Chiquita Brands International B Case Study Solution & Analysis
Introduction
Chiquita Brands International B Case Study Solution (National Association for Stock Vehicle Car Racing) is an organization conducting series of Stock Automobile racing in United States and functioning as a sanctioning body for driving the rules for Stock Automobile Racing. The company was founded in 1947, by "Big Bill" France. NASCAR organize Stock Car Racing events in United States with the existence of about 130000 viewers usually in 2005. It also relayed its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the 2nd biggest spectator sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of earnings for Chiquita Brands International B Case Study Analysis consists of; 10% of the total income from television rights, sanctioning costs 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 technique brings tensions in the sport. The structure of Cars and truck of Tomorrow by Chiquita Brands International B Case Study Solution, with an objective of safety for the drivers, brought various tensions amongst the stakeholders of the sport.
The communication audit, performed in 2010, exposed that regardless of the fact that the company extremely rely on the communications in between its stakeholders, there was no recognizable business communication method. (
The audit pointed out numerous doing not have of NASCAR in terms of lack of internal integration, absence of fan management method and lack of social and digital media of marketing.
Chiquita Brands International B Case Study Solution audiences was highly loyal to the sport and the brands associated with the NASCAR, making it appealing for sponsors and business marketers.
Problem Statement.
The business is presently dealing with the problem of decreasing rates of attendance at racing tracks and rates of television audiences. This can put a considerable impact on its profits from sponsors, media rights, and from other sources of revenue.
Situational Analysis.
The business was rather successful till 2005 with its traditional marketing methods, however soon after 2005 the business begins facing various problems including decline of its fan base. Several external along with internal aspects are accountable for the decrease. Internal aspects consist of; insufficient financial investment in social media 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 produce generational commitment. Other obstacles for NASCAR consists of 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.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths specified as company's qualities which are various from its rivals. These are business's core proficiencies on which business performance or business success based on. Chiquita Brands International B Case Study Solution core competencies includes it has rights of determining guidelines as sanctioning body. Rules and regulations regarding expert stock vehicle racing are determined by NASCAR like if any group with needed abilities and resources can enter into races by following rules and policies dictated by NASCAR. So NASCAR has monopoly it this element. Its strengths also includes that it has title of second largest spectator 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 world with more than $56 million profits. The main sources of their earnings originate from television rights, sanctioning charges, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 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. All the events of NASCAR are sponsored by corporates since of greatest brand loyalty of fans toward brands advertised by Chiquita Brands International B Case Study Solution. (See Appendix A).
Weak points.
Weaknesses of NASCAR includes its close culture which is non collective. Chiquita Brands International B Case Study Solution develops Cars and truck of Tomorrow without collaboration so result is that motorists did not like that principle. It was also discovered that NASCAR had no reliable technique for company communication.
Opportunities.
NASCAR usually utilized to rely on conventional media sources like regional newspaper for promotion of its sports. NASCAR likewise came to understand from these traditional media outlets that sport was challenging to cover. When sports fans were asked regarding popular celebrities and stars then NASCAR motorist was not found even in top twenty responses.
Risks
Risks in SWOT analysis are specified as external elements that can threat to company'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 risk for NASCAR. Earning of people would be effected and they would be more mindful in investing their cash. Economic down turn likewise results in boost fuel costs which likewise impacted NASCAR. Since fans of NASCAR utilized to attend its occasion from long distances. NESCAR had a rule of 65/25/10 for profits circulation. 65 percent profits from media rights would be dispersed to race tracks, 25 percent revenue would be distributed to contending team and staying 10 percent would be retained by NESCAR which is sanctioning body. Completing team wanted to increase their part of profits from 25 percent because of increase in operating expense of a race group and likewise there is decrease in the variety of full-season sponsorship. NESCAR also deals with threats from other sponsors because they are making enormous financial investments to improve experience of fans. Which consists of updating existing avenues, building new opportunities, supplying Wi-Fi center and also supplying other interactive mediums to communicate sports on smart devices. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and create generational commitment. So the difficulty is that the household system in America was changing leading to reduction of impact of married male fan base over their children. In addition to it understandings about vehicle was likewise changing with perceiving car a car to reach at point B from point A, rather than as a fun job. If NASCAR make substantial financial investments in brand-new sections which are based on brand-new customers then it may deal with negative remarks from its core fan base, now.
