Strategic Planning At Sun Life Case Study Solution and Analysis
Strategic Planning At Sun Life Case Study Analysis (National Association for Stock Cars And Truck Vehicle Racing) is an organization carrying out series of Stock Automobile racing in United States and serving as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. The organization was established in 1947, by "Huge Bill" France. NASCAR set up Stock Cars and truck Racing occasions in United States with the presence of about 130000 viewers usually in 2005. It also transmitted its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of income for Strategic Planning At Sun Life Case Study Solution consists of; 10% of the total profits from tv rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed business culture with the non-interventionist method. Nevertheless this non collective approach brings tensions in the sport. The structure of Car of Tomorrow by Strategic Planning At Sun Life Case Study Solution, with an objective of security for the chauffeurs, brought different tensions amongst the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that regardless of the fact that the business extremely count on the interactions in between its stakeholders, there was no identifiable service interaction strategy. The industry's target customers, instructions and goals were all unidentified.
The audit pointed out different lacking of NASCAR in terms of lack of internal combination, absence of fan management strategy and absence of social and digital media of marketing. The company has complicated community with independent tracks, drivers and teams. This structure with closed business culture bring different difficulties in accelerating a modification. Other partners in environment consists of the media networks i.e. television and radio, and business marketers.
Strategic Planning At Sun Life Case Study Help viewers was extremely loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate marketers.
The company is currently dealing with the issue of decreasing rates of presence at racing tracks and rates of television viewers. This can put a significant influence on its revenues from sponsors, media rights, and from other sources of revenue.
Although the business was rather effective till 2005 with its standard marketing techniques, but right after 2005 the business starts facing different issues including decrease of its fan base. Several external as well as internal factors are accountable for the decline. Internal factors 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 youngsters and develop generational loyalty. Other difficulties for NASCAR consists of the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, and so on.
In SWOT analysis, strengths specified as company's qualities which are different from its rivals. These are company's core proficiencies on which business efficiency or business success based on. Strategic Planning At Sun Life Case Study Help core competencies includes it has rights of determining rules as sanctioning body. Regulations and guidelines regarding professional stock vehicle racing are determined by NASCAR like if any group with required abilities and resources can participate in races by following rules and regulations determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise consists of 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 transmit in more than 150 countries worldwide with more than $56 million earnings. The main sources of their revenues come from television rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and business sponsors. Because of greatest brand loyalty of fans towards brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses of NASCAR includes its close culture which is non collective. Strategic Planning At Sun Life Case Study Help develops Automobile of Tomorrow without partnership so result is that chauffeurs did not like that concept. It was likewise found that NASCAR had no reliable technique for organisation communication.
NASCAR generally used to rely on traditional media sources like local newspaper for publicity of its sports. NASCAR also came to understand from these standard media outlets that sport was challenging to cover. When sports fans were asked concerning popular stars and stars then NASCAR driver was not found even in leading twenty reactions.
Economic down turn was experienced in late 2000 which can be threat for NASCAR due to the fact that if there is economic down turn then people would be having less return on financial investment. Economic down turn likewise results in boost fuel prices which also affected NASCAR. Now if NASCAR make substantial investments in new sections which are based on new clients then it might deal with negative remarks from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a design that is utilized to analyse industry in which business is working. It assists in identifying what are strengths and weak point of any specific industry. It recommend that every industry is different from one another. It is very important to comprehend market in which business is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to recognize success, intensity and appearance of Strategic Planning At Sun Life Case Study Analysis organisation.
This force indicates ability of rivals. Groups usually represents sponsors in NASCAR and the medium of marketing is motorists. Therefore it can be said that motorists and race cars are rivals. These drivers can break NASCAR if they got better chance in regards to prizes and tv exposure. If audiences take pleasure in other race cars and trucks and motorists more than NASCAR then viewers can move to those other intriguing automobiles and chauffeurs. NASCAR might be having hazard from its 2 direct rivals that is Solution 1 and Moto GP. They require to develop competitive benefits for motorists so they don't shift to other rivals.
If company shifts from one provider to another, the supplier power shows the number of providers are readily available in industry and what is the cost associated with supplier. In this market there is supply monopoly because motorists with needed skills and resources are restricted.
In the case of NASCAR customers are its audiences. Viewers can switch to other competitors easily because audiences will having low changing expense.
Threat of Substitution
Alternatives are referred as alternatives. The replacements in this case can be other home entertainment implies like audiences can shift to other sports. There are large variety of replacements are available in this scenario which recommends that hazard of substitute is high.
