Liz Claiborne China Case Study Solution & Analysis
Liz Claiborne China Case Study Solution (National Association for Stock Automobile Car Racing) is an organization performing series of Stock Automobile racing in United States and functioning as an approving body for driving the rules for Stock Car Racing. The company was established in 1947, by "Huge Bill" France. NASCAR set up Stock Car Racing events in United States with the existence of about 130000 audiences usually in 2005. It likewise broadcast its occasions in about 150 nations. Stock Automobile Racing by NASCAR is the 2nd biggest viewer sport, with highest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its revenue. The other sources of profits for Liz Claiborne China Case Study Help consists of; 10% of the overall profits from television 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 building of Automobile of Tomorrow by NASCAR, with an intention of security for the chauffeurs, brought different tensions amongst the stakeholders of the sport.
The communication audit, carried out in 2010, exposed that despite the reality that business extremely count on the interactions in between its stakeholders, there was no identifiable organisation communication technique. The industry's target clients, direction and objectives were all unidentified.
The audit explained numerous lacking of NASCAR in terms of lack of internal integration, lack of fan management strategy and absence of digital and social media of marketing. The company has complex ecosystem with independent tracks, drivers and teams. This structure with closed business culture bring different challenges in accelerating a change. Other partners in community consists of the media networks i.e. tv and radio, and business online marketers.
Liz Claiborne China Case Study Help viewers was highly devoted to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate online marketers.
The business is currently facing the issue of decreasing rates of participation at racing tracks and rates of television viewers. This can put a significant effect on its profits from sponsors, media rights, and from other sources of profits.
Although the company was rather effective till 2005 with its traditional marketing methods, but not long after 2005 the company begins facing numerous problems including decline of its fan base. Several external as well as internal elements are accountable for the decrease. Internal factors include; insufficient 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 youngsters and develop generational commitment. The family system in America was changing resulting in decrease of influence of married male fan base over their youngsters. Together with it understandings about automobile was also altering with perceiving automobile a lorry to reach at point B from point A, instead of as an enjoyable job. Other obstacles for Liz Claiborne China Case Study Help consists of the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on. These all obstacles were tending the business to revise its marketing strategies.
In SWOT analysis, strengths specified as company's qualities which are different from its competitors. These are business's core proficiencies on which company efficiency or company success based upon. Liz Claiborne China Case Study Analysis core proficiencies includes it has rights of determining rules as sanctioning body. Regulations and rules concerning professional stock automobile racing are determined by NASCAR like if any group with required abilities and resources can enter into races by following guidelines and guidelines dictated by NASCAR. So NASCAR has monopoly it this element. Its strengths likewise includes that it has title of second biggest viewer 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 worldwide with more than $56 million profits. The primary sources of their revenues come from tv 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 also big resource of fans and corporate sponsors. Due to the fact that of biggest brand name loyalty of fans towards brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weak Points in SWOT Analysis are thought about as external factors. Weaknesses includes the elements that stops business to perform at required level of effectiveness. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist method. They usually utilized to form rules and other needed procedures without intervention of others which results in poor cooperation. NASCAR develops Automobile of Tomorrow without cooperation so result is that motorists 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 efficient method for business communication. They don't know how to deal with concern if it occurred off track. Inadequate business interaction results in that they don't have clear direction for their long term objectives. They don't know that where they wish to see this sport in future.
Opportunities in SWOT analysis are external aspects which can be favourable to company or the external elements on which company is having competitive benefit. NASCAR generally utilized to depend on conventional media sources like regional paper for promotion of its sports. Usually these standard media sources attempt to cover their house team and specific sort of events. NASCAR likewise came to know from these traditional media outlets that sport was hard to cover. Media landscape also altered from traditional to digital landscape. Newspapers went out of business. NASCAR can work on its abilities to get maximum possible benefits from this new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were also offered to Turner Sports. NASCAR utilized to earn money check of around $15 million annually from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every 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 desire to publish videos of races on their particular pages. So NASCAR can deal with conditions and terms and attempt to work out with Turner Sports to get maximum benefits of it. Star power plays very essential role in generating earnings from every sport. It was noted that NASCAR is lagging in this area i.e. star power. When sports fans were asked concerning popular celebrities and stars then NASCAR driver was not discovered even in leading twenty responses. So NASCAR can put efforts in this area too for profits generation. They should assist their chauffeurs that how they can become sport stars. Four strategic focuses which are generated by research team can also be acted as chance for NESCAR. These 4 strategic focuses compares and analysis Liz Claiborne China Case Study Help methods.
Economic down turn was experienced in late 2000 which can be hazard for NASCAR since if there is financial down turn then people would be having less return on financial investment. Economic down turn likewise results in boost fuel costs which also affected NASCAR. Now if NASCAR make significant financial investments in new sectors which are based on new consumers then it may deal with negative comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is utilized to evaluate industry in which business is working. It helps in determining what are strengths and weak point of any particular market. It suggest that every market is different from one another. Since NASCAR's bottom line i.e. net profit is greatly depends on this, it is essential to comprehend industry in which business is working. There are 5 forces that are used to recognize success, strength and appearance of Liz Claiborne China Case Study Solution organisation.
