Word Of Mouth Referral Module Note Case Study Solution & Analysis
Introduction
Word Of Mouth Referral Module Note Case Study Help (National Association for Stock Car Car Racing) is an organization conducting series of Stock Automobile racing in United States and acting as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. The organization was founded in 1947, by "Huge Expense" France. NASCAR set up Stock Car Racing occasions in United States with the existence of about 130000 audiences typically in 2005. It also transmitted its events in about 150 nations. Stock Automobile Racing by NASCAR is the 2nd biggest viewer sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its revenue. The other sources of profits for Word Of Mouth Referral Module Note Case Study Help includes; 10% of the total earnings from television rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist technique. This non collective technique brings tensions in the sport. The structure of Vehicle of Tomorrow by Word Of Mouth Referral Module Note Case Study Solution, with an intention of safety for the motorists, brought numerous stress among the stakeholders of the sport.
The communication audit, performed in 2010, revealed that in spite of the reality that the business highly rely on the communications between its stakeholders, there was no recognizable organisation interaction method. The industry's target customers, instructions and goals were all unidentified.
The audit pointed out different lacking of NASCAR in terms of absence of internal integration, lack of fan management strategy and lack of digital and social media of marketing.
Word Of Mouth Referral Module Note Case Study Help audiences was highly loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business online marketers.
Problem Declaration.
The company is presently dealing with the problem of declining rates of presence at racing tracks and rates of television audiences. This can put a significant influence on its revenues from sponsors, media rights, and from other sources of income.
Situational Analysis.
The company was quite effective till 2005 with its traditional marketing techniques, however soon after 2005 the business starts dealing with different issues including decrease of its fan base. Numerous external in addition to internal elements are responsible for the decline. Internal aspects include; inadequate financial investment in social media and other digital medias of.
Fan base of NASCAR made up of married males with an average age of 47, which passes their fandom to their children and create generational loyalty. Other obstacles for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on.
SWOT Analysis.
Strengths.
In SWOT analysis, strengths specified as company's qualities which are different from its competitors. These are business's core competencies on which business performance or company success based on. Word Of Mouth Referral Module Note Case Study Help core competencies includes it has rights of dictating guidelines as approving body. Guidelines and policies relating to expert stock vehicle racing are dictated by NASCAR like if any team with needed skills and resources can participate in races by following guidelines and guidelines determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to broadcast in more than 150 nations worldwide with more than $56 million incomes. The primary sources of their revenues come from television rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and corporate sponsors. Since of most significant brand name loyalty of fans toward brand names advertised by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weak points.
Weak points of NASCAR includes its close culture which is non collective. Word Of Mouth Referral Module Note Case Study Solution develops Automobile of Tomorrow without partnership so result is that drivers did not like that idea. It was also found that NASCAR had no effective strategy for business interaction.
Opportunities.
Opportunities in SWOT analysis are external aspects which can be favourable to business or the external aspects on which company is having competitive advantage. NASCAR usually used to depend on traditional media sources like local newspaper for publicity of its sports. Generally these traditional media sources attempt to cover their house group and specific kind of occasions. NASCAR also familiarized from these conventional media outlets that sport was challenging to cover. Media landscape also altered from standard to digital landscape. Papers failed. NASCAR can deal with its capabilities to get optimal possible gain from this new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in digital and social media to get its advantages. Digital rights of NASCAR were also sold to Turner Sports. NASCAR used to earn money check of around $15 million each year from Turner Sports. There are number of cons behind this offer. For example Word Of Mouth Referral Module Note Case Study Help needed to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every single video which is shoot during race at track. Then they are needed to pay licensing charges to Turner Sport, if media sources like newspapers, publications and cable channels want to post videos of races on their respective pages. NASCAR can work on conditions and terms and attempt to work out with Turner Sports to get optimal benefits of it. Star power plays very crucial function in generating profits from every sport. However it was kept in mind that Word Of Mouth Referral Module Note Case Study Help is lagging in this area i.e. star power. When sports fans were asked relating to popular celebrities and stars then NASCAR motorist was not found even in top twenty responses. So NASCAR can put efforts in this location too for earnings generation. They ought to direct their drivers that how they can become sport stars. 4 tactical focuses which are created by research study team can also be acted as opportunity for NESCAR. These 4 tactical focuses compares and analysis Word Of Mouth Referral Module Note Case Study Solution methods.
