Sunday, January 27, 2013

Manchester United's Indo - Asian Strategy


United claims they have 325 million supporters in Asia with more than 10 million Indian supporters.  David Gill, currently the chief executive, had commented in 2008 that the market in India is huge and they had an offer to come to play in India. He, at that point of time, felt United needed to conquer the final frontier before any other football club did.  India: a billion-plus population, a growing economy and a country that is astonished with the economical success of the IPL.
United entered the Indian market with the introduction of their official franchise partner Indus League Clothing Ltd in 2008.  The deal between both the parties was around 5 crore. Currently, Man Utd has six stores in major metros of Mumbai, Kolkata, Delhi, Bangalore and Pune. It is also present in 32 Planet Sports, 21 Pantaloons and seven Centrals nationwide and along operating with some online stores like Myntra and Fashionara.
Restaurant-Bar: Mumbai

Secondly, Manchester United Food & Beverage (Asia) Pte Ltd had kick-started its India business with the launch of their first ever Manchester United Restaurant and Bar in 2009 with their first Restaurant and Bar in Mumbai. This project was evaluated and conceptualized by Total Sports Asia, Asia’s leading sports marketing firm. This venture marks Manchester United’s first foray into India in terms of branded cafes and restaurants. By 2012, 8 such outlets have opened in the major cites like Delhi-NCR, Pune & Bengaluru. The Restaurant and Bar is designed with design features which include the Wall of Fame, the Dugout area and giant projector screens to screen ‘live’ telecast of soccer games and other major sporting events along with a manager dug-out.
The first ever Indian based Manchester United soccer school had started functioning since 2012 January at the Cooperage ground in Mumbai. The inauguration was done on 13th Jan 2012 by Gary Neville. Denis Irwin & Quinton Fortune give training along with the head coach Chris O’Brien.  Head coach of the Manchester United Soccer School, Chris O’Brien,  had told in a media conference that the school would train the children in exactly the same way as Manchester United Academy does in its home base in the UK and the theme is to ‘Learn to play the United Way’.
United also tied up with the Indian leading and global telecommunications company in 2010 announced an exclusive partnership and signed a four-year partnership agreement. The partnership is a first of its kind signed between Bharti Airtel and Manchester United in the African continent.
The other brand building activities which took place in Asia are:
  • South-east Asian tour in 2001
  • South Korean Park Ji-sung bought by club in 2005  to facilitate the increase in merchandise sale (Highly debatable- Park disproved the critics by saying he was selected because of his football capabilities)
  • Web-Promotions: Half of the 325 mn fans on the Manchester United Asian Facebook page
While soccer has been around in Asia for a long time, demand for the sport has been revitalized with the strategy adopted by the English Champions.

Saturday, January 19, 2013

Manchester United's Brand Building Strategy


In the next few articles, let us understand about the sports team's Brands building strategies. The most common strategy followed by most of the teams is: 

  • Sponsorship with other global brands

Being associated with other international brand names lends global presence to brands as they go worldwide. If we talk about the most richest soccer club Manchester United, they have 44 official sponsors associated with the club.
One of the biggest tie up then in the year 2002 was Manchester United's tie up with Nike. Both Manchester United and Nike gained in global stature after the announcement of their global tie-in 2002. Now such is the case that Nike has to discuss £303 million kit supply deal with Manchester United and they might well have to any how shell out this huge sums of cash if they want to maintain their association with Manchester United. One month from now, this strategically important meeting will be talking place and the american sport wear company will have to come up with an enormous sum to satisfy the club’s owners 
The 'Swoosh' logo has adorned some of the greatest teams and players in the history of the game, including Manchester United legends Eric Cantona, Ruud van Nistelrooy and Cristiano Ronaldo. Of the current squad, Wayne Rooney, Javier Hernandez, the Da Silva twins, Chris Smalling, Patrice Evra, Paul Scholes and Rio Ferdinand all wear Nike boots along with the standard kits.
Swoosh: Manchester United's current kits are made by Nike
Swoosh: Manchester United's current kits are made by Nike
In recent years Manchester United has formed commercial alliances with a number of global players in other industries: Vodafone, Pepsi, DHL and Aon were all added to the club’s sponsorship list. Under these arrangements the club gains from sponsors’ international reputations and sponsors gain from their association with a such big sports brand. And Manchester United is talking full advantage of this to reach out to new segment of soccer fans and in turn helping in strengthening its brand equity.  
In July, United announced a staggering £357 million deal with General Motors for the Chevrolet logo to be worn on their shirts for seven seasons from 2014.  Chevrolet’s eight-year partnership with Manchester United kicked off this summer with a series of friendly matches, bringing the world’s favorite football team to their fans in South Africa, Europe and China. The support for, and commitment to, Manchester United and its passionate fans worldwide will go far beyond the pre-season games as General Motors look to join the fans in celebrating all that is beautiful about the game.
357 million deal with General Motors
357 million deal with General Motors
One of the biggest logistics company which is present in 220 countries and territories worldwide has tied up United in 2011 where DHL were made responsible to undertake a range of logistics services on behalf of Manchester United for three years. Just like DHL, Manchester United stands for passion, teamwork and can-do spirit. And it’s those same characteristics that have enabled both DHL and Manchester United to remain at the top of their game and thus join together build it's brand.
The Logistics Partner of Manchester United
DHL: The Logistics Partner of Manchester United
The last two deals done recently by Manchester United were with the two sponsors from China (Wahaha, a soft drinks manufacturer and China Construction Bank (CCB). Both have tied a three year deal . CCB will hold the exclusive rights to produce the official Manchester United branded credit card in Mainland China. Wahaha has been the largest beverage producer in China for the past 11 years and will be the club's first official soft drinks partner in the country.

