The Good Commissioner Case Study Solution & Analysis
The Good Commissioner Case Study Solution (National Association for Stock Cars And Truck Auto Racing) is an organization carrying out series of Stock Automobile racing in United States and serving as a sanctioning body for driving the rules for Stock Vehicle Racing. The organization was established in 1947, by "Big Expense" France. NASCAR organize Stock Automobile Racing events in United States with the presence of about 130000 audiences usually in 2005. It also transmitted its occasions in about 150 nations. Stock Vehicle 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 earnings. The other sources of earnings for The Good Commissioner Case Study Analysis includes; 10% of the overall earnings from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist technique. Nevertheless this non collaborative method brings tensions in the sport. The structure of Vehicle of Tomorrow by The Good Commissioner Case Study Help, with an intent of security for the motorists, brought various stress among the stakeholders of the sport.
The communication audit, carried out in 2010, exposed that despite the reality that the organisation highly rely on the communications between its stakeholders, there was no recognizable organisation communication method. (
The audit explained various doing not have of NASCAR in terms of absence of internal integration, lack of fan management strategy and lack of social and digital media of marketing. The business has complex ecosystem with independent tracks, teams and chauffeurs. This structure with closed business culture bring numerous difficulties in speeding up a change. Other partners in ecosystem consists of the media networks i.e. tv and radio, and business marketers.
The Good Commissioner Case Study Solution audiences was extremely devoted to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business online marketers.
The company is presently facing the problem of declining rates of presence at racing tracks and rates of television viewers. This can put a considerable effect on its incomes from sponsors, media rights, and from other sources of income.
Although the company was rather successful till 2005 with its conventional marketing strategies, however soon after 2005 the business starts dealing with various problems consisting of decline of its fan base. Numerous external in addition to internal aspects are responsible for the decline. Internal aspects consist of; inadequate financial 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 youngsters and produce generational loyalty. The family system in America was altering resulting in decrease of impact of married male fan base over their children. Together with it perceptions about car was likewise altering with viewing cars and truck a car to reach at point B from point A, rather than as a fun job. Other obstacles for The Good Commissioner Case Study Help 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 gain access to, and so on. These all difficulties were tending the company to revise its marketing strategies.
NASCAR core proficiencies includes it has rights of dictating rules as sanctioning body. Guidelines and rules regarding expert stock vehicle racing are dictated by NASCAR like if any group with needed skills and resources can enter into races by following guidelines and policies determined by NASCAR. All the occasions of NASCAR are sponsored by corporates since of greatest brand loyalty of fans toward brand names promoted by The Good Commissioner Case Study Solution.
Weak Points in SWOT Analysis are thought about as external aspects. Weaknesses includes the factors that stops company to perform at required level of performance. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist method. They typically utilized to form guidelines and other needed procedures without intervention of others which results in poor cooperation. For example NASCAR establishes Vehicle of Tomorrow without cooperation so result is that chauffeurs 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 effective technique for service communication. They don't understand how to deal with issue if it happened off track. Inefficient business communication results in that they do not have clear instructions for their long term objectives. They do not know that where they wish to see this sport in future.
NASCAR typically used to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR also came to understand from these standard media outlets that sport was hard to cover. When sports fans were asked regarding popular celebs and stars then NASCAR driver was not found even in leading twenty reactions.
Threats in SWOT analysis are defined as external factors that can hazard to business's success. Because if there is financial down turn then people would be having less return on investment, Economic down turn was experienced in late 2000 which can be danger for NASCAR. Earning of individuals would be effected and they would be more mindful in spending their loan. Economic down turn likewise leads to increase fuel rates which likewise 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 dispersed to race course, 25 percent revenue would be distributed to completing group and staying 10 percent would be kept by NESCAR which is approving body. Completing team wished to increase their portion of profits from 25 percent due to the fact that of boost in running cost of a race team and likewise there is decrease in the variety of full-season sponsorship. NESCAR likewise deals with threats from other sponsors since they are making enormous investments to enhance experience of fans. For instance which includes updating existing avenues, developing new avenues, offering Wi-Fi center and likewise supplying other interactive mediums to communicate sports on smart devices. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and create generational loyalty. The difficulty is that the family system in America was altering resulting in decrease of impact of married male fan base over their children. In addition to it understandings about car was also altering with viewing vehicle an automobile to reach at point B from point A, rather than as a fun project. Now if The Good Commissioner Case Study Solution make substantial investments in new segments which are based upon new clients then it may face unfavorable comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is used to evaluate market in which company is working. It helps in identifying what are strengths and weak point of any specific industry. It recommend that every market is different from one another. It is very important to comprehend market in which business 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 utilized to determine profitability, intensity and attractiveness of The Good Commissioner Case Study Analysis business.
