The Global Water And Food Supply Problem Case Study Solution and Analysis
NASCAR (National Association for Stock Cars And Truck Vehicle Racing) is an organization conducting series of Stock Car racing in United States and acting as an approving body for driving the guidelines for Stock Car Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd biggest spectator sport, with greatest number of sponsors. 1) The other sources of revenue for The Global Water And Food Supply Problem Case Study Solution includes; 10% of the overall earnings from television rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed corporate culture with the non-interventionist technique. Nevertheless this non collaborative method brings stress in the sport. The structure of Vehicle of Tomorrow by The Global Water And Food Supply Problem Case Study Help, with an intention of safety for the motorists, brought different stress amongst the stakeholders of the sport.
The interaction audit, carried out in 2010, revealed that despite the truth that the business extremely rely on the interactions in between its stakeholders, there was no identifiable organisation communication strategy. (
The audit mentioned numerous lacking of NASCAR in terms of absence of internal integration, lack of fan management technique and lack of digital and social media of marketing. The business has complicated environment with independent tracks, motorists and teams. This structure with closed corporate culture bring various obstacles in accelerating a modification. Other partners in environment includes the media networks i.e. tv and radio, and corporate online marketers.
The Global Water And Food Supply Problem Case Study Analysis viewers was highly loyal to the sport and the brands associated with the NASCAR, making it appealing for sponsors and business marketers.
The company is presently facing the problem of declining rates of attendance at racing tracks and rates of television audiences. This can put a significant impact on its earnings from sponsors, media rights, and from other sources of revenue.
Although the business was quite effective till 2005 with its traditional marketing methods, but soon after 2005 the company starts dealing with various issues consisting of decline of its fan base. Several external in addition to internal elements are accountable for the decline. Internal aspects include; inadequate investment in social networks and other digital medias of.
Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and create generational commitment. But the family system in America was altering leading to decrease of influence of married male fan base over their children. In addition to it perceptions about cars and truck was likewise changing with perceiving cars and truck an automobile to reach at point B from point A, rather than as an enjoyable task. Other difficulties for The Global Water And Food Supply Problem Case Study Solution 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, etc. These all challenges were tending the business to modify its marketing methods.
In SWOT analysis, strengths defined as business's qualities which are different from its rivals. These are business's core proficiencies on which company performance or business success based on. The Global Water And Food Supply Problem Case Study Analysis core competencies includes it has rights of dictating rules as approving body. Rules and regulations relating to professional stock automobile racing are determined by NASCAR like if any group with required skills and resources can enter into races by following rules and policies determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also includes that it has title of second biggest viewer 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 incomes. The main sources of their revenues originate from television rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and business sponsors. All the occasions of NASCAR are sponsored by corporates due to the fact that of biggest brand commitment of fans towards brand names marketed by The Global Water And Food Supply Problem Case Study Analysis. (See Appendix A).
Weaknesses of NASCAR includes its close culture which is non collective. The Global Water And Food Supply Problem Case Study Solution develops Automobile of Tomorrow without partnership so result is that chauffeurs did not like that idea. It was also found that NASCAR had no reliable strategy for company interaction.
NASCAR generally utilized to rely on traditional media sources like regional paper for publicity of its sports. NASCAR also came to understand from these standard media outlets that sport was tough to cover. When sports fans were asked concerning popular stars and stars then NASCAR chauffeur was not found even in top twenty reactions.
