I. Executive Summary
NASCAR is the brainchild of William France, which he started in 1948. Remaining under the control of the France family, NASCAR has since grown to become multibillion dollar business and one of the premier sports in America today. NASCAR sanctions over 1500 races at over 100 tracks in the US and Canada. NASCAR’s business model and success is heavily dependent on its relationship with big name sponsors.
NASCAR strives to be the recognized leader in motorsports entertainment by improving distinctive environments for customers, participants and employees. NASCAR foresees strategic global expansion specifically in mature markets such as Europe, where Formula 1 racing has a dominant foothold. NASCAR is particularly sensitive to recessions. To combat this issue, strategic pricing will be used along with the support of loyal sponsors. To continue growing the NASCAR brand in the US we plan leverage our high profile drivers to appeal young folks. NASCAR is also cognizant of the untapped market with minorities and is committed to attracting this diverse group through target marketing and the implementation of special programs. To promote safety within professional racing NASCAR has invested in new technology and is stringent on safety procedure. NASCAR plans continue emphasizing safety and research to make the sport safer than ever. The company also plans to pursue more green initiatives to reduce its carbon footprint. As the economy improves the company will to aggressively address these topics. Under great leadership the company hopes to reach all its goals within 8 years. The company will use television ratings and revenues among other indicators to track progress and make adjustments to the strategy if necessary II. Situation Analysis Marketing is critical to the success of NASCAR. NASCAR has approximately 75 million fans and has the second highest television ratings for regular season sports. The company has formed partnerships with many fortune 500 companies including, Coca Cola, Du Point and the big three automakers GM, Ford and Chrysler. The company is highly successful with integrating multiple marketing initiatives into a well-organized branding strategy. This strategy includes endorsing and cobranding driver suits and their stock cars with brands of partners and sponsors. With sponsorships such as Nextel’s 70 million dollars per year deal for the title right of the Nextel Cup, NASCAR takes these sponsorship deals very seriously. With the corporation of their partners NASCAR has also developed “the car of tomorrow” which it hopes will highlight its efforts to promote driver safety and draw bigger crowds to their events. In 2005, NASCAR signed an 8 year comprehensive television contract with FOX and NBC worth 4.48 billion dollars. With this deal NASCAR’s events will be broadcasted in 167 countries, further growing the brand overseas. Despite the broadcasting deal NASCAR has seen its television ratings drop in most years after the 2005 season. Undoubtedly one of NASCAR’s biggest attributes is their loyal customer base. NACAR’s 75 million customers account for 3 billion dollars a year for licensed product sales. The customer base spans all across the country varying in age, but particularity strong among white males from 18-34 years of age. Acting as ambassadors of the sport these loyal customers spread positive word of mouth to other people and brand communities. NASCAR keeps in tune current with the fan base and makes an emphasis to portray its drivers as accessible men and women who care about sponsors and fans. Because the median average income for NASCAR’s fans is below the national average the business is highly adverse to recessions. The recent recession was a major factor in the decline of attendance, leading NASCAR to slash ticket and food prices. In fact, due to the recent recession NASCAR saw sharp decline in sponsorship support and in some cases sponsors completely pulled out. Apart from the risk of recessions many believe that the power exercised by the France family is an antitrust issue. Though no judge has agreed yet, one has to wonder how much more can the company grow before the courts step in to break up the “dictatorship”. III. SWOT Analysis One of NASCAR’s greatest strengths is their loyal customer base. Despite the recession many companies stuck with NASCAR because of their loyal customer base and their brand equity. As a motor sport, NASCAR is number one in America. Because NACSAR fans are so committed to the sport, the business has benefited tremendously by word of mouth which is proven to be the most successful and trusted form of advertising. Apart from customers NASCAR has developed strategic long-term relationships with other companies which important for growth. NASCAR is typically interpreted as a macho sport, but the facts show that 40% of fans are women. The sport has to do a better job in embracing minorities and women. The company also has to improve its public image in regards to environmental pollution and the safety of its drivers. Financially the company is losing ground. TV ratings are decreasing along with attendance. Another contentious issue is the structure of leadership at the company. The company lacks objectivity when it comes to leadership. In order for the company to grow even further it must explore opportunities to expand overseas. In an attempt to bolster social responsibility and improve its image NASCAR can use alternative fuels which are not as harmful as leaded gasoline. There are many options available such as E-15 green fuel. The company can also accentuate its efforts to attract minorities and women with strategic brand alliances such as Olay and Cover Girl. As far as threats NASCAR is highly adverse to recessions. Sponsors pulling out for any other reason are also a concern of the company. As television technology improves customers are less willing leave the comfort of their homes to participate in NASCAR events. Fans are now watching the races on HD TV’s. Apart from other sporting events such as basketball and football NASCAR has to directly compete with Formula 1 racing. Currently F1 racing has a substantially stronger internationally presence and twice as much revenue. SWOT Analysis Strengths | Weaknesses | * Strong brand equity | * Diversity | * Loyal customer base | * Polluter | * High profile drivers | * Safety measures | * Strategic sponsorships/partnerships | * Objectivity in leadership | * Female fanatics | | * Website interactivity | | | | Opportunities | Threats | * Eco-friendly fuels | * recession | * Global expansion | * Sponsors pulling out | * Minority attraction sponsors | * Better television technology | | * Formula 1 racing | | * Changing societal interest | In regards to developing a competitive advantage NASCAR can leverage its brand power to penetrate untapped markets domestically and internationally. With strategic alliances NASCAR can successfully attract a global and more diverse fan base. Apart from NASCAR the brand, many of the more influential drivers are a brand of their own. With the right initiatives these drivers can also growth and promote the sport. IV. Marketing Goals and Objectives A. Marketing Goal A: Expand popularity of Nascar in International Markets Objective A1: Increase TV broadcast of NASCAR races in every country of the world in the next 4 years to gain more fans around the world. Objective A2: Perform Nascar races in Latin American countries in the following 4 years starting with Chile, Brazil, and Costa Rica, which are attracting markets due to their economic stability. B. Marketing Goal B: Gaining new Sponsors to invest in Nascar races. Objective B1: Explaining to prospect sponsors the return on the investment they will get by investing in Nascar races such as brand awareness, distinguishing their product from the competition, showing new products and how co-branding with Nascar is extremely profitable, saving them money by not promoting in traditional media that is not so effective. Objective B2: Selling Nascar benefits in alignment with the marketing needs of the companies you are looking to sponsor. C. Marketing Goal C: Reducing the sponsorship price for new companies investing in Nascar. Objective C1: Reducing in 15% the price of sponsoring in a Nascar race team or in the racetrack. D. Marketing Goal D: Attract new young fans to watch the races. . Objective D1: Investing and promoting Hollywood movies with stock car related themes where new young fans will be able to stay in contact with all the aspects that means the Nascar car racing experience including the crashes, live entertainment and danger. Objective D2: Provide events such as concerts, autograph signings and car museums to entertain fans throughout the entire weekend of the race. Objective D3: Provide incentives for children to attend the race weekend. Examples of this include racer bobble head or hot wheel car giveaways and “all you can eat seats”. E. Marketing Goal E: Attract more fans to NASCAR and attendees to race tracks by promoting racial and sex diversity. Objective E1: Increase by 20% women driver’s participation in the future Nascar series competitions in the next 5 years. Objective E2: Increase by 20% other ethnicities (black, Hispanic and asian) driver’s participation in stock car races throughout the US by targeting specific sponsors in the next 3 years.

