Wingspanbankcom B Should This Bird Still Fly Case Study Solution and Analysis
Intro
NASCAR (National Association for Stock Automobile Vehicle Racing) is a company conducting series of Stock Cars and truck racing in United States and acting as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Car Racing by NASCAR is the 2nd biggest viewer sport, with greatest number of sponsors. 1) The other sources of income for Wingspanbankcom B Should This Bird Still Fly Case Study Solution consists of; 10% of the total revenue from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed business culture with the non-interventionist method. The building of Vehicle of Tomorrow by NASCAR, with an intention of safety for the chauffeurs, brought numerous tensions among the stakeholders of the sport.
The communication audit, conducted in 2010, exposed that regardless of the fact that the service highly rely on the interactions between its stakeholders, there was no identifiable company communication strategy. (
The audit mentioned various lacking of NASCAR in regards to lack of internal integration, absence of fan management strategy and absence of digital and social media of marketing. The company has complicated ecosystem with independent tracks, groups and chauffeurs. This structure with closed corporate culture bring numerous difficulties in accelerating a change. Other partners in community includes the media networks i.e. television and radio, and business marketers.
Wingspanbankcom B Should This Bird Still Fly Case Study Analysis viewers was highly faithful to the sport and the brands associated with the NASCAR, making it appealing for sponsors and business online marketers.
Issue Declaration.
The business is currently facing the issue of declining rates of attendance at racing tracks and rates of tv audiences. This can put a substantial effect on its profits from sponsors, media rights, and from other sources of profits.
Situational Analysis.
Although the business was quite effective till 2005 with its conventional marketing techniques, however right after 2005 the company starts dealing with various problems consisting of decrease of its fan base. Numerous external in addition to internal aspects are accountable for the decrease. Internal elements include; insufficient financial investment in social networks and other digital medias of.
Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and create generational loyalty. However the family system in America was altering leading to reduction of influence of married male fan base over their youngsters. Along with it perceptions about vehicle was likewise altering with viewing cars and truck a car to reach at point B from point A, rather than as a fun task. Other challenges for Wingspanbankcom B Should This Bird Still Fly Case Study Help includes the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, etc. These all difficulties were tending the business to modify its marketing strategies.
SWOT Analysis.
Strengths.
NASCAR core proficiencies includes it has rights of determining guidelines as sanctioning body. Guidelines and regulations relating to professional stock vehicle racing are dictated by NASCAR like if any team with needed abilities and resources can enter into races by following guidelines and regulations determined by NASCAR. All the events of NASCAR are sponsored by corporates because of most significant brand loyalty of fans toward brand names marketed by Wingspanbankcom B Should This Bird Still Fly Case Study Help.
Weaknesses.
Weaknesses of NASCAR includes its close culture which is non collaborative. Wingspanbankcom B Should This Bird Still Fly Case Study Analysis establishes Automobile of Tomorrow without partnership so result is that chauffeurs did not like that principle. It was likewise discovered that NASCAR had no efficient technique for company interaction.
Opportunities.
Opportunities in SWOT analysis are external elements which can be favourable to company or the external elements on which business is having competitive benefit. NASCAR usually used to count on conventional media sources like local paper for publicity of its sports. Generally these traditional media sources attempt to cover their house group and particular kind of events. NASCAR likewise familiarized from these conventional media outlets that sport was challenging to cover. Media landscape likewise changed from standard to digital landscape. Newspapers went out of business. NASCAR can work on its capabilities to get maximum possible benefits from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR used to get pay check of around $15 million annually from Turner Sports. There are variety of cons behind this offer. For example Wingspanbankcom B Should This Bird Still Fly Case Study Solution had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every video which is shoot during race at track. Then they are required to pay licensing charges to Turner Sport, if media sources like newspapers, magazines and cable channels want to publish videos of races on their particular pages. So NASCAR can deal with conditions and terms and try to negotiate with Turner Sports to get maximum advantages of it. Star power plays very crucial role in generating revenues from every sport. However it was noted that Wingspanbankcom B Should This Bird Still Fly Case Study Solution is lagging in this location i.e. star power. When sports fans were asked relating to popular celebrities and stars then NASCAR chauffeur was not found even in leading twenty actions. NASCAR can put efforts in this area too for income generation. They should assist their drivers that how they can end up being sport stars. 4 tactical focuses which are generated by research study group can likewise be worked as chance for NESCAR. These four strategic focuses compares and analysis Wingspanbankcom B Should This Bird Still Fly Case Study Analysis techniques.
Dangers
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 individuals would be having less return on investment. Economic down turn also results in boost fuel costs which also impacted NASCAR. Now if NASCAR make substantial financial investments in new sectors which are based on new customers 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 since NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are utilized to recognize success, intensity and attractiveness of NASCAR organisation.
Competitive Rivalry
These motorists can go versus NASCAR if they got better chance in terms of prizes and television exposure. If audiences take pleasure in other race cars and trucks and drivers more than NASCAR then audiences can shift to those other interesting vehicles and drivers. NASCAR could be having threat from its two direct rivals that is Formula 1 and Moto GP.
