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NASCAR (National Association for Stock Car Car Racing) is a company carrying out series of Stock Vehicle racing in United States and acting as an approving body for driving the guidelines for Stock Vehicle Racing. 2) Stock Cars And Truck Racing by NASCAR is the second biggest spectator sport, with highest number of sponsors. 1) The other sources of profits for Service Recovery Module Note Case Study Solution includes; 10% of the overall profits from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed business culture with the non-interventionist technique. The building of Vehicle of Tomorrow by NASCAR, with an intention of safety for the motorists, brought numerous stress among the stakeholders of the sport.

The interaction audit, carried out in 2010, exposed that in spite of the fact that business extremely rely on the interactions in between its stakeholders, there was no recognizable service interaction technique. The industry's target clients, instructions and goals were all unknown.

The audit mentioned numerous doing not have of NASCAR in terms of lack of internal integration, lack of fan management method and absence of digital and social media of marketing. The company has complex ecosystem with independent tracks, groups and chauffeurs. This structure with closed corporate culture bring different difficulties in speeding up a modification. Other partners in environment consists of the media networks i.e. television and radio, and corporate marketers.

Service Recovery Module Note Case Study Help viewers was extremely faithful to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate marketers.

Problem Statement.

The business is currently facing the issue of declining rates of attendance at racing tracks and rates of tv audiences. This can put a considerable influence on its earnings from sponsors, media rights, and from other sources of income.

Situational Analysis.

Although the business was quite effective till 2005 with its standard marketing methods, however right after 2005 the company begins facing different issues consisting of decrease of its fan base. A number of external along with internal aspects are accountable for the decline. Internal elements consist of; inadequate financial 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 children and produce generational loyalty. The household system in America was changing resulting in decrease of influence of married male fan base over their children. Along with it perceptions about vehicle was likewise changing with viewing car a vehicle to reach at point B from point A, instead of as a fun job. Other difficulties for Service Recovery Module Note Case Study Analysis consists of the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, and so on. These all difficulties were tending the business to modify its marketing techniques.

SWOT Analysis.


NASCAR core proficiencies includes it has rights of determining guidelines as approving body. Guidelines and policies regarding professional stock cars and truck racing are dictated by NASCAR like if any team with needed abilities and resources can get in into races by following guidelines and guidelines determined by NASCAR. All the occasions of NASCAR are sponsored by corporates due to the fact that of most significant brand loyalty of fans toward brand names advertised by Service Recovery Module Note Case Study Solution.

Weak points.

Weak Points in SWOT Analysis are thought about as external aspects. Weaknesses consists of the aspects that stops business to carry out at required level of performance. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They typically used to form guidelines and other needed processes without intervention of others which leads to poor partnership. NASCAR develops Automobile of Tomorrow without partnership so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is likewise tough. It was also discovered that NASCAR had no effective technique for service communication. They do not know how to deal with problem if it happened off track. Inefficient business communication leads to that they don't have clear direction for their long term goals. They do not know that where they wish to see this sport in future.


Opportunities in SWOT analysis are external elements which can be beneficial to company or the external aspects on which company is having competitive advantage. NASCAR generally used to rely on traditional media sources like local newspaper for publicity of its sports. Typically these conventional media sources attempt to cover their home group and particular kind of occasions. NASCAR likewise came to know from these conventional media outlets that sport was hard to cover. Media landscape also altered from standard to digital landscape. Newspapers went out of business. NASCAR can deal with its capabilities to get optimal possible take advantage of this brand-new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were also sold to Turner Sports. NASCAR utilized to make money check of around $15 million every year from Turner Sports. There are number of cons behind this offer. For example Service Recovery Module Note Case Study Help needed to get approval from Turner Sport if it wish to produce its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every video which is shoot during race at track. Then they are needed to pay licensing costs to Turner Sport, if media sources like newspapers, publications and cable channels desire to post videos of races on their particular pages. NASCAR can work on terms and conditions and attempt to work out with Turner Sports to get optimal benefits of it. Star power plays really important role in creating earnings from every sport. It was noted that NASCAR is lagging in this area i.e. star power. For example when sports fans were asked concerning popular celebrities and stars then NASCAR motorist was not found even in leading twenty responses. So NASCAR can put efforts in this area too for earnings generation. They should guide their motorists that how they can become sport stars. 4 tactical focuses which are generated by research group can likewise be acted as opportunity for NESCAR. These 4 tactical focuses compares and analysis Service Recovery Module Note Case Study Help strategies.


