Venture Capital Vignettes Case Study Solution and Analysis
Introduction
NASCAR (National Association for Stock Automobile Car Racing) is an organization carrying out series of Stock Cars and truck racing in United States and acting as an approving body for driving the rules for Stock Vehicle Racing. 2) Stock Automobile Racing by NASCAR is the second largest viewer sport, with highest number of sponsors. 1) The other sources of revenue for Venture Capital Vignettes Case Study Solution consists of; 10% of the overall earnings 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 method. The structure of Vehicle of Tomorrow by NASCAR, with an intention of security for the motorists, brought different tensions among the stakeholders of the sport.
The communication audit, carried out in 2010, exposed that despite the fact that the company highly rely on the communications between its stakeholders, there was no identifiable business communication technique. (
The audit pointed out various lacking of NASCAR in terms of lack of internal integration, absence of fan management technique and lack of digital and social media of marketing.
Venture Capital Vignettes Case Study Analysis audiences was highly devoted to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and corporate marketers.
Issue Statement.
The business is presently dealing with the problem of declining rates of participation at racing tracks and rates of tv audiences. This can put a considerable impact on its revenues from sponsors, media rights, and from other sources of revenue.
Situational Analysis.
Although the business was rather effective till 2005 with its conventional marketing techniques, however not long after 2005 the business starts dealing with various problems including decrease of its fan base. Numerous external in addition to internal aspects are accountable for the decrease. Internal factors consist of; insufficient financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational commitment. Other difficulties for NASCAR includes 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.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths defined as company's qualities which are different from its rivals. These are company's core competencies on which business performance or company success based upon. Venture Capital Vignettes Case Study Analysis core proficiencies includes it has rights of dictating guidelines as approving body. Rules and regulations regarding professional stock automobile racing are dictated by NASCAR like if any group with required abilities and resources can participate in races by following rules and regulations dictated by NASCAR. So NASCAR has monopoly it this element. Its strengths also includes that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to broadcast in more than 150 nations all over the world with more than $56 million incomes. The primary sources of their earnings originate from television rights, approving fees, 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 also big resource of fans and corporate sponsors. All the occasions of NASCAR are sponsored by corporates since of biggest brand name loyalty of fans towards brands advertised by Venture Capital Vignettes Case Study Help. (See Appendix A).
Weaknesses.
Weaknesses of NASCAR includes its close culture which is non collaborative. Venture Capital Vignettes Case Study Help establishes Automobile of Tomorrow without cooperation so result is that drivers did not like that principle. It was likewise discovered that NASCAR had no efficient technique for company communication.
Opportunities.
NASCAR typically utilized to rely on traditional media sources like local paper for promotion of its sports. NASCAR also came to know from these standard media outlets that sport was difficult to cover. When sports fans were asked relating to popular celebrities and stars then NASCAR chauffeur was not discovered even in top twenty actions.
Risks
Economic down turn was experienced in late 2000 which can be hazard for NASCAR since if there is economic down turn then people would be having less return on investment. Economic down turn also results in boost fuel prices which also impacted NASCAR. Now if NASCAR make significant financial investments in new segments which are based on new consumers then it might face negative remarks from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a model that is utilized to analyse market in which company is working. It assists in determining what are strengths and weak point of any particular market. It recommend that every market is different from one another. Since NASCAR's bottom line i.e. net earnings is greatly depends on this, it is crucial to understand industry in which company is working. There are 5 forces that are utilized to recognize success, intensity and appearance of Venture Capital Vignettes Case Study Help organisation.
Competitive Competition
These drivers can go against NASCAR if they got much better chance in terms of rewards and television direct exposure. If viewers delight in other race vehicles and motorists more than NASCAR then viewers can shift to those other intriguing automobiles and chauffeurs. NASCAR might be having danger from its two direct competitors that is Solution 1 and Moto GP.
Provider Power
If business shifts from one supplier to another, the provider power suggests the number of providers are offered in industry and what is the cost associated with supplier. Because chauffeurs with needed resources and abilities are limited, in this market there is supply monopoly.
Purchaser Power
This force is concerning to clients that is it easy for consumers to move to other products. Then customers are less likely to change, if there is more changing expense is associated. In the case of NASCAR customers are its audiences. Viewers can change to other rivals quickly since audiences will having low switching expense.
Threat of Alternative
Alternatives are referred as alternatives. The alternatives in this case can be other entertainment implies like viewers can move to other sports. There are broad variety of alternatives are readily available in this situation which recommends that hazard of substitute is high.
Risk of New Entry
It is specified as how it is easy for any company to enter in that particular industry. In the case of Venture Capital Vignettes Case Study Analysis hazard of new entry is low. If any business requires to enter in this service than they have to make heavy investments, since. They need to develop vehicles and racing tracks and also needs to pay large amount to chauffeurs for switching.
PESTEL Analysis
Political
It can not be concluded from case study that there would be modification in resource allowances. NASCAR had got benefit from lower tax policies which results in increasing in earnings. They made heavy investments in the research and development. As NASCAR is working in various markets so it requires to face different guidelines. It is also noted that Venture Capital Vignettes Case Study Solution has faced increased examination concerning regulative. Every government has various priority so NASCAR needs to be gotten ready for it as concern can be moved to other sector.
