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Nascar Marketing Plan

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  • 1. 2008 NASCAR Marketing Plan: New York Dr. Lu SES 533 4/22/08 Andy Havens Blake Rizner
  • 2. 1 Table of Contents I. Executive Summary II. Background Mission Vision Product Competitive Environment Objectives Conclusion III. Target Markets Market Demographics Market Needs Market Trends IV. Market Forecast Market Growth Target Market Growth Conclusion V. SWOT Strengths Weaknesses Opportunities Threats Conclusion VI. Marketing Strategy Marketing Objectives Financial Objectives Target Marketing Positioning Strategy Pyramid Market Research Conclusion
  • 3. 2 VII. Marketing Mix Product Price Place Promotion Public Relations VIII. Marketing Budget IX. Sales Forecast X. Implementation / Controls XI. References
  • 4. 3 I. Executive Summary Overthe past fewyears NASCARhasbeentryingtodeveloparace track on StatenIslandinNew York City.Many concernsabouttrafficissuesandbudgetconcernshave drawncontroversy,butnow building a track onStatenIslandhas become more realistic.Surveyshave beenconductedand revealmore acceptancesto NASCARfromthe local community.Here atthe StatenIslandRace ManagementTeam we are dedicatedtobringthe NASCARexperience tothe greatstate of New York.Locatedon the boroughof StatenIsland,our companywill bringoutthe verybestof the communityandhelpto further create an evengreatercity.Our sloganis“the race is on”assuringpeople that NASCARishere andis here to stay,so getreadyfor a great experience.We hope toprovide agreatand memorable experience for the fanswhile providingrevenue forthe local community.
  • 5. 4 II. Background Mission “The NASCARcommunityisbuiltonasharedpassionfora sport unlike anyother.Withover75 million fans,we want oursport to looklike Americaandattractthe besttalentandthe most dedicatedfansin the world." Vision “To provide customerswiththe bestentertainmentexperience racinghastoofferand be the leaderand innovatorinthe sportand entertainmentindustry.” Product The product offeredisactuallythe physical locationof the StatenIslandRace Track andsounding attractions.The purpose of the race track isto brings new experience tothe citywhile generatingmore profitandrevenuesforthe localsandthe sport.Extensionsof the productwouldinclude memorabilia such as shirts,hats,race daygiveaways,and NASCARposters. Competitive Environment NASCARlieswithinthe competitive environmentthatcontainsleisureandentertainment productsor servicesthatare both sportand non-sportrelated. Competitionforconsumer’s discretionaryincomeis fierce and has onlyincreased due tothe currentlessfavorable economicconditions. Withinthe segmentof sportentertainment NASCARisnotonlyindirectcompetitionwithotherracingevents,such as the open-wheeledIndie carseries,butwithothersportentitiessuchasthe NFL,MLB and the NHL. To compete inthiscategory sport organizationsare continuallytryingtoenhance theirproductofferings to appeal toa largerpopulationandenhance the total productandexperience.
  • 6. 5 III. Target Markets Market Demographics The U.S. Census Bureauconductsa nationwide census every10years. The lastcensuswas conductedin the year 2000. From1990 to 2000 the population of the UnitedStates increasedby arecord breaking 32.7 millionpeople. Of that32.7 million New Yorkaccountedfor684,000. This684,000 increase representeda26.7% rise inNewYork’stotal populationbringingitto18,976,457. This putsNew York in the top three mostpopulatedstatesalongwithCaliforniaandTexas respectively. Whenconsidering metropolitanareaswithatotal populationof 5,000,000 or more, New York-NorthernNew Jersey-Long Island,NY-NJ-CT-PA ranksfirstholding29.9% share of the total populationof metropolitanareas. This meansthat NewYorkand the surroundingareas have a large,as well asdense populationmakingitan attractive environmenttoofferproductsorservices. Age The medianage of the NewYork populationwas35.9 yearsold. Of the tenlargestcitiesNew Yorkhas the highestmedianage. However,75.3% of the populationis18 and older while only12.9% of the populationis65 and older. ThismeansthatalthoughNew Yorkhas a large populationitison average an olderpopulationwhencomparednationally. Gender In NewYork,48.2% of the populationismale and51.8% isfemale. Whencomparednationallymale’s make up slightlylessandfemale’smake upslightlymore of the populationinNew York. However,when lookingatthe percentchange ingenderfrom1990 to 2000 the male populationincreasedby6% while the female populationincreasedjustslightlylesswith5%. Thismeansthatwhile the femalepopulation isslightlyhigherwhencomparedtootherstates,the male populationisgrowingandslowlycatchingup to national averages.