Dangers in SWOT analysis are defined as external aspects that can risk to business's success. Economic down turn was experienced in late 2000 which can be danger for NASCAR since if there is economic down turn then individuals would be having less roi. Earning of people would be effected and they would be more conscious in investing their cash. Economic down turn also leads to boost fuel rates which also impacted NASCAR. Due to the fact that fans of NASCAR used to attend its event from fars away. NESCAR had a guideline of 65/25/10 for revenue distribution. 65 percent earnings from media rights would be distributed to race course, 25 percent income would be distributed to contending team and remaining 10 percent would be retained by NESCAR which is sanctioning body. Contending group wished to increase their part of revenue from 25 percent due to the fact that of boost in operating expense of a race team and also there is decrease in the number of full-season sponsorship. Since they are making massive investments to enhance experience of fans, nescar also deals with dangers from other sponsors. Which consists of upgrading existing opportunities, building new avenues, offering Wi-Fi center and likewise supplying other interactive mediums to communicate sports on smartphones. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational loyalty. The difficulty is that the family system in America was altering resulting in reduction of impact of married male fan base over their children. Along with it perceptions about cars and truck was likewise altering with perceiving automobile an automobile to reach at point B from point A, rather than as a fun task. Now if The Global Water And Food Supply Problem Case Study Help make considerable financial investments in brand-new segments which are based upon new clients then it might deal with negative remarks 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 business is working. It assists in identifying what are strengths and weak point of any specific market. It suggest that every industry is various from one another. It is necessary to comprehend industry in which business is working since NASCAR's bottom line i.e. net revenue is greatly depends on this. There are 5 forces that are utilized to recognize profitability, intensity and appearance of The Global Water And Food Supply Problem Case Study Help company.
This force indicates capability of competitors. Groups typically represents sponsors in NASCAR and the medium of marketing is drivers. For that reason it can be said that drivers and race automobiles are competitors. These drivers can break NASCAR if they improved chance in regards to prizes and tv exposure. Then audiences can shift to those other intriguing cars and trucks and drivers, if viewers take pleasure in other race vehicles and chauffeurs more than NASCAR. NASCAR might be having hazard from its 2 direct rivals that is Solution 1 and Moto GP. They require to create competitive benefits for motorists so they don't shift to other competitors.
The provider power shows the number of suppliers are offered in market and what is the cost connected with provider if business shifts from one supplier to another. In this market there is supply monopoly since motorists with needed abilities and resources are restricted.
This force is regarding to consumers that is it easy for consumers to shift to other products. Then customers are less likely to switch, if there is more switching cost is associated. When it comes to NASCAR customers are its audiences. Audiences can change to other competitors easily due to the fact that audiences will having low switching cost.
Risk of Replacement
Replacements are referred as options. The substitutes in this case can be other home entertainment implies like audiences can move to other sports. So there are wide range of replacements are readily available in this scenario which suggests that risk of substitute is high.
Hazard of New Entry
It is defined as how it is easy for any business to go into in that specific market. In the case of The Global Water And Food Supply Problem Case Study Analysis risk of new entry is low. Since if any business requires to go into in this organisation than they need to make heavy investments. They need to build cars and racing tracks and likewise requires to pay significant total up to drivers for changing.
It can not be concluded from case study that there would be modification in resource allotments. NASCAR had got gain from lower tax policies which results in increasing in earnings. So they made heavy investments in the research and advancement. As NASCAR is operating in numerous markets so it requires to face various policies. It is likewise kept in mind that The Global Water And Food Supply Problem Case Study Help has actually dealt with increased scrutiny relating to regulative. Every government has various concern so NASCAR has to be prepared for it as concern can be shifted to other sector.
Economic factors consists of tax rate, exchange rate, financial efficiency of that specific business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its rivals can be affected if there is federal government intervention in the marketing and sales sector. NASCAR can take advantage of capabilities of employees to produce new chances and improve existing opportunities.
Every society is various from each other. Each has various social values and norms. It assists in understanding concerning society and choice of consumers. Social factors consists of traditions, culture, attitudes towards particular product and services, demographics, standards, interests and so on. It can be concluded that advertising through other means instead of conventional (i.e. paper) can be preferred in this society.
Technology has impact on practically every business. It consists of innovation in organisation technique. In this case of The Global Water And Food Supply Problem Case Study Help it can be kept in mind that companies are heavily spending for research and development. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Since every nation has different legal terms and conditions, Legal plays an important function in every nation. The Global Water And Food Supply Problem Case Study Solution needs to be make sure that they secure their legal rights in every county so any business does not damage to its legal rights.
Environmental factors are also crucial for every business. NASCAR needs to make sure that its automobiles are not generating contamination more than appropriate level.
