Progressive Insurance Case Study Solution and Analysis
Progressive Insurance Case Study Analysis (National Association for Stock Automobile Car Racing) is an organization conducting series of Stock Vehicle racing in United States and acting as an approving body for driving the rules for Stock Car Racing. The company was established in 1947, by "Big Costs" France. NASCAR set up Stock Automobile Racing occasions in United States with the existence of about 130000 audiences on average in 2005. It likewise broadcast its events in about 150 countries. Stock Cars And Truck Racing by NASCAR is the second largest viewer sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of income for Progressive Insurance Case Study Analysis consists of; 10% of the overall earnings from television rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed corporate culture with the non-interventionist approach. The building of Vehicle of Tomorrow by NASCAR, with an intent of safety for the motorists, brought numerous stress among the stakeholders of the sport.
The interaction audit, conducted in 2010, exposed that despite the reality that the business extremely rely on the interactions in between its stakeholders, there was no identifiable business communication technique. The industry's target consumers, direction and goals were all unknown.
The audit pointed out numerous doing not have of NASCAR in terms of absence of internal combination, absence of fan management technique and lack of social and digital media of marketing. The business has complicated community with independent tracks, groups and motorists. This structure with closed corporate culture bring different obstacles in accelerating a change. Other partners in ecosystem includes the media networks i.e. television and radio, and business online marketers.
Progressive Insurance Case Study Help audiences was extremely devoted to the sport and the brand names related to the NASCAR, making it appealing for sponsors and business online marketers.
The company is currently facing the issue of declining rates of participation at racing tracks and rates of television viewers. This can put a substantial impact on its profits from sponsors, media rights, and from other sources of profits.
Although the company was rather successful till 2005 with its conventional marketing methods, however right after 2005 the company starts facing numerous problems including decline of its fan base. Numerous external along with internal factors are accountable for the decrease. Internal factors include; insufficient investment in social media and other digital medias of.
Fan base of NASCAR made up of married males with an average age of 47, which passes their fandom to their children and produce generational loyalty. Other difficulties for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, and so on.
In SWOT analysis, strengths specified as business's qualities which are different from its competitors. These are business's core competencies on which business efficiency or business success based upon. Progressive Insurance Case Study Solution core competencies includes it has rights of dictating rules as approving body. Guidelines and guidelines regarding professional stock automobile racing are determined by NASCAR like if any team with needed skills and resources can participate in races by following guidelines and policies dictated by NASCAR. NASCAR has monopoly it this element. Its strengths likewise consists of that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to relay in more than 150 countries worldwide with more than $56 million incomes. The main sources of their earnings come from tv rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and business sponsors. Since of biggest brand commitment of fans toward brands marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses of NASCAR includes its close culture which is non collaborative. Progressive Insurance Case Study Analysis establishes Automobile of Tomorrow without collaboration so result is that drivers did not like that idea. It was also found that NASCAR had no effective strategy for business interaction.
NASCAR usually used to rely on conventional media sources like regional paper for publicity of its sports. NASCAR likewise came to know from these conventional media outlets that sport was difficult to cover. When sports fans were asked regarding popular stars and stars then NASCAR motorist was not discovered even in leading twenty actions.
Risks in SWOT analysis are specified as external elements that can risk to company's success. Because if there is economic down turn then individuals would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be risk for NASCAR. Earning of people would be effected and they would be more conscious in spending their loan. Economic down turn likewise leads to increase fuel costs which likewise impacted NASCAR. Since fans of NASCAR used to attend its event from fars away. NESCAR had a guideline of 65/25/10 for earnings distribution. 65 percent earnings from media rights would be dispersed to race tracks, 25 percent earnings would be dispersed to completing team and staying 10 percent would be kept by NESCAR which is sanctioning body. Completing team wished to increase their part of earnings from 25 percent because of increase in running expense of a race group and also there is decrease in the number of full-season sponsorship. NESCAR also deals with hazards from other sponsors because they are making enormous financial investments to enhance experience of fans. For instance that includes updating existing avenues, developing brand-new opportunities, providing Wi-Fi facility and likewise offering other interactive mediums to engage sports on smart devices. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and develop generational loyalty. The difficulty is that the household system in America was changing resulting in decrease of influence of married male fan base over their youngsters. In addition to it perceptions about car was likewise changing with perceiving cars and truck a vehicle to reach at point B from point A, rather than as a fun project. If NASCAR make significant investments in brand-new sectors which are based on new clients then it might deal with negative comments from its core fan base, now.
