Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Solution and Analysis
Introduction
NASCAR (National Association for Stock Vehicle Car Racing) is an organization conducting series of Stock Cars and truck racing in United States and acting as an approving body for driving the guidelines for Stock Car Racing. 2) Stock Automobile Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of income for Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Analysis consists of; 10% of the overall income from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed corporate culture with the non-interventionist approach. The building of Cars and truck of Tomorrow by NASCAR, with an intention of security for the chauffeurs, brought different stress among the stakeholders of the sport.
The interaction audit, performed in 2010, revealed that regardless of the truth that the service highly rely on the interactions in between its stakeholders, there was no identifiable organisation interaction method. (
The audit mentioned different doing not have of NASCAR in regards to absence of internal integration, absence of fan management method and lack of social and digital media of marketing. The business has complicated ecosystem with independent tracks, teams and motorists. This structure with closed business culture bring different obstacles in speeding up a change. Other partners in community includes the media networks i.e. television and radio, and corporate marketers.
Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help audiences was highly devoted to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate marketers.
Issue Statement.
The business is presently facing the issue of declining rates of participation at racing tracks and rates of tv viewers. This can put a substantial effect on its revenues from sponsors, media rights, and from other sources of earnings.
Situational Analysis.
Although the business was quite successful till 2005 with its conventional marketing methods, however not long after 2005 the business starts facing different issues consisting of decline of its fan base. A number of external as well as internal factors are responsible for the decrease. Internal aspects consist of; inadequate financial investment in social media and other digital medias of.
Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and create generational commitment. But the family system in America was changing resulting in decrease of impact of married male fan base over their youngsters. In addition to it understandings about automobile was also altering with viewing cars and truck a car to reach at point B from point A, instead of as a fun project. Other difficulties for Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help 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. These all obstacles were tending the company to revise its marketing methods.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths defined as company's qualities which are different from its competitors. These are company's core competencies on which business performance or company success based on. Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Solution core competencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and policies relating to professional stock cars and truck racing are determined by NASCAR like if any team with needed skills and resources can enter into races by following guidelines and regulations dictated by NASCAR. NASCAR has monopoly it this element. Its strengths also 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 transmit in more than 150 countries around the world with more than $56 million revenues. The main sources of their incomes come from tv rights, sanctioning charges, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and corporate sponsors. Since of greatest brand name loyalty of fans towards brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses.
Weak Points in SWOT Analysis are considered as external factors. Weak points includes the elements that stops business to carry out at required level of performance. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They normally utilized to form guidelines and other needed processes without intervention of others which results in poor collaboration. NASCAR establishes Car of Tomorrow without cooperation so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is also hard. It was likewise discovered that NASCAR had no efficient strategy for service interaction. They do not know how to deal with problem if it occurred off track. Ineffective service communication results in that they do not have clear instructions for their long term goals. They do not know that where they wish to see this sport in future.
Opportunities.
NASCAR normally utilized to rely on conventional media sources like local newspaper for promotion of its sports. NASCAR likewise came to know from these traditional media outlets that sport was hard to cover. When sports fans were asked regarding popular celebrities and stars then NASCAR driver was not found even in leading twenty actions.
Threats
Economic down turn was experienced in late 2000 which can be hazard for NASCAR due to the fact that if there is financial down turn then individuals would be having less return on investment. Economic down turn likewise results in increase fuel costs which likewise affected NASCAR. Now if NASCAR make considerable investments in brand-new segments which are based on brand-new consumers then it might face negative remarks from its core fan base.
Porter's 5 Forces Analysis
It is important to understand market in which business is working because NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are utilized to identify success, strength and beauty of NASCAR business.
Competitive Rivalry
This force indicates capability of rivals. Groups usually represents sponsors in NASCAR and the medium of advertising is chauffeurs. Therefore it can be said that motorists and race cars are competitors. These chauffeurs can break NASCAR if they got better opportunity in terms of prizes and television direct exposure. Then viewers can shift to those other fascinating cars and chauffeurs, if audiences take pleasure in other race cars and trucks and drivers more than NASCAR. NASCAR could be having risk from its two direct competitors that is Solution 1 and Moto GP. They require to create competitive benefits for drivers so they do not move to other rivals.
Supplier Power
If company shifts from one supplier to another, the supplier power shows the number of suppliers are readily available in industry and what is the expense associated with supplier. Because chauffeurs with needed skills and resources are restricted, in this market there is supply monopoly.
Purchaser Power
This force is concerning to customers that is it simple for customers to shift to other items. Then clients are less likely to switch, if there is more changing cost is associated. In the case of NASCAR clients are its audiences. Due to the fact that audiences will having low switching cost, audiences can switch to other rivals easily.
Risk of Substitution
Alternatives are referred as alternatives. The substitutes in this case can be other home entertainment means like audiences can shift to other sports. So there are vast array of substitutes are offered in this situation which recommends that hazard of replacement is high.
