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NASCAR (National Association for Stock Cars And Truck Vehicle Racing) is a company performing series of Stock Cars and truck racing in United States and acting as a sanctioning body for driving the rules for Stock Car Racing. 2) Stock Vehicle Racing by NASCAR is the second biggest viewer sport, with highest number of sponsors. 1) The other sources of revenue for Hidden Costs Of It Outsourcing Case Study Solution consists of; 10% of the overall earnings from television rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand name to companies.

NASCAR has a closed corporate culture with the non-interventionist technique. The building of Car of Tomorrow by NASCAR, with an objective of security for the drivers, brought different tensions amongst the stakeholders of the sport.
Executive Summary
The communication audit, carried out in 2010, revealed that regardless of the truth that the business highly depend on the interactions in between its stakeholders, there was no identifiable organisation interaction method. The industry's target clients, direction and objectives were all unknown.

The audit pointed out numerous lacking of NASCAR in terms of absence of internal integration, absence of fan management technique and lack of social and digital media of marketing.

Hidden Costs Of It Outsourcing Case Study Analysis audiences was extremely faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and corporate online marketers.

Issue Statement.

The business is presently dealing with the problem 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 profits.

Situational Analysis.

The business was quite successful till 2005 with its standard marketing methods, but quickly after 2005 the business starts facing various problems consisting of decrease of its fan base. A number of external along with internal elements are responsible for the decline. Internal elements consist of; insufficient financial investment in social media 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 challenges 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 houses through jumbo turns, Wi-Fi access, etc.

SWOT Analysis.


In SWOT analysis, strengths specified as business's qualities which are different from its competitors. These are business's core competencies on which company performance or company success based upon. Hidden Costs Of It Outsourcing Case Study Help core proficiencies includes it has rights of dictating guidelines as sanctioning body. Policies and rules regarding expert stock cars and truck racing are dictated by NASCAR like if any group with required abilities and resources can enter into races by following rules and guidelines dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to broadcast in more than 150 nations all over the world with more than $56 million revenues. The main sources of their revenues originate from television 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 corporate sponsors. All the occasions of NASCAR are sponsored by corporates because of most significant brand name loyalty of fans toward brand names advertised by Hidden Costs Of It Outsourcing Case Study Help. (See Appendix A).


Weak Points in SWOT Analysis are thought about as external elements. Weak points consists of the aspects that stops company to perform at required level of effectiveness. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist approach. They usually utilized to form guidelines and other required processes without intervention of others which leads to bad cooperation. For example NASCAR establishes Cars and truck of Tomorrow without cooperation so result is that drivers did not like that idea. As this is racing sport so covering of sports by media is likewise challenging. It was also discovered that NASCAR had no effective strategy for organisation communication. If it occurred off track, they do not know how to handle concern. Inadequate organisation communication results in that they do not have clear direction for their long term goals. They do not understand that where they wish to see this sport in future.
Porter's 5 Forces Analysis

NASCAR generally utilized to rely on standard media sources like regional paper for publicity of its sports. NASCAR likewise came to understand from these standard media outlets that sport was difficult to cover. When sports fans were asked regarding popular celebs and stars then NASCAR motorist was not found even in leading twenty actions.


Risks in SWOT analysis are specified as external elements that can threat to business's success. Because if there is financial down turn then individuals 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 conscious in investing their loan. Economic down turn likewise leads to boost fuel rates which also impacted NASCAR. Since fans of NASCAR utilized to attend its event from cross countries. NESCAR had a rule of 65/25/10 for revenue circulation. 65 percent profits from media rights would be distributed to race course, 25 percent revenue would be distributed to competing group and remaining 10 percent would be retained by NESCAR which is approving body. Completing team wanted to increase their portion of income from 25 percent due to the fact that of boost in running cost of a race team and also there is decline in the variety of full-season sponsorship. NESCAR likewise faces threats from other sponsors due to the fact that they are making massive investments to improve experience of fans. Which consists of upgrading existing avenues, building new avenues, providing Wi-Fi center and also offering other interactive mediums to connect 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 create generational commitment. So the challenge is that the household system in America was changing resulting in reduction of influence of married male fan base over their children. Together with it perceptions about vehicle was likewise changing with perceiving vehicle an automobile to reach at point B from point A, rather than as a fun task. If NASCAR make substantial investments in brand-new sectors which are based on brand-new clients then it may deal with unfavorable remarks from its core fan base, now.

Porter's 5 Forces Analysis

It is important to comprehend market in which business is working since NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to identify profitability, intensity and attractiveness of NASCAR service.

Competitive Rivalry

This force shows ability of rivals. Teams normally represents sponsors in NASCAR and the medium of advertising is chauffeurs. For that reason it can be stated that chauffeurs and race cars and trucks are rivals. These chauffeurs can break NASCAR if they got better opportunity in terms of prizes and tv exposure. If audiences enjoy other race vehicles and motorists more than NASCAR then audiences can shift to those other fascinating cars and chauffeurs. NASCAR might be having hazard from its 2 direct rivals that is Solution 1 and Moto GP. They need to create competitive benefits for chauffeurs so they do not shift to other rivals.
Swot Analysis
Supplier Power

If company shifts from one provider to another, the provider power shows the number of suppliers are available in market and what is the cost associated with supplier. In this industry there is supply monopoly because motorists with needed resources and abilities are limited.

