CCBS – learning through marketing straegies of MAN U

Manchester United

Task: The first case will be an analysis of the given Firm from different perspectives from International Marketing reflecting the literature. The second case will also analyze the given firm from similar perspectives but will also make a comparison between both and apply results of the first firm on the second one.

1^st step: Analyses of international marketing strategy of Manchester United

2^nd step: Find options for local club to use it as an example

3^rd step: Concrete marketing project

Schedule

Theoretical background

1^st step

1. Finding sources
2. Putting data together à sorting them out
3. See the business background
4. Analyzing marketing strategy based on the concept of the value chain
5. Summing up

=============== 2 weeks

2^nd step

1. Finding sources
2. Analyzing current situation of the company and the environment – SWOT
3. Comparing situation in both clubs
4. Comparing Man Utd. Strategy with options
5. Recommendations

=============== 2 weeks

Theoretical background

The best way to explain international marketing strategy was a concept of a value chain from the textbook GLOBAL MARKETING by HOLLENSEN.

THE VALUE CHAIN

Provides systematic means of displaying and categorizing activities. Shows how the value is created. Simplified, the primary activities performed by a firm in any industry can be grouped into 4 main categories. As seen at the slide a distinction is also made between the production-oriented “upstream” activities and the more marketing-oriented “downstream” activities.

At each stage of the value chain there exists an opportunity to contribute positively to the firm’s competitive strategy by performing some activity or process in a way better than the competitors.

All internationally oriented firms must consider an eventual internationalization of the value chain’s functions. The firm must decide whether the responsibility for the single value chain function is to be moved to the export markets, or is best handled centrally from head office.

1^st step

Finding sources:

Vyrocni zprava Man. Utd.

Internet: browsers like msn.com, google.com, yahoo.com

Cnn.com

Bbc.com

Manutd.com

Ft.com

Putting data together à sorting them out:

From about 60 articles we sorted out all the articles interested only in sport results and personal affairs of David Backham left with approx. 40 articles about Man Utd. Business activities.

Those articles we devided into groups concerning different activities or markets as follows

Us market

Japanese market

Partners and sponsors

Others

Business background of Manchester United

•Established in 1878

•14 times winners of the league

•The most well known soccer club in the world

•Successful 90’s

•Turnover over £130 mil

•Traded on stock exchange

Business activities

•Football-team

•Cable network - MUTV

•Financial/banking institution

•Merchandise souvenier shops

•Museum

•Conference and catering

•Popular free-email service

Analyzing marketing strategy based on the concept of the value chain

Manchester United uses its name as a brand and his marketing strategy is based on promoting the brand covering all his other activities beside soccer.

Co-branding

Partnership with sponsors

FAN BASE OF MANU + PARTNERS(WELL KNOWN CONSUMER BRANDS) = PROMOTIONS + CUSTOMER SHARING + WORLDWIDE MARKETING.

In case of ManUtd partnership with Budwieser.

For increasing the brand awareness internationally as well as for higher profit the Manchester United uses mainly those 4 ways:

•Outlet stores

•Broadcasting

•Preseason games

•Internet

In different markets ManUtd. applies specific strategies. I have analyzed strategies used to enter Asian, mainly Japanese market and US market from which the one for US market would be closely described for further use.

Partnership with New York Yankees

Increasing the brand awareness

Plan to work together to develop a Manchester United pre-season tour of North America in 2003

To satisfy the increasing demand from fans for information, products and services

•Sharing marketing information

•Developing sponsorship

•Exchange in merchandising

•

Developing cross promotional programmes

•Sharing sporting knowledge

Summing up

- United is not only a soccer club but also a business

- It is all about the brand

- Different strategies in different continents

Outlet stores, Broadcasting,

Preseason games, Internet

- Partnership with market-leading companies in different fields

- difficulties to find player with certain qualities on bareable wage level

- Financial plans and development

2^nd Step

Finding sources

Internet: browsers like msn.com, google.com, yahoo.com

Cnn.com

Bbc.com

Ft.com à not so useful

Official webpage,

personal interview with assistant Chief of commercial and sponsor and expert in sportmarketing

Conterporary history

•AIK = Allmänna Idrottsklubben

”The public sport club”

•Founded 1891 by Isidor Behrens

•1896 began to play soccer

•1900 won their first premiership (winners for 10 times)

•Hockey, soccer, bandy, bowling, floorball

The club has been quite successful in football during the past few years. In total, they have won the Swedish league ten times, the Swedish cup seven times and represented Sweden in the European cups several times. Nowadays, they are known as one of the best teams in Sweden.