Hazard of New Entry
In the case of NASCAR threat of new entry is low. They need to build cars and racing tracks and also requires to pay substantial amount to drivers for switching.
PESTEL Analysis
Political
As NASCAR is working in numerous markets so it requires to deal with different policies. It is likewise noted that NASCAR has actually faced increased scrutiny relating to regulative. Every federal government has different concern so NASCAR has actually to be prepared for it as concern can be shifted to other sector.
Cost-effective
Economic aspects consists of tax rate, exchange rate, economic efficiency of that specific company, 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 affected. NASCAR can take advantage of capabilities of staff members to create new opportunities and improve existing chances.
Social
Each has different social values and standards. It assists in comprehending concerning society and choice of customers.
Technical
In this case of NASCAR it can be noted that companies are greatly spending for research and development. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Legal
Legal plays a crucial role in every country since every nation has different legal conditions. Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Solution needs to be ensure that they protect their legal rights in every county so any company does not harm to its legal rights.
Environmental
Environmental elements are likewise essential for every business. NASCAR requires to make sure that its cars and trucks are not generating pollution more than appropriate level.
7 P's of Marketing
Product
The products of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Analysis 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 corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rate.
Rates strategy of NASCAR for its race events tickets is based upon the location and value of the racing occasions. Along with race occasions tickets, NASCAR also charge numerous service charge to its stakeholders and earns revenue. For example it charged sanctioning charges of $1-2 million per race typically in 2005.
Promotion.
Advertising technique of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races. Nevertheless, the business is not totally relied upon its fan base for its promo and promote through regional radio stations too. The company has likewise adopted the merchandising media of promo, in which the business offers merchandises with its logo design.
Place.
NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in the majority of the cities in United States to grasp nationwide appeal.
Individuals.
Nestle individuals strategy is comprised of providing much better experience to its audiences, its fan base and to all of its stakeholders. People are an essential element of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Solution A marketing technique as its occasions are the source of entertainment for crowd. Its people technique consists of efforts to supply much better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under individuals strategy of NASCAR.
Procedures.
Several company procedures are needed to carry out racing events in an effective way. These procedures include; proper schedule of time, plan for spectators, offering tickets, plan of space for sponsors, managing logistics and so on. These all processes contribute I building NASCAR image, improving viewers experience and increasing fan base.
Physical Proof.
Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock vehicles and racing events. Along with it, its merchandising brands consisting of t-shirts, caps, goodies etc., also act as a physical proof for NASCAR.
Product Life Process Evaluation.
The racing events by Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help was introduced on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first stage competition for NASCAR was low, as the competitors drove the automobiles comparable to the cars and trucks driven by normal people.
Development.
After performing its first race effectively the business moved towards developing its own tracks. The first Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Analysis based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards relaying its races on tv in 1979. The very first event transmitted on tv was flag-to-flag coverage of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with worldwide fan base. He initiated a brand-new era of financially rewarding sponsorships and tv contracts for NASCAR.
Maturity.
The maturity duration for NASCAR began with the efforts of William France Jr., with the company having wide variety of profits sources. The business has about 500 sponsors with relaying its events in about 150 nations. The company has a great deal of tracks in the majority of the cities of United States.
Decline.
The significant causes of decline consist of the financial crisis of 2008, which increased the cost of arriving at tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.
Market Segmentation.
The market division of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Solution can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographic.
The geographical segmentation of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Help is based upon the geographical presence of its tracks in various states and cities in United States, and the tv broadcasting of its events in different 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 large geographical division offers the business regional along with international fan base.
Group.
The group segmentation of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Solution is likewise highlydiverse based upon the gender, income and age of the customer. To increase the group section of its market NASCAR must modify its marketing strategies to attract more age groups and lower its costs to enter in the market segment with a low average income.
Psychographic.
The psychological qualities of most of the fans are rather similar. NASCAR has a fan base with a loyalty. When in a week, NASCAR fans view it compulsive to buy tickets and see the races. 71% of them choose to acquire items with a NASCAR trademark name. They are quite extrovert and want to mingle with other fans while racing. They desire quality racing with low rate at convenient location. Although Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Solution has attempted to increase the quality of its racing by introducing stage racing, they also have tried to lower prices and make the occasion easier by presenting live racing.
Behavioural.
Behavioural division of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help is based upon the behaviour of fans in terms of enjoying the race live on the television or by going in the occasions. Currently, the fans choice is towards enjoying the race in the house on tv rather than going, as the consumer experience at NASCAR tracks is not favourable as well as pricey. This preference makes the rates for presence lower than the rates for tv viewers. NASCAR needs to alter the behaviour of its fan base by introducing qualitative services at its tracks.
Target Market.
Hispanics.
