Marketing Report for AEK FC
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Transcript of Marketing Report for AEK FC
1
M01SEM Marketing and Sponsorship in Sports
and Events
Coursework prepared by Efstratios Chiotis (6614067)
Date: 22 April 2016
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Marketing Consultancy Report for AEK FC – Olympic
Stadium of Athens (OAKA)
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Table of Contents
1 Introduction………………………………………………………….4
2 AEK FC – Olympic Athletic Centre of Athens (OAKA)………....4
2.1 AEK FC…………………………………………………………...4
2.2 OAKA…………………………………………………………...5
3. The Extended Marketing Mix………………………………………5
3.1 The 7 Ps and 4 Cs of Marketing……………………………….6
3.1.1 Product and Consumer Needs……………………………...6
3.1.2 Price and Cost………………………………………………..6
3.1.3 Promotion and Communication……………………………..7
3.1.4 Place and Convenience……………………………………..7
3.1.5 People…………………………………………………………8
3.1.6 Process………………………………………………………..9
3.1.7 Physical Evidence……………………………………………9
3.2 Summary of the Extended Marketing Mix…………………...10
4. Relationship Marketing……………………………………………10
5. Future Marketing Strategies………………………………………12
5.1 Customer Retention/Attendance……………………………..13
5.2 Sponsorship/Partnership Agreements……………………….14
6. Conclusion………………………………………………………….16
7. References………………………………………………………….17
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1. Introduction
Dear Mr. Alexis Dedes,
After thorough research, we have managed to identify and evaluate your
organisation’s marketing strategies and we are now in position to describe you
the current situation and most important recommend you future marketing
strategies based on the principles of relationship marketing that will produce new
sponsorship agreements and improve customer retention/attendance in your host
venue.
The report starts with a brief description of your club in terms of its current
marketplace and its presence in OAKA. Afterwards, an analysis of its extended
marketing mix is given alongside a first insight of its weaknesses. Then, the
importance of implementing a relationship marketing approach is explained.
Following this, we conclude with our recommendations for creating effective
partnerships and enhancing customer retention/attendance, as well as increasing
your fan base. Finally, we summarise all our suggestions in a section which aims
to assist you in implementing the right strategies in order to enhance your club’s
overall marketing performance.
2. AEK FC – Olympic Athletic Centre of Athens
(OAKA)
2.1 AEK FC
AEK FC was created in 1924 in Athens from a group of Greek immigrants
originated from Constantinople (Istanbul, Turkey) and has a long history full of
successes and achievements (AEK FC 2016). Today, stands out as one of the
top three football clubs in Greece, in terms of popularity and has dedicated fans
at national level as well as worldwide, mainly in the Greek communities of North
America, Australia and United Kingdom. In its recent history though has not been
so successful on field; haven’t won a championship since 1994 (Soccerway
2016). Furthermore, a financial crisis led the club to its relegation for the first time
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in the 3rd division 2 years ago. Consequently, AEK FC in its first season back to
the 1st division has several challenges to face in order to retain and increase the
number of the spectators in its stadium.
2.2 OAKA
OAKA serves as the host venue for AEK FC since 2004 and is the biggest
stadium in Greece with an approximate capacity of 70,000 spectators (O.A.K.A.
2014). The stadium is state-owned and the club has to pay a rent in order to use
it. Consequently the full exploitation of its capacity and surroundings is essential
for generating the amount of revenues needed. Although OAKA is not considered
as a proper football stadium and cannot create a unique ambience, its huge
capacity, considering the other stadiums in Greece, gives the club the freedom to
implement several marketing strategies in order to attract and retain customers.
3. The Extended Marketing Mix
Before the evaluation of the extended marketing mix for AEK FC it is crucial to
briefly mention the key characteristics of services as described by Lovelock and
Gummesson (2004). These are:
Intangibility: pure services cannot be assessed by sight, feel, smell,
taste, etc.
