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NASCAR (National Association for Stock Automobile Vehicle Racing) is a company conducting series of Stock Vehicle racing in United States and acting as an approving body for driving the rules for Stock Vehicle Racing. 2) Stock Automobile Racing by NASCAR is the 2nd biggest spectator sport, with greatest number of sponsors. 1) The other sources of income for Hidden Costs Of It Outsourcing Case Study Help includes; 10% of the total earnings from television rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand name to companies.

NASCAR has a closed business culture with the non-interventionist approach. This non collective technique brings tensions in the sport. The structure of Car of Tomorrow by Hidden Costs Of It Outsourcing Case Study Solution, with an objective of safety for the drivers, brought numerous tensions among the stakeholders of the sport.
Executive Summary
The interaction audit, performed in 2010, exposed that despite the fact that the company highly rely on the interactions between its stakeholders, there was no identifiable business interaction strategy. (

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

Hidden Costs Of It Outsourcing Case Study Help audiences was highly devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate online marketers.

Issue Statement.

The business is currently dealing with the problem of declining rates of presence at racing tracks and rates of tv viewers. This can put a significant impact on its earnings from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The company was rather successful till 2005 with its conventional marketing techniques, but quickly after 2005 the business begins facing different problems including decrease of its fan base. Numerous external along with internal factors are responsible for the decline. Internal factors consist of; inadequate investment in social networks and other digital medias of.

Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational loyalty. Other difficulties for NASCAR includes the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, etc.

SWOT Analysis.


In SWOT analysis, strengths specified as company's qualities which are different from its competitors. These are business's core competencies on which company performance or company success based on. Hidden Costs Of It Outsourcing Case Study Solution core competencies includes it has rights of determining guidelines as approving body. Rules and regulations relating to expert stock automobile racing are determined by NASCAR like if any group with required skills and resources can participate in races by following guidelines and policies determined by NASCAR. NASCAR has monopoly it this element. Its strengths also includes that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to relay in more than 150 countries worldwide with more than $56 million revenues. The primary sources of their incomes come from tv rights, sanctioning charges, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and corporate sponsors. Because of most significant brand commitment of fans towards brands marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).


Weak Points in SWOT Analysis are considered as external elements. Weaknesses consists of the factors that stops company to carry out at needed level of performance. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They normally used to form guidelines and other required procedures without intervention of others which results in poor cooperation. NASCAR establishes Car of Tomorrow without partnership so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is also challenging. It was also discovered that NASCAR had no effective technique for organisation interaction. They don't understand how to deal with concern if it happened off track. Inadequate organisation interaction results in that they don't have clear instructions for their long term objectives. They don't know that where they want to see this sport in future.
Porter's 5 Forces Analysis

NASCAR usually used to rely on conventional media sources like local newspaper for publicity of its sports. NASCAR also came to understand from these traditional media outlets that sport was difficult to cover. When sports fans were asked regarding popular stars and stars then NASCAR motorist was not discovered even in top twenty reactions.


Economic down turn was experienced in late 2000 which can be danger for NASCAR because if there is economic down turn then people would be having less return on investment. Economic down turn likewise results in boost fuel rates which also impacted NASCAR. Now if NASCAR make significant financial investments in new segments which are based on new consumers then it may face negative comments from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a model that is used to analyse market in which business is working. It helps in identifying what are strengths and weak point of any particular market. It recommend that every market is various from one another. Due to the fact that NASCAR's bottom line i.e. net profit is greatly depends on this, it is essential to understand industry in which business is working. There are 5 forces that are used to recognize success, intensity and beauty of Hidden Costs Of It Outsourcing Case Study Help service.

Competitive Competition

This force shows capability of competitors. Teams generally represents sponsors in NASCAR and the medium of marketing is drivers. It can be stated that motorists and race cars and trucks are competitors. If they got much better chance in terms of rewards and tv exposure, these drivers can go versus Hidden Costs Of It Outsourcing Case Study Solution. If audiences take pleasure in other race automobiles and drivers more than NASCAR then audiences can shift to those other interesting cars and trucks and chauffeurs. NASCAR might be having threat from its 2 direct competitors that is Solution 1 and Moto GP. They need to develop competitive advantages for motorists so they don't move to other rivals.
Swot Analysis
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 expense associated with supplier. Due to the fact that motorists with required resources and skills 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 viewers will having low switching cost.

