Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution and Analysis
Intro
NASCAR (National Association for Stock Car Automobile Racing) is a company carrying out series of Stock Cars and truck racing in United States and acting as an approving body for driving the guidelines for Stock Car Racing. 2) Stock Car Racing by NASCAR is the second largest spectator sport, with highest number of sponsors. 1) The other sources of earnings for Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help includes; 10% of the overall revenue from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed corporate culture with the non-interventionist method. This non collective method brings tensions in the sport. The building of Automobile of Tomorrow by Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution, with an intention of security for the motorists, brought different tensions amongst the stakeholders of the sport.
The interaction audit, carried out in 2010, exposed that regardless of the fact that the organisation extremely rely on the interactions in between its stakeholders, there was no identifiable company communication technique. (
The audit pointed out numerous doing not have of NASCAR in terms of absence of internal integration, lack of fan management method and lack of digital and social media of marketing.
Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution viewers was highly faithful to the sport and the brands related to the NASCAR, making it appealing for sponsors and corporate online marketers.
Problem Declaration.
The business is presently facing the issue of declining rates of attendance at racing tracks and rates of television viewers. This can put a substantial impact on its profits from sponsors, media rights, and from other sources of income.
Situational Analysis.
Although the company was rather successful till 2005 with its conventional marketing strategies, however not long after 2005 the company begins dealing with different issues consisting of decline of its fan base. Numerous external along with internal aspects are accountable for the decrease. Internal aspects include; inadequate financial investment in social media and other digital medias of.
Fan base of NASCAR made up of married males with a typical age of 47, which passes their fandom to their youngsters and create generational commitment. Other difficulties 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, etc.
SWOT Analysis.
Strengths.
NASCAR core proficiencies includes it has rights of dictating guidelines as approving body. Guidelines and regulations relating to expert stock car racing are determined by NASCAR like if any team with required skills and resources can get in into races by following rules and policies determined by NASCAR. All the events of NASCAR are sponsored by corporates since of biggest brand name commitment of fans towards brand names promoted by Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution.
Weak points.
Weaknesses of NASCAR includes its close culture which is non collective. Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution develops Cars and truck of Tomorrow without collaboration so result is that drivers did not like that concept. It was likewise found that NASCAR had no effective strategy for company communication.
Opportunities.
Opportunities in SWOT analysis are external elements which can be beneficial to company or the external factors on which business is having competitive advantage. NASCAR generally used to count on conventional media sources like regional paper for publicity of its sports. Normally these standard media sources try to cover their home group and certain type of occasions. NASCAR also came to know from these conventional media outlets that sport was difficult to cover. Media landscape likewise altered from conventional to digital landscape. Papers failed. NASCAR can deal with its abilities to get optimal possible take advantage of this brand-new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were also offered to Turner Sports. NASCAR utilized to make money check of around $15 million annually from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot during race at track. If media sources like papers, publications and cable channels want to post videos of races on their particular pages then they are required to pay licensing costs to Turner Sport. NASCAR can work on conditions and terms and try to work out with Turner Sports to get maximum benefits of it. Star power plays very crucial role in producing incomes from every sport. It was noted that NASCAR is lagging in this area i.e. star power. For instance when sports fans were asked relating to popular celebs and stars then NASCAR motorist was not found even in top twenty actions. So NASCAR can put efforts in this area too for income generation. They ought to direct their drivers that how they can end up being sport stars. Four strategic focuses which are created by research team can likewise be worked as opportunity for NESCAR. These four tactical focuses compares and analysis Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help strategies.
Hazards
Economic down turn was experienced in late 2000 which can be danger for NASCAR because if there is financial down turn then individuals would be having less return on investment. Economic down turn also results in boost fuel costs which likewise affected NASCAR. Now if NASCAR make significant investments in brand-new sections which are based on brand-new consumers then it might face negative remarks from its core fan base.
Porter's 5 Forces Analysis
It is essential to comprehend market in which business is working due to the fact that NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are utilized to determine profitability, strength and appearance of NASCAR business.
Competitive Rivalry
These motorists can go against NASCAR if they got better opportunity in terms of rewards and tv exposure. If audiences enjoy other race automobiles and chauffeurs more than NASCAR then viewers can move to those other intriguing automobiles and chauffeurs. NASCAR might be having hazard from its 2 direct rivals that is Formula 1 and Moto GP.
Supplier Power
The provider power suggests the variety of providers are readily available in industry and what is the expense connected with supplier if business shifts from one supplier to another. Since drivers with needed skills and resources are restricted, in this industry there is supply monopoly.
