E Commerce In Latin America Case Study Solution & Analysis
NASCAR (National Association for Stock Automobile Car Racing) is a company conducting series of Stock Car racing in United States and acting as an approving body for driving the guidelines for Stock Vehicle Racing. 2) Stock Car Racing by NASCAR is the second largest viewer sport, with highest number of sponsors. 1) The other sources of revenue for E Commerce In Latin America Case Study Analysis consists of; 10% of the overall income from tv rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed business culture with the non-interventionist approach. Nevertheless this non collaborative method brings tensions in the sport. The building of Car of Tomorrow by E Commerce In Latin America Case Study Help, with an intention of safety for the drivers, brought different tensions among the stakeholders of the sport.
The interaction audit, carried out in 2010, exposed that regardless of the truth that business extremely depend on the communications between its stakeholders, there was no identifiable service interaction method. The industry's target customers, instructions and goals were all unknown.
The audit mentioned various doing not have of NASCAR in regards to lack of internal integration, lack of fan management method and absence of digital and social media of marketing. The business has intricate environment with independent tracks, teams and drivers. This structure with closed corporate culture bring different obstacles in accelerating a change. Other partners in ecosystem consists of the media networks i.e. tv and radio, and corporate 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 corporate marketers.
The company is presently dealing with the issue of decreasing rates of participation at racing tracks and rates of tv viewers. This can put a significant impact on its profits from sponsors, media rights, and from other sources of earnings.
Although the business was quite effective till 2005 with its traditional marketing methods, however soon after 2005 the business starts dealing with different issues consisting of decrease of its fan base. A number of external along with internal aspects are responsible for the decrease. Internal elements consist of; inadequate financial investment in social networks 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 youngsters and create generational commitment. But the family system in America was altering leading to reduction of impact of married male fan base over their youngsters. In addition to it perceptions about car was likewise altering with perceiving cars and truck a vehicle to reach at point B from point A, rather than as an enjoyable job. Other challenges for E Commerce In Latin America Case Study Help includes the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, etc. These all obstacles were tending the company to modify its marketing methods.
NASCAR core competencies includes it has rights of dictating guidelines as sanctioning body. Policies and rules relating to expert stock vehicle racing are determined by NASCAR like if any team with needed skills and resources can enter into races by following guidelines and policies dictated by NASCAR. All the occasions of NASCAR are sponsored by corporates due to the fact that of greatest brand name commitment of fans towards brands advertised by E Commerce In Latin America Case Study Solution.
Weaknesses in SWOT Analysis are thought about as external factors. Weak points includes the aspects that stops business to carry out at required level of efficiency. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They normally used to form rules and other needed procedures without intervention of others which results in bad partnership. For instance NASCAR establishes Automobile of Tomorrow without partnership so result is that motorists did not like that concept. As this is racing sport so covering of sports by media is likewise tough. It was likewise found that NASCAR had no effective technique for business communication. They do not know how to handle concern if it happened off track. Ineffective business communication results in that they don't have clear instructions 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 aspects which can be favourable to business or the external factors on which company is having competitive benefit. NASCAR typically utilized to depend on conventional media sources like regional newspaper for publicity of its sports. Usually these conventional media sources try to cover their home team and specific sort of events. NASCAR also came to know from these traditional media outlets that sport was hard to cover. Media landscape also altered from standard to digital landscape. Newspapers failed. NASCAR can deal with its abilities to get maximum possible gain from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in digital and social media to get its benefits. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR used to get pay check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. For example E Commerce In Latin America Case Study Analysis had to get approval from Turner Sport if it wish to develop its Facebook page, twitter account and even mobile application. Turner Sport also had rights of each and every single video which is shoot during race at track. If media sources like newspapers, magazines and cable television channels wish to post videos of races on their respective pages then they are needed to pay licensing charges to Turner Sport. So NASCAR can work on terms and attempt to negotiate with Turner Sports to get maximum benefits of it. Star power plays extremely important function in generating revenues from every sport. It was noted that NASCAR is lagging in this area i.e. star power. For example when sports fans were asked concerning popular stars and stars then NASCAR motorist was not found even in leading twenty responses. NASCAR can put efforts in this location too for earnings generation. They ought to direct their motorists that how they can become sport stars. 4 strategic focuses which are generated by research study group can likewise be functioned as opportunity for NESCAR. These four tactical focuses compares and analysis E Commerce In Latin America Case Study Analysis methods.
