The Global Water And Food Supply Problem Case Study Solution and Analysis
Intro
The Global Water And Food Supply Problem Case Study Help (National Association for Stock Vehicle Auto Racing) is an organization carrying out series of Stock Vehicle racing in United States and functioning as a sanctioning body for driving the rules for Stock Cars and truck Racing. The company was founded in 1947, by "Big Costs" France. NASCAR arrange Stock Car Racing events in United States with the presence of about 130000 viewers typically in 2005. It also broadcast its occasions in about 150 nations. Stock Vehicle Racing by NASCAR is the second biggest viewer sport, with highest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its revenue. The other sources of income for The Global Water And Food Supply Problem Case Study Solution consists of; 10% of the total profits from tv rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist method. The structure of Automobile of Tomorrow by NASCAR, with an intention of security for the chauffeurs, brought numerous tensions amongst the stakeholders of the sport.
The interaction audit, carried out in 2010, exposed that regardless of the truth that the business extremely count on the communications between its stakeholders, there was no recognizable company communication method. The industry's target customers, instructions and objectives were all unidentified.
The audit pointed out numerous lacking of NASCAR in terms of lack of internal integration, absence of fan management method and absence of social and digital media of marketing.
The Global Water And Food Supply Problem Case Study Help audiences was extremely devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate online marketers.
Problem Statement.
The company is currently dealing with the issue of declining rates of attendance at racing tracks and rates of tv audiences. This can put a substantial effect on its incomes from sponsors, media rights, and from other sources of earnings.
Situational Analysis.
The company was rather effective till 2005 with its conventional marketing strategies, but quickly after 2005 the business starts dealing with various issues consisting of decrease of its fan base. Numerous external along with internal factors are accountable for the decline. Internal factors consist of; insufficient financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and develop generational commitment. Other challenges for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, etc.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths specified as company's qualities which are various from its rivals. These are company's core competencies on which business efficiency or business success based on. The Global Water And Food Supply Problem Case Study Help core proficiencies includes it has rights of determining rules as approving body. Guidelines and guidelines regarding expert stock cars and truck racing are dictated by NASCAR like if any group with required abilities and resources can participate in races by following rules and guidelines dictated by NASCAR. So NASCAR has monopoly it this element. 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 United States. Its races were used to transmit in more than 150 countries around the world with more than $56 million profits. The primary sources of their incomes originate from tv rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and business sponsors. Due to the fact that of most significant brand name commitment of fans toward brand names marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses.
Weaknesses of NASCAR includes its close culture which is non collaborative. The Global Water And Food Supply Problem Case Study Analysis develops Vehicle of Tomorrow without cooperation so result is that drivers did not like that idea. It was likewise discovered that NASCAR had no reliable method for business communication.
Opportunities.
Opportunities in SWOT analysis are external elements which can be beneficial to company or the external aspects on which company is having competitive benefit. NASCAR typically utilized to count on traditional media sources like local newspaper for promotion of its sports. Generally these standard media sources try to cover their home team and certain sort of events. NASCAR also familiarized from these conventional media outlets that sport was tough to cover. Media landscape also changed from traditional to digital landscape. Newspapers failed. NASCAR can deal with its capabilities to get maximum 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 benefits. Digital rights of NASCAR were also offered to Turner Sports. NASCAR used to earn money check of around $15 million every year from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track. If media sources like papers, magazines and cable television channels wish to publish videos of races on their particular pages then they are required to pay licensing costs to Turner Sport. So NASCAR can work on conditions and attempt to work out with Turner Sports to get maximum benefits of it. Star power plays really essential role in creating earnings from every sport. However it was noted that The Global Water And Food Supply Problem Case Study Analysis is lagging in this area i.e. star power. For instance when sports fans were asked relating to popular celebrities and stars then NASCAR driver was not found even in leading twenty responses. NASCAR can put efforts in this location too for revenue generation. They ought to direct their chauffeurs that how they can end up being sport stars. Four tactical focuses which are generated by research study team can likewise be served as opportunity for NESCAR. These four tactical focuses compares and analysis The Global Water And Food Supply Problem Case Study Analysis methods.
