International Speedway Corporation Case Study Solution & Analysis
International Speedway Corporation Case Study Solution (National Association for Stock Automobile Car Racing) is an organization conducting series of Stock Vehicle racing in United States and serving as a sanctioning body for driving the rules for Stock Vehicle Racing. The organization was founded in 1947, by "Huge Bill" France. NASCAR arrange Stock Cars and truck Racing occasions in United States with the presence of about 130000 audiences typically in 2005. It likewise transmitted its occasions in about 150 countries. Stock Vehicle Racing by NASCAR is the second largest viewer sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of revenue for International Speedway Corporation Case Study Help includes; 10% of the total profits from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. The structure of Automobile of Tomorrow by NASCAR, with an intention of safety for the drivers, brought different stress among the stakeholders of the sport.
The communication audit, carried out in 2010, revealed that in spite of the fact that the business highly rely on the communications in between its stakeholders, there was no recognizable company communication method. (
The audit explained various doing not have of NASCAR in terms of lack of internal integration, absence of fan management strategy and lack of digital and social media of marketing. The company has complicated community with independent tracks, groups and drivers. This structure with closed corporate culture bring various obstacles in accelerating a change. Other partners in environment includes the media networks i.e. tv and radio, and business marketers.
International Speedway Corporation Case Study Solution audiences was highly loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business marketers.
The business is presently facing the issue of decreasing rates of presence at racing tracks and rates of tv audiences. This can put a substantial impact on its profits from sponsors, media rights, and from other sources of earnings.
The company was rather successful till 2005 with its traditional marketing techniques, however quickly after 2005 the company begins facing different problems consisting of decrease of its fan base. Numerous external along with internal elements are responsible for the decrease. Internal elements include; inadequate investment in social media and other digital medias of.
Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and create generational commitment. The family system in America was altering resulting in reduction of influence of married male fan base over their children. In addition to it perceptions about automobile was also changing with perceiving vehicle a vehicle to reach at point B from point A, instead of as an enjoyable task. Other obstacles for International Speedway Corporation Case Study Analysis consists of the shift of its fans to other sports as they were improving their fan's experience allowing access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc. These all challenges were tending the company to modify its marketing techniques.
NASCAR core proficiencies includes it has rights of dictating rules as sanctioning body. Regulations and rules regarding professional stock car racing are determined by NASCAR like if any group with required abilities and resources can enter into races by following rules and policies dictated by NASCAR. All the occasions of NASCAR are sponsored by corporates due to the fact that of greatest brand commitment of fans towards brand names promoted by International Speedway Corporation Case Study Solution.
Weak Points in SWOT Analysis are thought about as external factors. Weaknesses consists of the elements that stops company to carry out at needed level of effectiveness. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist approach. They generally used to form rules and other required procedures without intervention of others which results in poor collaboration. For example NASCAR establishes Car of Tomorrow without collaboration so result is that chauffeurs did not like that idea. As this is racing sport so covering of sports by media is also challenging. It was also discovered that NASCAR had no efficient method for business communication. They don't understand how to handle problem if it took place off track. Inadequate company interaction leads to that they don't have clear direction for their long term goals. They do not understand that where they wish to see this sport in future.
NASCAR generally utilized to rely on conventional media sources like regional paper for publicity of its sports. NASCAR also came to understand from these traditional media outlets that sport was challenging to cover. When sports fans were asked regarding popular stars and stars then NASCAR chauffeur was not discovered even in leading twenty responses.
Threats in SWOT analysis are defined as external elements that can risk to company's success. Since if there is financial down turn then people would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be danger for NASCAR. Earning of individuals would be effected and they would be more mindful in investing their cash. Economic down turn also results in boost fuel costs which likewise affected NASCAR. Due to the fact that fans of NASCAR utilized to attend its event from long distances. NESCAR had a guideline of 65/25/10 for earnings circulation. 65 percent profits from media rights would be dispersed to race tracks, 25 percent income would be distributed to contending group and staying 10 percent would be maintained by NESCAR which is sanctioning body. Completing group wanted to increase their portion of profits from 25 percent since of boost in operating cost of a race team and likewise there is decline in the variety of full-season sponsorship. Since they are making enormous financial investments to improve experience of fans, nescar likewise deals with dangers from other sponsors. Which includes updating existing opportunities, building brand-new opportunities, offering Wi-Fi center and also offering other interactive mediums to engage 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 difficulty is that the household system in America was altering resulting in reduction of impact of married male fan base over their children. In addition to it perceptions about vehicle was also altering with viewing cars and truck an automobile to reach at point B from point A, rather than as a fun task. Now if International Speedway Corporation Case Study Analysis make significant financial investments in new sections which are based on brand-new consumers then it may deal with unfavorable remarks from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a design that is used to analyse industry in which company is working. It assists in identifying what are strengths and weakness of any particular market. It recommend that every market is various from one another. It is very important to comprehend market in which business is working because NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are utilized to recognize success, strength and appearance of International Speedway Corporation Case Study Solution company.
