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CHAPTER 1 

The essence of this dissertation is to consider the role of corporate image within the football industry. A positive image is vital to the success of English professional clubs, in the face of ever increasing competition, since the roots of amateurism, is to be analysed. Off the field professionalism is as important as those, on the field with an all-round business approach/acumen required. Many clubs have found additional revenue methods, which are now far more important than the traditional money earner -the 'Gate Receipts'. Businessmen (for example Alan Sugar, Tottenham Hotspur and Martin Edwards, Manchester United) now run many top clubs like businesses, with many having full stock market status (Manchester United total share value is £1billion). However, corporate image extends the awareness of the 'brand' (the club). Football as a brand is now stronger than the 'Nike' sportswear brand. Corporate Image extends the image of that made on the field and for this reason the ultimate English football 'brand' is linked decisively to on the field success (Liverpool in the 1980's, Manchester United in the 1990's).

 

Although commercial activity in football clubs has gained pace during the last 20 years, often the major reason for the overhauling image change of English football, came in the aftermath of the April 15 1989 tragedy at Sheffield Wednesday's Hillsborough home. The events on that afternoon during the FA Cup (the most watched competition in the world of football) tie between Liverpool and Nottingham Forest (in which 96 people lost their life) acted as the major catalyst for the much-needed change. The report into the tragedy the 'Taylor Report' has completely changed the football ruling body's thinking, the football product and modernised the wonderful game.

Following this report, it is fair to say that at least something positive came out of the suffering that April afternoon. From 'single-use' grounds with poor facilities and a purpose of simply considering on the field matters, to an image where the customer (the supporter) is central to the success of the club. Stadiums are now 'multi-purpose', all-seater, and high quality venues, to rival any other leisure activity centre. Gone are the days when you stood in the rain uncovered, eating unimaginative catering, wearing a replica shirt if you were lucky. That has now been progressed by covered seating, an expanded catering offering and a vast merchandise product range. But the wonder of the 'modern-game' is that the traditional aspect of the game, the working man on the terraces, the pie at half time and the primal interest of the supporter still survives, despite this modernised feel.

Football is a respectable tool as a corporate offering, a suitable topic at a dinner event, a suitable place to 'entertain' that important client or to be taken over by some wealthy businessman (such as Huddersfield Town, with Barry Rubery). Crumbling stadiums have been rejuvenated or replaced by many clubs, the transformation as radical as the growth of the game of football. Football used to be the sole enjoyment of the working classes, football has progressed to a 'class-mixed' sport, played and watched by people of every conceivable background. Since the formation of football in 1880, there as always been high demand for football, watched by the masses. Football's male domain is been reduced and been replaced by the family orientated spirit in which females now make up a third of all 'users' of the football product (Mintel survey).

The hypothesis "A positive Corporate Image is vital to the success of English Football Clubs" is going to be tested by this study and examine, if corporate image linked to the corporate goals of the club adds value to the 'core product offering'.

This study and the strength of the hypothesis can be analysed through the following:

"...I can say we would not under any circumstances put the ability of individual footballers ahead of the right corporate image of this club"

(Peter Ridsdale, a Premier League Chairman, 23/01/2000)

1:1 The aims and the objective

The aims of this dissertation, through an up-to-date body of knowledge are:

  1. to test the role corporate image plays in the world of a fast moving and fast changing industry,
  2. to provide primary research, through use of questionnaires and interviews with both the football clubs and gurus of the corporate identity/image industry,
  3. to test whether a positive image, one that is linked to the corporate goals of the club emulates success.

Clubs can now realistically make a profit and such a strategy is needed. Following the 1990 'Bosman' ruling, clubs cannot rely as heavily on making profits on selling players (which is one of the major income of smaller clubs) and with players wages also increasing alarmingly as a percentage of overall income (71% in the First division), other income strategies need to be sought and for this reason an integrated image strategy is needed.

The aims are designed in order to achieve the following objective:

The objective of determining corporate image within football will be assessed through the use of primary source data and secondary sources. Football clubs will be contacted in order to gain as many club uses of this tool. The overall objective is to fully understand how a corporate image, one which is correctly defined and integrated, will ultimately help the football club's, short-term and strategic objectives.

1:2 Hypothesis development

The hypothesis was designed in order to best meet the investigative needs of this study and allow a feasible statement in which to conduct primary research methods. It is felt that corporate image is important to football clubs and to asses this, it (corporate image) had to be tested against the notion of 'success' in order to generate a conclusion to the role corporate image plays within the football industry. Football, does not act independently in its own market arena, it is placed ultimately in the leisure industry. This is a saturated market place with many different modes of activity (cinema, sports centre, fitness' clubs) all battling for the same disposable income of the 'customer' and the same Saturday afternoon and thus how the image of football counteracts the image portrayed by other offerings.

