Big Deal Or No Big Deal Case Study Solution & Analysis
Big Deal Or No Big Deal Case Study Solution (National Association for Stock Automobile Auto Racing) is an organization carrying out series of Stock Car racing in United States and functioning as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. The organization was established in 1947, by "Big Expense" France. NASCAR set up Stock Cars and truck Racing occasions in United States with the presence of about 130000 viewers typically in 2005. It likewise transmitted its occasions in about 150 nations. Stock Automobile Racing by NASCAR is the second largest spectator sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of income for Big Deal Or No Big Deal Case Study Help consists of; 10% of the total income from tv rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed corporate culture with the non-interventionist method. This non collaborative method brings stress in the sport. The building of Vehicle of Tomorrow by Big Deal Or No Big Deal Case Study Analysis, with an intent of security for the drivers, brought different stress amongst the stakeholders of the sport.
The communication audit, performed in 2010, exposed that despite the reality that the service extremely rely on the communications between its stakeholders, there was no identifiable company communication method. (
The audit mentioned various lacking of NASCAR in regards to absence of internal integration, lack of fan management strategy and lack of digital and social media of marketing. The business has complicated ecosystem with independent tracks, teams and motorists. This structure with closed business culture bring various difficulties in accelerating a modification. Other partners in community includes the media networks i.e. tv and radio, and corporate online marketers.
Big Deal Or No Big Deal Case Study Help viewers was extremely faithful to the sport and the brands related to the NASCAR, making it appealing for sponsors and business marketers.
The business is currently dealing with the issue of declining rates of participation at racing tracks and rates of television viewers. This can put a considerable influence on its revenues from sponsors, media rights, and from other sources of income.
Although the business was rather successful till 2005 with its conventional marketing strategies, but soon after 2005 the company begins dealing with different issues consisting of decrease of its fan base. Numerous external along with internal elements are responsible for the decline. Internal aspects include; inadequate financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and develop generational loyalty. Other difficulties for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, and so on.
NASCAR core competencies includes it has rights of dictating rules as sanctioning body. Policies and guidelines relating to expert stock cars and truck racing are determined by NASCAR like if any group with needed abilities and resources can enter into races by following rules and policies determined by NASCAR. All the events of NASCAR are sponsored by corporates since of most significant brand commitment of fans toward brand names marketed by Big Deal Or No Big Deal Case Study Analysis.
Weak points of NASCAR includes its close culture which is non collective. Big Deal Or No Big Deal Case Study Help develops Automobile of Tomorrow without cooperation so result is that drivers did not like that concept. It was likewise found that NASCAR had no efficient strategy for organisation interaction.
NASCAR generally utilized to rely on conventional media sources like local newspaper for publicity of its sports. NASCAR likewise came to know from these traditional media outlets that sport was difficult to cover. When sports fans were asked regarding popular celebs and stars then NASCAR chauffeur was not discovered even in leading twenty responses.
Economic down turn was experienced in late 2000 which can be hazard 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 likewise results in increase fuel costs which also impacted NASCAR. Now if NASCAR make considerable investments in new sectors which are based on new clients 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 utilized to evaluate industry in which business is working. It helps in determining what are strengths and weak point of any specific industry. It recommend that every market is different from one another. It is necessary to understand market in which company is working because NASCAR's bottom line i.e. net earnings is greatly depends upon this. There are 5 forces that are used to determine success, strength and beauty of Big Deal Or No Big Deal Case Study Help company.
This force indicates capability of rivals. Teams generally represents sponsors in NASCAR and the medium of marketing is motorists. Therefore it can be stated that drivers and race vehicles are rivals. If they got better chance in terms of rewards and television exposure, these motorists can go versus Big Deal Or No Big Deal Case Study Analysis. Then audiences can shift to those other intriguing cars and chauffeurs, if audiences enjoy other race cars and chauffeurs more than NASCAR. NASCAR might be having risk from its 2 direct rivals that is Solution 1 and Moto GP. They need to produce competitive benefits for motorists so they do not shift to other rivals.
If company shifts from one provider to another, the supplier power suggests the number of providers are available in industry and what is the cost associated with provider. Since drivers with needed abilities and resources are restricted, in this industry there is supply monopoly.
This force is regarding to clients that is it easy for customers to shift to other items. If there is more switching cost is associated then clients are less likely to switch. When it comes to NASCAR clients are its viewers. Viewers can switch to other competitors quickly since viewers will having low changing expense.
Danger of Alternative
Alternatives are referred as options. The substitutes in this case can be other home entertainment indicates like viewers can move to other sports. So there are wide variety of replacements are readily available in this situation which suggests that hazard of substitute is high.