Inseparability: production of a service cannot be separated from its
consumption, thus making consumers co-producers
Heterogeneity: each consumer-producer encounter is unique and varies
from time to time
Perishability: services cannot be stored
Lack of ownership: services cannot be owned
Taking into consideration the above characteristics throughout the report, the
next step is the analysis the marketing strategies incorporated by AEK FC and
subsequent advices for any mentioned weaknesses.
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3.1 The 7 Ps and 4 Cs of Marketing
The traditional marketing mix conducted by McCarthy in 1964 (Goi 2009)
includes the so-called 4 Ps of marketing: product, price, promotion, place. In
addition to these there are other 3 marketing ingredients (people, process,
physical evidence) that were added later in order to better suit the marketing mix
of the services industry. Furthermore the initial 4 Ps have been associated with
the 4 Cs of marketing (customer needs, cost, communication, convenience) to
support the marketing process from the customers’ perspective.
3.1.1 Product and Customer needs
The core product in this situation is the game itself which is something that is
different every time even when playing with the same opponent. Thus, according
to Buhler and Nufer (2010) in order to maintain a good relationship with the
customer some product extensions have to be developed. These include
surrounding entertainment, hospitality packages, catering and merchandising
among others. AEK FC has implemented a policy of attracting young fans in the
recent years by either providing free entrance to kids under 10 years old or
offering 50% discount to teenagers (AEK FC 2015). This initiative should be
enhanced by a surrounding entertainment, appropriate for these group of fans,
which are not the loyal ones that will come again whatever the quality of the
competition and the performance of the team. The club has tried to segment the
market into different groups but that is not enough if you do not satisfy each
group needs. For example a family coming to the game would be interested in
the catering and the hospitality packages offered whereas a handicapped person
would seek an easily accessible stadium and a helpful service personnel.
3.1.2 Price and Cost
The price for a game varies between 5 and 120 euros depending on the
importance of the game and the quality of the opponent (Sport24 2016). Setting
such a low price for a game might result in the fans to consider it as really low
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quality, thus decreasing their interest to attend. To avoid such behaviors we
consider a price floor at 10 euros excluding the groups with discount.
Season ticket holders are categorized in different groups depending their age,
employment status (unemployed, students) and marital status (there is the family
gate where parents with kid are offered a discount) (AEK FC 2015).
A further strategy that AEK FC could follow is to bundle the price of its home
games with their traditional opponents. These 3 games in total are always the
ones that fans anticipate and by given them the possibility to attain them all can
enhance the sales.
3.1.3 Promotion and Communication
AEK FC operates a fairly updated website which includes all required
information. There is also the possibility for a fan to personify the website
according to his/her own taste through “My AEK” extension. This app is also
available for use in mobile devices (Christodoulou 2014). In an era where social
media marketing is essential for an organization to promote itself, the club owns
accounts in most of these platforms (Facebook, Twitter, etc.) and feeds them
with updated content in a regular basis. However, the content does not seem to
differentiate from platform to platform, as the same things are posted in all of
them, in the same order. In that case, we propose that unique content should be
posted in each account in order to satisfy the needs of the different groups using
each platform. Furthermore the club should consider creating a LinkedIn account
with the aim of attracting corporate clients and creating a more professional
image to the club.
3.1.4 Place and Convenience
OAKA is the largest and most modern stadium in Greece and is located in the
north suburbs of Athens. It is surrounded by other Olympic venues which all
together consist the complex of the Olympic centre. This is giving the possibility
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for fans to visit other facilities as well in a walking distance from it. Access is
possible through railway, suburban railway, busses or by car as there are plenty
parking slots for visitors (O.A.K.A. 2014).
Figure 1 (O.A.K.A. 2014)
In close proximity are located two shopping malls where fans can spend their
time before or after the game. The club should seek to create partnerships with
several companies operating in those malls. Consequently the fans could have
discounts by showing their purchased tickets and companies can increase the
volume of their clients especially during match days.
