Real Madrid Final

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Real Madrid Final

  1. 1. Story so far <ul><li>1902 - Founded as the Madrid Football Club </li></ul><ul><li>1905 – First International Game </li></ul><ul><li>1920 – Granted the Title of Royal (“Real”) by the King </li></ul><ul><li>1927 – First International Tour of U.S </li></ul><ul><li>1947 – Opening of Santiago Bernabeu Stadium </li></ul><ul><li>1955-60 – Winners of European Cup Competition </li></ul><ul><li>1966 – Wins European Cup Sixth Time </li></ul><ul><li>1998 – Seventh European Cup Victory </li></ul><ul><li>1999 – </li></ul><ul><li>2000 – </li></ul><ul><li>2001 – </li></ul><ul><li>2002 – </li></ul><ul><li>2003 – </li></ul><ul><li>2004 – </li></ul><ul><li>2006 – </li></ul><ul><li>2007 – </li></ul>
  2. 2. “ Hall Of Fame” <ul><li>Intercontinental Cup – 3 (’02) </li></ul><ul><li>European Cup – 9 (’01-’02) </li></ul><ul><li>UEFA Cup – 2 (‘85-’86) </li></ul><ul><li>Spanish Championship – 29 (’02-’03) </li></ul><ul><li>European Super Cup – 1 (’02) </li></ul>
  3. 3. Vision “ To be the best Soccer Club in the World” Mission “ To nurture and project the Real Madrid brand Worldwide” <ul><li>Brand Value Drivers </li></ul><ul><li>Size of Audience </li></ul><ul><li>Frequency with which the audience engaged with the Brand, as a measure of commitment </li></ul><ul><li>Sociodemographic Characteristics of the audience </li></ul><ul><li>Bridges (local fan association) to link the brand and the audience </li></ul>
  4. 4. Goals Give Real Madrid the financial flexibility to acquire Talent and expand its Brand reach Assemble a Team of Top Players Leverage the Real Madrid brand and content across a variety of channels
  5. 5. <ul><li>Characteristics </li></ul><ul><li>Top Club with Consistent Success at National and European Level </li></ul><ul><li>International Superstar Players and Fan Base </li></ul><ul><li>Names as recognizable as other International Brand as Nike , Adidas </li></ul><ul><li>Key Objectives </li></ul><ul><li>Continue to Win </li></ul><ul><li>Generate Profits Through International Business Expansion </li></ul>
  6. 6. <ul><li>Inspiration </li></ul><ul><li>The model adopted by Real was not unique. Main source of inspiration were </li></ul><ul><li>Manchester United </li></ul><ul><li>Disney’s The Lion King </li></ul><ul><li>Key Features </li></ul><ul><li>Brand Image and national fan base made on Prior Success </li></ul><ul><li>Further Fan Base , Corporate Base and Brand Development made possible by continuous success on the Pitch with International Star Players </li></ul><ul><li>Stadium and Other Facilities equipped to generate Football and Non-football Revenues from fans and Corporates </li></ul><ul><li>Untapped International Market with opportunities for further expansion </li></ul>
  7. 7. <ul><li>Strengths </li></ul><ul><li>Strong Brand with appeal beyond Traditional Football Market </li></ul><ul><li>Sizable and Loyal international and local fan Base </li></ul><ul><li>Attraction for Media, Advertisers and Financial Investors </li></ul><ul><li>Weakness </li></ul><ul><li>Significant Wage Bill </li></ul><ul><li>Significant asset base that needs qualified management </li></ul>S.W.O.T.
  8. 8. S.W.O.T. <ul><li>Opportunities </li></ul><ul><li>Dominate International Market due to winner-takes-all principle </li></ul><ul><li>Develop non-traditional revenue streams </li></ul><ul><li>Leveraging Media coverage and Star Player’s Fame </li></ul><ul><li>Threats </li></ul><ul><li>Further Growth of Wage Bill </li></ul><ul><li>Decreasing Success on the Pitch </li></ul>
  9. 9. Sports Marketing
  10. 10. Market Segmentation <ul><li>SPORTS FANATICS Predominantly young and male who follow news, scores and statistics and who have taken to new technologies such as personal computers and mobile phones to consume even more sports content. They tend to be loyal to the team and brand and spend the most on merchandise and related products </li></ul><ul><li>CLUB AND TEAM LOYALISTS </li></ul><ul><li>Loyal to their club, and after sports fanatics, the most likely to attend sports events. They obtain information and analysis about their team on TV, radio, newspapers and the internet </li></ul><ul><li>STAR-STRUCK SPECTATORS Followers of a superstar, rather than a particular team. These fans take part in online interactive fantasy sports. The trick for the club is to transfer their fanaticism to the team or sport before the star retires or moves to another team </li></ul>