These chauffeurs can go against NASCAR if they got better chance in terms of prizes and television direct exposure. If viewers delight in other race automobiles and motorists more than NASCAR then audiences can move to those other fascinating automobiles and motorists. NASCAR could be having risk from its two direct rivals that is Formula 1 and Moto GP.
If business shifts from one provider to another, the provider power suggests the number of providers are available in market and what is the expense associated with supplier. Due to the fact that motorists with needed resources and skills are limited, in this market there is supply monopoly.
This force is regarding to clients that is it easy for clients to shift to other products. Then consumers are less likely to change, if there is more changing expense is associated. When it comes to NASCAR customers are its audiences. Due to the fact that viewers will having low changing expense, audiences can switch to other competitors easily.
Hazard of Replacement
Substitutes are referred as alternatives. The replacements in this case can be other entertainment suggests like audiences can shift to other sports. So there are wide variety of substitutes are available in this circumstance which suggests that threat of alternative is high.
Threat of New Entry
It is specified as how it is easy for any company to enter in that specific industry. In the case of The Good Commissioner Case Study Solution threat of new entry is low. If any business requires to enter in this business than they have to make heavy investments, due to the fact that. They need to construct cars and trucks and racing tracks and also needs to pay large total up to motorists for switching.
It can not be concluded from case research study that there would be change in resource allotments. NASCAR had actually got take advantage of lower taxation policies which leads to increasing in profits. They made heavy financial investments in the research study and development. As NASCAR is working in different markets so it requires to deal with various regulations. It is also noted that The Good Commissioner Case Study Help has actually dealt with increased scrutiny regarding regulative. Every federal government has various concern so NASCAR has to be prepared for it as top priority can be shifted to other sector.
Financial elements includes taxation rate, exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can leverage abilities of employees to create brand-new opportunities and enhance existing chances.
Each has various social values and norms. It helps in understanding regarding society and preference of clients.
Innovation has impact on practically every business. It includes innovation in company method. In this case of The Good Commissioner Case Study Help it can be noted that companies are greatly spending for research and advancement. NASCAR should likewise deal with its media rights policy with Turner Broadcasting System.
Because every nation has various legal terms and conditions, Legal plays an essential role in every country. The Good Commissioner Case Study Solution needs to be make sure that they protect their legal rights in every county so any company does not harm to its legal rights.
Ecological factors are likewise crucial for every company. NASCAR requires to make sure that its vehicles are not creating pollution more than appropriate level.
7 P's of Marketing
The products of The Good Commissioner Case Study Analysis in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to business marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rates strategy of NASCAR for its race occasions tickets is based upon the venue and importance of the racing events. In addition to race events tickets, NASCAR also charge different service charge to its stakeholders and makes profits. For example it charged approving costs of $1-2 million per race typically in 2005.
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.
NASCAR have its racing tracks in different cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in most of the cities in United States to grasp across the country appeal.
Nestle individuals strategy is consisted of offering much better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important aspect of The Good Commissioner Case Study Help A marketing strategy as its occasions are the source of home entertainment for crowd. Its people method consists of efforts to offer much better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under individuals method of NASCAR.
Several business processes are needed to conduct racing events in an effective method. These procedures consist of; correct schedule of time, plan for spectators, selling tickets, plan of area for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.
Most important physical evidences for the NASCAR includes the existence of its racing tracks, stock vehicles and racing occasions. In addition to it, its retailing brand names including tee shirts, caps, goodies and so on, also serve as a physical evidence for NASCAR.
Item Life Cycle Evaluation.
The racing events by The Good Commissioner Case Study Analysis was introduced on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the very first phase competition for NASCAR was low, as the rivals drove the vehicles comparable to the cars driven by regular individuals.
The very first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the business moved towards relaying its races on tv in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular organization into one with worldwide fan base. He initiated a new era of profitable sponsorships and television agreements for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the business having wide variety of earnings sources. The business has about 500 sponsors with relaying its events in about 150 countries. The business has large number of tracks in most of the cities of United States.
The decrease in the business's offerings began after 2005 with average presence rate per race declined by 22% from 2005 to 2010 and tv viewership rate declined by 30% from 2005 to 2010. The major causes of decline include the financial crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.
The market division of The Good Commissioner Case Study Solution can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of The Good Commissioner Case Help is based upon the geographical presence of its tracks in different states and cities in United States, and the tv broadcasting of its events in different nations. The company has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical segmentation provides the business regional in addition to international fan base.
The group segmentation of The Good Commissioner Case Study Analysis is also highlydiverse based upon the gender, income and age of the customer. To increase the group segment of its market NASCAR should modify its marketing strategies to attract more age groups and lower its costs to go into in the market sector with a low typical income.
