Ch. 5 - Developing a Global Vision

Recognizing and reacting to international marketing opportunities is of major importance to the business of Celtic. With a relatively small domestic market, the business must target markets throughout the world in order to maximize revenue. Examples of Celtic’s global vision are as follows:

Overseas partnership

Celtic recently formed an alliance with Mexican club Santos Laguna. It is the intention that the arrangement will allow Celtic and Santos to exchange a range of ideas which will benefit the playing and commercial dimensions of both clubs. In entering into the partnership Celtic will expect increased exposure in the large South American market and increased merchandise sales.

Credit card for North American market

With Celtic fans in North America numbering upwards of a million people, a partnership with MBNA has allowed the club to market a credit card to fans overseas.  In doing this they hope to recreate the success of their credit card for the UK market which produced a record amount of applicants from a soccer match.

Pre-season tour

In preseason Celtic often travel out with Scotland to play exhibition games. Most recently Celtic were involved in an extensive tour of North America playing against popular teams such as Seattle Sounders, Philadelphia Union and Manchester United. These matches not only bring in revenue from ticket sales but serve as a valuable opportunity to introduce the Celtic brand to consumers in important foreign markets.

Online store & Nike retail outlets

The online store provides the opportunity to sell and ship Celtic merchandise globally. Through a sponsorship deal with Nike the club also enjoys exposure globally due to availability of Celtic branded clothing and replica jerseys in Nike retail stores. Celtic jerseys can be seen alongside popular teams such as Manchester United, Barcelona and Inter Milan.

Ch. 4 - The Marketing Environment

Celtic must maximize opportunities in order to generate profit and experience growth as a business. In recent years, alterations in the playing staff of the team has resulted in opportunities in the marketing environment which would previously been unavailable. Players joining the club from overseas allows the club to generate revenue from new geographical areas. In addition to overseas markets, the interest and willingness to purchase products from relevant ethnics groups within Celtic’s domestic marketing has also increased largely.

The purchase of a new player from overseas results in various changes in the marketing mix such as:

Product – A replica jersey with the foreign player’s name will be in demand in that player’s home nation. A replica jersey with a Scottish name may not.

Place – Through the internet and retail partnerships Celtic are able to distribute their products overseas, satisfying demand for the product in these locations.

Promotion – The new player allows Celtic to promote and market their products in a manner which is attractive to the new potential customers. In doing this effectively, the business can maximize sales from buyers which did not previously have any intention to purchase the business' products.

The continued signing of overseas players, particularly from a promising future market for the club is a prime example of environmental management.

Example:

The ability to generating television revenue and merchandising sales from Asian markets has been extremely important to the business over the past 6 years. The catalyst for this focus on previously untapped overseas markets was the signing of popular Japanese player Shunsuke Nakamura. For an investment of around $3.5 million dollars in 2005 Celtic were in possession of a player which would immediately allow them to effectively market products to a new audience. Instantly the profile of Celtic as a business and brand was raised in Nakamura’s native Japan; this interest in the club was intensified further in 2008 when compatriot and highly rated youngster Koki Mizuno moved to Scotland to become a Celtic player. 

The Chinese market became a source of revenue for the club in 2009 when national captain Zheng Zhi signed a playing contract with Celtic.

Most recently two South Koreans, Cha Du Ri and Ki Sung Yeung have become valuable players for the team and have allowed the club to generate considerable revenue from one of Asia’s best developed economies.

As expected, these players have increased interest in Celtic from Asians living in Scotland. Since this sequence of player signings, a considerable upturn in ethnic minorities attending matches at Celtic Park has been noted. In some instances fans have traveled from Asia to Scotland as a holiday destination and have attended a Celtic game during their vacation, in the hope of seeing their favorite player in the flesh.

Ch. 3 - Ethics & Social Responsibility

Ethics is defined as the moral principles or values that govern the conduct of an individual or group, as discussed briefly in previous blog entries, Celtic Football Club has had strong ethics since its foundation in 1888.

