Exchange Rate Exercise Case Study Solution and Analysis
Exchange Rate Exercise Case Study Solution (National Association for Stock Vehicle Vehicle Racing) is an organization carrying out series of Stock Cars and truck racing in United States and serving as a sanctioning body for driving the rules for Stock Cars and truck Racing. The company was founded in 1947, by "Big Costs" France. NASCAR organize Stock Car Racing events in United States with the existence of about 130000 viewers on average in 2005. It also transmitted its events in about 150 nations. Stock Car Racing by NASCAR is the 2nd biggest viewer sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its earnings. The other sources of revenue for Exchange Rate Exercise Case Study Help includes; 10% of the total earnings from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed corporate culture with the non-interventionist method. However this non collective technique brings tensions in the sport. The structure of Vehicle of Tomorrow by Exchange Rate Exercise Case Study Solution, with an intention of safety for the drivers, brought various stress among the stakeholders of the sport.
The communication audit, carried out in 2010, exposed that in spite of the reality that the service highly rely on the communications in between its stakeholders, there was no recognizable business interaction technique. (
The audit explained various lacking of NASCAR in regards to absence of internal integration, absence of fan management method and absence of digital and social media of marketing. The company has complicated ecosystem with independent tracks, drivers and teams. This structure with closed business culture bring various obstacles in accelerating a change. Other partners in environment consists of the media networks i.e. television and radio, and corporate online marketers.
Exchange Rate Exercise Case Study Help audiences was extremely devoted to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and business marketers.
The company is presently facing the issue of declining rates of participation at racing tracks and rates of tv viewers. This can put a significant effect on its revenues from sponsors, media rights, and from other sources of earnings.
The business was rather successful till 2005 with its standard marketing methods, however quickly after 2005 the company starts facing numerous problems including decrease of its fan base. Numerous external in addition to internal aspects are responsible for the decrease. Internal factors include; insufficient financial investment in social media and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and produce generational loyalty. Other obstacles for NASCAR includes the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on.
In SWOT analysis, strengths specified as business's qualities which are different from its rivals. These are business's core proficiencies on which company efficiency or company success based upon. Exchange Rate Exercise Case Study Help core proficiencies includes it has rights of dictating rules as approving body. Guidelines and policies relating to expert stock car racing are dictated by NASCAR like if any group with required abilities and resources can participate in races by following rules and policies determined by NASCAR. NASCAR has monopoly it this element. Its strengths also includes that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to broadcast in more than 150 countries around the world with more than $56 million incomes. The primary sources of their incomes come from television rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and corporate sponsors. All the events of NASCAR are sponsored by corporates since of biggest brand loyalty of fans toward brands marketed by Exchange Rate Exercise Case Study Help. (See Appendix A).
Weak Points in SWOT Analysis are considered as external aspects. Weaknesses includes the factors that stops business to carry out at needed level of performance. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They normally used to form guidelines and other required processes without intervention of others which leads to poor partnership. NASCAR develops Automobile of Tomorrow without cooperation so result is that chauffeurs did not like that idea. As this is racing sport so covering of sports by media is also difficult. It was also found that NASCAR had no efficient strategy for service communication. They don't know how to manage concern if it happened off track. Inadequate business communication results in that they do not have clear instructions for their long term goals. They do not understand that where they wish to see this sport in future.
Opportunities in SWOT analysis are external elements which can be beneficial to business or the external elements on which company is having competitive advantage. NASCAR generally used to count on standard media sources like local paper for publicity of its sports. Usually these standard media sources attempt to cover their home team and specific sort of events. NASCAR likewise familiarized from these standard media outlets that sport was hard to cover. Media landscape likewise altered from traditional to digital landscape. Newspapers failed. NASCAR can work on its abilities to get optimal possible benefits from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were also offered to Turner Sports. NASCAR used to earn money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every single video which is shoot throughout race at track. Then they are needed to pay licensing fees to Turner Sport, if media sources like papers, magazines and cable television channels want to publish videos of races on their respective pages. NASCAR can work on terms and conditions and attempt to work out with Turner Sports to get optimal benefits of it. Star power plays really essential role in creating incomes from every sport. Nevertheless it was noted that Exchange Rate Exercise Case Study Solution is lagging in this location i.e. star power. When sports fans were asked relating to popular stars and stars then NASCAR driver was not found even in leading twenty reactions. NASCAR can put efforts in this location too for profits generation. They should guide their motorists that how they can end up being sport stars. 4 strategic focuses which are produced by research study group can also be functioned as opportunity for NESCAR. These four tactical focuses compares and analysis Exchange Rate Exercise Case Study Help techniques.
