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Chiquita Brands International B Case Study Solution and Analysis


Chiquita Brands International B Case Study Analysis (National Association for Stock Cars And Truck Automobile Racing) is an organization performing series of Stock Car racing in United States and functioning as a sanctioning body for driving the rules for Stock Vehicle Racing. The company was founded in 1947, by "Big Costs" France. NASCAR arrange Stock Vehicle Racing occasions in United States with the existence of about 130000 audiences on average in 2005. It likewise broadcast its occasions in about 150 nations. Stock Car Racing by NASCAR is the second biggest viewer sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of profits for Chiquita Brands International B Case Study Help includes; 10% of the overall revenue from television rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand name to companies.

NASCAR has a closed business culture with the non-interventionist approach. This non collective technique brings tensions in the sport. The structure of Cars and truck of Tomorrow by Chiquita Brands International B Case Study Analysis, with an intent of security for the motorists, brought various stress amongst the stakeholders of the sport.
Executive Summary
The interaction audit, conducted in 2010, revealed that despite the truth that the organisation extremely rely on the communications in between its stakeholders, there was no identifiable service communication method. (

The audit pointed out numerous lacking of NASCAR in terms of lack of internal integration, lack of fan management method and absence of digital and social media of marketing.

Chiquita Brands International B Case Study Help viewers was highly devoted to the sport and the brand names related to the NASCAR, making it appealing for sponsors and corporate online marketers.

Issue Declaration.

The business is currently dealing with the problem of decreasing rates of participation at racing tracks and rates of tv viewers. This can put a significant influence on its revenues from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

Although the company was quite successful till 2005 with its standard marketing strategies, however not long after 2005 the company starts facing numerous issues including decline of its fan base. Numerous external in addition to internal aspects are responsible for the decrease. Internal aspects include; inadequate financial 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 children and develop generational commitment. However the household system in America was altering resulting in reduction of influence of married male fan base over their youngsters. In addition to it perceptions about vehicle was likewise altering with viewing vehicle a vehicle to reach at point B from point A, rather than as a fun task. Other challenges for Chiquita Brands International B Case Study Help 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 homes through jumbo turns, Wi-Fi gain access to, and so on. These all difficulties were tending the business to revise its marketing methods.

SWOT Analysis.


In SWOT analysis, strengths defined as business's qualities which are different from its competitors. These are company's core proficiencies on which company performance or company success based on. Chiquita Brands International B Case Study Solution core competencies includes it has rights of determining guidelines as approving body. Guidelines and policies regarding professional stock automobile racing are dictated by NASCAR like if any group with needed abilities and resources can participate in races by following rules and policies dictated by NASCAR. NASCAR has monopoly it this aspect. 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 transmit in more than 150 countries around the world with more than $56 million revenues. The main sources of their revenues come from tv rights, sanctioning charges, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and corporate sponsors. All the events of NASCAR are sponsored by corporates because of biggest brand name commitment of fans toward brands advertised by Chiquita Brands International B Case Study Help. (See Appendix A).


Weaknesses in SWOT Analysis are considered as external elements. Weaknesses includes the factors that stops company to perform at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist technique. They usually utilized to form guidelines and other required processes without intervention of others which results in bad collaboration. For example NASCAR develops Car of Tomorrow without collaboration so result is that motorists 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 organisation communication. They don't understand how to handle issue if it took place off track. Ineffective service interaction leads to that they do not have clear direction for their long term objectives. They don't understand that where they want to see this sport in future.
Porter's 5 Forces Analysis

NASCAR usually utilized to rely on standard media sources like local newspaper for publicity of its sports. NASCAR likewise came to understand from these standard media outlets that sport was challenging to cover. When sports fans were asked relating to popular stars and stars then NASCAR driver was not found even in leading twenty actions.


Economic down turn was experienced in late 2000 which can be risk for NASCAR since if there is financial down turn then people would be having less return on financial investment. Economic down turn also results in boost fuel costs which likewise affected 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

It is crucial to understand market in which company is working due to the fact that NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are used to identify success, intensity and beauty of NASCAR organisation.

Competitive Rivalry

This force suggests ability of rivals. Teams normally represents sponsors in NASCAR and the medium of advertising is chauffeurs. Therefore it can be stated that drivers and race cars and trucks are competitors. If they got better opportunity in terms of prizes and tv direct exposure, these drivers can go against Chiquita Brands International B Case Study Solution. If audiences delight in other race cars and drivers more than NASCAR then viewers can shift to those other interesting automobiles and chauffeurs. NASCAR might be having risk from its two direct competitors that is Solution 1 and Moto GP. They require to develop competitive advantages for drivers so they do not shift to other competitors.
Swot Analysis
Provider Power

If company shifts from one supplier to another, the supplier power shows the number of suppliers are readily available in market and what is the cost associated with supplier. Due to the fact that drivers with needed resources and abilities are limited, in this market there is supply monopoly.

