Word Of Mouth Referral Module Note Case Study Solution and Analysis
Word Of Mouth Referral Module Note Case Study Analysis (National Association for Stock Automobile Automobile Racing) is an organization performing series of Stock Vehicle racing in United States and functioning as an approving body for driving the rules for Stock Car Racing. The company was established in 1947, by "Big Bill" France. NASCAR organize Stock Cars and truck Racing occasions in United States with the presence of about 130000 viewers typically in 2005. It also broadcast its events in about 150 countries. Stock Vehicle Racing by NASCAR is the second largest spectator sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its revenue. The other sources of income for Word Of Mouth Referral Module Note Case Study Analysis includes; 10% of the overall earnings from television rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist technique. The building of Car of Tomorrow by NASCAR, with an intention of safety for the drivers, brought various stress amongst the stakeholders of the sport.
The communication audit, carried out in 2010, revealed that in spite of the fact that the business extremely rely on the interactions between its stakeholders, there was no identifiable service communication method. The industry's target customers, instructions and goals were all unidentified.
The audit pointed out various doing not have of NASCAR in terms of lack of internal integration, lack of fan management technique and absence of social and digital media of marketing.
Word Of Mouth Referral Module Note Case Study Help viewers was extremely faithful to the sport and the brand names associated with the NASCAR, making it appealing for sponsors and business marketers.
The business is currently dealing with the issue of declining rates of presence 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 earnings.
Although the business was rather successful till 2005 with its conventional marketing techniques, but not long after 2005 the business starts dealing with numerous problems consisting of decline of its fan base. Several external in addition to internal factors are responsible for the decrease. Internal elements consist of; insufficient 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 children and create generational commitment. However the family system in America was altering leading to decrease of influence of married male fan base over their children. Along with it perceptions about vehicle was likewise altering with viewing cars and truck a lorry to reach at point B from point A, rather than as a fun project. Other challenges for Word Of Mouth Referral Module Note Case Study Solution consists of the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, etc. These all obstacles were tending the company to revise its marketing methods.
In SWOT analysis, strengths specified as business's qualities which are different from its rivals. These are company's core proficiencies on which business efficiency or business success based on. Word Of Mouth Referral Module Note Case Study Analysis core competencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and guidelines relating to expert stock automobile racing are dictated by NASCAR like if any group with needed skills and resources can participate in races by following rules and regulations dictated by NASCAR. NASCAR has monopoly it this element. Its strengths likewise consists of that it has title of second biggest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to broadcast in more than 150 countries around the globe with more than $56 million revenues. The main sources of their profits come from tv rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and business sponsors. All the events of NASCAR are sponsored by corporates due to the fact that of most significant brand name commitment of fans towards brand names marketed by Word Of Mouth Referral Module Note Case Study Analysis. (See Appendix A).
Weak points of NASCAR includes its close culture which is non collaborative. Word Of Mouth Referral Module Note Case Study Solution establishes Cars and truck of Tomorrow without partnership so result is that motorists did not like that idea. It was likewise discovered that NASCAR had no efficient method for service communication.
Opportunities in SWOT analysis are external elements which can be beneficial to business or the external aspects on which business is having competitive advantage. NASCAR typically utilized to rely on standard media sources like local paper for promotion of its sports. Generally these standard media sources try to cover their home team and particular type of events. NASCAR also came to know from these standard media outlets that sport was challenging to cover. Media landscape also altered from standard to digital landscape. Newspapers failed. NASCAR can deal with its abilities to get optimal possible benefits from this brand-new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in digital and social media to get its benefits. Digital rights of NASCAR were likewise offered 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. For instance Word Of Mouth Referral Module Note Case Study Solution had to get approval from Turner Sport if it want to create its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of every video which is shoot throughout race at track. Then they are required to pay licensing fees to Turner Sport, if media sources like papers, magazines and cable television channels desire to publish videos of races on their respective pages. So NASCAR can work on terms and try to work out with Turner Sports to get maximum benefits of it. Star power plays extremely essential role in producing incomes from every sport. It was noted that NASCAR is lagging in this location i.e. star power. For instance when sports fans were asked relating to popular celebs and stars then NASCAR motorist was not found even in leading twenty actions. So NASCAR can put efforts in this location too for profits generation. They need to assist their chauffeurs that how they can end up being sport stars. Four strategic focuses which are created by research team can also be worked as chance for NESCAR. These four strategic focuses compares and analysis Word Of Mouth Referral Module Note Case Study Analysis methods.
