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    Ading Januandry 29109090Akbar Firdaus 29109018Deanna Lanisyavenia 29109002Hegi Asri 29109044Intan Dewi P 29109001

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    Football

    The Worlds Most PopularSport

    Ruled by FIFA

    World Cup has a cumulativeaudience of 28.8 billionviewer.

    Olympic only reached 4 billionviewer

    SuperBowl only reached 750million viewer

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    Why Men Love Football?

    Because its a beautiful

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    Real Madrids Timeline

    i b

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    Santiago BernabeuStadium Evolution

    The Near

    1947

    1953

    198

    2

    199

    8

    200

    8

    1923

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    Real Madrid ExecutiveTeam

    Today a modern soccer club needs to have a professional organization that makes decision withthe head not the heart

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    Professional Soccer ClubManagement

    In the 1990sEuropean

    professional soccer

    transitioned fromthe traditional

    business model

    emphasizing gatereceipt and localcorporate

    sponsorship to astrategy of

    ManchesterUnited is good at

    this

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    Manchester UnitedBrand

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    Profitability

    A lot of Clubs went bankrupt because player wagesoutpaced revenue

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    Percentage for2004-2005

    Match Day

    Revenue Stream

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    Cost Structure

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    Public Share Offers

    In 1999, shares of33 soccer club werelisted in stockexchanges

    Top club wereinitially attractivebecause of highrevenue forecastand operating

    profits

    Soccer was a lot more volatilethan for mainstream companiesand the capitalization could drop

    like a stone after one bad

    season

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    Over 10,000 soccer club

    Over 50% Spaniards

    soccer fans (72% men-28% women)

    60% soccer fans Real

    Madrid (70% men-30%women)

    Professional Soccer in

    Spain

    In Spain it is easier to change spouses, political party or

    religion than it is to change soccer club

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    Transforming the Real

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    16 M per year from rights

    12 M per year (Siemens) fromsponsorship

    30 vehicles from Audi

    Marketing Revenue rise from 39 M

    in 2000-2001 to 83 M in 2003-2004

    Financial Performance

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    Real Madrid Revenue

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    Market Share Based on

    Popularity

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    The Galacticos

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    4/28/12 When Players Transfer they bring their fans

    with them

    Players Country ofOrigin

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    MANAGING THE BRA

    AND CONTENT

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    Attracting and retaining starplayers .

    Madrid studied Disneysleveraging of the movie The Lion

    King to understand the models ofsuccessful content exploitation.

    Madrid want to convert their fans

    into customer. Real MadridTV

    Real Madrid website

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    Real Madrid Fan card:

    its different with the core socio card.The holders received a free Hala Madrid

    subscription, ticket preference, no-fee Visacredit card, and commercial discounts and

    from partner companies.

    this gives its members feeling ofexclusivity

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    EXPANDINGINTERNATIONAL

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    Asia and US is one of their target

    to expanding the Madrid brandinternationally.

    Perez want to capture about 10%

    of the Chinese market forsports merchandise by 2013.

    Their plans in Asia:Football academic, fan clubs,

    specialty shops, restaurants, and caf.

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    Madrids plans at U.S :

    1. Content development ( trainingvideos, cartoon series, and highlightpackages)

    2. Fan loyalty3. Development of intangible assets

    (lectures, football academic)

    4. Asset development (merchandisinglicensing and distribution)

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    REAL MADRIDSSECOND CENTUR

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    The worrying things to Real

    Madridthe age of the superstar,

    the limit of their contract at Real,

    and great players will cease to exist.

    Real Madrid managers were wary ofoverexposure and excessivecommercialization

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    Asian and US Tour

    Sport Merchandise to the rest of theworld

    Affiliation with local leagues

    Soccer Academies

    Partnership with major global brands Fan Clubs

    Specialty Shop

    Expanding

    Internationally

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    Competition UEFA Champion League : 2000 and 2002 Spanish league : 2003

    Financial Marketing Revenue rise from39 M in 2000-2001 to 83 M in2003-2004

    Fourth position Soccer Club interm of Income (2003) Real Madrid remain top of theDeloitte Football Money Leaguefor the fourth successive season

    (2010)

    BrandNumber 1 Leading soccer club in 4countries and 2 region

    Galacticos Project

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    Real Madrid case Discussion

    a s e ea a r

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    a s e ea a rbusiness model? Is it

    unique?

    a s e ea a r

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    a s e ea a rbusiness model? Is it

    unique?

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    Complementary RevenueDriver

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    Why Real Madrid is one of the uniquefootball club??

    because it straight to theheart and endless list of positive

    values: prestige, effort, majesty,and leadership.

    Other values transmitted from

    father to sons included excellence,fair play, solidarity, and sense ofsacrifice.

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    W o are Rea Ma r s

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    W o are Rea Ma r scustomers?

    All soccer fans in Spain 21,172,671 people (year 2003)

    Madridista 12,703,603 people

    Men : Women = 8,892,522 :3,811,081

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    Over 13 million customers registeredin 2010 (www.bwin.com)

    Highest fan concentration occurred innorth and northwest of Spain

    http://www.bwin.com/http://www.bwin.com/
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    Other customers

    Sponsor : Accounted for up to 15% ofrevenues

    Adidas, Pepsi and Telefonica

    TV partner:

    European pay-TV, Germanys Kirchand UKs ITV Digital

    H i h k

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    How is the marketsegmented?

    Classified by needs

    and expectations

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    Grass roots

    Sociosabonados

    Cardholdingmembers whopaid their duesand had the

    right to go tothe field player,got discounts

    on seats and a

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    Who has more power, RealMadrid or the players?

    Real Madrid

    Real Madrids Brand

    The Club Ranks #1 In terms ofPopularity

    Real Madrid is Seriously Loaded

    Gentleman's agreement with otherclubs

    Considered as the best place to have aprofessional football career

    Wh t i k d R l M d id

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    What risks does Real Madridface?

    Playing a bad season despite beingfull of star players

    Players injury

    Over Exposure

    Pirated Merchandise

    Regeneration of the Galacticos is noteasy

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    THANK YOU