This given work is devoted to analyzing and improving the marketing strategy of InterMediaCo, particularly focusing on increasing brand awareness and customer engagement in North America. The work has been carried out on the materials from InterMediaCo and its strategic initiatives, including financial projections and marketing strategies. Research methods used: SWOT analysis, Business Model Canvas, financial analysis (NPV, IRR), and market analysis.
The global media landscape is changing at a very fast pace due to the changes in digital technology, varying consumer behaviors, and intense competition. As the rate of media consumption continues to migrate to digital channels, companies have to come up with more innovative ways to market themselves if they are to remain competitive. Acting as the sole operator of marketing of the prestigious football club, Inter Milan, this tight linkage with football, the most widely followed sport in the world, InterMediaCo is looking to exploit strategic initiatives in increasing the level of its brand recognition in the North American market.
InterMediaCo will engage in advanced digital marketing practices and strategic partnerships toward market enlargement. All these will result in an increase in cross-section customer opportunities, elevate brand recognition, and amplify customer engagement. Other strategies include opening new retail stores in big cities such as New York and Chicago and co-branding with high-profile trademarks, including Chipotle, Pepsi, Bank of America, and Delta.
Traditional marketing hardly holds a candle on catching the eyes of consumers in the current media climate, something that InterMediaCo is very aware of. The platform is approached in a bid to use digital marketing, influencer collaborations, and partnerships at the regional level to develop a strong brand presence in North America. This thesis is taking the investigation approach towards these strategies, coupled with an elaborative analysis of their potential impacts and financial viability.
There will be an analysis of marketplace environment, marketing strategies, and financial forecasting of InterMediaCo to identify those key factors that can enhance brand awareness and customer engagement. This research, for the same reason, carries out a specified evaluation of the proposed retail store projects which underline economic efficiency and the potential for hefty returns on investments.
TABLE OF CONTENTS
INTRODUCTION
1. THEORETICAL ASPECTS OF MARKETING STRATEGY IMPROVEMENT FOR GLOBALIZED BUSINESS OF SPORT
1.1 Understanding the formation of Marketing strategy and its analysis
1.2 Theoretical analysis of Brand Awareness, Brand Equity and Brand Loyalty
1.3 Trends in globalized business of sport
2. CHARACTERISTICS AND ANALYSIS OF MARKETING ACTIVITY OF INTERMEDIACO
2.1 Characteristic of InterMediaCo
2.2 Characteristics of Business Process
2.3 Project management. Increasing Brand awareness of Inter Milan
3. BUSINESS PLAN «BRAND AWARENESS OF INTER MILAN»
3.1 Implementation plan of the program «Brand awareness of Inter Milan»
3.2 Determination of costs for the implementation of the project “Brand awareness of Inter Milan”
3.3 Determination of economic efficiency of the project “Brand awareness of Inter Milan”
CONCLUSION
REFERENCES
ABSTRACT
103 pages, 32 figures, 30 tables, 0 appendices.
Keywords:Inter Milan, Marketing Strategy, Brand Awareness, Strategic Partnerships, Global Football Market
The title of the bachelor's thesis:"Improvement of the marketing strategy for InterMediaCo in the North American market."
This given work is devoted to analyzing and improving the marketing strategy of InterMediaCo, particularly focusing on increasing brand awareness and customer engagement in North America..
The work has been carried out on the materials fromInterMediaCo and its strategic initiatives, including financial projections and marketing strategies.
Research methods used:SWOT analysis, Business Model Canvas, financial analysis (NPV, IRR), and market analysis..
The main results of the graduate qualification work:
– Identification of key market trends and consumer behaviors in North America;
– Analysis of InterMediaCo's current marketing strategy and identification of areas for improvement;
– Development of strategic initiatives for enhancing brand awareness through marketing promotions and regional partnerships;
– Financial viability assessment of opening new retail stores in New York and Chicago;
– Recommendations for diverse marketing approaches to improve customer engagement and market presence.
The areas of the graduate qualification work results application:Strategic marketing planning, business expansion, and brand management for media companies, particularly within the North American market..
Information technologiessuch as financial modeling software, market analysis tools, and digital marketing platforms were used while working on the graduate qualification work were used while working on the graduate qualification work.
Conclusions.The proposed strategic initiatives, including marketing promotions, regional partnerships, and new retail stores, are well – designed to enhance brand awareness and market presence for InterMediaCo in North America. These initiatives are expected to drive significant growth, improve customer engagement, and strengthen InterMediaCo's competitive position in the North American market.
РЕФЕРАТ
На 103 с., 32 рисунков, 30 таблиц, 0 приложений.
Ключевые слова:Интер Милан, Маркетинговая стратегия, Узнаваемость бренда, Стратегические партнерства, Глобальный футбольный рынок
Название бакалаврской работы:"Улучшение маркетинговой стратегии InterMediaCo на североамериканском рынке."
Данная работа посвящена анализу и улучшениюмаркетинговой стратегии InterMediaCo, с особым акцентом на увеличение узнаваемости бренда и вовлеченности клиентов в Северной Америке.
Работа выполнена на материалахInterMediaCo и его стратегических инициатив, включая финансовые прогнозы и маркетинговые стратегии.
Использованные методы исследования:SWOT – анализ, Business Model Canvas, финансовый анализ (NPV, IRR) и анализ рынка.
Основные результаты выпускной квалификационной работы:
– Идентификация ключевых рыночных тенденций и потребительского поведения в Северной Америке;
– Анализ текущей маркетинговой стратегии InterMediaCo и выявление областей для улучшения;
– Разработка стратегических инициатив для повышения узнаваемости бренда через маркетинговые акции и региональные партнерства;
– Оценка финансовой жизнеспособности открытия новых розничных магазинов в Нью – Йорке и Чикаго;
– Рекомендации по разнообразным маркетинговым подходам для улучшения вовлеченности клиентов и присутствия на рынке.
Области применения результатов выпускной квалификационной работы:стратегическое маркетинговое планирование, расширение бизнеса и управление брендом для медийных компаний, особенно на североамериканском рынке.
Информационные технологиитакие как программное обеспечение для финансового моделирования, инструменты анализа рынка и цифровые маркетинговые платформы, были использованы при выполнении выпускной квалификационной работы.
Выводы:Предложенные стратегические инициативы, включая маркетинговые акции, региональные партнерства и новые розничные магазины, хорошо спроектированы для повышения узнаваемости бренда и присутствия на рынке для InterMediaCo в Северной Америке. Ожидается, что эти инициативы приведут к значительному росту, улучшению вовлеченности клиентов и укреплению конкурентной позиции InterMediaCo на североамериканском рынке.
INTRODUCTION
The global media landscape is changing at a very fast pace due to the changes in digital technology, varying consumer behaviors, and intense competition. As the rate of media consumption continues to migrate to digital channels, companies have to come up with more innovative ways to market themselves if they are to remain competitive. Acting as the sole operator of marketing of the prestigious football club, Inter Milan, this tight linkage with football, the most widely followed sport in the world, InterMediaCo is looking to exploit strategic initiatives in increasing the level of its brand recognition in the North American market.
InterMediaCo will engage in advanced digital marketing practices and strategic partnerships toward market enlargement. All these will result in an increase in cross-section customer opportunities, elevate brand recognition, and amplify customer engagement. Other strategies include opening new retail stores in big cities such as New York and Chicago and co – branding with high – profile trademarks, including Chipotle, Pepsi, Bank of America, and Delta.
Traditional marketing hardly holds a candle on catching the eyes of consumers in the current media climate, something that InterMediaCo is very aware of. The platform is approached in a bid to use digital marketing, influencer collaborations, and partnerships at the regional level to develop a strong brand presence in North America. This thesis is taking the investigation approach towards these strategies, coupled with an elaborative analysis of their potential impacts and financial viability.
An analysis of marketplace environment, marketing strategies, and financial forecasting of InterMediaCo to identify those key factors that can enhance brand awareness and customer engagement. This research, for the same reason, carries out a specified evaluation of the proposed retail store projects which underline economic efficiency and the potential for hefty returns on investments.
Subject of research: Marketing strategy of InterMediaCo.
Object of research: InterMediaCo.
Goal of Research: Improving the marketing strategy of InterMediaCo.
The main goal of the work: To describe the theory and foundation of media marketing and future trends. The sub – goals of research are:
1. Preparation of a theoretical basis for marketing strategies in a global context.
2. Description of market characteristics relevant to InterMediaCo.
3. Analysis of InterMediaCo's marketing strategy.
4. Development of a project plan for improving InterMediaCo's marketing strategy.
5. Evaluation of the economic efficiency of the proposed marketing strategy improvement.
1. THEORETICAL ASPECTS OF MARKETING STRATEGY IMPROVEMENT FOR GLOBALIZED BUSINESS OF SPORT
1.1 Understanding the formation of Marketing strategy and its analysis
"The ultimate goal of most businesses is to increase sales and income. Ideally, you want to attract new customers to your products and encourage repeat purchases. Brand awareness refers to how aware customers and potential customers are of your business and its products. Within a week after its introduction, surveys found that more than 90% of US consumers had heard about the iPhone as a result of advertising and news reports. This is exceptionally high brand awareness. Ultimately, achieving successful brand awareness means that your brand is well known and is easily recognizable. Brand awareness is crucial to differentiating your product from other similar products and competitors" (Gustafson & Chabot, 2007, p. 1).
"Eventually, most of the businesses seek to increase their sales and revenues. It ideally involves acquiring new customers to your products and ensuring they become repeat purchasers. The term 'brand awareness' is the measure of how aware customers and potential customers are towards your business and its products. Surveys during the first week of launch found that more than 90% of U.S. consumers had heard about the iPhone through both advertising and news reports, pointing to a high brand awareness level. Eventually, brand awareness success would be a situation where your brand is remaining known and probably gets easily identified. Brand awareness remains key in that it makes your product different from other similar ones and the competitors" (Gustafson & Chabot, 2007, p. 1).
Let’s think further about the concept of Brand Awareness. It is needed to think of setting out on a journey to make the brand in question not only known but a familiar face in the crowd of many, much like making a new friend in a large city. The article by Tara Gustafson and Brian Chabot is more or less a map taking one through the hustle and bustle metropolis of market competition, with a guide to all paths of making your brand a household name.
At the very core, that is what brand awareness is all about: making sure that when people think of a product or service, the brand in question should pop in their heads as easily as remembering a close friend's name. In the story of the launching of the iPhone, it develops a perfect concept for this idea. Just after one week of launching it, the toast of the town, certainly acquired iconic status among consumers. This is not by accident. It is something that peaks, to what businesses would want to reach, a brand recognized instantly.
But how to navigate there? Gustafson and Chabot plan like a treasure map: Know your audience as well as you know your best friends. Make symbols (like logos and slogans) as identifiable as your own signature and make every interaction with your brand add value to your customer's day—just as a good friend would.
It is an art of keeping in touch, which has an after – sale follow – up reminiscence, in the way the relation between the brand and the customer has to grow stronger with time. That leads to another great question this document answers: "Is all this effort really worth it?" The answer would have to be a resounding "Yes." Putting time into friendships enriches life, just as investing in brand awareness fills the relationship between businesses and customers.
It's the difference between being a mere acquaintance and a trusted friend in the eyes of customers.
And that friendship, we may say brand awareness from now on, has to be developed and maintained on an ongoing basis. It requires consistency. Each touchpoint a customer makes with your brand must be an exciting experience, almost like meeting an old friend who never fails to bring happiness. The logo, the slogan, or even the customer service representative—all of them have to live up to that positive image. The article does not leave us readers with a plan, but rather looks at the psychology behind making a purchase, in which it usually includes mimicking the process of forming a new friendship.
It was for this realization—from realizing that you wanted a new friend (or, in this case, product) in your life, to finding out who that new friend (or product) is going to be, to weighing up whether this new friend (product) is going to be the right kind of friend (product) for you, every step then—critical. The essence of the advice by Gustafson and Chabot is that you have to let your brand not just be known but known as a true, reliable, trustworthy friend in a world full of strangers. It is a process of building lifelong relationships, whereby your brand becomes part and parcel of your customers' life in the same way a friend would.
Brand Equity, Brand Loyalty and Brand Awareness
“Brand equity is the additional worth inserted in its name be able to be recognized through the consumer, it also reflects that consumer is eager to attract towards a definite brand or product" (Shabbir, Khan, & Khan, 2017, p. 418).
"High affiliation with a brand is known as brand loyalty (Naghibi & Sadeghi, 2011). The want of a customer to repurchase a product again and again is brand loyalty, although competing brands are may also available" (Shabbir, Khan, & Khan, 2017, p. 417).
This work helps fill a gigantic gap in understanding the dynamics of brand. It proposes a very subtle pathway through which brand loyalty and brand image can influence equity, with a pivotal mediating role played by brand awareness. That is, at its heart, the research bolsters a more nuanced and complex story of brand interaction than had previously been let on. Awareness thus becomes very critical, a linchpin, that amplifies the effects of both loyalty and image on brand equity, rather than being just an outcome of marketing effort.
What the authors through this comprehensive analysis uncover is that brand awareness becomes much more than an indicator of recognizability; it is the bedrock that pulls the fabric of brand perception, loyalty, and equity together. The customer first gets attracted with awareness towards some particular brand, and his experiences and image seem to create some sort of loyalty above satisfaction. The loyalty of such a nature, coming from deep awareness and reinforced by a consistent brand image, augments the standing or stature of the brand in the eyes of the customer, increasing its equity.
This study tells, hence, an integrated story: every single element in the branded ecosystem is integrated and feeds into the others. In practical terms, it reminds brand managers and marketers about the critical importance of fostering brand awareness. It's not about bringing a brand to light but actually creating a story for it through which people can feel a personal identification and make them loyal, conscious, and informed about the brand. This approach does more than build equity; it weaves the brand into the fabric of consumers' lives. Here, it becomes an indistinguishable part of their identity and choice.
Brand awareness in Global Sport Business
"Sponsorship is a fast growing marketing tool mainly used by companies that want to promote their products or services. According to the last spending report done by the professional authority in sponsorship consulting and research (IEG), sponsorship is positioned as the main tool used by the companies worldwide with over $51 billion dollars investments in 2013. This could be deemed mainly because of the proven effectiveness of sponsorship over traditional methods. As a result of this, answering the question of how effective is for a company to invest in sponsorship has become increasingly important." Grimaldi, M. (2014)
The article "The effect of sport sponsorship on brand awareness, corporate image, and brand association" by Mirna Grimaldi deals with sport sponsorships and their impact on the example of the UEFA Champions League sponsored by Heineken. The paper highlights the sponsorship that emerges as a key marketing strategy, which organizations are employing for improved brand exposure, alteration of the corporate image, and building a strong association of the brand name in relation to the competitive forces evidenced in sport globally. The critical analysis of the strategic partnership between Heineken and UEFA Champions League provides an insight into how the company's sports sponsorships could prove to be a mighty marketing tool through leveraging the emotional attachment of fans with sports in building brand loyalty and recognition.
The dissertation by Grimaldi plunges deep into the relationship of sports entities with corporate brands for a mutual benefit relationship. In every sports event, the sponsorship from corporate brands functions as an important source of finances that would enable the occasion to grow and make its reach at the global level. On the other hand, high – level sport events, such as the UEFA Champions League, do, however, offer sponsors like Heineken the opportunity to associate their brands with the high – level event, not only to develop brand awareness through numerous media coverage but also to align their brand with the values and passionate intensity of the event. It is such alignment that plays a very important role in ensuring positive corporate image and at the same time enhances strong brand associations among the target audience that reflect their buying behavior toward the brand.
Moreover, Grjon found that strategic activation and integration of sponsorship initiatives into broad marketing campaigns effectively increases the visibility and the relatedness of the brand. Indeed, this partnership fully capitalizes on the UEFA Champions League, since Heineken markets marketing activities to fans across such platforms. The fourth strategy centers on the synergistic approach to sponsorship the company must take, such that integration of sponsorships in the overall marketing mix multiplies the effects on brand awareness, corporate image, and brand association.
Grimaldi's thesis focuses much on the sponsorship aspect, of which he assures it has the ability to create brand association among consumers or enhance it. So, it is indeed the main contribution, or maybe the major finding, of this study in relation to Heineken with its sponsorship of the UEFA Champions League. The finding has shown that a larger percentage of the respondents (73%) perceive Heineken as a premium beer because, according to them, the beer is used in UEFA Champions League sponsorship. Those figures go on to prove just how strategic sport sponsorships are in creating strong brand associations, when the brand will easily fit with events deemed prestigious or premium by their target audience. The research further implies that the level of "fittingness" between the sponsor and the sponsored event has a large effect on the effectiveness of the sponsorship—brand awareness and brand association. And that strength likely increases as the perceived fit between the sponsor and the event heightens, pointing to strategic fit as paramount in the effectiveness of sport sponsorship initiatives.