Threats in SWOT analysis are specified as external aspects that can risk to company's success. Because if there is economic down turn then individuals would be having less return on investment, Economic down turn was experienced in late 2000 which can be risk for NASCAR. Earning of individuals would be effected and they would be more mindful in investing their money. Economic down turn also results in increase fuel costs which also affected NASCAR. Due to the fact that fans of NASCAR utilized to attend its occasion from cross countries. NESCAR had a guideline of 65/25/10 for profits distribution. 65 percent profits from media rights would be dispersed to race tracks, 25 percent profits would be distributed to completing group and staying 10 percent would be maintained by NESCAR which is sanctioning body. Contending team wanted to increase their portion of income from 25 percent because of boost in running cost of a race group and also there is decline in the number of full-season sponsorship. Because they are making massive investments to enhance experience of fans, nescar likewise deals with risks from other sponsors. For example that includes upgrading existing opportunities, developing new opportunities, supplying Wi-Fi facility and likewise providing other interactive mediums to interact sports on smartphones. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and create generational commitment. The obstacle is that the family system in America was altering resulting in reduction of influence of married male fan base over their children. Along with it understandings about automobile was likewise altering with viewing car an automobile to reach at point B from point A, instead of as a fun job. Now if Exchange Rate Exercise Case Study Solution make significant investments in new sectors which are based on brand-new customers then it may face unfavorable remarks from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is used to analyse market in which company is working. It assists in determining what are strengths and weakness of any specific industry. It suggest that every market is different from one another. It is essential to understand market in which business is working since NASCAR's bottom line i.e. net revenue is heavily depends upon this. There are 5 forces that are used to recognize profitability, intensity and appearance of Exchange Rate Exercise Case Study Solution organisation.
These motorists can go versus NASCAR if they got much better chance in terms of rewards and tv exposure. If viewers enjoy other race vehicles and drivers more than NASCAR then viewers can move to those other intriguing cars and trucks and drivers. NASCAR might be having danger from its two direct competitors that is Solution 1 and Moto GP.
If company shifts from one supplier to another, the provider power shows the number of providers are offered in industry and what is the expense associated with supplier. In this industry there is supply monopoly since drivers with needed resources and abilities are limited.
In the case of NASCAR customers are its audiences. Viewers can change to other rivals quickly since audiences will having low changing cost.
Danger of Substitution
Replacements are referred as options. The alternatives in this case can be other home entertainment suggests like viewers can move to other sports. So there are vast array of replacements are offered in this situation which recommends that danger of substitute is high.
Hazard of New Entry
It is specified as how it is simple for any business to enter in that particular market. In the case of Exchange Rate Exercise Case Study Help danger of brand-new entry is low. If any business needs to go into in this company than they have to make heavy financial investments, because. They require to construct automobiles and racing tracks and likewise requires to pay substantial total up to chauffeurs for changing.
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 results in increasing in profits. So they made heavy investments in the research and advancement. As NASCAR is operating in different markets so it requires to deal with different policies. It is likewise noted that Exchange Rate Exercise Case Study Solution has actually faced increased analysis regarding regulative. Every government has different priority so NASCAR has to be gotten ready for it as top priority can be shifted to other sector.
Economic factors includes tax rate, currency exchange rate, economic efficiency of that particular company, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can utilize abilities of employees to produce new chances and enhance existing opportunities.
Each has different social values and standards. It assists in comprehending relating to society and preference of consumers.
In this case of NASCAR it can be noted that business are greatly spending for research study and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Legal plays a crucial function in every nation because every country has different legal terms. Exchange Rate Exercise Case Study Help needs to be make certain that they protect their legal rights in every county so any business does not harm to its legal rights.