Dangers
Economic down turn was experienced in late 2000 which can be danger for NASCAR since if there is economic down turn then individuals would be having less return on investment. Economic down turn also results in increase fuel rates which likewise impacted NASCAR. Now if NASCAR make significant investments in brand-new sections which are based on brand-new customers then it may deal with unfavorable remarks from its core fan base.
Porter's 5 Forces Analysis
It is crucial to understand market in which company is working since NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to identify profitability, intensity and appearance of NASCAR company.
Competitive Competition
These drivers can go versus NASCAR if they got better opportunity in terms of prizes and tv direct exposure. If viewers delight in other race vehicles and drivers more than NASCAR then viewers can move to those other fascinating automobiles and drivers. NASCAR might be having threat from its two direct competitors that is Solution 1 and Moto GP.
Supplier Power
The provider power shows the variety of suppliers are offered in industry and what is the expense associated with provider if company shifts from one provider to another. Because drivers with needed resources and abilities are limited, in this market there is supply monopoly.
Purchaser Power
This force is regarding to consumers that is it simple for consumers to shift to other items. If there is more switching cost is associated then consumers are less most likely to switch. In the case of NASCAR consumers are its audiences. Viewers can switch to other competitors easily because viewers will having low switching expense.
Risk of Substitution
Substitutes are referred as alternatives. The substitutes in this case can be other home entertainment suggests like viewers can move to other sports. There are large range of replacements are offered in this situation which recommends that hazard of alternative is high.
Threat of New Entry
In the case of NASCAR danger of brand-new entry is low. They need to construct vehicles and racing tracks and likewise needs to pay significant quantity to chauffeurs for changing.
PESTEL Analysis
Political
It can not be concluded from case study that there would be modification in resource allotments. NASCAR had actually got gain from lower tax policies which leads to increasing in profits. They made heavy financial investments in the research and development. As NASCAR is working in various markets so it requires to face various guidelines. It is also kept in mind that Word Of Mouth Referral Module Note Case Study Solution has actually faced increased examination relating to regulative. Every government has various top priority so NASCAR has to be prepared for it as top priority can be moved to other sector.
Economical
Economic elements includes tax rate, currency exchange rate, economic performance of that particular business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its rivals can be impacted if there is government intervention in the marketing and sales sector. NASCAR can utilize capabilities of employees to create brand-new chances and improve existing opportunities.
Social
Each has various social worths and norms. It helps in comprehending concerning society and choice of customers.
Technical
In this case of NASCAR it can be kept in mind that business are greatly investing for research and development. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.
Legal
Because every country has various legal terms and conditions, Legal plays an essential role in every country. Word Of Mouth Referral Module Note Case Study Help requires to be ensure that they protect their legal rights in every county so any company does not hurt to its legal rights.
Environmental
Environmental elements are also important for every organisation. NASCAR requires to make sure that its vehicles are not producing pollution more than appropriate level.
7 P's of Marketing
Product
The items of Word Of Mouth Referral Module Note Case Study Help in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rate.
Pricing method of NASCAR for its race occasions tickets is based upon the location and value of the racing events. Together with race events tickets, NASCAR also charge different service charge to its stakeholders and makes earnings. For instance it charged sanctioning charges of $1-2 million per race usually in 2005.
Promo.
Promotional strategy 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.
Place.
NASCAR have its racing tracks in different cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car 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 comprehend across the country appeal.
People.
