Nascar Case 4 - Maritess L. Munoz

University of Immaculate Concepcion
Bonifacio Street, Davao City
BA213 Marketing Management
Case Analysis
Maritess L. Munoz Melecio Sy, DBM, CAR
Case 4: NASCAR: Can’t Keep a Good Brand Down
1. Introduction
On February 21, 1948, the National Association for Stock Car Racing—or NASCAR, as it will
come to be widely known—is officially incorporated. NASCAR racing will go on to become one of
America’s most popular spectator sports, as well as a multi-billion-dollar industry. The driving
force behind the establishment of NASCAR was William “Bill” France Sr. (1909-1992), a
mechanic and auto-repair shop owner from Washington, D.C., who in the mid-1930s moved to
Daytona Beach, Florida. The Daytona area was a gathering spot for racing enthusiasts, and
France became involved in racing cars and promoting races. After witnessing how racing rules
could vary from event to event and how dishonest promoters could abscond with prize money,
France felt there was a need for a governing body to sanction and promote racing. He gathered
members of the racing community to discuss the idea, and NASCAR was born, with its official
incorporation in February 1948. France served as NASCAR’s first president and played a key role
in shaping its development in the sport’s early decades.
NASCAR held its first Strictly Stock race on June 19, 1949, at the Charlotte Speedway
in North Carolina. Some 13,000 fans were on hand to watch Glenn Dunnaway finish the 200-lap
race first in his Ford; however, Jim Roper (who drove a Lincoln) collected the $2,000 prize after
Dunnaway was disqualified for illegal rear springs on his vehicle. In the early years of NASCAR,
competitors drove the same types of cars that people drove on the street–Buicks, Cadillacs,
Oldsmobiles, among others–with minimal modifications. (Today, the cars are highly
customized.)
In 1950, the first NASCAR-based track, the Darlington Raceway in South Carolina,
opened. More new raceways followed, including the Daytona International Speedway, which
opened in 1959. Lee Petty won the first Daytona 500, which was run on February 22 of that
year. The Daytona 500 became NASCAR’s season opener and one of its premiere events. Lee
Petty’s son Richard, who began his racing career in 1958, won the Daytona 500 a record seven
times and became NASCAR’s first superstar before retiring in 1992. On February 18, 1979, the
first live flag-to-flag coverage of the Daytona 500 was broadcast on television. An end-of-the-
race brawl between drivers Cale Yarborough and Donnie and Bobby Allison was a huge publicity
generator and helped boost NASCAR’s popularity on a national scale. In 1972, France’s son,
William France Jr., took over the presidency of NASCAR from his father. Over the next three
decades, the younger France (1933-2007) was instrumental in transforming NASCAR from a
regional sport popular primarily in the southeast U.S. into one with a global fan base. France led
NASCAR into a new era of lucrative corporate sponsorships and billion-dollar TV contracts,
which continues to this day.
VISION
As a stewards of the sport, deliver the best motorsports racing in the world, provide
outstanding entertainment experiences, and continue to build a globally diverse community of
loyal fans.
MISSION
International Speedway Corporation strives to be the recognized leader in motor-sports

entertainment by providing and improving distinctive environment for customers, participants
and employees. The company is committed to the wise growth and expansion of its operations
in order to provide a significant level of growth and profitability for its stockholders, while
remaining a good corporate citizen.
GOAL
The aim of NASCAR is to create an enhanced experience for the people and at the same
time generating revenues and profit for the locals and the sport.
Financial Information
 50% of NASCAR revenue comes from sponsorships
 Sponsorship is worth $1.5 billion annually
 Hendrick motorsports (most valuable team) is worth $350 million
 Dale Earnhardt Jr. made $23.8 million last year
II - TOOLS
2. (SWOT Analysis)
SWOT analysis of Nascar analyses the brand/company with its strengths, weaknesses,
opportunities & threats. In Nascar SWOT Analysis, the strengths and weaknesses are the
internal factors whereas opportunities and threats are the external factors. SWOT Analysis is a
proven management framework which enables a brand like Nascar to benchmark its business &
performance as compared to the competitors and industry. As of 2020, Nascar is one of the
leading brands in the sports teams and events sector.
Strengths
The strength s of NASCAR is many. I think the main strengths of NASCAR are its branding and
its differentiation. NASCAR has become a hot commodity for a business who invest
sponsorships in the sport and that’s why the sport has been able to grow rather quickly.
NASCAR is getting millions of dollars just to co-brand with many businesses on the cars or on
the drivers. With all this sponsorship, NASCAR has been able to have to profit to grow. Another
great strength of NASCAR is its ability to differentiate from the sponsors in the sport and from
other sports as well.
Characteristics of the business or project that give it an advantage over others:
Strengths:
 One of the highest TV ratings amongst all professional sport franchises in the USA.
 Revenue is high because their merchandising does very well

