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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 Solution

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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 & Analysis


Introduction

NASCAR (National Association for Stock Car Vehicle Racing) is a company conducting series of Stock Cars and truck racing in United States and acting as a sanctioning body for driving the rules for Stock Cars and truck Racing. 2) Stock Vehicle Racing by NASCAR is the second biggest viewer 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 Solution includes; 10% of the overall profits from tv rights, sanctioning 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 approach. The structure of Automobile of Tomorrow by NASCAR, with an intent of safety for the motorists, brought different tensions amongst the stakeholders of the sport.
Executive Summary
The interaction audit, carried out in 2010, exposed that in spite of the fact that the service extremely rely on the communications in between its stakeholders, there was no identifiable service communication technique. (

The audit pointed out various doing not have of NASCAR in regards to lack of internal combination, lack of fan management technique and lack of social and digital media of marketing. The business has intricate environment with independent tracks, drivers and groups. This structure with closed corporate culture bring various difficulties in accelerating a change. Other partners in ecosystem includes the media networks i.e. tv and radio, and business marketers.

Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help viewers was highly faithful to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate marketers.

Problem Statement.

The business is presently facing the issue of declining rates of attendance at racing tracks and rates of television viewers. This can put a significant influence on its earnings from sponsors, media rights, and from other sources of income.

Situational Analysis.

The company was quite successful till 2005 with its traditional marketing strategies, but soon after 2005 the business starts facing numerous problems including decline of its fan base. A number of external as well as internal factors are accountable for the decline. Internal elements consist of; insufficient 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 children and produce generational commitment. Other obstacles for NASCAR consists of the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, etc.

SWOT Analysis.

Strengths.


In SWOT analysis, strengths specified as business's qualities which are different from its competitors. These are business's core proficiencies on which business performance or business success based upon. Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help core proficiencies includes it has rights of dictating guidelines as approving body. Regulations and guidelines concerning expert stock cars and truck racing are determined by NASCAR like if any team with needed abilities and resources can participate in races by following guidelines and guidelines dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in US. Its races were used to transmit in more than 150 countries worldwide with more than $56 million incomes. The primary sources of their profits come from tv rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and business sponsors. Because of greatest brand commitment of fans toward brand names advertised by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).

Weaknesses.

Weaknesses in SWOT Analysis are considered as external factors. Weaknesses consists of the aspects that stops company to perform at needed level of efficiency. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist method. They generally utilized to form rules and other required procedures without intervention of others which leads to poor partnership. For instance NASCAR establishes Car of Tomorrow without collaboration so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is likewise hard. It was also discovered that NASCAR had no efficient method for service interaction. They do not understand how to manage problem if it occurred off track. Inefficient company interaction leads to that they don't have clear direction for their long term goals. They don't understand that where they want to see this sport in future.
Porter's 5 Forces Analysis
Opportunities.

Opportunities in SWOT analysis are external factors which can be beneficial to company or the external factors on which company is having competitive benefit. NASCAR usually used to rely on traditional media sources like local newspaper for promotion of its sports. Generally these traditional media sources attempt to cover their home team and certain kind of events. NASCAR also came to know from these conventional media outlets that sport was difficult to cover. Media landscape likewise changed from conventional to digital landscape. Newspapers went out of business. NASCAR can work on its abilities to get maximum possible gain from this new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR utilized to earn money check of around $15 million each year from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track. Then they are needed to pay licensing fees to Turner Sport, if media sources like newspapers, publications and cable television channels desire to post videos of races on their particular pages. So NASCAR can deal with terms and conditions and try to negotiate with Turner Sports to get maximum advantages of it. Star power plays really crucial function in producing profits from every sport. Nevertheless it was 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 Help is lagging in this area i.e. star power. For instance when sports fans were asked concerning popular celebs and stars then NASCAR driver was not found even in top twenty reactions. NASCAR can put efforts in this location too for earnings generation. They must guide their chauffeurs that how they can end up being sport stars. Four strategic focuses which are produced by research group can also be worked as chance for NESCAR. These 4 strategic 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 techniques.

