Case Analysis: Real Madrid Club de Futbol Essay Sample

A. ) Introduction

Over clip. association football has developed into one of world’s most popular games. Its simple regulations and easiness of playing has made it attractive to male childs and misss of all ages from state to state. The rise of popularity of association football can be seen in many topographic points. From video games to dressing ware. association football fans are passing more money and clip affecting their passion. One’s ain place is another topographic point the rise of popularity in association football can be seen with more games being televised. World Cup games raise the involvement in many people from throughout the universe. Magazine screens are having the athletics and its stars on a regular footing.

Even with the changeless growing in popularity. association football remains a concern. The ultimate end for each and every association football franchise or nine is to be profitable. To make this. many marketing techniques must be exploited. First endowment can be brought in to assist set a better merchandise on the field and besides to assist increase the involvement in the squad itself. The New York Yankees of Major League Baseball’s American League is a premier illustration of this. Year after twelvemonth the Yankees bring in baseball’s top free agents to assist set a competitory squad on the field that seems to ever be in contention for the conference title. By increasing the paysheet and staying competitory. fans keep coming to the games and remain interested in the squad itself. which helps sells tickets and increase grosss.

B. ) Situation Analysis:

Nature of demand

The merchandise. the existent trade name of the Real Madrid Soccer Club already exists. With association football being a popular athletics. over 240 million people kick a association football ball at least one time a hebdomad. association football has a big mark market. Although its mark market is comparatively big ; aiming association football fans all across Spain. but non restricting themselves and desiring to distribute internationally. association football fans throughout the universe used merchandises from either Real Madrid or its competition to demo trueness to his or her favourite squad. There is a seasonal nature to demand with association football season stand foring high demand and the off-season monthly demoing a perceptibly lower demand. The Real Madrid Brand merchandises can be purchased in many topographic points all throughout Spain. and in today’s society. the cyberspace has proved to be really good in merchandise gross revenues. All viing merchandises consist of the same nucleus things. so it is genuinely the consumer’s pick to which he or she selects.

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With merely six association football alliances. trade name consciousness is rather high. Households normally show trueness and do non purchase multiple trade names. Each association football nine has its ain franchise. There is no set audience. with male childs and misss of all ages being association football fans in today’s society. and all holding some say so in the purchasing determination. The purchasing determination is seen as a Godhead of satisfaction. The Real Madrid is seeking to happen a manner to market its merchandise and be a trade name itself. They are seeking to increase its fan base which would in bend take away from its rivals. The determination to spread out the Real Madrid’s fan base came from upper direction including the nine president. Florentino Perez.

Extent of demand

It is said that over 240 million kick a association football ball each hebdomad. Soccer is the world’s most popular athletics. England. France. Germany. Italy. and Spain make up the big-five association football states in Europe. while Argentina. Brazil. and Mexico make up the Americas with the United States non far behind. About 75 % of Latin Americans and 50 % of all Europeans are interested in televised association football. Television coverage of the 2002 World Cup reached 213 states. with over 410. 000 hours of programming. There were a combined 28. 8 billion viewing audiences compared to the Super Bowl holding 750 million viewing audiences worldwide. Television viewing audiences for the 2004 Summer Olympic Games had a continued involvement with over 4 billion viewing audiences. With this tendency and the rise in young person playing association football. there is great growing potency within the market.

Nature of competition

The Real Madrid has several cardinal rivals. most perceptibly Manchester United. Manchester United has become a association football human dynamo merely as the Real Madrid one time was and desires to be. Most other association football nines have structured selling runs set out to derive a greater fan base. The Real Madrid and its president. Florentino Perez. want the same out of its squad without losing on the concern side. To vie. they must go on to convey in universe category endowment on the field. The Real Madrid is a 29-time Spanish national and nine-time European title-holder and wants to go on that illustriousness. All rivals have developed a scheme vision and when elected nine president in 2000. Perez rapidly developed a vision for the Real Madrid. The Real Madrid’s mission statement was as follows. “Our mission is to raising and project the Real Madrid trade name worldwide. “

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Environmental clime

In its current signifier. there are no societal or economic menaces to the association football universe. Soccer is considered a leisure activity. significance in slow economic times. association football could non be low-cost by all. There is ever the menace that an bing association football squad could acquire a participant to better heighten their current squad. increasing its fan base. There are no governmental ordinances sing competition. Just as the Real Madrid is seeking to break its trade name. so is its competition.

