Nascar Case Study

NASCAR Case

From the beginning NASCAR understood the importance of branding so as to make the races economically viable. Its marketing strategy focused on attracting the maximum viewers and providing them high adrenalin entertainment. NASCAR has sponsorships with automobile companies, as well as a host of other sectors. The branding component was a very important part of the marketing strategy and revenues from co-branding constituted the maximum source of income. While this strategy had been successful, the economic downturn affected its sponsors and as a result several sponsors had to back out or reduce their sponsorships.

To avoid this situation, NASCAR could have concentrated more on direct revenue from viewers or on targeting a different segment. Looking outside its traditional target segments allows NASCAR to capitalize on the opportunities presented in the size and scope of the African-American, Hispanic and Female demographics. Furthermore changing their “benevolent dictatorship” persona would insulate the organization against the economic downturn.

NASCAR should take advantage of the fact that their sport #1 in regards to brand loyalty, NASCAR fans are three times as likely as non-fans to try and purchase sponsor’s products and services. For this reason it would be beneficial for NASCAR to spend more money on advertising media to increase or maintain consumer awareness. They should also produce a variety of new products that better fit the needs of the ever changing consumer.

One of NASCAR’s core values is to provide a family oriented experience. As the family unit definition broadens, NASCAR needs to match its deliverables with the wants and needs of an ever-increasingly diverse family population. Reposition their brand, to change consumers’ perceptions or specify which segments (family, Hispanic, or Females) should be targeted with their advertising. This way, the advertising agency will select the most appropriate media type for...