Decision Making Its Not What You Think Case Study Solution and Analysis
NASCAR (National Association for Stock Automobile Auto Racing) is a company performing series of Stock Car racing in United States and acting as a sanctioning body for driving the guidelines for Stock Automobile Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd biggest spectator sport, with greatest number of sponsors. 1) The other sources of profits for Decision Making Its Not What You Think Case Study Solution consists of; 10% of the total income from tv rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. The structure of Automobile of Tomorrow by NASCAR, with an objective of security for the chauffeurs, brought various stress amongst the stakeholders of the sport.
The interaction audit, conducted in 2010, exposed that despite the reality that the business extremely count on the communications in between its stakeholders, there was no identifiable service interaction method. The market's target consumers, direction and goals were all unknown.
The audit mentioned numerous doing not have of NASCAR in regards to absence of internal combination, absence of fan management strategy and absence of social and digital media of marketing. The company has intricate community with independent tracks, drivers and groups. This structure with closed business culture bring numerous difficulties in speeding up a modification. Other partners in community includes the media networks i.e. television and radio, and business marketers.
Decision Making Its Not What You Think Case Study Help viewers was extremely faithful to the sport and the brands related to the NASCAR, making it appealing for sponsors and corporate marketers.
The business is presently dealing with the problem of decreasing rates of attendance at racing tracks and rates of tv audiences. This can put a significant effect on its revenues from sponsors, media rights, and from other sources of revenue.
Although the business was rather effective till 2005 with its standard marketing methods, but not long after 2005 the business begins facing numerous problems including decrease of its fan base. Numerous external along with internal elements are accountable for the decrease. Internal factors consist of; insufficient investment in social media and other digital medias of.
Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and develop generational commitment. Other difficulties for NASCAR consists of the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, etc.
In SWOT analysis, strengths specified as company's qualities which are various from its rivals. These are company's core competencies on which company efficiency or company success based on. Decision Making Its Not What You Think Case Study Help core competencies includes it has rights of dictating guidelines as sanctioning body. Rules and policies relating to expert stock cars and truck racing are dictated by NASCAR like if any team with needed skills and resources can participate in races by following guidelines and policies determined by NASCAR. NASCAR has monopoly it this element. Its strengths likewise consists of 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 used to transmit in more than 150 nations all over the world with more than $56 million earnings. 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 national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and business sponsors. All the events of NASCAR are sponsored by corporates due to the fact that of greatest brand name commitment of fans towards brand names marketed by Decision Making Its Not What You Think Case Study Help. (See Appendix A).
Weaknesses in SWOT Analysis are thought about as external elements. Weak points includes the aspects that stops business to carry out at required level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist method. They usually used to form rules and other required processes without intervention of others which leads to poor partnership. NASCAR establishes Automobile of Tomorrow without cooperation so result is that chauffeurs did not like that idea. As this is racing sport so covering of sports by media is likewise difficult. It was also discovered that NASCAR had no reliable method for organisation communication. They don't know how to deal with concern if it happened off track. Ineffective service interaction leads to that they do not have clear direction for their long term goals. They do not know that where they wish to see this sport in future.
Opportunities in SWOT analysis are external elements which can be favourable to business or the external aspects on which company is having competitive advantage. NASCAR typically utilized to rely on traditional media sources like local newspaper for publicity of its sports. Normally these standard media sources attempt to cover their home group and particular kind of occasions. NASCAR also familiarized from these standard media outlets that sport was challenging to cover. Media landscape likewise altered from traditional to digital landscape. Papers went out of business. NASCAR can deal with its abilities to get optimal possible gain 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 utilized to make money check of around $15 million annually from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot throughout race at track. If media sources like papers, publications and cable channels want to publish videos of races on their respective pages then they are required to pay licensing charges to Turner Sport. NASCAR can work on terms and conditions and attempt to negotiate with Turner Sports to get optimal benefits of it. Star power plays extremely important function in creating earnings from every sport. However it was noted that Decision Making Its Not What You Think Case Study Analysis is lagging in this area i.e. star power. When sports fans were asked concerning popular stars and stars then NASCAR driver was not discovered even in top twenty actions. So NASCAR can put efforts in this location too for profits generation. They should guide their chauffeurs that how they can become sport stars. Four strategic focuses which are created by research group can likewise be acted as chance for NESCAR. These 4 tactical focuses compares and analysis Decision Making Its Not What You Think Case Study Help strategies.
