Samhoud Service Management Online Case Study Analysis

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Samhoud Service Management Case Study Solution & Analysis


Samhoud Service Management Case Study Solution (National Association for Stock Cars And Truck Automobile Racing) is an organization conducting series of Stock Car racing in United States and functioning as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. The organization was established in 1947, by "Big Expense" France. NASCAR arrange Stock Automobile Racing occasions in United States with the existence of about 130000 audiences on average in 2005. It likewise relayed its occasions in about 150 countries. Stock Cars And Truck Racing by NASCAR is the 2nd biggest spectator sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of earnings for Samhoud Service Management Case Study Help consists of; 10% of the overall income from television rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand name to business.

NASCAR has a closed business culture with the non-interventionist approach. This non collective approach brings stress in the sport. The structure of Car of Tomorrow by Samhoud Service Management Case Study Analysis, with an intent of safety for the chauffeurs, brought different stress amongst the stakeholders of the sport.

The communication audit, carried out in 2010, exposed that despite the truth that the organisation extremely rely on the interactions between its stakeholders, there was no identifiable business communication strategy. (

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

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

Issue Declaration.

The business is currently dealing with the issue of declining rates of presence at racing tracks and rates of tv audiences. This can put a considerable influence on its profits from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The business was rather successful till 2005 with its traditional marketing methods, however soon after 2005 the company starts dealing with numerous issues consisting of decrease of its fan base. Numerous external as well as internal elements are responsible for the decline. Internal aspects include; insufficient financial investment in social networks 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. The family system in America was changing resulting in decrease of impact of married male fan base over their children. In addition to it understandings about automobile was also changing with perceiving vehicle an automobile to reach at point B from point A, instead of as an enjoyable job. Other difficulties for Samhoud Service Management Case Study Analysis consists of the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, etc. These all difficulties were tending the company to revise its marketing strategies.

SWOT Analysis.


NASCAR core proficiencies includes it has rights of determining guidelines as sanctioning body. Guidelines and rules concerning professional stock car racing are determined by NASCAR like if any team with required abilities and resources can get in into races by following guidelines and regulations dictated by NASCAR. All the occasions of NASCAR are sponsored by corporates because of greatest brand name commitment of fans toward brand names marketed by Samhoud Service Management Case Study Analysis.


Weaknesses in SWOT Analysis are considered as external elements. Weaknesses consists of the elements that stops company to perform at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They normally utilized to form rules and other required processes without intervention of others which results in bad partnership. NASCAR develops Vehicle of Tomorrow without cooperation so result is that drivers did not like that concept. As this is racing sport so covering of sports by media is likewise tough. It was likewise discovered that NASCAR had no reliable method for business interaction. They do not understand how to handle issue if it took place off track. Ineffective company interaction leads to that they don't have clear direction for their long term goals. They do not know that where they want to see this sport in future.


NASCAR normally utilized to rely on conventional media sources like local paper for promotion of its sports. NASCAR likewise came to know from these traditional media outlets that sport was difficult to cover. When sports fans were asked concerning popular stars and stars then NASCAR chauffeur was not discovered even in top twenty actions.


Hazards in SWOT analysis are specified as external factors that can danger to company's success. Economic down turn was experienced in late 2000 which can be risk for NASCAR since if there is financial down turn then individuals would be having less return on investment. Earning of individuals would be effected and they would be more conscious in investing their loan. Economic down turn also results in increase fuel prices which also impacted NASCAR. Because fans of NASCAR utilized to attend its event from long distances. NESCAR had a guideline of 65/25/10 for income circulation. 65 percent earnings from media rights would be distributed to race tracks, 25 percent revenue would be distributed to completing group and remaining 10 percent would be kept by NESCAR which is approving body. Completing team wanted to increase their portion of profits from 25 percent due to the fact that of boost in running expense of a race group and likewise there is decline in the number of full-season sponsorship. NESCAR likewise faces threats from other sponsors since they are making enormous financial investments to enhance experience of fans. Which includes updating existing opportunities, developing new avenues, supplying Wi-Fi facility and likewise providing other interactive mediums to interact sports on smartphones. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and create generational loyalty. So the difficulty is that the household system in America was changing leading to reduction of impact of married male fan base over their children. Along with it perceptions about vehicle was also altering with perceiving cars and truck an automobile to reach at point B from point A, instead of as an enjoyable project. If NASCAR make significant financial investments in brand-new segments which are based on new clients then it may deal with unfavorable remarks from its core fan base, now.