Threats in SWOT analysis are specified as external aspects that can threat to business's success. Economic down turn was experienced in late 2000 which can be danger for NASCAR due to the fact that 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 mindful in spending their loan. Economic down turn likewise leads to boost fuel rates which likewise affected NASCAR. Since fans of NASCAR used to attend its occasion from long distances. NESCAR had a rule of 65/25/10 for profits distribution. 65 percent incomes from media rights would be dispersed to race course, 25 percent revenue would be distributed to contending group and staying 10 percent would be maintained by NESCAR which is approving body. Competing group wished to increase their part of earnings from 25 percent because of boost in operating cost of a race group and also there is decrease in the variety of full-season sponsorship. NESCAR also deals with hazards from other sponsors due to the fact that they are making enormous financial investments to improve experience of fans. Which includes updating existing opportunities, constructing brand-new opportunities, supplying Wi-Fi center and also offering other interactive mediums to connect sports on smartphones. 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 changing resulting in decrease of impact of married male fan base over their children. In addition to it understandings about cars and truck was also changing with viewing vehicle a vehicle to reach at point B from point A, instead of as a fun job. Now if E Commerce In Latin America Case Study Analysis make considerable financial investments in brand-new segments which are based on brand-new consumers then it might deal with negative remarks from its core fan base.
Porter's 5 Forces Analysis
It is important to understand market in which company is working due to the fact that NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are used to identify profitability, strength and appearance of NASCAR organisation.
These drivers can go against NASCAR if they got much better opportunity in terms of rewards and television direct exposure. If audiences enjoy other race cars and trucks and chauffeurs more than NASCAR then audiences can shift to those other interesting automobiles and drivers. NASCAR could be having risk from its two direct competitors that is Solution 1 and Moto GP.
The provider power suggests the variety of providers are offered in market and what is the expense associated with provider if company shifts from one provider to another. In this industry there is supply monopoly because chauffeurs with required skills and resources are restricted.
This force is concerning to clients that is it easy for customers to move to other products. If there is more changing expense is associated then customers are less likely to change. In the case of NASCAR customers are its audiences. Audiences can change to other competitors quickly due to the fact that viewers will having low switching cost.
Risk of Substitution
Substitutes are referred as options. The replacements in this case can be other entertainment means like viewers can shift to other sports. So there are wide variety of substitutes are available in this situation which recommends that threat of alternative is high.
Threat of New Entry
In the case of NASCAR hazard of new entry is low. They require to build vehicles and racing tracks and likewise needs to pay large amount to drivers for switching.
It can not be concluded from case research study that there would be modification in resource allocations. NASCAR had actually got benefit from lower tax policies which leads to increasing in earnings. So they made heavy financial investments in the research study and development. As NASCAR is working in different markets so it requires to deal with different regulations. It is likewise kept in mind that E Commerce In Latin America Case Study Analysis has actually faced increased scrutiny relating to regulative. Every federal government has different top priority so NASCAR has to be prepared for it as top priority can be moved to other sector.
Financial aspects consists of tax rate, currency exchange rate, economic performance of that specific company, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can take advantage of capabilities of staff members to produce new chances and improve existing chances.
Each has various social values and norms. It helps in understanding concerning society and choice of customers.
In this case of NASCAR it can be kept in mind that companies are greatly investing for research study and development. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Legal plays an essential function in every nation due to the fact that every nation has different legal terms. E Commerce In Latin America Case Study Solution needs to be ensure that they protect their legal rights in every county so any business does not harm to its legal rights.
Ecological elements are also essential for every business. NASCAR needs to make sure that its cars and trucks are not creating contamination more than appropriate level.
7 P's of Marketing
The products of E Commerce In Latin America Case Study Analysis in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rates method of NASCAR for its race events tickets is based upon the location and significance of the racing occasions. Together with race occasions tickets, NASCAR likewise charge numerous service fees to its stakeholders and makes income. It charged sanctioning costs of $1-2 million per race on average in 2005.
Promotional technique of E Commerce In Latin America Case Study Help is extremely based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. The business is not completely relied upon its fan base for its promotion and promote through local radio stations too. The business has also embraced the merchandising media of promo, in which the business offers merchandises with its logo.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to comprehend across the country appeal.
Nestle people strategy is consisted of supplying much better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important aspect of E Commerce In Latin America Case Study Solution A marketing method as its events are the source of entertainment for crowd. Its individuals strategy consists of efforts to supply better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under people technique of NASCAR.
Numerous company procedures are required to conduct racing occasions in an effective way. These processes include; correct schedule of time, arrangement for spectators, offering tickets, plan of space for sponsors, managing logistics and so on. 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 trucks and racing occasions. Along with it, its retailing brands including t-shirts, caps, goodies etc., likewise serve as a physical proof for NASCAR.
Product Life Cycle Evaluation.
The racing occasions by NASCAR was introduced on June 19, 1949. At the very first phase competitors for NASCAR was low, as the rivals drove the cars comparable to the vehicles driven by regular individuals.
After performing its first race effectively the business moved towards building its own tracks. The first E Commerce In Latin America Case Study Analysis based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards relaying its races on tv in 1979. The first event relayed on television 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 initiated a new era of rewarding sponsorships and tv agreements for NASCAR.
The maturity duration for NASCAR started with the efforts of William France Jr., with the business having vast array of revenue sources. The company has about 500 sponsors with relaying 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 participation rate per race decreased by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major causes of decrease include the financial crisis of 2008, which increased the cost of coming to tracks for viewers due to increasing fuel rates, and the shifting of its fan base towards other sports.