Grimaldi's dissertation is essentially very valuable to the sports marketing discourse, giving a lot of good insights into the mechanics of sponsorship as a marketing tactic. It speaks on how brands like Hejson make the best of the platform that sports sponsorship tends to take towards the competitive business environment. Therefore, it puts more emphasis on the strategic importance of sports partnership for them to realize marketing objectives and brand growth. This dissertation will add enriched meaning to the multifaceted role of sponsorships in adding value to brand visibility, corporate image, and deep – rooted associations in the milieu of the global sports business arena.
The effect of sponsor's brand on consumer – brand relationship in sport sponsorship
The paper by Lee and Jin (2019) introduces us to the field of how complicated dynamics and consumer – brand relationship perception from brand awareness, image, and quality all lead to affect this relationship in sports sponsorships, as presented by Lee and Jin (2019). They underline the increasing importance of such sponsorships as a strong marketing tool. She emphasize that, "Sports sponsorship is emerging as a prominent means of leveraging favorable images, thereby increasing awareness and understanding of firms and their products." This statement goes to show the strategic importance that sports sponsorships have in doing much more than improving the visibility of the brand but rather encouraging positive perception by consumers, which goes a long way in creating an attachment by the audience to the brand.
In a larger perspective, one would attempt to perceive a little subtlety into the above statement—that sport sponsorships are different from conventional advertisements because they put the brand into the emotions and of the sports events. This integration will translate to organic and impactful brand exposure, by virtue of the excited and impassioned sports fans, where brands can take place. The affective tones and shared experiences that sports events bring create the perfect platform upon which brands, through these activities, can increase not only their visibilities but also that of their image and quality perception by the consumers. Thus, sports sponsorships, very by their nature of the experiences they create and of the emotional connectivity developed, become an integral part of the modern brand marketing strategy armory that offers the path for a consumer to develop a robust, enduring relationship with the brand in his life—more than just gaining increased awareness.
Marketing in Football
In Elliot Hogg's thesis "Football as a Global Business: A Strategic Marketing Plan," he outlines the following strategic marketing strategies in football with respect to the synergy of clubs and their commercial partners. Hogg emphasizes that social media is an instrumental marketing tool that enables clubs to communicate and reach out to their fans worldwide, hence improving their visibility and getting more brand loyalty from their fans. It is in this light that this thesis will expound on how these clubs use this social media platform, and not just keeping in touch with their fans, but also giving exposure to their sponsors and producing content related to the brand and selling merchandise. The other strategy, as described, is how the clubs can take up community initiatives in collaboration with sponsors, which get the name of the club as a socially responsible entity but also get the name of the sponsor related to positive social causes for brand equity.
A quick glance at the model shows that the strategic marketing efforts in football are multi – layered initiatives, much more than just looking to increase brand exposure; they connect to the fan base on a much deeper, more impactful level. This is the ideal platform for club brands to humanize through content, including from behind the scenes and player interactions, among others, therefore enriching experience and loyalty of their fans by the wide reach and interactive ability of social media. This community, social responsibilities project focus brought out by football marketing, portrays a landscape emerging where value has to speak of more than commercial gains but has to focus on social impact. These would reflect much subtler understandings of contemporary fan bases, acknowledging fans not to be excited simply at the game but at what the game and its representatives stand for. Thus, from a strategic marketing point of view, it is ideally positioned for clubs and their sponsors to negotiate in a genuinely successful way with the noisy intersection of commercial imperatives and community values, so as to best ascertain sustained engagement and loyalty from the global fan base. Taking these strategies presented in the thesis of Elliot Hogg to a more complex level, it must be underlined that the modern football marketing exceeds the limits of traditional advertisement to these new peaks, which considerably influence fan involvement and probably touch on society's values. Social media is a paradigm shift that relates to the strategic use of how clubs and sponsors will interact with their audience through football marketing. This new digital platform delivers immediacy and intimacy not possible in traditional media and offers an opportunity for real – time engagement by bringing closer together and creating a community among fans of the world. Clubs that use social media the right way are able to create a storyline that goes beyond the pitch to include the ethos, history, and future aspiration of the club and thereby increase the emotional and psychological investment fans are making in the brand.
Further, the reflection of the larger perspective of brand equity in contemporary times is the strategic alliance of football clubs with their sponsors towards the cause of society. Such an approach serves to increase the visibility of sponsors, not only in it but also serves them positioning in values that echo deeply in the public domain. Sustainability of the environment, community good, and social justice initiatives only serve to reinforce not only the reputation of the club but that which is reflected between value systems shared by the club, its sponsors, and its fans. These moves reflect a larger expectation from brands to derive positive contribution towards the larger interest of society, beyond their commercial interests, and actually drive social change.
Furthermore, these marketing strategies reflect a nuanced understanding of the globalized nature of football fandom. The global fan base of football clubs is not a monolith but a diverse tapestry of cultures, languages, and interests. With this diversity in mind, content could be tailored in the format of language – specific social media, regionally targeted initiatives, or internationalizing players around the club.
Those clubs that ensure the execution of these strategies should be able to transform their brand, taking into account the acceptance of an international trend and easily cross – border, and thereby establish an international community of fans. To summarize, this evolution of marketing strategies in football, as discussed in the Hogg thesis, represents a pretty complex cocktail of digital innovation with a touch of social responsibility and global reach. These are not simple strategies of club or sponsor endorsement; these are the way to build up a brand that is representative of something much bigger than the sport by itself. However, there's something here that stands out: the dynamics of fan engagement. They observe fans asking for more than just a show. They ask for connection, representation, and at times, shared value. In further imbuing these tenets into their marketing efforts, it is in this milieu where clubs and sponsors can build ever more potent, meaningful bonds with their audience.
1.2 Theoretical analysis of Brand Awareness, Brand Equity and Brand Loyalty Market Research
Market research can mean several things. It can be the process by which we gain insight into how markets work, a function in an organization, or it can refer to the outcomes of research, such as a database of customer purchases or a report including recommendations. In this book, we focus on the market research process, starting by identifying and formulating the problem, continuing by determining the research design, determining the sample and method of data collection, collecting the data, analyzing the data, interpreting, discussing, and presenting the findings, and ending with the follow – up. Some people consider marketing research and market research to be synonymous, whereas others regard these as different concepts. The American Marketing Association, the largest marketing association in North America, defines marketing research as follows: (Marko Sarstedt, Erik Mooi, A Concise Guide to Market Research, 2014)
The function that links the consumer, customer, and public to the marketer through information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications.
Most market research is provided internally through specialized market research departments or people tasked with this function. It appears that about 75% of organizations have at least one person tasked with carrying out market research. This percentage is similar across most industries, although it is much less in government sectors and, particularly, in health care (Churchill and Iacobucci 2009). In larger organizations, internally provided market research is usually undertaken by a sub department of the marketing department. Sometimes this sub department is not connected to a marketing department but is connected to other organizational functions, such as corporate planning or sales (Rouzie's and Hulland 2014). Many large organizations even have a separate market research department. This system of having a separate market research department or merging it with other departments seems to become more widespread with the marketing function increasingly devolving into other functions within organizations (Sheth and Sisodia 2006). The external providers of market research are a powerful economic force. In 2012, external providers had a turnover of about $18.70 billion collectively (Honomichl 2013). The market research industry has also become a global field with companies such as The Nielsen Company (USA), Kantar (UK), GfK. (Germany), and Ipsos (France) playing major roles outside their home markets. External providers of market research are either full or limited service providers.
Market Segmentation
In their article for the Harvard Business Review, "Rediscovering Market Segmentation," Daniel Yankelovich and David Meer provide a rare, sharp, and worthwhile critique of the common, often drab, prescriptions for market segmentation today and a recovery of the most widely neglected raison d'être for this marketing strategy. Here is the following direct quote capturing their main point:
"The psychographic profiling that passes for market segmentation these days is a mostly wasteful diversion from its original and true purpose—discovering customers whose behavior can be changed or whose needs are not being met." (Yankelovich & Meer, 2006)
In other words, modern market segmentation has largely become a departure from its foundational aim of identifying potentially overlooked or non – extant customers with either a pre – existing readiness or potential for behavioral change. This misunderstanding has often led to overemphasizing psychographic profiling, which provides insight into consumer lifestyle and attitude but does not normally portray actual purchasing behavior very well. That is, it should go well beyond the colorfully derived monikers of, say, "High – Tech Harry" or "Joe Six – Pack" and, instead, encourage firms toward providing just the right kinds of products or services to the appropriate groups of customers.
It is, in essence, the recommendation the authors would rather call for with regard to rebasing market segmentation practice. A return to the very basics of segmentation will provide firms and businesses only a very good opportunity to engage better with consumers toward successful brand growth, ensuring brand survival and relevance in a market environment that is segmenting and dynamic.
Illustrations are not included in the reading sample
Figure 1 – Market Segmentation Chart
Segmentation; one that develops advertising and the other that develops new products. Both are critically important for the strategic planning of company offerings but are different in their focus, methodology, and ultimate goals.
In advertising, the population that is the subject of the study includes current users of the product or service advertised. Data in this area are acquired mostly from attitude surveys, which basically try to measure the perception towards the brand or the product being advertised from different groups. The results of surveys are subjected to different statistical tools for identifying the segments within the population, for which the reaction is different with regard to the marketing message. The segmentation result is a set of consumer segments, which respond in a number of different ways to a particular message. This enables advertisers to individualize their advertising campaigns by enabling them to resonate better with different consumer profiles and, therefore, up the effectiveness of advertising.
On the other hand, segmentation to develop new products takes a broader view. Those satisfying similar needs—that is, users of similar products or services—will also include partners such as distributors and retailers who may afford additional insights into consumer behavior. This type of segmentation goes beyond observed consumer behavior through the analysis of purchasing and usage data, usually followed by surveys that dig into the consumers' financial capacity and their preference for the channels of distribution. This will include field analysis and a study carried out under laboratory conditions to understand brand loyalty and some factors believed to be the influencers that tend to make consumers switch from one offer to another. This allows for identifying segments that differentiate themselves in terms of purchasing power, life goals, aspirations, and behaviors.
The results of this segmentation process will define the needs of the consumers and gaps in the market, from which new products can be defined to meet these needs and aspirations of identified customer segments by the product development teams. This difference between the two types of segmentation flags a strategic divide in marketing approaches; while advertising seeks to shape perceptions by consumers and increase the appeal of the brand, product development seeks to identify underserved needs and leverage consumer behavior to bring about innovations that better serve the market. These are both indispensable strategies in the business world, but they both do require a totally different set of data, tools, and perspective to perform well. When segmentation is done in the right way, it brings about precision in marketing efforts. A business knowing how and when to apply the right approaches to segmentation can mean its marketing becomes precise, brand engagement becomes strong, and hence it could increase its market share.
SWOT Analysis
SWOT Analysis (short for strengths, weaknesses, opportunities, threats) is a business strategy tool to assess how an organization compares to its competition. The strategy is historically credited to Albert Humphrey in the 1960s, but this attribution remains debatable. There is no universally – accepted creator. Also known as the SWOT Matrix, it has achieved recognition as useful in differentiating and establishing a niche within the broader market. Beyond the business world, SWOT Analysis can also be applied to the individual – level to assess a person's situation versus their competition further. There are both internal and external considerations build into the tool. "Strengths" and "weaknesses" are internally – related. The former representing a facet of an organization/entity which lends it an advantage over the competition. The latter being characteristic of that same entity, which leads to a relative disadvantage against the competition. Regarding externally – related, "opportunities" are realities in the greater environment that can be exploited to benefit the entity. While on the other hand, "threats" are realities in the greater environment, which might lead to problems for the entity.
The concept of strategic fit, a ubiquitous objective sought by all organizations, can be explained as to how well the internally – related factors fit with the externally – related factors.
Issues of Concern
While the SWOT analysis is widely known to facilitate the formation of organizational or personal strategy by assessing internal and external elements, it also has its criticisms. Some critics feel that the tool proves to be too superficial and formulaic, consequently hindering performance as outputs might be misunderstood or misused. This latter point is especially pertinent when SWOT analysis is attempted without real critical reflection by a collective group. Having only a few individuals perform the assessment increases the risk of misrepresentation of the SWOT inputs, leading to erroneous outputs. Also, organizations can anchor on one facet of the analysis, losing sight of the other critical elements of the matrix. Lastly, the SWOT captures the internal and external aspects of a single time – point. In reality, the environment is rapidly evolving.
Strengths:
What are the organization's advantages?
What can you do better than others?
What unique or lowest – cost services can you provide patients?
What do patients in your market see as your organization's strength?
Weaknesses:
Upon what factors could the organization improve?
What are patients in your market likely to see as your organization's weakness?
What lack of services loses your organization patients?
Opportunities:
What good opportunities are available to your organization?
What are the new and exciting trends your organization can try?
What new changes to governmental regulation/policy can benefit your organization? Threats:
What problems does your organization face?
Of what are your organization's competitors taking advantage?
Do evolving technologies and new services threatening your organization's position in the minds of patients?
Does your facility have cash – flow problems?
Could any of your weaknesses threaten quality patient care?
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Figure 2 – SWOT Diagram Basic
The previous diagram represents a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis framework. It tries to show a decision path that starts with the question of whether or not a factor is under the control of the organization. Internal strengths and weaknesses; external opportunities and threats. The diagram helps evaluate whether all these are helpful or harmful and the kind of impact each of them has on the goals of the organization.
This structured approach allows organizations to analyze their strategic position comprehensively. They can devise plans that leverage their strengths, as well as minimize their weaknesses, capitalize on opportunities, and mitigate threats by assessing both the internal capabilities and external possibilities or challenges. At the core of strategic planning, it is a tool offering clear directions for action from a proactive, introspective, and forward – looking review of the business environment of the organization.
Tools for CO’s description
NPV
According to Amy Gallo in the article "A Refresher on Net Present Value," it is a financial metric used to find the likelihood of an investment leading to profitability. NPV works on the time value of money premise and converts all the future expected cash flows into present – day equivalents to compare them against the initial investment. A positive NPV denotes that the investment is profitable, while a negative one denotes that it will not be financially beneficial. The discount rate is the most important parameter in NPV calculations. This parameter represents some kind of expected rate of return for investors or the cost of borrowing funds. Managers would use NPV during their decision processes to consider major purchases, evaluate projects, and make strategic decisions, like acquiring other companies. Instead, it recommends one to at least understand what goes into these tools, because it is relatively easy to calculate NPV using tools such as Excel; it may have a deciding impact on analysis.
Equation 1 – NPV Formula
Illustrations are not included in the reading sample
Business Model Canvas
In an article by Murray and Scuotto, "The Business Model Canvas," they look into the Business Model Canvas (BMC) as one of the most crucial strategic tools for an entrepreneur. The results support that BMC may be the most appropriate tool for market – oriented entrepreneurs. The studies referred to provide a reference frame that allows understanding and elaboration of the business models in a changing techno-culture. The nine other elements of the BMC—value proposition, key activities, key resources, cost structure, key partners, customer relationships, customer segments, channels, and revenue streams—are central to a business model because of their holistic nature.
This paper assumes that BMC ensures a holistic approach to business modeling, focusing on the consumer and enabling the entrepreneur to go to market quickly. The study concludes that by applying BMC in a real case, this tool is very instrumental since it helps the entrepreneur in the design of their business pathways, controlling costs, and predicting revenues, hence strengthening the BMC's relevance in this entrepreneurial journey within the context of market – driven.
Illustrations are not included in the reading sample
Figure 3 – Business Model Canvas example
The Business Model Canvas (BMC) is a strategic management tool designed to quickly convey how a business creates value. It catches the elements of a business's key ingredients, driving the success by nine building blocks: Key Partners, Key Activities, Value Propositions, Customer Relationships, Customer Segments, Key Resources, Channels, Cost Structure, and Revenue Streams. This aids in visualizing business function mapping by filling in each section, hence giving an idea of their relationship. BMC helps an entrepreneur or a manager be able to align activities by showing potential trade – offs. This systematically helps the companies clearly understand, design, and distinguish their value proposition to the target customer segments through BMC.
4P’s Mix
Grimaldi’s (2014) examination of marketing strategies highlights the enduring framework of the 4P's, stating that it seems adequate to further consider the concept of promotion only after some references to the traditional marketing framework from which it originated have been made. Marketing mix, made up of the '4 P's', is one such example. Its origins lie in the 60s. Neil Borden identified twelve controllable marketing elements to produce a profitable business operation, and this was then cut down by Jerome McCarthy to a simplified four – element framework: Product, Price, Promotion, Place"
An analysis of the "4P's Mix" brings to the fore these very fundamental standards that doubtless have given businesses a time – tested strategy. Each "P" of the "4 Ps" represents a pillar: Product (what is offered), Price (sacrifice paid by the consumer), Place (distribution channels), and Promotion (communication methods). It is a holistic tool that assures all facets of the market offering by the company are aligned and tuned to perfection for success. It underlines the strategic planning of marketing and clearly tells that knowledge about the interconnection of different areas of marketing is very important.
