Identifying And Realizing Investments In Eastern Europe B Case Study Solution and Analysis
NASCAR (National Association for Stock Vehicle Vehicle Racing) is a company carrying out series of Stock Vehicle racing in United States and acting as an approving body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Cars And Truck Racing by NASCAR is the second largest viewer sport, with greatest number of sponsors. 1) The other sources of earnings for Identifying And Realizing Investments In Eastern Europe B Case Study Solution includes; 10% of the total earnings from tv rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist method. This non collective approach brings tensions in the sport. The structure of Automobile of Tomorrow by Identifying And Realizing Investments In Eastern Europe B Case Study Analysis, with an intention of safety for the chauffeurs, brought various stress amongst the stakeholders of the sport.
The interaction audit, carried out in 2010, revealed that despite the truth that business extremely count on the communications between its stakeholders, there was no recognizable service interaction method. The market's target clients, direction and goals were all unknown.
The audit pointed out numerous doing not have of NASCAR in regards to absence of internal integration, absence of fan management strategy and lack of social and digital media of marketing. The company has intricate ecosystem with independent tracks, teams and drivers. This structure with closed corporate culture bring numerous challenges in speeding up a modification. Other partners in ecosystem includes the media networks i.e. tv and radio, and business marketers.
Identifying And Realizing Investments In Eastern Europe B Case Study Solution audiences was highly loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate online marketers.
The company is currently facing the problem of decreasing rates of participation at racing tracks and rates of television audiences. This can put a significant influence on its incomes from sponsors, media rights, and from other sources of revenue.
Although the business was rather successful till 2005 with its traditional marketing methods, however soon after 2005 the business starts facing numerous issues consisting of decline of its fan base. Several external in addition to internal factors are responsible for the decline. Internal aspects include; inadequate financial investment in social media 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 create generational commitment. The family system in America was changing resulting in decrease of influence of married male fan base over their children. Together with it perceptions about automobile was likewise altering with viewing car an automobile to reach at point B from point A, instead of as a fun project. Other difficulties for Identifying And Realizing Investments In Eastern Europe B Case Study Help 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. These all obstacles were tending the company to revise its marketing strategies.
NASCAR core competencies includes it has rights of dictating rules as sanctioning body. Guidelines and policies concerning expert stock automobile racing are dictated by NASCAR like if any group with needed abilities and resources can get in into races by following rules and guidelines determined by NASCAR. All the occasions of NASCAR are sponsored by corporates since of most significant brand loyalty of fans towards brand names advertised by Identifying And Realizing Investments In Eastern Europe B Case Study Analysis.
Weak Points in SWOT Analysis are thought about as external factors. Weak points includes the factors that stops company to carry out at needed level of performance. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist technique. They typically utilized to form rules and other needed processes without intervention of others which leads to bad partnership. NASCAR establishes Vehicle of Tomorrow without cooperation so result is that drivers did not like that concept. As this is racing sport so covering of sports by media is also difficult. It was likewise found that NASCAR had no reliable strategy for company interaction. If it took place off track, they do not understand how to manage issue. Inadequate company communication results in that they don't have clear instructions for their long term goals. They do not know that where they wish to see this sport in future.
NASCAR usually used to rely on conventional media sources like local newspaper for promotion of its sports. NASCAR also came to know from these standard media outlets that sport was difficult to cover. When sports fans were asked relating to popular stars and stars then NASCAR motorist was not found even in top twenty reactions.
Risks in SWOT analysis are specified as external aspects that can danger to company's success. Due to the fact that if there is financial down turn then individuals would be having less return on investment, Economic down turn was experienced in late 2000 which can be hazard for NASCAR. Earning of people would be effected and they would be more mindful in investing their loan. Economic down turn also results in boost fuel rates which likewise affected NASCAR. Due to the fact that fans of NASCAR used to attend its occasion from cross countries. NESCAR had a rule of 65/25/10 for profits distribution. 65 percent incomes from media rights would be distributed to race tracks, 25 percent profits would be dispersed to competing team and staying 10 percent would be maintained by NESCAR which is sanctioning body. Completing group wanted to increase their part of earnings from 25 percent because of increase in operating expense of a race group and likewise there is decline in the variety of full-season sponsorship. NESCAR likewise deals with dangers from other sponsors due to the fact that they are making massive financial investments to improve experience of fans. For instance which includes upgrading existing avenues, developing brand-new opportunities, supplying Wi-Fi facility and likewise supplying 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 youngsters and create generational commitment. So the difficulty is that the household system in America was altering resulting in reduction of impact of married male fan base over their children. Along with it perceptions about car was also altering with perceiving vehicle a car to reach at point B from point A, instead of as a fun project. Now if Identifying And Realizing Investments In Eastern Europe B Case Study Solution make considerable investments in new sectors which are based on new consumers then it may deal with unfavorable remarks from its core fan base.
