Strategic Planning At Sun Life Case Study Solution and Analysis
Strategic Planning At Sun Life Case Study Analysis (National Association for Stock Vehicle Car Racing) is a company conducting series of Stock Vehicle racing in United States and serving as a sanctioning body for driving the rules for Stock Cars and truck Racing. The organization was founded in 1947, by "Huge Bill" France. NASCAR organize Stock Cars and truck Racing events in United States with the presence of about 130000 audiences usually in 2005. It likewise relayed its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the second largest spectator sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its earnings. The other sources of revenue for Strategic Planning At Sun Life Case Study Solution includes; 10% of the overall revenue from television rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. The building of Automobile of Tomorrow by NASCAR, with an intent of safety for the chauffeurs, brought various stress amongst the stakeholders of the sport.
The interaction audit, conducted in 2010, exposed that in spite of the reality that business extremely count on the interactions in between its stakeholders, there was no identifiable company communication technique. The industry's target consumers, instructions and goals were all unidentified.
The audit pointed out different doing not have of NASCAR in regards to lack of internal integration, lack of fan management strategy and lack of digital and social media of marketing. The company has intricate environment with independent tracks, chauffeurs and groups. This structure with closed business culture bring various difficulties in accelerating a modification. Other partners in ecosystem consists of the media networks i.e. tv and radio, and corporate marketers.
Strategic Planning At Sun Life Case Study Solution audiences was extremely faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business online marketers.
The business is presently dealing with the problem of declining rates of presence at racing tracks and rates of television audiences. This can put a significant effect on its revenues from sponsors, media rights, and from other sources of income.
Although the business was rather effective till 2005 with its traditional marketing techniques, however soon after 2005 the company starts facing various problems consisting of decline of its fan base. Several external along with internal factors are responsible for the decrease. Internal elements consist of; inadequate 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 loyalty. The household system in America was changing resulting in reduction of influence of married male fan base over their children. In addition to it perceptions about automobile was also changing with perceiving vehicle an automobile to reach at point B from point A, instead of as an enjoyable job. Other difficulties for Strategic Planning At Sun Life Case Study Analysis includes the shift of its fans to other sports as they were improving their fan's experience allowing access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, and so on. These all difficulties were tending the company to modify its marketing strategies.
In SWOT analysis, strengths specified as business's qualities which are different from its rivals. These are company's core competencies on which business efficiency or business success based on. Strategic Planning At Sun Life Case Study Solution core competencies includes it has rights of determining guidelines as sanctioning body. Policies and rules regarding expert stock car racing are dictated by NASCAR like if any team with needed abilities and resources can enter into races by following guidelines and regulations determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second biggest 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 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 big resource of fans and business sponsors. Because of biggest brand name loyalty of fans toward brands advertised by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weak points of NASCAR includes its close culture which is non collective. Strategic Planning At Sun Life Case Study Solution establishes Car of Tomorrow without partnership so result is that chauffeurs did not like that idea. It was likewise found that NASCAR had no effective technique for business communication.
NASCAR normally used to rely on traditional media sources like regional paper for promotion of its sports. NASCAR likewise came to understand from these conventional media outlets that sport was tough to cover. When sports fans were asked regarding popular celebs and stars then NASCAR motorist was not discovered even in top twenty actions.
Economic down turn was experienced in late 2000 which can be risk for NASCAR since if there is economic down turn then individuals would be having less return on investment. Economic down turn likewise results in increase fuel costs which likewise affected NASCAR. Now if NASCAR make significant financial investments in brand-new sections which are based on new customers then it might deal with negative remarks from its core fan base.
Porter's 5 Forces Analysis
It is crucial to understand industry in which company 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 success, intensity and attractiveness of NASCAR service.
This force indicates ability of rivals. Groups typically represents sponsors in NASCAR and the medium of marketing is chauffeurs. Therefore it can be stated that motorists and race cars are rivals. If they got much better chance in terms of prizes and television exposure, these motorists can go against Strategic Planning At Sun Life Case Study Solution. Then viewers can move to those other fascinating cars and motorists, if viewers delight in other race vehicles and chauffeurs more than NASCAR. NASCAR could be having risk from its 2 direct rivals that is Solution 1 and Moto GP. They need to develop competitive benefits for motorists so they do not move to other rivals.
The provider power indicates the number of suppliers are offered in industry and what is the cost related to provider if business shifts from one supplier to another. Since drivers with needed resources and abilities are limited, in this market there is supply monopoly.
This force is concerning to clients that is it easy for clients to move to other items. If there is more changing cost is associated then consumers are less likely to switch. In the case of NASCAR clients are its audiences. Because audiences will having low changing cost, audiences can change to other rivals easily.
