Amazoncom Update January 2001 July 2002 Online Case Study Analysis

Home >> Business >> Amazoncom Update January 2001 July 2002

Amazoncom Update January 2001 July 2002 Case Study Solution & Analysis


NASCAR (National Association for Stock Car Auto Racing) is an organization conducting series of Stock Cars and truck racing in United States and acting as an approving body for driving the guidelines for Stock Vehicle Racing. 2) Stock Vehicle Racing by NASCAR is the second largest viewer sport, with greatest number of sponsors. 1) The other sources of income for Amazoncom Update January 2001 July 2002 Case Study Help consists of; 10% of the total earnings from tv rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed corporate culture with the non-interventionist approach. The structure of Automobile of Tomorrow by NASCAR, with an intent of security for the drivers, brought different stress amongst the stakeholders of the sport.
Executive Summary
The communication audit, performed in 2010, exposed that in spite of the fact that the company highly rely on the communications between its stakeholders, there was no identifiable service communication method. (

The audit explained different lacking of NASCAR in regards to lack of internal combination, lack of fan management technique and absence of social and digital media of marketing. The company has complex community with independent tracks, teams and drivers. This structure with closed corporate culture bring different challenges in accelerating a change. Other partners in environment consists of the media networks i.e. television and radio, and corporate marketers.

Amazoncom Update January 2001 July 2002 Case Study Analysis audiences was extremely devoted to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business online marketers.

Problem Declaration.

The business is presently dealing with the problem of decreasing rates of attendance at racing tracks and rates of tv viewers. This can put a substantial effect on its profits from sponsors, media rights, and from other sources of revenue.

Situational Analysis.

The business was rather successful till 2005 with its standard marketing techniques, however quickly after 2005 the company begins facing different problems consisting of decline of its fan base. A number of external in addition to internal aspects are responsible for the decline. Internal elements include; insufficient financial investment in social media and other digital medias of.

Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational commitment. The household system in America was altering resulting in reduction of influence of married male fan base over their youngsters. In addition to it understandings about vehicle was also altering with perceiving cars and truck an automobile to reach at point B from point A, rather than as an enjoyable project. Other challenges for Amazoncom Update January 2001 July 2002 Case Study Solution consists of the shift of its fans to other sports as they were improving their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, etc. These all obstacles were tending the business to modify its marketing strategies.

SWOT Analysis.


NASCAR core competencies includes it has rights of determining rules as approving body. Rules and regulations regarding expert stock car racing are dictated by NASCAR like if any group with required abilities and resources can get in into races by following guidelines and regulations dictated by NASCAR. All the events of NASCAR are sponsored by corporates due to the fact that of biggest brand name commitment of fans toward brand names promoted by Amazoncom Update January 2001 July 2002 Case Study Analysis.

Weak points.

Weak points of NASCAR includes its close culture which is non collective. Amazoncom Update January 2001 July 2002 Case Study Help establishes Vehicle of Tomorrow without partnership so result is that motorists did not like that principle. It was likewise discovered that NASCAR had no efficient method for organisation communication.
Porter's 5 Forces Analysis

NASCAR normally used to rely on conventional media sources like regional paper for publicity of its sports. NASCAR also came to know from these conventional media outlets that sport was tough to cover. When sports fans were asked relating to popular celebrities and stars then NASCAR chauffeur was not discovered even in leading twenty responses.


Threats in SWOT analysis are specified as external elements that can threat 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 risk for NASCAR. Earning of individuals would be effected and they would be more mindful in spending their money. Economic down turn likewise results in increase fuel prices which likewise affected NASCAR. Since fans of NASCAR utilized to attend its occasion from cross countries. NESCAR had a rule of 65/25/10 for earnings distribution. 65 percent profits from media rights would be dispersed to race course, 25 percent earnings would be dispersed to competing group and remaining 10 percent would be kept by NESCAR which is sanctioning body. Contending team wished to increase their portion of profits from 25 percent because of boost in operating cost of a race group and likewise there is decline in the variety of full-season sponsorship. Due to the fact that they are making enormous investments to improve experience of fans, nescar also deals with risks from other sponsors. For example that includes updating existing avenues, building new opportunities, supplying Wi-Fi facility and likewise offering other interactive mediums to engage sports on smart devices. 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 obstacle is that the household system in America was changing resulting in decrease of impact of married male fan base over their youngsters. In addition to it perceptions about automobile was also changing with perceiving vehicle a vehicle to reach at point B from point A, instead of as a fun task. Now if Amazoncom Update January 2001 July 2002 Case Study Help make significant investments in brand-new segments which are based on new clients then it may face negative remarks from its core fan base.

Porter's Five Forces Analysis

It is important to understand industry in which business is working since NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are utilized to identify success, intensity and appearance of NASCAR organisation.