Economic down turn was experienced in late 2000 which can be danger for NASCAR because if there is economic down turn then individuals would be having less return on investment. Economic down turn also results in increase fuel costs which also affected NASCAR. Now if NASCAR make substantial investments in new sections which are based on brand-new customers then it might face negative remarks from its core fan base.

Porter's 5 Forces Analysis

It is essential to understand market in which company is working due to the fact that NASCAR's bottom line i.e. net revenue is greatly depends on this. There are 5 forces that are used to determine success, strength and appearance of NASCAR organisation.

Competitive Competition

This force indicates capability of rivals. Teams typically represents sponsors in NASCAR and the medium of marketing is motorists. It can be said that chauffeurs and race vehicles are competitors. If they got much better opportunity in terms of rewards and tv direct exposure, these chauffeurs can go against Service Recovery Module Note Case Study Solution. Then viewers can move to those other intriguing automobiles and chauffeurs, if audiences delight in other race cars and drivers more than NASCAR. NASCAR might be having risk from its two direct competitors that is Solution 1 and Moto GP. They require to develop competitive benefits for chauffeurs so they don't move to other competitors.

Provider Power

The provider power indicates the number of suppliers are readily available in industry and what is the cost related to provider if business shifts from one provider to another. In this market there is supply monopoly since chauffeurs with needed resources and skills are limited.

Buyer Power

In the case of NASCAR consumers are its viewers. Audiences can switch to other competitors easily because audiences will having low changing cost.

Hazard of Substitution

Replacements are referred as options. The alternatives in this case can be other entertainment suggests like viewers can move to other sports. There are broad variety of substitutes are available in this scenario which suggests that danger of replacement is high.

Danger of New Entry

In the case of NASCAR hazard of brand-new entry is low. They require to develop vehicles and racing tracks and also requires to pay large amount to drivers for switching.

PESTEL Analysis


As NASCAR is working in numerous markets so it needs to deal with various regulations. It is likewise kept in mind that NASCAR has dealt with increased analysis relating to regulatory. Every government has different priority so NASCAR has to be prepared for it as top priority can be shifted to other sector.


Economic aspects consists of taxation rate, currency exchange rate, economic performance of that specific company, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be affected if there is federal government intervention in the marketing and sales sector. NASCAR can leverage capabilities of staff members to create new chances and improve existing chances.


Every society is various from each other. Each has different social values and standards. It helps in comprehending regarding society and choice of clients. Social elements consists of traditions, culture, attitudes towards specific product and services, demographics, standards, 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.


In this case of NASCAR it can be noted that companies are heavily spending for research and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.


Since every country has different legal terms and conditions, Legal plays an essential role in every country. Service Recovery Module Note Case Study Solution requires to be make certain that they secure their legal rights in every county so any business does not damage to its legal rights.


Environmental factors are likewise essential for each organisation. Since typically federal governments do not permit those company which can damage to environment. These ecological elements consists of laws regarding pollution, climate modification, safe garbage disposal, policies relating to insurance coverage etc. NASCAR requires to ensure that its automobiles are not producing pollution more than appropriate level.

7 P's of Marketing


The products of Service Recovery Module Note Case Study Help in its item 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).


Pricing strategy of NASCAR for its race events tickets is based upon the location and importance of the racing events. Along with race events tickets, NASCAR likewise charge various service fees to its stakeholders and earns income. It charged sanctioning charges of $1-2 million per race on average in 2005.


