Note On Pre Money And Post Money Valuation Ab Case Study Solution & Analysis
Intro
Note On Pre Money And Post Money Valuation Ab Case Study Solution (National Association for Stock Vehicle Vehicle Racing) is a company carrying out series of Stock Automobile racing in United States and acting as an approving body for driving the guidelines for Stock Cars and truck Racing. The organization was founded in 1947, by "Huge Expense" France. NASCAR arrange Stock Cars and truck Racing events in United States with the presence of about 130000 viewers usually in 2005. It also broadcast its events in about 150 countries. Stock Vehicle Racing by NASCAR is the 2nd biggest viewer sport, with greatest 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 consists of; 10% of the overall revenue from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed corporate culture with the non-interventionist method. Nevertheless this non collective technique brings stress in the sport. The structure of Vehicle of Tomorrow by Note On Pre Money And Post Money Valuation Ab Case Study Analysis, with an intent of safety for the motorists, brought various stress amongst the stakeholders of the sport.
The communication audit, performed in 2010, exposed that in spite of the truth that the service highly rely on the interactions in between its stakeholders, there was no identifiable company communication strategy. (
The audit pointed out different lacking of NASCAR in terms of absence 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 business culture bring numerous obstacles in speeding up a modification. Other partners in community consists of the media networks i.e. television and radio, and corporate online marketers.
Note On Pre Money And Post Money Valuation Ab Case Study Help viewers was extremely faithful to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate online marketers.
Problem Declaration.
The company is currently dealing with the issue of decreasing rates of presence at racing tracks and rates of television audiences. This can put a considerable impact on its revenues from sponsors, media rights, and from other sources of income.
Situational Analysis.
The business was rather effective till 2005 with its conventional marketing methods, however soon after 2005 the company begins facing different issues consisting of decline of its fan base. Numerous external along with internal factors are responsible for the decrease. Internal factors consist of; inadequate financial 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 produce generational loyalty. Other obstacles for NASCAR consists of the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, and so on.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths defined as company's qualities which are various from its rivals. These are company's core proficiencies on which company performance or business success based upon. Note On Pre Money And Post Money Valuation Ab Case Study Help core proficiencies includes it has rights of determining guidelines as approving body. Guidelines and policies relating to expert stock vehicle racing are determined by NASCAR like if any group with needed skills and resources can enter into races by following guidelines and regulations dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise 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 broadcast in more than 150 countries around the globe with more than $56 million incomes. The main sources of their revenues 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. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and corporate sponsors. Since of greatest brand name commitment of fans towards brands marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weak points.
Weak Points in SWOT Analysis are thought about as external elements. Weaknesses includes the elements that stops company to carry out at needed level of effectiveness. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They generally used to form rules and other needed procedures without intervention of others which leads to poor collaboration. NASCAR develops Automobile of Tomorrow without partnership so result is that motorists did not like that principle. As this is racing sport so covering of sports by media is also difficult. It was also discovered that NASCAR had no efficient technique for organisation communication. If it took place off track, they don't know how to manage issue. Inefficient service communication results in that they do not have clear instructions for their long term goals. They do not understand that where they want to see this sport in future.
Opportunities.
Opportunities in SWOT analysis are external factors which can be favourable to company or the external elements on which business is having competitive benefit. NASCAR usually utilized to count on traditional media sources like local newspaper for promotion of its sports. Usually these conventional media sources try to cover their home team and certain kind of occasions. NASCAR likewise came to know from these standard media outlets that sport was tough to cover. Media landscape also changed from conventional to digital landscape. Newspapers failed. NASCAR can work on its capabilities to get optimal possible benefits from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were also offered to Turner Sports. NASCAR utilized to get pay check of around $15 million each year from Turner Sports. There are number of cons behind this deal. 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 every single video which is shoot during race at track. Then they are required to pay licensing costs to Turner Sport, if media sources like papers, publications and cable channels want to post videos of races on their particular pages. So NASCAR can work on conditions and terms and try to work out with Turner Sports to get optimal advantages of it. Star power plays extremely essential function in creating incomes from every sport. Nevertheless it was kept in mind that Note On Pre Money And Post Money Valuation Ab Case Study Help is lagging in this area i.e. star power. For example when sports fans were asked regarding popular stars and stars then NASCAR chauffeur was not discovered even in leading twenty actions. NASCAR can put efforts in this area too for revenue generation. They need to assist their chauffeurs that how they can end up being sport stars. 4 strategic focuses which are created by research study group can also be served as chance for NESCAR. These four strategic focuses compares and analysis Note On Pre Money And Post Money Valuation Ab Case Study Help techniques.
