Napster Online Case Study Analysis

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Napster Case Study Solution & Analysis


NASCAR (National Association for Stock Cars And Truck Car Racing) is an organization performing series of Stock Vehicle racing in United States and acting as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Automobile Racing by NASCAR is the second largest viewer sport, with highest number of sponsors. 1) The other sources of income for Napster Case Study Analysis consists of; 10% of the overall income from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed business culture with the non-interventionist approach. However this non collaborative approach brings tensions in the sport. The building of Cars and truck of Tomorrow by Napster Case Study Analysis, with an intent of security for the motorists, brought various stress amongst the stakeholders of the sport.
Executive Summary
The interaction audit, conducted in 2010, exposed that despite the truth that the business extremely count on the interactions in between its stakeholders, there was no recognizable business communication technique. The market's target clients, direction and goals were all unknown.

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

Napster Case Study Help viewers was highly loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business online marketers.

Issue Statement.

The company is presently facing the problem of decreasing rates of attendance at racing tracks and rates of television audiences. This can put a substantial influence on its earnings from sponsors, media rights, and from other sources of income.

Situational Analysis.

Although the business was rather successful till 2005 with its standard marketing methods, but not long after 2005 the business begins facing various problems including decline of its fan base. Numerous external along with internal aspects are accountable for the decrease. Internal aspects include; inadequate investment in social networks and other digital medias of.

Fan base of NASCAR made up of married males with an average age of 47, which passes their fandom to their children and develop generational commitment. Other challenges for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc.

SWOT Analysis.


In SWOT analysis, strengths defined as business's qualities which are various from its rivals. These are business's core proficiencies on which business performance or company success based upon. Napster Case Study Help core proficiencies includes it has rights of dictating rules as approving body. Policies and rules concerning expert stock car racing are dictated by NASCAR like if any team with required skills and resources can enter into races by following guidelines and regulations determined by NASCAR. So NASCAR has monopoly it this element. Its strengths also includes that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were used to relay in more than 150 nations worldwide with more than $56 million earnings. The main sources of their profits originate from tv rights, approving charges, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and business sponsors. Because of biggest brand loyalty of fans toward brand names advertised by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).


Weak Points in SWOT Analysis are considered as external aspects. Weak points includes the elements that stops business to carry out at required level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They usually used to form rules and other needed procedures without intervention of others which results in poor collaboration. For example NASCAR develops Automobile of Tomorrow without collaboration so result is that chauffeurs did not like that concept. As this is racing sport so covering of sports by media is likewise hard. It was likewise found that NASCAR had no reliable method for company communication. If it happened off track, they do not understand how to handle concern. Inadequate business communication leads to that they don't have clear direction for their long term objectives. They don't understand that where they want to see this sport in future.
Porter's 5 Forces Analysis

NASCAR typically utilized to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR likewise came to understand from these traditional media outlets that sport was difficult to cover. When sports fans were asked relating to popular celebrities and stars then NASCAR driver was not discovered even in leading twenty responses.


Risks in SWOT analysis are defined as external factors that can threat to business's success. Because if there is economic down turn then individuals would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be threat for NASCAR. Earning of people would be effected and they would be more conscious in investing their money. Economic down turn likewise results in increase fuel prices which likewise affected NASCAR. Due to the fact that fans of NASCAR utilized to attend its occasion from fars away. NESCAR had a guideline of 65/25/10 for profits circulation. 65 percent earnings from media rights would be dispersed to race course, 25 percent profits would be distributed to completing group and staying 10 percent would be maintained by NESCAR which is approving body. Contending group wished to increase their part of earnings from 25 percent due to the fact that of increase in running cost of a race group and also there is decline in the number of full-season sponsorship. NESCAR likewise deals with risks from other sponsors because they are making enormous financial investments to enhance experience of fans. For instance which includes upgrading existing avenues, constructing brand-new opportunities, supplying Wi-Fi facility and also offering other interactive mediums to communicate sports on smart devices. 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 challenge is that the household system in America was changing resulting in reduction of influence of married male fan base over their youngsters. Together with it understandings about vehicle was also altering with perceiving vehicle an automobile to reach at point B from point A, instead of as an enjoyable job. Now if Napster Case Study Help make substantial financial investments in new sections which are based upon new consumers then it might deal with negative comments 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 specific industry. It suggest that every industry is different from one another. It is necessary to understand market in which company is working because NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are utilized to identify success, strength and attractiveness of Napster Case Study Help business.

Competitive Competition

These chauffeurs can go against NASCAR if they got better chance in terms of prizes and television direct exposure. If viewers take pleasure in other race vehicles and drivers more than NASCAR then viewers can move to those other interesting automobiles and chauffeurs. NASCAR might be having danger from its two direct competitors that is Solution 1 and Moto GP.
Swot Analysis
Provider Power

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

Purchaser Power

In the case of NASCAR customers are its viewers. Audiences can switch to other competitors quickly because audiences will having low switching cost.