This is just one of the many strategic decision taken by this 135 year old soccer club from Britain. In the coming article I would write about the Manchester United's Asian Strategy, mainly highlighting it's entry into the Indian market.

Thursday, January 3, 2013

Who will Succeed the Fergie



The script might have been written number of times earlier, but this United Team is never tired of re-writing it again. Manchester United players synergy, enthusiasm and never die attitude turns setback into a success. It's certainly a extra ordinary habit. Most recent being the 4-3 win at Old Trafford against the Magpies.

It is now the eighth time in the 19 games, the team has transformed a failure into a fantastic finish in this season. Sir Alex Ferguson was quoted "It tells the courage of the players". Well this one of the many improbable comebacks this team has made under the Scottish Manager. The most famous being the 1999 Champions League final at Nou Camp where they trailed the game 1-0, but finally came on top scoring 2 goals during the added minutes to end the crazy game.



We all think what was the source of inspiration for those 11 players on the field who battled through the 90 minutes to come on top. In the book, Football- Bloody Hell! (Biography of Alex Ferguson by Patrick Barclay), Sir Alex famously shared his half time speech of the 99 champions leagues final which goes like this "At the end of this game, the European Cup will be only six feet away from you, and you’ll not even able to touch it if we lose. And for many of you, that will be the closest you will ever get. Don’t you dare come back in here without giving your all."
Now just turned 71 on 31st December, he is still working his magic, jumping around in the stands and he is showing no signs of pulling the curtains to his career as of now. Sometimes it seems like he could go on forever. However, as unlikely as it seems, he will eventually have to retire and the United camp should start searching for his replacement soon.

Sir Alex himself himself favours Pep Guardiola as his successor. Why? Because Pep has won just about every trophy possible in his four year stint at the Nou Camp. Being a product of the Barcelona youth system, and a follower of the that system, Guardiola even has the right philosophy for Manchester United, a club that likes to bring players through the ranks and add talent from elsewhere as and when it is required, just as Barcelona do.



Another one is the Special One, who have been very highly rated by Fergie. "Jose Mourinho is very intelligent,"  Fergie said to academics at Harvard Business School in Boston. "He has charisma, his players play for him and he is a good looking guy. I think I have most of those things, too, apart from his good looks". The head to head match ups suggests why the Master thinks Jose has the caliber to replace him.  Both of them have locked horns 13 times with the United Manager only winning twice with Jose winning six times. One who has won 16 domestic titles (13 at Manchester and 3 at Aberdeen) and another 7 domestic titles (2 each at Porto, Chelsea & Inter and 1 at Real Madrid). Both of them has won two Champions League Title. However, the best Jose Mourinho has managed is a little more than three seasons with Chelsea, hardly the type of stability that Manchester United will be looking forward when Sir Alex does decide to stand down.



Scot's are regarded as one of the best when it comes to producing managers. Few of them: Sir Matt Busby, Kenny Dalglish, Alex McLeish and David Moyes.  With more than 10 years of association with Everton and David Moyes is doing fairly good job there with a club which is severely lacking in financial resources. David Moyes has been able to consistently finish among the top ten and also had managed Everton to in the European games. David has the kind of stability which Mourinho lacks however the fact he hasn't managed a major European Club and big name players may well work against him.



Another one, whose names haven't been discussed at all is Mike Phelan (current assistant manager of Manchester United) who may be able to fill in the shoes of Alex Ferguson just as Tito Vilanova did for Pep Guardiola and F.C. Barcelona. Mike has been a Manchester United player playing more than 100 games winning 1992-93 premier league title under Ferguson. He has the advantage of already being more than familiar with the club; he spent 4 years there as a player and serving for five years as assistant  manager. In January 2010, Phelan was linked with a return to his first club Burnley as manager following the departure of Owen Coyel. However pursued to stay on by Sir Alex Ferguson and work as his right hand man during three Premier League title campaigns, a Club World Cup, two League Cups and guided Manchester United to two Champions Leagues finals. During Mike Phelan time as first Team Coach, Manchester United won three Premier League titles, one FA Cup, a League Cup, and a Champions League.



Better than failing at one go is succeeding little by little is what the Manchester United board should be looking at. Whoever replaces Ferguson should be given ample time as he was given.

Smokey Mountains View from New Tehri of Tehri Range, Uttarakhand

One of the most memorable places where I have stayed for a month or so. In a small but busy hilly town, New Tehri in Uttarakhand. All the vi...