The Global Water And Food Supply Problem Case Study Solution & Analysis
NASCAR (National Association for Stock Car Vehicle 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 Cars and truck Racing. 2) Stock Car Racing by NASCAR is the second largest viewer sport, with highest number of sponsors. 1) The other sources of profits for The Global Water And Food Supply Problem Case Study Analysis includes; 10% of the overall profits from television rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed business culture with the non-interventionist method. The building of Automobile of Tomorrow by NASCAR, with an objective of security for the chauffeurs, brought different tensions amongst the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that regardless of the truth that the service extremely rely on the interactions between its stakeholders, there was no identifiable company interaction method. (
The audit explained different lacking of NASCAR in terms of lack of internal integration, lack of fan management strategy and absence of digital and social media of marketing. The business has complicated ecosystem with independent tracks, teams and motorists. This structure with closed business culture bring numerous obstacles in speeding up a modification. Other partners in community includes the media networks i.e. television and radio, and corporate marketers.
The Global Water And Food Supply Problem Case Study Solution audiences was extremely devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate marketers.
The business is currently facing the problem of decreasing rates of attendance at racing tracks and rates of tv viewers. This can put a considerable impact on its profits from sponsors, media rights, and from other sources of income.
The company was rather effective till 2005 with its traditional marketing techniques, however soon after 2005 the business starts dealing with numerous issues including decline of its fan base. Numerous external in addition to internal aspects are accountable for the decrease. Internal aspects include; insufficient financial investment in social media 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 produce generational loyalty. But the family system in America was changing leading to decrease of impact of married male fan base over their children. Along with it perceptions about cars and truck was also altering with perceiving car a vehicle to reach at point B from point A, instead of as a fun task. Other challenges for The Global Water And Food Supply Problem Case Study Analysis includes the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, and so on. These all obstacles were tending the business to revise its marketing strategies.
In SWOT analysis, strengths specified as business's qualities which are various from its rivals. These are company's core competencies on which company efficiency or company success based upon. The Global Water And Food Supply Problem Case Study Analysis core competencies includes it has rights of dictating rules as approving body. Regulations and rules relating to expert stock automobile racing are determined by NASCAR like if any group with needed abilities and resources can participate in races by following rules and policies determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to relay in more than 150 countries all over the world with more than $56 million profits. The primary sources of their earnings come from television rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and business sponsors. Due to the fact that of most significant brand name loyalty of fans towards brand names marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses of NASCAR includes its close culture which is non collective. The Global Water And Food Supply Problem Case Study Analysis develops Vehicle of Tomorrow without cooperation so result is that chauffeurs did not like that principle. It was likewise discovered that NASCAR had no efficient method for company communication.
NASCAR typically utilized to rely on standard media sources like regional newspaper for promotion of its sports. NASCAR also came to understand from these conventional media outlets that sport was difficult to cover. When sports fans were asked concerning popular stars and stars then NASCAR chauffeur was not found even in top twenty responses.
Economic down turn was experienced in late 2000 which can be threat for NASCAR because if there is financial down turn then individuals would be having less return on investment. Economic down turn also results in boost fuel costs which likewise impacted NASCAR. Now if NASCAR make considerable financial investments in new segments which are based on new clients then it may deal with unfavorable remarks from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is utilized to analyse industry in which company is working. It helps in determining what are strengths and weakness of any particular industry. It recommend that every market is various from one another. It is necessary to comprehend industry in which company is working due to the fact that NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to recognize profitability, strength and beauty of The Global Water And Food Supply Problem Case Study Solution service.
This force suggests capability of competitors. Teams usually represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be said that drivers and race cars and trucks are competitors. These drivers can break NASCAR if they improved chance in terms of rewards and tv exposure. If viewers enjoy other race vehicles and chauffeurs more than NASCAR then audiences can shift to those other intriguing cars and trucks and drivers. NASCAR might be having risk from its 2 direct competitors that is Formula 1 and Moto GP. They require to develop competitive benefits for drivers so they do not shift to other rivals.
If company shifts from one supplier to another, the supplier power suggests the number of suppliers are readily available in industry and what is the cost associated with provider. Because drivers with needed skills and resources are restricted, in this market there is supply monopoly.
This force is concerning to clients that is it easy for consumers to shift to other products. If there is more changing expense is associated then consumers are less most likely to switch. In the case of NASCAR consumers are its viewers. Audiences can switch to other competitors quickly because audiences will having low changing cost.
Danger of Substitution
Alternatives are referred as options. The replacements in this case can be other entertainment suggests like audiences can move to other sports. There are large variety of replacements are available in this situation which suggests that risk of substitute is high.
