Sime Darby Berhad B The Asian Crisis Begins Online Case Study Solution

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Sime Darby Berhad B The Asian Crisis Begins Case Study Solution and Analysis


NASCAR (National Association for Stock Car Automobile Racing) is a company carrying out series of Stock Cars and truck racing in United States and acting as a sanctioning body for driving the guidelines for Stock Automobile Racing. 2) Stock Vehicle Racing by NASCAR is the second biggest viewer sport, with highest number of sponsors. 1) The other sources of revenue for Sime Darby Berhad B The Asian Crisis Begins Case Study Analysis includes; 10% of the total revenue from television rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand name to business.

NASCAR has a closed corporate culture with the non-interventionist method. The building of Car of Tomorrow by NASCAR, with an intent of security for the motorists, brought numerous tensions amongst the stakeholders of the sport.
Executive Summary
The interaction audit, performed in 2010, revealed that in spite of the reality that the service extremely rely on the communications between its stakeholders, there was no identifiable organisation communication method. (

The audit pointed out numerous doing not have of NASCAR in terms of absence of internal integration, absence of fan management technique and lack of digital and social media of marketing.

Sime Darby Berhad B The Asian Crisis Begins Case Study Analysis audiences was highly loyal to the sport and the brand names related to the NASCAR, making it appealing for sponsors and corporate marketers.

Issue Statement.

The business is currently facing the issue of decreasing rates of presence at racing tracks and rates of tv viewers. This can put a considerable impact on its profits from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The company was quite successful till 2005 with its standard marketing methods, but soon after 2005 the company begins dealing with numerous problems including decrease of its fan base. A number of external as well as internal aspects are accountable for the decrease. Internal factors consist of; inadequate financial investment in social networks and other digital medias of.

Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and develop generational loyalty. The household system in America was changing resulting in reduction of impact of married male fan base over their youngsters. In addition to it perceptions about cars and truck was likewise altering with perceiving vehicle an automobile to reach at point B from point A, rather than as a fun task. Other obstacles for Sime Darby Berhad B The Asian Crisis Begins Case Study Analysis includes 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, and so on. These all challenges were tending the company to revise its marketing methods.

SWOT Analysis.


In SWOT analysis, strengths defined as company's qualities which are various from its rivals. These are company's core proficiencies on which business efficiency or company success based on. Sime Darby Berhad B The Asian Crisis Begins Case Study Help core proficiencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and regulations regarding professional stock cars and truck racing are determined by NASCAR like if any team with needed abilities and resources can participate in races by following guidelines and policies dictated by NASCAR. So NASCAR has monopoly it this element. Its strengths also includes that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to relay in more than 150 nations around the globe with more than $56 million incomes. The main sources of their earnings originate from tv 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 also large resource of fans and corporate sponsors. Since of most significant brand commitment of fans toward brand names advertised by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).


Weaknesses in SWOT Analysis are thought about as external elements. Weaknesses consists of the aspects that stops business to perform at required level of performance. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They typically used to form rules and other required procedures without intervention of others which leads to bad cooperation. NASCAR develops Car of Tomorrow without cooperation so result is that drivers did not like that concept. As this is racing sport so covering of sports by media is likewise hard. It was also found that NASCAR had no reliable technique for service communication. They don't know how to handle concern if it occurred off track. Inadequate organisation communication results in that they do not have clear instructions for their long term objectives. They don't know that where they want to see this sport in future.
Porter's 5 Forces Analysis

NASCAR usually used to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR likewise came to know from these conventional media outlets that sport was tough to cover. When sports fans were asked concerning popular celebrities and stars then NASCAR motorist was not discovered even in top twenty actions.


Hazards in SWOT analysis are defined as external factors that can danger to company's success. Since if there is economic down turn then people would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be danger for NASCAR. Earning of people would be effected and they would be more conscious in spending their money. Economic down turn also leads to boost fuel prices which also affected NASCAR. Due to the fact that fans of NASCAR used to attend its event from cross countries. NESCAR had a rule of 65/25/10 for income distribution. 65 percent revenues from media rights would be distributed to race course, 25 percent revenue would be dispersed to contending group and remaining 10 percent would be retained by NESCAR which is sanctioning body. Completing group wished to increase their portion of revenue from 25 percent since of increase in running cost of a race group and also there is decline in the number of full-season sponsorship. Because they are making enormous financial investments to enhance experience of fans, nescar also deals with risks from other sponsors. Which includes upgrading existing opportunities, developing new opportunities, offering Wi-Fi facility and also offering other interactive mediums to engage sports on smart devices. 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. So the difficulty is that the household system in America was changing resulting in reduction of impact of married male fan base over their children. Along with it perceptions about car was also altering with viewing car a lorry to reach at point B from point A, instead of as a fun task. Now if Sime Darby Berhad B The Asian Crisis Begins Case Study Help make substantial financial investments in brand-new sections which are based upon new consumers then it might deal with negative remarks from its core fan base.

Porter's Five Forces Analysis

Porter's 5 forces is a design that is utilized to evaluate market in which business is working. It helps in identifying what are strengths and weak point of any particular industry. It suggest that every market is various from one another. It is very important to comprehend industry in which business is working because NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are utilized to identify success, intensity and beauty of Sime Darby Berhad B The Asian Crisis Begins Case Study Solution company.