Competitive Rivalry

These chauffeurs can go versus NASCAR if they got better chance in terms of prizes and television exposure. If viewers delight in other race cars and drivers more than NASCAR then viewers can shift to those other intriguing vehicles and drivers. NASCAR might be having hazard from its two direct rivals that is Solution 1 and Moto GP.
Swot Analysis
Provider Power

If company shifts from one provider to another, the supplier power suggests the number of suppliers are readily available in industry and what is the expense associated with supplier. Due to the fact that chauffeurs with required resources and abilities are restricted, in this industry there is supply monopoly.

Purchaser Power

In the case of NASCAR customers are its audiences. Audiences can change to other competitors quickly due to the fact that viewers will having low switching expense.

Hazard of Replacement

Replacements are referred as options. The replacements in this case can be other entertainment indicates like viewers can shift to other sports. There are broad variety of substitutes are offered in this circumstance which recommends that risk of substitute is high.

Threat of New Entry

It is specified as how it is simple for any company to go into in that specific market. In the case of Amazoncom Update January 2001 July 2002 Case Study Solution danger of new entry is low. If any company requires to enter in this organisation than they have to make heavy financial investments, since. They require to develop cars and trucks and racing tracks and likewise requires to pay substantial amount to drivers for switching.

PESTEL Analysis


As NASCAR is working in numerous markets so it needs to face different regulations. It is also kept in mind that NASCAR has actually faced increased analysis regarding regulative. Every federal government has different concern so NASCAR has to be prepared for it as concern can be moved to other sector.


Economic elements includes tax rate, currency exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can utilize abilities of staff members to create new chances and improve existing opportunities.


Each has different social worths and standards. It helps in comprehending relating to society and choice of clients.


In this case of NASCAR it can be noted that business are heavily spending for research and development. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Due to the fact that every nation has various legal terms and conditions, Legal plays an important role in every nation. Amazoncom Update January 2001 July 2002 Case Study Analysis needs to be ensure that they protect their legal rights in every county so any business does not hurt to its legal rights.


Environmental elements are likewise important for every business. NASCAR requires to make sure that its automobiles are not creating contamination more than appropriate level.

7 P's of Marketing


The items of Amazoncom Update January 2001 July 2002 Case Study Help in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


Pricing method of NASCAR for its race events tickets is based upon the venue and importance of the racing events. Along with race events tickets, NASCAR also charge various service charge to its stakeholders and makes profits. It charged approving charges of $1-2 million per race on average in 2005.


Advertising technique of Amazoncom Update January 2001 July 2002 Case Study Solution is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. Nevertheless, the business is not totally trusted its fan base for its promotion and promote through local radio stations too. The company has actually likewise embraced the retailing media of promo, in which the company sells merchandises with its logo design.


NASCAR have its racing tracks in various cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car 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 grasp nationwide popularity.


Nestle individuals method is consisted of offering much better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important aspect of Amazoncom Update January 2001 July 2002 Case Study Solution A marketing method as its occasions are the source of entertainment for crowd. Its people method consists of efforts to supply much better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under individuals technique of NASCAR.


Several company processes are needed to conduct racing events in an effective method. These procedures consist of; correct schedule of time, arrangement for spectators, offering tickets, plan of space for sponsors, managing logistics etc. These all procedures contribute I building NASCAR image, improving viewers experience and increasing fan base.

Physical Proof.

Most important physical proofs for the NASCAR includes the existence of its racing tracks, stock cars and trucks and racing events. Together with it, its merchandising brand names consisting of t-shirts, caps, goodies etc., likewise function as a physical proof for NASCAR.

Item Life Cycle Assessment.

The racing occasions by Amazoncom Update January 2001 July 2002 Case Study Analysis 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 stage competitors for NASCAR was low, as the competitors drove the cars comparable to the vehicles driven by common people.


After conducting its very first race successfully the company moved towards developing its own tracks. The very first Amazoncom Update January 2001 July 2002 Case Study Solution based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the business moved towards relaying its races on television in 1979. The first event relayed on tv was flag-to-flag protection of Daytona.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular organization into one with global fan base. He initiated a new era of lucrative sponsorships and tv contracts for NASCAR.


The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide variety of income sources. The business has about 500 sponsors with relaying its occasions in about 150 nations. The company has a great deal of tracks in most of the cities of United States.


The decline in the company's offerings began after 2005 with typical presence rate per race decreased by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major reasons for decline consist of the financial crisis of 2008, which increased the cost of reaching tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Division.

The marketplace division of Amazoncom Update January 2001 July 2002 Case Study Analysis can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Amazoncom Update January 2001 July 2002 Case Help is based upon the geographical presence of its tracks in various states and cities in United States, and the television broadcasting of its occasions in numerous nations. The company has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation supplies the company regional in addition to global fan base.


The demographic division of Amazoncom Update January 2001 July 2002 Case Study Analysis is likewise highlydiverse based upon the gender, earnings and age of the customer. To increase the market sector of its market NASCAR ought to revise its marketing methods to attract more age groups and lower its prices to go into in the market segment with a low average income.


NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to purchase tickets and see the races when in a week. NASCAR has actually attempted to increase the quality of its racing by introducing stage racing, they also have actually tried to lower costs and make the occasion more hassle-free by introducing live racing.


