Technology Legend In China Case Study Solution and Analysis
NASCAR (National Association for Stock Car Car Racing) is a company conducting series of Stock Cars and truck racing in United States and acting as a sanctioning body for driving the guidelines for Stock Automobile Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of income for Technology Legend In China Case Study Help consists of; 10% of the total income from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. The building of Cars and truck of Tomorrow by NASCAR, with an objective of safety for the drivers, brought various stress among the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that in spite of the reality that the business highly rely on the interactions in between its stakeholders, there was no recognizable business communication strategy. (
The audit pointed out different doing not have of NASCAR in terms of lack of internal combination, absence of fan management method and absence of social and digital media of marketing.
Technology Legend In China Case Study Analysis viewers was highly devoted to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business marketers.
The business is currently dealing with the issue of decreasing rates of attendance at racing tracks and rates of tv viewers. This can put a considerable impact on its earnings from sponsors, media rights, and from other sources of earnings.
The business was quite successful till 2005 with its conventional marketing methods, but quickly after 2005 the business starts dealing with different issues including decrease of its fan base. Several external along with internal elements are responsible for the decrease. Internal aspects include; insufficient 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 children and produce generational loyalty. Other challenges for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, etc.
NASCAR core competencies includes it has rights of dictating guidelines as sanctioning body. Regulations and guidelines concerning professional stock automobile racing are determined by NASCAR like if any team with needed 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 since of most significant brand loyalty of fans towards brand names advertised by Technology Legend In China Case Study Analysis.
Weak Points in SWOT Analysis are thought about as external aspects. Weaknesses consists of the aspects that stops business to perform at needed level of performance. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They generally utilized to form guidelines and other needed processes without intervention of others which leads to poor cooperation. NASCAR develops Vehicle of Tomorrow without cooperation so result is that motorists did not like that idea. As this is racing sport so covering of sports by media is also hard. It was likewise found that NASCAR had no efficient strategy for organisation interaction. If it took place off track, they don't understand how to deal with issue. Ineffective company interaction leads to that they don't have clear instructions for their long term goals. They do not know that where they wish to see this sport in future.
NASCAR generally used to rely on standard media sources like local paper for promotion of its sports. NASCAR also came to understand from these standard media outlets that sport was difficult to cover. When sports fans were asked relating to popular celebrities and stars then NASCAR chauffeur was not found even in top twenty reactions.
Economic down turn was experienced in late 2000 which can be hazard for NASCAR because if there is financial down turn then individuals would be having less return on financial investment. Economic down turn likewise results in increase fuel rates which likewise affected NASCAR. Now if NASCAR make considerable investments in new segments which are based on new consumers then it might deal with unfavorable remarks from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is used to analyse market in which business is working. It assists in identifying what are strengths and weak point of any particular market. It recommend that every market is different from one another. It is essential to understand industry in which business is working since NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are utilized to recognize success, intensity and appearance of Technology Legend In China Case Study Solution service.
This force suggests ability of competitors. Teams usually represents sponsors in NASCAR and the medium of advertising is motorists. It can be said that chauffeurs and race cars and trucks are competitors. If they got better opportunity in terms of rewards and tv exposure, these drivers can go against Technology Legend In China Case Study Analysis. If viewers take pleasure in other race cars and trucks and drivers more than NASCAR then audiences can shift to those other fascinating vehicles and chauffeurs. NASCAR could be having risk from its two direct competitors that is Solution 1 and Moto GP. They need to develop competitive advantages for motorists so they do not move to other competitors.
If business shifts from one supplier to another, the supplier power suggests the number of providers are readily available in industry and what is the expense associated with provider. In this market there is supply monopoly because chauffeurs with needed resources and skills are limited.
This force is concerning to customers that is it simple for clients to move to other products. If there is more changing cost is associated then consumers are less most likely to switch. When it comes to NASCAR customers are its viewers. Due to the fact that audiences will having low changing cost, audiences can change to other competitors quickly.
Hazard of Substitution
Replacements are referred as alternatives. The replacements in this case can be other home entertainment suggests like viewers can shift to other sports. So there are large range of replacements are readily available in this circumstance which recommends that threat of replacement is high.
Danger of New Entry
In the case of NASCAR threat of new entry is low. They require to build cars and racing tracks and also requires to pay hefty quantity to chauffeurs for switching.
It can not be concluded from case study that there would be change in resource allowances. NASCAR had got gain from lower taxation policies which results in increasing in earnings. So they made heavy investments in the research study and advancement. As NASCAR is operating in different markets so it needs to deal with various policies. It is likewise kept in mind that Technology Legend In China Case Study Analysis has actually dealt with increased examination regarding regulatory. Every federal government has different concern so NASCAR needs to be gotten ready for it as priority can be shifted to other sector.
