Charlene Barshefsky A Case Study Solution & Analysis
Introduction
NASCAR (National Association for Stock Car Auto Racing) is an organization conducting series of Stock Car racing in United States and acting as a sanctioning body for driving the rules for Stock Cars and truck Racing. 2) Stock Automobile Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of earnings for Charlene Barshefsky A Case Study Help includes; 10% of the total profits 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 Vehicle of Tomorrow by NASCAR, with an objective of safety for the motorists, brought different stress among the stakeholders of the sport.
The interaction audit, performed in 2010, revealed that despite the truth that the organisation extremely rely on the communications in between its stakeholders, there was no recognizable business interaction method. (
The audit pointed out various doing not have of NASCAR in terms of absence of internal combination, absence of fan management strategy and lack of digital and social media of marketing.
Charlene Barshefsky A Case Study Help audiences was highly devoted to the sport and the brands related to the NASCAR, making it appealing for sponsors and corporate online marketers.
Problem Statement.
The business is currently dealing with the problem of decreasing rates of presence at racing tracks and rates of tv viewers. This can put a significant impact on its earnings from sponsors, media rights, and from other sources of revenue.
Situational Analysis.
Although the business was rather effective till 2005 with its standard marketing strategies, however soon after 2005 the company begins facing different problems consisting of decrease of its fan base. Several external in addition to internal elements are responsible for the decrease. Internal factors consist of; inadequate financial investment in social media and other digital medias of.
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 family system in America was changing resulting in decrease of influence of married male fan base over their youngsters. Along with it understandings about car was also altering with perceiving car an automobile to reach at point B from point A, instead of as a fun project. Other challenges for Charlene Barshefsky A Case Study Analysis 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 houses through jumbo turns, Wi-Fi access, etc. These all challenges were tending the business to revise its marketing methods.
SWOT Analysis.
Strengths.
NASCAR core competencies includes it has rights of dictating rules as approving body. Rules and guidelines regarding expert stock vehicle racing are determined by NASCAR like if any group with required skills and resources can get in into races by following guidelines and regulations determined by NASCAR. All the events of NASCAR are sponsored by corporates because of biggest brand loyalty of fans towards brand names advertised by Charlene Barshefsky A Case Study Solution.
Weak points.
Weaknesses in SWOT Analysis are considered as external aspects. Weak points includes the aspects that stops company to perform at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They typically utilized to form rules and other needed processes without intervention of others which leads to poor collaboration. NASCAR develops Car of Tomorrow without cooperation so result is that chauffeurs did not like that idea. As this is racing sport so covering of sports by media is likewise difficult. It was likewise found that NASCAR had no reliable method for service communication. They don't understand how to deal with concern if it took place off track. Inefficient service communication results in 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.
Opportunities in SWOT analysis are external aspects which can be favourable to company or the external factors on which business is having competitive benefit. NASCAR typically used to rely on standard media sources like local newspaper for publicity of its sports. Usually these conventional media sources try to cover their home team and specific kind of occasions. NASCAR likewise came to know from these standard media outlets that sport was challenging to cover. Media landscape also changed from conventional to digital landscape. Papers failed. NASCAR can deal with its capabilities to get optimal possible benefits from this new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR utilized to get pay check of around $15 million every year from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of 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 newspapers, publications and cable television channels want to publish videos of races on their particular pages. NASCAR can work on conditions and terms and attempt to work out with Turner Sports to get optimal benefits of it. Star power plays extremely essential role in producing earnings from every sport. Nevertheless it was kept in mind that Charlene Barshefsky A Case Study Solution is lagging in this location i.e. star power. When sports fans were asked concerning popular celebs and stars then NASCAR chauffeur was not discovered even in leading twenty reactions. NASCAR can put efforts in this location too for profits generation. They should assist their chauffeurs that how they can become sport stars. Four tactical focuses which are generated by research study group can also be served as opportunity for NESCAR. These four strategic focuses compares and analysis Charlene Barshefsky A Case Study Help strategies.
