Big Deal Or No Big Deal Case Study Solution & Analysis
NASCAR (National Association for Stock Car Auto Racing) is a company carrying out series of Stock Automobile racing in United States and acting as an approving body for driving the rules for Stock Car Racing. 2) Stock Automobile Racing by NASCAR is the second biggest viewer sport, with highest number of sponsors. 1) The other sources of revenue for Big Deal Or No Big Deal Case Study Help consists of; 10% of the overall revenue from television 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 method. The structure of Vehicle of Tomorrow by NASCAR, with an intent of safety for the chauffeurs, brought numerous tensions amongst the stakeholders of the sport.
The communication audit, carried out in 2010, revealed that regardless of the truth that the business highly rely on the interactions in between its stakeholders, there was no recognizable business interaction strategy. (
The audit pointed out different doing not have of NASCAR in terms of lack of internal integration, lack of fan management strategy and absence of social and digital media of marketing.
Big Deal Or No Big Deal Case Study Solution audiences was extremely loyal to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate online marketers.
The business is currently dealing with the issue of declining rates of presence at racing tracks and rates of television audiences. This can put a considerable influence on its revenues from sponsors, media rights, and from other sources of income.
The company was quite effective till 2005 with its standard marketing techniques, however quickly after 2005 the business starts facing different issues including decrease of its fan base. Numerous external in addition to internal elements are responsible for the decline. Internal aspects consist of; insufficient financial investment in social networks and other digital medias of.
Fan base of NASCAR made up of married males with an average age of 47, which passes their fandom to their youngsters and create generational loyalty. Other obstacles for NASCAR consists of 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, etc.
NASCAR core proficiencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and guidelines regarding expert stock vehicle racing are determined by NASCAR like if any group with needed skills and resources can get in into races by following rules and regulations dictated by NASCAR. All the occasions of NASCAR are sponsored by corporates since of biggest brand commitment of fans towards brand names advertised by Big Deal Or No Big Deal Case Study Solution.
Weak Points in SWOT Analysis are considered as external factors. Weak points includes the factors that stops company to perform at needed level of efficiency. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They usually used to form rules and other needed processes without intervention of others which results in bad cooperation. NASCAR develops Car of Tomorrow without cooperation so result is that chauffeurs did not like that principle. As this is racing sport so covering of sports by media is likewise tough. It was likewise discovered that NASCAR had no effective method for organisation interaction. They don't understand how to deal with problem if it took place off track. Inefficient business interaction results in that they don't have clear instructions for their long term goals. They do not understand that where they want to see this sport in future.
NASCAR typically used to rely on standard media sources like local paper for publicity of its sports. NASCAR also came to understand from these conventional media outlets that sport was hard to cover. When sports fans were asked concerning popular celebs and stars then NASCAR driver was not discovered even in leading twenty responses.
Economic down turn was experienced in late 2000 which can be risk for NASCAR due to the fact that if there is economic down turn then people would be having less return on investment. Economic down turn also results in boost fuel prices which likewise affected NASCAR. Now if NASCAR make significant financial investments in brand-new sectors which are based on brand-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 evaluate industry in which business is working. It helps in identifying what are strengths and weak point of any particular industry. It suggest that every market is various from one another. It is essential to understand industry in which company is working since NASCAR's bottom line i.e. net revenue is greatly depends on this. There are 5 forces that are utilized to recognize success, intensity and attractiveness of Big Deal Or No Big Deal Case Study Help service.
This force suggests ability of rivals. Teams typically represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be stated that chauffeurs and race cars and trucks are rivals. If they got better opportunity in terms of rewards and television exposure, these chauffeurs can go against Big Deal Or No Big Deal Case Study Help. If audiences delight in other race cars and trucks and chauffeurs more than NASCAR then audiences can move to those other intriguing vehicles and chauffeurs. NASCAR might be having threat from its two direct competitors that is Solution 1 and Moto GP. They require to develop competitive advantages for drivers so they do not shift to other rivals.
If company shifts from one provider to another, the supplier power suggests the number of suppliers are readily available in market and what is the cost associated with supplier. In this market there is supply monopoly since chauffeurs with needed skills and resources are limited.
In the case of NASCAR clients are its audiences. Audiences can change to other competitors quickly since viewers will having low changing cost.
Danger of Alternative
Substitutes are referred as alternatives. The alternatives in this case can be other home entertainment means like audiences can shift to other sports. There are wide range of alternatives are readily available in this scenario which suggests that threat of alternative is high.
