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Brazil Embracing Globalization Case Study Solution and Analysis


Intro

Brazil Embracing Globalization Case Study Analysis (National Association for Stock Car Auto Racing) is a company performing series of Stock Cars and truck racing in United States and serving as a sanctioning body for driving the rules for Stock Cars and truck Racing. The company was founded in 1947, by "Big Expense" France. NASCAR organize Stock Car Racing events in United States with the presence of about 130000 viewers on average in 2005. It also broadcast its occasions in about 150 nations. Stock Vehicle Racing by NASCAR is the second largest viewer sport, with highest number of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of earnings for Brazil Embracing Globalization Case Study Help includes; 10% of the overall income from tv rights, approving costs 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. Nevertheless this non collaborative method brings tensions in the sport. The structure of Automobile of Tomorrow by Brazil Embracing Globalization Case Study Analysis, with an intent of security for the chauffeurs, brought numerous tensions amongst the stakeholders of the sport.

The communication audit, carried out in 2010, revealed that despite the reality that business extremely rely on the interactions in between its stakeholders, there was no recognizable business communication technique. The industry's target clients, direction and goals were all unidentified.

The audit mentioned numerous doing not have of NASCAR in terms of absence of internal integration, absence of fan management strategy and absence of digital and social media of marketing. The company has complicated community with independent tracks, motorists and teams. This structure with closed corporate culture bring numerous obstacles in accelerating a change. Other partners in ecosystem includes the media networks i.e. tv and radio, and corporate online marketers.

Brazil Embracing Globalization Case Study Help viewers was highly devoted to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate marketers.

Problem Statement.

The company is presently facing the problem of declining rates of attendance at racing tracks and rates of television audiences. This can put a significant effect on its revenues from sponsors, media rights, and from other sources of revenue.

Situational Analysis.

The company was quite effective till 2005 with its traditional marketing techniques, however soon after 2005 the business starts facing numerous problems including decrease of its fan base. Several external in addition to internal aspects are accountable for the decline. Internal aspects consist of; insufficient investment in social networks and other digital medias of.

Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational commitment. Other obstacles for NASCAR includes the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, and so on.

SWOT Analysis.

Strengths.


NASCAR core proficiencies includes it has rights of dictating guidelines as approving body. Guidelines and guidelines relating to professional stock car racing are dictated by NASCAR like if any team with needed skills and resources can enter into races by following guidelines and guidelines determined by NASCAR. All the events of NASCAR are sponsored by corporates since of most significant brand name commitment of fans toward brand names marketed by Brazil Embracing Globalization Case Study Help.

Weaknesses.

Weak Points in SWOT Analysis are considered as external elements. Weaknesses consists of the factors that stops company to perform at required level of performance. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They normally used to form guidelines and other required processes without intervention of others which results in bad cooperation. For example NASCAR develops Car of Tomorrow without collaboration so result is that chauffeurs did not like that principle. As this is racing sport so covering of sports by media is also tough. It was likewise found that NASCAR had no efficient strategy for organisation communication. If it occurred off track, they don't know how to manage problem. Ineffective company interaction leads to that they do not have clear instructions for their long term goals. They do not know that where they wish to see this sport in future.

Opportunities.

Opportunities in SWOT analysis are external elements which can be beneficial to business or the external factors on which business is having competitive benefit. NASCAR normally utilized to depend on conventional media sources like regional paper for publicity of its sports. Normally these traditional media sources try to cover their home group and certain kind of occasions. NASCAR likewise came to know from these traditional media outlets that sport was tough to cover. Media landscape likewise altered from conventional to digital landscape. Papers went out of business. NASCAR can work on its capabilities to get maximum possible gain from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in digital and social media to get its benefits. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR used to make money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of each and every single video which is shoot throughout race at track. Then they are needed to pay licensing fees to Turner Sport, if media sources like papers, publications and cable television channels desire to post videos of races on their respective pages. So NASCAR can work on conditions and terms and attempt to work out with Turner Sports to get maximum advantages of it. Star power plays really essential function in creating profits from every sport. Nevertheless it was noted that Brazil Embracing Globalization Case Study Solution is lagging in this location i.e. star power. For example when sports fans were asked relating to popular celebs and stars then NASCAR chauffeur was not found even in top twenty actions. So NASCAR can put efforts in this location too for income generation. They ought to assist their drivers that how they can become sport stars. Four strategic focuses which are generated by research group can likewise be acted as opportunity for NESCAR. These 4 tactical focuses compares and analysis Brazil Embracing Globalization Case Study Solution techniques.