Porter's Five Forces Analysis
It is important to understand market in which company is working since NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are used to recognize profitability, intensity and beauty of NASCAR service.
These motorists can go against NASCAR if they got better opportunity in terms of prizes and tv exposure. If audiences enjoy other race cars and trucks and chauffeurs more than NASCAR then viewers can shift to those other fascinating automobiles and chauffeurs. NASCAR might be having threat from its two direct rivals that is Formula 1 and Moto GP.
The provider power indicates the number of providers are readily available in market and what is the expense connected with provider if business shifts from one provider to another. In this industry there is supply monopoly since chauffeurs with required abilities and resources are limited.
This force is regarding to customers that is it easy for consumers to move to other products. Then customers are less likely to switch, if there is more switching cost is associated. When it comes to NASCAR consumers are its audiences. Viewers can switch to other rivals easily because viewers will having low switching cost.
Hazard of Substitution
Alternatives are referred as alternatives. The replacements in this case can be other entertainment means like viewers can move to other sports. There are wide variety of replacements are offered in this circumstance which suggests that hazard of replacement is high.
Danger of New Entry
It is defined as how it is easy for any company to enter in that specific industry. In the case of Identifying And Realizing Investments In Eastern Europe B Case Study Solution threat of new entry is low. If any company requires to go into in this company than they have to make heavy financial investments, due to the fact that. They require to develop automobiles and racing tracks and also needs to pay substantial amount to drivers for changing.
As NASCAR is working in numerous markets so it requires to face different policies. It is also kept in mind that NASCAR has actually dealt with increased scrutiny regarding regulatory. Every federal government has different concern so NASCAR has to be prepared for it as concern can be moved to other sector.
Financial elements consists of tax rate, exchange rate, economic efficiency of that specific 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 take advantage of abilities of workers to create brand-new opportunities and improve existing chances.
Every society is various from each other. Each has different social values and norms. It assists in understanding concerning society and preference of consumers. Social factors consists of traditions, culture, attitudes towards particular product and services, demographics, norms, interests etc. It can be concluded that advertising through other methods rather than standard (i.e. newspaper) can be preferred in this society.
Innovation has effect on nearly every service. It includes development in company method. In this case of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis it can be noted that business are heavily spending for research and advancement. NASCAR should likewise deal with its media rights policy with Turner Broadcasting System.
Legal plays a crucial function in every country since every country has various legal conditions. Identifying And Realizing Investments In Eastern Europe B Case Study Solution requires to be make sure that they safeguard their legal rights in every county so any business does not harm to its legal rights.
Environmental factors are likewise essential for every company. NASCAR requires to make sure that its cars and trucks are not producing pollution more than acceptable level.
7 P's of Marketing
The products of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Prices strategy of NASCAR for its race events tickets is based upon the venue and significance of the racing occasions. Along with race events tickets, NASCAR also charge different service charge to its stakeholders and makes profits. For instance it charged sanctioning fees of $1-2 million per race on average in 2005.
Advertising strategy of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in various cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to comprehend across the country popularity.
Nestle individuals technique is consisted of providing much better experience to its viewers, its fan base and to all of its stakeholders. People are an important aspect of Identifying And Realizing Investments In Eastern Europe B Case Study Help A marketing strategy as its occasions are the source of entertainment for crowd. Its people method consists of efforts to supply better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under people strategy of NASCAR.
Several organisation procedures are required to carry out racing events in an effective way. These procedures include; appropriate schedule of time, plan for viewers, selling tickets, plan of area for sponsors, handling logistics and so on. These all processes contribute I constructing NASCAR image, improving spectators experience and increasing fan base.
Most important physical evidences for the NASCAR includes the existence of its racing tracks, stock cars and trucks and racing events. Along with it, its merchandising brands including tee shirts, caps, goodies etc., also act as a physical proof for NASCAR.
Item Life Cycle Assessment.
The racing events by Identifying And Realizing Investments In Eastern Europe B Case Study Solution was introduced on June 19, 1949. The very 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 competition for NASCAR was low, as the competitors drove the vehicles comparable to the cars driven by common individuals.
The very first NASCAR based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards broadcasting its races on television in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a local Sport popular company into one with worldwide fan base. He initiated a new period of rewarding sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having large range of income sources. The business has about 500 sponsors with broadcasting its occasions in about 150 countries. The business has a great deal of tracks in the majority of the cities of United States.
The major causes of decrease consist of the financial crisis of 2008, which increased the expense of arriving at tracks for viewers due to increasing fuel costs, and the moving of its fan base towards other sports.
The market segmentation of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Identifying And Realizing Investments In Eastern Europe B Case Solution is based upon the geographical presence of its tracks in different 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 numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation offers the business local as well as worldwide fan base.
