Global Strategic Sports Marketing Management: Juventus' US Plan

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This report details Juventus Football Club's strategic marketing plan to expand its brand presence and fan base within the United States. The plan begins with an executive summary outlining Juventus's history, objectives (becoming a top-five followed club, increasing awareness among American women, and increasing interest among men aged 18-45), and the three-step marketing approach. A situational analysis explores the sports marketing landscape, emphasizing customer satisfaction and the growth of the US sports industry, supported by Porter's Diamond Model. Market objectives are defined, focusing on increasing sales and brand awareness. The marketing strategies and programs involve a mission statement, PESTLE analysis (political, economic, social, technological, legal, and environmental factors), and Porter's Competitor Analysis to understand the external environment. The report considers economic impacts, technological advancements, social trends, and legal frameworks. The plan aims to leverage social media and address cultural nuances. Ultimately, this report provides a comprehensive overview of Juventus's approach to entering and succeeding in the US market.
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Global Strategic Sports Marketing Management 1
Juventus’ Marketing Plan to expand the brand in the US Market
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Global Strategic Sports Marketing Management 2
Juventus’ Marketing Plan to expand the brand in the US Market
Executive Summary
Juventus is an Italian football club that has existed for about a hundred and
twenty years. It was started in 1897 by a group of high school students and has been
owned by the Agnelli family for over 93 years (Sustainability Report, 2017/2018). The
club has had the honor to participate and win many national and even international
competitions.
The club intends to venture into the US market. To measure its achievements,
four objectives have been set: be among the top five most followed clubs in America
within a year, increase the awareness of its activities among American women, increase
its interest among American men aged between 18 and 45 years and to create more
awareness of it’s brands in America. Its marketing plan has been divided into three
steps: having a clear vision/mission/philosophy, assessing the external environment and
lastly, assessing the internal environment. The internal environment will be analyzed by
understanding the SWOT analysis. The external environment will be analyzed using
Porter’s competitor analysis model and six aspects: political, social, legal, technological,
economic, and environmental, will be discussed. The budget of the plan will be outlined
and discussed in details. Lastly, the measures through which the plan will be evaluated
will be outlined.
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Global Strategic Sports Marketing Management 3
Situational Analysis
According to Kosik (2011, 93), the main idea behind marketing is to satisfy the
needs of the customers. In this case, marketing is customer-oriented. Perhaps it is
because of the desire that everyone in the business sector has to fulfill the desires of
their customers or perhaps it is the desire to attract more customers. All in all, the
author believes that marketing has become the objective that is most focused on by all
firms these days.
Kosik (2011, 93), believes that sports marketing first started towards the end of
the 19th century and the idea slowly progressed in the US finally receiving enormous
awareness during the 1950s. From America, the idea spread to other developed
countries around the world. Kosik believes that among the events that saw the idea of
sports marketing progress were like the creation of advertisements on Jerseys, which
started in 1973. To this day, many sports firms use marketing strategies to increase
their awareness in the country and all over the world.
Juventus is likely to succeed in its endeavor to venture into the American market.
By applying Porter’s Diamond Model, there are several factors that will enhance its
success. The model holds that certain factors (four) are crucial for a firm to succeed in
various nations: related and supporting industries, firm strategy, structure and rivalry,
demand conditions, and factor conditions (Neven and Droge, n). There are lots of firms
from related and supporting industry that will offer help or that can work in conjunction
with Juventus. An example is the clothing industry which can offer services to design
apprels for the club. Also, the demand of services is quit high in America. According to a
report released by Plunket Research (2017), the sports industry is one of the biggest
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Global Strategic Sports Marketing Management 4
industries in the US, in terms of the investments (Table 1). The sports industry started
developing in the 19th century and has since been progressing. Humphreys and
Humphreys (2005, 8) believe that approximately over 484 million people participate in
sports in 2005. The number has been increasing ever since hence the need to make
more investments.
