride & Ferrell,2006: 45)
LFC currently operate a balanced product portfolio with an
equal amount of revenue streams coming from stable cash
cow sources, and unstable question mark sources.
Considerations should be made to fund developments of
Question marks by decreasing capital investment of some
Cash Cow activities and deleting Dog activities.
1.7.3 Sounders wheel
Sounders wheel analysis to identify the brand personality of
LFC, survey conducted from speaking to fan's of LFC, and
findings through research on the club.
Liverpool have a strong club culture, and fan following
globally.
They are most recognised for their club colour Red, their
home ground and city - Liverpool and Anfield.
The success of global fan clubs (section 1.6.2) demonstrate
how the strong culture of LFC can be transported across
multiple markets.
1.7.4 Prioritised SWOT Analysis
Strengths Opportunities
1. Club heritage and UKBrand – established in 1892, LFC has a rich football
history and heritage, UK’s 4th
largest club, w ith iconic stadium and loyal fans
going back generations (MMU, 2014). Historic English footballbrand w ith
global appeal, providing value for potential sponsors and partnerships.
2. Global Appeal (Fans) – globalclub 580+ million fans globally (Kent, 2014),
officially w orlds most attractive footballbrand on socialnetw orks currently
w ith 24,462,000 Facebookfans in 90+ countries, and 200+ international
supporter groups (Section 1.6.2). Liverpoolw ebsite available in 22
languages w ith country specific sites (McLaren, 2013).
3. Fenway Sports Group Ownership – competent, experienced and
financially stable, previous experience and successin; sports marketing,
asset maximisation, stadium regeneration, contra branding fertilisation,
strategic management and investment, international business development
(MMU, 2014). FSG offer fantastic commercialand broadcasting links in US
markets amongst others, via their affiliated businesses.
4. Stadium – Anfeild stadiumis a key part to LFC history and heritage.
Planning permission for 13,500-seat stadiumexpansion finally granted. Final
match day capacity of 59,000, potentially contributing an additional £31.7m
in match day revenues (Bascombe, 2014). Utilaise FSG experience of
historic ground into modern digital stadium, FSG development of Fenw ay
park increased revenues.
1. Players & Strategic Investment – Invest and develop first team to
improve on pitch performance, w in competitions and gain prize
money. Possibility of additional revenue streams through player
sponsorship and licensing rights for headline players. Long term
strategy to develop youth team academy / player scouts, insight of
discovering and developing youth talent. To then play for the team or
sell.
2. Global Fans and Markets – explore and realise cashable
international markets / fans using FSG connections and experience
(MMU, 2014). Explore possibilities of international, sponsorship,
partnerships and cobranding. Develop LFC international merchandise
business. Facilitate international fans to drive engagement and
accessibility, both physically and digitally.
3. Commercial Opportunities – Create/develop commercial ventures
including regional and international sponsorships and partnerships,
international markets, co branding. Consider additional commercial
revenue streams (eg, Regional Sponsorship / Partnerships etc.).
4. BroadcastingOpportunities – Develop LFC TV service globally.
Investigate independent broadcasting or invest in new programming.
Improve accessibility to this service in global markets.
5. Fan Experience / Increase Revenue per ticket sold– Develop
match day experience encouraging time spend at stadium and fan
engagement to increase spend of attending fans. Increase indicatives
to encourage fans to stay longer and use the stadium facilities (WIFI,
fan square, fan zone, accessibility to concession and betting stalls,
and providing entertainment to engage fans.
Figure17

23. 23
Weaknesses Threats
1. First Team success – diminishing on-pitch performance, as results of
injuries, selling key players and lack of strategic investment. No successin
recent years (BPL never w on, FA Cup w inners05-06, UEFA w inners 04-05)
resulting in poor club attractiveness for potentialplayers (MMU, 2014). No
competitive advantage of Low cost leadership or low quality players (figure
6).
2. Finances – poor financialhealth, lack of money coming through
commercial, match day and broadcast business (Markham, 2014). Issues
include w ages as a % of profit against competitors (Figure 10). The football
market is highly volatile dependent on team performance and brand (Section
1.3.0). Poor financialhealth has resulted in the development of threats (e.g.
FFP investigation) (BBC Sport, 2014c).
3. Lack of Vision/ Strategy – Lacking strategic clarity, with no apparent
mission or vision for the business. Missing strategic opportunities of
leveraging CRM data, building engagement and improved value for fans
(MMU, 2013).