Risk of New Entry
It is defined as how it is easy for any business to enter in that particular industry. In the case of Big Deal Or No Big Deal Case Study Solution threat of brand-new entry is low. If any business needs to go into in this service than they have to make heavy investments, due to the fact that. They require to develop vehicles and racing tracks and also requires to pay substantial amount to drivers for switching.
As NASCAR is working in numerous markets so it needs to face various regulations. It is also kept in mind that NASCAR has actually dealt with increased examination regarding regulative. Every federal government has different priority so NASCAR has to be prepared for it as top priority can be shifted to other sector.
Economic elements includes taxation rate, currency exchange rate, financial efficiency of that specific business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be affected if there is federal government intervention in the marketing and sales sector. NASCAR can take advantage of abilities of workers to develop brand-new opportunities and enhance existing opportunities.
Every society is different from each other. Each has various social worths and norms. It helps in understanding regarding society and choice of clients. Social aspects consists of traditions, culture, attitudes towards particular services and products, demographics, standards, interests etc. It can be concluded that advertising through other means rather than conventional (i.e. newspaper) can be chosen in this society.
In this case of NASCAR it can be noted that business are greatly spending for research and development. NASCAR must likewise work on its media rights policy with Turner Broadcasting System.
Because every country has various legal terms and conditions, Legal plays an important role in every country. Big Deal Or No Big Deal Case Study Analysis requires to be make sure that they protect their legal rights in every county so any company does not hurt to its legal rights.
Ecological aspects are also crucial for each business. Because generally federal governments don't enable those organisation which can harm to environment. These environmental factors consists of laws regarding pollution, environment change, safe waste disposal, policies relating to insurance etc. NASCAR requires to ensure that its cars are not generating contamination more than appropriate level.
7 P's of Marketing
The products of Big Deal Or No Big Deal Case Study Analysis in its product portfolio are; racing events 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 strategy of NASCAR for its race events tickets is based upon the location and significance of the racing events. Along with race occasions tickets, NASCAR also charge numerous service charge to its stakeholders and earns revenue. It charged sanctioning fees of $1-2 million per race on average in 2005.
Advertising strategy of Big Deal Or No Big Deal 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. However, the company is not totally trusted its fan base for its promotion and promote through regional radio stations too. The business has also embraced the merchandising media of promotion, in which the business sells products with its logo.
NASCAR have its racing tracks in various 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 the majority of the cities in United States to comprehend nationwide appeal.
Nestle people technique is comprised of offering much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential aspect of Big Deal Or No Big Deal Case Study Analysis A marketing strategy as its events are the source of home entertainment for crowd. Its people strategy includes efforts to supply much better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under individuals method of NASCAR.
A number of organisation processes are needed to carry out racing occasions in an effective way. These procedures consist of; correct schedule of time, arrangement for viewers, offering tickets, arrangement of area for sponsors, managing logistics and so on. These all processes contribute I constructing NASCAR image, enhancing viewers experience and increasing fan base.
Crucial physical evidences for the NASCAR includes the existence of its racing tracks, stock cars and racing events. In addition to it, its retailing brands including t-shirts, caps, goodies etc., likewise serve as a physical proof 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 rivals drove the automobiles similar to the vehicles driven by regular people.
After conducting its very first race effectively the company moved towards developing its own tracks. The first Big Deal Or No Big Deal Case Study Solution based track, specifically 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 development of racing tracks the business moved towards relaying its races on tv in 1979. The first occasion transmitted 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 organization into one with international fan base. He initiated a new era of rewarding sponsorships and television contracts for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having large range of income sources. The business has about 500 sponsors with transmitting its occasions in about 150 nations. The business has a great deal of tracks in the majority of the cities of United States.
The significant causes of decrease include the monetary crisis of 2008, which increased the cost of showing up at tracks for audiences due to increasing fuel prices, and the shifting of its fan base towards other sports.
The marketplace segmentation of Big Deal Or No Big Deal Case Study Solution can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Big Deal Or No Big Deal Case Solution is based upon the geographical existence of its tracks in various states and cities in United States, and the television broadcasting of its events in numerous nations. The business has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical segmentation provides the company regional along with international fan base.
The demographic segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its present fan base is majorly consisted 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 group segment of its market NASCAR must revise its marketing techniques to draw in more age and lower its rates to enter in the marketplace section with a low average earnings.( htt1).
NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races once in a week. NASCAR has actually tried to increase the quality of its racing by introducing phase racing, they likewise have tried to lower rates and make the event more practical by presenting live racing.
Behavioural division of Big Deal Or No Big Deal Case Study Solution is based upon the behaviour of fans in terms of enjoying the race survive on the television or by entering the events. Presently, the fans preference is towards enjoying the race at home on television rather than going, as the client experience at NASCAR tracks is not favourable in addition to expensive. This preference makes the rates for participation lower than the rates for television audiences. NASCAR needs to alter the behaviour of its fan base by presenting qualitative services at its tracks.
