Marketing Football

The brandF tball

By:Shadul NarangStudent-GMBAProduct Marketing and ManagementSP Jain Centre of Management, Dubai+971-55-77-40850

The Brands we all know !!

The Brand: Football

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Revenue (€ million) Average Attendance Total Capacity No of International Players

2007-08 2006-07 2008-09 2007-08   2007-08

Real Madrid 365.8 351 71,800 76200 79778 17

Manchester United 324.8 315.2 75,400 75700 76162 18

FC Barcelona 308.8 290.1 69,000 67300 98571 15

Bayern Munich 295.3 223.3 69,000 69000 69000 14

Chelsea 268.9 283 41,700 41400 41700 16

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70% of the revenue is cost of labor, majority chunk of it in players wages and costThis cost has risen by 72% during the past 10 years!Main sources of income for clubs are TV rights, merchandise sales and match day-tickets. All of these revenue sources have a direct correlation with the awareness and loyalty of fans towards a club.Popularity of football is increasing day-by-day.. Oh really..?

§ Total coverage hours in World Cup 2006 increased by

148% over 1998 edition and 76% over the 2002 edition. If one channel were to broadcast, then it would be showing

just football for 8 years!

This is 5X times the viewership of SuperBowl!§ Broadcasting channels increased by 62% over 2002 edition.

FIFA is currently made up of 205 member associations with over 300,000 clubs (up 23% since 2000) and 240 million players from around the world.

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Father’s loyalty passes on to his kids, making the loyalty of a fan/customer as last as long as 100years old (50+50). Imagine the Customer lifetime value!When team is performing and winning, all is rosy, but then we all know, no team is invincible, e.g. Leeds United, Newcastle United, Liverpool of-late, even FC Barcelona are slipping now!Fans in different age brackets have different expectations from a football club, despite their team winning-young kids and teenagers want to play and emulate their idols, hence a coaching facility maintained by the club is crucial;-middle age fans expect smooth and fair ticketing process, all the information-accurate and immediate-rich people want to be pampered with front seats, drinks, foods being servedFan-club integration is crucial, e.g Manchester United website enabling subscribers to take virtual penalty against their No 1 keeper Edwin Van der Saar.

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Customer Relationship Management (CRM) using email marketingBluetooth marketing in Stadium, already implemented by clubs such as Portsmouth,

West Ham, Celtic FC etc..Revenue on non-match days is the game changer, thus holding events on such days

could bring in crucial money. E.g Arsenal holding x-factor auditions in its stadiumSo much football and so many clubs, direct marketing for customer acquisition and

customer loyalty are very important Let the team popularity piggy-back on the awareness of its sponsor, especially in

un-tapped geographies. E.g Manchester United’s new sponsor , Turkish AirwaysSEO (Search Engine Optimization) and SEM (Search Engine Marketing) using ad-

sense and ad-words in GoogleSocial Media marketing using tools like Twitter and Facebook

FC Barcelona’s facebook pages has 1.2 million fans, increasing at 20,000 a week with interactions to the order of 50,000 every week.That’s 24 interactions per fan, taking direct interaction with fans to all together new heights

Real-life could be a great blue-ocean marketing strategy!

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Football like any other entertainment industry is recession freeProof: the recent transfer fees reaching record numbers Its popularity and fan following is always going to increaseThe cost to run a club is only going to increase with time, hence the only solution is to increase your revenueSocial Media marketing is the most cost-effective mode of marketing in the future.The cubs to adopt it the earliest are going to benefit the most

The Brand: Football

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Football Money League 2009 by Deloittehttp://www.sportscrm.com/football-crm.htmhttp://www.eufootball.biz/http://www.loc.gov/rr/business/BERA/issue3/soccer.html