Decision Making Its Not What You Think Case Study Solution & Analysis
NASCAR (National Association for Stock Car Vehicle Racing) is a company carrying out series of Stock Cars and truck racing in United States and acting as an approving body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Automobile Racing by NASCAR is the second biggest viewer sport, with highest number of sponsors. 1) The other sources of profits for Decision Making Its Not What You Think Case Study Analysis consists of; 10% of the overall income from television rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed corporate culture with the non-interventionist approach. This non collaborative technique brings stress in the sport. The structure of Cars and truck of Tomorrow by Decision Making Its Not What You Think Case Study Analysis, with an objective of security for the motorists, brought different tensions among the stakeholders of the sport.
The interaction audit, conducted in 2010, exposed that regardless of the fact that the service highly rely on the communications between its stakeholders, there was no recognizable service communication technique. (
The audit pointed out different lacking of NASCAR in regards to lack of internal integration, absence of fan management strategy and lack of digital and social media of marketing. The business has intricate ecosystem with independent tracks, groups and chauffeurs. This structure with closed corporate culture bring various challenges in speeding up a modification. Other partners in community consists of the media networks i.e. tv and radio, and business marketers.
Decision Making Its Not What You Think Case Study Help audiences was extremely devoted to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate online marketers.
The company is presently facing the problem of declining rates of presence at racing tracks and rates of tv audiences. This can put a significant influence on its earnings from sponsors, media rights, and from other sources of income.
The company was quite successful till 2005 with its conventional marketing strategies, however soon after 2005 the business begins facing various problems including decline of its fan base. A number of external as well as internal factors are accountable for the decrease. Internal factors include; insufficient 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 youngsters and produce generational loyalty. The family system in America was changing resulting in reduction of impact of married male fan base over their youngsters. Along with it perceptions about cars and truck was likewise altering with viewing car an automobile to reach at point B from point A, instead of as an enjoyable task. Other challenges for Decision Making Its Not What You Think Case Study Help includes the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, etc. These all obstacles were tending the company to revise its marketing strategies.
In SWOT analysis, strengths defined as business's qualities which are different from its competitors. These are business's core proficiencies on which business efficiency or business success based on. Decision Making Its Not What You Think Case Study Analysis core proficiencies includes it has rights of determining guidelines as sanctioning body. Guidelines and policies relating to expert stock vehicle racing are dictated by NASCAR like if any team with needed abilities and resources can enter into races by following rules and regulations dictated by NASCAR. So NASCAR has monopoly it this element. Its strengths likewise includes that it has title of second biggest 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 globe with more than $56 million profits. The main sources of their revenues come from tv rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and corporate sponsors. Because of most significant brand loyalty of fans towards brand names promoted by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses in SWOT Analysis are thought about as external aspects. Weaknesses includes the aspects that stops business to perform at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They normally used to form rules and other required processes without intervention of others which results in poor partnership. NASCAR develops Automobile 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 tough. It was likewise found that NASCAR had no efficient method for organisation interaction. They do not understand how to deal with problem if it occurred off track. Inefficient service interaction results in that they don't have clear direction for their long term objectives. They don't know that where they want to see this sport in future.
NASCAR usually utilized to rely on standard media sources like local newspaper for publicity of its sports. NASCAR also came to understand from these standard media outlets that sport was hard to cover. When sports fans were asked relating to popular stars and stars then NASCAR driver was not discovered even in top twenty reactions.
