Sweet Concepts Inc Trade Show Marketing Case Study Solution & Analysis
NASCAR (National Association for Stock Cars And Truck Vehicle Racing) is a company carrying out series of Stock Automobile racing in United States and acting as an approving body for driving the rules for Stock Automobile Racing. 2) Stock Cars And Truck Racing by NASCAR is the 2nd biggest spectator sport, with highest number of sponsors. 1) The other sources of income for Sweet Concepts Inc Trade Show Marketing Case Study Help consists of; 10% of the total revenue from tv rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed corporate culture with the non-interventionist method. Nevertheless this non collaborative method brings stress in the sport. The building of Automobile of Tomorrow by Sweet Concepts Inc Trade Show Marketing Case Study Solution, with an objective of security for the drivers, brought different stress among the stakeholders of the sport.
The communication audit, performed in 2010, revealed that in spite of the reality that business extremely count on the communications between its stakeholders, there was no recognizable service communication strategy. The industry's target consumers, instructions and goals were all unidentified.
The audit pointed out various doing not have of NASCAR in terms of lack of internal integration, lack of fan management method and lack of social and digital media of marketing.
Sweet Concepts Inc Trade Show Marketing Case Study Help viewers was extremely devoted to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate online marketers.
The business is currently facing the problem of declining rates of presence at racing tracks and rates of television viewers. This can put a substantial effect on its earnings from sponsors, media rights, and from other sources of income.
The company was quite effective till 2005 with its standard marketing methods, however quickly after 2005 the business starts facing different issues including decrease of its fan base. A number of external as well as internal factors are responsible for the decrease. Internal aspects consist of; insufficient financial investment in social media and other digital medias of.
Fan base of NASCAR made up of married males with a typical 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 improving their fan's experience permitting 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 business's core proficiencies on which business efficiency or company success based upon. Sweet Concepts Inc Trade Show Marketing Case Study Solution core competencies includes it has rights of determining rules as sanctioning body. Policies and rules regarding expert stock cars and truck racing are determined by NASCAR like if any team with needed abilities and resources can participate in races by following rules and policies dictated by NASCAR. 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 United States. Its races were used to relay in more than 150 nations around the globe with more than $56 million revenues. The main sources of their earnings originate from tv rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and corporate sponsors. Due to the fact that of greatest brand name loyalty of fans toward brand names marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses in SWOT Analysis are considered as external factors. Weak points consists of the elements that stops company to perform at required level of efficiency. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist technique. They typically utilized to form rules and other required processes without intervention of others which leads to bad cooperation. NASCAR develops Automobile of Tomorrow without collaboration so result is that motorists did not like that principle. As this is racing sport so covering of sports by media is also hard. It was likewise discovered that NASCAR had no effective strategy for organisation interaction. If it happened off track, they don't understand how to manage issue. Ineffective business communication results in that they don't have clear instructions for their long term objectives. They do not understand that where they wish to see this sport in future.
Opportunities in SWOT analysis are external elements which can be favourable to company or the external elements on which company is having competitive benefit. NASCAR usually used to count on traditional media sources like regional newspaper for publicity of its sports. Normally these traditional media sources try to cover their home team and particular kind of occasions. NASCAR likewise came to know from these standard media outlets that sport was tough to cover. Media landscape also changed from traditional to digital landscape. Newspapers failed. NASCAR can work on its capabilities to get maximum possible gain from this brand-new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were also sold to Turner Sports. NASCAR used to get pay check of around $15 million annually from Turner Sports. There are number of cons behind this deal. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of each and every single video which is shoot during race at track. Then they are required to pay licensing costs to Turner Sport, if media sources like papers, publications and cable television channels want to post videos of races on their respective pages. So NASCAR can deal with conditions and terms and attempt to work out with Turner Sports to get optimal advantages of it. Star power plays extremely important role in generating earnings from every sport. However it was kept in mind that Sweet Concepts Inc Trade Show Marketing Case Study Solution is lagging in this location i.e. star power. For example when sports fans were asked regarding popular celebs and stars then NASCAR chauffeur was not found even in leading twenty responses. So NASCAR can put efforts in this location too for income generation. They must direct their drivers that how they can end up being sport stars. 4 tactical focuses which are produced by research study group can likewise be functioned as opportunity for NESCAR. These 4 tactical focuses compares and analysis Sweet Concepts Inc Trade Show Marketing Case Study Analysis strategies.
Economic down turn was experienced in late 2000 which can be threat for NASCAR since if there is economic down turn then individuals would be having less return on financial investment. Economic down turn also results in increase fuel costs which likewise impacted NASCAR. Now if NASCAR make substantial financial investments in brand-new sections which are based on new consumers then it may deal with negative comments from its core fan base.
Porter's 5 Forces Analysis
It is crucial to comprehend market in which company is working due to the fact that NASCAR's bottom line i.e. net revenue is greatly depends on this. There are 5 forces that are utilized to determine profitability, intensity and attractiveness of NASCAR organisation.
