Identifying And Realizing Investments In Eastern Europe A Case Study Solution & Analysis
NASCAR (National Association for Stock Vehicle Car Racing) is a company carrying out series of Stock Automobile racing in United States and acting as an approving body for driving the guidelines for Stock Car Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd biggest viewer sport, with greatest number of sponsors. 1) The other sources of profits for Identifying And Realizing Investments In Eastern Europe A Case Study Help includes; 10% of the total profits from television rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed business culture with the non-interventionist technique. The building of Automobile of Tomorrow by NASCAR, with an intent of security for the chauffeurs, brought different tensions among the stakeholders of the sport.
The communication audit, conducted in 2010, revealed that despite the reality that the business extremely count on the communications in between its stakeholders, there was no identifiable business communication method. The industry's target clients, instructions and objectives were all unknown.
The audit pointed out numerous lacking of NASCAR in terms of lack of internal combination, lack of fan management method and absence of social and digital media of marketing.
Identifying And Realizing Investments In Eastern Europe A Case Study Solution viewers was highly devoted to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business marketers.
The business is presently dealing with the problem of declining rates of presence at racing tracks and rates of television audiences. This can put a considerable effect on its profits from sponsors, media rights, and from other sources of revenue.
Although the company was quite successful till 2005 with its traditional marketing strategies, however not long after 2005 the company starts facing various issues including decline of its fan base. Numerous external along with internal aspects are accountable for the decline. Internal aspects include; 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 children and produce generational commitment. 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.
In SWOT analysis, strengths defined as business's qualities which are various from its rivals. These are company's core competencies on which company efficiency or company success based upon. Identifying And Realizing Investments In Eastern Europe A Case Study Solution core competencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and rules concerning professional stock vehicle racing are dictated by NASCAR like if any group with required abilities and resources can enter into races by following guidelines and policies determined by NASCAR. NASCAR has monopoly it this element. Its strengths likewise 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 utilized to transmit in more than 150 nations around the world with more than $56 million profits. The main sources of their earnings 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. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and corporate sponsors. Due to the fact that of biggest brand name commitment of fans towards brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses in SWOT Analysis are considered as external factors. Weak points consists of the aspects that stops company to perform at required level of efficiency. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist technique. They usually used to form guidelines and other required processes without intervention of others which leads to bad cooperation. NASCAR develops Car of Tomorrow without collaboration so result is that drivers did not like that concept. As this is racing sport so covering of sports by media is likewise difficult. It was also discovered that NASCAR had no reliable technique for organisation communication. If it occurred off track, they don't know how to manage problem. Inefficient organisation communication leads to that they do not have clear direction for their long term goals. They don't know that where they want to see this sport in future.
Opportunities in SWOT analysis are external factors which can be favourable to business or the external aspects on which company is having competitive advantage. NASCAR normally utilized to rely on conventional media sources like local newspaper for publicity of its sports. Normally these traditional media sources attempt to cover their home group and certain type of occasions. NASCAR likewise came to know from these standard media outlets that sport was hard to cover. Media landscape also changed from traditional to digital landscape. Papers 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 digital and social media to get its advantages. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR utilized to make money check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot during race at track. If media sources like papers, magazines and cable television channels want to publish videos of races on their respective pages then they are needed to pay licensing charges to Turner Sport. So NASCAR can deal with conditions and terms and try to work out with Turner Sports to get maximum advantages of it. Star power plays very important function in producing revenues from every sport. It was noted that NASCAR is lagging in this area 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 responses. NASCAR can put efforts in this location too for profits generation. They ought to direct their chauffeurs that how they can end up being sport stars. 4 strategic focuses which are generated by research study group can likewise be served as chance for NESCAR. These four tactical focuses compares and analysis Identifying And Realizing Investments In Eastern Europe A Case Study Analysis techniques.
Economic down turn was experienced in late 2000 which can be risk for NASCAR due to the fact that if there is financial down turn then individuals would be having less return on financial investment. Economic down turn likewise results in boost fuel rates which also affected NASCAR. Now if NASCAR make significant investments in brand-new sectors which are based on new clients then it may deal with unfavorable comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is utilized to analyse industry in which company is working. It assists in identifying what are strengths and weak point of any specific industry. It recommend that every industry is various from one another. Due to the fact that NASCAR's bottom line i.e. net earnings is heavily depends on this, it is important to comprehend market in which company is working. There are 5 forces that are used to recognize profitability, strength and beauty of Identifying And Realizing Investments In Eastern Europe A Case Study Analysis organisation.
This force suggests ability of competitors. Teams normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. For that reason it can be stated that motorists and race automobiles are rivals. If they got better opportunity in terms of prizes and television direct exposure, these motorists can go versus Identifying And Realizing Investments In Eastern Europe A Case Study Analysis. Then audiences can move to those other interesting cars and trucks and drivers, if audiences delight in other race automobiles and motorists more than NASCAR. NASCAR could be having threat from its two direct competitors that is Formula 1 and Moto GP. They need to create competitive advantages for drivers so they do not shift to other competitors.