Advertising method of Service Recovery Module Note Case Study Solution 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. However, the company is not totally trusted its fan base for its promotion and promote through local radio stations too. The company has actually likewise adopted the retailing media of promotion, in which the business sells products with its logo.


NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to understand across the country appeal.


Nestle individuals method is comprised of offering better experience to its viewers, its fan base and to all of its stakeholders. Individuals are a crucial element of Service Recovery Module Note Case Study Solution A marketing method as its events are the source of home entertainment for crowd. Its people technique consists of efforts to offer better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under individuals method of NASCAR.


Numerous service processes are needed to conduct racing events in an efficient way. These processes consist of; correct schedule of time, arrangement for viewers, offering tickets, arrangement of area for sponsors, handling logistics etc. These all processes contribute I constructing NASCAR image, improving spectators experience and increasing fan base.

Physical Proof.

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

Item Life Cycle Assessment.

The racing events by NASCAR was introduced on June 19, 1949. At the very first phase competitors for NASCAR was low, as the competitors drove the vehicles comparable to the automobiles driven by regular individuals.


The first NASCAR based track, namely 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., ended up being the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with global fan base. He initiated a brand-new period of lucrative 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 earnings sources. The company has about 500 sponsors with broadcasting its occasions in about 150 countries. The business has large number of tracks in the majority of the cities of United States.


The significant causes of decline consist of the financial crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Segmentation.

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


The geographical segmentation of Service Recovery Module Note Case Solution is based upon the geographical existence of its tracks in numerous states and cities in United States, and the television broadcasting of its events in numerous countries. The company has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division supplies the company regional along with international fan base.


The group segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its present fan base is majorly consisted of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Currently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the group sector of its market NASCAR must revise its marketing strategies to draw in more age groups and lower its rates to enter in the market sector with a low typical earnings.( htt1).


The psychological qualities of most of the fans are rather comparable. NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to purchase tickets and see the races as soon as in a week. 71% of them prefer to purchase items with a NASCAR brand name. They are quite extrovert and want to join other fans while racing. They desire quality racing with low price at hassle-free place. Although Service Recovery Module Note Case Study Solution has tried to increase the quality of its racing by presenting phase racing, they also have attempted to lower costs and make the occasion easier by introducing live racing.


Behavioural division 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 watching the race at home on tv rather than going, as the client experience at NASCAR tracks is not beneficial as well as expensive.

Target audience.


One of the prospective target audience of Service Recovery Module Note Case Study Help was Hispanics; the young and growing population of United States. The market section has great possible for NASCAR as the population was growing at a greater rate and it was anticipated to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. The segment reveals affinity with automobile culture, however need a more focused marketing towards welcoming the sector towards racing.


Kids are also one of the prospective target audience segment for NASCAR, as they are more connected socially than other groups. Creating fan base amongst kids can provide a possible boost in the number of fans for racing due to their connectivity. Kids spend the majority of their times in playing and using smartphones computer game. Automobile racing games established by Service Recovery Module Note Case Study Help can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of acquiring the attention. NASCAR requires more attention towards personalizing and improving its digital functions to attract the kids target market.

This substantial expense makes the section capacity for NASCAR marketing method of increasing its fan base. The market sector thinks about NASCAR as an organization doing not have in producing a multiculturalism environment. NASCAR needs to take numerous actions to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing assists in taking decisions relating to marketing. These 5 C's needs to be analysed appropriately for taking any marketing decision. These 5 C's stands for Environment, Company, Collaborators, Customers and Rivals.


It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE represents political, financial, social, technical, ecological and legal and is specified above.


NASCAR is a vehicle racing company with having USP of high quality car racing with an international structure. Its sector is sports team and events. Its target audience is males in the age of 15-60 years. Business has actually closed corporate culture and having non-interventionist technique.


Collaborations includes suppliers, providers and alliances of Service Recovery Module Note Case Study Analysis. It is worked together with various racing groups which are taking part in racing. It also collaborated with Turners Sport for digital rights. NASCAR used to make money check of around $15 million yearly from Turner Sports. There are number of cons behind this offer. For example NASCAR had to get approval from Turner Sport if it wish to create its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of every single video which is shoot during race at track.


