Decision Making Its Not What You Think Case Study Solution and Analysis
NASCAR (National Association for Stock Automobile Auto Racing) is an organization carrying out series of Stock Automobile racing in United States and acting as a sanctioning body for driving the rules for Stock Vehicle Racing. 2) Stock Vehicle Racing by NASCAR is the second largest 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 overall revenue from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed business culture with the non-interventionist technique. This non collective approach brings stress in the sport. The building of Automobile of Tomorrow by Decision Making Its Not What You Think Case Study Solution, with an intent of safety for the chauffeurs, brought various stress among the stakeholders of the sport.
The interaction audit, conducted in 2010, revealed that despite the reality that the service highly rely on the interactions between its stakeholders, there was no identifiable company communication strategy. (
The audit explained numerous lacking of NASCAR in terms of lack of internal integration, lack of fan management method and lack of digital and social media of marketing. The company has complicated community with independent tracks, teams and drivers. This structure with closed business culture bring various challenges in accelerating a change. Other partners in community includes the media networks i.e. tv and radio, and corporate marketers.
Decision Making Its Not What You Think Case Study Help viewers was extremely faithful to the sport and the brand names related to the NASCAR, making it appealing for sponsors and corporate marketers.
The company is presently dealing with the problem of declining rates of attendance at racing tracks and rates of television viewers. This can put a considerable effect on its profits from sponsors, media rights, and from other sources of revenue.
The business was rather successful till 2005 with its traditional marketing strategies, however quickly after 2005 the company begins facing numerous problems consisting of decrease of its fan base. A number of external in addition to internal aspects are responsible for the decrease. Internal elements include; insufficient financial investment in social media and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and create generational loyalty. Other challenges 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 homes through jumbo turns, Wi-Fi gain access to, and so on.
NASCAR core competencies includes it has rights of dictating rules as sanctioning body. Policies and rules relating to professional stock automobile racing are dictated by NASCAR like if any team with needed abilities and resources can enter into races by following guidelines and policies dictated by NASCAR. All the events of NASCAR are sponsored by corporates since of biggest brand name loyalty of fans toward brand names marketed by Decision Making Its Not What You Think Case Study Help.
Weak Points in SWOT Analysis are considered as external aspects. Weaknesses consists of the aspects that stops company to carry out at required level of efficiency. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They generally used to form rules and other required procedures without intervention of others which leads to poor collaboration. NASCAR develops Cars and truck 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 tough. It was likewise discovered that NASCAR had no effective technique for company interaction. They don't understand how to manage concern if it occurred off track. Inefficient service communication leads to that they don't have clear instructions for their long term objectives. They do not understand 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 factors on which company is having competitive advantage. NASCAR typically utilized to rely on conventional media sources like local paper for publicity of its sports. Typically these conventional media sources attempt to cover their home team and specific type of occasions. NASCAR likewise familiarized from these standard media outlets that sport was hard to cover. Media landscape also altered from traditional to digital landscape. Newspapers failed. NASCAR can deal with its capabilities to get maximum possible take advantage of this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in digital and social media to get its advantages. Digital rights of NASCAR were also offered to Turner Sports. NASCAR utilized to get pay check of around $15 million annually from Turner Sports. There are variety 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 during race at track. If media sources like papers, magazines and cable channels wish to publish videos of races on their particular pages then they are needed 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 really essential role in generating incomes from every sport. Nevertheless it was noted that Decision Making Its Not What You Think Case Study Solution is lagging in this location i.e. star power. For instance when sports fans were asked concerning popular celebrities and stars then NASCAR driver was not discovered even in leading twenty reactions. So NASCAR can put efforts in this location too for profits generation. They must guide their chauffeurs that how they can end up being sport stars. Four tactical focuses which are generated by research team can also be worked as chance for NESCAR. These four tactical focuses compares and analysis Decision Making Its Not What You Think Case Study Analysis strategies.
Economic down turn was experienced in late 2000 which can be risk for NASCAR because if there is economic down turn then individuals would be having less return on financial investment. Economic down turn likewise results in increase fuel prices which also impacted NASCAR. Now if NASCAR make considerable financial investments in new sections which are based on new customers then it may face negative remarks from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a design that is used to analyse market in which company is working. It helps in determining what are strengths and weakness of any specific industry. It recommend that every market is different from one another. It is essential to understand market in which business is working since NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are used to recognize success, intensity and attractiveness of Decision Making Its Not What You Think Case Study Solution company.
These drivers can go versus NASCAR if they got better opportunity in terms of prizes and tv exposure. If audiences enjoy other race cars and trucks and drivers more than NASCAR then audiences can move to those other intriguing automobiles and drivers. NASCAR could be having hazard from its two direct competitors that is Solution 1 and Moto GP.