Hazards in SWOT analysis are specified as external elements that can danger to company's success. Economic down turn was experienced in late 2000 which can be danger for NASCAR since if there is economic down turn then individuals 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 boost fuel costs which likewise affected NASCAR. Since 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 distributed to race course, 25 percent profits would be dispersed to contending group and staying 10 percent would be maintained by NESCAR which is approving body. Competing group wanted to increase their part of profits from 25 percent because of boost in operating cost of a race team and also there is decrease in the variety of full-season sponsorship. Because they are making enormous investments to improve experience of fans, nescar also faces threats from other sponsors. For example that includes updating existing opportunities, building brand-new opportunities, providing Wi-Fi center and also providing other interactive mediums to communicate sports on smart devices. 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. The obstacle is that the family system in America was altering resulting in reduction of influence of married male fan base over their youngsters. Together with it understandings about car was likewise altering with viewing automobile a car to reach at point B from point A, rather than as an enjoyable task. Now if Decision Making Its Not What You Think Case Study Analysis make significant investments in brand-new sectors which are based on brand-new consumers then it may deal with negative comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is used to evaluate industry in which company is working. It helps in determining what are strengths and weak point of any particular market. It suggest that every market is various from one another. Since NASCAR's bottom line i.e. net profit is greatly depends on this, it is essential to understand market in which company is working. There are 5 forces that are used to identify profitability, intensity and appearance of Decision Making Its Not What You Think Case Study Solution company.
This force suggests capability of rivals. Groups typically represents sponsors in NASCAR and the medium of advertising is motorists. It can be stated that chauffeurs and race automobiles are competitors. If they got much better opportunity in terms of prizes and television direct exposure, these drivers can go against Decision Making Its Not What You Think Case Study Analysis. Then viewers can move to those other fascinating cars and chauffeurs, if audiences delight in other race automobiles and drivers more than NASCAR. NASCAR could be having hazard from its 2 direct rivals that is Solution 1 and Moto GP. They need to develop competitive advantages for motorists so they do not move to other rivals.
If company shifts from one supplier to another, the provider power indicates the number of providers are readily available in industry and what is the expense associated with provider. Because motorists with required resources and abilities are restricted, in this market there is supply monopoly.
This force is regarding to clients that is it simple for consumers to shift to other items. Then customers are less likely to switch, if there is more switching expense is associated. In the case of NASCAR customers are its viewers. Audiences can change to other rivals quickly since viewers will having low changing cost.
Danger of Alternative
Substitutes are referred as alternatives. The substitutes in this case can be other home entertainment suggests like viewers can move to other sports. There are broad range of replacements are offered in this circumstance which recommends that risk of replacement is high.
Hazard of New Entry
In the case of NASCAR hazard of new entry is low. They require to develop cars and trucks and racing tracks and likewise requires to pay substantial amount to motorists for switching.
As NASCAR is working in different markets so it requires to deal with different guidelines. It is likewise kept in mind that NASCAR has actually dealt with increased examination regarding regulatory. Every federal government has various concern so NASCAR has to be prepared for it as top priority can be shifted to other sector.
Financial aspects includes tax rate, currency exchange rate, financial efficiency of that specific company, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be affected if there is government intervention in the marketing and sales sector. NASCAR can leverage abilities of staff members to create new chances and enhance existing opportunities.
Every society is various from each other. Each has various social values and norms. It helps in comprehending relating to society and preference of consumers. Social aspects consists of customs, culture, mindsets towards specific product and services, demographics, norms, interests etc. It can be concluded that advertising through other methods instead of standard (i.e. newspaper) can be chosen in this society.
Innovation has impact on practically every business. It consists of innovation in company method. In this case of Decision Making Its Not What You Think Case Study Analysis it can be noted that business are greatly investing for research and development. NASCAR must likewise work on its media rights policy with Turner Broadcasting System.
Legal plays an important function in every country since every country has various legal terms and conditions. Decision Making Its Not What You Think Case Study Analysis needs to be ensure that they secure their legal rights in every county so any business does not hurt to its legal rights.
Ecological aspects are also important for each service. Because normally governments don't permit those business which can harm to environment. These ecological elements includes laws concerning contamination, climate modification, safe garbage disposal, policies relating to insurance and so on. NASCAR needs to ensure that its automobiles are not creating pollution more than acceptable level.
7 P's of Marketing
The products of Decision Making Its Not What You Think Case Study Analysis in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race events tickets is based upon the location and significance of the racing events. Along with race events tickets, NASCAR also charge different service charge to its stakeholders and earns income. It charged approving fees of $1-2 million per race on average in 2005.
