University Case Study: Issues and Solutions for NASCAR Marketing

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Case Study
AI Summary
This case study examines the key issues impacting NASCAR, including a declining customer base and viewership, which negatively affects sponsorships and revenue. It identifies internal challenges such as the board's resistance to market changes and ineffective fan management strategies. The study analyzes the demographics of NASCAR fans, including both younger and older segments, and discusses the impact of changing social trends and the rise of single-family households. It recommends targeting the Hispanic market and leveraging social media to enhance popularity and address fan disappointments related to venue experiences. The case study also highlights the issues of digital media rights, recommending NASCAR regain control from Turner Sports to improve their communication through social media and stay competitive in the market. The study provides recommendations for NASCAR to adapt to changing market conditions and improve its marketing strategies.
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Running head: ISSUES WITH NASCAR
Issues with NASCAR
Name of the student
Name of the university
Author note
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1ISSUES WITH NASCAR
Question: 1
The key issues being identified in this case is the depreciation in the loyal customer base
of the NAACAR. With the reduction in the customer base and viewership of NASCAR, the
sponsorships and other sources of income are also being negatively impacted for them. Another
issue being identified is the incompatibility of the board members of NASCAR in adopting the
change in the current market scenario. This is leading to the fact that NASCAR is trailing behind
other major sporting events in terms of viewership in the global market. For the sporting events
such as NASCAR, viewership is the key source of surviving in the market due to the reason that,
the more will be the viewership, the more will be the popularity and sponsorships (Greene et al.,
2014).
In the case study, it is being stated that, marketing communication audit is being initiated
in order review the current communication strategies of NASCAR, however, there are various
other deeper issues being identified in the audit. One of the deeper issues being identified is the
ineffective fan management strategy and it further lead to the gap with the existing customers
(Goldsmith & Walker, 2015). Another issue being identified is the defensive approach of them in
view to the crisis management. This is also having negative impact on their business operation
due to the reason that, the current sporting scenario is much more intensely competitive and thus,
it is important to have offensive marketing strategy to stay ahead in the completion.
Question: 2
The demographics of the fan segment of NASACR are both the younger and adult age
groups. This is due to the reason that, the adult age groups are the loyal customer segment of
them who have started to follow NASCAR at their younger age. On the other hand, the younger
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2ISSUES WITH NASCAR
age groups having fascination with thrill speed and cars also the target customer segment for
NASCAR. Next generation fans are less interested in the sporting events due to various factors.
One of the key factors is the availability of good number of the sporting events for them
(Mueller, 2016). Moreover, with the evolution of the social media and other digital gaming
options, the loyalty for the next generation fan is rapidly reducing.
The inter-generational model of NASCAR is threatened with the emergence of single
family households due to the reason that, single family households are having less time for
recreational activities due to the fact that they are having the entire responsibilities. Moreover,
majority of the single family households are having less financial capability compared to the
earlier families, which further refrain them to attend the sporting events. This model is applicable
not only for NASCAR but also for all the sporting events. This is due to the reason that, in the
current scenario, all the sporting events are being considered as mere leisure activities.
Targeting the Hispanic segment will help NASCAR to have more customer base of
young population. Moreover, Hispanic group is having the fastest ethnic group in terms of
buying power. However, on the other hand one of the key issues to be faced is the cost involved
in personalized marketing activities in order to target them. Catering to the KIDS will help
NASCAR to increase their average rate of customer spending (Anderson & Kilibarda, 2017). In
the case, it is being told that this segment is spending more leisure activities. However, the issue
that will be faced is frequent changing of taste and preference pattern of the customers. This will
be difficult for NASCAR to change frequently according to the requirement.
Catering to generation Y will help NASCAR to enhance their popularity due to the
reason that, this segment is having huge market penetration of the social media. Thus, the
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3ISSUES WITH NASCAR
sporting events of NASCAR will get more amplified. Negative impact will be the unfavorable
impression of this segment regarding NASCAR. It is recommended that, Hispanic group should
be targeted due to the reason that, using of personalized marketing will help to target more
customer segments with having positive impression.
Question: 3
Some fans are disappointed due to the reason that, the venue of NACAR events are
having uncomfortable seats, restroom not being cleaned and jumbotrons not being placed
strategically. These are added with non-acceptance of credit cards and lack of Wi-Fi access.
These disappointments are being emerging in 2011 due to the reason that other sporting events
have already introduced better customer experience services (Meenaghan, McLoughlin &
McCormack, 2013). It is recommended that, NASCAR should benchmark the best sporting
experience in the industry and rectify their venues in accordance to that.
Question: 4
Dangerous irrelevance. The problem emerged is the inability to push the communication
of NASCAR through the digital and social media. Another issue identified is the inability of
NASCAR to regulate the media rights due to the reason hat, it was sold to Turner sports and they
are responsible to control the digital rights of NASCAR (Ashley & Tuten, 2015). It is being
recommended that, in solving the problem, Brian France should concentrate more publicity
through social media. The more will be the popularity, the more will be viewership. Moreover,
NASCAR should buy back the digital rights from Turner sports and manage by own according to
the current market situation.
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4ISSUES WITH NASCAR
Reference
Anderson, E. T., & Kilibarda, V. (2017). NASCAR: Leading a Marketing Transformation in a
Time of Crisis. Kellogg School of Management Cases, 1-15.
Ashley, C., & Tuten, T. (2015). Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology &
Marketing, 32(1), 15-27.
Goldsmith, A. L., & Walker, M. (2015). The NASCAR experience: Examining the influence of
fantasy sport participation on ‘non-fans’. Sport Management Review, 18(2), 231-243.
Greene, A. E., Dotterweich, A., Palmero, M., & Good, D. (2014). A survey of social media:
Perceived effectiveness in marketing among individual NASCAR tracks. International
Journal of Motorsport Management, 2(1), 3.
Meenaghan, T., McLoughlin, D., & McCormack, A. (2013). New challenges in sponsorship
evaluation actors, new media, and the context of praxis. Psychology & Marketing, 30(5),
444-460.
Mueller, T. (2016). Tumultuous times in NASCAR: Antitrust implications for drivers and
teams. International Journal of Motorsport Management, 5(1), 2.
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