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The Good Commissioner Case Study Solution and Analysis


Introduction

NASCAR (National Association for Stock Cars And Truck Auto Racing) is an organization carrying out series of Stock Vehicle racing in United States and acting as an approving body for driving the rules for Stock Car Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd largest spectator sport, with greatest number of sponsors. 1) The other sources of revenue for The Good Commissioner Case Study Help consists of; 10% of the overall revenue from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed business culture with the non-interventionist approach. This non collective technique brings tensions in the sport. The structure of Vehicle of Tomorrow by The Good Commissioner Case Study Help, with an intention of security for the drivers, brought various stress amongst the stakeholders of the sport.

The communication audit, performed in 2010, exposed that despite the truth that the business extremely depend on the interactions in between its stakeholders, there was no identifiable company interaction method. The market's target clients, direction and objectives were all unidentified.

The audit pointed out numerous doing not have of NASCAR in terms of lack of internal combination, lack of fan management method and absence of social and digital media of marketing.

The Good Commissioner Case Study Analysis audiences was highly loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business online marketers.

Issue Statement.

The company is presently facing the problem of decreasing rates of participation at racing tracks and rates of television viewers. This can put a significant influence on its incomes from sponsors, media rights, and from other sources of income.

Situational Analysis.

Although the company was rather effective till 2005 with its conventional marketing methods, however soon after 2005 the company starts dealing with numerous issues consisting of decline of its fan base. A number of external in addition to internal factors are responsible for the decrease. Internal factors consist of; insufficient 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 youngsters and create generational commitment. The household system in America was altering resulting in decrease of influence of married male fan base over their children. Along with it understandings about vehicle was also changing with perceiving automobile a car to reach at point B from point A, rather than as a fun task. Other difficulties for The Good Commissioner Case Study Analysis 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 homes through jumbo turns, Wi-Fi access, etc. These all difficulties were tending the company to revise its marketing strategies.

SWOT Analysis.

Strengths.


In SWOT analysis, strengths specified as business's qualities which are different from its competitors. These are business's core competencies on which business performance or business success based on. The Good Commissioner Case Study Solution core competencies includes it has rights of dictating rules as sanctioning body. Policies and guidelines relating to professional stock automobile racing are determined by NASCAR like if any team with needed skills and resources can participate in races by following guidelines and guidelines dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in US. Its races were used to relay in more than 150 nations worldwide with more than $56 million profits. The main sources of their incomes originate from tv rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Outdoor 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 biggest brand commitment of fans towards brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).

Weak points.

Weaknesses in SWOT Analysis are considered as external aspects. Weak points includes the elements that stops company to carry out at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist approach. They usually used to form guidelines and other required processes without intervention of others which leads to bad partnership. For example NASCAR develops Car of Tomorrow without partnership so result is that motorists did not like that principle. As this is racing sport so covering of sports by media is also hard. It was also discovered that NASCAR had no reliable method for business communication. They do not know how to deal with problem if it took place off track. Ineffective service communication results in that they do not have clear instructions for their long term goals. They do not understand that where they want to see this sport in future.

Opportunities.

Opportunities in SWOT analysis are external elements which can be beneficial to business or the external factors on which business is having competitive benefit. NASCAR typically used to rely on traditional media sources like regional newspaper for publicity of its sports. Typically these conventional media sources try to cover their home team and specific type of events. NASCAR also came to know from these conventional media outlets that sport was difficult to cover. Media landscape also changed from standard to digital landscape. Newspapers went out of business. NASCAR can work on its capabilities to get maximum possible gain from this 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 likewise offered to Turner Sports. NASCAR used to get pay check of around $15 million each year from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every single video which is shoot throughout race at track. If media sources like newspapers, magazines and cable channels wish to publish videos of races on their respective pages then they are required to pay licensing fees to Turner Sport. NASCAR can work on terms and conditions and attempt to negotiate with Turner Sports to get optimal benefits of it. Star power plays very important role in generating earnings from every sport. Nevertheless it was noted that The Good Commissioner Case Study Analysis is lagging in this area i.e. star power. When sports fans were asked relating to popular celebs and stars then NASCAR motorist was not found even in leading twenty responses. NASCAR can put efforts in this location too for income generation. They should direct their drivers that how they can become sport stars. 4 strategic focuses which are created by research team can also be functioned as opportunity for NESCAR. These four tactical focuses compares and analysis The Good Commissioner Case Study Solution strategies.