Supplier Power
If business shifts from one provider to another, the provider power indicates the number of providers are readily available in industry and what is the cost associated with supplier. In this industry there is supply monopoly since drivers with needed skills and resources are restricted.
Purchaser Power
In the case of NASCAR clients are its viewers. Audiences can switch to other rivals quickly because viewers will having low switching cost.
Risk of Substitution
Substitutes are referred as alternatives. The alternatives in this case can be other entertainment implies like viewers can shift to other sports. So there are vast array of replacements are offered in this scenario which suggests that danger of replacement is high.
Risk of New Entry
In the case of NASCAR threat of brand-new entry is low. They require to build cars and racing tracks and also needs to pay significant amount to motorists for changing.
PESTEL Analysis
Political
As NASCAR is working in numerous markets so it requires to deal with different regulations. It is also noted that NASCAR has actually faced increased scrutiny concerning regulatory. Every government has various top priority so NASCAR has actually to be prepared for it as concern can be moved to other sector.
Affordable
Economic aspects consists of taxation rate, exchange rate, economic performance of that specific business, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be affected. NASCAR can take advantage of capabilities of employees to create brand-new chances and enhance existing chances.
Social
Each has various social worths and norms. It assists in understanding concerning society and preference of clients.
Technical
Technology has influence on practically every company. It consists of development in business method. In this case of Wingspanbankcom B Should This Bird Still Fly Case Study Solution it can be noted that business are heavily investing for research study and development. NASCAR needs to likewise deal with its media rights policy with Turner Broadcasting System.
Legal
Legal plays an important function in every nation since every nation has various legal terms and conditions. Wingspanbankcom B Should This Bird Still Fly Case Study Help needs to be make sure that they protect their legal rights in every county so any company does not harm to its legal rights.
Environmental
Environmental factors are likewise important for every organisation. Since generally federal governments do not permit those business which can hurt to environment. These environmental elements includes laws regarding pollution, environment change, safe garbage disposal, policies regarding insurance coverage and so on. NASCAR requires to ensure that its cars and trucks are not producing contamination more than acceptable level.
7 P's of Marketing
Item
The items of Wingspanbankcom B Should This Bird Still Fly Case Study Help in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to corporate online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rate.
Pricing method of NASCAR for its race events tickets is based upon the venue and significance of the racing events. In addition to race events tickets, NASCAR likewise charge numerous service fees to its stakeholders and earns income. It charged sanctioning fees of $1-2 million per race on average in 2005.
Promotion.
Marketing technique of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
Location.
NASCAR have its racing tracks in numerous cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in the majority of the cities in United States to comprehend across the country popularity.
Individuals.
Nestle individuals strategy is consisted of providing much better experience to its audiences, its fan base and to all of its stakeholders. People are a crucial element of Wingspanbankcom B Should This Bird Still Fly Case Study Help A marketing strategy as its events are the source of home entertainment for crowd. Its people technique includes efforts to provide much better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under individuals strategy of NASCAR.
Procedures.
A number of organisation processes are needed to conduct racing occasions in an efficient method. These procedures include; correct schedule of time, arrangement for viewers, selling tickets, arrangement of space for sponsors, managing logistics etc. These all procedures contribute I constructing NASCAR image, enhancing viewers experience and increasing fan base.
Physical Evidence.
Essential physical proofs for the NASCAR includes the existence of its racing tracks, stock automobiles and racing events. Together with it, its merchandising brand names including t-shirts, caps, goodies and so on, likewise act as a physical proof for NASCAR.
Item Life Cycle Evaluation.
The racing occasions by Wingspanbankcom B Should This Bird Still Fly Case Study Analysis was presented 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 very first stage competition for NASCAR was low, as the rivals drove the vehicles similar to the cars driven by normal people.
Growth.
The first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the company moved towards transmitting 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 regional Sport popular organization into one with worldwide fan base. He started a brand-new period of lucrative sponsorships and television contracts for NASCAR.
Maturity.
The maturity period for NASCAR started with the efforts of William France Jr., with the business having vast array of revenue sources. The business has about 500 sponsors with transmitting its occasions in about 150 countries. The company has a great deal of tracks in the majority of the cities of United States.
Decline.
The major causes of decline consist of the financial crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.
Market Division.
The market division of Wingspanbankcom B Should This Bird Still Fly Case Study Help can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical division of Wingspanbankcom B Should This Bird Still Fly Case Help is based upon the geographical presence of its tracks in different states and cities in United States, and the tv broadcasting of its events in different countries. The business 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 huge geographical division provides the business regional as well as international fan base.
Group.
The group division of Wingspanbankcom B Should This Bird Still Fly Case Study Solution is also highlydiverse based upon the gender, earnings and age of the consumer. To increase the market sector of its market NASCAR must modify its marketing strategies to draw in more age groups and lower its prices to go into in the market section with a low typical earnings.
Psychographic.
NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to purchase tickets and see the races when in a week. NASCAR has actually attempted to increase the quality of its racing by introducing phase racing, they also have actually tried to lower prices and make the event more hassle-free by introducing live racing.
