Napster Online Case Study Solution

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Napster Case Study Solution & Analysis


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

NASCAR has a closed business culture with the non-interventionist approach. Nevertheless this non collaborative technique brings stress in the sport. The building of Automobile of Tomorrow by Napster Case Study Solution, with an intention of safety for the motorists, brought different stress amongst the stakeholders of the sport.
Executive Summary
The communication audit, performed in 2010, revealed that regardless of the reality that business extremely count on the communications between its stakeholders, there was no identifiable company interaction method. The market's target customers, instructions and goals were all unidentified.

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

Napster Case Study Solution audiences was extremely loyal to the sport and the brands connected with the NASCAR, making it appealing for sponsors and corporate online marketers.

Issue Statement.

The company is currently dealing with the problem of decreasing rates of presence at racing tracks and rates of television viewers. This can put a significant influence on its earnings from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The business was quite effective till 2005 with its traditional marketing techniques, however soon after 2005 the company begins dealing with various problems including decline of its fan base. Several external in addition to internal factors are accountable for the decrease. Internal factors consist of; inadequate 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 children and develop generational loyalty. But the household system in America was altering resulting in decrease of influence of married male fan base over their youngsters. Together with it perceptions about car was likewise changing with viewing cars and truck a lorry to reach at point B from point A, instead of as an enjoyable project. Other difficulties for Napster Case Study Help 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 homes through jumbo turns, Wi-Fi gain access to, etc. These all challenges were tending the business to revise its marketing methods.

SWOT Analysis.


In SWOT analysis, strengths defined as business's qualities which are various from its rivals. These are business's core competencies on which company efficiency or business success based on. Napster Case Study Help core competencies includes it has rights of dictating rules as approving body. Regulations and guidelines regarding professional stock car racing are dictated by NASCAR like if any team with needed skills and resources can participate in races by following rules and policies determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise includes that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to broadcast in more than 150 nations around the globe with more than $56 million earnings. The primary sources of their earnings come from television rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and business sponsors. All the events of NASCAR are sponsored by corporates because of most significant brand loyalty of fans toward brand names promoted by Napster Case Study Solution. (See Appendix A).

Weak points.

Weak Points in SWOT Analysis are considered as external aspects. Weaknesses includes the elements that stops business to perform at required level of performance. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They normally utilized to form rules and other needed procedures without intervention of others which leads to poor collaboration. NASCAR develops Vehicle of Tomorrow without partnership so result is that chauffeurs did not like that idea. As this is racing sport so covering of sports by media is likewise difficult. It was likewise found that NASCAR had no efficient method for organisation communication. If it happened off track, they do not know how to handle problem. Inefficient organisation communication results in that they don't have clear direction for their long term goals. They don't understand that where they wish to see this sport in future.
Porter's 5 Forces Analysis

NASCAR usually used to rely on traditional media sources like local paper for promotion of its sports. NASCAR also came to know from these traditional media outlets that sport was tough to cover. When sports fans were asked regarding popular stars and stars then NASCAR chauffeur was not found even in top twenty actions.


Economic down turn was experienced in late 2000 which can be risk for NASCAR because if there is economic down turn then people would be having less return on financial investment. Economic down turn likewise results in boost fuel prices which likewise affected NASCAR. Now if NASCAR make significant financial investments in new segments which are based on new customers then it might face negative remarks from its core fan base.

Porter's 5 Forces Analysis

It is important to understand industry in which company is working due to the fact that NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are used to determine profitability, intensity and appearance of NASCAR organisation.

Competitive Competition

This force shows ability of competitors. Teams normally represents sponsors in NASCAR and the medium of marketing is motorists. Therefore it can be said that drivers and race vehicles are competitors. If they got much better chance in terms of rewards and television exposure, these motorists can go versus Napster Case Study Analysis. Then viewers can move to those other fascinating cars and trucks and drivers, if viewers take pleasure in other race vehicles and drivers more than NASCAR. NASCAR might be having hazard from its two direct rivals that is Formula 1 and Moto GP. They need to create competitive advantages for drivers so they don't shift to other competitors.
Swot Analysis
Provider Power

The supplier power shows the variety of providers are available in industry and what is the cost connected with supplier if business shifts from one provider to another. Due to the fact that drivers with required abilities and resources are restricted, in this industry there is supply monopoly.

Buyer Power

This force is regarding to clients that is it easy for clients to move to other products. Then consumers are less most likely to switch, if there is more changing cost is associated. In the case of NASCAR customers are its viewers. Because viewers will having low changing expense, audiences can change to other rivals easily.

Hazard of Alternative

Replacements are referred as alternatives. The alternatives in this case can be other entertainment means like viewers can shift to other sports. So there are wide variety of replacements are offered in this situation which suggests that danger of alternative is high.