Porter's 5 Forces Analysis
Porter's 5 forces is a model that is used to analyse industry in which company is working. It assists in determining what are strengths and weak point of any specific market. It recommend that every industry is various from one another. Due to the fact that NASCAR's bottom line i.e. net earnings is heavily depends on this, it is crucial to understand industry in which business is working. There are 5 forces that are utilized to determine profitability, strength and attractiveness of Progressive Insurance Case Study Solution service.
These motorists can go versus NASCAR if they got much better chance in terms of rewards and tv exposure. If audiences delight in other race automobiles and chauffeurs more than NASCAR then audiences can move to those other intriguing vehicles and drivers. NASCAR could be having hazard from its two direct rivals that is Solution 1 and Moto GP.
The supplier power indicates the variety of providers are offered in industry and what is the cost connected with provider if business shifts from one provider to another. Since chauffeurs with needed abilities and resources are restricted, in this market there is supply monopoly.
This force is regarding to clients that is it easy for clients to move to other items. If there is more switching cost is associated then consumers are less likely to switch. In the case of NASCAR customers are its viewers. Due to the fact that audiences will having low switching cost, viewers can switch to other rivals easily.
Danger of Alternative
Substitutes are referred as options. The substitutes in this case can be other home entertainment means like viewers can move to other sports. There are large range of substitutes are offered in this circumstance which suggests that danger of replacement is high.
Hazard of New Entry
It is specified as how it is simple for any business to enter in that specific market. When it comes to Progressive Insurance Case Study Help danger of brand-new entry is low. If any company needs to go into in this service than they have to make heavy financial investments, because. They need to develop cars and trucks and racing tracks and likewise requires to pay large amount to chauffeurs for changing.
It can not be concluded from case research study that there would be modification in resource allocations. NASCAR had got benefit from lower taxation policies which results in increasing in earnings. They made heavy financial investments in the research and advancement. As NASCAR is working in different markets so it requires to face various regulations. It is also kept in mind that Progressive Insurance Case Study Analysis has dealt with increased scrutiny regarding regulative. Every government has various priority so NASCAR needs to be prepared for it as priority can be moved to other sector.
Financial aspects includes tax rate, currency 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.
Every society is different from each other. Each has various social worths and standards. It assists in understanding relating to society and choice of consumers. Social factors consists of customs, culture, mindsets towards particular services and products, demographics, standards, interests etc. It can be concluded that marketing through other methods rather than traditional (i.e. paper) can be preferred in this society.
Technology has influence on nearly every organisation. It includes development in business method. In this case of Progressive Insurance Case Study Help it can be kept in mind that business are heavily spending for research and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Because every nation has different legal terms and conditions, Legal plays an essential function in every nation. Progressive Insurance Case Study Analysis needs to be ensure that they secure their legal rights in every county so any business does not damage to its legal rights.
Environmental aspects are also essential for every company. NASCAR requires to make sure that its vehicles are not producing pollution more than appropriate level.
7 P's of Marketing
The items of Progressive Insurance Case Study Solution in its item portfolio are; racing events 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).
Rates method of NASCAR for its race events tickets is based upon the place and importance of the racing occasions. Along with race occasions tickets, NASCAR likewise charge various service charge to its stakeholders and makes revenue. For example it charged sanctioning costs of $1-2 million per race on average in 2005.