Economic down turn was experienced in late 2000 which can be risk for NASCAR due to the fact that if there is financial down turn then individuals would be having less return on financial investment. Economic down turn also results in increase fuel rates which likewise affected NASCAR. Now if NASCAR make considerable investments in new sectors which are based on brand-new consumers then it might face negative comments from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a design that is utilized to analyse market in which business is working. It assists in identifying what are strengths and weak point of any particular market. It recommend that every market is various from one another. Since NASCAR's bottom line i.e. net revenue is heavily depends on this, it is important to understand industry in which company is working. There are 5 forces that are used to determine success, intensity and appearance of Word Of Mouth Referral Module Note Case Study Analysis business.
This force suggests capability of rivals. Teams typically 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. If they got better opportunity in terms of rewards and tv exposure, these drivers can go against Word Of Mouth Referral Module Note Case Study Solution. If viewers take pleasure in other race cars and drivers more than NASCAR then audiences can shift to those other fascinating cars and motorists. NASCAR could be having hazard from its two direct competitors that is Formula 1 and Moto GP. They need to create competitive benefits for chauffeurs so they don't shift to other competitors.
The provider power shows the variety of providers are available in industry and what is the expense related to supplier if company shifts from one provider to another. Because drivers with required resources and abilities are limited, in this industry there is supply monopoly.
In the case of NASCAR clients are its viewers. Audiences can switch to other competitors quickly due to the fact that audiences will having low changing expense.
Danger of Replacement
Replacements are referred as options. The substitutes in this case can be other entertainment means like audiences can move to other sports. There are large variety of alternatives are readily available in this situation which suggests that hazard of replacement is high.
Threat of New Entry
It is specified as how it is simple for any business to enter in that specific industry. When it comes to Word Of Mouth Referral Module Note Case Study Help hazard of new entry is low. If any company requires to enter in this company than they have to make heavy financial investments, since. They require to construct vehicles and racing tracks and likewise requires to pay large total up to drivers for changing.
It can not be concluded from case study that there would be change in resource allotments. NASCAR had got benefit from lower tax policies which results in increasing in revenues. So they made heavy financial investments in the research and advancement. As NASCAR is operating in various markets so it requires to face different policies. It is also noted that Word Of Mouth Referral Module Note Case Study Help has actually dealt with increased analysis concerning regulatory. Every government has different priority so NASCAR needs to be gotten ready for it as priority can be moved to other sector.
Financial elements includes taxation rate, currency exchange rate, economic performance of that particular company, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be affected if there is government intervention in the marketing and sales sector. NASCAR can leverage abilities of staff members to create brand-new opportunities and improve existing opportunities.
Every society is various from each other. Each has various social values and norms. It helps in comprehending relating to society and preference of clients. Social factors includes traditions, culture, attitudes towards particular services and products, demographics, norms, interests and so on. It can be concluded that marketing through other methods instead of traditional (i.e. newspaper) can be preferred in this society.
In this case of NASCAR it can be noted that business are greatly spending for research and development. NASCAR must likewise work on its media rights policy with Turner Broadcasting System.
Since every country has various legal terms and conditions, Legal plays an important function in every nation. Word Of Mouth Referral Module Note Case Study Solution needs to be ensure that they secure their legal rights in every county so any company does not harm to its legal rights.
Ecological elements are likewise essential for every business. NASCAR requires to make sure that its automobiles are not generating contamination more than acceptable level.
7 P's of Marketing
The items of Word Of Mouth Referral Module Note Case Study Analysis in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates strategy of NASCAR for its race occasions tickets is based upon the location and value of the racing occasions. In addition to race occasions tickets, NASCAR also charge various service charge to its stakeholders and earns earnings. It charged sanctioning charges of $1-2 million per race on average in 2005.