4. Disgruntledfans – Anfeild’s capacity/utilization rate makes ticket difficult to
acquire, fans are also protesting over rising ticket prices (Oct 2014)
(Andrew, 2014). Further floundering teamperformance is resulting in fan
disenchantment.
1. Financial Fair Play – UEFA have confirmed they are investigating
LFC (BBC Sport, 2014c), for losses in excess of £35.4mover two
seasons. Implications include; fines, point deductions, w ithholding
w innings, and player transferrestrictions (UEFA, 2010). This could
also cause reputation damage.
2. Competition/other clubs – Financialvolatility, BPL is w orlds 2nd
most
competitive league, w ith prize money and competition qualification
reliant on success(DiBella, 2013). Treats of more attractive/
successfulteams headhunting player talent.
3. Implications of Poor Performance - Top player w ant to play for
w inning teams, difficulty of acquiring/retaining top talent. Losing fan
interest w ith continuous mediocre performance (section 1.6.0).
Financial volatility of the league favor’s top clubs, 2nd most
competitive league in w orld, difficult to breakthough.
4. Threat of substitutes – Fans trading dow n or becoming disengaged
w ith LFC (MMU, 2014), trading dow n to follow LFC on TV, digital, and
online coverage of LFC rather then at the stadium. Threat can be
limited by improved on pitch performance, accesschannels.
1.8 - Critical issues
Below is a prioritised set of critical issues that have derived from the SWOT analysis.
1. Poor on pitch performance:
a) Caused by the loss of key players (Suarez) and ongoing injuries (Sturridge)
b) Lack of performance and title wins reduces potential to claim Broadcasting rights
c) Financial instability, lack of money to buy new players following FFP rules reduces potential to
maximise revenue streams.
d) Makes LFC unattractive to new commercial investors
e) Makes LFC unattractive to new top players
2. Poor financial health
a) FFP rules have capped the amount clubs can spend on players to their income. This results in inability
to purchase top players, which in turn reduces the likelihood of success rate on the pitch, which
increases the threat of relegation
b) The FFP time limit has made this a critical factor due to rules stating that club’s must reduce their
losses to spend more than they earn annually. LFC is currently under investigation for breaching this
rule (Guardian, 2014) they therefore face further threat of taxation, or transfer embargo. (Financial Fair
Play, 2014)
3. Not exploiting global markets to their full potential
a) Despite LFC’s achievement of (Crookes, 2014) There are still missed audiences that are potentially
viable as they have high interest in the football industry, and also opportunities to capitalise on the
existing global audiences they currently have stakes in.
4. Threat of substitutes
a) (Section 1.2) details the threat of substitutes, which includes domestic markets evaluating other
alternatives on match days, increasing numbers of fans trading down to watching football on TV, either
via LFC TV or mainstream coverage. There is also an increase in illegal streaming from overseas
providers.
2.0 - Objectivesand Strategy

24. 24
A market-orientated approach identifies market trends and consumer wants and needs before
implementing strategies to target them (Kohli and Jaworski, 1990).
Sections 1.0 - 1.8 identify up-to-date, in-depth micro and macro situational analysis. Sections 2.0 – 3.3
build strategies on the findings, to achieve sustained competitive advantage (Wilson and Gilligan, 2005).
2.1 - Mission Statement, Corporate and Marketing Objectives
2.1.1 LFC Mission Statement 2015
To be the most globally attractive football team, leading the field both on and off the pitch in unity and
innovation.
2.1.2 Corporate Objectives
1. To increase overall revenue by5% year on year.
Over the periods 2008/09 – 2012/13, LFC’s overall revenue increased marginally, by approximately 11%
over the 5 years (Figure 12). In comparison to Premier League rivals previously identified, this figure is very
low. With the opportunities available to leverage their rich heritage by exploiting existing and emerging
markets, 5% has been recognised as a realistic year on year increase for LFC to achieve.
2. To reduce operational costs by 5% by financial year end 2018.
Operational costs associated with the football industry are incredibly high, with LFC spending 64% of its
total revenue on wages for the 2012/13 season (Section1.5). This needs to be addressed with a review of
the current team and wages. Profit margins on product need to be increased and overhead costs reduced
where possible.
3. To become a sustainable and profitable business by 2020.
Currently, LFC as a business is largely unprofitable (see figure 12 for net profit margins). The business
needs to comply with both current and future FFP regulations to avoid the risk of relegation of European
competitions and reduce risk of further debt.
2.1.3 Marketing Objectives
1. Develop brand awareness by 30% amongst football fans, in 2 emerging markets per year, over 3
years.
