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Samhoud Service Management Case Study Solution and Analysis


NASCAR (National Association for Stock Car Auto Racing) is an organization conducting series of Stock Vehicle racing in United States and acting as an approving body for driving the guidelines for Stock Vehicle Racing. 2) Stock Car Racing by NASCAR is the 2nd largest spectator sport, with highest number of sponsors. 1) The other sources of income for Samhoud Service Management Case Study Analysis consists of; 10% of the overall income from television rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed business culture with the non-interventionist method. This non collective technique brings stress in the sport. The building of Car of Tomorrow by Samhoud Service Management Case Study Solution, with an intention of safety for the motorists, brought various stress amongst the stakeholders of the sport.
Executive Summary
The communication audit, carried out in 2010, exposed that despite the reality that the company extremely rely on the interactions in between its stakeholders, there was no recognizable service communication strategy. (

The audit pointed out different doing not have of NASCAR in terms of lack of internal combination, absence of fan management method and lack of social and digital media of marketing.

Samhoud Service Management Case Study Help audiences was extremely devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate marketers.

Problem Declaration.

The company is presently facing the problem of decreasing rates of attendance at racing tracks and rates of tv viewers. This can put a substantial impact on its incomes from sponsors, media rights, and from other sources of income.

Situational Analysis.

The business was rather effective till 2005 with its traditional marketing techniques, however soon after 2005 the company starts facing numerous problems consisting of decrease of its fan base. A number of external as well as internal elements are responsible 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 a typical age of 47, which passes their fandom to their children and produce generational commitment. Other difficulties for NASCAR 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 homes through jumbo turns, Wi-Fi gain access to, etc.

SWOT Analysis.


NASCAR core proficiencies includes it has rights of dictating rules as sanctioning body. Rules and policies regarding professional stock car racing are determined by NASCAR like if any group with required skills and resources can get in into races by following guidelines and guidelines dictated by NASCAR. All the occasions of NASCAR are sponsored by corporates since of most significant brand commitment of fans towards brand names marketed by Samhoud Service Management Case Study Analysis.

Weak points.

Weak Points in SWOT Analysis are considered as external aspects. Weak points consists of the aspects that stops business to perform at needed level of effectiveness. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They usually used to form guidelines and other needed procedures without intervention of others which leads to bad collaboration. NASCAR develops Automobile 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 likewise tough. It was also discovered that NASCAR had no effective technique for business communication. They don't know how to manage issue if it happened off track. Ineffective business communication results in that they do not have clear direction for their long term objectives. They don't understand that where they wish to see this sport in future.
Porter's 5 Forces Analysis

NASCAR typically utilized to rely on conventional media sources like local newspaper for publicity of its sports. NASCAR also came to understand from these conventional media outlets that sport was challenging to cover. When sports fans were asked regarding popular celebs and stars then NASCAR chauffeur was not found even in leading twenty responses.


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

Porter's Five Forces Analysis

It is essential to understand market in which company is working since NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are utilized to identify profitability, intensity and attractiveness of NASCAR service.

Competitive Rivalry

This force indicates capability of rivals. Groups generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. It can be said that drivers and race cars are rivals. If they got much better opportunity in terms of rewards and tv exposure, these chauffeurs can go versus Samhoud Service Management Case Study Analysis. If audiences enjoy other race vehicles and drivers more than NASCAR then audiences can move to those other intriguing cars and trucks and drivers. NASCAR could be having hazard from its two direct competitors that is Formula 1 and Moto GP. They require to develop competitive benefits for motorists so they do not move to other competitors.
Swot Analysis
Provider Power

The provider power indicates the number of providers are readily available in market and what is the cost related to provider if company shifts from one supplier to another. In this industry there is supply monopoly because drivers with required skills and resources are limited.

Buyer Power

This force is regarding to customers that is it simple for customers to move to other items. Then customers are less most likely to switch, if there is more switching expense is associated. In the case of NASCAR customers are its viewers. Audiences can switch to other rivals easily because viewers will having low switching expense.

Threat of Substitution

Alternatives are referred as options. The alternatives in this case can be other entertainment means like viewers can shift to other sports. So there are large range of replacements are offered in this circumstance which suggests that danger of substitute is high.

