Exchange Rate Exercise Case Study Solution & Analysis
NASCAR (National Association for Stock Automobile Auto Racing) is an organization conducting series of Stock Car racing in United States and acting as a sanctioning body for driving the guidelines for Stock Vehicle Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of revenue for Exchange Rate Exercise Case Study Analysis includes; 10% of the total profits from tv rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed business culture with the non-interventionist method. This non collaborative technique brings tensions in the sport. The building of Vehicle of Tomorrow by Exchange Rate Exercise Case Study Analysis, with an intent of safety for the drivers, brought numerous stress amongst the stakeholders of the sport.
The communication audit, performed in 2010, revealed that despite the fact that the company extremely rely on the interactions between its stakeholders, there was no recognizable company interaction strategy. (
The audit explained numerous lacking of NASCAR in regards to lack of internal integration, lack of fan management technique and absence of social and digital media of marketing. The business has intricate community with independent tracks, motorists and groups. This structure with closed corporate culture bring different challenges in speeding up a modification. Other partners in community consists of the media networks i.e. television and radio, and corporate online marketers.
Exchange Rate Exercise Case Study Help viewers was extremely loyal to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate online marketers.
The business is currently dealing with the issue of declining rates of presence at racing tracks and rates of tv audiences. This can put a considerable influence on its incomes from sponsors, media rights, and from other sources of revenue.
Although the business was quite effective till 2005 with its traditional marketing methods, however not long after 2005 the company begins dealing with different problems including decline of its fan base. Several external along with internal aspects are responsible for the decrease. Internal elements include; inadequate investment in social networks and other digital medias of.
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 family system in America was altering resulting in reduction of impact of married male fan base over their youngsters. Together with it understandings about car was likewise changing with perceiving car a lorry to reach at point B from point A, rather than as a fun project. Other obstacles for Exchange Rate Exercise Case Study Analysis includes the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, and so on. These all difficulties were tending the company to modify its marketing techniques.
NASCAR core competencies includes it has rights of determining rules as approving body. Policies and guidelines concerning expert stock automobile racing are dictated by NASCAR like if any team with needed skills and resources can get in into races by following rules and guidelines determined by NASCAR. All the events of NASCAR are sponsored by corporates since of greatest brand commitment of fans towards brands marketed by Exchange Rate Exercise Case Study Help.
Weaknesses in SWOT Analysis are thought about as external elements. Weak points includes the elements that stops company to perform at needed level of performance. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist approach. They normally utilized to form guidelines and other needed processes without intervention of others which results in poor collaboration. NASCAR establishes Cars and truck of Tomorrow without partnership so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is likewise difficult. It was also found that NASCAR had no efficient strategy for organisation interaction. They do not know how to manage issue if it happened off track. Inadequate company interaction leads to that they do not have clear direction for their long term objectives. They don't understand that where they want to see this sport in future.
Opportunities in SWOT analysis are external factors which can be favourable to business or the external factors on which company is having competitive benefit. NASCAR typically used to depend on traditional media sources like regional paper for publicity of its sports. Generally these standard media sources try to cover their home team and particular type of events. NASCAR likewise came to know from these conventional media outlets that sport was tough to cover. Media landscape also altered from traditional to digital landscape. Papers went out of business. NASCAR can work on its abilities to get maximum possible benefits from this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were also 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. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot throughout 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 required to pay licensing charges to Turner Sport. So NASCAR can work on terms and attempt to negotiate with Turner Sports to get maximum advantages of it. Star power plays very important role in generating revenues from every sport. It was noted that NASCAR is lagging in this location i.e. star power. When sports fans were asked concerning popular celebs and stars then NASCAR motorist was not found even in top twenty actions. NASCAR can put efforts in this area too for profits generation. They need to guide their chauffeurs that how they can become sport stars. 4 tactical focuses which are created by research study group can also be functioned as chance for NESCAR. These four strategic focuses compares and analysis Exchange Rate Exercise Case Study Help strategies.
Economic down turn was experienced in late 2000 which can be risk for NASCAR since if there is economic down turn then individuals would be having less return on financial investment. Economic down turn likewise results in increase fuel costs which also affected NASCAR. Now if NASCAR make substantial financial investments in brand-new sectors which are based on new customers then it may face unfavorable remarks from its core fan base.
Porter's 5 Forces Analysis
It is important to understand industry in which business is working due to the fact that NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are used to identify profitability, intensity and attractiveness of NASCAR organisation.
These chauffeurs can go versus NASCAR if they got much better opportunity in terms of rewards and television direct exposure. If viewers delight in other race vehicles and drivers more than NASCAR then audiences can shift to those other fascinating automobiles and drivers. NASCAR could be having hazard from its two direct competitors that is Formula 1 and Moto GP.