Risk of New Entry
It is specified as how it is easy for any business to enter in that particular industry. When it comes to The Global Water And Food Supply Problem Case Study Solution danger of new entry is low. Due to the fact that if any company requires to go into in this business than they need to make heavy investments. They require to construct automobiles and racing tracks and likewise requires to pay large amount to motorists for switching.
As NASCAR is working in different markets so it needs to deal with different policies. It is also kept in mind that NASCAR has actually dealt with increased examination concerning regulative. Every federal government has different top priority so NASCAR has actually to be prepared for it as top priority can be moved to other sector.
Economic aspects includes taxation rate, currency exchange rate, economic performance of that specific company, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can leverage abilities of employees to create new opportunities and improve existing chances.
Each has various social values and standards. It helps in understanding relating to society and preference of clients.
Innovation has effect on almost every business. It includes innovation in business technique. In this case of The Global Water And Food Supply Problem Case Study Analysis it can be noted that companies are greatly investing for research study and development. NASCAR should also work on its media rights policy with Turner Broadcasting System.
Due to the fact that every country has different legal terms and conditions, Legal plays a crucial role in every nation. The Global Water And Food Supply Problem Case Study Solution requires to be ensure that they secure their legal rights in every county so any company does not hurt to its legal rights.
Ecological factors are likewise essential for every single organisation. Due to the fact that usually governments don't allow those organisation which can hurt to environment. These ecological elements consists of laws relating to pollution, climate modification, safe garbage disposal, policies regarding insurance coverage and so on. NASCAR needs to make sure that its vehicles are not creating contamination more than acceptable level.
7 P's of Marketing
The items of The Global Water And Food Supply Problem Case Study Solution in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race events tickets is based upon the location and value of the racing events. Together with race occasions tickets, NASCAR likewise charge numerous service fees to its stakeholders and makes earnings. For instance it charged sanctioning costs of $1-2 million per race usually in 2005.
Advertising strategy of The Global Water And Food Supply Problem Case Study Solution is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. The business is not totally relied upon its fan base for its promotion and promote through regional radio stations too. The company has actually also adopted the merchandising media of promotion, in which the company offers merchandises with its logo.
NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle 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 comprehend across the country popularity.
Nestle individuals method is consisted of supplying much better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial aspect of The Global Water And Food Supply Problem Case Study Help A marketing strategy as its events are the source of entertainment for crowd. Its people technique consists of efforts to supply much better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under individuals strategy of NASCAR.
Several business procedures are required to conduct racing events in an efficient way. These processes consist of; correct schedule of time, arrangement for spectators, selling tickets, arrangement of area for sponsors, managing logistics and so on. These all processes contribute I developing NASCAR image, improving spectators experience and increasing fan base.
Essential physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing occasions. Along with it, its retailing brands including tee shirts, caps, goodies etc., likewise serve as a physical proof for NASCAR.
Item Life Process Assessment.
The racing occasions by NASCAR was introduced on June 19, 1949. At the very first phase competition for NASCAR was low, as the rivals drove the vehicles comparable to the vehicles driven by normal individuals.
The very first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the company moved towards relaying its races on television in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he changed NASCAR from a regional Sport popular organization into one with global fan base. He initiated a brand-new period of profitable sponsorships and television agreements for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide variety of income sources. The company has about 500 sponsors with broadcasting its events in about 150 nations. The business has large number of tracks in most of the cities of United States.
The decline in the business's offerings began after 2005 with typical participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The significant reasons for decline include the monetary crisis of 2008, which increased the cost of coming to tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.
The market division of The Global Water And Food Supply Problem Case Study Help can be divided into 4 segments; 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 presence of its tracks in various states and cities in United States, and the tv broadcasting of its events in different nations. The business 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 huge geographical segmentation offers the business local as well as global fan base.
The demographic segmentation of The Global Water And Food Supply Problem Case Study Help is also highlydiverse based upon the gender, income and age of the customer. To increase the market section of its market NASCAR need to modify its marketing strategies to bring in more age groups and lower its prices to enter in the market sector with a low average income.
The mental characteristics of most of the fans are quite similar. NASCAR has a fan base with a commitment. When in a week, NASCAR fans perceive it compulsive to buy tickets and see the races. 71% of them choose 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 convenient location. Although The Global Water And Food Supply Problem Case Study Help has actually tried to increase the quality of its racing by introducing stage racing, they also have actually tried to lower costs and make the event easier by presenting live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of viewing the race live on the television or by going in the occasions. Presently, the fans choice is towards viewing the race at house on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as pricey.
One of the potential target market of The Global Water And Food Supply Problem Case Study Analysis was Hispanics; the young and growing population of United States. The marketplace sector has excellent 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 sector has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the section reveals affinity with cars and truck culture, however need a more focused marketing towards inviting the section towards racing.