Cost-effective
Financial elements consists of taxation rate, currency exchange rate, economic efficiency of that specific business, 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 impacted. NASCAR can utilize abilities of workers to create brand-new opportunities and enhance existing opportunities.
Social
Each has various social worths and norms. It helps in understanding regarding society and choice of customers.
Technical
In this case of NASCAR it can be kept in mind that companies are heavily spending for research and advancement. NASCAR must also work on its media rights policy with Turner Broadcasting System.
Legal
Due to the fact that every nation has various legal terms and conditions, Legal plays an important role in every country. Venture Capital Vignettes Case Study Help requires to be make sure that they safeguard their legal rights in every county so any business does not hurt to its legal rights.
Environmental
Ecological elements are likewise crucial for every organisation. NASCAR needs to make sure that its automobiles are not creating contamination more than appropriate level.
7 P's of Marketing
Product
The products of Venture Capital Vignettes Case Study Analysis 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 business marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rate.
Pricing strategy of NASCAR for its race occasions tickets is based upon the location and importance of the racing occasions. In addition to race events tickets, NASCAR also charge various service charge to its stakeholders and earns income. For example it charged approving charges of $1-2 million per race usually in 2005.
Promo.
Promotional 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 variety of viewers for NASCAR races. The company is not totally relied upon its fan base for its promo and promote through local radio stations too. The company has actually likewise adopted the merchandising media of promo, in which the company sells merchandises with its logo.
Location.
NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to grasp nationwide appeal.
People.
Nestle individuals strategy is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. People are an important aspect of Venture Capital Vignettes Case Study Help A marketing method as its events are the source of entertainment for crowd. Its people strategy includes efforts to supply better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under individuals strategy of NASCAR.
Procedures.
Several organisation processes are needed to carry out racing events in an effective method. These processes consist of; appropriate schedule of time, plan for spectators, selling tickets, arrangement of area for sponsors, managing logistics etc. These all processes contribute I constructing NASCAR image, enhancing spectators experience and increasing fan base.
Physical Evidence.
Essential physical evidences for the NASCAR includes the presence of its racing tracks, stock automobiles and racing events. Along with it, its merchandising brands including t-shirts, caps, goodies and so on, also act as a physical proof for NASCAR.
Item Life Cycle Assessment.
The racing occasions by NASCAR was introduced on June 19, 1949. At the first phase competitors for NASCAR was low, as the rivals drove the vehicles similar to the cars and trucks driven by ordinary people.
Development.
The first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the growth of racing tracks the business moved towards transmitting its races on television 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 global fan base. He initiated a brand-new age of lucrative sponsorships and television contracts for NASCAR.
Maturity.
The maturity duration for NASCAR started with the efforts of William France Jr., with the company having large range of earnings 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.
Decline.
The major causes of decrease consist of the monetary crisis of 2008, which increased the cost of showing up at tracks for audiences due to increasing fuel prices, and the shifting of its fan base towards other sports.
Market Segmentation.
The marketplace division of Venture Capital Vignettes Case Study Solution can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical segmentation of Venture Capital Vignettes Case Analysis 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 countries. 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 division supplies the company local along with international fan base.
Group.
The market division of NASCAR is also highlydiverse based upon the gender, income and age of the consumer. Its current fan base is majorly comprised of male married fans with a typical age of 47 years and an income around $30-50 thousands. However presently NASCAR is trying to increase its target audience to the young growing population and kinds also. To increase the market segment of its market NASCAR should modify its marketing methods to draw in more age groups and lower its prices to go into in the marketplace section with a low typical earnings.( htt1).
Psychographic.
NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to buy tickets and see the races once in a week. NASCAR has attempted to increase the quality of its racing by introducing phase racing, they also have attempted to lower rates and make the event more hassle-free by introducing live racing.
Behavioural.
Behavioural segmentation of Venture Capital Vignettes Case Study Analysis is based upon the behaviour of fans in terms of enjoying the race survive on the television or by entering the events. Presently, the fans preference is towards viewing the race in your home on television rather than going, as the consumer experience at NASCAR tracks is not favourable as well as pricey. This choice makes the rates for attendance lower than the rates for tv audiences. NASCAR has to change the behaviour of its fan base by presenting qualitative services at its tracks.
Target audience.
Hispanics.
Among the possible target audience of Venture Capital Vignettes Case Study Help was Hispanics; the young and growing population of United States. The marketplace sector has excellent possible for NASCAR as the population was growing at a higher rate and it was expected to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the section reveals affinity with cars and truck culture, however require a more concentrated marketing towards welcoming the segment towards racing.
Kids.
Kids are also one of the prospective target audience sector for NASCAR, as they are more linked socially than other groups. Producing fan base amongst kids can supply a prospective increase in the number of fans for racing due to their connectivity. Kids spend most of their times in playing and utilizing smart devices computer game. Automobile racing games established by Venture Capital Vignettes Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital functions associated with kids are not capable of getting the attention. NASCAR needs more attention towards tailoring and improving its digital functions to draw in the kids target market.
