Venture Capital Vignettes Case Study Solution & Analysis
Venture Capital Vignettes Case Study Solution (National Association for Stock Automobile Automobile Racing) is an organization conducting series of Stock Cars and truck racing in United States and serving as an approving body for driving the guidelines for Stock Car Racing. The organization was established in 1947, by "Huge Expense" France. NASCAR arrange Stock Cars and truck Racing occasions in United States with the presence of about 130000 audiences on average in 2005. It also relayed 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 revenue. The other sources of revenue for Venture Capital Vignettes Case Study Help consists of; 10% of the total profits from tv rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. Nevertheless this non collaborative method brings tensions in the sport. The structure of Cars and truck of Tomorrow by Venture Capital Vignettes Case Study Help, with an objective of safety for the chauffeurs, brought different stress amongst the stakeholders of the sport.
The communication audit, performed in 2010, exposed that in spite of the truth that business extremely rely on the communications in between its stakeholders, there was no recognizable company communication technique. The market's target consumers, instructions and objectives were all unidentified.
The audit mentioned various 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 company has intricate community with independent tracks, teams and motorists. This structure with closed corporate culture bring various challenges in speeding up a modification. Other partners in community includes the media networks i.e. television and radio, and business marketers.
Venture Capital Vignettes Case Study Help audiences was extremely faithful to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate marketers.
The business is presently dealing with the problem of declining rates of participation at racing tracks and rates of tv viewers. This can put a significant influence on its earnings from sponsors, media rights, and from other sources of profits.
The company was quite effective till 2005 with its traditional marketing methods, but quickly after 2005 the company starts facing various problems including decline of its fan base. Several external as well as internal factors are responsible for the decrease. Internal elements include; inadequate financial investment in social networks and other digital medias of.
Fan base of NASCAR made up of married males with an average age of 47, which passes their fandom to their children and produce generational loyalty. Other challenges for NASCAR 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, and so on.
NASCAR core competencies includes it has rights of determining guidelines as approving body. Guidelines and guidelines regarding professional stock vehicle racing are determined by NASCAR like if any group with required skills and resources can get in into races by following guidelines and policies determined by NASCAR. All the events of NASCAR are sponsored by corporates since of most significant brand name commitment of fans towards brand names promoted by Venture Capital Vignettes Case Study Help.
Weaknesses of NASCAR includes its close culture which is non collaborative. Venture Capital Vignettes Case Study Solution establishes Cars and truck of Tomorrow without collaboration so result is that chauffeurs did not like that concept. It was also found that NASCAR had no efficient method for company communication.
NASCAR usually utilized to rely on standard media sources like regional newspaper for promotion of its sports. NASCAR likewise came to understand from these conventional media outlets that sport was hard to cover. When sports fans were asked concerning popular celebs and stars then NASCAR chauffeur was not discovered even in top twenty responses.
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 because if there is financial down turn then individuals would be having less roi. Earning of people would be effected and they would be more mindful in investing their money. Economic down turn also results in increase fuel costs which also impacted NASCAR. Because fans of NASCAR utilized to attend its event from fars away. NESCAR had a guideline of 65/25/10 for income distribution. 65 percent revenues from media rights would be dispersed to race tracks, 25 percent earnings would be distributed to competing group and staying 10 percent would be maintained by NESCAR which is approving body. Competing team wanted to increase their part of income from 25 percent since of increase in operating cost of a race group and likewise there is decrease in the number of full-season sponsorship. Due to the fact that they are making massive financial investments to improve experience of fans, nescar likewise deals with risks from other sponsors. For example that includes upgrading existing avenues, building brand-new opportunities, supplying Wi-Fi facility and also supplying other interactive mediums to communicate sports on smartphones. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment. So the challenge is that the household system in America was changing leading to decrease of impact of married male fan base over their children. Along with it understandings about car was likewise changing with viewing vehicle a car to reach at point B from point A, rather than as an enjoyable project. If NASCAR make significant investments in brand-new sectors which are based on brand-new clients then it may face unfavorable remarks from its core fan base, now.
Porter's Five Forces Analysis
It is important to comprehend industry in which business is working because NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are used to identify profitability, intensity and attractiveness of NASCAR company.
These chauffeurs can go against NASCAR if they got better chance in terms of rewards and television direct exposure. If viewers enjoy other race cars and drivers more than NASCAR then viewers can move to those other interesting cars and motorists. NASCAR could be having danger from its 2 direct competitors that is Formula 1 and Moto GP.
The supplier power indicates the variety of suppliers are offered in market and what is the expense related to supplier if business shifts from one supplier to another. In this industry there is supply monopoly due to the fact that drivers with needed abilities and resources are limited.
In the case of NASCAR customers are its viewers. Audiences can switch to other rivals quickly because viewers will having low switching cost.
