The Dark Side of Soccer in Scotland

Often regarded as the biggest rivalry in not only world soccer, but world sport as a whole, Celtic v Rangers (collectively referred to as 'The Old Firm') is an encounter which at times seems more like a full blown war than a 90 minute long sporting fixture. Complex social issues which have dogged Irish and Scottish societies for hundreds of years are the spark which ignites these matches. Rarely is sport doused in the racism, sectarianism, prejudice and violence which engulfs Scottish football stadiums 4 times a year when these two teams go head to head; all too often the passion on the pitch spills onto the streets of Glasgow, Belfast and beyond. 

To many, this unmatched complexity is what makes The Old Firm such an engrossing spectacle and has caused the relatively small nation of Scotland to possess one of the most watched soccer matches in the world. Unquestionably, this overblown powder keg fixture is good business. People globally will tune in to witness the events unfold, these individuals may have no interest in Scottish soccer but Celtic v Rangers is quite simply considered a 'must-see'. Indeed at 7am in Manhattan (and across the U.S.A) you can find Celtic and Rangers bars packed to the rafters with supporters eagerly awaiting kick-off. In my experience there are often a number of American citizens unfamiliar with the sport who are just along for the ride.

U.S. based online magazine 'Slate' recently offered the following article in an attempt to explain the situation and history to American readers. Often I am asked by people in the United States what game they should see if there are interested in experiencing soccer; I always advise the Old Firm fixture in order to "throw yourself in at the deep end". If you want to be shocked, entertained and engrossed, it doesn't get any bigger or twisted that this.

Slate - The Scottish Play - Celtic vs. Rangers, and what happens when a sports rivalry gets completely out of hand.

Ch. 18 - Sales Promotion and Personal Selling

Personal selling

There is little in the way of true personal selling done by Celtic Football Club on the consumer facing side. As with any business, however, high value propositions that the club is involved in will undoubtedly involve a lengthy sales cycle with many deals taking months to complete. Examples of such situations could be: 

• The sale of assets such as a member playing staff, as there are often multiple parties involved in negotiations and the outcome is rarely reached quickly.

• Sponsorship deals with the likes of Nike, Coca-cola, MBMA, Powerade, Tennents lager and Scottish Leader whisky. 

• Land development projects such as the renovation and expansion of the club’s stadium, training grounds or other property investments.

Sales Promotion

A simple visit to Celtic’s retail stores in Scotland & Ireland or to the club website (www.celticfc.net) displays a huge amount of sales promotion which the business is continuously using to generate increased sales in specific areas. Areas of promotion include:

• Tickets. It is important that the stadium is as full as possible on match days. As a result many incentives are offered, particularly for games against less appealing opposition. Many tactics are used such as price cuts or free admission for a child with each adult ticket purchased. It should be noted that there is a sweepstake at each game at Celtic Park where a customer will win $15,000. The effectiveness of Celtic’s approach to maximizing ticket sales has resulted in the club having the 9^th highest average attendance in world soccer.

• Apparel & Merchandise. As new products must be continuously introduced to keep customers interested there is regularly sales promotions to encourage purchasing. At the moment for example, it is possible to purchase two Celtic DVDs for 10 and there are large price cuts on last year’s fashion and training wear as the spring 2011 lines have just been introduced.

• Corporate Hospitality. Premium packages can be purchased by fans in order to enjoy a game in the executive setting which included fine dining and access to exclusive lounges and the opportunity to meet players and staff after games. Depending on availability and demand these packages are often subject to sales promotions which are generally advertised through mailing to qualified leads and through online means.

Retail Visit - Niketown NYC

As Celtic to not have their own retail presence in North America I decided to visit the most likely retail location to purchase Celtic products. I visited the huge Nike store on East 57^th dubbed "Niketown". The store is massive, spread over numerous levels and covers all aspects of Nike’s product offering; general sporting good, men’s shoes, menswear, women’s shoes, womenswear and products specific to each particular sport. Niketown caters for enthusiasts of soccer, football, basketball, running, yoga and even the likes of snowboarding. 

Upon entering the store I was greeted by around 3 members of staff who were having a conversation amongst themselves, they looked fairly underwhelmed to see a customer enter the largely empty store late on a midweek night. After navigating various floors I found my way to the soccer section which is marked by a famous quote from legendary Liverpool manager Bill Shankly (who was Scottish), it reads:

 “Some people think football is a matter of life and death. I assure you, it's much more serious than that.” (Football in this instance, is of course ‘soccer’)

I promptly located Celtic jerseys hanging alongside other elite teams of world soccer, other Celtic products were available such as branded soccer balls and training gear. I am not currently in the market for a Celtic jersey, but as someone who plays the sport weekly I am in the market for a new pair of cleats with a purchasing limit of around $100. Disappointingly the depth of products available at this flagship Nike store was extremely poor with only 4 types of soccer cleats available for purchase (a quick visit to an online retailer offers 199 different Nike soccer cleats). I was eager to learn if there was more products in another part of a store but found it extremely difficult to find a member of staff to ask, after a long search the sales assistant advised that what they had on display was "everything". "Everything" in this instance is just 2% of an independent retailer's product selection in Nike's flagship store, which is in the center of New York City. If I was a Nike VP i would be concerned at this seemingly lazy approach to promoting what we have to offer in a particular product line.

