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Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution & Analysis


Introduction

Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Analysis (National Association for Stock Automobile Vehicle Racing) is an organization conducting series of Stock Cars and truck racing in United States and acting as a sanctioning body for driving the rules for Stock Car Racing. The organization was founded in 1947, by "Huge Costs" France. NASCAR organize Stock Vehicle Racing occasions in United States with the presence of about 130000 viewers typically in 2005. It likewise broadcast its events in about 150 nations. Stock Car Racing by NASCAR is the second biggest viewer sport, with highest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of income for Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Analysis consists of; 10% of the overall profits from tv rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed business culture with the non-interventionist method. The structure of Automobile of Tomorrow by NASCAR, with an objective of security for the chauffeurs, brought various tensions among the stakeholders of the sport.

The interaction audit, carried out in 2010, exposed that regardless of the reality that the business extremely rely on the interactions in between its stakeholders, there was no recognizable organisation interaction method. The industry's target customers, direction and objectives were all unknown.

The audit pointed out numerous doing not have of NASCAR in terms of lack of internal combination, absence of fan management strategy and lack of digital and social media of marketing.

Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution audiences was extremely loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate marketers.

Issue Declaration.

The company is currently facing the issue of decreasing rates of presence at racing tracks and rates of tv viewers. This can put a considerable impact on its revenues from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

Although the company was quite effective till 2005 with its conventional marketing methods, however soon after 2005 the company begins facing numerous problems including decrease of its fan base. Several external as well as internal elements are responsible for the decrease. Internal elements consist of; insufficient 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 develop generational commitment. The household system in America was changing resulting in reduction of impact of married male fan base over their children. Along with it perceptions about cars and truck was also changing with perceiving automobile a vehicle to reach at point B from point A, instead of as an enjoyable task. Other challenges for Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution includes 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 access, and so on. These all challenges were tending the business to revise its marketing techniques.

SWOT Analysis.

Strengths.


NASCAR core proficiencies includes it has rights of dictating guidelines as sanctioning body. Regulations and rules relating to professional stock car racing are dictated by NASCAR like if any group with required skills and resources can get in into races by following rules and guidelines dictated by NASCAR. All the events of NASCAR are sponsored by corporates since of biggest brand name loyalty of fans toward brand names marketed by Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution.

Weak points.

Weaknesses in SWOT Analysis are thought about as external aspects. Weak points consists of the factors that stops business to carry out at required level of performance. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist method. They usually utilized to form guidelines and other required procedures without intervention of others which leads to poor cooperation. NASCAR develops Automobile of Tomorrow without partnership so result is that drivers did not like that idea. As this is racing sport so covering of sports by media is likewise challenging. It was likewise discovered that NASCAR had no effective method for organisation communication. They do not know how to deal with issue if it happened off track. Inefficient service interaction results in that they don't have clear instructions for their long term objectives. They don't understand that where they wish to see this sport in future.

Opportunities.

Opportunities in SWOT analysis are external aspects which can be beneficial to company or the external factors on which business is having competitive advantage. NASCAR generally used to count on conventional media sources like local newspaper for promotion of its sports. Normally these traditional media sources attempt to cover their house team and specific kind of events. NASCAR likewise familiarized from these traditional media outlets that sport was hard to cover. Media landscape also changed from conventional to digital landscape. Newspapers failed. NASCAR can deal with its capabilities to get maximum possible gain from this brand-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 used to earn money check of around $15 million every year from Turner Sports. There are number of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every single video which is shoot throughout race at track. If media sources like papers, magazines and cable television channels wish to publish videos of races on their respective pages then they are required to pay licensing charges to Turner Sport. So NASCAR can work on conditions and attempt to work out with Turner Sports to get optimal advantages of it. Star power plays really important role in generating incomes from every sport. It was noted that NASCAR is lagging in this area i.e. star power. When sports fans were asked relating to popular stars and stars then NASCAR chauffeur was not discovered even in top twenty responses. So NASCAR can put efforts in this area too for earnings generation. They should guide their drivers that how they can become sport stars. 4 strategic focuses which are generated by research study team can also be acted as opportunity for NESCAR. These four tactical focuses compares and analysis Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Analysis strategies.

Risks

Economic down turn was experienced in late 2000 which can be danger for NASCAR due to the fact that if there is economic down turn then people would be having less return on investment. Economic down turn also results in increase fuel prices which likewise impacted NASCAR. Now if NASCAR make considerable financial investments in brand-new segments which are based on brand-new consumers then it might face negative comments from its core fan base.

Porter's Five Forces Analysis

Porter's 5 forces is a model that is utilized to evaluate industry in which business is working. It assists in identifying what are strengths and weakness of any particular industry. It suggest that every market is different from one another. Because NASCAR's bottom line i.e. net earnings is greatly depends on this, it is essential to comprehend industry in which company is working. There are 5 forces that are utilized to identify profitability, strength and appearance of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Analysis business.

Competitive Competition

These drivers can go against NASCAR if they got better chance in terms of prizes and television direct exposure. If viewers enjoy other race cars and trucks and motorists more than NASCAR then viewers can move to those other interesting cars and drivers. NASCAR could be having danger from its two direct rivals that is Formula 1 and Moto GP.

