Big Deal Or No Big Deal Case Study Solution & Analysis
Introduction
NASCAR (National Association for Stock Vehicle Car Racing) is a company conducting series of Stock Cars and truck 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 second largest viewer sport, with highest number of sponsors. 1) The other sources of income for Big Deal Or No Big Deal Case Study Solution consists of; 10% of the total earnings from tv rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed business culture with the non-interventionist method. The building of Car of Tomorrow by NASCAR, with an intention of safety for the drivers, brought different stress amongst the stakeholders of the sport.
The communication audit, performed in 2010, revealed that regardless of the fact that the business extremely rely on the interactions in between its stakeholders, there was no identifiable business interaction method. (
The audit pointed out numerous doing not have of NASCAR in terms of absence of internal combination, absence of fan management method and absence of digital and social media of marketing.
Big Deal Or No Big Deal Case Study Help viewers was highly faithful to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate online marketers.
Issue Statement.
The business is presently facing the issue of decreasing rates of attendance at racing tracks and rates of tv audiences. This can put a substantial effect on its earnings from sponsors, media rights, and from other sources of profits.
Situational Analysis.
Although the business was quite effective till 2005 with its traditional marketing methods, but not long after 2005 the company starts dealing with numerous issues including decrease of its fan base. Several external as well as internal factors are responsible for the decline. Internal factors consist of; inadequate financial investment in social media 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 develop generational commitment. Other difficulties for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, and so on.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths defined as company's qualities which are different from its competitors. These are business's core competencies on which company performance or company success based upon. Big Deal Or No Big Deal Case Study Help core competencies includes it has rights of determining guidelines as sanctioning body. Guidelines and rules concerning expert stock vehicle racing are dictated by NASCAR like if any team with required abilities and resources can enter into races by following guidelines and regulations determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to relay in more than 150 nations around the globe with more than $56 million incomes. The primary sources of their profits come from television rights, sanctioning fees, sponsorship and licensing. It has longest season of 10 months and having ownership of three national 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. Due to the fact that of most significant brand loyalty of fans towards brand names promoted by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weak points.
Weaknesses in SWOT Analysis are thought about as external aspects. Weaknesses consists of the elements that stops business to carry out at needed level of efficiency. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist technique. They generally utilized to form guidelines and other needed procedures without intervention of others which results in poor cooperation. For example NASCAR establishes Car of Tomorrow without cooperation so result is that motorists did not like that idea. As this is racing sport so covering of sports by media is also challenging. It was likewise found that NASCAR had no reliable technique for service communication. If it took place off track, they don't understand how to handle problem. Ineffective business communication leads to that they don't have clear direction for their long term goals. They do not understand that where they wish to see this sport in future.
Opportunities.
NASCAR typically used to rely on conventional media sources like regional newspaper for promotion of its sports. NASCAR likewise came to know from these traditional media outlets that sport was tough to cover. When sports fans were asked relating to popular stars and stars then NASCAR motorist was not found even in top twenty responses.
Dangers
Dangers in SWOT analysis are specified as external elements that can risk to business's success. Due to the fact that if there is economic down turn then people would be having less return on investment, Economic down turn was experienced in late 2000 which can be danger for NASCAR. Earning of individuals would be effected and they would be more mindful in spending their loan. Economic down turn also leads to boost fuel rates which likewise impacted NASCAR. Due to the fact that fans of NASCAR utilized to attend its occasion from long distances. NESCAR had a rule of 65/25/10 for earnings distribution. 65 percent profits from media rights would be distributed to race tracks, 25 percent earnings would be distributed to contending group and remaining 10 percent would be retained by NESCAR which is sanctioning body. Completing group wanted to increase their part of earnings from 25 percent due to the fact that of increase in operating expense of a race group and likewise there is decrease in the number of full-season sponsorship. NESCAR also deals with threats from other sponsors due to the fact that they are making enormous financial investments to improve experience of fans. Which includes upgrading existing opportunities, developing brand-new avenues, supplying Wi-Fi facility and also supplying other interactive mediums to connect sports on smartphones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and develop generational commitment. So the difficulty is that the household system in America was changing resulting in reduction of impact of married male fan base over their youngsters. Together with it understandings about automobile was likewise altering with viewing car a car to reach at point B from point A, instead of as an enjoyable project. Now if Big Deal Or No Big Deal Case Study Help make significant financial investments in brand-new segments which are based on brand-new customers then it might face unfavorable comments from its core fan base.
