Word Of Mouth Referral Module Note Case Study Solution & Analysis
NASCAR (National Association for Stock Cars And Truck Vehicle Racing) is a company conducting series of Stock Car racing in United States and acting as a sanctioning body for driving the guidelines for Stock Car Racing. 2) Stock Vehicle Racing by NASCAR is the second biggest spectator sport, with greatest number of sponsors. 1) The other sources of profits for Word Of Mouth Referral Module Note Case Study Help includes; 10% of the overall earnings from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed corporate culture with the non-interventionist method. This non collective technique brings tensions in the sport. The structure of Cars and truck of Tomorrow by Word Of Mouth Referral Module Note Case Study Solution, with an objective of safety for the motorists, brought different stress among the stakeholders of the sport.
The communication audit, carried out in 2010, revealed that regardless of the reality that business extremely count on the interactions between its stakeholders, there was no recognizable service communication method. The market's target customers, direction and objectives were all unknown.
The audit pointed out various doing not have of NASCAR in terms of absence of internal combination, absence of fan management strategy and absence of social and digital media of marketing. The company has complicated community with independent tracks, drivers and groups. This structure with closed corporate culture bring various difficulties in speeding up a modification. Other partners in ecosystem includes the media networks i.e. television and radio, and corporate marketers.
Word Of Mouth Referral Module Note Case Study Analysis audiences was extremely devoted to the sport and the brands connected with the NASCAR, making it appealing for sponsors and corporate marketers.
The company is presently facing the issue of declining rates of participation at racing tracks and rates of television viewers. This can put a considerable effect on its earnings from sponsors, media rights, and from other sources of revenue.
Although the business was rather successful till 2005 with its traditional marketing strategies, but right after 2005 the company starts facing various problems consisting of decline of its fan base. A number of external along with internal factors are accountable for the decline. Internal factors consist of; insufficient investment in social networks and other digital medias of.
Fan base of NASCAR made up of married males with a typical age of 47, which passes their fandom to their children 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 houses through jumbo turns, Wi-Fi access, and so on.
NASCAR core competencies includes it has rights of determining guidelines as sanctioning body. Rules and policies concerning professional stock car racing are determined by NASCAR like if any group with required skills and resources can get in into races by following guidelines and policies dictated by NASCAR. All the events of NASCAR are sponsored by corporates since of biggest brand name commitment of fans toward brand names advertised by Word Of Mouth Referral Module Note Case Study Help.
Weaknesses in SWOT Analysis are thought about as external elements. Weaknesses includes the elements that stops company to carry out at required level of efficiency. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They normally utilized to form guidelines and other needed processes without intervention of others which leads to poor partnership. NASCAR establishes Car of Tomorrow without cooperation so result is that motorists did not like that principle. As this is racing sport so covering of sports by media is also tough. It was also discovered that NASCAR had no effective method for organisation communication. If it took place off track, they do not understand how to handle problem. Ineffective business communication leads to that they don't have clear direction for their long term objectives. They don't know that where they want to see this sport in future.
NASCAR generally used to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR likewise came to know from these standard media outlets that sport was difficult to cover. When sports fans were asked relating to popular stars and stars then NASCAR driver was not found even in leading twenty actions.
Economic down turn was experienced in late 2000 which can be risk for NASCAR since if there is economic down turn then people would be having less return on financial investment. Economic down turn also results in boost fuel prices which likewise affected NASCAR. Now if NASCAR make substantial financial investments in brand-new sections which are based on brand-new customers then it might deal with unfavorable remarks from its core fan base.
Porter's 5 Forces Analysis
It is essential to understand market in which company is working since NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are utilized to determine success, intensity and attractiveness of NASCAR company.
This force suggests capability of rivals. Teams generally represents sponsors in NASCAR and the medium of marketing is motorists. It can be stated that chauffeurs and race cars are competitors. If they got better chance in terms of prizes and tv direct exposure, these drivers can go against Word Of Mouth Referral Module Note Case Study Analysis. If audiences delight in other race cars and trucks and motorists more than NASCAR then audiences can shift to those other interesting automobiles and chauffeurs. NASCAR could be having hazard from its two direct rivals that is Solution 1 and Moto GP. They require to produce competitive benefits for motorists so they don't move to other competitors.
If business shifts from one provider to another, the supplier power shows the number of suppliers are readily available in market and what is the expense associated with supplier. In this industry there is supply monopoly because drivers with required abilities and resources are limited.
This force is regarding to customers that is it simple for clients to move to other items. Then consumers are less most likely to switch, if there is more changing expense is associated. In the case of NASCAR clients are its audiences. Because audiences will having low changing expense, viewers can switch to other rivals quickly.
