How a football club becomes a brand ?
* External diagnosis
* Macro- environment: PESTEL template
* Quantitative analysis / Qualitative analysis
* Consumption process
* Individual determinants of consumer behaviours
* Environmental influences
* Internal diagnosis
* Olympique Lyon: a modernsucess
* AS Saint Etienne: a former glory
* Strategic& operational decisions
Sport is an area of consumption around the world. Several sports are popular but in Europe the most famous is football. We have decided to focus our study on football for a lot of reasons.
For some people, football is a culture, a religion especially in England. We can speak of“football business”, it’s between the sport and the business. The global budget of football in the world is 250 billion Euros and it’s more than the GDP of Denmark, salaries of players are more and more important with for example Didier Drogba from Chelsea receives 660 000 Euros by Month. Since ten years, football revenues have increased a lot.
On football, we have focused our study especially onmerchandising. Today, only in Europe, merchandising on football represents 7 billion Euros by year. In the modern football, clubs are not just a team and it’s a necessity to become a brand. We have one simple question, how a football club becomes a brand?
1. External diagnosis
Macro environment: PESTEL TEMPLATE
| Opportunity | Threath |
Political | Taxes on all sport revenue(products, TV)Good images for the country (France 98) | Possibility to show national problems (national anthem…) |
Social | Belong to a tribu, feeling important in the life’s club… | Violence, Hooligans, racism… |
Technological | New technics of refeering (video cam, radio link…) | Gap between professional and amateur football |
Ecological | Stadiums integrate environmental issues |High budget |
Legislative trend | Protect professional player (nationality…) | Taxes, rules about the government (Bosman law, 1995) |
Economical | No influence in the crises in a short term (people buy products and go to the stadium) | High professional taxesPossible influence of the crisis in a mid term (Partenrship, audiovisual revenue) |
Football is more important inEurope and in each country; there is at least a professional championship with twenty teams. The most important revenues are concentrated in England, Italy, Spain, Germany and France and we can have a brief view of the 20 main competitors in Europe. It’s also possible to see their revenues and we can notice that the first French team is Lyon at the eleventh rank.
Football presentsincredible figures; the global budget is 250 billion Euros by year. In the world there are more than 300 000 clubs and more than 1 500 000 teams.
Since 1990 Clubs budgets have increased of 180 % thanks to audiovisual revenues, for example, the budget for tv rights in france this year is 668 million Euros. The demand is really important and on merchandising, the revenue for France, Italy, Spain,England and Germany is more than seven billion Euros by year. Whereas budget less important than others countries, France is a rank 2 for Football merchandising.
The average part of the club budget from merchandising is between 8 and 10 % .The global budget the ten main competitors is:
1. Real Madrid, Espagne, €275,7 millions
2. Manchester United, Angleterre, €246,4 millions
3. MilanAC, Italie, €234 millions
4. Juventus de Turin, Italie, €229,4 millions
5. Chelsea, Angleterre, €220,8 millions
6. FC Barcelone, Espagne, €207,9 millions
7. Bayern Munich, Allemagne, €189,5 millions
8. Liverpool, Angleterre, €181,2 millions
9. Inter Milan, Italie, €177,2 millions
10. Arsenal, Angleterre, €171,3 millions
In France, with Lyon as an...