Cultural Differences and Its Effects Over the Marketing Strategy of Football Clubs: Case Studies of FC Bayern Munich (Germany) and C.R
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UNIVERSIDADE FEDERAL DO RIO DE JANEIRO INSTITUTO COPPEAD DE ADMINISTRAÇÃO RAFAEL GONÇALVES DE CARVALHO Cultural differences and its effects over the marketing strategy of football clubs: case studies of FC Bayern Munich (Germany) and C.R. Flamengo (Brazil) Rio de Janeiro 2015 RAFAEL GONÇALVES DE CARVALHO Cultural differences and its effects over the marketing strategy of football clubs: case studies of FC Bayern Munich (Germany) and C.R. Flamengo (Brazil) Master’s dissertation presented to the program of post-graduation in Business and Administration of Instituto Coppead de Administração, Universidade Federal do Rio de Janeiro, as part of the mandatory requirements in order to obtain the title of Master in Business and Administration (M.Sc.). Mentor: Prof. Luis Antônio da Rocha Dib, Ph.D. Rio de Janeiro 2015 C331c Carvalho, Rafael Gonçalves de Cultural differences and its effects over the marketing strategy of football clubs: case study of FC Bayern Munich (Germany) and C.R. Flamengo (Brazil) / Rafael Gonçalves de Carvalho. -- Rio de Janeiro, 2015. 310 s. Mentor: Luis Antônio da Rocha Dib. Dissertation (Master in Business and Administration) - Federal University of Rio de Janeiro, COPPEAD Graduate Business School, 2015. 1. Marketing Strategy. 2. Cultural Differences. 3. Sports Marketing. 4. Football Industry. I. da Rocha Dib, Luis Antônio, Mentor. II. Title. RAFAEL GONÇALVES DE CARVALHO Cultural differences and its effects over the marketing strategy of football clubs: case studies of FC Bayern Munich (Germany) and C.R. Flamengo (Brazil) Master’s dissertation presented to the program of post-graduation in Business and Administration of Instituto Coppead de Administração, Universidade Federal do Rio de Janeiro, as part of the mandatory requirements in order to obtain the title of Master in Business and Administration (M.Sc.). _________________________________________________________________ Luis Antônio da Rocha Dib, Ph.D (COPPEAD/UFRJ) - Mentor _________________________________________________________________ Marcos Cohen, Ph.D (IAG/PUC-RJ) _________________________________________________________________ Adriana Hilal, Ph.D (COPPEAD/UFRJ) _________________________________________________________________ Ariane Roder, Ph.D (COPPEAD/UFRJ) First and foremost it is necessary to highlight what the conclusion of this Master means to my life and career. Until 2012 I was a young layer, in one of the biggest firms of Brazil and with a promising future ahead. But something was missing. I was not passionate about what I was doing. After a lot of thinking and support from those who matter the most to me, I decided to change. To pursue my passion, this is sport. I am naturally a creative and business oriented person, becoming sports marketing the perfect fit for me. However sure about what I wanted to do I was not sure how get ready for it. Then, COPPEAD MBA was presented to me. A full- time MBA was not on my plans, as well as stay out of the market for a couple years, take a few step backs on my career and personal development, giving up of wage and much more. At the end, this was the best I could have ever done. In over 2 years of COPPEAD I learned more than on the previous 10 of my career. Professors, courses and classmates are amazing, in a level that I am still constantly impressed. I became a better professional, a better student, a better business leader and a better human being. Several challenges came along the way until this dissertation, which I loved to do. Thanks to COPPEAD family and those who supported me on this journey. Now I am passionate about what I do and how I do it. Although, I am not satisfied and probably will never be. My ambitions are very high and not one day goes by without setting new goals and doing something to become better. I believe there are things in life that you cannot fake, you cannot purchase, create or invent. You have it or you don’t. I truly believe that I do have what it takes to achieve my goals: ambition, courage, leadership and a nonstop willing to learn. And on top of all, I do have a star, and this somehow will never change because I must have done something right. Especially on the last couple of years I made certain decisions that took me to this moment - some bad choices, but also a few good ones. I don’t believe in luck or coincidences, I believe in hard work, competence and opportunities. My quest is just beginning. "No matter whom you are, no matter what social position in life you have, from the highest to the lowest. Always have as target lots of strength, lots of determination. And always do everything with a lot of love and faith, that one day you will get there. Somehow you will get there." Ayrton Senna ABSTRACT Carvalho, Rafael Gonçalves de. Cultural differences and its effects over the marketing strategy of football clubs: case studies of FC Bayern Munich (Germany) and C.R. Flamengo (Brazil). 