Threats

Risks in SWOT analysis are defined as external elements that can danger to business's success. Economic down turn was experienced in late 2000 which can be risk for NASCAR due to the fact that if there is financial down turn then individuals would be having less roi. Earning of individuals would be effected and they would be more conscious in spending their cash. Economic down turn also leads to increase fuel rates which likewise affected NASCAR. Since fans of NASCAR used to attend its occasion from fars away. NESCAR had a guideline of 65/25/10 for profits distribution. 65 percent incomes from media rights would be dispersed to race course, 25 percent earnings would be dispersed to competing group and remaining 10 percent would be maintained by NESCAR which is sanctioning body. Contending group wished to increase their portion of profits from 25 percent due to the fact that of increase in operating cost of a race team and also there is decrease in the number of full-season sponsorship. NESCAR likewise deals with hazards from other sponsors due to the fact that they are making huge financial investments to improve experience of fans. Which consists of updating existing avenues, developing brand-new opportunities, providing Wi-Fi center and likewise providing other interactive mediums to connect sports on smartphones. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and create generational commitment. So the challenge is that the family system in America was changing leading to reduction of impact of married male fan base over their youngsters. In addition to it understandings about car was likewise changing with viewing vehicle a lorry to reach at point B from point A, instead of as a fun project. Now if The Good Commissioner Case Study Analysis make considerable financial investments in new segments which are based upon brand-new consumers then it may face negative remarks from its core fan base.

Porter's Five Forces Analysis

It is important to understand market in which business is working since NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to determine success, strength and beauty of NASCAR company.

Competitive Competition

This force suggests ability of rivals. Teams generally represents sponsors in NASCAR and the medium of advertising is motorists. It can be stated that drivers and race vehicles are rivals. If they got much better opportunity in terms of rewards and television direct exposure, these drivers can go against The Good Commissioner Case Study Help. If audiences enjoy other race automobiles and chauffeurs more than NASCAR then audiences can shift to those other interesting cars and trucks and chauffeurs. NASCAR could be having hazard from its two direct competitors that is Formula 1 and Moto GP. They need to develop competitive benefits for motorists so they don't shift to other rivals.

Supplier Power

The supplier power indicates the variety of providers are available in industry and what is the cost associated with supplier if business shifts from one supplier to another. Due to the fact that drivers with required resources and skills are restricted, in this industry there is supply monopoly.

Purchaser Power

In the case of NASCAR customers are its audiences. Viewers can change to other competitors quickly because audiences will having low switching cost.

Hazard of Substitution

Substitutes are referred as options. The replacements in this case can be other entertainment means like audiences can shift to other sports. There are broad variety of substitutes are offered in this scenario which recommends that risk of substitute is high.

Threat of New Entry

In the case of NASCAR danger of new entry is low. They need to build vehicles and racing tracks and also needs to pay substantial amount to chauffeurs for switching.

PESTEL Analysis

Political


As NASCAR is working in different markets so it needs to deal with different regulations. It is likewise noted that NASCAR has actually faced increased analysis relating to regulatory. Every federal government has various priority so NASCAR has actually to be prepared for it as priority can be moved to other sector.

Cost-effective

Financial elements includes taxation rate, currency exchange rate, economic efficiency of that specific 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 rivals can be affected. NASCAR can take advantage of capabilities of employees to produce new chances and improve existing opportunities.

Social

Every society is various from each other. Each has different social worths and norms. It helps in understanding regarding society and preference of clients. Social aspects includes customs, culture, mindsets towards specific product and services, demographics, standards, interests etc. It can be concluded that advertising through other methods rather than traditional (i.e. paper) can be chosen in this society.

Technical

Innovation has effect on nearly every organisation. It consists of development in service technique. In this case of The Good Commissioner Case Study Analysis it can be kept in mind that companies are heavily investing for research study and advancement. NASCAR needs to also deal with its media rights policy with Turner Broadcasting System.

Legal

Because every nation has various legal terms and conditions, Legal plays a crucial role in every nation. The Good Commissioner Case Study Solution needs to be make sure that they secure their legal rights in every county so any business does not hurt to its legal rights.