  • 7. 6 Race NewYork’spopulationispredominantlyWhite accountingfor61%. The nextlargestgroupis blackor AfricanAmericanwhichmakesup14% and isfollowedcloselybyHispanicswhoaccountfor13% of the population. Inplaceswith populations of 100,000 or more,New Yorkhad the largestWhite population withover3.8 million. Education Whenlookingatthe level of educationwe considerthose whoare 25 years of age or older. InNewYork 84.1% of the populationhasobtainedahighschool degree orhigher. The State ranks tenthinthe nationforindividualswhohave obtainedaBachelor’s degree at31% of the population. Thismeansthat the populationisonaverage a highereducatedpopulation. Income The medianhouseholdincome forNewYorkis$51,384 per year,whichranks14th in the nation. The medianfamilyincomeis$61,138 per year. The percentage if individualslivingbelowthe povertyline in NewYork currentlystandsat14.2%, whichisslightlyhigherthanthe national average of 13.3%. 61%14% 5% 13% 7% White Black or African American Asian Hispanic
  • 8. 7 Median Household Income by County: New York Employment As of March 2008 the unemployment rate forthe state of New York was 4.8% reportedbythe Bureauof Labor Statistics. Thisisbelowthe national rate of 5.1% postedduringthe same period. This unemploymentrate hasstayedbelow5% inNew Yorkfor the lastthree years. Thismeansthat New York has a stable economyandisresilientinthe face of macro economicconditions. Marital Status As of 2000 53.3% of malesand47.1% of females were married inthe state of New York. These numbers fall belownational averagesby8.4%. Thismeansthat New York’spopulationiscomprisedof more single peoplethanaverage.
  • 9. 8 Language Of the populationinNewYork,28%speaka language otherthan Englishathome. Thisis muchhigher than the 17.8% national average. Of all foreignlanguagesspokenathome Spanishisthe mostpopular inthe Northeastwith4.5 millionpeople speakingthe language. Market Needs Accordingto Maslow’sHierarchyof Needs,afterphysiological andsafetyneedsare fulfilled,the third layerof human needsissocial. Thispsychological aspectof Maslow'shierarchyinvolvesemotionally- basedrelationshipsingeneral,suchasfriendship, intimacy,andfamily. Humansneedtofeel asense of belongingand acceptance. Thissense of belongingcancome from a large social group or small social connections. NASCAR’sgoal istooffera productthat fulfillsthe thirdmostimportanthumanneedby providingalarge social groupto whichpeople canassociate themselveswith. Consumerswill benefit fromproduct usage ina numberof waysincluding:  Socialization  Entertainment 0.0 1.0 2.0 3.0 4.0 5.0 All Other Languages Asian and Pacific Island Languages Other Indo-European Languages Spanish Millions Non-English Languages Spoken at Home Region: Northeast
  • 10. 9  Social Bonding  Immediate Acceptance Satisfyingtheseneedsinafunand excitingwayata reasonable price will provide customerswitha tremendousvalue infulfillingthisneed. Market Trends The top six marketingtrendsthat are and will affect NASCARinclude: The Merging of Sports and Entertainment Withthe advancementof sportmarketingwe have seensportevolve fromnational pastimestobig businessentertainment. Professional Sporthasbecome anentertainmentmachinethatcompeteshead to headwithall otherformsof entertainment. The arenaof competitionhasbecome the stage andthe athleteshave become the stars. Anexample of thiscanbe foundinthe explosionof productextensions such as music,in-game entertainment,half time shows,dance/acrobaticteams,andmanyotherforms of creative programmingdeliveredtothe audience toincrease theirlevel of entertainment. Corporate Marketing As showninthe graph below the businessof advertisingisseeingimmense change inthe industry. Corporationshave shiftedawayfromtraditional methodsof advertisingandhave begun tomarkettheir productsor servicesthroughthe use of sponsorship. Since we know that66% of sponsorshipdollarsare allocatedtosport,thishas an increasingimpactonsportbusiness. Since NASCARisone of the highest grossingsportentitiesin regardstosponsorshipthisisatrendtheywill have tomonitorclosely. One of theirbiggestchallengesistocontinue toincrease sponsorshiprevenue withoutdilutingthe value.