Adherence toward 4P's will enable businesses in dealing with the consumer needs effectively, while at the same time, achieving one's own financial targets becomes possible.
Illustrations are not included in the reading sample
Figure 4 – 4P's Marketing Mix
1.3 Trends in globalized business of sport
Reikin (2021) delves into the profound transformations occurring within the professional football industry, primarily under the influence of globalization, in his study titled "Financial and Economic Aspects of Professional Football Industry: Trends Analysis and Development Prospects." This work unveils the unique blend of athletic competition with commercial ventures that define modern professional football. It brings to light the significant impacts of key legal and regulatory milestones, notably the "Bosman case" and the "financial fair play" rules, on the financial strategies and developmental paths of football clubs across Europe.
The study goes further to dissect the revenue streams and investment tactics of Europe's premier football clubs, emphasizing the pivotal roles of broadcasting rights, commercial partnerships, and the global transfer market in sculpting their financial landscape. Reikin anticipates the emergence of polycentrism within the industry, alongside the potential establishment of a "SuperLeague," hinting at a shift towards a more financially dense and globally integrated football ecosystem. The repercussions of the COVID – 19 pandemic on club revenues, market dynamics, and the broader economic structure of sports are thoroughly examined, providing insights into the evolving challenges and strategic adjustments within the football industry in the contemporary era.
Firstly, the trend toward the globalization of the football market represents a significant transformation, as illuminated by the "Bosman case" in 1995. This legal landmark has reshaped the football transfer landscape by promoting the free movement of talent across borders and leading to the concentration of elite players within the wealthier European clubs. This push towards a global market highlights a reduction in sport barriers, fostering a more interconnected and competitive international football ecosystem.
The potential emergence of a 'SuperLeague' signals another pivotal trend with far – reaching implications for the structure of professional football competitions. Envisioned as a league for the financial elite of football clubs, this concept aims to elevate the commercial aspect of the sport to unprecedented levels, diverging from traditional league formats. This development points to a growing financial divide within the sport and underscores the significant influence of economic power on competitive balance.
Polycentrism in the world football industry offers an intriguing counterpoint to the power concentration seen in the proposed 'SuperLeague.' This move towards polycentrism signifies a diversification of power within the sport, with emerging regions in Asia and Latin America positioning themselves as formidable contenders against European dominance. It reflects football's increasing global appeal and the potential for new markets to assert their influence, enriching the global football narrative with a variety of perspectives and talents.
Finally, the financial and commercial evolution of football clubs, driven by regulatory measures like the "financial fair play" rules, marks another crucial trend. These regulations have profoundly altered club activities by mandating a balance between financial inputs and sporting achievements, aiming to foster a more equitable and sustainable economic environment within professional football. The move towards financial regulation demonstrates the industry's recognition of the need to mitigate financial risks and ensure a level playing field.
These trends indicate a shift in the professional football industry's sphere, marked by globalization, the potential for new elite competitions, the rise of polycentrism, and the significant impact of financial regulations. Together, they shift an industry, fighting with the challenges of maintaining competitive balance while also embracing the opportunities presented by a rapidly evolving global market.
Social Media’s Role in Football
In "A Study of the Use of Social Media Marketing in the Football Industry" by Joanne Kuzma, Viv Bell, and Ciaran Logue, the research provides a comprehensive examination of how football clubs across the globe are embracing social media to enhance and expand their business operations. The study observes that while most European football teams have established a presence on social networks, the effectiveness of utilizing social media varies across different leagues. It highlights a pivotal finding: "Although this study found that the majority of European teams researched have a social network presence, there was a difference in how effectively social media was used between the various leagues" (Kuzma, Bell, & Logue, 2014, p. 728).
This investigation paints a detailed picture of the nuanced use of social media within the football industry, underscoring that simply having a presence on social media platforms is only the beginning. The effectiveness of digital strategies is central to a club's capability to market itself to its fan base effectively. It is observed that globally recognized clubs do not always maximize their commercial potential via social media as efficiently as possible. On the other hand, less prominent teams sometimes outperform in engaging their fans through more active and creative social media strategies. This variation suggests that the benefits reaped from social media in sports marketing are not merely a function of the club's size or fame but hinge significantly on the creativity and strategic use of this medium.
Diving deeper into the findings, it's evident that social media stands unrivaled as a platform for football clubs to cultivate direct and personalized connections with their fans. The capacity to communicate directly, engage intimately, and provide exclusive content elevates social media beyond a simple promotional tool to a vital component of fan relationship management. The challenge for clubs isn’t in establishing a social media presence but in leveraging this presence to forge meaningful interactions. Football clubs that excel in social media usage do it by understanding into their fans' preferences, delivering exciting content, and creating a community around their brand. As the digital era continues to grow, the future of the football industry will increasingly rely on its ability to innovate, adapt and conquer Social Media, hence the importance of having the adequate strategies. This approach ensures clubs not only reach their fans worldwide but engage Football with them in ways that deepen the fan experience and boost their loyalty.
2. CHARACTERISTICS AND ANALYSIS OF MARKETING ACTIVITY OF INTERMEDIACO
2.1 Characteristic of InterMediaCo
Football is undoubtedly the king of sports. Since 1872, when the first match of the sport was played between England and Scotland, there hasn’t been any other sport with similar dimensions.
Many claim that football is more than a sport, sometimes it represents and aligns with individuals cultural, political and social beliefs. Like it or dislike it, the passion their fans have for it goes beyond the pitch, and there it gets to the point of being more than a simple sport and becomes part of the entertainment industry and represents a big market in the industry with unlimited possibilities.
Even though the sport is deeply enrooted in the European culture and has a global fanbase in Latin America, Africa and Asia, North Americans have showed a strong interest in it, especially after the 1994 World cup held in United States. The tournament was factually the most successful event in FIFA history. The World Cup it’s the biggest football event in the world. It’s played between the best National Teams in the world every 4 years since 1930 (With a hiatus between 1939 – 1949 due to World War II) and it has been played in many different countries, including those where football is the biggest sport in the region and where the passion for it is shown the most (England, Argentina, Spain and Italy as examples), but even though the North – Americans are relatively new to it, they broke the attendance record in the competitions history with a cumulative attendance of 3,587,538 and an average attendance of 68,911. Stadiums were basically filled to capacity, with a 96 percent capacity during the tournament. After the 1994 US World Cup, there have been held 7 World Cups all around the world (France 1998, Japan & South Korea 2002, Germany 2006, South Africa 2010, Brazil 2014, Russia 2018 and Qatar 2022) but the one held on American soil still has the current record. The next World Cup will be organized in the entirety of North America (United States, Mexico and Canada) on the first triple joint alliance. This represents an incredible opportunity for European teams to expand their global fanbase in the region and subsequently increase their revenues.
The object of this work is Inter Milan – arguably Italy’s best team and one of the biggest teams in Europe. With a history of more than 115 years and different periods of absolute dominance, Inter Milan ranks between the teams in Europe with the highest average attendance, but ranks 14 in the Deloitte Money Football League (an annual profile of the highest revenue generating clubs in world football) with only 73 million euros in commercial revenue, in comparison to the 218 million euros Italian club
“Juventus” make per year and having almost a 350 million difference in commercial revenue in comparison of German team “Bayern Munich”.
In this chapter we will analyze Inter Milan’s (via InterMediaCo) background, market position and the entirety of the industry in order to determine plausible solutions on how to expand their North American audience by developing a marketing strategy aimed at this market.
History of the Company
Inter Media and Communication S.p.A (“MediaCo”), is the sole manager and operator of the media, broadcast and sponsorship business of our parent company F.C. Internazionale Milano S.p.A. (“TeamCo” or “FC Inter”). They were formed in 2014 in connection with the contribution to them by TeamCo (55.6% stake) and Inter Brand S.r.l. (“BrandCo”) (44,4% stake) of their business relating to media, broadcast and sponsorship rights, TeamCo’s historical media archives, the intellectual property rights relating to the TeamCo brand and certain employees.The Company was founded on 6 May 2014, as part of the operational and corporate reorganization of the entire F.C. Internazionale Milano Group, in order to strengthen the "Inter" brand through management and development of the business marketing of historical audio – visual material, the Inter TV channel and sponsorship", previously operated by F.C. Internazionale Milano S.p.A. (hereinafter "Inter", *F.C. Inter or "Parent Company") and the licensing, merchandising, sponsorship and other operations relating to the Inter brand through the internet and other media", previously operated by Inter Brand S.r.L. (hereinafter "Inter Brand"), In this way, two companies' unit contribution operations were carried out. respectively by FC, Inter and by Inter Brand on June 5, 2014, contributed to the Company the above – mentioned business, to the Company. TeamCo is owned by Grand Tower S.a r.l. (68.55%), International Sports Capital S.p.A. (“ISC”) (31.05%) and other minority shareholders (0.40%). Their direct majority shareholder Grand Tower S.a r.l (“Grand Tower”) is an entity created in the context of the financing plan closed at shareholder level on May 20, 2021 and is fully owned by Grand Sunshine S.a r.l. which is fully owned by Great Horizon S.a r.l. (“Great Horizon”). Great Horizon is part of the Suning Holdings Group Co., Ltd. (“Suning”), a Chinese corporate group with businesses in a variety of sectors. ISC is owned by LionRock Capital (“LionRock”), an experienced private equity investor based in Hong Kong. TeamCo, with a history dating back to 1908, is one of the leading European football clubs and one of the top football clubs in Italy. TeamCo is the only club to have played every season in Italy’s top football league, known as Serie A, since the league’s inception in 1929, and is the only club in Serie A that has never been relegated to a league with a lower standing. Inter has won 37 domestic trophies, including twenty Serie A championships, nine Domestic Cup titles (“Coppa Italia”), of which the last one in May 2023, and eight domestic Super Cup titles (“Supercoppa Italiana”), of which the last one in January 2024, three UEFA Champions League (“UCL”) titles, three UEFA Cup titles, two Intercontinental Cups and one FIFA Club World Cup. In 2010 Inter became the first Italian team to complete the “Continental Treble” by winning the titles in Serie A, Coppa Italia and UCL all in the same season. Since 2000, Inter has won the Serie A championship five consecutive times, from 2005/2006 to 2009/2010 and, more recently, in the sporting season 2020/2021. In the last sporting season (2022/2023), after having won two domestic trophies (Coppa Italia and Supercoppa Italiana). the team achieved the UCL final (defeat against Manchester City) and got the right to play the 2023/2024 UCL (6 years in a row since 2018/2019). In the current sporting season (2023/2024), the team has won the Supercoppa Italiana played in Ryiad in January 2024 and the domestic league.
Mission
Inter Milan's mission is to deliver an outstanding football experience to its fans by constantly innovating and ensuring inclusivity. The club aims to improve the football industry through its engagement with all stakeholders, including fans, players, and institutions. This mission highlights their commitment to maintaining high standards of performance on and off the field and fostering a sense of community and loyalty among their supporters.
Vision
The vision of Inter Milan focuses on the future of football, emphasizing collaboration with institutions and stakeholders to advance the sport. The club aspires to be a benchmark in the football world, not only in terms of performance but also in terms of innovation and inclusiveness. This vision reflects Inter Milan's ambition to lead in shaping the future of football, ensuring it remains a beloved and globally recognized sport.
Values
– Inclusivity and Equality
– Innovation and Technology
– Community Engagement
– Excellence and Performance
– Sustainability and Responsibility
Characteristics of the Product
Considering that the main subject of InterMediaCo is InterTeamCo, a football team, we will consider as “products” the following ones;
– Broadcasts rights
– Sponsorship packages
– Match tickets
– Merchandising
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Figure 6 – Inter's Products
Then, as secondary products we will consider;
Media Content and Events and Experiences.
InterMediaCo main revenues lines are divided into Media rights and Sponsorships.
Media rights mainly relate to Serie A and other minor domestic competitions (centrally managed by Lega Serie A on multi – year cycle contracts) and European competitions (centrally managed by UEFA on multi – year cycle contracts) – Other Media rights relate to sale of archive content rights and distribution of thematic channel and other owned contents.
Sponsorships relate to: Jersey sponsors (front: Paramount+; sleeve: eBay; and back: U – Power)
Technical sponsor: Nike since 1998/99 season (further renewed until 2031).
Other sponsors which include European, Global and International/Regional sponsorship/naming rights packages.
Regarding the merchandising, Inter bought back in 2019 the licensing/retail rights from Nike for 6 million euros, meaning that they have total control over the merchandasing sale and distribution channels.
Organizational Structure
The organizational structure of the club as of 2023 consists as;
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Figure 7 – Hierarchy (Inter Milan's Official Website, s.f.)
Some remarks are that “Steven” Zhang Kangyang was appointed as Inter’s president at just 27 year old just two years after Suning Retail Group took charge of the majority of the stocks of the club. The board of stakeholders, with his dad in charge, Zhang Jindong, chose him as the replacement of the Indonesian Erick Thohir, who was at the helm of Inter for five years.
The Argentinian Javier Zanetti, the Vice President of the club, is the most noticeable between fans due to his carreer as footballer. He played for Inter during 19 years from 1995 – 2014 and was the captain for many years. Since his appointment, the fans have created a connection with the board of directors mainly because of Zanetti’s appointment.
In 2018, Steven Zhang appointed Giusseppe “Beppe” Marotta as CEO of Sports, after his exit at rivals “Juventus”. The club adopted a co – chief executive model, in which Marotta works alongside Alessandro Antonello who became the chief executive officer in charge of all corporate activities.
Both men report to Inter president, Steven Zhang, who said: “This is an important change for the Club in line with our objective of becoming a winning football club and a successful company. As Inter, we want to win, entertain, inspire and connect people through football.
“Beppe is one of the best executives in the football industry and will help us to achieve our goals. Outside of the pitch Alessandro will ensure the enhancement of our off – pitch performance, the successful completion of the Club’s strategic projects, and the promotion of our values inside the organization.” Marotta was key to Juventus’ dominance in Italy, winning 9 straight Serie A titles. He is well known for his talent scouting and low cost deals.
As Chief Sport Officer, italian Piero Ausilio works alongside Marotta focusing on the sporting ambit. Ausilio has been with Inter since 1998, while he was appointed to the position of sports director in 2014. Under his directives, Inter has transferred names such as Marcelo Brozovic, Stefan de Vrij, Milan Skriniar and current Captain, Lautaro Martinez.
Financial Overview
Table 1 – Income Statement of InterMediaCo 2022 – 2023
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Total revenue for 2023, the aggregate revenues are €64.1 million compared to €82.0 million from 2022, indicating a very significant decrease in the company's top line performance for the year. Costs and Expenses However, total operating costs slightly increased from €64.4 million to €68.1 million, even as revenue fell. The direct cost in the provision of services grew from €11.3 million to €12.8 million, whereby the direct cost for services was higher. Personnel costs rise slightly by €0.3 million from €40.8 to €41.1 million, explained by normal wage inflation or possibly by a very slight headcount increase. The comment on the 2022 costs being impacted by a write – down relating to the Adam marketing agency could have been an exceptional item not repeating in 2023, which actually means that in reality, on a like – for – like basis, the underlying operational costs could have gone up. Operating Profit The sharp decline was noted in Operating Profit, from €17.6 million in 2022 to €(4.0) million in 2023, showing a movement in operating terms from profit to loss. Net Financing Costs Net financial expenses also decreased from €16.7 million to €13.9 million, which indicates that the company may have reduced its debt burden or refinanced at better rates, reducing its interest expenses. Profit before tax and after interest and dividends Profit Before Tax decreased substantially from a profit of €0.9 million in 2022 to a loss of €(17.9) million in 2023. Profit After Tax also went significantly down, from €1.9 million profit in 2022 to a loss of €(9.6) million in 2023. Taxation Change in Income Taxes, expense of € (2.0) million to a benefit of € (5.1) million, would obviously mean that the company would be benefiting from the tax credits made or some adjustments in relation to the deferred tax assets on account of the losses it made in 2023. Key issues observed and considered: Revenue Decrease: The drastic fall in the total revenue will shoot up the red flags and will be worth looking into regarding the cause behind the change, ranging from market conditions, competitive pressure, or loss of important revenue sources. Rising Costs: The red signal is that operating costs kept rising even as revenues fell. The company has to learn to manage its costs better, especially in the backdrop of falling revenues. Transition from Profit to Loss: When an entity is moving from an operating profit to operating losses, it is a sign that the business model or cost structure of the firm may be in for some heavy weather. Reduced financial expenses: A good reduction of financial expenses, which is overlooked by going to a net loss. Tax Position: The 2023 tax benefit would imply that the company may have recognized some tax relief as a result of some losses it has incurred; a relief that may release some cash flow, but not a strategy that can be sustainable as a benefit to better the profitability. Meaning: Cost Management: The firm has to critically review its cost structure and fish out possible efficiencies or cuts to align with the reduced revenue. Revenue Strategy: It is a strategy for revenue recovery. The strategy can either be through market expansion, income stream diversification, or re – pricing. Financial health monitoring: Turning to a net loss makes even more essential the monitoring of financial health and the management of the balance sheet to ensure the continued solvency of the company and its ability to meet obligations. Risk Assessment: Having a shift in such a gargantuan profit margin, it is the need of the hour to relook into and readdress the risks to keep further declination in its place. Investor Relations: The organization also will have to talk to its investors on what caused the drop in revenues and the modalities through which it will revert to profitability.