Porter's 5 Forces Analysis
It is essential to understand market in which business is working because NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are used to determine success, intensity and beauty of NASCAR business.
Competitive Rivalry
This force suggests capability of competitors. Groups generally represents sponsors in NASCAR and the medium of advertising is motorists. It can be said that chauffeurs and race automobiles are rivals. These motorists can go against NASCAR if they improved opportunity in regards to prizes and television direct exposure. Then viewers can shift to those other fascinating automobiles and chauffeurs, if audiences enjoy other race cars and drivers more than NASCAR. NASCAR might be having threat from its two direct competitors that is Solution 1 and Moto GP. They require to create competitive advantages for motorists so they do not shift to other competitors.
Provider Power
If business shifts from one supplier to another, the provider power shows the number of suppliers are offered in market and what is the cost associated with provider. In this market there is supply monopoly due to the fact that motorists with required abilities and resources are limited.
Purchaser Power
In the case of NASCAR customers are its audiences. Viewers can change to other competitors easily since viewers will having low switching expense.
Risk of Replacement
Alternatives are referred as alternatives. The replacements in this case can be other entertainment implies like audiences can shift to other sports. So there are wide range of substitutes are offered in this situation which suggests that threat of alternative is high.
Threat of New Entry
It is defined as how it is easy for any business to enter in that specific industry. When it comes to Big Deal Or No Big Deal Case Study Help risk of new entry is low. If any business needs to enter in this organisation than they have to make heavy financial investments, because. They require to build cars and trucks and racing tracks and also requires to pay hefty total up to drivers for changing.
PESTEL Analysis
Political
As NASCAR is working in various markets so it requires to face various regulations. It is likewise kept in mind that NASCAR has actually faced increased scrutiny concerning regulative. Every federal government has various priority so NASCAR has to be prepared for it as top priority can be moved to other sector.
Cost-effective
Financial aspects includes taxation rate, currency exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its rivals can be impacted if there is government intervention in the marketing and sales sector. NASCAR can take advantage of abilities of employees to develop new chances and enhance existing opportunities.
Social
Each has different social values and norms. It helps in comprehending relating to society and preference of clients.
Technical
In this case of NASCAR it can be kept in mind that business are greatly investing for research and development. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.
Legal
Legal plays a crucial function in every country since every nation has various legal terms. Big Deal Or No Big Deal Case Study Solution needs to be make certain that they secure their legal rights in every county so any company does not damage to its legal rights.
Environmental
Environmental factors are also essential for every business. NASCAR needs to make sure that its automobiles are not generating contamination more than appropriate level.
7 P's of Marketing
Product
The products of Big Deal Or No Big Deal Case Study Analysis in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Price.
Pricing technique of NASCAR for its race occasions tickets is based upon the venue and importance of the racing occasions. Together with race occasions tickets, NASCAR also charge numerous service fees to its stakeholders and earns earnings. For example it charged sanctioning charges of $1-2 million per race typically in 2005.
Promotion.
Promotional technique of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
Location.
NASCAR have its racing tracks in numerous cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle 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 grasp across the country appeal.
People.
Nestle people strategy is comprised of providing much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important element of Big Deal Or No Big Deal Case Study Solution A marketing technique as its events are the source of entertainment for crowd. Its people method includes efforts to offer better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under people method of NASCAR.
