Analysis of Real Madrid and Jjb Sports

Contents Real Madrid FC 3 Background 3 Business Market 3 Technology 6 Business Analysis 7 JJB Sports 8 Background 8 Business Market 8 Management Roles and Responsibilities 9 Business Analysis 10 Conclusion 12 Individual Portfolio In this portfolio I am going to study two different organisations and the markets in which they operate in. I will also be explaining the organisational functions and roles of the main personnel within each organisation before looking at whether each organisation is contracting or expanding using the Porter and Drucker Models. Real Madrid FC Background The first organisation I have chosen to look at is Real Madrid Football Club who are one of the most famous and most decorated teams in the world. They play at the Santiago Bernabeu Stadium which was named after their President in 1945 who rebuilt the club, stadium and training ground after the Spanish Civil War. They get the Real part of their name after King Alfonso III granted them the title in 1920 as it means royal. Since the club was founded in 1902 they have won 31 League Titles, 27 Domestic Cups and 12 European Trophies. They have also had 19 different Presidents and 44 managers. Business Market Primarily Real Madrid is a football club that play to win trophies but the majority of their income

comes from external sources. The extraordinary thing about Real Madrid is that they dont just have one man that bankrolls the club like Roman Abramovich at Chelsea. They rely heavily on the revenue that they receive from shirt sales, TV money, and shirt sponsors etc. Ever since the club was formed they have been able to attract the best players but not for the extortionate prices they can. There are many different theories about how Real Madrid became the richest club in the world and it is one of footballs unanswered questions, where does Real Madrid get all their money from?

Abstract Real Madrid Club de Ftbol has a storied past. In the past decade, they were able to overcome extensive financial difficulties and assemble a first team containing seven of the top players in the world. These players were called the Galcticos. The Galcticos were the core of a complete business reformation pioneered by the President of the club, Florentino Perz, a Spanish business mogul. Under his guidance, brand recognition expanded greatly, and cash flows increased drastically, creating great profits for the firm. The consumer market for Real Madrid Club de Ftbol can be divided into four main segments, the two extremes being heavily loyal member-owners known as Socios and international fans who mostly wane away from the club after three years. Our analysis shows that international fans are a largely untapped market for Real Madrid, creating an opportunity for further expanded cash flows. Increasing brand recognition internationally can up the quantity of these fans. Marketing to increase loyalty in this consumer segment could also lead to greater profits per international fan. The other side of the Real Madrid coin is the amount of revenue attributable to each player. In the case of David Beckham, at signing, he had a net present value exceeding 16M for the club. The Galcticos Strategy had to eventually come to an end, however. So much talent could not share the spotlight forever, and like most clubs, Real Madrid had to transition towards younger, cheaper talent. Business Model With a history dating back 100 years, Real Madrid is one of the worlds most successful football clubs. Not only has Real Madrid won the Spanish league championship on 29 occasions but it has also won the European Cup 9 times. In addition to being such a success on the field, Real Madrid has also been a success off the field in business. They have become a large corporation with yearly revenues of roughly 350 million . Real Madrid has achieved what most.

Real Madrid Club De Futbol With millions of fans worldwide and over one hundred years of continued support and recognition, Real Madrid Club De Futbol had been created as the strongest brand in soccer. Their constant focus was to establish their brand globally and maintain supremacy of this brand with continuing to maximize profits and enhance their corporation. Their market strategy was based on the power and profitability of a successful brand. They were aware that without their brand fully established and adored, they could be easily replaced. They also knew that if their brand were too in your face with excessive commercialization, fans would easily withdraw and support elsewhere. Real Madrid needed to find a happy medium in which their fans were content and did not believe they were being overexposed or exploited, but also where the organization could maintain a loyal fan base