Nestle people strategy is comprised of offering much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential element of Word Of Mouth Referral Module Note Case Study Analysis A marketing strategy as its events are the source of entertainment for crowd. Its individuals strategy includes efforts to provide better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under people method of NASCAR.
Processes.
A number of service processes are needed to conduct racing occasions in an efficient method. These procedures consist of; proper schedule of time, arrangement for viewers, offering tickets, plan of space for sponsors, handling logistics and so on. These all procedures contribute I developing NASCAR image, improving viewers experience and increasing fan base.
Physical Evidence.
Essential physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and racing occasions. Along with it, its retailing brands consisting of tee shirts, caps, goodies and so on, also act as a physical proof for NASCAR.
Product Life Process Evaluation.
The racing events by Word Of Mouth Referral Module Note Case Study Analysis was introduced on June 19, 1949. The very 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 competitors for NASCAR was low, as the rivals drove the cars and trucks comparable to the vehicles driven by regular people.
Development.
The very first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards relaying its races on tv in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with worldwide fan base. He started a brand-new era of lucrative sponsorships and tv agreements for NASCAR.
Maturity.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having large range of revenue sources. The company has about 500 sponsors with transmitting its occasions in about 150 nations. The business has a great deal of tracks in most of the cities of United States.
Decrease.
The decrease in the business's offerings started after 2005 with typical participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The major causes of decrease consist of the financial 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.
Market Segmentation.
The marketplace division of Word Of Mouth Referral Module Note Case Study Help can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographic.
The geographical division of Word Of Mouth Referral Module Note 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 occasions in different nations. The company has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division provides the business local as well as global fan base.
Group.
The group segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its present fan base is majorly consisted of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the group segment of its market NASCAR need to revise its marketing techniques to draw in more age and lower its costs to enter in the market section with a low typical income.( htt1).
Psychographic.
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races as soon as in a week. NASCAR has attempted to increase the quality of its racing by presenting stage racing, they also have attempted to lower rates and make the occasion more convenient by presenting live racing.
Behavioural.
Behavioural division of Word Of Mouth Referral Module Note Case Study Solution is based upon the behaviour of fans in regards to enjoying the race survive on the tv or by going in the events. Currently, the fans choice is towards watching the race at home on tv rather than going, as the customer experience at NASCAR tracks is not favourable along with pricey. This choice makes the rates for participation lower than the rates for tv viewers. NASCAR needs to change the behaviour of its fan base by presenting qualitative services at its tracks.
Target audience.
Hispanics.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market section has excellent prospective for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids.
Kids are also one of the prospective target market section for NASCAR, as they are more linked socially than other groups. Vehicle racing video games developed by Word Of Mouth Referral Module Note Case Study Help can be a potential source of getting attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and enhancing its digital functions to bring in the kids target market.
This substantial expenditure makes the section potential for NASCAR marketing strategy of increasing its fan base. The market section thinks about NASCAR as an organization lacking in developing a multiculturalism atmosphere. NASCAR needs to take numerous steps to improve the experience of Generation Y customers in its occasions.
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 environment or context in which NASCAR is working. PESTLE stands for political, economic, social, technical, environmental and legal and is specified above.
Business.
NASCAR is a car racing business with having USP of high quality auto racing with a global structure. Its sector is sports team and events. Its target market is males in the age of 15-60 years. Business has actually closed corporate culture and having non-interventionist method.
Partnerships.
Collaborations includes suppliers, suppliers and alliances of Word Of Mouth Referral Module Note Case Study Help. It is teamed up with various racing teams which are participating in racing. It likewise teamed up with Turners Sport for digital rights. NASCAR utilized to get pay check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. For instance NASCAR needed to get approval from Turner Sport if it want to create its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track.
Customers.
The client of Word Of Mouth Referral Module Note Case Study Solution are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and produce generational commitment.
Competitors.