If company shifts from one provider to another, the provider power shows the number of providers are readily available in industry and what is the cost associated with provider. Due to the fact that motorists with needed skills and resources are restricted, in this industry there is supply monopoly.
This force is regarding to consumers that is it easy for customers to shift to other products. Then customers are less likely to switch, if there is more changing cost is associated. When it comes to NASCAR clients are its viewers. Audiences can change to other competitors quickly due to the fact that audiences will having low changing expense.
Hazard of Alternative
Alternatives are referred as alternatives. The replacements in this case can be other entertainment indicates like audiences can move to other sports. So there are large range of replacements are available in this situation which suggests that hazard of substitute is high.
Hazard of New Entry
It is defined as how it is easy for any business to go into in that specific industry. In the case of Decision Making Its Not What You Think Case Study Solution danger of new entry is low. Since if any company requires to enter in this company than they have to make heavy investments. They require to build cars and racing tracks and likewise needs to pay substantial amount to chauffeurs for changing.
As NASCAR is working in various markets so it needs to deal with various guidelines. It is likewise noted that NASCAR has actually dealt with increased analysis concerning regulatory. Every government has various top priority so NASCAR has to be prepared for it as concern can be shifted to other sector.
Financial elements includes taxation rate, currency exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can utilize abilities of workers to produce new opportunities and enhance existing chances.
Each has various social worths and norms. It helps in comprehending concerning society and choice of clients.
Innovation has effect on nearly every company. It consists of development in organisation technique. In this case of Decision Making Its Not What You Think Case Study Solution it can be noted that business are heavily investing for research study and advancement. NASCAR needs to also deal with its media rights policy with Turner Broadcasting System.
Since every nation has various legal terms and conditions, Legal plays an essential function in every nation. Decision Making Its Not What You Think Case Study Analysis requires to be make sure that they safeguard their legal rights in every county so any business does not damage to its legal rights.
Environmental elements are likewise essential for every business. Because normally governments do not permit those company which can harm to environment. These ecological factors consists of laws concerning contamination, climate modification, safe waste disposal, policies relating to insurance etc. NASCAR needs to ensure that its cars are not creating pollution more than appropriate level.
7 P's of Marketing
The products of Decision Making Its Not What You Think Case Study Help in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices strategy of NASCAR for its race events tickets is based upon the place and importance of the racing occasions. In addition to race events tickets, NASCAR likewise charge various service fees to its stakeholders and earns income. It charged sanctioning fees of $1-2 million per race on average in 2005.
Promotional technique of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto 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 understand across the country popularity.
Nestle individuals technique is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial element of Decision Making Its Not What You Think Case Study Analysis A marketing technique as its events are the source of home entertainment for crowd. Its individuals method consists of efforts to provide much better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals strategy of NASCAR.
Several company processes are needed to perform racing events in an effective way. These procedures consist of; proper schedule of time, plan for spectators, offering tickets, arrangement of area for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.
Most important physical proofs for the NASCAR consists of the existence of its racing tracks, stock automobiles and racing events. In addition to it, its merchandising brands consisting of tee shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.
Item Life Process Assessment.
The racing events by Decision Making Its Not What You Think Case Study Solution was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the very first stage competition for NASCAR was low, as the rivals drove the automobiles similar to the vehicles driven by regular individuals.
The very first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the company moved towards transmitting its races on tv 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 international fan base. He started a new period of rewarding sponsorships and television agreements for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the company having wide range of earnings sources. The business has about 500 sponsors with transmitting its events in about 150 countries. The company has large number of tracks in the majority of the cities of United States.
The major causes of decline include the financial crisis of 2008, which increased the cost of showing up at tracks for audiences due to increasing fuel costs, and the moving of its fan base towards other sports.
The market segmentation of Decision Making Its Not What You Think Case Study Analysis can be divided into four 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 existence of its tracks in various states and cities in United States, and the tv broadcasting of its events in numerous nations. The company has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation supplies the business local along with worldwide fan base.
The demographic division of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly consisted of male married fans with an average age of 47 years and an income around $30-50 thousands. Nevertheless currently 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 techniques to draw in more age groups and lower its rates to enter in the market sector with a low average income.( htt1).
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to purchase tickets and see the races when in a week. NASCAR has actually tried to increase the quality of its racing by presenting stage racing, they likewise have tried to lower rates and make the event more convenient by presenting live racing.
Behavioural segmentation of Decision Making Its Not What You Think Case Study Analysis is based upon the behaviour of fans in terms of viewing the race reside on the tv or by going in the occasions. Currently, the fans preference is towards viewing the race at home on television instead of going, as the customer experience at NASCAR tracks is not favourable in addition to pricey. This preference makes the rates for attendance lower than the rates for television viewers. NASCAR needs to alter the behaviour of its fan base by introducing qualitative services at its tracks.