Porter's Five Forces Analysis
It is important to comprehend market in which company is working since NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are used to determine success, strength and beauty of NASCAR company.
Competitive Rivalry
This force suggests ability of rivals. Teams normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. Therefore it can be said that drivers and race vehicles are competitors. These drivers can break NASCAR if they improved chance in terms of rewards and tv exposure. Then audiences can shift to those other intriguing automobiles and chauffeurs, if audiences take pleasure in other race cars and trucks and drivers more than NASCAR. NASCAR could be having hazard from its two direct rivals that is Formula 1 and Moto GP. They require to produce competitive advantages for drivers so they don't shift to other rivals.
Supplier Power
The supplier power shows the variety of suppliers are available in industry and what is the cost associated with provider if company shifts from one supplier to another. Because drivers with needed skills and resources are limited, in this market there is supply monopoly.
Purchaser Power
This force is concerning to customers that is it easy for consumers to move to other products. Then customers are less likely to change, if there is more changing expense is associated. When it comes to NASCAR clients are its viewers. Viewers can switch to other rivals quickly due to the fact that audiences will having low changing cost.
Danger of Substitution
Substitutes are referred as options. The replacements in this case can be other entertainment means like audiences can move to other sports. So there are wide variety of alternatives are offered in this scenario which suggests that hazard of alternative is high.
Risk of New Entry
In the case of NASCAR risk of brand-new entry is low. They need to develop cars and racing tracks and also requires to pay substantial amount to chauffeurs for changing.
PESTEL Analysis
Political
It can not be concluded from case study that there would be change in resource allowances. NASCAR had actually got take advantage of lower taxation policies which results in increasing in earnings. So they made heavy financial investments in the research and advancement. As NASCAR is working in different markets so it needs to deal with different guidelines. It is likewise kept in mind that Chiquita Brands International B Case Study Analysis has actually faced increased analysis relating to regulatory. Every government has various top priority so NASCAR needs to be gotten ready for it as concern can be shifted to other sector.
Affordable
Economic aspects includes tax rate, currency exchange rate, economic efficiency of that specific company, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can take advantage of abilities of workers to create new chances and improve existing opportunities.
Social
Every society is various from each other. Each has different social worths and norms. It helps in comprehending concerning society and choice of consumers. Social aspects consists of traditions, culture, mindsets towards particular product and services, demographics, standards, interests and so on. It can be concluded that advertising through other means rather than standard (i.e. paper) can be preferred in this society.
Technical
Technology has impact on almost every service. It consists of innovation in company strategy. In this case of Chiquita Brands International B Case Study Solution it can be noted that business are heavily spending for research and advancement. NASCAR ought to likewise deal with its media rights policy with Turner Broadcasting System.
Legal
Since every nation has various legal terms and conditions, Legal plays an essential function in every nation. Chiquita Brands International B Case Study Help needs to be make certain that they safeguard their legal rights in every county so any business does not damage to its legal rights.
Environmental
Ecological aspects are also crucial for every service. Since normally federal governments don't permit those company which can hurt to environment. These ecological aspects consists of laws regarding pollution, environment change, safe garbage disposal, policies regarding insurance coverage etc. NASCAR requires to ensure that its cars and trucks are not generating pollution more than acceptable level.
7 P's of Marketing
Product
The items of Chiquita Brands International B Case Study Analysis in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to corporate 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 value of the racing occasions. Along with race occasions tickets, NASCAR likewise charge numerous service charge to its stakeholders and earns income. It charged sanctioning charges of $1-2 million per race on average in 2005.
Promo.
Advertising strategy of Chiquita Brands International B Case Study Analysis is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of viewers for NASCAR races. The business is not entirely relied upon its fan base for its promotion and promote through local radio stations too. The company has actually likewise adopted the retailing media of promotion, in which the business offers merchandises with its logo.
