Case Analysis: Real Madrid Club de Futbol

Essay by coach0219University, Master'sA, March 2006

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A.) Introduction

Over time, soccer has developed into one of world's most popular games. Its simple rules and ease of playing has made it attractive to boys and girls of all ages from country to country. The rise of popularity of soccer can be seen in many places. From video games to clothing merchandise, soccer fans are spending more money and time involving their passion. One's own home is another place the rise of popularity in soccer can be seen with more games being televised. World Cup games raise the interest in many people from throughout the world. Magazine covers are featuring the sport and its stars on a regular basis.

Even with the constant growth in popularity, soccer remains a business. The ultimate goal for each and every soccer franchise or club is to be profitable. To do this, many marketing techniques must be exploited. World-class talent can be brought in to help put a better product on the field and also to help increase the interest in the team itself.

The New York Yankees of Major League Baseball's American League is a prime example of this. Year after year the Yankees bring in baseball's top free agents to help put a competitive team on the field that seems to always be in contention for the league championship. By increasing the payroll and remaining competitive, fans keep coming to the games and remain interested in the team itself, which helps sells tickets and increase revenues.

B.) Situation Analysis:

Nature of demand

The product, the actual brand of the Real Madrid Soccer Club already exists. With soccer being a popular sport, over 240 million people kick a soccer ball at least once a week, soccer has a large target market. Although its target market is relatively large; targeting soccer fans...