Progressive Insurance Case Study Solution and Analysis
NASCAR (National Association for Stock Vehicle Car Racing) is a company conducting series of Stock Car racing in United States and acting as a sanctioning body for driving the guidelines for Stock Vehicle Racing. 2) Stock Car Racing by NASCAR is the second largest viewer sport, with highest number of sponsors. 1) The other sources of revenue for Progressive Insurance Case Study Help includes; 10% of the total income from television rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist method. This non collective method brings stress in the sport. The structure of Cars and truck of Tomorrow by Progressive Insurance Case Study Help, with an intent of security for the chauffeurs, brought different tensions among the stakeholders of the sport.
The communication audit, conducted in 2010, exposed that despite the truth that the business extremely depend on the communications in between its stakeholders, there was no identifiable company communication strategy. The industry's target clients, direction and goals were all unknown.
The audit mentioned various lacking of NASCAR in regards to lack of internal integration, absence of fan management method and lack of digital and social media of marketing. The company has intricate environment with independent tracks, teams and chauffeurs. This structure with closed corporate culture bring numerous obstacles in speeding up a modification. Other partners in community consists of the media networks i.e. tv and radio, and corporate marketers.
Progressive Insurance Case Study Analysis viewers was highly faithful to the sport and the brand names related to the NASCAR, making it appealing for sponsors and corporate online marketers.
The business is presently dealing with the issue of decreasing rates of participation at racing tracks and rates of tv audiences. This can put a considerable effect on its profits from sponsors, media rights, and from other sources of revenue.
Although the company was quite successful till 2005 with its conventional marketing methods, however soon after 2005 the business starts facing various issues consisting of decrease of its fan base. Several external in addition to internal factors are responsible for the decline. Internal factors include; 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 develop generational loyalty. But the household system in America was changing resulting in reduction of influence of married male fan base over their youngsters. Together with it perceptions about automobile was likewise changing with perceiving vehicle an automobile to reach at point B from point A, rather than as a fun job. Other challenges for Progressive Insurance 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, and so on. These all obstacles were tending the business to modify its marketing techniques.
In SWOT analysis, strengths specified as business's qualities which are different from its rivals. These are business's core proficiencies on which business performance or business success based on. Progressive Insurance Case Study Solution core proficiencies includes it has rights of dictating rules as approving body. Guidelines and guidelines concerning expert stock car racing are determined by NASCAR like if any group with required abilities and resources can enter into races by following rules and regulations dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise consists of 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 utilized to relay in more than 150 nations worldwide with more than $56 million revenues. The main sources of their earnings originate from television rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide 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 occasions of NASCAR are sponsored by corporates due to the fact that of biggest brand commitment of fans towards brand names advertised by Progressive Insurance Case Study Solution. (See Appendix A).
Weaknesses in SWOT Analysis are thought about as external elements. Weaknesses includes the elements that stops business to carry out at required level of effectiveness. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist technique. They typically utilized to form rules and other needed processes without intervention of others which leads to poor collaboration. NASCAR establishes Automobile of Tomorrow without partnership so result is that motorists did not like that idea. As this is racing sport so covering of sports by media is also hard. It was likewise found that NASCAR had no effective technique for organisation interaction. They do not understand how to deal with concern if it took place off track. Inefficient company interaction leads to that they don't have clear direction for their long term objectives. They do not know that where they wish to see this sport in future.
NASCAR generally utilized to rely on standard media sources like local paper for publicity of its sports. NASCAR likewise came to understand from these traditional media outlets that sport was difficult to cover. When sports fans were asked relating to popular celebs and stars then NASCAR driver was not discovered even in top twenty responses.
Risks in SWOT analysis are defined as external aspects that can risk to company's success. Due to the fact that if there is financial down turn then people would be having less return on investment, Economic down turn was experienced in late 2000 which can be threat for NASCAR. Earning of individuals would be effected and they would be more conscious in investing their loan. Economic down turn also results in boost fuel costs which also impacted NASCAR. Due to the fact that fans of NASCAR utilized to attend its occasion from long distances. NESCAR had a rule of 65/25/10 for income distribution. 65 percent earnings from media rights would be dispersed to race course, 25 percent profits would be dispersed to completing group and staying 10 percent would be maintained by NESCAR which is approving body. Competing team wanted to increase their portion of income from 25 percent due to the fact that of increase in running expense of a race team and likewise there is decline in the number of full-season sponsorship. NESCAR likewise deals with risks from other sponsors because they are making huge investments to enhance experience of fans. Which includes updating existing opportunities, developing brand-new opportunities, providing Wi-Fi facility and likewise offering other interactive mediums to engage sports on smartphones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and develop generational loyalty. The difficulty is that the household system in America was altering resulting in decrease of impact of married male fan base over their youngsters. Along with it perceptions about vehicle was also changing with viewing cars and truck an automobile to reach at point B from point A, instead of as a fun task. If NASCAR make significant investments in brand-new sectors which are based on new clients then it may face negative comments from its core fan base, now.