The provider power shows the variety of providers are available in market and what is the expense connected with supplier if company shifts from one provider to another. In this industry there is supply monopoly because drivers with needed skills and resources are restricted.
In the case of NASCAR clients are its viewers. Viewers can change to other rivals quickly since audiences will having low changing cost.
Risk of Replacement
Replacements are referred as alternatives. The alternatives in this case can be other home entertainment indicates like viewers can shift to other sports. There are large range of alternatives are offered in this circumstance which recommends that hazard of replacement is high.
Threat of New Entry
It is specified as how it is simple for any business to go into in that specific industry. When it comes to Identifying And Realizing Investments In Eastern Europe A Case Study Analysis hazard of new entry is low. Since if any business requires to enter in this company than they have to make heavy investments. They require to develop automobiles and racing tracks and likewise requires to pay substantial total up to drivers for changing.
As NASCAR is working in different markets so it requires to deal with different policies. It is also kept in mind that NASCAR has faced increased examination regarding regulatory. Every federal government has various priority so NASCAR has actually to be prepared for it as concern can be moved to other sector.
Financial elements consists of tax rate, currency exchange rate, economic performance 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 competitors can be affected. NASCAR can utilize capabilities of workers to develop new chances and improve existing chances.
Each has different social worths and standards. It helps in understanding concerning society and choice of customers.
Innovation has influence on practically every organisation. It includes development in service strategy. In this case of Identifying And Realizing Investments In Eastern Europe A Case Study Solution it can be noted that companies are heavily spending for research study and development. NASCAR ought to likewise deal with its media rights policy with Turner Broadcasting System.
Legal plays an important function in every country because every country has different legal conditions. Identifying And Realizing Investments In Eastern Europe A Case Study Analysis requires to be ensure that they safeguard their legal rights in every county so any company does not hurt to its legal rights.
Environmental elements are also important for every business. NASCAR needs to make sure that its vehicles are not producing contamination more than acceptable level.
7 P's of Marketing
The products of Identifying And Realizing Investments In Eastern Europe A Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to business marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race events tickets is based upon the location and significance of the racing occasions. Together with race events tickets, NASCAR likewise charge various service charge to its stakeholders and earns earnings. It charged sanctioning fees of $1-2 million per race on average in 2005.
Promotional technique of NASCAR 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.
NASCAR have its racing tracks in different cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto 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 grasp nationwide popularity.
Nestle individuals technique is comprised of offering much better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial element of Identifying And Realizing Investments In Eastern Europe A Case Study Solution 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, Occasion Organizers etc., all of which come under individuals strategy of NASCAR.
A number of business procedures are required to conduct racing events in an effective way. These procedures include; appropriate schedule of time, arrangement for spectators, selling tickets, arrangement of area for sponsors, managing logistics etc. These all processes contribute I developing NASCAR image, improving spectators experience and increasing fan base.
Essential physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing events. Along with it, its merchandising brands including tee shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.
Item Life Process Assessment.
The racing events by Identifying And Realizing Investments In Eastern Europe A Case Study Analysis was presented on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the first phase competition for NASCAR was low, as the competitors drove the cars and trucks comparable to the cars driven by normal people.
After performing its first race effectively the business moved towards developing its own tracks. The first Identifying And Realizing Investments In Eastern Europe A Case Study Solution based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards broadcasting its races on tv in 1979. The very first occasion relayed on television was flag-to-flag protection of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with international fan base. He initiated a brand-new period of financially rewarding sponsorships and tv contracts for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the business having wide range of income sources. The company has about 500 sponsors with broadcasting its events in about 150 countries. The business has large number of tracks in most of the cities of United States.
The significant causes of decline consist of the monetary crisis of 2008, which increased the cost of getting here at tracks for audiences due to increasing fuel prices, and the shifting of its fan base towards other sports.
The marketplace division of Identifying And Realizing Investments In Eastern Europe A Case Study Help can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Identifying And Realizing Investments In Eastern Europe A Case Solution is based upon the geographical presence of its tracks in different states and cities in United States, and the tv broadcasting of its events in different nations. The business has 23 tracks in about 20 states of America and has television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation provides the company regional along with international fan base.
The group 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 an average age of 47 years and an income around $30-50 thousands. However currently NASCAR is attempting to increase its target audience to the young growing population and kinds also. To increase the market sector of its market NASCAR ought to modify its marketing techniques to bring in more age groups and lower its costs to go into in the marketplace segment with a low average earnings.( htt1).
The mental qualities of the majority of the fans are quite similar. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races once in a week. 71% of them prefer to purchase products with a NASCAR trademark name. They are quite extrovert and want to mingle with other fans while racing. They desire quality racing with low cost at practical location. NASCAR has tried to increase the quality of its racing by introducing phase racing, they also have attempted to lower prices and make the event more practical by presenting live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the tv or by going in the events. Currently, the fans choice is towards watching the race at home on television rather than going, as the client experience at NASCAR tracks is not beneficial as well as costly.
