Strategic Planning At Sun Life Case Study Solution & Analysis
NASCAR (National Association for Stock Automobile Auto Racing) is an organization performing series of Stock Vehicle racing in United States and acting as an approving body for driving the rules for Stock Car Racing. 2) Stock Automobile Racing by NASCAR is the second largest viewer sport, with greatest number of sponsors. 1) The other sources of earnings for Strategic Planning At Sun Life Case Study Solution consists of; 10% of the overall income 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 approach. This non collective technique brings tensions in the sport. The structure of Car of Tomorrow by Strategic Planning At Sun Life Case Study Solution, with an intent of security for the motorists, brought various tensions amongst the stakeholders of the sport.
The communication audit, carried out in 2010, exposed that despite the reality that the business extremely rely on the interactions between its stakeholders, there was no identifiable business interaction technique. (
The audit pointed out different doing not have of NASCAR in terms of lack of internal integration, lack of fan management technique and absence of digital and social media of marketing.
Strategic Planning At Sun Life Case Study Help viewers was highly devoted to the sport and the brand names related to the NASCAR, making it appealing for sponsors and business online marketers.
The company is presently dealing with the issue of declining rates of attendance at racing tracks and rates of television viewers. This can put a considerable impact on its incomes from sponsors, media rights, and from other sources of revenue.
The business was rather effective till 2005 with its conventional marketing methods, however soon after 2005 the company begins facing different issues consisting of decrease of its fan base. Numerous external in addition to internal factors are accountable for the decline. Internal aspects consist of; insufficient 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 create generational commitment. The family system in America was altering resulting in reduction of impact of married male fan base over their children. Together with it perceptions about vehicle was also altering with viewing cars and truck a car to reach at point B from point A, instead of as a fun job. Other obstacles for Strategic Planning At Sun Life Case Study Solution consists of the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc. These all difficulties were tending the company to revise its marketing techniques.
In SWOT analysis, strengths defined as company's qualities which are different from its competitors. These are business's core competencies on which company performance or business success based on. Strategic Planning At Sun Life Case Study Analysis core competencies includes it has rights of determining rules as approving body. Regulations and guidelines concerning professional stock automobile racing are dictated by NASCAR like if any team with required skills and resources can participate in races by following rules and guidelines determined by NASCAR. So NASCAR has monopoly it this element. 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 utilized to broadcast in more than 150 countries worldwide with more than $56 million incomes. The main sources of their incomes come from tv rights, approving fees, 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 also large resource of fans and business sponsors. Because of most significant brand name commitment of fans toward brands advertised by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses in SWOT Analysis are considered as external elements. Weak points consists of the factors that stops company to perform at required level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist approach. They generally used to form rules and other required procedures without intervention of others which leads to bad partnership. For example 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 effective strategy for organisation interaction. If it took place off track, they don't understand how to manage concern. Inadequate company interaction leads to that they don't have clear instructions for their long term goals. They do not understand that where they want to see this sport in future.
NASCAR normally utilized to rely on conventional media sources like regional newspaper for publicity of its sports. NASCAR also came to know from these conventional media outlets that sport was difficult to cover. When sports fans were asked regarding popular stars and stars then NASCAR driver was not found even in top twenty responses.
Risks in SWOT analysis are defined as external factors that can threat to company's success. Due to the fact that 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 threat for NASCAR. Earning of individuals would be effected and they would be more mindful in spending their cash. Economic down turn likewise results in boost fuel costs which likewise impacted NASCAR. Because fans of NASCAR used to attend its event from long distances. NESCAR had a rule of 65/25/10 for revenue distribution. 65 percent profits from media rights would be distributed to race tracks, 25 percent earnings would be dispersed to contending team and remaining 10 percent would be kept by NESCAR which is sanctioning body. Contending team wished to increase their part of profits from 25 percent due to the fact that of increase in running cost of a race team and also there is decrease in the variety of full-season sponsorship. Because they are making huge financial investments to enhance experience of fans, nescar likewise faces threats from other sponsors. For instance that includes updating existing opportunities, constructing new avenues, offering Wi-Fi facility and likewise offering other interactive mediums to connect sports on mobile phones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and develop generational loyalty. So the difficulty is that the household system in America was changing leading to decrease of impact of married male fan base over their youngsters. Together with it understandings about cars and truck was also altering with perceiving car a lorry to reach at point B from point A, instead of as an enjoyable job. If NASCAR make significant investments in new segments which are based on new customers then it might deal with unfavorable remarks from its core fan base, now.
Porter's 5 Forces Analysis
It is crucial to comprehend industry in which business is working because NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are used to recognize profitability, strength and beauty of NASCAR organisation.
These motorists can go versus NASCAR if they got much better chance in terms of prizes and television direct exposure. If viewers enjoy other race cars and trucks and drivers more than NASCAR then viewers can shift to those other interesting vehicles and motorists. NASCAR could be having risk from its 2 direct rivals that is Solution 1 and Moto GP.