Supplier Power

If company shifts from one provider to another, the provider power indicates the number of providers are available in industry and what is the expense associated with provider. In this industry there is supply monopoly since chauffeurs with needed skills and resources are limited.

Buyer Power

This force is concerning to consumers that is it easy for customers to shift to other products. If there is more changing expense is associated then consumers are less most likely to switch. In the case of NASCAR consumers are its audiences. Because audiences will having low switching cost, audiences can switch to other competitors quickly.

Threat of Substitution

Alternatives are referred as alternatives. The alternatives in this case can be other home entertainment means like viewers can move to other sports. So there are wide range of replacements are readily available in this circumstance which recommends that risk of substitute is high.

Threat of New Entry

In the case of NASCAR threat of brand-new entry is low. They require to build cars and trucks and racing tracks and likewise needs to pay significant amount to chauffeurs for changing.

PESTEL Analysis

Political


As NASCAR is working in different markets so it needs to deal with various policies. It is also kept in mind that NASCAR has faced increased examination relating to regulative. Every federal government has various priority so NASCAR has actually to be prepared for it as concern can be moved to other sector.

Cost-effective

Economic factors consists of taxation rate, exchange rate, financial efficiency of that particular company, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be affected if there is federal government intervention in the marketing and sales sector. NASCAR can take advantage of capabilities of employees to create new opportunities and enhance existing chances.

Social

Each has different social worths and norms. It helps in comprehending concerning society and preference of clients.

Technical

In this case of NASCAR it can be noted that business are greatly investing for research and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.

Legal

Due to the fact that every nation has various legal terms and conditions, Legal plays a crucial role in every country. Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Analysis needs to be make certain that they protect their legal rights in every county so any company does not harm to its legal rights.

Environmental

Environmental factors are likewise crucial for every organisation. Since typically federal governments don't permit those company which can harm to environment. These environmental aspects includes laws concerning pollution, climate change, safe waste disposal, policies regarding insurance etc. NASCAR needs to make certain that its cars are not creating pollution more than acceptable level.

7 P's of Marketing

Product

The items of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving guidelines for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).

Price.

Pricing strategy of NASCAR for its race events tickets is based upon the place and importance of the racing occasions. Together with race events tickets, NASCAR likewise charge numerous service fees to its stakeholders and makes earnings. For instance it charged approving costs of $1-2 million per race on average in 2005.

Promo.

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 essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in most of the cities in United States to comprehend across the country appeal.

People.

Nestle individuals strategy is comprised of providing better experience to its viewers, its fan base and to all of its stakeholders. People are an important element of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution A marketing technique as its events are the source of entertainment for crowd. Its people method includes efforts to offer much better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under people strategy of NASCAR.

Processes.

A number of company procedures are needed to carry out racing occasions in an efficient way. These processes include; appropriate schedule of time, arrangement for spectators, offering tickets, plan of area for sponsors, managing logistics etc. These all processes contribute I building NASCAR image, improving spectators experience and increasing fan base.

Physical Evidence.

Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and racing events. In addition to it, its retailing brands consisting of t-shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.

Product Life Process Evaluation.

The racing events by Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Help was presented on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the first phase competition for NASCAR was low, as the rivals drove the automobiles similar to the cars driven by regular people.

Growth.

The very first NASCAR based track, namely the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the business moved towards transmitting 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 company into one with worldwide fan base. He initiated a brand-new age of profitable sponsorships and television contracts for NASCAR.

Maturity.

The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide variety of profits sources. The company has about 500 sponsors with relaying its occasions in about 150 nations. The business has large number of tracks in the majority of the cities of United States.

Decrease.

The major causes of decline include the monetary crisis of 2008, which increased the expense of arriving at tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Division.

The marketplace division of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Help can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographic.

The geographical division of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Help is based upon the geographical existence of its tracks in numerous states and cities in United States, and the tv broadcasting of its events in numerous countries. The business 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 vast geographical division provides the company regional in addition to global fan base.

Demographic.

The market segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly consisted of male married fans with an average age of 47 years and an earnings around $30-50 thousands. However currently NASCAR is attempting to increase its target market to the young growing population and kinds too. To increase the demographic section of its market NASCAR need to modify its marketing techniques to draw in more age and lower its costs to enter in the market sector with a low average earnings.( htt1).

Psychographic.

NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to purchase tickets and see the races as soon as in a week. NASCAR has actually tried to increase the quality of its racing by presenting stage racing, they likewise have actually tried to lower prices and make the event more hassle-free by presenting live racing.

Behavioural.

Behavioural segmentation of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution is based upon the behaviour of fans in terms of seeing the race live on the television or by going in the occasions. Presently, the fans choice is towards seeing the race in the house on television instead of going, as the consumer experience at NASCAR tracks is not beneficial in addition to expensive. This preference makes the rates for participation lower than the rates for tv viewers. NASCAR has to alter the behaviour of its fan base by introducing qualitative services at its tracks.

Target Market.

Hispanics.

One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market section has fantastic potential for NASCAR as the population was growing at a greater rate and it was expected to become thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.

