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.