Nascar CaseEssay Preview: Nascar CaseReport this essaySWOT Analysis:Strengths:Industry leader in auto racing-75 million fansBrand and fan loyaltyAbundant financial resources#1 spectator sport in America (Race attendance up 19% over past decade)Strong corporate sponsorship (Budweiser, Best Buy, Home Depot, 3M, etc.)Use of Co-BrandingExtensive use of multiple media outlets (Internet website, television, radio, video games, magazines, social media, etc.)-Broadcasted in over 150 countries in over 30 languagesVariety of races offered about 1200 races on over 100 tracks:(Sprint Cup Series, Nationwide Series, Camping World Truck Series, International Series, and other Regional Series)Internet based “fan council” used for conducting surveys (12,300 members)Second highest rated regular season sports on TV8 year $4.5 Billion TV contract with FOX, TNT, and ESPNMandatory safety requirementsDifferentiation Strategy (marketing, race experience, Hollywood, Chase for the Cup Playoffs)NASCAR has merchandising rights for watches, clothes, chairs, tables, grills, hats, clocks, flags, doormats, blankets, auto accessories, sunglasses, and food products (Over 3 billion in sales annually
New Green Initiatives-(LEED Certified buildings, tracks made of recycled parts, and more environmentally safe cars)“Drive for Diversity Program”: Ethically diversified company, and increasing woman drivers and crew members“NASCAR Day”: Charity event held Friday before Mays Sprint Cup Race. Raised more than 4.5 million for NASCAR Foundation CharitiesAbility to respond to 3 year decline(08-10) using low-cost strategy(lowered cost of tickets, concessions, and worked with hotels to reduce prices for fans)
Increased TV Views by 9.7 percent in 2011Attendance improved an average of 8,941 per race in 2011Increased 18-34 year old fan base by 20 percent in 2011(“Nascars TV ratings,” 2011)Weaknesses:Races last 3.5+ hoursEffectively targeting NASCAR to every fans needs-Problems holding onto NASCAR origins while at the same time promoting successful changes fans will like-Negative attitudes from southern fans about changes to NASCAR-Allowing blue-collar to still be able to afford racesLack of environmental responsibility (216,000 gallons of fuel used per season)Lack of diversity (few minority or woman drivers)Increased clutter of sponsorships at the race tracksDecline in attendance and TV ratings from 08-10Too much control from France familyA descendent of William France has been CEO ever since company was foundedOpportunities:Strategic placement of tracks and races to get close as possible to target marketsSign new TV contract (current
⑴) – More traffic (50K+) to be able to stay in the lead in markets
The goal wasn’t to target anything but NASCAR, however, a significant number of people believed it to be the right idea even when it came to marketing.
“We had an understanding with a couple of sponsors from the beginning of the program that they would take our idea seriously. They liked the concept so we were kind of interested in the idea and what it would do to the sport,” said a source involved with the announcement. “The idea was not for NASCAR and we were more interested in trying to make it a successful sports team or an American football team. There was some resistance and a lot of thought, but it did make it look good for us.”
The team already has a TV deal in place with ABC-CBS for a six-hour Sunday series and will have a few extra shows as it expands.
The new plan is for the team to be an affiliate of Fox before the network’s 2017 season, where it can target the region’s most populous demographic, such as Hispanics and African-Americans. That way, the network can better communicate and sell to that group.
For instance, a recent study said “Hispanic” and “African-American” fans who visited FBS events were more likely to say they would attend the same events in January. Also, if FBS is to attract Hispanics, it needs to attract Americans of other races, particularly from high schools, who don’t appear on NASCAR’s calendar.
But some owners feel more NASCAR fans are coming here for reasons of their values and for entertainment value.
“It’s not like we’re going to do all that stuff just to bring in fans. They have their own lives. They can relate to other fans. But if they can relate. And so to get attention for our own value, with NASCAR and television, it’s a great way to make an impact,” said Rick Nash, former owner of ABC and who co-wrote a 2004 NASCAR book. “It allows us to create this kind of public education about what the sport is all about. And there is that sense that there is an interest in the sport coming from the white folks.
“The sports industry has been working pretty hard to make this sport great for the white people. We’re bringing it to a level that most Americans never seen before by bringing it to the races and to the fans who come here. We wanted to do all we could do together to bring it in the races and to drive the community to this level that it’s right now. So we do it in a way that promotes this sport, so to get attention and then help the people that are watching the sport reach out more.”
Ships are already out to Puerto Rico, Florida and Georgia, with plans to do those in early 2015.
Ships will sell in some areas but no one is certain how they will reach that target.
Several sports organizations in NASCAR are also taking advantage of the state’s competitive landscape.
NASCAR has a multi-national sports-streaming partnership with the NCAA, making it possible for NASCAR and its affiliates to bring new races every weekend.
But NASCAR is less active in other regions, and it might also be better off going without the brand.
“People want NASCAR, not just for its fans. It’s a part of the fabric of the sport,” said Jeff Gordon, NASCAR parent company. “It has its own history. We’re very active on the sport. We work very hard to have the largest fans in