Porter's 5 Forces Analysis

It is essential to comprehend 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 determine profitability, strength and beauty of NASCAR organisation.

Competitive Rivalry

These chauffeurs can go versus NASCAR if they got better opportunity in terms of rewards and tv exposure. If viewers delight in other race vehicles and chauffeurs more than NASCAR then viewers can move to those other fascinating cars and trucks and motorists. NASCAR could be having risk from its 2 direct competitors that is Formula 1 and Moto GP.

Provider Power

The provider power suggests the variety of providers are offered in market and what is the cost related to provider if company shifts from one supplier to another. In this market there is supply monopoly since chauffeurs with needed resources and skills are restricted.

Purchaser Power

In the case of NASCAR consumers are its audiences. Viewers can change to other rivals easily because audiences will having low switching cost.

Hazard of Alternative

Replacements are referred as alternatives. The replacements in this case can be other home entertainment indicates like audiences can move to other sports. So there are wide variety of alternatives are readily available in this situation which suggests that danger of replacement is high.

Hazard of New Entry

In the case of NASCAR threat of new entry is low. They need to develop automobiles and racing tracks and also requires to pay hefty amount to chauffeurs for switching.

PESTEL Analysis


As NASCAR is working in numerous markets so it needs to deal with various regulations. It is also kept in mind that NASCAR has actually dealt with increased examination regarding regulative. Every government has different priority so NASCAR has to be prepared for it as priority can be shifted to other sector.


Financial aspects consists of tax rate, currency exchange rate, financial performance of that particular business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its rivals can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can leverage abilities of workers to create new chances and improve existing chances.


Every society is different from each other. Each has different social values and standards. It assists in understanding regarding society and choice of consumers. Social factors consists of customs, culture, attitudes towards particular product and services, demographics, standards, interests and so on. It can be concluded that advertising through other methods rather than conventional (i.e. paper) can be chosen in this society.


Innovation has effect on practically every organisation. It includes innovation in organisation method. In this case of Samhoud Service Management Case Study Solution it can be noted that companies are greatly investing for research study and development. NASCAR should also work on its media rights policy with Turner Broadcasting System.


Legal plays an important function in every nation because every nation has different legal terms. Samhoud Service Management Case Study Solution requires to be make sure that they safeguard their legal rights in every county so any business does not damage to its legal rights.


Ecological aspects are also crucial for each business. Since generally federal governments do not allow those business which can damage to environment. These ecological aspects includes laws relating to pollution, environment modification, safe waste disposal, policies concerning insurance and so on. NASCAR needs to make certain that its cars and trucks are not producing contamination more than appropriate level.

7 P's of Marketing


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


Prices method of NASCAR for its race events tickets is based upon the place and significance of the racing occasions. Together with race occasions tickets, NASCAR also charge different service charge to its stakeholders and makes income. For instance it charged approving fees of $1-2 million per race typically in 2005.


Marketing method of Samhoud Service Management Case Study Analysis 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 business is not entirely relied upon its fan base for its promo and promote through regional radio stations too. The company has actually also embraced the retailing 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 essential tracks of NASCAR consists of 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 comprehend nationwide popularity.


Nestle people technique is comprised of providing much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential aspect of Samhoud Service Management Case Study Help A marketing strategy as its occasions are the source of entertainment for crowd. Its individuals method includes efforts to offer much better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals method of NASCAR.