The provider power indicates the number of suppliers are available in market and what is the expense associated with supplier if company shifts from one provider to another. Due to the fact that drivers with needed abilities and resources are limited, in this market there is supply monopoly.
This force is concerning to clients that is it easy for clients to move to other items. Then clients are less likely to switch, if there is more switching expense is associated. In the case of NASCAR consumers are its audiences. Audiences can switch to other competitors easily due to the fact that audiences will having low changing expense.
Hazard of Replacement
Replacements are referred as options. The replacements in this case can be other entertainment implies like audiences can move to other sports. There are large range of substitutes are readily available in this scenario which suggests that threat of alternative is high.
Risk of New Entry
In the case of NASCAR hazard of new entry is low. They need to develop cars and racing tracks and also needs to pay large quantity to drivers for changing.
It can not be concluded from case study that there would be change in resource allowances. NASCAR had actually got take advantage of lower taxation policies which results in increasing in profits. So they made heavy investments in the research and advancement. As NASCAR is operating in numerous markets so it requires to deal with various guidelines. It is likewise noted that Exchange Rate Exercise Case Study Help has actually faced increased analysis regarding regulative. Every government has different top priority so NASCAR has to be prepared for it as priority can be moved to other sector.
Economic factors consists of taxation rate, currency exchange rate, economic performance of that particular business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be impacted if there is government intervention in the marketing and sales sector. NASCAR can leverage capabilities of employees to produce new chances and enhance existing opportunities.
Each has various social values and norms. It assists in comprehending relating to society and choice of clients.
In this case of NASCAR it can be noted that business are greatly spending for research and advancement. NASCAR should also work on its media rights policy with Turner Broadcasting System.
Legal plays an important function in every country due to the fact that every country has various legal terms. Exchange Rate Exercise Case Study Analysis needs to be make certain that they secure their legal rights in every county so any business does not damage to its legal rights.
Ecological factors are also crucial for every business. NASCAR needs to make sure that its cars are not creating pollution more than appropriate level.
7 P's of Marketing
The products of Exchange Rate Exercise Case Study Solution in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Pricing technique of NASCAR for its race events tickets is based upon the venue and significance of the racing occasions. Together with race events tickets, NASCAR likewise charge numerous service charge to its stakeholders and earns earnings. It charged approving fees of $1-2 million per race on average in 2005.
Marketing strategy 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 business is not completely relied upon its fan base for its promotion and promote through regional radio stations too. The business has actually also embraced the retailing media of promotion, in which the business sells products with its logo.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in most of the cities in United States to grasp across the country appeal.
Nestle people method is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. People are an essential aspect of Exchange Rate Exercise Case Study Solution A marketing strategy as its occasions are the source of home entertainment for crowd. Its people method includes efforts to provide better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under people method of NASCAR.
Numerous company procedures are needed to conduct racing occasions in an efficient way. These procedures consist of; appropriate schedule of time, plan for viewers, offering tickets, arrangement of area for sponsors, handling logistics and so on. These all processes contribute I constructing NASCAR image, improving viewers experience and increasing fan base.
Crucial physical evidences for the NASCAR includes the existence of its racing tracks, stock cars and racing occasions. Together with it, its merchandising brands including tee shirts, caps, goodies and so on, also serve as a physical evidence for NASCAR.
Product Life Cycle Evaluation.
The racing occasions by Exchange Rate Exercise Case Study Analysis was presented 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 very first phase competition for NASCAR was low, as the rivals drove the cars and trucks comparable to the vehicles driven by common people.
After performing its first race successfully the company moved towards building its own tracks. The first Exchange Rate Exercise Case Study Help based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by facility of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards transmitting its races on tv in 1979. The first occasion transmitted on television was flag-to-flag protection of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he changed NASCAR from a local Sport popular company into one with worldwide fan base. He started a new era of rewarding sponsorships and tv contracts for NASCAR.
The maturity duration for NASCAR started with the efforts of William France Jr., with the business having wide variety of income sources. The company has about 500 sponsors with broadcasting its events in about 150 countries. The company has a great deal of tracks in most of the cities of United States.
The significant causes of decrease consist of the financial crisis of 2008, which increased the cost of showing up at tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.
The market division of Exchange Rate Exercise Case Study Help can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Exchange Rate Exercise Case Solution is based upon the geographical existence of its tracks in various states and cities in United States, and the television broadcasting of its occasions in different countries. The business has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division supplies the business local as well as international fan base.
The group segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the consumer. Its present fan base is majorly comprised of male married fans with a typical age of 47 years and an income around $30-50 thousands. Presently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the demographic sector of its market NASCAR should modify its marketing techniques to bring in more age groups and lower its prices to go into in the market section with a low average income.( htt1).
NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to acquire tickets and see the races when in a week. NASCAR has actually tried to increase the quality of its racing by introducing stage racing, they also have actually tried to lower prices and make the occasion more convenient by presenting live racing.