Juventus is an Italian football club that has existed for about a hundred and
twenty years. It was started in 1897 by a group of high school students and has been
owned by the Agnelli family for over 93 years (Sustainability Report, 2017/2018). The
club has participated and won various cups among them the Intertoto cup, UEFA cup,
European cup, Italian cup, and the Intercontinental cup to name a few. It has
commanded international respect day after the other for a long time now. Recently, the
club hired Cristiano Ronaldo. According to an article written by Kidd (13th Jan 2019), this
act increased the clubs international outreach since Ronaldo is one of the greatest
football stars in the world.
The current situation of the club will help a great deal in its effort to capture the
US market. First and foremost, Juventus is one of the few clubs that has a sustainability
approach towards business (Sustainability Report, 2017/2018). Juventus engages in
activities such as fighting against racism and discrimination, ensuring athlets physical
health, youth education and nurturing behavior. Juventus, as a football club, is modeled
in a way that its players believe in striving for the best. This is well articulated in its
motto ‘until the end.’ This shows their desire to struggle for the best which is in tandem
with the American spirit. This motto has helped the club achieve some of the best
results the world has ever witnessed. Considering that the US is not largely invested in
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Global Strategic Sports Marketing Management 5
the world’s soccer, Juventus Football Club has a great opportunity to venture into this
market.
Market Objectives
To become one of the top five most followed clubs in the sports industry in the
US
It will not be very easy to establish Juventus Football Club in the industry
because Americans have their own football industry. The US football is already strongly
established on the market. It will be difficult to get attention amidst all the noise from the
crowd. However, being one of the most achieving football clubs, Juventus should be
able to gain attraction from fans.
Increase the sales of the club among American males aged between 18 and 45
years
Americans also angage in other sports activities most of which are health and
fitness-related. In 2005, there were about 27 million Americans that participated in the
game yet there are about 297 million Americans (Humphreys and Humphreys, 2005 8).
This shows that there is an opportunity for the club to increase its sales among the
Americans. Football is a game that is mostly loved by males around the world as
compared to women. An increase in male American fans will boost the sales of
Juventus.
To improve the awareness of the club among American women
Football is loved around the world. However, men have shown more interest as
compared to women. The idea of using social media platforms, as the club has
resorted, seems to bear more fruits as most women can be reached through social
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Global Strategic Sports Marketing Management 6
media platforms. They will be able to participate in the activities of the club by either
watching or listening through the internet.
Ensuring that the Juventus brand is well recognized in America
Just as penetrating the American market may seem hard, maintaining a spot on
the market may be equally hard. As mentioned, Americans play a different type of
football which has absorbed the entire market. Without proper strategies, it may be
difficult to maintain any other type of sports activities on the market.
Marketing Strategies and Programs
The first step towards ensuring that it becomes one of the top five most followed
clubs in the American market, Juventus should have a mission for its marketing. In this
case, the club’s motto “Until the end” will be the most appropriate. Besides being clear,
this mission statement does not only speak about the moral, ethical, and principals of
the players of the team but also positions the club at the right angle with the American
market (Da Silva and Las Casas, 19).
The second step that the club will have to follow is analyzing the external
environment of the club. To be able to clearly and completely deal with the external
environment, Rastogi and Trivedi (2016), suggests the use of the PESTLE model. The
word PESTLE is an acronym for the words political, economic, social, technological,
legal, and environmental.
Starting with the economic aspect, it is important to note that sport is always
sensitive to changes due to the consistent changes that occur in the economic sector.
When the economy is good, people are willing to pay more for sporting activities and
when the economy is low, the prices for sporting activities have to lower. This can be
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Global Strategic Sports Marketing Management 7
attributed to the fact that even with a low economy people forego sporting activities to
focus on other activities. They still have to take care of their families despite hard times
that may be brought about by the economic difficulties (Miloch et al, 2012).
While considering the physical aspect, sport is also affected by it. For instance,
during rainy seasons, people may be barred from attending sports activities when the
downpour is too heavy. Sporting activities depend on the climate and weather to take
place (Miloch et al, 2012). To be able to avoid instances when sporting activities are cut
short by the weather, clubs have invested in stadiums and fields that can control
environmental effects.
