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Manchester United Marketing communication

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Francine Henry

on 13 December 2012

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Transcript of Manchester United Marketing communication

Francine Henry Manchester United Marketing communications Finance Products and services Sponsorships Recommendation Marketing strategy Competitors Stadium Memberships Tickets Hospitality VIP Credit card Season Tickets Coroprate social responsibility
“ Be the best football club in the world, both on and off the pitch" Manchester United Work towards self enforced targets aimed at confronting environmental and social issues and creating awareness of these issues throughout the world. They aim to be measured not only on the quantity of trophies they have gained but the impact they have on local communities. Manchester united have several corporate social responsibility policies these are the following:
Active social engagement
Environmental policy statement
Community and environmental sustainability
Supply chain engagement
Sustainable events policy
Safeguarding adults policy
Valuing staff
Equal opportunities policy
Safeguarding children policy catering, events: corporate association, public celebration, bespoke The Brand Manchester United Have a department dedicated to protecting the MAN UTD brand who work in partnership with trading standards, Customs and Law enforcement officers. The Manchester United Brand has 4 crests and registered trade marks. Reputation management is a key in protecting customers against inferior quality goods. Consumers are given a sense of relief knowing the branded goods are official and of value. Official membership owner benefit from:

Priority home match tickets
Money off normal tickets
Discounted merchandise
Discounted museum and stadium tours
Official member pack including magazine MAN UTD provide memberships for all ages satisfying fans from any age.
0-4yrs- £22
15+ official membership £27-32 Manchester United appeal to markets worldwide with multidimensional range of products.
The main products and services offered by MAN UTD are: Manchester United formed in 1878 as Newton heath LTYR football club. In 1902 they are renamed to its current name of Manchester United. 134 Year heritage "The worlds most Recognisable global brand" (Manchester united, 2012) Sponsorships play a major role in the communication and marketing of Man UTD to its consumers and in return this is reflected in the constant growth of MAN UTD's commercial revenue. sponsorship is responsible for £27.8million of Man UTD's £43m total first 2012 fiscal quarter. (Woodward, 2012) Manchester United use the value of their global brand and community of followers to secure deals with regional, UK and international companies. In total they have 28 sponsorship, 10 of which are new sponsors for 2012. (Manchester United, 2012) Matchdays are the grounds for all MAN UTD operations, players on the team e.g. Ferdinand, Rooney and Nani will attract a number of followers however may not be the reason behind fans loyalty to the team. With a stadium capacity of 75,766 for the last 15 years premeir league games have seen 99% match attendence despite the most recent global financial crisis. Insurance Expand Global profile Worldwide Branded retail stores MUTV Diversify UK initiatives to achieve CSR goals (Careers in theory, 2012) Making a comparison of MAN UTD to its competitors Manchester city, Chelsea and arsenal each team has a strong fan base in the UK and internationally. Although they all offer credit card and insurance services Manchester United are the only team who offer these services worldwide in partnership with international companies. From the table you can see what services are offered from which football club; each club has a primary focus of developing and enhancing international distribution channels. Where MAN UTD are focused on international distribution channels their competitors Arsenal are still making crucial partnerships internationally however they still have a strong focus on the UK and building on the value of their brand by investing into community regeneration projects. Arsenal are partners with Newlon housing trust and have contributed to building new shared-ownership homes, new sports centre, play centres and district housing system helping the environment and provides cheaper heating for the community. This is an area of opportunity for MAN UTD in the UK and Worldwide as this ties in with many of their CSR policies of tackling issues environmentally and socially within local communities; this also ties in with Maslow’s hierarchy of needs ensuring everyone's basic needs are fulfilled. Starting with psychological and safety needs individuals will have the basic life essentials: food, water and shelter; by providing shared ownership housing individuals have access to these basic essentials and from there can progress into the further stages of the hierarchy model fulfilling social needs, esteem needs and self actualisation. With a firm fan base in the UK and 99% match day attendance MAN UTD’s