Venture Capital Vignettes Case Study Solution and Analysis
Venture Capital Vignettes Case Study Solution (National Association for Stock Vehicle Vehicle Racing) is an organization performing series of Stock Vehicle racing in United States and acting as an approving body for driving the guidelines for Stock Automobile Racing. The company was established in 1947, by "Huge Expense" France. NASCAR organize Stock Car Racing occasions in United States with the presence of about 130000 audiences typically in 2005. It likewise relayed its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of revenue for Venture Capital Vignettes Case Study Help consists of; 10% of the total income from tv rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist method. The building of Vehicle of Tomorrow by NASCAR, with an intent of security for the motorists, brought numerous stress amongst the stakeholders of the sport.
The interaction audit, conducted in 2010, exposed that in spite of the truth that the company highly rely on the communications between its stakeholders, there was no recognizable company communication method. (
The audit pointed out different lacking of NASCAR in regards to absence of internal integration, lack of fan management strategy and absence of social and digital media of marketing. The company has complicated community with independent tracks, drivers and teams. This structure with closed corporate culture bring various obstacles in speeding up a change. Other partners in community consists of the media networks i.e. television and radio, and corporate marketers.
Venture Capital Vignettes Case Study Help audiences was highly devoted to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate marketers.
The business is presently facing the issue of declining rates of participation at racing tracks and rates of tv audiences. This can put a considerable impact on its earnings from sponsors, media rights, and from other sources of profits.
Although the business was rather effective till 2005 with its conventional marketing strategies, however soon after 2005 the business starts dealing with different problems including decline of its fan base. Several external in addition to internal factors are accountable for the decline. Internal aspects consist of; insufficient financial 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 children and develop generational loyalty. The family system in America was changing resulting in reduction of influence of married male fan base over their children. Together with it perceptions about car was also altering with perceiving automobile an automobile to reach at point B from point A, instead of as an enjoyable job. Other challenges for Venture Capital Vignettes Case Study Solution consists of 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, etc. These all obstacles were tending the business to revise its marketing methods.
NASCAR core proficiencies includes it has rights of determining guidelines as approving body. Regulations and rules relating to professional stock cars and truck racing are dictated by NASCAR like if any group with needed abilities and resources can enter into races by following rules and policies determined by NASCAR. All the events of NASCAR are sponsored by corporates since of greatest brand name commitment of fans towards brand names marketed by Venture Capital Vignettes Case Study Solution.
Weaknesses in SWOT Analysis are considered as external elements. Weaknesses includes the factors that stops business to perform at needed level of effectiveness. 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 required procedures without intervention of others which leads to poor partnership. For example NASCAR develops Car of Tomorrow without partnership so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is also tough. It was likewise discovered that NASCAR had no efficient strategy for service interaction. They don't understand how to deal with concern if it occurred off track. Ineffective company interaction results in that they do not have clear direction for their long term goals. They don't understand that where they wish to see this sport in future.
Opportunities in SWOT analysis are external factors which can be favourable to business or the external elements on which business is having competitive advantage. NASCAR usually utilized to count on standard media sources like regional newspaper for publicity of its sports. Normally these standard media sources try to cover their home group and specific type of occasions. NASCAR likewise familiarized from these conventional media outlets that sport was challenging to cover. Media landscape also changed from standard to digital landscape. Papers went out of business. NASCAR can work on its capabilities to get maximum possible benefits from this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were also sold to Turner Sports. NASCAR used to make money check of around $15 million annually from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot during race at track. If media sources like papers, magazines and cable television channels want to post videos of races on their respective pages then they are required to pay licensing costs to Turner Sport. So NASCAR can deal with terms and attempt to work out with Turner Sports to get optimal benefits of it. Star power plays really crucial role in producing profits from every sport. Nevertheless it was noted that Venture Capital Vignettes Case Study Solution is lagging in this area i.e. star power. For example when sports fans were asked concerning popular celebs and stars then NASCAR driver was not discovered even in leading twenty responses. So NASCAR can put efforts in this location too for income generation. They ought to assist their drivers that how they can end up being sport stars. Four strategic focuses which are generated by research study group can also be served as opportunity for NESCAR. These 4 strategic focuses compares and analysis Venture Capital Vignettes Case Study Help strategies.
