Sweet Concepts Inc Trade Show Marketing Case Study Solution & Analysis
Sweet Concepts Inc Trade Show Marketing Case Study Help (National Association for Stock Car Car Racing) is a company carrying out series of Stock Automobile racing in United States and serving as an approving body for driving the guidelines for Stock Vehicle Racing. The company was founded in 1947, by "Big Bill" France. NASCAR set up Stock Vehicle Racing occasions in United States with the presence of about 130000 viewers on average in 2005. It likewise transmitted its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the second biggest viewer sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its revenue. The other sources of earnings for Sweet Concepts Inc Trade Show Marketing Case Study Help consists of; 10% of the overall revenue from television rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist approach. The building of Automobile of Tomorrow by NASCAR, with an objective of security for the motorists, brought various tensions amongst the stakeholders of the sport.
The communication audit, conducted in 2010, revealed that regardless of the fact that business extremely rely on the interactions in between its stakeholders, there was no identifiable organisation interaction method. The market's target customers, instructions and objectives were all unidentified.
The audit pointed out different doing not have of NASCAR in terms of lack of internal combination, lack of fan management technique and lack of social and digital media of marketing. The company has intricate community with independent tracks, teams and chauffeurs. This structure with closed corporate culture bring numerous difficulties in accelerating a change. Other partners in community includes the media networks i.e. tv and radio, and business online marketers.
Sweet Concepts Inc Trade Show Marketing Case Study Solution audiences was highly faithful to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate online marketers.
The business is presently dealing with the issue of decreasing rates of attendance at racing tracks and rates of tv audiences. This can put a considerable effect on its incomes from sponsors, media rights, and from other sources of revenue.
Although the company was rather successful till 2005 with its traditional marketing strategies, however right after 2005 the company starts dealing with various issues including decline of its fan base. Numerous external in addition to internal aspects are responsible for the decline. Internal aspects consist of; inadequate financial investment in social networks and other digital medias of.
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. However the household system in America was changing leading to reduction of impact of married male fan base over their youngsters. Along with it understandings about cars and truck was also changing with viewing vehicle an automobile to reach at point B from point A, instead of as an enjoyable project. Other challenges 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 gain access to, etc. These all challenges were tending the company to revise its marketing strategies.
In SWOT analysis, strengths specified as company's qualities which are various from its competitors. These are business's core competencies on which business performance or company success based on. Sweet Concepts Inc Trade Show Marketing Case Study Solution core proficiencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and guidelines concerning professional stock automobile racing are dictated by NASCAR like if any group with required skills and resources can enter into races by following guidelines and guidelines dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second biggest viewer sport in the United States with having more fortune 500 sponsors based in US. Its races were used to relay in more than 150 countries around the globe with more than $56 million earnings. The primary sources of their incomes come from television rights, sanctioning 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 large resource of fans and corporate sponsors. All the events of NASCAR are sponsored by corporates because of most significant brand commitment of fans towards brand names marketed by Sweet Concepts Inc Trade Show Marketing Case Study Help. (See Appendix A).
Weak points of NASCAR includes its close culture which is non collective. Sweet Concepts Inc Trade Show Marketing Case Study Help develops Cars and truck of Tomorrow without collaboration so result is that drivers did not like that concept. It was likewise found that NASCAR had no effective method for service communication.
NASCAR usually utilized to rely on traditional media sources like local paper for promotion of its sports. NASCAR likewise came to know from these traditional media outlets that sport was hard to cover. When sports fans were asked concerning popular celebs and stars then NASCAR driver was not found even in top twenty reactions.