Threats
Hazards in SWOT analysis are defined as external elements that can threat to business's success. Economic down turn was experienced in late 2000 which can be hazard for NASCAR because if there is economic down turn then individuals would be having less return on investment. Earning of individuals would be effected and they would be more conscious in investing their cash. Economic down turn also leads to increase fuel rates which also affected NASCAR. Since fans of NASCAR utilized to attend its event from long distances. NESCAR had a rule of 65/25/10 for income circulation. 65 percent incomes from media rights would be distributed to race course, 25 percent revenue would be distributed to completing group and remaining 10 percent would be kept by NESCAR which is approving body. Competing group wished to increase their portion of profits from 25 percent since of boost in running expense of a race team and also there is decrease in the variety of full-season sponsorship. Because they are making enormous investments to enhance experience of fans, nescar likewise faces hazards from other sponsors. For example that includes updating existing avenues, developing brand-new opportunities, offering Wi-Fi center and also providing other interactive mediums to engage sports on smart devices. 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 difficulty is that the household system in America was altering resulting in decrease of influence of married male fan base over their children. In addition to it perceptions about automobile was likewise changing with viewing car a vehicle to reach at point B from point A, rather than as a fun task. If NASCAR make substantial investments in new sections which are based on new clients then it might deal with negative comments from its core fan base, now.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is used to evaluate industry in which company is working. It assists in determining what are strengths and weakness of any particular market. It recommend that every industry is various from one another. It is important to comprehend market in which company is working due to the fact that NASCAR's bottom line i.e. net earnings is heavily depends upon this. There are 5 forces that are used to recognize success, intensity and appearance of The Global Water And Food Supply Problem Case Study Analysis organisation.
Competitive Rivalry
These motorists can go against NASCAR if they got much better chance in terms of prizes and television direct exposure. If viewers take pleasure in other race cars and trucks and drivers more than NASCAR then audiences can move to those other fascinating vehicles and motorists. NASCAR might be having hazard from its 2 direct rivals that is Solution 1 and Moto GP.
Supplier Power
If company shifts from one supplier to another, the provider power indicates the number of suppliers are available in market and what is the cost associated with supplier. In this industry there is supply monopoly due to the fact that chauffeurs with required resources and skills are limited.
Buyer Power
In the case of NASCAR customers are its viewers. Viewers can change to other competitors quickly due to the fact that viewers will having low switching expense.
Risk of Alternative
Alternatives are referred as options. The substitutes in this case can be other entertainment implies like audiences can move to other sports. There are wide variety of alternatives are offered in this situation which suggests that threat of substitute is high.
Risk of New Entry
It is defined as how it is simple for any company to go into in that particular market. In the case of The Global Water And Food Supply Problem Case Study Analysis risk of brand-new entry is low. Since if any company requires to enter in this organisation than they need to make heavy financial investments. They require to construct cars and racing tracks and also requires to pay hefty amount to chauffeurs for changing.
PESTEL Analysis
Political
As NASCAR is working in numerous markets so it requires to face different policies. It is likewise noted that NASCAR has actually faced increased examination concerning regulative. Every federal government has various top priority so NASCAR has actually to be prepared for it as concern can be shifted to other sector.
Cost-effective
Financial elements includes tax rate, exchange rate, financial performance of that particular 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 capabilities of staff members to develop brand-new chances and enhance existing opportunities.
Social
Each has various social worths and standards. It assists in comprehending relating to society and choice of customers.
Technical
Innovation has effect on nearly every organisation. It includes innovation in organisation technique. In this case of The Global Water And Food Supply Problem Case Study Solution it can be noted that companies are heavily spending for research and development. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Legal
Legal plays a crucial function in every country due to the fact that every nation has different legal terms. The Global Water And Food Supply Problem Case Study Help needs to be ensure that they protect their legal rights in every county so any business does not damage to its legal rights.
Environmental
Ecological aspects are also important for every company. NASCAR requires to make sure that its cars are not generating contamination more than acceptable level.
7 P's of Marketing
Item
The items of The Global Water And Food Supply Problem Case Study Solution in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Cost.
