The Case Discusses the 'galactico Recruitment Strategy

INDEX

1. Abstract        3

2. Body of the report        3

      2.1 Describe the profile of the final consumer of Madrid products for each of the options: Experimental, Occasional and Regular.        3

      2.2 According to Maslow’s motivational approach, Where would Real Madrid’s products be placed? Explain your answer.        4

3. Conclusion        5

4. Resources        6

4.1 Websites        6

Abstract

The case discusses the 'Galactico recruitment strategy introduced by Florentino Perez then the new approach that has been followed by Ramon Calderon in 2006-2007. The case also highlights the impact this strategy had on Real Madrid's revenues and brand popularity.

Over the past decade, there have been drastic changes over the management of Real Madrid football club, which led them to apply different business strategies for generating a shift from traditional clubs to entertainment companies by creating new sources of revenues. Within their dominant positions, Real Madrid Football Club (CF) presents valuable examples for understanding the underlying factors of how the club develop value creating strategies to gain sporting and commercial position in the competitive scope of the football business. This study intends to describe and analyze the final consumer marketing strategy of Real Madrid CF within the scope network of value captures research framework in football business. The current study was based on case study, in which data were collected from the executives of top-management level of Real Madrid CF.

The research and multiple sources were used to increase the reliability and validity of the study. Real Madrid CF generated variety of value captures divided into two dimensions, team sport and customers. The Club gained an understanding of which marketing strategies currently being used by this club, what essential elements of these marketing strategies composed and how the club structured these strategies to provide a competitive advantage among other clubs.

Body of report

1- Describe the profile of the final consumer of Madrid products for each of the options: Experimental, Occasional and Regular.

In terms of the growing importance of sports public relations, this research offers the policy that Real Madrid have followed in respect of the kind of customers that have been gone through them such as Experimental, Occasional and Regular. It analyzes the role played by the relationship-management strategy based on content creation and integrated business decisions in Real Madrid’s branding and economic success.

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 Real Madrid management has also tried to optimize the spectacular dimensions of its assets, such as the stadium or the trophy room. The creation of organized tours, where fans can witness the places where Real Madrid glory takes place, offers the club an opportunity to story-tell the most important events of Real Madrid’s history. which that Indeed, the tour makes the Real Madrid stadium, with almost 700,000 visitors every year for those occasions, the second most visited museum in Madrid   trailing only the internationally famous classical painting collection at the Prado Museum.

 They have launched different type of broadcasting campaigns, In order to reach an inaccessible fans for instance, Realmadrid.com has been as a community creator, and a substantial part of Real Madrid managers’ strategy to enable a “one-on-one relationship” with each fan via mobile telephone, TV, wireless Internet, and so on. Another example In November 2003, Real Madrid strike 4 year deal with Spain’s major telecom provider, Telefónica, to deliver Real Madrid content over Internet, broadband, and mobile services,  mainly interviews of players, live feed, club news, and the option of product purchase or activating the Real Madrid card that gives Real  Madrid fans particularly from outside Spain  60%  of  visitors come from abroad, exclusive access to Real Madrid products, promotions, and magazines. which that shows us the experimental members of the Club’s services and offers to its fans.

When Calderon had become the president of Real Madrid, the club had become among the most profitable sports franchises globally, by carrying out a new approach- mixed, with keep following the  policy by signing a new stars players in summer 2006, moreover adding the new approach which Calderon had rejuvenated the team by acquiring the promising youngsters which the gained in his first year a  further grew to the club revenues in all major areas.

Real Madrid’s content strategy also consists of more traditional methods, such as magazine editing for targeted audiences. Real Madrid publishes a multi different publications, not only as a way to maintain relationships with targeted fans but also to provide value for their money as Real Madrid card holders or game attendees. we can understand that the management considered the enhancing and expanding the relationships with fans was worth paying any price for these players, knowing it was a long-term investment, therefore it targets and maintain the club’s customers regularly for long term.

2 According to Maslow’s motivational approach, where would Real Madrid’s products be placed? Explain your answer

Real Madrid Management has followed the mixed company strategy methodology by merchandising, sponsorship, distribution business, online business , and broadcasting contracts and social media.

The policy initiated by  President  Florentino Pérez  in  2000  with the  signing  of a  “galactic”  player  every season installed  a second  phase, the ultimate one, in the  globalization of the  brand. This expense was balanced by the rise of its own junior players who embodied the values of Real Madrid, and who together with the victories of the Spanish National Team, would also gained global reach years later.

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