Foundation of Marketing – Barclays Premier Essay

Barclays Premier League – Matches| Marketing Plan Executive Summary The total size of European football market is up to €15. 7 billion in 2008/2009. It is proven that football industry stay strong under the pessimistic economic environment. In Europe, England’s Barclays Premier League, Spain’s La Liga, Germany’s Bundesliga, Italy’s Serie A and France’s Ligue 1 are recognized as “The 5” by organizations and supporters worldwide. This paper explains the market analysis and current situation of games of who tops in the “The 5” – English Premier League, the world most successful football league.

It also demonstrates how EPL manages the marketing part, by applying three marketing theories, which is consumer behavior, market segmentation and SWOT analysis. In the End, the last section is consist of the conclusion and recommendation. Market Analysis The market size of the football matches includes all the audiences from local and worldwide, who would willing to pay to watch Top-Division-Leagues. The market is mainly separated to two parts, numbers of attendance watching matches in stadiums and audience watching the broadcasting from the whole world.

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The rule of judging the market size of attendance is based on the total attendance of a year. The total attendance of EPL in 2009/2010 season is 13. 4 million, which is higher than the total attendance of Germany’s Bundesliga (13. 1 million) and Spain’s La Liga (11. 1 million). The market size of broadcasting is judged by the UK broadcast income and international broadcast income, Premier League receives €1. 27 billion from contracts of 2009/2010, which is top of the European league (closest rival is Italy’s Serie A €915 million).

From the statistics of ESPN, it is shown that the growth rate of average attendance per match is negative in recent years. In 2011/2012, the number of average attendance is 34,520 on 6th of November, which is lower than the last season’s figure, 35,283, moreover, it is recorded that the figures are 35,650 and 36,760 for season 2009/2010 and 2008/2009. After the financial turmoils in 2008 and 2011 and the raise of the ticket prices, less and less fans going through the turnstiles to watch the live games.

In contrast, comparing to the broadcasting income of 2008/2009’s €1. 134 billion and 2009/2010’s €1. 27 billion, ref. iii), the new 3-years-contract (2010-13) worths €3. 733 billion (? 3. 2 billion) reveals that there is a rising trend of the televised matches. Ofcom ;amp; Human Capital (2005) conducted a research about Premier League football in United Kingdom. The chart demonstrates that is approximately 4 out of 10 male and 13% female having interest in the league and people between 25-34 years old forming the largest fan-group.

EPL Official Fansurvey 2010-2011 also complies statistics about its appeal, the league broadcasts over 200 countries reaching approximately 650 million families, the number of cumulative audience is approaching 4 billion. EPL segments the markets by two main characteristics which are demographic, socio-economic (profile), the latter Market Segmentation will illustrate the further detail. League distributes its football matches by holding matches in club’s stadium and televising with local TV station (Sky Sports, BBC, EPSN) and communication satellite to the world.

Holding the game in stadium provides a better atmosphere and experience to the attendance, meanwhile, broadcasting helps maintaining the popularity and expanding the market in UK and to global. The decision-makers are always the supporters themselves, sometimes the parents that who have the power or financial authority for a household. Current Situation Analysis English Premier League is currently known as Barclays Premier League in official since Barclays Bank becomes the official sponsor, commonly referred to EPL in the meantime.

