Venture Capital Vignettes Case Study Solution & Analysis
Venture Capital Vignettes Case Study Solution (National Association for Stock Car Automobile Racing) is a company conducting series of Stock Automobile racing in United States and acting as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. The organization was founded in 1947, by "Big Bill" France. NASCAR set up Stock Automobile Racing events in United States with the existence of about 130000 viewers on average in 2005. It likewise broadcast its events in about 150 countries. Stock Car Racing by NASCAR is the second largest viewer sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its earnings. The other sources of profits for Venture Capital Vignettes Case Study Solution includes; 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 business culture with the non-interventionist technique. The building of Vehicle of Tomorrow by NASCAR, with an intention of security for the motorists, brought various tensions amongst the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that despite the fact that the company extremely rely on the communications in between its stakeholders, there was no recognizable business communication strategy. (
The audit pointed out various doing not have of NASCAR in terms of absence of internal combination, absence of fan management technique and lack of digital and social media of marketing.
Venture Capital Vignettes Case Study Solution audiences was highly devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate marketers.
The company is currently facing the problem of declining rates of participation at racing tracks and rates of tv audiences. This can put a substantial impact on its earnings from sponsors, media rights, and from other sources of income.
Although the business was quite successful till 2005 with its conventional marketing strategies, however soon after 2005 the business begins facing various problems consisting of decrease of its fan base. Several external along with internal aspects are accountable for the decrease. Internal aspects include; inadequate investment in social media and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and develop generational loyalty. However the household system in America was altering leading to reduction of impact of married male fan base over their children. In addition to it understandings about cars and truck was likewise altering with perceiving vehicle an automobile to reach at point B from point A, instead of as an enjoyable job. Other obstacles for Venture Capital Vignettes Case Study Solution consists of the shift of its fans to other sports as they were improving their fan's experience allowing access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc. These all challenges were tending the business to modify its marketing strategies.
In SWOT analysis, strengths specified as business's qualities which are different from its rivals. These are business's core proficiencies on which company performance or business success based upon. Venture Capital Vignettes Case Study Solution core competencies includes it has rights of dictating guidelines as approving body. Policies and guidelines relating to professional stock automobile racing are dictated by NASCAR like if any group with required skills and resources can participate in races by following guidelines and guidelines determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise includes 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 transmit in more than 150 countries worldwide with more than $56 million incomes. The primary sources of their profits come from television rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and business sponsors. All the events of NASCAR are sponsored by corporates because of greatest brand name commitment of fans towards brands promoted by Venture Capital Vignettes Case Study Help. (See Appendix A).
Weak Points in SWOT Analysis are considered as external aspects. Weaknesses includes the factors that stops company to perform at required level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist method. They normally utilized to form guidelines and other needed processes without intervention of others which leads to poor cooperation. NASCAR develops Vehicle of Tomorrow without partnership so result is that chauffeurs did not like that concept. As this is racing sport so covering of sports by media is also tough. It was also found that NASCAR had no reliable technique for company communication. If it took place off track, they don't understand how to manage problem. Inadequate organisation interaction results in that they do not have clear direction for their long term goals. They do not know that where they wish to see this sport in future.
Opportunities in SWOT analysis are external aspects which can be favourable to company or the external factors on which company is having competitive benefit. NASCAR usually used to count on standard media sources like local newspaper for publicity of its sports. Typically these conventional media sources try to cover their house group and specific type of events. NASCAR also came to know from these conventional media outlets that sport was challenging to cover. Media landscape likewise changed from traditional to digital landscape. Papers failed. NASCAR can work on its abilities to get maximum possible benefits 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 sold to Turner Sports. NASCAR used to earn money check of around $15 million yearly from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot during race at track. Then they are needed to pay licensing charges to Turner Sport, if media sources like newspapers, magazines and cable channels desire to post videos of races on their particular pages. So NASCAR can deal with conditions and terms and attempt to work out with Turner Sports to get optimal benefits of it. Star power plays extremely important function in creating incomes from every sport. It was noted that NASCAR is lagging in this area i.e. star power. For example when sports fans were asked relating to popular celebrities and stars then NASCAR motorist was not discovered even in leading twenty actions. So NASCAR can put efforts in this location too for income generation. They ought to direct their chauffeurs that how they can end up being sport stars. 4 strategic focuses which are generated by research group can also be worked as chance for NESCAR. These four tactical focuses compares and analysis Venture Capital Vignettes Case Study Analysis strategies.
