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Service Recovery Module Note Case Study Solution and Analysis


Service Recovery Module Note Case Study Help (National Association for Stock Vehicle Auto Racing) is an organization carrying out series of Stock Vehicle racing in United States and functioning as an approving body for driving the rules for Stock Automobile Racing. The organization was founded in 1947, by "Huge Costs" France. NASCAR arrange Stock Car Racing occasions in United States with the existence of about 130000 audiences on average in 2005. It also transmitted its events in about 150 countries. Stock Automobile Racing by NASCAR is the 2nd largest viewer sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of profits for Service Recovery Module Note Case Study Solution consists of; 10% of the total revenue from television rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed business culture with the non-interventionist approach. Nevertheless this non collaborative method brings tensions in the sport. The structure of Automobile of Tomorrow by Service Recovery Module Note Case Study Solution, with an objective of safety for the chauffeurs, brought various stress among the stakeholders of the sport.
Executive Summary
The communication audit, conducted in 2010, exposed that in spite of the fact that the business highly depend on the communications between its stakeholders, there was no identifiable business interaction strategy. The market's target consumers, instructions and objectives were all unknown.

The audit pointed out numerous doing not have of NASCAR in regards to absence of internal integration, absence of fan management technique and lack of social and digital media of marketing. The company has complicated environment with independent tracks, teams and drivers. This structure with closed corporate culture bring various obstacles in accelerating a change. Other partners in ecosystem includes the media networks i.e. tv and radio, and corporate online marketers.

Service Recovery Module Note Case Study Help viewers was highly devoted to the sport and the brands related to the NASCAR, making it appealing for sponsors and business online marketers.

Problem Declaration.

The company is presently facing the problem of declining rates of participation at racing tracks and rates of tv viewers. This can put a substantial impact on its revenues from sponsors, media rights, and from other sources of profits.

Situational Analysis.

Although the business was quite effective till 2005 with its traditional marketing methods, however soon after 2005 the company starts facing various problems consisting of decline of its fan base. A number of external in addition to internal aspects are accountable for the decline. Internal factors include; inadequate investment in social media and other digital medias of.

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. However the family system in America was altering resulting in decrease of impact of married male fan base over their children. Together with it understandings about automobile was also altering with perceiving automobile a lorry to reach at point B from point A, rather than as an enjoyable task. Other difficulties for Service Recovery Module Note Case Study Analysis 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. These all difficulties were tending the business to revise its marketing strategies.

SWOT Analysis.


In SWOT analysis, strengths specified as business's qualities which are different from its rivals. These are business's core competencies on which business efficiency or business success based on. Service Recovery Module Note Case Study Analysis core proficiencies includes it has rights of dictating rules as sanctioning body. Rules and guidelines regarding expert stock car racing are determined by NASCAR like if any group with required skills and resources can participate in races by following guidelines and policies determined by NASCAR. NASCAR has monopoly it this element. Its strengths also 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 utilized to transmit in more than 150 nations around the world with more than $56 million profits. The primary sources of their earnings come from tv rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and business sponsors. Since of biggest brand commitment of fans towards brands promoted by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).

Weak points.

Weak points of NASCAR includes its close culture which is non collective. Service Recovery Module Note Case Study Solution establishes Car of Tomorrow without collaboration so result is that drivers did not like that concept. It was also found that NASCAR had no effective technique for business interaction.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external elements which can be beneficial to business or the external elements on which business is having competitive advantage. NASCAR typically utilized to rely on conventional media sources like local paper for promotion of its sports. Typically these standard media sources try to cover their house team and particular type of occasions. NASCAR likewise came to know from these traditional media outlets that sport was challenging to cover. Media landscape likewise altered from conventional to digital landscape. Papers failed. NASCAR can deal with its capabilities to get optimal possible take advantage of this 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 likewise sold to Turner Sports. NASCAR utilized to make money check of around $15 million annually from Turner Sports. There are variety of cons behind this offer. For example Service Recovery Module Note Case Study Help had to get approval from Turner Sport if it want to create its Facebook page, twitter account and even mobile application. Turner Sport also had rights of every video which is shoot during race at track. Then they are required to pay licensing costs to Turner Sport, if media sources like papers, magazines and cable channels want to post videos of races on their particular pages. So NASCAR can work on terms and try to work out with Turner Sports to get optimal advantages of it. Star power plays very crucial role in generating profits from every sport. However it was noted that Service Recovery Module Note Case Study Help is lagging in this location i.e. star power. For instance when sports fans were asked regarding popular celebs and stars then NASCAR motorist was not discovered even in top twenty reactions. NASCAR can put efforts in this area too for profits generation. They must direct their drivers 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 strategic focuses compares and analysis Service Recovery Module Note Case Study Analysis techniques.


Economic down turn was experienced in late 2000 which can be threat for NASCAR because if there is financial down turn then individuals would be having less return on financial investment. Economic down turn also results in boost fuel rates which also affected NASCAR. Now if NASCAR make significant investments in brand-new sections which are based on brand-new customers then it may deal with negative comments from its core fan base.