3.1.5 People
People includes everyone that can have an impact on the consumer’s visit to a
game from the professional players and coaches to employees, volunteers and
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other fans. As mentioned above inseparability is a key characteristic of a service,
which means that fans become co-producers of the game by creating the
atmosphere (chanting and celebrating or shouting and yelling). But as we said
everyone is responsible for creating the appropriate environment which will
satisfy the customer and enhance its experience. Consequently, as Gronroos
(1997) states each employee acts as a “part-time” marketer which directly
interacts with the costumer. Thus there should be a constant training to all
employees interacting with fans, from ticket servers to stewards, providing them
with the right marketing tools in order to facilitate each customer’s experience
before, during and after the game.
3.1.6 Process
Process describes the way that a service is delivered to its user and it is crucial
for the perceived quality that a fan will have from his/her game experience
(Beech and Chadwick 2007). Apparently the delivery of that service is a process
that brings together the customer and the club’s employees and it is an activity
after which the customer will decide if his/her expectations were met.
Consequently every process has to be standardised and be learned by every
single employee of the club as well as the volunteers and external staff that work
during the games but are not hired by AEK FC itself.
3.1.7 Physical Evidence
The environment in which the actual game takes place and where employees
and customers interact is called physical evidence and is the last but not least
component of the extended marketing mix (Buhler and Nufer 2010). It is essential
for the organisation to provide facilities appropriate for use, which can meet
special needs and requests and where customers can feel safe. Especially for
securing the current policy of attracting kids and teenagers, safety is of outmost
importance and has to be totally manifested inside and outside the stadium.
The stadium itself is an exemplar of high architecture after its renovation for the
2004 Olympic Games and the addition of the remarkable roof by the Spanish
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architect Calatrava. However, there is no evidence neither in the interior, nor in
the surroundings that this stadium is the host venue for AEK FC, which create
confusion and disengagement with the fans. Thus some renovation and
additional signposts and artefacts in the surroundings has to be considered in
order to increase awareness of the current user of the stadium.
3.2 Summary of the Extended Marketing Mix
In the previous section we briefly analysed the marketing tools used by the club
and we have noticed advantages as well as disadvantages. To summarise them
we can conclude with our recommendations:
Provide young fans with appropriate entertainment before, during and
after the game in order to engage with them
Offer a discount package for the 3 home games with the traditional rivals
Differentiate the content of each social platform and search corporate
clients through a LinkedIn account
Seek partnerships with companies operating in the proximate shopping
malls
Train and development of all employees which can be used as part-time
marketers
Standardisation of processes
Distinguish the stadium from the complex as your host venue
4. Relationship Marketing
According to Groonros (1997) “relationship marketing is to identify and establish,
maintain and enhance, and when necessary terminate relationships with
customers (or other parties) so that the objectives regarding economic and other
variables of all parties are met. This is achieved through a mutual making and
fulfilment of promises.” Consequently, having the appropriate marketing tools is
not enough anymore as long as you cannot use them in a way that promotes
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long-term relationships with all potential stakeholders. Thus AEK FC as a
professional sport organisation which aims at obtaining a competitive advantage
in the market has to implement the right strategies and move from the
transactional marketing to relationship marketing as a guiding philosophy that
crisscross all departments.
One aspect of the club that can distinguish it from the others is its history.
According to Barney (1991) imperfectly imitable resources dependent on unique
historical conditions are a key component of creating competitive advantage.
AEK FC has a unique history as it was founded from Greek immigrants and a
great number of its fans are dedicated to it with sociocultural bonds. This history
should be promoted and enhanced with policies that can attract new audiences.
The initiatives currently undertaking by the club in order to assist and relief the
hundreds of immigrants that arrive to Greece nowadays should be enforced by
the actual presence of these people in the stadium (AEK FC 2016). This can
increase the social image of the club as well as create new fans, not only by the
immigrants themselves who might stay in the country but also local citizens who
can emotionally be attached to the club after these initiatives.
According to Kirtis and Karahan (2011), the effective use of social media is also
essential for the club to engage with its fans and create new ones, especially
among youngsters which is a target group that AEK FC aims to bring to the
stadium. Creating live content during the games and giving the possibility to fans
to interact through the ‘My AEK’ application can lead to more close relationship
and entertain them no matter the on-field performance. As we mentioned before
different content has to be posted in the various social platforms in order to
engage with several target groups. Moreover there should be given the possibility
for current sponsors to promote themselves through those social platforms in
order to create a win-win situation for both.