Promotional method 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.
NASCAR have its racing tracks in various cities in United States. The most crucial 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 the majority of the cities in United States to understand nationwide popularity.
Nestle individuals strategy is comprised of offering much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential aspect of Word Of Mouth Referral Module Note Case Study Analysis A marketing technique as its events are the source of entertainment for crowd. Its individuals method includes efforts to supply better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under people strategy of NASCAR.
A number of organisation procedures are required to perform racing occasions in an efficient way. These processes include; proper schedule of time, plan for viewers, selling tickets, arrangement of area for sponsors, managing logistics etc. These all processes contribute I constructing NASCAR image, improving viewers experience and increasing fan base.
Essential physical evidences for the NASCAR includes the existence of its racing tracks, stock automobiles and racing events. In addition to it, its retailing brand names consisting of t-shirts, caps, goodies etc., likewise act as a physical proof for NASCAR.
Item Life Process Assessment.
The racing occasions by Word Of Mouth Referral Module Note Case Study Help 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 competition for NASCAR was low, as the competitors drove the automobiles comparable to the cars and trucks driven by common individuals.
After conducting its first race successfully the business moved towards building its own tracks. The very first Word Of Mouth Referral Module Note Case Study Solution based track, namely 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 relaying its races on tv in 1979. The very first event transmitted 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 changed NASCAR from a local Sport popular company into one with worldwide fan base. He started a brand-new era of financially rewarding sponsorships and tv agreements for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the business having large range of revenue sources. The business has about 500 sponsors with relaying its occasions in about 150 countries. The business has large number of tracks in the majority of the cities of United States.
The major causes of decline include the monetary crisis of 2008, which increased the cost of showing up at tracks for viewers due to increasing fuel costs, and the moving of its fan base towards other sports.
The market segmentation of Word Of Mouth Referral Module Note Case Study Help can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Word Of Mouth Referral Module Note Case Analysis is based upon the geographical presence of its tracks in numerous states and cities in United States, and the tv broadcasting of its occasions in different countries. The company has 23 tracks in about 20 states of America and has television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division offers the company regional in addition to international fan base.
The market segmentation of Word Of Mouth Referral Module Note Case Study Analysis is also highlydiverse based upon the gender, earnings and age of the customer. To increase the market segment of its market NASCAR should revise its marketing methods to bring in more age groups and lower its rates to enter in the market section with a low typical income.
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races once in a week. NASCAR has actually attempted to increase the quality of its racing by introducing phase racing, they also have tried to lower prices and make the event more convenient by presenting live racing.
Behavioural segmentation of Word Of Mouth Referral Module Note Case Study Analysis is based upon the behaviour of fans in regards to watching the race survive on the tv or by going in the occasions. Presently, the fans choice is towards viewing the race in your home on television instead of going, as the customer experience at NASCAR tracks is not favourable along with expensive. This preference makes the rates for participation lower than the rates for tv viewers. NASCAR has to alter the behaviour of its fan base by introducing qualitative services at its tracks.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market section has terrific prospective for NASCAR as the population was growing at a higher 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.
Kids are likewise one of the possible target market sector for NASCAR, as they are more linked socially than other groups. Producing fan base amongst kids can offer a potential boost in the number of fans for racing due to their connectivity. Kids invest most of their times in playing and using smart devices computer game. Car racing video games established by Word Of Mouth Referral Module Note Case Study Analysis can be a possible source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital features associated with kids are not capable of getting the attention. NASCAR needs more attention towards tailoring and improving its digital functions to bring in the kids target audience.
This big expense makes the segment potential for NASCAR marketing strategy of increasing its fan base. The market segment considers NASCAR as an organization doing not have in developing a multiculturalism atmosphere. NASCAR must take numerous actions to enhance the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking decisions relating to marketing. These 5 C's needs to be analysed correctly for taking any marketing choice. These 5 C's mean Environment, Company, Collaborators, Customers and Competitors.
It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, legal and environmental and is stated above.
NASCAR is an automobile racing business with having USP of high quality car racing with a worldwide structure. Its sector is sports team and occasions. Its target market is males in the age of 15-60 years. Company has actually closed corporate culture and having non-interventionist approach.