Danger of New Entry
It is specified as how it is simple for any business to go into in that particular market. When it comes to Strategic Planning At Sun Life Case Study Solution hazard of new entry is low. Because if any company requires to go into in this company than they have to make heavy investments. They require to build cars and racing tracks and also requires to pay substantial amount to drivers for switching.
It can not be concluded from case study that there would be change in resource allotments. NASCAR had actually got take advantage of lower taxation policies which results in increasing in earnings. So they made heavy investments in the research study and development. As NASCAR is operating in numerous markets so it needs to deal with different policies. It is also kept in mind that Strategic Planning At Sun Life Case Study Help has dealt with increased scrutiny relating to regulatory. Every federal government has various concern so NASCAR needs to be gotten ready for it as priority can be shifted to other sector.
Financial aspects includes taxation rate, currency exchange rate, financial efficiency of that particular business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be affected if there is government intervention in the marketing and sales sector. NASCAR can take advantage of capabilities of workers to produce brand-new opportunities and enhance existing chances.
Every society is various from each other. Each has various social values and norms. It helps in comprehending concerning society and choice of consumers. Social aspects includes customs, culture, attitudes towards specific services and products, demographics, norms, interests etc. It can be concluded that advertising through other methods rather than traditional (i.e. newspaper) can be preferred in this society.
In this case of NASCAR it can be noted that business are heavily investing for research study and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Since every nation has different legal terms and conditions, Legal plays a crucial function in every nation. Strategic Planning At Sun Life Case Study Help needs to be make certain that they secure their legal rights in every county so any company does not damage to its legal rights.
Ecological aspects are also essential for every organisation. NASCAR needs to make sure that its automobiles are not producing contamination more than acceptable level.
7 P's of Marketing
The items of Strategic Planning At Sun Life Case Study Solution in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices strategy of NASCAR for its race occasions tickets is based upon the venue and value of the racing occasions. In addition to race events tickets, NASCAR also charge various service fees to its stakeholders and makes revenue. It charged sanctioning charges of $1-2 million per race on average in 2005.
Promotional strategy of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle 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 understand across the country appeal.
Nestle people method is comprised of supplying better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important element of Strategic Planning At Sun Life Case Study Solution A marketing method as its events are the source of entertainment for crowd. Its people strategy 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 method of NASCAR.
Numerous business processes are required to perform racing occasions in an effective way. These processes include; proper schedule of time, arrangement for spectators, selling tickets, plan of area for sponsors, managing logistics etc. These all procedures contribute I developing NASCAR image, enhancing viewers experience and increasing fan base.
Most important physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing events. Along with it, its merchandising brand names consisting of tee shirts, caps, goodies etc., likewise act as a physical evidence for NASCAR.
Item Life Process Evaluation.
The racing events by NASCAR was introduced on June 19, 1949. At the first stage competitors for NASCAR was low, as the rivals drove the cars and trucks comparable to the automobiles driven by ordinary people.
The very first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the business moved towards relaying its races on television in 1979.
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 global fan base. He started a brand-new era of profitable sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having vast array of earnings sources. The business has about 500 sponsors with transmitting its occasions in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
The major causes of decrease include the monetary crisis of 2008, which increased the expense of showing up at tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.
The marketplace division of Strategic Planning At Sun Life Case Study Help can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Strategic Planning At Sun Life Case Solution is based upon the geographical existence of its tracks in various states and cities in United States, and the tv broadcasting of its events in numerous nations. 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 huge geographical division supplies the business local along with worldwide fan base.
The group division of Strategic Planning At Sun Life Case Study Help is likewise highlydiverse based upon the gender, income and age of the consumer. To increase the market section of its market NASCAR must revise its marketing techniques to attract more age groups and lower its rates to enter in the market segment with a low average earnings.
NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to purchase tickets and see the races once in a week. NASCAR has tried to increase the quality of its racing by presenting phase racing, they also have tried to lower costs and make the event more practical by presenting live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the television or by going in the events. Presently, the fans choice is towards seeing the race at home on television rather than going, as the client experience at NASCAR tracks is not beneficial as well as pricey.
Among the potential target audience of Strategic Planning At Sun Life Case Study Analysis was Hispanics; the young and growing population of United States. The marketplace sector has excellent potential for NASCAR as the population was growing at a greater rate and it was anticipated to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the sector shows affinity with vehicle culture, but require a more focused marketing towards inviting the section towards racing.