Economic down turn was experienced in late 2000 which can be threat for NASCAR because if there is financial down turn then individuals would be having less return on financial investment. Economic down turn also results in boost fuel rates which also affected NASCAR. Now if NASCAR make significant investments in brand-new sectors which are based on brand-new consumers then it might deal with unfavorable comments from its core fan base.
Porter's Five Forces Analysis
It is crucial to understand industry in which company is working due to the fact that NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are used to identify profitability, intensity and attractiveness of NASCAR service.
This force indicates ability of competitors. Teams generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. For that reason it can be said that motorists and race cars are competitors. If they got much better chance in terms of prizes and television exposure, these chauffeurs can go against Venture Capital Vignettes Case Study Solution. If viewers delight in other race vehicles and chauffeurs more than NASCAR then viewers can move to those other interesting cars and trucks and chauffeurs. NASCAR could be having risk from its two direct competitors that is Solution 1 and Moto GP. They need to develop competitive advantages for chauffeurs so they don't move to other rivals.
If business shifts from one supplier to another, the provider power indicates the number of suppliers are available in market and what is the expense associated with provider. Because drivers with required skills and resources are limited, in this market there is supply monopoly.
This force is concerning to customers that is it simple for clients to move to other products. Then customers are less likely to switch, if there is more changing cost is associated. When it comes to NASCAR customers are its audiences. Since audiences will having low switching expense, viewers can change to other rivals quickly.
Danger of Substitution
Alternatives are referred as options. The substitutes in this case can be other home entertainment suggests like viewers can shift to other sports. There are large range of alternatives are offered in this circumstance which recommends that danger of substitute is high.
Hazard 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 threat of new entry is low. If any business requires to go into in this business than they have to make heavy financial investments, because. They require to develop vehicles and racing tracks and likewise requires to pay substantial total up to chauffeurs for switching.
As NASCAR is working in numerous markets so it needs to face various regulations. It is also kept in mind that NASCAR has dealt with increased analysis relating to regulatory. Every government has various concern so NASCAR has actually to be prepared for it as top priority can be moved to other sector.
Economic elements includes tax rate, currency exchange rate, economic efficiency of that particular company, conditions of labour market, inflation rate etc. 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 capabilities of workers to produce new opportunities and improve existing opportunities.
Every society is different from each other. Each has different social worths and norms. It assists in comprehending regarding society and choice of customers. Social factors includes customs, culture, attitudes towards particular product and services, demographics, norms, interests and so on. It can be concluded that marketing through other ways instead of traditional (i.e. paper) can be chosen in this society.
Technology has impact on almost every company. It includes innovation in service technique. In this case of Venture Capital Vignettes Case Study Analysis it can be kept in mind that companies are heavily investing for research study and advancement. NASCAR must also work on its media rights policy with Turner Broadcasting System.
Legal plays an essential function in every nation due to the fact that every country has different legal terms and conditions. Venture Capital Vignettes Case Study Analysis requires to be ensure that they protect their legal rights in every county so any business does not harm to its legal rights.
Ecological aspects are likewise important for every business. Since typically federal governments don't enable those company which can hurt to environment. These ecological factors consists of laws concerning pollution, climate modification, safe waste disposal, policies relating to insurance coverage etc. NASCAR needs to make certain that its automobiles are not creating pollution more than acceptable level.
7 P's of Marketing
The items of Venture Capital Vignettes Case Study Solution 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 during broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race events tickets is based upon the venue and value of the racing occasions. Together with race occasions tickets, NASCAR also charge numerous service fees to its stakeholders and earns profits. For example it charged approving charges of $1-2 million per race typically in 2005.
