Security Factors Case Study Solution & Analysis
NASCAR (National Association for Stock Cars And Truck Auto Racing) is a company conducting series of Stock Automobile racing in United States and acting as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Car Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of earnings for Security Factors Case Study Solution includes; 10% of the total profits from television rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist method. The building of Automobile of Tomorrow by NASCAR, with an intention of security for the drivers, brought various tensions among the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that despite the fact that the company highly rely on the interactions in between its stakeholders, there was no recognizable organisation communication strategy. (
The audit explained numerous doing not have of NASCAR in terms of absence of internal combination, absence of fan management technique and lack of digital and social media of marketing. The company has complicated community with independent tracks, teams and motorists. This structure with closed business culture bring numerous challenges in speeding up a modification. Other partners in ecosystem consists of the media networks i.e. television and radio, and corporate online marketers.
Security Factors Case Study Help viewers was highly devoted to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate marketers.
The company is presently facing the issue of decreasing rates of presence at racing tracks and rates of television audiences. This can put a considerable impact on its profits from sponsors, media rights, and from other sources of revenue.
The company was quite effective till 2005 with its conventional marketing methods, but soon after 2005 the company begins facing different problems including decrease of its fan base. Several external as well as internal elements are responsible for the decline. Internal aspects include; insufficient investment in social media 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 create generational commitment. Other difficulties for NASCAR consists of the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc.
In SWOT analysis, strengths specified as company's qualities which are different from its rivals. These are company's core proficiencies on which business performance or business success based on. Security Factors Case Study Solution core competencies includes it has rights of dictating rules as sanctioning body. Regulations and rules relating to professional stock vehicle racing are determined by NASCAR like if any group with needed abilities and resources can enter into races by following rules and guidelines dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise includes that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to broadcast in more than 150 countries around the globe with more than $56 million earnings. The primary sources of their revenues originate from television rights, sanctioning charges, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and corporate sponsors. All the events of NASCAR are sponsored by corporates due to the fact that of most significant brand commitment of fans towards brand names marketed by Security Factors Case Study Solution. (See Appendix A).
Weak Points in SWOT Analysis are thought about as external factors. Weak points consists of the aspects that stops company to carry out at needed level of performance. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist method. They usually utilized to form rules and other required procedures without intervention of others which results in poor partnership. For example NASCAR develops Car of Tomorrow without cooperation so result is that chauffeurs did not like that concept. As this is racing sport so covering of sports by media is also difficult. It was likewise discovered that NASCAR had no reliable method for service interaction. If it occurred off track, they don't understand how to handle issue. Inadequate company interaction results in that they don't have clear instructions for their long term goals. They don't understand that where they wish to see this sport in future.
Opportunities in SWOT analysis are external elements which can be favourable to company or the external aspects on which company is having competitive advantage. NASCAR generally utilized to rely on traditional media sources like regional newspaper for promotion of its sports. Generally these traditional media sources try to cover their home group and certain kind of events. NASCAR likewise familiarized from these conventional media outlets that sport was challenging to cover. Media landscape also changed from traditional to digital landscape. Newspapers went out of business. NASCAR can deal with its capabilities to get optimal possible gain from this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in digital and social media to get its advantages. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR utilized to make money check of around $15 million annually from Turner Sports. There are number of cons behind this offer. For instance Security Factors Case Study Analysis had to get approval from Turner Sport if it want to create its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track. Then they are needed to pay licensing fees to Turner Sport, if media sources like papers, magazines and cable television channels want to publish videos of races on their respective pages. NASCAR can work on terms and conditions and try to work out with Turner Sports to get maximum advantages of it. Star power plays really crucial role in creating revenues from every sport. Nevertheless it was kept in mind that Security Factors Case Study Analysis is lagging in this location i.e. star power. For example when sports fans were asked regarding popular celebrities and stars then NASCAR motorist was not discovered even in top twenty responses. So NASCAR can put efforts in this location too for profits generation. They need to direct their drivers that how they can become sport stars. 4 tactical focuses which are produced by research study group can likewise be served as chance for NESCAR. These 4 strategic focuses compares and analysis Security Factors Case Study Help techniques.
Economic down turn was experienced in late 2000 which can be risk for NASCAR because if there is economic down turn then people would be having less return on investment. Economic down turn also results in increase fuel rates which likewise impacted NASCAR. Now if NASCAR make substantial financial investments in brand-new sections which are based on new clients then it may deal with negative comments from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a model that is utilized to evaluate industry in which business is working. It assists in determining what are strengths and weak point of any specific industry. It recommend that every industry is different from one another. It is essential to comprehend 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 used to determine success, intensity and appearance of Security Factors Case Study Analysis service.