Threat of Alternative
Alternatives are referred as options. The alternatives in this case can be other entertainment indicates like audiences can shift to other sports. So there are wide variety of substitutes are readily available in this situation which recommends that threat of replacement is high.
Hazard of New Entry
In the case of NASCAR threat of new entry is low. They need to build cars and trucks and racing tracks and also needs to pay hefty amount to motorists for switching.
It can not be concluded from case study that there would be modification in resource allocations. NASCAR had actually got benefit from lower taxation policies which leads to increasing in earnings. So they made heavy financial investments in the research and development. As NASCAR is operating in different markets so it requires to face various regulations. It is likewise noted that Venture Capital Vignettes Case Study Help has actually dealt with increased analysis concerning regulative. Every federal government has various top priority so NASCAR needs to be prepared for it as concern can be moved to other sector.
Financial aspects includes taxation rate, currency exchange rate, economic performance of that particular business, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can take advantage of capabilities of employees to develop new opportunities and improve existing chances.
Every society is various from each other. Each has different social worths and norms. It assists in comprehending relating to society and preference of consumers. Social elements includes customs, culture, attitudes towards specific product and services, demographics, norms, interests and so on. It can be concluded that advertising through other ways rather than traditional (i.e. newspaper) can be preferred in this society.
Innovation has impact on almost every service. It consists of development in organisation technique. In this case of Venture Capital Vignettes Case Study Help it can be kept in mind that business are greatly spending for research study and development. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.
Since every nation has different legal terms and conditions, Legal plays an important role in every country. Venture Capital Vignettes Case Study Analysis needs to be ensure that they secure their legal rights in every county so any company does not hurt to its legal rights.
Environmental aspects are likewise crucial for each organisation. Because usually governments don't permit those company which can harm to environment. These environmental elements includes laws regarding pollution, environment modification, safe waste disposal, policies regarding insurance coverage etc. NASCAR needs to ensure that its vehicles are not producing pollution more than acceptable level.
7 P's of Marketing
The products of Venture Capital Vignettes Case Study Analysis in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates method of NASCAR for its race events tickets is based upon the location and importance of the racing occasions. In addition to race occasions tickets, NASCAR also charge various service fees to its stakeholders and makes revenue. For example it charged approving fees of $1-2 million per race on average in 2005.
Advertising strategy of Venture Capital Vignettes Case Study Solution is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of viewers for NASCAR races. The company is not completely relied upon its fan base for its promotion and promote through local radio stations too. The company has likewise adopted the retailing media of promotion, in which the business sells merchandises with its logo.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Vehicle 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 comprehend nationwide popularity.
Nestle people strategy is consisted of providing better experience to its audiences, its fan base and to all of its stakeholders. People are a crucial aspect of Venture Capital Vignettes Case Study Analysis A marketing technique as its events 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 etc., all of which come under individuals strategy of NASCAR.
Several organisation processes are required to conduct racing occasions in an efficient method. These processes include; correct schedule of time, arrangement for viewers, selling tickets, plan of space for sponsors, handling logistics and so on. These all processes contribute I building NASCAR image, improving viewers experience and increasing fan base.
Crucial physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and racing events. In addition to it, its merchandising brand names including t-shirts, caps, goodies etc., also function as a physical evidence for NASCAR.
Item Life Process Assessment.
The racing events by NASCAR was presented on June 19, 1949. At the first stage competition for NASCAR was low, as the competitors drove the cars similar to the cars driven by common individuals.
The first NASCAR based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards relaying its races on tv in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he changed NASCAR from a local Sport popular organization into one with worldwide fan base. He started a brand-new era of rewarding sponsorships and television agreements for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide range of revenue sources. The business has about 500 sponsors with broadcasting its events in about 150 countries. The business has a great deal of tracks in most of the cities of United States.
The decrease in the business's offerings started after 2005 with average presence rate per race declined by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant causes of decrease include the monetary crisis of 2008, which increased the expense of arriving at tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.
The market division of Venture Capital Vignettes Case Study Solution can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Venture Capital Vignettes Case Solution 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 various 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 supplies the company local along with worldwide fan base.
The market segmentation of Venture Capital Vignettes Case Study Help is also highlydiverse based upon the gender, earnings and age of the consumer. To increase the market section of its market NASCAR ought to modify its marketing techniques to bring in more age groups and lower its prices to go into in the market section with a low typical income.
The psychological characteristics of the majority of the fans are quite comparable. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races when in a week. 71% of them prefer to purchase products with a NASCAR brand. They are quite extrovert and want to mingle with other fans while racing. They want quality racing with low cost at convenient place. NASCAR has actually tried to increase the quality of its racing by presenting phase racing, they also have tried to lower costs and make the event more practical by presenting live racing.