Hazards

Economic down turn was experienced in late 2000 which can be danger for NASCAR since if there is financial down turn then people would be having less return on financial investment. Economic down turn also results in increase fuel costs which also impacted NASCAR. Now if NASCAR make significant financial investments in brand-new sections which are based on new clients then it may face unfavorable comments from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a design that is utilized to evaluate market in which company is working. It assists in identifying what are strengths and weakness of any specific industry. It suggest that every market is different from one another. It is essential to comprehend market in which business is working due to the fact that NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are used to identify profitability, intensity and beauty of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution organisation.

Competitive Competition

This force shows capability of competitors. Groups normally represents sponsors in NASCAR and the medium of advertising is drivers. It can be stated that chauffeurs and race cars and trucks are rivals. These drivers can break NASCAR if they improved chance in terms of prizes and television direct exposure. Then viewers can shift to those other interesting automobiles and motorists, if audiences enjoy other race cars and drivers more than NASCAR. NASCAR could be having danger from its two direct rivals that is Formula 1 and Moto GP. They require to develop competitive benefits for chauffeurs so they do not shift to other rivals.
Swot Analysis
Supplier Power

The supplier power shows the variety of suppliers are available in market and what is the cost associated with supplier if company shifts from one provider to another. In this industry there is supply monopoly because chauffeurs with needed resources and abilities are restricted.

Buyer Power

In the case of NASCAR customers are its viewers. Audiences can change to other competitors easily since audiences will having low changing cost.

Threat of Substitution

Replacements are referred as options. The substitutes in this case can be other home entertainment indicates like audiences can move to other sports. So there are wide variety of alternatives are offered in this circumstance which recommends that hazard of alternative is high.

Danger of New Entry

In the case of NASCAR risk of new entry is low. They need to construct cars and trucks and racing tracks and likewise requires to pay significant amount to drivers for changing.

PESTEL Analysis

Political


As NASCAR is working in various markets so it needs to deal with different regulations. It is likewise noted that NASCAR has actually faced increased scrutiny regarding regulatory. Every government has different concern so NASCAR has to be prepared for it as priority can be shifted to other sector.

Economical

Financial aspects includes taxation rate, exchange rate, economic performance of that specific business, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can utilize abilities of workers to create new chances and improve existing chances.

Social

Each has different social values and standards. It assists in comprehending regarding society and choice of clients.

Technical

In this case of NASCAR it can be noted that business are heavily spending for research and advancement. NASCAR must also work on its media rights policy with Turner Broadcasting System.

Legal
Vrio Analysis
Since every country has various legal terms and conditions, Legal plays an important function in every country. Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis needs to be make certain that they safeguard their legal rights in every county so any company does not hurt to its legal rights.

Environmental

Ecological factors are also important for every single service. Because generally governments don't permit those organisation which can damage to environment. These ecological elements consists of laws regarding contamination, environment modification, safe garbage disposal, policies regarding insurance coverage and so on. NASCAR requires to make sure that its vehicles are not creating pollution 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 Analysis in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).

Rate.

Pricing method of NASCAR for its race events tickets is based upon the place and significance of the racing occasions. Together with race events tickets, NASCAR also charge different service fees to its stakeholders and makes earnings. It charged sanctioning charges of $1-2 million per race on average in 2005.

Promotion.

Marketing strategy 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 audiences for NASCAR races. The business is not entirely relied upon its fan base for its promotion and promote through local radio stations too. The business has actually also adopted the retailing media of promo, in which the business sells products with its logo design.

Location.

NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR consists of 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 popularity.

Individuals.

Nestle individuals method is consisted of providing much 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 Help A marketing method as its events are the source of home entertainment for crowd. Its individuals strategy 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 strategy of NASCAR.

Processes.