Illustrations are not included in the reading sample
Figure 8 – Cash Available
FY 2021/2022 vs. FY 2022/2023 Cash available for debt service rose from €218.8 million in FY 2021/2022 to €237.5 million in FY 2022/2023. This is an increase of 8.5% over the past year, suggesting that the company has better ability to service its debt. LTM Mar 2023 vs LTM Jun 2023 So comparing the prior twelve months to March 2023 with the prior twelve months ending in June 2023, €215.5 million becomes €237.5 million. This compares to an increase of 10.2% over the period and suggests that it is over a shorter time frame that the company's cash position has been steadily increasing. Observations and Analysis: The company is doing well, with cash availability improving gradually for debt servicing. This is an indication of fine management of liquidity and, for sure, an enhancement of the operating cash flow. The increasing trend is better for creditors and investors in that the implication is that the company is becoming more capable of servicing its debt without stressing its financial resources. The data may also be showing that the company has not taken on any other debt in the period, or has been paying off some of its debts, thus the increased cash at hand that can be used to service the remaining debt. Since both graphs depict a similar uptrend, this would be evidence of performance stability across different time frames, which might possibly imply stability in operations and management of the company. This positive trend in cash available for debt service is encouraging as it provides the company with more financial flexibility.
Table 2 – Balance Sheet InterMediaCo 2022 – 2023
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Income and Operation Cash Flow The net profit increased from €1.9 million in 2022 to €9.6 million in 2023. Cash flow from operations before changes in working capital decreased slightly from €63.4 million to €47.1 million. After which, net cash from operating activities, net of working capital changes, increased from €21.6 million to €38.4 million. Investing Activities Cash flow used in investing activities was therefore relatively modest at €(0.2) million in 2023, slightly down from €(4.0) million in 2022. Financing activities The major change in financing was of €(20.9) million in 2022 and €(10.2) million in. It is evident that there were some important debt repayments during 2022, but they haven't taken place in 2023. Cash and cash equivalents The cash and cash equivalents at period – end almost doubled from €25.5 million to €50.5 million, depicting a considerably strong position in cash.
Illustrations are not included in the reading sample
Figure 9 – AdjustedRevenueBreakdown
The pie chart above presents the revenue composition for FY 2022/2023 after the restatements. The total revenue aggregates to €257.2 million. Revenue Composition Media Rights (€203.2m – 79.0%): The most significant source of revenue is from media rights. These rights would presumably be from broadcasting the games on television and other forums. It can be broken down as: Serie A / TV rights Media Rights of UEFA
Other Media Rights Sponsorship (€53.4m – 20.7%): It is the second item of income and can consist of shirt sponsors and technical sponsors, plus regional, national and European/global sponsorship. Other Income (€0.7m, 0.3%): Almost negligible, this remains a part of the Revenues and includes other miscellaneous sources not properly classified either under Media Rights or Sponsorships. Observations Media Rights Dependency: The company is extremely skewed toward media rights. This can pose a major risk if there is a major change in the broadcast landscape or, with the performance of the team dropping, reduce its pull for the broadcaster and ultimately the audience. Diverse sponsorship portfolio: The revenue from sponsorship is well diversified across different geographic regions and types, which is healthy for stability and reaching a different set of markets. Other Income: Other income amounts to a mere pittance compared to the other sources. This could, therefore, indicate avenues of growth in merchandising, licensing deals, or commercial operations. Strategic Implications Leverage Media Rights: That an obvious dependency on media rights does exist, but a club has to obtain the maximum from such deals and explore all avenues in driving revenues—both digital media and international markets. Make Sponsorship Opportunities: Since sponsorships too account for a major share of the revenues, there may be avenues to further expand this share through innovative partnerships and expanding into sectors and markets which were never imagined before. Revenue Diversification: The club might consider means of building on diverse sources of income that would include strengthening fan engagement activities, creating their media platforms, or even investing in other different commercial ventures.
Table 3 – SWOT Analysis InterMediaCo( made by Author)
Illustrations are not included in the reading sample
The SWOT Analysis above indicates the current situation of Inter Milan in the market. It is highly important to keep in mind that Suning, Inter’s main investor is highly dependent on the Chinese government regulations. On the positive side InterTeamCo’s high reputation opens up opportunities to enter new markets.
The SWOT analysis summarizes the marketing strategy of InterMediaCo in North America; it is a focus on key aspects to add to the corporation's success in that market. Knowledge of those facts is the key to methodologies and effective judgments.
The Strengths emanating from the SWOT analysis clearly indicate that InterMediaCo is already an established brand with diversified product ranges, and this will be an edge to cut into the North American market. The drive will be on maximizing the brand, using the current equity along with the strategic associations that the company already has with leading figures and reputed companies for greater visibility and better engagement.
On the other hand, under Weaknesses, potential setbacks are spelled out including limited physical presence and overreliance on external media deals. Identification of such weaknesses generates gaps in the market that ensure that the required resources are diverted towards the areas on which they are best served for subsequent long – term growth.
Not just generic important trends, such as the growth of football in North America, or for that matter opportunities for digital engagement and regional partnership. All these identified opportunities facilitate the way for InterMediaCo to further extend the fan base and strengthen community loyalty; these are two very important strategies toward the overall strategy of increasing and keeping market share.
The final section on Threats reveals external threats, such as aggressive competition and uncertain economic dynamics, that are likely to impact the market penetration and success in operations. Identification enables the making of preparedness plans and strategic response to threats likely to be faced by InterMediaCo.
Table 4 – 4P's Model InterMediaCo, (Made by Author)
Illustrations are not included in the reading sample
The marketing strategy of InterMediaCo is based on the principles of Product, Price, Placement, and Promotion and is very mapped out toward creating brand recognition and involvement in the North American market. The product line varies diversely to cater to several aspirations of the fans and create multiple revenue streams. Pricing strategies are thoughtful with easy access and optimized for sales. The product is placed in and out of stadiums, in stores, on the internet, and in social media, with wide reach and great engagement. The promotional strategy, from communication through advertising, sponsorship, events, and public relations, is fully inclusive and effectively boosts visibility for the brand at every level of community interaction. All these strategies place InterMediaCo for its expansion in the markets with sustained growth in North America.
Product
It's designed to engage and satisfy a broad spectrum of products. A football match is, of course, the main offering, which encapsulates the element of live entertainment as well as provides a focus for fan engagement. Merchandising brings in unleveraged source revenue generation, brand reinforcement, and improvement in loyalty. The Inter Club Membership Programs come with exclusive benefits meant to serve as a license for the fan community to foster the feeling of community and belonging. Media content encompasses match highlights and behind – the – scenes material, which is so vital in keeping the fan base engaged, especially the international fans. Finally, business sponsorship packages are associated with the brand and increase visibility and reach through agreed commercial strategies.
Price
The pricing strategies embedded in what InterMediaCo has to offer are crafted in such a manner as to achieve the right balance between accessibility to and revenue of the same. Prices of tickets are varied based on the importance of matches, location of seats, the level of competition, and relative hospitality packages that are associated with the optimal sales. Merchandise pricing is set to remain competitive, but at the same time, reflect the cost of production and price value in the marketplace. Broadcasting and media subscription prices are dependent on the deals made with the broadcasters; the latter thus depends on the accessibility and reach of InterMediaCo's content. In turn, it would help the company gather maximum revenues accruing from the sport while on the other hand it would keep a broad and engaged fan base.
Placement InterMediaCo uses multiple channels to make their products available to fans. The stadium is the main point for live matches and fan experience, important for tournament tickets and in – stadium promotions. Physical and online official stores for wider merchandising support and reinforcement of brand presence. Virtual channels represented by an official website and e – commerce allow broadcasting the brand globally and easy buying of products. Social media are available for real – time interaction, marketing campaigns, and direct contact with fans. They provide large and interactive coverage.
Promotion
InterMediaCo is diversified and has different promotion strategies. Advertising on every media platform's promotion campaigns serve to create brand visibility and draw new fans. Sponsorships at the highest level of companies, such as Pepsi, Delta, Chipotle, and Bank of America, create mutual benefit, and their brand exposure is increased. Sponsored events and fan engagement activities, such as community sports days and interactive social media campaigns, assist in contacting fans directly and creating fan loyalty. Public relations are designed skillfully to protect the brand's image in media and public communication for positive and easy visibility.
Products examples:
Illustrations are not included in the reading sample
Figure 10 – Official Merch (Scarf)
Illustrations are not included in the reading sample
Figure 11 – Official Merch Examples
Club memberships:
BLUE PACK – A fully digital offer: an area with reserved access where it’ll be possible to feast your eyes on exclusive Inter Media House content: extended highlights, videos dedicated to the MVPs in our matches, historic games. There will also be interactive experiences for you to enjoy: the Goal of the Month vote, specific contests, the San Siro virtual Tour and five online games which will be launched over the course of the season. The price is €10.
BLACK PACK – In addition to the digital offer of the Blue Pack, this pack includes a Welcome Kit to which you’ll be able to add up to four different limited edition “add – ons”: a hoodie, t – shirt, family pack and Inter Club membership card. Furthermore, those who purchase the Black Pack will be eligible to buy tickets for the biggest Serie A and Champions League games during periods when sales are restricted. The price is €45 for those living in Italy (plus shipping costs for those living outside of Italy).
YELLOW PACK – Everything in the Blue Pack offer is included. Furthermore, there will be the opportunity to take part in contests where the prize of accompanying the players onto the pitch before matches or giving them a high five as they take to the field to warm up will be on offer for the youngest supporters. All this plus packaging aimed at Under 14s. The price of the Yellow Pack is €35 for those living in Italy (plus shipping costs for those living outside of Italy).
Illustrations are not included in the reading sample
Figure 13 – Business Model Canvas, Made by Author
The BMC for InterMediaCo highlights the strategic framework for the business. The critical relationships are the partnerships with brands like Nike and Pirelli and platforms like eBay and other broadcasters. The key primary activities are the hosting of football matches and youth development and marketing, while the supporting resources are the talent of the players and the brand reputation. The company's unique value propositions to its customers will be entertainment, something to boast of, and the community's impact. The creation and capture of customer value will be derived through membership programs and offers and is experiences. InterMediaCo will reach its consumers through the use of a stadium, online platform, and other social media.
The cost structure will be through the use of high player salaries, marketing, and operations while the revenue streams are guaranteed as the revenues from broadcasting rights, matchday revenues, and revenues from merchandise, which ensures balanced and sustainable business.
Illustrations are not included in the reading sample
Figure 14 – Porter's 5 Forces (Rossi, s.f.)
The Porter's Five Forces analysis for InterMediaCo shows it operates in an environment shaped by the following major forces: the supplier's impact varies. It is not strong in terms of technical suppliers, while sponsorship and pay – TV suppliers are strong, as are the football players—very strong, because of highly critical and expensive supplies; the impact of the buyers is very low since the demand for football is relatively inelastic: the fans do not care that much about the money; the threat of substitutes is low but exists since the other professional sports cannot offer the same excitement and passion as football; the barriers to entry are high and very high, coming from both technical and economic/financial/managerial issues, which means that the existing teams are protected from the threat of new entrants; the rivalry among the existing football teams is therefore severe, since there is a high competition for the attraction of talent, sponsors, and fans. In such an environment, resources and relationships are strategic in their management and development toward maintaining and growing market share.
2.2 Characteristics of Business Process
Analysis of market and industry
First of all, it is required to have a deep understanding of what is football and what does it precisely sell.
The first definition of football is the following.
Football refers to sports equipment manufactured from synthetic leather material, such as polyurethane and polyvinyl chloride (PVC) and stitched around and inflated rubber or butyl rubber bladder. It can also be created using high – quality stitching, durable body, and various specialized features for effortless handling, passing, and shooting. This term covers the first definition of what a football is.
The following term of football, as a sport and subsequently as a business, is the one in our interest. It is very important to know the difference due to the nature of this work.
A game played between two teams of eleven people, where each team tries to win by kicking a ball into the other team's goal.
And what does it sell? Where does the revenue come from?
The main sources of income include:
Matchday Revenue:Tickets at the stadiums for single matchdays and hospitality and premium sitting packages for the entirety of the season.
Broadcasting rights:License agreements sell usually to television networks and digital streaming platforms.
Commercial Partnerships: Sponsorship deals with commercial partners. The commercial partners receive exposure while the teams receive financial compensation. The deals are in exchange for; Shirt sponsorships, stadium naming rights, brand exposure and other branding opportunities.
Merchandising and Licensing: Sales of branded merchandise. Jerseys and accessories are the most noticeable ones. License agreements in order to use logos, trademarks and other intellectual property rights. Media and Content Rights: Revenue from the production and distribution of original content.
The previous ones are the ones that will be addressed during this work, but there are other sources of income such as; players transfers, hospitality and events and development of youth academies.
Market Overview
Nowadays, the key positive aspect contributing in a positive manner to the market is the increasing demand for football due to the rising number of people taking part in professional football tournaments and leagues. Also, rising awareness regarding the need to increase levels of physical activities and games, which include football, basketball, cricket, and others to reduce weight and remain fit, is expected to drive the growth of this market during the forecast period. The rising involvement of people in playing football, which can further aid in promoting bone strength and building flexibility and endurance, also help to determine the growth of the market. Putting all these aside, the growing health consciousness among the mass is to avoid the occurrence of several chronic lifestyle disorders like obesity, arthritis, thyroiditis, and cardiovascular diseases caused due to sedentary life habits. Moreover, an increasing trend of adopting physically fit activities as a part of taking care of oneself is further moving the market growth forward. Moreover, growing investment by sports agencies towards infrastructure improvement at current stadiums, parks, and club grounds to bring more participation of citizens in different outdoor games is strengthening the growth of the market.
"Football Market Size was valued at USD 2.2 Billion in 2022. The Football market industry is projected to grow from USD 2.3 Billion in 2023 to USD 3.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.50% during the forecast period (2023 – 2032). The expansion of the football infrastructure and the promotion of player participation at all levels, are the key market drivers enhancing the market growth.
The business is acknowledged with being driven by the development of the football infrastructure and the promotion of player engagement at all levels. The industry is expected to perform well over the upcoming years as a result of the popularity of football, the rise in health consciousness, and the expansion of football play as an athletic activity. Football is among the most widely watched sports in the world. The projects and marketing campaigns hasten market expansion. These programs are increasing interest in and popularity of football, which is driving up spending on the game. There are more women's football competitions and more cash is being allocated to the sport. For instance, women's football is rapidly gaining popularity in the EU and the UK. The Football Association confirmed one of the key deals for the Women's Super League television rights in May 2022 with Sky Sports and the BBC. As a result, the game will probably gain in popularity among both men and women. Key companies actively pursue new product development and sustainable technology in order to introduce new goods with enhanced functionality and capacity.
It is projected that greater product releases and R&D initiatives will boost market expansion.
The global market for indoor football is growing in popularity, opening up new chances for the key industry players. Favorable reviews of the futsal indoor football variation are mostly coming from Europe. Futsal, a five – a – side version of football, is a thrilling and engaging game. The popularity has also grown as a result of the 2021 FIFA World Cup. Additionally, developing nations like India are becoming more and more receptive to indoor football, or futsal. Futsal is still being developed beyond the projected time frame, according to the All India Football Federation (AIFF), which believes that this compressed version of the game has immense potential in India.
The growing popularity of football as a result of people's greater participation in professional football leagues and competitions is one of the main factors favoring the market. Additionally, as more people learn the benefits of being active and participating in sports like football, basketball, and cricket to lose weight, stay in shape, and increase stamina, the market is growing. In addition, the market is growing as more individuals play football since it helps build flexibility, endurance, and bone strength. The general public's growing health awareness concerning the avoidance of many chronic lifestyle disorders like obesity, arthritis, thyroiditis, and cardiovascular diseases that are brought on by sedentary lifestyle habits is also offering a good market perspective. The growing trend to incorporate physical fitness activities into self – care routines is causing the market to rise. The sector is expanding as a result of sports organizations spending more money on enhancing the existing stadiums, parks, and club grounds to draw spectators to enjoy different outdoor sports. Thus, driving the Football market revenue.