(Section 2.6) Highlights the strategy to be followed when targeting and positioning global market segments.
This objective will be completed by targeting markets in phases 2, 3 and 4B. For the year 2015-16 priorities
will be focusing on building on existing work in phase 2 markets in the aim to increase brand awareness
and help to push the market in to Phase 1 stage. Strategic review is to be done Jan 2016 to reassess
market segments and initiate strategies appropriately.
2. Increase overall sales of merchandise, LFCTVand new media by 7% annually.
Although LFC have a strong commercial revenue stream (Figure 12), there is opportunity to exploit markets
further. LFC need to push sales of commercial items to safeguard them from any poor performance on-
pitch.
3. Increase annual average revenue per ticket sold by 11% within 5 years.
Over the periods 2008/09 – 2012/13, LFC had an average RPTS of £989.73 (see figure 11). With
opportunities available to enhance the match day experience (Section 1.7.4), RPTS can potentially be
increased by approximately 11%, on average, to £1100. This would result in an approximate increase of £6
per person per match (calculated by average number of matches attended in one season (19) divided by
the approximate surplus figure (£110)).
4. Increase overall engagement of existing fans, online and offline, by 15% over 3 years.
‘Engagement is highly correlated with revenue and profits’ (Bingham, 2014). Online fan engagement can be
measured through interaction on social media and via the LFC website, and offline through match
attendance, sales of merchandise and reviews left on websites such as TripAdvisor.

25. 25
2.2 - Strategic options
Ansoff’s growth vector matrix (cited in Wilson and Gilligan, 2005), has been used as a framework to
underpin the strategic ideas open to LFC to consider.
Strategic
options
Criti-
cal
issue
s
Corpo-
rate
Object-
ives
Marke-
ting
Object-
ives
Pros Cons
Market Penetration
1 Invest in domestic fan
retention (UK) 2, 3 1, 3 2, 4
Cheaper to retain consumers than to acquire
(Brassington & Pettitt, 2006). Requires minimal
effort and resourcesas loyalty is very high.
Potential w asted resource if
activities are unnecessary due
to exceptionally high fan
loyalty.
2 Invest in international
fan retention (Phase
1A and 1B)
2, 3 1, 3 2, 4
Cheaper to retain consumers than to acquire
(Brassington & Pettitt, 2006). Increased
engagement and message relevance overseas
could increase average customer spend.
Lack of expertise in these
markets.
3 Develop a
comprehensive CRM
database
2, 3 1, 3 2, 3, 4
Encourages fans to attend on match days and
to buy merchandise so that they can collect
rew ardsand use discounts/offers. Enables LFC
to capture rich data on fans to aid the
understanding of their fans behaviour and use
this to enhance the fan experience.
Could reduce profit margin
potential.
4 Expand commercial
revenue opportunities 2 1, 3 2
Increases opportunities to generate commercial
revenue and spreads financialriskacross this
revenue stream.
Risk of over-commercialising
the club. Commercial revenue
already equates to 47% of total
revenue (Figure 12)
Market Development
5 Invest in international
fan acquirement
(Phase 2, 3, 4A, 4B)
2, 3 1, 3 2, 4
Targets and exploits missed audiences (See
2.6) Brand presence in these countries w ill
enable LFC to gain market share.
Costs associated w ith
customer acquisition are high
(Brassington & Pettitt, 2006).
Lack of control: loyalty usually
derives froma family member
or success of the club
(O'Donnell, 2014:online). Lack
of expertise in these markets.
6 Invest in domestic fan
acquirement(UK) 2 1, 3 2
If successfulin acquiring fans they could
become fans of the club for life.
The UK market is saturated
(see market analysis). Lackof
control: loyalty usually derives
froma family member or
success of the club (O'Donnell,
2014:online).
7 Exploit independent
broadcasting revenue
opportunities
2 1, 3 1, 2, 4
Offers additionalbroadcasting revenue not
intrinsically linked to first team position in major
leagues and cups.
Potential lack of demand and
barriers to entry.
8 Develop global retail
and licensing
businesses (Phases
1A, 1B, 2)
2, 3 1, 3 1, 2, 3
Increases brand presence and engagement w ith
UK and overseas fans. Opportunities to
generate revenue fromuntapped markets w here
there is a strong LFC follow ing.
Little experience managing
retail outlets overseas. Riskof
failure if there is a lack of
demand.
