Citigroup Asset Management Online Case Study Analysis

Home >> Business >> Citigroup Asset Management

Citigroup Asset Management Case Study Solution and Analysis


NASCAR (National Association for Stock Cars And Truck Auto Racing) is an organization conducting series of Stock Automobile racing in United States and acting as an approving body for driving the rules for Stock Car Racing. 2) Stock Automobile Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of revenue for Citigroup Asset Management Case Study Solution includes; 10% of the overall earnings from television rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed business culture with the non-interventionist method. However this non collective approach brings stress in the sport. The building of Car of Tomorrow by Citigroup Asset Management Case Study Analysis, with an intent of security for the chauffeurs, brought different stress among the stakeholders of the sport.
Executive Summary
The interaction audit, performed in 2010, exposed that regardless of the fact that the business highly rely on the communications in between its stakeholders, there was no identifiable company interaction strategy. (

The audit mentioned various doing not have of NASCAR in regards to absence of internal integration, lack of fan management method and lack of social and digital media of marketing. The business has complicated ecosystem with independent tracks, motorists and teams. This structure with closed corporate culture bring various obstacles in speeding up a change. Other partners in environment consists of the media networks i.e. television and radio, and business online marketers.

Citigroup Asset Management Case Study Analysis audiences was highly faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business marketers.

Issue Statement.

The company is presently facing the issue of decreasing rates of presence at racing tracks and rates of television viewers. This can put a substantial impact on its revenues from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The company was rather successful till 2005 with its standard marketing techniques, but quickly after 2005 the company begins dealing with numerous issues including decrease of its fan base. Several external along with internal elements are accountable for the decline. Internal elements consist of; insufficient investment in social networks and other digital medias of.

Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and create generational commitment. The household system in America was altering resulting in reduction of influence of married male fan base over their youngsters. Along with it perceptions about vehicle was likewise changing with perceiving vehicle an automobile to reach at point B from point A, instead of as a fun task. Other challenges for Citigroup Asset Management Case Study Help 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, etc. These all obstacles were tending the business to revise its marketing strategies.

SWOT Analysis.


In SWOT analysis, strengths specified as company's qualities which are different from its rivals. These are company's core proficiencies on which business performance or company success based upon. Citigroup Asset Management Case Study Help core competencies includes it has rights of dictating guidelines as approving body. Regulations and guidelines concerning expert stock car racing are determined by NASCAR like if any team with needed skills and resources can enter into races by following rules and policies dictated by NASCAR. NASCAR has monopoly it this element. Its strengths also includes that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to broadcast in more than 150 nations all over the world with more than $56 million revenues. The main sources of their earnings come from television rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and corporate sponsors. Because of most significant brand name loyalty of fans toward brands marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).


Weak points of NASCAR includes its close culture which is non collaborative. Citigroup Asset Management Case Study Solution develops Vehicle of Tomorrow without collaboration so result is that chauffeurs did not like that idea. It was likewise discovered that NASCAR had no efficient method for business communication.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external elements which can be favourable to company or the external elements on which company is having competitive advantage. NASCAR usually utilized to count on conventional media sources like regional newspaper for promotion of its sports. Generally these conventional media sources try to cover their home team and particular kind of occasions. NASCAR likewise came to know from these traditional media outlets that sport was difficult to cover. Media landscape also changed from traditional to digital landscape. Newspapers went out of business. NASCAR can work on 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 advantages. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR used to earn money check of around $15 million each year from Turner Sports. There are number of cons behind this deal. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every single video which is shoot during race at track. Then they are needed to pay licensing fees to Turner Sport, if media sources like newspapers, magazines and cable channels want to publish videos of races on their particular pages. NASCAR can work on terms and conditions and attempt to negotiate with Turner Sports to get maximum benefits of it. Star power plays really essential function in generating incomes from every sport. Nevertheless it was kept in mind that Citigroup Asset Management Case Study Analysis is lagging in this location i.e. star power. For example when sports fans were asked regarding popular stars and stars then NASCAR chauffeur was not found even in top twenty reactions. So NASCAR can put efforts in this location too for income generation. They need to guide their chauffeurs that how they can become sport stars. Four strategic focuses which are created by research study team can likewise be served as opportunity for NESCAR. These four tactical focuses compares and analysis Citigroup Asset Management Case Study Analysis methods.


Economic down turn was experienced in late 2000 which can be hazard for NASCAR due to the fact that if there is financial down turn then people would be having less return on financial investment. Economic down turn also results in increase fuel rates which likewise affected NASCAR. Now if NASCAR make considerable investments in brand-new segments which are based on brand-new consumers then it might face unfavorable remarks from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a model that is utilized to analyse industry in which business is working. It assists in determining what are strengths and weak point of any particular industry. It suggest that every industry is various from one another. It is very important to comprehend industry in which company is working because NASCAR's bottom line i.e. net earnings is heavily depends upon this. There are 5 forces that are utilized to recognize success, strength and appearance of Citigroup Asset Management Case Study Help business.

