Corporate Performance

Management
Case Study Analysis
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 Corporate Performance
Case Study Analysis

1st 2nd 3rd 4th

Cineplex AES Innovation at Real Madrid
Entertainment Corporation Timberland Club de Futbol
The Missing Thinking Outside The Business of
The Loyalty
Department The Shoe Box Soccer
Program

Case 1 Case 2 Case 3 Case 4

Real Madrid Club de Football
 Case Study Infographics
Florentino Perez, a successful entrepreneur with experience
PROTAGONIST in politics who become the Real Madrid President, to build a
professional organization in modern soccer club era.

To transform a club that was in a period of decline

CHALLENGE both on the field and financially.

1. Who is (are) the protagonist(s)?

2. What are his or her objectives (implicit or explicit)?
3. What problems, opportunities, and risks do I, as the protagonist,
QUESTIONS 4.
face?
What evidence do I have to make the decision? Is the evidence
reliable and unbiased? Can I improve it?
5. What alternative courses of action are available?

Saturn is the only planet with rings in the

entire Solar System
 Q1 : Who is (are) the protagonist(s)?

● Florentino Perez defeated Lorenzo Sanz (the Real Madrid President in 1995-2000
period) for the club presidency. He took on a very tough challenge to transform a club
that was in a period of decline.
● After the first Real Madrid President, Santiago Bernabeu died in 1978, the club
declined for nearly two decades, on the field and financially.
● Under the Sanz era players were regularly sold to cover operating losses. Even to
reduce the club’s significant debt, he sold off several operating core assets including
stadium exploitation rights and media rights.
 Q2 : What are his or her objectives (implicit or explicit)?
➢ Florentino Perez’ objective as a President is to build a modern soccer club which have a professional organization. He
wanted to transform and structure the club as a company and began to think themselves as content providers.

VISION MISSION Simple Truth Mindset :

To be the best To nurture and The best players pay for
themselves so will deliver the
Real Madrid is a Brand. The product (the players
and the games) is the
soccer club in project the best performance and the best
spectacle.
content.

the world. Real Madrid

brand
worldwide.

GOALS
BRAND VALUE DRIVERS
1. Give Real Madrid the
1. Size of audience; financial flexibility to
2. Frequency with which the audience acquire talent and expand
engaged with the brand; its brand reach;
3. Sociodemographic characteristics 2. Assemble a team of top
of the audience; players;
4. Bridges that could be built to link 3. Leverage the Real Madrid
the brand and the audience. brand and content across
a variety of channels.
 Q3 : What problems, opportunities, and risks do I, as the protagonist, face?

➢ Declining reputation and achievements on the field (no European

Cup since 1966).
PROBLEMS ➢ The club's financial condition is poor, with large debts and
Something that must be resolved operational cost losses.
➢ The club's operations and marketing approach didn't match its
reputation in sports.

➢ Real Madrid has fan clubs all over the globe already so that it can
allows us to serve as a marketing vehicle for Real Madrid.
➢ Has loyal local fans who always support the club and attend
OPPORTUNITIES matches, especially at UEFA games can be used as a greater
revenue opportunity.
Positive factors that can be utilized
➢ Has various product opportunities to be marketed and sold to the
fans such as jerseys, shoes, merchandise, TV broadcasts, stadium
tours etc.

➢ Do not have a large amount of capital to buy star players so they

have to look for funding channels, including bank loans, which
RISKS ➢
could potentially result in losses and incur large interest.
The strategy of purchasing star players does not guarantee 100%
Negative factors that can occur that they will shine. there is the potential for performance flops or
long-term injuries.
➢ There are rich new market participants who compete to get
talented players and also apply the same strategy. It can make the
recruitment of targeted players to fail because of lose out on the
transfer budget.
 Q4 : What evidence do I have to make the decision? Is the evidence reliable and unbiased? Can I improve it?

This data can be used as a consideration for decision making in marketing strategies to find out:
1. The status of how well known the Real Madrid "brand" is compared to competitors from other clubs.
2. The distribution of the level of fan fanaticism in various regions of the world as "target customer" information.
 Q5 : What alternative courses of action are available?

● Rational action can be taken by first strengthening the financial side, both in terms of budget and funding.
● After that, investment can be made by purchasing star players, which apart from strengthening and
improving the team's performance on the field, can also improve Real Madrid's branding and increase
profits from merchandise sales. In this way, it is hoped that branding and business strengthening goals can
be achieved.
● Acting as a company : using branding, values, and mid long-term planning to generate income and
portraying Real Madrid as a brand whose content are the players and the games (the product it sells) so
here we will describe a business scheme that can be applied so that it is in line with the vision, mission and
goals of Real Madrid as a professional organization.
 Q5 : What alternative courses of action are available?
➢ The business scheme model will be implemented on 3 levels (organisational, strategic, emotional) and measured by 4 brand value drivers :

Organisational Strategic Emotional Measurement

4 brands value drivers :
● Creation of clear vision and - Size of audience
Creation and strengthen : 3 goals as a content provider : mission - Frequency of engagement
- the sport area departments - Financial flexibility ● Transform the emotional with the brand
- marketing area department - Top players realtions between the brand - Sociodemographic
- corporate and presidency - Leverage brand and content and the fans into relations characteristics
area depatment across various channels which contribute the business - Bridges to link audience and
profit return brand

Program
 Q5 : What alternative courses of action are available?

Strategic Program Set the three interrelated strategic programs to achieve the mission and vision which has been created.

● Rezoning of training pitches Achieve financial

flexibility to acquire
1st
● Recapturation of exploitation rights
● Set-up of a strand-alone legal entity to own and
manage commercial rights
talent and expand
● Licensing / sponsoring brand reach

● Strengthen the scouting talent team

2nd
● Invest in "The Galacticós" program - one new star Assemble a team of
player recruit per year
● Include: Figo, Zidane, Ronaldo, Beckham, Owen, top players
Raul, Casillas, Carlos

● Attract and retain star players

● Real Madrid TV - 16 hours of daily coverage Leverage the brand
3rd ●
●
Website design development
Stores, fan card, magazine and stadium tour - making
fans feel special
and content across all
kinds of channels
● The key is the one-on-one relationship with the fans.
 Q5 : What alternative courses of action are available?
Assembling a team of top players is one big part of Real Madrid’s business strategy. The players were not
Marketing Program only seen as athletes, but also as products of the Real Madrid brand – the creation of a strong, internationally
well known team therefore contributes to Real Madrid’s brand value and therefore positively impacts the
financial bottom line.

The point of having good players was not just to win

Endorsement by the
1st
games, but also to endorse the club image – players
have moved from being athletes to being products :
→ The best candidates were clubs with strong brand
athletes as a product
identities and a wide international fan base

● Matchday gate receipts

“The products”
2nd
● Merchandising (sales of branded goods)
● Sponsorship (club / individuals) making money to the
● TV Rights (the largest source of revenue)
● Public share offering
club

● Maximize the merchandize (fanclub, shops,

restaurant) in specific area which has a large fanbase

3rd ● Expand the brand by using the coaching such as

soccer academies
● Make a loyalty program through content
Global Brand Reach

development
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