Manchester United Brand Audit - Weeblymichaelmatthews19.weebly.com/uploads/4/8/3/9/... ·...

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Manchester United Brand Audit By: Michael Matthews

Transcript of Manchester United Brand Audit - Weeblymichaelmatthews19.weebly.com/uploads/4/8/3/9/... ·...

 

 

 

Manchester  United  Brand  Audit    

     

By:  Michael  Matthews  

 

  1  

Table  Of  Contents  Company  Information                   2-­‐5  

Category  and  Competition                 6-­‐7  

Brand  Analysis                     8  

Consumer  Profile                   9  

Advertising                     10  

Media                       11  

Internet                       12  

Social  Media                     13  

Other  Brand  Information                 14  

Brand  Value                     15  

Research  and  Recommendation               16  

                                         

 

  2  

Company    

Location:  Manchester,  UK.  

 

Organization:  English  Premier  League  (EPL)  Football  (soccer)  Club.      

 

Subsidiaries:    

• Red  Football  Finance  Limited  

• Red  Football  Holdings  Limited  

• Red  Football  Shareholder  Limited  

• Red  Football  Joint  Venture  Limited  

• Red  Football  Limited  

• Red  Football  Junior  Limited  

• Manchester  United  Limited  

• Manchester  United  Football  Club  Limited  

• MU  Finance  plc  

• Manchester  United  Interactive  Limited  

• Manchester  United  Commercial  Enterprises  (Ireland)  Limited  

• Alderley  Urban  Investments  Limited  

• MUTV  Limited1  

 

History:    Founded  in  1878,  Manchester  United  was  originally  named  Heath  L&YR.    In  1902,  

the  name  changed  to  Manchester  United  Football  Club.    In  1908,  the  club  won  it’s  first  

English  League  Title,  and  in  1910,  Manchester  United  moved  to  Old  Trafford,  the  current  

stadium.2  

   

   

                                                                                                               1http://www.mergentonline.com.libproxy.utdallas.edu/companydetail.php?pagetype=subsidiaries&compnumber=135035    2  http://ir.manutd.com/company-­‐information/history.aspx    

 

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Company  Financial  Data:    Interestingly,  a  large  amount  of  Manchester  United’s  Non-­‐Current  Assets  is  

Goodwill,  “the  value  of  a  company’s  brand  name,  solid  customer  base,  good  customer  relations,  

[and]  good  employee  relations.”3    This  basically  states  that  Manchester  United’s  name  accounts  for  

approximately  $662  million.4

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                                                                                                               3  Definition  of  Goodwill  according  to  Investopedia.  4  http://ir.manutd.com/~/media/Files/M/Manutd-­‐IR/Annual%20Reports/manchester-­‐united-­‐plc-­‐20f-­‐20141027.pdf    5  http://www.mergentonline.com.libproxy.utdallas.edu/companydetail.php?pagetype=highlights&compnumber=135035Numbers  shown  in  Great  Britain  Pounds.    

 

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Company    

Key  Personnel:    

Avram  Glazer:  Executive  Co-­‐Chairmen    

Joel  Glazer:  Executive  Co-­‐Chairmen  

Louis  van  Gaal:  Club  Manager  

 

Recent  News:  On  May  19  2014  ,  Louis  van  Gaal  was  named  manager  with  a  three  year  

contract.    Van  Gaal  has  brought  in  many  great  talents  with  a  combined  spending  of  

£145,500,000.    Manchester  United  is  currently  in  3rd  place  in  the  English  Premier  League  

and  on  a  6  game  winning  streak.  

 

     

 

 

 

                             

 

 

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Category  and  Competition    

Category  Definition:  Manchester  United  is  listed  as  a  holding  company.    With  its  

subsidiaries,  it  engages  as  a  professional  football  (soccer)  club.    The  category  is  most  easily  

defined  as  professional  sports  however.    Any  team  in  any  country  that  pays  individuals  to  

compete  under  their  name  can  be  considered  a  professional  sports  organization.  

 

Size  of  Category:    The  English  Premier  League  contains  20  teams,  however  from  a  brand  

standpoint,  no  team  compares  to  Manchester  United.      Therefore  I’ve  expanded  the  

category  to  include  all  professional  sports  team,  which  amounts  to  thousands  of  teams.  

Category  History:  The  first  recorded  moment  of  professional  sports  was  in  the  mid  19th  

century,  when  baseball  players  charged  people  gate  prices  and  then  divided  it  amongst  

themselves.6    Since  then,  professional  leagues  for  each  sport  were  formed  and  the  clubs  

employing  the  players  has  handled  payment.  

 

Methods  of  Distribution:  Retail,  ecommerce,  ticket  sales,  television  revenue.  