Kids are also among the potential target audience sector for NASCAR, as they are more linked socially than other groups. Developing fan base amongst kids can offer a possible increase in the number of fans for racing due to their connection. Kids invest the majority of their times in playing and using smart devices computer game. Car racing video games established by Strategic Planning At Sun Life Case Study Solution can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of getting the attention. NASCAR needs more attention towards tailoring and improving its digital features to bring in the kids target market.
This substantial expense makes the section potential for NASCAR marketing method of increasing its fan base. The market section thinks about NASCAR as an organization doing not have in creating a multiculturalism environment. 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 decisions concerning marketing.
It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE means political, financial, social, technical, ecological and legal and is specified above.
Strategic Planning At Sun Life Case Study Help is an automobile racing company with having USP of high quality car racing with an international structure. Its sector is sports group and events.
Collaborations consists of suppliers, providers and alliances of Strategic Planning At Sun Life Case Study Help. It is worked together with different racing teams which are participating 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 variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire 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.
The client of Strategic Planning At Sun Life Case Study Help are its viewers. They target consumers with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and develop generational loyalty.
The direct rivals of NASCAR are Solution 1 and Moto GP. Groups generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. It can be stated that motorists and race cars are competitors. These motorists can break Strategic Planning At Sun Life Case Study Help if they got better opportunity in terms of rewards and tv direct exposure.
1. Developing and Maintaining Facebook Page.
One of the prospective target audience sectors for NASCAR is Hispanics which is the growing population section of USA but unfortunately NASCAR had actually been not able to attract the this targeted sector. In order to draw in the young growing generation the NASCAR should market by utilizing social networks like Facebook. It ought to establish a Facebook page including the info relating to the races and the places of tracks to make the consumer informative about the core operations of Strategic Planning At Sun Life Case Study Analysis. It must also upgrade its Facebook page on everyday basis to provide information about its upcoming occasions. This would make the target audience section more informative about the business and would result in attracting big fans base.
2. Establishing and Upgrading Accounts of Secret Drivers.
Strategic Planning At Sun Life Case Study Analysis chauffeurs has a low star power as compare to players of other sports. The poor contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is a crucial factor for bring in audiences towards tracks and towards television.
3. Establishing New Games and enhancing present games for kids.
Kids spent the majority of their time on playing games and using smartphones. But unfortunately, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less attracted towards the sport. In order to draw in these kids, NASCARA ought to improve its present racing games by presenting personalization in the cars i.e. altering colours, selection of speed, presenting group racing in the video game, using much better graphics related to the racing tracks and introducing various levels in the video game. All these modifications in the current video game would supply better experience to kids.
Along with it, NASCAR needs to likewise build brand-new video games connected to racing like kids racing with kids characters as drivers, animation racing with racing in between various cartoon characters with an option of choosing the favourite cartoon character for the kids. These methods would make it possible for the business to bring in one of its possible target segments.
4. Introducing multiculturalism at events.
Strategic Planning At Sun Life Case Study Analysis occasions are comprised of fans with extremely few cultural diversity, due to expense of arrival in occasions, making it unappealing for the clients viewing sport events as affairs i.e. Generation Y consumers. As the Generation Y clients are a potential target audience for NASCAR, therefore the company needs to take specific steps to attract this potential target market. It should adopt techniques to attract the consumers far from the tracks place with different culture. The method to do so could be providing unique discount rates on tickets or complimentary tickets to viewers coming from a particular range or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR should work on infrastructure and facilities at tracks because on the race day viewers got dissatisfied. Audiences have many expectations from Strategic Planning At Sun Life Case Study Solution due to the fact that in very same market other companies are providing better services than NASCAR. IF NASCAR do not work on this problem then its fans might shifted to its rivals.
Marketing spending plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the expense related information for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of improving customer experience at tracks would need highest initial investment and expense and strategy 4 of introducing multiculturalism will need most affordable initial investment with least expensive even more each year expense. The business needs to focus on the resource allotment on these techniques on the basis of its readily available resources and the potential benefits which the strategy would supply.
KEEP IN MIND: The worths about expense are assumed on reasonable basis due the lack of facts and figures related to cost in the case study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the external and internal factors of Strategic Planning At Sun Life Case Study Analysis triggering the decline of television viewership rate and presence rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long term. These techniques would cope with internal aspects like bad consumer experience at tracks, insufficient social networks marketing, incapable digital medias like games, absence of culturalisms at tracks etc., as well as with external factors like moving of fans towards other sports, demographical changes in America and changing domesticity designs.