Hazard of New Entry

It is specified as how it is simple for any company to enter in that specific industry. When it comes to Samhoud Service Management Case Study Analysis hazard of brand-new entry is low. If any business requires to enter in this organisation than they have to make heavy financial investments, because. They require to construct cars and trucks and racing tracks and likewise needs to pay significant amount to chauffeurs for switching.

PESTEL Analysis


As NASCAR is working in different markets so it needs to face various regulations. It is also noted that NASCAR has dealt with increased scrutiny concerning regulatory. Every federal government has different priority so NASCAR has to be prepared for it as priority can be shifted to other sector.


Financial elements includes taxation rate, currency exchange rate, financial efficiency of that specific business, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can leverage capabilities of employees to produce new opportunities and enhance existing chances.


Every society is different from each other. Each has different social values and norms. It assists in comprehending relating to society and preference of customers. Social elements consists of customs, culture, attitudes towards particular product and services, demographics, norms, interests etc. It can be concluded that advertising through other means instead of conventional (i.e. paper) can be chosen in this society.


Innovation has influence on practically every organisation. It includes innovation in organisation method. In this case of Samhoud Service Management Case Study Analysis it can be kept in mind that companies are greatly spending for research and development. NASCAR ought to likewise deal with its media rights policy with Turner Broadcasting System.

Vrio Analysis
Due to the fact that every country has different legal terms and conditions, Legal plays an important role in every country. Samhoud Service Management Case Study Analysis needs to be make sure that they secure their legal rights in every county so any company does not damage to its legal rights.


Environmental factors are also essential for every business. Since normally governments do not enable those organisation which can hurt to environment. These environmental aspects consists of laws relating to contamination, environment modification, safe waste disposal, policies concerning insurance coverage and so on. NASCAR requires to make sure that its automobiles are not creating contamination more than appropriate level.

7 P's of Marketing


The items of Samhoud Service Management Case Study Solution in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to business marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


Prices technique of NASCAR for its race occasions tickets is based upon the venue and importance of the racing occasions. Along with race occasions 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.


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 viewers for NASCAR races.


NASCAR have its racing tracks in various cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle 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 comprehend nationwide appeal.


Nestle people technique is consisted of supplying better experience to its viewers, its fan base and to all of its stakeholders. People are an important aspect of Samhoud Service Management Case Study Analysis A marketing strategy as its events are the source of home entertainment for crowd. Its individuals method consists of efforts to offer better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under people method of NASCAR.


Several service procedures are required to conduct racing events in an effective method. These procedures include; correct schedule of time, plan for spectators, 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 consists of the existence of its racing tracks, stock vehicles and racing events. Together with it, its retailing brand names including t-shirts, caps, goodies and so on, also act as a physical evidence for NASCAR.

Item Life Process Evaluation.

The racing occasions by Samhoud Service Management Case Study Help was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the first stage competitors for NASCAR was low, as the rivals drove the cars comparable to the cars driven by normal individuals.


After performing its first race effectively the company moved towards developing its own tracks. The first Samhoud Service Management Case Study Help based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards relaying its races on television in 1979. The first event relayed on television was flag-to-flag protection of Daytona.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he changed NASCAR from a regional Sport popular company into one with international fan base. He initiated a brand-new period of profitable sponsorships and tv contracts for NASCAR.


The maturity period for NASCAR began with the efforts of William France Jr., with the business having vast array of earnings sources. The company has about 500 sponsors with relaying its occasions in about 150 countries. The company has large number of tracks in most of the cities of United States.


The major causes of decrease include the financial crisis of 2008, which increased the cost of arriving at tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Segmentation.

The market segmentation of Samhoud Service Management Case Study Analysis can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Samhoud Service Management 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 tv broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division supplies the company regional as well as worldwide fan base.


The group segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly comprised of male married fans with an average age of 47 years and an income around $30-50 thousands. However presently NASCAR is attempting to increase its target audience to the young growing population and kinds also. To increase the demographic sector of its market NASCAR should modify its marketing methods to bring in more age and lower its rates to enter in the market segment with a low typical earnings.( htt1).


NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to buy tickets and see the races when in a week. NASCAR has attempted to increase the quality of its racing by presenting phase racing, they also have actually tried to lower prices and make the occasion more hassle-free by introducing live racing.


