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Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Online Case Study Help

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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 Vehicle Car Racing) is an organization performing series of Stock Automobile racing in United States and acting as an approving body for driving the rules for Stock Automobile Racing. 2) Stock Cars And Truck Racing by NASCAR is the 2nd largest spectator sport, with highest number of sponsors. 1) The other sources of income for Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis includes; 10% of the total profits from television rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed corporate culture with the non-interventionist technique. The building of Cars and truck of Tomorrow by NASCAR, with an intent of safety for the chauffeurs, brought different stress amongst the stakeholders of the sport.
Executive Summary
The communication audit, carried out in 2010, revealed that regardless of the reality that business highly count on the interactions between its stakeholders, there was no recognizable service communication technique. The market's target customers, direction and objectives were all unknown.

The audit mentioned numerous doing not have of NASCAR in regards to absence of internal combination, lack of fan management technique and absence of digital and social media of marketing. The business has intricate community with independent tracks, groups and drivers. This structure with closed business culture bring numerous obstacles in speeding up a modification. Other partners in community includes the media networks i.e. television and radio, and corporate online marketers.

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 extremely loyal to the sport and the brands associated with the NASCAR, making it appealing for sponsors and business online marketers.

Issue Declaration.

The business is presently facing the issue of decreasing rates of presence at racing tracks and rates of television viewers. This can put a significant impact on its incomes from sponsors, media rights, and from other sources of profits.

Situational Analysis.

Although the company was quite effective till 2005 with its standard marketing techniques, however soon after 2005 the business starts dealing with numerous issues including decline of its fan base. A number of external along with internal factors are responsible for the decline. Internal aspects include; inadequate investment in social networks and other digital medias of.

Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and develop generational commitment. The family system in America was altering resulting in reduction of influence of married male fan base over their youngsters. Together with it understandings about automobile was likewise altering with viewing car an automobile to reach at point B from point A, rather than as an enjoyable project. Other difficulties for Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution consists of the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, etc. These all challenges were tending the business to revise its marketing strategies.

SWOT Analysis.

Strengths.


NASCAR core competencies includes it has rights of dictating guidelines as sanctioning body. Policies and rules relating to expert stock car racing are dictated by NASCAR like if any team with needed skills and resources can get in into races by following rules and regulations dictated by NASCAR. All the events of NASCAR are sponsored by corporates due to the fact that of greatest 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 in SWOT Analysis are considered as external elements. Weak points includes the elements that stops business to carry out at required level of effectiveness. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They generally utilized to form rules and other needed processes without intervention of others which results in bad collaboration. For example NASCAR establishes Cars and truck of Tomorrow without partnership so result is that drivers did not like that concept. As this is racing sport so covering of sports by media is likewise tough. It was likewise found that NASCAR had no efficient technique for service interaction. They don't know how to manage issue if it happened off track. Ineffective company interaction results in that they do not have clear direction for their long term objectives. They do not know that where they wish to see this sport in future.
Porter's 5 Forces Analysis
Opportunities.

NASCAR usually utilized to rely on conventional media sources like local newspaper for publicity of its sports. NASCAR likewise came to understand from these traditional media outlets that sport was tough to cover. When sports fans were asked regarding popular celebs and stars then NASCAR motorist was not found even in leading twenty responses.

Threats

Economic down turn was experienced in late 2000 which can be risk for NASCAR because if there is financial down turn then individuals would be having less return on financial investment. Economic down turn also results in increase fuel costs which likewise impacted NASCAR. Now if NASCAR make considerable investments in new sectors which are based on new clients then it might deal with unfavorable comments from its core fan base.

Porter's Five Forces Analysis

It is crucial to comprehend industry in which company is working since NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are utilized to identify success, intensity and attractiveness of NASCAR company.

Competitive Rivalry

This force suggests ability of rivals. Teams usually represents sponsors in NASCAR and the medium of marketing is motorists. Therefore it can be said that drivers and race automobiles are rivals. If they got much better opportunity in terms of rewards and television exposure, these drivers can go against Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis. Then viewers can shift to those other fascinating vehicles and motorists, if audiences enjoy other race vehicles and motorists more than NASCAR. NASCAR could be having danger from its two direct competitors that is Solution 1 and Moto GP. They require to create competitive advantages for chauffeurs so they don't move to other competitors.
Swot Analysis
Supplier Power

The provider power indicates the variety of suppliers are offered in market and what is the cost connected with supplier if company shifts from one supplier to another. Because chauffeurs with needed resources and abilities are restricted, in this market there is supply monopoly.

Purchaser Power

In the case of NASCAR clients are its audiences. Viewers can change to other competitors easily due to the fact that audiences will having low switching cost.