Behavioural segmentation of Venture Capital Vignettes Case Study Solution is based upon the behaviour of fans in terms of enjoying the race reside on the television or by going in the occasions. Presently, the fans preference is towards seeing the race in the house on tv instead of going, as the customer experience at NASCAR tracks is not favourable as well as costly. This preference makes the rates for participation lower than the rates for tv viewers. NASCAR has to change the behaviour of its fan base by presenting qualitative services at its tracks.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market section has fantastic potential for NASCAR as the population was growing at a higher 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.
Kids are likewise one of the prospective target market segment for NASCAR, as they are more linked socially than other groups. Car racing video games established by Venture Capital Vignettes Case Study Help can be a potential source of getting attention of kids towards NASCAR track racing. NASCAR requires more attention towards customizing and enhancing its digital functions to attract the kids target market.
This substantial expense makes the section potential for NASCAR marketing strategy of increasing its fan base. The market sector considers NASCAR as an organization doing not have in producing a multiculturalism environment. NASCAR needs to 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 requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, ecological and legal and is stated above.
NASCAR is a car racing company with having USP of high quality car racing with an international structure. Its sector is sports team and occasions. Its target audience is males in the age of 15-60 years. Business has actually closed business culture and having non-interventionist technique.
Collaborations consists of suppliers, suppliers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million annually from Turner Sports. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application.
The customer of Venture Capital Vignettes Case Study Help are its audiences. They target customers 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 create generational commitment.
The direct rivals of NASCAR are Solution 1 and Moto GP. Teams normally represents sponsors in NASCAR and the medium of advertising is chauffeurs. It can be stated that drivers and race cars and trucks are rivals. These drivers can go against Venture Capital Vignettes Case Study Solution if they got better opportunity in terms of prizes and television direct exposure.
1. Keeping and developing Facebook Page.
One of the prospective target markets segments for NASCAR is Hispanics which is the growing population segment of USA however sadly NASCAR had actually been unable to draw in the this targeted sector. In order to bring in the young growing generation the NASCAR must market by utilizing social networks like Facebook. It needs to develop a Facebook page consisting of the info concerning the races and the places of tracks to make the consumer helpful about the core operations of Venture Capital Vignettes Case Study Analysis. It should likewise update its Facebook page on day-to-day basis to offer info about its upcoming events. This would make the target market segment more useful about business and would lead to attracting big fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Exhibition). The major reason behind it is that, the racers mainly play in groups and are not able to construct an essential account and keep a close contact with fans. The poor contacts with fans result in less tourist attraction of audiences towards the racers and a low star power. Star power is an essential aspect for attracting viewers towards tracks and towards tv. The star power for the chauffeurs at NASCARA could be enhanced by developing and updating accounts of essential chauffeurs by NASCARA itself. This would eliminate the requirement of requiring motorists to maintain their accounts and would result in increasing fans attention towards NASCARA chauffeurs.
3. Developing New Games and enhancing current video games for kids.
In order to bring in these kids, NASCARA needs to improve its present racing games by presenting modification in the cars and trucks i.e. altering colours, choice of speed, presenting group racing in the video game, utilizing much better graphics related to the racing tracks and introducing various levels in the video game. All these adjustments in the present game would supply better experience to kids.
Along with it, NASCAR must likewise build brand-new games related to racing like kids racing with kids characters as chauffeurs, animation racing with racing between various cartoon characters with an option of choosing the favourite animation character for the kids. These methods would make it possible for the business to attract among its potential target sections.
4. Introducing multiculturalism at events.
NASCAR events are made up of fans with very couple of cultural diversity, due to expense of arrival in events, making it unappealing for the clients viewing sport occasions as social events i.e. Generation Y clients. As the Generation Y customers are a possible target market for NASCAR, for that reason the business should take particular procedures to attract this potential target market.
5. Improving Customer Experience at Tracks.
NASCAR must work on infrastructure and facilities at tracks due to the fact that on the race day audiences got dissatisfied. Viewers have numerous expectations from Venture Capital Vignettes Case Study Analysis due to the fact that in very same industry other business are offering much better services than NASCAR. IF NASCAR do not work on this problem then its fans may shifted to its competitors.
Marketing budget made on the basis of the above methods for the duration of 5 years from 2011 to 2015, reveals the expense related information for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of enhancing client experience at tracks would require highest preliminary financial investment and cost and method 4 of presenting multiculturalism will require lowest initial financial investment with lowest even more annually cost. The business needs to prioritize the resource allocation on these methods on the basis of its readily available resources and the possible advantages which the strategy would provide.
KEEP IN MIND: The values about expense are presumed on logical basis due the absence of figures and truths related to 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 factors of Venture Capital Vignettes Case Study Solution causing the decrease of tv viewership rate and attendance rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long run. These techniques would deal with internal elements like poor client experience at tracks, inadequate social networks marketing, incapable digital medias like games, lack of culturalisms at tracks etc., in addition to with external factors like shifting of fans towards other sports, demographical modifications in America and changing family life styles.