9 Attract more
international visitors
for match days
2, 3 1, 3 3, 4
Increases match day and commercial revenues;
data fromVisitBritain show s that the 750,000
international visitors w ho came to the UK in
2010 to attend a Premier League match spent
approximately £600m during their stay (MMU,
2014).
Could require large investment
to encourage internationalfans
to attend matches e.g. ‘Red
hotel’.
10 Expand portfolio of
regional sponsorships
and partnerships
(Phases 1A, 1B, 2)
2, 3 1, 3 1, 2, 4
Creates relevancy and increases brand
aw areness and engagement in emerging
markets. Increases commercial revenue
stream.
Risk of over-commercialising
the brand.
11 Commercialise youth
and women's teams 2, 3 1, 3 2, 3, 4
Increases engagement w ith LFC as a brand and
could result in the acquisition of new fans.
Lack of demand.
Product Development
12 Enhance the match
day experience and
encourage time spent
at stadium
2, 4 1, 3 3
Increases fan engagement and could encourage
fans to spend more on match days, w ith limited
branded produce and entertainment on offer.
Enables LFC to remain competitive and
increases attractivenessto new fans, rivaling
fan zones like City Square.
Risk of alienating traditional
fans. Space available for fan
zones at LFC is limited.
Increases overhead costs of
running stadium.

26. 26
13 Continuous
development of online
digital strategy
2, 3, 4 1, 3 1, 2, 3, 4
Increases attractivenessof brand and enables
LFC to remain competitive. Increases interaction
and engagement opportunities for fans.
Time consuming; content
needs to be created for a
number of local markets.
14 Invest in, develop and
restructure firstteam 1, 2, 4 1, 2, 3 1, 2, 3, 4
Club revenues are intrinsically linked to on-pitch
performance (Figure 8) - investment and
development of the first team could improve on-
pitch successand therefore increase allrevenue
streams.
Requires substantial
investment. Success on-pitch
not guaranteed.
15 Consolidate and
enhance the LFC
brand image
2, 3 1, 3 1, 2, 4
Unifies communications w ith 'one voice'.
Improves professionalappearance and brand
attractiveness.
Existing fans may dislike
changes made to brand.
16 Expand match day
revenue opportunities 2, 3 1, 2, 3 3
Ideal time to develop opportunities due to
planned stadium expansion. Incorporated
changes, such as making the stadium ‘digital’,
could encourage spending and increase
average revenue per ticket sold. Additional
opportunities have a strong fit w ith socialtrend
of the ‘family day out’ (Section 1.1). Can charge
rent on concession stands and cut dow non paid
match day staff to reduce operationalmatch day
costs.
Potentially high capital
investments w ith riskof
alienation to or rejection from
existing fans.
17 Invest in self-
sustainable energy
resources
2 2, 3 1, 4
Reduces operational costs and enables LFC to
become a sustainable brand. Expands CSR
portfolio, potentially resulting in increased brand
attractiveness.
Return on investment not
present for a number of years.
18 Streamline in-house
operations
(restructure)
2 2, 3 0
The '…current business structure and model are
not sustainable' (MMU, 2014:23). This w ould
reduce corporate staffing costsand increase
efficiencyof processes.
May lose capabilities (skills).
May result in low staff morale.
Diversification
19 Diversify business
revenue streams (e.g.
acquire new business)
2 1, 3 0
Income not reliant on on-pitch performance or
attractiveness of LFCbrand.
Large financialrisk involved
and may lack capabilities in-
house.
Table 6: Ansoffs Matrix (1957) Adapted from Wilson & Gilligan (2006)
2.3 - Strategic evaluation
Abell and Hammond’s 3 x 3 chart has been used to identify
investment opportunities (Wilson and Gilligan, 2005).
Strategic options 2, 4, 5, 14 and 16 have been calculated
as the best investments in terms of LFC’s competitive
business strengths and strategic choice attractiveness.
Although strategies 17 and 19 are not currently viable due
to LFC’s financial position – it is recommended to explore
these options in future when the club is in a stronger
position financially. These strategies will ensure future
sustainability and profitability for the company without
reliance on the clubs on-pitch performance.
The chosen strategies will also incorporate strategies 3, 8,
10 and 12, as these will help achieve the strategies 2, 4, 5,
14 and 16.
2.4 - Justification of chosen strategies
Strategic Choice 1 (ST1): Option 2; Invest in international fan retention (Segment 1A and 1B)
LFC have a strong online fan following in Indonesia, Malaysia, Thailand, Egypt (Segment 1A), China
(Segment 1B)(Section 1.6.2) that can be capitalised on, yet there is a lack of activity and presence in
segment 1B - where demand is high.