Procedures.
Several service processes are required to perform racing events in an efficient way. These procedures include; appropriate schedule of time, plan for spectators, selling tickets, plan of space for sponsors, managing logistics and so on. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.
Physical Proof.
Essential physical proofs for the NASCAR consists of the presence of its racing tracks, stock vehicles and racing occasions. Together with it, its merchandising brand names consisting of tee shirts, caps, goodies and so on, also function as a physical evidence for NASCAR.
Product Life Process Evaluation.
The racing occasions by Big Deal Or No Big Deal Case Study Help was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first phase competitors for NASCAR was low, as the rivals drove the cars and trucks comparable to the cars and trucks driven by common individuals.
Growth.
The first NASCAR based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards relaying its races on television in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a regional Sport popular company into one with global fan base. He started a brand-new age of lucrative sponsorships and television contracts for NASCAR.
Maturity.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having large range of earnings sources. The business has about 500 sponsors with broadcasting its events in about 150 countries. The business has a great deal of tracks in most of the cities of United States.
Decline.
The major causes of decrease consist of the monetary crisis of 2008, which increased the cost of showing up at tracks for viewers due to increasing fuel rates, and the moving of its fan base towards other sports.
Market Division.
The marketplace division of Big Deal Or No Big Deal Case Study Help can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical division of Big Deal Or No Big Deal Case Help is based upon the geographical presence of its tracks in different states and cities in United States, and the tv broadcasting of its occasions in various 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 segmentation provides the business regional as well as global fan base.
Demographic.
The demographic segmentation of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its current fan base is majorly comprised of male married fans with an average age of 47 years and an income around $30-50 thousands. Currently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the market segment of its market NASCAR must revise its marketing techniques to bring in more age groups and lower its rates to go into in the market section with a low typical earnings.( htt1).
Psychographic.
The mental qualities of the majority of the fans are rather comparable. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to buy tickets and see the races when in a week. 71% of them choose to acquire products with a NASCAR trademark name. They are rather extrovert and are willing to join other fans while racing. They desire quality racing with low price at convenient area. Although Big Deal Or No Big Deal Case Study Help has tried to increase the quality of its racing by presenting phase racing, they likewise have attempted to lower costs and make the occasion easier by presenting live racing.
Behavioural.
Behavioural segmentation of Big Deal Or No Big Deal Case Study Analysis is based upon the behaviour of fans in terms of seeing the race survive on the tv or by going in the occasions. Presently, the fans preference is towards enjoying the race at home on tv rather than going, as the customer experience at NASCAR tracks is not favourable as well as costly. This preference makes the rates for participation lower than the rates for tv viewers. NASCAR needs to change the behaviour of its fan base by introducing qualitative services at its tracks.
Target audience.
Hispanics.
One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market section has fantastic prospective for NASCAR as the population was growing at a higher rate and it was anticipated to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids.
Kids are also one of the potential target market segment for NASCAR, as they are more connected socially than other groups. Automobile racing video games developed by Big Deal Or No Big Deal Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and improving its digital features to draw in the kids target market.
Generation Y.
Generation Y target market includes those who invested 5 times more resources on discretionary expenditures i.e. buying tickets for racing occasions, than others. This substantial expense makes the segment potential for NASCAR marketing technique of increasing its fan base. The marketplace segment is likewise easy to technique as 81% of the Y Generation consumer utilizes Facebook every day and the usage is twice of utilizing television and radio. The marketplace section views sports as an affair, rather than adherence to sport. The market section considers NASCAR as an organization doing not have in producing a multiculturalism environment. Big Deal Or No Big Deal Case Study Solution must take numerous actions to enhance the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions regarding marketing. These 5 C's needs to be analysed correctly for taking any marketing decision. These 5 C's represent Climate, Business, Collaborators, Competitors and customers.
Climate/Context.
It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, ecological and legal and is mentioned above.
