Case Study Solution and Analysis
Case Study Help (National Association for Stock Car Vehicle Racing) is a company performing series of Stock Vehicle racing in United States and serving as an approving body for driving the rules for Stock Cars and truck Racing. The organization was founded in 1947, by "Big Bill" France. NASCAR arrange Stock Cars and truck Racing events in United States with the existence of about 130000 viewers on average in 2005. It also relayed its occasions in about 150 countries. Stock Vehicle Racing by NASCAR is the 2nd biggest viewer sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of profits for Case Study Help includes; 10% of the total income from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. However this non collaborative method brings tensions in the sport. The building of Automobile of Tomorrow by Case Study Help, with an intention of security for the drivers, brought different stress amongst the stakeholders of the sport.
The communication audit, conducted in 2010, exposed that despite the reality that the company highly rely on the interactions in between its stakeholders, there was no recognizable business communication strategy. (
The audit pointed out various doing not have of NASCAR in regards to absence of internal integration, absence of fan management method and absence of social and digital media of marketing. The business has complicated environment with independent tracks, drivers and groups. This structure with closed corporate culture bring numerous difficulties in accelerating a modification. Other partners in community consists of the media networks i.e. television and radio, and business online marketers.
Case Study Help audiences was extremely faithful to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and business online marketers.
The company is presently dealing with the problem of decreasing rates of attendance at racing tracks and rates of tv viewers. This can put a considerable influence on its incomes from sponsors, media rights, and from other sources of income.
The company was quite successful till 2005 with its standard marketing methods, but soon after 2005 the business starts dealing with various problems consisting of decrease of its fan base. Numerous external as well as internal aspects are accountable for the decrease. Internal elements include; insufficient investment in social networks and other digital medias of.
Fan base of NASCAR made up of married males with a typical age of 47, which passes their fandom to their children and develop generational loyalty. Other obstacles for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on.
In SWOT analysis, strengths defined as company's qualities which are different from its rivals. These are business's core competencies on which company efficiency or business success based upon. Case Study Solution core competencies includes it has rights of determining rules as sanctioning body. Regulations and guidelines concerning expert stock vehicle racing are dictated by NASCAR like if any group with required abilities and resources can participate in races by following guidelines and guidelines dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise includes that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to transmit in more than 150 countries around the world with more than $56 million incomes. The main sources of their revenues originate from television rights, sanctioning fees, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and business sponsors. Due to the fact that of greatest brand commitment of fans towards brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses in SWOT Analysis are considered as external factors. Weaknesses consists of the factors that stops business to carry out at required level of performance. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They generally used to form guidelines and other required procedures without intervention of others which results in bad collaboration. NASCAR develops Cars and truck of Tomorrow without collaboration so result is that chauffeurs did not like that idea. As this is racing sport so covering of sports by media is likewise tough. It was also found that NASCAR had no reliable strategy for service interaction. They don't know how to deal with problem if it happened off track. Ineffective service communication results in that they do not have clear direction for their long term goals. They do not understand that where they wish to see this sport in future.
NASCAR typically utilized to rely on traditional media sources like local newspaper for publicity of its sports. NASCAR also came to know from these conventional media outlets that sport was difficult to cover. When sports fans were asked relating to popular celebs and stars then NASCAR chauffeur was not found even in top twenty reactions.
Hazards in SWOT analysis are defined as external elements that can risk to business's success. Because if there is financial down turn then individuals would be having less return on investment, Economic down turn was experienced in late 2000 which can be danger for NASCAR. Earning of individuals would be effected and they would be more conscious in spending their cash. Economic down turn also results in boost fuel costs which also affected NASCAR. Due to the fact that fans of NASCAR used to attend its occasion from cross countries. NESCAR had a rule of 65/25/10 for profits distribution. 65 percent revenues from media rights would be distributed to race course, 25 percent earnings would be dispersed to competing group and staying 10 percent would be kept by NESCAR which is approving body. Contending team wished to increase their part of earnings from 25 percent since of boost in operating cost of a race team and also there is decrease in the variety of full-season sponsorship. NESCAR also deals with dangers from other sponsors since they are making enormous financial investments to improve experience of fans. Which consists of upgrading existing opportunities, constructing brand-new avenues, offering Wi-Fi facility and also supplying other interactive mediums to engage sports on smartphones. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and create generational commitment. The challenge is that the family system in America was altering resulting in reduction of impact of married male fan base over their youngsters. In addition to it perceptions about vehicle was likewise altering with perceiving cars and truck a lorry to reach at point B from point A, rather than as a fun task. If NASCAR make significant investments in new sections which are based on brand-new consumers then it may face negative remarks from its core fan base, now.
Porter's 5 Forces Analysis
Porter's 5 forces is a model that is utilized to evaluate market in which business is working. It assists in determining what are strengths and weakness of any specific industry. It recommend that every industry is various from one another. It is necessary to comprehend industry in which company is working because NASCAR's bottom line i.e. net revenue is greatly depends on this. There are 5 forces that are utilized to determine success, intensity and attractiveness of Case Study Analysis service.
