Exchange Rate Exercise Case Study Solution and Analysis
Exchange Rate Exercise Case Study Help (National Association for Stock Cars And Truck Vehicle Racing) is an organization carrying out series of Stock Cars and truck racing in United States and acting as an approving body for driving the guidelines for Stock Vehicle Racing. The company was founded in 1947, by "Big Bill" France. NASCAR set up Stock Automobile Racing events in United States with the presence of about 130000 audiences usually in 2005. It likewise relayed its events in about 150 nations. Stock Cars And Truck Racing by NASCAR is the second largest spectator sport, with highest number of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of revenue for Exchange Rate Exercise Case Study Help consists of; 10% of the overall revenue from television rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist technique. This non collaborative technique brings stress in the sport. The structure of Automobile of Tomorrow by Exchange Rate Exercise Case Study Solution, with an objective of safety for the drivers, brought different stress amongst the stakeholders of the sport.
The communication audit, carried out in 2010, exposed that regardless of the truth that the business extremely count on the interactions between its stakeholders, there was no recognizable company communication technique. The industry's target customers, direction and goals were all unidentified.
The audit pointed out various lacking of NASCAR in terms of lack of internal integration, absence of fan management method and lack of social and digital media of marketing.
Exchange Rate Exercise Case Study Analysis audiences was highly faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business online marketers.
The company is presently dealing with the issue of decreasing rates of participation at racing tracks and rates of tv audiences. This can put a significant impact on its earnings from sponsors, media rights, and from other sources of revenue.
Although the company was quite effective till 2005 with its standard marketing strategies, however not long after 2005 the business begins dealing with various problems including decline of its fan base. Several external in addition to internal elements are accountable for the decrease. Internal factors include; inadequate investment in social networks and other digital medias of.
Fan base of NASCAR made up of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment. Other difficulties for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, etc.
In SWOT analysis, strengths specified as company's qualities which are various from its competitors. These are business's core competencies on which business efficiency or business success based upon. Exchange Rate Exercise Case Study Analysis core competencies includes it has rights of determining rules as approving body. Guidelines and rules regarding expert stock vehicle racing are dictated by NASCAR like if any team with needed abilities and resources can participate in 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 viewer sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to transmit in more than 150 nations worldwide with more than $56 million revenues. The main sources of their revenues originate from tv rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and business sponsors. Because of most significant brand commitment of fans towards brands marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weak points of NASCAR includes its close culture which is non collaborative. Exchange Rate Exercise Case Study Solution establishes Cars and truck of Tomorrow without cooperation so result is that drivers did not like that concept. It was likewise discovered that NASCAR had no effective strategy for business interaction.
Opportunities in SWOT analysis are external factors which can be favourable to business or the external elements on which company is having competitive benefit. NASCAR normally utilized to rely on traditional media sources like regional paper for promotion of its sports. Normally these traditional media sources attempt to cover their house team and certain type of occasions. NASCAR also came to know from these traditional media outlets that sport was challenging to cover. Media landscape likewise altered from conventional to digital landscape. Newspapers failed. NASCAR can work on its abilities to get optimal possible gain from 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 likewise sold to Turner Sports. NASCAR used to earn money check of around $15 million each year from Turner Sports. There are variety of cons behind this deal. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of each and every single video which is shoot during race at track. Then they are needed to pay licensing charges to Turner Sport, if media sources like papers, magazines and cable television channels desire to publish videos of races on their respective pages. So NASCAR can work on conditions and terms and attempt to work out with Turner Sports to get optimal advantages of it. Star power plays really crucial role in producing incomes 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 top twenty reactions. NASCAR can put efforts in this location too for revenue generation. They must assist their drivers that how they can become sport stars. Four tactical focuses which are generated by research study group can likewise be acted as opportunity for NESCAR. These four tactical focuses compares and analysis Exchange Rate Exercise Case Study Help strategies.
Economic down turn was experienced in late 2000 which can be threat for NASCAR due to the fact that if there is financial down turn then people would be having less return on financial investment. Economic down turn likewise results in boost fuel prices which likewise affected NASCAR. Now if NASCAR make significant financial investments in brand-new sectors which are based on brand-new customers then it may deal with unfavorable comments from its core fan base.
Porter's 5 Forces Analysis
It is essential to comprehend market in which business is working since NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are used to recognize success, strength and appearance of NASCAR company.
This force suggests ability of rivals. Teams generally represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be said that motorists and race vehicles are competitors. These chauffeurs can break NASCAR if they got better chance in terms of prizes and television direct exposure. Then viewers can shift to those other interesting vehicles and drivers, if viewers delight in other race vehicles and motorists more than NASCAR. NASCAR could be having threat from its 2 direct competitors that is Solution 1 and Moto GP. They require to develop competitive advantages for drivers so they don't shift to other rivals.