Kids.

Kids are likewise one of the possible target market segment for NASCAR, as they are more linked socially than other groups. Cars and truck racing games developed by Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards tailoring and enhancing its digital features to draw in the kids target market.

Generation Y.
Generation Y target market consists of those who spent five times more resources on discretionary expenses i.e. buying tickets for racing events, than others. This huge expenditure makes the section capacity for NASCAR marketing technique of increasing its fan base. The market section is also easy to method as 81% of the Y Generation customer uses Facebook every day and the use is two times of using tv and radio. The market segment views sports as an affair, rather than adherence to sport. The market segment thinks about NASCAR as an organization doing not have in producing a multiculturalism atmosphere. Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution should take numerous steps to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing assists in taking decisions relating to marketing. These 5 C's needs to be analysed correctly for taking any marketing decision. These 5 C's mean Environment, Business, Collaborators, Competitors and customers.

Climate/Context.

It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, environmental and legal and is stated above.

Business.

Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Help is an automobile racing company with having USP of high quality vehicle racing with an international structure. Its sector is sports team and events.

Partnerships.

Collaborations includes suppliers, suppliers and alliances of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Solution. It is worked together with various racing teams which are taking part in racing. It also collaborated with Turners Sport for digital rights. NASCAR used to get pay check of around $15 million each year from Turner Sports. There are variety of cons behind this deal. For instance NASCAR needed to get approval from Turner Sport if it want to produce its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of every single video which is shoot during race at track.

Clients.

The client of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Analysis are its viewers. 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 children and develop generational commitment.

Competitors.

Groups generally represents sponsors in NASCAR and the medium of marketing is drivers. These chauffeurs can go against NASCAR if they got much better opportunity in terms of prizes and television direct exposure.

Marketing Strategies.

1. Establishing and Maintaining Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population section of U.S.A. however regrettably NASCAR had been unable to bring in the this targeted section. It must develop a Facebook page consisting of the information relating to the races and the areas of tracks to make the consumer informative about the core operations of NASCAR.
2. Establishing and Updating Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The significant reason behind it is that, the racers primarily play in groups and are not able to construct a crucial account and preserve a close contact with fans. The poor contacts with fans lead to less tourist attraction of audiences towards the racers and a low star power. Star power is an essential aspect for bring in audiences towards tracks and towards tv. The star power for the chauffeurs at NASCARA could be enhanced by creating and updating accounts of essential motorists by NASCARA itself. This would get rid of the requirement of forcing drivers to maintain their accounts and would lead to increasing fans attention towards NASCARA drivers.
3. Establishing New Games and enhancing existing video games for kids.
In order to bring in these kids, NASCARA must enhance its present racing video games by introducing personalization in the cars and trucks i.e. changing colours, selection of speed, presenting group racing in the video game, using better graphics related to the racing tracks and presenting numerous levels in the video game. All these modifications in the current video game would provide much better experience to kids.
In addition to it, NASCAR ought to also construct brand-new video games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing between numerous cartoon characters with an option of selecting the favourite cartoon character for the kids. These strategies would make it possible for the business to attract one of its possible target sectors.
4. Introducing multiculturalism at events.
NASCAR events are made up of fans with extremely few cultural variety, due to expense of arrival in occasions, making it unappealing for the consumers perceiving sport events as social occasions i.e. Generation Y consumers. As the Generation Y clients are a possible target market for NASCAR, for that reason the company needs to take particular steps to attract this prospective target market.
5. Improving Client Experience at Tracks.
Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Help must work on facilities and features at tracks because on the race day audiences got dissatisfied. Audiences have many expectations from NASCAR because in exact same industry other companies are providing better services than NASCAR. IF NASCAR do not deal with this issue then its fans might moved to its rivals. According to fans there were not sufficient facilities were offered as compare to other sports service providers. So NASCAR should make sure that it provide sufficient facilities that consists of cleaned toilets, comfy seating arrangement. They should likewise provide WIFI services and availability of charge card throughout that track. It needs to be also ensure that there are enough jumbo turns put at all needed locations. There need to be likewise food stalls that offer quality food to audiences. In this method viewers will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Budget plan.
Marketing budget plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, shows the cost related information for the marketing methods. (See Appendix B). It can be seen that strategy 5 of enhancing consumer experience at tracks would need highest initial financial investment and expense and technique 4 of presenting multiculturalism will need least expensive initial financial investment with most affordable even more per year cost. The company must focus on the resource allocation on these techniques on the basis of its offered resources and the prospective benefits which the strategy would supply.
NOTE: The worths about cost are assumed on reasonable basis due the absence of figures and truths related to cost in the event study. Inflation rate of United States is presumed to be 10%.

Recommendations.

On the basis of deep analysis of the external and internal elements of Macromedia Inc Weaving Dreams Of Global Markets And New Technologies Case Study Help causing the decrease of tv viewership rate and attendance rate at tracks, the above marketing techniques are suggested to NASCAR to increase its fan base in long run. These strategies would handle internal elements like poor consumer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, in addition to with external factors like shifting of fans towards other sports, demographical changes in America and changing family life styles.

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