 

Major  Players:  Manchester  United  competes  on  a  global  stage  in  soccer,  and  also  competes  

in  a  business  sense  against  global  competitors  from  different  countries.    Forbes  50  most  

valuable  sports  team  lists  Manchester  United  3rd  with  a  valuation  at  $2.81  billion.    It  sits  

behind  Spanish  superpowers  Real  Madrid  and  Barcelona  valued  at  $3.44  billion  and  $3.2  

billion  respectively.    In  4th  sit  the  New  York  Yankees  with  a  $2.5  billion  valuation  and  the  

Dallas  Cowboys  round  out  the  top  5  at  a  $2.3  billion  valuation.7  

 

Seasonal  Factors:  The  English  Premier  League  Season  runs  from  August  through  May.    

Therefore  no  ticket  revenue  is  generated  outside  of  those  months.    However,  Manchester  

United  normally  takes  a  tour  of  the  United  States  and  the  rest  of  the  world  during  the  

summer  months,  generating  retail  sales  in  other  countries,  as  well  as  television  revenue.  

 

                                                                                                               6  http://www.hhp.txstate.edu/hper/faculty/pankey/1310/ch17Bread.htm  7  http://www.forbes.com/pictures/mli45ejlgl/1-­‐real-­‐madrid-­‐2/  

 

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Category  and  Competition    

Regional  Factors:  Manchester  United  plays  a  majority  of  its  games  in  Europe.    Since  they  

have  a  large  worldwide  following,  it  seems  they  would  lose  opportunities  at  ticket  sales,  

however  they  have  sold  out  their  stadium  since  1997.    With  today’s  technology,  there  are  

no  real  regional  restrictions.        

 

Legal  Restrictions:  Trademark  and  Copyright  Violations.  

 

Products:  Manchester  United  has  no  real  products  in  and  of  itself.    It  licenses  its  logo  to  

merchandizers.    Its  logo  is  used  on  many  companies  retail  products,  such  as  Nike  and  

Addidas.    Manchester  United  branded  products  are  sold  through  200  licensees  in  about  120  

countries.  8  

 

       

 

 

                                                                                                                   8  http://ir.manutd.com/company-­‐information/about-­‐manchester-­‐united.aspx  

 

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Brand  Analysis    

 Top  Brands:    The  top  brands  in  this  category  are  the  same  competitors  mentioned  early,  

specifically  Real  Madrid  and  Barcelona.    Because  American  sports  teams  are  privately  

owned,  most  of  their  financial  information  is  not  public  knowledge.    Real  Madrid  reported  

earnings  of  $219  million  from  their  marketing,  which  includes  licensing.9    Barcelona’s  

information  is  only  in  Spanish,  and  has  not  been  updated  since  2010/2011.    Manchester  

United  reports  $297  million  from  their  commercial  expenditures.  

 

Recent  News:  Among  European  soccer,  the  biggest  news  tends  to  be  a  championship  or    

the  signings  of  each  teams.    Real  Madrid  won  the  European  Championship  about  7  months  

ago,  while  Barcelona  has  been  relatively  quiet  on  a  trophy  hunt.    Manchester  United  has  

made  the  biggest  splash  in  the  transfer  market  with  most  of  their  recent  acquisitions.    

However,  Real  Madrid  and  Barcelona  have  made  a  few  big  deals,  including  Real  Madrid  

signing  Columbian  forward  James,  and  Barcelona  signing  Luis  Suarez.    The  implication  of  

championships  and  new  signings  on  a  brand  tend  to  be  a  revenue  increase  from  

merchandise.    New  players  mean  jersey  sales,  while  championships  equal  brand  new  

championship  merchandise,  as  well  as  new  fans.  

 

 

 

 

           

 

                                                                                                               9http://www.realmadrid.com/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1203349468675&ssbinary=true    

 

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Consumer  Profile  

 Demographic:  The  beautiful  thing  about  the  game  of  soccer  is  that  it  has  no  age  

requirement,  no  gender  discrimination,  and  it  is  for  everyone.    It  is  easiest  to  focus  on  the  

consumers  in  Manchester,  UK,  as  supporters  of  clubs  are  born  into  it  based  on  where  they  

live.    However,  for  an  international  audience,  different  factors  play  in  to  what  can  be  

considered  a  consumer.      

 

Frequency  of  Use:  Depending  on  what  this  refers  to,  consumers  frequency  of  use  can  be  

described  as  weekly.    Manchester  United  plays  at  least  once  a  week  and  dedicated  

consumers  will  tune  in  to  watch  them  on  a  regular  basis,  leading  to  advertising  dollars  for  

the  networks  broadcasting  them,  which  leads  to  money  directly  to  the  club.    From  a  

merchandising  standpoint,  consumers  will  purchase  new  items  around  holidays  as  gifts,  as  

well  as  every  time  a  new  jersey  is  released,  generally  around  June  or  July  of  each  year.  