One of the prospective 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 are also one of the prospective target market sector for NASCAR, as they are more linked socially than other groups. Automobile racing games established by Big Deal Or No Big Deal Case Study Help can be a prospective source of getting 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 target audience consists of those who spent 5 times more resources on discretionary costs i.e. purchasing tickets for racing events, than others. This big expense makes the sector capacity for NASCAR marketing strategy of increasing its fan base. The marketplace sector is likewise simple to approach as 81% of the Y Generation customer uses Facebook the usage and every day is twice of using tv and radio. The marketplace section views sports as a get-together, rather than adherence to sport. The marketplace section thinks about NASCAR as an organization lacking in producing a multiculturalism atmosphere. Big Deal Or No Big Deal Case Study Analysis must take numerous actions to enhance the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking choices regarding marketing. These 5 C's needs to be analysed correctly for taking any marketing decision. These 5 C's mean Climate, Business, Collaborators, Clients and Rivals.
It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, environmental and legal and is specified above.
Big Deal Or No Big Deal Case Study Analysis is a vehicle racing business with having USP of high quality car racing with an international structure. Its sector is sports group and events.
Collaborations includes suppliers, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million every year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.
The consumer of Big Deal Or No Big Deal Case Study Solution are its viewers. They target customers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and create generational commitment.
The direct competitors of NASCAR are Formula 1 and Moto GP. Groups typically represents sponsors in NASCAR and the medium of marketing is drivers. It can be said that chauffeurs and race automobiles are competitors. These drivers can go against Big Deal Or No Big Deal Case Study Solution if they got better chance in terms of prizes and television exposure.
1. Establishing and Preserving Facebook Page.
Among the potential target markets segments for NASCAR is Hispanics which is the growing population sector of U.S.A. however regrettably NASCAR had been unable to attract the this targeted section. In order to attract the young growing generation the NASCAR should market by utilizing social networks like Facebook. It should establish a Facebook page consisting of the details relating to the races and the locations of tracks to make the customer informative about the core operations of Big Deal Or No Big Deal Case Study Solution. It must also upgrade its Facebook page on day-to-day basis to offer info about its upcoming occasions. This would make the target market sector more helpful about the business and would result in drawing in big fans base.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs 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 reason behind it is that, the racers mainly play in teams and are not able to build an essential account and maintain 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 essential element for drawing in viewers towards tracks and towards tv. The star power for the motorists at NASCARA could be enhanced by creating and upgrading accounts of crucial motorists by NASCARA itself. This would remove the requirement of requiring motorists to keep their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Establishing New Games and improving existing games for kids.
Kids invested most of their time on playing games and using smartphones. But unfortunately, kids playing NASCARA have a worst experience of playing its video games. As a result, they are less attracted towards the sport. In order to bring in these kids, NASCARA needs to improve its existing racing games by presenting personalization in the automobiles i.e. altering colours, choice of speed, presenting group racing in the video game, using better graphics associated with the racing tracks and introducing various levels in the video game. All these adjustments in the present video game would offer much better experience to kids.
In addition to it, NASCAR ought to also construct new video games associated with racing like kids racing with kids characters as motorists, cartoon racing with racing in between different cartoon characters with an option of selecting the favourite animation character for the kids. These methods would make it possible for the business to draw in one of its potential target sections.
4. Introducing multiculturalism at occasions.
NASCAR events are comprised of fans with very couple of cultural variety, due to expense of arrival in events, making it unattractive for the customers perceiving sport events as social celebrations i.e. Generation Y customers. As the Generation Y clients are a potential target market for NASCAR, therefore the business should take particular steps to attract this possible target market.
5. Improving Client Experience at Tracks.
NASCAR needs to work on facilities and facilities at tracks since on the race day audiences got dissatisfied. Audiences have lots of expectations from Big Deal Or No Big Deal Case Study Analysis due to the fact that in exact same market other companies are offering better services than NASCAR. IF NASCAR don't work on this issue then its fans may moved to its competitors.
Marketing Budget plan.
Marketing spending plan made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, reveals the cost associated data for the marketing methods. It can be seen that strategy 5 of enhancing customer experience at tracks would need highest initial financial investment and cost and method 4 of introducing multiculturalism will require most affordable preliminary investment with most affordable further per year cost.
KEEP IN MIND: The worths about expense are assumed on rational basis due the absence of truths and figures associated with cost in the event study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external elements of Big Deal Or No Big Deal Case Study Help causing the decline of television viewership rate and attendance rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long term. These strategies would handle internal elements like bad consumer experience at tracks, insufficient social media marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, as well as with external factors like shifting of fans towards other sports, demographical modifications in America and altering family life styles.