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Six Sigma Fx Cascade Case Study Solution & Analysis


Introduction

NASCAR (National Association for Stock Car Vehicle Racing) is a company carrying out series of Stock Car racing in United States and acting as a sanctioning body for driving the guidelines for Stock Car Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd largest spectator sport, with highest number of sponsors. 1) The other sources of profits for Six Sigma Fx Cascade Case Study Solution consists of; 10% of the overall income from television rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand name to business.

NASCAR has a closed corporate culture with the non-interventionist technique. The structure of Cars and truck of Tomorrow by NASCAR, with an intent of security for the drivers, brought different tensions amongst the stakeholders of the sport.

The communication audit, performed in 2010, exposed that despite the reality that the business extremely depend on the communications in between its stakeholders, there was no identifiable business interaction method. The industry's target clients, direction and goals were all unknown.

The audit mentioned different doing not have of NASCAR in regards to absence of internal integration, absence of fan management method and absence of social and digital media of marketing. The company has intricate community with independent tracks, teams and motorists. This structure with closed business culture bring different difficulties in speeding up a modification. Other partners in environment includes the media networks i.e. tv and radio, and corporate online marketers.

Six Sigma Fx Cascade Case Study Solution viewers was extremely devoted to the sport and the brands related to the NASCAR, making it appealing for sponsors and business marketers.

Problem Statement.

The business is currently dealing with the issue of decreasing rates of participation at racing tracks and rates of tv viewers. This can put a substantial effect on its earnings from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The company was quite effective till 2005 with its standard marketing techniques, however quickly after 2005 the company starts dealing with various issues including decrease of its fan base. Numerous external in addition to internal aspects are accountable for the decline. Internal elements consist of; insufficient investment in social networks and other digital medias of.

Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and develop generational commitment. Other difficulties 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.

SWOT Analysis.

Strengths.


In SWOT analysis, strengths defined as company's qualities which are different from its competitors. These are company's core proficiencies on which business performance or company success based on. Six Sigma Fx Cascade Case Study Help core proficiencies includes it has rights of determining guidelines as approving body. Guidelines and regulations regarding professional stock vehicle racing are determined by NASCAR like if any group with needed abilities and resources can participate in races by following guidelines and regulations determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise includes that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were used to relay in more than 150 nations around the world with more than $56 million profits. The primary sources of their profits come from television rights, approving charges, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and business sponsors. Due to the fact that of most significant brand name commitment of fans towards brand names advertised by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).

Weaknesses.

Weaknesses of NASCAR includes its close culture which is non collaborative. Six Sigma Fx Cascade Case Study Solution establishes Automobile of Tomorrow without collaboration so result is that motorists did not like that idea. It was likewise discovered that NASCAR had no reliable strategy for business interaction.

Opportunities.

Opportunities in SWOT analysis are external factors which can be favourable to business or the external elements on which business is having competitive advantage. NASCAR normally utilized to depend on conventional media sources like local newspaper for publicity of its sports. Usually these traditional media sources try to cover their home team and particular kind of occasions. NASCAR likewise came to know from these traditional media outlets that sport was hard to cover. Media landscape also altered from standard to digital landscape. Papers went out of business. NASCAR can deal with its capabilities to get maximum possible take advantage of this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR utilized to make money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. For example Six Sigma Fx Cascade Case Study Analysis had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot during race at track. If media sources like papers, magazines and cable television channels want to publish videos of races on their respective pages then they are needed to pay licensing charges to Turner Sport. NASCAR can work on terms and conditions and attempt to negotiate with Turner Sports to get maximum advantages of it. Star power plays very crucial role in producing revenues from every sport. However it was kept in mind that Six Sigma Fx Cascade Case Study Help is lagging in this location i.e. star power. For example when sports fans were asked regarding popular stars and stars then NASCAR driver was not discovered even in top twenty reactions. NASCAR can put efforts in this area too for income generation. They should guide their motorists that how they can become sport stars. Four strategic focuses which are generated by research group can also be acted as opportunity for NESCAR. These four tactical focuses compares and analysis Six Sigma Fx Cascade Case Study Analysis techniques.

