2015 St. Andrews International School Business & Management Extended Essay [Which components of Arsenal Football Club’s promotional mix in China need to be developed in order to maximize merchandise sales?] ABSTRACT The finality of this research project is to suggest the best promotional mix strategy that Arsenal Football Club could use to maximize their merchandise sales. Throughout the essay this paper will aim to answer the question “Which components of Arsenal Football Club’s promotional mix in China need to be developed in order to maximize merchandise sales?” With the use of analytical tools such as SWOT analysis and Ansoff matrix, and business theories such as the promotional mix, above the line and below the line promotion, …show more content…
With the constantly increasing fan-base and frenzy for football, clubs have been able to explore and establish themselves in global markets to further enhance their profits. One of the most important success factors for a company that is developing in a new market, is Marketing performance. However the process of market development (refer to Appendix 1, Figure 1.1) involves high risk strategies which if not planned correctly can prove costly to the business. Research studies confirm the need for businesses to analyze the new market and accordingly adapt to get the best results. Football clubs are becoming increasingly popular around the world and are expanding at a relatively fast rate along with the competition. China has experienced rapid economic growth and become one of the biggest Big Emerging Markets (BEMs) as of 2013.(Garten J 1997) Since the 2008 Beijing Olympic Games, sport has become a part of lifestyle and fashion attitudes in China, which is making a booming market for sportswear as well as clothing and footwear for outdoor activities (ITC 2012). This research project would mainly benefit Arsenal Football club but it could also help competitors and other companies aiming to enter or grow in the Chinese sports merchandise …show more content…
First , available external information from newspaper reports are gathered, mainly from the internet. After reading various supporting documents, an appropriate research question was constructed. The main reason for choosing Arsenal football club is because the company recently entered Chinese markets in 2013. Various supporting documents also give some information on the actions taken by the company to promote its merchandise in new markets. Realizing that not all the actions taken bring a positive impact to the image and demand by consumers, a research question for this study is, “ Which components of Arsenal Football Club’s promotional mix in China need to be developed in order to maximize merchandise sales?” 1.5.1 Secondary Research a) Arsenal’s current marketing strategy and published online articles b) Literature on the current Chinese sports market and Chinese consumers. c) Internet and books are being used to understand and to apply some tools and techniques that are useful for this study. d) Literature on competitors and their promotion strategies. 2.0 FINDINGS AND ANALYSIS 2.1 Understanding the Chinese sports merchandise