Case Study Real Madrid

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Real Madrid Case Study 1) Describe Real Madrid’s business model and analyse how the market of football has evolved in time. Business model: Real Madrid as a company, using branding, values, and mid- to long-term planning to generate income. Portrayal of Real Madrid as a brand which provides content: the players and the games. Three main parts of the strategy: Achieve financial flexibility to acquire talent and expand brand reach Assemble a team of top players •Rezoning of training pitches •Recapturation of exploitation rights •Set-up of a stand-alone legal entity to own and manage commercial rights (Sociedad Mixta) •Licensing / sponsoring •"The Galácticos" - one new recruit per year with equal annual salaries •2004: 5 out of the 10 top players in the world at Real Madrid (Forbes) Leverage the brand and content across all kinds of channels •Star players as products / brands being developed and exploited •Real Madrid TV • •Stores, fan card, magazine - making fans feel special Measurement/ quantification of brand success in terms of: Size of audience Frequency of engagement with the brand aphic characteristics Bridges to link audience and brand Evolution of the football market: Paradigm shift in the 1990s: Before: business model based on consumer entertainment with revenues from match day gate receipts and local corporate sponsorships. The brand experience for consumers was momentual (in the stadium). After: strategic business model based on added value through more frequent and repetitive interactions between the brand and the consumer through a variety of channels. The motivation of acquiring good players is not just to win games, but also for them to endorse the club image through their own brand – players have changed from „athletes“ to „products“. - 2) How many market segments does Real Madrid have? Describe them. The

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