NASCAR Summary
NASCAR: Can’t Keep a Good Company Down
Problem Statement:
NASCAR’s successful branding strategy has made it become one the top sports in America. NASCAR faces the challenge of losing TV viewers along with live viewers and must find a way to increase their audience size and in return increase sponsorship.
Situation Analysis:
NASCAR’s main revenue source is from its sponsors. Lower viewership, means less sponsorship and because NASCAR depends so heavily on its sponsors as a source of revenue, NASCAR is feeling the effects of these endorsement cuts. The recession of 2008 had a huge impact on the American economy, and because so many companies suffered with losses in sales, they didn’t have the money for sponsorships. Also because of the recession the support from fans became less and less as prices for the NASCAR race tickets are higher than other sports events and the public in general cut personal spending cost especially on such things as entertainment.
Criteria for Valuation:
NASCAR focus should be on Cost reduction, a market growth strategy, increasing revenues through means other than sponsorships, targeting fans of minority groups and gaining viewership.
Alternatives:
1) Layoff unneeded employees
2) Research alternatives for lowering fuel costs
3) Increasing revenue through other sources such as merchandise
4) Increase number of fans in markets that have been given less attention i.e. women, ethnic groups, youth
5) Work with the community to decrease the costs of travelling for people who come from out of town i.e. Airline costs, Hotel costs, rental cars
6) Sponsor racing events with other leagues
7) Keep focus on families to increase market share
Recommendations:
My recommendation would be to work with the community to lower costs that the fans incur while partaking in a racing event. Working with agencies and other organizations in getting fans ‘special deal’ packages and perhaps including the cost of the tickets into these
Problem Statement:
NASCAR’s successful branding strategy has made it become one the top sports in America. NASCAR faces the challenge of losing TV viewers along with live viewers and must find a way to increase their audience size and in return increase sponsorship.
Situation Analysis:
NASCAR’s main revenue source is from its sponsors. Lower viewership, means less sponsorship and because NASCAR depends so heavily on its sponsors as a source of revenue, NASCAR is feeling the effects of these endorsement cuts. The recession of 2008 had a huge impact on the American economy, and because so many companies suffered with losses in sales, they didn’t have the money for sponsorships. Also because of the recession the support from fans became less and less as prices for the NASCAR race tickets are higher than other sports events and the public in general cut personal spending cost especially on such things as entertainment.
Criteria for Valuation:
NASCAR focus should be on Cost reduction, a market growth strategy, increasing revenues through means other than sponsorships, targeting fans of minority groups and gaining viewership.
Alternatives:
1) Layoff unneeded employees
2) Research alternatives for lowering fuel costs
3) Increasing revenue through other sources such as merchandise
4) Increase number of fans in markets that have been given less attention i.e. women, ethnic groups, youth
5) Work with the community to decrease the costs of travelling for people who come from out of town i.e. Airline costs, Hotel costs, rental cars
6) Sponsor racing events with other leagues
7) Keep focus on families to increase market share
Recommendations:
My recommendation would be to work with the community to lower costs that the fans incur while partaking in a racing event. Working with agencies and other organizations in getting fans ‘special deal’ packages and perhaps including the cost of the tickets into these