  11. 11. <ul><li>SOCIAL VIEWERS Mainly corporate users who take to sports as a tool for net-work building. Not necessarily loyal to any team but this group spends big money on corporate suites and related services on behalf of their company. </li></ul><ul><li>OPPORTUNISTIC VIEWERS Consumers of sports through traditional channels such as TV. They will only attend an event if they are asked and typically, will only spend their money on food and beverages. For them, sport is simply one form of entertainment </li></ul><ul><li>SPORTS INDIFFERENTS Not interested in team sports, sporting events or sports pro-gram, unless it's something big like the Olympics. Usually get their information from TV or by chance, when channel surfing </li></ul>Market Segmentation
  12. 12. Real Madrid’s Customer <ul><li>Watches Real Madrid Games in Stadium , Television </li></ul><ul><li>Buys Real Madrid Accessories </li></ul><ul><li>Follows the Stars </li></ul><ul><li>Eats, Drinks & Breathes Football </li></ul>SPORTS FANATICS TEAM LOYALISTS STAR-STRUCK SPECTATORS
  13. 13. Merchandising <ul><li>Jerseys </li></ul><ul><li>Mugs </li></ul><ul><li>Clocks </li></ul><ul><li>Tops </li></ul><ul><li>Coasters </li></ul><ul><li>Shorts </li></ul><ul><li>Teddy Bears </li></ul><ul><li>Bibs </li></ul><ul><li>Aprons </li></ul>A gamut of products caters to a wide fan base which consists of different ages ,incomes and geographies. The idea is to make the brand Real Madrid a part of the everyday lives with the dual objectives of revenue generation and elevation of the brand to a cult like pedestal
  14. 15. “ To generate more revenues we need more fans and to accommodate more fans we need a bigger stadium” -Santiago Bernabeu Thus In 1947 , the Santiago Bernabeu stadium was constructed. rated by the international press then as the best in Eurpoe
  15. 16. Match Day <ul><li>Tickets: Important but declining source of revenue worldwide </li></ul><ul><li>Spain : season ticket holders ensure incoming revenue </li></ul><ul><li>Categories </li></ul><ul><ul><ul><li>Season Ticket holders :58000 in number </li></ul></ul></ul><ul><ul><ul><li>VIP seats : Boxes with Champagne,4-course meal, T.V. & Video, Reserved parking (4000 in number) </li></ul></ul></ul><ul><ul><ul><li>Match day sales </li></ul></ul></ul>
  16. 17. Sponsorship <ul><li>Accounts for up to 20 % of Revenue </li></ul><ul><li>Jersey Sales are the biggest money spinners. (8000 sold on the day Beckham joined) </li></ul><ul><li>Player’s individual sponsors also contribute a % to the club’s revenues </li></ul><ul><li>“ Audi” has provided a car to each the players and team officials </li></ul><ul><li>Mobile service provider “Telefonica” delivers Real Madrid content over Internet, Broadband and Mobile services </li></ul>
  17. 18. T.V. Rights <ul><li>Largest revenue earner among the four categories </li></ul><ul><li>Telecast Rights given to broadcasters, but after 2002 collapse of Kirch and ITV many clubs formed their own T.V. channels </li></ul><ul><li>Real Madrid T.V. : A 16 hour dedicated TV channel focusing on training ,history and Matches </li></ul>
  18. 19. Real Madrid T.V.
  19. 20. The players :The Best lineup money can buy Raul Ronaldo Figo Beckham Zidane Roberto Carlos Iker Casillas <ul><li>Stars in their own right </li></ul><ul><li>Demi-gods of the modern era </li></ul><ul><li>Brands in themselves </li></ul><ul><li>Termed as the United Nations of Football </li></ul>
  20. 21. Balance of Power <ul><li>Players </li></ul><ul><li>Pros </li></ul><ul><li>Brands in their own right </li></ul><ul><li>Huge fan following which worships them whatever the club be </li></ul><ul><li>Cultural icons of their respective countries </li></ul><ul><li>Cons </li></ul><ul><li>Short career span : Play with the “get it while u r at it” attitude </li></ul><ul><li>Have a better chance of performing when they play as a team </li></ul><ul><li>Real Madrid </li></ul><ul><li>Pros </li></ul><ul><li>Not a club anymore but a Super brand in itself </li></ul><ul><li>Will last much longer than the players </li></ul><ul><li>Have a devout following of the Spanish public (The Socio Factor) </li></ul><ul><li>Cons </li></ul><ul><li>Loses teeth when out of stars </li></ul><ul><li>Dependence : Needed star value to bring it out of doldrums in the late 90 s </li></ul>

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