Football Regional Insights
By region, the study provides the market insights into North America, Europe, Asia – Pacific and Rest of the World. Europe Football market dominated this market in 2022 (45.80%). This is explained by the significant growth in consumer expenditure on football – related goods, such as football shoes, in European nations and the popularity of the sport of football there. Football, which is among the top 5 sports in popularity across Europe, is one of the most popular sports in nations like Germany, France, Poland, Bulgaria, Romania, and Italy. Excellent distribution networks are shared by Adidas, Puma, and Nike. Adidas and Puma are based in Germany. The regional market is expanding due to the game's popularity, the prominence of important participants, and increased consumer spending. Further, the German Football market held the largest market share, and the U.K Football market was the fastest growing market in the European region
Further, the major countries studied in the market report are the USA, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Global Football Market: North America
The North America Football Market accounted for the healthy market share in 2022. Demand for football among all age groups was significantly accelerated by the growing number of football players and clubs. Because of this, there is a significant chance for foreign firms that manufacture footballs to grow their operations in the area. Further, the U.S. Football market held the largest market share, and the Canada Football market was the fastest growing market in the North America region.
The Asia Pacific Football market is expected to register significant growth from 2023 to 2032. The beginning of national and international football competitions and the rise in popularity of sports in these areas are credited with this. Association participation and sponsorships are also contributing to the market's expansion. Moreover, China’s Football market held the largest market share, and the Indian Football market was the fastest growing market in the Asia – Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Football market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Football Industry must offer cost – effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Football Industry to benefit clients and increase the market sector. In recent years, the Football Industry has offered some of the most significant advantages to medicine. Major players in the Football market, including Adidas AG, Baden Sports Inc., Decathlon Sports India Pvt Ltd. (Decathlon S.A.), Formative Sport, Franklin Sports Inc., Nike Inc., Nivia Sports, Puma SE (Artemis S.A), Select Sport A/S, UMBRO (Iconix Brand Group), and Wilson Sporting Goods Company (Amer Sports), are attempting to increase market demand by investing in research and development operations.
Nike Inc. (NIKE) creates, sells, and provides men, women, and kids with sports footwear, clothing, equipment, and accessories. It sells and distributes a range of goods for sport. as well as sports and recreational pursuits like football, baseball, cricket, lacrosse, skateboarding, tennis, volleyball, wrestling, walking, and outdoor activities, as well as a range of clothing with officially authorised logos from collegiate and professional teams and leagues. The corporation sells these goods under a number of labels, including Converse, Jordan, and Nike. Nike markets these goods through its corporate retail stores, online shopping websites, independent distributors, licensees, and sales reps spread out around the globe. Additionally, it sells these goods on its online store, nike.com. It is present in the Middle East, Africa, Asia – Pacific, the Americas, and Europe. In the US, Beaverton, Oregon, serves as the home of Nike. For the 2022 – 2023 season, Nike introduced a new High Visibility Premier League ball in October 2022. The new winter ball uses the same Aerowsculpt technology as the regular Premier League 2022 – 23 ball to boost visibility.
The athletic goods and equipment company Puma SE (Puma) creates, develops, and sells footwear, clothing, and accessories for men, women, and kids. The business sells goods under the PUMA, stichd, and Cobra Golf brands. Additionally, it grants licenses to numerous independent businesses so they can manufacture and distribute accessories, watches, and eyeglasses. Through company – owned and authorized retail locations, authorised online marketplaces, and wholesale, the business sells products directly to customers. Additionally, Puma supports international national teams in a number of sports. It operates in the Americas, Asia – Pacific, and Europe, Middle East, and Africa (EMEA). Herzogenaurach, Bavaria, Germany, is home to the Puma corporate headquarters. To commemorate the start of their collaboration, Lega Serie and the international sports brand PUMA presented a new match ball in June 2022. Major Players
Key Companies in the Football market include:
– Adidas AG
– Baden Sports Inc.
– Decathlon Sports India Pvt Ltd. (Decathlon S.A.)
– Formative Sport
– Franklin Sports Inc.
– Nike Inc.
– Nivia Sports
– Puma SE (Artemis S.A)
– Select Sport A/S, UMBRO (Iconix Brand Group)
– Wilson Sporting Goods Company (Amer Sports)
All of the previous mentioned, they are sports good manufacturers. They produce footballs, shirts, gear, equipment, boots and other accessories. They establish alliances with clubs all around the world. They provide the teams with all the needed equipment in exchange, commonly, for revenues in merchandising.
Adidas, Nike and Puma dominate the market share, since they count in their catalogue with the best and most popular teams around the world.
Let’s take as an example Adidas; they are one of the main sponsors of the spanish giant, Real Madrid. They also sponsor the english team Manchester United. It is crucial to understand that even though both teams are provided with the same quality of products, the deal values are not the same. What’s the reason behind it?
It can be attributed on the free market and specially on demand and supply. According to their Financial Statements, the Madrid based team earns 120 million Euros per year, while the Mancunian club earns 106 million euros anually. This 14 million gap between teams could be put down to the recent sporting success of the white team, while on the other hand the "Red Devils" had been recently struggling to win silverware in the biggest stage.
It is important to keep in mind that both teams are the highest earners in kit supplying partnerships, not only for Adidas, but from all companies and all teams in the football world.
Global Competitors
Table 5 – Top 10 kit supplier deals for the 2023/2024 season (Benchmark, s.f.)
Illustrations are not included in the reading sample
Analysis of the table
First and most important, our object, Inter Milan, is not figured in the top 10, by a considerable margin.
Let’s do a breakdown of the table.
– Five out of the top ten earners are english. This is due to the big popularity of english football all around the world. The English Premier League is the top earner in broadcasting revenues due to their contracts with their respective television networks. In simple terms, more popularity equals more exposure and this is reflected on better commercial deals.
– The only Italian team on the list is Juventus F.C, earning 55.1 million euros per year.
– According to Inter Milan financial statements, the Technical Sponsorship Revenue increased by €4.4 million (+70%) to €10.6 as a result of the described renewal of Nike technical sponsorship (for the period 2024 – 2031).
– In July 2023, Inter announced the extension of the partnership with Nike until 2031, being their technical sponsor since 1998. The previous deal was for 12.5 million euros per season. The current one is for 26 million euros per year. This could be attributed to Inter’s recent sporting success. In addition to this, €3 million in add – ons per season could also arrive in Inter’s coffers. These would be contingent on shirt sales.
– Add ons are bonuses are extremely reliant on the club’s on – field achievements.
The new agreement, renegotiated under more favorable conditions, provides for the Group a fixed annual fee ofEuro 21,250 thousand – with reductions of 25% and 50% respectively in the sports seasons in which the Parent Company's men's first team does not participate in the UCL and in those in which you do not participate in any of the European competitions currently in force – and variable fees directly related to the achievement of certain sporting results of the men's and women's First Team ".
After breakdown analysis, the following can be considered:
The technical sponsor desire as much exposure as possible. The undoubtedly best method to be world viewed is the participation in the UEFA Champions League, but in order to qualify and take part of it, teams need to obtain certain position in their domestic leagues. In Italy, Spain and England, teams who ranked 1 – 4 in their respective leagues during the season, will qualify directly to the next season’s UEFA Champions League group stage. Broadcast deals drove the commercial revenue of UEFA’s three club competitions (UEFA Champions League, Europa League and Conference League) to about 3.6 billion euros ($3.9 billion) during the 2022/2023 season. A global audience of 450 million was expected to watch the Final, according to UEFA, which was played in Istambul between Manchester City and Inter Milan, last June 10, 2023.
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Figure 15 – Healthiest Football Clubs as Brands (Perception) (FootballIndex, 2023)
The table is showing the brand of a Football Club Rating Scores in three different markets. Through the arrows, It is showed if the score has increased (green) or decreased (red) as compared to the last season. It looks like the sample size is about 4000 – 4500 in every season for Italy and the USA, with 2100 in the '22 – 23 season and 1500 in '23 – 24 for China.
They symbolize brand health, which is likely to represent everything from public opinion to financial stability, globa10 reach, and possibly other marketing metrics that could factor into determining such a thing.
Analysis of Inter F.C. in the USA Market
In the US market, 'Inter F.C.' is rated 6.4 for the '23 – 24 season, meaning a huge difference from the 3.5 it scored in the '22 – 23 season. This is marked by me in the graph with a green arrow and relates to one of the outstanding positive dynamics on the USA market. The 'Inter F.C.' finds a position at the 10th place in the USA market ranking, and this doesn't seem to suggest that it is among the best clubs when considered in this index with brand health; however, it has shown large improvements.
The following are the measures that can be used to further enhance the rating of Inter F.C.:
Brand Engagement: Grow the engagement of the fans through social media and fans' events, along with adaptive content developed for them. The activity of the fans is a driver for brand perception.
Market Presence: Invest in marketing campaigns in the USA. The investment could include the establishment of partnerships with American brands, sponsorship of events, or featuring in popular US media outlets.
Performance and Stars: Success on the pitch translates into brand health. Signing high profile player or major victories will increase visibility and positive sentiment.
Engage in community programs: It refers to taking part in community outreach programs or charity – based initiatives. This not only helps in building the brand image but also helps to establish a stronger bonding with the local community.
Develop various kinds of merchandising strategies to respond to US market needs. Exclusive merchandise may help in developing interest and building brand affinity.
Enhance the overall experience for fans in person and on the web, ensuring that fans have a great experience with the club.
Strategic Partnerships: Create strategic partnerships with US – based sport teams or celebrities in order to maximize the cross – promotion opportunity.
Youth programs; invest in youth programs or a football academy that might help build a long – term fan base and might develop talent from the locality.
Competitive Analysis: Inter F.C.
Conduct an analysis of what differs in the activities of the top – ranked clubs and would try to adopt similar practices that match the capability and values of Inter F.C. in the US market.
This will be crucial in the tracking and adjustment of these recommendations on feedback and data – driven results with the aim of brand health improvement in the USA for Inter F.C.
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Figure 16 – Merchandising Revenue (UEFA)
Merchandising Revenue
The data shows that merchandising revenues are highly polarized among top clubs, with a clear gap between the highest earners and others. The chart measures both kit manufacturer sponsorship revenues along with total merchandising revenues. There’s a significant increase marked in this period for some clubs, which indicates strong brand growth and market penetration.
A note is made about the strong 26% growth in merchandising revenues, indicating that all top – division clubs generated considerable revenues in this area. However, the kit manufacturing revenues remained stable, suggesting that the growth is primarily driven by merchandising efforts.
The clubs are ranked by the total revenue earned, and percentages are used to indicate their standing relative to the previous period's revenues. The highest earners have a larger bubble, indicating a larger share of the merchandising revenue.
Regional Competitors
Italy and Italian football have captured the imagination of writers and fans across the globe. The Italia ’90 world cup reaffirmed Italy’s standing as a world power in football. It also marked a turning point in global sport. At the end of the 20th century, global sport went through a period of deep transformation. In parallel to similar process taking place elsewhere in politics, economics and society, sport was entering a period of de-regulation and commodification, which impacted national leagues and local fans. Despite the intensification of transnational global networks resulting from de-regulation, individual nation states still hold significant power. Likewise, national leagues are still significant to football clubs despite the growth of global markets and transnational competitions. Yet these global processes of commodification and de-regulation have impacted fans in vastly different ways.
Table 6 – Top 5 Technical Sponsors Deal in Italy (Finanza, s.f.)
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Previously, we did an analysis on which teams earn the most for technical sponsors. We saw that the only Juventus was on the top 10 top earners (55.1 with add – ons. City rivals, AC Milan, earn 30 million per season. Before the new deal, FC Inter Milan was earning 12,5. Now the new deal is for 26 million euros plus variables. Following the big three (Inter, Milan and Juventus), the capital teams (Roma, Lazio) complete the Italian top 5 earners for technical sponsors. It is quite noticeable the gap between the 3rd and the 4th. Inter is the only Italian team currently sponsored by Nike, while the other main and most recognizable (Puma, Adidas) sponsor two team each.
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Figure 17 – Technical Sponsors Distribution in Italy (TransferMarkt, s.f.)
The previous graph shows the distribution of technical sponsors in Italy’s top flight league.
There is a big presence of Italian brands, such as Lotto, Kappa and Zeus.
Main Sponsors in Italian football
Jersey Sponsors
The Table indicates in the first column the Club, in the second column the partner and in the third column the deal value per year. It is also important to keep in mind that Inter’s deal is an estimate of the possible deal with Qatar Airways as the main shirt sponsor for the 2024/2025 season. Their current deal with Paramount is for 12.5 million. All numbers are valued in Euros.
Table 7 – Shirt Sponsors Deals in Italy (Finanza, s.f.)
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The previous table shows the amount each team earns for their main shirt sponsors
According to Calcio e Finanza and other sources, Inter is close to signing with Qatar Airways already became their official global airline partner this season, paying 1.5 million euros, and is reportedly offering around 20 million euros per season to become their main shirt sponsor. Currently, the space on the front of the uniform is occupied by Paramount+ (which pays 12.5 million euros in 2023/24), while for the next season it could host Qatar Airways. In fact, in the contract with Inter there is a clause that can be activated until January 2024, which would allow the Qatari club to become the main sponsor for 18/20 million euros per season.
*Estimate, Qatar Airways as the new main sponsor starting next season 2024/2025, not official.
If this agreement were signed, Inter would move into fourth place in terms of revenues from the main shirt sponsor in Serie A, behindJuventus(45 million),Milan(30 million) andFiorentina(25 million). It should be remembered that Jeep may decide not to pay at least 4 million euros in 2023/24 , due to Juventus' failure to participate in the Champions League and Europa League. It should also be considered that for the Bianconeri and the Viola, both agreements were signed with related parties. However, if Juventus's agreement reflects the market value of the currency, the agreement between Commisso's Mediacom and Fiorentina appears overvalued. As far as Milan is concerned, the Rossoneri renewed the agreement with Emirates in December 2022, for a contract that started in the 2023/24 season.
This chart was made considering all sponsorhips, not only main sponsors.
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Figure 18 – Sponsors in Italy (Sectors) (Statista, s.f.)
As for 2019, this was the split of football sponsorships in Italy:
Illustrations are not included in the reading sample
Figure 19 – Percentage of people intersted in football in Italy (Statista, s.f.)
Analysis of the Graph
Frequent Engagement (Blue Segment):18% Those who watch football every day or almost every day form a key demographic for broadcasters and streaming services, as they represent consistent, dependable viewership. Financially, this group is likely to subscribe to premium sports packages and merchandise, contributing significantly to revenue.
Weekly Engagement (Dark Blue Segment):Comprising 18% of the population, this segment is less consistent than the daily viewers but still represents a strong market for regular advertisers and weekly broadcasts. They may also purchase season passes or occasional game tickets, contributing to steady revenue streams.
Occasional Engagement (Light Blue Segment):The 23% who watch football occasionally can be seen as a potential market for major tournaments and marquee matchups. They are less likely to buy subscriptions but may contribute to pay – per – view revenues and boost audience numbers for advertisers during high – profile games.
Interested Non – Viewers (Red Segment):The 2% who are not currently engaged but would like to be could represent a growth opportunity. They may become future consumers of football content and merchandise with the right marketing strategies.
Not Interested (Green Segment):39% The largest segment, which is not interested in football, presents a challenge and an opportunity. This segment may require targeted marketing to grow the sport's popularity, which could expand the overall financial base in the long term.
Financial Implications:
Subscription Services:The frequent and weekly engaged groups are likely to invest in subscription services, driving predictable recurring revenue.
Merchandising:Engaged fans are more inclined to purchase merchandise, offering high – profit margins for football – related products.
Advertising:Advertisers may pay premium rates to access the highly engaged segments of the audience, potentially leading to increased revenue from broadcast deals.
Market Expansion:The occasional viewers and interested non – viewers represent an opportunity to expand the market through strategic promotion and introduction to the sport.
Investment in Growth:Revenue from engaged segments can be reinvested into marketing and outreach to convert the 'not interested' segment and capitalize on the growth potential of those who show interest but are not yet viewers.
Football trends in US
"Soccer’s Growth in the U.S. Driven by Young, Diverse Audiences Soccer in the United States is hotter and more popular than ever. That isn’t opinion. It’s fact.
Driven by a young, diverse and digitally savvy demographic, soccer has grown by leaps and bounds since the 1994 FIFA World Cup was held on U.S. soil and Major League Soccer (MLS) was born two years later. The world’s most popular sport is expected to continue its upward trajectory with this summer’s FIFA Women’s World Cup in Australia/New Zealand as well as the 2024 Copa America and 2026 FIFA World Cup coming to North America.
While pickleball prides itself on being the fastest – growing sport in the U.S., soccer has a much higher ceiling and opportunity to shape the landscape of sports participation, viewership, engagement and consumption in this country.