Marketing technique of Venture Capital Vignettes Case Study Solution is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races. However, the business is not totally trusted its fan base for its promotion and promote through local radio stations too. The company has likewise embraced the retailing media of promo, in which the business sells products with its logo design.
NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in most of the cities in United States to understand across the country popularity.
Nestle individuals technique is consisted of offering better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an essential aspect of Venture Capital Vignettes Case Study Solution A marketing strategy as its events are the source of home entertainment for crowd. Its individuals method includes efforts to offer better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under people technique of NASCAR.
Numerous company processes are needed to perform racing events in an effective way. These procedures include; correct schedule of time, plan for spectators, offering tickets, plan of space for sponsors, handling logistics and so on. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Crucial physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and racing occasions. Along with it, its retailing brand names consisting of t-shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.
Item Life Cycle Assessment.
The racing occasions by Venture Capital Vignettes Case Study Solution was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the first stage competitors for NASCAR was low, as the rivals drove the cars comparable to the cars and trucks driven by regular people.
After conducting its first race effectively the business moved towards constructing its own tracks. The very first Venture Capital Vignettes Case Study Analysis based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility 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 tv in 1979. The very first occasion relayed on tv was flag-to-flag protection of Daytona.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with worldwide fan base. He initiated a new era of rewarding sponsorships and tv agreements for NASCAR.
The maturity duration for NASCAR started with the efforts of William France Jr., with the company having vast array of revenue sources. The company has about 500 sponsors with relaying its occasions in about 150 nations. The business has large number of tracks in the majority of the cities of United States.
The decrease in the business's offerings started after 2005 with average presence rate per race decreased by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major reasons for decline consist of the monetary crisis of 2008, which increased the cost of coming to tracks for audiences due to increasing fuel prices, and the shifting of its fan base towards other sports.
The market division of Venture Capital Vignettes Case Study Help can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Venture Capital Vignettes Case Analysis is based upon the geographical existence of its tracks in different states and cities in United States, and the tv broadcasting of its occasions 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 large geographical division provides the business local as well as international fan base.
The group division of Venture Capital Vignettes Case Study Help is also highlydiverse based upon the gender, earnings and age of the consumer. To increase the demographic sector of its market NASCAR must modify its marketing strategies to draw in more age groups and lower its rates to enter in the market section with a low average earnings.
NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races as soon as in a week. NASCAR has actually tried to increase the quality of its racing by presenting phase racing, they likewise have actually tried to lower rates and make the event more convenient by introducing live racing.
Behavioural segmentation of Venture Capital Vignettes Case Study Analysis is based upon the behaviour of fans in regards to seeing the race live on the television or by going in the events. Currently, the fans preference is towards enjoying the race in the house on tv instead of going, as the client experience at NASCAR tracks is not beneficial as well as expensive. 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 introducing qualitative services at its tracks.
One of 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 terrific prospective for NASCAR as the population was growing at a greater rate and it was expected to become thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. The segment shows affinity with car culture, however require a more concentrated marketing towards welcoming the segment towards racing.
Kids are also one of the possible target market sector for NASCAR, as they are more linked socially than other groups. Vehicle racing games developed by Venture Capital Vignettes Case Study Help can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and enhancing its digital features to draw in the kids target market.
Generation Y target audience consists of those who invested five times more resources on discretionary expenditures i.e. acquiring tickets for racing events, than others. This huge expenditure makes the sector capacity for NASCAR marketing technique of increasing its fan base. The market section is also simple to technique as 81% of the Y Generation customer uses Facebook every day and the usage is twice of using television and radio. The marketplace section views sports as a get-together, instead of adherence to sport. The market section considers NASCAR as an organization doing not have in producing a multiculturalism environment. Venture Capital Vignettes Case Study Analysis ought to take various actions to improve the experience of Generation Y consumers 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 understand environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, environmental and legal and is stated above.
NASCAR is an auto racing business with having USP of high quality auto racing with an international structure. Its sector is sports team and events. Its target audience is males in the age group of 15-60 years. Company has closed business culture and having non-interventionist technique.