Figure18: Abell & Hammond’s (1979) 3x3 Investment
opportunity matrix. Adapted from Wildon& Gilligan
(2005)

27. 27
It is recommended that LFC increase engagement and interaction opportunities in these countries by
growing physical store presence, supporting international fan zones and continuation of overseas pre-
season tours, introduction of loyalty rewards and localised partnerships.
LFC may not currently have the capabilities in-house to exploit these markets to their full potential and
should look to recruit people or out-source local agencies with experience dealing in these markets in order
to meet fans wants and needs.
Strategic Choice 2 (ST2): Option 4; Expand commercial revenue income opportunities
LFC are in a poor position financially (Section 1.8) yet there are a significant number of opportunities
available to them to expand their commercial revenue stream, both in emerging and existing markets,
where fans exist in their millions (1.6). LFC can implement activities to increase brand loyalty and
preferability by building a stronger presence internationally, for example through regional sponsorships.
However, there is a risk of over-commercialising the brand.
Strategic Choice 3 (ST5): Invest in international fan acquirement (Phase 2, 3, 4A, 4B)
There are opportunities to attract potential fans in emerging markets that have an increasing interest in the
Premier League, specifically, the USA, Australia and South Africa, where LFC fan bases are growing
(Section 1.3).
There are also opportunities to acquire fans in countries that have shown high interest in football generally.
The four key market segments identified as the best targets for LFC are segments 2, 3, 4A and 4B (Section
2.6) with a primary focus year one on USA and Australia.
It will be beneficial for LFC to build further brand awareness in these markets to meet this demand.
However, as these markets are still in their infancy, high acquisition rates cannot be guaranteed.
Strategic Choice 4 (ST4): Option 14; Invest in, develop and restructure first team
Figure 7 shows the correlation between on-pitch success and club revenues. As the two are intrinsically
linked, LFC should place a strong focus on improving the first team through player investment, team
restructure and youth development.
LFC’s long-serving history of success means the club has the capabilities to support the strategy, however,
due to their poor financial status, there must be extreme care and consideration in terms of player
investment - taking into account wages as a percentage of revenue to ensure FFP guidelines are met.
It is recommended to also consider investing in players who are successful both on-pitch and off, in order to
strengthen commercial marketing messages through leveraging popular players’ personalities.
This strategy will also raise the likelihood of securing places in the European competitions, increasing
brand awareness and generating more broadcasting revenue.
Strategic Choice 5 (ST5): Option 16; Expand match day revenue income opportunities
Match day revenues currently account for the lowest proportion of LFC’s income (Section 1.5). As the
stadium expansion is now underway, it is the perfect time to instigate changes to the stadium that will
increase average revenue per ticket sold.
Close competitors Manchester City increased their match day revenues by nearly 60% from 2010 (Section
1.5). Contributing to this was the introduction of ‘City Square’ where fans are encouraged to attend pre and
post-match entertainment, as well as a bar and café (Manchester City, [no date]).
Although LFC may not have the land to replicate this, they can make changes within the stadium to
increase match day experience, such as trendy street food vendors (which reduces paid staff costs and
enables LFC to charge rent for the hiring of concession stalls), introduction of new technology to the
stadium and entertainment, encouraging fan attendance and engagement. There is a risk of alienating
traditional fans with this strategy.

28. 28
Porters 5 Forces
From the industry analysis (Section 1.2.2) the strongest
threats identified to LFC were the: ‘Determinants of supplier
power (Players)’, ‘Threat of substitutes’ and: ‘Rivalry
amongst fans’.
The strategic marketing 5 year plan proposed aims to reduce
the threat of these three dominant forces as figure 20
demonstrates.
2.5 Evaluation and selection of Market segments
Domestic Market:
From the consumer analysis, three primary market segments have been identified:
Segment Justification
Domestic
1) Dad’s & Son’s:
- Low evaluation of alternatives
- High commitment to the club/football
- Favour w inning > entertainment
- High priority on service/physicalenvironment
over building relationships
- Income not an issue. Avg. weekly disposable
income £700
- Value variety & choice
- Lifetime fans
- 26% attend other teams matches
- The profile of this segment suggests they have the potential to have the greatest
w eekly disposable income and ‘income not an issue’hints that they could be high
spenders on merchandise and other match day items e.g. programmes and food.
Additionally, this segment is purchasing for a minimum of tw o people, therefore likely
to spend more than individuals.