  • 11. 10 Annual Growth of Advertising, Sales Promotion, and Sponsorship Digital and Web Content Keepingconsumersengagedandconnectedisessential inmovingconsumers towardsheavyuserson the escalatorof involvementandconsumption. The increase use of digital andwebcontentisessential inkeepingconsumersengagedandconnected. Associetytransforms towardbeingmore technological and informationdriven, NASCARmustsatisfy thatneedbyprovidingeasily accessibleinformationin multiple formats. WiththeirpartnershipwithTurnerbroadcastmedia, NASCARhasdone agreatjob thusfar on providingcustomerswhattheydemand. However,itisimportanttostayproactive inan industrysegmentthatchangesatsuch a highpace. Increased Number of Media Sources As we move intothe digital age consumersare becomingmuchmore aware andcreative abouthow theyconsume differentformsof media. The numberof mediasourcesnow availabletothe consuming publichasgrownfrom three or fourto almostcountless. Where people usedtogettheirnewsand informationfromprint,radio,andTV,theynow getit fromblogs,podcasts, YouTube,chatrooms,and manymore. To ensure thatconsumersare receivingthe correctinformationregarding NASCARandits brand,special attentionmustbe paidtoemergingmediasources. People Brands In the lastdecade the importance of brandinghascome to the forefrontinthe mindsof marketers. A new phenomenon thathasbeenunique tosportinthe area of brandingisthe emergence of “People
  • 12. 11 Brands.” Sportsstars such as Michael Jordan,DavidBecham, andTigerWoods have developed personalizedbrandsuniquetoownlikeness. Thisprovidesconsumernotonlyaconnectiontoa specific sport buta personalitywithinthatsportas well. Itisinthe bestinterestof NASCARtodevelop personalitiessuchasDale Jarred,Dale EarnhardtJr., BobbyLaBonte,as well asothersto provide the customersthe opportunitytoassociate and alignthemselveswiththeirfavorite personality. Globalization As the speedof informationandtravel increasewe are seeingashrinkingeffectof the globe. Withan immense numberof newmarketsanda growingnumberof consumers worldwide,the rewardsfor global expansionare immense. Itisimportantfor NASCARtohave the foresighttobegina relationship withconsumersabroad.