Threats
Economic down turn was experienced in late 2000 which can be threat for NASCAR since if there is economic down turn then individuals would be having less return on financial investment. Economic down turn likewise results in boost fuel rates which also impacted NASCAR. Now if NASCAR make significant investments in brand-new sections which are based on new customers then it may face unfavorable remarks from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is utilized to evaluate industry in which company is working. It helps in determining what are strengths and weak point of any specific market. It recommend that every industry is various from one another. It is very important to understand market in which business is working since NASCAR's bottom line i.e. net earnings is greatly depends upon this. There are 5 forces that are used to recognize profitability, intensity and beauty of Charlene Barshefsky A Case Study Analysis company.
Competitive Competition
This force indicates ability of competitors. Groups typically represents sponsors in NASCAR and the medium of marketing is drivers. Therefore it can be stated that chauffeurs and race automobiles are rivals. These drivers can go against NASCAR if they improved opportunity in terms of prizes and television direct exposure. Then audiences can shift to those other intriguing automobiles and drivers, if viewers delight in other race cars and chauffeurs more than NASCAR. NASCAR could be having threat from its 2 direct competitors that is Solution 1 and Moto GP. They need to create competitive advantages for drivers so they don't shift to other competitors.
Supplier Power
The provider power suggests the number of suppliers are available in industry and what is the cost associated with supplier if business shifts from one supplier to another. Because chauffeurs with needed abilities and resources are limited, in this industry there is supply monopoly.
Purchaser Power
This force is concerning to consumers that is it simple for consumers to shift to other products. If there is more switching expense is associated then customers are less most likely to change. In the case of NASCAR clients are its audiences. Because audiences will having low changing expense, viewers can switch to other rivals quickly.
Hazard of Substitution
Alternatives are referred as alternatives. The alternatives in this case can be other home entertainment implies like audiences can shift to other sports. So there are large range of alternatives are available in this situation which suggests that risk of replacement is high.
Danger of New Entry
In the case of NASCAR danger of new entry is low. They require to construct cars and racing tracks and also requires to pay significant quantity to motorists for switching.
PESTEL Analysis
Political
It can not be concluded from case study that there would be change in resource allowances. NASCAR had actually got benefit from lower taxation policies which leads to increasing in earnings. They made heavy investments in the research study and development. As NASCAR is operating in numerous markets so it needs to face various policies. It is also noted that Charlene Barshefsky A Case Study Analysis has actually faced increased analysis regarding regulative. Every federal government has various concern so NASCAR needs to be gotten ready for it as concern can be shifted to other sector.
Economical
Financial factors includes tax rate, currency exchange rate, economic efficiency of that particular company, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be affected if there is government intervention in the marketing and sales sector. NASCAR can take advantage of capabilities of employees to develop brand-new chances and improve existing opportunities.
Social
Every society is different from each other. Each has different social values and standards. It helps in comprehending regarding society and preference of clients. Social aspects consists of customs, culture, attitudes towards particular services and products, demographics, standards, interests and so on. It can be concluded that advertising through other means instead of conventional (i.e. newspaper) can be chosen in this society.
Technical
In this case of NASCAR it can be kept in mind that business are heavily investing for research study and development. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.
Legal
Due to the fact that every country has various legal terms and conditions, Legal plays a crucial function in every nation. Charlene Barshefsky A Case Study Solution requires to be make certain that they protect their legal rights in every county so any company does not harm to its legal rights.
Environmental
Environmental aspects are also crucial for every business. NASCAR needs to make sure that its cars and trucks are not creating pollution more than appropriate level.
7 P's of Marketing
Product
The items of Charlene Barshefsky A Case Study Analysis in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Price.
Prices technique of NASCAR for its race occasions tickets is based upon the venue and value of the racing events. Along with race occasions tickets, NASCAR also charge various service fees to its stakeholders and earns income. For example it charged sanctioning charges of $1-2 million per race typically in 2005.
Promo.
Advertising method of Charlene Barshefsky A Case Study Solution is extremely based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. The company is not completely relied upon its fan base for its promotion and promote through local radio stations too. The company has likewise embraced the retailing media of promotion, in which the company offers products with its logo design.
