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


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

NASCAR has a closed business culture with the non-interventionist method. However this non collective technique brings tensions in the sport. The building of Automobile of Tomorrow by Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis, with an objective of security for the motorists, brought different tensions among the stakeholders of the sport.
Executive Summary
The interaction audit, conducted in 2010, exposed that regardless of the fact that the company highly rely on the communications between its stakeholders, there was no recognizable business interaction method. (

The audit pointed out numerous doing not have of NASCAR in terms of lack of internal combination, absence of fan management method and lack of social and digital media of marketing.

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

Issue Statement.

The business is presently dealing with the issue of declining rates of participation at racing tracks and rates of television viewers. This can put a substantial effect on its revenues from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

The company was rather effective till 2005 with its standard marketing techniques, but soon after 2005 the business begins dealing with different issues consisting of decline of its fan base. Several external in addition to internal elements are responsible for the decline. Internal aspects 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 youngsters and develop generational commitment. Other obstacles 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 houses through jumbo turns, Wi-Fi gain access to, and so on.

SWOT Analysis.


In SWOT analysis, strengths defined as company's qualities which are various from its competitors. These are company's core proficiencies on which company efficiency or business success based on. Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help core competencies includes it has rights of determining rules as approving body. Regulations and guidelines regarding expert stock car racing are dictated by NASCAR like if any team with required skills and resources can enter into races by following guidelines and policies dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also 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 relay in more than 150 nations all over the world with more than $56 million revenues. The main sources of their revenues originate from tv rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and business sponsors. All the events of NASCAR are sponsored by corporates because of biggest brand name commitment of fans toward brands advertised by Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help. (See Appendix A).

Weak points.

Weak points of NASCAR includes its close culture which is non collaborative. Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution develops Vehicle of Tomorrow without partnership so result is that drivers did not like that idea. It was likewise discovered that NASCAR had no efficient strategy for service communication.
Porter's 5 Forces Analysis

NASCAR usually used to rely on traditional media sources like regional newspaper for promotion of its sports. NASCAR likewise came to know from these standard media outlets that sport was difficult to cover. When sports fans were asked relating to popular stars and stars then NASCAR motorist was not found even in top twenty reactions.


Economic down turn was experienced in late 2000 which can be risk for NASCAR because if there is financial down turn then people would be having less return on investment. Economic down turn likewise results in boost fuel rates which also affected NASCAR. Now if NASCAR make significant investments in new segments which are based on new customers then it may face unfavorable remarks from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a model that is used to analyse market in which company is working. It assists in determining what are strengths and weakness of any particular industry. It suggest that every industry is various from one another. It is important to comprehend industry in which business is working due to the fact that NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are used to determine profitability, intensity and beauty of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution service.

Competitive Rivalry

These drivers can go versus NASCAR if they got much better opportunity in terms of rewards and tv direct exposure. If viewers delight in other race cars and drivers more than NASCAR then viewers can shift to those other fascinating cars and trucks and motorists. NASCAR could be having risk from its two direct competitors that is Formula 1 and Moto GP.
Swot Analysis
Provider Power

If business shifts from one supplier to another, the supplier power suggests the number of suppliers are offered in industry and what is the cost associated with provider. Due to the fact that chauffeurs with needed abilities and resources are limited, in this market there is supply monopoly.

Purchaser Power

In the case of NASCAR customers are its audiences. Viewers can change to other rivals quickly since audiences will having low switching expense.

Threat of Alternative

Replacements are referred as options. The substitutes in this case can be other home entertainment suggests like audiences can shift to other sports. So there are large range of replacements are offered in this scenario which recommends that hazard of alternative is high.

Danger of New Entry

In the case of NASCAR danger of brand-new entry is low. They need to develop cars and racing tracks and likewise requires to pay significant amount to chauffeurs for changing.

PESTEL Analysis


As NASCAR is working in different markets so it needs to face various regulations. It is likewise noted that NASCAR has actually faced increased scrutiny relating to regulative. Every federal government has different concern so NASCAR has to be prepared for it as top priority can be moved to other sector.


Economic elements includes tax rate, exchange rate, economic performance of that particular business, 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 leverage abilities of workers to develop brand-new opportunities and enhance existing opportunities.