Dangers in SWOT analysis are defined as external factors that can risk to company's success. Because if there is economic down turn then people would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be threat for NASCAR. Earning of individuals would be effected and they would be more mindful in spending their money. Economic down turn likewise leads to increase fuel rates which also impacted NASCAR. Because fans of NASCAR used to attend its occasion from long distances. NESCAR had a guideline of 65/25/10 for profits circulation. 65 percent incomes from media rights would be distributed to race tracks, 25 percent income would be distributed to contending group and remaining 10 percent would be maintained by NESCAR which is sanctioning body. Completing team wanted to increase their part of income from 25 percent since of boost in operating expense of a race team and likewise there is decrease in the number of full-season sponsorship. Since they are making enormous financial investments to improve experience of fans, nescar likewise faces risks from other sponsors. Which consists of upgrading existing avenues, constructing brand-new avenues, providing Wi-Fi center and likewise supplying other interactive mediums to connect sports on mobile phones. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and produce generational loyalty. The difficulty is that 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 car was also altering with perceiving vehicle an automobile to reach at point B from point A, instead of as a fun job. If NASCAR make significant financial investments in brand-new sectors which are based on new consumers then it may face negative comments from its core fan base, now.
Porter's 5 Forces Analysis
It is important to comprehend industry in which company is working since NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are utilized to determine success, strength and beauty of NASCAR business.
This force indicates ability of competitors. Groups typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. It can be said that chauffeurs and race automobiles are competitors. If they got much better chance in terms of prizes and television direct exposure, these drivers can go versus Decision Making Its Not What You Think Case Study Analysis. If audiences delight in other race automobiles and drivers more than NASCAR then audiences can move to those other intriguing cars and drivers. NASCAR might be having danger from its two direct rivals that is Formula 1 and Moto GP. They need to produce competitive advantages for drivers so they don't move to other competitors.
If business shifts from one provider to another, the supplier power shows the number of suppliers are available in market and what is the cost associated with provider. In this market there is supply monopoly due to the fact that chauffeurs with needed skills and resources are limited.
In the case of NASCAR clients are its audiences. Audiences can switch to other competitors easily since viewers will having low changing expense.
Risk of Replacement
Replacements are referred as options. The alternatives in this case can be other home entertainment indicates like viewers can move to other sports. So there are vast array of replacements are offered in this situation which suggests that hazard of alternative is high.
Threat of New Entry
In the case of NASCAR hazard of new entry is low. They need to construct cars and trucks and racing tracks and likewise requires to pay substantial amount to drivers for switching.
It can not be concluded from case research study that there would be change in resource allocations. NASCAR had actually got benefit from lower taxation policies which results in increasing in earnings. So they made heavy investments in the research and advancement. As NASCAR is operating in different markets so it requires to deal with various policies. It is also kept in mind that Decision Making Its Not What You Think Case Study Help has actually dealt with increased examination concerning regulative. Every government has various concern so NASCAR needs to be prepared for it as concern can be moved to other sector.
Economic factors consists of taxation rate, currency exchange rate, economic performance of that specific company, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can leverage abilities of workers to create brand-new opportunities and improve existing chances.
Every society is various from each other. Each has various social values and standards. It assists in understanding relating to society and preference of customers. Social elements includes traditions, culture, mindsets towards particular product and services, demographics, standards, interests etc. It can be concluded that marketing through other means rather than conventional (i.e. paper) can be chosen in this society.
In this case of NASCAR it can be noted that companies are greatly spending for research and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Since every country has various legal terms and conditions, Legal plays an important function in every country. Decision Making Its Not What You Think Case Study Help needs to be make sure that they safeguard their legal rights in every county so any business does not harm to its legal rights.
Environmental factors are likewise important for every business. Since typically governments don't permit those company which can hurt to environment. These ecological aspects includes laws concerning pollution, environment change, safe garbage disposal, policies regarding insurance coverage etc. NASCAR requires to make certain that its vehicles are not generating pollution more than appropriate level.
