Sweet Concepts Inc Trade Show Marketing Case Study Solution and Analysis
Sweet Concepts Inc Trade Show Marketing Case Study Help (National Association for Stock Vehicle Auto Racing) is an organization conducting series of Stock Car racing in United States and serving as an approving body for driving the rules for Stock Cars and truck Racing. The company was established in 1947, by "Huge Bill" France. NASCAR organize Stock Automobile Racing events in United States with the existence of about 130000 viewers on average in 2005. It also relayed its occasions in about 150 nations. Stock Cars And Truck Racing by NASCAR is the 2nd biggest spectator sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its revenue. The other sources of revenue for Sweet Concepts Inc Trade Show Marketing Case Study Analysis includes; 10% of the total revenue from tv rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist method. The building of Automobile of Tomorrow by NASCAR, with an objective of safety for the drivers, brought numerous stress amongst the stakeholders of the sport.
The communication audit, performed in 2010, revealed that despite the fact that business highly depend on the interactions in between its stakeholders, there was no recognizable service communication strategy. The industry's target consumers, direction and objectives were all unknown.
The audit pointed out various lacking of NASCAR in terms of lack of internal integration, absence of fan management technique and lack of digital and social media of marketing.
Sweet Concepts Inc Trade Show Marketing Case Study Help viewers was highly faithful to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate online marketers.
The business is currently facing the problem of declining rates of participation at racing tracks and rates of television viewers. This can put a substantial impact on its earnings from sponsors, media rights, and from other sources of earnings.
The business was rather successful till 2005 with its traditional marketing techniques, but quickly after 2005 the company starts facing various issues including decrease of its fan base. Several external as well as internal factors are responsible for the decline. Internal elements consist of; inadequate financial investment in social networks 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 commitment. The household system in America was altering resulting in decrease of influence of married male fan base over their youngsters. Along with it perceptions about automobile was also changing with perceiving car an automobile to reach at point B from point A, rather than as an enjoyable task. Other obstacles for Sweet Concepts Inc Trade Show Marketing Case Study Solution includes the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc. These all obstacles were tending the company to revise its marketing methods.
NASCAR core competencies includes it has rights of determining rules as sanctioning body. Guidelines and guidelines relating to expert stock vehicle racing are determined by NASCAR like if any group with required skills and resources can get in into races by following guidelines and policies dictated by NASCAR. All the events of NASCAR are sponsored by corporates because of most significant brand name commitment of fans towards brands advertised by Sweet Concepts Inc Trade Show Marketing Case Study Analysis.
Weaknesses in SWOT Analysis are thought about as external elements. Weak points consists of the aspects that stops business to perform at needed level of performance. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They normally utilized to form rules and other needed procedures without intervention of others which results in bad cooperation. For example NASCAR establishes Cars and truck of Tomorrow without collaboration so result is that chauffeurs did not like that principle. As this is racing sport so covering of sports by media is likewise hard. It was likewise found that NASCAR had no effective method for organisation communication. If it took place off track, they do not know how to handle problem. Ineffective organisation interaction results in that they do not have clear direction for their long term goals. They don't know that where they wish to see this sport in future.
Opportunities in SWOT analysis are external factors which can be favourable to company or the external elements on which business is having competitive benefit. NASCAR usually utilized to count on standard media sources like regional newspaper for promotion of its sports. Normally these traditional media sources attempt to cover their home group and particular kind of occasions. NASCAR also familiarized from these traditional media outlets that sport was difficult to cover. Media landscape likewise altered from traditional to digital landscape. Newspapers went out of business. NASCAR can deal with its abilities to get optimal possible gain from this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were also sold to Turner Sports. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. There are variety of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every single video which is shoot during race at track. Then they are needed to pay licensing costs to Turner Sport, if media sources like papers, publications and cable channels want to publish videos of races on their particular pages. NASCAR can work on conditions and terms and try to negotiate with Turner Sports to get optimal advantages of it. Star power plays very essential function in generating profits from every sport. However it was noted that Sweet Concepts Inc Trade Show Marketing Case Study Analysis is lagging in this area i.e. star power. For example when sports fans were asked relating to popular celebrities and stars then NASCAR driver was not found even in leading twenty reactions. So NASCAR can put efforts in this area too for revenue generation. They need to direct their drivers that how they can end up being sport stars. 4 tactical focuses which are produced by research study team can likewise be acted as chance for NESCAR. These four strategic focuses compares and analysis Sweet Concepts Inc Trade Show Marketing Case Study Solution strategies.
