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The Branding of Club Atlético de Madrid: Local or Global Case Solution & Answer

The Branding of Club Atlético de Madrid: Local or Global Case Solution

Introduction

Atletico de Madrid is a Spanish football team founded in 1903.In terms of UEFA competition titles won, after Real Madrid and Barcelona, Atlético Madrid is Spain’s third most successful club.Since 1911, they have worn a red white vertical jersey with blue shorts.During the 2000s, Atlético Madrid became renowned in Spain for its innovative advertisements as well as its on-field success.Due to which, season ticket holders increased to 45,000from 27,000. Besides advertising, other awareness efforts carried out by Atlético Madrid included the establishment of an official museum in the stadium in 2006, as well as participation in friendly matches across the world. Those moves were the first crucial step in strengthening. Atlético Madrid is working to improve logistics and market the club’s image outside of Spain. The club’s best season, after ten years, was in 2007/2008, when it finished fourth on the table of Spain’s top professional sports league.

The club has a stadium that includes a hotel, a museum, a press center, player locker rooms, and an official team shop. Atletico de Madrid has long been regarded as a significant brand in Spanish and European soccer. It​ ​is​ ​situated in​ ​Spain,​ ​which​ ​is​ ​a​ ​traditional​ ​football​ ​country​ ​ with a sizable following of ardent supporters.However, Atletico was faced against two rivals: Barcelona and Real Madrid.Apart from their position on field, Atletico de Madrid had to deal with another issue: as it was unable to make a profit after years of incurring losses.

Consumer profile of club includes

  • People who attend matches.
  • People who​ ​listen​ ​or​ ​watch​ ​matches​ ​through​ ​media​ ​outlets.
  • The one who buy​ ​fan​ ​memorabilia.
  • ​Sponsors’ team.
  • Read​ ​about​ ​the​ ​club.

The marketing and branding campaign would meet the goal of doubling sales in two years.Gil Marin was dedicated to leveraging the Atletico Madrid brand, believing that it will balance and bring value to the brand of other companies.

Problem Statement

To cover the debt, Atletico Madrid increases its sales by strengthening their publicity &its brand awareness policy. On the international level, Real Madrid and other European clubs always overshadowed Atlético Madrid.

 Question 1

Market Drivers

The majority of the world’s most successful and well-established football clubs are based in Europe. It was established in the 1900s and has grown significantly in the last 100 years. Though it was well-known locally in the beginning, it was not well-known in Spain or the rest of the world. They only had a few promotions and sponsorship’s, and the majority of their revenue came from player transactions. Sports entertainment has gradually become a global phenomenon. They gained strong reputations and earned more funds as they held more and more games and tournaments around the world for a worldwide audience.

The features of the UEFA football sector in terms of sales sources, cost structure, consumers, and suppliers. Match day, broadcasting, and commercial income are the industry’s key revenue streams, while main expenses are made up of costs attributable to player investments, most notably salary costs.

The UEFA football industry is split into 53 domestic league structures, the majority of which are located in Europe, each of which has a top division and several subdivisions in which the teams are divided based on their sporting results. The general European top club is part of the dominant segment of clubs currently competing in the top leagues, according to this scheme. & As a result, financial fairness has an effect.

Many tournaments ran simultaneously in European football, each resulting in a winner. Some tournaments followed a full season format, and others followed a head-to-head format. The results of one match did not move over to the next; the games were entirely separate. A regular-season style competition’s winner was determined by the best overall record, with no head-to-head title contest, whereas other tournaments have a head-to-head final.

In the European football national leagues, all teams were placed in the same table and faced each other an equal number of games. Most football leagues, particularly in larger nations, allowed each team to play each other twice—once at home and once on the road. The overall standings were determined by points, with three being awarded for a win and one being awarded for a draw.

The results of “round match,” in which the groups were decided by a draw, determined qualification for the knockout stages of such competitions, such as the UEFA Champions League. The draws were not spread uniformly. Each team was assigned a rankA-level, B-level, C-level, & D-level-and each group had an (A, B, C, and D) club.

In Europe, a lot of stuff continued from one season to the next. Teams were promoted and relegated within divisions for the next season, and relegated teams were excluded from winning the overall championship. In addition, the elite clubs in the first division eligible for the next year’s European competitions UEFA Cup& Champion league.

European soccer clubs implemented global strategy with the help of following factors

  • cost reductions;
  • improved quality of products and programs;
  • enhanced customer preference;
  • Increased competitive leverage.

Question 2

Local Strategy

It was marketed as a working-class club with a fighting spirit in the community. However, in other parts of the world, this positioning technique does not succeed. As there are different classes across the globe & people always get attracted to the one with more glamour.

Advantages

  • It creates awareness in people
  • Local brand identity also results in customer loyalty, and as mentioned in the case that customers are emotionally attached to the club
  • Club provides source of entertainment for local people

Disadvantages

  • Sometimes strong brand identity also backfires. Like in the case it is mentioned that the local fans of Madrid also call them ‘born losers’

Global Strategy

Apart from advertising Madrid implemented several other marketing strategies for global expansion this includes introducing an official museum in the stadium, and taking part in friendly matches all around the world

Competitors of Madrid have their customers globally so in order to become giant Madrid need to compete with their competitors and have to enter in global business.

In the global market, branding and positioning are especially critical. Selling branded football merchandise generates billions of dollars annually, and Real Madrid and Manchester United employ this strategy to generate 40% of their income from jersey’s sales.

From the customer’s view, it is a worldwide market and people from all over the world watch football matches for similar reasons, such as: entertainment and support for their favorite team. Matches are often held in various time zones and are seen by a large number of people all around the world.It is a global industry, according to the group, because it attracted more international players and had more partnerships with foreign sponsors. (Global brands include Real Madrid, FC Barcelona, Manchester United, and Arsenal.)………………………

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