Advertising technique of Progressive Insurance Case Study Solution 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. Nevertheless, the company is not completely trusted its fan base for its promotion and promote through regional radio stations too. The company has likewise adopted the merchandising media of promotion, in which the business offers products with its logo.
NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to understand nationwide appeal.
Nestle people technique is comprised of offering better experience to its viewers, its fan base and to all of its stakeholders. People are an essential element of Progressive Insurance Case Study Solution A marketing method as its events are the source of entertainment for crowd. Its people method consists of efforts to offer better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under individuals strategy of NASCAR.
A number of organisation procedures are needed to perform racing events in an effective method. These processes include; proper schedule of time, plan for spectators, selling tickets, arrangement of space for sponsors, handling logistics and so on. These all procedures contribute I building NASCAR image, enhancing spectators experience and increasing fan base.
Most important physical proofs for the NASCAR includes the existence of its racing tracks, stock automobiles and racing occasions. In addition to it, its retailing brands consisting of t-shirts, caps, goodies and so on, also function as a physical evidence for NASCAR.
Item Life Process Evaluation.
The racing occasions by Progressive Insurance Case Study Analysis was presented on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the very first stage competitors for NASCAR was low, as the rivals drove the vehicles comparable to the cars and trucks driven by normal people.
The first NASCAR based track, namely the Darlington Raceway track, was started 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 changed NASCAR from a regional Sport popular organization into one with worldwide fan base. He started a brand-new era of rewarding sponsorships and tv contracts for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the company having wide range of earnings sources. The company has about 500 sponsors with broadcasting its events in about 150 countries. The business has large number of tracks in most of the cities of United States.
The decrease in the business's offerings started after 2005 with typical attendance rate per race declined by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The significant reasons for decrease include the monetary crisis of 2008, which increased the cost of getting to tracks for viewers due to increasing fuel costs, and the moving of its fan base towards other sports.
The marketplace segmentation of Progressive Insurance Case Study Analysis can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Progressive Insurance Case Analysis is based upon the geographical presence 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 company local along with global fan base.
The market segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its present fan base is majorly consisted of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. However currently NASCAR is trying to increase its target audience to the young growing population and kinds as well. To increase the group section of its market NASCAR must modify its marketing techniques to bring in more age and lower its costs to go into in the market sector with a low average income.( htt1).
The psychological qualities of the majority of the fans are quite comparable. NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races when in a week. 71% of them prefer to acquire products with a NASCAR brand name. They are rather extrovert and are willing to join other fans while racing. They want quality racing with low rate at hassle-free location. NASCAR has attempted to increase the quality of its racing by presenting stage racing, they likewise have actually tried to lower prices and make the occasion more hassle-free by presenting live racing.
Behavioural segmentation of Progressive Insurance Case Study Help is based upon the behaviour of fans in regards to watching the race live on the tv or by going in the events. Currently, the fans choice is towards viewing the race in the house on television instead of going, as the consumer experience at NASCAR tracks is not favourable along with pricey. This preference makes the rates for presence lower than the rates for tv audiences. NASCAR has to alter the behaviour of its fan base by introducing qualitative services at its tracks.
One of the possible target audience of Progressive Insurance Case Study Analysis 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 higher rate and it was anticipated to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The section reveals affinity with car culture, however need a more focused marketing towards inviting the section towards racing.
Kids are likewise one of the possible target market section for NASCAR, as they are more linked socially than other groups. Producing fan base among kids can supply a possible boost in the variety of fans for racing due to their connectivity. Kids spend most of their times in playing and using mobile phones computer game. Automobile racing video games established by Progressive Insurance Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital functions connected to kids are not capable of getting the attention. NASCAR requires more attention towards customizing and improving its digital features to draw in the kids target market.