Threats in SWOT analysis are specified as external factors that can risk to business's success. Economic down turn was experienced in late 2000 which can be threat for NASCAR because if there is economic down turn then individuals would be having less roi. Earning of individuals would be effected and they would be more conscious in investing their money. Economic down turn also results in boost fuel prices which likewise impacted NASCAR. Since fans of NASCAR utilized to attend its event from fars away. NESCAR had a rule of 65/25/10 for profits circulation. 65 percent incomes from media rights would be distributed to race course, 25 percent profits would be distributed to competing team and staying 10 percent would be retained by NESCAR which is approving body. Contending team wished to increase their part of earnings from 25 percent due to the fact that of boost in running expense of a race team and likewise there is decline in the variety of full-season sponsorship. Because they are making enormous investments to improve experience of fans, nescar likewise deals with risks from other sponsors. For instance that includes updating existing avenues, developing new avenues, supplying Wi-Fi center and also supplying other interactive mediums to engage sports on smartphones. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and develop generational loyalty. So the difficulty is that the household system in America was changing resulting in reduction of influence of married male fan base over their children. Together with it understandings about car was also changing with viewing vehicle an automobile to reach at point B from point A, instead of as an enjoyable task. Now if Sweet Concepts Inc Trade Show Marketing Case Study Solution make significant financial investments in new sections which are based on brand-new customers then it might deal with unfavorable comments from its core fan base.
Porter's Five Forces Analysis
It is important to comprehend industry in which company is working because NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are used to recognize success, strength and attractiveness of NASCAR company.
This force suggests ability of rivals. Teams typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. It can be said that chauffeurs and race cars are rivals. These motorists can break NASCAR if they got better chance in regards to prizes and tv direct exposure. If viewers enjoy other race automobiles and drivers more than NASCAR then audiences can shift to those other interesting automobiles and motorists. NASCAR might be having threat from its 2 direct competitors that is Formula 1 and Moto GP. They need to produce competitive benefits for drivers so they do not move to other rivals.
If business shifts from one provider to another, the supplier power indicates the number of providers are available in industry and what is the cost associated with supplier. Since motorists with required resources and skills are restricted, in this market there is supply monopoly.
This force is concerning to customers that is it simple for consumers to shift to other items. Then consumers are less likely to change, if there is more changing expense is associated. In the case of NASCAR consumers are its viewers. Because audiences will having low switching cost, viewers can switch to other rivals quickly.
Threat of Substitution
Alternatives are referred as alternatives. The replacements in this case can be other home entertainment indicates like viewers can shift to other sports. There are large range of substitutes are offered in this circumstance which suggests that danger of alternative is high.
Hazard of New Entry
In the case of NASCAR danger of new entry is low. They require to develop cars and racing tracks and also requires to pay large amount to chauffeurs for switching.
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 analysis relating to regulatory. Every government has different concern so NASCAR has actually to be prepared for it as priority can be moved to other sector.
Financial factors consists of taxation rate, exchange rate, economic performance of that specific company, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can take advantage of abilities of workers to produce new opportunities and enhance existing opportunities.
Every society is various from each other. Each has different social worths and standards. It helps in understanding concerning society and choice of consumers. Social factors includes customs, culture, attitudes towards specific product and services, demographics, standards, interests etc. It can be concluded that marketing through other ways rather than conventional (i.e. newspaper) can be chosen in this society.
Innovation has influence on nearly every service. It includes development in service strategy. In this case of Sweet Concepts Inc Trade Show Marketing Case Study Solution it can be kept in mind that business are heavily investing for research and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Legal plays an essential role in every nation since every nation has various legal conditions. Sweet Concepts Inc Trade Show Marketing Case Study Solution requires to be make certain that they protect their legal rights in every county so any business does not damage to its legal rights.
Ecological aspects are also important for every organisation. NASCAR needs to make sure that its automobiles are not generating pollution more than appropriate level.
7 P's of Marketing
The products of Sweet Concepts Inc Trade Show Marketing Case Study Analysis in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Pricing technique of NASCAR for its race events tickets is based upon the venue and importance of the racing events. Along with race occasions tickets, NASCAR likewise charge different service fees to its stakeholders and earns profits. For instance it charged approving costs of $1-2 million per race usually in 2005.
Promotional technique of Sweet Concepts Inc Trade Show Marketing Case Study Help 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. Nevertheless, the business is not totally trusted its fan base for its promotion and promote through regional radio stations too. The business has also adopted the merchandising media of promo, in which the company offers products with its logo design.
NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Vehicle 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 comprised of supplying much better experience to its audiences, its fan base and to all of its stakeholders. People are a crucial element of Sweet Concepts Inc Trade Show Marketing Case Study Solution A marketing method as its events are the source of entertainment for crowd. Its people method includes efforts to offer better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under people strategy of NASCAR.
Numerous organisation processes are required to carry out racing occasions in an efficient method. These procedures include; correct schedule of time, plan for viewers, selling tickets, plan of area for sponsors, handling logistics etc. These all processes contribute I developing NASCAR image, enhancing spectators experience and increasing fan base.
Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock cars and trucks and racing occasions. Together with it, its merchandising brand names including tee shirts, caps, goodies and so on, also function 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 competitors for NASCAR was low, as the competitors drove the vehicles similar to the cars driven by ordinary people.
After conducting its first race effectively the company moved towards developing its own tracks. The very first Sweet Concepts Inc Trade Show Marketing Case Study Solution based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the business moved towards relaying its races on television in 1979. The very first occasion broadcasted on tv was flag-to-flag coverage of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he changed NASCAR from a regional Sport popular organization into one with worldwide fan base. He initiated a brand-new period of lucrative sponsorships and tv agreements for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the company having wide range of income sources. The business has about 500 sponsors with broadcasting its events in about 150 countries. The business has a great deal of tracks in most of the cities of United States.
The decline in the company's offerings began after 2005 with typical presence rate per race declined by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The major reasons for decrease consist of the monetary crisis of 2008, which increased the expense of reaching tracks for viewers due to increasing fuel rates, and the shifting of its fan base towards other sports.
The marketplace division of Sweet Concepts Inc Trade Show Marketing Case Study Solution can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Sweet Concepts Inc Trade Show Marketing Case Analysis is based upon the geographical presence of its tracks in numerous states and cities in United States, and the television broadcasting of its events in various countries. The company has 23 tracks in about 20 states of America and has tv broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical division provides the company local as well as global fan base.
The demographic segmentation of NASCAR is also highlydiverse based upon the gender, income and age of the consumer. Its existing fan base is majorly consisted of male married fans with a typical 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 also. To increase the market segment of its market NASCAR ought to modify its marketing strategies to draw in more age and lower its prices to enter in the market segment with a low typical income.( htt1).
The psychological attributes of the majority of the fans are quite comparable. NASCAR has a fan base with a loyalty. When in a week, NASCAR fans view it compulsive to acquire tickets and see the races. 71% of them prefer to purchase items with a NASCAR brand name. They are quite extrovert and are willing to join other fans while racing. They want quality racing with low cost at practical location. Although Sweet Concepts Inc Trade Show Marketing Case Study Solution has tried to increase the quality of its racing by presenting stage racing, they likewise have attempted to lower costs and make the occasion more convenient by introducing live racing.
Behavioural division of Sweet Concepts Inc Trade Show Marketing Case Study Help is based upon the behaviour of fans in regards to seeing the race reside on the television or by entering the events. Currently, the fans preference is towards viewing the race at home on tv instead of going, as the consumer experience at NASCAR tracks is not favourable in addition to expensive. This choice makes the rates for attendance 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 potential target market of Sweet Concepts Inc Trade Show Marketing Case Study Analysis was Hispanics; the young and growing population of United States. The market sector has excellent potential for NASCAR as the population was growing at a greater rate and it was expected to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the sector reveals affinity with car culture, but require a more focused marketing towards inviting the segment towards racing.
Kids are also one of the possible target market segment for NASCAR, as they are more linked socially than other groups. Producing fan base among kids can provide a prospective increase in the number of fans for racing due to their connectivity. Kids invest the majority of their times in playing and utilizing mobile phones computer game. Car racing video games established by Sweet Concepts Inc Trade Show Marketing Case Study Analysis can be a potential source of getting attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of acquiring the attention. NASCAR needs more attention towards personalizing and improving its digital functions to draw in the kids target audience.
Generation Y target audience consists of those who invested 5 times more resources on discretionary expenditures i.e. acquiring tickets for racing occasions, than others. This huge expenditure makes the segment capacity for NASCAR marketing method of increasing its fan base. The market section is likewise simple to approach as 81% of the Y Generation customer utilizes Facebook the usage and every day is two times of using television and radio. The marketplace section views sports as a get-together, instead of adherence to sport. The market section considers NASCAR as a company lacking in creating a multiculturalism atmosphere. Sweet Concepts Inc Trade Show Marketing Case Study Help must take numerous steps to improve 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.
It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE means political, financial, social, technical, legal and ecological and is specified above.