Technology has become one of the most celebrated changes in all spheres of
life. This is also true for the sporting sector. These days, sporting activities are
advertised using social media platforms such as twitter, facebook, etc. Moreso, some of
the times people have even used them to learn new sporting activities. Social media
has greatly increased the ability of consumers to reach and consume sporting services.
Juventus has already put this in motion. The club is already using social media
platforms to lure fans into trying out their sporting activities and creating awareness
about their activities. They have a fun page where fans can reach them and pass across
their messages.
As the social aspect, it is easy for people to welcome ideas that they can relate
to. People enjoy participating in sports activities that are socially acceptable. In most
cases, sporting activities may be accepted in one are and rejected in another due to the
norms that surround it. For instance, wrestling has been widely accepted due to its
ability to attach to the tradition that has been long celebrated in most cultures. Sports in
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Global Strategic Sports Marketing Management 8
martial arts are more likely to be accepted in Asian countries than in Africa due to the
different cultures that these two regions have. One aspect of football is that it has been
able to capture the attention of so many souls all over the world regardless of culture.
Most people value football for the skills that go into the sport.
When it comes to the legal or political aspect, it is important for the club to
consider the legal framework of the country in which it intends to venture into. At times,
there is always a difference in terms of promotional activities. This is because every
country has its own way of how the contracts should be handled and how the people
involved should be compensated especially when injury or damage is witnessed.
Having political support is always enjoyable when the concerned parties intend to
engage in the construction of facilities such as a stadium. With a good reputation that it
has, Juventus will most likely not be on the wrong side of the legal system of America.
While at it, it is also important for Juventus to understand the forces in the
external environment that affect their competition against their competitors. To fully
comprehend it, it will be prudent to employ Porter’s Competitor Analysis model. In this
model, there are five forces that affect the existence of a business: the threat of new
entries, the bargaining power of buyers, bargaining power of suppliers, rivalry and the
threat of substitutes. According to Dalken (2014), new entrants bring into the industry
new capacity, substantial resources, and a desire to gain shares on the market which
affect the competitive advantage of the already existing companies. In such cases, the
companies present in the industry will have to share the clients which, in turn, leads to a
decrease in the profits of the participating firms. In as much as Juventus is one of the
topmost football clubs, there are other great football clubs as well among them
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Global Strategic Sports Marketing Management 9
Liverpool, Arsenal, Manchester United, Real Madrid and many more. Juventus is not
the only club that is eying the American sports industry. There will be more as time goes
by.
Porter (2008), believes that the customers can also determine the activities of a
firm since the larger their market power, the easier their ability to demand lower prices,
a better quality of the products, and also an increased range of activities that should be
conducted in an industry. The power of the buyers increases with their numbers. This is
confirmed by the fact that most people in America do sports for the sake of healthy
living (Humphreys and Humphreys, 2005). There has been a surge towards healthy
living and most people are demanding the introduction of sports activities that can help
them live a healthy life. To blend in, Juventus can start a health sports club and also sell
apparels and footwear.
Substitutes threaten existing businesses especially if they produce the same
services. According to Dalken (2014), factors such as pricing and the preferences of the
buyers can lead to a business losing its customer base. However, Juventus prides itself
in the fact that it can offer high-quality services at prices that are affordable to even the
common people. Despite sport prices being determinant mainly on the market, (Miloch
at al, 2012), the club can price match tickets and registration and entry fees into their
health clubs a bit lower than other firms. This can be done by analyzing the Bendesliga
which sells the cheapest tickets (Guardian, 2019).
Suppliers too have an effect on the stability of a business. According to Dalken
(2014), when the prices of the supplies are increased, it becomes very difficult for the
firms to maintain their set prices. Among the factors that increase the chances of
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Global Strategic Sports Marketing Management 10
suppliers hiking prices include the number of suppliers that are in business, the sie of
the suppliers and the number of firms that are in the same industry. To avoid such
scenarios, Juventus can ensure that it remains loyal to its suppliers and that it offers
them deals when opportunities emerge.