Place.
NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in most of the cities in United States to grasp nationwide appeal.
Individuals.
Nestle people strategy is comprised of providing better experience to its audiences, its fan base and to all of its stakeholders. People are an important aspect of Chiquita Brands International B Case Study Analysis A marketing method as its events are the source of home entertainment for crowd. Its individuals strategy includes efforts to provide better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under individuals technique of NASCAR.
Procedures.
A number of company processes are needed to carry out racing occasions in an efficient method. These processes consist of; proper schedule of time, arrangement for spectators, offering tickets, arrangement of space for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Physical Proof.
Essential physical proofs for the NASCAR includes the existence of its racing tracks, stock cars and racing events. Along with it, its retailing brand names consisting of tee shirts, caps, goodies and so on, also act as a physical evidence for NASCAR.
Product Life Cycle Assessment.
The racing events by NASCAR was introduced on June 19, 1949. At the very first stage competitors for NASCAR was low, as the competitors drove the cars and trucks comparable to the automobiles driven by common individuals.
Growth.
After conducting its very first race effectively the business moved towards developing its own tracks. The first Chiquita Brands International B Case Study Help based track, namely the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the development of racing tracks the company moved towards relaying its races on tv in 1979. The very first event broadcasted on tv was flag-to-flag coverage of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with worldwide fan base. He started a brand-new period of lucrative sponsorships and tv contracts for NASCAR.
Maturity.
The maturity duration for NASCAR started with the efforts of William France Jr., with the business having wide range of earnings sources. The company has about 500 sponsors with relaying its occasions in about 150 countries. The company has a great deal of tracks in most of the cities of United States.
Decline.
The major causes of decline consist of the monetary crisis of 2008, which increased the cost of showing up at tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.
Market Division.
The market segmentation of Chiquita Brands International B Case Study Analysis can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical division of Chiquita Brands International B Case Help 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 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 large geographical segmentation provides the business regional along with international fan base.
Group.
The group division 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 a typical age of 47 years and an earnings around $30-50 thousands. Nevertheless currently NASCAR is attempting to increase its target market to the young growing population and kinds as well. To increase the market segment of its market NASCAR need to modify its marketing strategies to bring in more age and lower its prices to enter in the market segment with a low average income.( htt1).
Psychographic.
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races when in a week. NASCAR has attempted to increase the quality of its racing by presenting stage racing, they likewise have tried to lower costs and make the occasion more convenient by presenting live racing.
Behavioural.
Behavioural division of Chiquita Brands International B Case Study Solution is based upon the behaviour of fans in terms of viewing the race survive on the television or by entering the events. Currently, the fans choice is towards watching the race in the house on television rather than going, as the client experience at NASCAR tracks is not favourable as well as costly. This preference makes the rates for presence lower than the rates for television audiences. NASCAR needs to change the behaviour of its fan base by presenting qualitative services at its tracks.
Target Market.
Hispanics.
Among the potential target audience of Chiquita Brands International B Case Study Help was Hispanics; the young and growing population of United States. The market section has great potential for NASCAR as the population was growing at a greater rate and it was expected to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The section shows affinity with vehicle culture, however require a more concentrated marketing towards welcoming the sector towards racing.
Kids.
Kids are likewise among the prospective target market sector for NASCAR, as they are more linked socially than other groups. Developing fan base among kids can offer a possible boost in the number of fans for racing due to their connectivity. Kids spend the majority of their times in playing and utilizing smartphones video games. Car racing video games established by Chiquita Brands International B Case Study Analysis can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of acquiring the attention. NASCAR needs more attention towards customizing and improving its digital functions to bring in the kids target audience.
This big expense makes the segment potential for NASCAR marketing strategy of increasing its fan base. The market sector considers NASCAR as a company doing not have in creating a multiculturalism environment. NASCAR needs to take numerous actions to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking choices concerning marketing. These 5 C's needs to be analysed appropriately for taking any marketing choice. These 5 C's stands for Climate, Company, Collaborators, Customers and Rivals.
