The chosen company to provide an analysis and a marketing proposal for is Manchester United Plc (M. U. Plc). This company has succumbed to pressure in its first line of business, Manchester United Football Club M. U.
F. C. , in recent years due to a number of reasons which are to be discussed later.
However, their product range has been so extensively differentiated in the past 10 years that their overall business performance from a fiscal and a non-fiscal perspective has been steady but positive.This essay will identify the strengths and weaknesses in the operations of M. U. Plc and how they can use their current status within the world economy to expand their operations by being in the forefront in the use and development in green technology. To first take an overview of the company a SWOT analysis will give a general idea of where the company stands within the market. This “technique is specifically designed to help identify suitable business strategies for an organisation to follow” (Tony Proctor, 1996), from the previous quote the SWOT analysis seems an ideal way in which to tackle the analysis of the chosen company.
There are many strengths to the company one of which is there communication abilities, “M. U. Plc. Pride themselves on the excellent standard of communication that is used to make decisions on group activities, an essential management tool in such a people orientated environment” (www. calcioinborsa. com), this quote shows part of the reason why the company have been very successful.
Another advantage is that they have a huge disposable income; this gives the company stability as they are able to deal with short term debt which is arguably the one of the main factors in the failure of any business.A help to the company is an already huge target market which untold amounts of revenue can be extracted from. The market ranges from the home market, Britain, to China, India, Japan, Malaysia and Indonesia. However, an influential factor in how and if the company get sales is the current market condition in these countries. Weaknesses to the company are becoming more apparent over the past year.
As the company relies on the first team performing well in competitions they might see a dip in sales/profits if they perform badly.Looking at appendix 3 under the section of total current liabilities the company has an increasing problem of long term debt which if not brought under control could be a fatal problem. Threats to the company are its competitors, uncontrollable debt and performance of the first team. Lesser threats could be of that of moving into unknown markets where there is uncertainty about culture and economic stability, a mistake made her could be disastrous taking into account the modern age of communication and depth and complexity of culture spread over the globe.To further identify some of the key aspects to M.
U. Plc the marketing mix can be used to hone in on the targeted areas of a business “Product, Price, Place, Promotion”, (www. kaizencoaching. com). The brand which is Man United is a particularly strong one, which is due to the direct comparisons made by the general public between the football club and the Plc. The Man United brand has grown over time mainly due to the work of Peter Kenyon.
As Man United football team have progressed from strength to strength in Domestic and European competition in the past 10 years the Plc has also shown a corresponding pattern in performance.Appendix 1 shows From this M. U. Plc transferred the perceived qualities of the team into a sellable, retailing product. The advantages of this are that immediately existing and prospective products take on a brand that not only has a huge customer loyalty base but has a perception of quality also. Noticing this, the Plc expanded decided to expand which has numeral benefits and serves to reduce the risk in business as illustrated by appendix 2. The company have targeted new markets and, with their existing brand, moved into them.
They have seen that loyal M. U. F. C fans will buy any merchandise and services if it is associated with the brand to which they have exploited this theory fully. For example the football club has many lines of clothing, kitchen ware, bedroom apparel and sports equipment.
They offer services such as providing credit/insurance, travel for supporters and just recently broadband services. However their main source of revenue is through match day revenue, sponsorship deals and the acquisitions and sale of club assets.A quick glance at their balance sheet (appendix 3/4) clearly shows that the assets of the club are worth far more than their entrepreneurial escapades in the retail business. M. U. F.
C. games are in high demand. For example if there is a game with a popular club such as Arsenal ticket prices are at their premium price. All merchandise sold by the company is also at a high price due to the exclusiveness and individuality of the brand. M. U.
F. C. Promote themselves by the use of dreams.
For example, there stadium is called The Theatre of Dreams which idealises the football team and therefore gives an individual quality to the team.The identified 4 P’s that already exist within the company will provide great benefits to the start up and implementation of the proposed marketing opportunity as I will later explain. The proposal for MU Plc is the expansion into the green industry by buying out, funding or sponsoring a company in the research and production of greener energies and products for the use in India and China. These two countries are arguably the largest developing countries to be going through industrial revolution in the world as yet with China’s population estimated at 1,296,110,643 and India’s estimated at 1,094,870,677 (www. nternetworld stats. com /stats3.
htm) the benefit of introducing a green form of energy now could prove to be priceless if the earth’s atmosphere is saved.OFGEM is the energy regulator and has published proposed guidelines designed to help customers who want to choose an electricity supply that is more environmentally friendly. The new draft guidelines set out the criteria that OFGEM expects company tariffs to meet if they are to be described as ‘green’. They have been prompted by the changes in the regulations for renewable energy supply, namely the Climate Change Levy renewables exemption and the Renewables Obligation.