One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has excellent potential 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.
Kids are also one of the possible target market sector for NASCAR, as they are more linked socially than other groups. Cars and truck racing games established by Identifying And Realizing Investments In Eastern Europe A Case Study Help can be a potential source of getting attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and enhancing its digital functions to bring in the kids target market.
Generation Y target audience consists of those who spent five times more resources on discretionary expenses i.e. acquiring tickets for racing occasions, than others. This huge expense makes the section capacity for NASCAR marketing technique of increasing its fan base. The marketplace segment is likewise easy to approach as 81% of the Y Generation consumer utilizes Facebook every day and the usage is two times of using television and radio. The market sector views sports as a get-together, rather than adherence to sport. The market sector thinks about NASCAR as an organization doing not have in developing a multiculturalism environment. Identifying And Realizing Investments In Eastern Europe A Case Study Help ought to take different actions to improve the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking choices concerning marketing. These 5 C's requirements to be evaluated properly for taking any marketing choice. These 5 C's stands for Environment, Company, Collaborators, Customers and Rivals.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE means political, economic, social, technical, ecological and legal and is mentioned above.
NASCAR is an auto racing company with having USP of high quality automobile racing with a worldwide structure. Its sector is sports group and events. Its target audience is males in the age group of 15-60 years. Business has closed corporate 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 every year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.
The client of Identifying And Realizing Investments In Eastern Europe A Case Study Solution are its viewers. 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 develop generational commitment.
Teams generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. These drivers can go against NASCAR if they got better opportunity in terms of rewards and tv direct exposure.
1. Establishing and Maintaining Facebook Page.
One of the prospective target markets segments for NASCAR is Hispanics which is the growing population segment of USA however sadly NASCAR had actually been not able to draw in the this targeted sector. It ought to establish a Facebook page including the details concerning the races and the areas of tracks to make the consumer useful about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Exhibit). The major reason behind it is that, the racers mainly play in groups and are unable to develop an essential account and keep a close contact with fans. The poor contacts with fans lead to less destination of audiences towards the racers and a low star power. Star power is a crucial aspect for drawing in viewers towards tracks and towards tv. The star power for the drivers at NASCARA could be enhanced by creating and upgrading accounts of key chauffeurs by NASCARA itself. This would get rid of the requirement of forcing chauffeurs to keep their accounts and would lead to increasing fans attention towards NASCARA drivers.
3. Developing New Games and enhancing present video games for kids.
Kids invested the majority of their time on playing video games and utilizing smartphones. However sadly, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less drawn in towards the sport. In order to bring in these kids, NASCARA must improve its present racing video games by presenting personalization in the cars and trucks i.e. altering colours, choice of speed, presenting group racing in the game, utilizing better graphics connected to the racing tracks and introducing numerous levels in the video game. All these adjustments in the present game would offer better experience to kids.
In addition to it, NASCAR needs to also construct new games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing between different animation characters with a choice of choosing the favourite animation character for the kids. These methods would allow the business to bring in one of its possible target segments.
4. Introducing multiculturalism at occasions.
Identifying And Realizing Investments In Eastern Europe A Case Study Solution occasions are comprised of fans with extremely few multiculturalism, due to cost of arrival in occasions, making it unsightly for the clients viewing sport events as affairs i.e. Generation Y consumers. As the Generation Y customers are a potential target market for NASCAR, therefore the company ought to take specific measures to attract this potential target market. It needs to adopt methods to draw in the customers far from the tracks location with various culture. The method to do so might be offering unique discounts on tickets or free 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 clients more pleased.
5. Improving Customer Experience at Tracks.
NASCAR ought to work on facilities and amenities at tracks due to the fact that on the race day viewers got disappointed. Audiences have numerous expectations from Identifying And Realizing Investments In Eastern Europe A Case Study Solution because in same market other companies are providing better services than NASCAR. IF NASCAR don't work on this problem then its fans might moved to its competitors.
Marketing Budget plan
Marketing budget made on the basis of the above strategies for the period of 5 years from 2011 to 2015, reveals the expense associated data for the marketing strategies. (See Appendix B). It can be seen that method 5 of improving client experience at tracks would need greatest preliminary financial investment and cost and method 4 of presenting multiculturalism will need lowest preliminary financial investment with most affordable further annually expense. The business must prioritize the resource allotment on these techniques on the basis of its offered resources and the possible advantages which the strategy would provide.
NOTE: The worths about cost are presumed on logical basis due the absence of figures and realities associated with cost in the case study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external factors of Identifying And Realizing Investments In Eastern Europe A Case Study Help causing the decline of television viewership rate and presence rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long term. These techniques would handle internal aspects like poor client experience at tracks, inadequate social media marketing, incapable digital medias like games, lack of culturalisms at tracks and so on, along with with external elements like moving of fans towards other sports, demographical modifications in America and changing family life styles.