Initially the business was purely a charitable organization with the aim of raising funds for residents of the poverty stricken East of Glasgow. The club was also founded on the belief that in the midst of discrimination and tension between Catholics and Protestants, Celtic would provide a club that people of any nationality, race and any religion could support. These principles remain at the forefront of the company’s priorities to this day; as the club mission statement elucidates “To maximize all opportunities to disassociate the Club from sectarianism and bigotry of any kind. To promote Celtic as a Club for all people, regardless of gender, age, religion, race or ability.”

In terms of Social Responsibility, the business has a strong concern for society’s welfare. Nowadays the priorities of the business have changed, as a for-profit organization the  social responsibility pyramid applies, valuing economic responsibilities first, followed by legal, ethical and philanthropic. Celtic continues to place a large importance on philanthropic gestures, in line with the foundations of club 123 years ago. The company consolidates its various community based activities under the title of the Celtic Foundation, including the following initiatives:

• Football in the Community – Provides soccer coaching to underprivileged children & addresses local issues.

• Celtic Charity Fund – Has raised millions of dollars for a variety of charitable causes internationally.

• Celtic Learning Program – Provides educational assistance and tutoring.

• Celtic Against Drugs – Raises awareness and tackles lifestyle issues in Scotland.

• A multitude of anti-bigotry, anti-racism and anti-sectarianism initiatives.

Currently, Celtic is beginning to promote Celtic In the Community overseas in the U.S.A, Canada, Australia and Asia. In 2011, the main beneficiary of the Celtic Charity Fund is Teenage Cancer Trust which operates a number of hospital units throughout Scotland. An upcoming fundraiser is the annual sporting dinner featuring Celtic directors, management and first-team players: http://www.celticfc.net/newsstory?item=669

The following video provides details of Celtic Charity Fund projects both in Scotland and overseas:
 

Ch. 2 - Strategic Planning for Competitive Advantage

Celtic sells numerous products to fans; there is a wealth of merchandise available in the club’s store, it is possible to purchase tours of the stadium, the club also offers an a la carte restaurant and extensive fast food offering on match days. Undisputedly, the biggest selling 'product' is match day tickets for the club’s 60,000 capacity stadium, Celtic Park.

Attendance fluctuates based on a number of factors; the teams on-field performance, quality of opposition and national economic conditions play a huge part on whether or not Celtic Park is at full capacity on a match day.

Effective strategic planning is an ongoing process and this is reflected in the marketing for upcoming games. Due to a tie in a game on Sunday 6^th February, Celtic are now marketing tickets for a previously non-scheduled game, this situation highlights the process of creating and maintaining a fit between objectives, resources and the evolving market opportunities:

Objectives:

• Fill the stadium at price which is appealing to fans and profitable to the club.

Resources:

• A modern stadium with excellent infrastructure & facilities.

• An in-form team; Celtic are currently top of the Scottish Premier League with 53 goals scored.

• Major rival as opposition; the historic Celtic v Rangers match-up is widely regarded as one of the biggest events in world sport.

Evolving Market Opportunities:

• Due to the 2-2 tie with fierce rivals Rangers, a replay of the Scottish Cup game must be scheduled at Celtic Park. This unexpected additional clash between the sides presents an opportunity to maximize attendance and provide a cash windfall to the club.

Conclusion:

Celtic are adopting an aggressive marketing strategy to raise awareness of the fixture and ticket prices as they must work quickly to sell all tickets in less than one month. Typically this is done though internet advertising, email, letters to customers and advertising in the national press. As of today, this marketing campaign has already began and can be seen on the club website.

This particular ‘product’,  Scottish Cup 5^th Round tickets to view Celtic v Rangers on March 2^nd, is being offered at a price of $61 per person in comparison to a common ticket price of $40 for other games. Using the resources available and evaluating the evolving market conditions Celtic will expect to sell all tickets for the game generating roughly $3,660,000 in additional revenue for the business.

Ch. 1 - Overview of Marketing (Mission Statement)

Introduction

Celtic Football Club is legendary and as with most legends as much myth as fact surrounds its history and what the Club stands for today. The Mission Statement aims to simply define what the Club stands for and seeks to promote within society.