Behavioural division of Amazoncom Update January 2001 July 2002 Case Study Help is based upon the behaviour of fans in terms of watching the race reside on the television or by going in the occasions. Presently, the fans preference is towards viewing the race at home on tv instead of going, as the client experience at NASCAR tracks is not beneficial as well as costly. This choice makes the rates for attendance lower than the rates for tv audiences. NASCAR has to change the behaviour of its fan base by presenting qualitative services at its tracks.

Target Market.


One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has great possible for NASCAR as the population was growing at a higher rate and it was expected to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are also one of the possible target audience section for NASCAR, as they are more linked socially than other groups. Developing fan base among kids can offer a possible increase in the variety of fans for racing due to their connection. Kids spend most of their times in utilizing smartphones and playing video games. Car racing games established by Amazoncom Update January 2001 July 2002 Case Study Solution can be a prospective source of getting attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of getting the attention. NASCAR requires more attention towards customizing and improving its digital features to bring in the kids target audience.

Generation Y.
Generation Y target market consists of those who invested 5 times more resources on discretionary expenditures i.e. purchasing tickets for racing occasions, than others. This substantial expense makes the sector potential for NASCAR marketing technique of increasing its fan base. The market sector is also simple to method as 81% of the Y Generation customer uses Facebook every day and the usage is twice of utilizing tv and radio. The market sector views sports as a social occasion, rather than adherence to sport. The market section thinks about NASCAR as an organization lacking in developing a multiculturalism atmosphere. Amazoncom Update January 2001 July 2002 Case Study Analysis must take various steps to improve the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing assists in taking decisions regarding marketing. These 5 C's needs to be analysed effectively for taking any marketing choice. These 5 C's represent Environment, Company, Collaborators, Clients and Rivals.


It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE means political, financial, social, technical, legal and ecological and is mentioned above.


NASCAR is a car racing business with having USP of high quality auto racing with a global structure. Its sector is sports team and occasions. Its target audience is males in the age group of 15-60 years. Company has closed corporate culture and having non-interventionist technique.


Collaborations includes suppliers, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million every year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.


The client of Amazoncom Update January 2001 July 2002 Case Study Solution are its audiences. They target customers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational loyalty.


Teams usually represents sponsors in NASCAR and the medium of marketing is motorists. These motorists can go versus NASCAR if they got better chance in terms of prizes and tv direct exposure.

Marketing Methods.

1. Keeping and developing Facebook Page.
One of the potential target markets segments for NASCAR is Hispanics which is the growing population section of USA however regrettably NASCAR had been unable to bring in the this targeted section. It should establish a Facebook page consisting of the information regarding the races and the areas of tracks to make the consumer useful about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Exhibit). The major factor behind it is that, the racers primarily play in groups and are not able to construct an essential account and keep a close contact with fans. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is a crucial factor for attracting audiences towards tracks and towards television. The star power for the drivers at NASCARA could be improved by developing and updating accounts of crucial chauffeurs by NASCARA itself. This would get rid of the requirement of forcing motorists to maintain their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Developing New Games and enhancing current video games for kids.
In order to draw in these kids, NASCARA should enhance its existing racing games by presenting modification in the cars 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 video game. All these adjustments in the current game would supply better experience to kids.
Along with it, NASCAR must likewise develop new games connected to racing like kids racing with kids characters as motorists, animation racing with racing between different cartoon characters with a choice of choosing the favourite cartoon character for the kids. These strategies would enable the business to draw in one of its prospective target sections.
4. Presenting multiculturalism at occasions.
NASCAR events are made up of fans with extremely couple of cultural variety, due to cost of arrival in events, making it unappealing for the customers perceiving sport occasions as social occasions i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, therefore the business needs to take certain steps to attract this possible target market.
5. Improving Consumer Experience at Tracks.
NASCAR should work on facilities and facilities at tracks due to the fact that on the race day audiences got dissatisfied. Viewers have numerous expectations from Amazoncom Update January 2001 July 2002 Case Study Help because in very same industry other companies are offering much better services than NASCAR. IF NASCAR do not work on this issue then its fans may shifted to its rivals.

Marketing Budget

Marketing budget plan made on the basis of the above strategies for the period of 5 years from 2011 to 2015, shows the cost associated information for the marketing methods. (See Appendix B). It can be seen that technique 5 of enhancing customer experience at tracks would need greatest preliminary financial investment and expense and method 4 of introducing multiculturalism will require least expensive initial financial investment with lowest further each year cost. The company ought to prioritize the resource allotment on these strategies on the basis of its available resources and the possible benefits which the technique would provide.
NOTE: The values about expense are assumed on reasonable basis due the absence of realities and figures related to cost in the event research study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the internal and external elements of Amazoncom Update January 2001 July 2002 Case Study Analysis triggering the decrease of tv viewership rate and attendance rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long term. These strategies would cope with internal aspects like poor customer experience at tracks, insufficient social media marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., along with with external factors like shifting of fans towards other sports, demographical modifications in America and changing domesticity designs.