Among the prospective target audience of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help was Hispanics; the young and growing population of United States. The marketplace section has great potential for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The segment shows affinity with cars and truck culture, however need a more focused marketing towards inviting the section towards racing.
Kids.
Kids are likewise one of the possible target audience sector for NASCAR, as they are more linked socially than other groups. Producing fan base among kids can supply a possible increase in the variety of fans for racing due to their connection. Kids invest most of their times in playing and using mobile phones computer game. Car racing video games developed by Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of acquiring the attention. NASCAR requires more attention towards customizing and enhancing its digital functions to attract the kids target market.
This huge expense makes the section potential for NASCAR marketing strategy of increasing its fan base. The market section considers NASCAR as a company doing not have in producing a multiculturalism atmosphere. NASCAR ought to take numerous 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.
Climate/Context.
It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, environmental and legal and is mentioned above.
Business.
NASCAR is an auto racing company with having USP of high quality car racing with a global structure. Its sector is sports group and events. Its target market is males in the age of 15-60 years. Business has actually closed business culture and having non-interventionist method.
Cooperations.
Collaborations consists of suppliers, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million every year from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application.
Clients.
The client of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Solution are its audiences. They target clients 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 children and develop generational loyalty.
Competitors.
The direct competitors of NASCAR are Formula 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of advertising is chauffeurs. It can be stated that drivers and race cars are competitors. These chauffeurs can go against Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help if they got better opportunity in regards to prizes and television direct exposure.
Marketing Techniques.
1. Establishing and Keeping Facebook Page.
One of the possible target markets sectors for NASCAR is Hispanics which is the growing population segment of U.S.A. however unfortunately NASCAR had actually been not able to attract the this targeted segment. It ought to develop a Facebook page consisting of the information relating to the races and the locations of tracks to make the customer useful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR drivers has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Exhibit). The major factor behind it is that, the racers mainly play in teams and are not able to construct an essential account and preserve a close contact with fans. The poor contacts with fans lead to less attraction of audiences towards the racers and a low star power. Star power is a crucial factor for drawing in viewers towards tracks and towards television. The star power for the motorists at NASCARA might be enhanced by creating and updating accounts of key chauffeurs by NASCARA itself. This would get rid of the requirement of requiring chauffeurs to maintain their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Establishing New Games and enhancing current games for kids.
In order to bring in these kids, NASCARA needs to improve its existing racing video games by introducing personalization in the cars and trucks i.e. altering colours, choice of speed, introducing group racing in the video game, utilizing much better graphics related to the racing tracks and presenting numerous levels in the video game. All these adjustments in the present video game would offer better experience to kids.
Along with it, NASCAR needs to likewise build brand-new games associated with racing like kids racing with kids characters as motorists, animation racing with racing between numerous cartoon characters with an option of selecting the preferred cartoon character for the kids. These strategies would enable the business to draw in among its prospective target segments.
4. Introducing multiculturalism at occasions.
NASCAR events are comprised of fans with extremely few cultural diversity, due to cost of arrival in occasions, making it unappealing for the customers viewing sport events as social celebrations i.e. Generation Y consumers. As the Generation Y customers are a possible target market for NASCAR, therefore the company needs to take particular measures to attract this prospective target market.
5. Improving Client Experience at Tracks.
Since on the race day viewers got disappointed, NASCAR must work on infrastructure and facilities at tracks. Audiences have numerous expectations from NASCAR due to the fact that in very same industry other business are providing much better services than NASCAR. Then its fans may moved to its competitors, if NASCAR do not work on this issue. According to fans there were not sufficient facilities were offered as compare to other sports providers. NASCAR needs to make sure that it supply appropriate facilities that consists of cleaned up washrooms, comfortable seating plan. They should likewise provide WIFI services and availability of charge card throughout that track. It needs to be also make certain that there are enough jumbo turns positioned at all needed locations. There must be also food stalls that supply quality food to viewers. In this method 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 methods for the period of 5 years from 2011 to 2015, reveals the cost related information for the marketing techniques. (See Appendix B). It can be seen that strategy 5 of improving client experience at tracks would need greatest preliminary investment and expense and method 4 of presenting multiculturalism will need lowest preliminary investment with most affordable even more annually cost. The business must prioritize the resource allowance on these strategies on the basis of its readily available resources and the possible benefits which the technique would offer.
KEEP IN MIND: The worths about expense are presumed on logical basis due the absence of figures and facts associated with cost in the case research study. Inflation rate of United States is assumed to be 10%.
Suggestions.
On the basis of deep analysis of the external and internal elements of Organizational Support For Employees Encouraging Creative Ideas For Environmental Sustainability Case Study Help causing the decrease of television viewership rate and presence rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long run. These methods would deal with internal factors like bad consumer experience at tracks, inadequate social networks marketing, incapable digital medias like games, lack of culturalisms at tracks etc., along with with external aspects like moving of fans towards other sports, demographical modifications in America and altering family life designs.