The customer of Service Recovery Module Note Case Study Solution are its viewers. They target customers with having age of 15-60 years. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and create generational commitment.


Groups typically represents sponsors in NASCAR and the medium of advertising is drivers. These chauffeurs can go against NASCAR if they got much better chance in terms of rewards and television exposure.

Marketing Techniques.

1. Maintaining and developing Facebook Page.
Among the possible target audience sections for NASCAR is Hispanics which is the growing population segment of U.S.A. however unfortunately NASCAR had been not able to draw in the this targeted section. In order to bring in the young growing generation the NASCAR must market by utilizing social networks like Facebook. It must develop a Facebook page consisting of the information relating to the races and the locations of tracks to make the customer helpful about the core operations of Service Recovery Module Note Case Study Solution. It ought to also upgrade its Facebook page on everyday basis to supply details about its approaching events. This would make the target audience sector more useful about business and would result in drawing in big fans base.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Exhibition). The major factor behind it is that, the racers mainly play in groups and are not able to build a crucial account and keep a close contact with fans. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is an essential aspect for drawing in viewers towards tracks and towards tv. The star power for the drivers at NASCARA could be improved by creating and upgrading accounts of crucial drivers by NASCARA itself. This would get rid of the requirement of requiring drivers to keep their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Establishing New Games and improving current games for kids.
Kids spent most of their time on playing video games and utilizing mobile phones. However 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 draw in these kids, NASCARA must enhance its present racing video games by introducing modification in the automobiles i.e. changing colours, selection of speed, presenting group racing in the game, using better graphics associated with the racing tracks and presenting different levels in the game. All these modifications in the current game would provide much better experience to kids.
In addition to it, NASCAR ought to also develop new games associated with racing like kids racing with kids characters as drivers, cartoon racing with racing between various cartoon characters with an option of picking the favourite animation character for the kids. These strategies would enable the company to attract among its prospective target sectors.
4. Presenting multiculturalism at events.
NASCAR occasions are comprised of fans with extremely few cultural diversity, due to cost of arrival in occasions, making it unappealing for the clients viewing sport events as social occasions i.e. Generation Y customers. As the Generation Y clients are a possible target market for NASCAR, therefore the business needs to take particular steps to attract this potential target market.
5. Improving Customer Experience at Tracks.
Service Recovery Module Note Case Study Solution must deal with infrastructure and facilities at tracks because on the race day audiences got disappointed. Due to the fact that in same market other companies are providing better services than NASCAR, viewers have numerous expectations from Service Recovery Module Note Case Study Analysis. Then its fans might shifted to its rivals, if NASCAR do not work on this problem. According to fans there were not sufficient facilities were readily available as compare to other sports companies. So NASCAR should make sure that it supply sufficient facilities that consists of cleaned washrooms, comfy seating plan. They ought to likewise provide WIFI services and ease of access of credit cards throughout that track. It should be also make sure that there suffice jumbo turns placed at all needed locations. There should be also food stalls that supply quality food to audiences. In this method viewers will be having enjoyable experience at the day of event. (See Appendix B).
Marketing Budget plan.
Marketing spending plan made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, shows the cost associated data for the marketing methods. It can be seen that technique 5 of improving client experience at tracks would need highest preliminary financial investment and cost and strategy 4 of presenting multiculturalism will need most affordable preliminary financial investment with most affordable further per year expense.
NOTE: The worths about expense are presumed on rational basis due the absence of figures and truths related to cost in the case study. Inflation rate of United States is presumed to be 10%.


On the basis of deep analysis of the internal and external aspects of Service Recovery Module Note Case Study Solution triggering the decline of tv viewership rate and attendance rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long run. These strategies would handle internal factors like bad consumer experience at tracks, inadequate social media marketing, incapable digital medias like games, lack of culturalisms at tracks etc., along with with external elements like moving of fans towards other sports, demographical modifications in America and altering domesticity designs.

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