Hazards in SWOT analysis are specified as external factors that can hazard to business's success. Economic down turn was experienced in late 2000 which can be threat for NASCAR since if there is economic down turn then people would be having less roi. Earning of people would be effected and they would be more mindful in investing their money. Economic down turn also results in increase fuel prices which likewise impacted NASCAR. Because fans of NASCAR utilized to attend its event from long distances. NESCAR had a rule of 65/25/10 for income circulation. 65 percent earnings from media rights would be dispersed to race course, 25 percent income would be distributed to competing team and remaining 10 percent would be kept by NESCAR which is sanctioning body. Completing team wished to increase their part of income from 25 percent because of boost in running expense of a race team and also there is decline in the number of full-season sponsorship. Due to the fact that they are making massive investments to enhance experience of fans, nescar also deals with hazards from other sponsors. For example which includes upgrading existing avenues, constructing brand-new opportunities, supplying Wi-Fi center and also supplying other interactive mediums to communicate sports on smartphones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and develop generational loyalty. The obstacle is that the household system in America was altering resulting in reduction of influence of married male fan base over their children. Along with it perceptions about cars and truck was likewise altering with perceiving car a car to reach at point B from point A, rather than as a fun task. Now if Sweet Concepts Inc Trade Show Marketing Case Study Solution make substantial investments in brand-new segments which are based on brand-new customers then it might face unfavorable comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is used to evaluate market in which company is working. It helps in identifying what are strengths and weak point of any specific market. It suggest that every market is various from one another. Because NASCAR's bottom line i.e. net profit is greatly depends on this, it is important to understand industry in which company is working. There are 5 forces that are used to identify profitability, strength and attractiveness of Sweet Concepts Inc Trade Show Marketing Case Study Help company.
This force shows ability of rivals. Teams generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. For that reason it can be said that drivers and race cars are competitors. If they got better chance in terms of rewards and television exposure, these motorists can go versus Sweet Concepts Inc Trade Show Marketing Case Study Solution. If audiences delight in other race cars and trucks and drivers more than NASCAR then viewers can shift to those other interesting cars and trucks and motorists. NASCAR could be having risk from its 2 direct rivals that is Formula 1 and Moto GP. They require to create competitive advantages for drivers so they don't move to other competitors.
The supplier power shows the number of suppliers are available in industry and what is the expense associated with provider if company shifts from one provider to another. In this market there is supply monopoly because drivers with required abilities and resources are limited.
In the case of NASCAR consumers are its audiences. Audiences can change to other rivals easily because viewers will having low changing expense.
Threat of Substitution
Alternatives are referred as options. The substitutes in this case can be other entertainment implies like viewers can move to other sports. There are broad variety 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 needs to pay hefty quantity to motorists for changing.
It can not be concluded from case research study that there would be modification in resource allotments. NASCAR had actually got gain from lower taxation policies which leads to increasing in profits. So they made heavy investments in the research study and advancement. As NASCAR is operating in different markets so it needs to face various guidelines. It is likewise noted that Sweet Concepts Inc Trade Show Marketing Case Study Analysis has faced increased analysis concerning regulative. Every government has different priority so NASCAR needs to be prepared for it as concern can be moved to other sector.
Economic aspects includes taxation rate, exchange rate, financial performance of that particular business, 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 rivals can be impacted. NASCAR can utilize capabilities of workers to produce brand-new chances and improve existing opportunities.
Every society is various from each other. Each has different social worths and standards. It assists in understanding regarding society and preference of consumers. Social elements consists of traditions, culture, mindsets towards specific product and services, demographics, standards, interests and so on. It can be concluded that marketing through other ways instead of traditional (i.e. newspaper) can be chosen in this society.
In this case of NASCAR it can be kept in mind that business are heavily investing for research study and development. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.
Legal plays an important function in every country because every country has different legal terms and conditions. Sweet Concepts Inc Trade Show Marketing Case Study Solution needs to be make certain that they secure their legal rights in every county so any business does not damage to its legal rights.
Environmental elements are also crucial for every service. Due to the fact that typically federal governments do not permit those organisation which can damage to environment. These environmental factors includes laws regarding contamination, climate change, safe garbage disposal, policies relating to insurance and so on. NASCAR requires to make certain that its cars are not generating contamination more than acceptable level.
