Color Kinetics Inc A Online Case Study Analysis

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Color Kinetics Inc A Case Study Solution & Analysis


Color Kinetics Inc A Case Study Solution (National Association for Stock Vehicle Vehicle Racing) is an organization carrying out series of Stock Vehicle racing in United States and functioning as an approving body for driving the rules for Stock Vehicle Racing. The company was founded in 1947, by "Huge Costs" France. NASCAR arrange Stock Cars and truck Racing occasions in United States with the existence of about 130000 audiences usually in 2005. It also transmitted its occasions in about 150 nations. Stock Vehicle Racing by NASCAR is the second biggest spectator sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of income for Color Kinetics Inc A Case Study Solution consists of; 10% of the overall profits from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed business culture with the non-interventionist technique. The building of Vehicle of Tomorrow by NASCAR, with an intent of security for the drivers, brought numerous stress amongst the stakeholders of the sport.
Executive Summary
The communication audit, carried out in 2010, revealed that in spite of the fact that the company highly rely on the interactions between its stakeholders, there was no identifiable business interaction strategy. (

The audit explained various lacking of NASCAR in terms of absence of internal integration, lack of fan management technique and lack of digital and social media of marketing. The company has complex ecosystem with independent tracks, drivers and teams. This structure with closed business culture bring different difficulties in accelerating a change. Other partners in community includes the media networks i.e. television and radio, and business online marketers.

Color Kinetics Inc A Case Study Help audiences was highly faithful to the sport and the brand names related to the NASCAR, making it appealing for sponsors and business online marketers.

Issue Declaration.

The business is presently dealing with the issue of decreasing rates of presence at racing tracks and rates of television viewers. This can put a considerable impact on its profits from sponsors, media rights, and from other sources of income.

Situational Analysis.

Although the company was rather effective till 2005 with its conventional marketing strategies, but soon after 2005 the company starts dealing with numerous problems consisting of decrease of its fan base. Several external in addition to internal aspects are accountable for the decline. Internal factors include; insufficient 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 children and produce generational commitment. Other difficulties 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 houses through jumbo turns, Wi-Fi access, etc.

SWOT Analysis.


In SWOT analysis, strengths specified as company's qualities which are various from its rivals. These are business's core proficiencies on which company efficiency or company success based on. Color Kinetics Inc A Case Study Analysis core competencies includes it has rights of dictating guidelines as approving body. Policies and rules regarding professional stock automobile racing are dictated by NASCAR like if any group with needed abilities and resources can enter into races by following rules and regulations dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise includes that it has title of second biggest viewer 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 countries all over the world with more than $56 million earnings. The primary sources of their revenues originate from tv rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and corporate sponsors. Because of biggest brand name loyalty of fans toward brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).


Weaknesses in SWOT Analysis are thought about as external elements. Weak points consists of the factors that stops business to perform at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They normally used to form guidelines and other required processes without intervention of others which leads to poor collaboration. NASCAR develops Cars and truck of Tomorrow without partnership so result is that motorists did not like that idea. As this is racing sport so covering of sports by media is also difficult. It was likewise discovered that NASCAR had no reliable technique for business communication. They do not understand how to deal with issue if it took place off track. Inadequate business communication leads to that they do not have clear direction for their long term goals. They do not know that where they want to see this sport in future.
Porter's 5 Forces Analysis

NASCAR normally used to rely on conventional media sources like regional paper for publicity of its sports. NASCAR likewise came to know from these standard media outlets that sport was difficult to cover. When sports fans were asked regarding popular celebs and stars then NASCAR driver was not discovered even in top twenty actions.


Risks in SWOT analysis are defined as external aspects that can danger to business's success. Economic down turn was experienced in late 2000 which can be hazard for NASCAR because if there is economic down turn then people would be having less roi. Earning of individuals would be effected and they would be more conscious in spending their loan. Economic down turn likewise leads to increase fuel costs which likewise affected 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 income circulation. 65 percent revenues from media rights would be dispersed to race course, 25 percent profits would be distributed to completing group and remaining 10 percent would be maintained by NESCAR which is approving body. Completing team wanted to increase their portion of income from 25 percent because of boost in operating cost of a race group and also there is decrease in the variety of full-season sponsorship. Because they are making enormous financial investments to improve experience of fans, nescar also faces risks from other sponsors. Which includes upgrading existing avenues, building new avenues, supplying Wi-Fi facility and likewise supplying other interactive mediums to engage sports on mobile phones. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and create generational commitment. So the obstacle is that the family system in America was changing leading to reduction of influence of married male fan base over their youngsters. Together with it perceptions about automobile was also altering with perceiving vehicle an automobile to reach at point B from point A, instead of as an enjoyable project. If NASCAR make considerable financial investments in new sectors which are based on brand-new customers then it might face unfavorable remarks from its core fan base, now.

Porter's 5 Forces Analysis

Porter's 5 forces is a model that is used to analyse industry in which company is working. It helps in identifying what are strengths and weak point of any particular industry. It suggest that every industry is different from one another. It is very important to comprehend market in which business is working due to the fact that NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are used to recognize profitability, strength and attractiveness of Color Kinetics Inc A Case Study Help company.