“With a seemingly endless amount of sports content and programming available these days within seconds at your fingertips, you can’t argue with the data—everything from viewership to attendance, engagement and merchandise sales—that soccer is becoming immensely more popular in the United States, especially among Gen Z and Generation Alpha,” said Michelle Wilson, Isos Capital founder and co – CEO. “It’s time for brands, investors and organizations to continue to stoke this fire that is poised to turn into a roaring blaze with three major events on the horizon, including two occurring in our own backyard.”
Soccer fans are younger and more diverse than general sports fans in the United States, according to Morning Consult. More than half (54%) of the respondents who identified as soccer fans were under the age of 45, compared to NBA (51%), NFL (46%) and MLB (43%). MLS says it boasts the youngest fan base of any men’s pro league in the country.
Not only are U.S. soccer fans younger, but they’re also more culturally diverse, with 40% being fans of color, per Morning Consult. MLS reports approximately 30% of its fans are Hispanic or Latino.
That isn’t only true for domestic soccer in the U.S. A 2020 study by Equation Research identified 60 million fans of the Mexican National Team in the U.S., making El Tri the most popular national team in the country. Liga MX, Mexico’s top domestic league, nearly doubled the average U.S. viewership of MLS matches during the 2021 season, while the rivalry and relationship between the neighboring MLS and Liga MX expands further this season with the introduction of the interleague Leagues Cup.
Already boasting the second – largest Spanish – speaking population on the planet behind Mexico—currently 13% of the U.S. population speaks Spanish at home, and estimates are that by 2050 one in three people in the country will speak Spanish— soccer’s popularity is expected to further increase.
As consumers, Latinos in the U.S. currently represent a $1 trillion market, and their spending power is rising—6% compounded annual growth in the last decade, compared to 3% for the non – Latino white population.
“Latinos are becoming more influential consumers in the United States and many brands, organizations and leagues are benefitting from that with soccer benefitting the most,” Isos Capital founder and co – CEO George Barrios said. “It will be important to continue to find innovative ways to engage fans on both sides of the MLS vs. Liga MX coin because success for both, in a way, is dependent on the other. A rising tide lifts all boats and we’re seeing it throughout the U.S. when it comes to soccer, whether it’s the success and growth of the MLS, NWSL, U.S. men’s and women’s national teams, Liga MX or European clubs.”
The proof is in the data.
Both MLS and NWSL posted record attendance figures in 2022, with MLS welcoming more than 10 million fans, while the NWSL, which kicked off almost two decades later in 2013, eclipsing the 1 million mark for the first time. MLS continued its record – setting figures when the 2023 season recently kicked off as Atlanta United FC and Charlotte FC became the first two clubs in league history to have an attendance of 65,000+ on the same day, while the league welcomed a record 380,000+ fans opening weekend.
Coming off the heels of its 10th anniversary, the NWSL begins its 2023 campaign more popular than ever. The 2022 NWSL Championship Game was the most – watched game in league history, averaging 915,000 viewers on CBS network in prime time—a 71% increase from the prior year’s title game. National sponsorship revenue increased 87% in 2022 from the previous season, while viewership on Paramount+ jumped by nearly 30%. The league is also buoyed by a recent deal with Electronic Arts, which sees all 12 NWSL clubs included in the EA Sports FIFA 23 video game for the first time.
The NWSL, which is reportedly adding three franchises for the 2024 season at a price between $50 – 60 million, welcomed Racing Louisville FC, San Diego Wave FC and Angel City FC to the fold over the past two years, with the latter club, backed by a who’s who list of celebrity and athlete investors and owners fitting for Hollywood, poised to become the first women's team with a billion – dollar valuation.
Angel City FC isn’t the only NWSL franchise benefiting from increased investment, especially from big – name backers. Gotham FC welcomed Carli Lloyd, Kevin Durant, Sue Bird and Eli Manning to the club’s ownership group in 2022. Oscar De La Hoya and James Harden are investors in the Houston Dash. Naomi Osaka bought a minority investment in the North Carolina Courage in 2019. Jenna Bush Hager, Chelsea Clinton and Dominique Dawes are minority investors in the Washington Spirit. Patrick and Brittany Mahomes are part of the Kansas City Current ownership group.
MLS, which has tripled the number of its teams since 2004, has seen average club valuations rise 85% to $579 million since 2019 with LAFC valued at $1 billion, according to Forbes.
Coupled with the success of the U.S. men’s and women’s national teams—the USWNT have a record four FIFA World Cup titles—as well as many top American men’s and women’s players playing at premier clubs domestically and abroad, soccer continues to flourish with all eyes firmly fixated on the 2026 FIFA World Cup coming to the continent.
At the youth level, more than 810,000 players at the high school level played soccer during the 2021 – 22 school year.
Highlighted by MLS’ new 10 – year, $2.5 billion global rights deal with Apple and the NWSL’s soon – to – be – announced new deal after its current $4.5 million deal with CBS (and an additional $1 million with Twitch) is set to expire after the 2023 season, audiences, sponsors and leagues are well aware of the exponential growth and importance of the beautiful game in the U.S.
Given the growth already experienced in the MLS and NWSL coupled with the rising Latino soccer fan base in the U.S., the upside of team values, league values and soccer – adjacent businesses is significant, putting investors and stakeholders alike on notice." Current Social Media Presence
Comparison
Table 8 – Global competitors Social Media presence
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Inter Milan ranks at 13 globally and third in Italy, meaning that there is a big room for improvement.
Table 9 – Inter Milan's Social Media presence
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Inter Milan’s biggest social media presence is on Facebook and it could be attributed to the longevity of the website, although their presence on TikTok is the second biggest even though the app is the newest one along the mentioned ones.Marketing KPI’s
To further conduct analysis for the marketing projects, is extremely important to identify and understand the indicators that will be used.
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ROAS is a metric that shows the effectiveness of a particular advertising campaign or promotion channel. You can evaluate individual strategies and techniques to eliminate unsuccessful ones and allocate a larger budget for successful ones. ROAS is needed to make decisions on specific marketing actions, but not on the entire strategy, like ROMI.
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The metric is important for evaluating the effectiveness of promotion. ROMI gives businesses a broader view of marketing. If you evaluate the superficial result (the number of clicks, applications, etc.), you can decide that the campaigns are successful. However, after calculating the return on investment, it turns out that you spend more money on marketing than you earn from it.
Current Strategy in North America
Even though Inter Milan tries to attract and actively interact with the current fanbase, for example, giving the official status of Inter Club to the ones in New York (Inter
Club Manhattan), New Jersey (Inter Club Facchetti), Inter Club Los Angeles and Inter Club Toronto in Canada, the strategy has been non – distinguishable from the global strategy. Back in 2021, the club was supposed to play in Orlando a series of games but it was cancelled due to the COVID pandemic. The last game Inter played on American soil was on august 4, 2019 during the International Champions Cup (ICC), the well – known friendly tournament. At the moment, Inter has in their catalogue different American based sponsors, Paramount for example as the main jersey sponsor, but none of them are exclusively regional partners. Currently, Inter sell their official merchandising via Nike stores in the region and they do ship from Italy to North America.
Current Social Media Metrics
Table 10 – Inter Milan's Digital Results Highlights 22/23
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During the 22/23 season, Inter Media House achieved digital milestones, distributing 55,000 pieces of content across 24 channels. All this content generated 5.4 billion impressions and 280 million engagements, averaging 98,182 impressions and 5,091 engagements per post, with an engagement rate of 5.19%. The community grew to 64 million fans, boosted by a 102% increase on TikTok. Video content was particularly successful, obtaining 1.5 billion views, with overall views up by 165% and Chinese channels experiencing a 593% increase. Additionally, the new digital ecosystem saw 29 million page views and engaged 6.3 million users.
2.3 Project management. Increasing Brand awareness of Inter Milan
Opening of an Official Inter Milan Store
The opening of an official Inter store at a strategic location in the US would bring several benefits that can thereby greatly elevate FC Inter's brand presence, fan engagement, and revenue streams. Below is an analysis of these benefits
Making the Brand Visible and Authentic
Much of the brand promotion for the club comes from having an official Inter store in a high traffic area. This is key in the retention and development of brand recall with the existing followers as well as potential fans. The store deals in recognized products, hence clearing any doubts associated with the product liability of the brand. This, in return, establishes a lot of trust and loyalty among the fan base that feels confident to purchase.
Better Interaction with Fans
The store can be an excellent place to let fans engage with the club in ways that are impossible on digital. You can plan events such as player appearances, match viewing, or product launches within the store in a way that gives unforgettable experiences sure to win the emotional commitment of fans toward the club. The level of interaction has made features such as virtual reality tours or simply training session simulations at the Inter Experience go beyond the casual supporter and turn the fan into a passionate advocate.
A type of revenue stream is realized from the merchandise, apparel, and memorabilia that are sourced directly and sold directly. High sales can indeed be generated from marketing exclusive products and those available only in a limited edition to collectors or enthusiasts. The existence of other goods in the form of branded accessories and lifestyle items that an individual may use will attract a wide audience.
Community Building
An official store can function as the gathering place for local Inter fans so that in itself the feeling of belonging and camaraderie in the larger Inter community is created. Store activity can truly enliven through regular events and activities in such a way that fans not only form a hub of passion for the club but also potentially build long – lasting relationships. This results in stronger word – of – mouth promotion and more interest on the part of the fan base.
It can therefore be treated as a focus point for marketing campaigns and any promotional activity. Together with local businesses, influencers, and sports personalities, partnerships can go a long way in furthering the reach of the club to different target audiences. The store could itself become a landmark, and local tours and social media be employed to increase the visibility of the club.
Strategic Partnerships and Alliances
A premium location in the U.S. will bring a physical location that is able to partner with other locally based brands and businesses in a strategic manner. These may be co-branded products, joint offers, or partnerships in which there is co – sponsorship of events that raise the market presence and profile of the club. It will also build partnerships with other local sports teams and entities, which will accrue mutual benefits for the club and extend the club's reach. Market Research and Feedback The store allows room for first – hand customers' feedback and market research. What is learned about the U.S. fans' preferences, behaviors, and purchasing patterns provides headroom for an extension of marketing efforts and wider product development. Therefore, club product is tailored – made with the data – influenced approach so that the needs and desires of the American fan base are met. Long – term Brand Loyalty Investing in the physical presence of FC Inter in the U.S. therefore proves the spirit of commitment that the club attaches to the American market; an establishment of physical presence in communication is passing the long – term relationship of the club in the hands of American fans. Deep – rooted loyalty such kind of long relationship can help in creating as the fans will appreciate efforts by the club to reach them at an individual level. The loyalty created eventually results in continued support that.
The aim of companies when sponsoring a football club is to increase brand awareness and to increase revenue. The corporate sector also sponsors clubs to have their logo on the team’s jersey. Football fans across the world wear their team’s jersey and are like walking billboards for the companies who pay a high sum to have their logo on the kit. These are also valid arguments of why opening an official store would be benefitial. Opening a store would mean increasing shirt sales, therefore, Inter could get better main jersey sponsor deals since sponsors would like to take advantage of the situation.
Social Media maximization and collaboration with Influencers
This expanded reach will, in fact, be used to grow the club's fan base in international markets, including the U.S. Targeted Marketing In the instance of a popular influencer, Fabrizio Romano because of his high place in the football community, there is the achievement of a dedicated audience of very enthusiast people about football. Collaboration between them and FC Inter allows for targeting a niche of people who are very enthusiast about football through sponsored posts, previews of matches, interviews of the players among others, where exclusive content will be provided to show cases of achievements, activities, and values making the club relevant to the brand and increasingly appealing.
Authentic Engagement Influencers and popular social media pages have already established the trust and credibility among their followers. Once such pages endorse or collaborate with a brand, it is regarded as a real and meaningful recommendation. That authenticity, on the other hand, can do much to boost the brand image of FC Inter and deepen connections with the fans of the future. Just the much an influencer such as Fabrizio Romano, who reveals an exclusive look at behind the scenes at the club, to create an intimate and engaging look of the club to incite inclusion and loyalty among the fans.
Diversifying Content Strategy:A collaboration of this kind diversifies the content strategy of FC Inter. 433 and BR Football content is famous for being creative and engaging, which includes memes, match highlights, and interactive posts. Collaborations with them are granted to bring innovative, fresh content to the social media channels, thereby supposedly diversifying the club's digital presence and giving it a much lively and appealing view. Diversification can open new opportunities for attracting a wider audience and keep those already existing much more involved and entertained. Follow – Up
Event Promotion and Coverage:Influencers and popular pages will be great for promoting and covering special events, for example, match days, signing of players, and even fan events. Their participation will boost the reach and effect that special events have in terms of gaining more attention and participation from fans. For example, live – tweeting a match or giving real – time updates and commentary during a match will enhance the fan's experience and boost engagement at those epic moments.
Brand Partnerships and Sponsorships: Further collaborations with these influential platforms mean joint marketing and sponsorship. Any companies wishing to be associated with popular football entities will more easily partner with FC Inter after seeing them collaborating with popular and respected social media influencers. That may result in hefty sponsorship deals and joint marketing campaigns that are more beneficial to all the parties that are involved.
Fan Interaction and Feedback:As the influencers and popular pages in social media work as a two – way channel, it may be of collaboration value for FC Inter because it seems like a direct way of interaction with the fans and getting feedback from them. Interacting with the fans directly through Q&A sessions and polls or interactive posts will help the club get an insight into fan behavior and expectations on a larger scale, which will help in making marketing strategies more precise and tailored.
Community Building: Respected influencers and social media pages help build a much stronger community for the team. In fact, these collaborations will make the fan base feel a part of a bigger family in football. Fixtures updates, creative in engaging content, and direct interaction through posts will all be helpful in community and fan loyalty. Long – term Fan Interaction It will mean fan interaction over a longer time frame when the club collaborates with the influencers and the popular pages. This means that continuous posts and interaction will remind the club to the fans at all times, and they do not lose interest in it.
Long – term interaction by more reoccurring collaborations and consistency in updating content may ensure that FC Inter is remembered and followed by fans across regions.
Raffles: Launching raffles in social media could significate an increase in reach and followers on Inter Milan’s own pages.
Collaboration with the popular social media pages: 433, BR Football, and influencers: Fabrizio Romano benefits FC Inter in increased reach, genuine interaction, diversified content, and community building intensification. At this level, such collaborations are very crucial in achieving visibility that impacts the clubs, from attracting new fanbases to supporting the already existing ones, which assures continuous growth and a strong global appearance.
Strategic Regional Partnerships for FC Inter
FC Inter will have an opportunity to expand its brand reach, regional revenues, and fan affiliation within the US by fostering regional and national business relationships. Well – connected business relationships will establish a platform for FC Inter that could generate an easy exchange into the constituency, fast establishment of roots in the community, and continuous growth.
For example, partnerships with companies like PepsiCo and Chipotle Mexican Grill in the category of food and beverage can really make FC Inter take off and appealing. Co – branded promotions and in – stadium sales of popular products will be able to create an integrated fan experience, while its special deals and events will attract health – conscious people leading active lifestyles to the fan base of the club. These both not only bring in alternative streams of revenue but also place the club with brands that appeal to its desired demographics.
Technology and media partnerships with giants like Apple and Amazon could be a game – changer as the club looks to improve its digital approach. No dedicated application of a club, no thematic rows of Apple stores, and no sections for Amazon are imaginable without this kind of exclusive digital content. Streaming special club content on Amazon Prime Video and hosting the official presence of FC Inter in the Amazon store will only increase the reach and accessibility of the club to a global audience. This is only possible after the expiration of the current deal with Paramount.
In particular, partnerships in the hospitality and travel sectors with Marriott International and Delta Air Lines may provide an opportunity for special travel packages and themed lodgings to be reserved by the traveling fans to the games or events. These collaborations can enhance added value for the overall fan experience by adding convenience in travel and stay. Additionally, it would further the promotion of the club through exclusive promotions and in – flight content related to FC Internazionale. This would only be possible if it does not interfere with Inter’s partnership with Qatar Airways.
These partnerships give the cardholders added benefits, which are exclusive: early access to tickets, special events, and merchandising discounts. Co – brand credit cards and co – marketing could create increased brand loyalty with the affluent for more interest and financial growth.
Besides, local businesses and influencers are part of the centrality FC Inter employs in its regional strategy. These include partnerships with popular local eateries, sports bars, and influential content creators to ensure that there is a community buzz and buy – in for the team. Parties to watch matches, events for fans, and activations through social media influence allow FC Inter to be a household name in key cities.
This will be done by targeting partnerships with local community and culture organizations that are reflective of the team's demographic; this could include the Italian – American cultural centers and the youth soccer programs. Long – term loyalty among the fans and development of the sport within the areas of residence are only achievable through support for grassroots football development and marketing culture, thus ensuring that a fan base is sustained and kept highly involved.