This big expenditure makes the section potential for NASCAR marketing strategy of increasing its fan base. The market section considers NASCAR as a company doing not have in developing a multiculturalism atmosphere. NASCAR needs to take various steps to enhance the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing helps in taking choices concerning marketing. These 5 C's needs to be analysed appropriately for taking any marketing decision. These 5 C's mean Environment, Company, Collaborators, Clients and Rivals.
Climate/Context.
It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE means political, economic, social, technical, legal and ecological and is mentioned above.
Business.
NASCAR is an auto racing business with having USP of high quality automobile racing with a worldwide structure. Its sector is sports group and occasions. Its target market is males in the age group of 15-60 years. Company has closed business culture and having non-interventionist method.
Partnerships.
Collaborations includes suppliers, suppliers and alliances of Venture Capital Vignettes Case Study Analysis. It is worked together with different racing groups which are taking part in racing. It likewise worked together with Turners Sport for digital rights. NASCAR used to make money check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. 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 single video which is shoot during race at track.
Clients.
The client of Venture Capital Vignettes Case Study Analysis are its viewers. They target customers with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and produce generational commitment.
Rivals.
The direct competitors of NASCAR are Formula 1 and Moto GP. Teams normally represents sponsors in NASCAR and the medium of advertising is drivers. For that reason it can be said that motorists and race cars and trucks are rivals. These drivers can go against Venture Capital Vignettes Case Study Solution if they improved opportunity in terms of prizes and tv direct exposure.
Marketing Strategies.
1. Preserving and developing Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population section of USA but unfortunately NASCAR had been not able to draw in the this targeted section. In order to bring in the young growing generation the NASCAR should market by utilizing social media like Facebook. It needs to establish a Facebook page including the info concerning the races and the locations of tracks to make the consumer helpful about the core operations of Venture Capital Vignettes Case Study Help. It needs to also upgrade its Facebook page on everyday basis to offer details about its upcoming occasions. This would make the target market segment more helpful about business and would result in bring in large fans base.
2. Developing and Updating Accounts of Secret Drivers.
Venture Capital Vignettes Case Study Analysis drivers has a low star power as compare to gamers 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 an essential aspect for bring in viewers towards tracks and towards television.
3. Developing New Games and enhancing existing video games for kids.
In order to draw in these kids, NASCARA needs to improve its present racing video games by presenting personalization in the automobiles i.e. changing colours, choice of speed, introducing group racing in the game, utilizing much better graphics related to the racing tracks and introducing numerous levels in the game. All these modifications in the existing video game would supply much better experience to kids.
Together with it, NASCAR ought to likewise develop new games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing between various animation characters with a choice of choosing the favourite animation character for the kids. These techniques would enable the business to attract among its potential target sectors.
4. Introducing multiculturalism at events.
Venture Capital Vignettes Case Study Analysis occasions are consisted of fans with really couple of multiculturalism, due to expense of arrival in events, making it unappealing for the customers viewing sport occasions as get-togethers i.e. Generation Y consumers. As the Generation Y clients are a possible target market for NASCAR, for that reason the business must take specific measures to attract this possible target audience. It ought to adopt techniques to attract the consumers far from the tracks place with different culture. The technique to do so could be providing special discount rates on tickets or complimentary tickets to viewers originating from a particular distance or from another state. It would increase cultural diversity of the fans and would make Generation Y clients more pleased.
5. Improving Client Experience at Tracks.
Due to the fact that on the race day viewers got dissatisfied, NASCAR must work on facilities and amenities at tracks. Due to the fact that in exact same industry other companies are supplying better services than NASCAR, viewers have numerous expectations from Venture Capital Vignettes Case Study Solution. IF NASCAR do not deal with this issue then its fans may moved to its competitors. According to fans there were not adequate facilities were available as compare to other sports suppliers. NASCAR needs to make sure that it provide appropriate facilities that consists of cleaned up toilets, comfy seating plan. They must also supply WIFI services and accessibility of charge card throughout that track. It should be also make certain that there suffice jumbo turns put at all required locations. There ought to be likewise food stalls that supply quality food to audiences. In this way viewers will be having enjoyable experience at the day of event. (See Appendix B).
Marketing Spending plan
Marketing budget made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the cost associated information for the marketing techniques. (See Appendix B). It can be seen that technique 5 of improving client experience at tracks would require highest preliminary financial investment and expense and technique 4 of presenting multiculturalism will need most affordable preliminary investment with most affordable 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 prospective benefits which the strategy would provide.
KEEP IN MIND: The values about expense are assumed on rational basis due the absence of figures and facts associated with cost in the event research study. Inflation rate of United States is presumed to be 10%.
Suggestions.
On the basis of deep analysis of the external and internal elements of Venture Capital Vignettes Case Study Solution causing the decrease of television viewership rate and presence rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long term. These techniques would handle internal factors like poor customer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., in addition to with external aspects like moving of fans towards other sports, demographical changes in America and changing family life designs.
