Real Madrid Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Real Madrid analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Real Madrid marketing mix, help the brand succeed in the market. Let us start the Real Madrid Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Real Madrid Product Strategy:
The product strategy and mix in Real Madrid marketing strategy can be explained as follows:
Real Madrid is one of the most popular football clubs in the world based out of Spain. Product for any football club are its players its coaches, its staff, its stadium, its managers, its ground staff, its stores, its online website store, its offices in various places, etc. and Real Madrid has this all. The team of Real Madrid has always consisted of the best of players. They have been known as one of the highest spenders in the transfer market buying Marquee players regularly. Some of the players they bought for hefty amounts include superstar Cristiano Ronaldo, David Beckham, Gareth Bale, Luka Modric, Toni Kroos, Figo, Zidane etc.
Its Managers have been also professionals of the highest regards with the likes of Jose Mourinho, Zinedine Zidane, Rafa Benitez, Carlo Ancelloti, etc. managing the club in the past. Real Madrid’s stadium Santiago Bernabeu is a sprawling place to visit and has a capacity of more than 80000 fans. Its ground staff and maintenance staff are of the highest order with a professional attitude and heavy emphasis on the highest quality. Its online and offline stores offers its products such as the player signed special jerseys, normal jerseys, kits, individual items, etc are all a part of its marketing mix product portfolio strategy.
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Real Madrid Price/Pricing Strategy:
Below is the pricing strategy in Real Madrid marketing strategy:
Real Madrid being one of the best clubs in the world if not the best has the one of the highest ticket prices in the world with the highest cost of ticket being around Pound 1500 and the cheapest tickets also costing as high as 30 Pounds. This range is one of the highest in the footballing world.
Pricing can also be seen in terms of the jerseys. Its jersey partner is Adidas and its jerseys are usually expensive with a jersey costs ranging from $20 to $200. Apart from jerseys, its stores also sell footballs, total kits, studs, etc. Real Madrid’s pricing of signed jerseys is based on the player who signs it. If it is a starting 11 player the jersey can be as expensive as $500 or even more. With these things in consideration it is no surprise its annual profit or turnover was more than US$ 650 million and the club’s net worth is estimated to be as high as US$ 4 billion. It also has huge membership fees for its members and follows an premium pricing model overall.
Read more about Real Madrid
Real Madrid Place & Distribution Strategy:
Following is the distribution strategy in the Real Madrid marketing mix:
As the name Real Madrid suggests it is based out of the capital of Spain, Madrid and its stadium is the huge Santiago Bernabeu with a capacity of more than 80000 people at a time. Its presence of fans is all over the world with its fans being constantly engaged with the club and its activities. Real Madrid has a wide network and its matches are broadcasted in more than 50 countries live. These countries include India, Spain, France, China, The U.S., Singapore, Pakistan, Sri Lanka, Germany, etc. Its website and social presence is quite prominent and it is one of the highest followed clubs in social media.
Real Madrid stores have an excellent supply chain and with Adidas as its sponsors distribution is of course top notch.
Real Madrid Promotion & Advertising Strategy:
The promotional and advertising strategy in the Real Madrid marketing strategy is as follows:
Real Madrid’s biggest promotion is the global broadcast of all its matches and club related events. Its promotion is mainly through its several club sponsors and partners including Adidas, Fly Emirates, Audi, Movistar, Nivea Men, Mahou, EA Sports, etc. and has many sponsors which makes it the one of the richest club in the whole world. Real Madrid has a strong online presence as well with multiple social media channels and Real Madrid has the highest number of followers in Instagram as well. Its superstar players are their best promoters with each having their own fan bases and hence drawing these bases to the club. Players like Gareth Bale, Sergio Ramos, Luka Modric, Marcelo, Isco, etc. have a large number of followers themselves and these followers are exposed to Real Madrid automatically. The club has also won several accolades and awards. It won the Champions League 3 times in a row, being the first club ever to do so. These all trophies work real well towards the clubs promotion and increase its fan base significantly.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Real Madrid.
People:
The main stake holders and people involved with Real Madrid or any other club are the players, the coaches, the staff both ground and maintenance staff, the fans, the club's higher management people, the manager, the sponsors, etc. Real Madrid has the best HR policies being a top club globally. They have a very structured compensation and benefit policies. They are one of the highest paying clubs of the world with some players earning as much as US$ 400000 per week. Its coaching staff, the managers, the ground staff are all the best in their business and hence are also paid very well.
Process:
Real Madrid is a very organized club with the manager and its coaching staff taking care of this aspect. They have a fixed system and a methodological approach of practice sessions, fitness programs, fan engagement sessions, etc. They give a lot of emphasis on fan engagement and try to make their process as simple and accessible for the public.
Physical Evidence:
The biggest physical evidence for the club is its sprawling stadium the Santiago Bernabeu with a capacity of more than 80000 people. The club-owned stores which have a premium look with high end gears, kits and jerseys. The office is a spacious and rich look with the best in class furniture. The Real Madrid club bus, the clubs other equipment, the posters of the clubs, etc. are also important parts of its physical evidence. This completes the marketing mix of Real Madrid football club.
About Real Madrid:
Real Madrid is the most successful football club in the history of the sport, it has won 13 champions league titles, more than any other club and also has been 33 times the La Liga champions. A club known for its flamboyant style of play, Real Madrid was started in the year 1902 and since then has gone on to create history in the field of football. Some of the giants in the world of football and the best players like Cristiano Ronaldo, the Brazilian Ronaldo, Zinedine Zidane of France, Pele, Raul, etc. have played for the club.
It is also known famously as the Los Blancos, Los Vikingos, and also Madrid. Its stadium is the sprawling Santiago Bernabeu with a capacity of more than 80000 people is one of the largest stadium in the world.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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