History

When founded in 1888 the club had two principal aims: The first aim was to raise funds to provide food for the poor of the East End of Glasgow, an area of the City that was greatly impoverished and had a high rate of infant mortality. Within the East End was a large Irish community and friction was growing between the native Glaswegians and the new influx of Irish. Founder, Brother Walfrid, saw the need for social integration and his vision was a football club that Scottish and Irish, Protestants and Catholics alike could support. A new football club would be a vehicle to bring the communities together and this was the second aim. The Marist brother sought for the Club to have both a Scottish and Irish identity and hence, the Club's name "Celtic" came about, representing a bridge of cultures across the Irish Sea.

Current Positioning of Celtic Football Club

Celtic Football Club is a Scottish football club with proud Irish links. The primary business of Celtic is as a football club. It is run on a professional business basis with no political agenda. However, the Club has a wider role and the responsibility of being a major Scottish social institution promoting health, well-being and social integration.

Who is Celtic Football Club for?

Celtic Football Club is for people who want to support a football club that strives for excellence in Scotland and in Europe, is proud of its history, supportive of its local community and seeks to support the following aims: "To maximise all opportunities to disassociate the Club from sectarianism and bigotry of any kind. To promote Celtic as a Club for all people, regardless of gender, age, religion, race or ability."

Summary

Celtic is a club for everyone who believes in football as a medium for healthy pleasure, entertainment and social integration. The Club always has been and always will simply aim to be the team of the people.

Ch. 1 - Overview of Marketing (Brief History)

The Celtic Football Club, commonly referred to simply as Celtic (pronounced ‘Seltik’), is one of the world’s most famous football (soccer) clubs. Celtic was founded in 1888 by Marist Brother Walfrid in the Scottish city of Glasgow as a means to raise money for Irish immigrants. Celtic are basic in the Parkhead area of the city and play their games at a 60,832 capacity stadium named Celtic Park.  In 2003, the club was estimated to have a global fan base of over nine million people with 160 supporters clubs in 20 countries. 

Celtic’s on field success continued from its inception to 1967 which was to prove Celtic’s greatest ever year. Legendary Scottish manager, Jock Stein, led his team to victory in every competition they entered including the prestigious European Cup. Victory in the final against Inter Milan ensured that the Celtic were the first British, and only Scottish club to have won the trophy. This achievement was considered to be additionally impressive as the winning team consisted entirely of players born within a 30 mile radius of Celtic Park, a feat unmatched by any other side in history.

In 1994, despite a history of previous success, Celtic was close to bankruptcy. A Canadian expatriate businessman, Fergus McCann took control, ousting the family dynasties which controlled the club since its foundation. It is widely believed that McCann’s takeover was completed just hours before the club was to be placed in receivership. In order to alleviate the club’s financial strain, Celtic was reconstituted as a public limited company. The business of Celtic as we know it today, was born.

 

Since its early days Celtic’s playing roster has been multinational, multiracial and non-denominational at a time when other soccer clubs would place strict restrictions on playing staff. Celtic Football Club maintains strong connections with other historically anti-fascist and non-prejudiced soccer clubs around the world such as St. Pauli (Germany) and F.C. Barcelona (Spain).

Introduction

In choosing Celtic Football Club as the focus of my blog I have unquestionably chosen a company which is both extremely interesting to me and a passion of mine. The decision was not made, however, simply to allow me to write about my favorite sports team. Whilst this is an obvious advantage I will have over the next 15 weeks, I consider Celtic to be both an interesting business and an exciting brand.

Since the 1994 takeover detailed in the company history, Celtic have been reborn in a business sense. The poor financial management and lack of business acumen which almost led to bankruptcy has been banished and a new mentality instilled. Success on the soccer pitch will always be the number one objective, however this will not be permitted to come at the expense of good financial management.

Celtic is a popular soccer team, their stadium attendance and devoted fan-base is envied around the world. The club is, however, constrained financially by a small domestic market. Scotland has a population of just 5 million compared with England’s 52 million. The English Premier League television revenues (the largest source of club income) currently total $65m per club annually, whilst the Scottish Premier League television revenues total just $1.75m per club; a staggering gulf in income.

Without this annual cash injection enjoyed by teams in other nations, Celtic must be both aggressive and creative with their business dealings and the marketing of the club. 

It is on this basis that I believe the experience of writing of this blog will be educational for me and, I hope, interesting for others who may read it.