These drivers can go versus NASCAR if they got much better chance in terms of prizes and tv direct exposure. If audiences take pleasure in other race automobiles and motorists more than NASCAR then audiences can move to those other fascinating vehicles and drivers. NASCAR could be having hazard from its two direct rivals that is Formula 1 and Moto GP.
If business shifts from one supplier to another, the provider power shows the number of providers are available in industry and what is the expense associated with supplier. Since drivers with needed skills and resources are restricted, in this market there is supply monopoly.
This force is concerning to customers that is it easy for customers to move to other products. Then clients are less likely to change, if there is more switching expense is associated. In the case of NASCAR customers are its viewers. Because viewers will having low changing cost, viewers can change to other rivals quickly.
Risk of Alternative
Substitutes are referred as options. The replacements in this case can be other home entertainment implies like viewers can move to other sports. So there are large range of substitutes are offered in this circumstance which recommends that hazard of replacement is high.
Hazard of New Entry
In the case of NASCAR risk of new entry is low. They need to construct cars and racing tracks and also needs to pay large amount to drivers for changing.
As NASCAR is working in different markets so it requires to deal with various guidelines. It is also kept in mind that NASCAR has faced increased analysis regarding regulatory. Every government has various priority so NASCAR has actually to be prepared for it as concern can be moved to other sector.
Financial aspects consists of tax rate, exchange rate, economic efficiency of that particular company, 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 impacted. NASCAR can take advantage of abilities of employees to develop brand-new chances and enhance existing chances.
Every society is various from each other. Each has various social values and standards. It assists in comprehending concerning society and preference of clients. Social aspects includes traditions, culture, attitudes towards specific product and services, demographics, norms, interests and so on. It can be concluded that advertising through other ways instead of traditional (i.e. newspaper) can be preferred in this society.
In this case of NASCAR it can be noted that companies are heavily spending for research and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Due to the fact that every nation has various legal terms and conditions, Legal plays a crucial role in every nation. Security Factors Case Study Help requires to be make certain that they protect their legal rights in every county so any company does not damage to its legal rights.
Environmental factors are also important for every single organisation. Because normally governments don't enable those organisation which can harm to environment. These environmental factors includes laws relating to contamination, environment modification, safe waste disposal, policies concerning insurance and so on. NASCAR requires to make sure that its vehicles are not producing contamination more than appropriate level.
7 P's of Marketing
The products of Security Factors Case Study Help in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Prices strategy of NASCAR for its race occasions tickets is based upon the place and value of the racing events. Together with race events tickets, NASCAR likewise charge numerous service fees to its stakeholders and earns income. For instance it charged approving fees of $1-2 million per race on average in 2005.
Advertising method of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto 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 appeal.
Nestle people technique is consisted of supplying better experience to its viewers, its fan base and to all of its stakeholders. Individuals are a crucial aspect of Security Factors Case Study Help A marketing method as its events are the source of entertainment for crowd. Its people technique consists of efforts to supply better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under individuals technique of NASCAR.
Several company procedures are required to carry out racing occasions in an effective way. These processes consist of; proper schedule of time, plan for viewers, selling tickets, plan of area for sponsors, managing logistics and so on. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.
Crucial physical evidences for the NASCAR includes the presence of its racing tracks, stock cars and trucks and racing occasions. Together with it, its merchandising brands consisting of t-shirts, caps, goodies etc., likewise serve as a physical evidence for NASCAR.
Item Life Cycle Evaluation.
The racing occasions by Security Factors Case Study Help was presented on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the first phase competition for NASCAR was low, as the rivals drove the automobiles comparable to the automobiles driven by normal individuals.
After performing its very first race effectively the company moved towards constructing its own tracks. The first Security Factors Case Study Solution based track, namely the Darlington Raceway track, was initiated 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 transmitting its races on tv in 1979. The very first event relayed on tv was flag-to-flag protection of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he transformed NASCAR from a local Sport popular organization into one with international fan base. He initiated a new era of profitable sponsorships and television agreements for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having vast array of revenue sources. The business has about 500 sponsors with broadcasting its occasions in about 150 nations. The business has a great deal of tracks in the majority of the cities of United States.
The decline in the business's offerings began after 2005 with typical attendance rate per race declined by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The significant causes of decline include the financial crisis of 2008, which increased the cost of coming to tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.
The market division of Security Factors Case Study Analysis can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Security Factors 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 countries. 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 offers the company regional along with global fan base.
The demographic segmentation of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its present 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 trying to increase its target audience to the young growing population and kinds as well. To increase the group sector of its market NASCAR need to modify its marketing methods to bring in more age groups and lower its prices to enter in the market section with a low typical earnings.( htt1).
The psychological qualities 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 buy tickets and see the races. 71% of them prefer to purchase products with a NASCAR brand name. They are quite extrovert and are willing to join other fans while racing. They desire quality racing with low cost at hassle-free place. NASCAR has actually tried to increase the quality of its racing by presenting stage racing, they also have attempted to lower rates and make the event more practical by introducing live racing.