As none of the products available met my fairly basic criteria I returned home without making a purchase. The Niketown store is impressive in its size and glitzy displays, but this appears to come at the expense of product selection and customer service. Perhaps the most disappointing aspect of my retail visit was that no hot female members of staff winked at me; to add insult to injury, upon returning home I found absolutely no ice cream in my freezer. Maybe next time.

Ch. 17 - Advertising and Public Relations

Celtic Football Club engage in considerable product advertising and pioneering advertising: 

Product advertising is used extensively to attact customers to match tickets, stadium tours, hospitality packages and various merchandise. This advertising is seen in the form of newspaper ads, email campaigns, mailing campaigns and an annual catalogue sent to fans detailing the products available from the club store.

Pioneering advertising is used each summer to promote season tickets for the upcoming season (an annual pass to all Celtic’s home games). This form of advertising can also been seen at the launch of a new club jersey which is a major source of merchandising revenue. Celtic are required to have both a home and away shirt, the release of these new clothing items are 2 years apart and staggered so that each summer there is a popular new product available for customers.

At times the club has engaged in advocacy advertising such as public announcements though the press and online highlighting the clubs achievements, or at times congratulating exceptional traveling Celtic supporter behavior throughout  Europe. Recently, after an extremely heated match against rivals Rangers, the club released statements highlighting the positive behavior of Celtic players as the police and politicians criticized both teams for violent conduct. In a game which saw three players ordered from the field for offenses and 10 players cautions, Celtic pointed out that only three of their players had been carded and all of these were minor cautionable offenses.

Lennon pleased with the Celtic on-pitch 'product'

In this article Celtic manager Neil Lennon highlights the quality of Celtic's on-pitch product, a viewpoint fueled by 2 crucial wins against rivals Rangers in February. It is unusual for soccer managers to use words such as 'product' when describing their players and performance as they strive to distance themselves from the business aspect of soccer and concentrate on results. Neil Lennon is known for his understanding and connection with the fans of Celtic. He is clearly aware that performances on the field are essential to customer satisfaction, and the long term success of the club.

http://news.bbc.co.uk/sport2/hi/football/teams/c/celtic/9403033.stm

Ch. 15 - Retailing

Celtic take a serious approach to retailing in comparison to most soccer teams based in Europe. The club currently operate a chain of 15 stores throughout Scotland and Ireland, depending on the size of the store a wide assortment of products can be found. Celtic’s biggest rivals, Rangers, maintain a presence in just two retail locations.

As mentioned in previous blog posts, through their sponsorship agreement with Nike, Celtic merchandise can be found in Nike stores throughout the world and is presented alongside elite European clubs such as Barcelona, Manchester Utd, Inter Milan, Juventus and Arsenal. This global exposure and inclusion in displays with other popular soccer sides is extremely valuable as the club looks to expand its reach around the world.

Nonstore retailing  is an essential aspect of Celtic’s approach to retailing. Through internet and telephone a wide variety of Celtic merchandise and match tickets can be purchased. At this time, Celtic do not have any exposure to the exciting new possibilities in M-commerce. As a professional sports team it is unlikely that the business would expose themselves to a new and unproven, albeit promising, form of retailing.

A likely path forward for Celtic is to expand their reach globally through electronic retailing and to further leverage their Nike sponsorship partnership. The many products available online targeted at women, children and 50+ males demonstrates the businesses willingness to seek customers out with the main target market of 20-40 year old males.

Ch. 6 - Consumer Decision Making

The consumer decision making process specifically for the purchase of a Replica Celtic Jersey priced at $68:

Need Recognition

Every second year Celtic will release an updated version of the home shirt, a replica of the soccer kit that the players wear on the field. Whilst the overall style of the kit does not change (the green and white hooped design of Celtic’s kit is known around the word) there are many subtle alterations to make the product fashionable, interesting and desirable to the consumer.

Information search / Evaluation of alternatives

Few people choose to buy a football kit and then elect the team’s kit they want. It is fair to assume that the consumer considering the purchase of a Celtic shirt has already decided on the team itself and any information search may be limited to the actual source to purchase from. Celtic Football Club offers its products through many sources, from numerous retail partners in Scotland, Ireland and the U.K. to official Nike stores worldwide. It is possible to purchase from a multitude of sources online and have the product shipped internationally.

Celtic does not attempt to compete with these sources on price, instead it lures customers to purchasing through its official online or retail stores by insisting that all profits from official sources are reinvested directly into the club (no middleman enjoys a cut of the merchandise’s sale). Many consumer choose to purchase from the club itself on this basis.

Purchase

Celtic are aware that their product may be found cheaper through non-official partners. Whilst all sales ultimately result in profit for the business, as discussed above, it is preferable that merchandise is purchased directly though the club. In order to persuade more consumers to follow this preferred path the club offers numerous incentives, many of Celtic’s brand extensions may be purchased at a discount through official sources such as women and children’s clothing, various lines of Celtic casual wear, soccer training clothing and accessories etc. Celtic are also know for their willingness to offer discounted or free shipping regardless of the destination when attempting to maximize sales of a new product.

Post purchase Behavior

Steps are taken to ensure that the consumer is satisfied with their product such as follow up mail and email offering exclusive deals on future purchases and a money back guarantee should the goods not be satisfactory. With the current 2010/12 home kit there was an instance of the first batch sold falling short of consumers quality expectations, Nike and Celtic worked together to address the issues at manufacturing and offer full refund or exchanges to consumers affected.