Objective E3: Increasing the participation of minorities in Nascar advertisement by 30%. Objective E4: Increase women fans by partnershiping the Nascar brand with specific women related brands. Objective E5: Produce merchandize that appeals more to women. F. Marketing Goal F: Promote an environmental program to continue its efforts in partnership with Environmental Protection Agency (EPA) to become a leader in sports sustainability. Objective F1: Hybrid cars participation in race tracks to gradually increase by 10% in the next 5 years and its capacity to provide refueling. Objective F2: Replace existing infrastructure by 20% in the next 5 years with recyclable materials and comply with environmental friendly premises.

G. Marketing Goal G: Increase TV ratings by implementing new interesting stock racing Competitions and TV contests. Objective G1: Implementation of new formats and creative rules for the racing competitions to regain the interest lost in some former viewers of Nascar. Objective G2: Utilize social media such as Twitter and Facebook to keep fans involved during the races. V. Marketing Strategy A. Primary (and Secondary) Target Market * 75 million race car fans including the U.S and international countries. * Local sponsors and corporations. * International sponsors and corporations. Primary target market Demographics Gender: Males: 60% Females: 40%

Age Distribution:

18-44: 46% Income Distribution:

U.S. Geographic Distribution

NASCAR does not have a particular target area due to its international network of fans and corporate sponsors. More Fortune 500 companies participate in NASCAR than any other sport.

Behavior Factors * Race fans are more likely to buy merchandise when it is limited edition and is unique to a particular event. * Race fans will have parties to watch the race with friends and family. As a result, they can be referred to as a consumer community or reference group because they will be influencing each other’s purchasing decisions. * Consumers spent over $2 billion in annual licensed product sales and are the most brand loyal consumers of all sports.