As football has become very popular in Sweden since 1994 when the National team finished third in the World Cup, “Gnaget” has a lot of opportunities to increase their popularity and enter the sport business.

SWOT analyse

First of all, we have done a SWOT-analyse to see good and bad sides of AIK in order to better understand the club’s situation and from that, come up with new ideas and recommendations to them.

Strengths Weaknesses

Today, the club has very well structured organisation. Taking the example from big soccer clubs, they are implementing new methods how to work with and train the youth teams. Although they have negative revenues they invested huge sum into their training field in Karlberg and they have bought very expansive players over last few years. Still they are popular mainly in Stockholm.

Opportunities Threats

It is very important for AIK to have a good relationship with the media. As we can see with the Manchester United that is the communication channel that influences public perception of the club the most. Without publicity in media such as newspapers, TV, radio and the internet Manchester United could never be so successful like they are now. The Manchester United commercials proved that use of players in media promotion is vital. However, good results are essential.

Manchester Global, AIK Local

"To compare AIK with Manchester United is like comparing an apple with an orange.”

Peter Johansson – Assistant Chief of commercial and sponsor

For the first sight, the British club is so much bigger than the AIK, if it comes to economic policy as well as to sport. Manchester United started developing itself and obtaining successes many years ago and consequently they are today one of the most famous teams in the world. One of the main reason which allowed them to grow that much was the cultural background of England with a long tradition in football. Comparing to AIK’s situation in Sweden, the popularity of football increased just recently and together with global increase of popularity opens to AIK options to profit form it.

We can see those two clubs in two different stages of development. When Manchester United can focus on the downstream activities like global marketing strategies, AIK has to put firstly effort into the upstream activities, which means mainly into training and obtaining good results on the field. After managing those they can drive their attention off-field. It is cheaper to train own players than buying them.

Recommendations

ØIncrease awareness of the brand

ØPartnerships with Scandinavian Clubs

ØGood results

ØImprove image in media

Using the experiences of Manchester United and after analyse of the situation of AIK we came up with these recommendations.

As far as we are concerned, the most important thing right now is to increase the brand awareness of the club, not only of the football team.

One way how to achieve this objective is to cooperate with the two other biggest football teams in Scandinavia – Bröndby and Rosenborg. This partnership can make interest for media in all three countries. Further more, they might also cooperate on the upstream and downstream activities. Perhaps,

• Sharing marketing information
• Developing sponsorship
• Exchange in merchandising

• Developing cross promotional programme
• Sharing sporting knowledge

• Cooperation of youth teams
• Camps

• Preseason games

Although AIK doesn’t qualified to International leagues, this way can be introduced abroad and spread its popularity outside Stockholm.

Nevertheless, the most important thing are the games, without good results AIK will not ever have a chance to expand abroad.

Another big step to take is to move from sponsorship to partnership and choice of the right sponsor/partner. The biggest sponsor of AIK is Åbro, which is a Swedish brewery. Since the Swedish alcohol policy is quite strict, it is hard for AIK to do good advertising campaigns together with Åbro. In Sweden it is not quite accepted to mix sport with alcohol and such advertising could give them bad fame. As Manchester United developed suitable strategies for each market, AIK should follow the specifics of Swedish market. There has to be further research done to choose a good company as a partner/sponsor.

The marketing mix of Manchester United

What are the main elements of the marketing mix of Manchester United? First of all the product includes providing an excellent football team that plays and wins in an exciting way. However, there are other ingredients of the product including merchandising such as the sale of shirts, and a range of memorabilia. The product also relates to television rights, and Manchester United's own television channel. In one respect the place is Old Trafford where home games are played, but Manchester United also plays at a range of other venues. And, of course its products are sold across the globe, through the club's website and a range of other sales media.

Manchester United markets itself as a global brand. The club also engages in a range of joint promotional activities, for example with the mobile phone company Vodafone. Manchester United books, shirts, programmes, keyrings and many other items are sold and promoted through its website. The club has positioned itself at the upmarket premier end of the market and, as a result, it tends to charge premium prices as evidenced by the high cost of a season ticket to watch home league games.

Data collected from various sources.

SAGAR SHETTY