 

Brand  Loyalty:  Brand  Loyalty  will  mainly  be  affected  by  the  organizational  decisions.    For  

instance  if  the  team  is  doing  well  because  of  the  manager,  the  club  will  likely  attract  more  

supporters.    If  the  team  is  doing  poorly,  trades  away  a  loved  player,  or  makes  a  poor  image  

decision,  it  is  likely  to  lose  supporters.    Professional  sports  consumers  always  have  a  

section  called  “bandwagon  fans”,  consumers  who  support  or  leave  a  team  on  a  whim.    

Manchester  United  also  struggles  with  people  who  refuse  to  “conform”.    Because  they  are  

one  of  the  most  popular  sports  team  in  the  world,  people  will  dislike  them  simply  because  

other  people  do  like  them.  

 

 

 

 

   

 

 

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Advertising      

Uses:  Like  most  top-­‐level  professional  sporting  teams,  Manchester  United  does  not  need  to  

advertise  themselves  in  order  to  generate  excitement.    They  will  produce  advertisements  

to  generate  excitement,  but  as  stated  earlier,  their  stadium  has  been  sold  out  for  years.    

Their  logo,  players,  and  likeness  will  be  used  in  advertising  efforts  of  their  sponsors  in  

order  to  generate  a  positive  association  for  the  sponsors.    The  parent  holding  company  will  

use  the  soccer  logo  to  help  promote  some  of  it’s  other  holdings  such  as  the  Manchester  

United  Soccer  School.  

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                                                                                                               10  Turkish  Airlines  Advertisement  

 

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Media  

 Spending:  As  stated  before,  Manchester  United  does  not  spend  in  conventional  matters  to  

generate  revenue.    The  professional  sports  market  gets  paid  to  be  put  on  television  and  

internet,  where  as  normal  markets  pay  in  order  to  get  screen  time.    NBC  owns  the  rights  to  

broadcast  the  English  Premier  League  games,  and  they  are  paid  by  advertisers  to  place  

their  advertisements  on  television  during  the  games.    NBC  in  turn  pays  the  league,  which  

then  pays  the  teams  who  are  shown  on  television.      

     

Seasonality:  The  English  Premier  League  is  shown  August  through  May  so  can  only  be  

shown  on  television  during  that  time.    During  friendly  exhibitions  during  the  summer,  

other  television  networks  vie  for  the  rights  to  show  the  games  because  of  the  amount  of  

money  able  to  be  generated.      

 

Regional  Viewing:    The  EPL  is  broadcasted  around  the  world  by  different  networks.    In  the  

United  States,  NBC  broadcasts  it  to  all  50  states,  as  it  is  a  national  network,  so  long  as  the  

users  have  basic  cable.      

 Promotions:  Manchester  United  has  promotions  for  ticket  and  apparel  giveaways.    They  also  have  opportunities  to  meet  players  and  other  contests.    This  generates  consumer  interaction  with  the  brand  and  allows  them  to  feel  a  part  of  something.      Success  Rate  of  Promotions:    The  club  has  such  a  large  following,  that  all  of  their  contests  and  promotions  are  entered,  and  generate  a  large  amount  of  buzz  that  keeps  them  popular  with  their  fans.                              

 

 

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Internet  

 

Website:    www.manutd.com  is  published  in  7  languages  and  gained  approximately  47  

million  views  over  the  past  year.    It  contains  all  pertinent  information  about  the  club  and  

team,  as  well  as  all  business  information  made  available  to  the  public.    It  has  a  high  

functionality,  and  makes  it  easy  to  not  only  navigate,  but  get  in  contact  with  the  

organization  as  well.  

 

   

Ecommerce:    Manchester  United  has  licensed  other  vendors  to  sell  their  merchandise,  but  

also  have  a  link  on  their  website  to  their  direct  seller  of  merchandise.    Their  merchandise  

on  their  direct  selling  site  includes  clothing  for  men  and  women,  as  well  as  souvenirs,  and  

furniture.  

 

 

 

 

 

 

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Social  Media  Facebook:    According  to  their  website,  Manchester  United  has  over  58  million  connections  

on  Facebook.    The  New  York  Yankees  have  8.3  million  connections  and  the  Dallas  Cowboys  

have  7.5  million  connections.    In  addition,  Interbrand  rated  Apple  and  Google  the  best  

global  brands  of  2013,  and  they  have  only  12.5  million  and  17.6  million  respectively.11    This  

huge  separation  in  connections  can  be  easily  attributed  to  the  global  audience  that  

Manchester  United  appeals  to.  

   

Twitter:  Manchester  United’s  Twitter  presence  is  not  as  large  as  their  Facebook,  but  they  

still  have  3.9  million  followers.    Their  twitter  account  is  generally  used  for  match  updates,  

and  press  conference  alerts  for  those  who  are  not  able  to  view  them  or  read  the  full  story.      