Danger of New Entry

In the case of NASCAR risk of new entry is low. They need to construct cars and racing tracks and likewise needs to pay significant amount to motorists for switching.

PESTEL Analysis


It can not be concluded from case study that there would be change in resource allotments. NASCAR had got take advantage of lower taxation policies which results in increasing in profits. They made heavy financial investments in the research study and development. As NASCAR is operating in various markets so it needs to face different guidelines. It is likewise kept in mind that Napster Case Study Analysis has dealt with increased analysis regarding regulatory. Every federal government has various top priority so NASCAR needs to be gotten ready for it as concern can be shifted to other sector.


Financial aspects consists of tax rate, exchange rate, financial performance of that particular business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be affected if there is federal government intervention in the marketing and sales sector. NASCAR can leverage abilities of workers to produce new opportunities and improve existing chances.


Each has various social worths and standards. It assists in comprehending concerning society and preference of customers.


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

Vrio Analysis
Because every country has various legal terms and conditions, Legal plays a crucial role in every nation. Napster Case Study Help requires to be make certain that they protect their legal rights in every county so any business does not hurt to its legal rights.


Environmental factors are likewise essential for each business. Because normally governments do not enable those service which can hurt to environment. These ecological aspects includes laws regarding pollution, climate change, safe garbage disposal, policies concerning insurance and so on. NASCAR needs to make sure that its automobiles are not producing contamination more than appropriate level.

7 P's of Marketing


The items of Napster Case Study Solution in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).


Prices technique of NASCAR for its race occasions tickets is based upon the location and importance of the racing events. Together with race events tickets, NASCAR likewise charge numerous service charge to its stakeholders and earns revenue. It charged sanctioning costs of $1-2 million per race on average in 2005.


Marketing strategy of Napster Case Study Help is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. Nevertheless, the company is not totally trusted its fan base for its promotion and promote through regional radio stations too. The business has actually likewise adopted the merchandising media of promotion, in which the company sells merchandises with its logo.


NASCAR have its racing tracks in numerous cities in United States. The most important 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.


Nestle people strategy is consisted of supplying better experience to its viewers, its fan base and to all of its stakeholders. People are a crucial aspect of Napster Case Study Analysis A marketing method as its events are the source of entertainment for crowd. Its individuals method includes efforts to offer better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under people method of NASCAR.


Numerous organisation processes are required to carry out racing occasions in an efficient way. These procedures consist of; correct schedule of time, plan for viewers, offering tickets, plan of space for sponsors, managing logistics etc. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.

Physical Evidence.

Essential physical proofs for the NASCAR consists of the presence of its racing tracks, stock automobiles and racing events. Along with it, its retailing brand names including t-shirts, caps, goodies and so on, also act as a physical evidence for NASCAR.

Product Life Process Evaluation.

The racing occasions by NASCAR was presented on June 19, 1949. At the very first phase competitors for NASCAR was low, as the rivals drove the automobiles comparable to the automobiles driven by regular people.


The first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the business moved towards broadcasting its races on tv in 1979.

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 company into one with global fan base. He initiated a new age of financially rewarding 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 revenue sources. The company has about 500 sponsors with relaying its occasions in about 150 nations. The company has large number of tracks in most of the cities of United States.


The significant causes of decrease consist of the financial crisis of 2008, which increased the cost of getting here at tracks for viewers due to increasing fuel prices, and the shifting of its fan base towards other sports.

Market Segmentation.

The market division of Napster Case Study Solution can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Napster Case Help is based upon the geographical existence of its tracks in different states and cities in United States, and the tv broadcasting of its events in numerous nations. 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 vast geographical division offers the business local as well as worldwide fan base.


The market segmentation of Napster Case Study Analysis is likewise highlydiverse based upon the gender, income and age of the consumer. To increase the group sector of its market NASCAR need to modify its marketing methods to draw in more age groups and lower its costs to go into in the market section with a low typical income.


The mental qualities of most of the fans are quite comparable. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races as soon as in a week. 71% of them prefer to buy items with a NASCAR trademark name. They are rather extrovert and want to mingle with other fans while racing. They desire quality racing with low price at hassle-free place. NASCAR has actually tried to increase the quality of its racing by presenting stage racing, they likewise have actually attempted to lower prices and make the event more practical by presenting live racing.


Behavioural division of NASCAR is based upon the behaviour of fans in terms of viewing the race live on the tv or by going in the events. Presently, the fans choice is towards seeing the race at home on television rather than going, as the client experience at NASCAR tracks is not favourable as well as pricey.

Target Market.


Among the potential target market of Napster Case Study Solution was Hispanics; the young and growing population of United States. The market segment has great prospective for NASCAR as the population was growing at a higher rate and it was anticipated to end up being thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. The section shows affinity with car culture, however require a more focused marketing towards welcoming the section towards racing.


