Firestoneford Tire Controversy B Case Study Solution & Analysis
Intro
Firestoneford Tire Controversy B Case Study Analysis (National Association for Stock Vehicle Car Racing) is a company conducting series of Stock Cars and truck racing in United States and serving as an approving body for driving the guidelines for Stock Vehicle Racing. The organization was founded in 1947, by "Big Bill" France. NASCAR arrange Stock Cars and truck Racing occasions in United States with the existence of about 130000 viewers usually in 2005. It likewise transmitted its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the second largest spectator sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of revenue for Firestoneford Tire Controversy B Case Study Solution includes; 10% of the overall revenue from tv rights, approving 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 technique. The structure of Car of Tomorrow by NASCAR, with an intention of safety for the chauffeurs, brought different tensions amongst the stakeholders of the sport.
The interaction audit, conducted in 2010, revealed that despite the truth that business extremely rely on the communications in between its stakeholders, there was no identifiable company communication technique. The market's target consumers, direction and goals were all unknown.
The audit mentioned different lacking of NASCAR in terms of absence of internal integration, absence of fan management technique and lack of digital and social media of marketing. The business has complicated ecosystem with independent tracks, drivers and teams. This structure with closed business culture bring various obstacles in accelerating a modification. Other partners in environment includes the media networks i.e. television and radio, and corporate marketers.
Firestoneford Tire Controversy B Case Study Help audiences was highly faithful to the sport and the brand names related to the NASCAR, making it appealing for sponsors and corporate marketers.
Problem Statement.
The company is currently facing the issue of decreasing rates of participation at racing tracks and rates of television audiences. This can put a substantial effect on its revenues from sponsors, media rights, and from other sources of income.
Situational Analysis.
Although the business was rather successful till 2005 with its standard marketing techniques, but soon after 2005 the business starts dealing with numerous problems including decrease of its fan base. A number of external as well as internal factors are accountable for the decline. Internal factors consist of; insufficient financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and create generational loyalty. Other difficulties for NASCAR includes the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, and so on.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths defined as company's qualities which are various from its rivals. These are business's core proficiencies on which company performance or company success based upon. Firestoneford Tire Controversy B Case Study Analysis core proficiencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and rules regarding professional stock cars and truck racing are dictated by NASCAR like if any group with required abilities and resources can enter into races by following guidelines and policies dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also includes that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were used to relay in more than 150 nations worldwide with more than $56 million incomes. The main sources of their incomes originate from television rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and business sponsors. All the events of NASCAR are sponsored by corporates due to the fact that of greatest brand name commitment of fans toward brand names promoted by Firestoneford Tire Controversy B Case Study Analysis. (See Appendix A).
Weak points.
Weaknesses in SWOT Analysis are considered as external aspects. Weaknesses includes the aspects that stops company to perform at required level of efficiency. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They generally used to form rules and other required processes without intervention of others which leads to poor cooperation. NASCAR establishes Vehicle of Tomorrow without cooperation so result is that chauffeurs did not like that principle. As this is racing sport so covering of sports by media is likewise challenging. It was likewise found that NASCAR had no reliable technique for service interaction. If it took place off track, they don't know how to handle problem. Ineffective organisation communication leads to that they do not have clear instructions for their long term objectives. They don't understand that where they wish to see this sport in future.
Opportunities.
Opportunities in SWOT analysis are external elements which can be beneficial to business or the external factors on which company is having competitive benefit. NASCAR typically used to rely on traditional media sources like local newspaper for publicity of its sports. Generally these traditional media sources try to cover their house team and specific kind of occasions. NASCAR also came to know from these conventional media outlets that sport was hard to cover. Media landscape likewise altered from traditional to digital landscape. Newspapers failed. NASCAR can work on its abilities to get optimal possible 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 benefits. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR utilized to get pay check of around $15 million annually from Turner Sports. There are number of cons behind this offer. For instance Firestoneford Tire Controversy B Case Study Help had to get approval from Turner Sport if it wish to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every single video which is shoot throughout race at track. Then they are needed to pay licensing fees to Turner Sport, if media sources like papers, magazines and cable channels want to publish videos of races on their respective pages. So NASCAR can deal with conditions and terms and try to negotiate with Turner Sports to get optimal advantages of it. Star power plays very essential role in generating revenues from every sport. Nevertheless it was noted that Firestoneford Tire Controversy B Case Study Help is lagging in this location i.e. star power. For example when sports fans were asked regarding popular celebrities and stars then NASCAR chauffeur was not found even in leading twenty reactions. So NASCAR can put efforts in this location too for revenue generation. They ought to direct their motorists that how they can end up being sport stars. Four tactical focuses which are generated by research team can likewise be served as chance for NESCAR. These 4 tactical focuses compares and analysis Firestoneford Tire Controversy B Case Study Help methods.