Behavioural segmentation of Security Factors Case Study Solution is based upon the behaviour of fans in regards to viewing the race reside on the television or by entering the occasions. Presently, the fans preference is towards watching the race in your home on television instead of going, as the client experience at NASCAR tracks is not beneficial in addition to pricey. This preference makes the rates for attendance lower than the rates for television audiences. NASCAR has to change the behaviour of its fan base by introducing qualitative services at its tracks.
Among the prospective target market of Security Factors Case Study Analysis was Hispanics; the young and growing population of United States. The marketplace sector has great potential for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. The section shows affinity with cars and truck culture, however require a more focused marketing towards inviting the sector towards racing.
Kids are also one of the possible target market sector for NASCAR, as they are more connected socially than other groups. Car racing games established by Security Factors Case Study Solution can be a prospective source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and enhancing its digital functions to draw in the kids target market.
Generation Y target market consists of those who invested 5 times more resources on discretionary expenses i.e. acquiring tickets for racing occasions, than others. This big expense makes the segment capacity for NASCAR marketing method of increasing its fan base. The marketplace sector is also simple to technique as 81% of the Y Generation consumer utilizes Facebook every day and the usage is two times of using tv and radio. The market segment views sports as a social occasion, instead of adherence to sport. The marketplace section thinks about NASCAR as an organization doing not have in developing a multiculturalism environment. Security Factors Case Study Solution must take numerous steps to enhance the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions relating to marketing. These 5 C's needs to be evaluated properly for taking any marketing choice. These 5 C's stands for Environment, Business, Collaborators, Clients and Rivals.
It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, ecological and legal and is specified above.
NASCAR is an automobile racing company with having USP of high quality vehicle racing with an international structure. Its sector is sports group and occasions. Its target audience is males in the age group of 15-60 years. Company has closed corporate culture and having non-interventionist approach.
Collaborations consists of distributors, providers and alliances of NASCAR. NASCAR utilized 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 create its Facebook page, twitter account or even mobile application.
The client of Security Factors Case Study Analysis 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 commitment.
Teams typically represents sponsors in NASCAR and the medium of advertising is motorists. These chauffeurs can go versus NASCAR if they got better opportunity in terms of prizes and television exposure.
1. Developing and Maintaining Facebook Page.
One of the potential target markets segments for NASCAR is Hispanics which is the growing population sector of USA but unfortunately NASCAR had actually been not able to attract the this targeted sector. It ought to develop a Facebook page containing the information relating to the races and the locations of tracks to make the consumer informative about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Key Drivers.
Security Factors Case Study Analysis motorists has a low star power as compare to gamers of other sports. The bad contacts with fans result in less tourist attraction of audiences towards the racers and a low star power. Star power is a crucial factor for attracting viewers towards tracks and towards television.
3. Developing New Games and enhancing current video games for kids.
In order to attract these kids, NASCARA ought to improve its existing racing games by introducing customization in the cars and trucks i.e. changing colours, choice of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and presenting different levels in the video game. All these adjustments in the existing game would offer much better experience to kids.
In addition to it, NASCAR needs to likewise develop brand-new games related to racing like kids racing with kids characters as motorists, cartoon racing with racing in between different animation characters with a choice of picking the preferred animation character for the kids. These strategies would make it possible for the business to bring in among its potential target sections.
4. Presenting multiculturalism at occasions.
Security Factors Case Study Analysis occasions are consisted of fans with really few multiculturalism, due to expense of arrival in events, making it unappealing for the clients viewing sport occasions as social occasions i.e. Generation Y consumers. As the Generation Y customers are a possible target market for NASCAR, therefore the company ought to take particular steps to attract this prospective target market. It needs to embrace methods to draw in the customers far from the tracks location with different culture. The technique to do so could be offering special discounts on tickets or free tickets to viewers coming from a specific distance or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more satisfied.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on infrastructure and facilities at tracks since on the race day viewers got disappointed. Audiences have many expectations from Security Factors Case Study Solution since in exact same market other companies are providing much better services than NASCAR. IF NASCAR do not work on this issue then its fans might moved to its competitors.
Marketing Budget plan.
Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, shows the cost related data for the marketing techniques. It can be seen that method 5 of enhancing consumer experience at tracks would require highest initial investment and expense and method 4 of presenting multiculturalism will need least expensive preliminary financial investment with least expensive even more per year cost.
NOTE: The worths about cost are presumed on reasonable basis due the absence of figures and facts connected 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 internal and external aspects of Security Factors Case Study Solution triggering the decline of television viewership rate and attendance rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long term. These techniques would deal with internal elements like poor client experience at tracks, insufficient social media marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., as well as with external aspects like moving of fans towards other sports, demographical changes in America and altering family life designs.