Sunday, May 31, 2015

How Manchester United Is Killing Two Birds With A Stone?

Wait up! Don't call the International Animal Rights Organization just yet. The above headline is a famous idiom and solely meant to illustrate the fact that Manchester United, one of the 'blue-chip' football clubs of the world, is solving two problems with a single action. Now, breathe easy. In fact just relax, open a bottle of beer and continue reading.

The Blues (read Chelsea and a big 'Hurrah') might have won the battle against their arch rivals on the pitch, but when it comes to brand marketing, there's no stopping the Red Devils. Just take a minute, sip on your beer, and crunch the below numbers in your mind.
659 million supporters - So you're quite likely to find a fan wherever you go.
Brand value - $3.6 billion. And there's no tangible product.
Approx. 400 million GBP -  Premier league's most expensive squad.

Aren't these stats fascinating? But here's where it gets better. For the past consecutive 2 years, United has failed to win the Premier League. It has been 7 years since they won the UEFA Champions League, the battleground of Europe's best football teams. Yet, their fan base has increased at an infectious rate from 333 million to 659 million in less than 3 years. Doesn't that become a dream scenario for a heavy-weight organization, where you are not at your best, but still continue to win more hearts? And if you do not follow football, remember this, United supporters are fiercely loyal and there's no doubt with whom their allegiance lie.

Now we all recognize the superstars who wear the United colours and make us twist, turn, yelp and fall in love with their football artistry. But, little do we know about the men in black who are charged with the job of making United the most powerful sporting brand in the world. The job is one of the toughest you will find, yet, this remarkable men are very close in achieving their goal.

So what's their marketing mantra? It's simple. Increase fan base and earn revenue. And what's the lethal strategy? Co-marketing. Briefly defined, Co-marketing is the art of flexing your brand muscle with other companies (like-minded) to accomplish much more than you might on your own. The concept has been around for a long time. But very few companies do it the United way. Below are a couple of stories, which epitomizes the acumen that has made Manchester United among the most valuable brand in sports. Now is the time to take another sip of your beer (believe me, the story is just getting better).

United sent branded iPads loaded with company specific presentations to DHL. The idea was to persuade the company to sponsor jerseys United players wear. Big deal, right? Think again. These jerseys were not meant for 'matchday' but which the team would wear during training. Deal-breaker? No. DHL signed a 40 million GBP deal. Now, you must be thinking what made DHL sign this. Well, United had a secret sauce up their sleeve. The club reportedly invests time and money on learning about potential partners, understanding club's brand value & reach, and how it can all translate into a winning proposal. Remember the great Don Corleone's famous dialogue, "I'm gonna make him an offer he can't refuse"? Offers like that, can only stem from deeper knowledge. United has been known to house such information/knowledge about their partners. Digest this. United executives accidentally discovered that one of their partners had a weakness for Diet Coke. Since that moment, every meeting that United had with that partner, Diet Coke was the first thing that got served. With DHL, it was no different. The sensitive presentation which was sent to DHL had a brilliant market insight which will have a great brand impact for the company. The media coverage and fan following that United gets when they're training is more as compared to two small teams' coverage when they are on the pitch. So more people are interested in seeing Manchester United down on the training ground than they are in seeing most other teams live. What's important here is to realize three things. First, United travels in and around Europe during Champions League, which effectively means DHL brand will be noticed across Europe without much marketing effort. Second, on 'matchday', while warming-up before kick-off, the team will be wearing the training kit. Third, not many people get to watch United on the pitch, tickets availability, cost, etc. Watching the team during training is free. How could DHL possibly refuse the offer? And they didn't.



If you're impressed with the marketing prowess of United, consider this story. On a cold December morning, an unexpected package arrived at the HQ of Concha Y Toro, the 127 year old wine maker in Santiago, Chile. Inside was an ornate box lined with black silk and holding a leather football. The Concha Y Toro insignia was embossed on the ball, next to that of the sender's: Manchester United. Accompanying the gift was a book explaining the financial benefits of partnership between the football club and the winemaker. Within 36 hours, United executives were on the phone with their counterparts with Concha Y Toro, working on the outlines of the deal. An official ceremony was held four months later at Old Trafford, United's stadium, where the club introduced the Chilean company as its first global wine partner. Under the arrangement, luxury boxes and lounges in Old Trafford are served only Concha Y Toro's finest wines and the company's ads appear on the broadcasts of United's home games. What United got in return was a loyal fan base in Chile. Deal score: 1-1.

Lastly, I want to leave you with the below image which represents all the successful and strategic partnerships that United has successfully negotiated. Click on it to enlarge. It might just be a good thing to contemplate as you finish your beer.



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