Hazards
Hazards in SWOT analysis are defined as external factors that can risk to business's success. Because if there is economic down turn then people would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be hazard for NASCAR. Earning of individuals would be effected and they would be more mindful in spending their cash. Economic down turn likewise results in increase fuel rates which likewise impacted NASCAR. Because fans of NASCAR used to attend its occasion from long distances. NESCAR had a rule of 65/25/10 for earnings distribution. 65 percent earnings from media rights would be dispersed to race course, 25 percent revenue would be dispersed to contending team and remaining 10 percent would be retained by NESCAR which is sanctioning body. Completing group wished to increase their portion of earnings from 25 percent due to the fact that of increase in operating cost of a race team and also there is decline in the variety of full-season sponsorship. Because they are making huge financial investments to enhance experience of fans, nescar likewise deals with hazards from other sponsors. For example that includes upgrading existing avenues, developing brand-new opportunities, providing Wi-Fi facility and likewise supplying other interactive mediums to interact sports on mobile phones. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and produce generational loyalty. So the obstacle is that the household system in America was altering leading to reduction of impact of married male fan base over their children. Along with it understandings about automobile was also changing with perceiving automobile a vehicle to reach at point B from point A, rather than as an enjoyable job. If NASCAR make significant investments in brand-new segments which are based on brand-new customers then it may face negative remarks from its core fan base, now.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is utilized to evaluate industry in which business is working. It assists in determining what are strengths and weak point of any specific market. It suggest that every market is different from one another. 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 greatly depends upon this. There are 5 forces that are used to determine profitability, strength and appearance of Firestoneford Tire Controversy B Case Study Analysis service.
Competitive Rivalry
This force shows ability of rivals. Teams usually represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be said that drivers and race cars are rivals. These chauffeurs can go against NASCAR if they got better chance in regards to rewards and television direct exposure. If viewers take pleasure in other race automobiles and drivers more than NASCAR then viewers can shift to those other interesting cars and drivers. NASCAR might be having risk from its two direct competitors that is Solution 1 and Moto GP. They need to develop competitive advantages for chauffeurs so they do not move to other rivals.
Supplier Power
If company shifts from one supplier to another, the supplier power indicates the number of suppliers are available in industry and what is the cost associated with supplier. Due to the fact that chauffeurs with required resources and abilities are limited, in this market there is supply monopoly.
Purchaser Power
In the case of NASCAR clients are its audiences. Viewers can switch to other competitors quickly due to the fact that viewers will having low switching cost.
Threat of Substitution
Substitutes are referred as options. The alternatives in this case can be other entertainment means like viewers can move to other sports. So there are wide range of substitutes are readily available in this scenario which suggests that threat of alternative is high.
Hazard of New Entry
In the case of NASCAR risk of brand-new entry is low. They need to construct vehicles and racing tracks and likewise requires to pay substantial amount to motorists for changing.
PESTEL Analysis
Political
As NASCAR is working in various markets so it needs to face different guidelines. It is likewise noted that NASCAR has actually faced increased scrutiny regarding regulatory. Every federal government has various concern so NASCAR has actually to be prepared for it as priority can be shifted to other sector.
Economical
Financial factors includes taxation rate, currency exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate and so on. 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 staff members to develop new opportunities and enhance existing chances.
Social
Each has different social values and standards. It helps in understanding regarding society and choice of consumers.
Technical
Innovation has impact on nearly every service. It includes innovation in organisation method. In this case of Firestoneford Tire Controversy B Case Study Solution it can be noted that business are greatly spending for research study and development. NASCAR ought to also deal with its media rights policy with Turner Broadcasting System.
Legal
Because every nation has different legal terms and conditions, Legal plays an important role in every nation. Firestoneford Tire Controversy B Case Study Analysis needs to be ensure that they protect their legal rights in every county so any business does not damage to its legal rights.
Environmental
Ecological aspects are likewise important for every organisation. NASCAR requires to make sure that its cars are not creating contamination more than acceptable level.