Dangers
Economic down turn was experienced in late 2000 which can be hazard for NASCAR since if there is financial down turn then people would be having less return on financial investment. Economic down turn also results in boost fuel rates which likewise affected NASCAR. Now if NASCAR make substantial investments in new segments which are based on brand-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 market in which company is working. It assists in identifying what are strengths and weak point of any specific market. It recommend that every industry is different from one another. Since NASCAR's bottom line i.e. net revenue is greatly depends on this, it is essential to understand market in which company is working. There are 5 forces that are utilized to recognize success, strength and beauty of Note On Pre Money And Post Money Valuation Ab Case Study Help business.
Competitive Rivalry
This force shows capability of rivals. Teams generally represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be stated that chauffeurs and race automobiles are competitors. If they got better opportunity in terms of prizes and tv direct exposure, these chauffeurs can go against Note On Pre Money And Post Money Valuation Ab Case Study Analysis. If viewers delight in other race cars and drivers more than NASCAR then viewers can shift to those other fascinating vehicles and drivers. NASCAR might be having threat from its two direct competitors that is Formula 1 and Moto GP. They require to create competitive benefits for chauffeurs so they don't shift to other rivals.
Provider Power
If company shifts from one provider to another, the provider power shows the number of suppliers are readily available in industry and what is the cost associated with supplier. Since drivers with needed skills and resources are limited, in this market there is supply monopoly.
Purchaser Power
In the case of NASCAR customers are its audiences. Viewers can switch to other rivals quickly because audiences will having low changing cost.
Risk of Substitution
Substitutes are referred as options. The substitutes in this case can be other home entertainment suggests like viewers can shift to other sports. There are wide range of alternatives are offered in this situation which suggests that hazard of alternative is high.
Danger of New Entry
In the case of NASCAR threat of new entry is low. They require to construct cars and racing tracks and also requires to pay large amount to motorists for changing.
PESTEL Analysis
Political
It can not be concluded from case study that there would be change in resource allocations. NASCAR had got benefit from lower taxation policies which results in increasing in revenues. They made heavy investments in the research study and development. As NASCAR is operating in various markets so it needs to face various policies. It is likewise kept in mind that Note On Pre Money And Post Money Valuation Ab Case Study Analysis has actually dealt with increased examination concerning regulative. Every federal government has various top priority so NASCAR has to be prepared for it as concern can be moved to other sector.
Economical
Financial elements consists of taxation rate, currency exchange rate, financial performance of that specific business, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can take advantage of abilities of employees to develop brand-new opportunities and enhance existing chances.
Social
Each has different social worths and standards. It assists in comprehending concerning society and choice of consumers.
Technical
In this case of NASCAR it can be kept in mind that business are heavily spending for research and advancement. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Legal
Because every nation has various legal terms and conditions, Legal plays an important function in every country. Note On Pre Money And Post Money Valuation Ab Case Study Solution needs to be ensure that they safeguard their legal rights in every county so any business does not hurt to its legal rights.
Environmental
Ecological factors are also important for every organisation. NASCAR requires to make sure that its cars are not creating contamination more than appropriate level.
7 P's of Marketing
Product
The products of Note On Pre Money And Post Money Valuation Ab Case Study Help in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Price.
Pricing technique of NASCAR for its race occasions tickets is based upon the location and value of the racing occasions. In addition to race events tickets, NASCAR likewise charge various service charge to its stakeholders and earns earnings. It charged sanctioning fees of $1-2 million per race on average in 2005.
