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Real Madrid Case Study
The document discusses Real Madrid's status as a legendary soccer club, emphasizing its strong fan loyalty and historical significance in international soccer. It outlines the club's vision, mission, revenue streams, and transformation strategies while also addressing challenges such as overexposure and commercialization. Additionally, it highlights the importance of branding, customer experience, and market segmentation in enhancing the club's global presence and financial performance.
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Real Madrid Case Study
- 1. « In Spainit is easier to change spouses, political party or religion than it is to change soccer club. In soccer, a fan is a fan for life. » REAL MADRID Ines SCHULLER Lambert ROLLAT Brittni PING Guru PRASAD Xiadong JIANG (Vincent) Chantal INGRAM Rong XHAI (Vanessa)
- 2. • • • • • • • • Soccer - birthof legends Rise & shine The turn around Dead end or reaching the stars? Rivalry Figuring ways to victory Scoring our goals Let’s get busy YOUR NEXT 90 MINUTES +2
- 3. • Most popularsport worldwide • Core promise - victory and a good show • Largest soccer clubs in Spain (Real Madrid - FC Barcelona) • Associations SOCCER – BIRTH OF LEGENDS
- 4. • Category: FootballClub Spain (La Liga) • Sector: Sports • Slogan: Hala Madrid! • Segment: Millions of people across the world who love to play or watch football • Target Group: Typically, men in the age group 15 and above globally RISE & SHINE
- 5. Madrid Football Club FIFA 1902 1904 RISE & SHINE Kingof Spain granted Royal (“real”) to the club 1920 EU Cup Final made Real Madrid bestknown soccer team 1960 Players are free agents 1995
- 6. • Vision: Tobe the best soccer club in the world • Mission: To leverage the Real Madrid brand globally • Goals: • Financial flexibility • Team of top players • Leverage the Real Madrid brand and content across variety of distribution channels VISION & MISSION
- 7. 2000 Name : Florentino PérezRodríguez Position : President of Real Madrid Tenure : 2000 - 2006 & From - 2009 Background : Businessman / Civil Engineer THE TURN AROUND
- 8. • Old Trainingpitches • Generates €500 million Sell Assets Buy Back rights • Boxes in stadiums - €16 million • Refurbish & double boxes • In ground perimeter space Develop them Generate Income • € 16 Mills / Year THE TURN AROUND SOCIEDAD MIXTA • • • • • Merchandizing Sponsorships Distribution business Online business Contracts
- 9. SELLING SHARES 2000 Year 2000 10% TeamReal Madrid Caja Madrid 20% 70% Sogecable THE TURN AROUND
- 10. GROWTH IN REVENUES MarketingRevenues in Millions € 142 Forecasted • SPONSORS 83 39 2000-2001 THE TURN AROUND 2003-2004 2005-2006
- 11.
- 12. Building the walls… Where is the ROOF ? Merchandising Match Day Broadcasting • • Others THE TURN AROUND • • • RM TV Broadcasting Rights www.realmadrid.com Magazines Fan Card
- 13. How to transferReal Madrid fans and supporters into dedicated customers ? • Ratio: revenue/number of fans (in million €) -> Manchester United : 251.4/45= 5.50 -> Real Madrid : 192.6/93 = 2.07 DEAD END OR REACHING THE STARS?
- 14. Tangible Intangible • New marketparticipant – foreign investors • Overexposure & excessive commercialization • Player focus • Counterfeit products • Element of uncertainty • Lack of talent SUBISSUES
- 15. • Ownership: Privatefixed membership – around 55 000. • Operation: As a professional organization. • Business model: Pursuing most famous players at all costs. • Players are portfolios under Real Madrid Brand. RM has 50% of image rights (= 50% of income) – can be win-win for all parts. RIVALRY • Ownership: Private membership of around 200 000 + public shares. • Operation: as a professional sports team. • Business model: Heavily depends on retail, merchandizing, apparel and product licensing performance – fans’ spending.
- 16. International marketing and new technologies,3% Merchandize, 15% Commercial, 27% Match day, 46% Match day, 41% Sponsorship, 10% Broadcast, 26% Media, 32% • Revenue Stream: 2003 • Revenue Stream: 2003 • Revenue 2003: 192.6 €m • Number of fans: 93 million • Revenue 2003: 251.4 €m • Number of fans: 51 million RIVALRY
- 17. Building a storyof value – brand & content – in order to exploit Real Madrid’s brand equity globally • • • • Clustering China, India & US Targeting of different segments Use emotions and sentimental attachment Player-studded advertising STRATEGY
- 18. Actions Transformation of fans into customers Increase revenues Gainnew market share Image Public share offers - ++ + -- Market development CIU + ++ ++ ++ Product diversification +++ ++ + ++ Local & MNC partnerships ++ ++ ++ + Sponsors + ++ + + Focus on sourcing of players ++ ++ ++ ++ FIGURING WAYS TO VICTORY
- 19. • Market developmentChina, India & US • Promoting soccer through fan tours • RM Junior Tournament • Product diversification • Diversification of Socios membership card & Hala Madrid magazine (local discounts) • Exploit internet-based technologies (website, mobile internet) • Retail outlets (exclusivity & experience) SCORING OUR GOALS
- 20. • Local &MNC partnerships • Local soccer clubs • Fast Food chains: toys • Limited edition products • Sponsors • Charity to improve image (UNICEF) • Focus on sourcing of players • CIU brand ambassadors • Focus on young player program SCORING OUR GOALS
- 21. • Philosophy ofMarketing: Customer knowledge Experience PROFIT $$ • 1) Which need does Real Madrid reinforce for its consumers/fans? • 2) Which ways could Real Madrid Segment its market? LET’S GET BUSY
- 22. • Segmentation • Marketing/Merchandising •Cost • Going Public DEVIL’S ADVOCATE