Color Kinetics Inc A Online Case Study Solution

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Color Kinetics Inc A Case Study Solution & Analysis


Color Kinetics Inc A Case Study Help (National Association for Stock Car Automobile Racing) is a company performing series of Stock Automobile racing in United States and functioning as an approving body for driving the guidelines for Stock Vehicle Racing. The organization was established in 1947, by "Huge Bill" France. NASCAR arrange Stock Vehicle Racing events in United States with the existence of about 130000 viewers on average in 2005. It likewise broadcast its occasions in about 150 nations. Stock Automobile Racing by NASCAR is the 2nd biggest spectator sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its earnings. The other sources of revenue for Color Kinetics Inc A Case Study Solution consists of; 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. The structure of Cars and truck of Tomorrow by NASCAR, with an intent of safety for the drivers, brought various tensions amongst the stakeholders of the sport.
Executive Summary
The communication audit, conducted in 2010, exposed that in spite of the fact that the company highly rely on the interactions between its stakeholders, there was no recognizable service communication strategy. (

The audit pointed out various doing not have of NASCAR in terms of lack of internal combination, absence of fan management method and lack of digital and social media of marketing.

Color Kinetics Inc A Case Study Help viewers was highly loyal to the sport and the brands related to the NASCAR, making it appealing for sponsors and corporate online marketers.

Problem Declaration.

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

Situational Analysis.

Although the company was rather successful till 2005 with its standard marketing methods, however soon after 2005 the business begins facing different issues including decrease of its fan base. Numerous external as well as internal aspects are responsible for the decrease. Internal factors consist of; inadequate financial investment in social media and other digital medias of.

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

SWOT Analysis.


In SWOT analysis, strengths defined as company's qualities which are different from its rivals. These are business's core competencies on which company performance or business success based on. Color Kinetics Inc A Case Study Help core proficiencies includes it has rights of determining guidelines as sanctioning body. Guidelines and regulations concerning professional stock vehicle racing are dictated by NASCAR like if any group with required skills and resources can participate in races by following guidelines and guidelines dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise includes that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to relay in more than 150 nations around the globe with more than $56 million profits. The main sources of their profits come from tv rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and business sponsors. All the occasions of NASCAR are sponsored by corporates because of most significant brand name loyalty of fans towards brands promoted by Color Kinetics Inc A Case Study Analysis. (See Appendix A).


Weaknesses of NASCAR includes its close culture which is non collective. Color Kinetics Inc A Case Study Analysis develops Car of Tomorrow without collaboration so result is that drivers did not like that idea. It was also found that NASCAR had no effective technique for company interaction.
Porter's 5 Forces Analysis

NASCAR usually used to rely on conventional media sources like local paper for promotion of its sports. NASCAR also came to understand from these conventional media outlets that sport was hard to cover. When sports fans were asked concerning popular celebs and stars then NASCAR motorist was not discovered even in leading twenty responses.


Dangers in SWOT analysis are defined as external factors that can hazard to company's success. Due to the fact that if there is economic down turn then individuals would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be threat for NASCAR. Earning of people would be effected and they would be more conscious in investing their loan. Economic down turn also leads to increase fuel rates which likewise impacted NASCAR. Due to the fact that fans of NASCAR utilized to attend its occasion from cross countries. NESCAR had a rule of 65/25/10 for revenue distribution. 65 percent revenues from media rights would be dispersed to race course, 25 percent revenue would be distributed to competing group and staying 10 percent would be kept by NESCAR which is sanctioning body. Competing team wished to increase their portion of revenue from 25 percent because of boost in operating expense of a race team and likewise there is decrease in the variety of full-season sponsorship. NESCAR likewise deals with threats from other sponsors since they are making massive financial investments to enhance experience of fans. For instance that includes updating existing avenues, developing brand-new avenues, providing Wi-Fi facility and also providing other interactive mediums to communicate sports on smart devices. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and develop generational loyalty. The difficulty is that the household system in America was changing resulting in decrease of impact of married male fan base over their children. Together with it understandings about car was likewise altering with perceiving automobile an automobile to reach at point B from point A, rather than as a fun project. If NASCAR make significant financial investments in new segments which are based on brand-new consumers then it might deal with negative comments from its core fan base, now.

