NASCAR has become an American household name that has successfully built their company by offering live racing entertainment, partnering with sponsors, marketing families, and capitalizing on branding by offering merchandise to consumers. Although NASCAR is highly prosperous, they could continue to increase their revenue and expand their achievements by insulating themselves from economic downtown, preforming a SWOT analysis, and by leveling criticism again them. NASCAR could have done several things differently to insulate them from economic downturn.
NASCAR is incredibly successful because they have been able to capitalize on branding. The marketing strategy for NASCAR involves attracting massive crowds and establishing devoted fans based on the excitement, competiveness, and exhilaration that their sport offers. Numerous automobile sponsorships aid NASCAR in the success. The most important element to NASCAR’s effective marketing strategy was their ability to increase revenues by expanding their brand to include souvenirs, t-shirts, clothing, and various other items that represent the company along with the drivers, cars, and sponsors.
This strategy has been prosperous for the most part however the economic downturn forced many sponsors to reduce their monetary sponsorship commitment or resign altogether. To reduce to risk of revenue loss based on the withdraw of sponsors, NASCAR should have focused on increasing their revenue by growing their already large fan base. It’s no secret that NASCAR fans are devoted. Majority of fans purchase NASCAR merchandise in addition to attending and viewing the races. By increasing the fan base, NASCAR would not increase ticket sales, they would also increase sales in NASCAR products.
NASCAR can take advantage of several chances to expand by preforming a SWOT analysis in order to identify their strengths, weaknesses, opportunities, and threats. One dominate strength includes NASCAR’s massive fan base. Again, NASCAR fans do much more than simply tune into televised races. Fans purchase tons of branded items that represent their favorite team or driver. On the contrary, NASCAR also has some weakness. One weakness is the geographical location of NASCAR fans. For examples, NASCAR is incredibly well known throughout particular states and within the US as a whole.
However, NASCAR is not a household name to countries and families living outside of the US. With any weakness comes an opportunity. NASCAR has several opportunities to increase their fan base. NASCAR could market the sport and teams outside of the United States. In addition, NASCAR could host races in new locations (at new races tracks) to attract new viewers in cities that may not have been as involved in watching NASCAR prior. Finally, NASCAR faces some threats. Foremost, the economic recession threatened NASCAR by limiting participating sponsors.
There are several strategies NASCAR can take to level the criticism against them. Going forward, NASCAR should devote more resources to becoming environmentally sustainable. NASCAR could implement this approach by advocated teams to utilize cars that omit less exhaust into the air. NASCAR could also investigate ways to reuse the rubber on bad tires. Instead of tossing old tires in landfills, NASCAR could possibly reuse the rubber as other products and materials. Additionally, NASCAR could reveal an all new hybrid race car.
By taking an approach to help reduce the environmental consequences of racing, NASCAR would gain the acceptance of critics. Finally, NASCAR could expand their name as well as level criticism by contributing funds to a child education foundation. Similar to companies like Monsanto, when large organizations financially contribute to the greater good of the community, critics become more accepting to shortcomings. NASCAR can maintain or increase its fan base by marketing the sport internationally. Again, NASCAR should target geographical areas, both inside and outside the US, where their fan base is currently low.
In addition, NASCAR could start holding races in different cities in order to increase awareness and attract new fans. For example, NASCAR does not currently race in Maryland nor do they race in Europe. By offering races in these new territories, NASCAR would attract new fans and existing fans would continue to travel to view the race. NASCAR is widely known by the American people. By implementing some of the ideas above, NASCAR has the potential to continue to grow their organization, reduce their critics, adhere to social responsibility, and reduce their risks during economic downturn.
