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Note On Pre Money And Post Money Valuation Ab Case Study Solution and Analysis


Intro

Note On Pre Money And Post Money Valuation Ab Case Study Analysis (National Association for Stock Car Auto Racing) is an organization conducting series of Stock Cars and truck racing in United States and serving as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. The organization was founded in 1947, by "Huge Expense" France. NASCAR set up Stock Cars and truck Racing events in United States with the presence of about 130000 audiences usually in 2005. It also relayed its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of earnings for Note On Pre Money And Post Money Valuation Ab Case Study Analysis includes; 10% of the overall earnings from tv rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand name to companies.

NASCAR has a closed corporate culture with the non-interventionist technique. The structure of Automobile of Tomorrow by NASCAR, with an objective of security for the drivers, brought various stress among the stakeholders of the sport.
Executive Summary
The communication audit, carried out in 2010, revealed that regardless of the reality that business highly rely on the communications in between its stakeholders, there was no identifiable company communication technique. The market's target clients, direction and goals were all unidentified.

The audit pointed out different lacking of NASCAR in regards to lack of internal combination, absence of fan management strategy and absence of social and digital media of marketing. The company has complex community with independent tracks, motorists and groups. This structure with closed corporate culture bring various difficulties in speeding up a modification. Other partners in ecosystem consists of the media networks i.e. tv and radio, and corporate online marketers.

Note On Pre Money And Post Money Valuation Ab Case Study Solution viewers was extremely faithful to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and business online marketers.

Problem Declaration.

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

Situational Analysis.

Although the business was quite successful till 2005 with its traditional marketing techniques, however soon after 2005 the business begins facing various problems including decrease of its fan base. Numerous external in addition to internal factors are responsible for the decline. Internal factors consist of; insufficient financial investment in social media and other digital medias of.

Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment. The family system in America was changing resulting in reduction of impact of married male fan base over their youngsters. In addition to it understandings about car was likewise altering with viewing vehicle an automobile to reach at point B from point A, rather than as a fun project. Other obstacles for Note On Pre Money And Post Money Valuation Ab Case Study Solution includes 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, etc. These all challenges were tending the business to modify its marketing methods.

SWOT Analysis.

Strengths.


NASCAR core competencies includes it has rights of dictating guidelines as approving body. Guidelines and rules concerning expert stock cars and truck racing are determined by NASCAR like if any team with required skills and resources can enter into races by following rules and guidelines dictated by NASCAR. All the occasions of NASCAR are sponsored by corporates because of greatest brand name commitment of fans towards brands promoted by Note On Pre Money And Post Money Valuation Ab Case Study Solution.

Weak points.

Weaknesses of NASCAR includes its close culture which is non collective. Note On Pre Money And Post Money Valuation Ab Case Study Solution establishes Car of Tomorrow without collaboration so result is that motorists did not like that concept. It was likewise found that NASCAR had no effective strategy for organisation interaction.
Porter's 5 Forces Analysis
Opportunities.

NASCAR generally utilized to rely on traditional media sources like regional paper for promotion of its sports. NASCAR also came to understand from these conventional media outlets that sport was hard to cover. When sports fans were asked relating to popular stars and stars then NASCAR motorist was not found even in leading twenty reactions.

Threats

Economic down turn was experienced in late 2000 which can be danger for NASCAR because if there is economic down turn then individuals would be having less return on financial investment. Economic down turn likewise results in increase fuel rates which likewise affected NASCAR. Now if NASCAR make substantial investments in brand-new segments which are based on brand-new customers then it may face negative comments from its core fan base.

Porter's Five Forces Analysis

It is crucial to comprehend industry in which company is working due to the fact that NASCAR's bottom line i.e. net revenue is greatly depends on this. There are 5 forces that are utilized to recognize success, intensity and appearance of NASCAR company.

Competitive Competition

These motorists can go versus NASCAR if they got better opportunity in terms of prizes and tv direct exposure. If viewers take pleasure in other race cars and motorists more than NASCAR then audiences can shift to those other interesting automobiles and drivers. NASCAR might be having danger from its two direct competitors that is Formula 1 and Moto GP.
Swot Analysis
Supplier Power

The supplier power suggests the variety of providers are readily available in market and what is the expense connected with provider if business shifts from one provider to another. In this market there is supply monopoly since motorists with needed abilities and resources are restricted.

Purchaser Power

In the case of NASCAR clients are its audiences. Audiences can change to other competitors easily because audiences will having low changing expense.

Hazard of Alternative

Alternatives are referred as alternatives. The substitutes in this case can be other entertainment implies like viewers can shift to other sports. There are broad variety of replacements are readily available in this situation which suggests that risk of alternative is high.

Danger of New Entry

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

PESTEL Analysis

Political


It can not be concluded from case study that there would be modification in resource allotments. NASCAR had got benefit from lower taxation policies which leads to increasing in revenues. So they made heavy investments in the research and advancement. As NASCAR is operating in numerous markets so it requires to face different policies. It is also kept in mind that Note On Pre Money And Post Money Valuation Ab Case Study Solution has actually faced increased analysis relating to regulatory. Every federal government has various priority so NASCAR has to be prepared for it as concern can be moved to other sector.

