Napster Case Study Solution & Analysis
NASCAR (National Association for Stock Cars And Truck Vehicle Racing) is a company conducting series of Stock Vehicle racing in United States and acting as an approving body for driving the rules for Stock Vehicle Racing. 2) Stock Automobile Racing by NASCAR is the second largest spectator sport, with highest number of sponsors. 1) The other sources of earnings for Napster Case Study Analysis includes; 10% of the total revenue from television rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed corporate culture with the non-interventionist approach. This non collaborative technique brings tensions in the sport. The structure of Automobile of Tomorrow by Napster Case Study Solution, with an intent of security for the chauffeurs, brought various tensions amongst the stakeholders of the sport.
The communication audit, carried out in 2010, exposed that regardless of the truth that business highly rely on the communications between its stakeholders, there was no identifiable organisation interaction method. The industry's target consumers, instructions and objectives were all unknown.
The audit explained different lacking of NASCAR in regards to lack of internal integration, lack of fan management technique and absence of digital and social media of marketing. The business has complicated community with independent tracks, drivers and teams. This structure with closed corporate culture bring numerous obstacles in accelerating a change. Other partners in environment consists of the media networks i.e. television and radio, and corporate marketers.
Napster Case Study Analysis viewers was highly devoted to the sport and the brand names related to the NASCAR, making it appealing for sponsors and business online marketers.
The business is presently facing the problem of decreasing rates of participation at racing tracks and rates of television audiences. This can put a significant effect on its revenues from sponsors, media rights, and from other sources of profits.
Although the company was rather successful till 2005 with its standard marketing methods, but not long after 2005 the company begins facing numerous issues consisting of decline of its fan base. Several external along with internal elements are accountable for the decrease. Internal aspects consist of; insufficient financial 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 produce generational loyalty. Other difficulties for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, and so on.
NASCAR core competencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and policies relating to expert stock car racing are determined by NASCAR like if any team with needed abilities and resources can enter into races by following rules and guidelines dictated by NASCAR. All the events of NASCAR are sponsored by corporates since of biggest brand commitment of fans toward brand names marketed by Napster Case Study Help.
Weak Points in SWOT Analysis are thought about as external aspects. Weaknesses consists of the factors that stops company to perform at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They generally utilized to form rules and other required procedures without intervention of others which leads to poor partnership. NASCAR establishes Automobile of Tomorrow without partnership so result is that chauffeurs did not like that concept. As this is racing sport so covering of sports by media is also tough. It was likewise discovered that NASCAR had no effective method for company interaction. If it took place off track, they don't understand how to deal with problem. Inadequate service communication results in that they don't have clear direction for their long term objectives. They do not understand that where they want to see this sport in future.
Opportunities in SWOT analysis are external aspects which can be beneficial to company or the external factors on which business is having competitive benefit. NASCAR typically used to depend on conventional media sources like regional newspaper for publicity of its sports. Usually these conventional media sources attempt to cover their house team and particular sort of events. NASCAR also familiarized from these conventional media outlets that sport was challenging to cover. Media landscape also changed from traditional to digital landscape. Newspapers went out of business. NASCAR can deal with its abilities to get maximum possible take advantage of this new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in digital and social 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 every year from Turner Sports. There are number of cons behind this offer. For instance Napster Case Study Help had to get approval from Turner Sport if it want to create its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of every video which is shoot during race at track. If media sources like newspapers, publications and cable television channels wish to post videos of races on their respective pages then they are needed to pay licensing fees to Turner Sport. So NASCAR can work on conditions and terms and attempt to work out with Turner Sports to get maximum benefits of it. Star power plays very essential function 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 concerning popular celebrities and stars then NASCAR driver was not discovered even in top twenty responses. NASCAR can put efforts in this area too for earnings generation. They need to assist their drivers that how they can become sport stars. 4 tactical focuses which are created by research group can likewise be acted as chance for NESCAR. These four tactical focuses compares and analysis Napster Case Study Analysis methods.
Economic down turn was experienced in late 2000 which can be risk for NASCAR due to the fact that if there is economic down turn then individuals would be having less return on financial investment. Economic down turn also results in increase fuel costs which likewise impacted NASCAR. Now if NASCAR make substantial investments in new segments which are based on new clients then it may face unfavorable comments from its core fan base.
Porter's Five Forces Analysis
It is important to understand industry in which company is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are used to identify success, strength and beauty of NASCAR company.
These drivers can go versus NASCAR if they got much better opportunity in terms of prizes and tv direct exposure. If audiences enjoy other race automobiles and drivers more than NASCAR then viewers can move to those other intriguing automobiles and chauffeurs. NASCAR could be having danger from its 2 direct competitors that is Formula 1 and Moto GP.
If business shifts from one supplier to another, the supplier power indicates the number of suppliers are offered in industry and what is the expense associated with provider. Since motorists with required skills and resources are restricted, in this market there is supply monopoly.