Collaborations consists of distributors, providers and alliances of Word Of Mouth Referral Module Note Case Study Analysis. It is collaborated with various racing groups which are taking part in racing. It also teamed up with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. For instance NASCAR had to get approval from Turner Sport if it wish to produce its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of every single video which is shoot throughout race at track.
The customer of Word Of Mouth Referral Module Note Case Study Help 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 youngsters and produce generational commitment.
The direct rivals of NASCAR are Solution 1 and Moto GP. Groups generally represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be stated that chauffeurs and race cars and trucks are rivals. If they got much better chance in terms of prizes and television direct exposure, these motorists can go versus NASCAR.
1. Establishing and Preserving Facebook Page.
One of the potential target audience sectors for NASCAR is Hispanics which is the growing population sector of U.S.A. however unfortunately NASCAR had been unable to bring in the this targeted segment. In order to bring in the young growing generation the NASCAR ought to market by using social networks like Facebook. It needs to develop a Facebook page consisting of the info concerning the races and the places of tracks to make the consumer useful about the core operations of Word Of Mouth Referral Module Note Case Study Solution. It should also update its Facebook page on day-to-day basis to supply details about its upcoming occasions. This would make the target market section more useful about business and would lead to bring in big fans base.
2. Establishing and Updating Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The significant reason behind it is that, the racers mainly play in groups and are unable to build a crucial account and maintain a close contact with fans. The poor contacts with fans lead to less attraction of viewers towards the racers and a low star power. Star power is a crucial factor for attracting audiences towards tracks and towards television. The star power for the chauffeurs at NASCARA could be enhanced by producing and upgrading accounts of essential motorists by NASCARA itself. This would get rid of the requirement of forcing motorists to keep their accounts and would lead to increasing fans attention towards NASCARA chauffeurs.
3. Establishing New Games and enhancing current games for kids.
Kids spent most of their time on playing video games and using mobile phones. But regrettably, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less attracted towards the sport. In order to bring in these kids, NASCARA needs to improve its current racing games by introducing customization in the vehicles i.e. changing colours, choice of speed, introducing group racing in the video game, using better graphics connected to the racing tracks and introducing different levels in the video game. All these modifications in the current video game would offer much better experience to kids.
Along with it, NASCAR must also construct new video games associated with racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between different animation characters with a choice of selecting the favourite animation character for the kids. These techniques would make it possible for the company to bring in one of its possible target sectors.
4. Presenting multiculturalism at events.
Word Of Mouth Referral Module Note Case Study Analysis events are comprised of fans with extremely couple of multiculturalism, due to expense of arrival in events, making it unattractive for the customers viewing sport events as social occasions i.e. Generation Y consumers. As the Generation Y consumers are a prospective target market for NASCAR, therefore the company should take specific measures to attract this possible target market. It should embrace methods to bring in the consumers far from the tracks area with different culture. The technique to do so might be offering unique discounts on tickets or complimentary tickets to audiences originating from a specific range or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR should work on facilities and amenities at tracks due to the fact that on the race day audiences got disappointed. Audiences have numerous expectations from Word Of Mouth Referral Module Note Case Study Analysis because in very same market other business are offering better services than NASCAR. IF NASCAR don't work on this problem then its fans might shifted to its rivals.
Marketing Spending plan
Marketing budget made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, shows the expense associated data for the marketing techniques. (See Appendix B). It can be seen that method 5 of enhancing consumer experience at tracks would require greatest preliminary financial investment and cost and technique 4 of introducing multiculturalism will need lowest initial investment with most affordable further each year expense. The company must prioritize the resource allotment on these techniques on the basis of its offered resources and the prospective advantages which the method would provide.
NOTE: The worths about cost are presumed on logical basis due the absence of facts and figures related to cost in the case study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external factors of Word Of Mouth Referral Module Note Case Study Analysis causing the decline of television viewership rate and participation rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long run. These techniques would cope with internal elements like poor customer experience at tracks, insufficient social media marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, along with with external factors like moving of fans towards other sports, demographical changes in America and altering domesticity styles.