Environmental

Environmental aspects are also crucial for every organisation. Because normally governments don't enable those business which can harm to environment. These ecological aspects includes laws relating to contamination, environment modification, safe waste disposal, policies regarding insurance etc. NASCAR needs to make sure that its cars are not producing contamination more than acceptable level.

7 P's of Marketing

Item

The products of The Good Commissioner Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to corporate online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).

Price.

Pricing method of NASCAR for its race events tickets is based upon the venue and significance of the racing events. In addition to race occasions tickets, NASCAR likewise charge numerous service fees to its stakeholders and earns profits. It charged sanctioning fees of $1-2 million per race on average in 2005.

Promo.

Promotional technique of The Good Commissioner Case Study Analysis is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. However, the company is not entirely relied upon its fan base for its promo and promote through local radio stations too. The company has actually likewise embraced the merchandising media of promotion, in which the company sells products with its logo design.

Place.

NASCAR have its racing tracks in various 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 tries to conduct its races in most of the cities in United States to grasp nationwide appeal.

People.

Nestle people method is comprised of offering better experience to its viewers, its fan base and to all of its stakeholders. Individuals are a crucial element of The Good Commissioner Case Study Solution A marketing strategy as its occasions are the source of home entertainment for crowd. Its people technique consists of efforts to supply much better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals method of NASCAR.

Processes.

Several company procedures are needed to perform racing events in an efficient method. These processes include; proper schedule of time, plan for spectators, selling tickets, arrangement of area for sponsors, managing logistics and so on. These all procedures contribute I building NASCAR image, enhancing spectators experience and increasing fan base.

Physical Evidence.

Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock automobiles and racing events. Together with it, its merchandising brand names consisting of tee shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.

Product Life Process Evaluation.

The racing events by NASCAR was introduced on June 19, 1949. At the first stage competitors for NASCAR was low, as the competitors drove the automobiles similar to the cars driven by common individuals.

Growth.

The very first NASCAR based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards transmitting its races on television in 1979.

In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with global fan base. He started a brand-new age of financially rewarding sponsorships and tv agreements for NASCAR.

Maturity.

The maturity period for NASCAR started with the efforts of William France Jr., with the business having wide variety of earnings sources. The company has about 500 sponsors with broadcasting its occasions in about 150 nations. The business has large number of tracks in the majority of the cities of United States.

Decrease.

The major causes of decrease include the financial crisis of 2008, which increased the cost of getting here at tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Segmentation.

The marketplace segmentation of The Good Commissioner Case Study Help can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographic.

The geographical segmentation of The Good Commissioner Case Help is based upon the geographical existence of its tracks in numerous states and cities in United States, and the television broadcasting of its occasions in different nations. The business 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 company local as well as international fan base.

Market.

The market segmentation of NASCAR is also highlydiverse based upon the gender, income and age of the customer. Its existing fan base is majorly comprised of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the market sector of its market NASCAR must modify its marketing methods to bring in more age and lower its rates to go into in the market sector with a low average earnings.( htt1).

Psychographic.

The psychological attributes of most of the fans are rather comparable. NASCAR has a fan base with a commitment. As soon as in a week, NASCAR fans perceive it compulsive to acquire tickets and see the races. 71% of them prefer to purchase items with a NASCAR trademark name. They are quite extrovert and are willing to join other fans while racing. They desire quality racing with low cost at convenient location. Although The Good Commissioner Case Study Help has actually attempted to increase the quality of its racing by presenting phase racing, they likewise have attempted to lower costs and make the event easier by introducing live racing.

Behavioural.

Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the occasions. Currently, the fans preference is towards viewing the race at house on television rather than going, as the client experience at NASCAR tracks is not beneficial as well as costly.

Target audience.

Hispanics.

One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has fantastic potential for NASCAR as the population was growing at a greater rate and it was expected to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014.

Kids.

Kids are likewise one of the potential target audience segment for NASCAR, as they are more connected socially than other groups. Creating fan base amongst kids can provide a possible increase in the number of fans for racing due to their connection. Kids spend most of their times in using smart devices and playing video games. Automobile racing games developed by The Good Commissioner Case Study Help can be a prospective source of acquiring attention of kids towards NASCAR track racing. However, NASCAR's digital features related to kids are not efficient in acquiring the attention. NASCAR needs more attention towards personalizing and enhancing its digital functions to attract the kids target audience.