Risks

Hazards in SWOT analysis are specified as external elements that can danger to business's success. Because 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 risk for NASCAR. Earning of people would be effected and they would be more conscious in spending their cash. Economic down turn likewise leads to increase fuel rates which likewise impacted NASCAR. Because fans of NASCAR utilized to attend its occasion from cross countries. NESCAR had a guideline of 65/25/10 for profits distribution. 65 percent revenues from media rights would be distributed to race tracks, 25 percent income would be distributed to competing group and staying 10 percent would be kept by NESCAR which is approving body. Completing group wished to increase their portion of income from 25 percent since of boost in operating expense of a race team and also there is decline in the variety of full-season sponsorship. NESCAR also faces dangers from other sponsors because they are making enormous investments to enhance experience of fans. For example which includes updating existing avenues, building new opportunities, supplying Wi-Fi center and also supplying other interactive mediums to communicate sports on mobile phones. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and develop generational commitment. The challenge is that the household system in America was altering resulting in reduction of influence of married male fan base over their children. Together with it understandings about automobile was likewise changing with viewing car a car to reach at point B from point A, rather than as a fun job. If NASCAR make significant investments in brand-new sections which are based on brand-new customers then it might deal with unfavorable remarks from its core fan base, now.

Porter's 5 Forces Analysis

Porter's 5 forces is a design that is utilized to analyse market in which company is working. It helps in identifying what are strengths and weakness of any specific industry. It recommend that every industry is various from one another. It is important to comprehend market in which business is working because NASCAR's bottom line i.e. net profit is greatly depends upon this. There are 5 forces that are used to recognize profitability, strength and attractiveness of Brazil Embracing Globalization Case Study Help organisation.

Competitive Competition

These motorists can go against NASCAR if they got better chance in terms of rewards and tv direct exposure. If audiences take pleasure in other race automobiles and chauffeurs more than NASCAR then viewers can shift to those other intriguing automobiles and drivers. NASCAR might be having threat from its 2 direct competitors that is Solution 1 and Moto GP.

Provider Power

If business shifts from one supplier to another, the provider power suggests the number of providers are offered in market and what is the expense associated with provider. Since chauffeurs with required resources and skills are limited, in this market there is supply monopoly.

Purchaser Power

In the case of NASCAR customers are its audiences. Viewers can switch to other competitors quickly because audiences will having low changing expense.

Risk of Alternative

Alternatives are referred as alternatives. The replacements in this case can be other home entertainment means like audiences can shift to other sports. So there are vast array of replacements are available in this circumstance which recommends that hazard of alternative is high.

Threat of New Entry

In the case of NASCAR risk of brand-new entry is low. They require to construct vehicles and racing tracks and likewise requires to pay hefty quantity to chauffeurs for changing.

PESTEL Analysis

Political


As NASCAR is working in various markets so it requires to deal with various regulations. It is also kept in mind that NASCAR has actually dealt with increased analysis relating to regulatory. Every federal government has different priority so NASCAR has actually to be prepared for it as priority can be shifted to other sector.

Affordable

Financial elements includes taxation rate, currency exchange rate, economic efficiency of that specific business, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can leverage capabilities of employees to develop new opportunities and enhance existing chances.

Social

Every society is various from each other. Each has different social worths and standards. It helps in comprehending concerning society and choice of consumers. Social elements consists of customs, culture, mindsets towards specific services and products, demographics, standards, interests and so on. It can be concluded that advertising through other ways rather than conventional (i.e. newspaper) can be chosen in this society.

Technical

In this case of NASCAR it can be noted that business are heavily spending for research study and advancement. NASCAR should also work on its media rights policy with Turner Broadcasting System.

Legal

Legal plays an important function in every nation because every nation has various legal conditions. Brazil Embracing Globalization Case Study Help requires to be make sure that they safeguard their legal rights in every county so any company does not hurt to its legal rights.