The direct rivals of NASCAR are Formula 1 and Moto GP. Groups generally represents sponsors in NASCAR and the medium of advertising is drivers. It can be said that motorists and race cars are rivals. These chauffeurs can go against Word Of Mouth Referral Module Note Case Study Analysis if they improved chance in terms of prizes and television exposure.
Marketing Methods.
1. Establishing and Preserving Facebook Page.
One of the potential target markets segments for NASCAR is Hispanics which is the growing population section of U.S.A. however regrettably NASCAR had been unable to attract the this targeted sector. It should establish a Facebook page containing the info concerning the races and the areas of tracks to make the consumer informative about the core operations of NASCAR.
2. Developing and Updating Accounts of Key Drivers.
NASCAR motorists has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Display). The significant factor behind it is that, the racers mostly play in groups and are not able to develop a key account and keep a close contact with fans. The bad contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is an essential element for bring in audiences towards tracks and towards tv. The star power for the motorists at NASCARA might be improved by creating and upgrading accounts of essential drivers by NASCARA itself. This would get rid of the requirement of requiring drivers to maintain their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Establishing New Games and enhancing present games for kids.
Kids spent most of their time on playing video games and using mobile phones. However regrettably, kids playing NASCARA have a worst experience of playing its games. As a result, they are less drawn in towards the sport. In order to attract these kids, NASCARA ought to enhance its current racing games by presenting customization in the automobiles i.e. changing colours, choice of speed, presenting group racing in the video game, using much better graphics connected to the racing tracks and introducing numerous levels in the video game. All these adjustments in the present game would supply better experience to kids.
Along with it, NASCAR ought to also develop new games related to racing like kids racing with kids characters as motorists, animation racing with racing between various animation characters with a choice of selecting the favourite cartoon character for the kids. These techniques would allow the company to bring in among its possible target sectors.
4. Introducing multiculturalism at occasions.
Word Of Mouth Referral Module Note Case Study Analysis occasions are comprised of fans with very few cultural diversity, due to cost of arrival in occasions, making it unattractive for the customers perceiving sport events as affairs i.e. Generation Y clients. As the Generation Y customers are a potential target audience for NASCAR, therefore the company must take specific steps to attract this potential target audience. It needs to adopt strategies to bring in the consumers far from the tracks area with different culture. The technique to do so might be offering special discount rates on tickets or totally free tickets to audiences originating from a particular range or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more pleased.
5. Improving Consumer Experience at Tracks.
Word Of Mouth Referral Module Note Case Study Solution should deal with infrastructure and facilities at tracks because on the race day viewers got dissatisfied. Viewers have many expectations from NASCAR because in very same market other business are supplying better services than NASCAR. Then its fans may moved to its competitors, if NASCAR don't work on this issue. According to fans there were not adequate facilities were readily available as compare to other sports service providers. NASCAR must make sure that it supply sufficient facilities that includes cleaned washrooms, comfy seating plan. They should also provide WIFI services and availability of credit cards throughout that track. It should be likewise make sure that there are enough jumbo turns placed at all needed places. There ought to be likewise food stalls that offer quality food to viewers. In this method viewers will be having enjoyable experience at the day of occasion. (See Appendix B).
Marketing Budget plan
Marketing spending plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the expense related data for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of improving customer experience at tracks would require highest preliminary financial investment and expense and technique 4 of introducing multiculturalism will require least expensive initial financial investment with lowest further annually expense. The business should focus on the resource allotment on these methods on the basis of its offered resources and the potential benefits which the technique would offer.
KEEP IN MIND: The worths about cost are presumed on rational basis due the lack of figures and realities related to cost in the event study. Inflation rate of United States is assumed to be 10%.
Suggestions.
On the basis of deep analysis of the external and internal elements of Word Of Mouth Referral Module Note Case Study Analysis triggering the decrease of tv viewership rate and presence rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long run. These methods would deal with internal elements like poor customer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., in addition to with external factors like shifting of fans towards other sports, demographical changes in America and altering domesticity designs.