Porter's 5 Forces Analysis

Porter's 5 forces is a design that is utilized to evaluate market in which company is working. It assists in identifying what are strengths and weak point of any specific market. It recommend that every market is different from one another. It is essential to comprehend industry 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 identify success, intensity and beauty of Color Kinetics Inc A Case Study Help organisation.

Competitive Rivalry

This force suggests ability of competitors. Groups generally represents sponsors in NASCAR and the medium of marketing is chauffeurs. For that reason it can be said that drivers and race cars are competitors. If they got better opportunity in terms of prizes and tv direct exposure, these motorists can go against Color Kinetics Inc A Case Study Help. If audiences delight in other race vehicles and motorists more than NASCAR then audiences can move to those other intriguing vehicles and drivers. NASCAR could be having threat from its 2 direct rivals that is Formula 1 and Moto GP. They require to develop competitive advantages for drivers so they don't move to other rivals.
Swot Analysis
Provider Power

The provider power shows the variety of providers are available in industry and what is the expense related to supplier if business shifts from one supplier to another. Due to the fact that motorists with needed abilities and resources are restricted, in this industry there is supply monopoly.

Purchaser Power

This force is regarding to consumers that is it simple for customers to shift to other items. Then consumers are less likely to switch, if there is more switching cost is associated. In the case of NASCAR clients are its viewers. Due to the fact that audiences will having low changing cost, viewers can switch to other rivals easily.

Danger of Substitution

Replacements are referred as options. The substitutes in this case can be other entertainment means like viewers can shift to other sports. So there are wide range of alternatives are available in this circumstance which suggests that danger of replacement is high.

Risk of New Entry

It is defined as how it is easy for any business to enter in that specific industry. When it comes to Color Kinetics Inc A Case Study Solution hazard of new entry is low. If any company needs to go into in this service than they have to make heavy investments, due to the fact that. They need to construct automobiles and racing tracks and likewise needs to pay substantial amount to motorists for switching.

PESTEL Analysis


It can not be concluded from case research study that there would be modification in resource allowances. NASCAR had got benefit from lower tax policies which results in increasing in profits. They made heavy investments in the research study and development. As NASCAR is operating in various markets so it requires to face various regulations. It is likewise noted that Color Kinetics Inc A Case Study Analysis has actually dealt with increased scrutiny regarding regulatory. Every federal government has different concern so NASCAR has to be prepared for it as top priority can be shifted to other sector.


Economic elements includes tax rate, currency exchange rate, economic efficiency of that specific business, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can leverage abilities of staff members to produce brand-new opportunities and enhance existing opportunities.


Every society is different from each other. Each has various social worths and standards. It assists in understanding concerning society and choice of clients. Social elements consists of traditions, culture, attitudes towards specific product and services, demographics, norms, interests etc. It can be concluded that marketing through other ways rather than standard (i.e. newspaper) can be preferred in this society.


Technology has impact on almost every company. It includes innovation in organisation strategy. In this case of Color Kinetics Inc A Case Study Help it can be noted that companies are heavily spending for research study and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Since every nation has different legal terms and conditions, Legal plays an essential role in every country. Color Kinetics Inc A Case Study Analysis requires to be ensure that they protect their legal rights in every county so any company does not hurt to its legal rights.


Ecological aspects are also crucial 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 Color Kinetics Inc A Case Study Analysis in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


Rates technique of NASCAR for its race occasions tickets is based upon the place and significance of the racing events. In addition to race events tickets, NASCAR also charge various service fees to its stakeholders and earns profits. For instance it charged sanctioning costs of $1-2 million per race usually in 2005.