focus is now primarily on developing and expanding their global portfolio. In addition to Manchester and London offices MAN UTD have expanded their offices to Asia, North America and Hong Kong. In support of reaching international fans and providing them with the same levels of consumer satisfaction as UK fans have, MAN UTD have improved distribution channels on a worldwide basis; opening branded retail locations in Singapore, Macau, India and Thailand. MAN UTD’s global television rights provide consistent cash flow and global visibility; MUTV is available in 54 countries around the world. In a report about football in the UK (Walmsley, 2012) states current issues in the market lie in the use of mobile communication technology; consumers found the screens on mobile smart phones to small to watch football game streams however opportunities lie in the development of tablet technology with larger screens there has been a rise in the number of households using tablets to watch football. An aim in MAN UTD’s strategy is to exploit new media and mobile opportunities to overcome the threat of mobile match streams in addition to the other mobile products offered to users, whilst tablet user can still benefit from all products offered as well as match day streams from services such as SKY GO. Manchester United members worldwide have access to financial and insurance services offered by MAN UTD and partners, they offer credit cards worldwide in: Indonesia, Thailand, Malaysia, Singapore, Hong Kong, UK and Norway; each country also have access to insurance services in partnership with global organisations: AON, Danamom, Krungsri, May Bank and MBNA. A Major aspect of MAN UTD’s communications and marketing is sponsorship. Sponsorship is responsible for £27.8 million of MAN UTD’s £43 million total revenue for the first 2012 fiscal quarter; use of the Man UTD brand value they have secured 28 sponsorship deals 10 of which were new deals 2012. Match days are the grounds for a MAN UTD operations, players on the team for example Ferdinand, Rooney and Nani will attract a number of followers, however may not be the reasoning behind their loyalty towards the team; with a stadium capacity of 75,766 for the last 15 years premier league games have seen 99% match day attendance despite the most recent global financial crisis. During the 2012 Olympics MAN UTD hosted nine Olympic football games at old Trafford in addition to home games; this aided in a 13.3% increase in match day revenue during the first 2012 fiscal quarter (Woodward, 2012a) match day revenue is funds accumulated from TV broadcasting rights, ticket sales and hospitality packages. Hospitality packages vary in experience received there are pre and post- match packages and VIP boxes where individuals receive complimentary drinks, discounted vouchers and premier match seating. All Tickets are priced at the premier end of the market ranging from £30- £52 for adult tickets, yet still they maintain high attendance figures for home games. Consumer who are official members receive discounted season ticket. In addition to discounted tickets member are offered: priority tickets, merchandise, museum and stadium tours and official membership packages; each package is tailored for various age groups from 0+, memberships offer colouring books, phone wallpapers, video clips and ringtones. Revenue from new media and mobile increased 11.5% over the first 2012 fiscal quarter. (Woodward, 2012b) Manchester United appeal to markets worldwide with a multi-dimensional range of products and services, Head of Marketing for Man UTD Jonathan Rigby states they have an official fan base of 333 million fans around the world. With the website now published in seven languages each fan now has access to one or more of MAN UTD products. In addition to the football team the brand Manchester United is essential in business operations with dedicated departments geared around protecting the MAN UTD brand working in partnership with trading standards, customs and law enforcement officers to protect its 4 crests and registered trademarks. Reputation management of the football team is important however protection of the consumers against counterfeit goods is essential in implementing CSR policies and maintaining an ethical organisation. The department managed by NIKE; the retail, merchandising, apparel and product licensing department market and sell MAN UTD’s competitive sports apparel, training, leisure wear and other branded clothing distributed through branded retail centres, e-commerce platforms and wholesale distribution channels. Over the past year MAN UTD had sold over 5 million branded products in over 130 countries, this backs their statement of being the world’s most recognisable global brand. (MAN UTD, 2012a) Manchester United formed in 1878 as Newton Heath LTYR FC, in 1902 they were renamed to its current name of Manchester United giving them 134 years of heritage making it “the world’s most recognisable global brand” (MAN UTD, 2012d) “attracting over 659 million followers.”(Rigby, 2011) Manchester United aim to “be the best football club in the world, both on and off the pitch, “ (MAN UTD,2012b) they work towards self-enforced aims towards addressing environmental and social issues across the world. Building on the value of the brand Man UTD has several corporate social responsibility policies in place acting as guarantees not only to consumers but current and future employees, clients and partners. Each of these policies portrays the brand as an ethical organisation that not only focuses on football but on its consumers’ needs. The following are the 9 CSR polices:
In support of implementing these policies MAN UTD have several initiatives in place such as; MAN UTD soccer schools offers worldwide football training sessions weekly in south Africa, Canada, south east Asia, India, Australia, Abu Dhabi, Portugal, Switzerland and the UK. Also the MAN UTD Foundation which aims to deal with issues within local communities offering support in the following areas: community cohesion, health, education and charities. They work with disadvantaged areas across the UK using football as a vehicle to provide opportunities for school children and those who have physical or mental disabilities; once again building on the brands value as an ethical organisation to its consumers throughout the UK. This report is to identify the marketing strategies and concepts used by Manchester United to attract and retain consumers through market segmentation, targeting and positioning.
“Marketing consists of individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through creation, distribution, promotion and pricing of goods, services and ideas.” (Dibb et al, 2006)
This tells us marketing analysis requires research into competitors, consumers, marketing environment and assets. Research of the market will include primary research, economic research, fashion or trends currently in the market and environmental analysis: a PESTLE analyse using trade journal, newspapers or TV and Radio. Resources such as MINTEL would be used in future trend analysis. Dibb et al. provides us with a model to underpin the process of marketing strategy implemented by marketing mix; product, place, price and promotion. At the heart of the model is the consumer where all aims are targeted to create consumer satisfaction; built around the consumer is the marketing mix’s four major variables: product, place, price and promotion, these control the basic priorities of marketing :
Each of these is accomplished through the layer constructed around the marketing mix. Market opportunity analysis is where a SWOT analysis is fundamental at this point this is where a marketing strategy is put in place and the target market is selected; from there the marketing mix can be implemented. The marketing strategy includes market segment identification, target market priorities, brand positioning and marketing objectives. The outer layer of the model displays the marketing environment: legal forces, regulatory forces, societal/ green forces, economic and competitive forces, technological forces and political forces; these will influence the marketing manager decisions regarding the marketing mix variables. Arnold, R. and Joseph, S. (2012) Manchester united names Chevrolet as shirt sponsor. Marketing week. [online]. 30 July. [Accessed 30 September 2012]. Available at: http://www.marketingweek.co.uk/news/man-utd-names-chevrolet-as-shirt-sponsor/4003019.article
Arsenal (2012) concert hospitality packages available. [online]. [accessed 8 december 2012]. Available at: http://www.arsenal.com/the-club/concert-hospitality-packages-available
Careers in theory (2012)Classics: Maslow’s hierarchy of needs. [online].[ accessed 8 december 2012]. Available at: http://careersintheory.wordpress.com/2010/01/20/classics-maslows-hierarchy-of-needs/
Dibb, S., Simkin, L., Pride, W.M., Ferrell, O.C. (2006) Marketing: concepts and strategies. 5th ed. Boston: Houghton Mifflin
Marketing week (2012) Manchester United FC. [ Online]. [accessed 26 november 2012] available at: http://www.marketingweek.co.uk/brands/manchester-united-fc/
Manchester United (2012a) Brand protection. [ online]. [accessed 26 november 2012]. Available at:
Manchester united(2012b) corporate social responsibility. [ Online]. [accessed 26 november 2012.] available at: http://www.manutd.com/en/Club/Corporate-Social-Responsibility.aspx
Manchester United (2012c) News and features. [ online]. [accessed 1 december 2012]. Available at: http://www.manutd.com/en/News-And-Features/Club-News.aspx
Manchester United (2012) Official sponsors. [online]. [accessed 29 november 2012]. Available at: http://www.manutd.com/en/Club/Sponsors.aspx
Newlon housing trust (2012) Newlon at Arsenal: arsenal on the move. [online]. [accessed 3 december 2012] available at: http://www.newlon.org.uk/about-us/newlon-at-arsenal/
Walmsley, D. (2012) Football uk: issues in the market. [ online].[ accessed 29 november 2012]. Available at: http://academic.mintel.com/display/590417/?highlight=true
Woodward, E. (2012) Investor relations: about manchester united. [ online]. [accessed 29 november 2012] available at: http://ir.manutd.com/phoenix.zhtml?c=133303&p=irol-irhome
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