7 P's of Marketing
The products of The Global Water And Food Supply Problem Case Study Analysis in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Prices method 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 various service fees to its stakeholders and earns profits. For instance it charged approving charges of $1-2 million per race on average in 2005.
Promotional technique of The Global Water And Food Supply Problem 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 business is not completely relied upon its fan base for its promo and promote through local radio stations too. The company has actually likewise adopted the merchandising media of promo, in which the business sells merchandises with its logo.
NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to understand across the country appeal.
Nestle individuals strategy is comprised of providing better experience to its audiences, its fan base and to all of its stakeholders. People are an essential aspect of The Global Water And Food Supply Problem Case Study Help A marketing strategy as its occasions are the source of entertainment for crowd. Its people strategy consists of efforts to provide better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under people technique of NASCAR.
A number of service procedures are needed to conduct racing occasions in an efficient method. These processes consist of; proper schedule of time, arrangement for viewers, selling tickets, plan of area for sponsors, handling logistics etc. These all procedures contribute I constructing NASCAR image, improving spectators experience and increasing fan base.
Most important physical evidences for the NASCAR includes the existence of its racing tracks, stock automobiles and racing occasions. In addition to it, its merchandising brand names including t-shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.
Item Life Process Evaluation.
The racing occasions by The Global Water And Food Supply Problem Case Study Solution was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first phase competition for NASCAR was low, as the rivals drove the automobiles similar to the automobiles driven by common people.
After conducting its first race effectively the business moved towards constructing its own tracks. The very first The Global Water And Food Supply Problem Case Study Analysis based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards transmitting its races on tv in 1979. The very first event transmitted on tv was flag-to-flag protection of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he changed NASCAR from a local Sport popular company into one with worldwide fan base. He initiated a new era of lucrative sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide range of income sources. The business has about 500 sponsors with relaying its events in about 150 countries. The business has a great deal of tracks in the majority of the cities of United States.
The significant causes of decrease include the monetary crisis of 2008, which increased the cost of arriving at tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.
The market division of The Global Water And Food Supply Problem Case Study Analysis can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of The Global Water And Food Supply Problem Case Help is based upon the geographical existence of its tracks in various states and cities in United States, and the television broadcasting of its occasions in various nations. 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 huge geographical division offers the business local in addition to international fan base.
The demographic division of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly comprised of male married fans with a typical age of 47 years and an income around $30-50 thousands. However presently NASCAR is attempting to increase its target market to the young growing population and kinds too. To increase the group segment of its market NASCAR ought to modify its marketing methods to bring in more age groups and lower its rates to enter in the marketplace section with a low average income.( htt1).
The mental attributes of most of the fans are rather comparable. NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races when in a week. 71% of them prefer to acquire products with a NASCAR brand name. They are quite extrovert and want to mingle with other fans while racing. They want quality racing with low price at hassle-free location. NASCAR has tried to increase the quality of its racing by introducing stage racing, they likewise have attempted to lower prices and make the event more practical by introducing live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the television or by going in the occasions. Presently, the fans preference is towards enjoying the race at home on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as costly.
One of the possible target audience of The Global Water And Food Supply Problem Case Study Analysis was Hispanics; the young and growing population of United States. The marketplace segment has great possible for NASCAR as the population was growing at a greater 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 reveals affinity with car culture, however require a more concentrated marketing towards inviting the section towards racing.
Kids are also one of the prospective target market sector for NASCAR, as they are more connected socially than other groups. Car racing video games established by The Global Water And Food Supply Problem Case Study Solution can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and improving its digital functions to attract the kids target market.
Generation Y target market includes those who invested five times more resources on discretionary expenditures i.e. acquiring tickets for racing occasions, than others. This big expense makes the sector potential for NASCAR marketing method of increasing its fan base. The marketplace segment is likewise easy to method as 81% of the Y Generation consumer uses Facebook every day and the use is two times of utilizing television and radio. The market segment views sports as an affair, instead of adherence to sport. The market section thinks about NASCAR as an organization lacking in creating a multiculturalism atmosphere. The Global Water And Food Supply Problem Case Study Help needs to take different steps to improve the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking choices concerning marketing.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE means political, economic, social, technical, legal and environmental and is specified above.