Several business procedures are needed to carry out racing occasions in an effective method. These processes consist of; proper schedule of time, arrangement for viewers, selling tickets, arrangement of area for sponsors, managing logistics etc. These all processes contribute I building NASCAR image, enhancing viewers experience and increasing fan base.

Physical Proof.

Most important physical evidences for the NASCAR consists of the existence of its racing tracks, stock vehicles and racing occasions. Together with it, its retailing brands consisting of t-shirts, caps, goodies and so on, also serve as a physical proof for NASCAR.

Product Life Process Evaluation.

The racing occasions by Samhoud Service Management Case Study Help was introduced 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 first phase competitors for NASCAR was low, as the rivals drove the vehicles comparable to the vehicles driven by common people.


The first NASCAR based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the business moved towards transmitting its races on television in 1979.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with global fan base. He initiated a brand-new period 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 vast array of income sources. The business has about 500 sponsors with relaying its events in about 150 countries. The company has a great deal of tracks in the majority of the cities of United States.


The major causes of decrease consist of the financial crisis of 2008, which increased the expense of arriving at tracks for viewers due to increasing fuel prices, and the shifting of its fan base towards other sports.

Market Division.

The marketplace division of Samhoud Service Management Case Study Solution can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Samhoud Service Management Case Analysis is based upon the geographical presence of its tracks in various 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 numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical division provides the business local as well as international fan base.


The group segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its existing fan base is majorly consisted of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the group section of its market NASCAR should revise its marketing methods to bring in more age and lower its rates to enter in the market segment with a low typical income.( htt1).


The psychological qualities of most of the fans are rather similar. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races once in a week. 71% of them choose to purchase items with a NASCAR trademark name. They are quite extrovert and are willing to mingle with other fans while racing. They want quality racing with low rate at convenient place. Although Samhoud Service Management Case Study Help has tried to increase the quality of its racing by presenting phase racing, they likewise have actually attempted to lower rates and make the event easier by introducing live racing.


Behavioural division of Samhoud Service Management Case Study Help is based upon the behaviour of fans in terms of enjoying the race reside on the tv or by entering the occasions. Presently, the fans preference is towards watching the race in your home on tv rather than going, as the customer experience at NASCAR tracks is not favourable along with costly. This choice makes the rates for participation lower than the rates for television viewers. NASCAR needs to change the behaviour of its fan base by presenting qualitative services at its tracks.

Target audience.


One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has terrific potential for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the segment 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. Creating fan base among kids can supply a prospective increase in the number of fans for racing due to their connectivity. Kids invest the majority of their times in playing and utilizing smartphones video games. Car racing games developed by Samhoud Service Management 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 getting the attention. NASCAR requires more attention towards personalizing and improving its digital features to bring in the kids target audience.

This huge expense makes the sector potential for NASCAR marketing strategy of increasing its fan base. The market segment considers NASCAR as a company lacking in developing a multiculturalism atmosphere. NASCAR needs to take various steps to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing helps in taking choices relating to marketing. These 5 C's requirements to be analysed effectively for taking any marketing choice. These 5 C's stands for Climate, Company, Collaborators, Consumers and Rivals.


It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE means political, financial, social, technical, legal and ecological and is stated above.


Samhoud Service Management Case Study Analysis is a vehicle racing business with having USP of high quality car racing with a worldwide structure. Its sector is sports team and events.


Collaborations consists of suppliers, providers and alliances of Samhoud Service Management Case Study Analysis. It is worked together with different racing groups which are participating in racing. It likewise teamed up with Turners Sport for digital rights. NASCAR utilized to earn money check of around $15 million each year from Turner Sports. There are variety of cons behind this offer. For instance NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of each and every single video which is shoot throughout race at track.


The consumer of Samhoud Service Management Case Study Help are its audiences. They target consumers 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 youngsters and develop generational commitment.