and profitability. In order to strengthen their name, they valued three interrelated goals that would help the organization achieve success: achieve financial flexibility and expand brand reach, assemble a team of top players, and leverage the brand and content across a variety of channels. Real Madrids unique business model would allow them the access to use, expand and enhance their organization in order to maximize their content to target markets. Brand reach and brand awareness are very important for Real Madrid to become successful. Television and the Internet are usually the most popular forms an organization can get recognition. Also, advertising , sales through players merchandise, and effective content delivery campaigns would be key for their brand reach. Connecting the experience of the brand across continents and overseas could be an effective tool for the global marketing strategy they need to employ. Soccer is a sport enjoyed by individuals across the world of all ages, so customers are segmented by age, wherein products are targeted to each segment. his assignment analyses how Real Madrid went from a local to global organization and turned into one of the most well known football clubs in the world by leveraging its brand equity and implementing successful marketing programmes throughout the world. Real Madrid was ranked the richest football club in the world in 2009-10, according to Delloitte Football Club Annual Report with 438.6m in revenue. (Goal.com, 2011) 1) Brand values and positioning Brand awareness For the first 100 years of its story, Real Madrid created a reputation around Europe by winning a sequence of titles in the beginning of the European competition. Since the beginning of 2000s when a new strategy was implemented, the club increased its brand awareness globally by hiring players from around the globe. Brand image Real Madrid has its reputation built through its track history of titles, having won nine times the Champions League and three times FIFA Club World Cup, among many others. It is also know for football excellence as the club hires international players to attract fans from all over the world, creating an admiration for the football art and reaching countries where it wouldnt otherwise be known. Brand equity pyramid a) Identity: depth and breadth Real Madrids build its depth of awareness by taking the most famous and best players around the world, making it easy even for the non football followers to recognise its brand. By an extensive array of merchandising products, such as clothing and sports items, Real Madrid reached a wide breadth without over-stretching its brand. b) Meaning: imagery dimensions The club managed to expand its brand associations from football to any sports situation, reaching users that relate to sports in general. c) Response: judgement dimensions, emotional response This is the dimension where Real Madrid capitalizes on the emotional relationship, making use of the fun and excitement brought by a football match.

Case: Real Madrid Club de Futbol

The central issue in this case is how the president of Real Madrid Club de Futbol, Florentino Perez , can extend brand recognition worldwide in order to achieve sustainable revenue growth, that the club could achieve strong financial power and attract the best talented athletes. Based on the past history, Real Madrid club faced a lot of problems in the past, and now they are faced with major issues of competition while recruiting best players from other clubs. The core know-how of Real Madrid is its personnel and financial position, but this ever increasing competition has put Madrid into dilemma which needs to be resolved very soon. Real Madrid was in a planning stage to expand globally and sees a lot of potential in Asian countries. In the past 100 years of existence , club had a great history of an achievement and among other top soccer clubs in the world , the club was ranked as one club in Europe with 93 million fans around the globe. For many soccer superstars such as David Beckham, Raul, Figo, Zidane, Roberto, Carlos, Ronaldo and Casillas this club was the starting point . One of the major and noticeable issues for that period of time was that Real Madrid total spending expenditures were higher despite the fact that net income was a loss. During Perezs first Galiticos era, they had rewarded this deficit by shortfall by ceding part of the clubs sports facilities and grounds rezoning to the City of Madrid, a few companies plus the selling of television rights. At that period , this business model worked for Real Madrids economic policy and with a public support they were able to survive. Florentino Perez, the president of the Real Madrid club had the business model of attracting and purchasing the best and most famous soccer players, no matter how high the cost is, the club successfully capitalized on players names and high performance, by commercialization and marketing of products associated with the players

Martin Torrijos 12th Grade English November 21, 2012 Real Madrid FC Real Madrid Football Club is one of the oldest, most successful clubs in the world. Ever since its inception in 1902, the club has won countless titles, and has been a perennial contender for its entire existence. Many of the sports biggest, most notorious legends have worn the pure white uniforms that have become synonymous with the team. With a history of excellence, and a winning tradition that continues to this day, Real Madrids already unbelievable legacy looks to become even greater with the passage of time. This incredible club was founded on March 6th 1902 as Sociedad de Madrid FC, and its first ever president was Mr. Juan Padrs. In one of the first team meetings, the board agreed to the dress team white shirts, with matching shirts and socks, as a tribute to one of his favorite football clubs (Corinthia of London). This decision inadvertently led to the creation of one of footballs most iconic looks, the pure white Real Madrid home kits. In the very same year that the club was founded, it won its first championship, the Campeonato Regional Central (Central Regional Championship). Two years later, On May 21, 1904; Madrid FC participated in the founding of FIFA (the international federation that, to this day, is still the central governing body of the sport), with the federations of Belgium, Denmark, France, Netherlands, Spain, Sweden and Switzerland (and their respective top clubs) all present. Decades later, on June 29, 1920; the club received a letter from the King Alfonso XIII of Spain

granting them the title of a royal, a distinction that very few Spanish clubs can boast. Not even some of the countrys most successful clubs (Barcelona, Valencia, Mlaga, and Atltico de Madrid; for example) share the distinction of being royal clubs. Since then, the club has utilized its present name, Real Madrid Club de Futbol. In the same decade that they were declared..