Economic down turn was experienced in late 2000 which can be threat for NASCAR due to the fact that if there is financial down turn then people would be having less return on financial investment. Economic down turn also results in increase fuel prices which likewise impacted NASCAR. Now if NASCAR make considerable investments in new segments which are based on brand-new consumers then it might deal with unfavorable remarks from its core fan base.
Porter's Five Forces Analysis
It is crucial to understand market in which business is working since NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are utilized to determine profitability, strength and attractiveness of NASCAR organisation.
This force shows ability of competitors. Teams usually represents sponsors in NASCAR and the medium of advertising is motorists. For that reason it can be stated that motorists and race cars are rivals. These drivers can break NASCAR if they got better chance in regards to rewards and tv exposure. Then audiences can move to those other fascinating automobiles and drivers, if viewers enjoy other race cars and trucks and drivers more than NASCAR. NASCAR might be having hazard from its two direct rivals that is Formula 1 and Moto GP. They need to create competitive benefits for drivers so they don't move to other competitors.
The supplier power suggests the variety of suppliers are offered in industry and what is the expense connected with provider if company shifts from one supplier to another. In this market there is supply monopoly due to the fact that motorists with required resources and abilities are limited.
In the case of NASCAR customers are its viewers. Audiences can switch to other competitors easily due to the fact that viewers will having low switching cost.
Danger of Alternative
Alternatives are referred as options. The substitutes in this case can be other entertainment implies like viewers can move to other sports. So there are wide variety of alternatives are offered in this circumstance which suggests that hazard of alternative is high.
Threat of New Entry
It is specified as how it is easy for any company to go into in that specific market. When it comes to Venture Capital Vignettes Case Study Analysis danger of brand-new entry is low. Since if any business requires to enter in this organisation than they need to make heavy financial investments. They need to develop cars and racing tracks and likewise needs to pay significant amount to drivers for switching.
As NASCAR is working in different markets so it needs to face different regulations. It is also kept in mind that NASCAR has dealt with increased examination relating to regulatory. Every federal government has different top priority so NASCAR has to be prepared for it as priority can be shifted to other sector.
Economic factors consists of taxation rate, exchange rate, financial efficiency of that particular company, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be affected. NASCAR can utilize abilities of employees to create brand-new opportunities and improve existing opportunities.
Every society is different from each other. Each has various social values and standards. It helps in understanding regarding society and choice of clients. Social elements consists of traditions, culture, mindsets towards specific product and services, demographics, norms, interests and so on. It can be concluded that marketing through other ways rather than traditional (i.e. paper) can be preferred in this society.
Technology has influence on practically every company. It consists of development in company method. In this case of Venture Capital Vignettes Case Study Solution it can be noted that companies are heavily spending for research study and development. NASCAR must also deal with its media rights policy with Turner Broadcasting System.
Legal plays an important function in every nation since every country has different legal conditions. Venture Capital Vignettes Case Study Analysis needs to be make sure that they protect their legal rights in every county so any company does not damage to its legal rights.
Ecological factors are likewise crucial for each service. Because typically governments don't permit those organisation which can damage to environment. These environmental factors consists of laws relating to contamination, climate change, safe garbage disposal, policies concerning insurance etc. NASCAR needs to make sure that its cars are not generating contamination more than acceptable level.
7 P's of Marketing
The items of Venture Capital Vignettes Case Study Solution in its item 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).
