Founded in 1920 by group of Spanish fans and officially named it Madrid Foot Ball club. King AlfonoXIII granted the title “Real” which means Royal in Spanish. Real Madrid has its home stadium is Santiago Bernabeu. It has a capacity of 75000 and ranked 1 in Europe. Real Madrid have won 90 major trophies. In 2019 club was estimated to be worth $4.2 billion. With its success as a club Real Madrid is planning to expand its brand in Canada.
Product for Real Madrid is its stadium, players, managers, merchandise, and soccer camps. The home stadium of Real Madrid has a capacity of 8000 fans. Real Madrid is known for buying the most expensive players in the world. As these famous players promote their brand. This way Real Madrid capitalizes on the players. They also have stores which sell signed special jerseys and regular jersey, kits, shoes, etc. They also sell all of the merchandise through their eCommerce platform.
Real Madrid follows a premium pricing model. Real Madrid is the most famous club in the world it also has the highest price for its tickets. Tickets in Real Madrid's home ground range from $42 to $2090. This is the highest in the world and no other club charges more than this for their games. Real also charges high membership fees compared to other clubs. Real Madrid's merchandise like jerseys, kits, balls, etc, costs between $20 to $200. With Real Madrid's premium pricing strategy its turnover is more than $650 million.
Canada consists of ten provinces and three territories with a gross domestic product of $1.736 trillion USD. Canada's culture is marked by interdependence as Canadians value a straightforward exchange of information. It can be seen as a moderately masculine country that can be viewed as an individualistic culture as well.
Soccer is gaining popularity in Canada as youth are participating in soccer yet Hockey remains the most popular sport. The recent success of Canada’s MLS teams has made soccer more popular and has given professional soccer teams more momentum. Top clubs in Europe have created training academies in the most populated cities of Canada to attract more soccer fans and encourage young talent. Currently, Real Madrid does not have a soccer academy in Canada but is actively running youth summer camps. Real Madrid has an opportunity to start an academy in Canada to encourage soccer in Canada and also to acquire talented players for the team. Real Madrid has played exhibition matches in Canada in the past but should consider doing so within the same timeline as the summer youth camp.
Real Madrid Business Model. (2017, Mar 22).
Real Madrid Marketing Mix (4Ps) Strategy. (April 19, 2020) MBA Skool Team