Real Madrid - The Business 1. Analyze Real Madrid's business strategy using the value chain and competitive forces models. Why has the team been so successful? Value chain analysis: [1] Primary activities: Operations - Here we can consider all the activities related with the team, including played games. We can think about a game as a performance, which the team sells among other things. Every time the team enters the pitch, Real Madrid is producing a product that sells. Marketing and Commercialization - Clearly this is where Real Madrid focuses its activity. We can refer the way the club takes advantage of the player's image to promote itself and make money. The Real Madrid name is treated as valuable brand such as Coca-Cola for instance. Real Madrid offer's its products in its own stores and makes it possible to distribute its products over other distribution channels like the web. Service - In this topic I consider important to refer all the service provided to the members of the club. Being a member has some benefits, like having access to tickets at a low price. The web-site has a section dedicated to the "socios". In these primary activities I don't consider the inbound or outbound logistics, since it seems that it doesn't apply to this kind of organization. Support Activities: Administration and Management We can point out here the structure of the organization, and the executive staff composed by experienced managers. A good management team is a key element to achieve success. The internal organization reflects the club needs and every team knows exactly what it is expected to do. Human- Resources I would refer here the policy of professionalize the management team, but also very important the existence of internal mechanisms that evaluate employee performance making it possible to reward and recognize the good work. This system suffered some changes to be more transparent and fair, so the employee motivation can increase. Motivated employees. Real Madrid Club de Ftbol Real Madrid Club de Ftbol commonly known as Real Madrid FC is one of the oldest professional football clubs in the world. They have a huge fan base of around 500 million in 2004. Perez, the new president, and his team planned on acquiring all the major players of the world i.e., one every year, starting from 2000 to be known as the Los Galacticos. The intension was to have a star studded team that would bring in a huge fan base and media attention. For example, after purchasing Beckham in 2003, they knew that Beckham fans will shift from Manu to Real Madrid. Los Galacticos * Perez took a personal loan of 78 million to finance the buying of these players * In 2004, out of the top-grossing players of the world, five were from Real Madrid * All the Galacticos were paid the same annual salary The major chunk of their expenses was incurred towards the Galacticos. The other expenses were * Real Madrids executive team was hired at 1.4 million per month * Bought the boxes in the stadium for 16 million and refurbished and doubled their amount

* Recapturing rights sold off to different operators and licenses * Cost of launching the site was 4.75 million and they have to incur 10 million annually for promotion and expenses * Real Madrid stores around the world were opened, also these stores give discounts to fan card holders and the cost was estimated to be 1.9 million * Future expenses include renewal of contracts of players Moving on to their revenues, their strategy was to maximize their revenues from * Match-day gate receipts * Merchandising (jerseys, mugs, caps, watches, etc.) * Sponsorship * TV Rights There is an increasing trend of revenue generation from merchandising, broadcast and Pay-Tv. However, though increasing, the most uncertain factor was match-day because it all depends on how the team performs on that day. For example, in case they lose a qualifying match, that is

Real Madrid Club de Ftbol (Spanish pronunciation: [real mai klu e futol] Royal Madrid Football Club), commonly known as Real Madrid, is a professional football club based in Madrid, Spain. It was founded in 1902 as Madrid Football Club and has traditionally worn a white home kit since. The word Real is Spanish for royal and was bestowed to the club by King Alfonso XIII in 1920 together with the royal crown in the emblem. The club established itself as a major force in both Spanish and European football during the 1950s. Unlike most European football clubs, Real Madrid's members (socios) have owned and operated the club since its inception. The club is the richest football club in terms of annual revenue, generating 479.5million in 2011[4] and the second most valuable, worth 1.8billion.[5] Real Madrid holds many long-standing rivalries, most notably El Clsico with FC Barcelona. The team has played its home matches in the 85,454-capacity Santiago Bernabu Stadium in Madrid since 1947. It is one of three clubs to have never been relegated from the top flight of Spanish football, along with Athletic Bilbao and Barcelona. Domestically, Real Madrid has won a record 32 La Liga titles, 18 Copas del Rey, 9 Supercopas de Espaa, 1 Copa Eva Duarte and 1 Copa de la Liga.[6] Internationally it has won a record nine European Cup/UEFA Champions League titles and a joint record three Intercontinental Cups, as well as two UEFA Cups, and one UEFA Super Cup.

