Security Factors Case Study Solution & Analysis
Introduction
NASCAR (National Association for Stock Automobile Car Racing) is an organization conducting series of Stock Car racing in United States and acting as a sanctioning body for driving the rules for Stock Cars and truck Racing. 2) Stock Automobile Racing by NASCAR is the second biggest spectator sport, with highest number of sponsors. 1) The other sources of revenue for Security Factors Case Study Analysis consists of; 10% of the total revenue from tv rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist technique. The structure of Car of Tomorrow by NASCAR, with an intention of safety for the chauffeurs, brought different stress amongst the stakeholders of the sport.
The communication audit, performed in 2010, exposed that in spite of the reality that the business highly depend on the interactions in between its stakeholders, there was no recognizable business communication method. The market's target clients, direction and goals were all unidentified.
The audit pointed out numerous doing not have of NASCAR in terms of absence of internal combination, lack of fan management method and absence of digital and social media of marketing.
Security Factors Case Study Solution audiences was extremely faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business marketers.
Problem Statement.
The company is currently facing the issue of declining rates of presence at racing tracks and rates of television audiences. This can put a substantial effect on its earnings from sponsors, media rights, and from other sources of earnings.
Situational Analysis.
Although the business was rather successful till 2005 with its conventional marketing methods, however not long after 2005 the company begins dealing with numerous issues consisting of decrease of its fan base. A number of external along with internal elements are responsible for the decline. Internal aspects consist of; inadequate investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and develop generational commitment. Other difficulties for NASCAR consists of 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.
SWOT Analysis.
Strengths.
NASCAR core proficiencies includes it has rights of determining guidelines as sanctioning body. Rules and policies relating to expert stock automobile racing are determined by NASCAR like if any group with needed skills and resources can get in into races by following rules and policies determined by NASCAR. All the events of NASCAR are sponsored by corporates due to the fact that of most significant brand loyalty of fans toward brand names promoted by Security Factors Case Study Help.
Weaknesses.
Weaknesses of NASCAR includes its close culture which is non collective. Security Factors Case Study Solution establishes Cars and truck of Tomorrow without collaboration so result is that motorists did not like that idea. It was also discovered that NASCAR had no effective technique for business communication.
Opportunities.
Opportunities in SWOT analysis are external aspects which can be beneficial to company or the external factors on which company is having competitive benefit. NASCAR normally utilized to depend on standard media sources like local paper for publicity of its sports. Usually these conventional media sources try to cover their house group and specific type of events. NASCAR likewise came to know from these conventional media outlets that sport was challenging to cover. Media landscape also altered from standard to digital landscape. Papers went out of business. NASCAR can deal with its abilities to get optimal possible benefits from this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were also offered to Turner Sports. NASCAR utilized to get pay check of around $15 million each year from Turner Sports. There are number of cons behind this offer. For instance Security Factors Case Study Help had to get approval from Turner Sport if it wish to produce its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of every single video which is shoot throughout race at track. Then they are required to pay licensing charges to Turner Sport, if media sources like papers, magazines and cable television channels want to publish videos of races on their respective pages. So NASCAR can work on terms and conditions and try to negotiate with Turner Sports to get optimal benefits of it. Star power plays very important function in creating revenues from every sport. Nevertheless it was kept in mind that Security Factors Case Study Help is lagging in this location i.e. star power. For instance when sports fans were asked regarding popular stars and stars then NASCAR motorist was not discovered even in top twenty actions. NASCAR can put efforts in this location too for profits generation. They should assist their motorists that how they can become sport stars. 4 tactical focuses which are produced by research team can also be worked as chance for NESCAR. These four tactical focuses compares and analysis Security Factors Case Study Help strategies.
Threats
Economic down turn was experienced in late 2000 which can be hazard for NASCAR because if there is economic down turn then individuals would be having less return on investment. Economic down turn likewise results in boost fuel rates which also affected NASCAR. Now if NASCAR make substantial financial investments in brand-new sections which are based on brand-new clients then it may face negative comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is utilized to analyse market in which company is working. It helps in determining what are strengths and weak point of any particular industry. It recommend that every industry is different from one another. It is very important to understand industry in which business is working due to the fact that NASCAR's bottom line i.e. net profit is heavily depends upon this. There are 5 forces that are used to identify success, intensity and appearance of Security Factors Case Study Solution company.
Competitive Competition
This force shows capability of rivals. Groups usually represents sponsors in NASCAR and the medium of advertising is chauffeurs. For that reason it can be stated that chauffeurs and race cars and trucks are competitors. These motorists can go against NASCAR if they improved opportunity in regards to rewards and television exposure. If audiences take pleasure in other race automobiles and motorists more than NASCAR then audiences can shift to those other fascinating automobiles and motorists. NASCAR could be having danger from its two direct competitors that is Solution 1 and Moto GP. They need to create competitive advantages for motorists so they do not move to other competitors.
Provider Power
The supplier power indicates the variety of suppliers are available in market and what is the expense connected with provider if business shifts from one supplier to another. In this market there is supply monopoly due to the fact that chauffeurs with required skills and resources are limited.