7 P's of Marketing
The products of Decision Making Its Not What You Think Case Study Analysis in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Pricing strategy of NASCAR for its race occasions tickets is based upon the venue and value of the racing events. Along with race occasions tickets, NASCAR also charge numerous service fees to its stakeholders and makes income. For example it charged approving charges of $1-2 million per race usually in 2005.
Marketing technique 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, Car 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 comprehend across the country appeal.
Nestle individuals strategy is consisted of providing much better experience to its viewers, its fan base and to all of its stakeholders. People are a crucial aspect of Decision Making Its Not What You Think Case Study Help A marketing method as its occasions are the source of home entertainment for crowd. Its individuals strategy includes efforts to provide much better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under individuals strategy of NASCAR.
A number of business procedures are required to conduct racing events in an efficient method. These procedures include; correct schedule of time, arrangement for spectators, offering tickets, arrangement of space for sponsors, handling logistics etc. These all processes contribute I developing NASCAR image, improving spectators experience and increasing fan base.
Essential physical evidences for the NASCAR includes the presence of its racing tracks, stock cars and racing occasions. Together with it, its retailing brands including t-shirts, caps, goodies and so on, also function as a physical evidence for NASCAR.
Item Life Process Assessment.
The racing occasions by Decision Making Its Not What You Think Case Study Help was introduced 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 first stage competition for NASCAR was low, as the competitors drove the cars comparable to the automobiles driven by ordinary individuals.
The first NASCAR based track, namely the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the company moved towards transmitting its races on tv in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular organization into one with global fan base. He initiated a new era of rewarding sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the business having wide variety of income sources. The company has about 500 sponsors with broadcasting its events in about 150 countries. The business 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 average attendance rate per race declined by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant reasons for decline include the monetary crisis of 2008, which increased the expense of reaching tracks for viewers due to increasing fuel rates, and the shifting 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 sections; 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 presence of its tracks in numerous states and cities in United States, and the tv broadcasting of its occasions in numerous nations. The company 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 vast geographical segmentation provides the business local along with international fan base.
The market division of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly comprised of male married fans with an average age of 47 years and an income around $30-50 thousands. However presently NASCAR is attempting to increase its target market to the young growing population and kinds as well. To increase the market segment of its market NASCAR ought to revise its marketing techniques to bring in more age groups and lower its rates to go into in the market sector with a low average income.( htt1).
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races when in a week. NASCAR has attempted to increase the quality of its racing by presenting stage racing, they likewise have attempted to lower rates and make the event more hassle-free by introducing live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of viewing the race live on the tv or by going in the events. Currently, the fans choice is towards seeing the race at house on tv rather than going, as the consumer experience at NASCAR tracks is not favourable as well as expensive.
Among 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 market segment has terrific potential for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the segment reveals affinity with cars and truck culture, but require a more focused marketing towards inviting the segment towards racing.
Kids are also one of the possible target audience segment for NASCAR, as they are more connected socially than other groups. Producing fan base amongst kids can provide a possible boost in the number of fans for racing due to their connectivity. Kids spend most of their times in using smart devices and playing video games. Car racing video games developed by Decision Making Its Not What You Think Case Study Help can be a prospective source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital functions related to kids are not capable of acquiring the attention. NASCAR needs more attention towards personalizing and improving its digital features to draw in the kids target market.
Generation Y target market consists of those who spent 5 times more resources on discretionary costs i.e. acquiring tickets for racing events, 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 customer uses Facebook every day and the use is twice of using television and radio. The market section views sports as a social occasion, instead of adherence to sport. The market segment thinks about NASCAR as an organization doing not have in producing a multiculturalism atmosphere. Decision Making Its Not What You Think Case Study Help should take numerous steps to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking choices relating to marketing.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, legal and ecological and is specified above.
NASCAR is a vehicle racing company with having USP of high quality vehicle racing with a global structure. Its sector is sports team and occasions. Its target audience is males in the age of 15-60 years. Business has closed business culture and having non-interventionist method.