Porter's Five Forces Analysis
It is important to comprehend industry in which company is working due to the fact that NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are utilized to identify profitability, strength and appearance of NASCAR organisation.
These motorists can go versus NASCAR if they got better chance in terms of prizes and tv direct exposure. If viewers delight in other race automobiles and drivers more than NASCAR then viewers can move to those other fascinating vehicles and drivers. NASCAR might be having threat from its two direct competitors that is Solution 1 and Moto GP.
The supplier power suggests the variety of providers are offered in market and what is the expense connected with supplier if company shifts from one supplier to another. Because drivers with needed resources and skills are limited, in this market there is supply monopoly.
In the case of NASCAR consumers are its viewers. Viewers can change to other competitors easily since viewers will having low changing expense.
Risk of Substitution
Alternatives are referred as options. The replacements in this case can be other home entertainment means like viewers can shift to other sports. There are large range of alternatives are readily available in this scenario which recommends that hazard of alternative is high.
Danger of New Entry
It is defined as how it is simple for any company to enter in that particular industry. In the case of Progressive Insurance Case Study Analysis hazard of brand-new entry is low. Because if any business needs to enter in this company than they need to make heavy investments. They need to build automobiles and racing tracks and also needs to pay hefty total up to chauffeurs for switching.
It can not be concluded from case study that there would be change in resource allotments. NASCAR had actually got take advantage of lower taxation policies which results in increasing in earnings. So they made heavy investments in the research and advancement. As NASCAR is working in numerous markets so it requires to face different regulations. It is likewise noted that Progressive Insurance Case Study Solution has dealt with increased examination concerning regulatory. Every government has different priority so NASCAR needs to be prepared for it as top priority can be shifted to other sector.
Financial elements includes tax rate, currency exchange rate, economic performance of that specific company, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be affected. NASCAR can utilize capabilities of employees to develop new chances and enhance existing opportunities.
Each has various social values and standards. It assists in comprehending regarding society and preference of consumers.
Innovation has influence on nearly every service. It includes development in organisation technique. In this case of Progressive Insurance Case Study Analysis it can be noted that business are heavily spending for research and development. NASCAR needs to also deal with its media rights policy with Turner Broadcasting System.
Due to the fact that every nation has different legal terms and conditions, Legal plays a crucial function in every country. Progressive Insurance Case Study Solution requires to be make sure that they secure their legal rights in every county so any company does not harm to its legal rights.
Environmental factors are likewise important for every single organisation. Since typically governments don't allow those service which can harm to environment. These environmental aspects consists of laws concerning contamination, climate modification, safe waste disposal, policies concerning insurance etc. NASCAR needs to make sure that its cars and trucks are not generating pollution more than appropriate level.
7 P's of Marketing
The products of Progressive Insurance Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to corporate online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race occasions tickets is based upon the place and significance of the racing events. Along with race occasions tickets, NASCAR also charge numerous service charge to its stakeholders and earns profits. It charged approving fees of $1-2 million per race on average in 2005.
Advertising method of NASCAR 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.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in most of the cities in United States to grasp nationwide appeal.
Nestle individuals method is comprised of offering much better experience to its audiences, its fan base and to all of its stakeholders. People are an important element of Progressive Insurance Case Study Analysis A marketing method as its occasions are the source of entertainment for crowd. Its people technique consists of efforts to offer better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under people strategy of NASCAR.
Several organisation procedures are required to carry out racing occasions in an efficient method. These procedures include; appropriate schedule of time, arrangement for spectators, offering tickets, plan of space for sponsors, handling logistics and so on. These all processes contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Crucial physical evidences for the NASCAR consists of the existence of its racing tracks, stock vehicles and racing occasions. In addition to it, its retailing brands including t-shirts, caps, goodies and so on, likewise act as a physical evidence for NASCAR.
Product Life Process Assessment.
The racing events by NASCAR was presented on June 19, 1949. At the first phase competition for NASCAR was low, as the competitors drove the cars similar to the automobiles driven by normal individuals.
The first NASCAR based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards relaying its races on tv in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with global fan base. He initiated a brand-new era of financially rewarding sponsorships and television agreements for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having wide variety of income sources. The company has about 500 sponsors with broadcasting its events in about 150 countries. The company has a great deal of tracks in most of the cities of United States.
The significant causes of decrease include the financial crisis of 2008, which increased the expense of getting here at tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.