Teams typically represents sponsors in NASCAR and the medium of advertising is drivers. These drivers can go versus NASCAR if they got better chance in terms of rewards and tv direct exposure.

Marketing Methods.

1. Maintaining and developing Facebook Page.
Among the potential target audience sections for NASCAR is Hispanics which is the growing population segment of USA but regrettably NASCAR had been not able to bring in the this targeted sector. In order to bring in the young growing generation the NASCAR need to market by using social media like Facebook. It ought to establish a Facebook page consisting of the info regarding the races and the areas of tracks to make the customer informative about the core operations of Samhoud Service Management Case Study Help. It needs to likewise update its Facebook page on everyday basis to supply details about its upcoming events. This would make the target audience sector more useful about business and would result in attracting big fans base.
2. Developing and Upgrading Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Exhibition). The major reason behind it is that, the racers mainly play in teams and are unable to build an essential account and maintain a close contact with fans. The bad contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is an important factor for bring in viewers towards tracks and towards television. The star power for the motorists at NASCARA might be improved by developing and upgrading accounts of crucial chauffeurs by NASCARA itself. This would get rid of the requirement of forcing motorists to keep their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Developing New Games and enhancing present video games for kids.
Kids invested the majority of their time on playing video games and utilizing mobile phones. Sadly, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less brought in towards the sport. In order to bring in these kids, NASCARA must improve its existing racing video games by introducing modification in the cars i.e. altering colours, selection of speed, introducing group racing in the game, utilizing better graphics related to the racing tracks and introducing various levels in the game. All these modifications in the existing game would supply better experience to kids.
In addition to it, NASCAR ought to likewise build brand-new video games associated with racing like kids racing with kids characters as drivers, animation racing with racing between different cartoon characters with a choice of selecting the preferred animation character for the kids. These methods would enable the business to draw in one of its possible target sectors.
4. Presenting multiculturalism at events.
NASCAR events are made up of fans with really few cultural variety, due to cost of arrival in events, making it unattractive for the clients perceiving sport events as social occasions i.e. Generation Y consumers. As the Generation Y consumers are a possible target market for NASCAR, therefore the business should take certain procedures to attract this prospective target market.
5. Improving Client Experience at Tracks.
Since on the race day viewers got disappointed, NASCAR needs to work on infrastructure and features at tracks. Because in very same industry other business are supplying much better services than NASCAR, audiences have numerous expectations from Samhoud Service Management Case Study Solution. Then its fans may shifted to its competitors, if NASCAR do not work on this problem. According to fans there were not appropriate facilities were available as compare to other sports companies. So NASCAR needs to ensure that it offer appropriate centers that includes cleaned up washrooms, comfy seating plan. They should likewise provide WIFI services and accessibility of credit cards throughout that track. It ought to be likewise make certain that there are enough jumbo turns positioned at all needed places. There should be likewise food stalls that supply quality food to viewers. In this way viewers will be having pleasant experience at the day of event. (See Appendix B).
Marketing Budget.
Marketing budget made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, reveals the cost associated information for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of improving client experience at tracks would need highest preliminary financial investment and expense and strategy 4 of introducing multiculturalism will need lowest initial financial investment with least expensive even more each year cost. The business should prioritize the resource allotment on these strategies on the basis of its offered resources and the prospective advantages which the strategy would offer.
NOTE: The worths about expense are presumed on logical basis due the absence of figures and realities related to cost in the case research study. Inflation rate of United States is presumed to be 10%.


On the basis of deep analysis of the external and internal factors of Samhoud Service Management Case Study Help triggering the decrease of television viewership rate and attendance rate at tracks, the above marketing techniques are suggested to NASCAR to increase its fan base in long term. These techniques would cope with internal elements like bad client experience at tracks, inadequate social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, along with with external factors like moving of fans towards other sports, demographical changes in America and changing domesticity designs.

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