Identifying And Realizing Investments In Eastern Europe B Case Study Solution & Analysis
Introduction
NASCAR (National Association for Stock Cars And Truck Car Racing) is a company conducting series of Stock Automobile racing in United States and acting as a sanctioning body for driving the rules for Stock Car Racing. 2) Stock Cars And Truck Racing by NASCAR is the second biggest viewer sport, with greatest number of sponsors. 1) The other sources of income for Identifying And Realizing Investments In Eastern Europe B Case Study Solution consists of; 10% of the overall revenue 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 method. This non collaborative approach brings tensions in the sport. The structure of Cars and truck of Tomorrow by Identifying And Realizing Investments In Eastern Europe B Case Study Analysis, with an objective of security for the motorists, brought various stress among the stakeholders of the sport.
The communication audit, carried out in 2010, revealed that despite the truth that the company highly rely on the interactions between its stakeholders, there was no recognizable business communication strategy. (
The audit pointed out numerous doing not have of NASCAR in terms of absence of internal combination, absence of fan management method and absence of digital and social media of marketing.
Identifying And Realizing Investments In Eastern Europe B Case Study Help viewers was extremely loyal to the sport and the brands associated 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 presence at racing tracks and rates of tv viewers. This can put a substantial influence on its incomes from sponsors, media rights, and from other sources of revenue.
Situational Analysis.
The company was quite successful till 2005 with its conventional marketing strategies, however quickly after 2005 the business begins dealing with various issues consisting of decrease of its fan base. A number of external as well as internal factors are responsible for the decline. Internal factors include; inadequate financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and produce generational commitment. The household system in America was changing resulting in reduction of impact of married male fan base over their youngsters. Together with it perceptions about cars and truck was likewise altering with perceiving vehicle a lorry to reach at point B from point A, instead of as an enjoyable project. Other difficulties for Identifying And Realizing Investments In Eastern Europe B Case Study Analysis 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, and so on. These all challenges were tending the company to modify its marketing strategies.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths specified as business's qualities which are various from its rivals. These are company's core proficiencies on which business efficiency or business success based on. Identifying And Realizing Investments In Eastern Europe B Case Study Solution core competencies includes it has rights of dictating rules as approving body. Regulations and rules concerning professional stock vehicle racing are dictated by NASCAR like if any team with required abilities and resources can participate in races by following guidelines and regulations dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to relay in more than 150 nations around the world with more than $56 million revenues. The primary sources of their earnings originate from television rights, approving charges, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and business sponsors. All the events of NASCAR are sponsored by corporates due to the fact that of greatest brand loyalty of fans toward brand names advertised by Identifying And Realizing Investments In Eastern Europe B Case Study Help. (See Appendix A).
Weaknesses.
Weaknesses of NASCAR includes its close culture which is non collective. Identifying And Realizing Investments In Eastern Europe B Case Study Analysis develops Cars and truck of Tomorrow without collaboration so result is that drivers did not like that idea. It was also discovered that NASCAR had no reliable technique for service communication.
Opportunities.
Opportunities in SWOT analysis are external aspects which can be beneficial to company or the external factors on which company is having competitive advantage. NASCAR usually utilized to depend on standard media sources like local paper for promotion of its sports. Normally these traditional media sources try to cover their home team and particular type of occasions. NASCAR also familiarized from these traditional media outlets that sport was hard to cover. Media landscape likewise changed from standard to digital landscape. Papers failed. NASCAR can deal with its abilities to get maximum possible benefits from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were also offered to Turner Sports. NASCAR used to get pay check of around $15 million yearly from Turner Sports. There are variety of cons behind this deal. For instance Identifying And Realizing Investments In Eastern Europe B Case Study Solution had to get approval from Turner Sport if it wish to create its Facebook page, twitter account and even mobile application. Turner Sport also had rights of each and every single video which is shoot during race at track. Then they are required to pay licensing costs to Turner Sport, if media sources like papers, magazines and cable channels want to post videos of races on their particular pages. NASCAR can work on conditions and terms and try to negotiate with Turner Sports to get maximum benefits of it. Star power plays really important role in creating incomes from every sport. It was noted that NASCAR is lagging in this area i.e. star power. For example when sports fans were asked concerning popular celebrities and stars then NASCAR chauffeur was not found even in top twenty actions. So NASCAR can put efforts in this location too for revenue generation. They need to assist their chauffeurs that how they can end up being sport stars. 4 tactical focuses which are created by research study team can likewise be acted as opportunity for NESCAR. These four strategic focuses compares and analysis Identifying And Realizing Investments In Eastern Europe B Case Study Analysis methods.