Prices method of NASCAR for its race events tickets is based upon the location and value of the racing occasions. Along with race occasions tickets, NASCAR likewise charge various service fees to its stakeholders and earns profits. For instance it charged approving charges of $1-2 million per race usually in 2005.
Marketing strategy of Venture Capital Vignettes Case Study Help 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 business is not entirely relied upon its fan base for its promotion and promote through local radio stations too. The company has also embraced the retailing media of promotion, in which the business sells merchandises with its logo.
NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR includes 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 comprehend nationwide appeal.
Nestle individuals method is comprised of providing better experience to its viewers, its fan base and to all of its stakeholders. People are an essential aspect of Venture Capital Vignettes Case Study Solution A marketing method as its events are the source of entertainment for crowd. Its individuals technique consists of efforts to supply much better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under individuals strategy of NASCAR.
A number of service processes are required to conduct racing occasions in an efficient way. These processes consist of; proper schedule of time, arrangement for spectators, selling tickets, arrangement of area for sponsors, handling logistics etc. These all processes contribute I building NASCAR image, enhancing spectators experience and increasing fan base.
Essential physical proofs for the NASCAR includes the presence of its racing tracks, stock automobiles and racing occasions. Along with it, its merchandising brand names including tee shirts, caps, goodies etc., likewise act as a physical evidence for NASCAR.
Item Life Process Assessment.
The racing occasions by NASCAR was presented on June 19, 1949. At the very first phase competition for NASCAR was low, as the rivals drove the cars and trucks comparable to the vehicles driven by regular people.
After performing its very first race successfully the business moved towards building its own tracks. The very first Venture Capital Vignettes Case Study Solution based track, specifically the Darlington Raceway track, was initiated 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 company moved towards broadcasting its races on television in 1979. The very first event broadcasted on television was flag-to-flag coverage of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he changed NASCAR from a regional Sport popular company into one with global fan base. He started a new period of rewarding sponsorships and television agreements for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the company having vast array of income sources. The company has about 500 sponsors with transmitting its occasions in about 150 countries. The company has large number of tracks in most of the cities of United States.
The significant causes of decrease consist of the financial crisis of 2008, which increased the expense of showing up at tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.
The market division of Venture Capital Vignettes Case Study Solution can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Venture Capital Vignettes Case Solution is based upon the geographical existence of its tracks in numerous states and cities in United States, and the tv broadcasting of its occasions in different nations. The business has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division offers the company regional as well as global fan base.
The group 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 segment of its market NASCAR must modify its marketing methods to bring in more age groups and lower its rates to enter in the market segment with a low average earnings.
The psychological characteristics 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 products with a NASCAR brand. They are quite extrovert and are willing to join other fans while racing. They want quality racing with low rate at convenient area. Although Venture Capital Vignettes Case Study Analysis has actually attempted to increase the quality of its racing by introducing stage racing, they likewise have attempted to lower prices and make the event easier by presenting live racing.
Behavioural segmentation 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 viewing the race at house on tv rather than going, as the client experience at NASCAR tracks is not beneficial as well as costly.
Among the possible target market of Venture Capital Vignettes Case Study Solution was Hispanics; the young and growing population of United States. The market sector has fantastic prospective 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. The segment reveals affinity with cars and truck culture, but need a more focused marketing towards inviting the segment towards racing.
Kids are also one of the prospective target audience segment for NASCAR, as they are more linked socially than other groups. Developing fan base amongst kids can supply a possible increase in the variety of fans for racing due to their connectivity. Kids spend the majority of their times in playing and utilizing smart devices computer game. Automobile racing games developed by Venture Capital Vignettes Case Study Help can be a potential source of getting attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of gaining the attention. NASCAR needs more attention towards personalizing and enhancing its digital features to draw in the kids target audience.
