E Commerce In Latin America Case Study Solution and Analysis
NASCAR (National Association for Stock Car Car Racing) is an organization conducting series of Stock Car racing in United States and acting as a sanctioning body for driving the guidelines for Stock Vehicle Racing. 2) Stock Automobile Racing by NASCAR is the 2nd biggest viewer sport, with highest number of sponsors. 1) The other sources of revenue for E Commerce In Latin America Case Study Analysis includes; 10% of the total revenue from tv rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist technique. The structure of Car of Tomorrow by NASCAR, with an intention of safety for the drivers, brought numerous tensions among the stakeholders of the sport.
The communication audit, carried out in 2010, exposed that regardless of the reality that the organisation extremely rely on the communications between its stakeholders, there was no recognizable organisation communication technique. (
The audit pointed out numerous doing not have of NASCAR in regards to lack of internal integration, absence of fan management strategy and lack of social and digital media of marketing. The business has complex ecosystem with independent tracks, chauffeurs and teams. This structure with closed business culture bring various challenges in speeding up a change. Other partners in environment includes the media networks i.e. tv and radio, and business online marketers.
E Commerce In Latin America Case Study Solution viewers was extremely faithful to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business marketers.
The business is currently facing the issue of declining rates of participation at racing tracks and rates of television audiences. This can put a substantial effect on its revenues from sponsors, media rights, and from other sources of earnings.
Although the company was quite successful till 2005 with its traditional marketing strategies, but soon after 2005 the company begins dealing with different problems consisting of decline of its fan base. A number of external as well as internal factors are responsible for the decrease. Internal elements consist of; inadequate investment in social media and other digital medias of.
Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and create generational commitment. The family system in America was changing resulting in decrease of influence of married male fan base over their youngsters. In addition to it perceptions about car was also altering with viewing cars and truck a vehicle to reach at point B from point A, rather than as a fun project. Other challenges for E Commerce In Latin America Case Study Solution includes the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on. These all obstacles were tending the business to modify its marketing techniques.
In SWOT analysis, strengths specified as business's qualities which are different from its rivals. These are company's core proficiencies on which company performance or business success based upon. E Commerce In Latin America Case Study Analysis core competencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and rules relating to expert stock vehicle racing are determined by NASCAR like if any team with needed abilities and resources can enter into races by following guidelines and regulations dictated by NASCAR. So NASCAR has monopoly it this element. Its strengths also consists of that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were used to transmit in more than 150 countries around the globe with more than $56 million incomes. The primary sources of their incomes come from tv rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and corporate sponsors. All the events of NASCAR are sponsored by corporates because of most significant brand name commitment of fans toward brand names advertised by E Commerce In Latin America Case Study Solution. (See Appendix A).
Weaknesses in SWOT Analysis are thought about as external elements. Weaknesses consists of the elements that stops company to perform at required level of efficiency. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They typically used to form guidelines and other needed procedures without intervention of others which leads to poor partnership. NASCAR establishes Car of Tomorrow without partnership so result is that motorists did not like that principle. As this is racing sport so covering of sports by media is also difficult. It was likewise found that NASCAR had no reliable strategy for business communication. They don't understand how to manage issue if it took place off track. Inadequate business interaction results in that they do not have clear direction for their long term objectives. They do not know that where they want to see this sport in future.
NASCAR typically used to rely on standard media sources like local newspaper for publicity of its sports. NASCAR likewise came to understand from these traditional media outlets that sport was tough to cover. When sports fans were asked regarding popular stars and stars then NASCAR chauffeur was not found even in leading twenty actions.
Economic down turn was experienced in late 2000 which can be risk for NASCAR since if there is financial down turn then individuals would be having less return on investment. Economic down turn likewise results in increase fuel prices which likewise impacted NASCAR. Now if NASCAR make significant financial investments in new sections which are based on brand-new consumers then it may face negative comments from its core fan base.
Porter's 5 Forces Analysis
It is crucial to understand market in which business is working due to the fact that NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are used to determine profitability, strength and attractiveness of NASCAR organisation.
These chauffeurs can go versus NASCAR if they got better chance in terms of prizes and tv exposure. If viewers enjoy other race automobiles and chauffeurs more than NASCAR then viewers can move to those other intriguing vehicles and motorists. NASCAR could be having risk from its two direct competitors that is Solution 1 and Moto GP.
The supplier power suggests the number of suppliers are offered in industry and what is the expense associated with supplier if business shifts from one supplier to another. Because chauffeurs with required resources and abilities are limited, in this market there is supply monopoly.
In the case of NASCAR consumers are its viewers. Viewers can change to other rivals easily because audiences will having low changing expense.
