The Presentation is Submitted to Kedge Business School . It analyses the position of Team Real Madrid from a case from HBS and recommends solutions for it.

1. « In Spain it 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 - birth of 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 popular sport worldwide
• Core promise - victory and a good show
• Largest soccer clubs in Spain (Real Madrid - FC
Barcelona)
• Associations
SOCCER – BIRTH OF LEGENDS

4. • Category: Football Club 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
King of 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: To be 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 Pérez Rodríguez
Position
: President of Real Madrid
Tenure
: 2000 - 2006 & From - 2009
Background
: Businessman / Civil Engineer
THE TURN AROUND

8. • Old Training pitches
• 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%
Team Real
Madrid
Caja Madrid
20%
70%
Sogecable
THE TURN AROUND

10. GROWTH IN REVENUES
Marketing Revenues in Millions €
142
Forecasted
• SPONSORS
83
39
2000-2001
THE TURN AROUND
2003-2004
2005-2006

11. Assembling
GALACTICOS
THE TURN AROUND

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 transfer Real 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 market participant –
foreign investors
• Overexposure & excessive
commercialization
• Player focus
• Counterfeit products
• Element of uncertainty
• Lack of talent
SUBISSUES

15. • Ownership: Private fixed
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 story of 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
Gain new
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 development China, 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 of Marketing:
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