Phase of merchandise life rhythm

The Real Madrid and its competition are in the adulthood stage of the merchandise life-cycle. Brand and merchandise consciousness are high in its mark market. and growing has is in a steady form. The Real Madrid has been in being since the early 1900’s. Merely as the times have changed. the merchandise and its ways produced to consumers have changed.

Cost Structure of the industry

All professional association football nines have to cover fixed costs and finance talent acquisition and keeping. Professional association football nines frequently had to construct their ain bowls. but stadium leasing was besides common. Many disbursals are accumulated to run a association football nine. Many employees are needed to assist that games run swimmingly. All of the Real Madrid’s competition is in the same province in footings of fiscal emphasis.

Skills of the house

It is apparent that the Real Madrid has the accomplishments to derive a big market portion through efficient advertisement and publicity. The nine is rich in tradition and history which is really good to them. The nine might look to be in a dead stage. but based on its yesteryear. it can get the better of it easy. All indexs point to reorganisation of its merchandise line. alternatively of a reconstructing stage. Strong direction accomplishments can be seen with Florentino Perez being a well-known Spanish man of affairs.

Fiscal resources of the house

The Real Madrid earned 192. 9 Cm in 2003. Manchester United’s 2003 income was 251. 4 Cm. The Real Madrid ranks in the top 5 twelvemonth after twelvemonth in grosss. A fiscal dislocation is non given. but one can clearly presume that there are adequate grosss to hold an efficient selling run.

Distribution construction

The Real Madrid sells its merchandises at the bowl. athletic shops. and on the cyberspace. Local sellers besides distribute some of its merchandises to demo support of their squad.

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C. ) Identifying Problems and Opportunities

Problems for the Real Madrid started happening with old direction. Florentino Perez is seeking urgently to assist them retrieve and go a top notch association football squad one time once more. Competition has besides found new and advanced manner to market their merchandise. doing the dead stage for the Real Madrid. Key chances originate each clip universe category endowment becomes available. The Real Madrid must get and retain these participants to stay competitory to assist maintain the fans interested in them and to get new fans. Everyone likes a victor. Perez must besides use his concern accomplishments to assist the nine remain profitable. Everything else aside. association football is still a concern. The Real Madrid must besides do the most of their selling chances. such as the cyberspace. to assist pull new fans and construct their trade name. Overall the Real Madrid has done a just occupation in taking its market sections. There is much room for betterment though as others have caught up. The competition is aggressive.

D. ) Generating and Evaluating Options

The Real Madrid has a twosome of options. They can pass money and get and retain top category endowment and put a title quality squad on the field each and every twelvemonth. Another option the Real Madrid has is to pass more money in their selling and advertisement sector. This could in turn increase their fan base and grosss every bit good.

E. ) Decision and Conclusion

There will be a continual demand for merchandises of the Real Madrid trade name. In order to maintain these in at a competitory province. the Real Madrid must set a competitory squad on the field. As antecedently stated. this will sell more tickets and increase the fan base. Top endowment brings much expectancy to a athleticss squad. Take for illustration the Houston Astros. They signed one of the games greatest hurlers in Roger Clemens merely before the 2004 season. The twenty-four hours of his sign language. ticket gross revenues rose through the roof. Additional phone lines had to be installed merely to manage all of the calls in consequence of the Clemens sign language. To travel along with this. more ware was sold thought the season. All throughout the bowl. you could descry # 22 Clemens New Jersey. which means dollars to the Astros organisation. Bottom line is better squads produce better grosss.