Competitive Competition

These motorists can go against NASCAR if they got much better chance in terms of rewards and television exposure. If audiences take pleasure in other race automobiles and chauffeurs more than NASCAR then audiences can move to those other fascinating automobiles and chauffeurs. NASCAR could be having danger from its 2 direct competitors that is Formula 1 and Moto GP.
Swot Analysis
Supplier Power

The supplier power shows the number of providers are readily available in industry and what is the cost associated with supplier if company shifts from one supplier to another. Because chauffeurs with required resources and skills are restricted, in this industry there is supply monopoly.

Purchaser Power

In the case of NASCAR clients are its audiences. Audiences can switch to other competitors easily since audiences will having low switching expense.

Threat of Alternative

Alternatives are referred as options. The replacements in this case can be other home entertainment means like audiences can move to other sports. There are broad variety of alternatives are available in this scenario which recommends that danger of substitute is high.

Danger of New Entry

It is defined as how it is easy for any company to enter in that specific industry. When it comes to Citigroup Asset Management Case Study Help hazard of new entry is low. Because if any company needs to go into in this company than they have to make heavy financial investments. They require to develop vehicles and racing tracks and also needs to pay hefty total up to chauffeurs for switching.

PESTEL Analysis


It can not be concluded from case study that there would be change in resource allotments. NASCAR had actually got benefit from lower tax policies which leads to increasing in profits. They made heavy investments in the research study and development. As NASCAR is working in numerous markets so it needs to deal with various regulations. It is likewise kept in mind that Citigroup Asset Management Case Study Help has actually faced increased analysis regarding regulative. Every government has various top priority so NASCAR needs to be prepared for it as concern can be moved to other sector.


Economic factors includes tax rate, currency exchange rate, financial performance 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 rivals can be affected. NASCAR can leverage abilities of workers to create brand-new chances and enhance existing opportunities.


Every society is different from each other. Each has various social values and norms. It assists in comprehending concerning society and preference of clients. Social aspects includes traditions, culture, mindsets towards particular services and products, demographics, norms, interests etc. It can be concluded that marketing through other means instead of standard (i.e. newspaper) can be preferred in this society.


In this case of NASCAR it can be kept in mind that companies are heavily investing for research and development. NASCAR should also work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays an important function in every nation because every country has different legal conditions. Citigroup Asset Management Case Study Help needs to be make certain that they secure their legal rights in every county so any business does not harm to its legal rights.


Environmental factors are likewise essential for every service. NASCAR requires to make sure that its automobiles are not creating pollution more than appropriate level.

7 P's of Marketing


The items of Citigroup Asset Management Case Study Analysis in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).


Prices method of NASCAR for its race events tickets is based upon the venue and significance of the racing occasions. Along with race occasions tickets, NASCAR also charge various service charge to its stakeholders and earns income. For example it charged sanctioning charges of $1-2 million per race typically in 2005.


Promotional 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.


NASCAR have its racing tracks in numerous cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to comprehend across the country popularity.


Nestle people method is comprised of offering better experience to its viewers, its fan base and to all of its stakeholders. People are an important element of Citigroup Asset Management Case Study Analysis A marketing strategy as its occasions are the source of home entertainment for crowd. Its people strategy consists of efforts to provide much better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under people technique of NASCAR.


Several organisation procedures are required to conduct racing events in an effective way. These procedures include; appropriate schedule of time, plan for viewers, selling tickets, plan of area for sponsors, managing logistics and so on. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.

Physical Evidence.

Most important physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing events. In addition to it, its merchandising brands consisting of t-shirts, caps, goodies etc., likewise act as a physical proof for NASCAR.

Product Life Cycle Evaluation.

The racing events by NASCAR was introduced on June 19, 1949. At the first phase competition for NASCAR was low, as the rivals drove the automobiles comparable to the vehicles driven by common individuals.


After performing its very first race successfully the company moved towards building its own tracks. The first Citigroup Asset Management Case Study Solution based track, namely the Darlington Raceway track, was initiated 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 growth of racing tracks the business moved towards relaying its races on television in 1979. The first occasion transmitted on television was flag-to-flag coverage of Daytona.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he transformed NASCAR from a local Sport popular organization into one with international fan base. He initiated a brand-new period of lucrative sponsorships and tv contracts for NASCAR.


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


The decline in the business's offerings started after 2005 with average participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The significant causes of decline include the monetary crisis of 2008, which increased the cost of reaching tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Division.

The market segmentation of Citigroup Asset Management Case Study Analysis can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Citigroup Asset Management Case Analysis is based upon the geographical existence of its tracks in different states and cities in United States, and the tv broadcasting of its events in various nations. The business 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 vast geographical division provides the business regional along with worldwide fan base.


The market segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the consumer. Its existing fan base is majorly comprised of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the market sector of its market NASCAR should revise its marketing techniques to bring in more age and lower its prices to enter in the market section with a low typical earnings.( htt1).