Financial elements includes tax rate, currency exchange rate, financial performance of that particular company, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can take advantage of capabilities of workers to develop brand-new opportunities and improve existing opportunities.
Every society is different from each other. Each has various social worths and standards. It helps in comprehending concerning society and preference of customers. Social aspects consists of traditions, culture, attitudes towards specific product and services, demographics, norms, interests and so on. It can be concluded that advertising through other ways rather than conventional (i.e. paper) can be preferred in this society.
Technology has impact on nearly every company. It includes innovation in company technique. In this case of Technology Legend In China Case Study Analysis it can be noted that companies are heavily spending for research and development. NASCAR needs to also work on its media rights policy with Turner Broadcasting System.
Due to the fact that every nation has different legal terms and conditions, Legal plays an essential role in every nation. Technology Legend In China Case Study Solution requires to be ensure that they secure their legal rights in every county so any company does not damage to its legal rights.
Ecological aspects are likewise essential for every business. Due to the fact that usually governments do not allow those organisation which can harm to environment. These environmental factors includes laws concerning contamination, climate change, safe garbage disposal, policies relating to insurance coverage and so on. NASCAR requires to make sure that its vehicles are not creating pollution more than appropriate level.
7 P's of Marketing
The products of Technology Legend In China Case Study Analysis in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to business marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rates strategy of NASCAR for its race occasions tickets is based upon the place and importance of the racing occasions. Together with race events tickets, NASCAR also charge numerous service fees to its stakeholders and makes income. For instance it charged approving costs of $1-2 million per race usually in 2005.
Promotional method of Technology Legend In China Case Study Solution 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. The company is not entirely relied upon its fan base for its promo and promote through regional radio stations too. The company has also adopted the retailing media of promotion, in which the business offers products with its logo.
NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Automobile 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 consisted of providing better experience to its viewers, its fan base and to all of its stakeholders. People are a crucial aspect of Technology Legend In China Case Study Solution A marketing strategy as its events are the source of entertainment for crowd. Its individuals method includes efforts to offer much better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under people strategy of NASCAR.
Numerous organisation procedures are required to conduct racing events in an efficient method. These processes consist of; proper schedule of time, plan for spectators, selling tickets, plan of space for sponsors, managing logistics and so on. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Essential physical proofs for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing events. Along with it, its merchandising brands consisting of tee shirts, caps, goodies etc., also function as a physical evidence for NASCAR.
Product Life Cycle Evaluation.
The racing events by Technology Legend In China Case Study Analysis was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the first stage competitors for NASCAR was low, as the rivals drove the cars similar to the vehicles driven by normal individuals.
After performing its first race successfully the business moved towards developing its own tracks. The first Technology Legend In China Case Study Help based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by establishment of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards relaying its races on tv in 1979. The very first event transmitted on tv was flag-to-flag coverage 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 organization into one with international fan base. He initiated a brand-new period of rewarding sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the business having vast array of revenue sources. The company has about 500 sponsors with broadcasting its events in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
The decrease 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 significant causes of decline include the financial crisis of 2008, which increased the cost of getting to tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.
The market segmentation of Technology Legend In China Case Study Analysis can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Technology Legend In China Case Solution is based upon the geographical presence of its tracks in various states and cities in United States, and the television broadcasting of its events in different countries. The company has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division offers the company local in addition to international fan base.
The market division of Technology Legend In China Case Study Analysis is likewise highlydiverse based upon the gender, income and age of the consumer. To increase the market sector of its market NASCAR ought to modify its marketing techniques to bring in more age groups and lower its prices to go into in the market sector with a low average earnings.
The psychological attributes of the majority of the fans are quite comparable. NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to acquire tickets and see the races when in a week. 71% of them choose to acquire products with a NASCAR brand. They are rather extrovert and want to mingle with other fans while racing. They want quality racing with low cost at convenient location. Although Technology Legend In China Case Study Help has actually tried to increase the quality of its racing by introducing stage racing, they likewise have tried to lower prices and make the event easier 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. Currently, the fans choice is towards watching the race at house on television rather than going, as the consumer experience at NASCAR tracks is not beneficial as well as costly.
One of the prospective target market of Technology Legend In China Case Study Solution was Hispanics; the young and growing population of United States. The marketplace segment has excellent potential for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the segment shows affinity with automobile culture, however require a more focused marketing towards inviting the sector towards racing.