Pricing technique of NASCAR for its race events tickets is based upon the location and significance of the racing events. Along with race events tickets, NASCAR likewise charge various service fees to its stakeholders and earns revenue. For instance it charged approving costs of $1-2 million per race on average in 2005.
Promotion.
Advertising method 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.
Place.
NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in most of the cities in United States to grasp across the country appeal.
People.
Nestle people method is comprised of offering better experience to its audiences, its fan base and to all of its stakeholders. People are an important element of The Global Water And Food Supply Problem Case Study Analysis A marketing strategy as its occasions are the source of entertainment for crowd. Its individuals method includes efforts to offer much better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals strategy of NASCAR.
Processes.
A number of service procedures are required to conduct racing occasions in an effective way. These procedures include; appropriate schedule of time, arrangement for viewers, selling tickets, arrangement of space for sponsors, handling logistics etc. These all processes contribute I constructing NASCAR image, improving spectators experience and increasing fan base.
Physical Evidence.
Crucial physical evidences for the NASCAR consists of the presence of its racing tracks, stock vehicles and racing occasions. In addition to it, its merchandising brand names including tee shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.
Product Life Cycle Evaluation.
The racing events by The Global Water And Food Supply Problem Case Study Analysis 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 first phase competitors for NASCAR was low, as the competitors drove the cars similar to the automobiles driven by common individuals.
Development.
The first NASCAR based track, namely the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the business moved towards broadcasting its races on tv in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he changed NASCAR from a local Sport popular company into one with worldwide fan base. He initiated a brand-new age of rewarding sponsorships and tv contracts for NASCAR.
Maturity.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having wide range of revenue sources. The company has about 500 sponsors with transmitting its occasions in about 150 countries. The company has large number of tracks in most of the cities of United States.
Decrease.
The significant causes of decrease consist of the monetary crisis of 2008, which increased the cost of getting here at tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.
Market Segmentation.
The market division of The Global Water And Food Supply Problem Case Study Solution can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographic.
The geographical division of The Global Water And Food Supply Problem Case Solution is based upon the geographical presence of its tracks in different states and cities in United States, and the television broadcasting of its occasions in various 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 business regional as well as international fan base.
Demographic.
The market division of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the consumer. Its current fan base is majorly comprised of male married fans with an average age of 47 years and an income around $30-50 thousands. However currently NASCAR is trying to increase its target audience to the young growing population and kinds as well. To increase the demographic section of its market NASCAR must revise its marketing techniques to attract more age and lower its rates to enter in the marketplace sector with a low average earnings.( htt1).
Psychographic.
The mental qualities of most of the fans are rather similar. NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races as soon as in a week. 71% of them choose to buy products with a NASCAR brand name. They are rather extrovert and are willing to join other fans while racing. They desire quality racing with low price at practical place. NASCAR has actually tried to increase the quality of its racing by introducing phase racing, they also have actually tried to lower costs and make the occasion more convenient by introducing live racing.
Behavioural.
Behavioural division of The Global Water And Food Supply Problem Case Study Solution is based upon the behaviour of fans in regards to viewing the race live on the tv or by entering the events. Currently, the fans preference is towards viewing the race at home on television instead of going, as the customer experience at NASCAR tracks is not favourable along with costly. This choice makes the rates for presence lower than the rates for television audiences. NASCAR has to change the behaviour of its fan base by introducing qualitative services at its tracks.
Target Market.
Hispanics.
Among the prospective target market of The Global Water And Food Supply Problem Case Study Solution was Hispanics; the young and growing population of United States. The marketplace sector has great possible for NASCAR as the population was growing at a higher rate and it was anticipated to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The segment shows affinity with cars and truck culture, but require a more focused marketing towards inviting the section towards racing.
Kids.
Kids are also one of the potential target market sector for NASCAR, as they are more linked socially than other groups. Cars and truck racing games developed by The Global Water And Food Supply Problem Case Study Analysis can be a prospective source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and enhancing its digital functions to bring in the kids target market.
Generation Y.