7 P's of Marketing
Product
The items of Firestoneford Tire Controversy B Case Study Help in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving guidelines for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Price.
Pricing technique of NASCAR for its race events tickets is based upon the place and significance of the racing occasions. In addition to race events tickets, NASCAR likewise charge different service fees to its stakeholders and makes earnings. It charged sanctioning charges of $1-2 million per race on average in 2005.
Promo.
Advertising method of Firestoneford Tire Controversy B Case Study Help is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. However, the company is not completely relied upon its fan base for its promo and promote through regional radio stations too. The company has likewise embraced the merchandising media of promo, in which the company offers products with its logo.
Place.
NASCAR have its racing tracks in various cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in the majority of the cities in United States to understand nationwide popularity.
Individuals.
Nestle people method is comprised of offering better experience to its viewers, its fan base and to all of its stakeholders. People are an important element of Firestoneford Tire Controversy B Case Study Help A marketing strategy as its occasions are the source of entertainment for crowd. Its individuals technique consists of efforts to supply better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals technique of NASCAR.
Procedures.
Numerous business processes are needed to conduct racing events in an effective way. These procedures consist of; proper schedule of time, arrangement for spectators, offering tickets, plan of area for sponsors, handling logistics and so on. These all processes contribute I building NASCAR image, improving viewers experience and increasing fan base.
Physical Proof.
Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and trucks and racing events. In addition to it, its merchandising brand names including tee shirts, caps, goodies etc., likewise serve as a physical evidence for NASCAR.
Item Life Cycle Assessment.
The racing events by NASCAR was introduced on June 19, 1949. At the very first phase competition for NASCAR was low, as the rivals drove the cars similar to the vehicles driven by ordinary individuals.
Development.
The very first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the business moved towards relaying its races on television in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular company into one with worldwide fan base. He started a new age of rewarding sponsorships and television agreements for NASCAR.
Maturity.
The maturity duration for NASCAR began with the efforts of William France Jr., with the business having wide range of earnings 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 decrease in the business's offerings started after 2005 with typical attendance rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The major causes of decline include the financial crisis of 2008, which increased the cost of reaching tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.
Market Segmentation.
The market division of Firestoneford Tire Controversy B Case Study Analysis can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical division of Firestoneford Tire Controversy B Case Solution is based upon the geographical existence of its tracks in numerous states and cities in United States, and the tv broadcasting of its events in different nations. The business has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division provides the business local along with international fan base.
Market.
The demographic segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the consumer. Its existing fan base is majorly comprised of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Nevertheless presently NASCAR is attempting to increase its target market to the young growing population and kinds also. To increase the demographic segment of its market NASCAR need to modify its marketing techniques to bring in more age and lower its rates to enter in the market segment with a low average 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 tried to increase the quality of its racing by presenting stage racing, they also have tried to lower costs and make the occasion more hassle-free by presenting live racing.
Behavioural.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the tv or by going in the events. Presently, the fans preference is towards enjoying the race at home on television rather than going, as the client experience at NASCAR tracks is not beneficial as well as costly.
Target audience.
Hispanics.
Among the prospective target market of Firestoneford Tire Controversy B Case Study Help was Hispanics; the young and growing population of United States. The marketplace sector has great possible 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. The segment reveals affinity with automobile culture, but need a more concentrated marketing towards inviting the segment towards racing.
Kids.
Kids are likewise one of the potential target market section for NASCAR, as they are more connected socially than other groups. Car racing video games developed by Firestoneford Tire Controversy B Case Study Analysis can be a prospective source of getting attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and improving its digital functions to attract the kids target market.
Generation Y.
Generation Y target market includes those who spent 5 times more resources on discretionary expenditures i.e. purchasing tickets for racing occasions, than others. This substantial expenditure makes the sector capacity for NASCAR marketing technique of increasing its fan base. The market section is likewise simple to technique as 81% of the Y Generation customer uses Facebook the usage and every day is two times of using tv and radio. The market section views sports as a get-together, instead of adherence to sport. The market section thinks about NASCAR as an organization doing not have in developing a multiculturalism atmosphere. Firestoneford Tire Controversy B Case Study Analysis ought to take numerous actions to enhance the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions regarding marketing. These 5 C's requirements to be analysed correctly for taking any marketing decision. These 5 C's mean Climate, Company, Collaborators, Consumers and Rivals.