Risk of Substitution
Alternatives are referred as alternatives. The replacements in this case can be other entertainment means like audiences can shift to other sports. There are large variety of substitutes are offered in this situation which recommends that threat of replacement is high.
Danger of New Entry
It is defined as how it is simple for any company to enter in that particular industry. In the case of Strategic Planning At Sun Life Case Study Analysis risk of new entry is low. If any company needs to go into in this organisation than they have to make heavy investments, because. They require to construct vehicles and racing tracks and also requires to pay large total up to chauffeurs for switching.
It can not be concluded from case study that there would be change in resource allotments. NASCAR had got take advantage of lower tax policies which leads to increasing in earnings. They made heavy investments in the research study and advancement. As NASCAR is working in different markets so it requires to deal with different policies. It is likewise kept in mind that Strategic Planning At Sun Life Case Study Help has dealt with increased scrutiny relating to regulative. Every federal government has different priority so NASCAR has to be prepared for it as top priority can be shifted to other sector.
Economic elements includes taxation rate, exchange rate, financial performance of that particular company, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can utilize abilities of employees to produce new opportunities and improve existing opportunities.
Each has various social values and standards. It helps in understanding relating to society and preference of consumers.
In this case of NASCAR it can be kept in mind that business are heavily investing for research and development. NASCAR should also work on its media rights policy with Turner Broadcasting System.
Due to the fact that every country has different legal terms and conditions, Legal plays an essential role in every country. Strategic Planning At Sun Life Case Study Help needs to be make sure that they secure their legal rights in every county so any business does not hurt to its legal rights.
Environmental factors are also essential for every company. NASCAR requires to make sure that its cars and trucks are not producing pollution more than acceptable level.
7 P's of Marketing
The items of Strategic Planning At Sun Life Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rates method of NASCAR for its race events tickets is based upon the location and value of the racing events. In addition to race occasions tickets, NASCAR likewise charge numerous service charge to its stakeholders and makes earnings. For example it charged sanctioning fees of $1-2 million per race on average in 2005.
Marketing technique of Strategic Planning At Sun Life Case Study Analysis is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races. Nevertheless, the business is not entirely trusted its fan base for its promo and promote through local radio stations too. The business has also embraced the retailing media of promo, in which the company sells merchandises 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 attempts to perform its races in the majority of the cities in United States to grasp across the country appeal.
Nestle individuals method is consisted of offering much better experience to its viewers, its fan base and to all of its stakeholders. People are a crucial aspect of Strategic Planning At Sun Life Case Study Help A marketing technique as its events are the source of entertainment for crowd. Its individuals 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 strategy of NASCAR.
Several business processes are required to perform racing events in an effective method. These processes consist of; correct schedule of time, plan for spectators, selling tickets, plan of area for sponsors, managing logistics etc. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.
Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock vehicles and racing occasions. Along with it, its retailing brand names consisting of tee shirts, caps, goodies and so on, also serve as a physical evidence for NASCAR.
Item Life Cycle Assessment.
The racing events by Strategic Planning At Sun Life Case Study Analysis was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first stage competition for NASCAR was low, as the rivals drove the cars and trucks comparable to the vehicles driven by ordinary people.
After conducting its very first race effectively the company moved towards constructing its own tracks. The very first Strategic Planning At Sun Life Case Study Solution based track, specifically the Darlington Raceway track, was initiated 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 broadcasting its races on television in 1979. The very first event broadcasted on television was flag-to-flag protection of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he changed NASCAR from a local Sport popular organization into one with worldwide fan base. He started a new period of financially rewarding sponsorships and tv contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the business having wide range of income sources. The business has about 500 sponsors with broadcasting its occasions in about 150 nations. The business has a great deal of tracks in the majority of the cities of United States.
The significant causes of decrease include the financial crisis of 2008, which increased the cost of getting here at tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.
The marketplace division of Strategic Planning At Sun Life Case Study Solution can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Strategic Planning At Sun Life Case Analysis 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 television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical segmentation supplies the company regional in addition to worldwide fan base.
The market segmentation of Strategic Planning At Sun Life Case Study Analysis is also highlydiverse based upon the gender, earnings and age of the customer. To increase the market sector of its market NASCAR ought to modify its marketing strategies to bring in more age groups and lower its rates to go into in the market sector with a low typical income.
NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to purchase tickets and see the races as soon as in a week. NASCAR has actually attempted to increase the quality of its racing by introducing stage racing, they also have tried to lower rates and make the occasion more practical by introducing live racing.
