what I m here to talk about Red Moon Rising 11/22/2010 A brief commercial history of the club ( ) A game of 2 halves:
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1 about Me Name: Tom Howgate Red Moon Rising Manchester United Brand Licensing Occupation: Managing Director, Fluid Sports Ltd. Director, Fluid World Ltd. Specialist Subject: Football Merchandising & Licensing since 1994 Education: Aston University - BSc (Hons) Psychology & Languages Background: Manchester United ( ) Nike ( ) Fluid Sports (2008 present) Presentation by Tom Howgate former Head of Licensing, Manchester United FC ( ) what I m here to talk about A game of 2 halves: First Half: A brief commercial history of the club ( ) Manchester United in 1994: a baptism of fire : The explosion of football merchandising in the UK 1997 Cantonaout, Kenyon in. From club to corporation 2002 Nike onboard: the globalisation of the Manchester United brand Second Half: The Perfect Team line-up -11 key factors in the club s licensing success A brief commercial history of the club ( ) ( in pictures ) 1
2 Manchester United in 1994: In at the deep end... Manchester United in 1994: Stock Control??? vs Afternoons in the Crypt ( ) 94-97: The explosion of football merchandising in the UK 94-97: The Self Sourcing & Wholesale Model 2
3 97: Freedman spices things up 1997: Cantonaout, Kenyon in. From club to corporation New Brand Identity or Selling Our Soul Upgrading the Personnel New Suits New Silverware New Revenue 3
4 2002 Nike onboard: the globalisation of the Man Utdbrand Changing the Business Model Sourcing & Wholesale Licensing Manchester Licensing University Nike makes its mark NIKEISM PROFESSIONALISM EXPERTISE RESOURCE STRATEGY GLOBAL PERSPECTIVE COMMERCIAL DRIVE 4
5 The Manchester United Licensing Line-Up Brand Protection 2. Style Guide 5. Legal Contract 6. Financial Controls 3. Manufacturer Compliance The Perfect Team line-up: 11 key factors in the club s licensing success ( in pictures and words ) 7. Account 4. Licensee Management Selection 10. Strategic Planning 8. Systems & Process 9. Team Performance 11. Commercial Ability (C) In Goal: The Manchester United Trademark & Brand Protection Right Back The Style Guide 5
6 Centre Back The Contract & The Legal Department Centre Back Financial Controls E.g. Auditing Rights Business Planning Compliance Data Protection Use of Player Images Product Pricing for Club Stores E.g. Dunne & Bradstreet Checks on all new licensees Front-loaded payment schedules Bank Guarantees Credit Control & Late Payment penalties Audits Leveraged Supply relationship against the licence contract Left Back Manufacturer Compliance Right Wing Account Management & Marketing Support Partners Day Pitch Day Licensing Exhibitions Trade Advertising Hospitality Dedicated Account Management Benefits Packages Marketing Support 6
7 Centre Midfield The Licensee Selection Process Centre Midfield Systems & Processes Licensing Experience, Distribution Licensing Dept Commercial Proposal ( ) Licensing Dept Product Design Capabilities Development & Design Dept Compliance Compliance Dept (SPT!) Financial Security (Finance Dept) Supply capability (Retail Dept) Online Product Approvals Online Royalty Submissions Online Contract Management Left Wing Commercial Ability (Captain) In Attack: The Playmaker Strategic Planning HOWGATE? GIGGS? 7
8 In Attack: Centre Forward Team Performance & Icon Players In Summary: It s a team game... In Goal: 1. The Manchester United Trademark & Brand Protection 2. Right Back The Style Guide 5. Centre Back The Contract & The Legal Department 6. Centre Back Financial Controls 3. Left Back Manufacturer Compliance 7. Right Wing Account Management & Marketing Support 8. Centre Midfield Systems & Processes 4. Centre Midfield The Licensee Selection Process 11. Left Wing Commercial Ability (Captain) In Attack: 10. The Playmaker Strategic Planning 9. Centre Forward Team Performance & Icon Players = Brand Exposure & Revenue Growth Thank You. Any Questions? 8
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