Behavioural.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the tv or by going in the events. Currently, the fans preference is towards enjoying the race at house on television rather than going, as the customer experience at NASCAR tracks is not favourable as well as expensive.
Target Market.
Hispanics.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market section has terrific potential for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids.
Kids are likewise one of the possible target market segment for NASCAR, as they are more linked socially than other groups. Automobile racing video games established by Wingspanbankcom B Should This Bird Still Fly Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and enhancing its digital functions to attract the kids target market.
Generation Y.
Generation Y target audience consists of those who spent five times more resources on discretionary expenditures i.e. purchasing tickets for racing occasions, than others. This substantial expense makes the segment capacity for NASCAR marketing strategy of increasing its fan base. The marketplace segment is likewise easy to approach as 81% of the Y Generation customer uses Facebook every day and the use is two times of using television and radio. The marketplace segment views sports as a get-together, rather than adherence to sport. The marketplace sector thinks about NASCAR as a company lacking in developing a multiculturalism atmosphere. Wingspanbankcom B Should This Bird Still Fly Case Study Analysis needs to take numerous actions to enhance the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions regarding marketing.
Climate/Context.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, legal and ecological and is specified above.
Company.
NASCAR is an auto racing company with having USP of high quality vehicle 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. Business has closed business culture and having non-interventionist approach.
Partnerships.
Collaborations includes suppliers, providers and alliances of Wingspanbankcom B Should This Bird Still Fly Case Study Analysis. It is collaborated with different racing groups which are taking part in racing. It also collaborated with Turners Sport for digital rights. NASCAR used to make money check of around $15 million yearly from Turner Sports. There are variety of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of each and every single video which is shoot throughout race at track.
Customers.
The customer of Wingspanbankcom B Should This Bird Still Fly 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.
Competitors.
The direct competitors of NASCAR are Formula 1 and Moto GP. Teams normally represents sponsors in NASCAR and the medium of advertising is drivers. Therefore it can be stated that drivers and race vehicles are competitors. If they got better opportunity in terms of rewards and tv exposure, these chauffeurs can go against NASCAR.
Marketing Strategies.
1. Keeping and developing Facebook Page.
One of the possible target markets segments for NASCAR is Hispanics which is the growing population section of U.S.A. but unfortunately NASCAR had been unable to attract the this targeted section. It needs to develop a Facebook page containing the information concerning the races and the areas of tracks to make the consumer useful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Secret Drivers.
Wingspanbankcom B Should This Bird Still Fly Case Study Help motorists has a low star power as compare to players of other sports. The poor contacts with fans result in less destination of audiences towards the racers and a low star power. Star power is a crucial aspect for bring in viewers towards tracks and towards tv.
3. Establishing New Games and enhancing existing games for kids.
In order to draw in these kids, NASCARA ought to enhance its present racing games by introducing modification in the cars i.e. altering colours, choice of speed, presenting group racing in the game, using much better graphics related to the racing tracks and introducing various levels in the game. All these modifications in the current video game would offer better experience to kids.
Along with it, NASCAR must also build new games related to racing like kids racing with kids characters as drivers, cartoon racing with racing in between various cartoon characters with a choice of choosing the preferred cartoon character for the kids. These techniques would make it possible for the company to draw in one of its possible target sectors.
4. Introducing multiculturalism at occasions.
Wingspanbankcom B Should This Bird Still Fly Case Study Solution events are comprised of fans with extremely few multiculturalism, due to expense of arrival in occasions, making it unappealing for the customers viewing sport occasions as affairs i.e. Generation Y consumers. As the Generation Y customers are a possible target market for NASCAR, therefore the business needs to take certain measures to attract this prospective target market. It should adopt methods to draw in the consumers far from the tracks place with different culture. The technique to do so might be supplying unique discount rates on tickets or totally free tickets to viewers originating from a specific range or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR ought to work on facilities and facilities at tracks since on the race day viewers got disappointed. Audiences have numerous expectations from Wingspanbankcom B Should This Bird Still Fly Case Study Solution since in same industry other companies are providing better services than NASCAR. IF NASCAR don't work on this problem then its fans may moved to its competitors.
Marketing Budget
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 methods. (See Appendix B). It can be seen that method 5 of enhancing customer experience at tracks would need greatest initial investment and expense and technique 4 of presenting multiculturalism will require lowest initial financial investment with most affordable even more each year expense. The business must prioritize the resource allowance on these techniques on the basis of its available resources and the potential benefits which the method would offer.
KEEP IN MIND: The worths about expense are presumed on reasonable basis due the lack of truths and figures connected to cost in the case study. Inflation rate of United States is assumed to be 10%.
Recommendations.
On the basis of deep analysis of the internal and external factors of Wingspanbankcom B Should This Bird Still Fly Case Study Help causing the decrease of television viewership rate and attendance rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long term. These strategies would handle internal aspects like bad client experience at tracks, inadequate social media marketing, incapable digital medias like video 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.
