Arvin Exhaust Thailand Building An Asian Supply Base Online Case Study Analysis

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Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution and Analysis


NASCAR (National Association for Stock Vehicle Car Racing) is an organization performing series of Stock Car racing in United States and acting as an approving body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of earnings for Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help consists of; 10% of the overall income from tv rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand name to business.

NASCAR has a closed corporate culture with the non-interventionist approach. The building of Cars and truck of Tomorrow by NASCAR, with an intention of security for the drivers, brought different stress amongst the stakeholders of the sport.
Executive Summary
The communication audit, carried out in 2010, revealed that despite the fact that the business extremely count on the communications in between its stakeholders, there was no recognizable business interaction technique. The market's target customers, direction and goals were all unknown.

The audit mentioned various lacking of NASCAR in terms of absence of internal integration, lack of fan management technique and absence of social and digital media of marketing. The company has complicated ecosystem with independent tracks, drivers and groups. This structure with closed business culture bring numerous difficulties in accelerating a modification. Other partners in environment includes the media networks i.e. television and radio, and business online marketers.

Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help audiences was highly loyal to the sport and the brands related to the NASCAR, making it appealing for sponsors and business online marketers.

Problem Statement.

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

Situational Analysis.

The business was quite successful till 2005 with its conventional marketing strategies, however soon after 2005 the business starts dealing with various issues including decrease of its fan base. Numerous external as well as internal aspects are responsible for the decrease. Internal factors include; insufficient financial 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 commitment. Other challenges for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, and so on.

SWOT Analysis.


In SWOT analysis, strengths defined as company's qualities which are various from its competitors. These are business's core proficiencies on which business performance or company success based on. Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help core proficiencies includes it has rights of dictating rules as approving body. Rules and policies relating to expert stock automobile racing are dictated by NASCAR like if any group with required skills and resources can enter into races by following guidelines and guidelines determined by NASCAR. So NASCAR has monopoly it this element. Its strengths likewise consists of 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 relay in more than 150 countries around the globe with more than $56 million incomes. The main sources of their profits originate from tv rights, sanctioning charges, 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 also big resource of fans and business sponsors. All the occasions of NASCAR are sponsored by corporates since of greatest brand commitment of fans towards brand names advertised by Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help. (See Appendix A).


Weaknesses in SWOT Analysis are thought about as external factors. Weak points consists of the aspects that stops company to carry out at required level of effectiveness. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They generally used to form rules and other required procedures without intervention of others which leads to poor collaboration. For instance NASCAR develops Vehicle of Tomorrow without partnership so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is likewise hard. It was likewise found that NASCAR had no reliable strategy for company communication. They do not know how to manage concern if it took place off track. Inefficient business communication results in that they do not have clear direction for their long term objectives. They do not understand that where they wish to see this sport in future.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external factors which can be favourable to company or the external elements on which business is having competitive benefit. NASCAR usually utilized to depend on traditional media sources like local newspaper for publicity of its sports. Usually these traditional media sources try to cover their home group and particular sort of events. NASCAR also familiarized from these conventional media outlets that sport was tough to cover. Media landscape likewise altered from conventional to digital landscape. Papers went out of business. NASCAR can deal with its abilities to get optimal possible benefits from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR used to get pay check of around $15 million yearly from Turner Sports. There are variety of cons behind this deal. For instance Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis needed to get approval from Turner Sport if it want to produce its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track. If media sources like newspapers, magazines and cable channels wish to publish videos of races on their particular pages then they are needed to pay licensing fees to Turner Sport. So NASCAR can work on conditions and terms and attempt to work out with Turner Sports to get optimal benefits of it. Star power plays really essential function in generating incomes from every sport. It was noted that NASCAR is lagging in this area i.e. star power. When sports fans were asked concerning popular celebrities and stars then NASCAR motorist was not discovered even in top twenty reactions. So NASCAR can put efforts in this location too for income generation. They need to guide their drivers that how they can become sport stars. 4 tactical focuses which are created by research study team can likewise be functioned as chance for NESCAR. These four strategic focuses compares and analysis Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution methods.


Economic down turn was experienced in late 2000 which can be threat for NASCAR due to the fact that if there is financial down turn then individuals would be having less return on financial investment. Economic down turn also results in boost fuel rates which likewise affected NASCAR. Now if NASCAR make substantial financial investments in brand-new segments which are based on new clients then it may deal with negative remarks from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a design that is utilized to evaluate market in which business is working. It helps in determining what are strengths and weak point of any specific industry. It recommend that every industry is various from one another. It is very important to comprehend industry in which company is working due to the fact that NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are utilized to determine profitability, strength and appearance of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help organisation.