Purchaser Power

In the case of NASCAR consumers are its viewers. Viewers can change to other rivals quickly due to the fact that viewers will having low switching cost.

Hazard of Substitution

Alternatives are referred as alternatives. The alternatives in this case can be other home entertainment implies like audiences can move to other sports. So there are large range of substitutes are available in this situation which recommends that threat of alternative is high.

Hazard of New Entry

It is specified as how it is simple for any company to go into in that particular industry. When it comes to Hidden Costs Of It Outsourcing Case Study Analysis threat of brand-new entry is low. If any company requires to enter in this business than they have to make heavy investments, since. They need to construct cars and trucks and racing tracks and also needs to pay substantial amount to drivers for changing.

PESTEL Analysis


As NASCAR is working in different markets so it requires to face different guidelines. It is likewise noted that NASCAR has dealt with increased analysis concerning regulatory. Every government has different top priority so NASCAR has actually to be prepared for it as top priority can be moved to other sector.


Financial aspects consists of taxation rate, exchange rate, economic performance of that specific company, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can utilize abilities of workers to produce brand-new opportunities and enhance existing chances.


Each has different social values and norms. It assists in comprehending concerning society and choice of customers.


In this case of NASCAR it can be noted that companies are greatly investing for research and development. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays an essential role in every nation due to the fact that every nation has different legal conditions. Hidden Costs Of It Outsourcing Case Study Analysis requires to be ensure that they safeguard their legal rights in every county so any business does not hurt to its legal rights.


Environmental elements are also essential for every organisation. NASCAR requires to make sure that its automobiles are not producing pollution more than appropriate level.

7 P's of Marketing


The items of Hidden Costs Of It Outsourcing Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).


Prices method of NASCAR for its race events tickets is based upon the location and value of the racing events. In addition to race events tickets, NASCAR also charge different service charge to its stakeholders and makes earnings. It charged sanctioning fees of $1-2 million per race on average in 2005.


Promotional method of Hidden Costs Of It Outsourcing Case Study Help is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. Nevertheless, the business is not completely relied upon its fan base for its promo and promote through local radio stations too. The company has likewise embraced the retailing media of promo, in which the company sells products with its logo design.


NASCAR have its racing tracks in numerous 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 tries to conduct its races in most of the cities in United States to understand nationwide popularity.


Nestle people technique is comprised of providing much better experience to its audiences, its fan base and to all of its stakeholders. People are an important aspect of Hidden Costs Of It Outsourcing Case Study Analysis A marketing technique as its occasions are the source of entertainment for crowd. Its individuals method includes efforts to provide much better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under people strategy of NASCAR.


A number of organisation processes are required to conduct racing occasions in an effective way. These processes consist of; correct schedule of time, arrangement for spectators, selling tickets, arrangement of space 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 includes the presence of its racing tracks, stock vehicles and racing occasions. In addition to it, its retailing brand names consisting of t-shirts, caps, goodies etc., likewise serve as a physical proof for NASCAR.

Product Life Cycle Evaluation.

The racing occasions by NASCAR was presented on June 19, 1949. At the very first stage competition for NASCAR was low, as the competitors drove the automobiles comparable to the cars driven by regular individuals.


After performing its first race effectively the business moved towards developing its own tracks. The very first Hidden Costs Of It Outsourcing Case Study Analysis based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment of more raceways including Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards transmitting 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 regional Sport popular organization into one with global fan base. He initiated a brand-new era of financially rewarding sponsorships and tv contracts for NASCAR.


The maturity period for NASCAR started with the efforts of William France Jr., with the company having large range of earnings sources. The business has about 500 sponsors with broadcasting its events in about 150 nations. The company has large number of tracks in the majority of the cities of United States.


The significant causes of decline consist of the monetary crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel costs, and the moving of its fan base towards other sports.

Market Division.

The market segmentation of Hidden Costs Of It Outsourcing Case Study Solution can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Hidden Costs Of It Outsourcing Case Solution is based upon the geographical existence of its tracks in numerous states and cities in United States, and the television broadcasting of its occasions in different countries. The company has 23 tracks in about 20 states of America and has tv broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division supplies the business local in addition to international fan base.


The demographic division of Hidden Costs Of It Outsourcing Case Study Analysis is likewise highlydiverse based upon the gender, income and age of the consumer. To increase the group section of its market NASCAR need to modify its marketing methods to draw in more age groups and lower its prices to go into in the market segment with a low average earnings.


NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races when in a week. NASCAR has actually attempted to increase the quality of its racing by presenting phase racing, they likewise have tried to lower prices and make the event more convenient by introducing live racing.


Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the events. Currently, the fans choice is towards viewing the race at house on tv rather than going, as the consumer experience at NASCAR tracks is not beneficial as well as expensive.

Target audience.