In the case of NASCAR clients are its audiences. Viewers can switch to other competitors easily since audiences will having low switching cost.
Risk of Replacement
Alternatives are referred as options. The alternatives in this case can be other home entertainment means like viewers can move to other sports. There are broad variety of replacements are available in this scenario which recommends that risk of replacement is high.
Risk of New Entry
In the case of NASCAR hazard of brand-new entry is low. They require to develop cars and racing tracks and likewise needs to pay substantial amount to chauffeurs for switching.
It can not be concluded from case research study that there would be modification in resource allowances. NASCAR had actually got benefit from lower tax policies which results in increasing in earnings. They made heavy investments in the research and development. As NASCAR is operating in various markets so it requires to deal with various regulations. It is also kept in mind that Napster Case Study Analysis has faced increased scrutiny concerning regulative. Every government has different concern so NASCAR needs to be gotten ready for it as concern can be shifted to other sector.
Economic aspects includes taxation rate, exchange rate, economic performance 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 utilize capabilities of workers to produce new chances and improve existing chances.
Every society is different from each other. Each has various social worths and standards. It helps in comprehending concerning society and choice of customers. Social elements consists of traditions, culture, mindsets towards particular services and products, demographics, standards, interests and so on. It can be concluded that advertising through other ways instead of traditional (i.e. newspaper) can be chosen in this society.
In this case of NASCAR it can be noted that companies are heavily investing for research and advancement. NASCAR should also work on its media rights policy with Turner Broadcasting System.
Legal plays a crucial function in every nation because every nation has different legal conditions. Napster Case Study Help needs to be ensure that they protect their legal rights in every county so any company does not damage to its legal rights.
Environmental elements are also important for each business. Because normally governments don't permit those organisation which can harm to environment. These ecological factors includes laws regarding contamination, climate change, safe waste disposal, policies concerning insurance and so on. NASCAR requires to make certain that its vehicles are not generating contamination more than appropriate 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, approving guidelines for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Pricing strategy of NASCAR for its race occasions tickets is based upon the venue and significance of the racing occasions. Together with race events tickets, NASCAR also charge different service charge to its stakeholders and makes revenue. For instance it charged sanctioning charges of $1-2 million per race on average in 2005.
Advertising method of Napster Case Study Solution is extremely based upon its fan base. A strong fan base share its fandom with others and increase the variety of viewers for NASCAR races. The company is not completely relied upon its fan base for its promotion and promote through local radio stations too. The company has actually likewise adopted the merchandising media of promotion, in which the business offers merchandises with its logo.
NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in most of the cities in United States to grasp nationwide popularity.
Nestle individuals strategy is comprised of offering much better experience to its audiences, its fan base and to all of its stakeholders. People are a crucial aspect of Napster Case Study Help A marketing strategy as its occasions are the source of home entertainment for crowd. Its people strategy includes efforts to offer much better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under individuals strategy of NASCAR.
Numerous organisation processes are needed to perform racing occasions in an efficient way. These processes include; appropriate schedule of time, plan for viewers, offering tickets, arrangement of space for sponsors, managing logistics and so on. These all procedures contribute I developing NASCAR image, enhancing viewers experience and increasing fan base.
Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock automobiles and racing events. Along with it, its retailing brand names including tee shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.
Item Life Process Evaluation.
The racing events by Napster Case Study Solution was introduced 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 first stage competition for NASCAR was low, as the competitors drove the vehicles similar to the vehicles driven by regular people.
After performing its first race effectively the business moved towards constructing its own tracks. The very first Napster Case Study Solution based track, namely the Darlington Raceway track, was started 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 tv in 1979. The first event relayed on television was flag-to-flag coverage of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with worldwide fan base. He started a brand-new era of lucrative sponsorships and television contracts for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the company having vast array of income sources. The business has about 500 sponsors with broadcasting its occasions in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
The major causes of decrease consist of the financial crisis of 2008, which increased the cost of showing up at tracks for viewers due to increasing fuel prices, and the shifting of its fan base towards other sports.
The marketplace division of Napster Case Study Analysis can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Napster Case Solution is based upon the geographical existence of its tracks in various states and cities in United States, and the television broadcasting of its occasions in various nations. 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 huge geographical segmentation offers the company regional along with international fan base.
The demographic division of Napster Case Study Analysis is likewise highlydiverse based upon the gender, income and age of the consumer. To increase the demographic sector of its market NASCAR must revise its marketing techniques to bring in more age groups and lower its rates to enter in the market segment with a low average income.