Risks

Risks in SWOT analysis are defined as external elements that can risk to business's success. Because if there is economic down turn then individuals would be having less return on investment, Economic down turn was experienced in late 2000 which can be risk for NASCAR. Earning of people would be effected and they would be more mindful in investing their money. Economic down turn likewise leads to increase fuel rates which also impacted NASCAR. Since fans of NASCAR utilized to attend its occasion from cross countries. NESCAR had a rule of 65/25/10 for revenue circulation. 65 percent revenues from media rights would be distributed to race course, 25 percent income would be distributed to completing team and remaining 10 percent would be retained by NESCAR which is sanctioning body. Completing team wanted to increase their part of profits from 25 percent because of boost in running expense of a race group and also there is decrease in the variety of full-season sponsorship. Since they are making enormous investments to improve experience of fans, nescar likewise faces threats from other sponsors. For instance which includes updating existing opportunities, building brand-new avenues, providing Wi-Fi facility and likewise providing other interactive mediums to communicate sports on smartphones. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational loyalty. So the obstacle is that the family system in America was changing resulting in reduction of impact of married male fan base over their children. Along with it perceptions about cars and truck was also altering with perceiving cars and truck a lorry to reach at point B from point A, rather than as a fun job. Now if Six Sigma Fx Cascade Case Study Solution make considerable investments in new sections which are based on new clients then it may face negative comments from its core fan base.

Porter's 5 Forces Analysis

It is essential to comprehend industry in which business is working since NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are used to identify success, intensity and attractiveness of NASCAR service.

Competitive Rivalry

This force indicates ability of rivals. Groups generally represents sponsors in NASCAR and the medium of marketing is motorists. It can be stated that chauffeurs and race automobiles are competitors. If they got much better chance in terms of rewards and television direct exposure, these motorists can go versus Six Sigma Fx Cascade Case Study Solution. Then viewers can shift to those other fascinating automobiles and chauffeurs, if viewers take pleasure in other race automobiles and chauffeurs more than NASCAR. NASCAR might be having threat from its two direct competitors that is Solution 1 and Moto GP. They need to produce competitive benefits for motorists so they do not move to other competitors.

Provider Power

The provider power shows the variety of providers are offered in industry and what is the cost related to supplier if company shifts from one provider to another. In this industry there is supply monopoly because drivers with required resources and skills are restricted.

Buyer Power

This force is concerning to clients that is it easy for clients to move to other items. If there is more switching cost is associated then consumers are less most likely to switch. When it comes to NASCAR clients are its audiences. Due to the fact that audiences will having low switching expense, audiences can switch to other rivals quickly.

Hazard of Replacement

Substitutes are referred as alternatives. The alternatives in this case can be other home entertainment suggests like viewers can shift to other sports. So there are wide variety of substitutes are available in this situation which recommends that risk of alternative is high.

Threat of New Entry

It is defined as how it is easy for any company to enter in that specific market. When it comes to Six Sigma Fx Cascade Case Study Solution threat of brand-new entry is low. If any business needs to enter in this service than they have to make heavy financial investments, due to the fact that. They need to develop vehicles and racing tracks and also requires to pay substantial total up to motorists for changing.

PESTEL Analysis

Political


As NASCAR is working in numerous markets so it needs to deal with various regulations. It is likewise noted that NASCAR has actually faced increased scrutiny concerning regulative. Every federal government has different top priority so NASCAR has to be prepared for it as concern can be shifted to other sector.

Cost-effective

Economic elements includes taxation rate, exchange rate, financial efficiency of that particular business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be impacted if there is government intervention in the marketing and sales sector. NASCAR can utilize abilities of employees to create brand-new chances and improve existing opportunities.

Social

Every society is different from each other. Each has various social worths and norms. It assists in understanding regarding society and choice of customers. Social factors includes traditions, culture, mindsets towards particular product and services, demographics, norms, interests etc. It can be concluded that marketing through other means rather than standard (i.e. newspaper) can be preferred in this society.

Technical

Innovation has effect on practically every business. It includes innovation in company method. In this case of Six Sigma Fx Cascade Case Study Help it can be kept in mind that companies are heavily spending for research study and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.

Legal

Legal plays an important role in every country since every country has various legal terms and conditions. Six Sigma Fx Cascade Case Study Help requires to be ensure that they secure their legal rights in every county so any business does not harm to its legal rights.

Environmental

Ecological factors are also crucial for each organisation. Since usually governments don't enable those service which can damage to environment. These ecological factors includes laws relating to contamination, climate change, safe waste disposal, policies relating to insurance etc. NASCAR needs to make certain that its cars and trucks are not producing contamination more than appropriate level.