This force indicates capability of competitors. Groups usually represents sponsors in NASCAR and the medium of advertising is chauffeurs. It can be said that chauffeurs and race cars are rivals. These drivers can go against NASCAR if they improved opportunity in terms of prizes and tv exposure. Then viewers can shift to those other interesting cars and trucks and motorists, if audiences delight in other race vehicles and motorists more than NASCAR. NASCAR might be having hazard from its 2 direct rivals that is Formula 1 and Moto GP. They require to produce competitive advantages for chauffeurs so they don't shift to other rivals.
The provider power shows the variety of providers are offered in market and what is the cost related to supplier if company shifts from one provider to another. Due to the fact that motorists with needed abilities and resources are restricted, in this market there is supply monopoly.
This force is regarding to consumers that is it easy for clients to move to other products. Then customers are less likely to change, if there is more changing cost is associated. When it comes to NASCAR consumers are its viewers. Viewers can switch to other rivals easily since audiences will having low switching expense.
Danger of Substitution
Replacements are referred as options. The substitutes in this case can be other entertainment implies like audiences can shift to other sports. There are wide variety of substitutes are offered in this situation which suggests that hazard of replacement is high.
Danger of New Entry
It is defined as how it is easy for any business to enter in that particular market. When it comes to Case Study Analysis danger of new entry is low. If any company needs to go into in this business than they have to make heavy financial investments, due to the fact that. They require to build automobiles and racing tracks and also requires to pay significant total up to motorists for changing.
It can not be concluded from case research study that there would be change in resource allocations. NASCAR had got take advantage of lower tax policies which leads to increasing in earnings. They made heavy financial investments in the research and advancement. As NASCAR is working in different markets so it requires to face various regulations. It is also noted that Case Study Solution has dealt with increased analysis regarding regulative. Every government has various concern so NASCAR has to be prepared for it as top priority can be shifted to other sector.
Economic factors consists of taxation rate, exchange rate, financial efficiency of that specific company, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can utilize abilities of staff members to produce new chances and enhance existing chances.
Each has different social worths and norms. It assists in comprehending regarding society and preference of consumers.
In this case of NASCAR it can be noted that business are heavily investing for research and development. NASCAR must likewise work on its media rights policy with Turner Broadcasting System.
Legal plays an essential role in every country due to the fact that every nation has different legal terms. Case Study Analysis requires to be make certain that they safeguard their legal rights in every county so any company does not harm to its legal rights.
Environmental factors are likewise important for every service. NASCAR needs to make sure that its vehicles are not generating contamination more than appropriate level.
7 P's of Marketing
The items of Case Study Solution in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Pricing method of NASCAR for its race events tickets is based upon the location and significance of the racing events. Together with race events tickets, NASCAR also charge numerous service charge to its stakeholders and earns revenue. For example it charged approving fees of $1-2 million per race on average in 2005.
Marketing technique of Case Study Analysis is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. Nevertheless, the business is not entirely trusted its fan base for its promotion and promote through regional radio stations too. The business has likewise embraced the retailing media of promo, in which the business offers merchandises with its logo.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in most of the cities in United States to understand nationwide appeal.
Nestle people technique is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial element of Case Study Help A marketing strategy as its occasions are the source of entertainment for crowd. Its individuals strategy consists of efforts to offer much better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under individuals technique of NASCAR.
A number of organisation processes are needed to perform racing occasions in an effective way. These procedures consist of; appropriate schedule of time, arrangement for spectators, selling tickets, plan of space for sponsors, handling logistics etc. These all processes contribute I constructing NASCAR image, improving spectators experience and increasing fan base.
Crucial physical evidences for the NASCAR consists of the presence of its racing tracks, stock automobiles and racing events. Together with it, its retailing brands including t-shirts, caps, goodies etc., likewise act as a physical evidence for NASCAR.
Product Life Cycle Assessment.
The racing occasions by Case Study Help was introduced on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first phase competition for NASCAR was low, as the rivals drove the cars similar to the cars driven by regular individuals.
The very first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards relaying its races on tv in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he transformed NASCAR from a local Sport popular company into one with international fan base. He initiated a brand-new age of lucrative sponsorships and tv agreements for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having vast array of income sources. The company has about 500 sponsors with transmitting its events in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
The major causes of decrease include the monetary crisis of 2008, which increased the expense of getting here at tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.
The market segmentation of Case Study Analysis can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Case Solution is based upon the geographical presence of its tracks in different states and cities in United States, and the television broadcasting of its events in different nations. The business has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation provides the business regional as well as global fan base.
The market segmentation of Case Study Solution is also highlydiverse based upon the gender, income and age of the consumer. To increase the demographic segment of its market NASCAR need to modify its marketing methods to draw in more age groups and lower its rates to enter in the market sector with a low typical income.
