Case Study: Marketing Analysis of NASCAR and NBA Strategies

This case study provides a comprehensive marketing analysis of NASCAR, comparing its strategies with the NBA. It examines the history and overview of both brands, highlighting their differences in promotion, consumer engagement, and economic impacts. The study delves into the influence of the economy, demographics, and sponsorships on each brand. It draws comparisons between NASCAR and NBA, assessing their strengths and weaknesses. The analysis provides recommendations for NASCAR to enhance its marketing strategies, including leveraging social media, creating sports icons, and improving sponsor relationships. References to relevant academic sources are included, offering a well-rounded and insightful perspective on sports marketing dynamics.

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Marketing Analysis
Case Study of NASCAR

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Table of Contents
Introduction......................................................................................................................................3
Overview of the Brands and their differences.................................................................................3
How has economy impacted both brands?......................................................................................4
Demographics and Sponsors............................................................................................................4
Learning from Each Brand..............................................................................................................4
Recommendations for NASCAR.....................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
Marketing is one of the crucial jobs for every organisation to reach a mass audience and increase
the sales and revenue of organisations. Over the years marketing as a tool has grown in stature
showing the rise in competition and the impact of effective execution of marketing strategies has
been positive for companies. In order to effectively achieve the marketing objectives, it is
important for organisations to make sure effective analysis of the market and immediate rivals is
done in the best possible manner which would help to improve the marketing strategies and also
help to generate sales and revenue (Shank & Lyberger, 2014, p. 10). Especially when it comes to
the sports industry in the US it becomes extremely important for each sports organisation to
maintain a strong consumer connection which would help to improve the reach of the sports.
Overview of the Brands and their differences
The history of the National Association for Stock Car Auto Racing goes way back in the early
40s. The sport that started merely for personal fun was officially launched for public
entertainment by William Henry France Sr. in the year 1948 headquartered in Daytona Beach,
Florida. NASCAR since then has become a household and often considered the real sports in the
US entertainment industry. NASCAR has since then been largely preferred by the sponsors
heavily because of its attractive nature. As per the official reports, the total revenue collected by
the company this year until February is $158million. NASCAR has received a fair amount of
interest from the consumers over the years but it has also faced significant competition from the
other sports organisations for instance like the Premier Soccer League or NBA has gained
significant interest in the market (Jeffery & Williams, 2017, p. 27).
The National Basketball Association is a men’s basketball competition that pans American
project. NBA is one of the most followed sports in the US just below NFL and followed by
soccer. The NBA is the largest basketball competition all across the world and in fact, it is also
considered as the third largest among domestic professional sports in terms of attendance all
across the world. Founded in 1946 basketball has become the passion for US consumers that
goes on decades. As per the latest report, 30 teams of the NBA has generated revenue of $ 7.4
billion in the financial year of 2017 (AÇAR, 2017, p. 22).

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One of the major differences between NASCAR and NBA as brands is the way both the brands
promote themselves. When the passion for NBA is almost in every house in the US NASCAR
has failed to create that excitement among consumers only because of the marketing strategy.
Both the sports are filled with higher adrenaline but from the business point of view, NASCAR
has failed to utilise that in the marketing of the brand. Even though NASCAR is a renowned
brand it is not able to connect in an effective manner with the youths and millennial which NBA
has done in an effective manner. Pretty similar to the sports Golf which is considered the game
of the riches have been sidelined and NBA has emerged victorious which clearly shows that it is
all about the connection sport makes with the consumers. There is a number of other factors that
create the difference. For instance, young basketball stars have been highly motivating for youths
and even for older people where other sports stars have not been able to do. The reach and
extensity of NBA are way higher than NASCAR because it is loved way too much which
NASCAR has not been able to create (Duffy, 2018, p. 16).
How has the economy impacted both brands?
The US economy has faced its ups and downs in the recent past. It is important to note that the
economy has a significant impact on almost everything and hence it could be said that both the
brands have been impacted by the economy. Both the brands breed on the healthy and growing
economy which clearly means that anything negative with the US economy is likely to affect the
growth and development of the brands. Especially since racing is a one-man game it largely is
affected by the economy (Erb & Huatbois, 2018, p. 111). For instance, placing a racing team
turns out to be expensive and so is an NBA team but the difference is there is a number of
players to support in an NBA team whereas in racing there’s only one man and this is decided by
the viewers which come with different consequences. There are several monetary reasons that
are directly influenced by the economy which impacts both the brands equally. For instance
increase in the entertainment tax and an increase in costs for the satellite, rights play a major role
for both the brands (Hudgins, 2017, p. 81-23).
Demographics and Sponsors
As discussed earlier one of the drawbacks for NASCAR is it is not able to motivate and
influence youths and millennial which has been effectively done by NBA. This is where the