These motorists can go against NASCAR if they got much better opportunity in terms of prizes and television exposure. If audiences take pleasure in other race vehicles and chauffeurs more than NASCAR then audiences can shift to those other interesting cars and drivers. NASCAR might be having hazard from its two direct rivals that is Solution 1 and Moto GP.
The provider power suggests the variety of providers are readily available in industry and what is the expense associated with supplier if business shifts from one supplier to another. Due to the fact that drivers with required skills and resources are limited, in this market there is supply monopoly.
In the case of NASCAR consumers are its viewers. Viewers can change to other competitors easily due to the fact that audiences will having low switching cost.
Danger of Alternative
Substitutes are referred as options. The alternatives in this case can be other entertainment means like viewers can move to other sports. So there are large range of replacements are offered in this circumstance which recommends that hazard of substitute is high.
Threat of New Entry
In the case of NASCAR hazard of brand-new entry is low. They require to construct cars and racing tracks and also requires to pay large amount to chauffeurs for changing.
As NASCAR is working in various markets so it requires to face various regulations. It is also kept in mind that NASCAR has faced increased scrutiny regarding regulatory. Every federal government has various priority so NASCAR has actually to be prepared for it as priority can be moved to other sector.
Financial aspects consists of taxation rate, exchange rate, economic performance of that particular business, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be affected. NASCAR can utilize capabilities of staff members to produce brand-new chances and improve existing chances.
Every society is various from each other. Each has different social worths and norms. It helps in understanding relating to society and choice of consumers. Social aspects includes traditions, culture, attitudes towards specific product and services, demographics, standards, interests and so on. It can be concluded that marketing through other ways instead of conventional (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 and advancement. NASCAR must also work on its media rights policy with Turner Broadcasting System.
Legal plays an essential role in every nation since every country has different legal terms and conditions. Sweet Concepts Inc Trade Show Marketing Case Study Solution requires to be make certain that they secure their legal rights in every county so any company does not hurt to its legal rights.
Environmental aspects are also important for every service. Since typically federal governments don't permit those company which can harm to environment. These environmental elements consists of laws relating to contamination, environment modification, safe waste disposal, policies relating to insurance coverage etc. NASCAR requires to make certain that its vehicles are not producing pollution more than acceptable level.
7 P's of Marketing
The products of Sweet Concepts Inc Trade Show Marketing Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices strategy of NASCAR for its race occasions tickets is based upon the venue and significance of the racing occasions. In addition to race events tickets, NASCAR likewise charge different service charge to its stakeholders and earns income. For instance it charged approving charges of $1-2 million per race on average in 2005.
Marketing 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, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to understand across the country appeal.
Nestle individuals strategy is comprised of offering better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important aspect of Sweet Concepts Inc Trade Show Marketing Case Study Help A marketing strategy as its events are the source of home entertainment for crowd. Its people technique consists of efforts to supply better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under individuals technique of NASCAR.
Numerous organisation procedures are needed to conduct racing events in an efficient way. These processes include; proper schedule of time, plan for viewers, offering tickets, plan of space for sponsors, handling logistics and so on. These all procedures contribute I building NASCAR image, improving viewers experience and increasing fan base.
Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock vehicles and racing occasions. Along with it, its retailing brands consisting of tee shirts, caps, goodies etc., also act as a physical proof for NASCAR.
Item Life Process Evaluation.
The racing occasions by NASCAR was presented on June 19, 1949. At the first stage competitors for NASCAR was low, as the competitors drove the vehicles comparable to the vehicles driven by ordinary individuals.
The first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the company moved towards transmitting its races on television in 1979.
In 1972, William France Jr., became 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 initiated a new period of profitable sponsorships and tv agreements for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the business having wide range of revenue sources. The company has about 500 sponsors with broadcasting its events in about 150 countries. The company has a great deal of tracks in most of the cities of United States.
The significant causes of decline consist of the monetary crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.
The marketplace division of Sweet Concepts Inc Trade Show Marketing Case Study Analysis can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Sweet Concepts Inc Trade Show Marketing Case Help is based upon the geographical existence of its tracks in numerous states and cities in United States, and the television broadcasting of its occasions in numerous countries. The business has 23 tracks in about 20 states of America and has television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division offers the business regional as well as worldwide fan base.
The market division of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the consumer. Its existing fan base is majorly consisted of male married fans with an average age of 47 years and an income around $30-50 thousands. However currently NASCAR is trying to increase its target market to the young growing population and kinds as well. To increase the market segment of its market NASCAR ought to modify its marketing strategies to draw in more age groups and lower its prices to enter in the market sector with a low typical earnings.( htt1).
