The Good Commissioner Case Study Solution and Analysis
Introduction
The Good Commissioner Case Study Help (National Association for Stock Cars And Truck Car Racing) is an organization conducting series of Stock Car racing in United States and functioning as a sanctioning body for driving the guidelines for Stock Car Racing. The organization was founded in 1947, by "Big Bill" France. NASCAR arrange Stock Automobile Racing occasions in United States with the presence of about 130000 audiences usually in 2005. It likewise relayed its events in about 150 countries. Stock Car Racing by NASCAR is the second largest spectator sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of revenue for The Good Commissioner Case Study Solution includes; 10% of the overall earnings from tv rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist approach. The building of Car of Tomorrow by NASCAR, with an intention of safety for the chauffeurs, brought various tensions amongst the stakeholders of the sport.
The communication audit, carried out in 2010, revealed that regardless of the fact that the business extremely depend on the communications in between its stakeholders, there was no recognizable company interaction strategy. The market's target clients, instructions and objectives were all unknown.
The audit pointed out different doing not have of NASCAR in terms of absence of internal combination, absence of fan management technique and lack of social and digital media of marketing.
The Good Commissioner Case Study Help viewers was extremely faithful to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate marketers.
Problem Declaration.
The business is presently dealing with the problem of declining rates of participation at racing tracks and rates of tv audiences. This can put a significant influence on its revenues from sponsors, media rights, and from other sources of profits.
Situational Analysis.
Although the company was quite successful till 2005 with its conventional marketing techniques, however not long after 2005 the business starts facing different issues consisting of decline of its fan base. Several external in addition to internal aspects are accountable for the decline. Internal factors include; insufficient investment in social networks and other digital medias of.
Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and produce generational loyalty. However the family system in America was altering resulting in reduction of influence of married male fan base over their youngsters. In addition to it understandings about automobile was likewise altering with viewing car a vehicle to reach at point B from point A, instead of as a fun task. Other challenges for The Good Commissioner Case Study Solution includes the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc. These all obstacles were tending the company to modify its marketing methods.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths defined as business's qualities which are various from its competitors. These are business's core competencies on which company efficiency or company success based on. The Good Commissioner Case Study Solution core proficiencies includes it has rights of dictating rules as approving body. Rules and policies regarding professional stock vehicle racing are dictated by NASCAR like if any group with required skills and resources can enter into races by following guidelines and regulations determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths also 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 relay in more than 150 countries around the globe with more than $56 million profits. The main sources of their profits originate from tv rights, sanctioning 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 likewise large resource of fans and corporate sponsors. All the occasions of NASCAR are sponsored by corporates due to the fact that of biggest brand commitment of fans towards brand names promoted by The Good Commissioner Case Study Help. (See Appendix A).
Weaknesses.
Weak points of NASCAR includes its close culture which is non collaborative. The Good Commissioner Case Study Analysis establishes Vehicle of Tomorrow without partnership so result is that motorists did not like that idea. It was likewise found that NASCAR had no effective strategy for service communication.
Opportunities.
NASCAR normally utilized to rely on conventional media sources like local paper for publicity of its sports. NASCAR also came to know from these traditional media outlets that sport was challenging to cover. When sports fans were asked concerning popular celebrities and stars then NASCAR motorist was not found even in leading twenty actions.
Threats
Economic down turn was experienced in late 2000 which can be risk for NASCAR due to the fact that if there is economic down turn then people would be having less return on financial investment. Economic down turn likewise results in increase fuel rates which also impacted NASCAR. Now if NASCAR make significant financial investments in brand-new segments which are based on new consumers then it may deal with unfavorable comments from its core fan base.
Porter's 5 Forces Analysis
It is important to understand industry in which business is working since NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are used to recognize profitability, strength and attractiveness of NASCAR organisation.
Competitive Competition
This force shows capability of competitors. Groups normally represents sponsors in NASCAR and the medium of advertising is drivers. It can be said that motorists and race cars are rivals. These chauffeurs can go against NASCAR if they improved chance in regards to prizes and television direct exposure. If viewers enjoy other race cars and trucks and drivers more than NASCAR then viewers can shift to those other fascinating cars and trucks and chauffeurs. NASCAR could be having threat from its two direct rivals that is Formula 1 and Moto GP. They require to produce competitive benefits for chauffeurs so they do not shift to other competitors.
Supplier Power
If company shifts from one supplier to another, the supplier power suggests the number of providers are offered in market and what is the expense associated with supplier. In this industry there is supply monopoly since chauffeurs with needed skills and resources are restricted.
Purchaser Power
This force is concerning to clients that is it easy for clients to move to other products. Then clients are less likely to change, if there is more changing expense is associated. In the case of NASCAR customers are its audiences. Audiences can change to other competitors quickly because viewers will having low switching expense.