Purchaser Power
In the case of NASCAR customers are its viewers. Audiences can change to other competitors easily because viewers will having low switching cost.
Threat of Alternative
Alternatives are referred as options. The alternatives in this case can be other home entertainment indicates like viewers can shift to other sports. So there are wide range of alternatives are offered in this circumstance which recommends that risk of alternative is high.
Threat of New Entry
It is specified as how it is easy for any business to go into in that specific market. When it comes to Security Factors Case Study Analysis threat of new entry is low. Since if any company needs to enter in this company than they have to make heavy financial investments. They need to construct vehicles and racing tracks and also requires to pay substantial amount to motorists for changing.
PESTEL Analysis
Political
As NASCAR is working in various markets so it requires to deal with different policies. It is likewise noted that NASCAR has actually faced increased analysis concerning regulatory. Every federal government has various top priority so NASCAR has to be prepared for it as top priority can be moved to other sector.
Cost-effective
Economic factors consists of tax rate, exchange rate, economic efficiency of that specific 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 affected. NASCAR can leverage abilities of staff members to create brand-new opportunities and improve existing chances.
Social
Every society is different from each other. Each has different social worths and norms. It assists in comprehending concerning society and preference of customers. Social elements consists of customs, culture, mindsets towards particular product and services, demographics, norms, interests and so on. It can be concluded that advertising through other ways instead of traditional (i.e. paper) can be preferred in this society.
Technical
Innovation has effect on almost every service. It includes innovation in organisation technique. In this case of Security Factors Case Study Solution it can be noted that companies are heavily investing for research study and advancement. NASCAR must also work on its media rights policy with Turner Broadcasting System.
Legal
Legal plays an essential role in every nation due to the fact that every nation has various legal terms and conditions. Security Factors Case Study Help needs to be make sure that they safeguard their legal rights in every county so any business does not harm to its legal rights.
Environmental
Ecological elements are likewise crucial for every single organisation. Because usually governments don't permit those company which can harm to environment. These environmental aspects includes laws relating to pollution, climate change, safe waste disposal, policies concerning insurance coverage and so on. NASCAR requires to ensure that its vehicles are not creating contamination more than appropriate level.
7 P's of Marketing
Item
The products of Security Factors Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Price.
Rates strategy of NASCAR for its race events tickets is based upon the venue and significance of the racing events. Along with race events tickets, NASCAR likewise charge numerous service fees to its stakeholders and earns revenue. It charged approving fees of $1-2 million per race on average in 2005.
Promo.
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.
Place.
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 tries to perform its races in the majority of the cities in United States to understand nationwide popularity.
Individuals.
Nestle individuals technique is consisted of providing much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential element of Security Factors Case Study Solution A marketing method as its events are the source of entertainment for crowd. Its people technique consists of efforts to supply much better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under people technique of NASCAR.
Procedures.
A number of business processes are required to carry out racing occasions in an efficient way. These procedures consist of; appropriate schedule of time, arrangement for viewers, offering tickets, plan of area for sponsors, managing logistics etc. These all processes contribute I building NASCAR image, enhancing spectators experience and increasing fan base.
Physical Evidence.
Crucial physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing events. Along with it, its merchandising brand names consisting of tee shirts, caps, goodies and so on, likewise act as a physical proof for NASCAR.
Product Life Cycle Assessment.
The racing occasions by Security Factors Case Study Analysis was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the first stage competitors for NASCAR was low, as the competitors drove the cars and trucks comparable to the cars and trucks driven by ordinary individuals.
Growth.
After conducting its very first race successfully the company moved towards developing its own tracks. The first Security Factors Case Study Analysis based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the development of racing tracks the company moved towards broadcasting its races on tv in 1979. The first occasion transmitted on television was flag-to-flag coverage of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a local Sport popular organization into one with international fan base. He initiated a brand-new age of profitable sponsorships and television contracts for NASCAR.
Maturity.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide range of earnings sources. The company has about 500 sponsors with relaying its occasions in about 150 nations. The business has large number of tracks in the majority of the cities of United States.
Decline.
The decrease in the company's offerings began after 2005 with average attendance rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant causes of decline include the financial crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel costs, and the moving of its fan base towards other sports.
Market Division.
The market segmentation of Security Factors Case Study Help can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographic.
The geographical segmentation of Security Factors Case Solution is based upon the geographical presence of its tracks in numerous states and cities in United States, and the television broadcasting of its occasions in different countries. The company 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 huge geographical division supplies the business regional as well as international fan base.
Group.
The demographic division of Security Factors Case Study Help is also highlydiverse based upon the gender, income and age of the consumer. To increase the market sector of its market NASCAR ought to modify its marketing techniques to bring in more age groups and lower its rates to enter in the market segment with a low average income.
Psychographic.
The mental characteristics of most of the fans are quite comparable. NASCAR has a fan base with a commitment. Once in a week, NASCAR fans perceive it compulsive to acquire tickets and see the races. 71% of them choose to acquire products with a NASCAR brand name. They are quite extrovert and want to mingle with other fans while racing. They desire quality racing with low cost at convenient location. NASCAR has tried to increase the quality of its racing by introducing stage racing, they also have actually tried to lower prices and make the event more hassle-free by introducing live racing.