Hazards
Risks in SWOT analysis are specified as external aspects that can risk to company's success. Due to the fact that if there is economic down turn then people would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be risk for NASCAR. Earning of individuals would be effected and they would be more mindful in investing their loan. Economic down turn likewise results in increase fuel prices which likewise impacted NASCAR. Since fans of NASCAR used to attend its occasion from fars away. NESCAR had a rule of 65/25/10 for revenue distribution. 65 percent earnings from media rights would be distributed to race tracks, 25 percent revenue would be dispersed to contending team and remaining 10 percent would be kept by NESCAR which is approving body. Contending team wished to increase their part of earnings from 25 percent because of boost in running cost of a race group and likewise there is decrease in the variety of full-season sponsorship. NESCAR likewise deals with risks from other sponsors since they are making enormous investments to improve experience of fans. Which consists of updating existing avenues, building new opportunities, providing Wi-Fi facility and likewise offering other interactive mediums to communicate sports on mobile phones. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and develop generational loyalty. The obstacle is that the household system in America was changing resulting in decrease of influence of married male fan base over their youngsters. Together with it understandings about car was likewise altering with viewing cars and truck a vehicle to reach at point B from point A, rather than as a fun task. If NASCAR make substantial financial investments in brand-new sectors which are based on new clients then it may deal with negative comments from its core fan base, now.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is utilized to evaluate market in which company is working. It helps in determining what are strengths and weak point of any specific market. It recommend that every market is different from one another. Due to the fact that NASCAR's bottom line i.e. net profit is greatly depends on this, it is crucial to understand industry in which business is working. There are 5 forces that are used to identify success, strength and beauty of Identifying And Realizing Investments In Eastern Europe B Case Study Solution company.
Competitive Rivalry
These chauffeurs can go against NASCAR if they got better opportunity in terms of rewards and tv direct exposure. If viewers enjoy other race automobiles and drivers more than NASCAR then viewers can shift to those other intriguing vehicles and chauffeurs. NASCAR could be having hazard from its 2 direct competitors that is Solution 1 and Moto GP.
Supplier Power
If company shifts from one provider to another, the provider power suggests the number of suppliers are offered in industry and what is the cost associated with provider. Because drivers with needed skills and resources are limited, in this market there is supply monopoly.
Purchaser Power
In the case of NASCAR clients are its viewers. Viewers can switch to other competitors easily because audiences will having low switching cost.
Threat of Alternative
Substitutes are referred as options. The alternatives in this case can be other home entertainment indicates like audiences can shift to other sports. There are wide range of substitutes are offered in this situation which recommends that threat of replacement is high.
Hazard of New Entry
In the case of NASCAR threat of brand-new entry is low. They need to develop vehicles and racing tracks and likewise requires to pay hefty quantity to motorists for switching.
PESTEL Analysis
Political
As NASCAR is working in various markets so it needs to deal with different guidelines. It is likewise noted that NASCAR has faced increased examination concerning regulatory. Every federal government has various top priority so NASCAR has actually to be prepared for it as priority can be moved to other sector.
Affordable
Economic factors consists of tax rate, currency exchange rate, economic performance of that particular company, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be impacted if there is government intervention in the marketing and sales sector. NASCAR can utilize abilities of workers to produce brand-new chances and enhance existing opportunities.
Social
Each has different social values and standards. It helps in comprehending relating to society and choice of consumers.
Technical
Technology has impact on almost every company. It consists of development in company technique. In this case of Identifying And Realizing Investments In Eastern Europe B Case Study Solution it can be noted that companies are heavily spending for research and development. NASCAR ought to also deal with its media rights policy with Turner Broadcasting System.
Legal
Due to the fact that every country has different legal terms and conditions, Legal plays a crucial role in every country. Identifying And Realizing Investments In Eastern Europe B Case Study Analysis needs to be ensure that they protect their legal rights in every county so any business does not hurt to its legal rights.
Environmental
Environmental factors are also essential for every company. NASCAR needs to make sure that its cars and trucks are not generating contamination more than acceptable level.
