Decision Making Its Not What You Think Case Study Solution and Analysis
NASCAR (National Association for Stock Cars And Truck Car Racing) is an organization carrying out series of Stock Cars and truck racing in United States and acting as an approving body for driving the guidelines for Stock Automobile Racing. 2) Stock Vehicle Racing by NASCAR is the second largest spectator sport, with greatest number of sponsors. 1) The other sources of income for Decision Making Its Not What You Think Case Study Solution consists of; 10% of the overall profits from tv rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed business culture with the non-interventionist technique. This non collaborative technique brings stress in the sport. The building of Vehicle of Tomorrow by Decision Making Its Not What You Think Case Study Solution, with an intent of security for the chauffeurs, brought various stress among the stakeholders of the sport.
The interaction audit, carried out in 2010, revealed that in spite of the truth that the business highly rely on the interactions between its stakeholders, there was no recognizable business interaction method. (
The audit mentioned different doing not have of NASCAR in regards to lack of internal combination, absence of fan management technique and absence of digital and social media of marketing. The business has complicated community with independent tracks, drivers and groups. This structure with closed business culture bring numerous challenges in accelerating a change. Other partners in environment consists of the media networks i.e. television and radio, and corporate online marketers.
Decision Making Its Not What You Think Case Study Analysis audiences was extremely loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business online marketers.
The company is presently facing the problem of decreasing rates of participation at racing tracks and rates of tv audiences. This can put a substantial influence on its profits from sponsors, media rights, and from other sources of income.
The company was rather successful till 2005 with its traditional marketing techniques, however quickly after 2005 the company begins dealing with different problems including decrease of its fan base. Numerous external as well as internal aspects are accountable for the decrease. Internal aspects consist of; inadequate financial investment in social media and other digital medias of.
Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and create generational loyalty. The household system in America was altering resulting in reduction of impact of married male fan base over their youngsters. Together with it understandings about car was likewise changing with perceiving vehicle a vehicle to reach at point B from point A, instead of as an enjoyable job. 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 houses through jumbo turns, Wi-Fi gain access to, etc. These all obstacles were tending the company to modify its marketing strategies.
In SWOT analysis, strengths defined as business's qualities which are various from its competitors. These are business's core proficiencies on which business performance or business success based upon. Decision Making Its Not What You Think Case Study Analysis core competencies includes it has rights of dictating guidelines as sanctioning body. Guidelines 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 rules and regulations dictated by NASCAR. So NASCAR has monopoly it this element. 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 used to transmit in more than 150 countries all over the world with more than $56 million earnings. The main sources of their earnings come from television 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 corporate sponsors. All the occasions of NASCAR are sponsored by corporates due to the fact that of biggest brand name loyalty of fans towards brand names marketed by Decision Making Its Not What You Think Case Study Analysis. (See Appendix A).
Weak points of NASCAR includes its close culture which is non collaborative. Decision Making Its Not What You Think Case Study Analysis develops Automobile of Tomorrow without collaboration so result is that motorists did not like that principle. It was likewise discovered that NASCAR had no efficient method for business interaction.
NASCAR usually used to rely on conventional media sources like regional newspaper for publicity of its sports. NASCAR also came to know from these traditional media outlets that sport was tough to cover. When sports fans were asked relating to popular stars and stars then NASCAR motorist was not found even in leading twenty responses.
Hazards in SWOT analysis are defined as external elements that can risk to company's success. Economic down turn was experienced in late 2000 which can be hazard for NASCAR since if there is economic down turn then people would be having less return on investment. Earning of individuals would be effected and they would be more conscious in investing their cash. Economic down turn likewise leads to increase fuel prices which likewise impacted NASCAR. Due to the fact that fans of NASCAR utilized to attend its event from cross countries. NESCAR had a rule of 65/25/10 for earnings distribution. 65 percent incomes from media rights would be distributed to race tracks, 25 percent income would be distributed to completing group and staying 10 percent would be maintained by NESCAR which is sanctioning body. Completing group wanted to increase their portion of revenue from 25 percent since of boost in operating cost of a race team and likewise there is decrease in the number of full-season sponsorship. NESCAR likewise faces threats from other sponsors because they are making huge financial investments to improve experience of fans. For instance which includes upgrading existing opportunities, constructing new opportunities, providing Wi-Fi facility and likewise providing other interactive mediums to engage sports on smart devices. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and create generational loyalty. So the obstacle is that the family system in America was altering leading to decrease of impact of married male fan base over their youngsters. Along with it understandings about automobile was also changing with viewing car a car to reach at point B from point A, instead of as a fun task. Now if Decision Making Its Not What You Think Case Study Solution make considerable financial investments in new sectors which are based on brand-new clients then it might deal with unfavorable comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is used to analyse market in which company is working. It helps in identifying what are strengths and weakness of any specific industry. It recommend that every market is various from one another. It is necessary to understand industry in which company is working due to the fact that NASCAR's bottom line i.e. net revenue is greatly depends on this. There are 5 forces that are used to identify profitability, strength and attractiveness of Decision Making Its Not What You Think Case Study Help business.