Entertainment and lifestyle brands are also able to be a part of such partnerships, bringing value through the means of more deeply associated relationships with the likes of Nike or Netflix. Development can be made in both brands through a union of hands with Nike in comarketing and product line exclusivity. Though the collaboration with Netflix could bring about some short series or documentaries focusing on the club behind the scenes, it might be capable of pulling audience responses globally and helping tell the club story to uplift the digital brand. In other words, a strategic alliance with these companies, at the local and national level, helps FC Inter penetrate the U.S. market, thereby creating strong links with the community in order to achieve sustainable growth. This optimizes the collaboration's distribution networks, channel loyalty, and stakeholder bond enhancement, and it diversifies revenue streams and exclusive branding. These partners will get FC Inter to establish itself strongly for the long term in the U.S. market.
Events: Have the men’s team do a tour around multiple cities in North America in order to meet fans, sign merch, meet & greet and multiple activities in exchange for a fee. This would mean promotion for the brand and could increase fan loyalty through bonding.
Traditional advertisement:
The global football market is booming, especially after lifting the COVID restrictions. USA is finally interested in football, the world’s leader and most watched sport. The Copa America 2024 and the FIFA World Cup 2026 could and will settle Football (Soccer for the North Americans) as one of the main sources of entertainment in the country. FC Inter Milan must take the most out of this market. How can they attract new customers? First of all, the logical answer for this is sporting success, but from the financial and marketing views there are methods to attract customers aka Fans. If possible, acquiring North American players for the male’s first team, that aligns with the team’s sporting expectations could be a recommendation to take into consideration, due to the bond that these players would create with the fans. This could be translated into more visibility and exposure and ultimately in getting more or better deals with the existing partners and creating new alliances with regional sponsors. Ultimately, the main recommendation that will be addressed is the opening of an official Inter Milan Store in a strategic point in US.
In a football environment that keeps changing, strongly being overtaken by diversification along with the domination of youth in the fanbase, a strategic initiative is a must for FC Inter to capitalize fully on the boom. First and foremost would be the establishment of a store in the US in a strategically located place to tap directly, not only this growing fan base but also be a direct revenue stream and hub for fan interaction and brand visibility. Beyond this, FC Inter should consider a multi – pronged approach to maximize its reach and influence in North America:
1. Influencers Collaboration: The brand can harness great potential by associating with popular American sports influencers and celebrities; they, in turn, could help amplify the reach of FC Inter amongst its young target groups. These will help the club get more visibility from the massive followings they have on social media platforms.
2. Partnerships with Local Entities: These would range from merchandise co – branding to even including joint promotions or sponsorships linking FC Inter with other local businesses or brands. It is through this that FC Inter would be integrated into the community and, in turn, fostered for local support.
3. Optimum Utilization of the Social Media: Make use of social media such as Instagram, Twitter, and Facebook in an appropriate manner that will reach and sustain fans through exciting localized content. From the above, social media campaigns need to focus on club matches, behind – the – scenes coverage, and interactive fan engagement activities in order to create a lively virtual community. 4. Local Engagement Through Inter Clubs: Set up formal Inter fan clubs in all the major cities in the USA. The clubs could do watching parties, local leagues, and community development events that would show local identity and local loyalty towards the club. Further, such fan clubs may also be used as conduits for the distribution of club news and merchandising, implying that such news would further be in circulations of the fan base. Interactive Fan Events. These include organizing interactive fan events held in key cities with an aim of galvanizing the existing fan base and luring in new supporters. The event will bring popular players who have the ability to play with the present people and even give rewards for such experiences to relate directly to the club. This will give FC Inter leverage on the increasing popularity of football in the U.S., therefore growing brand presence by using the proposed recommendations to further consolidate long – term connections between the fans, new and existing alike. This kind of strategic engagement in the North American market would ensure that FC Inter grows their fan base but also establishes a strong, enduring presence in a very lucrative sporting landscape.
3. BUSINESS PLAN «BRAND AWARENESS OF INTER MILAN»
3.1 Implementation plan of the program «Brand awareness of Inter Milan»
Executive Summary
InterMediaCo
The Company was founded on 6 May 2014, as part of the operational and corporate reorganization of the entire F.C. Internazionale Milano Group, in order to strengthen the "Inter" brand through management and development of the business "marketing of historical audio – visual material, the Inter TV channel and sponsorship", previously operated by F.C Internazionale Milano S.p.A. and the licensing, merchandising, sponsorship and other operations relating to the Inter brand through the Internet and other media.
Buyer Persona: Men, between the ages of 18 – 24, mostly European, typically middle to high income, enjoys watching football games and has a deep connection/ attachment to their team.
Product/Service: Retail stores, Partnerships and Influencers/Media Content.
Target Market: North America, football fans, sports enthusiasts, and potential new supporters, as well as businesses looking for sponsorship and partnership opportunities with Inter Milan.
Problem: Existing fans in the region lack representation in their area and new football fans in North America want a football team to support in Europe but are not quite sure in which one to choose.
Solution: InterMediaCo will offer a media services tailored specifically for Inter Milan, including fan engagement initiatives, exclusive content creation, and digital marketing strategies and stores for them to get in touch with the team and have a sense of belonging.
Value Proposition: The project “Brand Awareness of Inter Milan” will improve Inter’s global presence and fan engagement through exclusive content, innovative media strategies, and comprehensive digital marketing. By providing fans with unique behind – the – scenes access and engaging content, they strengthen the bond between the club and its supporters. Their approach ensures that Inter Milan not only reaches a wider audience but also attracts valuable sponsorship opportunities, securing its position as a leading football club globally. With this method of operation, Inter Milan as a whole can maintain a consistent and powerful brand presence across all media channels. By having a store, brand awareness will be improved and new fans will be attracted.
Competitors: Other Italian teams such as Juventus and AC Milan and other european powerhouses like Real Madrid, Barcelona, Bayern Munich, Manchester City and others.
Revenue Model: Classical sales from retail and partnerships with local businesses.
Projects and Implementation
Project #1: Opening of an Inter Milan Store in the US
Objectives and Rationale
The general two primary targets behind launching an official Inter Milan store in New York and/or Chicago are to increase the sales and to improve brand awareness, and physical presence in the key markets will work on attracting not only local fans but also tourists. With already a large Italian American population in both cities, it will develop a bigger, stronger, and more interactive fan base. Of course, this is expected to boost merchandise sales and increase the general visibility of InterMediaCo in the North American market.
Site and Market Analysis
Venue Suggestions: New York or Chicago
New York:
Explanation: New York is a commercial city, so it has a huge football and is ethnically diverse. A huge international crowd and tourists make it an important strategic factor for brand visibility and merchandise sales. Areas Of Focus: High – traffic locations such as Times Square, Soho, or near popular sport venues like Madison Square Garden. The Fifth Avenue is one of the most expensive commercial streets in the world, simply because here pass many people every day, and this street is in itself a big reputation. Investment in this area is certainly an enormous exposure, but the selling volumes must also be justified in size. Fifth Avenue is one of the busiest sections only because of its location. It receives an average of 1,000 – 1,500 daily visitors, while this can go up at peak time, such as holiday. In one month: 15,000 – 30,000. As an area of high pedestrian traffic, there is definitely some potential customers to be attracted in Fifth Avenue. The company will have to make sure that the marketing and placement in the storefront will gain as much of this customer as possible, converting them into sales. Demographic: There is a considerable number of Italian American communities which would be a target to increase brand loyalty and customer engagement.
Chicago:
Explanation: Chicago is strongly associated with Italian Americans and has a strong sports culture. It is also quite central geographically to the Midwest, thereby having access to a much broader regional marketplace. Target Locations: Downtown Chicago, Magnificent Mile, or hotel located near sports venues like Wrigley Field or the United Center. The Magnificent Mile is another high – traffic shopping district. Visitors a day: 400 – 800. All in all: 12,000 – 24,000. Although slightly less than on Fifth Avenue, the pedestrian flow here on the Magnificent Mile is still a real business opportunity for foot traffic and sales generation. Demographics: Chicago also is home to a large portion of Italian Americans, again providing a good means of advertisement and further relation with a specific community.
As of 2024, the Italian population of New York is 2,330,336 and in Illinois 719,470.
Marketing and Promotional Strategies
A mixture of both digital and traditional marketing communication channels will be employed for the marketing and promotional campaigns for the new store in order to get maximum reach and impact.
Social Media:
Channels: Make use of InterMediaCo's current social media channels on Instagram and Twitter plus take advantage of its existing Facebook and TikTok. Content Strategy: Develop interesting content, for instance, behind – the – scene store setup, previews of exclusive merchandise, and interactive contests that build anticipation towards the grand opening date. Influencer Collaboration: Collaborate with local influencers and sports personalities to increase store opening promotion.
InterMediaCo Channels:
Website and App: Highlight the ads and countdowns on the Inter Milan website and of their app prior to the store opening. Email Marketing: Run targeted email campaigns to the subscriber base of InterMediaCo about special offers and events for the opening day of the store.
Advertisement in San Siro:
Matchday Promotions: Utilize LED boards and large screens during the Inter Milan home games to promote the newly – opened store in the US. Fan Engagement: Hand out promotional materials and merchandise coupons at the stadium to encourage fans to look in the store.
Local Ads:
City – Wide Campaigns: Initiate advertisement campaigns across New York and Chicago through billboards, ads on public transport, and in local media. Eventing Partnerships: Use local events and festivals to give a deeper understanding of the brand in the creation of buzz over the new store.
Anticipated Output and Success
Brand Awareness:
Greater Reach: A flagship store in a high – traffic area will provide much greater reach for the visibility of the Inter Milan brand in North America. New fans: By tapping into the local community and crowd with the Italian American demographic, one can expect to form new fans and gain a loyal customer base. Social Media Metrics: Monitor follower growth rate, rate of engagement, and mentions of the store.
Project #2
Social Media and Influencers
Objectives and Rationale
These are some of the most important goals to accomplish with collaborations with influencer accounts such as Fabrizio Romano, 433, and BR Football: maxed – out large reach and credibility through collaborations with Inter Milan to elevate brand visibility among North American audiences; working with influencers will become a mighty lever in the field of building authentic connections with wide and diversified fans and will lift brand awareness and engagement many times over.
Selection of influencers: Criteria for Selection
Relevance to Sports Industry: It is important that they are already part of the sports industry, more specifically football. This ensures that influencers are well respected and this allows them to be registered with InterMediaCo's target market. Followers Demographics: Influencers should have a huge following from North America, the majority of which should be potential Inter Milan fans. Rates of Engagement: High rates of engagement are important as they show a strong bond between you and the followers, from which an enhancement in the performance of the campaign may be derived.
Key Influencers
Fabrizio Romano: Well – known professional soccer journalist with a large following on various media platforms, including Twitter, Instagram, and Facebook. Audience: Primarily football fans, who value their statements, in addition to all the news of the signings, and any other related information about their favorite sport.
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Figure 20 – Fabrizio Romano tweet, 2024
The italian charges approximately $1,000 for a simple social media message and around $6,000 for a video post on his platforms.
Romano has a massive following across social media platforms:
Over 14 million followers on Twitter. Approximately 27 million followers on Instagram. Given his influence, having him promote a club regularly would significantly enhance the club’s visibility, potentially reaching tens of millions of football fans globally. His posts perform exceptionally well, often achieving high engagement rates far exceeding typical averages
433: A gargantuan football media handle on Instagram and Facebook, known for its quite energetic and entertaining flavor. The audience: A lot of football lovers, even those in the very young bracket, are very active on social media. One of the key activities in this partnership will be launching monthly raffles, for example, a signed Inter shirt and one of the requirements to participate would be to follow Inter on the designated social media or to comment under the post. The reasoning behind this is to have a greater reach taking into advantage their fanbase.
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Figure 21 – 433 Youtube video
Football by Bleacher: Global Leader within the Sports Media Brand; Expert at Creative, Viral Football Content on Social – Media Platforms. Audience: A large and diverse following of football fans, particularly in the North American market. Taking advantage of BR Football’s existing American fanbase, using the page to promote future events on American premises.
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Figure 22 – BR Football Instagram post
Campaign Strategies and Implementation
1. Co – Branded Content
Types of Co – Branded Content: Create co – branded posts, stories, and videos boosting the Inter Milan brand and product. Thematic Focus: Content of the original interviews, happening behind the scenes, previews and reviews, and platforms for interaction with the fans. Frequency: Regularly scheduled content publication on the timeline to keep the visibility and engagement consistent.
2. Exclusive Interviews and Features:
Interviews: Set up exclusive interviews for top players, coaches, and staff of the Inter Milan hosted by selected influencers. Features: Sharing exclusive content that will take the fans behind the scenes of the club, all the way from player profiles to training sessions and game – day preparations.
3. Interactive Social Media Campaigns :
Live Q&A Sessions: Host live Q&A sessions with influencers and representatives from the company to directly interact with fans and answer any questions they might have. Contests and Giveaways: Show fans a winning experience with Inter Milan merchandise, match tickets, and more exclusive prizes through contests and giveaways. Fan Challenges – Run interactive challenges through the app, such as skill contests or prediction games, which invite fans to unlock entry into the challenge by sharing content.
4. Match – Day Coverage
Live Scoring : Updated live scores and commentary in real time to provide an enriching Inter Milan’s match day experience. Postmatch Analysis: Postmatch analysis to keep all fans informed and up to date with match details and recaps.
Expected outcomes and key performance indicators
Brand Awareness:
Increased Reach: This is likely to create a vast reach for Inter Milan in North America, with the possibility of reaching millions of other potential new fans.
Social Media Engagement: Increased usage of InterMediaCo's social media channels, combined with the increase in the number of new likes, comments, and shares.
Brand Mentions: Monitor the social coverage of InterMediaCo topics and the general sentiment of the conversation.
Fan Involvement Content Interaction: Monitor the level of interaction with co – branded content, the number of video views, the replies of people to your story, and the level of participation. Community Building: Monitor growth and activity within the InterMediaCo online community, checking fan forums and social media groups. Conversion Stats: Website Traffic: Describe in clear detail the growth in traffic to the site driven by influencer posts and campaigns. Merchandise Sales: It illustrates the sales reports for all kinds of merchandise and other goods that have been associated with any influencer promotion or campaign. Event participation – assess attendance/churn numbers at events and activities the influencer promotes.
Project #3
Traditional Advertisement in Times Square
Objetives and Rationale: Having short videos lighting up one of the most iconic advertisement places in the world would definitely increase brand awareness and popularity. Also, it would be easier to calculate metrics for the project.
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Figure 23 – Times Square
Recently, Inter commemorated their recent Scudetto victory by having videos and pictures of moments of this season in the most iconic buildings in The Bund, Shanghai. This means that this type of advertisement is nothing new for the company.
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Figure 24 – Inter Milan's advertisement, Shanghai
Project #4
Meet & Greet Tour around the USA
Objectives and Rationale: This project is centered in build an even stronger loyal fanbase (customer loyalty). Due to the fact that there are a couple of already existing Inter Fan Clubs in the region, having meetings with them during a specific part of the season (for example, post – season). In exchange for a determined fee, fans would be able to meet the men’s first team players, get their merch signed, take pictures and videos and create great memories. In collaboration with BR Football, the event will be promoted and more fans could be attracted to become an Inter Fan due to the easiness to reach the main stars of the company in comparison to competitors. It is planned to hold a total of 5 different events, around 5 different cities, in premises with a capacity between 150 – 200 people with a participation fee of 85$. It would be extremely important for the company to find two sponsors: one (Delta for example) to cover the flight fees and then a regional partner to collaborate and sponsor the events for a 100,000$ fee. (The sponsorship fees for this project are not related to the proposes regional partnerships from the next section).
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Figure 25 – Inter Clubs fans' meeting
Reccomendation #1
Increasing Regional Partnerships
Objectives and Rationale: The growth of regional partnerships aims to build a strong local network and, at the same time, to clearly increase the brand recognition of Inter Milan across North America. Putting this feature into perspective, the other strategies are directly revenue – based, but this feature intends to go a long way into brand presence and community interactions. In associating with local sports clubs, community organizations, and large prominent businesses, Inter Milan will try to build grassroots support and long – term affectation in the local communities.
Identification of Potential Partners Characteristics of Potential Hosts Stakeholder relations: All partners must have a highly visible and impactful influence in local communities. General Audience: A partner should target their desired audience using the same rationale as that of Inter Milan, which in our case would be general sports enthusiasts and members of the Italian American community.
Sustainable Value: Partnerships must deliver sustainable value to both Inter and to the partnering organization.
Types of Potential Partners
Human – Based Organization Examples: Italian American cultural groups, local non-profits, sports – centered, youth development. Explanation: Since these organizations are local, they can hence carry out the promotion of Inter in community events and activities.
Local and National Businesses: Examples: Pepsi, Delta, Chipotle, Bank of America. Explanation: It pays to partner with established businesses in a co – branded promotion and, by all means, magnify the reach through events. This will help in making better use of the other business's customer base and marketing channels.