Location.
NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in the majority of the cities in United States to understand across the country popularity.
People.
Nestle individuals strategy is comprised of offering much better experience to its audiences, its fan base and to all of its stakeholders. People are an important element of Charlene Barshefsky A Case Study Help A marketing method as its occasions are the source of entertainment for crowd. Its people strategy consists of efforts to offer much better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under people strategy of NASCAR.
Procedures.
Several organisation procedures are needed to conduct racing events in an efficient way. These procedures include; correct schedule of time, arrangement for spectators, selling tickets, plan of area for sponsors, handling logistics and so on. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.
Physical Proof.
Crucial physical proofs for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing events. Along with it, its merchandising brand names consisting of t-shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.
Item Life Process Assessment.
The racing events by NASCAR was introduced on June 19, 1949. At the first stage competitors for NASCAR was low, as the rivals drove the cars comparable to the automobiles driven by ordinary people.
Development.
After performing its first race successfully the business moved towards developing its own tracks. The first Charlene Barshefsky A Case Study Solution based track, particularly the Darlington Raceway track, was initiated 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 company moved towards transmitting its races on tv in 1979. The first event transmitted on tv was flag-to-flag protection of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with worldwide fan base. He started a new era of lucrative sponsorships and tv contracts for NASCAR.
Maturity.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having vast array of revenue sources. The business has about 500 sponsors with transmitting its occasions in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
Decrease.
The decline in the company's offerings started after 2005 with typical participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The major reasons for decrease include the monetary crisis of 2008, which increased the cost of arriving at tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.
Market Segmentation.
The marketplace division of Charlene Barshefsky A Case Study Analysis can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographic.
The geographical segmentation of Charlene Barshefsky A Case Solution is based upon the geographical existence of its tracks in various states and cities in United States, and the tv broadcasting of its occasions in different countries. The company has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division offers the company local in addition to international fan base.
Demographic.
The demographic division of Charlene Barshefsky A Case Study Solution is likewise highlydiverse based upon the gender, earnings and age of the customer. To increase the market section of its market NASCAR should modify its marketing techniques to bring in more age groups and lower its costs to enter in the market sector with a low typical income.
Psychographic.
The mental qualities of the majority of the fans are rather similar. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races as soon as in a week. 71% of them choose to buy items with a NASCAR brand. They are quite extrovert and want to mingle with other fans while racing. They desire quality racing with low rate at hassle-free area. NASCAR has actually attempted to increase the quality of its racing by introducing stage racing, they also have attempted to lower costs and make the event more practical by introducing live racing.
Behavioural.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the television or by going in the events. Presently, the fans preference is towards seeing the race at house on television rather than going, as the consumer experience at NASCAR tracks is not beneficial as well as pricey.
Target Market.
Hispanics.
Among the possible target audience of Charlene Barshefsky A Case Study Help was Hispanics; the young and growing population of United States. The market segment has fantastic potential for NASCAR as the population was growing at a greater rate and it was expected to become thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. The sector shows affinity with car culture, but require a more focused marketing towards inviting the sector towards racing.
Kids.
Kids are likewise one of the potential target market segment for NASCAR, as they are more connected socially than other groups. Car racing video games established by Charlene Barshefsky A Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards tailoring and improving its digital functions to bring in the kids target market.
Generation Y.
Generation Y target market includes those who spent five times more resources on discretionary expenditures i.e. purchasing tickets for racing occasions, than others. This substantial expense makes the segment potential for NASCAR marketing strategy of increasing its fan base. The marketplace sector is also easy to approach as 81% of the Y Generation consumer utilizes Facebook every day and the usage is twice of utilizing television and radio. The market section views sports as a social occasion, instead of adherence to sport. The market section thinks about NASCAR as an organization doing not have in developing a multiculturalism environment. Charlene Barshefsky A Case Study Help must take various actions to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions relating to marketing.
Climate/Context.
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 stated above.
Business.
NASCAR is an automobile racing company with having USP of high quality auto racing with an international structure. Its sector is sports team and occasions. Its target market is males in the age of 15-60 years. Company has actually closed corporate culture and having non-interventionist technique.