Danger of Replacement
Alternatives are referred as alternatives. The alternatives in this case can be other home entertainment indicates like viewers can shift to other sports. So there are vast array of alternatives are available in this situation which suggests that danger of substitute is high.
Threat of New Entry
In the case of NASCAR hazard of new entry is low. They need to construct cars and trucks and racing tracks and also requires to pay large amount to motorists for changing.
PESTEL Analysis
Political
As NASCAR is working in different markets so it requires to face different policies. It is likewise noted that NASCAR has faced increased examination relating to regulatory. Every federal government has different concern so NASCAR has actually to be prepared for it as top priority can be moved to other sector.
Cost-effective
Financial elements includes tax rate, currency exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be affected if there is government intervention in the marketing and sales sector. NASCAR can take advantage of capabilities of staff members to produce new chances and enhance existing chances.
Social
Every society is various from each other. Each has various social values and standards. It assists in comprehending concerning society and choice of clients. Social aspects consists of traditions, culture, mindsets towards particular product and services, demographics, norms, interests and so on. It can be concluded that marketing through other methods rather than traditional (i.e. paper) can be chosen in this society.
Technical
Innovation has impact on nearly every company. It consists of innovation in business strategy. In this case of The Good Commissioner Case Study Analysis it can be kept in mind that companies are greatly investing for research and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Legal
Legal plays an important role in every country because every country has various legal conditions. The Good Commissioner Case Study Solution requires to be make sure that they secure their legal rights in every county so any company does not hurt to its legal rights.
Environmental
Environmental factors are also important for each organisation. Since usually governments do not permit those service which can harm to environment. These environmental elements includes laws regarding contamination, climate modification, safe garbage disposal, policies concerning insurance etc. NASCAR requires to make sure that its vehicles are not generating contamination more than appropriate level.
7 P's of Marketing
Product
The items of The Good Commissioner Case Study Help in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Cost.
Prices strategy of NASCAR for its race events tickets is based upon the location and value of the racing events. In addition to race occasions tickets, NASCAR also charge numerous service charge to its stakeholders and makes earnings. It charged sanctioning charges of $1-2 million per race on average in 2005.
Promo.
Marketing technique of The Good Commissioner Case Study Help 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 company is not entirely relied upon its fan base for its promo and promote through local radio stations too. The business has actually also embraced the retailing media of promo, in which the business offers products with its logo design.
Place.
NASCAR have its racing tracks in different cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to comprehend nationwide popularity.
People.
Nestle individuals strategy is consisted of providing better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential aspect of The Good Commissioner Case Study Solution A marketing technique as its events are the source of entertainment for crowd. Its people method includes efforts to provide much better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under individuals strategy of NASCAR.
Processes.
A number of company processes are required to perform racing events in an efficient method. These procedures include; proper schedule of time, arrangement for viewers, offering tickets, plan of space for sponsors, handling logistics and so on. These all processes contribute I constructing NASCAR image, enhancing spectators experience and increasing fan base.
Physical Evidence.
Essential physical proofs for the NASCAR includes the presence of its racing tracks, stock vehicles and racing occasions. Along with it, its retailing brand names including tee shirts, caps, goodies and so on, likewise act as a physical evidence for NASCAR.
Item Life Cycle Evaluation.
The racing events by NASCAR was presented on June 19, 1949. At the very first stage competition for NASCAR was low, as the rivals drove the cars and trucks similar to the automobiles driven by ordinary people.
Development.
After conducting its first race successfully the company moved towards developing its own tracks. The very first The Good Commissioner Case Study Help based track, particularly the Darlington Raceway track, was started 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 business moved towards broadcasting its races on television in 1979. The first occasion relayed on television 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 local Sport popular organization into one with worldwide fan base. He initiated a new era of lucrative sponsorships and television contracts for NASCAR.
Maturity.
The maturity period for NASCAR started with the efforts of William France Jr., with the business having wide variety of profits sources. The business has about 500 sponsors with relaying its occasions in about 150 nations. The company has a great deal of tracks in most of the cities of United States.
Decrease.
The significant causes of decrease consist of the financial crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.
Market Segmentation.
The market division of The Good Commissioner Case Study Solution can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical segmentation of The Good Commissioner Case Help is based upon the geographical existence of its tracks in different states and cities in United States, and the tv broadcasting of its events in various countries. The business has 23 tracks in about 20 states of America and has television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division offers the business regional as well as international fan base.
Demographic.
The group division of NASCAR is also highlydiverse based upon the gender, income and age of the consumer. Its existing fan base is majorly consisted of male married fans with an average age of 47 years and an income around $30-50 thousands. Presently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the demographic sector of its market NASCAR ought to modify its marketing strategies to attract more age and lower its rates to go into in the market sector with a low average earnings.( htt1).
Psychographic.