7 P's of Marketing
The items of Sweet Concepts Inc Trade Show Marketing Case Study Solution in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices method of NASCAR for its race events tickets is based upon the venue and importance of the racing occasions. Along with race occasions tickets, NASCAR also charge various service charge to its stakeholders and makes profits. For example it charged approving costs of $1-2 million per race typically 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 viewers 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, Car Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in most of the cities in United States to comprehend nationwide appeal.
Nestle individuals strategy is comprised of supplying better experience to its viewers, its fan base and to all of its stakeholders. People are an essential element of Sweet Concepts Inc Trade Show Marketing Case Study Help A marketing method as its occasions are the source of home entertainment for crowd. Its individuals strategy includes efforts to offer much better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under people technique of NASCAR.
A number of service procedures are needed to perform racing occasions in an efficient way. These processes consist of; correct schedule of time, plan for viewers, offering tickets, plan of area for sponsors, managing logistics etc. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and trucks and racing occasions. In addition to it, its merchandising brand names consisting of tee shirts, caps, goodies etc., likewise function as a physical evidence for NASCAR.
Item Life Cycle Assessment.
The racing events by NASCAR was presented on June 19, 1949. At the very first phase competitors for NASCAR was low, as the competitors drove the cars and trucks comparable to the cars and trucks driven by common individuals.
After conducting its very first race effectively the business moved towards constructing its own tracks. The first Sweet Concepts Inc Trade Show Marketing Case Study Analysis based track, namely 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 broadcasting its races on tv in 1979. The first event broadcasted on tv was flag-to-flag protection of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a regional Sport popular company into one with worldwide fan base. He initiated a brand-new age of financially rewarding sponsorships and television agreements for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having wide variety of earnings sources. The company has about 500 sponsors with transmitting its events in about 150 countries. The business has a great deal of tracks in most of the cities of United States.
The major causes of decline include the financial crisis of 2008, which increased the cost of arriving at tracks for audiences due to increasing fuel prices, and the shifting of its fan base towards other sports.
The marketplace segmentation of Sweet Concepts Inc Trade Show Marketing Case Study Help can be divided into four sections; 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 occasions 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 large geographical division supplies the business regional in addition to global fan base.
The market division of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its existing fan base is majorly comprised of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the market segment of its market NASCAR ought to revise its marketing methods to bring in more age groups and lower its costs to enter in the marketplace section with a low typical earnings.( htt1).
The psychological attributes of the majority of the fans are quite similar. NASCAR has a fan base with a commitment. When in a week, NASCAR fans perceive it compulsive to purchase tickets and see the races. 71% of them prefer to acquire products with a NASCAR brand name. They are rather extrovert and want to mingle with other fans while racing. They desire quality racing with low rate at practical area. NASCAR has actually tried to increase the quality of its racing by presenting phase racing, they likewise have actually tried to lower costs and make the event more hassle-free by presenting live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the tv or by going in the occasions. Presently, the fans preference is towards seeing the race at house on tv rather than going, as the customer experience at NASCAR tracks is not beneficial as well as costly.
Among the potential target audience of Sweet Concepts Inc Trade Show Marketing Case Study Analysis was Hispanics; the young and growing population of United States. The market sector has terrific 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. The sector shows affinity with cars and truck culture, but require a more focused marketing towards welcoming the sector towards racing.
Kids are also one of the potential target market section for NASCAR, as they are more connected socially than other groups. Vehicle racing games developed by Sweet Concepts Inc Trade Show Marketing Case Study Analysis can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and enhancing its digital features to draw in the kids target market.