The Global Water And Food Supply Problem Case Study Solution is a vehicle racing company with having USP of high quality auto racing with a global structure. Its sector is sports group and events.
Collaborations consists of distributors, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application.
The consumer of The Global Water And Food Supply Problem 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 an average age of 47, which passes their fandom to their youngsters and develop generational loyalty.
Teams generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. These motorists can go against NASCAR if they got better chance in terms of prizes and television exposure.
1. Developing and Keeping Facebook Page.
Among the possible target audience segments for NASCAR is Hispanics which is the growing population segment of USA however unfortunately NASCAR had been not able to draw in the this targeted sector. In order to bring in the young growing generation the NASCAR must market by using social media like Facebook. It needs to establish a Facebook page containing the information regarding the races and the places of tracks to make the consumer helpful about the core operations of The Global Water And Food Supply Problem Case Study Solution. It should also upgrade its Facebook page on daily basis to provide information about its upcoming occasions. This would make the target market segment more informative about the business and would result in attracting large fans base.
2. Establishing and Upgrading Accounts of Key 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 Exhibition). The major factor behind it is that, the racers mainly play in teams and are unable to develop a key account and keep a close contact with fans. The bad contacts with fans lead to less tourist attraction of audiences towards the racers and a low star power. Star power is an important element for attracting viewers towards tracks and towards television. The star power for the drivers at NASCARA might be improved by producing and upgrading accounts of crucial drivers by NASCARA itself. This would get rid of the requirement of forcing drivers to keep their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Developing New Games and enhancing present video games for kids.
In order to bring in these kids, NASCARA should improve its current racing games by presenting personalization in the automobiles i.e. altering colours, selection of speed, presenting group racing in the video game, utilizing much better graphics related to the racing tracks and introducing numerous levels in the game. All these adjustments in the existing video game would offer much better experience to kids.
Together with it, NASCAR needs to also develop new games associated with racing like kids racing with kids characters as motorists, animation racing with racing in between numerous animation characters with a choice of choosing the favourite cartoon character for the kids. These techniques would enable the business to attract among its potential target sections.
4. Introducing multiculturalism at events.
NASCAR occasions are comprised of fans with extremely few cultural variety, due to expense of arrival in occasions, making it unattractive for the clients perceiving sport events as social celebrations i.e. Generation Y clients. As the Generation Y consumers are a potential target market for NASCAR, therefore the business must take particular steps to attract this possible target market.
5. Improving Customer Experience at Tracks.
The Global Water And Food Supply Problem Case Study Solution should deal with infrastructure and features at tracks due to the fact that on the race day audiences got dissatisfied. Audiences have lots of expectations from NASCAR since in same industry other companies are providing much better services than NASCAR. IF NASCAR don't work on this problem then its fans may shifted to its competitors. According to fans there were not adequate facilities were offered as compare to other sports companies. So NASCAR ought to make certain that it offer sufficient facilities that includes cleaned restrooms, comfortable seating plan. They must likewise supply WIFI services and ease of access of credit cards throughout that track. It should be also ensure that there suffice jumbo turns placed at all required locations. There ought to be also food stalls that provide quality food to audiences. In this way audiences will be having pleasant 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 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 strategy 5 of enhancing client experience at tracks would need highest preliminary financial investment and expense and method 4 of introducing multiculturalism will need lowest preliminary investment with least expensive further per year expense. The company needs to focus on the resource allocation on these techniques on the basis of its available resources and the prospective advantages which the strategy would provide.
NOTE: The worths about expense are presumed on reasonable basis due the absence of figures and truths related to 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 The Global Water And Food Supply Problem Case Study Solution triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long term. These strategies would manage internal elements like bad consumer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., as well as with external elements like moving of fans towards other sports, demographical modifications in America and changing domesticity designs.