E Commerce In Latin America Case Study Solution and Analysis
Intro
NASCAR (National Association for Stock Cars And Truck Auto Racing) is a company performing series of Stock Cars and truck racing in United States and acting as an approving body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Car Racing by NASCAR is the 2nd largest spectator sport, with highest number of sponsors. 1) The other sources of earnings for E Commerce In Latin America Case Study Solution includes; 10% of the overall income from television rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed corporate culture with the non-interventionist technique. This non collective technique brings tensions in the sport. The building of Cars and truck of Tomorrow by E Commerce In Latin America Case Study Solution, with an intent of safety for the motorists, brought different stress amongst the stakeholders of the sport.
The interaction audit, conducted in 2010, revealed that despite the fact that the business highly count on the communications in between its stakeholders, there was no identifiable service communication strategy. The market's target clients, instructions and goals were all unknown.
The audit pointed out various lacking of NASCAR in terms of lack of internal integration, lack of fan management strategy and absence of social and digital media of marketing.
E Commerce In Latin America Case Study Help audiences was extremely loyal to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and business marketers.
Problem Statement.
The company is presently facing the issue of decreasing rates of attendance at racing tracks and rates of television audiences. This can put a considerable impact on its revenues from sponsors, media rights, and from other sources of earnings.
Situational Analysis.
The business was rather effective till 2005 with its conventional marketing techniques, however soon after 2005 the business begins dealing with various problems consisting of decline of its fan base. A number of external in addition to internal factors are accountable for the decrease. Internal factors consist of; insufficient investment in social networks 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 children and create generational loyalty. The household system in America was altering resulting in reduction of impact of married male fan base over their children. Together with it perceptions about car was likewise altering with perceiving car a vehicle to reach at point B from point A, rather than as a fun project. Other obstacles for E Commerce In Latin America Case Study Analysis consists of 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 difficulties were tending the business to modify its marketing strategies.
SWOT Analysis.
Strengths.
NASCAR core competencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and guidelines concerning professional stock automobile racing are dictated by NASCAR like if any group with required abilities and resources can enter into races by following guidelines and policies dictated by NASCAR. All the events of NASCAR are sponsored by corporates due to the fact that of biggest brand name loyalty of fans towards brands promoted by E Commerce In Latin America Case Study Solution.
Weaknesses.
Weak points of NASCAR includes its close culture which is non collaborative. E Commerce In Latin America Case Study Analysis establishes Vehicle of Tomorrow without cooperation so result is that drivers did not like that idea. It was likewise discovered that NASCAR had no effective strategy for service communication.
Opportunities.
Opportunities in SWOT analysis are external elements which can be beneficial to business or the external factors on which company is having competitive advantage. NASCAR generally utilized to count on standard media sources like regional newspaper for publicity of its sports. Generally these traditional media sources try to cover their house team and specific type of events. NASCAR also came to know from these conventional media outlets that sport was challenging to cover. Media landscape likewise altered from conventional to digital landscape. Papers went out of business. NASCAR can deal with its abilities to get maximum possible gain from this brand-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 sold to Turner Sports. NASCAR utilized to earn money check of around $15 million annually from Turner Sports. There are variety of cons behind this offer. For example E Commerce In Latin America Case Study Help had to get approval from Turner Sport if it wish to produce 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 papers, magazines and cable channels want to publish videos of races on their respective pages then they are required to pay licensing costs to Turner Sport. So NASCAR can work on terms and try to work out with Turner Sports to get maximum advantages of it. Star power plays very essential role in producing earnings from every sport. It was noted that NASCAR is lagging in this location i.e. star power. When sports fans were asked regarding popular celebrities and stars then NASCAR motorist was not discovered even in leading twenty reactions. NASCAR can put efforts in this area too for revenue generation. They ought to direct their drivers that how they can end up being sport stars. 4 strategic focuses which are produced by research study group can also be functioned as chance for NESCAR. These four strategic focuses compares and analysis E Commerce In Latin America Case Study Help techniques.
Dangers
Economic down turn was experienced in late 2000 which can be hazard for NASCAR due to the fact that if there is financial down turn then individuals would be having less return on investment. Economic down turn also results in increase fuel prices which likewise affected NASCAR. Now if NASCAR make considerable investments in brand-new sectors which are based on new customers then it might deal with unfavorable comments from its core fan base.
Porter's 5 Forces Analysis
It is crucial to comprehend market in which business is working since NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are used to identify profitability, intensity and appearance of NASCAR business.
Competitive Competition
This force shows capability of competitors. Teams generally represents sponsors in NASCAR and the medium of marketing is drivers. Therefore it can be stated that drivers and race vehicles are rivals. If they got much better chance in terms of rewards and television direct exposure, these chauffeurs can go versus E Commerce In Latin America Case Study Help. If audiences delight in other race vehicles and chauffeurs more than NASCAR then viewers can shift to those other interesting cars and drivers. NASCAR might be having threat from its 2 direct competitors that is Solution 1 and Moto GP. They require to develop competitive benefits for chauffeurs so they do not shift to other competitors.