Hazard of Substitution

Substitutes are referred as alternatives. The replacements in this case can be other home entertainment suggests like audiences can shift to other sports. So there are wide range of alternatives are readily available in this scenario which suggests that risk of substitute is high.

Danger of New Entry

In the case of NASCAR threat of brand-new entry is low. They require to develop automobiles and racing tracks and likewise needs to pay large amount to motorists for switching.

PESTEL Analysis


It can not be concluded from case study that there would be modification in resource allocations. NASCAR had actually got benefit from lower tax policies which results in increasing in earnings. They made heavy investments in the research study and advancement. As NASCAR is operating in different markets so it needs to deal with different guidelines. It is likewise kept in mind that Napster Case Study Analysis has dealt with increased scrutiny regarding regulatory. Every government has different priority so NASCAR has to be prepared for it as concern can be shifted to other sector.


Economic aspects includes tax rate, currency exchange rate, financial efficiency of that specific business, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can utilize abilities of staff members to develop brand-new chances and improve existing opportunities.


Each has different social worths and norms. It assists in understanding concerning society and choice of clients.


Innovation has impact on practically every organisation. It consists of innovation in service strategy. In this case of Napster Case Study Help it can be kept in mind that business are heavily investing for research and advancement. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays an essential role in every nation because every nation has different legal terms and conditions. Napster Case Study Solution needs to be ensure that they protect their legal rights in every county so any business does not harm to its legal rights.


Ecological factors are likewise crucial for every service. NASCAR requires to make sure that its cars are not producing contamination more than acceptable level.

7 P's of Marketing


The products of Napster Case Study Analysis in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to corporate online marketers during broadcast of NASCAR races. (Hanlon, 2018).


Rates technique of NASCAR for its race events tickets is based upon the venue and value of the racing occasions. Together with race occasions tickets, NASCAR likewise charge various service charge to its stakeholders and makes earnings. For example it charged approving fees of $1-2 million per race usually 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 numerous cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle 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 comprehend across the country popularity.


Nestle people technique is consisted of offering better experience to its viewers, its fan base and to all of its stakeholders. People are an essential aspect of Napster Case Study Solution A marketing strategy as its occasions are the source of home entertainment for crowd. Its individuals method includes efforts to offer better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under individuals technique of NASCAR.


Numerous organisation procedures are required to carry out racing occasions in an effective method. These processes include; correct schedule of time, plan for viewers, offering tickets, arrangement of space for sponsors, handling logistics and so on. These all procedures contribute I constructing NASCAR image, enhancing viewers experience and increasing fan base.

Physical Evidence.

Crucial physical proofs for the NASCAR includes the existence of its racing tracks, stock vehicles and racing events. Together with it, its merchandising brand names consisting of t-shirts, caps, goodies and so on, also act as a physical evidence for NASCAR.

Product Life Cycle Assessment.

The racing events by NASCAR was introduced on June 19, 1949. At the first stage competitors for NASCAR was low, as the rivals drove the cars and trucks similar to the cars driven by common people.


After conducting its very first race successfully the business moved towards constructing its own tracks. The first Napster Case Study Solution based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the development of racing tracks the company moved towards transmitting its races on television in 1979. The first occasion relayed on tv was flag-to-flag coverage of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a local Sport popular company into one with worldwide fan base. He started a new age of lucrative sponsorships and television agreements for NASCAR.


The maturity duration for NASCAR began with the efforts of William France Jr., with the company having large range of earnings sources. The company has about 500 sponsors with relaying its occasions in about 150 nations. The business has large number of tracks in most of the cities of United States.


The major causes of decline include the financial crisis of 2008, which increased the cost of getting here at tracks for viewers due to increasing fuel costs, and the moving of its fan base towards other sports.

Market Segmentation.

The marketplace division of Napster Case Study Analysis can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Napster Case Help is based upon the geographical existence of its tracks in various states and cities in United States, and the tv broadcasting of its occasions in numerous nations. The business has 23 tracks in about 20 states of America and has television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation provides the business regional as well as international fan base.


The market division of Napster Case Study Solution is likewise highlydiverse based upon the gender, income and age of the customer. To increase the group segment of its market NASCAR should revise its marketing strategies to bring in more age groups and lower its costs to enter in the market section with a low typical income.


The mental attributes of the majority of the fans are rather similar. NASCAR has a fan base with a loyalty. Once in a week, NASCAR fans perceive it compulsive to buy tickets and see the races. 71% of them prefer to purchase items with a NASCAR trademark name. They are quite extrovert and want to join other fans while racing. They desire quality racing with low price at convenient place. Although Napster Case Study Analysis has attempted to increase the quality of its racing by introducing stage racing, they likewise have attempted to lower rates and make the occasion easier by introducing live racing.


Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the occasions. Currently, the fans choice is towards watching the race at home on tv rather than going, as the client experience at NASCAR tracks is not favourable as well as expensive.

Target Market.


One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market segment 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 segment has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are also among the possible target market section for NASCAR, as they are more linked socially than other groups. Developing fan base amongst kids can offer a potential boost in the number of fans for racing due to their connectivity. Kids invest the majority of their times in playing and utilizing smartphones video games. Automobile racing games developed by Napster Case Study Analysis can be a possible source of acquiring attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of getting the attention. NASCAR needs more attention towards customizing and improving its digital functions to attract the kids target market.

Generation Y.
Generation Y target audience consists of those who spent five times more resources on discretionary expenses i.e. acquiring tickets for racing occasions, than others. This substantial expense makes the segment capacity for NASCAR marketing strategy of increasing its fan base. The market section is also simple to technique as 81% of the Y Generation consumer utilizes Facebook the use and every day is twice of using tv and radio. The market section views sports as a get-together, instead of adherence to sport. The market segment thinks about NASCAR as a company doing not have in producing a multiculturalism environment. Napster Case Study Analysis must take various 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 choices regarding marketing. These 5 C's requirements to be evaluated correctly for taking any marketing decision. These 5 C's stands for Climate, Company, Collaborators, Customers and Competitors.


It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE means political, financial, social, technical, ecological and legal and is mentioned above.


Napster Case Study Analysis is a car racing business with having USP of high quality car racing with an international structure. Its sector is sports team and occasions.


Collaborations includes distributors, providers and alliances of Napster Case Study Analysis. It is worked together with different racing groups which are taking part in racing. It likewise worked together with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million yearly 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 also had rights of every video which is shoot during race at track.


The client of Napster 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 children and produce generational loyalty.


The direct rivals of NASCAR are Formula 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of advertising is drivers. It can be said that motorists and race vehicles are rivals. If they got much better chance in terms of prizes and television exposure, these drivers can go versus NASCAR.

Marketing Techniques.

1. Developing and Maintaining Facebook Page.
One of the potential target markets segments for NASCAR is Hispanics which is the growing population segment of USA but regrettably NASCAR had actually been unable to draw in the this targeted section. In order to draw in the young growing generation the NASCAR ought to market by using social media like Facebook. It should establish a Facebook page including the details regarding the races and the places of tracks to make the consumer informative about the core operations of Napster Case Study Help. It must likewise update its Facebook page on daily basis to provide info about its approaching events. This would make the target audience segment more helpful about the business and would lead to attracting big fans base.
2. Developing and Upgrading Accounts of Key Drivers.
Napster Case Study Help chauffeurs 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 an essential aspect for attracting viewers towards tracks and towards tv.
3. Establishing New Games and enhancing current video games for kids.
In order to attract these kids, NASCARA must enhance its current racing video games by introducing personalization in the cars and trucks i.e. altering colours, choice of speed, introducing group racing in the video game, utilizing much better graphics related to the racing tracks and introducing numerous levels in the video game. All these modifications in the present game would provide better experience to kids.
In addition to it, NASCAR should likewise build new video games associated with racing like kids racing with kids characters as motorists, animation racing with racing between different cartoon characters with an option of picking the favourite cartoon character for the kids. These strategies would make it possible for the business to draw in one of its prospective target sections.
4. Presenting multiculturalism at occasions.
NASCAR events are comprised of fans with extremely couple of cultural variety, due to cost of arrival in occasions, making it unsightly for the customers perceiving sport events as social occasions i.e. Generation Y clients. As the Generation Y consumers are a possible target market for NASCAR, for that reason the company must take certain steps to attract this possible target market.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on infrastructure and amenities at tracks since on the race day viewers got disappointed. Audiences have many expectations from Napster Case Study Solution because in exact same market other companies are offering much better services than NASCAR. IF NASCAR don't work on this problem then its fans may shifted to its competitors.

Marketing Budget

Marketing budget made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the cost associated data for the marketing techniques. (See Appendix B). It can be seen that strategy 5 of enhancing consumer experience at tracks would need highest initial investment and cost and technique 4 of presenting multiculturalism will need lowest preliminary investment with least expensive further annually cost. The company must prioritize the resource allotment on these methods on the basis of its readily available resources and the prospective benefits which the technique would offer.
NOTE: The values about cost are presumed on reasonable basis due the absence of figures and truths associated with 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 elements of Napster Case Study Solution triggering the decrease of television viewership rate and presence rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long run. These techniques would handle internal factors like bad consumer experience at tracks, inadequate social media marketing, incapable digital medias like games, absence of culturalisms at tracks etc., along with with external factors like shifting of fans towards other sports, demographical changes in America and changing domesticity styles.