Real Madrid Marketing Hbs Case Essay

3420 Words Mar 4th, 2012 14 Pages

Real Madrid is one of the most storied sports franchises in the world. It is one of the few sports teams with international appeal to a very broad fan base. This case delves into how Real Madrid transitioned from a good soccer team with a winning history into the global sports juggernaut we know today.
We first examined Real Madrid’s revenue streams and found that from their inception through the 1970s their business model was based almost entirely on their ticket sales. After the 1970s up until 2003 they had some media rights, a small merchandising department, and some other negligible streams of income. It was in 2003 that team President Florintino Perez decided to make Real Madrid into a
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However, we believe that he brings so many intangibles to the franchise (both as a player and a face for the team) acquiring him was well worth the capital spent.

Question 1
The Spanish soccer club Real Madrid experienced significant changes at the beginning of the 21st century. From a club with revenues based entirely on ticket sales in the 1970’s, the club transitioned to a multimedia content provider with a diversified merchandising business in 2003. The changes in Madrid were unique in terms of football club management, at the time they represented one of the earliest instances that a soccer club was ran like a brand.
A catalyst for the major transformation in Madrid was the election of Florintino Perez as club president in 2000. Perez subscribed to the conventional belief that a soccer clubs reputation depended on its success in great games, championships and having legendary players. But in addition to the conventional methods, Perez used new ideas to grow the brand by meeting the expectations of grassroots consumers and brand advocates that sought affiliation with a particular lifestyle.
The promotion of the Real Madrid brand was divided internally into a three interrelated stages strategy. First Real Madrid strived to obtain financial flexibility that would allow the club to obtain the best team in the second stage of the plan. This in its turn increased the value of the content and enhanced the Real

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