Security Factors Case Study Solution and Analysis
Security Factors Case Study Help (National Association for Stock Car Car Racing) is a company conducting series of Stock Car racing in United States and acting as a sanctioning body for driving the rules for Stock Automobile Racing. The organization was established in 1947, by "Big Bill" France. NASCAR organize Stock Car Racing occasions in United States with the presence of about 130000 viewers on average in 2005. It likewise relayed its events in about 150 countries. Stock Vehicle Racing by NASCAR is the 2nd biggest viewer sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its earnings. The other sources of earnings for Security Factors Case Study Help consists of; 10% of the total profits from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed business culture with the non-interventionist method. Nevertheless this non collective approach brings tensions in the sport. The structure of Vehicle of Tomorrow by Security Factors Case Study Solution, with an intent of security for the motorists, brought various stress amongst the stakeholders of the sport.
The interaction audit, carried out in 2010, revealed that regardless of the truth that business extremely rely on the interactions between its stakeholders, there was no recognizable business interaction technique. The market's target consumers, direction and goals were all unknown.
The audit pointed out numerous lacking of NASCAR in terms of absence of internal combination, absence of fan management strategy and absence of social and digital media of marketing. The company has complicated ecosystem with independent tracks, chauffeurs and groups. This structure with closed corporate culture bring various obstacles in speeding up a change. Other partners in environment consists of the media networks i.e. television and radio, and corporate marketers.
Security Factors Case Study Help audiences was highly loyal to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate marketers.
The business is currently facing the issue of decreasing rates of attendance at racing tracks and rates of television viewers. This can put a considerable effect on its profits from sponsors, media rights, and from other sources of profits.
Although the business was rather successful till 2005 with its conventional marketing strategies, however not long after 2005 the business begins dealing with various problems including decline of its fan base. A number of external in addition to internal aspects are accountable 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 produce generational commitment. Other obstacles for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, etc.
NASCAR core proficiencies includes it has rights of determining guidelines as approving body. Guidelines and guidelines concerning professional stock vehicle racing are dictated by NASCAR like if any group with required abilities and resources can enter into races by following rules and regulations determined by NASCAR. All the events of NASCAR are sponsored by corporates because of greatest brand name commitment of fans toward brand names marketed by Security Factors Case Study Help.
Weaknesses of NASCAR includes its close culture which is non collective. Security Factors Case Study Solution establishes Car of Tomorrow without collaboration so result is that motorists did not like that principle. It was also found that NASCAR had no reliable strategy for organisation communication.
Opportunities in SWOT analysis are external aspects which can be beneficial to business or the external elements on which company is having competitive advantage. NASCAR usually utilized to rely on traditional media sources like regional newspaper for publicity of its sports. Generally these traditional media sources try to cover their house team and certain type of occasions. NASCAR likewise familiarized from these traditional media outlets that sport was difficult to cover. Media landscape likewise altered from traditional to digital landscape. Newspapers went out of business. NASCAR can deal with its capabilities to get maximum possible gain from this 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 used to earn money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. For example Security Factors Case Study Solution had to get approval from Turner Sport if it wish to produce its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot throughout race at track. Then they are needed to pay licensing charges to Turner Sport, if media sources like papers, magazines and cable television channels desire to post videos of races on their respective pages. NASCAR can work on terms and conditions and attempt to negotiate with Turner Sports to get maximum benefits of it. Star power plays really crucial function in creating revenues from every sport. Nevertheless it was noted that Security Factors Case Study Solution is lagging in this location i.e. star power. When sports fans were asked relating to popular celebrities and stars then NASCAR chauffeur was not discovered even in leading twenty reactions. NASCAR can put efforts in this location too for income generation. They ought to guide their drivers that how they can become sport stars. 4 strategic focuses which are produced by research study team can likewise be acted as opportunity for NESCAR. These four strategic focuses compares and analysis Security Factors Case Study Help methods.
