Essay on Real Madrid Harvard Case

1499 Words Jun 19th, 2011 6 Pages
Real Madrid (RM) has been worldwide-known as one of the best soccer club in the world. From its beginnings in 1902, this Spanish soccer club has set the standards of a championship soccer organization and in 1905 had his first international game. A major turning point in the club’s history came with Bernabeu, Real Madrid CF appointed president (1943).He created the strongest brand in soccer synonym of prestige and champions, wining 6 European Cups. He coined “best in Europe” by international press and acquiring the best soccer talent at any cost. 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 was financially restructured. …show more content…
Moreover, in order to “hit” Asian market they organized preseason tours and opened a coffeehouse chain in southeastern Asia. Not only this example, but also the example of Disney’s Lion King is something that Perez emulated. Lion King costed 50 $ to make, grossed over 766$ million at the box office worldwide in his first year and also generated over 1,5 billion in merchandizing revenue. Therefore, Real Madrid realized that it is important to generate long-term entertainment brands and not just invest in the experience during the match and the gate receipts. Taken into consideration these two examples, Real Madrid focused on match-day, broadcast and pay tv, marketing (merchandize sales, sponsorships) and international competitions. First of all, match-day gate receipts are vital sources of revenue. However, VIP packages and season tickets as well as the construction of new, comfortable stadiums are very important for the club. Merchandizing is also the key to modern management as the sales of branded goods (ex caps, watches etc) and the video games with the interactive applications have helped the development of the club. Sponsorship accounts up to 20% of revenue, with Adidas and Siemens considered to be major sponsors. Also, Audi has provided a car to players and team officials. Real Madrid saw also opportunities in specialized publishing, audiovisual rights and Internet. The club’s site RealMadrid.com had 1.5 million visitors each month in 2004 and has

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