Purchaser Power

In the case of NASCAR customers are its audiences. Audiences can switch to other rivals easily due to the fact that viewers will having low switching expense.

Hazard of Replacement

Substitutes are referred as options. The substitutes in this case can be other entertainment means like viewers can shift to other sports. There are wide range of replacements are available in this circumstance which suggests that risk of alternative is high.

Hazard of New Entry

It is specified as how it is easy for any business to enter in that specific industry. When it comes to Chiquita Brands International B Case Study Solution threat of brand-new entry is low. If any company needs to go into in this company than they have to make heavy investments, due to the fact that. They need to build cars and trucks and racing tracks and likewise requires to pay significant amount to drivers for switching.

PESTEL Analysis


As NASCAR is working in various markets so it requires to face various policies. It is likewise kept in mind that NASCAR has actually faced increased analysis relating to regulatory. Every federal government has different priority so NASCAR has actually to be prepared for it as concern can be shifted to other sector.


Financial factors includes taxation rate, exchange rate, economic performance of that particular company, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can utilize capabilities of workers to produce new chances and improve existing opportunities.


Each has various social worths and norms. It assists in comprehending relating to society and choice of clients.


Innovation has influence on almost every organisation. It consists of development in service strategy. In this case of Chiquita Brands International B Case Study Help it can be kept in mind that companies are greatly spending for research and development. NASCAR should likewise deal with its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays an important role in every country since every nation has various legal terms and conditions. Chiquita Brands International B Case Study Help requires to be make certain that they secure their legal rights in every county so any business does not damage to its legal rights.


Ecological elements are likewise essential for every service. NASCAR needs to make sure that its cars are not generating contamination more than appropriate level.

7 P's of Marketing


The items of Chiquita Brands International B Case Study Analysis in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).


Rates technique of NASCAR for its race occasions tickets is based upon the location and value of the racing occasions. Together with race occasions tickets, NASCAR also charge various service charge to its stakeholders and makes income. For example it charged approving costs of $1-2 million per race on average in 2005.


Promotional strategy of Chiquita Brands International B Case Study Solution is highly 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 totally relied upon its fan base for its promotion and promote through regional radio stations too. The company has actually also embraced the retailing media of promotion, in which the company sells products with its logo design.


NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Automobile 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.


Nestle individuals strategy is consisted of offering better experience to its viewers, its fan base and to all of its stakeholders. Individuals are a crucial element of Chiquita Brands International B Case Study Help A marketing strategy as its events are the source of entertainment for crowd. Its people method includes efforts to provide better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under individuals technique of NASCAR.


A number of service processes are needed to perform racing occasions in an efficient way. These procedures consist of; appropriate schedule of time, arrangement for viewers, offering tickets, arrangement of area for sponsors, managing logistics etc. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.

Physical Proof.

Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and trucks and racing occasions. Along with it, its merchandising brands including tee shirts, caps, goodies etc., likewise act as a physical proof for NASCAR.

Item Life Process Assessment.

The racing occasions by NASCAR was introduced on June 19, 1949. At the first stage competitors for NASCAR was low, as the competitors drove the vehicles similar to the cars and trucks driven by common people.


After performing its first race successfully the company moved towards developing its own tracks. The first Chiquita Brands International B Case Study Solution based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by facility 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 television 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 changed NASCAR from a regional Sport popular company into one with worldwide fan base. He initiated a brand-new age of financially rewarding sponsorships and television contracts for NASCAR.


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


The decline in the business's offerings began after 2005 with average presence rate per race decreased by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The significant causes of decrease consist of the monetary crisis of 2008, which increased the expense of getting to tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.

Market Segmentation.

The market division of Chiquita Brands International B Case Study Solution can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Chiquita Brands International B Case Analysis is based upon the geographical presence of its tracks in various states and cities in United States, and the tv broadcasting of its occasions in various nations. The business 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 huge geographical segmentation offers the business regional as well as international fan base.


The group segmentation of Chiquita Brands International B Case Study Analysis is also highlydiverse based upon the gender, income and age of the consumer. To increase the group section of its market NASCAR should modify its marketing methods to attract more age groups and lower its costs to go into in the market segment with a low average income.


NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to acquire tickets and see the races once in a week. NASCAR has tried to increase the quality of its racing by introducing phase racing, they also have tried to lower prices and make the event more practical by presenting live racing.


Behavioural division of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the television or by going in the occasions. Presently, the fans preference is towards seeing the race at home on television rather than going, as the consumer experience at NASCAR tracks is not beneficial as well as costly.

Target Market.