The marketplace segmentation of Progressive Insurance Case Study Solution can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Progressive Insurance Case Analysis is based upon the geographical existence of its tracks in numerous states and cities in United States, and the television broadcasting of its occasions in numerous 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 company regional in addition to international fan base.
The demographic segmentation of Progressive Insurance Case Study Help is also highlydiverse based upon the gender, earnings and age of the consumer. To increase the group sector of its market NASCAR must modify its marketing strategies to draw in more age groups and lower its prices to go into in the market segment with a low average income.
NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to purchase tickets and see the races as soon as in a week. NASCAR has attempted to increase the quality of its racing by introducing stage racing, they also have actually attempted to lower costs and make the event more convenient by presenting live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the events. Presently, the fans choice is towards enjoying the race at home on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as expensive.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has great possible for NASCAR as the population was growing at a greater rate and it was expected to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are also one of the prospective target market sector for NASCAR, as they are more connected socially than other groups. Automobile racing video games developed by Progressive Insurance Case Study Analysis can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and enhancing its digital features to bring in the kids target market.
This substantial expense makes the segment potential for NASCAR marketing method of increasing its fan base. The market sector considers NASCAR as an organization doing not have in developing a multiculturalism atmosphere. NASCAR must 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 decisions regarding marketing. These 5 C's requirements to be analysed properly for taking any marketing decision. These 5 C's mean Environment, Company, Collaborators, Competitors and clients.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, environmental and legal and is stated above.
NASCAR is an automobile racing business with having USP of high quality vehicle racing with an international structure. Its sector is sports team and occasions. Its target audience is males in the age of 15-60 years. Business has closed corporate culture and having non-interventionist method.
Collaborations consists of suppliers, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.
The customer of Progressive Insurance Case Study Analysis are its viewers. They target clients 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 produce generational commitment.
The direct rivals of NASCAR are Solution 1 and Moto GP. Groups generally represents sponsors in NASCAR and the medium of marketing is motorists. Therefore it can be stated that chauffeurs and race cars and trucks are rivals. These motorists can break Progressive Insurance Case Study Solution if they got better opportunity in regards to prizes and tv direct exposure.
1. Developing and Keeping Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population section of USA however unfortunately NASCAR had been not able to draw in the this targeted segment. It should establish a Facebook page including the details concerning 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.
Progressive Insurance Case Study Solution chauffeurs has a low star power as compare to gamers of other sports. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is an important element for attracting audiences towards tracks and towards tv.
3. Establishing New Games and enhancing present games for kids.
Kids spent most of their time on playing video games and using mobile phones. But unfortunately, kids playing NASCARA have a worst experience of playing its video games. As a result, they are less attracted towards the sport. In order to draw in these kids, NASCARA must enhance its present racing games by presenting personalization in the automobiles i.e. altering colours, choice of speed, introducing group racing in the game, using much better graphics connected to the racing tracks and introducing different levels in the video game. All these modifications in the current game would offer better experience to kids.
In addition to it, NASCAR ought to likewise develop new video games related to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing between different cartoon characters with an option of selecting the favourite cartoon character for the kids. These strategies would enable the company to attract among its prospective target sectors.
4. Introducing multiculturalism at occasions.
Progressive Insurance Case Study Solution events are consisted of fans with extremely few multiculturalism, due to cost of arrival in occasions, making it unattractive for the consumers perceiving sport events as social occasions i.e. Generation Y consumers. As the Generation Y consumers are a possible target audience for NASCAR, therefore the business ought to take certain procedures to attract this possible target audience. It should adopt techniques to bring in the customers far from the tracks place with different culture. The method to do so could be supplying unique discount rates on tickets or complimentary tickets to audiences coming from a particular distance or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR must work on facilities and features at tracks because on the race day audiences got disappointed. Viewers have lots of expectations from Progressive Insurance Case Study Help because in same market other business are offering better services than NASCAR. IF NASCAR do not work on this concern then its fans may shifted to its rivals.
Marketing Budget plan
Marketing budget plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the expense related data for the marketing methods. It can be seen that strategy 5 of improving client experience at tracks would need highest preliminary investment and cost and technique 4 of presenting multiculturalism will need most affordable preliminary investment with most affordable further per year cost.
KEEP IN MIND: The worths about expense are assumed on logical basis due the absence of figures and facts associated with cost in the event study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the external and internal elements of Progressive Insurance Case Study Help triggering the decrease of television viewership rate and participation rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long run. These techniques would cope with internal aspects like bad customer experience at tracks, inadequate social media marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, in addition to with external aspects like moving of fans towards other sports, demographical changes in America and altering domesticity designs.