  • 13. 12 IV. Market Forecast Market Growth It isimportantto ensure thatproductof NASCARwill continue toflourishinthe New Yorkarea,nowand inthe future. Toassure these desiredresultscome tofruition,the organizationneedstomake sure that the marketin whichtheywishtoenterhasthe potential forgrowth. To determine thispotentialwe have lookedtothe CensusBureau andfoundpredictionsinpopulation change for the Middle Atlanticregionfrom2000 to 2030. Whenwe lookat these projectionswe find that the marketis predictedtogrowbutat a verysmall rate. The area with the greatestpotential for growthis NewJerseywitha16.5% increase inpopulationexpectedbetween2000 and 2030. Because thisissuch a large marketwitha dense population there shouldnotbe muchcause for concernabout the minimal amountof projectedgrowth. Yes,some otherareashave muchhigherlevelsof projected growth;howeverthese areasare notalready densely populatedlike the Middle AtlanticRegion. Change in Population in the Middle Atlantic Region Numerical change 2000- 2010 Numerical change 2010-2020 Numerical change 2020-2030 Numerical change 2000-2030 Middle Atlantic 1,374,529 779,519 222,144 2,376,192 .New York 467,215 133,248 -99,491 500,972 .New Jersey 603,881 443,404 340,805 1,388,090 .Pennsylvania 303,433 202,867 -19,170 487,130 % Change in Population in the Middle Atlantic Region Percent change 2000- 2010 Percent change 2010-2020 Percent change 2020-2030 Percent change 2000-2030 Middle Atlantic 3.5 1.9 0.5 6.0 .New York 2.5 0.7 -0.5 2.6 .New Jersey 7.2 4.9 3.6 16.5 .Pennsylvania 2.5 1.6 -0.1 4.0
  • 14. 13 Target Market Growth As we knowthe targetmarketfor NASCARconsistsof:  38% female/62%male  38% w/collegedegree  18% retired/unemployed;10%part-time;72% full time  Average age between25-44yearsold  64% married Whenconsideringthe graphbelowwe findthatthe targetage demographicforNew Yorkis projectedto maintaina consistentlevelof around2 millionfromnow until 2030. While we see nomajorsignsof growthin thisareathere are still alarge numberof potential customersinthistargetage range without any signsof shrinking. 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2000 2005 2010 2015 2020 2025 2030 ProjectedPopulationsof SelectedAge Groups:NewYork 5-13 Years 14-17 Years 18-24 Years 25-44 Years 45-64 Years 65 Years and Over
  • 15. 14 Potential customers ineachmarketsegmentare expectedtogrow more sothan the categoryof age. Signsof thiscan be foundinthe market analysis table. Market Analysis of Potential Customers Customer Growth 2010 2015 2020 2025 2030 WeekendGetaway Customers 13% 21,032 22,142 23,476 24,932 26,349 Tourist 9% 10,985 12,014 12,834 13,573 14,111 Local Community 11% 13,251 13,944 14,722 15,532 16,029 Total 33% Conclusion In conclusionwe see thatthere isa sufficientamountof potentialgrowthinthismarkettomore than supportthe introductionof NASCARevents. If NASCARwasable toattract evenonly2% of the current populationof NewYorkthatwouldstill give themandattendance of 380,000 people,farsurpassingthe 80,000 seatcapacity of the proposedtrackinStatenIsland.
  • 16. 15 V. SWOT Strengths The organizational strengthsof NASCARinclude:  NASCARBrand  Finical Health  SoundBusiness Practices  WorldClassEvents  WebPresence  ProfessionalPersonalities  Fan Base Weaknesses The organizational weaknessesof NASCARinclude:  ProductDilution  SponsorshipDilution  Undesirable image Opportunities The industryopportunitiesfor NASCARinclude:  IncreasedCorporate Interest  Accessto WorldBusinessCenters  Large / Dense Populationof Potential Customers  Accessto Large HispanicandAfricanAmericanPopulations  Tear DownStereotypes  Increase Popularity  Developmentof YoungFans Threats The industrythreatsforNASCARinclude:  Image / Lifestyle Clash  Intense Competition  Political Opposition  AreaConstraints/Costs
  • 17. 16 Conclusion In conductinga SWOT analysisforthe StatenIslandProjectwe are able toevaluate the potentialbenefit of movingintothisunique market. Aswe know, NASCARhasproventobe a top performerinthe industrywithmanystrengthsandfew weaknesses. Inthe organizationscurrentpositiontheyare poised to maintainanoffensivepositioninthe marketusingtheirstrengthstogoafteropportunitieswhile stavingoff threats. For example,inthisnew marketof “BigBusiness” NASCARcantake advantage of thissituationbyusingtheirstrengthsof havingagreat brandwithone of the largest,mostdedicatedfan base inthe worldtodevelopnewpartnershipsandbusinessopportunitiesinone of the top economic centersinthe world. NASCARcan alsouse itsstrengthof professional personalitiessuchasJuan Puablo Montoya to openupand expose that Hispanicmarket.