Risk of Substitution
Alternatives are referred as alternatives. The substitutes in this case can be other entertainment implies like viewers can shift to other sports. There are broad variety of alternatives are offered in this scenario which suggests that hazard of substitute is high.
Hazard of New Entry
In the case of NASCAR hazard of new entry is low. They need to develop automobiles and racing tracks and likewise needs to pay hefty quantity to chauffeurs for changing.
As NASCAR is working in various markets so it requires to deal with different policies. It is likewise kept in mind that NASCAR has actually faced increased scrutiny regarding regulative. Every federal government has different top priority so NASCAR has to be prepared for it as priority can be shifted to other sector.
Economic aspects consists of taxation rate, currency exchange rate, financial performance of that specific company, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be impacted if there is government intervention in the marketing and sales sector. NASCAR can leverage abilities of workers to create brand-new opportunities and enhance existing opportunities.
Each has different social worths and standards. It assists in understanding concerning society and preference of clients.
In this case of NASCAR it can be noted that business are heavily spending for research study and advancement. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.
Due to the fact that every country has different legal terms and conditions, Legal plays an essential function in every country. Word Of Mouth Referral Module Note Case Study Help requires to be make sure that they protect their legal rights in every county so any business does not harm to its legal rights.
Environmental aspects are also important for every single company. Due to the fact that usually federal governments do not allow those service which can harm to environment. These environmental elements consists of laws regarding pollution, climate modification, safe garbage disposal, policies concerning insurance and so on. NASCAR requires to make certain that its automobiles are not creating contamination more than appropriate level.
7 P's of Marketing
The items of Word Of Mouth Referral Module Note Case Study Help in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to corporate online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Prices method of NASCAR for its race events tickets is based upon the venue and significance of the racing occasions. In addition to race events tickets, NASCAR likewise charge numerous service fees to its stakeholders and makes earnings. It charged approving fees of $1-2 million per race on average in 2005.
Marketing strategy of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in the majority of the cities in United States to comprehend nationwide popularity.
Nestle individuals method is consisted of offering much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important element of Word Of Mouth Referral Module Note Case Study Analysis A marketing method as its occasions are the source of entertainment for crowd. Its people method includes efforts to offer better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under individuals technique of NASCAR.
Several business procedures are required to carry out racing occasions in an efficient method. These processes consist of; proper schedule of time, arrangement for viewers, selling tickets, arrangement of space for sponsors, managing logistics and so on. These all processes contribute I developing NASCAR image, improving viewers experience and increasing fan base.
Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock automobiles and racing occasions. Along with it, its retailing brands including t-shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.
Item Life Cycle Assessment.
The racing occasions by Word Of Mouth Referral Module Note Case Study Solution was presented 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 first phase competitors for NASCAR was low, as the rivals drove the automobiles comparable to the automobiles driven by ordinary individuals.
After performing its first race successfully the business moved towards building its own tracks. The very first Word Of Mouth Referral Module Note Case Study Analysis based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by establishment of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards transmitting its races on television in 1979. The very first occasion transmitted on tv was flag-to-flag coverage of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a local Sport popular company into one with global fan base. He initiated a brand-new period of profitable sponsorships and television contracts for NASCAR.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide variety of profits sources. The business has about 500 sponsors with transmitting its occasions in about 150 nations. The company has a great deal of tracks in most of the cities of United States.
The decrease in the company's offerings began after 2005 with typical presence rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The significant causes of decline consist of the financial crisis of 2008, which increased the cost of getting to tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.
The market division of Word Of Mouth Referral Module Note Case Study Solution can be divided into four sections; 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 various states and cities in United States, and the tv broadcasting of its events in various nations. The company has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation offers the business regional as well as international fan base.
The market division of Word Of Mouth Referral Module Note Case Study Analysis is likewise highlydiverse based upon the gender, earnings and age of the customer. To increase the group segment of its market NASCAR need to modify its marketing strategies to attract more age groups and lower its rates to go into in the market segment with a low average earnings.
The mental qualities of most of the fans are quite similar. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races when in a week. 71% of them prefer to purchase items with a NASCAR brand name. They are quite extrovert and want to join other fans while racing. They desire quality racing with low cost at convenient area. NASCAR has attempted to increase the quality of its racing by presenting phase racing, they likewise have tried to lower prices and make the occasion more practical by introducing live racing.
Behavioural division of Word Of Mouth Referral Module Note Case Study Help is based upon the behaviour of fans in terms of enjoying the race live on the tv or by going in the events. Currently, the fans preference is towards viewing the race in the house on tv rather than going, as the customer experience at NASCAR tracks is not beneficial in addition to pricey. This choice makes the rates for attendance lower than the rates for tv viewers. NASCAR needs to change the behaviour of its fan base by introducing qualitative services at its tracks.