Threat of New Entry
In the case of NASCAR threat of brand-new entry is low. They need to develop cars and trucks and racing tracks and likewise needs to pay hefty amount to chauffeurs for switching.
It can not be concluded from case study that there would be change in resource allowances. NASCAR had got benefit from lower taxation policies which results in increasing in earnings. So they made heavy investments in the research study and advancement. As NASCAR is working in different markets so it needs to deal with various regulations. It is also noted that Big Deal Or No Big Deal Case Study Analysis has actually faced increased examination regarding regulative. Every federal government has various top priority so NASCAR needs to be prepared for it as top priority can be shifted to other sector.
Financial elements consists of tax rate, exchange rate, economic performance of that particular business, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can utilize abilities of workers to produce new opportunities and enhance existing opportunities.
Each has various social worths and standards. It helps in understanding relating to society and preference of customers.
In this case of NASCAR it can be kept in mind that business are heavily spending for research study and advancement. NASCAR must also work on its media rights policy with Turner Broadcasting System.
Due to the fact that every nation has different legal terms and conditions, Legal plays a crucial role in every nation. Big Deal Or No Big Deal Case Study Analysis needs to be make certain that they safeguard their legal rights in every county so any business does not damage to its legal rights.
Environmental factors are likewise crucial for every company. Since generally governments do not permit those service which can harm to environment. These environmental elements includes laws regarding contamination, environment change, safe garbage disposal, policies regarding insurance coverage etc. NASCAR requires to make certain that its cars and trucks are not producing contamination more than acceptable level.
7 P's of Marketing
The items of Big Deal Or No Big Deal Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Pricing technique of NASCAR for its race events tickets is based upon the venue and significance of the racing events. Along with race occasions tickets, NASCAR also charge numerous service fees to its stakeholders and makes earnings. It charged approving charges of $1-2 million per race on average in 2005.
Promotional strategy of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in various cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to comprehend across the country appeal.
Nestle people strategy is consisted of providing much better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial aspect of Big Deal Or No Big Deal Case Study Analysis A marketing method as its occasions are the source of home entertainment for crowd. Its people technique consists of efforts to provide better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under people method of NASCAR.
Several business processes are needed to carry out racing events in an effective method. These procedures consist of; proper schedule of time, arrangement for spectators, selling tickets, plan of space for sponsors, handling logistics and so on. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Essential physical evidences for the NASCAR includes the existence of its racing tracks, stock automobiles and racing occasions. Together with it, its retailing brands including tee shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.
Product Life Process Assessment.
The racing events by NASCAR was presented on June 19, 1949. At the first stage competition for NASCAR was low, as the competitors drove the cars and trucks comparable to the cars driven by common people.
The very first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the business 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 regional Sport popular company into one with international fan base. He initiated a brand-new era of rewarding sponsorships and tv agreements for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having large range of earnings sources. The company has about 500 sponsors with relaying its events in about 150 nations. The company has large number 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 declined by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major causes of decrease consist of the monetary crisis of 2008, which increased the cost of coming to tracks for viewers due to increasing fuel costs, and the moving of its fan base towards other sports.
The marketplace division of Big Deal Or No Big Deal Case Study Help can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Big Deal Or No Big Deal Case Analysis is based upon the geographical presence of its tracks in numerous 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 division offers the company regional as well as worldwide fan base.
The demographic division of Big Deal Or No Big Deal Case Study Help is also highlydiverse based upon the gender, income and age of the consumer. To increase the demographic sector of its market NASCAR ought to modify its marketing methods to draw in more age groups and lower its costs to go into in the market segment with a low average earnings.
NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to acquire tickets and see the races when in a week. NASCAR has actually attempted to increase the quality of its racing by introducing phase 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 viewing the race live on the tv or by going in the occasions. Presently, the fans preference is towards watching the race at home on tv rather than going, as the client experience at NASCAR tracks is not favourable as well as expensive.
One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has great prospective for NASCAR as the population was growing at a higher rate and it was anticipated to become 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 prospective target market section for NASCAR, as they are more linked socially than other groups. Developing fan base among kids can offer a potential boost in the variety of fans for racing due to their connectivity. Kids invest the majority of their times in using mobile phones and playing video games. Car racing games developed by Big Deal Or No Big Deal Case Study Analysis can be a possible source of acquiring attention of kids towards NASCAR track racing. However, NASCAR's digital features related to kids are not efficient in getting the attention. NASCAR needs more attention towards tailoring and improving its digital functions to attract the kids target market.