Kids are also among the prospective target audience section for NASCAR, as they are more linked socially than other groups. Developing fan base among kids can provide a possible boost in the number of fans for racing due to their connectivity. Kids spend most of their times in using mobile phones and playing video games. Automobile racing video games established by Napster Case Study Solution can be a prospective source of acquiring attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of getting the attention. NASCAR requires more attention towards customizing and improving 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 costs i.e. purchasing tickets for racing occasions, than others. This substantial expense makes the sector capacity for NASCAR marketing method of increasing its fan base. The marketplace sector is also simple to method as 81% of the Y Generation consumer utilizes Facebook the usage and every day is two times of using tv and radio. The market segment views sports as a social occasion, rather than adherence to sport. The marketplace segment thinks about NASCAR as a company doing not have in developing a multiculturalism atmosphere. Napster Case Study Analysis needs to take numerous steps to improve the experience of Generation Y customers in its occasions.

5 C's of Marketing

5 C's of marketing helps in taking choices regarding marketing.


It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, environmental and legal and is specified above.


NASCAR is a vehicle racing company with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports team and events. Its target market is males in the age of 15-60 years. Business has actually closed business culture and having non-interventionist approach.


Collaborations includes distributors, suppliers and alliances of Napster Case Study Help. It is collaborated with various racing teams which are taking part in racing. It likewise worked together with Turners Sport for digital rights. NASCAR used to get pay check of around $15 million every year from Turner Sports. There are variety 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 likewise had rights of every video which is shoot throughout race at track.


The consumer of Napster Case Study Solution are its viewers. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and create generational commitment.


The direct competitors of NASCAR are Solution 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of advertising is drivers. For that reason it can be stated that drivers and race vehicles are rivals. These drivers can go against Napster Case Study Analysis if they got better chance in terms of prizes and tv exposure.

Marketing Techniques.

1. Developing and Preserving Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population segment of U.S.A. however sadly NASCAR had actually been unable to draw in the this targeted sector. It needs to establish a Facebook page containing the information regarding the races and the locations of tracks to make the customer helpful about the core operations of NASCAR.
2. Developing and Updating Accounts of Secret Drivers.
Napster Case Study Analysis chauffeurs has a low star power as compare to players 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 important factor for drawing in audiences towards tracks and towards television.
3. Developing New Games and improving existing video games for kids.
In order to draw in these kids, NASCARA should enhance its current racing video games by introducing customization in the automobiles i.e. changing colours, selection of speed, introducing group racing in the game, utilizing better graphics related to the racing tracks and introducing numerous levels in the game. All these adjustments in the current video game would supply much better experience to kids.
Together with it, NASCAR needs to likewise develop new games related to racing like kids racing with kids characters as motorists, animation racing with racing in between various animation characters with a choice of selecting the favourite cartoon character for the kids. These strategies would enable the company to draw in one of its possible target sections.
4. Introducing multiculturalism at occasions.
NASCAR occasions are made up of fans with extremely couple of cultural variety, due to cost of arrival in occasions, making it unappealing for the consumers perceiving sport occasions as social celebrations i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, for that reason the business ought to take specific procedures to attract this potential target market.
5. Improving Customer Experience at Tracks.
Because on the race day audiences got dissatisfied, NASCAR should work on facilities and features at tracks. Since in same market other business are providing better services than NASCAR, viewers have many expectations from Napster Case Study Solution. Then its fans might shifted to its competitors, if NASCAR don't work on this concern. According to fans there were not appropriate facilities were available as compare to other sports service providers. NASCAR ought to make sure that it provide adequate centers that includes cleaned up bathrooms, comfortable seating arrangement. They ought to likewise supply WIFI services and ease of access of charge card throughout that track. It should be likewise make sure that there suffice jumbo turns put at all needed locations. There ought to be also food stalls that supply quality food to audiences. In this way audiences will be having enjoyable experience at the day of event. (See Appendix B).

Marketing Spending plan

Marketing spending plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the expense associated data for the marketing strategies. It can be seen that technique 5 of improving client experience at tracks would need highest initial investment and expense and technique 4 of presenting multiculturalism will require most affordable initial financial investment with lowest further per year expense.
KEEP IN MIND: The values about cost are assumed on logical basis due the lack of figures and realities related to cost in the case research study. Inflation rate of United States is presumed to be 10%.

On the basis of deep analysis of the internal and external elements of Napster Case Study Analysis causing the decline of tv viewership rate and attendance rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long run. These strategies would cope with internal aspects like bad consumer experience at tracks, insufficient social media marketing, incapable digital medias like games, lack of culturalisms at tracks and so on, along with with external factors like shifting of fans towards other sports, demographical modifications in America and changing domesticity designs.