These motorists can go versus NASCAR if they got much better chance in terms of rewards and television direct exposure. If viewers delight in other race automobiles and drivers more than NASCAR then viewers can move to those other fascinating cars and motorists. NASCAR could be having threat from its two direct competitors that is Formula 1 and Moto GP.
If company shifts from one supplier to another, the provider power shows the number of providers are offered in industry and what is the cost associated with provider. In this industry there is supply monopoly due to the fact that chauffeurs with needed resources and skills are restricted.
In the case of NASCAR clients are its audiences. Viewers can switch to other competitors quickly since viewers will having low changing cost.
Danger of Replacement
Replacements are referred as options. The alternatives in this case can be other entertainment indicates like viewers can move to other sports. There are large variety of substitutes are offered in this situation which recommends that threat of substitute is high.
Hazard of New Entry
In the case of NASCAR hazard of new entry is low. They require to develop automobiles and racing tracks and also needs to pay large amount to chauffeurs for switching.
As NASCAR is working in numerous markets so it requires to face different guidelines. It is likewise kept in mind that NASCAR has actually dealt with increased examination relating to regulative. Every federal government has different top priority so NASCAR has actually to be prepared for it as top priority can be moved to other sector.
Financial factors includes taxation rate, currency exchange rate, economic performance of that particular 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 capabilities of staff members to create brand-new chances and improve existing opportunities.
Each has various social values and standards. It assists in understanding relating to society and choice of clients.
Technology has effect on almost every business. It consists of development in organisation strategy. In this case of Decision Making Its Not What You Think Case Study Solution it can be noted that business are heavily spending for research study and advancement. NASCAR must likewise deal with its media rights policy with Turner Broadcasting System.
Due to the fact that every nation has different legal terms and conditions, Legal plays an important function in every country. Decision Making Its Not What You Think Case Study Analysis needs to be ensure that they protect their legal rights in every county so any business does not harm to its legal rights.
Environmental aspects are also crucial for every company. NASCAR requires to make sure that its cars are not generating pollution more than appropriate level.
7 P's of Marketing
The items 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, approving rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates strategy of NASCAR for its race events tickets is based upon the location and significance of the racing events. Together with race occasions tickets, NASCAR likewise charge different service fees to its stakeholders and makes revenue. For instance it charged sanctioning fees of $1-2 million per race typically in 2005.
Promotional strategy of Decision Making Its Not What You Think Case Study Analysis 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. The business is not totally relied upon its fan base for its promotion and promote through regional radio stations too. The company has also adopted the merchandising media of promotion, in which the company sells products with its logo design.
NASCAR have its racing tracks in numerous cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to comprehend nationwide appeal.
Nestle individuals method is consisted of supplying much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential element of Decision Making Its Not What You Think Case Study Solution A marketing technique as its events are the source of entertainment for crowd. Its individuals method consists of efforts to provide much better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under people technique of NASCAR.
A number of service processes are needed to carry out racing occasions in an effective way. These procedures consist of; correct schedule of time, arrangement for spectators, selling tickets, plan of space for sponsors, managing logistics etc. These all procedures contribute I developing NASCAR image, enhancing viewers experience and increasing fan base.
Crucial physical evidences for the NASCAR consists of the presence of its racing tracks, stock vehicles and racing occasions. Along with it, its retailing brand names including tee shirts, caps, goodies and so on, also serve as a physical proof for NASCAR.
Item Life Process Evaluation.
The racing events by Decision Making Its Not What You Think Case Study Analysis 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 very first stage competitors for NASCAR was low, as the competitors drove the cars comparable to the cars and trucks driven by normal individuals.
The very first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the business moved towards relaying its races on television in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he changed NASCAR from a local Sport popular organization into one with worldwide fan base. He started a brand-new era of profitable sponsorships and television contracts for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having wide variety of revenue sources. The business has about 500 sponsors with broadcasting its events in about 150 countries. The company has a great deal of tracks in most of the cities of United States.
The decline in the company's offerings started after 2005 with typical presence rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant causes of decline include the financial crisis of 2008, which increased the expense of getting to tracks for audiences due to increasing fuel prices, 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 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Decision Making Its Not What You Think Case Analysis is based upon the geographical presence of its tracks in numerous states and cities in United States, and the television broadcasting of its events in various countries. 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 company local as well as global fan base.
The market division of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its current fan base is majorly comprised of male married fans with a typical 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 also. To increase the demographic section of its market NASCAR must revise its marketing strategies to attract more age and lower its costs to go into in the marketplace section with a low typical earnings.( htt1).
NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to buy tickets and see the races once in a week. NASCAR has tried to increase the quality of its racing by introducing stage racing, they likewise have attempted to lower rates and make the event more convenient by introducing live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the events. Currently, the fans preference is towards viewing the race at house on television rather than going, as the consumer experience at NASCAR tracks is not favourable as well as costly.
One of the prospective target market 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 great possible 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 segment has increasing wealth rate with about $1 trillion of wealth in 2014. The section reveals affinity with cars and truck culture, but need a more concentrated marketing towards inviting the section towards racing.
Kids are likewise one of the potential target market segment for NASCAR, as they are more connected socially than other groups. Cars and truck racing video games established by Decision Making Its Not What You Think Case Study Help can be a prospective source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards customizing and improving its digital functions to bring in the kids target market.
This huge expenditure makes the sector capacity for NASCAR marketing technique of increasing its fan base. The market segment thinks about NASCAR as an organization doing not have in creating a multiculturalism environment. NASCAR ought to 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 choices concerning marketing. These 5 C's needs to be evaluated appropriately for taking any marketing decision. These 5 C's represent Environment, Company, Collaborators, Rivals and customers.
It needs to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE means political, economic, social, technical, legal and environmental and is specified above.
Decision Making Its Not What You Think Case Study Solution is an auto racing company with having USP of high quality vehicle racing with an international structure. Its sector is sports group and events.
Collaborations includes distributors, suppliers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.
The client 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 consisted of married males with an average age of 47, which passes their fandom to their children and develop generational commitment.
Groups usually represents sponsors in NASCAR and the medium of advertising is motorists. These drivers can go versus NASCAR if they got much better opportunity in terms of prizes and television exposure.
1. Maintaining and establishing Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population section of USA but regrettably NASCAR had actually been unable to draw in the this targeted sector. In order to bring in the young growing generation the NASCAR ought to market by utilizing social media like Facebook. It should develop a Facebook page consisting of the information concerning the races and the locations of tracks to make the consumer informative about the core operations of Decision Making Its Not What You Think Case Study Solution. It must also upgrade its Facebook page on day-to-day basis to provide info about its upcoming events. This would make the target audience sector more helpful about business and would lead to bring in big fans base.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Exhibit). The major reason behind it is that, the racers mainly play in groups and are not able to construct a key account and maintain a close contact with fans. The bad contacts with fans result in less tourist attraction of audiences towards the racers and a low star power. Star power is an important factor for bring in audiences towards tracks and towards television. The star power for the motorists at NASCARA could be enhanced by developing and upgrading accounts of crucial drivers by NASCARA itself. This would eliminate the requirement of requiring drivers to keep their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Establishing New Games and enhancing present video games for kids.
In order to attract these kids, NASCARA should enhance its present racing games by presenting personalization in the vehicles i.e. altering colours, selection of speed, introducing group racing in the game, using much better graphics related to the racing tracks and introducing various levels in the video game. All these modifications in the current game would offer much better experience to kids.
Together with it, NASCAR needs to likewise develop new games associated with racing like kids racing with kids characters as drivers, animation racing with racing between numerous cartoon characters with an option of picking the preferred animation character for the kids. These methods would enable the company to bring in among its potential target segments.
4. Introducing multiculturalism at events.
Decision Making Its Not What You Think Case Study Solution occasions are comprised of fans with really few multiculturalism, due to cost of arrival in occasions, making it unappealing for the clients viewing sport events as get-togethers i.e. Generation Y customers. As the Generation Y customers are a prospective target market for NASCAR, therefore the company should take particular steps to attract this possible target audience. It should embrace methods to draw in the customers far from the tracks location with various culture. The technique to do so could be supplying special discounts on tickets or totally free tickets to audiences coming from a particular distance or from another state. It would increase cultural diversity of the fans and would make Generation Y customers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR should work on facilities and features at tracks due to the fact that on the race day viewers got dissatisfied. Viewers have many expectations from Decision Making Its Not What You Think Case Study Analysis due to the fact that in very same industry other companies are supplying much better services than NASCAR. IF NASCAR do not work on this issue then its fans may shifted to its rivals.
Marketing Budget plan
Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the cost related information for the marketing techniques. (See Appendix B). It can be seen that technique 5 of enhancing consumer experience at tracks would require highest preliminary investment and cost and technique 4 of presenting multiculturalism will need least expensive preliminary investment with lowest further each year cost. The company needs to focus on the resource allotment on these strategies on the basis of its offered resources and the possible advantages which the technique would provide.
NOTE: The worths about expense are assumed on reasonable basis due the lack of figures and facts related to cost in the case study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the external and internal factors of Decision Making Its Not What You Think Case Study Solution triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long term. These methods would deal with internal factors like bad consumer experience at tracks, insufficient social media marketing, incapable digital medias like games, lack of culturalisms at tracks and so on, in addition to with external factors like moving of fans towards other sports, demographical modifications in America and changing domesticity designs.