Promotional method 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, Automobile 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 comprehend nationwide appeal.


Nestle people technique is consisted of providing better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important element of Color Kinetics Inc A Case Study Solution A marketing technique as its occasions are the source of home entertainment for crowd. Its individuals method consists of efforts to offer better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under people technique of NASCAR.


A number of company processes are needed to conduct racing events in an effective method. These procedures consist of; correct schedule of time, arrangement for viewers, offering tickets, plan of space for sponsors, handling logistics etc. These all processes contribute I building NASCAR image, improving spectators experience and increasing fan base.

Physical Evidence.

Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock cars and racing occasions. Along with it, its retailing brand names consisting of tee shirts, caps, goodies etc., likewise act as a physical proof for NASCAR.

Item Life Process Evaluation.

The racing events by Color Kinetics Inc A Case Study Help was presented on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first phase competition for NASCAR was low, as the rivals drove the automobiles similar to the automobiles driven by normal people.


After conducting its very first race successfully the business moved towards building its own tracks. The very first Color Kinetics Inc A Case Study Analysis based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards relaying its races on tv in 1979. The very first occasion transmitted on television was flag-to-flag protection of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a local Sport popular organization into one with global fan base. He started a new era of profitable sponsorships and tv contracts for NASCAR.


The maturity period for NASCAR started with the efforts of William France Jr., with the business having large range of earnings sources. The company has about 500 sponsors with transmitting its occasions in about 150 nations. The company has a great deal of tracks in the majority of the cities of United States.


The decrease in the company's offerings began after 2005 with typical attendance rate per race declined by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major causes of decline consist of the monetary crisis of 2008, which increased the expense of getting to tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Division.

The marketplace division of Color Kinetics Inc A Case Study Solution can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Color Kinetics Inc A Case Help is based upon the geographical existence of its tracks in numerous states and cities in United States, and the television broadcasting of its events in different nations. The business has 23 tracks in about 20 states of America and has television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation supplies the company local as well as global fan base.


The group segmentation of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its existing fan base is majorly consisted of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Nevertheless presently NASCAR is trying to increase its target audience to the young growing population and kinds also. To increase the group segment of its market NASCAR should modify its marketing strategies to attract more age groups and lower its costs to enter in the marketplace sector with a low average income.( htt1).


The mental qualities of the majority of the fans are rather similar. NASCAR has a fan base with a commitment. When in a week, NASCAR fans perceive it compulsive to purchase tickets and see the races. 71% of them prefer to acquire items with a NASCAR trademark name. They are quite extrovert and are willing to join other fans while racing. They desire quality racing with low price at convenient location. NASCAR has attempted to increase the quality of its racing by presenting stage racing, they also have actually attempted to lower prices and make the occasion more practical by introducing live racing.


Behavioural division of Color Kinetics Inc A Case Study Help is based upon the behaviour of fans in terms of enjoying the race reside on the tv or by entering the events. Presently, the fans preference is towards viewing the race in the house on television instead of going, as the customer experience at NASCAR tracks is not beneficial in addition to costly. This choice makes the rates for participation lower than the rates for television audiences. NASCAR has to change the behaviour of its fan base by introducing qualitative services at its tracks.

Target audience.


One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has excellent potential for NASCAR as the population was growing at a higher 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.


Kids are likewise one of the possible target market sector for NASCAR, as they are more linked socially than other groups. Vehicle racing video games established by Color Kinetics Inc A Case Study Analysis can be a prospective source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards tailoring and enhancing its digital functions to draw in the kids target market.

This huge expenditure makes the segment capacity for NASCAR marketing method of increasing its fan base. The market section considers NASCAR as a company lacking in producing a multiculturalism atmosphere. NASCAR must take different steps to improve the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing helps in taking decisions relating to marketing. These 5 C's requirements to be evaluated appropriately for taking any marketing decision. These 5 C's stands for Environment, Business, Collaborators, Rivals and consumers.