Kids are also one of the possible target market section for NASCAR, as they are more linked socially than other groups. Cars and truck racing games established by The Global Water And Food Supply Problem Case Study Solution can be a potential source of getting attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and enhancing its digital features to bring in the kids target market.
Generation Y target audience includes those who spent 5 times more resources on discretionary costs i.e. acquiring tickets for racing occasions, than others. This big expenditure makes the section capacity for NASCAR marketing strategy of increasing its fan base. The market sector is likewise easy to technique as 81% of the Y Generation consumer uses Facebook every day and the usage is twice of using television and radio. The marketplace section views sports as a get-together, instead of adherence to sport. The marketplace segment thinks about NASCAR as a company doing not have in producing a multiculturalism atmosphere. The Global Water And Food Supply Problem Case Study Analysis must take various actions to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking choices regarding marketing.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE means political, financial, social, technical, ecological and legal and is stated above.
The Global Water And Food Supply Problem Case Study Solution is an auto racing business with having USP of high quality car racing with an international structure. Its sector is sports team and occasions.
Collaborations consists of suppliers, 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 client of The Global Water And Food Supply Problem Case Study Analysis are its viewers. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and develop generational commitment.
Teams typically represents sponsors in NASCAR and the medium of advertising is drivers. These drivers can go versus NASCAR if they got better opportunity in terms of prizes and television exposure.
1. Developing and Preserving Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population section of U.S.A. but unfortunately NASCAR had been not able to draw in the this targeted section. It must establish a Facebook page containing the details relating to the races and the locations of tracks to make the consumer helpful about the core operations of NASCAR.
2. Developing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibit). The major reason behind it is that, the racers mainly play in teams and are unable to build a crucial account and preserve a close contact with fans. The bad contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is a crucial factor for drawing in viewers towards tracks and towards tv. The star power for the chauffeurs at NASCARA might be improved by developing and updating accounts of crucial motorists by NASCARA itself. This would get rid of the requirement of requiring motorists to maintain their accounts and would lead to increasing fans attention towards NASCARA drivers.
3. Establishing New Games and improving existing games for kids.
Kids spent most of their time on playing video games and using smartphones. But unfortunately, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less drawn in towards the sport. In order to attract these kids, NASCARA ought to enhance its current racing video games by presenting modification in the cars and trucks i.e. changing colours, selection of speed, introducing group racing in the game, using better graphics associated with the racing tracks and presenting various levels in the game. All these adjustments in the present video game would supply better experience to kids.
In addition to it, NASCAR must likewise construct new games connected to racing like kids racing with kids characters as drivers, animation racing with racing between various cartoon characters with a choice of picking the favourite animation character for the kids. These techniques would enable the business to attract one of its prospective target sections.
4. Presenting multiculturalism at occasions.
NASCAR events are made up of fans with really few cultural diversity, due to expense of arrival in events, making it unappealing for the customers viewing sport occasions as social celebrations i.e. Generation Y clients. As the Generation Y clients are a prospective target market for NASCAR, for that reason the company should take particular procedures to attract this prospective target market.
5. Improving Customer Experience at Tracks.
Since on the race day viewers got dissatisfied, NASCAR ought to work on facilities and amenities at tracks. Since in same industry other companies are offering better services than NASCAR, audiences have numerous expectations from The Global Water And Food Supply Problem Case Study Analysis. Then its fans might shifted to its competitors, if NASCAR do not work on this concern. According to fans there were not sufficient facilities were offered as compare to other sports providers. NASCAR should make sure that it provide adequate facilities that includes cleaned up bathrooms, comfortable seating plan. They ought to likewise offer WIFI services and accessibility of charge card throughout that track. It ought to be also make certain that there are enough jumbo turns positioned at all needed locations. There ought to be also food stalls that provide quality food to viewers. In this way viewers will be having pleasant experience at the day of occasion. (See Appendix B).
Marketing Spending plan.
Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, shows the expense related data for the marketing techniques. It can be seen that technique 5 of enhancing client experience at tracks would require highest preliminary investment and expense and technique 4 of presenting multiculturalism will need least expensive preliminary investment with most affordable even more per year cost.
NOTE: The values about cost are presumed on rational basis due the absence of truths and figures associated with cost in the event research study. Inflation rate of United States is assumed 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 Help triggering the decline of tv viewership rate and presence rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long run. These methods would deal with internal factors like poor customer experience at tracks, inadequate social media marketing, incapable digital medias like games, lack of culturalisms at tracks etc., along with with external aspects like moving of fans towards other sports, demographical modifications in America and changing family life styles.