Threat of Replacement

Alternatives are referred as alternatives. The substitutes in this case can be other home entertainment implies like viewers can move to other sports. There are large variety of replacements are available in this situation which recommends that danger of alternative is high.

Threat of New Entry

In the case of NASCAR risk of brand-new entry is low. They require to build vehicles and racing tracks and also needs to pay significant amount to motorists for changing.

PESTEL Analysis

Political


It can not be concluded from case study that there would be modification in resource allowances. NASCAR had actually got benefit from lower taxation policies which leads to increasing in earnings. They made heavy investments in the research and advancement. As NASCAR is operating in various markets so it needs to face different regulations. It is likewise kept in mind that Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution has faced increased scrutiny regarding regulatory. Every federal government has various priority so NASCAR needs to be prepared for it as top priority can be shifted to other sector.

Cost-effective

Financial elements includes taxation rate, exchange rate, economic performance of that specific business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can take advantage of abilities of employees to produce new opportunities and improve existing chances.

Social

Every society is various from each other. Each has different social values and standards. It assists in understanding concerning society and preference of customers. Social elements includes customs, culture, mindsets towards specific product and services, demographics, norms, interests etc. It can be concluded that marketing through other methods instead of standard (i.e. newspaper) can be chosen in this society.

Technical

Technology has influence on practically every organisation. It consists of development in service technique. In this case of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution it can be noted that business are greatly investing for research and advancement. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.

Legal
Vrio Analysis
Legal plays an important function in every nation due to the fact that every country has various legal conditions. Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution requires to be make sure that they protect their legal rights in every county so any company does not damage to its legal rights.

Environmental

Ecological factors are likewise important for every business. NASCAR needs to make sure that its cars are not creating pollution more than appropriate level.

7 P's of Marketing

Item

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 Analysis in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).

Price.

Prices strategy of NASCAR for its race events tickets is based upon the place and significance of the racing occasions. Along with race events tickets, NASCAR likewise charge numerous service charge to its stakeholders and earns income. For example it charged approving costs of $1-2 million per race on average in 2005.

Promo.

Marketing method 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 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 totally relied upon its fan base for its promotion and promote through regional radio stations too. The business has actually likewise adopted 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 crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile 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 popularity.

Individuals.

Nestle people method is consisted of offering better experience to its audiences, its fan base and to all of its stakeholders. Individuals 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 Solution A marketing strategy as its events are the source of entertainment for crowd. Its people strategy includes efforts to provide better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under people method of NASCAR.

Procedures.

A number of organisation processes are needed to perform racing occasions in an efficient way. These procedures consist of; correct schedule of time, arrangement for spectators, offering tickets, plan of space for sponsors, managing logistics and so on. These all processes contribute I building NASCAR image, improving viewers experience and increasing fan base.

Physical Evidence.

Essential physical evidences for the NASCAR consists of the existence of its racing tracks, stock vehicles and racing events. In addition to it, its retailing brand names consisting of t-shirts, caps, goodies and so on, also function as a physical evidence for NASCAR.

Product Life Cycle Evaluation.

The racing occasions by Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first phase competitors for NASCAR was low, as the rivals drove the vehicles similar to the automobiles driven by normal individuals.

Growth.

After conducting its first race effectively the business moved towards constructing its own tracks. The first Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices 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 consisting of Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards relaying its races on television in 1979. The first event broadcasted on tv was flag-to-flag protection of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he changed NASCAR from a local Sport popular organization into one with global fan base. He initiated a brand-new era of financially rewarding sponsorships and tv agreements for NASCAR.

Maturity.

The maturity duration for NASCAR started with the efforts of William France Jr., with the company having wide variety of income sources. The business has about 500 sponsors with transmitting its events in about 150 nations. The company has large number of tracks in the majority of the cities of United States.

Decline.

The significant causes of decline consist of the financial crisis of 2008, which increased the cost of showing up at tracks for viewers due to increasing fuel rates, 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 Analysis can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographic.

The geographical segmentation of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Analysis is based upon the geographical existence of its tracks in various 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 division provides the business local as well as global fan base.

Demographic.

The demographic division of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help is likewise highlydiverse based upon the gender, income and age of the consumer. To increase the group section of its market NASCAR ought to revise its marketing methods to draw in more age groups and lower its rates to enter in the market segment with a low average income.

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 introducing phase racing, they likewise have tried to lower costs and make the event more practical by introducing live racing.

Behavioural.