If company shifts from one supplier to another, the supplier power indicates the number of providers are offered in market and what is the expense associated with provider. In this industry there is supply monopoly because drivers with needed resources and abilities are restricted.
In the case of NASCAR clients are its audiences. Audiences can change to other competitors quickly due to the fact that audiences will having low switching cost.
Hazard of Alternative
Alternatives are referred as alternatives. The replacements in this case can be other entertainment suggests like audiences can move to other sports. There are broad variety of alternatives are readily available in this situation which recommends that threat of alternative is high.
Threat of New Entry
It is defined as how it is simple for any business to enter in that particular market. When it comes to Exchange Rate Exercise Case Study Help threat of new entry is low. If any company needs to enter in this company than they have to make heavy investments, since. They require to construct cars and racing tracks and also needs to pay hefty total up to drivers for switching.
It can not be concluded from case study that there would be modification in resource allocations. NASCAR had actually got gain from lower taxation policies which leads to increasing in profits. So they made heavy investments in the research study and development. As NASCAR is working in numerous markets so it needs to face various guidelines. It is also noted that Exchange Rate Exercise Case Study Solution has dealt with increased analysis relating to regulatory. Every federal government has various concern so NASCAR needs to be prepared for it as top priority can be shifted to other sector.
Financial aspects consists of 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 competitors can be impacted if there is government intervention in the marketing and sales sector. NASCAR can take advantage of abilities of staff members to develop brand-new chances and improve existing chances.
Each has various social worths and standards. It assists in understanding regarding society and choice of customers.
Innovation has effect on almost every service. It consists of innovation in business strategy. In this case of Exchange Rate Exercise Case Study Help it can be kept in mind that business are greatly spending for research and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Since every nation has various legal terms and conditions, Legal plays an essential function in every country. Exchange Rate Exercise Case Study Analysis needs to be make certain that they protect their legal rights in every county so any company does not harm to its legal rights.
Ecological factors are also important for every service. NASCAR needs to make sure that its automobiles are not producing pollution more than acceptable level.
7 P's of Marketing
The items of Exchange Rate Exercise Case Study Analysis in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving guidelines for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Pricing method of NASCAR for its race events tickets is based upon the place and significance of the racing events. Together with race events tickets, NASCAR also charge numerous service fees to its stakeholders and makes income. It charged approving fees of $1-2 million per race on average in 2005.
Marketing technique of Exchange Rate Exercise Case Study Analysis is extremely based upon its fan base. A strong fan base share its fandom with others and increase the variety of viewers for NASCAR races. The company is not entirely relied upon its fan base for its promotion and promote through local radio stations too. The company has also embraced the merchandising media of promotion, in which the company offers products with its logo.
NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in the majority of the cities in United States to understand nationwide popularity.
Nestle individuals strategy is comprised of supplying better experience to its viewers, its fan base and to all of its stakeholders. People are an important aspect of Exchange Rate Exercise Case Study Solution A marketing technique as its events are the source of entertainment for crowd. Its individuals technique consists of efforts to offer much better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under individuals strategy of NASCAR.
A number of service procedures are required to conduct racing events in an efficient way. These processes consist of; appropriate schedule of time, arrangement for viewers, offering tickets, plan of space for sponsors, managing logistics etc. These all processes contribute I building NASCAR image, improving viewers experience and increasing fan base.
Essential physical proofs for the NASCAR includes the existence of its racing tracks, stock cars and trucks and racing events. Together with it, its retailing brand names including t-shirts, caps, goodies and so on, also function as a physical evidence for NASCAR.
Product Life Cycle Evaluation.
The racing occasions by Exchange Rate Exercise Case Study Solution was introduced on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the first phase competition for NASCAR was low, as the competitors drove the cars and trucks similar to the vehicles driven by ordinary people.
The first NASCAR based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the company moved towards broadcasting its races on television in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with global fan base. He initiated a new period of lucrative 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 occasions in about 150 nations. The company has a great deal of tracks in the majority of the cities of United States.
The significant causes of decrease consist of the financial crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel rates, and the moving of its fan base towards other sports.
The market segmentation of Exchange Rate Exercise Case Study Help can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Exchange Rate Exercise Case Help is based upon the geographical existence of its tracks in numerous states and cities in United States, and the tv broadcasting of its occasions 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 huge geographical segmentation supplies the company local as well as international fan base.
The market division of Exchange Rate Exercise Case Study Analysis is also highlydiverse based upon the gender, income and age of the customer. To increase the market section of its market NASCAR need to revise its marketing techniques to draw in more age groups and lower its costs to enter in the market segment with a low average income.