Each has various social worths and norms. It assists in understanding concerning society and preference of consumers.


Technology has influence on nearly every organisation. It consists of development in business technique. In this case of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help it can be noted that companies are greatly investing for research and advancement. NASCAR must also deal with its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays an important role in every country because every nation has various legal terms. Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis requires to be make sure that they protect their legal rights in every county so any company does not damage to its legal rights.


Environmental factors are likewise crucial for every company. NASCAR requires to make sure that its automobiles are not creating pollution more than appropriate level.

7 P's of Marketing


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


Pricing strategy of NASCAR for its race events tickets is based upon the venue and significance of the racing occasions. Together with race occasions tickets, NASCAR likewise charge various service charge to its stakeholders and earns earnings. For example it charged approving charges of $1-2 million per race typically in 2005.


Promotional strategy of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help is extremely based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. The company is not totally relied upon its fan base for its promotion and promote through local radio stations too. The business has actually also embraced the merchandising media of promo, in which the business offers products with its logo.


NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in the majority of the cities in United States to comprehend nationwide appeal.


Nestle individuals technique is consisted of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial element of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis A marketing strategy as its events are the source of entertainment for crowd. Its individuals strategy consists of efforts to provide much better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under individuals method of NASCAR.


A number of company processes are required to perform racing occasions in an effective way. These procedures include; proper schedule of time, arrangement for spectators, selling tickets, plan of space for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, enhancing spectators experience and increasing fan base.

Physical Proof.

Most important physical proofs for the NASCAR consists of the presence of its racing tracks, stock cars and racing events. Along with it, its merchandising brands including t-shirts, caps, goodies etc., also serve as a physical evidence for NASCAR.

Product Life Cycle Evaluation.

The racing occasions by NASCAR was introduced on June 19, 1949. At the very first phase competitors for NASCAR was low, as the rivals drove the cars and trucks comparable to the cars driven by ordinary people.


After performing its first race effectively the business moved towards constructing its own tracks. The very first Arvin Exhaust Thailand Building An Asian Supply Base Case Study Help based track, namely the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the business moved towards broadcasting its races on tv in 1979. The first event broadcasted on tv was flag-to-flag protection of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular company into one with worldwide fan base. He started a brand-new period of financially rewarding sponsorships and television contracts for NASCAR.


The maturity duration for NASCAR started with the efforts of William France Jr., with the company having vast array of revenue sources. The business has about 500 sponsors with relaying its occasions in about 150 countries. The business has large number of tracks in the majority of the cities of United States.


The decrease in the business's offerings began after 2005 with average participation rate per race declined 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 cost of coming to tracks for viewers due to increasing fuel prices, and the shifting of its fan base towards other sports.

Market Division.

The market 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 Help is based upon the geographical presence of its tracks in different states and cities in United States, and the television broadcasting of its occasions in various countries. 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 large geographical division supplies the business local as well as worldwide fan base.


The market division of NASCAR is likewise highlydiverse based upon the gender, income and age of the customer. Its existing fan base is majorly consisted of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Nevertheless presently NASCAR is attempting to increase its target market to the young growing population and kinds as well. To increase the group section of its market NASCAR must revise its marketing strategies to bring in more age groups and lower its prices to go into in the market sector with a low average earnings.( htt1).


NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to buy tickets and see the races once in a week. NASCAR has actually tried to increase the quality of its racing by presenting phase racing, they also have tried to lower prices and make the occasion more convenient by presenting live racing.


Behavioural segmentation of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis is based upon the behaviour of fans in regards to seeing the race survive on the television or by going in the occasions. Currently, the fans choice is towards seeing the race in the house on tv instead of going, as the client experience at NASCAR tracks is not beneficial along with expensive. This preference makes the rates for attendance lower than the rates for tv audiences. NASCAR needs to change the behaviour of its fan base by presenting qualitative services at its tracks.

Target audience.


One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has excellent prospective for NASCAR as the population was growing at a greater 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 likewise one of the potential target market sector for NASCAR, as they are more connected socially than other groups. Vehicle racing video games established by Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards tailoring and improving its digital functions to draw in the kids target market.