7 P's of Marketing
Product
The products of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rate.
Rates technique of NASCAR for its race events tickets is based upon the location and importance of the racing occasions. Along with race occasions tickets, NASCAR also charge various service charge to its stakeholders and makes income. It charged approving costs of $1-2 million per race on average in 2005.
Promotion.
Promotional strategy of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
Location.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in the majority of the cities in United States to grasp nationwide appeal.
Individuals.
Nestle individuals strategy is comprised of supplying much better experience to its audiences, its fan base and to all of its stakeholders. People are an essential aspect of Identifying And Realizing Investments In Eastern Europe B Case Study Help A marketing method as its events are the source of entertainment for crowd. Its people strategy consists of efforts to offer much better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under people technique of NASCAR.
Procedures.
Numerous business processes are needed to perform racing events in an efficient way. These procedures include; proper schedule of time, plan for viewers, offering tickets, plan of area for sponsors, managing logistics and so on. These all procedures contribute I building NASCAR image, enhancing spectators experience and increasing fan base.
Physical Evidence.
Essential physical proofs for the NASCAR includes the existence of its racing tracks, stock cars and racing occasions. Together with it, its merchandising brand names including t-shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.
Product Life Process Assessment.
The racing occasions by Identifying And Realizing Investments In Eastern Europe B 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 very first stage competition for NASCAR was low, as the rivals drove the cars similar to the cars and trucks driven by normal people.
Growth.
The very first NASCAR based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the company moved towards broadcasting its races on tv in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he changed NASCAR from a regional Sport popular organization into one with global fan base. He started a new age of financially rewarding sponsorships and tv agreements for NASCAR.
Maturity.
The maturity duration for NASCAR started with the efforts of William France Jr., with the business having wide variety of earnings sources. The company has about 500 sponsors with transmitting its occasions in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
Decline.
The major causes of decline consist of the monetary crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.
Market Segmentation.
The market division of Identifying And Realizing Investments In Eastern Europe B Case Study Solution can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographic.
The geographical segmentation of Identifying And Realizing Investments In Eastern Europe B Case Help is based upon the geographical existence of its tracks in different states and cities in United States, and the tv broadcasting of its occasions in different countries. The business has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation provides the company regional along with worldwide fan base.
Market.
The demographic division of Identifying And Realizing Investments In Eastern Europe B Case Study Help is also highlydiverse based upon the gender, earnings and age of the customer. To increase the group segment of its market NASCAR need to modify its marketing strategies to attract more age groups and lower its prices to go into in the market section with a low average income.
Psychographic.
NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to purchase tickets and see the races when in a week. NASCAR has attempted to increase the quality of its racing by presenting stage racing, they likewise have attempted to lower prices and make the event more convenient by presenting live racing.
Behavioural.
Behavioural segmentation of Identifying And Realizing Investments In Eastern Europe B Case Study Help is based upon the behaviour of fans in terms of seeing the race survive on the tv or by entering the events. Currently, the fans preference is towards watching the race in your home on tv rather than going, as the customer experience at NASCAR tracks is not beneficial in addition to pricey. This preference makes the rates for presence lower than the rates for tv viewers. NASCAR needs to alter the behaviour of its fan base by presenting qualitative services at its tracks.
Target Market.
Hispanics.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market section 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 section has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids.
Kids are likewise one of the prospective target audience section for NASCAR, as they are more linked socially than other groups. Creating fan base amongst kids can offer a prospective boost in the number of fans for racing due to their connection. Kids spend the majority of their times in playing and using mobile phones video games. Automobile racing video games established by Identifying And Realizing Investments In Eastern Europe B Case Study Analysis can be a prospective 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 functions to bring in the kids target audience.
Generation Y.
Generation Y target market consists of those who invested 5 times more resources on discretionary expenditures i.e. buying tickets for racing occasions, than others. This big expense makes the segment potential for NASCAR marketing technique of increasing its fan base. The marketplace sector is also simple to method as 81% of the Y Generation consumer uses Facebook the use and every day is two times of using tv and radio. The marketplace section views sports as a get-together, instead of adherence to sport. The market segment thinks about NASCAR as an organization doing not have in creating a multiculturalism environment. Identifying And Realizing Investments In Eastern Europe B Case Study Solution needs to take numerous 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. These 5 C's needs to be evaluated effectively for taking any marketing decision. These 5 C's mean Climate, Company, Collaborators, Competitors and consumers.