The psychological characteristics of the majority of the fans are rather similar. NASCAR has a fan base with a loyalty. As soon as in a week, NASCAR fans perceive it compulsive to buy tickets and see the races. 71% of them choose to purchase items with a NASCAR brand. They are rather extrovert and want to join other fans while racing. They desire quality racing with low price at practical area. Although The Good Commissioner Case Study Analysis has tried to increase the quality of its racing by presenting stage racing, they likewise have actually tried to lower prices and make the event easier by introducing live racing.
Behavioural.
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 choice is towards watching the race at house on television rather than going, as the client experience at NASCAR tracks is not favourable as well as expensive.
Target Market.
Hispanics.
One of the prospective target audience of The Good Commissioner Case Study Help was Hispanics; the young and growing population of United States. The market segment has excellent prospective for NASCAR as the population was growing at a greater rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The section shows affinity with car culture, but require a more concentrated marketing towards welcoming the segment towards racing.
Kids.
Kids are likewise one of the possible target market sector for NASCAR, as they are more connected socially than other groups. Car racing video games established by The Good Commissioner Case Study Solution can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and improving its digital functions to attract the kids target market.
This big expenditure makes the section capacity for NASCAR marketing method of increasing its fan base. The market section thinks about NASCAR as a company lacking in producing a multiculturalism environment. NASCAR needs to take various steps to improve the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing assists in taking choices regarding marketing.
Climate/Context.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE means political, economic, social, technical, environmental and legal and is mentioned above.
Business.
The Good Commissioner Case Study Solution is a car racing company with having USP of high quality vehicle racing with a global structure. Its sector is sports group and occasions.
Cooperations.
Collaborations includes distributors, suppliers and alliances of The Good Commissioner Case Study Help. It is teamed up with various racing teams which are taking part in racing. It also teamed up with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million every year from Turner Sports. There are number of cons behind this offer. For example NASCAR had to get approval from Turner Sport if it wish to produce its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of each and every single video which is shoot during race at track.
Customers.
The customer of The Good Commissioner Case Study Analysis are its audiences. They target clients 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 create generational loyalty.
Competitors.
Groups normally represents sponsors in NASCAR and the medium of advertising is drivers. These drivers can go against NASCAR if they got better opportunity in terms of prizes and tv direct exposure.
Marketing Strategies.
1. Developing and Keeping Facebook Page.
One of the potential target markets segments for NASCAR is Hispanics which is the growing population section of USA but unfortunately NASCAR had been unable to bring in the this targeted sector. It ought to develop a Facebook page consisting of the details regarding the races and the locations of tracks to make the customer useful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Key Drivers.
The Good Commissioner Case Study Analysis 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 drawing in viewers towards tracks and towards tv.
3. Establishing New Games and improving present video games for kids.
Kids invested the majority of their time on playing games and utilizing mobile phones. Regrettably, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less brought in towards the sport. In order to draw in these kids, NASCARA should enhance its present racing video games by presenting personalization in the automobiles i.e. altering colours, choice of speed, presenting group racing in the game, utilizing much better graphics connected to the racing tracks and introducing numerous levels in the video game. All these adjustments in the present video game would offer much better experience to kids.
In addition to it, NASCAR must likewise construct brand-new video games related to racing like kids racing with kids characters as chauffeurs, animation racing with racing between numerous cartoon characters with an option of selecting the preferred cartoon character for the kids. These methods would allow the company to draw in among its potential target sectors.
4. Introducing multiculturalism at events.
The Good Commissioner Case Study Solution events are comprised of fans with very couple of multiculturalism, due to expense of arrival in occasions, making it unattractive for the clients perceiving sport occasions as get-togethers i.e. Generation Y consumers. As the Generation Y customers are a possible target audience for NASCAR, for that reason the company should take certain measures to attract this prospective target market. It needs to embrace techniques to draw in the clients far from the tracks area with various culture. The method to do so might be supplying unique discounts on tickets or complimentary tickets to viewers coming from a specific range or from another state. It would increase cultural diversity of the fans and would make Generation Y clients more pleased.
5. Improving Customer Experience at Tracks.
NASCAR should work on infrastructure and amenities at tracks because on the race day viewers got disappointed. Viewers have many expectations from The Good Commissioner Case Study Analysis since in exact same market other companies are supplying better services than NASCAR. IF NASCAR don't work on this problem then its fans might moved to its competitors.
Marketing Budget
Marketing budget plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, reveals the cost associated data for the marketing techniques. It can be seen that method 5 of enhancing client experience at tracks would require highest initial investment and cost and technique 4 of introducing multiculturalism will require most affordable preliminary investment with least expensive even more per year cost.
KEEP IN MIND: The values about expense are presumed on logical basis due the absence of figures and truths connected to cost in the case research study. Inflation rate of United States is presumed to be 10%.
Recommendations.
On the basis of deep analysis of the external and internal factors of The Good Commissioner Case Study Solution causing the decline of television viewership rate and presence rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long run. These techniques would cope with internal aspects like bad client experience at tracks, inadequate social networks 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 changing family life designs.