The provider power indicates the variety of providers are readily available in industry and what is the cost associated with supplier if business shifts from one provider to another. In this industry there is supply monopoly because chauffeurs with required resources and skills are restricted.
In the case of NASCAR customers are its viewers. Audiences can switch to other rivals easily due to the fact that audiences will having low switching cost.
Threat of Alternative
Replacements are referred as alternatives. The replacements in this case can be other home entertainment implies like viewers can move to other sports. So there are large range of substitutes are available in this scenario which suggests that danger of substitute is high.
Danger of New Entry
It is defined as how it is easy for any company to go into in that particular market. When it comes to Strategic Planning At Sun Life Case Study Solution hazard of brand-new entry is low. Due to the fact that if any business needs to enter in this business than they have to make heavy financial investments. They require to construct automobiles and racing tracks and also requires to pay hefty amount to motorists for switching.
It can not be concluded from case research study that there would be modification in resource allotments. NASCAR had actually got benefit from lower taxation policies which leads to increasing in profits. They made heavy financial investments in the research study and development. As NASCAR is operating in different markets so it needs to deal with different policies. It is also kept in mind that Strategic Planning At Sun Life Case Study Analysis has actually dealt with increased analysis relating to regulatory. Every federal government has various concern so NASCAR needs to be prepared for it as top priority can be moved to other sector.
Economic elements consists of taxation rate, exchange rate, economic efficiency of that specific business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be impacted if there is government intervention in the marketing and sales sector. NASCAR can take advantage of abilities of workers to develop new chances and improve existing opportunities.
Each has different social values and standards. It assists in understanding regarding society and preference of consumers.
In this case of NASCAR it can be kept in mind that business are greatly spending for research study and development. NASCAR should also work on its media rights policy with Turner Broadcasting System.
Legal plays a crucial role in every country since every country has various legal terms. Strategic Planning At Sun Life Case Study Help requires to be make sure that they secure their legal rights in every county so any business does not hurt to its legal rights.
Ecological factors are also crucial for every organisation. NASCAR needs to make sure that its cars and trucks are not generating pollution more than acceptable level.
7 P's of Marketing
The products of Strategic Planning At Sun Life Case Study Help in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates strategy of NASCAR for its race events tickets is based upon the venue and value of the racing occasions. Together with race occasions tickets, NASCAR also charge various service charge to its stakeholders and makes earnings. It charged sanctioning charges of $1-2 million per race on average in 2005.
Marketing technique of Strategic Planning At Sun Life Case Study Analysis 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. Nevertheless, the company is not completely relied upon its fan base for its promo and promote through regional radio stations too. The business has actually likewise embraced the merchandising media of promo, in which the company sells products with its logo design.
NASCAR have its racing tracks in numerous 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 tries to conduct its races in most of the cities in United States to understand across the country popularity.
Nestle individuals strategy is consisted of offering much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important aspect of Strategic Planning At Sun Life Case Study Solution A marketing strategy as its events are the source of home entertainment for crowd. Its people method consists of efforts to provide much better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under individuals technique of NASCAR.
Numerous service processes are needed to perform racing occasions in an effective way. These processes consist of; proper schedule of time, plan for viewers, offering tickets, arrangement of area for sponsors, handling logistics etc. These all processes contribute I developing NASCAR image, enhancing spectators experience and increasing fan base.
Essential physical evidences for the NASCAR includes the presence of its racing tracks, stock vehicles and racing occasions. Along with it, its merchandising brand names including tee shirts, caps, goodies etc., likewise serve as a physical proof for NASCAR.
Product Life Cycle Evaluation.
The racing occasions by NASCAR was presented on June 19, 1949. At the first phase competition for NASCAR was low, as the rivals drove the cars and trucks comparable to the cars and trucks driven by regular individuals.
After conducting its very first race effectively the business moved towards building its own tracks. The first Strategic Planning At Sun Life Case Study Solution based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment 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 event 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 period of lucrative sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the business having vast array of revenue sources. The business has about 500 sponsors with relaying its occasions in about 150 countries. The company has a great deal of tracks in the majority of the cities of United States.
The decline in the business's offerings started after 2005 with average presence rate per race declined by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The significant causes of decline consist of the monetary crisis of 2008, which increased the expense of getting to tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.
The market segmentation of Strategic Planning At Sun Life Case Study Solution can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Strategic Planning At Sun Life Case Help is based upon the geographical presence of its tracks in different states and cities in United States, and the television broadcasting of its events in various nations. 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 large geographical division provides the business local as well as international fan base.
The market segmentation of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its existing fan base is majorly comprised of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the demographic segment of its market NASCAR need to modify its marketing techniques to attract more age and lower its costs to go into in the marketplace sector with a low average income.( htt1).
NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to buy tickets and see the races once in a week. NASCAR has attempted to increase the quality of its racing by presenting phase racing, they likewise have actually tried to lower rates and make the occasion more practical by introducing live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the tv or by going in the occasions. Currently, the fans preference is towards enjoying the race at house on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as expensive.