  • 18. 17 VI. Marketing Strategy Marketing Objectives The main marketingobjectivesforthisprojectinclude:  Create positive awareness of the NASCARproductinthe NY market  Increase Fortune 500 Sponsorshipby 1%-1.5% (22million)  Reach maximumattendance of 80,000 for each endeveryeventinStatenIsland  Increase salesof ancillaryproducts6%  Increase aviditylevelsinthe male andfemale 18-24 age range  Obtaina 10% firstyearand a 2% increase share of the New Yorkarea marketeverysubsequent year Financial Objectives The finical objectivesforNASCARinthe New YorkMarketinclude:  Increase revenuesby10% overthe next5 years  Obtaina 10% firstyearand 2% increase share of the New York area marketeverysubsequent year  Increase profitmarginsby5%  Stable earningsduringperiodsof recession Situational Analysis Enteringthe NewYorkmarketexposes NASCARtomaynew situationsneverbeforeencountered bythe organization. Issues  Exclusive  Traditional Opportunities  EconomicCenter  BusinessPartnership  Image Transformation
  • 19. 18 Trends  Social  Business Competitive Analysis Competitioninthisregionisveryhighdue tothe large amountof sportand non-sportentertainment options. These includebutare not limitedto: Professional Sports  NFL o NY Jets o NY Giants o BuffaloBills  MLB o NY Yankees o NY Mets  NBA o NY Knicks o NJNets  NHL o NY Rangers o NY Islanders o NJDevils  MLS o NewYork RedBulls College Sports  Syracuse  St. Johns  NYU  FordumUniversity  Cornell University
  • 20. 19 Target Market Groups of individualstowhomthe sportof NASCARcouldbe successfullypromotedtoinclude: Demographics  38% female/62%male  38% w/collegedegree  18% retired/unemployed;10%part-time;72% full time  Average age between25-44yearsold  64% married Psychographics  Social class  Values  Lifestyles Product Benefit  Thrilling  Association  Status  Entertainment Product Usage  Heavy o Seasonticketholders  Medium o Individual eventticketpurchasers  Light o Recreational sportconsumers Positioning The NASCARproductmust be redesignedtocapture a special place inthe mindof our targetconsumer inthe NewYorkarea. Withso many formsof competition, NASCARmustdifferentiate theirproductand positionitdifferentlythan itscompetitors. In itsnature the sport itself isunique inmanyaspectswithregardstothe traditional fieldandball sports. However,withsuchdeeplyrootedhistorical andtraditional tiestothese long-establishedsports, NASCARwill have tofulfill the needforaunique sporting/entertainment experience.
  • 21. 20 To accomplishthis NASCARshouldpositionitself withinthe New Yorkmarketinsuch a way that accomplishesdifferentiation. Thisunique positioningwill be accomplishedbycustomizingthe elements of Product,Price,Place,Promotion,andPublicRelations. These elementsof the MarketingMix are explainedindetail insectionVIIof thismarketingplan. Strategy Pyramid Strategy Drive NewBusiness and Cultivate Relationships Tatics Advertising Personal Selling Pablicity SalesPromotion Programs TV,Print,Radio,Internet Coporation, Grassroots, Community Clinics,Contests,PressRelses TicketPackeges,SponsorPromo,Discounts,Cupons
  • 22. 21 Marketing Team Due to the size andthe scope of boththe marketand thismarketingplan,itwill needtobe implementedbyateam a skilledmarketingprofessionals. Here isour proposal: Tactical Timeline The timeline forwhichwe willuse toensure properimplementationof thisplanisasfollows: VP Marketing Regional Director Corporate Partners Corporate Sales Corporate Sales Grassrouts Street Team Community Community Team Research Community Intorduction Develop Corporate Partners Increase Brand Awareness Impliment Marketing Plan Evaluate
  • 23. 22 Market Research To determine changesinthisspecificmarketovertime ourfocusshouldbe onconductingregular narrow studies. These studies shouldinclude:  CustomerSurveys o AvidityLevels o Behavioral Patterns o BuyingPatterns  Market Surveys o Position o Growth  Market Reports o Competition o Market Share o Trends To deliveraproductthe customerwill love we needtoknow exactlywhattheydesire. We will doour bestto obtainthisinformationthroughquantitative,qualitative,andCRMdrivenstudies. Tomaintaina highlevel of awarenessconcerningthe competitive environmentwe competeinwe mustobtainas much informationaspossible. We will achievethisthroughmarketsurveysandmarketreports.