Buyer Power
In the case of NASCAR customers are its audiences. Viewers can switch to other rivals easily due to the fact that viewers will having low changing expense.
Danger of Replacement
Substitutes are referred as alternatives. The replacements in this case can be other home entertainment suggests like viewers can move to other sports. So there are wide variety of replacements are readily available in this circumstance which suggests that danger of replacement is high.
Hazard of New Entry
In the case of NASCAR risk of new entry is low. They need to build cars and trucks and racing tracks and likewise needs to pay large amount to drivers for changing.
PESTEL Analysis
Political
It can not be concluded from case research study that there would be change in resource allocations. NASCAR had actually got take advantage of lower taxation policies which results in increasing in earnings. They made heavy investments in the research and advancement. As NASCAR is operating in various markets so it needs to deal with various guidelines. It is likewise noted that Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help has actually dealt with increased examination concerning regulatory. Every government has different priority so NASCAR has to be prepared for it as priority can be moved to other sector.
Cost-effective
Financial elements includes tax rate, currency exchange rate, financial performance 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 abilities of workers to produce new chances and enhance existing opportunities.
Social
Every society is various from each other. Each has different social worths and standards. It helps in understanding concerning society and choice of consumers. Social elements consists of customs, culture, mindsets towards particular services and products, demographics, standards, interests and so on. It can be concluded that advertising through other ways rather than standard (i.e. newspaper) can be preferred in this society.
Technical
In this case of NASCAR it can be kept in mind that companies are heavily investing for research and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Legal
Legal plays an essential function in every nation due to the fact that every nation has different legal terms and conditions. Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis requires to be make certain that they secure their legal rights in every county so any business does not hurt to its legal rights.
Environmental
Environmental factors are also crucial for each organisation. Since generally governments don't permit those service which can damage to environment. These ecological factors consists of laws concerning pollution, environment change, safe waste disposal, policies regarding insurance etc. NASCAR requires to make certain that its automobiles are not generating contamination more than acceptable level.
7 P's of Marketing
Product
The products of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rate.
Rates method of NASCAR for its race events tickets is based upon the venue and significance of the racing occasions. Together with race events tickets, NASCAR also charge various service charge to its stakeholders and makes profits. For instance it charged approving charges of $1-2 million per race usually in 2005.
Promotion.
Marketing technique of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. Nevertheless, the business is not totally trusted its fan base for its promo and promote through local radio stations too. The business has likewise embraced the merchandising media of promo, in which the business offers merchandises with its logo.
Location.
NASCAR have its racing tracks in different cities in United States. The most important 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 the majority of the cities in United States to grasp nationwide appeal.
Individuals.
Nestle individuals method is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. People are a crucial aspect of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help A marketing method as its events are the source of entertainment for crowd. Its individuals technique consists of efforts to provide much better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals method of NASCAR.
Processes.
Numerous company processes are required to conduct racing occasions in an efficient method. These processes consist of; appropriate schedule of time, arrangement for viewers, offering tickets, arrangement of area for sponsors, managing logistics etc. These all processes contribute I developing NASCAR image, enhancing spectators experience and increasing fan base.
Physical Proof.
Most important physical evidences for the NASCAR includes the existence of its racing tracks, stock automobiles and racing occasions. Together with it, its merchandising brands including t-shirts, caps, goodies and so on, also act as a physical evidence for NASCAR.
Item Life Process Assessment.
The racing occasions by NASCAR was introduced on June 19, 1949. At the very first phase competition for NASCAR was low, as the competitors drove the cars and trucks comparable to the cars driven by ordinary individuals.
Development.
The very first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the business moved towards relaying its races on tv in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a local Sport popular organization into one with global fan base. He started a brand-new era of profitable sponsorships and television contracts for NASCAR.
Maturity.
The maturity duration for NASCAR began with the efforts of William France Jr., with the company having wide variety of income sources. The company has about 500 sponsors with broadcasting its occasions in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
Decline.
The major causes of decrease include the financial crisis of 2008, which increased the expense of showing up at tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.
Market Segmentation.
The marketplace segmentation of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical division of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Help is based upon the geographical presence of its tracks in different 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 television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation provides the business local as well as worldwide fan base.
Group.
The market division of NASCAR is also 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. Nevertheless currently NASCAR is attempting to increase its target audience to the young growing population and kinds too. To increase the group section of its market NASCAR ought to modify its marketing methods to bring in more age and lower its rates to enter in the marketplace sector with a low typical earnings.( htt1).