Promotional strategy of Decision Making Its Not What You Think Case Study Solution 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. Nevertheless, the company is not entirely trusted its fan base for its promo and promote through local radio stations too. The business has also adopted the merchandising media of promo, in which the business sells products with its logo.
NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in the majority of the cities in United States to grasp nationwide appeal.
Nestle individuals strategy is comprised of supplying much better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important element of Decision Making Its Not What You Think Case Study Solution A marketing technique as its occasions are the source of home entertainment for crowd. Its individuals strategy includes efforts to provide better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals technique of NASCAR.
Numerous business processes are required to carry out racing occasions in an efficient way. These procedures include; proper schedule of time, arrangement for spectators, offering tickets, plan of area for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.
Essential physical evidences for the NASCAR includes the presence of its racing tracks, stock automobiles and racing events. Together with it, its merchandising brand names including tee shirts, caps, goodies and so on, likewise serve as a physical proof for NASCAR.
Product Life Cycle Evaluation.
The racing occasions by NASCAR was introduced on June 19, 1949. At the very first phase competitors for NASCAR was low, as the rivals drove the automobiles similar to the cars and trucks driven by regular people.
After performing its first race successfully the business moved towards developing its own tracks. The very first Decision Making Its Not What You Think 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 relayed on tv was flag-to-flag protection 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 company into one with worldwide fan base. He started a new period of rewarding sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide variety of income sources. The business has about 500 sponsors with broadcasting its occasions in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
The decline in the business's offerings started after 2005 with typical attendance rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The major causes of decline consist of the monetary crisis of 2008, which increased the cost of getting to tracks for audiences due to increasing fuel costs, and the moving of its fan base towards other sports.
The market division of Decision Making Its Not What You Think Case Study Analysis can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Decision Making Its Not What You Think Case Help is based upon the geographical existence of its tracks in different states and cities in United States, and the television broadcasting of its events in various 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 huge geographical segmentation offers the business local in addition to worldwide fan base.
The market segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its present fan base is majorly consisted of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Currently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the group sector of its market NASCAR ought to modify its marketing methods to attract more age groups and lower its prices to go into in the marketplace section with a low typical earnings.( htt1).
The psychological attributes of most of the fans are quite similar. NASCAR has a fan base with a commitment. Once in a week, NASCAR fans view it compulsive to acquire tickets and see the races. 71% of them choose to acquire items with a NASCAR brand name. They are quite extrovert and want to mingle with other fans while racing. They desire quality racing with low price at hassle-free location. Although Decision Making Its Not What You Think Case Study Analysis has attempted to increase the quality of its racing by introducing stage racing, they likewise have actually attempted to lower rates and make the occasion more convenient by presenting live racing.
Behavioural segmentation of Decision Making Its Not What You Think Case Study Help is based upon the behaviour of fans in regards to viewing the race live on the television or by going in the events. Presently, the fans choice is towards watching the race in your home on tv instead of going, as the customer experience at NASCAR tracks is not beneficial as well as expensive. This preference makes the rates for participation lower than the rates for tv audiences. NASCAR needs to alter the behaviour of its fan base by presenting qualitative services at its tracks.
One of the potential target audience of Decision Making Its Not What You Think Case Study Solution was Hispanics; the young and growing population of United States. The marketplace sector has fantastic prospective for NASCAR as the population was growing at a greater rate and it was expected to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The section shows affinity with car culture, however need a more focused marketing towards inviting the sector towards racing.
Kids are likewise one of the prospective target market section for NASCAR, as they are more linked socially than other groups. Car racing games developed by Decision Making Its Not What You Think Case Study Analysis can be a possible source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards tailoring and improving its digital functions to attract the kids target market.
Generation Y target audience includes those who spent five times more resources on discretionary expenditures i.e. buying tickets for racing occasions, than others. This huge expenditure makes the segment potential for NASCAR marketing technique of increasing its fan base. The market section is likewise simple to method as 81% of the Y Generation consumer utilizes Facebook the use and every day is twice of utilizing tv and radio. The market segment views sports as a get-together, instead of adherence to sport. The marketplace segment thinks about NASCAR as a company lacking in creating a multiculturalism environment. Decision Making Its Not What You Think Case Study Help ought to take numerous actions to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions relating to marketing.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, legal and environmental and is specified above.