Align interests: Co – branded events – co – sponsor events such as football clinics, community sport days, and cultural festivals in which both InterMediaCo and the partners have co – equity participation. In this case partnering with Pepsi to sponsor a series of community events with a football flavor.
Promotional Campaigns: Develop any joint promotional campaigns that would highlight this partnership, and maybe even lead to specific exclusive deals or discounts with respect to Inter Milan merchandise. For example, promotion on meal deals during game days with Chipotle.
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Figure 26 – Taco Bell campaign in collaboration with Ravens
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Figure 27 – Coca Cola's campaign with the France National Team
Sponsorship and Support Event sponsorship: For instance, it would be able to sponsor regional youth football tournaments, local sports tournaments, charity matches, community events, among others, to improve the corporate brand image and involvement.
Bank of America will play a significant role in the sponsorship of community sports programs.
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Figure 28 – Gatorade sponsoring a youth tournament
Digital and Social Media Cooperation, Content Creation: Working with partner organizations, develop and disseminate digital content to be used by the partnership in action and engaging local audiences. This might take the form of a series of promo videos being filmed of what the partnership has been able to achieve with Delta Airlines.
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Figure 29 – Current Inter Milan campaign with Qatar Airways
Social Media Campaigns: Initiate various social media campaigns through which it would encourage the public in the local community to post their experiences that are in relation to Inter. For example, a co – hosted social media challenge between Chipotle and the company might encourage others to share their experiences in healthy eating and active living.
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Figure 30 – West Ham Campaign with The Kingdom Bank
Anticipated Results and Success Metrics
Brand Awareness
Community engagement: increased participation in co – branded events and initiatives, which will lead to an increase in visibility and recognition of the Inter Milan brand presence in local communities.
Media Exposure: Encouraged expanded local media exposure and mentions of a positive nature in community news and sports periodicals.
Partnership Effectiveness:
Partnership Growth: The number of partnerships created and the depth of engagement with each new partner. Win – win results: Assessment of the positive outcome that accrues to both Inter and the organizations it works with due to combined efforts.
Human Interest: Event Participation: Document attendance and the time horizon level of engagement at co – branded events and programs.
Social Media Metrics Monitor the engagement on social media through the likes, comments, shares, and growth in followers due to the partnership – related content.
Community Implication: An increase in local support and loyalty toward Inter Milan, testified by the sustained activity and participation in the various community activities. Brand loyalty: It helps in creating a loyal mass following in the local community, which aids in long – term brand building and sustainability.
3.2 Determination of costs for the implementation of the project “Brand awareness of Inter Milan”
Discount Rate
The discount rate is a critical factor in evaluating the financial feasibility and efficiency of opening new retail stores. It reflects the opportunity cost of capital and helps in assessing the present value of future cash flows.
Key Considerations for Discount Rate
1. Cost of Capital: The cost of both debt and equity financing. This involves the weighted average cost of capital (WACC).
2. Risk – Free Rate: The return on risk – free investments, typically government bonds.
3. Market Risk Premium: The additional return expected by investors for taking on the risk of the equity market.
4. Beta: A measure of the project’s risk relative to the market.
5. Specific Project Risks: Location – specific risks, competition, and economic conditions.
Calculating the Discount Rate
1. Weighted Average Cost of Capital (WACC):
Equation 2 – WACC
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E = Market value of equity
V = Total market value of equity and debt
Re = Cost of equity
D = Market value of debt
Rd = Cost of debt
Tc = Corporate tax rate
2. Cost of Equity:
Equation 3 – Cost of Equity
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Rf = Risk – free rate (e.g., yield on 10 – year U.S. Treasury bonds)
P = Beta of the project
Rm = Expected market return
(Rm – Rf)= Market risk premium
Risk – Free Rate (Rf): 3%
Market Risk Premium (Rm – Rf): 6%
Beta (P): 1.2
Cost of Debt (Rd): 4%
Corporate Tax Rate (Tc): 25%
Debt – to – Equity Ratio (D/E): 0.5 (implying 33% debt and 67% equity)
Cost of Equity (Re):
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WACC Calculation:
Assuming a market value of equity (E) and debt (D) to determine proportions: Recommended Discount Rate
WACC=(32x10.2%)+(31x4%x(1 – 0.25))
WACC=0.67x10.2%+0.33x3%wacc=0.67x10.2%+0.33x3%
WACC=6.834%+0.99%=7.824%WACC=6.834%+0.99%=7.824%
Based on this, the discount rate is derived between 7.5% to 8.5%, based on during this period, the cost of capital and particularly the risks for opening retail stores at such traffic and prestigious locations as in Fifth Avenue in New York City and the Magnificent Mile in Chicago were the same.
Why This Range?
1. High Traffic Locations: both are high – traffic locations, and, in virtually meaning, they have high – spending customers; thus, the risk of low sales is eliminated.
2. Premium Location: both require a higher leasing, that is a rental rate payable, but the probable revenue from the location is high.
3. Economic Stability: New York and Chicago are politically stable with good economic bases and relatively high consumer markets.
The discount rate between 7.5% to 8.5% is, therefore a pro – active approach from which the situation can be analyzed for correct judgment on the financial commitment to the project versus the investment at the set thresholds of return.
Total Costs
Below, a detailed summary of the total investment required for engaging Fabrizio Romano, 433, and BR Football in promotional activities and the investment to start a retail store on Fifth Avenue in New York or on the Magnificent Mile in Chicago.
1. Retail Store in New York (Fifth Avenue)
Table 11 – Total Costs Store New York
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2. Retail Store in Chicago (Magnificent Mile)
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3. Promotional Costs for Fabrizio Romano
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4. Promotional Costs for 433
Table 14 – Total Costs Promotion 433
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5. Promotional Costs for BR Football
Table 15 – Total Costs Promotion BR Football
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6. Traditional Advertisement in Times Square
Table 16 – Total Costs Times Square advertisement
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7. Meet and Greet Tour
Table 17 – Total Costs Meet & Greet tour
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Grand Total Investment
Minimum Investment:
– Retail Store in NY: $5,075,000
– Retail Store in Chicago: $1,845,000
– Fabrizio Romano: $52,000
– 433: $240,000
– BR Football: $360,000
– Times Square Ads: $25,000
– Meet and Greet Tour: $115,000
– Total Minimum Investment: $7,712,000
Maximum Investment:
– Retail Store in NY: $5,075,000
– Retail Store in Chicago: $1,845,000
– Fabrizio Romano: $312,000
– 433: $600,000
– BR Football: $900,000
– Times Square Ads: $200,000
– Meet and Greet Tour: $140,000
– Total Maximum Investment: $9,072,000
Summary
– Total Minimum Investment: $7,712,000
– Total Maximum Investment: $9,072,000
No loan is required for this investment.
Stores detailed investment summary.
New York (Fifth Avenue) Detailed Investment Breakdown
Lease Costs: Annual Rent: $2,500 per square foot for 1,500 square feet = $3.75 million annually.
Build – Out and Renovations: Finest – quality but not over – the – top build – out: $150 to $250 per square foot. Total Build – Out Costs: $225,000 to $375,000.
Inventory: Initial inventory for sports apparel, merchandise, and memorabilia. Inventory Costs: $150,000 to $500,000.
Staffing: Number of Employees: Sales Associates: 10 (full – time and part – time) Store Manager: 1 Assistant Managers: 2 Total Staff: 13 Annual Staffing Costs: Sales Associates: Average $18/hour, around $360,000 annually Manager and Assistant Managers: $40,000 and $30,000 annually respectively Total Staffing Costs: Approximately $400,000
Marketing and Promotion: Focused marketing campaign to attract Inter Milan fans and general sports enthusiasts. Marketing Costs: $50,000 to $200,000
Operational Costs: Includes utilities, insurance, security, and maintenance. Annual Operational Costs: $100,000 to $150,000
Marketing and Promotion Annual marketing costs will vary with all promotions and will be around $50,000 to $200,000 for a new business.
Operational Costs: Includes utilities, insurance, security, and maintenance. Annual Operational Costs: $100,000 to $150,000
Expected Visits: Fifth Avenue attracts high foot traffic due to location. Expected visitors, daily : 500 to 1,000 (especially during peak seasons like holidays). Monthly: Roughly 15,000 to 30,000
Chicago (Magnificent Mile) Detailed Investment Breakdown
Lease Costs: Annual Rent: $300 to $600 per square foot for 1,500 square feet. Total Annual Rent: $450,000 to $900,000.
Build – Out and Renovations: Similar quality build – out as New York: $150 to $250 per square foot. Total Build – Out Costs: $225,000 to $375,000.
Staffing: Number of Employees: Sales Associates: 8 (full – time and part – time) Store Manager: 1 Assistant Managers: 2 Total Staff: 11 Annual Staffing Costs: Sales Associates: Average $16/hour, about $300,000 per year Manager and Assistant Managers: $35,000 and $28,000 per year Total Staffing Costs: About $350,000 Marketing and Promotion: The same marketing strategy as New York Marketing Costs: $50,000 to $200,000
Operational Costs: Includes utilities, insurance, security, and maintenance Annual Operational Costs: $100,000 to $150,000
Expected Visits: It is a high – traffic shopping district.
Expected daily population: 400 to 800. Monthly: About 12,000 to 24,000 populations Key Costs: High lease and staffing costs, larger expected foot traffic.
Chicago (Magnificent Mile): Total Capital Required: $1.325 million to $2.475 million. Key Costs: Low lease and staffing costs, slightly lower foot traffic than Fifth Avenue.
Both locations are very lucrative for a specialty sports retail store, but New York's Fifth Avenue will require much more capital to start.
Inflow – Outflow
Expected Inflow – Outflow Table for the Retail Stores in New York (Fifth Avenue) and Chicago (Magnificent Mile)
Below is an expected inflow – outflow table for the first year of operation for both stores, considering the key financial aspects such as revenues, costs, and net cash flow.
New York (Fifth Avenue)
Assumptions:
– Average annual rent: $3.75 million, Build – out costs: $300,000 (spread over 5 years for accounting purposes), Initial inventory: $350,000, Annual staffing: $400,000, Annual marketing and promotion: $150,000, Annual operational costs: $125,000, Expected annual sales: $5 million, Discount rate: 8%
Table 18 – Inflow/Outflow table NY Store
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Table 19 – Inflow/Outflow table Chicago Store
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Table 20 – Suggested Deals with Regional Sponsors
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3.3 Determination of economic efficiency of the project “Brand awareness of Inter Milan”
Table 21 – NPV Retail Store New YorkNPV Store New York in Millions of American Dollars
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Figure 31 – Discounted Income and Initial Costs NY
Table 22 – IRR New York
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Table 23 – Payback Period NY
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Table 24 – Discount Payback Period NY
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Store Chicago
Table 25 – NPV Retail Store Chicago
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Table 26 – IRR Chicago
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Table 27 – Payback Period Chicago
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Table 29 – Roadmap
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Social Media and Influencers
The selected influencers count with more than 160 million followers across their social media platforms and even though there is a difficulty to determine the revenue for such campaigns, we can conclude that an immediate brand lift will occur, brand awareness will rise up, and a follower growth for Inter Milan’s social medias will happen with almost all certainty. Meet & Greet Tour
Table 30 – Meet&Greet revenues
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The project is expected to be just marginally profitable, generating a moderate amount of profit, but significatively improving fan loyalty, brand visibility and awareness. Traditional Advertisement (Times Square)
Times Square is one of the busiest pedestrian areas in the world and taking this as a base, the following assumptions will be made:
Estimated Foot Traffic
Times Square sees an average of 330,000 visitors per day. Over a month (30 days), that’s approximately 9.9 million visitors.
Engagement Rate
Assume a 1% engagement rate, meaning 1% of viewers open the website. By this point, brand awareness is already increased.
Conversion Rate
Of those engaged, assume a 10% conversion rate, meaning 10% of those who engage make a purchase.
Average Purchase Value
Assume each converted customer spends an average of $50.
Using These Assumptions:
– Total Visitors Engaged:9,900,000x0.01=99,0009,900,000x0.01=99,000
– Total Conversions: 99,000x0.1=9,90099,000x0.1=9,900
– Total Revenue: 9,900x50=$495,0009,900x50=$495,000
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ROAS(max cost):2.475
ROAS(min cost):19.8
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ROMI(max cost):1.475, ROMI (min cost): 18.8
This results indicate return on advertisement but more importantly, high exposure for the brand.
This chapter has comprehensively evaluated the strategic initiatives aimed at enhancing brand awareness through marketing promotions, regional partnerships, and the financial viability of opening new retail stores in New York and Chicago. Marketing Promotion and Regional Partnerships: The proposed marketing promotions and partnerships with prominent brands like Chipotle, Pepsi, Bank of America, and Delta are designed to significantly enhance brand visibility and customer engagement. Joint promotions, in – store events, social media campaigns, and strategic collaborations offer added value to customers and strengthen community ties. These initiatives are expected to drive immediate store traffic while building long – term brand loyalty and a positive brand image in the region.
Store Projects Analysis: The financial analysis of the proposed store projects in New York and Chicago reveals strong economic efficiency and viability:
New York Store:
Initial Investment: $5,075,000 NPV: $3,630,277.24 IRR: 19% Payback Period: Approximately 6.26 years The New York store project shows significant potential for generating returns above the initial investment, with a positive NPV and an IRR well above the discount rate. The payback period is reasonable, suggesting a sound investment.
Chicago Store:
Initial Investment: $1,845,000 NPV: $8,398,613.07 IRR: 77% Payback Period: Approximately 2 years The Chicago store project demonstrates exceptional financial viability with a very high NPV and IRR. The short payback period indicates a quick recovery of the initial investment and substantial profitability, making it a highly attractive investment opportunity.
Overall Conclusion: The strategic marketing promotions and regional partnerships are well – designed to enhance brand awareness and customer engagement. Both store projects in New York and Chicago are financially viable, with the Chicago store showing superior financial metrics. Investing in both locations is strategically sound, but prioritizing the Chicago store could yield faster and higher returns. By implementing these initiatives, the brand is well – positioned for significant growth and an enhanced market presence in both regions.
CONCLUSION
Inter Media and Communication is the manager and operator of all media and sponsorship businesses of the football club, Inter Milan. InterMediaCo could benefit by increasing brand presence in the North American market. The company has very complex and innovative marketing strategies in place to raise the level of brand awareness and customer engagement in a diversified manner. The most important opportunity for InterMediaCo is to develop further into customers in a diversified way and, with a strong market presence, win the market through new retail store development and joint collaboration with big, renowned brands.
High operational costs and intense competition make heavy burdens for traditional media companies. That is why, in the high competitiveness, the strategy used by InterMediaCo to enhance brand visibility touches on digital marketing, partnership with influencers, and region – based alliances with already recognized companies such as Chipotle, Pepsi, Bank of America, and Delta. All these partnerships are set to drive customer engagement through joint promotions, in – store events, social media campaigns that build community ties, and forge long – term brand loyalty. By taking advantage of the influence of Social Media in today’s world, having partnerships with selected influencers, the brand could achieve new levels of views and impressions in the region. Following the tour project, brand loyalty will be increased and possible new fans will be acquired simultaneously as revenue is achieved.
With the changing trends of how media is consumed, InterMediaCo needs to be at the vanguard of the research and implementation of new methods of marketing. Both proposed projects, New York store and Chicago store, have an exceptionally acceptable level of financial soundness, and in – depth financial analysis, the potential ROI is very high. The New York store will be financed with an initial outlay of $5,075,000, realize an NPV of $3,630,277.24, IRR 19%, and its payback will be about 6.26 years. In the same manner, the Chicago store will be financed with an outlay of $1,845,000, boasts NPV of 8,398,613.07, IRR 77%, and its payback period will amount to around 2 years, meaning a highly attractive investment opportunity with these two stores. Chapters 1 and 2 have been elaborated so as to experience the strategic context and market for the operation of InterMediaCo. They illustrate market trends, consumer behavior, and the competitive environment that should influence the drafting of appropriate marketing strategies. From Chapter 3, the performance of the financial analysis emphasizes the economic benefits that will be accrued from the proposed projects, including the potential for growth and profitability.
Summary of the strategic initiatives are, through marketing promotions in Social Media, regional partnerships, and new retail that is customer – centric, it will create an increased awareness of the brand and increased engagement of customers to the InterMediaCo products. This is a project that presents productive prospects, and especially the Chicago store in terms of financial metrics. With the implementation of the initiatives, InterMediaCo will have positioned itself very well to grow significantly and significantly increase market presence in North America while maintaining a strong competitive advantage in a very dynamic market.
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- F. A. Zelaya Zelaya (Autor:in), 2024, Improving of the Marketing Strategy for InterMediaCo in the North American Market, München, GRIN Verlag, https://www.grin.com/document/1564999