The psychological qualities of the majority of the fans are quite comparable. NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races once in a week. 71% of them prefer to purchase products with a NASCAR brand name. They are rather extrovert and want to join other fans while racing. They desire quality racing with low cost at hassle-free area. Although Case Study Solution has actually attempted to increase the quality of its racing by introducing stage racing, they also have actually tried to lower rates and make the event easier by presenting live racing.
Behavioural division of Case Study Help is based upon the behaviour of fans in regards to enjoying the race reside on the television or by entering the events. Presently, the fans preference is towards enjoying the race at home on television instead of going, as the client experience at NASCAR tracks is not beneficial as well as pricey. This choice makes the rates for participation lower than the rates for television viewers. NASCAR needs to alter the behaviour of its fan base by introducing qualitative services at its tracks.
One of the prospective target audience of Case Study Help was Hispanics; the young and growing population of United States. The market section has fantastic possible for NASCAR as the population was growing at a higher rate and it was anticipated to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the sector shows affinity with cars and truck culture, however need a more focused marketing towards inviting the sector towards racing.
Kids are also among the prospective target market section for NASCAR, as they are more connected socially than other groups. Creating fan base among kids can offer a prospective boost in the number of fans for racing due to their connectivity. Kids spend the majority of their times in using mobile phones and playing video games. Car racing video games developed by Case Study Analysis can be a possible source of getting attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of gaining the attention. NASCAR needs more attention towards customizing and improving its digital functions to attract the kids target audience.
Generation Y target market includes those who invested five times more resources on discretionary costs i.e. acquiring tickets for racing events, than others. This big expense makes the sector capacity for NASCAR marketing technique of increasing its fan base. The market segment is likewise easy to approach as 81% of the Y Generation customer utilizes Facebook the use and every day is two times of utilizing television and radio. The marketplace segment views sports as a social occasion, rather than adherence to sport. The marketplace section thinks about NASCAR as a company doing not have in producing a multiculturalism atmosphere. Case Study Analysis must take numerous steps to enhance the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions concerning marketing. These 5 C's needs to be analysed correctly for taking any marketing decision. These 5 C's represent Climate, Business, Collaborators, Rivals and clients.
It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, legal and environmental and is specified above.
Case Study Help is a vehicle racing business with having USP of high quality car racing with an international structure. Its sector is sports group and occasions.
Collaborations includes distributors, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.
The client of Case Study Analysis are its viewers. They target customers with having age of 15-60 years. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational loyalty.
Teams generally represents sponsors in NASCAR and the medium of advertising is motorists. These motorists can go against NASCAR if they got better chance in terms of rewards and television direct exposure.
1. Maintaining and establishing Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population section of U.S.A. but unfortunately NASCAR had been unable to draw in the this targeted segment. It must establish a Facebook page containing the details concerning the races and the places of tracks to make the customer helpful about the core operations of NASCAR.
2. Developing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Display). The major reason behind it is that, the racers mainly play in teams and are not able to build a crucial account and keep a close contact with fans. The poor contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is an important factor for attracting viewers towards tracks and towards tv. The star power for the motorists at NASCARA might be enhanced by creating and upgrading accounts of crucial motorists by NASCARA itself. This would eliminate the requirement of requiring chauffeurs to keep their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Establishing New Games and enhancing existing games for kids.
In order to attract these kids, NASCARA ought to improve its present racing video games by presenting customization in the automobiles i.e. altering colours, selection of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and presenting numerous levels in the game. All these adjustments in the current game would supply better experience to kids.
In addition to it, NASCAR should likewise construct new video games associated with racing like kids racing with kids characters as chauffeurs, animation racing with racing between various cartoon characters with an option of choosing the preferred cartoon character for the kids. These techniques would enable the business to draw in among its possible target segments.
4. Introducing multiculturalism at events.
NASCAR occasions are made up of fans with very few cultural variety, due to cost of arrival in events, making it unattractive for the consumers viewing sport events as social events i.e. Generation Y consumers. As the Generation Y clients are a possible target market for NASCAR, for that reason the company needs to take particular procedures to attract this prospective target market.
5. Improving Customer Experience at Tracks.
NASCAR should work on facilities and features at tracks due to the fact that on the race day audiences got disappointed. Viewers have numerous expectations from Case Study Solution because in exact same industry other companies are offering better services than NASCAR. IF NASCAR don't work on this issue then its fans might moved to its competitors.
Marketing spending plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the cost associated information for the marketing strategies. It can be seen that strategy 5 of enhancing customer experience at tracks would require greatest initial investment and expense and strategy 4 of introducing multiculturalism will require lowest preliminary financial investment with lowest further per year expense.
NOTE: The worths about cost are presumed on reasonable basis due the lack of figures and realities associated with cost in the case study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external aspects of Case Study Analysis causing the decrease of tv viewership rate and attendance rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long term. These techniques would deal with internal elements like bad client experience at tracks, insufficient social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., as well as with external aspects like shifting of fans towards other sports, demographical modifications in America and changing family life styles.