Promotion.
Marketing technique 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. The company is not completely relied upon its fan base for its promo and promote through regional radio stations too. The business has actually likewise embraced the merchandising media of promo, in which the company sells merchandises with its logo design.
Place.
NASCAR have its racing tracks in different cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to grasp across the country popularity.
Individuals.
Nestle individuals technique is consisted of providing much better experience to its viewers, its fan base and to all of its stakeholders. People are an important aspect of Note On Pre Money And Post Money Valuation Ab Case Study Analysis A marketing technique as its occasions are the source of home entertainment for crowd. Its individuals method consists of efforts to provide much better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under individuals technique of NASCAR.
Processes.
A number of service procedures are required to carry out racing events in an effective way. These processes include; correct schedule of time, arrangement for viewers, selling tickets, plan of space for sponsors, managing logistics and so on. These all procedures contribute I constructing NASCAR image, improving spectators experience and increasing fan base.
Physical Proof.
Essential physical proofs for the NASCAR includes the existence of its racing tracks, stock vehicles and racing occasions. Together with it, its merchandising brands including tee shirts, caps, goodies etc., also act as a physical evidence for NASCAR.
Product Life Process Assessment.
The racing events by NASCAR was presented on June 19, 1949. At the very first stage competitors for NASCAR was low, as the rivals drove the cars comparable to the automobiles driven by common individuals.
Growth.
The very first NASCAR based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the business moved towards relaying its races on television in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular organization into one with global fan base. He initiated a brand-new period of lucrative sponsorships and tv contracts for NASCAR.
Maturity.
The maturity duration for NASCAR began with the efforts of William France Jr., with the business having wide variety of income sources. The business has about 500 sponsors with broadcasting its events in about 150 countries. The company has a great deal of tracks in the majority of the cities of United States.
Decrease.
The significant causes of decline consist of the monetary crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel prices, and the shifting of its fan base towards other sports.
Market Division.
The marketplace segmentation 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 division of Note On Pre Money And Post Money Valuation Ab Case Solution is based upon the geographical presence of its tracks in numerous states and cities in United States, and the tv broadcasting of its events in numerous countries. The business has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division provides the company regional along with worldwide fan base.
Demographic.
The group division of Note On Pre Money And Post Money Valuation Ab Case Study Help is also highlydiverse based upon the gender, earnings and age of the consumer. To increase the group section of its market NASCAR ought to revise its marketing strategies to bring in more age groups and lower its prices to enter in the market section with a low average earnings.
Psychographic.
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to purchase tickets and see the races when in a week. NASCAR has actually attempted to increase the quality of its racing by presenting phase racing, they likewise have actually attempted to lower costs and make the event more practical by introducing live racing.
Behavioural.
Behavioural segmentation of Note On Pre Money And Post Money Valuation Ab Case Study Solution is based upon the behaviour of fans in regards to watching the race survive on the tv or by entering the occasions. Presently, the fans choice is towards watching the race at home on television rather than going, as the customer experience at NASCAR tracks is not beneficial in addition to costly. This preference makes the rates for presence lower than the rates for tv audiences. NASCAR needs to change the behaviour of its fan base by presenting qualitative services at its tracks.
Target audience.
Hispanics.
One of the possible target audience of Note On Pre Money And Post Money Valuation Ab Case Study Solution was Hispanics; the young and growing population of United States. The marketplace section has excellent potential for NASCAR as the population was growing at a greater 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 segment shows affinity with automobile culture, however need a more focused marketing towards welcoming the sector towards racing.
Kids.
Kids are also one of the possible target market sector for NASCAR, as they are more linked socially than other groups. Cars and truck racing video games established by Note On Pre Money And Post Money Valuation Ab Case Study Help can be a possible source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and improving its digital features to attract the kids target market.
This substantial expenditure makes the sector potential for NASCAR marketing technique of increasing its fan base. The market section considers NASCAR as a company lacking in developing a multiculturalism atmosphere. NASCAR must take various actions 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 relating to marketing.