Environmental

Environmental elements are also essential for every business. NASCAR needs to make sure that its automobiles are not producing pollution more than acceptable level.

7 P's of Marketing

Product

The items of Brazil Embracing Globalization Case Study Solution in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to corporate online marketers during broadcast of NASCAR races. (Hanlon, 2018).

Cost.

Pricing strategy of NASCAR for its race occasions tickets is based upon the place and importance of the racing events. Along with race occasions tickets, NASCAR also charge numerous service fees to its stakeholders and makes profits. For instance it charged approving charges of $1-2 million per race on average in 2005.

Promotion.

Advertising strategy 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 various cities in United States. The most important tracks of NASCAR consists of 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 understand across the country popularity.

People.

Nestle people strategy is comprised of supplying much better experience to its audiences, its fan base and to all of its stakeholders. People are a crucial element of Brazil Embracing Globalization Case Study Help A marketing technique as its occasions are the source of home entertainment for crowd. Its individuals strategy consists of efforts to supply better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under individuals strategy of NASCAR.

Procedures.

A number of company procedures are required to conduct racing occasions in an effective method. These processes consist of; proper schedule of time, arrangement for viewers, selling tickets, plan of area for sponsors, handling logistics and so on. These all processes contribute I building NASCAR image, enhancing viewers experience and increasing fan base.

Physical Evidence.

Essential physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing occasions. Along with it, its retailing brand names consisting of tee shirts, caps, goodies and so on, also function as a physical proof for NASCAR.

Item Life Cycle Evaluation.

The racing events by Brazil Embracing Globalization Case Study Analysis was introduced on June 19, 1949. The very 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 automobiles comparable to the vehicles driven by regular individuals.

Development.

The first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the company moved towards transmitting its races on television 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 financially rewarding sponsorships and television agreements for NASCAR.

Maturity.

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

Decrease.

The decrease in the company's offerings began after 2005 with average attendance rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant reasons for decrease consist of the financial crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.

Market Segmentation.

The marketplace division of Brazil Embracing Globalization Case Study Analysis can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographical.

The geographical division of Brazil Embracing Globalization Case Help is based upon the geographical presence of its tracks in numerous states and cities in United States, and the television broadcasting of its events in various nations. The company has 23 tracks in about 20 states of America and has tv broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation supplies the company local in addition to worldwide fan base.

Demographic.

The group segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly consisted of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Currently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the demographic segment of its market NASCAR ought to modify its marketing techniques to bring in more age groups and lower its costs to enter in the marketplace section with a low average earnings.( htt1).

Psychographic.

NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to purchase tickets and see the races as soon as in a week. NASCAR has tried to increase the quality of its racing by presenting stage racing, they also have attempted to lower rates and make the event more hassle-free by presenting live racing.

Behavioural.

Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the tv or by going in the occasions. Presently, the fans preference is towards watching the race at home on television rather than going, as the customer experience at NASCAR tracks is not favourable as well as expensive.

Target audience.

Hispanics.

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

Kids.

Kids are likewise one of the possible target market segment for NASCAR, as they are more connected socially than other groups. Car racing video games developed by Brazil Embracing Globalization Case Study Analysis can be a possible source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and enhancing its digital features to attract the kids target market.

Generation Y.
Generation Y target market includes those who invested five times more resources on discretionary expenditures i.e. purchasing tickets for racing occasions, than others. This big expenditure makes the section potential for NASCAR marketing technique of increasing its fan base. The marketplace segment is likewise simple to technique as 81% of the Y Generation consumer uses Facebook the usage and every day is twice of using tv and radio. The market section views sports as a social occasion, instead of adherence to sport. The market section considers NASCAR as an organization lacking in developing a multiculturalism atmosphere. Brazil Embracing Globalization Case Study Solution should take various steps to enhance the experience of Generation Y customers in its occasions.

5 C's of Marketing

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

Climate/Context.

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

Business.

Brazil Embracing Globalization Case Study Help is a car racing business with having USP of high quality car racing with an international structure. Its sector is sports team and occasions.

Collaborations.