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races once in a week. NASCAR has actually attempted to increase the quality of its racing by introducing phase racing, they also have actually attempted to lower costs and make the event more convenient by presenting live racing.
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 events. Presently, the fans choice is towards viewing the race at house on television rather than going, as the client experience at NASCAR tracks is not favourable as well as expensive.
One of the prospective target market of The Good Commissioner Case Study Analysis was Hispanics; the young and growing population of United States. The marketplace sector has excellent potential for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the segment reveals affinity with vehicle culture, however need a more concentrated marketing towards welcoming the segment towards racing.
Kids are likewise one of the possible target audience segment for NASCAR, as they are more connected socially than other groups. Developing fan base amongst kids can provide a potential boost in the variety of fans for racing due to their connectivity. Kids spend most of their times in using smart devices and playing computer game. Car racing games developed by The Good Commissioner Case Study Solution can be a possible source of acquiring attention of kids towards NASCAR track racing. However, NASCAR's digital features connected to kids are not capable of getting the attention. NASCAR requires more attention towards personalizing and improving its digital functions to attract the kids target market.
This huge expenditure makes the segment capacity for NASCAR marketing method of increasing its fan base. The market segment considers NASCAR as a company lacking in developing a multiculturalism environment. NASCAR must take different steps to enhance the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing assists in taking choices concerning marketing.
It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, legal and environmental and is stated above.
NASCAR is a car racing business with having USP of high quality automobile racing with a global structure. Its sector is sports team and events. Its target market is males in the age group of 15-60 years. Business has closed corporate culture and having non-interventionist technique.
Collaborations includes 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 produce its Facebook page, twitter account or even mobile application.
The client of The Good Commissioner Case Study Help are its audiences. They target consumers 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 produce generational commitment.
Groups generally represents sponsors in NASCAR and the medium of marketing is drivers. These motorists can go against NASCAR if they got better opportunity in terms of prizes and television exposure.
1. Maintaining and developing Facebook Page.
Among the possible target markets segments for NASCAR is Hispanics which is the growing population sector of USA but sadly NASCAR had actually been unable to attract the this targeted section. In order to bring in the young growing generation the NASCAR ought to market by using social media like Facebook. It ought to establish a Facebook page consisting of the info regarding the races and the areas of tracks to make the customer useful about the core operations of The Good Commissioner Case Study Help. It ought to also update its Facebook page on everyday basis to provide info about its upcoming events. This would make the target audience sector more informative about the business and would lead to drawing in large fans base.
2. Developing and Upgrading Accounts of Key Drivers.
The Good Commissioner Case Study Analysis chauffeurs has a low star power as compare to players of other sports. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an essential factor for bring in audiences towards tracks and towards television.
3. Developing New Games and enhancing current video games for kids.
In order to draw in these kids, NASCARA should enhance its current racing games by introducing personalization in the vehicles i.e. changing colours, selection of speed, introducing group racing in the game, using better graphics related to the racing tracks and presenting various levels in the video game. All these modifications in the existing video game would offer better experience to kids.
Along with it, NASCAR needs to likewise construct new games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing between different animation characters with a choice of selecting the favourite animation character for the kids. These methods would enable the business to attract among its possible target sections.
4. Introducing multiculturalism at events.
The Good Commissioner Case Study Help events are comprised of fans with very couple of cultural diversity, due to expense of arrival in occasions, making it unattractive for the clients perceiving sport occasions as social occasions i.e. Generation Y consumers. As the Generation Y clients are a possible target market for NASCAR, for that reason the company needs to take specific measures to attract this prospective target market. It should embrace techniques to attract the customers far from the tracks location with various culture. The technique to do so might be offering unique discounts on tickets or free tickets to viewers originating from a particular range or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR should work on facilities and features at tracks since on the race day viewers got dissatisfied. Audiences have numerous expectations from The Good Commissioner Case Study Help due to the fact that in exact same industry other business are providing much better services than NASCAR. IF NASCAR do not work on this problem then its fans may shifted to its competitors.
Marketing spending plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the cost associated data for the marketing strategies. It can be seen that method 5 of enhancing consumer experience at tracks would need highest initial financial investment and cost and technique 4 of introducing multiculturalism will need lowest preliminary investment with lowest further per year expense.
KEEP IN MIND: The values about cost are assumed on rational basis due the lack of figures and truths related to cost in the case 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 Good Commissioner Case Study Analysis triggering the decrease of television viewership rate and attendance rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long run. These methods would manage internal aspects like poor consumer experience at tracks, insufficient social media marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., along with with external aspects like shifting of fans towards other sports, demographical changes in America and changing domesticity styles.