  • 24. 23 VII. Marketing Mix Product The product offeredisactuallythe physical locationof the StatenIslandRace Track andsounding attractions.The purpose of the race track isto brings new experience tothe citywhile generatingmore profitandrevenuesforthe localsandthe sport.Extensionsof the productwouldinclude memorabilia such as shirts,hats,race daygiveaways,and NASCARposters. Price NASCARwill continuethe traditionof pricingticketsaccordingtorace venue andprestige.Since Staten Island’seconomycontinuestogrowandis a small boroughwitha bigcity feel,pricesforthe Staten IslandRace will be slightlyhigherthanotherracesprices.Pricingforadmissionsisbasedonthree factors;the pricingof otherraces insimilarmarkets,pricingof competingvenueswithinthe city,and whatthe race andbring andadd to NewYork City. Itis veryimportantthe value of the productrelates closelytothe value of the price,inotherwordsour customersgettheirmoney’sworth A Similarrace suchas UAW Dodge 400 in Las VegassellsticketsrangingfromS105 forbasic ticketsto $275 for higherendluxurysitting.Thisisthe price range that the StatenIslandRace wouldbe lookingto sell,due to the fact that NewYorkCityis a big vacationandtouristlocationjustlike LasVegas. Belowis a price chart forthe 2009 UAW Dodge 400 Race 2009 UAW Dodge 400 NASCAR Tickets UAW-DaimlerChrysler 400 Race · 3/01/09 Section Rows 1-10 Red Rows 11-27 White Rows 28-49 Blue All Rows Section 1 or 3 $105 $165 $210 - Section 2 $160 $155 $220 - Section 4 -- $115 $165 - Earnhardt Terrace - - - $275 Petty Terrace - - - $275
  • 25. 24 NewYork Cityiswell verse inthe sportsthatit offers.Mostsportfans view New Yorkasaccountable for producingsome of the bestsportsteamsin the world.Thiswill be nodifferentforthe StatenIsland NASCARRace.Withthisin minditisimperative thatthe race also pricesitsadmissionsbythe same standardsand reasoningasotherteamsfoundinNew York do.All sportsand teamslocatedinNewYork Cityhave theiradmissionspricedrelativelyhighcomparedtothe average.Thisisdue mainlytothe prestige of manyof the teamslocatedinNew York as well asthe amenitiesthe cityhastooffer.Thisis alsosomethingtoconsiderwhensettingafinal price forthe StatenIsland NASCARRace The race will alsobringaddedvalue tothe city.A new marketwill encompassthe cityand NASCARfans will be eagertoexplore whatNewYorkCityhasto offer.Withall of appropriate aspectsexaminedand takingintoconsiderationthatitwouldbe the firstyearof the race The StatenIslandRace Management Team findsitsuitable tohave aprice range from$100 to $ 300 dollarsdependingonthe seats. Place The StatenIslandRace Track is the largestsportsfacilityproposedforNew YorkCityinrecentyears.The track wouldseat80,000 fans,watchingcars race arounda track three-quartersof amile long,neara new620,000 square foot retail mall ona 675-acre site.The site isa formerBATXoil tank farmlocated off the West Shore Expressway,southof the GoethalsBridge inBloomfield,StatenIsland.The locationis the largestvacant industrial propertyinNew YorkCity.Buildingatrackon thisarea wouldrevitalize the westshore,butmostimportantlyturnwaste landintouseful profitableland.