Competitive Competition

These drivers can go versus NASCAR if they got better opportunity in terms of prizes and tv exposure. If audiences enjoy other race automobiles and motorists more than NASCAR then audiences can move to those other interesting cars and motorists. NASCAR could be having danger from its 2 direct competitors that is Solution 1 and Moto GP.
Swot Analysis
Provider Power

The supplier power indicates the variety of providers are readily available in market and what is the cost associated with provider if company shifts from one supplier to another. Since chauffeurs with required resources and skills are restricted, in this industry there is supply monopoly.

Buyer Power

This force is regarding to customers that is it simple for consumers to shift to other products. If there is more switching expense is associated then customers are less likely to switch. When it comes to NASCAR consumers are its viewers. Due to the fact that audiences will having low switching expense, viewers can switch to other competitors easily.

Threat of Replacement

Alternatives are referred as alternatives. The substitutes in this case can be other home entertainment indicates like audiences can shift to other sports. There are wide range of substitutes are available in this circumstance which recommends that hazard of substitute is high.

Danger of New Entry

It is specified as how it is simple for any company to enter in that specific market. When it comes to Sime Darby Berhad B The Asian Crisis Begins Case Study Analysis hazard of brand-new entry is low. Since if any company needs to enter in this organisation than they have to make heavy financial investments. They need to construct cars and trucks and racing tracks and also needs to pay hefty amount to chauffeurs for switching.

PESTEL Analysis


As NASCAR is working in various markets so it requires to face different policies. It is also noted that NASCAR has faced increased analysis relating to regulatory. Every federal government has different concern so NASCAR has to be prepared for it as concern can be shifted to other sector.


Financial elements consists of tax rate, currency exchange rate, economic performance of that specific company, 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 take advantage of abilities of staff members to create 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 relating to society and preference of clients. Social elements consists of traditions, culture, mindsets towards specific services and products, demographics, standards, interests etc. It can be concluded that marketing through other means 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 study and advancement. NASCAR must also work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Since every nation has various legal terms and conditions, Legal plays an essential function in every nation. Sime Darby Berhad B The Asian Crisis Begins Case Study Solution requires to be make certain that they secure their legal rights in every county so any business does not hurt to its legal rights.


Environmental elements are likewise crucial for every single service. Since generally governments don't permit those service which can damage to environment. These ecological factors includes laws relating to contamination, environment change, safe garbage disposal, policies regarding insurance and so on. NASCAR requires to make sure that its vehicles are not creating pollution more than acceptable level.

7 P's of Marketing


The products of Sime Darby Berhad B The Asian Crisis Begins Case Study Solution in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


Rates technique of NASCAR for its race occasions tickets is based upon the location and value of the racing occasions. Together with race events tickets, NASCAR likewise charge numerous service charge to its stakeholders and makes revenue. For example it charged sanctioning fees of $1-2 million per race typically in 2005.


Promotional method of Sime Darby Berhad B The Asian Crisis Begins 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. The business is not entirely relied upon its fan base for its promotion and promote through local radio stations too. The company has likewise embraced the merchandising media of promotion, in which the business sells merchandises with its logo design.


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


Nestle people strategy is consisted of supplying much better experience to its audiences, its fan base and to all of its stakeholders. People are an essential element of Sime Darby Berhad B The Asian Crisis Begins Case Study Help A marketing strategy as its events are the source of home entertainment for crowd. Its people method includes efforts to offer much better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals strategy of NASCAR.


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

Physical Evidence.

Essential physical evidences for the NASCAR includes the existence of its racing tracks, stock vehicles and racing occasions. In addition to it, its merchandising brand names including t-shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.

Product Life Process Evaluation.

The racing occasions by NASCAR was presented on June 19, 1949. At the first stage competition for NASCAR was low, as the rivals drove the cars similar to the cars and trucks driven by regular individuals.


After conducting its first race effectively the business moved towards building its own tracks. The first Sime Darby Berhad B The Asian Crisis Begins Case Study Analysis 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 company moved towards transmitting its races on tv in 1979. The very first occasion 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 regional Sport popular company into one with international fan base. He started a brand-new age of lucrative sponsorships and television agreements for NASCAR.


The maturity period for NASCAR began with the efforts of William France Jr., with the company having wide range of profits sources. The company has about 500 sponsors with relaying 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 include the monetary crisis of 2008, which increased the cost of arriving at tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Division.

The marketplace division of Sime Darby Berhad B The Asian Crisis Begins Case Study Solution can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Sime Darby Berhad B The Asian Crisis Begins Case Solution is based upon the geographical presence of its tracks in numerous states and cities in United States, and the television broadcasting of its events in various countries. The business has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division provides the company regional as well as worldwide fan base.


The demographic segmentation of Sime Darby Berhad B The Asian Crisis Begins Case Study Help is likewise highlydiverse based upon the gender, income and age of the customer. To increase the market segment of its market NASCAR must revise its marketing strategies to attract more age groups and lower its prices to go into in the market segment with a low average earnings.


