Real Madrid Brand Equity

Table of Content

Real Madrid’s brand platform is characterized by its strong brand identity, which consistently places it at the forefront of football clubs. With over a century of history, Real Madrid is renowned for its excellence, competitive spirit, elegance, exceptional talent, and numerous championships. Additionally, Real Madrid’s comprehensive brand identity encompasses various elements:

– Product offering: Real Madrid provides top-quality content featuring world-class players and thrilling matches that guarantee excitement and championship-level competition.
– Endorsements: The club’s partnerships with prominent brands demonstrate its value and significance.
– Relationship/Heritage: Real Madrid proudly showcases its deep connection to the city of Madrid and its loyal fanbase through membership and fan cards that symbolize acceptance and pride.
– Logo: The club’s logo embodies royalty with a crown depiction alongside the club’s name.

Real Madrid’s brand personality is characterized by excitement, excellence, competition, acceptance, and exclusivity. This strong personality resonates with fans, who also embody these traits. The club demonstrates acceptance by providing exclusive membership cards and catering to the desires of its diverse fanbase, which includes different levels of competition and a sense of pride in being associated with the brand. As a result, the people of Madrid proudly associate themselves with the team and display unwavering loyalty.

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The Customer Value Proposition of Real Madrid includes three benefits: functional, emotional, and self-expressive. Functionally, fans can access football games anytime and anywhere. Real Madrid ensures that all types of fans can enjoy, whether they seek competition or star power. Emotionally, fans take pride in having a premier football team from their city or country. Additionally, there are self-expressive benefits as being part of a community and associating themselves with winners.

2) The Real Madrid brand was analyzed using the Aaker model of brand equity. In terms of awareness, in 2003, Real Madrid had 93 million fans worldwide. They had over 80,000 television subscribers for their TV station in 2004, with a potential of 3.5 million households. They had their own website,, with 1.5 million Unique visiting monthly (only 28% accounting from Spain). They used Telefonica to reach customer bases in 14 countries apart from Spain. According to a worldwide survey, Real Madrid was considered one of the top football clubs in almost every country that responded. They also utilized their Real Madrid stores, restaurants, coffee shops, fan card, and magazines. Furthermore, their awareness level continues to grow in many countries.

b) The perceived quality of the brand is closely related to the team’s performance and the tournaments they participate in. Their involvement and success in major competitive events, along with their high pricing for content and consistent growth in merchandising and licensing revenues, indicate that they are regarded as a brand of exceptional quality. Furthermore, their numerous championship victories contribute to their prestigious image as winners.

Real Madrid’s primary associations are with their superstar players, which set them apart as champions and winners. These associations also ensure excitement and nearly guarantee a large following. Additionally, being associated with players from various countries significantly enhances their international stature.

d) Real Madrid enjoys an exceptional level of customer loyalty, surpassing that of most European football teams. The team’s owners themselves are committed members, further reinforcing the loyalty. The existing fans are fiercely loyal and do not require heavy marketing efforts to maintain their support. Their dedication remains steadfast regardless. However, Real Madrid strives to foster loyalty in new fans through strategic tactics such as recruiting top-notch players and establishing retail outlets in untapped areas. The threat of competition for loyalty is minimal, as once someone becomes a fan, their allegiance tends to endure. Real Madrid also utilizes fan cards and offers match-day VIP packages to enhance loyalty among supporters.
e) In addition to its unparalleled loyalty, Real Madrid possesses other valuable assets, including deep connections with their local fans and the embodiment of madridismo.

3) Real Madrid has four main segments of fans: Members (Socios) are loyal fans who pay for season tickets and have a say in important team decisions. Fans/Supporters are people who consider Real Madrid their favorite team but are not club members. They support their local team but still have a strong love for Real Madrid. Satisfying this segment involves winning championships and building a sense of community among people living outside of Madrid. The International segment has the most potential for growth. Real Madrid is taking steps to attract this segment by signing superstar players and opening retail stores in countries outside of Spain to increase awareness.

Age Grouping: This is a method utilized by various football clubs to segment their fans. The segments include:
– Children: They are targeted by using special merchandise like toys, with the aim of capturing their loyalty from a young age (“Get them while they are young” “once a fan always a fan”).
– Teenagers: This group can be targeted through star power, winning, and unique merchandising such as clothing designed for teens.
– Adults: This segment is where the majority of revenue is generated, through ticket sales and merchandise sales for themselves, as well as for their children. They also serve as influencers for other segments, particularly their children.

4) Real Madrid’s business model is at risk due to its susceptibility to imitation by other clubs, notably Chelsea, which also boasts wealthy owners willing to invest hefty sums in attracting top-tier players. As a result, the retention of talent becomes a challenge for Real Madrid. Competing teams are capable of offering players salaries twice as high, creating difficulties in maintaining loyalty. Given that Real Madrid’s strategy heavily relies on their superstar talent, the absence of such individuals would hinder their ability to deliver the exceptional quality they are renowned for.

The second challenge that Real Madrid may face is the replacement of their current team with new talent. It is crucial for them to find equally or more skilled players to maintain their brand image. However, there is no guarantee that young players will be persuaded to join the team. Therefore, having a strategy that upholds Madrid’s reputation as an appealing brand to play for is essential.

Another significant issue that Real Madrid might encounter is the excessive commercialization of their brand. Football teams represent more than just sports; they embody a sense of identity. Manchester United’s case demonstrates how excessive commercialization can alienate fans and shareholders. Real Madrid has handled this aspect well so far but needs to ensure they don’t prioritize short-term profits over long-term loyalty. However, their plans for expansion into the US could potentially lead to this outcome. They should exercise caution not to deviate too much from their core focus, which is football.

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Real Madrid Brand Equity. (2016, Nov 18). Retrieved from

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