* Sponsors are more likely to buy air time when they know viewers are going to be watching, especially the commercials.

B. Product Strategy The following strategies are based on the goals and objectives established. Overall the main goals are to gain new fans and attract new sponsors to increase the revenues of Nascar. The following strategies have been design: * Implement a trivia contest throughout the duration of the car race that will make viewers stay tune to their TVs. During the competition, 10 trivia questions about Nascar’s history and current events will be asked and viewers will have to provide all 10 correct answers on Nascar’s website after the competition. These questions will appear during the race. Viewers with correct answers will be randomly chosen to receive different prizes that will range from different types of merchandize such as t-shirts, caps, coolers to a car. The results will be published few hours after the end of the race. This will increase TV ratings and the number of fans. * Sending emails to all fans of Nascar with upcoming events and latest news on the races. In this way fans will be updated with the latest information on the when the races will take place, the positions of the competitors and news about ticket discounts. This will attract more fans including minority groups. * Encouraging manufactures to invest in new types of cars that will not contaminate the environment. The best project will have the right to become a sponsorship of Nascar races for 10 years without paying any amount of money. C. Pricing Strategy * Encouraging TV broadcasters from around the world to transmit Nascar races by giving them a 50% discount for three months on the rights to broadcast the races. * Decreasing in 15% the price for being a sponsor of a race team or in the league. * Reducing the price tickets in 10% for people resident in the location where the race takes place (promoting locals participation ie: targeting different race groups) * Reducing the price of tickets in 15% for people under 30 years old and/or students with valid ID. * Making agreements with brands that have influence in the buying habits of Hispanic, Asian and Afro-American people to participate as sponsors of the races. These special sponsors will be also offered a price discount for being sponsors of teams or of the racetrack.

D. Distribution/Supply Chain Strategy * Direct distribution of NASCAR products through internet and at track races. * Direct marketing through sponsors

VI. Marketing Implementation A. Structural Issues To implement the marketing strategy designed we will: * Increase our budget to pay the broadcasters to place the trivia questions within commercials. * Assign three employees in the marketing department, the function of brainstorming the trivia questions that will be shown on TV at each race broadcasted. * Set up the configuration within Nascar’s email servers to replicate emails to all fans who will receive the latest news about Nascar competitions. * Need two employees in Marketing that will be dedicated to write every day the latest news on races and upcoming events of Nascar. These employees will be in constant communication with the other departments of Nascar where they will be able to receive all the information necessary about the company to transmit it to all fans. * Improve our current Customer Relationship Management staff so that they can answer all the inquiries of our fans at the least time possible. In order to fulfill all of these we will need to train our CRM staff so that they will be able to give the best attention possible to our fans. Some trainee will be also needed for the employees who will be doing the trivia questions so that know exactly what types of questions to perform on each trivia shown on TV. All CRM employees will attend different motivational seminars and coaching classes to give the best service possible when receiving calls and emails from customers. The marketing strategy set up must be promoted in all functional areas of Nascar so that everybody is aware of the accomplishments the company wants to reach. Coordination amongst areas will be fundamental for Nascar to get to their goals.

VII. Evaluation and Control A. Formal Controls We need to make some research regarding the trivia TV contests, like for example, which type of questions would be the most interesting for viewers and which level of difficulty should this questions have. We have to also evaluate if more personnel would be needed in CRM to give a better attention to fans. We would also need to evaluate if there is going to be any sort of compensation for employees who really show a commitment with the company in all the different functional areas of Nascar. We have to check out if the communication among all areas in always the correct one so that problems occurring at any level be solved as promptly as possible. We will also need to establish controls that will be used to measure from time to time the goals and objectives reached so far and compare them to the goals and objectives laid down in the marketing plan. In that way we will know the situation we currently are regarding the marketing plan. Our revenues should we check as well to know if the marketing plan designed has been really effective in bringing results we wanted. A good price review should be done for all the merchandise that Nascar offers in co-branding with its sponsors. By doing this we will know if we are charging too much money for the merchandise offered. We must also have control of how much demand each product offered has so that we know which of them needs more publicity and promotions in a future coming and which ones will be needed to be pull out of the market. B. Informal Controls We will establish controls that will rate employment satisfaction, commitment and confidence in their skills. It is the only way to know if during the implementation of the marketing plan we have the correct staff to develop it. We must also have controls where we will know if employees are getting along among each other and if there are good relationships without any social problems. We need to have control of all of these things so that the marketing plan doesn’t suffer any kind of mishaps due to social problems within the organization.