preview

Real Madrid Club de Fútbol

Better Essays

Abstract
Real Madrid Club de Fútbol has a storied past. In the past decade, they were able to overcome extensive financial difficulties and assemble a first team containing seven of the top players in the world. These players were called the “Galácticos.”
The Galácticos were the core of a complete business reformation pioneered by the President of the club, Florentino Peréz, a Spanish business mogul. Under his guidance, brand recognition expanded greatly, and cash flows increased drastically, creating great profits for the firm.
The consumer market for Real Madrid Club de Fútbol can be divided into four main segments, the two extremes being heavily loyal member-owners known as Socios and international fans who mostly wane away from …show more content…

Real Madrid’s business model has shifted a lot throughout the years. Their main sources of revenue are gate receipts, sponsorships, merchandising, and television rights. One last source of revenue that should not be left out is the offering of public shares of the soccer club. Real Madrid itself is not public, but there are numerous of other top clubs that have attracted investors and are now listed on the stock exchanges.
Consumer Segmentation
Domestic Socios Abonados
These are cardholding members who pay their dues. They pay an average of 370 euro per year for season tickets. Their loyalty even encourages them to pay a 30% premium to attend UEFA and King’s Cup games.
Because of their commitments to Real Madrid, to increase their utility, they want to attend as many games played by Real Madrid as possible. Their demands on both the admission tickets and other merchandise are inelastic. To maximize their utility, Real Madrid needs to deliver information related to the team as much as possible.
Domestic socios abonados contribute a lot to three out of four revenue streams, tickets receipt on match day, marketing, and broadcast and pay-TV. Because they are huge fans of Real Madrid, they will try to attend more games. The ticket revenue from them takes up a large proportion of the total match-day revenue. Additionally, they are willing to pay a higher price to purchase the merchandise, even though they are given a

Get Access