NASCAR is a vehicle racing company with having USP of high quality auto racing with an international structure. Its sector is sports group and events. Its target audience is males in the age group of 15-60 years. Company has actually closed business culture and having non-interventionist technique.
Collaborations consists of distributors, suppliers and alliances of Sweet Concepts Inc Trade Show Marketing Case Study Analysis. It is teamed up with different racing groups which are taking part in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million each year from Turner Sports. There are variety of cons behind this deal. For example NASCAR needed to get approval from Turner Sport if it wish to create its Facebook page, twitter account and even mobile application. Turner Sport also had rights of every video which is shoot throughout race at track.
The client of Sweet Concepts Inc Trade Show Marketing Case Study Solution are its viewers. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and develop generational commitment.
The direct rivals of NASCAR are Formula 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of advertising is drivers. It can be stated that motorists and race automobiles are rivals. These chauffeurs can break Sweet Concepts Inc Trade Show Marketing Case Study Analysis if they got better chance in regards to prizes and tv direct exposure.
1. Developing and Preserving Facebook Page.
Among the prospective target markets sections for NASCAR is Hispanics which is the growing population segment of USA however regrettably NASCAR had been not able to bring in the this targeted segment. In order to attract the young growing generation the NASCAR must market by using social networks like Facebook. It needs to establish a Facebook page consisting of the information concerning the races and the areas of tracks to make the consumer informative about the core operations of Sweet Concepts Inc Trade Show Marketing Case Study Solution. It needs to also update its Facebook page on daily basis to provide details about its upcoming occasions. This would make the target market segment more informative about business and would lead to bring in big fans base.
2. Developing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibit). The significant reason behind it is that, the racers mainly play in groups and are unable to build a key account and maintain a close contact with fans. The poor contacts with fans result in less destination of audiences towards the racers and a low star power. Star power is a crucial aspect for bring in audiences towards tracks and towards television. The star power for the chauffeurs at NASCARA could be improved by developing and upgrading accounts of essential drivers by NASCARA itself. This would remove the requirement of requiring motorists to keep their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Establishing New Games and improving existing video games for kids.
Kids invested the majority of their time on playing games and using smart devices. Unfortunately, kids playing NASCARA have a worst experience of playing its games. As a result, they are less attracted towards the sport. In order to attract these kids, NASCARA ought to enhance its existing racing video games by introducing personalization in the cars and trucks i.e. changing colours, choice of speed, presenting group racing in the video game, utilizing better graphics related to the racing tracks and presenting various levels in the video game. All these modifications in the existing game would offer much better experience to kids.
Along with it, NASCAR ought to likewise build new games related to racing like kids racing with kids characters as motorists, animation racing with racing between numerous cartoon characters with an option of selecting the favourite animation character for the kids. These techniques would enable the business to bring in among its prospective target segments.
4. Presenting multiculturalism at occasions.
Sweet Concepts Inc Trade Show Marketing Case Study Analysis events are comprised of fans with very few cultural diversity, due to cost of arrival in events, making it unappealing for the consumers viewing sport events as affairs i.e. Generation Y customers. As the Generation Y clients are a prospective target audience for NASCAR, therefore the company should take particular measures to attract this potential target market. It must adopt techniques to draw in the customers far from the tracks place with various culture. The technique to do so might be providing special discounts on tickets or free tickets to audiences originating from a specific range or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more satisfied.
5. Improving Client Experience at Tracks.
NASCAR should work on infrastructure and facilities at tracks because on the race day audiences got dissatisfied. Viewers have numerous expectations from Sweet Concepts Inc Trade Show Marketing Case Study Solution since in same industry other business are supplying much better services than NASCAR. IF NASCAR do not work on this issue then its fans may shifted to its rivals.
Marketing Spending plan
Marketing budget made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the expense associated data for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of enhancing customer experience at tracks would require highest preliminary investment and expense and method 4 of presenting multiculturalism will require most affordable initial investment with lowest further annually expense. The company needs to focus on the resource allowance on these strategies on the basis of its offered resources and the prospective benefits which the technique would supply.
KEEP IN MIND: The worths about cost are assumed on reasonable basis due the lack of figures and facts related to cost in the event research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal aspects of Sweet Concepts Inc Trade Show Marketing Case Study Help causing the decline of tv viewership rate and presence rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long term. These techniques would handle internal aspects like bad consumer experience at tracks, inadequate social media marketing, incapable digital medias like games, absence of culturalisms at tracks etc., as well as with external aspects like shifting of fans towards other sports, demographical modifications in America and changing domesticity styles.