Competitive Competition

These chauffeurs can go against NASCAR if they got much better opportunity in terms of rewards and television direct exposure. If audiences enjoy other race cars and trucks and motorists more than NASCAR then audiences can move to those other fascinating cars and trucks and drivers. NASCAR might be having hazard from its two direct competitors that is Formula 1 and Moto GP.
Swot Analysis
Provider Power

If company shifts from one supplier to another, the supplier power suggests the number of providers are available in market and what is the expense associated with supplier. In this industry there is supply monopoly since chauffeurs with needed resources and abilities are restricted.

Purchaser Power

In the case of NASCAR consumers are its viewers. Viewers can change to other competitors easily due to the fact that audiences will having low switching expense.

Hazard of Replacement

Substitutes are referred as options. The substitutes in this case can be other entertainment indicates like viewers can shift to other sports. So there are vast array of alternatives are available in this circumstance which recommends that hazard of replacement is high.

Hazard of New Entry

In the case of NASCAR danger of brand-new entry is low. They need to develop vehicles and racing tracks and likewise requires to pay large quantity to drivers for switching.

PESTEL Analysis


As NASCAR is working in numerous markets so it requires to deal with different regulations. It is likewise kept in mind that NASCAR has actually dealt with increased analysis relating to regulatory. Every government has various concern so NASCAR has to be prepared for it as concern can be shifted to other sector.


Financial elements includes tax rate, currency exchange rate, financial performance of that particular business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can leverage abilities of workers to create new opportunities and improve existing chances.


Each has various social values and standards. It assists in understanding concerning society and choice of clients.


In this case of NASCAR it can be noted that companies are greatly spending for research study and advancement. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays a crucial function in every country because every country has different legal terms and conditions. Color Kinetics Inc A Case Study Analysis needs to be make certain that they protect their legal rights in every county so any company does not harm to its legal rights.


Environmental elements are likewise essential for every single business. Since normally governments don't allow those service which can harm to environment. These ecological aspects consists of laws relating to pollution, environment modification, safe waste disposal, policies regarding insurance coverage etc. NASCAR needs to make sure that its cars and trucks are not creating pollution more than appropriate level.

7 P's of Marketing


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


Pricing method of NASCAR for its race events tickets is based upon the location and significance of the racing occasions. Along with race events tickets, NASCAR also charge numerous service fees to its stakeholders and earns profits. It charged approving costs of $1-2 million per race on average in 2005.


Advertising method of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races.


NASCAR have its racing tracks in different 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 most of the cities in United States to grasp across the country appeal.


Nestle people method is consisted of providing much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential element of Color Kinetics Inc A Case Study Analysis A marketing strategy as its events are the source of home entertainment for crowd. Its people strategy includes efforts to supply much better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under individuals technique of NASCAR.


Numerous business processes are needed to conduct racing events in an efficient way. These procedures include; correct schedule of time, plan for spectators, offering tickets, plan of space for sponsors, handling logistics etc. These all procedures contribute I constructing NASCAR image, improving viewers experience and increasing fan base.

Physical Evidence.

Essential physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing occasions. Together with it, its merchandising brand names including tee shirts, caps, goodies and so on, also serve as a physical proof for NASCAR.

Item Life Cycle Evaluation.

The racing occasions by Color Kinetics Inc A Case Study Analysis was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first phase competitors for NASCAR was low, as the rivals drove the vehicles comparable to the cars driven by common individuals.


After performing its very first race successfully the company moved towards developing its own tracks. The very first Color Kinetics Inc A Case Study Help based track, specifically 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 broadcasting its races on tv in 1979. The first occasion transmitted on television was flag-to-flag coverage 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 international fan base. He started a new period of financially rewarding sponsorships and tv contracts for NASCAR.


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


The significant causes of decline consist of the monetary crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Division.

The marketplace segmentation of Color Kinetics Inc A Case Study Help can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Color Kinetics Inc A Case Solution 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 numerous nations. The business 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 vast geographical segmentation supplies the business regional in addition to international fan base.


The group division of Color Kinetics Inc A Case Study Help is also highlydiverse based upon the gender, income and age of the customer. To increase the demographic sector of its market NASCAR need to revise its marketing methods to bring in more age groups and lower its costs to enter in the market section with a low average income.


The mental attributes of most of the fans are rather comparable. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to buy tickets and see the races as soon as in a week. 71% of them choose to acquire products with a NASCAR brand. They are quite extrovert and are willing to join other fans while racing. They desire quality racing with low price at convenient place. Although Color Kinetics Inc A Case Study Analysis has tried to increase the quality of its racing by presenting stage racing, they likewise have attempted to lower rates and make the event more convenient by introducing live racing.


Behavioural division 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. Presently, the fans choice is towards seeing the race at home on tv rather than going, as the consumer experience at NASCAR tracks is not favourable as well as pricey.

Target Market.


Among the potential target market of Color Kinetics Inc A Case Study Help was Hispanics; the young and growing population of United States. The marketplace segment has fantastic potential for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the section shows affinity with cars and truck culture, however need a more concentrated marketing towards inviting the section towards racing.