Behavioural 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 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 enjoying the race at home on television instead of going, as the consumer experience at NASCAR tracks is not beneficial in addition to expensive. This preference makes the rates for participation lower than the rates for tv viewers. NASCAR has to change the behaviour of its fan base by presenting qualitative services at its tracks.

Target Market.

Hispanics.

One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has terrific 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.

Kids are also one of the potential target market segment for NASCAR, as they are more linked socially than other groups. Car racing video games developed by 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 a prospective source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and enhancing its digital functions to bring in the kids target market.

Generation Y.
Generation Y target market consists of those who invested 5 times more resources on discretionary expenditures i.e. purchasing tickets for racing events, than others. This substantial expenditure makes the section capacity for NASCAR marketing strategy of increasing its fan base. The marketplace section is likewise easy to method as 81% of the Y Generation consumer utilizes Facebook every day and the use is twice of using television and radio. The marketplace segment views sports as a get-together, rather than adherence to sport. The market segment thinks about NASCAR as a company doing not have in creating a multiculturalism atmosphere. Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution ought to take various 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.

Climate/Context.

It needs to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, ecological and legal and is specified above.

Company.

NASCAR is an auto racing company with having USP of high quality vehicle racing with a global structure. Its sector is sports team and events. Its target audience is males in the age group of 15-60 years. Company has closed corporate culture and having non-interventionist approach.

Collaborations.

Collaborations includes suppliers, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million every year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.

Customers.

The client of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis are its audiences. 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 produce generational commitment.

Rivals.

The direct rivals of NASCAR are Formula 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be stated that drivers and race vehicles are competitors. These drivers can go against Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution if they improved chance in regards to prizes and tv direct exposure.

Marketing Strategies.

1. Developing and Keeping Facebook Page.
Among the prospective target markets sections for NASCAR is Hispanics which is the growing population sector of USA but regrettably NASCAR had actually been unable to bring in the this targeted section. In order to draw in the young growing generation the NASCAR should market by using social networks like Facebook. It should develop a Facebook page consisting of the info concerning the races and the places of tracks to make the customer informative about the core operations of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help. It should likewise upgrade its Facebook page on day-to-day basis to provide details about its upcoming events. This would make the target audience sector more informative about the business and would result in bring in big fans base.
2. Developing and Upgrading Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Exhibit). The significant factor behind it is that, the racers mostly play in teams and are unable to construct a key account and maintain a close contact with fans. The poor contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is an important aspect for attracting audiences towards tracks and towards television. The star power for the chauffeurs at NASCARA could be enhanced by producing and updating accounts of crucial drivers by NASCARA itself. This would remove the requirement of forcing motorists to maintain their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Developing New Games and improving present games for kids.
In order to attract these kids, NASCARA must improve its current racing games by presenting personalization in the vehicles i.e. changing colours, selection of speed, presenting group racing in the game, using better graphics related to the racing tracks and presenting various levels in the game. All these adjustments in the current game would offer much better experience to kids.
Along with it, NASCAR ought to also build new video games related to racing like kids racing with kids characters as drivers, cartoon racing with racing in between numerous animation characters with a choice of choosing the favourite animation character for the kids. These strategies would enable the company to attract among its possible target sections.
4. Presenting multiculturalism at events.
Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis occasions are consisted of fans with very couple of cultural diversity, due to cost of arrival in occasions, making it unsightly for the clients viewing sport occasions as get-togethers i.e. Generation Y customers. As the Generation Y consumers are a possible target market for NASCAR, for that reason the business should take particular steps to attract this prospective target audience. It ought to adopt methods to attract the consumers far from the tracks place with various culture. The strategy to do so could be supplying unique discounts on tickets or totally free tickets to viewers coming from a particular distance or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Client Experience at Tracks.
NASCAR must work on infrastructure and features at tracks because on the race day audiences got dissatisfied. Viewers have numerous expectations from Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution because in exact same market other companies are offering better services than NASCAR. IF NASCAR do not work on this issue then its fans may moved to its competitors.

Marketing Spending plan

Marketing budget plan made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, reveals the expense associated information for the marketing techniques. It can be seen that method 5 of enhancing customer experience at tracks would need greatest initial investment and cost and strategy 4 of presenting multiculturalism will require lowest preliminary investment with lowest even more per year cost.
KEEP IN MIND: The worths about expense are assumed on reasonable basis due the absence of figures and realities associated with cost in the event study. Inflation rate of United States is presumed to be 10%.

Recommendations.
Recommendations
On the basis of deep analysis of the internal and external factors 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 decrease of television viewership rate and attendance rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long term. These strategies would deal with internal factors like bad client experience at tracks, insufficient social media marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., along with with external aspects like moving of fans towards other sports, demographical modifications in America and altering domesticity designs.