7 P's of Marketing

Item

The items of Six Sigma Fx Cascade Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).

Rate.

Rates method of NASCAR for its race events tickets is based upon the venue and value of the racing events. Together with race events tickets, NASCAR also charge numerous service charge to its stakeholders and earns earnings. For instance it charged approving charges of $1-2 million per race usually in 2005.

Promo.

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 viewers for NASCAR races.

Location.

NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in the majority of the cities in United States to grasp across the country popularity.

Individuals.

Nestle people strategy is comprised of offering better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an essential aspect of Six Sigma Fx Cascade Case Study Analysis A marketing strategy as its occasions are the source of home entertainment for crowd. Its people technique includes efforts to offer better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under people method of NASCAR.

Processes.

A number of company procedures are required to perform racing events in an effective method. These processes consist of; proper schedule of time, arrangement for spectators, offering tickets, plan of area for sponsors, handling logistics and so on. These all processes contribute I constructing NASCAR image, enhancing spectators experience and increasing fan base.

Physical Evidence.

Crucial physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and racing events. Together with it, its merchandising brands including tee shirts, caps, goodies etc., likewise act as a physical proof for NASCAR.

Product Life Cycle Assessment.

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

Growth.

After performing its first race successfully the company moved towards developing its own tracks. The first Six Sigma Fx Cascade Case Study Help based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by facility of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the business moved towards relaying 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 decades, he transformed NASCAR from a regional Sport popular company into one with worldwide fan base. He initiated a brand-new period of profitable sponsorships and television contracts for NASCAR.

Maturity.

The maturity period for NASCAR began with the efforts of William France Jr., with the business having wide variety of revenue sources. The business has about 500 sponsors with relaying its occasions in about 150 nations. The company has large number of tracks in most of the cities of United States.

Decrease.

The decrease in the business's offerings started after 2005 with average participation rate per race declined by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The significant causes of decline consist of the financial crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.

Market Segmentation.

The market segmentation of Six Sigma Fx Cascade Case Study Analysis can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographic.

The geographical division of Six Sigma Fx Cascade Case Analysis is based upon the geographical existence of its tracks in various states and cities in United States, and the television broadcasting of its occasions in numerous 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 provides the business regional in addition to global fan base.

Market.

The group division of Six Sigma Fx Cascade Case Study Help is likewise highlydiverse based upon the gender, earnings and age of the customer. To increase the demographic sector of its market NASCAR ought to modify its marketing strategies to attract more age groups and lower its costs to go into in the market section with a low average earnings.

Psychographic.

The mental qualities of most of the fans are quite comparable. NASCAR has a fan base with a commitment. 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 desire quality racing with low price at convenient place. NASCAR has tried to increase the quality of its racing by presenting stage racing, they also have actually attempted to lower costs and make the occasion more practical by introducing live racing.

Behavioural.

Behavioural segmentation of Six Sigma Fx Cascade Case Study Help is based upon the behaviour of fans in regards to enjoying the race live on the television or by going in the events. Currently, the fans choice is towards enjoying the race at home on tv rather than going, as the customer experience at NASCAR tracks is not beneficial as well as costly. This choice makes the rates for presence lower than the rates for television audiences. NASCAR needs to change the behaviour of its fan base by introducing qualitative services at its tracks.

Target Market.

Hispanics.

One of the prospective target market of Six Sigma Fx Cascade Case Study Help was Hispanics; the young and growing population of United States. The market section has fantastic possible for NASCAR as the population was growing at a greater rate and it was expected to become thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. The segment reveals affinity with cars and truck culture, however require a more concentrated marketing towards inviting the section towards racing.

Kids.

Kids are also among the potential target market segment for NASCAR, as they are more linked socially than other groups. Producing fan base among kids can supply a possible increase in the variety of fans for racing due to their connectivity. Kids spend the majority of their times in playing and utilizing smart devices computer game. Car racing games established by Six Sigma Fx Cascade Case Study Help can be a potential source of getting attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of getting the attention. NASCAR requires more attention towards personalizing and enhancing its digital functions to attract the kids target market.