Behavioural.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the television or by going in the occasions. Currently, the fans preference is towards seeing the race at house on tv rather than going, as the customer experience at NASCAR tracks is not favourable as well as expensive.
Target Market.
Hispanics.
One of the prospective target market of Security Factors Case Study Help was Hispanics; the young and growing population of United States. The marketplace section has terrific potential for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the sector shows affinity with vehicle culture, however need a more focused marketing towards welcoming the segment towards racing.
Kids.
Kids are also one of the potential target market segment for NASCAR, as they are more linked socially than other groups. Automobile racing video games developed by Security Factors Case Study Solution can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and improving its digital features to attract the kids target market.
This big expenditure makes the segment capacity for NASCAR marketing strategy of increasing its fan base. The market segment considers NASCAR as a company doing not have in developing a multiculturalism atmosphere. NASCAR needs to take numerous steps to improve the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking decisions regarding marketing.
Climate/Context.
It needs to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE means political, financial, social, technical, ecological and legal and is specified above.
Company.
Security Factors Case Study Analysis is an automobile racing company with having USP of high quality auto racing with a global structure. Its sector is sports team and occasions.
Collaborations.
Collaborations includes distributors, suppliers and alliances of Security Factors Case Study Solution. It is collaborated with different racing teams which are participating in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million yearly from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of each and every single video which is shoot during race at track.
Customers.
The client of Security Factors Case Study Solution are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and develop generational loyalty.
Rivals.
Teams typically represents sponsors in NASCAR and the medium of marketing is drivers. These drivers can go against NASCAR if they got much better chance in terms of prizes and tv direct exposure.
Marketing Methods.
1. Establishing and Keeping Facebook Page.
One of the potential target markets sectors for NASCAR is Hispanics which is the growing population section of U.S.A. however unfortunately NASCAR had been unable to bring in the this targeted segment. It needs to develop a Facebook page including the details regarding the races and the places of tracks to make the customer informative about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Secret Drivers.
NASCAR motorists has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Display). The major reason behind it is that, the racers primarily play in teams and are not able to build a key account and keep a close contact with fans. The bad contacts with fans lead to less tourist attraction of viewers towards the racers and a low star power. Star power is an important aspect for attracting viewers towards tracks and towards tv. The star power for the drivers at NASCARA might be enhanced by creating and upgrading accounts of essential chauffeurs by NASCARA itself. This would eliminate the requirement of requiring motorists to keep their accounts and would lead to increasing fans attention towards NASCARA chauffeurs.
3. Establishing New Games and improving current games for kids.
Kids spent most of their time on playing video games and using mobile phones. However unfortunately, 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 draw in these kids, NASCARA ought to enhance its existing racing games by presenting customization in the automobiles i.e. altering colours, choice of speed, presenting group racing in the game, utilizing much better graphics connected to the racing tracks and introducing various levels in the game. All these adjustments in the current video game would supply much better experience to kids.
Together with it, NASCAR should also construct new games connected to racing like kids racing with kids characters as motorists, cartoon racing with racing between numerous cartoon characters with a choice of choosing the preferred cartoon character for the kids. These methods would allow the company to attract among its prospective target sectors.
4. Presenting multiculturalism at events.
Security Factors Case Study Solution events are comprised of fans with extremely few multiculturalism, due to expense of arrival in occasions, making it unappealing for the customers perceiving sport events as get-togethers i.e. Generation Y consumers. As the Generation Y clients are a possible target audience for NASCAR, for that reason the business ought to take specific steps to attract this prospective target audience. It must embrace methods to draw in the consumers far from the tracks area with various culture. The strategy to do so could be providing unique discount rates on tickets or complimentary tickets to audiences originating from a particular distance or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more pleased.
5. Improving Consumer Experience at Tracks.
NASCAR ought to work on facilities and facilities at tracks because on the race day audiences got dissatisfied. Audiences have numerous expectations from Security Factors Case Study Analysis since in same industry other business are offering better services than NASCAR. IF NASCAR don't work on this concern then its fans may shifted to its rivals.
Marketing Budget
Marketing budget made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the cost related data for the marketing techniques. (See Appendix B). It can be seen that strategy 5 of enhancing consumer experience at tracks would need highest preliminary financial investment and cost and method 4 of introducing multiculturalism will require most affordable initial financial investment with least expensive even more annually cost. The business must focus on the resource allocation on these methods on the basis of its available resources and the prospective benefits which the method would provide.
KEEP IN MIND: The values about cost are presumed on reasonable basis due the lack of figures and facts related to cost in the event research study. Inflation rate of United States is presumed to be 10%.
Suggestions.
On the basis of deep analysis of the internal and external factors of Security Factors Case Study Analysis triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long run. These techniques would deal with internal factors like bad customer experience at tracks, insufficient social media marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, as well as with external factors like shifting of fans towards other sports, demographical changes in America and changing family life styles.
