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Real Madrid Marketing Essay

1127 words - 5 pages

Real Madrid’s brand platform can be described through their brand identity, brand personality and customer value proposition. Real Madrid’s core brand identity is one of being a world-class soccer club, rooted in prestige, effort, majesty, leadership, and champions. Building on their core, Real Madrid’s extended brand identity consists the following components:
* Heritage: 1920, royalty granted the title of Royal to the club; set standard for championship soccer; city lent their name and flair to soccer team’s name; deep local fan pride and loyalty
* Product: players and games represent quality content; obtain, develop, and promote top players
* Relationship: “one-on-one ...view middle of the document...

5 million pay-tv households; 1.5 million unique visitors to; telecom customer reach through Telefonica partnership; Real Madrid stores, fan card, and magazine
* Associations: seven soccer “superstars” with celebrity recognition, Los Galaticos, representing champions (winning), excitement (games), prestige (players); annual growth in image rights and sponsorship revenues 82% to 730% in 2003 contributed to better understanding of fans
* Perceived Quality: team’s participation and performance in major competitive events; premium pricing for content; annual growth in merchandising and licensing revenues 169%-223% with 50 contracts and 400 references
* Loyalty: members were its owners (the Socios structure); Real Madrid fan card; core socio card; match-day VIP packages (4,000 seats); season ticket holders held 58,000 seats
* Other Brand Assets: Spanish heritage, club name Real Madrid, “Madridismo”
Real Madrid’s fans consist of vast range individuals from inaccessible to accessible with varying degrees of participation, such as grass roots fans to brand advocates, with varying methods of engagement and membership in the soccer club. Fan segmentation can be identified as follows:
* The Socios: Socios absonados: cardholding, due paying members with right to go to the field every game; discount recipients on seats and voting rights to elect club presidents; Socios non-abonados: recipients of price discounts on available tickets and merchandise; club’s magazine recipients; attend two matches per year
* Supporter: non-due paying member who attend matches whenever he or she can by purchasing admission tickets
* Fan: list team as his or her favorite, although they could be socios of another club; support Real Madrid in UEFA games and local team otherwise; organizations of local Real Madrid fans attended matches together and benefit from discounts on games

Based on Real Madrid’s business model, the organization faces potential risks associated with their talent, the key component of their strategy. With the average age of Real Madrid’s players reaching 26 and contracts with “superstar” players expiring, the organization must evaluate how to sustain their strong market position. In conjunction with internal talent challenges, external talent pressures existed. The presence of new market participants, such as wealthy owners, created a potential challenge of...

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