These drivers can go against NASCAR if they got better opportunity in terms of prizes and tv exposure. If audiences take pleasure in other race cars and motorists more than NASCAR then audiences can shift to those other fascinating cars and trucks and drivers. NASCAR could be having threat from its two direct rivals that is Formula 1 and Moto GP.
The provider power indicates the variety of providers are offered in industry and what is the cost related to supplier if company shifts from one provider to another. In this industry there is supply monopoly since drivers with required resources and abilities are restricted.
This force is concerning to clients that is it simple for clients to shift to other items. If there is more changing cost is associated then consumers are less most likely to switch. In the case of NASCAR customers are its viewers. Because audiences will having low switching expense, audiences can switch to other rivals quickly.
Danger of Substitution
Alternatives are referred as alternatives. The replacements in this case can be other home entertainment suggests like viewers can shift to other sports. There are broad variety of replacements are offered in this situation which suggests that hazard of substitute is high.
Risk of New Entry
It is defined as how it is simple for any company to go into in that particular industry. In the case of Liz Claiborne China Case Study Solution threat of new entry is low. If any business requires to enter in this service than they have to make heavy financial investments, since. They require to develop vehicles and racing tracks and likewise needs to pay significant amount to chauffeurs for switching.
As NASCAR is working in different markets so it needs to deal with different guidelines. It is likewise noted that NASCAR has dealt with increased examination relating to regulatory. Every government has different top priority so NASCAR has to be prepared for it as top priority can be moved to other sector.
Economic elements consists of tax rate, exchange rate, economic performance of that particular business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its rivals can be impacted if there is government intervention in the marketing and sales sector. NASCAR can utilize abilities of workers to produce new chances and improve existing chances.
Every society is various from each other. Each has various social worths and standards. It helps in understanding concerning society and choice of consumers. Social factors consists of traditions, culture, mindsets towards particular services and products, demographics, standards, interests etc. It can be concluded that marketing through other methods instead of standard (i.e. paper) can be chosen in this society.
Innovation has influence on almost every company. It includes innovation in company technique. In this case of Liz Claiborne China Case Study Solution it can be kept in mind that companies are greatly investing for research study and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Because every nation has various legal terms and conditions, Legal plays a crucial role in every nation. Liz Claiborne China Case Study Analysis needs to be make sure that they secure their legal rights in every county so any business does not harm to its legal rights.
Environmental aspects are also important for every single organisation. Since normally governments don't allow those company which can harm to environment. These ecological elements consists of laws relating to pollution, climate modification, safe waste disposal, policies regarding insurance and so on. NASCAR requires to make certain that its automobiles are not generating contamination more than appropriate level.
7 P's of Marketing
The products of Liz Claiborne China Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices technique of NASCAR for its race events tickets is based upon the location and value of the racing occasions. Along with race events tickets, NASCAR likewise charge various service charge to its stakeholders and makes income. It charged sanctioning charges of $1-2 million per race on average in 2005.
Promotional method of Liz Claiborne China Case Study Help is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of viewers for NASCAR races. However, the business is not totally relied upon its fan base for its promotion and promote through regional radio stations too. The business has likewise adopted the retailing media of promotion, in which the business sells products with its logo design.
NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in most of the cities in United States to understand across the country popularity.
Nestle individuals method is comprised of providing better experience to its audiences, its fan base and to all of its stakeholders. People are an essential aspect of Liz Claiborne China Case Study Help A marketing technique as its occasions are the source of home entertainment for crowd. Its individuals technique consists of efforts to provide much better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under people method of NASCAR.
Several business procedures are needed to perform racing events in an efficient way. These procedures include; correct schedule of time, arrangement for spectators, selling tickets, arrangement of space for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock cars and racing occasions. Along with it, its retailing brand names including t-shirts, caps, goodies and so on, also serve as a physical evidence for NASCAR.
Item Life Cycle Evaluation.
The racing events by Liz Claiborne China Case Study Solution was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first phase competition for NASCAR was low, as the competitors drove the cars and trucks similar to the automobiles driven by regular individuals.
After conducting its very first race successfully the company moved towards developing its own tracks. The first Liz Claiborne China Case Study Solution based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment of more raceways including Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards relaying its races on tv in 1979. The first occasion relayed on television was flag-to-flag protection of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular company into one with international fan base. He started a brand-new era of profitable sponsorships and tv contracts for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the company having vast array of earnings sources. The business has about 500 sponsors with transmitting its events in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
The decline in the business's offerings started after 2005 with typical participation rate per race declined by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant reasons for decline consist of the monetary crisis of 2008, which increased the cost of reaching tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.
The market segmentation of Liz Claiborne China Case Study Help can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Liz Claiborne China Case Help is based upon the geographical presence of its tracks in different states and cities in United States, and the tv broadcasting of its occasions in numerous 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 large geographical division supplies the company local in addition to worldwide fan base.
The market division of Liz Claiborne China Case Study Solution is likewise highlydiverse based upon the gender, income and age of the customer. To increase the market section of its market NASCAR must modify its marketing methods to draw in more age groups and lower its prices to go into in the market segment with a low typical income.