Environmental factors are also essential for every organisation. NASCAR needs to make sure that its cars are not creating contamination more than acceptable level.
7 P's of Marketing
The items of Exchange Rate Exercise Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices strategy of NASCAR for its race events tickets is based upon the venue and importance of the racing occasions. In addition to race events tickets, NASCAR likewise charge numerous service charge to its stakeholders and earns earnings. It charged sanctioning costs of $1-2 million per race on average in 2005.
Advertising strategy of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to comprehend across the country appeal.
Nestle people technique is comprised of providing better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important element of Exchange Rate Exercise Case Study Help A marketing method as its occasions are the source of home entertainment for crowd. Its people technique includes efforts to provide better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under individuals technique of NASCAR.
Several service processes are required to perform racing events in an efficient way. These processes include; correct schedule of time, plan for viewers, selling tickets, arrangement of area for sponsors, managing logistics and so on. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Most important physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing occasions. Along with it, its merchandising brand names consisting of t-shirts, caps, goodies etc., likewise function as a physical proof for NASCAR.
Item Life Cycle Evaluation.
The racing occasions by Exchange Rate Exercise Case Study Analysis was presented on June 19, 1949. The very 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 competition for NASCAR was low, as the competitors drove the cars and trucks similar to the vehicles driven by common individuals.
After conducting its very first race successfully the company moved towards developing its own tracks. The first Exchange Rate Exercise Case Study Solution based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards broadcasting its races on television in 1979. The first event broadcasted on tv was flag-to-flag protection of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he changed NASCAR from a regional Sport popular organization into one with global fan base. He started a new age of rewarding sponsorships and television agreements for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide range of revenue sources. The business has about 500 sponsors with broadcasting its events in about 150 countries. The business has a great deal of tracks in most of the cities of United States.
The decline in the business's offerings began after 2005 with typical presence rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The significant causes of decline include the financial crisis of 2008, which increased the cost of arriving at tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.
The market segmentation of Exchange Rate Exercise Case Study Analysis can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Exchange Rate Exercise Case Help is based upon the geographical presence of its tracks in numerous states and cities in United States, and the tv broadcasting of its events in different nations. The business has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation offers the business regional as well as worldwide fan base.
The demographic division of NASCAR is also highlydiverse based upon the gender, income and age of the consumer. Its current fan base is majorly comprised of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the market sector of its market NASCAR must modify its marketing methods to bring in more age and lower its prices to enter in the market sector with a low average earnings.( htt1).
The mental attributes of the majority of the fans are rather similar. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to acquire tickets and see the races once in a week. 71% of them choose to acquire items with a NASCAR brand. They are rather extrovert and are willing to mingle with other fans while racing. They want quality racing with low cost at practical location. Although Exchange Rate Exercise Case Study Analysis has tried to increase the quality of its racing by presenting stage racing, they likewise have attempted to lower rates and make the event more convenient by presenting live racing.
Behavioural division of Exchange Rate Exercise Case Study Help is based upon the behaviour of fans in terms of watching the race survive on the television or by going in the occasions. Currently, the fans preference is towards watching the race in your home on television rather than going, as the client experience at NASCAR tracks is not favourable in addition to pricey. This choice makes the rates for participation lower than the rates for tv audiences. NASCAR needs to change the behaviour of its fan base by introducing qualitative services at its tracks.
One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market section has fantastic potential for NASCAR as the population was growing at a higher rate and it was anticipated to end up being thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are also one of the prospective target market segment for NASCAR, as they are more linked socially than other groups. Car racing games established by Exchange Rate Exercise Case Study Analysis can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and enhancing its digital features to attract the kids target market.
Generation Y target market consists of those who invested five times more resources on discretionary expenses i.e. purchasing tickets for racing occasions, than others. This big expense makes the sector potential for NASCAR marketing strategy of increasing its fan base. The market segment is also easy to method as 81% of the Y Generation consumer utilizes Facebook the usage and every day is two times of utilizing television and radio. The marketplace segment views sports as a get-together, instead of adherence to sport. The market sector thinks about NASCAR as an organization lacking in creating a multiculturalism environment. Exchange Rate Exercise Case Study Help should take numerous actions to enhance the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions regarding marketing. These 5 C's requirements to be evaluated properly for taking any marketing choice. These 5 C's represent Environment, Company, Collaborators, Rivals and customers.