Affordable

Economic aspects consists of tax rate, exchange rate, financial efficiency of that particular business, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can leverage capabilities of employees to produce brand-new chances and enhance existing chances.

Social

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

Technical

In this case of NASCAR it can be kept in mind that business are heavily spending for research and advancement. NASCAR should also work on its media rights policy with Turner Broadcasting System.

Legal
Vrio Analysis
Due to the fact that every country has various legal terms and conditions, Legal plays a crucial function in every country. Note On Pre Money And Post Money Valuation Ab Case Study Analysis requires to be make sure that they safeguard their legal rights in every county so any business does not damage to its legal rights.

Environmental

Ecological factors are also important for every organisation. NASCAR requires to make sure that its automobiles are not creating pollution more than appropriate level.

7 P's of Marketing

Item

The items of Note On Pre Money And Post Money Valuation Ab Case Study Analysis in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to corporate online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).

Rate.

Rates technique of NASCAR for its race events tickets is based upon the place and importance of the racing events. Along with race occasions tickets, NASCAR also charge various service charge to its stakeholders and makes earnings. For instance it charged approving fees of $1-2 million per race typically in 2005.

Promotion.

Advertising method of Note On Pre Money And Post Money Valuation Ab Case Study Help is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. However, the company is not totally trusted its fan base for its promotion and promote through regional radio stations too. The company has actually also embraced the retailing media of promotion, in which the company sells merchandises with its logo.

Place.

NASCAR have its racing tracks in different cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car 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 comprehend across the country popularity.

Individuals.

Nestle people strategy is comprised of supplying much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are a crucial element of Note On Pre Money And Post Money Valuation Ab Case Study Solution A marketing strategy as its events are the source of entertainment for crowd. Its individuals strategy consists of efforts to supply much better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under individuals technique of NASCAR.

Procedures.

Numerous business processes are needed to conduct racing occasions in an effective way. These procedures include; appropriate schedule of time, arrangement for spectators, selling tickets, arrangement of space for sponsors, handling logistics and so on. These all procedures contribute I developing NASCAR image, enhancing viewers experience and increasing fan base.

Physical Evidence.

Essential physical proofs for the NASCAR consists of the presence of its racing tracks, stock vehicles and racing occasions. In addition to it, its merchandising brand names consisting of tee shirts, caps, goodies etc., likewise act as a physical proof for NASCAR.

Product Life Process Assessment.

The racing events by NASCAR was introduced on June 19, 1949. At the first stage competition for NASCAR was low, as the competitors drove the cars comparable to the cars driven by ordinary individuals.

Growth.

After performing its very first race successfully the company moved towards developing its own tracks. The very first Note On Pre Money And Post Money Valuation Ab Case Study Solution based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards relaying its races on tv in 1979. The first occasion broadcasted on television was flag-to-flag protection of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he changed NASCAR from a regional Sport popular organization into one with international fan base. He initiated a brand-new period of rewarding sponsorships and television agreements for NASCAR.

Maturity.

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

Decline.

The decline in the business's offerings started after 2005 with typical participation rate per race declined by 22% from 2005 to 2010 and tv viewership rate declined by 30% from 2005 to 2010. The significant causes of decline consist of the monetary crisis of 2008, which increased the cost of coming to tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.

Market Segmentation.

The marketplace division of Note On Pre Money And Post Money Valuation Ab Case Study Solution can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographical.

The geographical segmentation of Note On Pre Money And Post Money Valuation Ab Case Help is based upon the geographical existence of its tracks in different 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 various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation offers the business local in addition to worldwide fan base.

Market.

The demographic segmentation of Note On Pre Money And Post Money Valuation Ab Case Study Solution is also highlydiverse based upon the gender, income and age of the consumer. To increase the market sector of its market NASCAR need to revise its marketing techniques to attract more age groups and lower its prices to go into in the market section with a low average earnings.

Psychographic.

The psychological characteristics of most of the fans are quite similar. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to buy tickets and see the races when in a week. 71% of them choose to purchase products with a NASCAR brand. They are rather extrovert and are willing to join other fans while racing. They desire quality racing with low cost at practical location. Although Note On Pre Money And Post Money Valuation Ab Case Study Analysis has actually attempted to increase the quality of its racing by presenting stage racing, they likewise have tried to lower prices and make the occasion easier by introducing live racing.

Behavioural.

Behavioural division of Note On Pre Money And Post Money Valuation Ab Case Study Help is based upon the behaviour of fans in terms of enjoying the race reside on the tv or by going in the occasions. Presently, the fans preference is towards enjoying the race in the house on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as expensive. This choice makes the rates for attendance lower than the rates for television audiences. NASCAR has to alter the behaviour of its fan base by introducing qualitative services at its tracks.