Generation Y.
Generation Y target market includes those who spent 5 times more resources on discretionary costs i.e. acquiring tickets for racing occasions, than others. This substantial expense makes the segment capacity for NASCAR marketing technique of increasing its fan base. The marketplace segment is also easy to technique as 81% of the Y Generation customer utilizes Facebook every day and the use is two times of utilizing television and radio. The market section views sports as a get-together, rather than adherence to sport. The market sector considers NASCAR as an organization lacking in developing a multiculturalism atmosphere. Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution ought to take numerous steps to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing helps in taking choices concerning marketing.


It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, economic, social, technical, environmental and legal and is stated above.


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


Collaborations includes suppliers, providers and alliances of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Analysis. It is worked together with different racing groups which are taking part in racing. It likewise worked together with Turners Sport for digital rights. NASCAR used to get pay check of around $15 million yearly from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot throughout race at track.


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


Groups generally represents sponsors in NASCAR and the medium of marketing is chauffeurs. These motorists can go against NASCAR if they got better chance in terms of prizes and tv exposure.

Marketing Techniques.

1. Establishing and Keeping Facebook Page.
One of the potential target markets sectors for NASCAR is Hispanics which is the growing population segment of U.S.A. but sadly NASCAR had been not able to attract the this targeted section. In order to draw in the young growing generation the NASCAR need to market by using social networks like Facebook. It ought to establish a Facebook page containing the info 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 day-to-day basis to offer info about its approaching events. This would make the target market segment more helpful about business and would result in drawing in big fans base.
2. Developing and Upgrading Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Display). The major factor behind it is that, the racers primarily play in groups and are unable to construct a crucial account and preserve a close contact with fans. The bad contacts with fans lead to less attraction of audiences towards the racers and a low star power. Star power is a crucial aspect for drawing in audiences towards tracks and towards television. The star power for the chauffeurs at NASCARA might be improved by creating and updating accounts of essential chauffeurs by NASCARA itself. This would get rid of the requirement of requiring chauffeurs to preserve their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Establishing New Games and enhancing current games for kids.
In order to draw in these kids, NASCARA needs to improve its existing racing games by presenting personalization in the cars i.e. altering colours, selection of speed, presenting group racing in the game, utilizing much better graphics related to the racing tracks and introducing numerous levels in the game. All these modifications in the present video game would provide better experience to kids.
Along with it, NASCAR must also develop brand-new video games related to racing like kids racing with kids characters as motorists, animation racing with racing between different animation characters with an option of picking the favourite animation character for the kids. These techniques would make it possible for the company to bring in one of its possible target segments.
4. Introducing multiculturalism at occasions.
Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution events are comprised of fans with really few multiculturalism, due to cost of arrival in occasions, making it unappealing for the consumers viewing sport events as social occasions i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, for that reason the business ought to take certain procedures to attract this possible target market. It needs to embrace strategies to bring in the customers far from the tracks place with various culture. The strategy to do so could be supplying unique discounts on tickets or complimentary 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 Consumer Experience at Tracks.
NASCAR ought to work on facilities and amenities at tracks due to the fact that on the race day viewers got disappointed. Viewers have lots of expectations from Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution because in same industry other business are offering better services than NASCAR. IF NASCAR don't work on this problem then its fans might shifted to its rivals.

Marketing Spending plan

Marketing budget plan made on the basis of the above strategies for the period of 5 years from 2011 to 2015, reveals the cost related information for the marketing strategies. It can be seen that method 5 of improving customer experience at tracks would require greatest initial financial investment and cost and method 4 of presenting multiculturalism will need least expensive preliminary investment with lowest further per year expense.
NOTE: The values about cost are presumed on logical basis due the absence of facts and figures associated with cost in the event research study. Inflation rate of United States is presumed to be 10%.

On the basis of deep analysis of the internal and external elements of Arvin Exhaust Thailand Building An Asian Supply Base Case Study Solution causing the decline of television viewership rate and participation rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long run. These techniques would handle internal aspects like bad customer experience at tracks, inadequate social media marketing, incapable digital medias like games, lack of culturalisms at tracks etc., as well as with external factors like moving of fans towards other sports, demographical modifications in America and changing family life designs.