One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has great potential for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are likewise one of the possible target market section for NASCAR, as they are more connected socially than other groups. Vehicle racing games established by Hidden Costs Of It Outsourcing Case Study Solution can be a prospective source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards customizing and enhancing its digital features to bring in the kids target market.

Generation Y.
Generation Y target market consists of those who invested five times more resources on discretionary expenditures 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 also simple to technique as 81% of the Y Generation consumer uses Facebook the usage and every day is twice of using tv and radio. The market sector views sports as a get-together, instead of adherence to sport. The market segment thinks about NASCAR as a company doing not have in producing a multiculturalism atmosphere. Hidden Costs Of It Outsourcing Case Study Help 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 helps in taking choices concerning marketing. These 5 C's needs to be analysed effectively for taking any marketing decision. These 5 C's stands for Climate, Company, Collaborators, Clients and Competitors.


It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE represents political, financial, social, technical, ecological and legal and is mentioned above.


Hidden Costs Of It Outsourcing Case Study Solution is a vehicle racing business with having USP of high quality automobile racing with a global structure. Its sector is sports group and events.


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


The client of Hidden Costs Of It Outsourcing Case Study Solution are its audiences. They target customers 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 produce generational loyalty.


The direct rivals of NASCAR are Solution 1 and Moto GP. Groups generally represents sponsors in NASCAR and the medium of advertising is drivers. It can be said that chauffeurs and race automobiles are competitors. These motorists can go against Hidden Costs Of It Outsourcing Case Study Solution if they got better opportunity in terms of prizes and tv direct exposure.

Marketing Techniques.

1. Developing and Maintaining Facebook Page.
Among the potential target markets sections for NASCAR is Hispanics which is the growing population sector of USA but sadly NASCAR had been not able to attract the this targeted segment. In order to bring in the young growing generation the NASCAR must market by using social networks like Facebook. It ought to develop a Facebook page including the info regarding the races and the locations of tracks to make the customer informative about the core operations of Hidden Costs Of It Outsourcing Case Study Solution. It should also update its Facebook page on daily basis to supply details about its approaching events. This would make the target market segment more useful about business and would result in drawing in big fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
Hidden Costs Of It Outsourcing Case Study Analysis chauffeurs has a low star power as compare to players 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 important aspect for attracting audiences towards tracks and towards television.
3. Establishing New Games and enhancing present games for kids.
Kids invested the majority of their time on playing video games and using smartphones. However sadly, kids playing NASCARA have a worst experience of playing its video games. As a result, they are less attracted towards the sport. In order to bring in these kids, NASCARA ought to enhance its existing racing games by introducing personalization in the automobiles i.e. altering colours, choice of speed, presenting group racing in the game, utilizing much better graphics connected to the racing tracks and introducing different levels in the game. All these adjustments in the existing video game would supply better experience to kids.
In addition to it, NASCAR ought to also build new video games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing between various cartoon characters with an option of picking the preferred cartoon character for the kids. These techniques would allow the company to bring in among its prospective target sections.
4. Introducing multiculturalism at events.
Hidden Costs Of It Outsourcing Case Study Help events are comprised of fans with really few multiculturalism, due to expense of arrival in occasions, making it unsightly for the clients perceiving sport events as social occasions i.e. Generation Y customers. As the Generation Y clients are a potential target audience for NASCAR, for that reason the company ought to take particular procedures to attract this prospective target market. It needs to adopt strategies to attract the customers far from the tracks location with different culture. The strategy to do so might be offering special discount rates on tickets or free tickets to viewers coming from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more pleased.
5. Improving Consumer Experience at Tracks.
Because on the race day viewers got dissatisfied, NASCAR needs to work on facilities and amenities at tracks. Viewers have lots of expectations from NASCAR because in exact same market other companies are providing much better services than NASCAR. Then its fans may shifted to its competitors, if NASCAR don't work on this concern. According to fans there were not appropriate facilities were offered as compare to other sports providers. NASCAR needs to make sure that it offer sufficient facilities that includes cleaned toilets, comfy seating arrangement. They should likewise offer WIFI services and ease of access of charge card throughout that track. It must be likewise make certain that there suffice jumbo turns put at all needed places. There should be also food stalls that provide quality food to viewers. In this way viewers will be having pleasant experience at the day of occasion. (See Appendix B).

Marketing Budget

Marketing spending plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the expense related data for the marketing techniques. It can be seen that strategy 5 of enhancing client experience at tracks would need highest initial financial investment and cost and method 4 of presenting multiculturalism will require most affordable initial investment with most affordable further per year cost.
KEEP IN MIND: The values about expense are presumed on reasonable basis due the lack of truths and figures related to cost in the case research study. Inflation rate of United States is presumed to be 10%.

On the basis of deep analysis of the external and internal aspects of Hidden Costs Of It Outsourcing Case Study Help causing the decline of tv viewership rate and attendance rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long term. These methods would manage internal elements like bad customer experience at tracks, inadequate social networks marketing, incapable digital medias like games, lack of culturalisms at tracks and so on, along with with external aspects like moving of fans towards other sports, demographical modifications in America and altering family life styles.