The marketplace segmentation of E Commerce In Latin America Case Study Analysis can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of E Commerce In Latin America Case Help is based upon the geographical existence of its tracks in different states and cities in United States, and the television broadcasting of its occasions in numerous countries. The company has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division offers the business regional as well as worldwide fan base.
The group segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the consumer. Its existing fan base is majorly consisted of male married fans with a typical age of 47 years and an income around $30-50 thousands. However presently NASCAR is trying to increase its target audience to the young growing population and kinds also. To increase the market sector of its market NASCAR must modify its marketing strategies to bring in more age groups and lower its prices to go into in the market section with a low typical income.( htt1).
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races when in a week. NASCAR has actually attempted to increase the quality of its racing by introducing phase racing, they also have attempted to lower costs and make the event more convenient by presenting live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the tv or by going in the occasions. Currently, the fans preference is towards enjoying the race at house on tv rather than going, as the customer experience at NASCAR tracks is not beneficial as well as pricey.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market section has great potential for NASCAR as the population was growing at a greater 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.
Kids are likewise one of the potential target market segment for NASCAR, as they are more linked socially than other groups. Car racing video games developed by E Commerce In Latin America Case Study Analysis can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and enhancing its digital features to bring in the kids target market.
Generation Y target market consists of those who spent five times more resources on discretionary costs i.e. purchasing tickets for racing events, than others. This big expense makes the section capacity for NASCAR marketing strategy of increasing its fan base. The marketplace section is also easy to method as 81% of the Y Generation customer utilizes Facebook the usage and every day is twice of utilizing television and radio. The marketplace section views sports as a get-together, rather than adherence to sport. The market segment considers NASCAR as a company doing not have in creating a multiculturalism atmosphere. E Commerce In Latin America Case Study Help must take numerous actions to enhance the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing assists in taking decisions concerning marketing. These 5 C's requirements to be analysed effectively for taking any marketing decision. These 5 C's represent Environment, Business, Collaborators, Customers and Rivals.
It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, environmental and legal and is stated above.
NASCAR is an automobile racing company with having USP of high quality auto racing with a global structure. Its sector is sports team and events. Its target market is males in the age group of 15-60 years. Business has closed business culture and having non-interventionist method.
Collaborations consists of suppliers, suppliers and alliances of E Commerce In Latin America Case Study Solution. It is collaborated with different racing groups which are participating in racing. It also collaborated with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million annually from Turner Sports. There are number of cons behind this offer. For example 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 customer of E Commerce In Latin America Case Study Analysis are its audiences. They target customers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and develop generational commitment.
The direct competitors of NASCAR are Solution 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be said that motorists and race automobiles are competitors. If they got better chance in terms of prizes and television direct exposure, these chauffeurs can go against NASCAR.
1. Establishing and Maintaining Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population section of USA however regrettably NASCAR had been not able to attract the this targeted section. It should develop a Facebook page including the information regarding the races and the areas of tracks to make the customer useful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Secret Drivers.
E Commerce In Latin America Case Study Help motorists has a low star power as compare to players of other sports. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an important aspect for bring in audiences towards tracks and towards television.
3. Developing New Games and enhancing existing video games for kids.
Kids spent the majority of their time on playing games and using smartphones. However regrettably, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less drawn in towards the sport. In order to bring in these kids, NASCARA needs to enhance its existing racing games by introducing customization in the vehicles i.e. changing colours, selection of speed, presenting group racing in the video game, utilizing better graphics related to the racing tracks and presenting numerous levels in the game. All these adjustments in the current video game would offer much better experience to kids.
Together with it, NASCAR must likewise build new games related to racing like kids racing with kids characters as drivers, animation racing with racing between different cartoon characters with a choice of selecting the favourite animation character for the kids. These techniques would make it possible for the company to draw in among its potential target sections.
4. Introducing multiculturalism at occasions.
NASCAR occasions are comprised of fans with very few cultural variety, due to expense of arrival in events, making it unappealing for the clients perceiving sport events as social occasions i.e. Generation Y clients. As the Generation Y customers are a possible target market for NASCAR, for that reason the business should take certain procedures to attract this possible target market.
5. Improving Client Experience at Tracks.
NASCAR ought to work on facilities and features at tracks due to the fact that on the race day audiences got dissatisfied. Viewers have numerous expectations from E Commerce In Latin America Case Study Solution due to the fact that in exact same industry other companies are supplying much better services than NASCAR. IF NASCAR do not work on this issue then its fans might shifted to its rivals.
Marketing budget plan 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 strategies. It can be seen that strategy 5 of improving customer experience at tracks would require greatest preliminary investment and expense and method 4 of introducing multiculturalism will need most affordable preliminary investment with lowest even more per year expense.
KEEP IN MIND: The values about cost are assumed on reasonable basis due the lack of figures and realities connected to cost in the case research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external elements of E Commerce In Latin America Case Study Solution causing the decline of television viewership rate and attendance rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long term. These techniques would deal with internal aspects like poor customer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, along with with external factors like shifting of fans towards other sports, demographical modifications in America and changing family life styles.