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Real Madrid Marketing Harvard Business Case

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Florentino Perez had been elected for the second times in June 2000 as the president of Real Madrid. Perez had promised to turn around the club's finance, bring in world class talent, and extent the club's brand around the world through multiple channels.

Under Perez management, Real Madrid had mission to nurture and project the club brand worldwide. But Perez had some problem with his mind, these problem lead him to think twice about his management decision. These problem are :

1. According to Real Madrid strategy (to buying a worldwide class player), planning in 2008 required worrying about the talent. Which is the talent are getting older and older.

2. Competition between professional club such as CHELSEA in buying some player, in this case Chelsea can bring a world class player with 'extraordinary' price to the club. It makes Real Madrid board worry about this condition.

3. In soccer there is an uncertainty factor, such as lose the match or get knockdown from the big competition.

4. The Real Madrid managers are worried about this club source of revenue, which is 60% of club revenue are coming from selling the product

According to me, problem no.1 can be solved with the Brand Equity of Real Madrid FC. Real Madrid has a strong position in every soccer lover all around the world, so it shouldn't be a much trouble for this club. Besides that, real Madrid always attracting for some player who want to live in Madrid, Spain and to play alongside the other worldclass player. This statement also can proposed to solving the problem in no2 and no3. For no 2, real Madrid shouldn't be disturbed by Chelsea financial power to buy some quality player, because Real Madrid has strongest appeal than other club in Europe. But to support this proposal, assume real Madrid should have a stronger financial position or at least equal



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