In Europe, soccer clubs organized into leagues that often negotiated on behalf of their member clubs for marketing rights. The UEFA negotiated such rights for the European Champions League.20 Most clubs were free to independently establish prices, market games, and adopt competitive strategies. Some of the bigger clubs, such as Real Madrid or Manchester United, negotiated marketing rights on their own behalf. Furthermore, European clubs (except the British soccer leagues) did not engage in the revenue sharing typical of U.S. sports. In U.S. soccer, for instance, TV revenues from national broadcasts were shared equally among teams, and gate receipts were split 60:40 between home and visiting teams. In Europe, the home team usually retained 100% of gate receipts.21 ------------------------------------------------European soccer followed an open-league system: clubs could be promoted or demoted between the premier and secondary national leagues according to performance. Even within premier leagues, clubs often varied greatly in terms of wealth and prestige. Unlike the U.S. sports model generally characterized by some redistribution of economic resources and player talent to maintain

competitive balance, European soccer had relatively few regulations to interfere with free market principles. In Europe, the handful of soccer clubs that could afford the star players easily dominated the sport on the playing field, in the media, and in the marketplace (see Exhibit 3). Players with strong scoring power dominated player rankings thanks to greater visibility and name recognition. This carried over to their clubs. In turn, player name recognition depended on clubs getting into the top competitions and winning championships. In 2004, players from Argentina and Brazil topped global player lists, but the most consistently cited player was Real Madrid's Zinedine Zidane, a French national.

Speech Outline Name: SALIM ALRASHDI Title: Speech about Real Madrid football club. General Purpose: To Inform about Real Madrid football club. Specific Purpose: To show my audience of three aspects of Real Madrid football club. Central Idea: Real Madrid has great background of history, honours, players and management Team. Introduction Attention: Do you know why they call it the royal club? Reveal topic: Today I am going to tell you information about one of the most famous, richest and oldest sports club in the world it is Real Madrid football club. Credibility: I am supporting this team for 9 years now. That can show you how much I know football and Real Madrid very well. Preview: At the end of my speech, you will inform three things about Real Madrid club. To be specific, you can get the information about history of Real Madrid, Real Madrids honours, players and management Team of Real Madrid. Body Transition: lets start with first aspect is it history of Real Madrid. I. Real Madrid has a long history of achievements. a) Madrid City knew football from professors and students of the status of "Free Education Foundation", those professors and students made team in 1897 and named it "Sky team football". b) Real Madrid was founded formally in 1902, three years later in 1905 Real Madrid won its first cup of Spanish Cup. c) The team moved to its first Stadium O'Donnell in 1912, a new stadium was built in1947. This was the Santiago Bernabu Stadium as it is known today.

d) In 1920, the name of the team has been modified by the King of Spain Alfonso to become Real Madrid. e) Real Madrid was chosen the team of the 20th century by FIFA in 2000. Transition: Now that I have informed you about history of Real Madrid, it is time to speech about Real Madrid honours. II. Real Madrid the most successful team in the world where it won 82 Championship in locally and globally.

INTEGRATED MARKETING COMMUNICATIONS The Integrated Marketing Communications is a planning process designed to make an effective campaign by using all the different aspects of marketing communications such advertising , sales promotion, sponsorship, direct marketing, internet marketing or personal selling, to send a clear, consistent, competitive and credible message about the company. We can state that whit its Marketing Communication Strategy, the club has been able to create a very profitable visual impact and consumer credibility worldwide. SPONSORSHIP One of the most important sources of revenue for the club comes from the sponsorship and advertising (EUR 45,9 M) and other marketing resources( EUR 16,9 M). The team leads the list of the 20 richest clubs in the world and it has "built up its brand value through sponsorships and world tours," according to accounting firm Deloitte.. The most recent of these contracts, signed with online gaming company Bwin, is worth an estimated 60 million (BBDO Consulting Agency). In professional sport, sponsorship means that big prize money can be paid and events can be organised scale without the spectators having to pay huge admission prices, so much that, this way matchday income has become a very important source of income for the club (23%). Being sponsored gives a team status. If a famous company is prepared to give money to a team, then people will tend to think that the team must be a very good one. The more well-known the sponsor is, the higher the status of the team. Real Madrid drives an Audi The business relationship between the club and Audi is a good example of the power of sponsorship to create associations which provides good publicity and attracts target audience. The partnership between Audi, the leading luxury car brand in Spain, and Real Madrid, the footballing champions of Spain, shows the desire we have for more success for Audi in this country, explained Jess Gasanz, Director Audi in