The mental attributes of the majority of the fans are quite similar. NASCAR has a fan base with a loyalty. When in a week, NASCAR fans view it compulsive to acquire tickets and see the races. 71% of them choose to purchase products with a NASCAR brand. They are rather extrovert and want to mingle with other fans while racing. They want quality racing with low rate at convenient place. NASCAR has actually tried to increase the quality of its racing by presenting stage racing, they likewise have attempted to lower rates and make the occasion more practical by presenting live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of viewing the race live on the tv or by going in the occasions. Presently, the fans choice is towards seeing the race at house on television rather than going, as the consumer experience at NASCAR tracks is not favourable as well as pricey.
Among the possible target audience of Napster Case Study Help was Hispanics; the young and growing population of United States. The market sector has great 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 sector has increasing wealth rate with about $1 trillion of wealth in 2014. The sector reveals affinity with cars and truck culture, however need a more concentrated marketing towards inviting the sector towards racing.
Kids are likewise one of the potential target market segment for NASCAR, as they are more connected socially than other groups. Car racing games established by Napster Case Study Help can be a prospective source of getting attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and improving its digital features to draw in the kids target market.
This substantial expenditure makes the section potential for NASCAR marketing method of increasing its fan base. The market segment considers NASCAR as a company doing not have in developing a multiculturalism environment. NASCAR must take numerous steps to enhance the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking choices concerning marketing. These 5 C's needs to be analysed appropriately for taking any marketing choice. These 5 C's stands for Environment, Business, Collaborators, Customers and Rivals.
It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE means political, financial, social, technical, legal and environmental and is mentioned above.
NASCAR is a car racing company with having USP of high quality vehicle racing with an international structure. Its sector is sports group and events. Its target audience is males in the age of 15-60 years. Business has actually closed business culture and having non-interventionist technique.
Collaborations consists of distributors, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application.
The customer of Napster Case Study Help are its audiences. They target clients 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.
Groups generally represents sponsors in NASCAR and the medium of advertising is motorists. These drivers can go against NASCAR if they got much better chance in terms of rewards and tv exposure.
1. Establishing and Preserving Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population section of U.S.A. however sadly NASCAR had been not able to bring in the this targeted sector. It must develop a Facebook page consisting of the info concerning the races and the areas of tracks to make the consumer informative about the core operations of NASCAR.
2. Developing and Updating Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Exhibit). The major factor behind it is that, the racers mostly play in groups and are unable to build a key account and maintain a close contact with fans. The poor contacts with fans lead to less tourist attraction of viewers towards the racers and a low star power. Star power is an essential element for attracting audiences towards tracks and towards television. The star power for the chauffeurs at NASCARA might be improved by creating and upgrading accounts of crucial chauffeurs by NASCARA itself. This would eliminate the requirement of requiring drivers to keep their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Developing New Games and improving existing video games for kids.
In order to attract these kids, NASCARA needs to improve its present racing games by introducing modification in the vehicles i.e. changing 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 adjustments in the existing video game would offer better experience to kids.
In addition to it, NASCAR must also build new games associated with racing like kids racing with kids characters as drivers, animation racing with racing in between various animation characters with a choice of selecting the favourite animation character for the kids. These methods would allow the company to bring in one of its prospective target segments.
4. Presenting multiculturalism at occasions.
NASCAR events are comprised of fans with really few cultural diversity, due to cost of arrival in events, making it unattractive for the clients perceiving sport occasions as social events i.e. Generation Y customers. As the Generation Y customers are a prospective target market for NASCAR, for that reason the company should take particular measures to attract this prospective target market.
5. Improving Customer Experience at Tracks.
Since on the race day viewers got disappointed, NASCAR should work on facilities and features at tracks. Since in same market other business are offering much better services than NASCAR, audiences have lots of expectations from Napster Case Study Solution. IF NASCAR do not work on this concern then its fans might moved to its rivals. According to fans there were not adequate centers were readily available as compare to other sports suppliers. NASCAR ought to make sure that it offer appropriate facilities that includes cleaned up bathrooms, comfy seating plan. They should also provide WIFI services and availability of charge card throughout that track. It must be likewise make certain that there are enough jumbo turns placed at all required locations. There need to be also food stalls that provide quality food to viewers. In this method viewers will be having enjoyable experience at the day of event. (See Appendix B).
Marketing Budget plan.
Marketing spending plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the expense related data for the marketing techniques. (See Appendix B). It can be seen that method 5 of enhancing consumer experience at tracks would need greatest preliminary investment and expense and method 4 of presenting multiculturalism will need lowest initial investment with least expensive even more annually cost. The business should focus on the resource allocation on these techniques on the basis of its available resources and the potential advantages which the method would provide.
NOTE: The worths about expense are assumed on logical basis due the absence of truths and figures connected to cost in the event research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal aspects of Napster Case Study Analysis triggering 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 term. These strategies would cope with internal aspects like poor consumer experience at tracks, inadequate social networks marketing, incapable digital medias like games, lack of culturalisms at tracks etc., as well as with external aspects like shifting of fans towards other sports, demographical modifications in America and altering family life designs.