Behavioural segmentation of Exchange Rate Exercise Case Study Help is based upon the behaviour of fans in terms of viewing the race live on the tv or by entering the events. Presently, the fans preference is towards watching the race in the house on television instead of going, as the customer experience at NASCAR tracks is not favourable along with costly. This choice makes the rates for presence lower than the rates for tv viewers. NASCAR has to change the behaviour of its fan base by introducing qualitative services at its tracks.
One of the prospective target audience of Exchange Rate Exercise Case Study Analysis was Hispanics; the young and growing population of United States. The market section has terrific possible 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 sector has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the segment shows affinity with automobile culture, however require a more focused marketing towards welcoming the sector towards racing.
Kids are also one of the prospective target market section for NASCAR, as they are more connected socially than other groups. Automobile racing games developed by Exchange Rate Exercise Case Study Help can be a possible source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and enhancing its digital functions to draw in the kids target market.
Generation Y target market includes those who spent 5 times more resources on discretionary costs i.e. buying tickets for racing events, than others. This big expenditure makes the sector capacity for NASCAR marketing method of increasing its fan base. The market section is also simple to approach as 81% of the Y Generation consumer uses Facebook the usage and every day is twice of using television and radio. The market sector views sports as a get-together, rather than adherence to sport. The marketplace segment considers NASCAR as a company lacking in creating a multiculturalism atmosphere. Exchange Rate Exercise Case Study Analysis ought to take numerous actions to improve the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing assists in taking decisions regarding marketing.
It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE means political, financial, social, technical, legal and environmental and is stated above.
Exchange Rate Exercise Case Study Solution is a vehicle racing company with having USP of high quality vehicle racing with an international structure. Its sector is sports group and events.
Collaborations consists of suppliers, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million annually 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 Analysis are its viewers. They target clients with having age of 15-60 years. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and create generational commitment.
The direct competitors of NASCAR are Solution 1 and Moto GP. Teams normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. Therefore it can be stated that drivers and race vehicles are competitors. If they got better opportunity in terms of rewards and television exposure, these drivers can go versus NASCAR.
1. Keeping and developing Facebook Page.
One of the possible target markets sectors for NASCAR is Hispanics which is the growing population sector of USA but sadly NASCAR had actually been not able to bring in the this targeted sector. It needs to develop a Facebook page including the details relating to the races and the locations of tracks to make the consumer informative about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Exhibit). The significant reason behind it is that, the racers mostly play in teams and are unable to construct a key account and preserve a close contact with fans. The bad contacts with fans lead to less tourist attraction of viewers towards the racers and a low star power. Star power is a crucial aspect for attracting audiences towards tracks and towards television. The star power for the motorists at NASCARA might be improved by developing and updating accounts of key drivers by NASCARA itself. This would get rid of the requirement of requiring drivers to maintain their accounts and would lead to increasing fans attention towards NASCARA drivers.
3. Developing New Games and enhancing current games for kids.
Kids spent most of their time on playing games and using smartphones. However unfortunately, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less drawn in towards the sport. In order to draw in these kids, NASCARA must enhance its current racing video games by presenting customization in the vehicles i.e. altering colours, choice of speed, presenting group racing in the video game, utilizing better graphics related to the racing tracks and presenting different levels in the video game. All these adjustments in the current video game would provide much better experience to kids.
In addition to it, NASCAR ought to likewise build new games connected to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing between various cartoon characters with an option of selecting the preferred cartoon character for the kids. These methods would enable the company to bring in one of its possible target sections.
4. Presenting multiculturalism at occasions.
NASCAR occasions are comprised of fans with very few cultural variety, due to cost of arrival in occasions, making it unappealing for the consumers viewing sport events as social occasions i.e. Generation Y clients. As the Generation Y clients are a potential target market for NASCAR, therefore the business ought to take particular steps to attract this possible target market.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on facilities and facilities at tracks since on the race day audiences got dissatisfied. Viewers have many expectations from Exchange Rate Exercise Case Study Help since in same industry other companies are providing much better services than NASCAR. IF NASCAR do not work on this problem then its fans may moved to its competitors.
Marketing budget made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the cost associated information for the marketing strategies. It can be seen that technique 5 of improving client experience at tracks would need highest initial financial investment and cost and technique 4 of presenting multiculturalism will need most affordable initial financial investment with least expensive further per year cost.
NOTE: The values about expense are assumed on reasonable basis due the lack of truths and figures connected to cost in the event research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal factors of Exchange Rate Exercise Case Study Solution triggering the decrease of television viewership rate and participation rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long term. These techniques would handle internal factors like bad customer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, in addition to with external factors like moving of fans towards other sports, demographical modifications in America and altering domesticity styles.