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races when in a week. NASCAR has tried to increase the quality of its racing by introducing phase racing, they likewise have tried to lower costs and make the event more practical by presenting live racing.
Behavioural segmentation of Liz Claiborne China Case Study Analysis is based upon the behaviour of fans in terms of enjoying the race live on the tv or by going in the occasions. Currently, the fans preference is towards enjoying the race in your home on television rather than going, as the consumer experience at NASCAR tracks is not beneficial along with pricey. This choice makes the rates for participation lower than the rates for tv viewers. NASCAR needs to alter the behaviour of its fan base by introducing qualitative services at its tracks.
One of the potential target audience of Liz Claiborne China Case Study Analysis 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 greater rate and it was expected to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the section reveals affinity with car culture, but require a more concentrated marketing towards inviting the section towards racing.
Kids are also one of the prospective target market section for NASCAR, as they are more linked socially than other groups. Car racing video games established by Liz Claiborne China Case Study Analysis can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and improving its digital features to bring in the kids target market.
This big expense makes the section capacity for NASCAR marketing method of increasing its fan base. The market section thinks about NASCAR as an organization lacking in creating a multiculturalism environment. NASCAR must take numerous actions to enhance the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing helps in taking choices regarding marketing. These 5 C's requirements to be analysed properly for taking any marketing decision. These 5 C's represent Environment, Company, Collaborators, Customers and Competitors.
It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, ecological and legal and is specified above.
Liz Claiborne China Case Study Solution is a car racing company with having USP of high quality car racing with an international structure. Its sector is sports team and events.
Collaborations consists of distributors, suppliers and alliances of Liz Claiborne China Case Study Help. It is teamed up with different racing groups which are taking part in racing. It likewise teamed up with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million each 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 also had rights of every single video which is shoot throughout race at track.
The client of Liz Claiborne China Case Study Solution are its viewers. They target clients 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 develop generational commitment.
Teams usually represents sponsors in NASCAR and the medium of marketing is drivers. These motorists can go versus NASCAR if they got much better opportunity in terms of rewards and television exposure.
1. Establishing and Maintaining Facebook Page.
Among the possible target audience segments for NASCAR is Hispanics which is the growing population sector of U.S.A. however sadly NASCAR had been unable to bring in the this targeted segment. In order to attract the young growing generation the NASCAR must market by utilizing social networks like Facebook. It needs to develop a Facebook page containing the details concerning the races and the places of tracks to make the consumer informative about the core operations of Liz Claiborne China Case Study Analysis. It ought to likewise upgrade its Facebook page on daily basis to supply details about its approaching events. This would make the target audience sector more helpful about business and would result in attracting large fans base.
2. Establishing and Upgrading Accounts of Secret Drivers.
Liz Claiborne China Case Study Solution motorists has a low star power as compare to gamers of other sports. The poor contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is a crucial aspect for drawing in audiences towards tracks and towards tv.
3. Establishing New Games and enhancing current video games for kids.
Kids spent the majority of their time on playing games and using smartphones. But sadly, kids playing NASCARA have a worst experience of playing its video games. As a result, they are less drawn in towards the sport. In order to draw in these kids, NASCARA needs to enhance its present racing games by introducing modification in the cars and trucks i.e. altering colours, selection of speed, presenting group racing in the video game, utilizing much better graphics connected to the racing tracks and introducing various levels in the video game. All these modifications in the current game would provide much better experience to kids.
Together with it, NASCAR needs to likewise build brand-new games related to racing like kids racing with kids characters as drivers, animation racing with racing in between different cartoon characters with an option of picking the preferred cartoon character for the kids. These methods would make it possible for the business to draw in among its potential target sectors.
4. Introducing multiculturalism at occasions.
Liz Claiborne China Case Study Help occasions are consisted of fans with really couple of multiculturalism, due to expense of arrival in occasions, making it unsightly for the consumers perceiving sport events as affairs i.e. Generation Y customers. As the Generation Y clients are a prospective target audience for NASCAR, therefore the business should take particular steps to attract this possible target market. It should embrace methods to draw in the consumers far from the tracks location with various culture. The method to do so could be offering unique discount rates on tickets or totally free tickets to viewers originating from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y clients more satisfied.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on infrastructure and facilities at tracks because on the race day viewers got disappointed. Audiences have numerous expectations from Liz Claiborne China Case Study Help since in same industry other companies are supplying better services than NASCAR. IF NASCAR don't work on this problem then its fans may moved to its competitors.
Marketing Budget 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 associated information for the marketing methods. It can be seen that method 5 of enhancing customer experience at tracks would require greatest initial financial investment and expense and method 4 of introducing multiculturalism will require lowest initial investment with most affordable further per year cost.
KEEP IN MIND: The values about expense are assumed on logical basis due the absence of figures and truths related to cost in the case research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external aspects of Liz Claiborne China Case Study Analysis causing the decrease 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 manage internal factors like poor customer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, along with with external factors like shifting of fans towards other sports, demographical changes in America and altering domesticity styles.