2015. 310 p. Dissertation (Master in Business and Administration) – Universidade Federal do Rio de Janeiro – Instituto COPPEAD de Administração, Rio de Janeiro, 2015. Mentor, Luis Antônio da Rocha Dib, Ph.D. The present dissertation purpose is to analyze the marketing strategy adopted by the football clubs in Brazil, compare it to best practices and understand how cultural aspects interfere in business and marketing. Brazil and Germany are nations where football is not only the number one sport, but also true passions. While German football is considered as the best success case, the challenge in Brazil is to understand where football stands and why it struggles so hard in transforming such passion into a profitable and sustainable business. Almost the entire populations either are a declared fan or follow football in those countries. In Brazil, regardless of the potential, it turns out not to be a profitable business for the main actors of this industry: the clubs. The reality of German football is presented as an example of sustainable business for clubs. The enforcement of better practices of management and marketing in this industry is seen as a game changer for the upkeep of Brazilian clubs. It is necessary, however, to take the cultural differences in consideration and develop an approach based on the adaptation of the strategies successfully developed in Germany so that Brazilian clubs can perform better, on and outside of the pitch. Brazilian football industry is full of cultural traits that restrain the development of the business. Basic management concepts are not followed and those who attempt to break the mold find many difficulties along the way. Even the relations with the main stakeholders are shaped not by business interest, but through cultural relation characteristics. This dissertation addresses traditional strategy and management concepts, together with sports marketing and the football industry to analyze the practices in Germany and Brazil, and how the cultural aspects in those two nations affect the overall marketing strategy of football clubs. It is presented that regardless of the strong differences between the societies, industry and actors, there are several opportunities for the exchange of good practices and improvement in performance. The cases analyzed revealed some similarities and several differences, for which a closer look at the other’s practices and results, simultaneously to an adaptation for the local culture, can generate enormous benefit. It is revealed that for Brazilian clubs the biggest challenge is to step away from cultural characteristic rooted on the society and on the institutions and make move towards a business oriented administration. There is no reason a Brazilian club have to do worst job internally than a club from somewhere else, even if the structure it’s against you. Is a process of change that has to start from within and is clear that is possible to have a professional successful football club in Brazil. Key words: Marketing Strategy; Cultural Differences; Sports Marketing; Marketing Football Clubs; Brazilian Football Industry; Cultural Adaptation; Multiple Case Study; C.R. Flamengo; FC Bayern Munich. RESUMO Carvalho, Rafael Gonçalves de. Diferenças culturais e seus efeitos sobre a estratégia de marketing de clubes de futebol: estudos de caso do FC Bayern de Munique (Alemanha) e do C.R. do Flamengo (Brasil). 2015. 310 f. Dissertação (Mestrado em Administração) – Universidade Federal do Rio de Janeiro – Instituto COPPEAD de Administração, Rio de Janeiro, 2015. Orientador, Luis Antônio da Rocha Dib, Ph.D. A presente dissertação propõe-se a analisar a estratégia de marketing adotada por clubes de futebol no Brasil, compará-las às melhores práticas do mercado e entender como aspectos culturais interferem nos negócios e no marketing. Brasil e Alemanha são nações onde o futebol além de ser o esporte número um, também é uma verdadeira paixão. Enquanto o futebol alemão é considerado como o maior caso de sucesso do mundo, no Brasil o desafio é entender o atual cenário e os motivos pelos quais existem enormes dificuldades para transformar esta paixão em um negócio lucrativo e sustentável. Em ambos países praticamente o total da população ou é fã declarado ou acompanha futebol. No Brasil, a despeito do potencial, a indústria é deficitária para seus maiores atores: os clubes de futebol. A realidade do futebol alemão é apresentada como exemplo de negócio sustentável para os clubes. O profissionalismo, com a aplicação de melhores práticas gerenciais e de marketing nesta indústria, é visto como uma ferramenta necessária para a mudança de realidade e até mesmo para a sobrevivência dos clubes brasileiros. É preciso, contudo, levar em consideração as diferenças culturais existentes. Somente então será possível desenvolver uma ação baseada na adaptação de estratégias bem sucedidas na Alemanha, que auxilie os clubes brasileiros a obter melhor rendimento dentro e fora do campo. A indústria do futebol brasileiro está repleta de traços culturais que impedem o desenvolvimento do negócio.