Several business procedures are required to carry out racing occasions in an effective way. These procedures include; appropriate schedule of time, plan for spectators, selling tickets, arrangement of area for sponsors, managing logistics etc. These all processes contribute I constructing 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 occasions. Together with it, its merchandising brands consisting of tee shirts, caps, goodies and so on, likewise function as a physical proof for NASCAR.

Product Life Cycle Assessment.

The racing events by NASCAR was presented on June 19, 1949. At the very first phase competition for NASCAR was low, as the competitors drove the automobiles comparable to the cars and trucks driven by common people.

Growth.

After performing its very first race effectively the company moved towards developing 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 Analysis based track, specifically 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 company moved towards relaying its races on tv in 1979. The first event relayed on television was flag-to-flag protection of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular company into one with worldwide fan base. He initiated a new period of financially rewarding sponsorships and tv contracts for NASCAR.

Maturity.

The maturity duration for NASCAR began with the efforts of William France Jr., with the company having vast array of revenue sources. The company has about 500 sponsors with broadcasting its occasions in about 150 countries. The company has a great deal of tracks in most of the cities of United States.

Decline.

The decrease in the company's offerings began after 2005 with average participation rate per race decreased by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The significant reasons for decline consist of the monetary crisis of 2008, which increased the expense of coming to tracks for viewers due to increasing fuel costs, and the moving 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 four sectors; 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 Solution is based upon the geographical existence of its tracks in different states and cities in United States, and the tv broadcasting of its occasions in various 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 company local as well as international fan base.

Market.

The demographic segmentation of NASCAR is also highlydiverse based upon the gender, income and age of the consumer. Its current fan base is majorly consisted of male married fans with a typical age of 47 years and an income around $30-50 thousands. Currently NASCAR is trying 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 methods to attract more age and lower its prices to enter in the marketplace section with a low typical earnings.( htt1).

Psychographic.

NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to purchase tickets and see the races as soon as in a week. NASCAR has actually tried to increase the quality of its racing by presenting phase racing, they also have attempted to lower costs and make the occasion more convenient by introducing live racing.

Behavioural.

Behavioural division of Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Analysis is based upon the behaviour of fans in regards to viewing the race reside on the tv or by going in the events. Presently, the fans choice is towards viewing the race in your home on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as pricey. This preference makes the rates for presence lower than the rates for tv audiences. NASCAR has to alter the behaviour of its fan base by presenting qualitative services at its tracks.

Target Market.

Hispanics.

One of the possible 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 Analysis was Hispanics; the young and growing population of United States. The marketplace sector has excellent 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 segment has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the sector shows affinity with cars and truck culture, however need a more concentrated marketing towards welcoming the segment towards racing.

Kids.

Kids are also one of the prospective target market section for NASCAR, as they are more connected socially than other groups. Cars and truck racing video 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 Help can be a prospective source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and improving its digital functions to draw in the kids target market.

Generation Y.
Generation Y target audience consists of those who invested 5 times more resources on discretionary expenses i.e. buying tickets for racing occasions, than others. This huge expenditure makes the sector potential for NASCAR marketing technique of increasing its fan base. The market sector is likewise easy to approach as 81% of the Y Generation customer utilizes Facebook the use and every day is twice of utilizing tv and radio. The market segment views sports as a social occasion, rather than adherence to sport. The marketplace sector thinks about NASCAR as an organization lacking in developing 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 Help ought to take different 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 choices regarding marketing. These 5 C's requirements to be evaluated appropriately for taking any marketing choice. These 5 C's stands for Environment, Company, Collaborators, Customers and Competitors.

Climate/Context.

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

Business.

Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Solution is an auto racing business with having USP of high quality car racing with a global structure. Its sector is sports team and events.

Collaborations.

Collaborations includes suppliers, providers and alliances 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 is worked together with various racing groups which are participating in racing. It also teamed up with Turners Sport for digital rights. 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 likewise had rights of each and every single video which is shoot during race at track.