Risks in SWOT analysis are specified as external elements that can danger to business's success. Economic down turn was experienced in late 2000 which can be danger for NASCAR due to the fact that if there is economic down turn then individuals would be having less return on investment. Earning of people would be effected and they would be more conscious in investing their cash. Economic down turn also results in boost fuel prices which also affected NASCAR. Because fans of NASCAR utilized to attend its event from cross countries. NESCAR had a rule of 65/25/10 for income distribution. 65 percent incomes from media rights would be dispersed to race tracks, 25 percent earnings would be distributed to competing group and staying 10 percent would be retained by NESCAR which is approving body. Completing team wished to increase their portion of earnings from 25 percent because of boost in operating cost of a race group and also there is decline in the variety of full-season sponsorship. Since they are making huge financial investments to enhance experience of fans, nescar also faces hazards from other sponsors. For example that includes updating existing opportunities, constructing new avenues, offering Wi-Fi center and likewise supplying other interactive mediums to communicate sports on mobile phones. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and develop generational loyalty. So the challenge is that the family system in America was changing resulting in reduction of influence of married male fan base over their youngsters. Together with it understandings about car was also changing with viewing vehicle a lorry to reach at point B from point A, rather than as a fun project. If NASCAR make substantial investments in new sectors which are based on new clients then it may face negative remarks from its core fan base, now.
Porter's 5 Forces Analysis
It is important to understand market in which business is working since NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to determine success, strength and attractiveness of NASCAR service.
This force indicates capability of rivals. Teams usually represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be stated that drivers and race cars are competitors. If they got much better opportunity in terms of rewards and tv direct exposure, these drivers can go against Security Factors Case Study Analysis. If viewers enjoy other race automobiles and motorists more than NASCAR then audiences can shift to those other intriguing vehicles and drivers. NASCAR could be having danger from its two direct competitors that is Formula 1 and Moto GP. They need to produce competitive benefits for chauffeurs so they do not move to other rivals.
If company shifts from one provider to another, the provider power shows the number of providers are available in market and what is the cost associated with supplier. Because chauffeurs with needed skills and resources are restricted, in this industry there is supply monopoly.
This force is concerning to customers that is it easy for customers to move to other items. Then customers are less likely to change, if there is more switching expense is associated. In the case of NASCAR customers are its viewers. Because audiences will having low changing expense, viewers can switch to other competitors quickly.
Danger of Substitution
Substitutes are referred as options. The alternatives in this case can be other entertainment suggests like viewers can move to other sports. So there are wide range of substitutes are available in this scenario which recommends that danger of replacement is high.
Risk of New Entry
In the case of NASCAR danger of new entry is low. They need to construct cars and trucks and racing tracks and also requires to pay large quantity to chauffeurs for switching.
It can not be concluded from case research study that there would be change in resource allowances. NASCAR had got take advantage of lower tax policies which results in increasing in profits. They made heavy investments in the research study and advancement. As NASCAR is operating in various markets so it needs to face different policies. It is also kept in mind that Security Factors Case Study Solution has actually faced increased analysis regarding regulative. Every government has different concern so NASCAR has to be gotten ready for it as top priority can be shifted to other sector.
Economic elements includes taxation rate, currency exchange rate, financial performance of that particular company, 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 competitors can be affected. NASCAR can take advantage of capabilities of employees to create new chances and enhance existing chances.
Every society is various from each other. Each has various social worths and norms. It helps in comprehending relating to society and choice of consumers. Social factors includes traditions, culture, mindsets towards particular services and products, demographics, norms, interests and so on. It can be concluded that advertising through other methods rather than conventional (i.e. newspaper) can be preferred in this society.
Technology has effect on practically every business. It includes development in business method. In this case of Security Factors Case Study Help it can be kept in mind that business are greatly spending for research and development. NASCAR ought to also deal with its media rights policy with Turner Broadcasting System.