Climate/Context.
It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, legal and environmental and is specified above.
Business.
NASCAR is a car racing business with having USP of high quality vehicle racing with a global structure. Its sector is sports group and occasions. Its target market is males in the age group of 15-60 years. Business has closed corporate culture and having non-interventionist approach.
Partnerships.
Collaborations consists of distributors, providers and alliances of Chiquita Brands International B Case Study Analysis. It is collaborated with various racing teams which are taking part in racing. It also worked together with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million every year from Turner Sports. There are number of cons behind this deal. For instance NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track.
Consumers.
The consumer of Chiquita Brands International B Case Study Analysis are its viewers. They target customers 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 create generational commitment.
Rivals.
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 motorists and race cars and trucks are competitors. These drivers can go against Chiquita Brands International B Case Study Analysis if they got better opportunity in regards to rewards and tv direct exposure.
Marketing Methods.
1. Maintaining and developing Facebook Page.
One of the prospective target markets sections for NASCAR is Hispanics which is the growing population sector of U.S.A. however unfortunately NASCAR had actually been unable to bring in the this targeted section. In order to draw in the young growing generation the NASCAR should market by using social networks like Facebook. It must develop a Facebook page consisting of the information relating to the races and the locations of tracks to make the consumer informative about the core operations of Chiquita Brands International B Case Study Help. It needs to likewise upgrade its Facebook page on day-to-day basis to provide info about its upcoming occasions. This would make the target market section more useful about the business and would lead to bring in large fans base.
2. Establishing and Updating Accounts of Secret Drivers.
Chiquita Brands International B Case Study Analysis drivers has a low star power as compare to players of other sports. The bad contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is a crucial aspect for attracting viewers towards tracks and towards tv.
3. Establishing New Games and enhancing existing games for kids.
In order to attract these kids, NASCARA ought to improve its existing racing games by introducing modification in the vehicles i.e. changing colours, selection of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and presenting different levels in the video game. All these adjustments in the present game would provide much better experience to kids.
In addition to it, NASCAR ought to likewise construct new video games connected to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing between various cartoon characters with an option of selecting the preferred animation character for the kids. These methods would make it possible for the business to draw in one of its potential target segments.
4. Presenting multiculturalism at events.
Chiquita Brands International B Case Study Help occasions are comprised of fans with very few multiculturalism, due to expense of arrival in events, making it unattractive for the customers perceiving sport occasions as affairs i.e. Generation Y clients. As the Generation Y clients are a prospective target audience for NASCAR, for that reason the business needs to take specific procedures to attract this prospective target audience. It needs to embrace strategies to draw in the customers far from the tracks place with different culture. The technique to do so could be offering special discounts on tickets or totally free tickets to viewers originating from a specific range or from another state. It would increase cultural diversity of the fans and would make Generation Y clients more satisfied.
5. Improving Customer Experience at Tracks.
NASCAR ought to work on facilities and features at tracks because on the race day audiences got disappointed. Audiences have numerous expectations from Chiquita Brands International B Case Study Solution because in exact same market other companies are providing better services than NASCAR. IF NASCAR do not work on this concern then its fans might moved to its rivals.
Marketing Budget plan
Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, shows the expense associated information for the marketing techniques. It can be seen that technique 5 of enhancing client experience at tracks would require greatest initial financial investment and cost and technique 4 of presenting multiculturalism will require least expensive preliminary financial investment with least expensive even more per year expense.
KEEP IN MIND: The values about expense are presumed on logical basis due the absence of figures and truths related 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 aspects of Chiquita Brands International B Case Study Analysis triggering the decrease of tv viewership rate and participation rate at tracks, the above marketing techniques are suggested to NASCAR to increase its fan base in long term. These methods would deal with internal factors like poor client experience at tracks, inadequate social networks marketing, incapable digital medias like games, lack of culturalisms at tracks etc., along with with external elements like shifting of fans towards other sports, demographical modifications in America and changing domesticity styles.