The league was established in 1992 in virtue of an utmost restructuring was needed, as the English clubs wanted to develop and thrive. The Premier League is a corporation owned by 20 shareowners – the member clubs. Championships and qualifications are contested by 20 clubs, meanwhile, promotion and demotion system is operated with the English Football league system. In total, 380 matches will be held by 20 clubs playing 38 matches from August to May. Nowadays, EPL becomes one of the most popular and lucrative sports organization which the weekly audience reaching 103 million, turnover and gross profit amount to ? . 20 billion and ? 106 million (ref. 2 P63). Application – Consumer Behavior The want is the most important reason of consumption on EPL matches, it is also the sources of need recognition of the customers. The wants could be defined as people’s desire to seek entertainment in leisure and family-time, sports-lovers’ wants to support their own team, and in some cases, consumers’ zealotry for big games. Potential customers would do information search before making decision. At this time, public sources like newspaper (e. g. match reports) and television (e. g. ighlights and goals of a week) give them information of the match feature. Personal sources like comments, discussions or even debates between friends are providing information as well, meanwhile, friend becomes the influencer, who would persuade and push the consumption. It is a norm that people would support the football league of their own country. Chart (Ofcom ;amp; Human Capital, 2005) also illustrates that half of the respondents support EPL as they concern their own teams, the reason is mostly accord with their locations or hometown (For example, Londoner would back Arsenal, Chelsea, etc. , it is the geographic factor that influent the buying. And fans tend to watch big games which “Big 4” (Arsenal, Chelsea, Liverpool, and Manchester United) engaging in, it is referred to attitudes toward the consumption. For global layer, the fan choice of EPL is mainly affected by colonial reason, cultural influence. Colonial reason is referred to late 16th and early 18th centuries, at that time, colonies, dominions and mandates are elements comprised British Empire that ruled or administered by the United Kingdom. The British cultures were heavily infused into the aborigines’ mind.

The colored parts of the reference picture indicate regions which are or once were under the United Kingdom. People there are relatively willing to accept the western (English) cultures like languages, entertainment (sports, movies, music, etc. ). It provides a foundation for the EPL’s marketing plan of introduction and expansion. The matches are high-involvement as the personal importance to the customers, eventually extensive information search, alternative consideration and evaluation are brought into decision-making process.

Application – Market Segmentation EPL Fansurvey devised a mosaic segmentation, grouping the fans into ‘’Suburban Comfort’’, ‘’Urban Intelligence’’, ‘’Happy Families’’ and ‘’Ties of Community’’, etc. For pricing, clubs under EPL offer the tickets as well as reduced ticket price for under 16’s and over 65’s. For the so called “die-hard-fans” of a club, season ticket is offered to them, which guaranteed seat for the all the club’s home game a season, at the same time a discount will be given comparing to buy the tickets separately.

They also offer tickets for different category matches and seats in order to distribute the tickets more efficient and capture the most profit as they can. Therefore, customers are segmented into groups on the basis of demographic (ages) and socio-economic grounds (income level). Guardian’s article points out that the largest segment is of age group 25-34, while the opposite is age group 65+, there is a decrease of size in age group of 16-24 and 65+, as less and less youth and elderly attending the match days.

Segment of Adult buying ticket separately provides the highest profitability, but they usually have the higher price sensitivity as they consider their consumption each match. And lower profitability for the segment buying ticket offering age-discount or whole season package, yet selling the season tickets to consumers guarantees sales for a period, generally their price sensitivity is lower as they are mostly loyal fans of the clubs. In derivation of above analysis, EPL offering the consumer with differentiated strategy that using different marketing mix method to its own segment.

The new entrants are hardly emerge into the market in virtue of football leagues are almost operating in every countries already, and it is not an easy thing to rise a league to compete with EPL and “Top 5”, as the high set up cost and improvement cost which is involved in a total restructuring, an successful run in international championship to raise fame (e. g. UEFA, an highest glory competition in Europe) also take a very long period. Application – SWOT analysis The strength of premier league can be described as the large market size it wns now, which is reaching 4 billion and showing a sustainable rise every year, the diversification of audience cluster is also an advantage. World- class football stars like Robin Van Persie, Fernando Torres, Wayne Rooney, and Steven Gerrard are breeding and transferring to the league is providing good product features. The weaknesses are the time of holding matches and the “monopolization power” of the “Big 4”. Clubs usually play matches at afternoon in UK, which is at midnight in the largest growing market – Asia, the league has lost the chance to gaining more audience.

Meanwhile, the “Big 4” is monopolizing the competition of the league title, this corner weakens the heterogeneity of the league. For the opportunities, Asia market should be the new targeted market of EPL. From the Fansurvery, it is shown that premier league has a colossal influence there, more and more people are interested in the Barclays (Hong Kong 54%, Indonesia 51%, Singapore 435). The potential market can be explored by boosting the broadcasting audience, if the match can be held earlier.