Lastly, the football industry has many firms that might have the intention of
following into the same footsteps, posing competition. By applying the logistics of the
value chain model, through marketing, Juventus will be able to overcome this threat.
The Value Chain Model posits that the activities a firm engages in for the purposes of
production determine whether the firm will acquire profits or operate at a loss (Lusby
and Panlibuton, 2004). Marketing is one way in which the club can achieve profit. It
provides the club with a competitive advantage over other firms.
Another way the club can deal with its competitors is by employing the logistics of
the Blue Ocean Model. According to Mauborgne and Kim (n), the Blue Ocean model
relies on creating a market space that does not exist. It means that the club has to come
up with services that are not offered by the other firms. As it is, the club already
engages in various activities that are not practiced by other firms. According to the
Sustainability report of 2017/2018, the club has ventured into sustainability activities
such as offering football for a healthy and active lifestyle. This eliminates the threat of
competitors.
The third step will be for Juventus to analyze its internal environment. To start
with, the purpose of Juventus has always been to provide its supporters with sporting
satisfaction and to carry on with the winning tradition it has experienced over the years.
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Global Strategic Sports Marketing Management 11
This is one of the best philosophies a football club can ever have. The philosophy puts
its fans at the forefront of everything and the stakeholders right next to them.
To be able to achieve an internal analysis successfully, Juventus will have to
perform a SWOT analysis. It is important for it to understand its strengths, weaknesses,
opportunities, and threats before it ventures into a new market. One of the greatest
strength that the club has is the fact that it has resources to venture into the US market
while one of the most known weaknesses is the lack of fan support. The greatest
opportunity is the changes that occur in the industry while a threat is that competitors.
The culture of the club is reputable. Its performance is amazing. As earlier
revealed, the club has participated and won many cups including international ones. It is
currently the winner of the Italian cup (Sustainability Report 2017/2018). This gives the
club a good headstart in the market. It will be easy for it to sell itself as people will easily
be convinced of its worth when they come across the club’s achievements.
Another factor that the firm should closely consider should be the resources that
they need to ensure that the intended objectives are achieved. The club is well
equipped with resources that will be required to pursue the intended objectives. It has
educational programs for the youth, a women’s club, a stadium, fitness programs and
many more resources which can be used to generate income (Sustainability Report
2017/2018).
To crown it all, Juventus has a sustainability program. It is one of the few football
clubs that take the direction of tailoring its business to a sustainability program. The club
provides an educational program for the youth helping them to overcome the challenges
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Global Strategic Sports Marketing Management 12
that they face. Besides, it has shown interest in fighting against racism and
discrimination (Sustainability Report
2017/2018). This fight resonates with the American market since the country is known
to be among the countries that greatly encourages the fight against racism and
discrimination. These are, to mention, a few of the strengths and opportunities that the
club has. This places the firm in a good position to venture into the market.
Financial Documents
Budgeting entails making reflections of quantitative estimates. The budgets may
include financial pro formas and unit sales. Pro formas are used to forecast cash flows
and needs by control and finance departments while unit sales are used to ‘load the
factory’ or service operation by production schedule. It is important to make appropriate
estimates since too low estimates may result in leaving customer needs not fully met
while high ones may result in a loss.
The expenses that will be required for the marketing plan include that of printed
materials, publicity, website, advertisements, administrative expenses, and staff
expenses. The budget for printed materials will amount to $250,000, that of publicity will
amount to $1,000,000, that of the website will amount to $350,000, that of the
advertisements will amount to $500,000, administrative expenses will amount to
$1,550,000 and lastly, staff expenses will amount to $2,000,000. The total budget will
amount to $5,650,000.
Monitors and Controls
Monitors and controls will be used to ensure that the plan is going according to
how it was intended and that the results obtained from the plan are the desired ones.