Kids are also one of the prospective target market sector for NASCAR, as they are more linked socially than other groups. Cars and truck racing games established by Technology Legend In China Case Study Help can be a possible source of getting attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and improving its digital features to attract the kids target market.
Generation Y target audience includes those who spent five times more resources on discretionary expenditures i.e. purchasing tickets for racing occasions, than others. This huge expense makes the segment potential for NASCAR marketing strategy of increasing its fan base. The marketplace section is likewise simple to method as 81% of the Y Generation customer utilizes Facebook the use and every day is twice of utilizing tv and radio. The market sector views sports as a social occasion, rather than adherence to sport. The market sector thinks about NASCAR as a company doing not have in producing a multiculturalism atmosphere. Technology Legend In China Case Study Help should take numerous steps to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions relating to marketing.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE means political, financial, social, technical, legal and environmental and is mentioned above.
NASCAR is a car racing company with having USP of high quality vehicle racing with a global structure. Its sector is sports team and occasions. Its target market is males in the age group of 15-60 years. Business has actually closed corporate culture and having non-interventionist method.
Collaborations includes suppliers, suppliers and alliances of Technology Legend In China Case Study Help. It is worked together with various racing teams which are taking part in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR utilized to earn money check of around $15 million yearly from Turner Sports. There are number of cons behind this offer. For example NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot during race at track.
The client of Technology Legend In China Case Study Help are its audiences. 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.
Groups normally represents sponsors in NASCAR and the medium of marketing is motorists. These motorists can go versus NASCAR if they got better opportunity in terms of rewards and television direct exposure.
1. Preserving and developing Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population segment of USA but unfortunately NASCAR had actually been not able to attract the this targeted segment. It should develop a Facebook page consisting of the details concerning the races and the places of tracks to make the customer useful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Secret Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The significant factor behind it is that, the racers mostly play in groups and are unable to build a crucial account and maintain a close contact with fans. The bad contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an essential factor for drawing in audiences towards tracks and towards television. The star power for the drivers at NASCARA could be enhanced by creating and upgrading accounts of crucial motorists by NASCARA itself. This would remove the requirement of requiring motorists to maintain their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Developing New Games and enhancing existing video games for kids.
Kids invested most of their time on playing video games and utilizing smart devices. However sadly, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less brought in towards the sport. In order to draw in these kids, NASCARA should improve its present racing games by presenting modification in the automobiles i.e. changing colours, selection of speed, introducing group racing in the video game, utilizing better graphics associated with the racing tracks and introducing different levels in the game. All these adjustments in the present game would offer much better experience to kids.
In addition to it, NASCAR should likewise develop new video games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing between numerous animation characters with an option of selecting the favourite cartoon character for the kids. These strategies would make it possible for the company to attract one of its potential target sections.
4. Introducing multiculturalism at occasions.
NASCAR occasions are comprised of fans with really few cultural diversity, due to cost of arrival in events, making it unsightly for the consumers perceiving sport occasions as social celebrations i.e. Generation Y consumers. As the Generation Y customers are a potential target market for NASCAR, for that reason the company needs to take particular procedures to attract this prospective target market.
5. Improving Consumer Experience at Tracks.
Due to the fact that on the race day viewers got disappointed, NASCAR needs to work on infrastructure and amenities at tracks. Since in very same market other companies are providing better services than NASCAR, audiences have lots of expectations from Technology Legend In China Case Study Analysis. IF NASCAR don't work on this issue then its fans might shifted to its competitors. According to fans there were not appropriate facilities were readily available as compare to other sports providers. So NASCAR ought to make sure that it provide appropriate centers that includes cleaned washrooms, comfortable seating arrangement. They need to also supply WIFI services and ease of access of credit cards throughout that track. It needs to be also make certain that there suffice jumbo turns positioned at all required locations. There need to be likewise food stalls that offer quality food to audiences. In this method viewers will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Spending plan
Marketing spending plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the cost associated information for the marketing strategies. (See Appendix B). It can be seen that method 5 of improving consumer experience at tracks would require greatest preliminary financial investment and expense and method 4 of presenting multiculturalism will require most affordable initial investment with least expensive further per year cost. The business needs to focus on the resource allowance on these methods on the basis of its readily available resources and the prospective advantages which the strategy would offer.
NOTE: The worths about expense are assumed on rational basis due the lack of realities and figures associated with cost in the event study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external aspects of Technology Legend In China Case Study Analysis causing the decrease of tv viewership rate and attendance rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long term. These techniques would manage internal factors like poor client experience at tracks, inadequate social media marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., in addition to with external aspects like shifting of fans towards other sports, demographical modifications in America and altering domesticity designs.