This substantial expense makes the section potential for NASCAR marketing technique of increasing its fan base. The market section thinks about NASCAR as an organization lacking in producing a multiculturalism atmosphere. NASCAR 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 assists in taking choices concerning marketing. These 5 C's requirements to be analysed appropriately for taking any marketing choice. These 5 C's represent Environment, Business, Collaborators, Clients and Rivals.
It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, environmental and legal and is specified above.
Big Deal Or No Big Deal Case Study Solution is a vehicle racing company with having USP of high quality vehicle racing with a global structure. Its sector is sports group and occasions.
Collaborations includes suppliers, suppliers and alliances of Big Deal Or No Big Deal Case Study Help. It is worked together with various racing groups which are participating in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot throughout race at track.
The consumer of Big Deal Or No Big Deal Case Study Analysis are its audiences. They target consumers 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 create generational commitment.
Groups normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. These motorists can go against NASCAR if they got much better chance in terms of prizes and television direct exposure.
1. Maintaining and establishing Facebook Page.
One of the possible target audience sections for NASCAR is Hispanics which is the growing population section of U.S.A. but regrettably NASCAR had actually been unable to draw in the this targeted section. In order to draw in the young growing generation the NASCAR should market by utilizing social media like Facebook. It ought to develop a Facebook page including the information relating to the races and the places of tracks to make the customer useful about the core operations of Big Deal Or No Big Deal Case Study Analysis. It ought to also upgrade its Facebook page on day-to-day basis to provide details about its upcoming events. This would make the target audience segment more informative about the business and would lead to drawing in big fans base.
2. Establishing and Upgrading Accounts of Secret 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 significant factor behind it is that, the racers mostly play in groups and are not able to build a key account and preserve 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 element for bring in audiences towards tracks and towards tv. The star power for the motorists at NASCARA could be enhanced by producing and upgrading accounts of crucial drivers by NASCARA itself. This would remove the requirement of requiring motorists to preserve their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Establishing New Games and enhancing existing games for kids.
Kids invested most of their time on playing video games and utilizing smartphones. But regrettably, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less brought in towards the sport. In order to draw in these kids, NASCARA needs to improve its current racing video games by presenting modification in the cars and trucks i.e. changing colours, selection of speed, introducing group racing in the game, utilizing much better graphics related to the racing tracks and presenting different levels in the video game. All these modifications in the existing video game would supply better experience to kids.
In addition to it, NASCAR must also build new games related to racing like kids racing with kids characters as drivers, animation racing with racing between numerous cartoon characters with an option of choosing the preferred animation character for the kids. These strategies would enable the business to attract one of its potential target sections.
4. Introducing multiculturalism at events.
Big Deal Or No Big Deal Case Study Analysis events are consisted of fans with really couple of multiculturalism, due to cost of arrival in events, making it unattractive for the customers perceiving sport occasions as affairs i.e. Generation Y customers. As the Generation Y customers are a possible target market for NASCAR, therefore the business needs to take specific procedures to attract this possible target audience. It needs to adopt strategies to draw in the clients far from the tracks area with various culture. The technique to do so could be offering unique discount rates on tickets or totally free tickets to viewers coming from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Consumer Experience at Tracks.
Since on the race day viewers got disappointed, NASCAR must work on facilities and features at tracks. Viewers have many expectations from NASCAR due to the fact that in exact same industry other business are providing much better services than NASCAR. Then its fans might shifted to its rivals, if NASCAR don't work on this issue. According to fans there were not adequate centers were available as compare to other sports suppliers. NASCAR should make sure that it supply appropriate centers that consists of cleaned up washrooms, comfortable seating arrangement. They ought to also offer WIFI services and ease of access of charge card throughout that track. It must be also make certain that there are enough jumbo turns placed at all needed places. There ought to be also food stalls that provide quality food to audiences. In this way audiences will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Spending plan
Marketing budget plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, shows the cost related data for the marketing strategies. (See Appendix B). It can be seen that technique 5 of improving customer experience at tracks would require highest preliminary financial investment and expense and strategy 4 of presenting multiculturalism will need least expensive preliminary investment with least expensive even more annually expense. The company ought to prioritize the resource allotment on these strategies on the basis of its available resources and the potential advantages which the strategy would provide.
NOTE: The values about cost are presumed on reasonable basis due the absence of figures and truths related to cost in the case research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external aspects of Big Deal Or No Big Deal Case Study Help causing the decrease of television viewership rate and participation rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long run. These strategies would cope with internal factors like poor consumer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, along with with external elements like shifting of fans towards other sports, demographical changes in America and altering domesticity styles.