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 buy tickets and see the races once in a week. 71% of them choose to buy products with a NASCAR brand. They are rather extrovert and are willing to mingle with other fans while racing. They want quality racing with low price at practical location. NASCAR has actually tried to increase the quality of its racing by introducing phase racing, they likewise have tried to lower prices and make the event more practical by introducing live racing.


Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of viewing the race live on the tv or by going in the occasions. Currently, the fans choice is towards seeing the race at home on tv rather than going, as the customer experience at NASCAR tracks is not beneficial 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 sector has terrific possible for NASCAR as the population was growing at a greater rate and it was expected to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are likewise one of the prospective target audience sector for NASCAR, as they are more linked socially than other groups. Producing fan base amongst kids can provide a potential boost in the number of fans for racing due to their connectivity. Kids invest most of their times in playing and utilizing smartphones video games. Car racing video games established by Sime Darby Berhad B The Asian Crisis Begins Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. However, NASCAR's digital features connected to kids are not capable of gaining the attention. NASCAR requires more attention towards customizing and improving its digital functions to bring in the kids target audience.

This substantial expense makes the section potential for NASCAR marketing method of increasing its fan base. The market segment thinks about NASCAR as a company doing not have in developing a multiculturalism atmosphere. NASCAR must take different steps to enhance the experience of Generation Y consumers in its events.

5 C's of Marketing

5 C's of marketing assists in taking choices regarding marketing.


It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, environmental and legal and is mentioned above.


Sime Darby Berhad B The Asian Crisis Begins Case Study Help is a vehicle racing business with having USP of high quality auto racing with a global structure. Its sector is sports group and occasions.


Collaborations consists of suppliers, suppliers and alliances of NASCAR. NASCAR utilized 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 customer of Sime Darby Berhad B The Asian Crisis Begins Case Study Help are its viewers. They target clients with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and create generational loyalty.


The direct rivals of NASCAR are Formula 1 and Moto GP. Groups usually represents sponsors in NASCAR and the medium of advertising is motorists. Therefore it can be stated that motorists and race cars and trucks are rivals. If they got much better chance in terms of prizes and television exposure, these chauffeurs can go versus NASCAR.

Marketing Techniques.

1. Establishing and Maintaining Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population segment of USA however sadly NASCAR had actually been unable to draw in the this targeted segment. It needs to develop a Facebook page consisting of the details relating to the races and the areas of tracks to make the consumer helpful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Secret Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Display). The major factor behind it is that, the racers mostly play in groups and are unable 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 a crucial factor for attracting audiences towards tracks and towards television. The star power for the motorists at NASCARA could be improved by developing and updating accounts of key drivers by NASCARA itself. This would remove the requirement of requiring drivers to maintain their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Establishing New Games and improving current games for kids.
In order to attract these kids, NASCARA must improve its present racing games by introducing customization in the vehicles i.e. altering colours, selection of speed, presenting group racing in the game, using much better graphics related to the racing tracks and presenting numerous levels in the game. All these adjustments in the existing video game would offer better experience to kids.
Along with it, NASCAR must also build new video games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing in between numerous cartoon characters with a choice of picking the preferred animation character for the kids. These strategies would allow the business to draw in among its possible target segments.
4. Presenting multiculturalism at occasions.
NASCAR occasions are comprised of fans with very couple of cultural variety, due to cost of arrival in events, making it unattractive for the clients perceiving sport occasions as social events i.e. Generation Y consumers. As the Generation Y clients are a potential target market for NASCAR, for that reason the company must take certain procedures to attract this prospective target market.
5. Improving Customer Experience at Tracks.
Sime Darby Berhad B The Asian Crisis Begins Case Study Help ought to deal with facilities and facilities at tracks due to the fact that on the race day viewers got dissatisfied. Audiences have lots of expectations from NASCAR since in very same market other companies are providing much better services than NASCAR. Then its fans may moved to its rivals, if NASCAR do not work on this issue. According to fans there were not sufficient centers were readily available as compare to other sports service providers. So NASCAR ought to ensure that it provide adequate facilities that consists of cleaned up toilets, comfy seating plan. They need to also supply WIFI services and availability of charge card throughout that track. It needs to be also ensure that there suffice jumbo turns positioned at all required places. There must be also food stalls that offer quality food to viewers. In this method audiences will be having pleasant experience at the day of event. (See Appendix B).

Marketing Budget

Marketing budget plan made on the basis of the above strategies for the period of 5 years from 2011 to 2015, shows the cost related information for the marketing strategies. It can be seen that technique 5 of improving customer experience at tracks would require greatest preliminary investment and cost and strategy 4 of presenting multiculturalism will require most affordable initial financial investment with least expensive further per year cost.
KEEP IN MIND: The values about cost are assumed on logical basis due the lack of realities and figures connected 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 Sime Darby Berhad B The Asian Crisis Begins Case Study Analysis causing the decline of tv viewership rate and attendance rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long run. These methods would handle internal aspects like poor consumer experience at tracks, inadequate social networks marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, along with with external factors like moving of fans towards other sports, demographical changes in America and altering domesticity styles.