Generation Y target audience consists of those who spent five times more resources on discretionary costs i.e. acquiring tickets for racing events, than others. This substantial expenditure makes the segment capacity for NASCAR marketing technique of increasing its fan base. The marketplace section is also easy to approach as 81% of the Y Generation customer utilizes Facebook every day and the usage is two times of using tv and radio. The market section views sports as a get-together, rather than adherence to sport. The market section thinks about NASCAR as a company lacking in developing a multiculturalism environment. Progressive Insurance Case Study Solution ought to take various actions to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking decisions relating to marketing. These 5 C's needs to be analysed effectively for taking any marketing choice. These 5 C's stands for Climate, Company, Collaborators, Competitors and clients.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, legal and environmental and is mentioned above.
Progressive Insurance Case Study Analysis is a car racing business with having USP of high quality car racing with a global structure. Its sector is sports group and events.
Collaborations includes suppliers, providers and alliances of NASCAR. NASCAR used 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.
The customer of Progressive Insurance Case Study Solution are its viewers. They target clients with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and create generational commitment.
Groups typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. These motorists can go against NASCAR if they got much better chance in terms of rewards and television exposure.
1. Establishing and Keeping Facebook Page.
Among the possible target audience segments for NASCAR is Hispanics which is the growing population section of U.S.A. but regrettably NASCAR had actually been not able to bring in the this targeted segment. In order to draw in the young growing generation the NASCAR should market by utilizing social media like Facebook. It needs to develop a Facebook page containing the details regarding the races and the places of tracks to make the customer helpful about the core operations of Progressive Insurance Case Study Help. It ought to also update its Facebook page on daily basis to provide info about its upcoming occasions. This would make the target market segment more helpful about business and would result in drawing in big fans base.
2. Developing and Upgrading Accounts of Secret Drivers.
Progressive Insurance Case Study Help motorists has a low star power as compare to players of other sports. The bad contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an important element for drawing in viewers towards tracks and towards tv.
3. Developing New Games and enhancing present video games for kids.
In order to bring in these kids, NASCARA must improve its present racing games by introducing personalization in the cars and trucks i.e. altering colours, selection of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and presenting numerous levels in the video game. All these modifications in the present video game would supply much better experience to kids.
In addition to it, NASCAR must likewise develop new video games connected to racing like kids racing with kids characters as drivers, animation racing with racing in between numerous cartoon characters with an option of choosing the preferred animation character for the kids. These methods would enable the company to attract among its potential target sectors.
4. Introducing multiculturalism at events.
NASCAR events are made up of fans with really couple of cultural diversity, due to cost of arrival in occasions, making it unattractive for the consumers viewing sport events as social occasions i.e. Generation Y customers. As the Generation Y consumers are a possible target market for NASCAR, for that reason the company needs to take particular measures to attract this possible target market.
5. Improving Customer Experience at Tracks.
Due to the fact that on the race day viewers got disappointed, NASCAR should work on facilities and features at tracks. Viewers have many expectations from NASCAR since in very same market other business are offering much better services than NASCAR. Then its fans may shifted to its competitors, if NASCAR don't work on this concern. According to fans there were not appropriate centers were offered as compare to other sports service providers. So NASCAR ought to ensure that it offer sufficient centers that consists of cleaned toilets, comfy seating arrangement. They should likewise offer WIFI services and accessibility of credit cards throughout that track. It needs to be also make sure that there suffice jumbo turns put at all required places. There ought to be also food stalls that offer quality food to viewers. In this method viewers will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Spending plan.
Marketing budget plan made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, reveals the cost related data for the marketing strategies. (See Appendix B). It can be seen that method 5 of improving client experience at tracks would need highest initial financial investment and expense and technique 4 of introducing multiculturalism will require least expensive preliminary investment with most affordable even more per year cost. The company needs to focus on the resource allotment on these techniques on the basis of its readily available resources and the prospective advantages which the strategy would supply.
NOTE: The worths about expense are presumed on logical basis due the absence of realities and figures related to cost in the event research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal factors of Progressive Insurance Case Study Help triggering the decrease of tv viewership rate and participation rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long term. These strategies would deal with internal elements like bad client experience at tracks, insufficient social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., in addition to with external elements like moving of fans towards other sports, demographical changes in America and altering family life designs.