Market Analysis free essay sample

Market Analysis of NASCAR As noted from different articles about how NASCAR industry is functioning, this memo will examine the strengths and weaknesses of NASCAR, its website and further discuss environmental forces and finally present the marketing plan to attract females. Strengths of Brand Management Fans’ Accessibility of NASCAR Drivers One major reason that NASCAR has been really successful in recent years is because of their loyal fans. In order to attract more fans each year, NASCAR market sport car races via fans’ favorite drivers, presenting racing drivers in a way that both casual and royal fans can connect, relate and develop special bonds. NASCAR drivers are known as â€Å"media savvy, fan friendly marketing machines. † Willingness to Change NASCAR has operated as a family owned business venture, however, now it has become a multi billion car racing business. One reason behind the success is how NASCAR is able to identify the changes that are needed to make in order to stay in top of business. When a college drop out, Brian France, took over as an CEO of NASCAR from his family, he had a vision of how 190 mph racing sport could potentially become a big money sports like football. Therefore, he started introducing changes. First, he borrowed the model that football and baseball were using and integrated into NASCAR. Strategic changes, such as, introducing different mix of new car brands (Toyota) into NASCAR along with bringing in drivers from F1 Racing and other minorities groups have further strengthened the brand of NASCAR and attracted fans from all over the world. Having different race teams, adding more tracks in different cities add additional flavors and grow the competitiveness of racing in tracks. Weaknesses of Brand Management Inability to Keep Royal Fans NASCAR is gradually losing the interest of racing fans because of their inability to bring competitiveness edge from drivers. Even though cars are getting faster and faster each year, NASCAR royal fans acknowledged the fact how the art of racing is falling apart. For instance, nowadays it is almost impossible for unknown and unproven driver to seriously contend for championship because of lack of sponsorship and trust. Fans can expect who will be winning the championship even before the race starts. In addition, NASCAR is adding more and races in different city each year. Because of many car racings, fans are losing their interest, attendance in each race is slowing down and finally TV ratings are falling apart. Strength of Website Offering customized different gears, hats, via drivers’ names, giving the customers a chance to choose which product they like most. Easy access while visually appealing products are displayed and easy checkout with showing which products are available for standard shipping Organized products by different categories and gender Providing customers’ ratings in each item Integrate together with latest news, drivers’ standings and different teams Social media tools are displayed effectively Weakness of Website Lack of memorable photos from Racing Legends Lack of products that are signed by NASCAR drivers Limited photos, could add photos taken from different angels No option to see recently viewed items No section for favorite and best selling items Environmental Forces Economic Downturn NASCAR is known as â€Å"middleclass sport†, therefore, when America faces recession in recent years, the number of NASCAR viewers decline while saving up for essential goods. During recession, there are less people attending car races and TV ratings are all time low. Big sponsors are also pulling their investment away from business because of the lack of interest in sports. Same sponsors are spending less money on everything they do†, quoted by Richard Childress Racing. Since there is less money for customers to spend, customers will carefully choose necessary vs. luxurious goods. Influence of Competitors The main competitors for NASCAR are other big money sports, such as, football, baseball, hockey, and basketball. Since other sports leagues are also trying to maximize their sport market shares, if NASCAR lost his competitive advantage, sports fans will walk away from car racing and will not spend on NASCAR related goods. F1 racing can be considered as NASCAR’s international competitor. F1 influenced more in European countries and other parts of the world while NASCAR is dominating in America’s car racing. Political and Cultural Forces NASCAR can experience huge loss if their main sponsors are sanctioned due to political and cultural issues. For example, when tobacco companies were forbidden by the Federals from advertising at sports venues and during broadcasts, marketing departments at NASCAR quickly sought new sponsors such as Sprint, Coca cola, to keep their sport alive. If not, racing teams will have insufficient funds to compete. Marketing Plan for Attracting Females Finding more Female Drivers In order to attract more females NASCAR, there is an urgent need to find more female drivers competing in highest level. Car racing should not be limited by gender, even though there is a promising number of females in NASCAR today, adding more females drivers will catch the attention of female viewers and draw them into sports. Appointing Female NASCAR Ambassadors More often than not, there are many female models taking photos during NASCAR races. However, one way to reach females’ market is in fact having current female drivers as the brand ambassadors and gets the message across to the rest of female population. They will help bridge and spread the knowledge of NASCAR. Create a Media Buzz in Social Media Nowadays, social media plays a central role in advertising. Creating a media buzz will attract a lot of attention to females. In fact, identifying a NASCAR driver who is an alpha dog, a polarizing and controversial figure, similar to Tim Tebow will surely create a media buzz and finally lure females into NASCAR.