Running head: MARKETING APPROACH 1

Marketing approach

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Marketing approach

Market Attractiveness and competitive position for Manchester United Football Club.

The soccer market appeals with best television contracts and this sport continue to grow

in various countries like China. Deloitte publishes a league of money annually that assess the

success of the different clubs based on a variety of indicators that comprise of revenue, field

success, and turnover. The report by Deloitte highlights that the highly ranked clubs such as

Manchester United have the leading fan bases because of their substantial revenue both

domestically and internationally (Deloitte, 2013). Manchester United possibly will gain from

approximately 5 billion pounds, which the international and domestic markets produce over the

period of three years (Barney, & Hesterly, 2010). Besides, Sponsorship rights increase as shown

in the deal between General Motors and the club that was valued at €54 million every season and

grown in the subsequent seasons. The deal outdid the contract between Barcelona and Qatar

Sports Investments that was valued at €30 million seasonally (Deloitte, 2013). Additional

evidence demonstrates a continuous improvement in the commercial operations of Manchester

United with returns of up to £117.6 million, making it their total’s biggest component in relation

to the previous year where it was at the bottom (Barney, & Hesterly, 2010). The rise was due to

their international collaboration with DHL to provide them with sponsorship on their training

kits. However, considering the worth of the deal between General Motors and the club, an initial

buyout of the club’s training kit contract has been under discussion by DHL seeking better

significance out of this.

On the other hand, on-field success being the principal means of attracting top sponsors is

important. Hence, the failure of Manchester United to make it to the Champions League in the
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2011/2012 lead to the fall of the broadcast revenue by around 11% up to about£104 million

(Barney, & Hesterly, 2010). Additionally, they received less distribution money compared to the

season before the season where they made it to the final against Barcelona in the Champions

League (Deloitte, 2013).Similarly, match day returns also reduced since the club played fewer

home-based games.

Ever since the beginning of this great English League to date, four clubs have

continuously dominated this league, that is, Manchester United, Chelsea, Liverpool, and Arsenal

(Bodet & Chanavat, 2010). Even though Liverpool has struggled to win the title once more, it

remains part of the top four. There are other clubs such as the one-time winners, Leeds United

and Blackburn Rovers who threatened though could not keep up with the challenge (Bodet &

Chanavat, 2010). Maintaining a top position in this soccer market depends on the business

success on the field and off the field.

The match day revenue of Manchester United ranks the best whereas its broadcasting

returns are very successful in appealing to commercial revenue. As a global strategy, Manchester

United has opened official shops of the club in various foreign countries that sell both soccer and

non-soccer linked products. Additionally, the club has agreed to primary deals with international

brands, which will benefit both the brand and the organization. Manchester United together with

the premier league also organizes and participates in Asian Tours as well as promote their name

through good publicity by their established soccer schools in this region (Bodet & Chanavat,

2010).. Lastly, the club makes good use of the transfer market by signing influential players as a

marketing approach to involve the Far Eastern customers as well as for their capacity (Bodet &

Chanavat, 2010)..
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Exit strategy and guidelines for its implementation

The purpose of an exit strategy is to have an efficient planning that involves moving from

a single life phase and career and to the other (Kotler et al., 2005). For instance, if an individual

is leaving his/her present scenario to the next in a smooth transitional manner, made possible by

the existence of a robust approach. The solid strategy addresses financial, personal, emotional

and professional needs of individuals (Kotler et al., 2005). In this case, passing the business’

proprietorship to a friendly consumer to preserve the owner’s legacy is the better option among

the exit strategies (Kotler et al., 2005). The true believers and interested parties include users,

staffs or family members. In this plan, the buyers can come from within the organization

allowing the owner to sell the business to the current managers or employees. The approach

mutually benefits both the seller and the purchaser as the vendor finances the transaction and

allow the consumer to pay the fee over time. The exit strategy needs less diligence, the

management who purchases the business are committed to making it work and therefore, the

legacy of the owner gets preserved. However, the owner might end up leaving behind plenty of

cash on the table, as he/she is so devoted to the procurement.

The guideline for the implementation of this exit strategy include the owners performing

a performance review on themselves to understand the crucial skills they require to be successful

in their ventures (Kotler et al., 2005). Secondly, the owners need to develop their 12-month

business initiation plan and incorporate this into their plans of business, of what they want their

companies to appear like strategically, financially and growth-wise. The third guideline to

implement this exit strategy involves getting to know a business based on a first name (Kotler et
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al., 2005). Another guideline entails combining the resources into a sustainable dream team

including friends, mentor, therapist or coach as well as supports who motivate the owner to stay

focused and succeed. The final guideline involves setting the short and long-term goals for both

financial and brand building growth. The owners must apply SMART goal setting instrument to

guide them through the implementation process (Kotler et al., 2005).

Tactical marketing mix strategy

Developing a tactical marketing mix strategy will take in a combination of four

components, which include price, place, promotion, and product (Borden, 1964). The strategy is

the basis of an advertising and marketing plan, as the marketing plan comprises a set of

appropriate actions needed to implement a marketing approach successful. For instance, the use

of a product that cost less cash to attract customers. Once an organization, through the low-cost

item for consumption, has established an association with buyers, the corporation will sell other,

greater-margin products as well as services that improve the interaction of the consumer with this

low-cost service or product. Marketing practice appears as an innovative industry that comprises

distribution, selling and advertising. The tactics are developed based on the provided strategies

or techniques to be used.

In this case, the pricing tactics are important as they generate revenue and include

psychological pricing, meeting the price of the potential competitor, setting prices based on

geographical regions and setting payment terms that are attractive (Borden, 1964). The other

tactics are the product, which involves supporting elements like guarantees, warranties alongside

support since an individual’s product are the product or service he/she can design and develop

(Borden, 1964). Placement tactic is characterized by the place and the means an individual
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distributes his/her product within the marketing plan. The tactics include taking custom

instructions and online sales (Borden, 1964). The last tactics are the Promotional tactic applied in

public relations, advertising, as well as sales tactics to talk about the available products and

services, and then get individuals to purchase them. Instances of the promotion tactics consist of

online, print, radio and, television ad (Borden, 1964).

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References

Barney, J. B., & Hesterly, W. S. (2010). VRIO Framework. In Strategic Management and

Competitive Advantage (pp. 68–86). New Jersey: Pearson

Bodet, G., Chanavat, N., 2010. Football's big four and building brand equity in Asia. [Online]

Available at :<

http://www.emeraldinsight.com/learning/management_thinking/articles/brand_equity.ht

m> [Accessed 30 December 2013

Borden, N. H. (1964). The concept of the marketing mix. Journal of advertising research, 4(2),

2-7.

Deloitte, (2013). Captains of industry. Football Money League. 1 (1), P. 1-35

Kotler, P., Armstrong, G., Cunningham, P.H. (2005). Principles of Marketing. Toronto: Pearson

Education Canada. pp. 67-70