Threat of Substitution
Replacements are referred as alternatives. The substitutes in this case can be other home entertainment suggests like viewers can shift to other sports. So there are wide variety of alternatives are available in this situation which suggests that danger of alternative is high.
Danger of New Entry
It is defined as how it is easy for any business to enter in that specific industry. When it comes to E Commerce In Latin America Case Study Solution hazard of new entry is low. If any business needs to enter in this service than they have to make heavy financial investments, since. They require to construct automobiles and racing tracks and also requires to pay significant total up to chauffeurs for switching.
As NASCAR is working in various markets so it needs to deal with different regulations. It is likewise kept in mind that NASCAR has dealt with increased analysis concerning regulatory. Every federal government has different concern so NASCAR has actually to be prepared for it as concern can be moved to other sector.
Economic factors consists of taxation rate, exchange rate, financial efficiency 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 capabilities of workers to develop brand-new opportunities and improve existing opportunities.
Every society is different from each other. Each has different social values and standards. It helps in understanding concerning society and preference of customers. Social factors includes customs, culture, mindsets towards specific services and products, demographics, standards, interests etc. It can be concluded that marketing through other means instead of conventional (i.e. newspaper) can be chosen in this society.
Innovation has effect on practically every business. It includes innovation in business technique. In this case of E Commerce In Latin America Case Study Solution it can be noted that companies are greatly investing for research and development. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.
Since every nation has different legal terms and conditions, Legal plays a crucial role in every nation. E Commerce In Latin America Case Study Help requires to be make sure that they protect their legal rights in every county so any company does not damage to its legal rights.
Ecological factors are also essential for every organisation. NASCAR needs to make sure that its automobiles are not creating contamination more than acceptable level.
7 P's of Marketing
The items of E Commerce In Latin America Case Study Help in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to business marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race events tickets is based upon the place and significance of the racing occasions. Along with race events tickets, NASCAR likewise charge numerous service charge to its stakeholders and earns income. It charged approving fees of $1-2 million per race on average in 2005.
Advertising strategy 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 numerous cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to comprehend across the country appeal.
Nestle people technique is comprised of offering much better experience to its viewers, its fan base and to all of its stakeholders. People are an important aspect of E Commerce In Latin America Case Study Help A marketing method as its events are the source of home entertainment for crowd. Its people technique consists of efforts to offer much better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under individuals technique of NASCAR.
Several company processes are required to perform racing occasions in an effective method. These processes consist of; correct schedule of time, arrangement for spectators, selling tickets, plan of space for sponsors, handling logistics etc. These all procedures contribute I constructing NASCAR image, enhancing spectators experience and increasing fan base.
Most important physical proofs for the NASCAR includes the existence of its racing tracks, stock vehicles and racing events. In addition to it, its merchandising brand names including t-shirts, caps, goodies etc., also serve as a physical evidence for NASCAR.
Item Life Cycle Evaluation.
The racing events by NASCAR was introduced on June 19, 1949. At the very first stage competition for NASCAR was low, as the rivals drove the vehicles comparable to the vehicles driven by ordinary people.
After conducting its first race effectively the business moved towards developing its own tracks. The very first E Commerce In Latin America Case Study Help based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by facility of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards transmitting its races on television in 1979. The very first event transmitted on tv was flag-to-flag protection of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular company into one with international fan base. He started a new age of financially rewarding sponsorships and tv contracts for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the company having wide variety of earnings sources. The company has about 500 sponsors with broadcasting its events 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 reasons for decrease include the monetary crisis of 2008, which increased the cost of reaching tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.
The market segmentation of E Commerce In Latin America Case Study Solution can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of E Commerce In Latin America 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 occasions 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 large geographical division supplies the business local as well as worldwide fan base.
The market division of E Commerce In Latin America Case Study Analysis is likewise highlydiverse based upon the gender, income and age of the customer. To increase the group sector of its market NASCAR should modify its marketing strategies to attract more age groups and lower its costs to go into in the market segment with a low typical earnings.
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races once in a week. NASCAR has attempted to increase the quality of its racing by presenting phase racing, they also have attempted to lower costs and make the event more convenient by introducing live racing.
Behavioural segmentation of E Commerce In Latin America Case Study Solution is based upon the behaviour of fans in regards to enjoying the race live on the television or by entering the events. Presently, the fans choice is towards enjoying the race at home on tv instead of going, as the client experience at NASCAR tracks is not favourable as well as expensive. This choice makes the rates for participation lower than the rates for television audiences. NASCAR has to change the behaviour of its fan base by presenting qualitative services at its tracks.