Business.
NASCAR is an automobile racing company with having USP of high quality car racing with a worldwide structure. Its sector is sports group and events. Its target audience is males in the age group of 15-60 years. Company has closed corporate culture and having non-interventionist approach.
Collaborations.
Collaborations includes distributors, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application.
Consumers.
The client of Big Deal Or No Big Deal Case Study Help are its viewers. They target clients 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 develop generational commitment.
Competitors.
The direct rivals of NASCAR are Formula 1 and Moto GP. Groups usually represents sponsors in NASCAR and the medium of advertising is drivers. For that reason it can be stated that chauffeurs and race automobiles are rivals. If they got better chance in terms of prizes and tv exposure, these drivers can go against NASCAR.
Marketing Strategies.
1. Establishing and Keeping Facebook Page.
One of the prospective target audience segments for NASCAR is Hispanics which is the growing population segment of USA but regrettably NASCAR had been not able 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 should develop a Facebook page including the info 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 must likewise upgrade its Facebook page on everyday basis to provide information about its upcoming occasions. This would make the target audience sector more helpful about the business and would result in drawing in large fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Display). The major reason behind it is that, the racers primarily play in groups and are not able to build a crucial account and keep a close contact with fans. The poor contacts with fans result in less destination of audiences towards the racers and a low star power. Star power is an important aspect for drawing in viewers towards tracks and towards television. The star power for the chauffeurs at NASCARA could be enhanced by creating and upgrading accounts of crucial chauffeurs by NASCARA itself. This would get rid of the requirement of forcing drivers to maintain their accounts and would lead to increasing fans attention towards NASCARA drivers.
3. Establishing New Games and improving present games for kids.
In order to draw in these kids, NASCARA should improve its present racing games by presenting customization in the cars and trucks i.e. changing colours, selection of speed, presenting group racing in the video game, utilizing much better graphics related to the racing tracks and presenting numerous levels in the video game. All these modifications in the existing game would offer much better experience to kids.
Along with it, NASCAR should also construct new video 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 animation character for the kids. These techniques would allow the business to draw in one of its potential target segments.
4. Introducing multiculturalism at events.
Big Deal Or No Big Deal Case Study Analysis occasions are consisted of fans with extremely couple of multiculturalism, due to expense of arrival in events, making it unattractive for the consumers perceiving sport occasions as affairs i.e. Generation Y clients. As the Generation Y clients are a possible target audience for NASCAR, therefore the company needs to take particular steps to attract this prospective target audience. It needs to embrace strategies to attract the consumers far from the tracks location with various culture. The strategy to do so could be supplying special discounts on tickets or complimentary tickets to audiences coming from a specific range or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more satisfied.
5. Improving Consumer Experience at Tracks.
NASCAR ought to work on infrastructure and amenities at tracks because on the race day viewers got dissatisfied. Viewers have lots of expectations from Big Deal Or No Big Deal Case Study Help since in very same industry other companies are providing much better services than NASCAR. IF NASCAR don't work on this concern then its fans may moved to its competitors.
Marketing Budget 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 associated data for the marketing techniques. (See Appendix B). It can be seen that method 5 of improving consumer experience at tracks would need greatest preliminary investment and cost and technique 4 of presenting multiculturalism will require lowest initial investment with most affordable even more per year cost. The business should focus on the resource allocation on these methods on the basis of its offered resources and the possible advantages which the technique would provide.
KEEP IN MIND: The values about expense are presumed on logical basis due the absence of realities and figures connected to cost in the case research study. Inflation rate of United States is presumed to be 10%.
Recommendations.
On the basis of deep analysis of the internal and external factors of Big Deal Or No Big Deal Case Study Help triggering the decrease of tv viewership rate and participation rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long term. These strategies would deal with internal aspects like poor customer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., in addition to with external aspects like moving of fans towards other sports, demographical modifications in America and changing domesticity styles.