Climate/Context.
It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, environmental and legal and is mentioned above.
Business.
Note On Pre Money And Post Money Valuation Ab Case Study Help is an automobile racing business with having USP of high quality car racing with a global structure. Its sector is sports team and occasions.
Partnerships.
Collaborations includes distributors, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application.
Customers.
The consumer of Note On Pre Money And Post Money Valuation Ab Case Study Help are its viewers. They target customers with having age of 15-60 years. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment.
Rivals.
The direct competitors of NASCAR are Formula 1 and Moto GP. Teams usually represents sponsors in NASCAR and the medium of advertising is chauffeurs. Therefore it can be stated that motorists and race automobiles are competitors. These motorists can break Note On Pre Money And Post Money Valuation Ab Case Study Analysis if they improved chance in terms of prizes and television exposure.
Marketing Strategies.
1. Developing and Keeping Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population sector of U.S.A. but regrettably NASCAR had been not able to draw in the this targeted segment. In order to attract the young growing generation the NASCAR need to market by utilizing social media like Facebook. It needs to develop a Facebook page including the information regarding the races and the areas of tracks to make the customer useful about the core operations of Note On Pre Money And Post Money Valuation Ab Case Study Solution. It should likewise upgrade its Facebook page on everyday basis to supply details about its upcoming occasions. This would make the target audience segment more informative about the business and would result in bring in big fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
Note On Pre Money And Post Money Valuation Ab Case Study Solution chauffeurs has a low star power as compare to players of other sports. The poor contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is a crucial factor for attracting viewers towards tracks and towards television.
3. Establishing New Games and improving existing video games for kids.
Kids invested the majority of their time on playing games and using smart devices. But regrettably, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less brought in towards the sport. In order to bring in these kids, NASCARA should enhance its existing racing games by presenting customization in the cars i.e. changing colours, choice of speed, presenting group racing in the game, using much better graphics connected to the racing tracks and presenting different levels in the video game. All these modifications in the present video game would supply much better experience to kids.
Along with it, NASCAR needs to likewise build new games associated with racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between numerous animation characters with a choice of selecting the preferred cartoon character for the kids. These strategies would allow the business to draw in one of its potential target sectors.
4. Presenting multiculturalism at events.
Note On Pre Money And Post Money Valuation Ab Case Study Analysis occasions are comprised of fans with extremely few multiculturalism, due to cost of arrival in events, making it unsightly for the clients perceiving sport events as social occasions i.e. Generation Y consumers. As the Generation Y customers are a possible target market for NASCAR, for that reason the business ought to take specific steps to attract this prospective target market. It ought to adopt strategies to draw in the consumers far from the tracks area with different culture. The strategy to do so could be offering special discount rates on tickets or complimentary tickets to viewers originating from a specific range or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more satisfied.
5. Improving Client Experience at Tracks.
NASCAR must work on facilities and features at tracks because on the race day audiences got disappointed. Viewers have numerous expectations from Note On Pre Money And Post Money Valuation Ab Case Study Help due to the fact that in exact same market other companies are offering better services than NASCAR. IF NASCAR do not work on this concern then its fans might shifted to its rivals.
Marketing Budget plan
Marketing budget plan made on the basis of the above strategies for the period of 5 years from 2011 to 2015, reveals the expense associated data for the marketing methods. It can be seen that method 5 of enhancing client experience at tracks would need highest initial financial investment and cost and strategy 4 of presenting multiculturalism will require lowest initial financial investment with lowest even more per year expense.
NOTE: The values about expense are presumed on rational basis due the absence of realities and figures related to cost in the case research study. Inflation rate of United States is assumed to be 10%.
Recommendations.
On the basis of deep analysis of the external and internal aspects of Note On Pre Money And Post Money Valuation Ab Case Study Analysis triggering the decrease of tv viewership rate and participation rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long term. These techniques would cope with internal aspects like bad consumer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, in addition to with external elements like shifting of fans towards other sports, demographical changes in America and changing family life designs.