Generation Y target market consists of those who spent 5 times more resources on discretionary costs i.e. purchasing tickets for racing events, than others. This huge expenditure makes the section capacity for NASCAR marketing technique of increasing its fan base. The market sector is also easy to approach as 81% of the Y Generation customer uses Facebook every day and the use is two times of utilizing tv and radio. The marketplace segment views sports as a get-together, rather than adherence to sport. The market segment thinks about NASCAR as an organization lacking in developing a multiculturalism environment. Sweet Concepts Inc Trade Show Marketing Case Study Help needs to take different steps to enhance the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing helps in taking choices relating to marketing.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, environmental and legal and is mentioned above.
NASCAR is a car 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 of 15-60 years. Business has closed corporate culture and having non-interventionist approach.
Collaborations includes distributors, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.
The customer of Sweet Concepts Inc Trade Show Marketing Case Study Solution are its audiences. They target customers 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 children and create 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 motorists. Therefore it can be stated that chauffeurs and race vehicles are rivals. If they got much better chance in terms of prizes and tv direct exposure, these drivers can go versus NASCAR.
1. Maintaining and developing Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population section of U.S.A. but sadly NASCAR had been not able to bring in the this targeted section. In order to draw in the young growing generation the NASCAR should market by using social networks like Facebook. It must establish a Facebook page consisting of the info concerning the races and the areas of tracks to make the customer helpful about the core operations of Sweet Concepts Inc Trade Show Marketing Case Study Help. It needs to also upgrade its Facebook page on daily basis to supply information about its approaching events. This would make the target audience section more informative about the business and would result in attracting large 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 regards to star power (see Case Display). The major factor behind it is that, the racers primarily play in groups and are not able to build a crucial account and keep a close contact with fans. The bad contacts with fans lead to less destination of viewers towards the racers and a low star power. Star power is an important factor for drawing in audiences towards tracks and towards tv. The star power for the motorists at NASCARA could be enhanced by creating and updating accounts of essential drivers by NASCARA itself. This would get rid of the requirement of forcing chauffeurs to keep their accounts and would lead to increasing fans attention towards NASCARA drivers.
3. Developing New Games and enhancing current games for kids.
In order to attract these kids, NASCARA must improve its current racing games by presenting personalization in the cars i.e. changing colours, selection of speed, introducing group racing in the video game, utilizing much better graphics related to the racing tracks and introducing different levels in the game. All these modifications in the present video game would offer better experience to kids.
Along with it, NASCAR needs to likewise construct new video games related to racing like kids racing with kids characters as motorists, animation racing with racing between various animation characters with an option of selecting the preferred cartoon character for the kids. These methods would enable the business to attract one of its potential target sections.
4. Introducing multiculturalism at events.
NASCAR occasions are comprised of fans with extremely couple of cultural diversity, due to expense of arrival in events, making it unattractive for the customers viewing sport occasions as social celebrations i.e. Generation Y consumers. As the Generation Y customers are a prospective target market for NASCAR, for that reason the company needs to take specific procedures to attract this possible target market.
5. Improving Consumer Experience at Tracks.
NASCAR should work on facilities and amenities at tracks because on the race day audiences got disappointed. Audiences have numerous expectations from Sweet Concepts Inc Trade Show Marketing Case Study Help because in very same industry other business are offering much better services than NASCAR. IF NASCAR do not work on this problem then its fans may shifted to its rivals.
Marketing budget plan made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, shows the expense associated information for the marketing strategies. (See Appendix B). It can be seen that technique 5 of enhancing client experience at tracks would require highest preliminary investment and expense and strategy 4 of presenting multiculturalism will need lowest initial investment with lowest even more per year expense. The business needs to prioritize the resource allowance on these techniques on the basis of its offered resources and the potential advantages which the technique would supply.
NOTE: The values about cost are presumed on rational basis due the absence of figures and truths 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 factors of Sweet Concepts Inc Trade Show Marketing Case Study Analysis triggering the decline of television viewership rate and attendance rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long run. These methods would cope with internal elements like bad client experience at tracks, inadequate social media marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, as well as with external elements like shifting of fans towards other sports, demographical modifications in America and altering family life styles.