Generation Y.
Generation Y target market consists of those who spent 5 times more resources on discretionary expenses i.e. buying tickets for racing occasions, than others. This big expense makes the section potential for NASCAR marketing method of increasing its fan base. The market section is also simple to approach as 81% of the Y Generation consumer uses Facebook the use and every day is two times of utilizing tv and radio. The market sector views sports as a get-together, instead of adherence to sport. The market sector thinks about NASCAR as an organization doing not have in developing a multiculturalism atmosphere. Six Sigma Fx Cascade Case Study Analysis needs to 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.

Climate/Context.

It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, environmental and legal and is stated above.

Company.

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 market is males in the age of 15-60 years. Business has closed corporate culture and having non-interventionist approach.

Partnerships.

Collaborations consists of distributors, providers and alliances of Six Sigma Fx Cascade Case Study Help. It is collaborated with different racing teams which are taking part in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR used to get pay check of around $15 million each year from Turner Sports. There are number of cons behind this deal. For instance NASCAR had to get approval from Turner Sport if it wish to develop its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of each and every single video which is shoot throughout race at track.

Clients.

The consumer of Six Sigma Fx Cascade Case Study Analysis are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational loyalty.

Rivals.

Teams typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. These chauffeurs can go versus NASCAR if they got much better chance in terms of prizes and television direct exposure.

Marketing Techniques.

1. Preserving and developing Facebook Page.
Among the prospective target audience segments for NASCAR is Hispanics which is the growing population segment of USA but sadly NASCAR had been unable to attract the this targeted section. In order to draw in the young growing generation the NASCAR ought to market by utilizing social networks like Facebook. It must establish a Facebook page consisting of the info concerning the races and the locations of tracks to make the customer useful about the core operations of Six Sigma Fx Cascade Case Study Solution. It should also update its Facebook page on daily basis to supply details about its approaching occasions. This would make the target audience segment more useful about business and would result in attracting large fans base.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibit). The significant factor behind it is that, the racers mostly play in teams and are not able to develop an essential account and keep a close contact with fans. The poor contacts with fans lead to less destination of audiences towards the racers and a low star power. Star power is a crucial element for drawing in viewers towards tracks and towards television. The star power for the chauffeurs at NASCARA might be enhanced by creating and updating accounts of key motorists by NASCARA itself. This would remove the requirement of forcing motorists to keep their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Establishing New Games and improving current games for kids.
Kids spent the majority of their time on playing video games and utilizing mobile phones. Unfortunately, kids playing NASCARA have a worst experience of playing its games. As a result, they are less drawn in towards the sport. In order to attract these kids, NASCARA should improve its current racing games by presenting modification in the automobiles i.e. altering colours, selection of speed, presenting group racing in the game, utilizing better graphics connected to the racing tracks and introducing various levels in the video game. All these modifications in the existing video game would supply better experience to kids.
In addition to it, NASCAR ought to also develop brand-new video games connected to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between numerous animation characters with a choice of choosing the favourite animation character for the kids. These methods would make it possible for the business to attract among its possible target sectors.
4. Presenting multiculturalism at occasions.
NASCAR occasions are comprised of fans with really few cultural variety, due to expense of arrival in events, making it unsightly for the clients perceiving sport occasions as social occasions i.e. Generation Y consumers. As the Generation Y consumers are a prospective target market for NASCAR, therefore the company needs to take certain procedures to attract this prospective target market.
5. Improving Customer Experience at Tracks.
NASCAR ought to work on facilities and facilities at tracks because on the race day audiences got disappointed. Viewers have many expectations from Six Sigma Fx Cascade Case Study Analysis since in very same industry other business are supplying better services than NASCAR. IF NASCAR don't work on this issue then its fans may moved to its competitors.
Marketing Budget.
Marketing budget plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, reveals the expense related information for the marketing methods. It can be seen that method 5 of enhancing client experience at tracks would need greatest preliminary financial investment and cost and technique 4 of presenting multiculturalism will require least expensive initial financial investment with least expensive further per year cost.
NOTE: The worths about cost are assumed on rational basis due the lack of figures and realities associated with cost in the case study. Inflation rate of United States is assumed to be 10%.

Suggestions.

On the basis of deep analysis of the external and internal aspects of Six Sigma Fx Cascade Case Study Analysis causing the decrease of television viewership rate and participation rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long term. These methods would handle internal factors like bad client experience at tracks, insufficient social media marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, in addition to with external elements like shifting of fans towards other sports, demographical changes in America and altering family life styles.

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