The large capacity of OAKA gives the possibility to the club to host various
groups of people (families, students, elderly people, etc.) each one of them has
different needs and expectations. This is why relationship marketing has to be
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implemented in order to build a long-term relation with each one and create a
true and loyal fan base. Football fans are unique in the way that do not change
team so it is crucial for the club to engage with the youngsters from their first
attendance to the game, in order to retain them for the future. This process is
best described through the ‘Ladder of Loyalty’ (Payne et al. 1995) which
illustrates the steps that a new fan have to pass in order to become a partner of
AEK FC.
Figure 2 (LinkedIn Corporation 2016)
5. Future Marketing Strategies
Throughout the report we investigated the current marketing strategies that AEK
FC implements and we have already given some recommendations on how to
correct its weaknesses in terms of its marketing tools as well as potential ways to
move from the transactional to a more relationship marketing approach which is
essential to retain customers and increase the fan base. In this section we will
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further recommend strategies for improving customer retention/attendance at
OAKA and creating new sponsorship/partnership agreements.
5.1 Customer Retention/Attendance
As many surveys around the world have demonstrated customer retention is
crucial for any service provider nowadays. Facts show that loyal customers worth
up to 10 as much as their first purchase and that is 7 times more expensive to
acquire a new customer than to keep a current one (Help Scout 2016). AEK fans
are between the most loyal ones in Greece, however since 2008 attendance in
OAKA has steadily decreased as Figure 3 shows.
Figure 3 (Super League 2014)
In the next years the club did not participated in the 1st division but the promotion
to it in 2015 alongside the policy of the club to keep the prices at the same level
as in the lower division did not affected average attendance which remained at
around ten thousands tickets on average for the first half of the current season
(Voulgaris 2015). Fans have constantly complained that OAKA is not a football
stadium, thus cannot create the ambience needed for it to feel like real home.
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Moreover the already announced plans for the building of a new private stadium
in the next 2 years have made them less willing to attend in OAKA. However, we
recommend that the club can take advantage of it and start a campaign where
the most frequent attendants in OAKA for the next years will be rewarded by
having priority alongside some discount in purchasing a ticket to the new ground
where capacity will be approximately 30,000.
Successes on the field is what ultimately drives fan to the stadium and as we
mentioned in the beginning of the report AEK FC hasn’t got any recent ones.
Thus, it has to find other sources to retain its customers such as the cultural side
of the club and its glorious history which distinguish it from others. Furthermore it
has to implement and promote a long-term plan that will persuade its fans that
successes on the pitch will come soon and create an excitement among them.
5.2 Sponsorship/Partnership Agreements
AEK FC currently has some of the greatest companies as main sponsors which
originate from a wide range of different industries. These include:
OPAP (the biggest betting company in Greece)
NIKE (sporting goods manufacturer)
Cosmote (the leading Greek company in telecommunications)
Nova Sports (the Greek sport channel)
Piraeus Bank (the leading bank in Greece)
Globo Technologies (enterprise mobility) and
Athens Medical Group (medical services)
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Figure 3 (AEK FC 2016)
Through these sponsorships both the club and the sponsors try to create win-win
scenarios as the latter use AEK FC logos and popular image and the former their
expertise and products respectively.
However, we estimate that there are still opportunities for further agreements
with companies from different sectors. Firstly, as we briefly stated in section 3.1.4
the club should seek to create partnerships with companies located in the nearby
shopping malls. Especially, taking into consideration the high volumes of kids
and teenagers that attend the games, it seems wise to collaborate with the
relevant retail shops as well as the playgrounds located in each mall.
Another opportunity for a sponsorship would be that of a company from the
transportation industry. In this particular case our recommendation is AEGEAN
Airlines the number one airline company in Greece with a strong European
presence as well. AEGEAN connects all remote islands and places in Greece
with the capital city of Athens, home of AEK FC, thus it can be used as a vehicle
to promote the brand of the club throughout the country. Furthermore it can
connect the Greek communities of Europe with the club, thus giving it an
international appeal, which has been lost since AEK FC last played in Europe
back in 2012.