Psychographic.
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races when in a week. NASCAR has attempted to increase the quality of its racing by presenting phase racing, they likewise have tried to lower rates and make the occasion more hassle-free by introducing live racing.
Behavioural.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the television or by going in the events. Presently, the fans preference is towards watching the race at house on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as expensive.
Target Market.
Hispanics.
Among the prospective target market of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help was Hispanics; the young and growing population of United States. The market section has excellent potential for NASCAR as the population was growing at a higher rate and it was expected to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the segment shows affinity with vehicle culture, however need a more concentrated marketing towards inviting the section towards racing.
Kids.
Kids are likewise one of the prospective target audience segment for NASCAR, as they are more linked socially than other groups. Developing fan base amongst kids can supply a possible boost in the number of fans for racing due to their connectivity. Kids spend most of their times in utilizing mobile phones and playing video games. Automobile racing games established by Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis can be a potential 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 needs more attention towards tailoring and improving its digital features to bring in the kids target audience.
This substantial expenditure makes the section capacity for NASCAR marketing strategy of increasing its fan base. The market sector thinks about NASCAR as a company lacking in creating a multiculturalism atmosphere. NASCAR should take numerous steps to enhance the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking choices relating to marketing. These 5 C's requirements to be analysed properly for taking any marketing decision. These 5 C's mean Environment, Business, Collaborators, Competitors and customers.
Climate/Context.
It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, environmental and legal and is mentioned above.
Company.
NASCAR is an auto racing business with having USP of high quality car racing with a global structure. Its sector is sports group and occasions. Its target market is males in the age of 15-60 years. Company has actually closed corporate culture and having non-interventionist technique.
Collaborations.
Collaborations consists of distributors, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.
Consumers.
The consumer of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and develop generational commitment.
Rivals.
Teams normally represents sponsors in NASCAR and the medium of advertising is chauffeurs. These chauffeurs can go versus NASCAR if they got much better opportunity in terms of prizes and tv exposure.
Marketing Strategies.
1. Keeping and establishing Facebook Page.
One of the prospective target markets segments for NASCAR is Hispanics which is the growing population segment of USA but unfortunately NASCAR had actually been not able to attract the this targeted segment. It needs to develop a Facebook page including the details concerning 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.
Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution drivers has a low star power as compare to gamers of other sports. The bad contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an essential element for attracting viewers towards tracks and towards tv.
3. Establishing New Games and improving present games for kids.
In order to attract these kids, NASCARA needs to enhance its present racing video games by introducing modification in the vehicles i.e. altering colours, selection of speed, introducing group racing in the video 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 provide much better experience to kids.
Together with it, NASCAR needs to also develop new games related to racing like kids racing with kids characters as drivers, animation racing with racing in between numerous animation characters with an option of picking the preferred cartoon character for the kids. These strategies would make it possible for the business to bring in one of its possible target sectors.
4. Presenting multiculturalism at events.
NASCAR events are made up of fans with extremely few cultural diversity, due to cost of arrival in occasions, making it unappealing for the clients perceiving sport occasions as social celebrations i.e. Generation Y clients. As the Generation Y clients are a potential target market for NASCAR, therefore the business should take certain steps to attract this possible target market.
5. Improving Customer Experience at Tracks.
NASCAR needs to work on infrastructure and facilities at tracks due to the fact that on the race day audiences got dissatisfied. Viewers have many expectations from Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis due to the fact that in exact same market other companies are offering better services than NASCAR. IF NASCAR do not work on this concern then its fans may moved to its competitors.
Marketing Budget
Marketing budget plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the expense associated information for the marketing methods. (See Appendix B). It can be seen that strategy 5 of enhancing customer experience at tracks would need greatest preliminary investment and cost and method 4 of introducing multiculturalism will require most affordable preliminary financial investment with lowest even more per year expense. The business ought to prioritize the resource allowance on these strategies on the basis of its available resources and the prospective benefits which the method would provide.
NOTE: The values about cost are assumed on rational basis due the absence of truths and figures related to cost in the case study. Inflation rate of United States is presumed to be 10%.
Recommendations.
On the basis of deep analysis of the internal and external aspects of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis triggering the decline of tv viewership rate and participation rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long term. These strategies would cope with internal elements like bad client experience at tracks, inadequate social media marketing, incapable digital medias like video games, absence 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 domesticity designs.