The mental characteristics of most of the fans are quite comparable. NASCAR has a fan base with a commitment. As soon as in a week, NASCAR fans perceive it compulsive to buy tickets and see the races. 71% of them choose to buy items with a NASCAR brand name. They are quite extrovert and are willing to join other fans while racing. They want quality racing with low price at practical place. Although Citigroup Asset Management Case Study Help has actually attempted to increase the quality of its racing by introducing phase racing, they also have actually tried to lower costs and make the occasion easier by introducing live racing.


Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the events. Currently, the fans choice is towards enjoying the race at home on television rather than going, as the client experience at NASCAR tracks is not favourable as well as expensive.

Target audience.


Among the prospective target audience of Citigroup Asset Management Case Study Solution was Hispanics; the young and growing population of United States. The marketplace section has terrific possible for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the sector shows affinity with automobile culture, however need a more focused marketing towards inviting the section towards racing.


Kids are likewise among the possible target market segment for NASCAR, as they are more connected socially than other groups. Developing fan base among kids can provide a potential boost in the variety of fans for racing due to their connection. Kids invest most of their times in utilizing smart devices and playing video games. Automobile racing games established by Citigroup Asset Management Case Study Help can be a possible source of acquiring attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of getting the attention. NASCAR needs more attention towards tailoring and enhancing its digital features to draw in the kids target audience.

This big expenditure makes the section capacity for NASCAR marketing strategy of increasing its fan base. The market segment thinks about NASCAR as an organization lacking in producing a multiculturalism environment. NASCAR should take different actions to improve the experience of Generation Y consumers in its events.

5 C's of Marketing

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


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


NASCAR is an automobile racing business with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports team 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.


Collaborations consists of distributors, providers and alliances of Citigroup Asset Management Case Study Analysis. It is collaborated with various racing teams 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 yearly 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 produce its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every single video which is shoot during race at track.


The consumer of Citigroup Asset Management Case Study Solution are its audiences. They target customers with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment.


Teams usually represents sponsors in NASCAR and the medium of marketing is motorists. These motorists can go versus NASCAR if they got much better chance in terms of prizes and television direct exposure.

Marketing Methods.

1. Preserving and developing Facebook Page.
One of the potential target markets sectors for NASCAR is Hispanics which is the growing population segment of USA however unfortunately NASCAR had actually been not able to bring in the this targeted sector. It should develop a Facebook page containing the details regarding the races and the places of tracks to make the consumer helpful about the core operations of NASCAR.
2. Developing and Updating Accounts of Key Drivers.
Citigroup Asset Management Case Study Analysis chauffeurs has a low star power as compare to players of other sports. The bad contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is a crucial factor for drawing in audiences towards tracks and towards tv.
3. Establishing New Games and enhancing existing video games for kids.
Kids invested most of their time on playing video games and utilizing smartphones. However 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 improve its present racing video games by introducing personalization in the cars and trucks i.e. changing colours, choice of speed, presenting group racing in the game, using better graphics associated with the racing tracks and presenting different levels in the game. All these adjustments in the current game would offer better experience to kids.
Together with it, NASCAR should likewise build new games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing between numerous animation characters with an option of selecting the preferred animation character for the kids. These methods would make it possible for the company to attract one of its prospective target sections.
4. Presenting multiculturalism at events.
Citigroup Asset Management Case Study Analysis occasions are comprised of fans with extremely couple of multiculturalism, due to expense of arrival in events, making it unsightly for the customers viewing sport events as affairs i.e. Generation Y clients. As the Generation Y customers are a potential target audience for NASCAR, for that reason the business should take particular measures to attract this prospective target audience. It ought to adopt strategies to attract the customers far from the tracks location with various culture. The method to do so could be offering special discount rates on tickets or complimentary tickets to audiences coming from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR should work on facilities and amenities at tracks since on the race day audiences got disappointed. Viewers have many expectations from Citigroup Asset Management Case Study Solution due to the fact that in very same market other business are offering much better services than NASCAR. IF NASCAR don't work on this issue then its fans may shifted to its rivals.

Marketing Budget

Marketing budget made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, shows the expense associated data for the marketing methods. (See Appendix B). It can be seen that technique 5 of improving consumer experience at tracks would require greatest preliminary investment and cost and method 4 of presenting multiculturalism will require lowest preliminary investment with most affordable further each year cost. The business needs to focus on the resource allotment on these strategies on the basis of its readily available resources and the potential benefits which the method would provide.
KEEP IN MIND: The worths about expense are assumed on rational basis due the absence of truths and figures associated with cost in the event 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 Citigroup Asset Management Case Study Solution triggering the decrease of television viewership rate and presence rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long term. These techniques would cope with internal factors like bad customer experience at tracks, insufficient social networks marketing, incapable digital medias like games, lack of culturalisms at tracks etc., as well as with external factors like moving of fans towards other sports, demographical changes in America and altering family life styles.