NASCAR is a vehicle racing business with having USP of high quality automobile racing with a global structure. Its sector is sports group and occasions. Its target market is males in the age group of 15-60 years. Business has actually closed corporate culture and having non-interventionist approach.
Collaborations includes suppliers, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.
The customer of Decision Making Its Not What You Think Case Study Analysis are its audiences. They target customers 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 children and develop generational commitment.
Groups typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. These drivers can go versus NASCAR if they got much better chance in terms of prizes and television direct exposure.
1. Developing and Maintaining Facebook Page.
Among the possible target markets sectors for NASCAR is Hispanics which is the growing population section of U.S.A. however regrettably NASCAR had actually been unable to bring in the this targeted segment. In order to bring in the young growing generation the NASCAR must market by utilizing social media like Facebook. It needs to develop a Facebook page including the details regarding the races and the areas of tracks to make the consumer informative about the core operations of Decision Making Its Not What You Think Case Study Analysis. It should likewise upgrade its Facebook page on day-to-day basis to supply details about its approaching occasions. This would make the target market sector more informative about business and would result in attracting large fans base.
2. Developing and Updating Accounts of Secret Drivers.
Decision Making Its Not What You Think Case Study Help chauffeurs has a low star power as compare to players of other sports. The bad contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is a crucial aspect for attracting audiences towards tracks and towards television.
3. Developing New Games and enhancing existing video games for kids.
In order to bring in these kids, NASCARA needs to enhance its present racing video games by introducing personalization in the cars and trucks i.e. changing colours, selection of speed, presenting group racing in the game, using better graphics related to the racing tracks and presenting different levels in the video game. All these adjustments in the existing game would supply much better experience to kids.
Together with it, NASCAR ought to also develop new video games associated with racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between different animation characters with an option of selecting the preferred animation character for the kids. These strategies would make it possible for the business to attract among its prospective target sections.
4. Introducing multiculturalism at events.
NASCAR events are comprised of fans with really couple of cultural variety, due to expense of arrival in occasions, making it unattractive for the customers viewing sport occasions as social celebrations i.e. Generation Y customers. As the Generation Y clients are a prospective target market for NASCAR, therefore the company ought to take specific procedures to attract this potential target market.
5. Improving Customer Experience at Tracks.
Because on the race day audiences got disappointed, NASCAR must work on infrastructure and amenities at tracks. Audiences have numerous expectations from NASCAR since in very same industry other business are providing better services than NASCAR. Then its fans may shifted to its competitors, if NASCAR do not work on this issue. According to fans there were not sufficient centers were offered as compare to other sports providers. NASCAR must make sure that it provide appropriate facilities that includes cleaned up bathrooms, comfortable seating arrangement. They need to also provide WIFI services and availability of credit cards throughout that track. It needs to be likewise make sure that there suffice jumbo turns placed at all needed locations. There should be likewise food stalls that offer quality food to audiences. In this method audiences will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Spending plan
Marketing budget plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the cost related data for the marketing methods. (See Appendix B). It can be seen that technique 5 of enhancing consumer experience at tracks would require greatest preliminary investment and cost and strategy 4 of presenting multiculturalism will need lowest preliminary financial investment with least expensive further each year cost. The company needs to focus on the resource allocation on these strategies on the basis of its readily available resources and the prospective benefits which the technique would supply.
NOTE: The worths about cost are assumed on reasonable basis due the absence of figures and realities related to 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 aspects of Decision Making Its Not What You Think Case Study Help causing the decline of tv viewership rate and attendance rate at tracks, the above marketing techniques are suggested to NASCAR to increase its fan base in long run. These strategies would manage internal factors like bad customer 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 shifting of fans towards other sports, demographical modifications in America and altering family life designs.