It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, legal and environmental and is stated above.


Color Kinetics Inc A Case Study Solution is a vehicle racing business with having USP of high quality auto racing with a worldwide structure. Its sector is sports group and occasions.


Collaborations consists of distributors, providers and alliances of Color Kinetics Inc A Case Study Solution. It is teamed up with various racing teams which are taking part in racing. It also teamed up with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million each year from Turner Sports. There are number of cons behind this deal. For example NASCAR had to get approval from Turner Sport if it wish to produce its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of each and every single video which is shoot throughout race at track.


The customer of Color Kinetics Inc A Case Study Solution are its viewers. 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 children and create generational loyalty.


The direct rivals of NASCAR are Formula 1 and Moto GP. Groups usually represents sponsors in NASCAR and the medium of advertising is motorists. It can be stated that chauffeurs and race vehicles are competitors. These chauffeurs can go against Color Kinetics Inc A Case Study Help if they got better opportunity in regards to rewards and television direct exposure.

Marketing Strategies.

1. Keeping and establishing Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population sector of U.S.A. however unfortunately NASCAR had been unable to bring in the this targeted section. It should develop a Facebook page consisting of the information regarding the races and the places of tracks to make the consumer helpful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Exhibition). The significant factor behind it is that, the racers primarily play in groups and are not able to build a key account and maintain a close contact with fans. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an important factor for attracting viewers towards tracks and towards tv. The star power for the drivers at NASCARA could be improved by producing and updating accounts of essential drivers by NASCARA itself. This would get rid of the requirement of requiring motorists to preserve their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Developing New Games and improving present video games for kids.
In order to attract these kids, NASCARA should enhance its existing racing video games by presenting personalization in the cars i.e. changing colours, selection of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and introducing numerous levels in the game. All these adjustments in the present game would provide better experience to kids.
In addition to it, NASCAR should also construct new games connected to racing like kids racing with kids characters as drivers, animation racing with racing in between different cartoon characters with a choice of picking the preferred cartoon character for the kids. These methods would allow the business to draw in among its prospective target sectors.
4. Introducing multiculturalism at occasions.
Color Kinetics Inc A Case Study Solution occasions are consisted of fans with really few cultural diversity, due to expense of arrival in occasions, making it unappealing for the consumers viewing sport events as affairs i.e. Generation Y customers. As the Generation Y consumers are a potential target market for NASCAR, for that reason the company needs to take certain steps to attract this prospective target audience. It should embrace methods to draw in the clients far from the tracks place with various culture. The strategy to do so might be offering special discount rates on tickets or totally free tickets to viewers coming from a specific range or from another state. It would increase cultural diversity of the fans and would make Generation Y customers more satisfied.
5. Improving Consumer Experience at Tracks.
NASCAR must work on infrastructure and facilities at tracks because on the race day audiences got disappointed. Audiences have many expectations from Color Kinetics Inc A Case Study Solution since in exact same industry other companies are offering better services than NASCAR. IF NASCAR do not work on this problem then its fans might moved to its competitors.

Marketing Budget

Marketing budget made on the basis of the above techniques for the period of 5 years from 2011 to 2015, shows the cost associated information for the marketing methods. (See Appendix B). It can be seen that method 5 of improving customer experience at tracks would need greatest initial financial investment and expense and technique 4 of introducing multiculturalism will require least expensive preliminary investment with lowest even more annually expense. The business needs to prioritize the resource allowance on these methods on the basis of its offered resources and the potential benefits which the method would supply.
KEEP IN MIND: The worths about expense are assumed on rational basis due the absence of facts and figures connected to cost in the case study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the internal and external elements of Color Kinetics Inc A Case Study Help triggering the decline of tv viewership rate and attendance rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long run. These strategies would handle internal elements like bad consumer experience at tracks, insufficient social media marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, as well as with external aspects like moving of fans towards other sports, demographical modifications in America and changing family life styles.