Target audience.

Hispanics.

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

Kids.

Kids are also one of the potential target audience segment for NASCAR, as they are more linked socially than other groups. Developing fan base amongst kids can provide a possible boost in the number of fans for racing due to their connection. Kids spend most of their times in playing and utilizing smart devices video games. Car racing games established by Note On Pre Money And Post Money Valuation Ab Case Study Analysis can be a prospective source of gaining attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of gaining the attention. NASCAR requires more attention towards personalizing and improving its digital features to draw in the kids target market.

This substantial expense makes the sector capacity for NASCAR marketing technique of increasing its fan base. The market segment considers NASCAR as an organization lacking in creating a multiculturalism environment. NASCAR should take different actions to improve 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 evaluated correctly for taking any marketing decision. These 5 C's stands for Climate, Company, Collaborators, Rivals and consumers.

Climate/Context.

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

Company.

NASCAR is a vehicle racing business with having USP of high quality automobile racing with an international structure. Its sector is sports group and occasions. Its target market is males in the age group of 15-60 years. Company has closed corporate culture and having non-interventionist technique.

Cooperations.

Collaborations includes distributors, providers and alliances of Note On Pre Money And Post Money Valuation Ab Case Study Analysis. It is collaborated with different racing groups which are participating in racing. It also worked together with Turners Sport for digital rights. NASCAR used to get pay check of around $15 million each year from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot during race at track.

Consumers.

The customer of Note On Pre Money And Post Money Valuation Ab Case Study Analysis are its audiences. They target customers 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 children and produce generational commitment.

Rivals.

Groups typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. These drivers can go against NASCAR if they got much better chance in terms of prizes and tv direct exposure.

Marketing Strategies.

1. Developing and Preserving Facebook Page.
One of the prospective target audience sections for NASCAR is Hispanics which is the growing population segment of U.S.A. but sadly NASCAR had been unable to attract the this targeted sector. In order to bring in the young growing generation the NASCAR must market by using social media like Facebook. It should develop a Facebook page containing the information concerning the races and the places of tracks to make the customer useful about the core operations of Note On Pre Money And Post Money Valuation Ab Case Study Help. It should also upgrade its Facebook page on everyday basis to offer information about its approaching occasions. This would make the target market sector more helpful about the business and would lead to attracting large fans base.
2. Establishing and Upgrading Accounts of Secret Drivers.
Note On Pre Money And Post Money Valuation Ab Case Study Help motorists has a low star power as compare to gamers of other sports. The poor contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is an important element for drawing in viewers towards tracks and towards tv.
3. Establishing New Games and enhancing present video games for kids.
In order to draw in these kids, NASCARA ought to enhance its present racing video games by introducing customization in the vehicles i.e. changing colours, choice of speed, introducing group racing in the video game, using much better graphics related to the racing tracks and presenting various levels in the game. All these modifications in the current video game would supply better experience to kids.
In addition to it, NASCAR should likewise build new games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing between numerous cartoon characters with an option of choosing the preferred animation character for the kids. These methods would enable the company to bring in one of its possible target sections.
4. Introducing multiculturalism at occasions.
NASCAR events are made up of fans with extremely few cultural variety, due to cost of arrival in events, making it unappealing for the customers perceiving sport events as social events i.e. Generation Y clients. As the Generation Y customers are a prospective target market for NASCAR, therefore the business must take particular steps to attract this possible target market.
5. Improving Customer Experience at Tracks.
Since on the race day viewers got dissatisfied, NASCAR ought to work on infrastructure and facilities at tracks. Viewers have lots of expectations from NASCAR because in very same market other companies are supplying much better services than NASCAR. Then its fans might shifted to its rivals, if NASCAR do not work on this concern. According to fans there were not sufficient facilities were available as compare to other sports service providers. NASCAR must make sure that it supply sufficient centers that consists of cleaned restrooms, comfortable seating plan. They ought to likewise provide WIFI services and accessibility of charge card throughout that track. It ought to be also make sure that there suffice jumbo turns put at all needed locations. There need to be likewise food stalls that provide quality food to viewers. In this way viewers will be having enjoyable experience at the day of occasion. (See Appendix B).

Marketing Budget

Marketing budget made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, shows the expense associated information for the marketing strategies. It can be seen that method 5 of improving client experience at tracks would require greatest preliminary investment and expense and method 4 of presenting multiculturalism will require least expensive preliminary investment with lowest further per year expense.
KEEP IN MIND: The worths about expense are assumed on logical basis due the absence of facts and figures related to cost in the case research study. Inflation rate of United States is assumed to be 10%.

Recommendations.
Recommendations
On the basis of deep analysis of the internal and external factors of Note On Pre Money And Post Money Valuation Ab Case Study Solution causing the decrease of tv viewership rate and attendance rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long run. These techniques would handle internal aspects like poor customer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., along with with external elements like moving of fans towards other sports, demographical changes in America and altering family life designs.