Competitive Competition

This force shows capability of rivals. Groups generally represents sponsors in NASCAR and the medium of marketing is motorists. It can be stated that chauffeurs and race vehicles are rivals. These motorists can go against NASCAR if they got better opportunity in regards to prizes and television exposure. If audiences delight in other race vehicles and chauffeurs more than NASCAR then audiences can move to those other intriguing automobiles and chauffeurs. NASCAR could be having threat from its two direct competitors that is Solution 1 and Moto GP. They need to develop competitive benefits for chauffeurs so they don't move to other rivals.
Swot Analysis
Provider Power

The provider power indicates the number of suppliers are readily available in market and what is the cost connected with provider if company shifts from one supplier to another. In this market there is supply monopoly due to the fact that chauffeurs with needed skills and resources are limited.

Buyer Power

This force is concerning to consumers that is it simple for consumers to shift to other products. If there is more switching cost is associated then consumers are less most likely to change. In the case of NASCAR consumers are its viewers. Since audiences will having low switching expense, viewers can switch to other rivals easily.

Risk of Replacement

Substitutes are referred as options. The alternatives in this case can be other home entertainment implies like audiences can move to other sports. There are broad range of alternatives are readily available in this situation which suggests that danger of replacement is high.

Danger of New Entry

In the case of NASCAR hazard of brand-new entry is low. They need to develop cars and trucks and racing tracks and likewise requires to pay large amount to drivers for changing.

PESTEL Analysis


It can not be concluded from case study that there would be change in resource allowances. NASCAR had got benefit from lower tax policies which leads to increasing in profits. They made heavy financial investments in the research study and development. As NASCAR is operating in different markets so it requires to face various policies. It is also kept in mind that Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help has dealt with increased scrutiny concerning regulative. Every federal government has different concern so NASCAR needs to be prepared for it as priority can be shifted to other sector.


Financial factors includes tax rate, exchange rate, financial performance of that particular business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be affected if there is government intervention in the marketing and sales sector. NASCAR can utilize abilities of employees to create brand-new chances and enhance existing chances.


Each has various social worths and norms. It assists in comprehending regarding society and choice of customers.


Innovation has impact on nearly every business. It consists of development in company technique. In this case of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help it can be noted that business are heavily investing for research and development. NASCAR should also deal with its media rights policy with Turner Broadcasting System.

Vrio Analysis
Since every nation has various legal terms and conditions, Legal plays an essential role in every country. Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis needs to be ensure that they safeguard their legal rights in every county so any company does not harm to its legal rights.


Environmental aspects are likewise crucial for each service. Due to the fact that normally federal governments do not permit those business which can harm to environment. These ecological aspects includes laws relating to pollution, environment modification, safe garbage disposal, policies regarding insurance and so on. NASCAR requires to ensure that its automobiles are not producing contamination more than acceptable level.

7 P's of Marketing


The items of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


Rates method of NASCAR for its race events tickets is based upon the location and significance of the racing events. Along with race events tickets, NASCAR likewise charge numerous service charge to its stakeholders and earns income. It charged sanctioning charges of $1-2 million per race on average in 2005.


Promotional strategy of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of viewers for NASCAR races. However, the company is not totally trusted its fan base for its promotion and promote through local radio stations too. The business has actually likewise embraced the retailing media of promotion, in which the company offers products with its logo design.


NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to comprehend across the country popularity.


Nestle people technique is consisted of offering better experience to its audiences, its fan base and to all of its stakeholders. People are a crucial aspect of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help A marketing strategy as its events are the source of home entertainment for crowd. Its people strategy includes efforts to offer better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under individuals technique of NASCAR.


Numerous company procedures are required to carry out racing events in an efficient method. These procedures include; proper schedule of time, plan for viewers, selling tickets, arrangement of space for sponsors, handling logistics etc. These all processes contribute I building NASCAR image, enhancing viewers experience and increasing fan base.

Physical Evidence.

Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock automobiles and racing events. Together with it, its merchandising brands including tee shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.

Item Life Cycle Evaluation.

The racing events by NASCAR was presented on June 19, 1949. At the very first stage competitors for NASCAR was low, as the competitors drove the vehicles similar to the cars and trucks driven by ordinary people.


After conducting its very first race effectively the business moved towards developing its own tracks. The first Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by establishment of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the development of racing tracks the company moved towards relaying its races on tv in 1979. The first occasion broadcasted on tv was flag-to-flag coverage of Daytona.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he changed NASCAR from a local Sport popular company into one with global fan base. He started a brand-new period of financially rewarding sponsorships and television agreements for NASCAR.


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


The decrease in the business's offerings started after 2005 with average presence rate per race decreased by 22% from 2005 to 2010 and tv viewership rate declined by 30% from 2005 to 2010. The significant reasons for decline include the monetary crisis of 2008, which increased the expense of getting to tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.

Market Division.

The marketplace segmentation of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Arvin Exhaust Thailand Building An Asian Supply Base Case Solution is based upon the geographical existence of its tracks in numerous states and cities in United States, and the television broadcasting of its occasions in different nations. The company has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division supplies the company local along with worldwide fan base.


The market division of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis is also highlydiverse based upon the gender, earnings and age of the customer. To increase the market sector of its market NASCAR ought to modify its marketing strategies to attract more age groups and lower its costs to enter in the market segment with a low typical earnings.