Porter's Five Forces Analysis

It is important to understand market in which business is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to identify profitability, intensity and beauty of NASCAR company.

Competitive Rivalry

These chauffeurs can go against NASCAR if they got better chance in terms of rewards and tv direct exposure. If audiences take pleasure in other race cars and trucks and drivers more than NASCAR then audiences can shift to those other intriguing vehicles and drivers. NASCAR might be having threat from its two direct rivals that is Formula 1 and Moto GP.
Swot Analysis
Provider Power

The provider power indicates the variety of suppliers are offered in industry and what is the cost connected with supplier if company shifts from one supplier to another. Since drivers with needed abilities and resources are limited, in this industry there is supply monopoly.

Buyer Power

In the case of NASCAR clients are its audiences. Viewers can change to other competitors quickly because viewers will having low changing cost.

Threat of Replacement

Substitutes are referred as alternatives. The alternatives in this case can be other home entertainment implies like viewers can shift to other sports. So there are large range of replacements are readily available in this scenario which recommends that risk of alternative is high.

Danger of New Entry

In the case of NASCAR risk of brand-new entry is low. They require to build cars and trucks and racing tracks and also requires to pay hefty amount to chauffeurs for switching.

PESTEL Analysis


As NASCAR is working in different markets so it requires to deal with various regulations. It is likewise noted that NASCAR has actually dealt with increased analysis regarding regulatory. Every government has various concern so NASCAR has to be prepared for it as top priority can be shifted to other sector.


Economic elements consists of tax rate, currency exchange rate, financial efficiency of that specific business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its rivals can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can utilize abilities of staff members to create new chances and enhance existing opportunities.


Every society is different from each other. Each has different social values and standards. It assists in understanding relating to society and choice of customers. Social aspects consists of customs, culture, attitudes towards particular product and services, demographics, standards, interests etc. It can be concluded that marketing through other means rather than conventional (i.e. newspaper) can be chosen in this society.


In this case of NASCAR it can be kept in mind that companies are heavily investing for research study and development. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays an essential role in every nation because every country has various legal terms. Service Recovery Module Note Case Study Help requires to be make sure that they protect their legal rights in every county so any business does not harm to its legal rights.


Environmental elements are also essential for every organisation. Because generally federal governments don't allow those company which can hurt to environment. These ecological aspects includes laws regarding pollution, environment change, safe garbage disposal, policies concerning insurance coverage etc. NASCAR requires to ensure that its vehicles are not generating contamination more than acceptable level.

7 P's of Marketing


The products of Service Recovery Module Note Case Study Solution in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


Rates strategy of NASCAR for its race events tickets is based upon the location and value of the racing events. Along with race events tickets, NASCAR also charge different service fees to its stakeholders and makes profits. For instance it charged sanctioning fees of $1-2 million per race typically in 2005.


Marketing strategy of Service Recovery Module Note Case Study Analysis is extremely based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. Nevertheless, the company is not completely relied upon its fan base for its promotion and promote through local radio stations too. The business has actually likewise adopted the merchandising media of promotion, in which the business sells merchandises with its logo.


NASCAR have its racing tracks in numerous cities in United States. The most essential 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 appeal.


Nestle individuals strategy is comprised of offering much better experience to its viewers, its fan base and to all of its stakeholders. People are an essential element of Service Recovery Module Note Case Study Help A marketing method as its occasions are the source of home entertainment for crowd. Its individuals strategy consists of efforts to provide better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under people method of NASCAR.


A number of service processes are needed to carry out racing events in an effective way. These procedures include; appropriate schedule of time, plan for viewers, selling tickets, arrangement of area for sponsors, handling logistics and so on. These all processes contribute I building NASCAR image, enhancing viewers experience and increasing fan base.

Physical Evidence.

Essential physical proofs for the NASCAR consists of the presence of its racing tracks, stock cars and racing events. Together with it, its retailing brand names including t-shirts, caps, goodies and so on, also serve as a physical proof for NASCAR.

Item Life Cycle Evaluation.

The racing events by Service Recovery Module Note 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 very first stage competitors for NASCAR was low, as the competitors drove the cars comparable to the cars driven by common people.


After conducting its very first race successfully the business moved towards constructing its own tracks. The very first Service Recovery Module Note Case Study Solution based track, particularly 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 growth of racing tracks the business moved towards transmitting its races on television in 1979. The very first occasion transmitted on tv was flag-to-flag coverage of Daytona.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular company into one with worldwide fan base. He started a new age of rewarding sponsorships and television contracts for NASCAR.


The maturity duration for NASCAR started with the efforts of William France Jr., with the company having vast array of profits sources. The business has about 500 sponsors with transmitting its events in about 150 countries. The company has a great deal of tracks in most of the cities of United States.


The major causes of decline consist of the monetary crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.

Market Segmentation.

The marketplace division of Service Recovery Module Note Case Study Analysis can be divided into 4 sections; 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 different states and cities in United States, and the television broadcasting of its occasions in various nations. The company 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 large geographical division offers the company local in addition to international fan base.