This force shows ability of competitors. Teams usually represents sponsors in NASCAR and the medium of advertising is drivers. It can be said that motorists and race cars are rivals. If they got better opportunity in terms of rewards and tv exposure, these drivers can go versus International Speedway Corporation Case Study Solution. If audiences take pleasure in other race cars and trucks and chauffeurs more than NASCAR then viewers can shift to those other interesting automobiles and drivers. NASCAR could be having risk from its two direct rivals that is Formula 1 and Moto GP. They need to produce competitive benefits for drivers so they do not shift to other rivals.
If business shifts from one provider to another, the supplier power suggests the number of suppliers are offered in market and what is the expense associated with supplier. Because motorists with needed resources and abilities are limited, in this industry there is supply monopoly.
This force is concerning to consumers that is it simple for clients to move to other items. If there is more switching cost is associated then consumers are less most likely to change. When it comes to NASCAR customers are its audiences. Audiences can change to other competitors quickly since audiences will having low switching expense.
Threat of Replacement
Substitutes are referred as options. The replacements in this case can be other home entertainment means like audiences can move to other sports. There are broad variety of substitutes are offered in this situation which recommends that hazard of alternative is high.
Risk of New Entry
It is specified as how it is easy for any company to go into in that specific market. In the case of International Speedway Corporation Case Study Solution danger of brand-new entry is low. If any company needs to enter in this organisation than they have to make heavy investments, due to the fact that. They need to construct automobiles and racing tracks and likewise needs to pay large total up to motorists for switching.
As NASCAR is working in numerous markets so it requires to deal with different guidelines. It is also kept in mind that NASCAR has dealt with increased analysis regarding regulative. Every federal government has different concern so NASCAR has actually to be prepared for it as top priority can be shifted to other sector.
Economic elements consists of tax rate, exchange rate, financial efficiency of that specific business, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can leverage abilities of employees to develop brand-new chances and improve existing chances.
Each has various social values and norms. It assists in comprehending regarding society and preference of clients.
In this case of NASCAR it can be noted that companies are heavily investing for research study and development. NASCAR must also work on its media rights policy with Turner Broadcasting System.
Legal plays an important function in every country because every nation has various legal terms. International Speedway Corporation Case Study Analysis requires to be make sure that they protect their legal rights in every county so any company does not hurt to its legal rights.
Environmental aspects are likewise crucial for each organisation. Since usually federal governments do not enable those service which can damage to environment. These environmental elements consists of laws regarding pollution, climate modification, safe garbage disposal, policies relating to insurance and so on. NASCAR needs to make certain that its cars and trucks are not creating pollution more than acceptable level.
7 P's of Marketing
The items of International Speedway Corporation Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race occasions tickets is based upon the location and importance of the racing occasions. Along with race occasions tickets, NASCAR also charge various service fees to its stakeholders and makes income. It charged approving costs of $1-2 million per race on average in 2005.
Advertising 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 various cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to comprehend across the country appeal.
Nestle people strategy is comprised of providing much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important aspect of International Speedway Corporation Case Study Help A marketing strategy as its events are the source of entertainment for crowd. Its individuals method includes efforts to supply better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under people strategy of NASCAR.
Several business processes are required to perform racing events in an effective way. These procedures consist of; proper schedule of time, plan for spectators, offering tickets, plan of area for sponsors, managing logistics and so on. These all processes contribute I building NASCAR image, improving viewers experience and increasing fan base.
Essential physical evidences for the NASCAR consists of the presence of its racing tracks, stock cars and racing events. In addition to it, its merchandising brands including tee shirts, caps, goodies etc., also function as a physical evidence for NASCAR.
Item Life Cycle Evaluation.
The racing occasions by NASCAR was introduced on June 19, 1949. At the first phase competition for NASCAR was low, as the competitors drove the cars similar to the cars driven by ordinary people.
The first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the business 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 organization into one with global fan base. He initiated a new period of profitable 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 earnings sources. The business has about 500 sponsors with broadcasting its events in about 150 countries. The business has a great deal of tracks in the majority of the cities of United States.
The decline in the company's offerings started after 2005 with average participation rate per race declined by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major causes of decline consist of the financial crisis of 2008, which increased the expense of getting to tracks for audiences due to increasing fuel costs, and the moving of its fan base towards other sports.
The marketplace segmentation of International Speedway Corporation Case Study Analysis can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of International Speedway Corporation Case Analysis 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 numerous nations. The company has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division supplies the company regional along with global fan base.
The group division of International Speedway Corporation Case Study Analysis is likewise highlydiverse based upon the gender, income and age of the consumer. To increase the group sector of its market NASCAR should modify its marketing methods to draw in more age groups and lower its rates to go into in the market sector with a low typical income.
NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to purchase tickets and see the races once in a week. NASCAR has actually attempted to increase the quality of its racing by introducing stage racing, they also have tried to lower rates and make the event more practical by introducing live racing.