Partnerships.
Collaborations consists of distributors, suppliers and alliances of Charlene Barshefsky A Case Study Solution. It is collaborated with various racing groups which are taking part in racing. It also teamed up with Turners Sport for digital rights. NASCAR utilized to get pay check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. For example NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account and even mobile application. Turner Sport also had rights of every single video which is shoot during race at track.
Clients.
The client of Charlene Barshefsky A Case Study Help are its viewers. They target consumers 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 youngsters and create generational commitment.
Rivals.
Teams usually represents sponsors in NASCAR and the medium of advertising is chauffeurs. These chauffeurs can go against NASCAR if they got much better chance in terms of prizes and television exposure.
Marketing Strategies.
1. Developing and Preserving Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population section of U.S.A. however regrettably NASCAR had been unable to draw in the this targeted segment. In order to draw in the young growing generation the NASCAR ought to market by utilizing social media like Facebook. It needs to establish a Facebook page consisting of the details concerning the races and the areas of tracks to make the customer helpful about the core operations of Charlene Barshefsky A Case Study Solution. It needs to likewise upgrade its Facebook page on day-to-day basis to offer details about its upcoming events. This would make the target market section more useful about business and would lead to attracting large fans base.
2. Developing and Upgrading Accounts of Secret Drivers.
Charlene Barshefsky A Case Study Solution drivers has a low star power as compare to gamers of other sports. The bad contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is a crucial factor for bring in viewers towards tracks and towards television.
3. Developing New Games and enhancing existing video games for kids.
Kids invested most of their time on playing games and utilizing mobile phones. Unfortunately, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less attracted towards the sport. In order to attract these kids, NASCARA must enhance its present racing video games by presenting modification in the automobiles i.e. altering colours, selection of speed, presenting group racing in the video game, using much better graphics associated with the racing tracks and presenting numerous levels in the game. All these adjustments in the present game would supply much better experience to kids.
Together with it, NASCAR must likewise develop new video games related to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between different cartoon characters with a choice of picking the preferred cartoon character for the kids. These techniques would enable the company to attract one of its possible target sectors.
4. Presenting multiculturalism at events.
NASCAR events are comprised of fans with really couple of cultural variety, due to expense of arrival in events, making it unappealing for the customers perceiving sport occasions as social events i.e. Generation Y consumers. As the Generation Y customers are a possible target market for NASCAR, for that reason the business ought to take certain measures to attract this potential target market.
5. Improving Client Experience at Tracks.
Since on the race day audiences got disappointed, NASCAR needs to work on infrastructure and features at tracks. Audiences have numerous expectations from NASCAR because in very same industry other business are offering better services than NASCAR. Then its fans may shifted to its rivals, if NASCAR do not work on this issue. According to fans there were not adequate facilities were available as compare to other sports providers. NASCAR must make sure that it supply sufficient facilities that consists of cleaned up bathrooms, comfortable seating arrangement. They ought to also provide WIFI services and availability of credit cards throughout that track. It ought to be also ensure that there are enough jumbo turns placed at all needed places. There need to be also food stalls that offer quality food to viewers. In this method audiences will be having pleasant experience at the day of event. (See Appendix B).
Marketing Budget
Marketing spending plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the cost related information for the marketing methods. It can be seen that technique 5 of improving consumer experience at tracks would require greatest initial investment and expense and method 4 of presenting multiculturalism will need most affordable initial investment with least expensive further per year expense.
NOTE: The values about cost are assumed on reasonable basis due the absence of figures and truths related to cost in the case study. Inflation rate of United States is assumed to be 10%.
Suggestions.
On the basis of deep analysis of the external and internal factors of Charlene Barshefsky A Case Study Analysis triggering the decrease of television viewership rate and presence rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long run. These strategies would cope with internal factors like bad customer experience at tracks, insufficient social networks marketing, incapable digital medias like games, absence of culturalisms at tracks etc., along with with external aspects like moving of fans towards other sports, demographical modifications in America and altering domesticity styles.