Kids are also one of the prospective target market segment for NASCAR, as they are more connected socially than other groups. Vehicle racing video games developed by Color Kinetics Inc A Case Study Help can be a prospective source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and improving its digital features to bring in the kids target market.

Generation Y.
Generation Y target market includes those who spent 5 times more resources on discretionary costs i.e. acquiring tickets for racing events, than others. This huge expense makes the section potential for NASCAR marketing technique of increasing its fan base. The marketplace sector is also simple to method as 81% of the Y Generation consumer uses Facebook every day and the usage is twice of using tv and radio. The market sector views sports as a get-together, instead of adherence to sport. The market section considers NASCAR as an organization doing not have in developing a multiculturalism environment. Color Kinetics Inc A Case Study Analysis should take various steps 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 relating to marketing. These 5 C's requirements to be analysed appropriately for taking any marketing decision. These 5 C's represent Environment, Business, Collaborators, Clients and Competitors.


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


Color Kinetics Inc A Case Study Solution is an automobile racing business with having USP of high quality car racing with a worldwide structure. Its sector is sports team and events.


Collaborations includes distributors, providers and alliances of Color Kinetics Inc A Case Study Analysis. It is worked together with different racing groups which are taking part in racing. It likewise teamed up with Turners Sport for digital rights. NASCAR used to get pay check of around $15 million yearly from Turner Sports. There are variety of cons behind this deal. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot during race at track.


The customer of Color Kinetics Inc A 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 a typical age of 47, which passes their fandom to their youngsters and create generational commitment.


The direct rivals of NASCAR are Formula 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of advertising is drivers. Therefore it can be stated that drivers and race automobiles are rivals. If they got better opportunity in terms of rewards and tv exposure, these motorists can go against NASCAR.

Marketing Strategies.

1. Keeping and developing Facebook Page.
Among the prospective target audience sectors for NASCAR is Hispanics which is the growing population sector of USA however unfortunately NASCAR had been unable to bring in the this targeted sector. In order to attract the young growing generation the NASCAR must market by using social media like Facebook. It needs to establish a Facebook page containing the info relating to the races and the places of tracks to make the customer informative about the core operations of Color Kinetics Inc A Case Study Solution. It must also upgrade its Facebook page on day-to-day basis to provide info about its upcoming occasions. This would make the target market sector more useful about the business and would lead to attracting big fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR drivers 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 mostly play in groups and are not able to develop a key account and maintain a close contact with fans. The poor contacts with fans lead to less attraction of viewers towards the racers and a low star power. Star power is an essential element for attracting viewers towards tracks and towards television. The star power for the drivers at NASCARA might be enhanced by producing and updating accounts of essential chauffeurs by NASCARA itself. This would remove the requirement of forcing motorists to maintain their accounts and would lead to increasing fans attention towards NASCARA drivers.
3. Establishing New Games and improving existing games for kids.
In order to attract these kids, NASCARA must enhance its existing racing games by introducing modification in the cars i.e. changing colours, selection of speed, introducing group racing in the game, using much better graphics related to the racing tracks and introducing different levels in the video game. All these adjustments in the present game would offer better experience to kids.
In addition to it, NASCAR must also build new games related to racing like kids racing with kids characters as drivers, animation racing with racing between various cartoon characters with a choice of picking the favourite animation character for the kids. These strategies would enable the company to bring in among its potential target segments.
4. Presenting multiculturalism at occasions.
NASCAR events are made up of fans with very few cultural diversity, due to expense of arrival in occasions, making it unattractive for the clients viewing sport events as social celebrations i.e. Generation Y clients. As the Generation Y customers are a possible target market for NASCAR, for that reason the business must take particular measures to attract this prospective target market.
5. Improving Customer Experience at Tracks.
Since on the race day audiences got disappointed, NASCAR should work on facilities and facilities at tracks. Because in very same market other business are providing better services than NASCAR, audiences have numerous expectations from Color Kinetics Inc A Case Study Solution. Then its fans might shifted to its competitors, if NASCAR don't work on this issue. According to fans there were not sufficient facilities were readily available as compare to other sports companies. NASCAR needs to make sure that it offer adequate facilities that consists of cleaned washrooms, comfy seating arrangement. They should also offer WIFI services and availability of credit cards throughout that track. It ought to be likewise make sure that there are enough jumbo turns put at all needed locations. There must be also food stalls that provide quality food to viewers. In this method audiences will be having enjoyable experience at the day of occasion. (See Appendix B).

Marketing Budget

Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, shows the expense related data for the marketing methods. It can be seen that technique 5 of enhancing consumer experience at tracks would require highest initial investment and expense and technique 4 of presenting multiculturalism will need least expensive initial financial investment with least expensive even more per year cost.
KEEP IN MIND: The worths about cost are assumed on reasonable basis due the lack of figures and facts 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 external and internal elements of Color Kinetics Inc A Case Study Help causing the decrease of tv viewership rate and presence rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long run. These strategies would deal with internal factors like poor client experience at tracks, insufficient social media marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, along with with external factors like moving of fans towards other sports, demographical modifications in America and altering domesticity designs.