Behavioural segmentation 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 preference is towards seeing the race at house on television rather than going, as the customer experience at NASCAR tracks is not favourable as well as pricey.

Target audience.


One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market section has excellent potential for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are also one of the possible target audience segment for NASCAR, as they are more connected socially than other groups. Producing fan base among kids can provide a potential increase in the variety of fans for racing due to their connection. Kids spend the majority of their times in using smart devices and playing computer game. Car racing games developed by Samhoud Service Management Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of gaining the attention. NASCAR needs more attention towards personalizing and enhancing its digital functions to attract the kids target market.

Generation Y.
Generation Y target audience includes those who invested 5 times more resources on discretionary expenses i.e. purchasing tickets for racing occasions, than others. This substantial expenditure makes the section potential for NASCAR marketing technique of increasing its fan base. The marketplace sector is also simple to technique as 81% of the Y Generation customer uses Facebook every day and the usage is two times of utilizing television and radio. The market section views sports as a social occasion, rather than adherence to sport. The marketplace sector thinks about NASCAR as an organization lacking in creating a multiculturalism atmosphere. Samhoud Service Management Case Study Help needs 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.


It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, legal and ecological and is specified above.


Samhoud Service Management Case Study Solution is a vehicle racing company with having USP of high quality automobile racing with an international structure. Its sector is sports group and occasions.


Collaborations includes suppliers, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million annually from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.


The consumer of Samhoud Service Management 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 develop generational loyalty.


Teams typically represents sponsors in NASCAR and the medium of marketing is drivers. These chauffeurs can go versus NASCAR if they got much better opportunity in terms of rewards and television direct exposure.

Marketing Strategies.

1. Establishing and Keeping Facebook Page.
Among the prospective target audience segments for NASCAR is Hispanics which is the growing population section of USA however 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 must market by utilizing social networks like Facebook. It needs to establish a Facebook page containing the details relating to the races and the locations of tracks to make the customer useful about the core operations of Samhoud Service Management Case Study Solution. It must likewise update its Facebook page on daily basis to supply details about its upcoming events. This would make the target market sector more helpful about the business and would lead to drawing in big fans base.
2. Developing and Updating Accounts of Secret Drivers.
Samhoud Service Management Case Study Help chauffeurs has a low star power as compare to gamers 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 aspect for drawing in audiences towards tracks and towards tv.
3. Developing New Games and enhancing current games for kids.
In order to bring in these kids, NASCARA should improve its present racing games by introducing personalization in the cars i.e. changing colours, choice of speed, introducing group racing in the game, utilizing much better graphics related to the racing tracks and presenting numerous levels in the game. All these modifications in the existing video game would offer much better experience to kids.
Along with it, NASCAR needs to also build brand-new games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing between different cartoon characters with a choice of selecting the preferred cartoon character for the kids. These techniques would make it possible for the company to draw in among its possible target sections.
4. Introducing multiculturalism at occasions.
NASCAR occasions are comprised of fans with really couple of cultural diversity, due to cost of arrival in occasions, making it unsightly for the clients perceiving sport occasions as social celebrations i.e. Generation Y consumers. As the Generation Y customers are a possible target market for NASCAR, therefore the company should take certain steps to attract this potential target market.
5. Improving Consumer Experience at Tracks.
NASCAR ought to work on infrastructure and facilities at tracks because on the race day viewers got dissatisfied. Audiences have lots of expectations from Samhoud Service Management Case Study Help due to the fact that in very same industry other companies are offering better services than NASCAR. IF NASCAR don't work on this issue then its fans may moved to its rivals.

Marketing Budget plan

Marketing spending plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the expense associated data for the marketing strategies. It can be seen that strategy 5 of improving client experience at tracks would need greatest initial financial investment and cost and method 4 of introducing multiculturalism will require least expensive initial investment with least expensive even more per year cost.
NOTE: The values about expense are presumed on reasonable basis due the lack of figures and truths connected 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 internal and external aspects of Samhoud Service Management Case Study Analysis triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long run. These methods would handle internal elements like bad customer experience at tracks, insufficient social media marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, in addition to with external factors like moving of fans towards other sports, demographical changes in America and changing family life designs.