It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, environmental and legal and is specified above.
Exchange Rate Exercise Case Study Help is an auto racing company with having USP of high quality auto racing with a global structure. Its sector is sports group and events.
Collaborations includes suppliers, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application.
The client of Exchange Rate Exercise Case Study Help are its audiences. 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 create generational commitment.
The direct rivals of NASCAR are Solution 1 and Moto GP. Groups generally represents sponsors in NASCAR and the medium of marketing is motorists. It can be said that drivers and race cars are competitors. If they got better chance in terms of rewards and tv exposure, these motorists can go against NASCAR.
1. Establishing and Preserving Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population sector of USA however regrettably NASCAR had actually been unable to bring in the this targeted sector. It needs to establish a Facebook page consisting of the details concerning the races and the places of tracks to make the consumer useful about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Secret Drivers.
NASCAR drivers has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Display). The significant reason behind it is that, the racers mainly play in teams and are not able to build a key account and preserve a close contact with fans. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is an important factor for bring in audiences towards tracks and towards tv. The star power for the drivers at NASCARA could be improved by creating and updating accounts of key chauffeurs by NASCARA itself. This would remove the requirement of requiring motorists to preserve their accounts and would lead to increasing fans attention towards NASCARA chauffeurs.
3. Developing New Games and enhancing current video games for kids.
Kids invested most of their time on playing video games and utilizing mobile phones. Regrettably, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less attracted towards the sport. In order to draw in these kids, NASCARA must enhance its existing racing video games by presenting personalization in the cars and trucks i.e. changing colours, choice of speed, introducing group racing in the game, using much better graphics associated with the racing tracks and presenting various levels in the video game. All these modifications in the existing game would provide better experience to kids.
Together with it, NASCAR needs to likewise construct new video games related to racing like kids racing with kids characters as motorists, animation racing with racing between numerous cartoon characters with a choice of choosing the favourite cartoon character for the kids. These techniques would make it possible for the business to bring in one of its potential target sections.
4. Introducing multiculturalism at occasions.
NASCAR events are comprised of fans with very couple of cultural variety, due to cost of arrival in events, making it unappealing for the clients perceiving sport occasions as social occasions i.e. Generation Y customers. As the Generation Y consumers are a potential target market for NASCAR, for that reason the company ought to take certain measures to attract this prospective target market.
5. Improving Client Experience at Tracks.
Exchange Rate Exercise Case Study Help should deal with infrastructure and facilities at tracks due to the fact that on the race day audiences got disappointed. Audiences have lots of expectations from NASCAR since in exact same industry other business are offering much better services than NASCAR. IF NASCAR do not deal with this problem then its fans might shifted to its competitors. According to fans there were not adequate centers were offered as compare to other sports providers. NASCAR needs to make sure that it offer sufficient facilities that consists of cleaned bathrooms, comfortable seating arrangement. They must also supply WIFI services and accessibility of charge card throughout that track. It needs to be also ensure that there suffice jumbo turns put at all required places. There should be likewise food stalls that offer quality food to audiences. In this method viewers will be having pleasant experience at the day of occasion. (See Appendix B).
Marketing budget plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the expense associated information for the marketing strategies. It can be seen that method 5 of enhancing consumer experience at tracks would require highest initial financial investment and cost and method 4 of introducing multiculturalism will require least expensive initial financial investment with lowest even more per year expense.
KEEP IN MIND: The worths about expense are assumed on reasonable basis due the lack of realities and figures connected to cost in the event study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external factors of Exchange Rate Exercise Case Study Help causing the decrease of tv viewership rate and participation rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long run. These strategies would cope with internal factors like bad consumer experience at tracks, insufficient social media marketing, incapable digital medias like games, lack of culturalisms at tracks and so on, as well as with external aspects like shifting of fans towards other sports, demographical modifications in America and altering family life designs.