Real Madrid Marketing Harvard Business CaseEssay Preview: Real Madrid Marketing Harvard Business CaseReport this essayFlorentino Perez had been elected for the second times in June 2000 as the president of Real Madrid. Perez had promised to turn around the clubs finance, bring in world class talent, and extent the clubs brand around the world through multiple channels.
Under Perez management, Real Madrid had mission to nurture and project the club brand worldwide. But Perez had some problem with his mind, these problem lead him to think twice about his management decision. These problem are :
1. According to Real Madrid strategy (to buying a worldwide class player), planning in 2008 required worrying about the talent. Which is the talent are getting older and older.
2. Competition between professional club such as CHELSEA in buying some player, in this case Chelsea can bring a world class player with extraordinary price to the club. It makes Real Madrid board worry about this condition.
3. In soccer there is an uncertainty factor, such as lose the match or get knockdown from the big competition.4. The Real Madrid managers are worried about this club source of revenue, which is 60% of club revenue are coming from selling the productAccording to me, problem no.1 can be solved with the Brand Equity of Real Madrid FC. Real Madrid has a strong position in every soccer lover all around the world, so it shouldnt be a much trouble for this club. Besides that, real Madrid always attracting for some player who want to live in Madrid, Spain and to play alongside the other worldclass player. This statement also can proposed to solving the problem in no2 and no3. For no 2, real Madrid shouldnt be disturbed by Chelsea financial power to buy some quality player, because Real Madrid has strongest appeal than other club in Europe. But to support this proposal, assume real Madrid should have a stronger financial position or at least equal
3. It seems to me that there are two reasons for the current problem. The first to take the money into the club and then reinvest it in its development. Real Madrid Football is a success in its own special way, which was not possible until this group and it has an even stronger interest in the future of football, especially in soccer in the future. But it also does not take too much effort to increase revenues. Besides that, the problem is what kind of money can be used to develop the group’s interests.1. Real Madrid is getting a small number of players from Europe with great potential, it could attract even a few top-level players, which are in the same class as the main players of the international football players’ associations. And at the same time, it seems that with the help of the new generation of young players that has come out in the recent games of club. In order to do that, the club has also to build the young people. The problem is that they are not willing to develop and to improve. They have a difficult time to develop. They also have difficulty reaching a young people who want to play at great clubs in the right situation. In terms of players, I have said that the club needs to have more than 20 players drafted, to be able to recruit players for the league in the future. But for now, there is nothing in the agreement. Therefore, our only option is to have an agent buy a player who will enter the club for one-third of the salary, or even more. At present, there is no choice but to buy him from Sporting Gijon right now and to do so on a salary which it is not enough to do.In order to develop the group in this way, that would be needed. With the current group, in turn, Real Madrid would have to ask other clubs to pay a little better. As always, we are not in the hurry to solve the problem. The main reason is that the players should be younger and that it’s no longer possible to grow the squad. Also of course, we have too many players who have been selected in the past and I feel that this is a problem with a lot of players who are not in the most comfortable leagues. In such sports, the new generation of elite players who have started playing and who are still mature can help the whole team. But we cannot stop the young players from developing our teams in this way; we have to create an environment in which even though young people can participate in the development of the youth squads, they can never get promoted to the senior team. I am sure that in the future the same sort of project will be put on the horizon.For the future, the club can keep young and to add to its list of achievements. Moreover, the group can invest in its business. Real Madrid, though small in number, could help the organization. But the club has another reason. If some of the young players start to get better and to become better, we would like to expand this company. Moreover, the club would better have the best management system in the world as more than one manager will take part, that is why we are developing the organization. But if even one manager gets a little bit behind other managers, it means that some of them will not get promoted. The main problem that I will talk about as it relates to the young players who will decide the future of the club is that I do not have a good vision. I am afraid that this will lead in some way to a problem with some of the young players: they will find that out and not go up to the team. To find out those important facts: the team can continue if there is no change in the