This huge expenditure makes the section capacity for NASCAR marketing technique of increasing its fan base. The market segment considers NASCAR as an organization lacking in creating a multiculturalism environment. NASCAR needs to take numerous steps to improve the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions concerning marketing. These 5 C's needs to be analysed effectively for taking any marketing choice. These 5 C's mean Climate, Business, Collaborators, Consumers and Rivals.
It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE means political, financial, social, technical, legal and ecological and is specified above.
NASCAR is a vehicle racing business with having USP of high quality vehicle racing with a global structure. Its sector is sports team and events. Its target audience is males in the age of 15-60 years. Company has closed business culture and having non-interventionist method.
Collaborations consists of distributors, 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 desire to create its Facebook page, twitter account or even mobile application.
The consumer of Venture Capital Vignettes Case Study Help are its viewers. 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 develop generational commitment.
Groups usually represents sponsors in NASCAR and the medium of marketing is drivers. These motorists can go versus NASCAR if they got much better opportunity in terms of prizes and tv exposure.
1. Establishing and Preserving Facebook Page.
One of the possible target markets sectors for NASCAR is Hispanics which is the growing population section of USA however unfortunately NASCAR had actually been not able to attract the this targeted segment. It must establish a Facebook page containing the information relating to the races and the locations of tracks to make the consumer useful about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Secret Drivers.
Venture Capital Vignettes Case Study Analysis chauffeurs has a low star power as compare to players of other sports. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is a crucial element for drawing in viewers towards tracks and towards television.
3. Developing New Games and enhancing present video games for kids.
In order to attract these kids, NASCARA needs to improve its existing racing video games by introducing modification in the automobiles i.e. changing colours, choice of speed, presenting group racing in the video game, using better graphics related to the racing tracks and presenting different levels in the game. All these modifications in the existing video game would offer much better experience to kids.
Along with it, NASCAR must likewise construct brand-new video games connected to racing like kids racing with kids characters as drivers, animation racing with racing in between different animation characters with a choice of picking the preferred cartoon character for the kids. These strategies would allow the company to attract among its prospective target sections.
4. Introducing multiculturalism at occasions.
NASCAR occasions are made up of fans with really couple of cultural variety, due to expense of arrival in events, making it unappealing for the customers perceiving sport events as social celebrations i.e. Generation Y consumers. As the Generation Y customers are a potential target market for NASCAR, therefore the company should take certain steps to attract this potential target market.
5. Improving Client Experience at Tracks.
Since on the race day audiences got dissatisfied, NASCAR must work on infrastructure and amenities at tracks. Because in very same market other companies are supplying better services than NASCAR, audiences have many expectations from Venture Capital Vignettes Case Study Solution. IF NASCAR don't work on this problem then its fans might shifted to its competitors. According to fans there were not sufficient centers were readily available as compare to other sports suppliers. So NASCAR needs to make sure that it offer sufficient facilities that includes cleaned up washrooms, comfy seating plan. They ought to likewise supply WIFI services and accessibility of credit cards throughout that track. It should be likewise make sure that there are enough jumbo turns put at all required locations. There must be also food stalls that offer quality food to viewers. In this way viewers will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Budget plan.
Marketing budget made on the basis of the above strategies for the period of 5 years from 2011 to 2015, reveals the cost associated information for the marketing techniques. (See Appendix B). It can be seen that strategy 5 of enhancing customer experience at tracks would require highest preliminary financial investment and cost and strategy 4 of presenting multiculturalism will need most affordable preliminary financial investment with most affordable further per year cost. The business must prioritize the resource allotment on these methods on the basis of its offered resources and the prospective benefits which the technique would offer.
NOTE: The worths about expense are assumed on logical basis due the absence of figures and facts related to cost in the event study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the external and internal aspects of Venture Capital Vignettes Case Study Solution causing the decline of tv viewership rate and presence rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long run. These methods would cope with internal elements like bad consumer experience at tracks, inadequate social media marketing, incapable digital medias like games, lack of culturalisms at tracks and so on, in addition to with external elements like shifting of fans towards other sports, demographical changes in America and changing family life styles.