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


Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the tv or by going in the events. Presently, the fans choice is towards viewing the race at home on television rather than going, as the customer experience at NASCAR tracks is not favourable as well as pricey.

Target Market.


One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has terrific 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 segment has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are likewise one of the potential target market segment for NASCAR, as they are more linked socially than other groups. Creating fan base among kids can supply a possible increase in the number of fans for racing due to their connection. Kids spend most of their times in using mobile phones and playing computer game. Car racing games developed by Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution 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 tailoring and enhancing its digital functions to draw in the kids target audience.

Generation Y.
Generation Y target audience consists of those who spent 5 times more resources on discretionary expenditures i.e. acquiring tickets for racing occasions, than others. This huge expenditure makes the sector capacity for NASCAR marketing strategy of increasing its fan base. The marketplace sector is also simple to method as 81% of the Y Generation customer utilizes Facebook every day and the use is twice of using television and radio. The marketplace segment views sports as an affair, rather than adherence to sport. The market sector considers NASCAR as an organization doing not have in creating a multiculturalism atmosphere. Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis needs to take various steps to improve the experience of Generation Y consumers in its occasions.

5 C's of Marketing

5 C's of marketing helps in taking choices concerning marketing. These 5 C's needs to be analysed correctly for taking any marketing decision. These 5 C's represent Environment, Business, Collaborators, Customers and Competitors.


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


NASCAR is an automobile racing business with having USP of high quality vehicle racing with an international structure. Its sector is sports team and events. Its target audience is males in the age of 15-60 years. Company has closed business culture and having non-interventionist method.


Collaborations includes suppliers, suppliers and alliances of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help. It is teamed up with different racing teams which are taking part in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR used to make money check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. For example NASCAR needed to get approval from Turner Sport if it wish to create its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of each and every single video which is shoot during race at track.


The client of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help are its audiences. They target customers with having age of 15-60 years. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and produce generational loyalty.


Teams generally represents sponsors in NASCAR and the medium of marketing is drivers. These drivers can go against NASCAR if they got much better opportunity in terms of rewards and tv exposure.

Marketing Strategies.

1. Preserving and establishing Facebook Page.
One of the possible target audience segments for NASCAR is Hispanics which is the growing population segment of U.S.A. but unfortunately NASCAR had been unable to attract the this targeted sector. In order to bring in the young growing generation the NASCAR need to market by utilizing social networks like Facebook. It should develop a Facebook page containing the information regarding the races and the locations of tracks to make the consumer helpful about the core operations of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis. It needs to also update its Facebook page on everyday basis to provide details about its upcoming events. This would make the target market sector more useful about business and would lead to bring in large fans base.
2. Developing and Updating Accounts of Key Drivers.
Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution drivers has a low star power as compare to players of other sports. The bad contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is a crucial aspect for attracting viewers towards tracks and towards tv.
3. Developing New Games and enhancing existing video games for kids.
In order to bring in these kids, NASCARA should improve its present racing video games by introducing modification in the vehicles i.e. changing colours, selection of speed, introducing group racing in the video game, utilizing much better graphics related to the racing tracks and introducing numerous levels in the game. All these modifications in the current video game would offer much better experience to kids.
Along with it, NASCAR needs to also build brand-new video games connected to racing like kids racing with kids characters as motorists, animation racing with racing in between various animation characters with an option of choosing the favourite animation character for the kids. These techniques would allow the business to attract among its prospective target segments.
4. Introducing multiculturalism at occasions.
Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help occasions are consisted of fans with extremely few cultural diversity, due to cost of arrival in events, making it unattractive for the customers perceiving sport events as social occasions i.e. Generation Y consumers. As the Generation Y consumers are a prospective target market for NASCAR, for that reason the business ought to take particular procedures to attract this possible target market. It must adopt methods to draw in the customers far from the tracks place with different culture. The method to do so could be offering unique discounts on tickets or free tickets to audiences coming from a particular distance or from another state. It would increase cultural diversity of the fans and would make Generation Y customers more pleased.
5. Improving Client Experience at Tracks.
NASCAR should work on infrastructure and features at tracks because on the race day audiences got disappointed. Audiences have many expectations from Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis since in very same market other companies are offering better services than NASCAR. IF NASCAR do not work on this problem then its fans might moved to its competitors.

Marketing Budget plan

Marketing budget plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the cost associated data for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of enhancing client experience at tracks would require greatest initial investment and expense and strategy 4 of presenting multiculturalism will require lowest initial financial investment with most affordable further per year expense. The business should focus on the resource allocation on these strategies on the basis of its available resources and the possible benefits which the technique would supply.
KEEP IN MIND: The values about cost are assumed on reasonable basis due the absence of figures and realities connected 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 external and internal elements of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long term. These methods would manage internal elements like bad client experience at tracks, insufficient social media marketing, incapable digital medias like games, lack of culturalisms at tracks etc., in addition to with external factors like shifting of fans towards other sports, demographical modifications in America and changing family life designs.