One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has terrific potential for NASCAR as the population was growing at a greater rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are also among the potential target market sector for NASCAR, as they are more connected socially than other groups. Producing fan base amongst kids can offer a potential boost in the number of fans for racing due to their connectivity. Kids spend most of their times in using mobile phones and playing computer game. Car racing video games established by Chiquita Brands International B Case Study Analysis can be a prospective source of getting attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of gaining the attention. NASCAR requires more attention towards personalizing and enhancing its digital features to draw in the kids target audience.

Generation Y.
Generation Y target audience includes those who spent 5 times more resources on discretionary costs i.e. buying tickets for racing events, than others. This substantial expenditure makes the section capacity for NASCAR marketing method of increasing its fan base. The market segment is likewise easy to technique as 81% of the Y Generation consumer utilizes Facebook every day and the use is two times of using television and radio. The marketplace sector views sports as an affair, rather than adherence to sport. The marketplace segment considers NASCAR as a company lacking in producing a multiculturalism atmosphere. Chiquita Brands International B Case Study Analysis needs to take various actions to improve the experience of Generation Y consumers in its events.

5 C's of Marketing

5 C's of marketing helps in taking choices relating to marketing. These 5 C's requirements to be evaluated correctly for taking any marketing decision. These 5 C's stands for Environment, Company, Collaborators, Customers and Rivals.


It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, legal and environmental and is mentioned above.


Chiquita Brands International B Case Study Solution is a car racing company with having USP of high quality car racing with a global structure. Its sector is sports group and occasions.


Collaborations includes distributors, providers and alliances of Chiquita Brands International B Case Study Analysis. It is worked together with different racing groups which are participating in racing. It likewise teamed up with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million every year from Turner Sports. There are variety of cons behind this offer. For example NASCAR needed 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 video which is shoot throughout race at track.


The customer of Chiquita Brands International B Case Study Help are its audiences. 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 loyalty.


The direct rivals of NASCAR are Solution 1 and Moto GP. Teams typically represents sponsors in NASCAR and the medium of advertising is drivers. For that reason it can be said that drivers and race cars and trucks are competitors. These chauffeurs can go against Chiquita Brands International B Case Study Solution if they improved opportunity in regards to prizes and television direct exposure.

Marketing Strategies.

1. Preserving and establishing Facebook Page.
One of the potential target markets sections for NASCAR is Hispanics which is the growing population section of USA but regrettably NASCAR had actually been unable to attract the this targeted section. It ought to establish a Facebook page consisting of the info regarding the races and the areas of tracks to make the customer useful about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Key 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 audiences towards the racers and a low star power. Star power is a crucial element for attracting viewers towards tracks and towards tv.
3. Developing New Games and enhancing existing video games for kids.
Kids spent the majority of their time on playing games and using mobile phones. Regrettably, kids playing NASCARA have a worst experience of playing its games. As a result, they are less attracted towards the sport. In order to attract these kids, NASCARA needs to enhance its existing racing video games by introducing modification in the cars i.e. altering colours, selection of speed, introducing group racing in the video game, using much better graphics connected to the racing tracks and introducing various levels in the game. All these adjustments in the current video game would supply better experience to kids.
Along with it, NASCAR must also build new games associated with racing like kids racing with kids characters as drivers, cartoon racing with racing in between different animation characters with an option of choosing the favourite animation character for the kids. These strategies would make it possible for the business to attract one of its prospective target sectors.
4. Introducing multiculturalism at events.
NASCAR events are made up of fans with very few cultural diversity, due to expense of arrival in occasions, making it unappealing for the consumers perceiving sport occasions as social events i.e. Generation Y customers. As the Generation Y customers are a prospective target market for NASCAR, therefore the company ought to take certain measures to attract this potential target market.
5. Improving Client Experience at Tracks.
NASCAR ought to work on infrastructure and facilities at tracks since on the race day viewers got dissatisfied. Audiences have numerous expectations from Chiquita Brands International B Case Study Analysis due to the fact that in very same industry other business are providing better services than NASCAR. IF NASCAR don't work on this concern then its fans may shifted to its competitors.

Marketing Budget plan

Marketing budget made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the expense related information for the marketing strategies. It can be seen that method 5 of improving consumer experience at tracks would require greatest initial investment and expense and method 4 of introducing multiculturalism will require lowest preliminary investment with least expensive even more per year expense.
NOTE: The worths about expense are presumed on reasonable basis due the lack of truths and figures connected to cost in the case research study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the internal and external elements of Chiquita Brands International B Case Study Solution causing the decline of tv viewership rate and attendance rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long run. These techniques would manage internal factors like bad client experience at tracks, inadequate social media marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., as well as with external aspects like moving of fans towards other sports, demographical modifications in America and changing domesticity designs.