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latter gets upper hand. NBA targets young to middle-aged people from different income segment
which means the segmentation of NBA is mainly done on age. On the other hand, NASCAR
directly attracts with the help of income segment and targets people who make significant
lifestyle choices (Shank & Lyberger, 2014, p. 76-77).
Sponsors are also exclusively chosen for NASCAR whereas NBA focuses on more sponsors and
more money. NASCAR is particular about not putting more than two logos in the jersey whereas
NBA doesn’t have any policy like that and more than two sponsors are welcome which makes it
complex for NBA teams at times (Goldsmith & Walker, 2015, p. 45).
Learning from Each Brand
NASCAR has lacked effective sponsors in the recent past because of its failed promotional
strategy so it can learn the promotional strategy from NBA. NBA has been excellent in going
through the social media marketing which NASCAR could execute in its marketing model.
NASCAR should also focus on creating Sporting icons as leaders like NBA does. The likes of
LeBron James and Kobe Bryant are idolised and NASCAR should implement. On the other
hand, NBA should focus on understanding the marketing model of NASCAR and its insights on
sponsor influence that would help NBA to improve its sponsor relationship and reduce
confusion. The three-tier sponsorship concept of NASCAR could be effective for NBA as well
(Davis & Hilbert, 2013, p. 21-23).
Recommendations for NASCAR
In order to maintain a good run and expand its fan base, NASCAR would have to reach the
bigger mass of people. It is important for the organisation to reach consumers through effective
social media marketing strategy and through better and connecting personalised promotion.
NASCAR should invite more and more people through social marketing and creating sports
icons for whom people would be interested to watch racing. This has been done in the world of
F1 where racers like Hamilton, Vettel, and Schumacher have influenced people from various age
groups to watch races (Jeffery & Williams, 2017, p. 123).

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Conclusion
NASCAR is a sports brand that has entertained the US audience for a long time now. In the
recent past, the company has faced a number of issues which clearly shows that it is time to
improve the marketing strategy of the organisation. The present study has put forward a critical
comparison of NASCAR with the National Basketball Association that has helped to provide
effective recommendations.

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References
AÇAR, N. (2017). SPORTS SPONSORSHIP IN SPORTS MARKETING: CASES FROM
GLOBAL BRANDS.
Davis, J. A., & Hilbert, J. Z. (2013). Sports marketing: creating long term value. Edward Elgar
Publishing.
Duffy, M. J. (2018). “I Wanna Be Like Mike:” A Synthesis of Sports Marketing from Babe Ruth
to Michael Jordan.
Erb, G., & Huatbois, C. (2018, May). Sport Marketing Management and Communication.
In Managing Sport Business: An Introduction (pp. 296-318). Routledge/Taylor & Francis
Group.
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.
Hudgins, B. (2017). A Basketball World. Illinois Wesleyan University Magazine, 26(1), 4.
Jeffery, M., & Williams, J. (2017). DuPont-NASCAR Marketing. Kellogg School of
Management Cases, 1-26.
Shank, M. D., & Lyberger, M. R. (2014). Sports marketing: A strategic perspective. Routledge.