  • 26. 25 Promotion Througha promotionscampaign,The StatenIslandRace ManagementTeamwill promotethe tackand NASCARheavily. A campaignwill be focusedonthe phrase “the race is on” due mainlyinpartto New York Citiesfastpace life style,anddeterminationtobe the best.Anin-depthadvertisingcampaignwill launchthe newsof the StatenIslandRace Track and get fansexcitedforopeningday.Advertisements will be placedin the NewYorkTimes,the DailyNews,andthe New YorkPost.$100,000 for 6 mountsof advertisementswouldbe allocatedtopace half page ads inthe sportsectionsof mostlythe DailyNews, NewYork Post,andthe GothamGazette (StatenIsland’slocal paper). Researchshowsthatthose who are mostlylikelytoattendaNASCAReventare alsomore inclinedtoreadthe Dailynewsorthe New York Post. Advertisinginthe NewYorkTimeswill create national exposure. A majorityof advisementswillbe launchedviathe webandtelevisioncommercials.Another$100,000 wouldbe givenby NASCARaswell ascollectedfromthe StatenIslandRace ManagementTeam.This wouldcover3 mountsof 30 secondadson televisionaswell aswebpresence onESPN.com, NASCAR.com,andsportsillustrated.com.Publicitywill be soughtforththroughpromotingoncity billboardsandtaxi cab,bus,and subwaysignage.$40,000 dollarswill be spentadvertisingonthe ground level,i.e.subways,busses,andbillboards.A majorityof advertisementsandpromotionswill be targeted to fansof othersports.YankeesgamesandKnicksgamesare perfectopportunitiestopromote the race and handout free promotionsandmediakits. Public Relations Most of the publicrelationseffortswill be focusedoncommunityinvolvement.Sincethe ideaof buildingatrack inStatenIslandhassteeredupsome negativity,itisimportant forThe StatenIsland Race ManagementTeamas well as NASCARtohave a presence inthe community.Appearancesfrom NASCARdriversaswell as NASCARexecutivesthroughoutthe Citywill increase awareness.Charity eventsandfundraisersforlocal schoolsandyouthleagueswill gainthe muchneededsupportfrom residents. NASCARdriverswillbe scheduledtomake local appearancesonce amonthat othersporting events,parties,andmuseums.Communityeventssuchasparkrestorations,youthleague fundraisers, marathons,parades,andcity cleaningeventswillbe heldonce amonthuntil openingday.
  • 27. 26 VIII. Marketing Budget Line-Item Budget Our marketingbudgetisbasedonourscompany’sgoalsandobjectivesthe schedule we have setto meetthese goals.Ourresearchteamhasalso examinedthe industryaverage of marketingdollarsspent as a percentof sale forsimilarcompaniesinthe sportsindustry.Ourproposedbudgetisrealisticin comparisontoothersimilarcompanies. Ourmarketingteamhasalsoestimatedwhatourimmediate competitor’sadvertisingandmarketingbudgetsare we hope thatthiswouldallow ustobecome competitiveandpossiblygainmore marketshare. Marketing Budget: New York Category Quantity Cost per Unit Subtotal Advertising Brochures 5,000 $0.15 $750.00 Mailings 15,000 $0.04 $600.00 postcards 15,000 $0.03 $450.00 Television 90 $1,100.00 $99,000.00 Radio 25 $200.00 $5,000.00 Newspapers 20 $5,000.00 $10,000.00 Billboards 3 $2,000.00 $6,000.00 Bus sides 10 $800.00 $8,000.00 Subwayposters 25 $500.00 $12,500.00 PublicRelations Charityevents 10 $500.00 $50,000.00 DriverPromotions 10 $500.00 $50,000.00 Sponsorships 5 $2,000.00 $10,000.00 Promotions Productgiveaways 100 $8.00 $800.00 ProductDiscounts 300 $3.00 $900.00 Special offers 200 $2.50 $500.00 Totals 35,798 $12,613.72 $254,500.00
  • 28. 27 IX. Sales Forecast Six Year Forecast Beginningin2007, NASCARhasimplementedaneightyear,$4.48 billiontelevisiondeal thatwill increase the organizationsrevenueby40 % eachyear. NASCAR,whichbringsin$555 millionayearin annual revenue fortelevisedprofessional sports,isrankedbehindthe NFL,NBA,andMLB. The research on NASCARtracksand revenue islimitedbutanestimate suggeststhatthe average NASCARrace track makesabout$500,000 a year,withabout$300,000 beingprofit.Thisiswhatour teamforecastsforthe upcomingseasons.The firstyears will be spenttryingtomake backmoneyspentonopeningand establishinganewrace track. It is estimatedthatinfouryearsour race track will startseeingsteady revenue.Within6yearswe hope tosurpassthe average revenue earningfora NASCARrace track.