Climate/Context.
It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, economic, social, technical, legal and environmental and is stated above.
Company.
NASCAR is an auto racing company with having USP of high quality car racing with a global structure. Its sector is sports group and occasions. Its target audience is males in the age of 15-60 years. Business has closed corporate culture and having non-interventionist method.
Cooperations.
Collaborations consists of distributors, providers and alliances of NASCAR. NASCAR used 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.
Customers.
The customer of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and produce generational commitment.
Competitors.
Teams normally represents sponsors in NASCAR and the medium of advertising is chauffeurs. These chauffeurs can go versus NASCAR if they got better opportunity in terms of prizes and tv exposure.
Marketing Techniques.
1. Keeping and developing Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population section of U.S.A. but sadly NASCAR had actually been unable to attract the this targeted segment. In order to draw in the young growing generation the NASCAR ought to market by utilizing social media like Facebook. It ought to develop a Facebook page including the info relating to the races and the areas of tracks to make the consumer useful about the core operations of Identifying And Realizing Investments In Eastern Europe B Case Study Analysis. It needs to likewise upgrade its Facebook page on everyday basis to provide details about its upcoming occasions. This would make the target market section more informative about the business and would lead to bring in large fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
Identifying And Realizing Investments In Eastern Europe B Case Study Solution motorists has a low star power as compare to players of other sports. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an essential element for drawing in audiences towards tracks and towards television.
3. Developing New Games and enhancing existing video games for kids.
In order to attract these kids, NASCARA needs to enhance its existing racing video games by introducing customization in the automobiles i.e. changing colours, selection of speed, introducing group racing in the video game, utilizing better graphics related to the racing tracks and presenting various levels in the video game. All these modifications in the current game would supply better experience to kids.
Together with it, NASCAR needs to also develop new video games connected to racing like kids racing with kids characters as motorists, cartoon racing with racing between different cartoon characters with an option of selecting the favourite cartoon character for the kids. These strategies would allow the business to attract among its prospective target sections.
4. Introducing multiculturalism at occasions.
Identifying And Realizing Investments In Eastern Europe B Case Study Solution occasions are consisted of fans with extremely few multiculturalism, due to expense of arrival in events, making it unsightly for the consumers perceiving sport events as affairs i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, for that reason the company must take certain steps to attract this potential target market. It needs to embrace techniques to bring in the clients far from the tracks place with various culture. The method to do so could be offering special discounts on tickets or totally free tickets to audiences originating from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y clients more pleased.
5. Improving Customer Experience at Tracks.
Identifying And Realizing Investments In Eastern Europe B Case Study Solution needs to work on infrastructure and amenities at tracks because on the race day audiences got disappointed. Because in exact same market other companies are offering much better services than NASCAR, audiences have many expectations from Identifying And Realizing Investments In Eastern Europe B Case Study Analysis. IF NASCAR don't deal with this issue then its fans may moved to its rivals. According to fans there were not appropriate centers were available as compare to other sports companies. NASCAR must make sure that it provide adequate facilities that includes cleaned up bathrooms, comfortable seating arrangement. They should likewise provide WIFI services and accessibility of charge card throughout that track. It needs to be also make sure that there are enough jumbo turns positioned at all required places. There ought to be also food stalls that provide quality food to viewers. In this method viewers will be having enjoyable experience at the day of event. (See Appendix B).
Marketing Spending plan
Marketing spending plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, shows the expense related data for the marketing strategies. It can be seen that strategy 5 of improving customer experience at tracks would need greatest initial investment and cost and technique 4 of presenting multiculturalism will require lowest preliminary investment with lowest even more per year cost.
NOTE: The values about cost are presumed on rational basis due the absence of truths and figures associated with cost in the case study. Inflation rate of United States is presumed to be 10%.
Suggestions.
On the basis of deep analysis of the internal and external elements of Identifying And Realizing Investments In Eastern Europe B Case Study Help causing the decline of television viewership rate and participation rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long term. These strategies would handle internal elements like bad customer experience at tracks, inadequate social media marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, as well as with external aspects like moving of fans towards other sports, demographical modifications in America and changing family life styles.