The mental attributes of most of the fans are rather comparable. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to purchase tickets and see the races when in a week. 71% of them prefer to purchase items with a NASCAR brand name. They are quite extrovert and want to join other fans while racing. They want quality racing with low price at practical location. Although Sweet Concepts Inc Trade Show Marketing Case Study Help has actually attempted to increase the quality of its racing by introducing phase racing, they likewise have tried to lower rates and make the occasion easier by introducing live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the events. Currently, the fans choice is towards enjoying the race at home on television rather than going, as the client experience at NASCAR tracks is not beneficial as well as costly.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has excellent potential for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are also among the possible target market section for NASCAR, as they are more connected socially than other groups. Developing fan base amongst kids can supply a potential boost in the variety of fans for racing due to their connection. Kids invest most of their times in playing and utilizing mobile phones video games. Car racing games established by Sweet Concepts Inc Trade Show Marketing Case Study Analysis can be a possible source of acquiring attention of kids towards NASCAR track racing. However, NASCAR's digital functions associated with kids are not capable of acquiring the attention. NASCAR requires more attention towards personalizing and enhancing its digital features to draw in the kids target market.
This substantial expense makes the sector potential for NASCAR marketing method of increasing its fan base. The market sector thinks about NASCAR as an organization doing not have in developing a multiculturalism atmosphere. NASCAR needs 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 choices regarding marketing. These 5 C's needs to be evaluated effectively for taking any marketing choice. These 5 C's stands for Climate, Company, Collaborators, Competitors and clients.
It needs to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, ecological and legal and is specified above.
Sweet Concepts Inc Trade Show Marketing Case Study Help is a vehicle racing business with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports team and events.
Collaborations consists of suppliers, providers and alliances of Sweet Concepts Inc Trade Show Marketing Case Study Help. It is teamed up with different racing teams which are taking part in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR used to earn money 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 want to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track.
The customer of Sweet Concepts Inc Trade Show Marketing Case Study Help are its audiences. They target clients with having age of 15-60 years. 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.
Teams normally represents sponsors in NASCAR and the medium of marketing is drivers. These drivers can go against NASCAR if they got better chance in terms of prizes and television direct exposure.
1. Establishing and Preserving Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population segment of U.S.A. but regrettably NASCAR had been not able to bring in the this targeted segment. It should establish a Facebook page including the information regarding the races and the locations of tracks to make the consumer helpful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Key Drivers.
Sweet Concepts Inc Trade Show Marketing Case Study Solution chauffeurs 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 aspect for drawing in audiences towards tracks and towards tv.
3. Developing New Games and improving current video games for kids.
In order to attract these kids, NASCARA must enhance its existing racing games by presenting modification in the cars i.e. changing colours, selection of speed, presenting group racing in the game, using better graphics related to the racing tracks and presenting different levels in the game. All these adjustments in the current game would offer better experience to kids.
In addition to it, NASCAR must likewise build brand-new video games associated with racing like kids racing with kids characters as motorists, cartoon racing with racing in between numerous animation characters with a choice of picking the preferred animation character for the kids. These techniques would enable the company to bring in among its possible target segments.
4. Presenting multiculturalism at events.
NASCAR occasions are made up of fans with really couple of cultural diversity, due to cost of arrival in events, making it unattractive for the consumers viewing sport events as social events i.e. Generation Y consumers. As the Generation Y consumers are a prospective target market for NASCAR, therefore the company must take specific measures to attract this potential target market.
5. Improving Client Experience at Tracks.
Because on the race day audiences got disappointed, NASCAR needs to work on infrastructure and facilities at tracks. Since in very same market other business are offering much better services than NASCAR, audiences have numerous expectations from Sweet Concepts Inc Trade Show Marketing Case Study Help. Then its fans might moved to its rivals, if NASCAR don't work on this issue. According to fans there were not appropriate facilities were readily available as compare to other sports suppliers. NASCAR should make sure that it offer adequate centers that includes cleaned toilets, comfortable seating arrangement. They need to also offer WIFI services and availability of charge card throughout that track. It ought to be likewise make sure that there suffice jumbo turns put at all required locations. There should be also food stalls that supply quality food to audiences. In this method audiences will be having enjoyable experience at the day of event. (See Appendix B).
Marketing Budget plan
Marketing budget made on the basis of the above techniques for the period of 5 years from 2011 to 2015, shows the expense related information for the marketing techniques. (See Appendix B). It can be seen that strategy 5 of improving customer experience at tracks would require greatest initial investment and expense and method 4 of presenting multiculturalism will require lowest initial financial investment with most affordable further annually expense. The company should prioritize the resource allowance on these strategies on the basis of its available resources and the possible benefits which the technique would offer.
NOTE: The worths about cost are assumed on rational basis due the lack of truths and figures connected to cost in the case study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external factors of Sweet Concepts Inc Trade Show Marketing Case Study Solution causing the decline of tv viewership rate and participation rate at tracks, the above marketing techniques are suggested to NASCAR to increase its fan base in long term. These methods would cope with internal aspects like bad customer experience at tracks, inadequate social media marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, along with with external aspects like moving of fans towards other sports, demographical modifications in America and changing domesticity designs.