For the threats, by being the market leader in the world, EPL might be less aggressive to further swell its sway, eventually turnover and profit would drop. The market might be saturated, a huge advertisement program maybe rewards slight outcomes. Conclusion English Premier League has established well marketing and managerial systems granting it attractive returns and a gigantic fanbase, but there is still room for improvement. Besides adjusting the match time, plan of adding an extra round of games which would be staged oversea can be brought into consideration again.

As the global appeal of premier league, staging out the games is a positive idea in terms of money and marketing, for the meantime, EPL could be the true “World Football League”. League could also suggest the clubs to reduce the prices or offer more packages (half-season or family package) to persuade the youth and elderly back. Recommendation In strategies thrust, market penetration is on the card as to the take existing product (football matches) in the existing market (global appeal) and aim to hardened penetration.

The league is facing two strategic objective, harvest in local and build in global. In local market, the revenue almost reach the maximization as the utilization of capacity in stadium for most clubs is up to 90% more (Jason Moore, 2005) and behavior of televised matches-audience remain unchanged in these years, profit is nearly maximized and some match days the customers number falls. Take a look of globe, Asia market is the point to focus as to capture the potential benefit, while Africa and Americas is still under the developments to explore (EPL fansurvey 2011).

In the future, EPL could focus on how to maintain the customers (price cut) and new customers begin to buy (hold matches earlier), and even urge them to purchase more and larger in quantity (offer and push the half, full season package and family package), an increase in brand loyal could also reach penetration. In brand and corporate identity management, boost of customers’ brand loyalty can be managed by well-brand building. Being first, is a key factor in the process of building, the league going global is an action within this factor.

Quality is also a way to build a great brand, in this case, quality could be regard as the content of match, EPL and clubs could improve the quality and greatness by many ways. In a swift and most effective way, make deals to transfer households name and players with a worldwide following might be the best choice. Abbreviation used EPL – English Premier League Reference to Barclays Premier League BBC Big World Magazine Deloitte EPSN The Guardian Ofcom & Human Capital TVSPORTSMARKETS Charts: Ofcom & Human Capital

World Map: Big World Magazine ——————————————– [ 1 ]. Deloitte (2010), Annual Review of Football Finance 2010 [ 2 ]. Barclays EPL, Premier League 2010/2011 Season Review P. 59 http://cde. cerosmedia. com/1J4e26cfd9df8c1624. cde retrieved 2011-11-16 [ 3 ]. tvsportsmarkets,“Premier League broadcasting revenues dwarfs rival leagues” http://www. tvsportsmarkets. com/news/2011/jun/premier-league-broadcasting-revenues-dwarfs-rival-leagues retrieved 2011-11-16 [ 4 ].

ESPN, Barclays Premier League Stats: Team Attendance 2011-2012 http://soccernet. espn. go. com/stats/attendance/_/league/eng. 1/barclays-premier-league? cc=4716 retrieved 2011-11-16 [ 5 ]. the guardian, ‘’The Premier League has priced out fans, young and old” http://www. guardian. co. uk/sport/david-conn-inside-sport-blog/2011/aug/16/premier-league-football-ticket-prices retrieved 2011-11-16 [ 6 ]. the guardian, ‘’Premier League broadcasting revenue: how is it distributed? ’’ http://www. guardian. co. k/news/datablog/2011/oct/12/football-broadcasting-deal-liverpool retrieved 2011-11-16 [ 7 ]. Ofcom & Human Capital (2005), Premier League Football [ 8 ]. credited to Big World Magazine, picture title – The British Empire [ 9 ]. http://www. premierleague. com/page/Headlines/0,,12306~2478980,00. html Barclays Premier League, “The most watched league in the world” retrieve 2011-11-18 [ 10 ]. http://news. bbc. co. uk/sport2/hi/football/eng_prem/7232390. stm BBC, “Top clubs consider overseas games” retrieved 2011-11-18