One of the possible target audience of Word Of Mouth Referral Module Note Case Study Solution was Hispanics; the young and growing population of United States. The market segment has great prospective 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. The section reveals affinity with automobile culture, however require a more focused marketing towards inviting the sector towards racing.
Kids are also one of the potential target market sector for NASCAR, as they are more linked socially than other groups. Car racing video games developed by Word Of Mouth Referral Module Note Case Study Solution can be a prospective source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards customizing and improving its digital functions to attract the kids target market.
Generation Y target market consists of those who invested five times more resources on discretionary expenses i.e. acquiring tickets for racing events, than others. This big expense makes the sector capacity for NASCAR marketing strategy of increasing its fan base. The market sector is likewise easy to method as 81% of the Y Generation customer uses Facebook the usage and every day is twice of utilizing television and radio. The marketplace segment views sports as a get-together, instead of adherence to sport. The marketplace sector considers NASCAR as a company lacking in producing a multiculturalism atmosphere. Word Of Mouth Referral Module Note Case Study Solution must take different actions to enhance the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking decisions regarding marketing.
It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, legal and environmental and is mentioned above.
Word Of Mouth Referral Module Note Case Study Solution is a car racing business with having USP of high quality auto racing with a global structure. Its sector is sports team and occasions.
Collaborations consists of suppliers, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application.
The customer of Word Of Mouth Referral Module Note Case Study Help are its audiences. They target consumers with having age of 15-60 years. 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.
Groups generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. These chauffeurs can go versus NASCAR if they got much better chance in terms of rewards and television exposure.
1. Developing and Keeping Facebook Page.
One of the prospective target audience sectors for NASCAR is Hispanics which is the growing population segment of U.S.A. but sadly NASCAR had been unable to bring in the this targeted section. In order to bring in the young growing generation the NASCAR should market by using social media like Facebook. It should establish a Facebook page consisting of the info relating to the races and the areas of tracks to make the consumer informative about the core operations of Word Of Mouth Referral Module Note Case Study Help. It must likewise upgrade its Facebook page on daily basis to offer information about its approaching occasions. This would make the target market segment more useful about business and would result in attracting large fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Exhibit). The significant factor behind it is that, the racers mainly play in teams and are not able to build a key account and keep a close contact with fans. The bad contacts with fans result in less tourist 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 could be enhanced by developing and upgrading accounts of key motorists by NASCARA itself. This would get rid of the requirement of requiring chauffeurs to preserve their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Developing New Games and enhancing current video games for kids.
Kids spent most of their time on playing video games and utilizing mobile phones. Unfortunately, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less brought in towards the sport. In order to bring in these kids, NASCARA should enhance its present racing video games by introducing customization in the cars and trucks i.e. changing colours, selection of speed, introducing group racing in the video game, utilizing better graphics associated with the racing tracks and introducing various levels in the video game. All these modifications in the present game would offer better experience to kids.
In addition to it, NASCAR should likewise develop brand-new games related to racing like kids racing with kids characters as motorists, animation racing with racing in between various animation characters with a choice of selecting the favourite cartoon character for the kids. These methods would enable the business to draw in among its possible target sectors.
4. Presenting multiculturalism at occasions.
Word Of Mouth Referral Module Note Case Study Solution events are comprised of fans with really couple of multiculturalism, due to cost of arrival in occasions, making it unsightly for the consumers perceiving sport events as affairs i.e. Generation Y clients. As the Generation Y consumers are a prospective target market for NASCAR, therefore the company must take certain steps to attract this possible target market. It ought to adopt techniques to attract the customers far from the tracks place with different culture. The method to do so might be providing unique discount rates on tickets or totally free tickets to viewers originating from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more satisfied.
5. Improving Customer Experience at Tracks.
NASCAR ought to work on facilities and features at tracks because on the race day audiences got disappointed. Viewers have lots of expectations from Word Of Mouth Referral Module Note Case Study Help because in same market other business are offering much better services than NASCAR. IF NASCAR don't work on this concern then its fans might moved to its rivals.
Marketing Spending plan.
Marketing budget made on the basis of the above methods 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 improving customer experience at tracks would require highest preliminary financial investment and expense and method 4 of presenting multiculturalism will require least expensive preliminary investment with lowest further per year expense. The company should focus on the resource allotment on these strategies on the basis of its readily available resources and the potential benefits which the method would provide.
KEEP IN MIND: The worths about expense are assumed on rational basis due the absence of figures and realities connected to cost in the case research study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external aspects of Word Of Mouth Referral Module Note Case Study Analysis causing the decline of tv viewership rate and attendance rate at tracks, the above marketing techniques are suggested to NASCAR to increase its fan base in long run. These strategies would cope with internal aspects like bad consumer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., in addition to with external elements like shifting of fans towards other sports, demographical modifications in America and altering domesticity styles.