Collaborations consists of suppliers, suppliers and alliances of Brazil Embracing Globalization Case Study Solution. It is worked together with various racing teams which are taking part in racing. It likewise teamed up with Turners Sport for digital rights. NASCAR used to make money 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 produce its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot during race at track.

Customers.

The consumer of Brazil Embracing Globalization Case Study Help are its audiences. They target clients with having age of 15-60 years. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and develop generational loyalty.

Rivals.

The direct competitors of NASCAR are Solution 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of marketing is drivers. For that reason it can be stated that drivers and race automobiles are rivals. If they got much better chance in terms of rewards and tv exposure, these motorists can go versus NASCAR.

Marketing Techniques.

1. Establishing and Preserving Facebook Page.
One of the prospective target audience segments for NASCAR is Hispanics which is the growing population segment of U.S.A. but unfortunately NASCAR had been not able to attract the this targeted segment. In order to bring in the young growing generation the NASCAR should market by utilizing social media like Facebook. It needs to develop a Facebook page including the information relating to the races and the places of tracks to make the consumer useful about the core operations of Brazil Embracing Globalization Case Study Help. It needs to likewise update its Facebook page on day-to-day basis to offer information about its upcoming events. This would make the target market segment more useful about the business and would lead to attracting large fans base.
2. Establishing and Upgrading Accounts of Secret Drivers.
Brazil Embracing Globalization Case Study Analysis drivers has a low star power as compare to players of other sports. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an important factor for drawing in viewers towards tracks and towards tv.
3. Establishing New Games and improving existing video games for kids.
Kids invested most of their time on playing games and utilizing mobile phones. Regrettably, kids playing NASCARA have a worst experience of playing its games. As a result, they are less brought in towards the sport. In order to attract these kids, NASCARA must enhance its current racing video games by presenting customization in the automobiles i.e. changing colours, choice of speed, presenting group racing in the game, utilizing better graphics connected to the racing tracks and presenting numerous levels in the video game. All these modifications in the existing game would offer better experience to kids.
In addition to it, NASCAR should likewise construct brand-new video games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing between numerous cartoon characters with a choice of selecting the preferred animation character for the kids. These techniques would make it possible for the business to bring in among its prospective target sections.
4. Presenting multiculturalism at occasions.
NASCAR occasions are comprised of fans with really few cultural diversity, due to expense of arrival in occasions, making it unappealing for the customers viewing sport events as social events i.e. Generation Y consumers. As the Generation Y consumers are a prospective target market for NASCAR, therefore the business should take particular procedures to attract this prospective target market.
5. Improving Customer Experience at Tracks.
Because on the race day audiences got dissatisfied, NASCAR must work on infrastructure and amenities at tracks. Viewers have numerous expectations from NASCAR due to the fact that in very same market other business are supplying better services than NASCAR. Then its fans may shifted to its rivals, if NASCAR don't work on this concern. According to fans there were not sufficient facilities were offered as compare to other sports suppliers. So NASCAR ought to make sure that it provide appropriate centers that consists of cleaned bathrooms, comfortable seating arrangement. They must likewise provide WIFI services and ease of access of charge card throughout that track. It should be likewise make sure that there are enough jumbo turns positioned at all needed places. There ought to be likewise food stalls that provide quality food to audiences. In this method audiences will be having enjoyable experience at the day of event. (See Appendix B).
Marketing Spending plan.
Marketing budget plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the expense related information for the marketing methods. (See Appendix B). It can be seen that method 5 of improving consumer experience at tracks would require highest preliminary investment and expense and strategy 4 of presenting multiculturalism will require least expensive preliminary financial investment with least expensive further each year expense. The business should prioritize the resource allowance on these techniques on the basis of its offered resources and the possible advantages which the technique would provide.
NOTE: The worths about cost are presumed on logical basis due the lack of truths and figures connected to cost in the case study. Inflation rate of United States is presumed to be 10%.

Suggestions.

On the basis of deep analysis of the internal and external elements of Brazil Embracing Globalization Case Study Help causing the decline of tv viewership rate and attendance rate at tracks, the above marketing techniques are suggested to NASCAR to increase its fan base in long term. These strategies would deal with internal factors like poor customer experience at tracks, inadequate social media marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., in addition to with external factors like shifting of fans towards other sports, demographical changes in America and changing domesticity styles.

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