MGMC30H3 Lecture Notes - Lecture 6: Disjointed, Skill, Figure Skating

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Published on 23 Apr 2016
School
UTSC
Department
Management
Course
MGMC30H3
Professor
NASCAR: Leading a Marketing Transformation in a Time of Crisis
Overview:
April 2011 - Lingering question :
How to proceed with the changes required, who would lead the ecosystem through
these changes & among the 4 areas, what should have the highest priority
Feb 2011 - Top 30 leaders of NASCAR were sitting in Daytona Beach, Florida
A team of research companies was hired to do an assessment on the
state of NASCAR & everyone recognized that the sport faced major problems
Research was commissioned in late 2009
Late 2000s - frugal fans forewent the luxury of 3 day NASCAR vacations & corporations
slashed their marketing budgets
Major sponsors left NASCAR
Tylenol, Nicorette, etc
2005 - 2010 - Attendance peaked at 130, 000 per race, but decline by 22%
TV viewership declined by 30 %
NASCAR:
Founded in 1947 by Big Bill France
Conceived as a racing series for stock cars in the US
oComparable to a league - NASCAR dictated the rules of professional stock car
racing & any team who had the skills & resources to compete could enter races
NASCAR refers to the sanctioning body & to the whole sport
Grew to be a multi-billion dollar industry & 2nd largest spectator sport in the US
Broadcast in over 150 countries & had the most Fortune 500 corporate sponsors than
any other US sport
2010 - NASCAR body generated $56 million in revenues from tv rights, sponsorship,
licensing, and sanctioning fees
Owned 3 national racing series
Corporate Culture:
Privately held by the France family & known for having a closed culture
Non-interventionalist approach --> Nyquist
oCulture occassionally caused tension within the sport as it teetered on the brink
of being non-collaborative
EX: 2007 development of the Car of Tomorrow, intended to improve
safety & performance
NASCAR determined the standards, didn’t collborate as well as
they should have with the industry
Led to negative backlash, everyone in the ecosystem
unhappy with the new car
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NASCAR's Core Disciplines
Competition:
Sanctioning body had a proven track record in governing races
Inspecting vehicles beforehand to ensure they adhered to specifications, officiating calls
during race & creating policies to enhance driver safety, rules and scoring conventions to
ensure sport was fair, inclusive & exciting
NASCAR was paid avg. $1-2 million per race in sanctioning fees from race tracks
Selling Intellectual Property
Revenue cornerstones for body & sport were corporate sponsorships and media rights
( tv & digital)
2011 - ESPN, TNT and Fox Sports paid total of $4.5 billion to broadcast NASCAR races
live
oRevenues from media rights deal split amongst different stakeholders
o65/25/10 split : 65% to the race tracks, 25% to the competing teams & 10% to
NASCAR body
NASCAR body also earns revenues from licensing the NASCAR brand to companies
wanting to sell NASCAR merchandise, a multi-billion-dollar business
Publicizing Races:
Historically, NASCAR relied on traditional media outlets (newspapers) to cover its sport
2000 - got feedback from media outlets about how the sport was difficult to cover
Tried to make it easier for them through education & placement of media
centers for the next 8 years
End of decade - media landscape changed dramatically, papers out of
business, reassessment needed for new digital landscape
NASCAR's Communications Audit
Early 2010 - NASCAR engaged Taylor, a marcom strategy consulting firm to conduct an
audit of the sanctioning body's 26 person communications team & the communications
capabilities throughout the sport
Taylor & 2 agencies interviewed almost 300 ppl including track presidents, sponsors,
race team execs, tv execs and PR ppl through the sport
Problem 1: Outside of publicizing races, there was no identifiable industry wide strategy
for business communications
Even before the audit, stakeholders were not aware of the direction the
sport was taking, their objectives, target market
Problem 2: The sanctioning body was counting things to measure success, but not done
effectively
EX: Media hits from blogger to an article in Fortune counted as one hit
Problem 3: Lack of integration internally & a defensive approach to crisis management
Problem 4: Lack of clear fan engagement strategy
Problem 5: Behind the curve on digital & social media
>>>> Jewkes was hired as NASCAR's first COO - new 40 person comms team
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Document Summary

Nascar: leading a marketing transformation in a time of crisis. How to proceed with the changes required, who would lead the ecosystem through these changes & among the 4 areas, what should have the highest priority. Feb 2011 - top 30 leaders of nascar were sitting in daytona beach, florida. A team of research companies was hired to do an assessment on the state of nascar & everyone recognized that the sport faced major problems. Late 2000s - frugal fans forewent the luxury of 3 day nascar vacations & corporations slashed their marketing budgets. 2005 - 2010 - attendance peaked at 130, 000 per race, but decline by 22% Founded in 1947 by big bill france. Nascar refers to the sanctioning body & to the whole sport. Grew to be a multi-billion dollar industry & 2nd largest spectator sport in the us. Broadcast in over 150 countries & had the most fortune 500 corporate sponsors than any other us sport.

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