Behavioural division of International Speedway Corporation Case Study Help is based upon the behaviour of fans in terms of viewing the race survive on the tv or by going in the events. Presently, the fans choice is towards seeing the race in your home on tv rather than going, as the client experience at NASCAR tracks is not beneficial along with pricey. This choice makes the rates for presence lower than the rates for tv audiences. NASCAR needs to change the behaviour of its fan base by introducing qualitative services at its tracks.
One of the potential target market of International Speedway Corporation Case Study Solution was Hispanics; the young and growing population of United States. The marketplace segment has great possible for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the section reveals affinity with car culture, but need a more concentrated marketing towards welcoming the segment towards racing.
Kids are likewise one of the possible target market segment for NASCAR, as they are more linked socially than other groups. Car racing games developed by International Speedway Corporation Case Study Solution can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and improving its digital features to bring in the kids target market.
Generation Y target market includes those who spent five times more resources on discretionary costs i.e. buying tickets for racing events, than others. This substantial expense makes the segment capacity for NASCAR marketing technique of increasing its fan base. The marketplace segment is also 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 marketplace sector views sports as an affair, rather than adherence to sport. The market segment considers NASCAR as a company lacking in creating a multiculturalism environment. International Speedway Corporation Case Study Help should take numerous steps to improve the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions regarding 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, legal and environmental and is stated above.
International Speedway Corporation Case Study Help is a vehicle racing business with having USP of high quality automobile racing with an international structure. Its sector is sports team and occasions.
Collaborations includes distributors, providers 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 produce its Facebook page, twitter account or even mobile application.
The client of International Speedway Corporation Case Study Help are its audiences. They target consumers 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 youngsters and develop generational commitment.
The direct rivals of NASCAR are Formula 1 and Moto GP. Groups typically represents sponsors in NASCAR and the medium of advertising is drivers. It can be stated that drivers and race cars are competitors. If they got much better chance in terms of prizes and tv exposure, these drivers can go versus NASCAR.
1. Maintaining and establishing Facebook Page.
One of the prospective target markets segments for NASCAR is Hispanics which is the growing population sector of U.S.A. however sadly NASCAR had been not able to draw in the this targeted sector. It ought to develop a Facebook page consisting of the details relating to the races and the areas of tracks to make the customer informative about the core operations of NASCAR.
2. Developing and Updating Accounts of Secret Drivers.
International Speedway Corporation Case Study Analysis motorists has a low star power as compare to gamers of other sports. The poor contacts with fans result in less tourist attraction of audiences towards the racers and a low star power. Star power is a crucial element for attracting audiences towards tracks and towards television.
3. Developing New Games and improving existing video games for kids.
Kids spent most of their time on playing games and using mobile phones. Unfortunately, kids playing NASCARA have a worst experience of playing its video games. As a result, they are less attracted towards the sport. In order to draw in these kids, NASCARA must improve its current racing games by presenting personalization in the vehicles i.e. altering colours, selection of speed, introducing group racing in the video game, utilizing better graphics associated with the racing tracks and introducing numerous levels in the video game. All these adjustments in the existing game would offer much better experience to kids.
Together with it, NASCAR should likewise build brand-new games related to racing like kids racing with kids characters as motorists, animation racing with racing between different cartoon characters with an option of selecting the preferred cartoon character for the kids. These methods would allow the company to bring in one of its prospective target sectors.
4. Presenting multiculturalism at events.
NASCAR occasions are made up of fans with extremely couple of cultural diversity, due to cost of arrival in events, making it unappealing for the customers perceiving sport events as social events i.e. Generation Y clients. As the Generation Y clients are a possible target market for NASCAR, therefore the business needs to take specific steps to attract this possible target market.
5. Improving Client Experience at Tracks.
Since on the race day audiences got disappointed, NASCAR ought to work on infrastructure and features at tracks. Because in very same market other business are providing better services than NASCAR, audiences have many expectations from International Speedway Corporation Case Study Analysis. Then its fans may moved to its rivals, if NASCAR don't work on this concern. According to fans there were not sufficient centers were readily available as compare to other sports suppliers. NASCAR needs to make sure that it offer appropriate facilities that consists of cleaned bathrooms, comfy seating plan. They must likewise offer WIFI services and accessibility of credit cards throughout that track. It must be also make sure that there are enough jumbo turns put at all needed locations. There ought to be likewise food stalls that offer quality food to viewers. In this method viewers will be having pleasant experience at the day of event. (See Appendix B).
Marketing Spending plan
Marketing budget made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, reveals the cost related information for the marketing techniques. (See Appendix B). It can be seen that technique 5 of enhancing consumer experience at tracks would require greatest initial investment and cost and method 4 of presenting multiculturalism will need least expensive initial financial investment with least expensive even more each year cost. The business should prioritize the resource allotment on these strategies on the basis of its available resources and the potential benefits which the technique would offer.
NOTE: The values about cost are assumed on reasonable basis due the lack of figures and facts related to cost in the case study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal aspects of International Speedway Corporation Case Study Help causing the decrease of tv viewership rate and presence rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long run. These strategies would handle internal elements like bad customer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., along with with external aspects like moving of fans towards other sports, demographical changes in America and altering domesticity styles.