Legal plays an important function in every country since every nation has different legal terms and conditions. Security Factors Case Study Help requires to be make sure that they secure their legal rights in every county so any business does not damage to its legal rights.
Ecological aspects are also essential for every service. NASCAR requires to make sure that its vehicles are not creating pollution more than appropriate level.
7 P's of Marketing
The items of Security Factors Case Study Solution in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rates strategy of NASCAR for its race events tickets is based upon the venue and significance of the racing events. Together with race occasions tickets, NASCAR likewise charge various service charge to its stakeholders and makes revenue. For example it charged sanctioning fees of $1-2 million per race typically 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 crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto 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 across the country popularity.
Nestle individuals strategy is comprised of providing much better experience to its viewers, its fan base and to all of its stakeholders. People are an important element of Security Factors Case Study Analysis A marketing method as its events are the source of home entertainment for crowd. Its individuals strategy consists of efforts to supply better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under people technique of NASCAR.
Several company procedures are needed to conduct racing events in an effective method. These processes include; proper schedule of time, arrangement for viewers, selling tickets, plan of area for sponsors, handling logistics etc. These all procedures contribute I developing NASCAR image, improving viewers experience and increasing fan base.
Essential physical proofs for the NASCAR consists of the presence of its racing tracks, stock cars and trucks and racing occasions. Along with it, its retailing brand names consisting of tee shirts, caps, goodies etc., likewise function as a physical proof for NASCAR.
Item Life Process Evaluation.
The racing occasions by NASCAR was presented on June 19, 1949. At the first phase competitors for NASCAR was low, as the competitors drove the cars and trucks similar to the vehicles driven by common individuals.
The first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the company moved towards relaying its races on tv in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with international fan base. He started a new period of profitable sponsorships and tv agreements for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the company having wide variety of income sources. The company has about 500 sponsors with broadcasting its events in about 150 nations. The business has a great deal of tracks in most of the cities of United States.
The decline in the company's offerings started after 2005 with typical participation rate per race decreased by 22% from 2005 to 2010 and tv viewership rate declined by 30% from 2005 to 2010. The major causes of decline include the monetary crisis of 2008, which increased the cost of reaching tracks for viewers due to increasing fuel costs, and the moving of its fan base towards other sports.
The market division of Security Factors Case Study Solution can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Security Factors Case Analysis is based upon the geographical presence of its tracks in various states and cities in United States, and the tv broadcasting of its events in numerous nations. The business has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation supplies the company local as well as international fan base.
The group segmentation of Security Factors Case Study Help is likewise highlydiverse based upon the gender, earnings and age of the consumer. To increase the demographic segment of its market NASCAR must modify its marketing strategies to draw in more age groups and lower its prices to enter in the market section with a low typical earnings.
The psychological characteristics of most of the fans are quite similar. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to buy tickets and see the races when in a week. 71% of them choose to acquire products with a NASCAR trademark name. They are rather extrovert and are willing to join other fans while racing. They want quality racing with low price at hassle-free location. Although Security Factors Case Study Help has attempted to increase the quality of its racing by presenting stage racing, they also have tried to lower rates and make the occasion easier by presenting live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the television or by going in the events. Currently, the fans choice is towards viewing the race at house on tv rather than going, as the customer experience at NASCAR tracks is not favourable as well as costly.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has fantastic 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.
Kids are also among the possible target market sector for NASCAR, as they are more connected socially than other groups. Producing fan base amongst kids can offer a possible boost in the variety of fans for racing due to their connectivity. Kids spend most of their times in playing and utilizing smartphones video games. Automobile racing video games established by Security Factors Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital features related to kids are not capable of getting the attention. NASCAR requires more attention towards customizing and enhancing its digital functions to bring in the kids target audience.
This substantial expense makes the section capacity for NASCAR marketing technique of increasing its fan base. The market section considers NASCAR as a company lacking in developing a multiculturalism environment. NASCAR ought to take numerous actions to improve the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions concerning marketing. These 5 C's needs to be evaluated correctly for taking any marketing decision. These 5 C's stands for Environment, Business, Collaborators, Rivals and consumers.