Collaborations consists of distributors, providers and alliances of Venture Capital Vignettes Case Study Analysis. It is collaborated with various racing groups which are participating in racing. It also teamed up with Turners Sport for digital rights. 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 desire to produce 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.
The consumer of Venture Capital Vignettes Case Study Help are its audiences. They target customers 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 youngsters and produce generational loyalty.
The direct rivals of NASCAR are Formula 1 and Moto GP. Teams generally represents sponsors in NASCAR and the medium of marketing is drivers. Therefore it can be said that chauffeurs and race cars and trucks are competitors. These drivers can break Venture Capital Vignettes Case Study Analysis if they got better chance in regards to prizes and television direct exposure.
1. Developing and Keeping Facebook Page.
One of the possible target audience sections for NASCAR is Hispanics which is the growing population section of USA but regrettably NASCAR had been not able to draw in the this targeted sector. In order to attract the young growing generation the NASCAR need to market by utilizing social media like Facebook. It should establish a Facebook page consisting of the details relating to the races and the locations of tracks to make the customer useful about the core operations of Venture Capital Vignettes Case Study Solution. It needs to also upgrade its Facebook page on everyday basis to provide information about its upcoming events. This would make the target market section more informative about business and would lead to bring in big fans base.
2. Establishing and Updating Accounts of Key Drivers.
NASCAR motorists has a low star power as compare to gamers 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 unable to build an essential account and preserve a close contact with fans. The bad contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is an essential factor for bring in viewers towards tracks and towards tv. The star power for the motorists at NASCARA could be improved by producing and updating accounts of crucial chauffeurs by NASCARA itself. This would remove the requirement of forcing motorists to preserve their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Developing New Games and improving existing video games for kids.
Kids spent the majority of their time on playing video games and using smart devices. But sadly, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less drawn in towards the sport. In order to bring in these kids, NASCARA must enhance its existing racing video games by presenting customization in the cars i.e. changing colours, choice of speed, presenting group racing in the game, using better graphics connected to the racing tracks and introducing various levels in the video game. All these adjustments in the existing game would offer better experience to kids.
Together with it, NASCAR should likewise develop brand-new games related to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing between numerous animation characters with an option of picking the preferred animation character for the kids. These techniques would allow the business to attract among its potential target segments.
4. Introducing multiculturalism at occasions.
NASCAR events are made up of fans with very few cultural diversity, due to expense of arrival in occasions, making it unsightly for the consumers perceiving sport events as social occasions i.e. Generation Y clients. As the Generation Y clients are a prospective target market for NASCAR, for that reason the business must take specific measures to attract this prospective target market.
5. Improving Client Experience at Tracks.
Since on the race day audiences got disappointed, NASCAR needs to work on facilities and amenities at tracks. Viewers have lots of expectations from NASCAR due to the fact that in exact same industry other companies are providing much better services than NASCAR. Then its fans may moved to its rivals, if NASCAR do not work on this problem. According to fans there were not appropriate centers were available as compare to other sports providers. NASCAR needs to make sure that it provide appropriate facilities that includes cleaned up washrooms, comfy seating plan. They need to likewise supply WIFI services and availability of charge card throughout that track. It must be also make certain that there are enough jumbo turns put at all needed locations. There ought to be likewise food stalls that supply quality food to viewers. In this method audiences will be having pleasant experience at the day of occasion. (See Appendix B).
Marketing Budget plan
Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the expense associated data for the marketing methods. It can be seen that strategy 5 of improving consumer experience at tracks would need greatest initial investment and cost and technique 4 of introducing multiculturalism will require most affordable preliminary investment with most affordable even more per year expense.
KEEP IN MIND: The values about expense are assumed on rational basis due the lack of truths and figures connected to cost in the case research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external aspects of Venture Capital Vignettes Case Study Solution triggering the decline of tv viewership rate and participation rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long run. These methods would cope with internal factors like bad customer experience at tracks, insufficient social media marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., as well as with external factors like moving of fans towards other sports, demographical modifications in America and altering family life styles.