Climate/Context.
It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE represents political, economic, social, technical, legal and environmental and is stated above.
Company.
NASCAR is an auto racing business with having USP of high quality auto racing with a global structure. Its sector is sports group and events. Its target market is males in the age of 15-60 years. Company has closed corporate culture and having non-interventionist technique.
Partnerships.
Collaborations includes suppliers, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application.
Clients.
The customer of Firestoneford Tire Controversy B Case Study Help are its audiences. 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 children and create generational commitment.
Competitors.
The direct rivals of NASCAR are Solution 1 and Moto GP. Groups usually represents sponsors in NASCAR and the medium of marketing is motorists. It can be said that motorists and race vehicles are competitors. If they got better opportunity in terms of rewards and tv exposure, these motorists can go against NASCAR.
Marketing Strategies.
1. Establishing and Keeping Facebook Page.
Among the potential target audience sectors for NASCAR is Hispanics which is the growing population section of U.S.A. but sadly NASCAR had actually been unable to bring in the this targeted segment. In order to bring in the young growing generation the NASCAR must market by using social networks like Facebook. It should develop a Facebook page containing the information relating to the races and the places of tracks to make the consumer helpful about the core operations of Firestoneford Tire Controversy B Case Study Solution. It ought to also update its Facebook page on everyday basis to provide details about its upcoming events. This would make the target market sector more useful about business and would result in bring in large fans base.
2. Developing and Updating Accounts of Key Drivers.
Firestoneford Tire Controversy B Case Study Solution drivers has a low star power as compare to players of other sports. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is a crucial aspect for attracting viewers towards tracks and towards television.
3. Developing New Games and improving present video games for kids.
In order to bring in these kids, NASCARA should enhance its current racing games by presenting customization in the cars i.e. altering colours, selection of speed, presenting group racing in the video game, utilizing better graphics related to the racing tracks and introducing numerous levels in the game. All these modifications in the current game would offer better experience to kids.
Together with it, NASCAR ought to also build new games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing in between different animation characters with a choice of selecting the favourite cartoon character for the kids. These methods would enable the business to bring in among its potential target segments.
4. Presenting multiculturalism at events.
Firestoneford Tire Controversy B Case Study Solution events are consisted of fans with extremely few multiculturalism, due to cost of arrival in occasions, making it unappealing for the customers viewing sport events as get-togethers i.e. Generation Y consumers. As the Generation Y consumers are a potential target market for NASCAR, therefore the business should take specific steps to attract this prospective target market. It needs to adopt strategies to attract the clients far from the tracks area with different culture. The method to do so might be providing unique discount rates on tickets or complimentary tickets to audiences coming from a particular range or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more pleased.
5. Improving Customer Experience at Tracks.
Firestoneford Tire Controversy B Case Study Solution must work on infrastructure and features at tracks because on the race day audiences got disappointed. Audiences have numerous expectations from NASCAR because in exact same market other companies are offering better services than NASCAR. Then its fans might shifted to its competitors, if NASCAR do not work on this problem. According to fans there were not sufficient centers were readily available as compare to other sports suppliers. NASCAR must make sure that it offer sufficient facilities that includes cleaned bathrooms, comfy seating arrangement. They should also provide WIFI services and availability of credit cards throughout that track. It should be likewise make certain that there are enough jumbo turns placed at all required locations. There must be likewise food stalls that offer quality food to viewers. In this method audiences will be having enjoyable experience at the day of event. (See Appendix B).
Marketing Spending plan
Marketing budget plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the cost related information for the marketing strategies. (See Appendix B). It can be seen that method 5 of improving client experience at tracks would require highest initial investment and expense and technique 4 of introducing multiculturalism will require most affordable initial investment with least expensive further per year cost. The business should prioritize the resource allocation on these strategies on the basis of its offered resources and the possible benefits which the technique would supply.
NOTE: The worths about expense are assumed on rational basis due the absence of truths and figures associated with cost in the case study. Inflation rate of United States is assumed to be 10%.
Recommendations.
On the basis of deep analysis of the external and internal factors of Firestoneford Tire Controversy B Case Study Analysis causing the decline of tv viewership rate and participation rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long term. These methods would cope with internal factors like poor client experience at tracks, inadequate social media marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, as well as with external factors like shifting of fans towards other sports, demographical changes in America and changing domesticity styles.