  • 29. 28 X. Implementation / Controls Implementation Since we have takenconsiderablecare inthe preparation of thisplanwe will implementitaccordingto plan. However,asthe marketchangesour marketingmix canalsobe adjustedtoaccommodate for those changes. We are dedicatedtofulfill ourcustomers’needsatall times.Consumerwantsmight change overtime;thiscan easilybe addressedbychangingouradvertisingmessage.We planto implementourmarketingplan inconfidence withall membersof ourorganizationonboardandinline withour missionandvision. Controls To measure the progressandlevel of performance we will implementthe use of amarketingscorecard. Thisscorecard will be usedtoreevaluate the performance of the planasitrelatestoour objectivesas well ascustomersatisfaction. Thisscorecardwill be appliedtothe planona bi-monthlybasisaswell as immediatelyaftereachevent.
  • 30. 29 XII. References Allen Gregory (23 January).COLUMN: WillNASCAR return to its roots? McClatchy - Tribune BusinessNews. Retrieved April 15, 2008, from ABI/INFORMComplete database. (Document ID: 1417093071). Barry Janoff (2008, February). NASCAR's 50th Daytona 500 Offers Golden Opportunities. Brandweek,49(5),14. Retrieved April 3, 2008, from ABI/INFORM Complete database. (Document ID: 1429467201). Bran Strickland (22 April). NASCAR: A numbers game. McClatchy - TribuneBusiness News. Retrieved April 3, 2008, from ABI/INFORM Complete database. (Document ID: 1466450611). Bureau of Labor Statistics, Regional Resources; New York. Retrieved April 18, 2008, from: http://www.bls.gov/ro2/ro2_ny.htm George O'Brien(2007, August). Marketing vehicles. BusinessWest,24(6),32. Retrieved April 5, 2008, fromABI/INFORM Complete database. (Document ID: 1324338201). www.Staten Island NASCAR track.com.Retrieved April 20, 2008 from http://www.statenislandNASCARtrack.com/news/sticking_together_for_NASCAR_track_sta ten_island.htm www.tickco.comRetrievedApril 20, 2008 fromhttp://www.tickco.com/NASCAR-las-vegas-uaw- dodge-400-tickets.htm Lander, B., (2005) NASCAR, the largest proposed NYCsports stadium of all. GothamGazette Retrieved April 20th from http://www.gothamgazette.com/article/landuse/20050614/12/1442 Stewart, L., James, M. (2005) It's Pedal to Metal on New TV Deal: NASCAR announces a $4.48-billion pact with fournetworks that willrank it fourth in annual revenue for televised professional sports. USC MarshallRetrieved April 20 from
  • 31. 30 http://www.marshall.usc.edu/execed/programs/sbi/sbipress/pedal-to-metal-on-new-tv- deal.htm Tom Lowry (2004, February). The PrinceOf NASCAR; Brian France, son of stock-carracing's founding family, has taken charge at a critical moment. Can he make the multibillion-dollar machine go even faster? Business Week,(3871),90-98. Retrieved April 18, 2008, from ABI/INFORM Complete database. (DocumentID: 547225381). U.S. CensusBureau,FactSheet;NewYork. RetrievedApril18,2008, from: http://factfinder.census.gov/servlet/ACSSAFFFacts?_event=ChangeGeoContext&geo_id=16000 US3651000&_geoContext=&_street=&_county=New+York&_cityTown=New+York&_state=&_zi p=&_lang=en&_sse=on&ActiveGeoDiv=&_useEV=&pctxt=fph&pgsl=010&_submenuId=factsheet _1&ds_name=ACS_2006_SAFF&_ci_nbr=null&qr_name=null&reg=null%3Anull&_keyword=&_in dustry=

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