Danger of Replacement

Substitutes are referred as options. The alternatives in this case can be other home entertainment suggests like viewers can shift to other sports. There are broad range of replacements are available in this situation which suggests that hazard of substitute is high.

Hazard of New Entry

It is specified as how it is simple for any business to enter in that specific market. In the case of Hidden Costs Of It Outsourcing Case Study Analysis hazard of brand-new entry is low. Due to the fact that if any company needs to enter in this company than they have to make heavy financial investments. They require to construct automobiles and racing tracks and also needs to pay significant total up to motorists for changing.

PESTEL Analysis


As NASCAR is working in numerous markets so it needs to face various policies. It is also noted that NASCAR has faced increased examination concerning regulative. Every government has different priority so NASCAR has actually to be prepared for it as priority can be moved to other sector.


Financial factors includes tax rate, currency exchange rate, financial efficiency of that particular company, 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 affected. NASCAR can leverage capabilities of employees to create new opportunities and improve existing opportunities.


Every society is various from each other. Each has different social values and norms. It assists in understanding relating to society and choice of clients. Social factors includes customs, culture, mindsets towards specific product and services, demographics, norms, interests etc. It can be concluded that advertising through other methods instead of traditional (i.e. newspaper) can be chosen in this society.


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

Vrio Analysis
Due to the fact that every nation has different legal terms and conditions, Legal plays an important role in every country. 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 damage to its legal rights.


Ecological factors are also crucial for every service. Because usually governments do not allow those company which can hurt to environment. These ecological aspects includes laws relating to contamination, environment modification, safe waste disposal, policies regarding insurance coverage etc. NASCAR requires to make sure that its cars and trucks are not generating pollution more than acceptable level.

7 P's of Marketing


The items of Hidden Costs Of It Outsourcing 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 during broadcast of NASCAR races. (Hanlon, 2018).


Pricing strategy of NASCAR for its race occasions tickets is based upon the place and value of the racing occasions. In addition to race events tickets, NASCAR also charge various service fees to its stakeholders and makes profits. For example it charged sanctioning fees of $1-2 million per race typically in 2005.


Marketing method of Hidden Costs Of It Outsourcing 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 company is not entirely relied upon its fan base for its promotion and promote through local radio stations too. The company has likewise embraced the merchandising media of promo, in which the company sells products with its logo.


NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to comprehend nationwide popularity.


Nestle people method is comprised of providing better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential element of Hidden Costs Of It Outsourcing Case Study Help A marketing technique as its events are the source of home entertainment for crowd. Its people strategy includes efforts to provide better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under individuals technique of NASCAR.


A number of company processes are needed to conduct racing events in an efficient method. These procedures consist of; proper schedule of time, arrangement for spectators, selling tickets, arrangement of space for sponsors, managing logistics and so on. These all procedures contribute I developing NASCAR image, improving viewers experience and increasing fan base.

Physical Evidence.

Crucial physical proofs for the NASCAR consists of the presence of its racing tracks, stock cars and racing occasions. Along with it, its retailing brands including tee shirts, caps, goodies etc., also act as a physical evidence for NASCAR.

Product Life Process Evaluation.

The racing events by Hidden Costs Of It Outsourcing Case Study Solution was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the very first phase competitors for NASCAR was low, as the rivals drove the automobiles similar to the vehicles driven by regular individuals.


The first NASCAR based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the company moved towards relaying its races on tv in 1979.

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


The maturity period for NASCAR started with the efforts of William France Jr., with the business having wide range of income sources. The business has about 500 sponsors with relaying its occasions in about 150 countries. The business 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 showing up at tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Segmentation.

The marketplace segmentation of Hidden Costs Of It Outsourcing Case Study Help can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Hidden Costs Of It Outsourcing Case Solution 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 various nations. The company has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical division offers the business regional as well as international fan base.


The demographic division of Hidden Costs Of It Outsourcing Case Study Analysis is also highlydiverse based upon the gender, income and age of the customer. To increase the group segment of its market NASCAR must revise its marketing techniques to bring in more age groups and lower its rates to go into in the market sector with a low average income.


The mental qualities of most of the fans are rather comparable. NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to purchase tickets and see the races when in a week. 71% of them prefer to purchase products with a NASCAR brand name. They are rather extrovert and are willing to join other fans while racing. They want quality racing with low cost at convenient location. NASCAR has tried to increase the quality of its racing by presenting stage racing, they likewise have tried to lower costs and make the occasion more convenient by introducing live racing.


Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the tv or by going in the events. Currently, the fans choice is towards watching the race at home on tv rather than going, as the customer experience at NASCAR tracks is not favourable as well as expensive.

Target audience.


One of the possible target market of Hidden Costs Of It Outsourcing Case Study Analysis was Hispanics; the young and growing population of United States. The market sector has terrific 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 sector has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the segment shows affinity with vehicle culture, however require a more focused marketing towards welcoming the sector towards racing.


Kids are likewise among the prospective target audience segment for NASCAR, as they are more connected socially than other groups. Producing fan base amongst kids can offer a potential increase in the variety of fans for racing due to their connectivity. Kids spend most of their times in playing and utilizing mobile phones computer game. Automobile racing games established by Hidden Costs Of It Outsourcing Case Study Solution can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of getting the attention. NASCAR requires more attention towards customizing and improving its digital features to attract the kids target audience.

This substantial expenditure makes the segment potential for NASCAR marketing strategy of increasing its fan base. The market section thinks about NASCAR as an organization lacking in developing a multiculturalism environment. NASCAR ought to take different steps to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing helps in taking decisions concerning marketing.


It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE means political, economic, social, technical, environmental and legal and is stated above.


NASCAR is an auto racing business with having USP of high quality automobile racing with a worldwide structure. Its sector is sports group and events. Its target market is males in the age group of 15-60 years. Business has actually closed business culture and having non-interventionist technique.


Collaborations consists of suppliers, suppliers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application.


The consumer of Hidden Costs Of It Outsourcing Case Study Analysis are its viewers. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and create generational commitment.


Groups usually represents sponsors in NASCAR and the medium of marketing is drivers. These motorists can go versus NASCAR if they got much better opportunity in terms of prizes and tv direct exposure.

Marketing Techniques.

1. Developing and Keeping Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population segment of U.S.A. however sadly NASCAR had actually been unable to attract the this targeted section. It needs to develop a Facebook page containing the details relating to the races and the places of tracks to make the customer helpful about the core operations of NASCAR.
2. Developing and Updating Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The major reason behind it is that, the racers mostly play in teams and are unable to develop an essential account and keep a close contact with fans. The poor contacts with fans lead to 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 might be improved by creating and updating accounts of crucial chauffeurs by NASCARA itself. This would eliminate the requirement of requiring motorists to preserve their accounts and would result in increasing fans attention towards NASCARA chauffeurs.
3. Developing New Games and enhancing current video games for kids.
Kids spent the majority of their time on playing video games and utilizing mobile phones. Regrettably, 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 enhance its current racing video games by presenting customization in the cars and trucks i.e. changing colours, selection of speed, presenting group racing in the game, using much better graphics connected to the racing tracks and presenting numerous levels in the game. All these modifications in the current game would supply better experience to kids.
In addition to it, NASCAR should likewise construct brand-new games related to racing like kids racing with kids characters as chauffeurs, animation racing with racing in between numerous animation characters with an option of choosing the favourite cartoon character for the kids. These strategies would allow the business to draw in among its possible target sectors.
4. Presenting multiculturalism at events.
NASCAR events are comprised of fans with very couple of cultural diversity, due to expense of arrival in occasions, making it unattractive for the customers perceiving sport occasions as social events i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, therefore the business needs to take certain steps to attract this potential target market.
5. Improving Client Experience at Tracks.
NASCAR ought to work on infrastructure and features at tracks because on the race day audiences got dissatisfied. Audiences have many expectations from Hidden Costs Of It Outsourcing Case Study Help since in same industry other business are offering better services than NASCAR. IF NASCAR do not work on this issue then its fans might shifted to its competitors.

Marketing Budget plan

Marketing spending plan made on the basis of the above strategies for the period of 5 years from 2011 to 2015, shows the cost related data for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of improving customer experience at tracks would need highest initial investment and cost and method 4 of presenting multiculturalism will require most affordable preliminary financial investment with most affordable even more each year expense. The business ought to focus on the resource allowance on these techniques on the basis of its offered resources and the potential advantages which the technique would offer.
NOTE: The worths about cost are presumed on logical basis due the lack of truths and figures connected 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 elements of Hidden Costs Of It Outsourcing Case Study Solution causing the decline of television viewership rate and participation rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long run. These strategies would manage internal factors like bad consumer experience at tracks, insufficient social media marketing, incapable digital medias like games, lack of culturalisms at tracks etc., in addition to with external elements like moving of fans towards other sports, demographical changes in America and altering domesticity styles.