The group division of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly consisted of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. However currently NASCAR is attempting to increase its target market to the young growing population and kinds also. To increase the group sector of its market NASCAR need to revise its marketing methods to draw in more age groups and lower its prices to go into in the market section with a low typical income.( htt1).


The mental characteristics of the majority of the fans are quite comparable. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to purchase tickets and see the races once in a week. 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 want quality racing with low price at practical area. Although Service Recovery Module Note Case Study Help has attempted to increase the quality of its racing by presenting stage racing, they also have actually attempted to lower rates and make the occasion more convenient by presenting live racing.


Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of viewing the race live on the television or by going in the events. Presently, the fans preference is towards watching the race at home on television rather than going, as the client experience at NASCAR tracks is not favourable as well as costly.

Target audience.


One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market section has fantastic prospective for NASCAR as the population was growing at a greater rate and it was expected to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are likewise among the possible target market sector for NASCAR, as they are more connected socially than other groups. Creating fan base among kids can provide a potential increase in the number of fans for racing due to their connectivity. Kids spend most of their times in utilizing smartphones and playing computer game. Automobile racing games established by Service Recovery Module Note Case Study Analysis can be a possible source of acquiring attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital features related to kids are not capable of gaining the attention. NASCAR needs more attention towards tailoring and improving its digital functions to attract the kids target audience.

This big expenditure makes the sector potential for NASCAR marketing strategy of increasing its fan base. The market sector considers NASCAR as a company doing not have in creating a multiculturalism environment. NASCAR must take numerous steps to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing helps in taking decisions concerning marketing.


It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE means political, economic, social, technical, ecological and legal and is mentioned above.


NASCAR is an auto racing business with having USP of high quality vehicle 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 closed business culture and having non-interventionist method.


Collaborations includes distributors, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million annually 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 client of Service Recovery Module Note Case Study Analysis are its viewers. They target clients 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 develop generational commitment.


Groups normally represents sponsors in NASCAR and the medium of marketing is motorists. These motorists can go against NASCAR if they got better opportunity in terms of prizes and tv direct exposure.

Marketing Methods.

1. Developing and Preserving Facebook Page.
Among the prospective target audience sections for NASCAR is Hispanics which is the growing population sector of U.S.A. but regrettably NASCAR had been not able to draw in the this targeted segment. In order to attract the young growing generation the NASCAR need to market by utilizing social media like Facebook. It should develop a Facebook page consisting of the information relating to the races and the locations of tracks to make the customer informative about the core operations of Service Recovery Module Note Case Study Help. It should also update its Facebook page on everyday basis to offer info about its approaching occasions. This would make the target market section more informative about business and would result in bring in large fans base.
2. Establishing and Updating Accounts of Secret Drivers.
Service Recovery Module Note Case Study Solution motorists has a low star power as compare to gamers of other sports. The bad contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is a crucial factor for attracting audiences towards tracks and towards television.
3. Developing New Games and improving current video games for kids.
Kids invested most of their time on playing video games and utilizing mobile phones. Sadly, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less brought in towards the sport. In order to attract these kids, NASCARA should enhance its existing racing video games by presenting modification in the cars and trucks i.e. altering colours, choice of speed, presenting group racing in the game, utilizing much better graphics related to the racing tracks and introducing different levels in the video game. All these adjustments in the existing game would provide much better experience to kids.
Along with it, NASCAR must also construct brand-new video games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing between different animation characters with an option of choosing the preferred animation character for the kids. These techniques would enable the business to attract among its potential target sectors.
4. Introducing multiculturalism at events.
NASCAR events are made up of fans with really few cultural variety, due to expense of arrival in occasions, making it unappealing for the consumers viewing sport occasions as social events i.e. Generation Y clients. As the Generation Y customers are a prospective target market for NASCAR, therefore the company should take particular measures to attract this possible target market.
5. Improving Client Experience at Tracks.
Service Recovery Module Note Case Study Help ought to work on facilities and amenities at tracks since on the race day viewers got dissatisfied. Viewers have many expectations from NASCAR because in exact same market other companies are offering better services than NASCAR. Then its fans may moved to its rivals, if NASCAR don't work on this concern. According to fans there were not adequate centers were available as compare to other sports providers. NASCAR should make sure that it offer sufficient centers that includes cleaned washrooms, comfortable seating arrangement. They need to likewise offer WIFI services and ease of access of charge card throughout that track. It should be also make certain that there suffice jumbo turns placed at all required locations. There need to be likewise food stalls that supply quality food to audiences. In this method audiences will be having enjoyable experience at the day of event. (See Appendix B).

Marketing Spending plan

Marketing spending plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the expense associated data for the marketing methods. It can be seen that strategy 5 of enhancing consumer experience at tracks would require greatest preliminary financial investment and expense and method 4 of introducing multiculturalism will need least expensive initial investment with most affordable even more per year expense.
NOTE: The worths about expense are assumed on rational basis due the lack of realities and figures connected to cost in the case research study. Inflation rate of United States is assumed to be 10%.

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