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 Solution are its viewers. They target clients with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and develop generational loyalty.

Rivals.

The direct competitors of NASCAR are Formula 1 and Moto GP. Teams usually represents sponsors in NASCAR and the medium of marketing is drivers. It can be said that drivers and race cars and trucks are rivals. If they got better opportunity in terms of prizes and tv direct exposure, these drivers can go against NASCAR.

Marketing Methods.

1. Maintaining and developing Facebook Page.
One of the possible target audience sections for NASCAR is Hispanics which is the growing population segment of USA however sadly NASCAR had actually been unable to attract the this targeted sector. In order to draw in the young growing generation the NASCAR need to market by utilizing social networks like Facebook. It should establish a Facebook page containing the details concerning the races and the locations of tracks to make the customer helpful 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 must also update its Facebook page on day-to-day basis to provide info about its approaching occasions. This would make the target market sector more informative about business and would lead to attracting big fans base.
2. Establishing and Updating Accounts of Key Drivers.
NASCAR motorists has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The significant reason behind it is that, the racers primarily play in groups and are not able to develop a crucial account and preserve a close contact with fans. The poor contacts with fans lead to less destination of viewers towards the racers and a low star power. Star power is an essential element for drawing in viewers towards tracks and towards television. The star power for the motorists at NASCARA could be enhanced by developing and upgrading accounts of key chauffeurs by NASCARA itself. This would get rid of the requirement of forcing motorists to preserve their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Establishing New Games and improving current video games for kids.
Kids spent the majority of their time on playing games and using smartphones. Unfortunately, kids playing NASCARA have a worst experience of playing its games. As a result, they are less brought in towards the sport. In order to bring in these kids, NASCARA needs to improve its present racing video games by presenting modification in the cars i.e. changing colours, selection of speed, presenting group racing in the game, using much better graphics connected to the racing tracks and introducing different levels in the video game. All these adjustments in the present video game would provide much better experience to kids.
Along with it, NASCAR ought to also develop new games associated with racing like kids racing with kids characters as chauffeurs, animation racing with racing between various animation characters with an option of choosing the favourite animation character for the kids. These strategies would enable the business to draw in among its potential target sections.
4. Introducing multiculturalism at occasions.
NASCAR occasions are made up of fans with very couple of cultural diversity, due to cost of arrival in events, making it unattractive for the consumers perceiving 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 must take particular procedures to attract this possible target market.
5. Improving Consumer Experience at Tracks.
Extracting Information From The Futures And Forwards Markets The Relation Between Spot Prices Forward Prices And Expected Future Spot Prices Case Study Help should deal with infrastructure and facilities at tracks because on the race day audiences got dissatisfied. Because in exact same industry other business are offering better services than NASCAR, 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. IF NASCAR don't work on this concern then its fans may moved to its rivals. According to fans there were not adequate centers were readily available as compare to other sports suppliers. So NASCAR must make sure that it offer sufficient centers that consists of cleaned toilets, comfortable seating plan. They must also offer WIFI services and availability of credit cards throughout that track. It ought to be likewise ensure that there suffice jumbo turns positioned at all required locations. There ought to be also food stalls that offer quality food to viewers. In this way viewers will be having enjoyable experience at the day of occasion. (See Appendix B).

Marketing Budget

Marketing spending plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, shows the cost associated information for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of enhancing client experience at tracks would need highest initial financial investment and expense and strategy 4 of introducing multiculturalism will need lowest initial financial investment with lowest even more per year cost. The company must prioritize the resource allowance on these strategies on the basis of its readily available resources and the potential advantages which the technique would offer.
NOTE: The values about cost are presumed on rational basis due the absence of facts and figures related to cost in the event research study. Inflation rate of United States is assumed to be 10%.

Suggestions.
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 Solution triggering the decline of tv viewership rate and participation rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long run. These methods would handle internal aspects like bad client experience at tracks, insufficient social networks 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 styles.