It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, ecological and legal and is stated above.
Security Factors Case Study Help is an automobile racing business with having USP of high quality car racing with an international structure. Its sector is sports team and events.
Collaborations includes distributors, suppliers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application.
The consumer of Security Factors Case Study Solution are its viewers. They target customers 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 children and create generational commitment.
Teams usually represents sponsors in NASCAR and the medium of marketing is drivers. These motorists can go versus NASCAR if they got much better chance in terms of prizes and television direct exposure.
1. Maintaining and developing Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population segment of U.S.A. but unfortunately NASCAR had actually been unable to draw in the this targeted section. In order to attract the young growing generation the NASCAR need to market by utilizing social networks like Facebook. It must develop a Facebook page containing the information regarding the races and the places of tracks to make the customer helpful about the core operations of Security Factors Case Study Analysis. It needs to likewise upgrade its Facebook page on everyday basis to offer information about its upcoming occasions. This would make the target audience sector more helpful about the business and would lead to drawing in big fans base.
2. Developing and Updating Accounts of Secret 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 Exhibit). The major factor behind it is that, the racers primarily play in teams and are not able to construct a crucial account and preserve a close contact with fans. The poor contacts with fans result in less destination of audiences towards the racers and a low star power. Star power is an essential element for attracting viewers towards tracks and towards television. The star power for the drivers at NASCARA might be enhanced by developing and upgrading accounts of essential motorists by NASCARA itself. This would get rid of the requirement of requiring chauffeurs to preserve their accounts and would lead to increasing fans attention towards NASCARA chauffeurs.
3. Developing New Games and improving current video games for kids.
Kids invested most of their time on playing video games and using smartphones. Sadly, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less drawn in towards the sport. In order to attract these kids, NASCARA needs to improve its present racing games by introducing customization in the automobiles i.e. changing colours, choice of speed, presenting group racing in the video game, using better graphics related to the racing tracks and introducing numerous levels in the game. All these adjustments in the present game would provide better experience to kids.
Together with it, NASCAR needs to also build new games associated with racing like kids racing with kids characters as motorists, animation racing with racing between different cartoon characters with an option of selecting the favourite animation character for the kids. These strategies would allow the company to bring in among its prospective target segments.
4. Introducing multiculturalism at events.
Security Factors Case Study Help events are consisted of fans with really few cultural diversity, due to expense of arrival in occasions, making it unappealing for the consumers perceiving sport events as get-togethers i.e. Generation Y consumers. As the Generation Y clients are a possible target market for NASCAR, for that reason the company must take particular steps to attract this possible target market. It needs to adopt techniques to attract the consumers far from the tracks place with various culture. The strategy to do so might be providing unique discount rates on tickets or free tickets to viewers originating from a particular distance or from another state. It would increase cultural diversity of the fans and would make Generation Y customers more satisfied.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on facilities and amenities at tracks since on the race day viewers got disappointed. Audiences have many expectations from Security Factors Case Study Solution due to the fact that in same industry other companies are providing much better services than NASCAR. IF NASCAR do not work on this problem then its fans may shifted to its rivals.
Marketing Budget plan
Marketing budget made on the basis of the above techniques for the period of 5 years from 2011 to 2015, shows the expense associated information for the marketing strategies. It can be seen that method 5 of enhancing consumer experience at tracks would need highest preliminary financial investment and cost and strategy 4 of introducing multiculturalism will need least expensive preliminary financial investment with least expensive further per year cost.
KEEP IN MIND: The values about expense are presumed on reasonable basis due the lack of facts and figures associated with cost in the event research study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external elements of Security Factors Case Study Help triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long term. These strategies would deal with internal elements like poor client experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., as well as with external aspects like moving of fans towards other sports, demographical modifications in America and altering domesticity styles.