The mental attributes of the majority of the fans are rather comparable. NASCAR has a fan base with a commitment. As soon as in a week, NASCAR fans view it compulsive to acquire tickets and see the races. 71% of them prefer to buy products with a NASCAR brand. They are quite extrovert and are willing to join other fans while racing. They desire quality racing with low cost at convenient place. Although Exchange Rate Exercise Case Study Help has actually attempted to increase the quality of its racing by introducing stage racing, they also have actually attempted to lower costs and make the occasion more convenient by presenting live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the occasions. Currently, the fans preference is towards seeing the race at house on television rather than going, as the customer experience at NASCAR tracks is not favourable as well as pricey.
One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has excellent potential for NASCAR as the population was growing at a higher rate and it was expected 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 possible target audience sector for NASCAR, as they are more linked socially than other groups. Producing fan base amongst kids can supply a prospective boost in the variety of fans for racing due to their connectivity. Kids spend most of their times in utilizing mobile phones and playing computer game. Car racing video games established by Exchange Rate Exercise Case Study Help can be a possible source of getting attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of acquiring the attention. NASCAR needs more attention towards customizing and enhancing its digital functions to attract the kids target market.
This big expenditure makes the segment potential for NASCAR marketing technique of increasing its fan base. The market segment thinks about NASCAR as an organization lacking in developing a multiculturalism environment. NASCAR must take different steps to improve the experience of Generation Y customers 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 understand climate or context in which NASCAR is working. PESTLE represents political, financial, social, technical, environmental and legal and is stated above.
NASCAR is a vehicle racing business with having USP of high quality automobile racing with an international structure. Its sector is sports team and events. Its target market is males in the age group of 15-60 years. Company has closed business culture and having non-interventionist technique.
Collaborations consists of distributors, providers and alliances of Exchange Rate Exercise Case Study Analysis. It is collaborated with various racing groups which are taking part in racing. It also worked together with Turners Sport for digital rights. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. There are variety 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 likewise had rights of each and every single video which is shoot throughout race at track.
The customer of Exchange Rate Exercise Case Study Analysis are its viewers. They target clients 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 youngsters and produce 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 motorists. It can be said that motorists and race cars are competitors. If they got better opportunity in terms of rewards and television direct exposure, these chauffeurs can go against NASCAR.
1. Establishing and Maintaining Facebook Page.
One of the prospective target markets sections for NASCAR is Hispanics which is the growing population section of U.S.A. however regrettably NASCAR had actually been not able to draw in the this targeted segment. It should establish a Facebook page consisting of the information relating to the races and the areas of tracks to make the consumer useful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Secret Drivers.
Exchange Rate Exercise Case Study Solution drivers has a low star power as compare to gamers of other sports. The bad contacts with fans result in less tourist attraction of audiences towards the racers and a low star power. Star power is an important aspect for attracting audiences towards tracks and towards television.
3. Developing New Games and enhancing present games for kids.
Kids spent most of their time on playing video games and utilizing smartphones. But 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 bring in these kids, NASCARA should enhance its present racing video games by presenting customization in the cars and trucks i.e. altering colours, selection of speed, presenting group racing in the game, utilizing much better graphics associated with the racing tracks and presenting numerous levels in the video game. All these adjustments in the existing game would offer much better experience to kids.
Together with it, NASCAR must likewise build brand-new games related to racing like kids racing with kids characters as motorists, cartoon racing with racing in between various animation characters with an option of selecting the favourite animation character for the kids. These strategies would allow the business to bring in one of its prospective target segments.
4. Presenting multiculturalism at events.
NASCAR events are made up of fans with extremely few cultural diversity, due to expense of arrival in occasions, making it unsightly for the customers perceiving sport events as social occasions i.e. Generation Y clients. As the Generation Y clients are a prospective target market for NASCAR, for that reason the business should take particular measures to attract this prospective target market.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on facilities and features at tracks since on the race day audiences got disappointed. Viewers have lots of expectations from Exchange Rate Exercise Case Study Analysis because in exact same market other business are providing much better services than NASCAR. IF NASCAR do not work on this issue then its fans might moved to its competitors.
Marketing Spending plan
Marketing spending plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the cost associated data for the marketing techniques. It can be seen that technique 5 of enhancing customer experience at tracks would require highest initial investment and expense and method 4 of introducing multiculturalism will require lowest initial financial investment with least expensive even more per year cost.
KEEP IN MIND: The values about expense are presumed on rational basis due the lack of facts and figures associated with cost in the case study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal elements of Exchange Rate Exercise Case Study Help triggering the decline of tv viewership rate and participation rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long term. These strategies would handle internal elements like poor customer experience at tracks, insufficient social networks marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, along with with external aspects like shifting of fans towards other sports, demographical modifications in America and changing family life styles.