The demographic segmentation of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis is likewise highlydiverse based upon the gender, income and age of the customer. To increase the demographic section of its market NASCAR ought to revise its marketing methods to attract more age groups and lower its prices to enter in the market sector with a low typical income.
NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to acquire tickets and see the races once in a week. NASCAR has actually tried to increase the quality of its racing by presenting stage racing, they also have actually attempted to lower prices and make the occasion more practical by introducing live racing.
Behavioural division 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. Presently, the fans choice is towards enjoying the race at house on television rather than going, as the client experience at NASCAR tracks is not beneficial as well as costly.
One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market section has great possible for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are also one of the prospective target market sector for NASCAR, as they are more connected socially than other groups. Cars and truck racing video games developed by Identifying And Realizing Investments In Eastern Europe B Case Study Analysis can be a possible source of getting attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and enhancing its digital features to attract the kids target market.
This huge expenditure makes the segment potential for NASCAR marketing strategy of increasing its fan base. The market segment considers NASCAR as a company lacking in creating a multiculturalism environment. NASCAR should take various steps to enhance the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking decisions concerning marketing. These 5 C's requirements to be evaluated appropriately for taking any marketing choice. These 5 C's represent Environment, Business, Collaborators, Clients and Competitors.
It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE represents political, economic, social, technical, legal and ecological and is stated above.
NASCAR is a vehicle racing company with having USP of high quality auto racing with an international structure. Its sector is sports team and events. Its target audience is males in the age of 15-60 years. Company has actually closed business culture and having non-interventionist method.
Collaborations includes distributors, providers and alliances of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis. It is collaborated with various racing teams which are participating in racing. It also worked together with Turners Sport for digital rights. NASCAR used to make money check of around $15 million every year from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track.
The consumer of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis are its audiences. They target clients with having age of 15-60 years. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and produce generational loyalty.
Groups normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. These motorists can go against NASCAR if they got better opportunity in terms of rewards and television exposure.
1. Keeping and establishing Facebook Page.
One of the prospective target markets sections for NASCAR is Hispanics which is the growing population segment of USA but regrettably NASCAR had been unable to draw in the this targeted segment. It needs to develop a Facebook page consisting of the info concerning the races and the places of tracks to make the customer informative about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Display). The significant factor behind it is that, the racers primarily play in teams and are not able to construct an essential account and keep a close contact with fans. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is a crucial aspect for attracting viewers towards tracks and towards television. The star power for the drivers at NASCARA could be improved by developing and updating accounts of key drivers 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 improving current video games for kids.
Kids spent the majority of their time on playing games and using smart devices. 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 attract these kids, NASCARA should enhance its existing racing video games by introducing modification in the vehicles i.e. changing colours, selection of speed, presenting group racing in the video game, using better graphics connected to the racing tracks and presenting various levels in the game. All these adjustments in the existing video game would offer better experience to kids.
In addition to it, NASCAR ought to also construct brand-new games associated with racing like kids racing with kids characters as drivers, animation racing with racing between various animation characters with a choice of picking the preferred animation character for the kids. These strategies would enable the business to bring in among its potential target sectors.
4. Presenting multiculturalism at occasions.
Identifying And Realizing Investments In Eastern Europe B Case Study Solution occasions are consisted of fans with extremely couple of cultural diversity, due to expense of arrival in occasions, making it unsightly for the customers perceiving sport occasions as get-togethers i.e. Generation Y consumers. As the Generation Y customers are a prospective target market for NASCAR, therefore the company should take specific steps to attract this potential target market. It needs to embrace techniques to attract the consumers far from the tracks area with different culture. The technique to do so might be offering unique discounts on tickets or free tickets to audiences coming from a particular distance or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more pleased.
5. Improving Client Experience at Tracks.
NASCAR ought to work on facilities and amenities at tracks due to the fact that on the race day viewers got dissatisfied. Audiences have numerous expectations from Identifying And Realizing Investments In Eastern Europe B Case Study Solution since in very same market other companies are providing much better services than NASCAR. IF NASCAR do not work on this concern then its fans may moved to its competitors.
Marketing Budget plan.
Marketing budget plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the expense related information for the marketing methods. (See Appendix B). It can be seen that method 5 of enhancing customer experience at tracks would need highest preliminary investment and cost and strategy 4 of presenting multiculturalism will require most affordable initial financial investment with lowest even more each year cost. The business must prioritize the resource allotment on these techniques on the basis of its readily available resources and the prospective benefits which the method would provide.
NOTE: The values about expense are presumed on rational basis due the absence 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 elements of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis triggering the decrease of tv viewership rate and participation rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long run. These techniques would manage internal aspects like bad customer experience at tracks, inadequate social media marketing, incapable digital medias like games, lack of culturalisms at tracks and so on, in addition to with external factors like moving of fans towards other sports, demographical changes in America and changing domesticity styles.