One of the prospective target audience of Strategic Planning At Sun Life Case Study Solution was Hispanics; the young and growing population of United States. The market segment has fantastic prospective 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. The section shows affinity with vehicle culture, but need a more concentrated marketing towards welcoming the sector towards racing.
Kids are likewise one of the potential target market sector for NASCAR, as they are more connected socially than other groups. Creating fan base among kids can offer a prospective increase in the number of fans for racing due to their connectivity. Kids invest most of their times in playing and utilizing mobile phones video games. Automobile racing video games developed by Strategic Planning At Sun Life Case Study Solution can be a possible source of acquiring attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of getting the attention. NASCAR requires more attention towards customizing and enhancing its digital functions to bring in the kids target market.
Generation Y target audience consists of those who invested five times more resources on discretionary expenses i.e. purchasing tickets for racing occasions, than others. This substantial expenditure makes the sector capacity for NASCAR marketing method of increasing its fan base. The marketplace sector is also simple to method as 81% of the Y Generation consumer utilizes Facebook the usage and every day is two times of utilizing tv and radio. The market section views sports as a social occasion, instead of adherence to sport. The market segment considers NASCAR as an organization lacking in developing a multiculturalism atmosphere. Strategic Planning At Sun Life Case Study Help ought to take different actions to enhance the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing assists in taking decisions relating to marketing. These 5 C's requirements to be analysed effectively for taking any marketing choice. These 5 C's represent Environment, Company, Collaborators, Rivals and consumers.
It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, ecological and legal and is specified above.
Strategic Planning At Sun Life Case Study Help is a vehicle racing business with having USP of high quality vehicle racing with an international structure. Its sector is sports group and occasions.
Collaborations includes distributors, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application.
The customer of Strategic Planning At Sun Life Case Study Analysis are its audiences. 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 youngsters and produce generational commitment.
The direct rivals of NASCAR are Formula 1 and Moto GP. Teams typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. It can be stated that drivers and race cars and trucks are rivals. If they got better opportunity in terms of prizes and television exposure, these drivers can go against NASCAR.
1. Preserving and establishing Facebook Page.
Among the possible target audience sections for NASCAR is Hispanics which is the growing population segment of USA but sadly NASCAR had actually been unable to bring in the this targeted sector. In order to bring in the young growing generation the NASCAR must market by utilizing social media like Facebook. It must establish a Facebook page containing the information regarding the races and the areas of tracks to make the customer useful about the core operations of Strategic Planning At Sun Life Case Study Analysis. It must likewise update its Facebook page on everyday basis to offer details about its upcoming events. This would make the target market sector more helpful about the business and would result in bring in large fans base.
2. Developing and Updating Accounts of Secret Drivers.
Strategic Planning At Sun Life Case Study Solution motorists has a low star power as compare to gamers of other sports. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is a crucial element for bring in viewers towards tracks and towards television.
3. Developing New Games and enhancing present games for kids.
In order to draw in these kids, NASCARA ought to enhance its present racing games by presenting personalization in the vehicles i.e. changing colours, selection of speed, presenting group racing in the game, using much better graphics related to the racing tracks and introducing various levels in the game. All these modifications in the existing game would supply better experience to kids.
In addition to it, NASCAR ought to also develop new games related to racing like kids racing with kids characters as motorists, animation racing with racing in between different cartoon characters with an option of choosing the favourite cartoon character for the kids. These methods would allow the business to draw in among its possible target sectors.
4. Introducing multiculturalism at occasions.
Strategic Planning At Sun Life Case Study Solution occasions are comprised of fans with really couple of cultural diversity, due to expense of arrival in occasions, making it unsightly for the customers perceiving sport occasions as affairs i.e. Generation Y consumers. As the Generation Y clients are a potential target audience for NASCAR, therefore the business must take specific steps to attract this potential target audience. It must adopt strategies to attract the customers far from the tracks location with various culture. The method to do so might be offering unique discounts on tickets or complimentary tickets to viewers coming from a particular range or from another state. It would increase cultural diversity of the fans and would make Generation Y customers more satisfied.
5. Improving Consumer Experience at Tracks.
NASCAR ought to work on infrastructure and facilities at tracks because on the race day viewers got dissatisfied. Audiences have lots of expectations from Strategic Planning At Sun Life Case Study Analysis because in same industry other business are offering better services than NASCAR. IF NASCAR do not work on this problem then its fans might shifted to its rivals.
Marketing Spending plan
Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the expense related data for the marketing strategies. It can be seen that strategy 5 of improving client experience at tracks would need greatest initial financial investment and cost and strategy 4 of introducing multiculturalism will need least expensive initial investment with least expensive further per year cost.
KEEP IN MIND: The worths about expense are assumed on logical basis due the absence of truths and figures associated with 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 Strategic Planning At Sun Life Case Study Help triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long term. These strategies would manage internal factors like poor client experience at tracks, insufficient social media marketing, incapable digital medias like games, lack of culturalisms at tracks and so on, in addition to with external aspects like moving of fans towards other sports, demographical modifications in America and changing family life styles.