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Global Strategic Sports Marketing Management 13
The first way in which the club should keep in check the marketing plan is through
strategic control. This will help determine whether the firm is headed in the right
direction. This can be attributed to the fact that the business environment keeps
changing. This can be achieved by conducting a marketing audit. According to Kotler
(2004), this helps identify the characteristics of the customers, economic trends,
competitive activities, and regulatory constraints. Strategic control can also be achieved
through marketing performance measurements This will help Juventus acquire results
about its marketing efforts.
An Annual Plan Control
With this method, the objectives of the marketing plan become the measuring
standards of the marketing plan. The objectives are observed against the results that
have been achieved. In the case of Juventus, there can be Sales analysis to determine
whether there has been an increase in sales. There can also be a market share
analysis which determines how the firm is doing as compared to its competitors. Lastly,
there can be an expense-to-sales ratio. This is an analysis of how efficient the
marketing operations were carried out.
Marketing control can also be a good measure of how the marketing plan was
done. Here, the club will develop a dashboard that will track the progress of the
marketing plan and its outcomes. To be highly effective, the dashboard should contain
good alignment, foster decision making, translate complex measures and provide a
unified view (Karpinski, 2006).
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Effectiveness and Efficiency Control
Effective control assesses whether the plan has achieved the required outcomes
while an efficiency control evaluates how resources were used during the marketing
plan. Juventus should have a control system that will enable it to keep track of how
each resource was utilized to achieve an objective.
Profitability Control
This will help the club determine whether it is making a loss or profits. This can
be done in two different ways. One is by checking profitability through the market
segment. Here, the club will have to conduct a cost-benefit analysis. Evaluate the cost
of the marketing plan against the benefits that have been achieved. Another way is by
the use of an activity-based cost system. This system identifies the points of the
marketing plan that will have the greatest outcome (Gerard, 2008).
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Global Strategic Sports Marketing Management 15
Appendices
Table 1
Sports Industry Statistics and Market Size Overview
Amount Units Year/Season Source
Estimated Size of the Entire Sports Industry, U.S. 519.9 Bil. US$ 2017
Estimated Size of the Global Sports Industry 1.3 Tril. US$ 2017
Annual Company Spending for Sports Advertising, U.S. 37.7 Bil. US$ 2017
Table 2. SWOT
Strengths Weaknesses
Product attributes Product limitations
Financial Capacity Levels of Product awareness
Management Exeperience Lack of fan support
Opportunities Threats
New market Competitors
Advance in technology Economic conditions
Industry trends Political and legal uncertainty
Figure 1.
Staff Expenses Total $2,000,000
Wages/Benefits $2,000,000
Figure 2.
Administrative Expenses Total$1,550,000
Computers/Software $500,000
Equipment Supplies $50,000
Legal and Accounting $250,000
Liability $50,000
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Global Strategic Sports Marketing Management 16
Meeting Expenses $50,000
Office Supplies $40,000
Postage $10,000
Professional Training $250,000
Telephone/Wireless Equipment $50,000
Stakeholder Newsletter $50,000
Figure 3.
Advertising Total $500,000
Meetings/Conventions/Sports $250,000
Leisure Marketing $250,000
Figure 4.
Printed Materials Expense Total $250,000
Promotional Materials $50,000
Welcome/Recruitment Banners $30,000
Bronchures $30,000
Presentation Materials $40,000
Meeting Planner Incentives $100,000
Envelopes $10,000
Figure 5.
Website Total $350,000
Website Maintenance and Improvements $250,000
Event e-Calendar $50,000
Domain Names and Reg. $50,000
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Figure 6.
Publicity Total $1,000,000
Photos $100,000
Journalists $250,000
Meeting Planners $250,000
PR Campaign $400,000
Figure 7.
Porter’s 5 Forces
The figure above shows the five forces that affect a business externally. Porter believs
that the survival of a business relies upon its ability to overcome these forces. The
forces include: new entrants, competitors, bsrgaining power of suppliers, bargaining
power of buyers, and subsititutes.
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Global Strategic Sports Marketing Management 18
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