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In our concerns these are the types of agreements that are missing from AEK FC
current sponsorship portfolio and could successfully be included in it.
6. Conclusion
To sum up this report has focused on the current marketing tools used by AEK
FC, revealed their weaknesses and recommended solutions. Furthermore we
focused on the importance of implementing a relationship marketing approach.
Finally we came up with recommendations on how to improve customer
retention/attendance and we considered potential new sponsorship/partnership
agreements that can be added to your sponsor portfolio.
We can ensure you that by implementing these specific marketing strategies,
your organisation will be benefited in the long-term.
Thank you for your trust in STR Consultancy and we hope to collaborate again in
the near future.
With best Regards,
Efstratios Chiotis
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7. List of References
AEK FC (2016) History – Timeline [online] available from
<http://www.aekfc.gr/hp/i-istoria-mas-42825.htm?lang=en&path=-
234507649&tab=0&place=0> [20 April 2016]
AEK FC (2016) Social Responsibility [online] available from
<http://www.aekfc.gr/c/koinoniki-drastiriotita-
42874.htm?lang=en&path=1915581043> [10 April 2016]
AEK FC (2015) Season Tickets 2015-16 [online] available from
<http://www.aekfc.gr/Uploads/Documents/45400/xrisimes%20plirofories%202015
-2016.pdf> [15 April 2016]
Barney, J. (1991) Firm Resources and Sustained Competitive Advantage.
Journal of Management 17 (1), 99-120
Beech, J. and Chadwick, S. (2007) The Marketing of Sport. Essex: Pearson
Education Limited
Christodoulou, D. (2014) AEK Official App [online] available from
<http://www.sportman.gr/news/efarmogi-gia-ios-android-siskeves-gia-tin-a-e-k>
[17 April 2016]
Goi, C. (2009) A Review of Marketing Mix: 4 Ps or More? International Journal of
Marketing Studies 1 (1)
Gronroos, C. (1997) Keynote Paper: From Marketing Mix to relationship
Marketing – towards a Paradigm Shift in Marketing. Management Decisions
35(4), 322-339
Help Scout (2016) 75 Customer Service Facts, Quotes and Statistics [online]
available from <https://www.helpscout.net/75-customer-service-facts-quotes-
statistics/> [20 April 2016]
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Kirtis, K. and Karahan, F. (2011) To Be or Not to Be in Social Media Arena as the
Most Cost-Efficient Marketing Strategy after the Global Recession. The
Proceedings of 7th International Strategic Management Conference 24, 260-268
Lovelock, C. and Gummesson, E. (2004) Whither Services Marketing? In Search
of a New Paradigm and Fresh Perspectives. Journal of Service Research 7 (1),
20-41
O.A.K.A. (2014) Access [online] available from
<http://www.oaka.com.gr/access/?lang=en> [15 April 2016]
O.A.K.A. (2014) Main Olympic Stadium [online] available from
<http://www.oaka.com.gr/main-olympic-stadium/?lang=en> [15 April 2016]
Payne A, Christopher M, Clark M, Peck H. (1995) Relationship marketing—key
concepts. Relationship marketing for competitive advantage: winning and
keeping customers. Oxford: Butterworth
Soccerway (2016) Super League – Greece – Archive [online] available from
<http://uk.soccerway.com/national/greece/super-
league/c107/archive/?ICID=PL_3N_07> [15 April 2016]
Sport24 (2016) AEK – Tickets [online] available from
<http://www.sport24.gr/football/omades/Aek/panw-apo-15-000-eisithria-exoyn-
dothei-gia-to-aek-olympiakos.3897541.html> [16 April 2016]
Voulgaris, S. (2015) AEK fills up the stadiums of Super League [online] available
from < http://www.pamesports.gr/356128/h-aek-gemizei-ta-ghpeda-ths-
superleague> [20 April 2016]