Generation Y target market includes those who invested five times more resources on discretionary costs i.e. buying tickets for racing events, than others. This substantial expenditure makes the section capacity for NASCAR marketing strategy of increasing its fan base. The market sector is also easy to technique as 81% of the Y Generation customer uses Facebook every day and the use is twice of using tv and radio. The market sector views sports as a social occasion, instead of adherence to sport. The marketplace sector thinks about NASCAR as an organization lacking in developing a multiculturalism environment. The Global Water And Food Supply Problem Case Study Analysis should take various steps to enhance the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions concerning marketing.
Climate/Context.
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 ecological and is stated above.
Company.
The Global Water And Food Supply Problem Case Study Help is a car racing company with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports group and occasions.
Cooperations.
Collaborations consists of suppliers, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million each year 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.
Clients.
The client of The Global Water And Food Supply Problem Case Study Solution are its audiences. They target clients 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 develop generational commitment.
Competitors.
The direct rivals of NASCAR are Formula 1 and Moto GP. Groups typically represents sponsors in NASCAR and the medium of advertising is motorists. It can be stated that chauffeurs and race cars and trucks are rivals. If they got better opportunity in terms of prizes and television exposure, these drivers can go against NASCAR.
Marketing Strategies.
1. Preserving and establishing Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population segment of USA but regrettably NASCAR had been not able to draw in the this targeted sector. It ought to develop a Facebook page consisting of the information relating to the races and the locations of tracks to make the consumer useful about the core operations of NASCAR.
2. Developing and Updating Accounts of Secret Drivers.
The Global Water And Food Supply Problem Case Study Solution motorists has a low star power as compare to gamers of other sports. The poor contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is a crucial aspect for attracting viewers towards tracks and towards television.
3. Establishing New Games and enhancing existing games for kids.
Kids spent the majority of their time on playing video games and utilizing smart devices. Regrettably, 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 attract these kids, NASCARA should improve its existing racing games by presenting customization in the automobiles i.e. changing colours, selection of speed, introducing group racing in the game, using better graphics connected to the racing tracks and introducing various levels in the video game. All these modifications in the present video game would supply better experience to kids.
Together with it, NASCAR must likewise develop new games connected to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between different animation characters with an option of picking the favourite animation character for the kids. These strategies would make it possible for the company to attract one of its possible target sections.
4. Presenting multiculturalism at events.
The Global Water And Food Supply Problem Case Study Analysis events are comprised of fans with really few multiculturalism, due to cost of arrival in events, making it unsightly for the clients viewing sport events as social occasions i.e. Generation Y clients. As the Generation Y customers are a potential target market for NASCAR, for that reason the business must take certain steps to attract this possible target market. It ought to adopt techniques to draw in the clients far from the tracks place with different culture. The technique to do so could be providing special discount rates on tickets or totally free tickets to audiences coming from a particular range or from another state. It would increase multiculturalism of the fans and would make Generation Y clients more satisfied.
5. Improving Consumer Experience at Tracks.
NASCAR needs to work on facilities and amenities at tracks because on the race day audiences got dissatisfied. Audiences have numerous expectations from The Global Water And Food Supply Problem Case Study Analysis due to the fact that in same market other companies are providing better services than NASCAR. IF NASCAR do not work on this problem then its fans may moved to its rivals.
Marketing Spending plan
Marketing spending plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, reveals the expense related information for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of improving consumer experience at tracks would need highest initial financial investment and expense and strategy 4 of presenting multiculturalism will need least expensive preliminary investment with least expensive further annually expense. The company must prioritize the resource allowance on these strategies on the basis of its available resources and the possible benefits which the technique would provide.
NOTE: The worths about expense are presumed on logical basis due the absence of realities and figures connected to cost in the case study. Inflation rate of United States is assumed to be 10%.
Recommendations.
On the basis of deep analysis of the external and internal aspects of The Global Water And Food Supply Problem Case Study Solution triggering the decline of television viewership rate and presence rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long run. These methods would cope with internal elements like poor customer experience at tracks, inadequate social media marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, in addition to with external factors like moving of fans towards other sports, demographical modifications in America and changing domesticity styles.