 They have the top sponsors
 Global giants are expected to participate in the future
 Appearance of F1 stars in NASCAR increases popularity
Weakness
Characteristic that places the business at a disadvantage relative to others:
Weakness:
 Does not have a global business (NASCAR is primarily held in Canada and the USA)
 There are certain controversies towards fuel consumption, emissions, pollution
 The drivers safety has become a big issue
 In the recent past ratings and ticket sales have gone down
 Low income of fans
 Ownership "dictatorship"
 Environmental impact
Opportunity
Elements that the business could exploit to its advantage:
Opportunities:
 Huge market for salespeople Global expansion with races across the world will bring its
popularity to the same level as F1, and they could have foreign sponsors and
manufacturers to get involved
 NASCAR could change to environment friendly fuel
 Add markets such as Hispanics
 Foreign manufacturers/drivers
Threat
Threats are the elements in the environment that could cause trouble for the business or
project.
Threats:
 F1 is expanding quickly
 F1's extravagant spending and high salary will draw the NASCAR drivers in that direction
 Economy
 Dangers of the sport
 Claims of fixing for closer races
III – Problem ideation
4. Statement of the Problem (SOP)
Lack of diversity in fans and expensive tickets/low income fan base
5. Identify Decision Criteria
Criteria Percentage
Price 30%
Innovation 20%
Brand Image 30%
Branding Strategy 20%
6. Identify 3 strategic Alternatives
Alternatives Advantages Disadvantages

1.Attract new markets such as Increased NASCAR Time and effort may not yield
Hispanic and Asian popularity and allow a return
foreign sponsors and
manufacturers to get
7.
involved with the sport.
2. Improve Fan Experience at Increasing attendance Not all have a direct and
Racetrack and the general telling fix
experience will ideally
more deeply develop a
fan’s affinity for the sport
3. Address sustainability issues Declining of fans
Promote customer
awareness in a long term
from present generation
to the future generations.
Make a decision table
Alternatives Decision Criteria Total

1 2 3 4
1 25 18 29 19 91
2 29 18 28 18 93
3 26 17 30 19 92
IV – Solution
8. What is the best alternative?
 Add cell towers at racetracks to improve accessibility to social media
 Driver-specific fan sections
 Blackout certain races on TV

 Increase public awareness of sustainability efforts
 Increase awareness of drivers such as Juan Pablo Montoya and Kyle Larson

Nascar Case 4 - Maritess L. Munoz

Uploaded by

Copyright:

Available Formats

Nascar Case 4 - Maritess L. Munoz

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Nascar Case 4 - Maritess L. Munoz

Uploaded by

Copyright:

Available Formats

University of Immaculate Concepcion

Bonifacio Street, Davao City

BA213 Marketing Management

Maritess L. Munoz Melecio Sy, DBM, CAR

Case 4: NASCAR: Can’t Keep a Good Brand Down

International Speedway Corporation strives to be the recognized leader in motor-sports

 50% of NASCAR revenue comes from sponsorships

 Sponsorship is worth $1.5 billion annually

 Hendrick motorsports (most valuable team) is worth $350 million

 Dale Earnhardt Jr. made $23.8 million last year

Characteristics of the business or project that give it an advantage over others:

 Revenue is high because their merchandising does very well

 Global giants are expected to participate in the future

 Appearance of F1 stars in NASCAR increases popularity

Characteristic that places the business at a disadvantage relative to others:

 There are certain controversies towards fuel consumption, emissions, pollution

 The drivers safety has become a big issue

 Low income of fans

Elements that the business could exploit to its advantage:

 NASCAR could change to environment friendly fuel

 Add markets such as Hispanics

 Dangers of the sport

 Claims of fixing for closer races

III – Problem ideation

4. Statement of the Problem (SOP)

Lack of diversity in fans and expensive tickets/low income fan base

5. Identify Decision Criteria

Alternatives Advantages Disadvantages

Make a decision table

Alternatives Decision Criteria Total

8. What is the best alternative?

 Add cell towers at racetracks to improve accessibility to social media

 Driver-specific fan sections

 Blackout certain races on TV

You might also like