Real Madrid Case

Topics: Real Madrid C.F., UEFA Champions League, La Liga Pages: 7 (2494 words) Published: November 20, 2011
From its beginnings in 1902, the Spanish soccer club Real Madrid CF has set the standards of a championship soccer organization. Bernabeu, Real Madrid CF appointed president (1943), created the strongest brand in soccer synonym of prestige and champions, wining 6 European Cups. During his tenure, he focused on creating Spain's largest coliseum with a capacity of 75,000, coined "best in Europe' by the international press, and acquiring the best soccer talent at any cost. Bernabeu aimed to build the most powerful team possible at any cost in search of challenges beyond Spain. Soon after his death in 1978, the club declined for nearly two decades on the field and financially. Through the 1990's under president Lorenzo Sans, Real Madrid CF underwent major financial restructuring. The organization constantly sold players and crucial core operating assets such as stadium rights and media rights to cover operating losses and minimize its significant debt. Given these radical transformations, Real Madrid CF started rising to its prominent status once again by winning a seventh European Cup in 1998. In 2000, Florentino Perez defeated Sanz for the club presidency and promised to deliver superstar players in addition to restoring the club finances and profitability. With Perez arrival, he noted that the club's operations and marketing approach did not match its reputation in sports. Perez set out to revolutionize Real Madrid CF into a professional organization redefining Real Madrid's objective. The organization began to think of themselves as content providers. As content providers their vision was established and all their effort were aimed into achieving their goal: global dissemination of Real Madrid CF content/brand, world's best soccer club and make it profiable. In order to, strengthen its brand, Real Madrid CF managers identified four value drivers: (1) size of the audience; (2) frequency audience engaged with the brand; (3) socio-demographic characteristics of the audience; and (4) bridges that could link the brand and the audience. With these drivers recognized, the organization set three interrelated goals: achieve financial flexibility to acquire talent and expand its brand reach, assemble a team of top players, and leverage the Real Madrid CF brand and content across a variety of channels. Also, with most of the soccer market concentration in Europe and Latin America, Real Madrid CF sets its sight on evolving markets such as Asia and the growing entertainment-hungry market of the United States. The most important goal was the re-establishment of the Real Madrid CF brand as world soccer supremacy and maintaining it. In addition, the brand must take advantage of all content distribution channels with its inherit revenue streams. It is understood in marketing strategy the importance, power and profitability of a successful brand. If the organization and its service is not a brand, it is a commodity, and as a commodity it can quickly be replaced. In this case, management intended to promise that their organization, Real Madrid CF, is a synonym of soccer royalty/greatness and its customers can trust that the brand will deliver the most exciting and entertaining soccer content available. Consequently, the power of the brand facilitates sales of advertisement and merchandise. Furthermore, as important as the content itself, Real Madrid CF must use and expand all delivery methods available in order to maximize the reach of its content to the target markets. Real Madrid CF, Royal Situation Through their excellent management strategy and player selection, Real Madrid CF has achieved the title of Supreme European Champion and established their brand as soccer's #1 organization. Their next step was to maximize revenues through different means (Exhibit 1) from its powerful brand, not only in Europe but throughout the world. Through Real Madrid CF SWOT analysis (Exhibit 2) it is possible to determine the most suitable new markets,...
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