This big expenditure makes the section potential for NASCAR marketing method of increasing its fan base. The market section thinks about NASCAR as an organization doing not have in producing a multiculturalism atmosphere. NASCAR ought to take numerous actions to enhance 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.

Climate/Context.

It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE represents political, economic, social, technical, legal and ecological and is mentioned above.

Company.

The Good Commissioner Case Study Analysis is an auto racing business with having USP of high quality auto racing with an international structure. Its sector is sports group and events.

Collaborations.

Collaborations includes suppliers, suppliers and alliances of The Good Commissioner Case Study Help. It is collaborated with various racing groups which are taking part in racing. It also worked together with Turners Sport for digital rights. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. There are number of cons behind this deal. For instance NASCAR had to get approval from Turner Sport if it wish to develop its Facebook page, twitter account and even mobile application. Turner Sport also had rights of every video which is shoot throughout race at track.

Consumers.

The client of The Good Commissioner Case Study Solution are its viewers. 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 produce generational commitment.

Rivals.

Teams typically represents sponsors in NASCAR and the medium of marketing is chauffeurs. These motorists can go against NASCAR if they got better opportunity in terms of rewards and television exposure.

Marketing Strategies.

1. Keeping and establishing Facebook Page.
One of the prospective target markets sectors for NASCAR is Hispanics which is the growing population section of USA but regrettably NASCAR had actually been unable to bring in the this targeted segment. It should develop a Facebook page containing the information regarding the races and the places of tracks to make the customer helpful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibit). The significant reason behind it is that, the racers primarily play in teams and are not able to develop a key account and keep a close contact with fans. The bad contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is an essential aspect for bring in viewers towards tracks and towards tv. The star power for the drivers at NASCARA could be enhanced by creating and updating accounts of essential drivers by NASCARA itself. This would remove the requirement of requiring motorists to preserve their accounts and would result in increasing fans attention towards NASCARA chauffeurs.
3. Establishing New Games and enhancing existing video games for kids.
Kids invested most of their time on playing games and using mobile phones. Unfortunately, kids playing NASCARA have a worst experience of playing its games. As a result, they are less brought in towards the sport. In order to draw in these kids, NASCARA needs to improve its existing racing games by introducing customization in the cars and trucks i.e. altering colours, selection of speed, presenting group racing in the video game, using better graphics associated with the racing tracks and introducing various levels in the video game. All these modifications in the existing game would supply much better experience to kids.
Along with it, NASCAR should also develop brand-new games related to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between different cartoon characters with a choice of picking the preferred cartoon character for the kids. These techniques would make it possible for the business to draw in among its prospective target sectors.
4. Presenting multiculturalism at occasions.
The Good Commissioner Case Study Help events are consisted of fans with extremely couple of cultural diversity, due to expense of arrival in occasions, making it unappealing for the clients perceiving sport occasions as social occasions i.e. Generation Y clients. As the Generation Y consumers are a prospective target audience for NASCAR, for that reason the company needs to take certain steps to attract this potential target audience. It must embrace strategies to draw in the clients far from the tracks area with different culture. The method to do so could be supplying unique discount rates on tickets or complimentary tickets to viewers coming from a specific distance or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR needs to work on facilities and facilities at tracks since on the race day audiences got dissatisfied. Audiences have lots of expectations from The Good Commissioner Case Study Analysis since in exact same industry other business are supplying much better services than NASCAR. IF NASCAR do not work on this concern then its fans may moved to its rivals.
Marketing Spending plan.
Marketing budget 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 techniques. It can be seen that method 5 of enhancing consumer experience at tracks would require highest preliminary investment and expense and strategy 4 of presenting multiculturalism will require most affordable initial financial investment with least expensive further per year expense.
NOTE: The values about cost are presumed on rational 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%.

Suggestions.

On the basis of deep analysis of the internal and external factors of The Good Commissioner Case Study Analysis causing the decline of tv viewership rate and attendance rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long run. These strategies would cope with internal elements like poor customer experience at tracks, insufficient social media marketing, incapable digital medias like games, absence of culturalisms at tracks etc., in addition to with external factors like shifting of fans towards other sports, demographical modifications in America and altering domesticity designs.

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