Collaborations includes suppliers, providers and alliances of Decision Making Its Not What You Think Case Study Analysis. It is collaborated with various racing groups which are participating in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million each year from Turner Sports. There are number of cons behind this offer. For instance NASCAR had to get approval from Turner Sport if it wish to develop its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of each and every single video which is shoot throughout race at track.
The client of Decision Making Its Not What You Think Case Study Help are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment.
The direct competitors of NASCAR are Formula 1 and Moto GP. Teams usually represents sponsors in NASCAR and the medium of advertising is drivers. Therefore it can be stated that chauffeurs and race vehicles are competitors. If they got much better chance in terms of rewards and tv exposure, these motorists can go against NASCAR.
1. Establishing and Preserving Facebook Page.
One of the potential target markets segments for NASCAR is Hispanics which is the growing population sector of USA but regrettably NASCAR had actually been unable to attract the this targeted section. In order to attract the young growing generation the NASCAR must market by utilizing social media like Facebook. It should develop a Facebook page including the information concerning the races and the areas of tracks to make the customer informative about the core operations of Decision Making Its Not What You Think Case Study Analysis. It ought to likewise update its Facebook page on day-to-day basis to provide details about its upcoming events. This would make the target market segment more helpful about the business and would lead to attracting big fans base.
2. Developing and Upgrading Accounts of Secret Drivers.
NASCAR drivers has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Exhibition). The major factor behind it is that, the racers mainly play in groups and are unable to build an essential account and preserve a close contact with fans. The poor contacts with fans result in less tourist attraction of audiences towards the racers and a low star power. Star power is a crucial factor for drawing in viewers towards tracks and towards tv. The star power for the motorists at NASCARA might be improved by developing and updating accounts of key chauffeurs by NASCARA itself. This would eliminate the requirement of forcing chauffeurs to keep their accounts and would result in increasing fans attention towards NASCARA chauffeurs.
3. Developing New Games and enhancing current video games for kids.
Kids invested the majority of their time on playing games and utilizing smartphones. But unfortunately, kids playing NASCARA have a worst experience of playing its games. As a result, they are less attracted towards the sport. In order to bring in these kids, NASCARA needs to improve its current racing video games by presenting customization in the cars i.e. changing colours, selection of speed, presenting group racing in the video game, utilizing much better graphics related to the racing tracks and introducing different levels in the video game. All these modifications in the current video game would supply much better experience to kids.
Together with it, NASCAR ought to likewise build brand-new video games connected to racing like kids racing with kids characters as motorists, animation racing with racing between numerous animation characters with a choice of choosing the favourite cartoon character for the kids. These strategies would enable the business to bring in one of its possible target segments.
4. Presenting multiculturalism at occasions.
NASCAR occasions are comprised of fans with really few cultural diversity, due to expense of arrival in occasions, making it unattractive for the consumers viewing sport events as social events i.e. Generation Y customers. As the Generation Y consumers are a prospective target market for NASCAR, therefore the company must take certain measures to attract this possible target market.
5. Improving Customer Experience at Tracks.
NASCAR ought to work on facilities and facilities at tracks since on the race day audiences got disappointed. Audiences have lots of expectations from Decision Making Its Not What You Think Case Study Help since in same market other business are offering much better services than NASCAR. IF NASCAR don't work on this issue then its fans might moved to its rivals.
Marketing Spending plan
Marketing budget made on the basis of the above strategies for the period of 5 years from 2011 to 2015, reveals the expense related data for the marketing methods. It can be seen that technique 5 of improving customer experience at tracks would need highest initial financial investment and cost and method 4 of presenting multiculturalism will need most affordable preliminary financial investment with lowest even more per year expense.
KEEP IN MIND: The values about expense are assumed on reasonable basis due the absence of facts and figures related to cost in the event study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external elements of Decision Making Its Not What You Think Case Study Analysis causing the decline of tv viewership rate and presence rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long run. These techniques would deal with internal factors like poor customer experience at tracks, insufficient social media marketing, incapable digital medias like games, absence of culturalisms at tracks etc., along with with external factors like shifting of fans towards other sports, demographical modifications in America and altering domesticity designs.