Among the possible target audience of E Commerce In Latin America Case Study Analysis was Hispanics; the young and growing population of United States. The market segment has excellent prospective for NASCAR as the population was growing at a greater rate and it was expected to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. The sector reveals affinity with car culture, but need a more concentrated marketing towards inviting the sector towards racing.
Kids are likewise one of the possible target market segment for NASCAR, as they are more connected socially than other groups. Automobile racing games established by E Commerce In Latin America Case Study Analysis can be a possible source of getting attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and enhancing its digital functions to draw in the kids target market.
This big expense makes the sector potential for NASCAR marketing method of increasing its fan base. The market section thinks about NASCAR as a company doing not have in developing a multiculturalism environment. NASCAR must take various actions to enhance the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking decisions regarding marketing. These 5 C's needs to be evaluated appropriately for taking any marketing choice. These 5 C's represent Environment, Business, Collaborators, Competitors and customers.
It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, environmental and legal and is specified above.
E Commerce In Latin America Case Study Analysis is an auto racing company with having USP of high quality auto racing with a global structure. Its sector is sports group and occasions.
Collaborations includes distributors, providers and alliances of E Commerce In Latin America Case Study Analysis. It is collaborated with different racing teams which are participating in racing. It also worked together with Turners Sport for digital rights. NASCAR utilized to earn money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. For instance NASCAR needed to get approval from Turner Sport if it wish to develop its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of each and every single video which is shoot throughout race at track.
The client of E Commerce In Latin America Case Study Solution are its viewers. 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 youngsters and produce generational commitment.
Teams normally represents sponsors in NASCAR and the medium of advertising is motorists. These drivers can go versus NASCAR if they got much better chance in terms of prizes and tv direct exposure.
1. Establishing and Keeping Facebook Page.
Among the possible target audience sectors for NASCAR is Hispanics which is the growing population segment of USA however regrettably NASCAR had actually been unable to attract the this targeted sector. In order to bring in the young growing generation the NASCAR should market by utilizing social networks like Facebook. It should develop a Facebook page including the information regarding the races and the places of tracks to make the consumer informative about the core operations of E Commerce In Latin America Case Study Help. It needs to also upgrade its Facebook page on everyday basis to offer information about its upcoming occasions. This would make the target audience section more useful about business and would result in drawing in large fans base.
2. Establishing and Updating Accounts of Key Drivers.
NASCAR motorists 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 factor behind it is that, the racers primarily play in teams and are not able to develop an essential account and keep a close contact with fans. The poor contacts with fans lead to less attraction of audiences towards the racers and a low star power. Star power is an important aspect for bring in audiences towards tracks and towards tv. The star power for the chauffeurs at NASCARA might be enhanced by developing and upgrading accounts of crucial motorists by NASCARA itself. This would get rid of the requirement of forcing motorists to maintain their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Establishing New Games and enhancing existing video games for kids.
Kids invested the majority of their time on playing video games and utilizing smart devices. Sadly, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less attracted towards the sport. In order to attract these kids, NASCARA ought to enhance its existing racing video games by presenting personalization in the automobiles i.e. changing colours, selection of speed, introducing group racing in the video game, utilizing much better graphics associated with the racing tracks and introducing numerous levels in the game. All these adjustments in the current game would offer much better experience to kids.
Together with it, NASCAR should likewise build brand-new video games associated with racing like kids racing with kids characters as chauffeurs, animation racing with racing between various cartoon characters with an option of selecting the favourite animation character for the kids. These methods would make it possible for the company to bring in one of its prospective target segments.
4. Presenting multiculturalism at occasions.
NASCAR events are made up of fans with really couple of cultural variety, due to expense of arrival in events, making it unsightly for the clients viewing sport events as social celebrations i.e. Generation Y consumers. As the Generation Y customers are a possible target market for NASCAR, therefore the business ought to take specific procedures to attract this potential target market.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on infrastructure and facilities at tracks due to the fact that on the race day viewers got dissatisfied. Viewers have lots of expectations from E Commerce In Latin America Case Study Help since in very same market other business are providing better services than NASCAR. IF NASCAR don't work on this issue then its fans might shifted to its rivals.
Marketing budget 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 techniques. It can be seen that method 5 of improving client experience at tracks would require highest initial financial investment and cost and strategy 4 of presenting multiculturalism will require most affordable preliminary investment with lowest even more per year cost.
KEEP IN MIND: The worths about expense are assumed on rational basis due the lack of realities and figures associated with cost in the event study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the external and internal elements of E Commerce In Latin America Case Study Analysis triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long term. These methods would cope with internal aspects like bad consumer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., along with with external aspects like moving of fans towards other sports, demographical modifications in America and changing domesticity styles.