Supplier Power
The provider power indicates the variety of suppliers are offered in market and what is the expense related to supplier if business shifts from one supplier to another. Due to the fact that chauffeurs with needed skills and resources are limited, in this market there is supply monopoly.
Purchaser Power
This force is concerning to clients that is it easy for consumers to move to other products. If there is more switching expense is associated then consumers are less likely to switch. In the case of NASCAR customers are its viewers. Because viewers will having low changing expense, viewers can switch to other rivals easily.
Danger 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 large range of substitutes are offered in this circumstance which recommends that threat of substitute is high.
Risk of New Entry
In the case of NASCAR danger of brand-new entry is low. They need to build vehicles and racing tracks and also needs to pay significant amount to chauffeurs for changing.
PESTEL Analysis
Political
It can not be concluded from case study that there would be change in resource allocations. NASCAR had got gain from lower taxation policies which leads to increasing in profits. So they made heavy financial investments in the research and development. As NASCAR is working in numerous markets so it needs to deal with various policies. It is also kept in mind that E Commerce In Latin America Case Study Help has dealt with increased analysis concerning regulative. Every government has different top priority so NASCAR has to be gotten ready for it as top priority can be moved to other sector.
Affordable
Economic factors includes tax rate, currency exchange rate, financial efficiency of that specific company, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be affected if there is government intervention in the marketing and sales sector. NASCAR can utilize capabilities of workers to develop new opportunities and enhance existing chances.
Social
Every society is different from each other. Each has different social worths and standards. It helps in comprehending regarding society and preference of customers. Social elements includes traditions, culture, attitudes towards particular services and products, demographics, standards, interests etc. It can be concluded that advertising through other methods rather than traditional (i.e. newspaper) can be chosen in this society.
Technical
In this case of NASCAR it can be noted that business are heavily spending for research and advancement. NASCAR needs to also work on its media rights policy with Turner Broadcasting System.
Legal
Because every nation has different legal terms and conditions, Legal plays a crucial role in every nation. E Commerce In Latin America Case Study Analysis requires to be ensure that they safeguard their legal rights in every county so any business does not damage to its legal rights.
Environmental
Environmental factors are likewise important for every organisation. NASCAR requires to make sure that its cars and trucks are not generating contamination more than appropriate level.
7 P's of Marketing
Product
The items of E Commerce In Latin America Case Study Solution in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rate.
Rates strategy of NASCAR for its race events tickets is based upon the venue and significance of the racing occasions. Together with race occasions tickets, NASCAR likewise charge different service charge to its stakeholders and earns income. It charged approving charges of $1-2 million per race on average in 2005.
Promotion.
Promotional method of E Commerce In Latin America Case Study Analysis 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. The business is not entirely relied upon its fan base for its promo and promote through local radio stations too. The business has also adopted the retailing media of promotion, in which the company offers products with its logo design.
Location.
NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle 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 nationwide popularity.
People.
Nestle people technique is comprised of offering better experience to its audiences, its fan base and to all of its stakeholders. People are an important element of E Commerce In Latin America Case Study Analysis A marketing strategy as its occasions are the source of home entertainment for crowd. Its people strategy includes efforts to offer much better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under people strategy of NASCAR.
Procedures.
A number of service processes are needed to perform racing occasions in an effective way. These processes include; appropriate schedule of time, arrangement for viewers, offering tickets, arrangement of space for sponsors, managing logistics etc. These all procedures contribute I developing NASCAR image, enhancing viewers experience and increasing fan base.
Physical Proof.
Most important physical proofs for the NASCAR includes the existence of its racing tracks, stock cars and trucks and racing occasions. Together with it, its merchandising brand names consisting of tee shirts, caps, goodies etc., likewise serve as a physical evidence for NASCAR.
Product Life Process Evaluation.
The racing events by E Commerce In Latin America Case Study Analysis was introduced 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 first stage competitors for NASCAR was low, as the competitors drove the cars similar to the cars driven by ordinary individuals.
Growth.
The first NASCAR based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the business 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 decades, he changed NASCAR from a local Sport popular company into one with worldwide fan base. He initiated a brand-new era of rewarding sponsorships and television contracts for NASCAR.
Maturity.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide range of profits sources. The company has about 500 sponsors with transmitting its occasions in about 150 nations. The business has large number of tracks in the majority of the cities of United States.
Decrease.
The significant causes of decrease consist of the financial crisis of 2008, which increased the expense of getting here at tracks for viewers due to increasing fuel rates, and the shifting of its fan base towards other sports.
Market Segmentation.
The marketplace division of E Commerce In Latin America Case Study Help can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical segmentation of E Commerce In Latin America Case Solution is based upon the geographical presence of its tracks in various states and cities in United States, and the tv broadcasting of its occasions in different 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 vast geographical segmentation offers the company local in addition to international fan base.
Market.
The market segmentation of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its present fan base is majorly consisted of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. However presently NASCAR is attempting to increase its target market to the young growing population and kinds as well. To increase the market section of its market NASCAR ought to modify its marketing techniques to attract more age and lower its rates to go into in the market sector with a low typical earnings.( htt1).
Psychographic.