 

Instagram:  Their  Instagram  account  is  used  for  match  photos,  as  well  as  fan  interaction.    

Fans  send  in  their  photos  in  Manchester  United  gear,  in  hope  of  being  posted  on  a  site  with  

2.3  million  followers.      

 

Overview:  Manchester  United  uses  their  social  media  mainly  to  connect  to  their  fans,  and  

based  on  the  proven  interactions  and  connections,  it  is  easy  to  see  they  accomplish  this  

goal.                                                                                                                  11  http://ir.manutd.com/company-­‐information/about-­‐manchester-­‐united.aspx  

 

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Other  Brand  Information  

 

Logo:    Manchester  United’s  logo  comes  from  the  club’s  nickname  “the  Red  Devils”.    It  was  

incorporated  into  the  crest  in  1970.  12      

 

Top  Players:    Manchester  United’s  greatest  assets  are  its  players,  as  they  draw  in  the  

attention  that  allows  them  to  generate  revenue.    Their  top  players  are:  Captain  Wayne  

Rooney,  Robin  Van  Persie,  Jaun  Mata,  Angel  Di  Maria,  and  Falcao.  

 

Current  Standing:    Manchester  United  currently  sits  3rd  in  the  league  after  a  slow  start.    

Normally  they  play  in  the  European  Championship,  however  thanks  to  a  poor  showing  in  

their  EPL  last  season,  they  did  not  make  the  cut,  thus  costing  them  millions  in  potential  

revenue  from  television  broadcasting.      

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                                                                                                               12  http://en.wikipedia.org/wiki/Manchester_United_F.C.  13  http://www.premierleague.com/en-­‐gb/matchday/league-­‐table.html  

 

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Brand  Value      

In  the  past  year,  Manchester  United  has  gone  through  3  different  managers  

controlling  the  club.    David  Moyes  took  over  for  the  Sir  Alex  Ferguson  who  retired  after  an  

incredible  career.    However,  Manchester  United  had  an  exceptionally  poor  season  within  

their  standards  finishing  in  6th  place.    David  Moyes  was  fired  before  the  season  was  over  

and  Ryan  Giggs  was  named  interim  manager,  while  finishing  the  last  year  of  his  playing  

career.    Due  to  their  poor  performance,  their  brand  value  and  followers  decreased  around  

May  of  this  year.    But  this  summer,  the  club  hired  Louis  van  Gaal  to  manage  the  club,  and  

the  sheer  buzz  of  his  arrival  and  the  signings  that  were  to  come  raised  the  brand  value  back  

to  the  level  it  should  be.    This  current  season  started  out  slowly,  however  they  have  been  

back  on  track  over  the  past  month,  and  look  to  be  English  Premier  League  Champions  

again.    I  believe  their  brand  value  will  continue  to  rise  as  they  continue  their  season  and  

fight  their  way  back  on  to  the  European  stage.  

   

 

  15  

Research    

Quantitative:  I  conducted  a  survey  of  20  people  and  asked  them  what  they  thought  the  

value  of  Manchester  United  was.    I  gave  them  4  options:  over  1  million  dollars,  over  10  

million  dollars,  over  100  million  dollars,  and  over  1  billion  dollars.    50%  of  my  respondents  

said  over  100  million  dollars,  20%  of  my  respondents  said  over  10  million  dollars,  and  the  

remaining  30%  said  over  1  billion  dollars.    All  of  them  were  surprised  to  know  the  amount  

is  $2.81  billion,  and  that  it  was  greater  than  any  American  team.    This  research  shows  that  

people  know  of  Manchester  United,  but  not  its  true  reach  around  the  world.  

 

Qualitative:  I  conducted  a  survey  of  10  people  and  simply  asked  whether  they  had  a  

favorable,  unfavorable,  or  indifferent  view  of  Manchester  United.    I  then  asked  why.    40%  

felt  indifferent  about  Manchester  United,  because  they  did  not  know  much  about  soccer.    

10%  said  they  had  an  unfavorable  view,  because  they  supported  another  team  in  the  EPL.    

The  final  30%  said  they  had  a  favorable  view  because  they  either  liked  the  way  they  played  

soccer,  or  had  family  members  who  showed  the  team  to  them.  

     

Recommendation      

  My  recommendation  is  to  increase  presence  in  the  United  States.    Soccer  is  on  the  

rise  here,  and  a  European  club  as  big  as  Manchester  United  would  be  a  great  way  to  make  it  

take  off  even  more.    I  also  believe  they  should  have  sweepstakes  in  the  states  to  get  people  

over  to  watch  their  matches.    Their  social  media  presence  is  nearly  unbeatable,  so  there  is  

nothing  they  can  do  there.    The  only  other  way  to  create  their  dominance  is  to  show  it  on  

the  field  and  gather  the  attention  of  those  who  only  follow  championship  teams.