One of the potential target market of NASCAR 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 anticipated to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.
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 established by Decision Making Its Not What You Think Case Study Analysis can be a possible source of getting attention of kids towards NASCAR track racing. NASCAR requires more attention towards customizing and enhancing its digital functions to draw in the kids target market.
This huge expenditure makes the section capacity for NASCAR marketing method of increasing its fan base. The market sector considers NASCAR as a company doing not have in creating a multiculturalism atmosphere. NASCAR needs to take numerous actions to improve the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions concerning marketing.
It needs 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 an auto racing business with having USP of high quality auto racing with an international structure. Its sector is sports group and occasions. Its target market is males in the age group of 15-60 years. Company has closed corporate culture and having non-interventionist technique.
Collaborations includes distributors, providers and alliances of Decision Making Its Not What You Think Case Study Solution. It is teamed up with different racing groups which are participating in racing. It also collaborated with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million every year from Turner Sports. There are number 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 also had rights of every video which is shoot throughout race at track.
The client of Decision Making Its Not What You Think Case Study Solution are its audiences. They target consumers with having age of 15-60 years. 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 direct rivals of NASCAR are Solution 1 and Moto GP. Groups typically represents sponsors in NASCAR and the medium of marketing is motorists. It can be stated that drivers and race vehicles are rivals. If they got much better opportunity in terms of rewards and tv direct exposure, these chauffeurs can go versus NASCAR.
1. Establishing and Maintaining 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 bring in the this targeted segment. It ought to establish a Facebook page including the details relating to the races and the locations of tracks to make the consumer informative about the core operations of NASCAR.
2. Establishing and Updating Accounts of Secret Drivers.
Decision Making Its Not What You Think Case Study Help drivers 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 an essential factor for drawing in viewers towards tracks and towards tv.
3. Establishing New Games and enhancing existing games for kids.
In order to attract these kids, NASCARA needs to enhance its present racing video games by introducing personalization in the cars i.e. altering colours, selection of speed, introducing group racing in the game, using better graphics related to the racing tracks and presenting numerous levels in the game. All these adjustments in the current game would provide much better experience to kids.
Together with it, NASCAR ought to likewise develop brand-new video games associated with racing like kids racing with kids characters as drivers, cartoon racing with racing between numerous animation characters with a choice of selecting the preferred animation character for the kids. These strategies would make it possible for the business to draw in among its possible target segments.
4. Introducing multiculturalism at events.
Decision Making Its Not What You Think Case Study Analysis events are comprised of fans with really couple of cultural diversity, due to expense of arrival in occasions, making it unappealing for the consumers viewing sport occasions as affairs i.e. Generation Y customers. As the Generation Y clients are a potential target market for NASCAR, therefore the company should take particular steps to attract this possible target market. It should embrace methods to bring in the customers far from the tracks place with various culture. The technique to do so might be providing unique discounts on tickets or complimentary tickets to audiences coming from a particular distance or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more satisfied.
5. Improving Customer Experience at Tracks.
Due to the fact that on the race day viewers got dissatisfied, NASCAR ought to work on infrastructure and features at tracks. Viewers have numerous expectations from NASCAR due to the fact that in same industry other companies are providing better services than NASCAR. IF NASCAR do not work on this concern then its fans may moved to its competitors. According to fans there were not adequate facilities were offered as compare to other sports companies. NASCAR must make sure that it offer adequate centers that includes cleaned up toilets, comfortable seating arrangement. They need to also offer WIFI services and accessibility of charge card throughout that track. It must be also make sure that there suffice jumbo turns put at all needed locations. There need to be also food stalls that supply quality food to viewers. In this way audiences will be having enjoyable experience at the day of event. (See Appendix B).
Marketing Spending plan.
Marketing budget made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, shows the expense associated information for the marketing methods. (See Appendix B). It can be seen that technique 5 of enhancing customer experience at tracks would require highest preliminary investment and cost and method 4 of introducing multiculturalism will need lowest initial financial investment with lowest further per year expense. The business ought to prioritize the resource allocation on these methods on the basis of its readily available resources and the potential benefits which the technique would provide.
KEEP IN MIND: The values about expense are presumed on logical basis due the absence of facts and figures associated with cost in the event study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal elements of Decision Making Its Not What You Think Case Study Analysis triggering the decline 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 techniques would manage internal aspects like poor consumer experience at tracks, insufficient social media marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, as well as with external factors like moving of fans towards other sports, demographical modifications in America and changing domesticity designs.