- Behaviours such as ‘low evaluation of alternative activities’, ‘high commitment to the
club’ and ‘lifetime fans’indicate these are easy to access fans, and w illcost less to
retain them and gain repeat purchases than to acquire new or more casualfans.
- Their quality of valuing: ‘variety and choice’w ould suggest that this segment could be
best targeted w ith regularly changing, in stadium activities, and extended lines of
merchandise
(2) Juggling the kids:
- High evaluation of alternatives
- Likely to arrive at the ground late, but spend
high at half time on snacks etc.
- Spend high on merchandise
- Avg. w eekly disposable income £625
- Despite their: ‘high evaluation of alternatives’and likelihood to: ‘arrive late at the
stadium,’ this segment is highly lucrative as the parent is facilitating purchases for
potentially multiple children and they have a relatively high avg. w eekly household
disposable income.
- This segment could be best targeted w ith a loyalty scheme points based rew ards
system, targeted at both parents and children to encourage collection of points and
lifetime value. Extended merchandise lines could also be attractive to this audience.
(3) Mine’s a pint:
- Enjoy a drink or tw o either side of the game
- Arrive early to ‘park’
- Often meet acquaintances at the bar, or read
the programme
- Average weekly disposable income £ 625
- The profile suggests this segment is highly sociable; therefore enhancements to
match day food and drink services may be of interest.
- They may also show a strong interest in socialmedia. Engagement activities, from
both LFC and sponsors could maintain a voice outside of match days.
- Average earners, this group could be a lucrative primary segment to target w ith
betting activities
Table 7
Global Market:
In the consumer analysis, 7 segments were identified
and profiled. Here is how each segment will be
targeted, by switching ‘Segment’ for ‘Phase’ from
Figure 15
Website, apps and ecommerce updates, with 6
monthly reviews, will act as the vehicle for global
communications. Support will come from LFC’s 200
official fan groups and brand ambassadors who have
a strong online and physical presence in each
market.
Phase 1 A: Indonesia, Malaysia, Thailand, UAE and
Egypt. This segment has a high rate of growth and
current levels of LFC strategic activity including brand
partnerships (Honda) and Football academies (Egypt
& UAE). For the next 5 years, the primary strategic
activities will be focused on retention.
Figure19: Framework adapted from (Wilson&
Gillign, 2005: P.348)

29. 29
Phase 1 B: Hong Kong and China are mature markets with a medium level of current LFC activity. For the
next 5 years, retention strategies will be the primary strategic activity with a focus on opening a store in
China and encouraging travel to Liverpool.
Phase 2: Singapore, South Africa, India, USA, Norway, Australia. This segment is in the growth stage of
interest to BPL, they have a medium level of LFC activity. Acquisition strategies will be applied to this
segment in order to benefit from building on existing activity. Targeting will aggressively focus on two
markets per year over the next 3 years with the aim of pushing each market in to the phase 1 stage. Year 1
will focus on USA and Australia due to their fast growth and current high spend online. (Section 1.6. A
strategic review will highlight the next markets to target in Jan 2016.
Phase 3: South Korea, Japan, Netherlands, Russia, Poland, Argentina, Canada, France, Argentina,
Sweden, Mexico. This segment is in the growth stage but have a low level of LFC activity. It will be more
expensive to apply acquisition strategies to this group, however collectively they constitute approximately
9% of LFC official Facebook fans. Building engagement online, with a focus on targeting Japan for travel
will be applied in the coming 5 years.
Phase 4A: Nigeria, due to the high interest in BPL and low level of current LFC activity; this market will be
retained by current, successful, online social media activity and ecommerce sales. Due to low economy
and political instability, it will not be targeted directly with any physical commerce attempts, however CSR
activities, including player visits to Global Premier League Communities in Nigeria (Premier League, 2013a)
to build on the ‘Unity’ and ‘Community’ nature of LFC (Section 1.7)and adhere to maintain positive
communications with BPL in light of FFP breach investigations.
Phase 4B: Turkey and Germany, this segment has medium current LFC activity and low interest in BPL.
Interests in their own domestic football leagues mean efforts to convert fans in these markets could be
expensive to implement. They currently make up 4% of official LFC Facebook fans, low costing acquisition
and retention tactics will be applied to these markets to maintain support over the next 5 years.
Phase 5: Italy, Spain and Brazil. Both low in activity and interest to BPL, this segment will be targeted over
the next 5 years with existing online engagement methods including promotion of the 7 national players.
Interest in own domestic leagues indicates a low ROI due to high conversion costs.