The mental attributes of most of the fans are rather comparable. NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to buy tickets and see the races when in a week. 71% of them prefer to acquire products with a NASCAR brand. They are quite extrovert and are willing to mingle with other fans while racing. They want quality racing with low cost at practical area. NASCAR has tried to increase the quality of its racing by presenting stage racing, they also have attempted to lower costs and make the event more convenient by presenting live racing.
Behavioural.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of watching the race live on the tv or by going in the occasions. Currently, the fans choice is towards viewing the race at home on television rather than going, as the client experience at NASCAR tracks is not beneficial as well as expensive.
Target Market.
Hispanics.
One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has terrific potential for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids.
Kids are likewise among the potential target audience section for NASCAR, as they are more connected socially than other groups. Developing fan base among kids can provide a prospective increase in the number of fans for racing due to their connection. Kids invest most of their times in utilizing smartphones and playing video games. Car racing games developed by E Commerce In Latin America Case Study Solution can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of getting the attention. NASCAR requires more attention towards tailoring and enhancing its digital features to bring in the kids target market.
Generation Y.
Generation Y target audience includes those who invested 5 times more resources on discretionary expenses i.e. buying tickets for racing occasions, than others. This big expense makes the sector capacity for NASCAR marketing technique of increasing its fan base. The market sector is likewise simple to method as 81% of the Y Generation customer uses Facebook the usage and every day is twice of using television and radio. The market sector views sports as an affair, rather than adherence to sport. The market sector considers NASCAR as an organization doing not have in developing a multiculturalism atmosphere. E Commerce In Latin America Case Study Solution should take various actions to improve the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions relating to marketing.
Climate/Context.
It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE means political, financial, social, technical, environmental and legal and is mentioned above.
Company.
NASCAR is an auto racing company with having USP of high quality automobile racing with an international structure. Its sector is sports group and occasions. Its target audience is males in the age group of 15-60 years. Business has actually closed corporate culture and having non-interventionist method.
Partnerships.
Collaborations includes suppliers, suppliers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million every year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application.
Clients.
The customer of E Commerce In Latin America 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 produce generational loyalty.
Rivals.
Groups generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. These motorists can go against NASCAR if they got much better chance in terms of prizes and television direct exposure.
Marketing Methods.
1. Keeping and developing Facebook Page.
Among the possible target markets sections for NASCAR is Hispanics which is the growing population segment of USA but unfortunately NASCAR had been unable to bring in the this targeted section. In order to draw in the young growing generation the NASCAR ought to market by using social networks like Facebook. It needs to establish a Facebook page containing the information concerning the races and the locations of tracks to make the consumer useful about the core operations of E Commerce In Latin America Case Study Solution. It must likewise update its Facebook page on daily basis to provide information about its upcoming events. This would make the target audience sector more informative about the business and would lead to bring in big fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Exhibition). The significant factor behind it is that, the racers mainly play in groups and are unable to build an essential account and maintain a close contact with fans. The poor contacts with fans lead to less destination of audiences towards the racers and a low star power. Star power is an essential element for attracting viewers towards tracks and towards tv. The star power for the drivers at NASCARA could be improved by producing and updating accounts of key chauffeurs by NASCARA itself. This would remove the requirement of forcing motorists to maintain their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Establishing New Games and improving existing games for kids.
Kids spent most of their time on playing video games and utilizing smart devices. Sadly, kids playing NASCARA have a worst experience of playing its games. As a result, they are less brought in towards the sport. In order to attract these kids, NASCARA needs to enhance its present racing games by introducing personalization in the cars and trucks i.e. changing colours, choice of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and introducing various levels in the video game. All these adjustments in the existing game would supply much better experience to kids.
In addition to it, NASCAR needs to likewise develop brand-new games related to racing like kids racing with kids characters as drivers, cartoon racing with racing in between various animation characters with an option of selecting the preferred cartoon character for the kids. These techniques would enable the company to bring in among its potential target sectors.
4. Presenting multiculturalism at events.
NASCAR events are comprised of fans with extremely few cultural variety, due to expense of arrival in events, making it unsightly for the customers viewing sport occasions as social celebrations i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, therefore the business needs to take specific measures to attract this potential target market.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on facilities and features 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 Solution due to the fact that in same industry other companies are offering much better services than NASCAR. IF NASCAR don't work on this concern then its fans may shifted to its competitors.
Marketing Spending plan
Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, shows the cost associated data for the marketing methods. It can be seen that strategy 5 of enhancing consumer experience at tracks would need greatest initial financial investment and cost and technique 4 of introducing multiculturalism will require most affordable preliminary investment with most affordable further per year expense.
NOTE: The values about cost are assumed on reasonable basis due the lack of figures and truths associated with cost in the case research study. Inflation rate of United States is assumed to be 10%.
Recommendations.
On the basis of deep analysis of the external and internal aspects of E Commerce In Latin America Case Study Analysis causing the decline of television viewership rate and presence rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long run. These methods would manage internal aspects like poor customer experience at tracks, inadequate social networks marketing, incapable digital medias like games, lack of culturalisms at tracks etc., in addition to with external factors like moving of fans towards other sports, demographical modifications in America and changing domesticity styles.