Being interested in marketing and football the development of the study was simple. I wanted to produce an interesting title in which to form the hypothesis (the 'testable statement'), whilst putting a different swing on the marketing aspect, rather than simply just concentrating on it as an entity. 

1:3 Corporate image defined

Philip Kotler defined the marketing mix as the 4p's (product, place, price, promotion) which the 'Promotion' 'P' includes the communication mix which engulfs the notion of Corporate Identity -the parent of the study 'Corporate Image'. P. R. Smith refers to corporate image as:

 

"A result of everything a company does...and is formed in four areas...A symbolic uniform that acts as a flag expressing everything about the organisation"

("Marketing Communication", 1993)

(see appendix 1 & appendix 2)

 

1:4 Corporate image and the football industry

The Corporate Image of an English professional club encompasses everything that has a tangible point of public contact. Since football is an intangible product, the players, logo, slogans, nickname (for example 'Foxes' [Leicester City]) and the stadium are vastly important. The stadium is so important for football identity, as it is a place which is worshipped and as many other things in football change, the stadium "is a permanent temple" (Lawrence, 1996), the 'home' of the supporter and so central to an image strategy. Corporate Image helps to put 'flesh' onto the 'core' product offering creating supporting 'tangible offerings' (see appendix 3).

Services (Football core)

Goods (Football augmented)

Intangible

Tangible

Less standardised

More standardised

Not storable

Storable

Production & consumption simultaneous ('one of the same')

Production followed by consumption

('two very different things')

(Gummesson, E. 1999, page 234 [adapted])

 

With many clubs running themselves more like a business -a theory suggested through the rising number of clubs becoming plc in status -in a capitalist environment the ultimate 'success' is the making of profits and satisfaction of the stakeholders. But for football there are many more factors than simple profitability. For example the way a football club succeeds with it's core competence (the success on the field) and the current playing staff, the level of gate receipts (helping both profits and supporter base, the public image), media representation, morale throughout the club and supporters and the ability to attract new players to the club (see appendix 4).

There are many advantages of a good corporate image, which can help to create competitive advantage, particularly when there is very little difference in the product offering. Although every football club offers the 'same game on the field', in England, football supporters (the 'fan') have a primal interest over one certain football club, and in some cases an ideology, a religion. Every club, no matter how successful, has its loyal band of 'season ticket' holders, the 'life-blood' of the club. To the extent that some commentators believe some football clubs could sell literally "anything" to their loyal/faithful followers, who rarely change even if another 'brand' is performing better (although that is not to say corporate support and sponsors will remain if times are hard. For example Crystal Palace is currently in receivership and does not have a main club sponsor) (see appendix 5).

1:5 Premier League is dream-land

The Premier League is 'dream-land' both on and off the field, with television to the other three divisions (the Nationwide League), amounting to just 36% of that of the Premier League. Incidentally the Nationwide Building Society paid £1.75million to have the Football League named after it; Carling paid £9million for the Premier League title.

Phenomenal growth has engulfed football in the last 20 years and the core product (success on the playing field and thus winning trophies) is given an tangible offering (for example merchandise) through the corporate image strategies developed by the football club. Football clubs are seen as 'dream-makers', which create dreams, passion, glory and unique loyalty without a specific tangible product. Rolf Jansen believes the 'dream' is now more important than the product offering, essentially when in football for many supporters the 'dream' is not realised by the product:

"Most companies are founded on dreams...Many companies don't even have a product. Look at Manchester United which now operates in a global arena with no product. If ever there was an example of a company selling dreams, a story, this must be"

(Rolf Jansen, interview with amazon.co.uk, talking about his new book "The Dream Society", 1999)

1:6 The 'Customer'

The 'customer' within the football industry is unique and different to any other industry. The 'customer' is a crude way to define the supporter of a football club, but it offers the club a unique audience to target. The supporter is part of the image of a football club, unlike any other industry to the extent that the relationship may be described as symbiotic. Corporate image relates to (among other things) the social responsibility of the organisation; the supporter (the customer) is central to this. However it is often the negative aspects attached to the football customer and the psychology of the customer (one which stands in the rain, wind or shine), which offer the club a unique audience/market. The customer's loyalty to a certain brand is often 'passed-down' through the genealogy of the supporter. It is perhaps surprising that the new generation of football supporter is a third female, with 31% of respondents stating "More women are interested in football nowadays" (Mintel, 1998). The Mintel report also announces that "Almost a quarter of all men claim that they used to go to matches a lot more, suggesting that the combination of higher gate prices and wide television coverage has influenced some consumers". Thus revealing that economics and the media play a significant part in the participant of the target audience.

An analysis of current theory is going to be applied in the next chapter to ascertain just 'what' corporate image is, the football industry and how the two are linked together.

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