Behavioural segmentation of Strategic Planning At Sun Life Case Study Help is based upon the behaviour of fans in regards to enjoying the race live on the tv or by going in the events. Presently, the fans preference is towards watching the race in your home on television instead of going, as the customer experience at NASCAR tracks is not beneficial in addition to pricey. This choice makes the rates for participation lower than the rates for tv audiences. NASCAR needs to change the behaviour of its fan base by presenting qualitative services at its tracks.
One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has terrific prospective for NASCAR as the population was growing at a higher 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.
Kids are likewise one of the potential target market section for NASCAR, as they are more connected socially than other groups. Automobile racing games established by Strategic Planning At Sun Life Case Study Help can be a prospective source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and improving its digital functions to bring in the kids target market.
Generation Y target audience includes those who invested five times more resources on discretionary expenditures i.e. purchasing tickets for racing occasions, than others. This substantial expenditure makes the segment potential for NASCAR marketing strategy of increasing its fan base. The marketplace segment is also simple to method as 81% of the Y Generation customer utilizes Facebook every day and the usage is twice of using tv and radio. The market section views sports as a get-together, instead of adherence to sport. The marketplace sector considers NASCAR as an organization lacking in producing a multiculturalism atmosphere. Strategic Planning At Sun Life Case Study Solution needs to take various actions to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking choices regarding marketing.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE means political, financial, social, technical, ecological and legal and is mentioned above.
NASCAR is an auto racing business with having USP of high quality automobile racing with a global structure. Its sector is sports team and occasions. Its target market is males in the age group of 15-60 years. Company has actually closed business culture and having non-interventionist technique.
Collaborations includes distributors, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million every 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 consumer of Strategic Planning At Sun Life Case Study Help 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 youngsters and create generational loyalty.
Groups typically represents sponsors in NASCAR and the medium of advertising is motorists. These motorists can go versus NASCAR if they got much better opportunity in terms of rewards and tv exposure.
1. Maintaining and establishing Facebook Page.
One of the prospective target markets sections for NASCAR is Hispanics which is the growing population segment of USA but regrettably NASCAR had been not able to draw in the this targeted sector. It should establish a Facebook page containing the information regarding the races and the locations of tracks to make the consumer helpful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Key Drivers.
Strategic Planning At Sun Life Case Study Solution chauffeurs has a low star power as compare to gamers of other sports. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is an important aspect for drawing in viewers towards tracks and towards television.
3. Developing New Games and enhancing current games for kids.
Kids invested the majority of their time on playing games and using mobile phones. Sadly, kids playing NASCARA have a worst experience of playing its video games. As a result, they are less attracted towards the sport. In order to attract these kids, NASCARA must improve its present racing video games by presenting modification in the automobiles i.e. changing colours, choice of speed, presenting group racing in the game, utilizing better graphics connected to the racing tracks and introducing different levels in the video game. All these adjustments in the existing video game would offer much better experience to kids.
Along with it, NASCAR needs to also construct new games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing between various animation characters with a choice of picking the preferred cartoon character for the kids. These methods would make it possible for the company to bring in one of its prospective target sectors.
4. Presenting multiculturalism at events.
NASCAR occasions are comprised of fans with really few cultural diversity, due to cost of arrival in events, making it unsightly for the clients viewing sport occasions as social events i.e. Generation Y clients. As the Generation Y consumers are a possible target market for NASCAR, for that reason the business needs to take certain measures to attract this possible target market.
5. Improving Client Experience at Tracks.
NASCAR must work on facilities and features at tracks because on the race day audiences got dissatisfied. Viewers have lots of expectations from Strategic Planning At Sun Life Case Study Solution due to the fact that in exact same industry other companies are providing better services than NASCAR. IF NASCAR don't work on this concern then its fans might moved to its competitors.
Marketing budget made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, reveals the cost related information for the marketing techniques. (See Appendix B). It can be seen that strategy 5 of enhancing consumer experience at tracks would need greatest preliminary financial investment and cost and method 4 of presenting multiculturalism will require most affordable preliminary financial investment with most affordable further each year expense. The company must prioritize the resource allowance on these techniques on the basis of its readily available resources and the prospective advantages which the technique would provide.
NOTE: The worths about cost are presumed on reasonable basis due the absence of figures and realities connected to cost in the case study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal aspects of Strategic Planning At Sun Life Case Study Solution causing the decrease of tv viewership rate and participation rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long term. These techniques would manage internal aspects like bad consumer experience at tracks, inadequate social media marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, as well as with external factors like moving of fans towards other sports, demographical modifications in America and altering domesticity styles.