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Aggregate Production Management 2002 Case Study Solution and Analysis


Aggregate Production Management 2002 Case Study Analysis (National Association for Stock Vehicle Car Racing) is an organization conducting series of Stock Automobile racing in United States and serving as an approving body for driving the guidelines for Stock Automobile Racing. The organization was founded in 1947, by "Huge Costs" France. NASCAR set up Stock Automobile Racing events in United States with the presence of about 130000 viewers typically in 2005. It likewise broadcast its events in about 150 nations. Stock Automobile Racing by NASCAR is the 2nd largest spectator sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its earnings. The other sources of revenue for Aggregate Production Management 2002 Case Study Solution consists of; 10% of the total profits from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed business culture with the non-interventionist method. The building of Automobile of Tomorrow by NASCAR, with an intent of security for the motorists, brought different stress amongst the stakeholders of the sport.
Executive Summary
The interaction audit, performed in 2010, exposed that regardless of the truth that the organisation extremely rely on the interactions in between its stakeholders, there was no identifiable service communication method. (

The audit mentioned various lacking of NASCAR in regards to absence of internal combination, absence of fan management method and lack of social and digital media of marketing. The business has complex ecosystem with independent tracks, teams and drivers. This structure with closed business culture bring various challenges in speeding up a change. Other partners in community includes the media networks i.e. tv and radio, and corporate online marketers.

Aggregate Production Management 2002 Case Study Solution audiences was extremely loyal to the sport and the brands related to the NASCAR, making it appealing for sponsors and business marketers.

Issue Statement.

The company is presently dealing with the problem of declining rates of attendance at racing tracks and rates of television audiences. This can put a significant effect on its incomes from sponsors, media rights, and from other sources of revenue.

Situational Analysis.

The company was rather successful till 2005 with its traditional marketing techniques, but quickly after 2005 the business starts facing different issues consisting of decline of its fan base. Numerous external as well as internal factors are accountable for the decline. Internal elements include; inadequate investment in social networks and other digital medias of.

Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and develop generational commitment. But the family system in America was altering resulting in reduction of influence of married male fan base over their children. Together with it understandings about vehicle was also changing with viewing cars and truck a vehicle to reach at point B from point A, rather than as a fun project. Other obstacles for Aggregate Production Management 2002 Case Study Solution consists of the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc. These all obstacles were tending the company to modify its marketing strategies.

SWOT Analysis.


In SWOT analysis, strengths defined as company's qualities which are various from its competitors. These are business's core competencies on which business performance or business success based upon. Aggregate Production Management 2002 Case Study Analysis core competencies includes it has rights of determining guidelines as approving body. Rules and regulations regarding expert stock automobile racing are dictated by NASCAR like if any team with needed skills and resources can enter into races by following guidelines and guidelines dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second biggest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to relay in more than 150 countries around the globe with more than $56 million revenues. The primary sources of their earnings originate from tv rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and corporate sponsors. Because of most significant brand name commitment of fans towards brands promoted by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).


Weaknesses in SWOT Analysis are thought about as external elements. Weaknesses consists of the aspects that stops company to perform at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist method. They generally utilized to form rules and other needed processes without intervention of others which results in poor cooperation. NASCAR develops Vehicle of Tomorrow without partnership so result is that motorists did not like that concept. As this is racing sport so covering of sports by media is also hard. It was also found that NASCAR had no effective method for service communication. If it occurred off track, they don't know how to handle issue. Inadequate business interaction results in that they don't have clear direction for their long term objectives. They do not understand that where they wish to see this sport in future.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external elements which can be beneficial to business or the external aspects on which business is having competitive advantage. NASCAR normally utilized to count on standard media sources like local newspaper for promotion of its sports. Normally these traditional media sources try to cover their house team and specific type of occasions. NASCAR likewise familiarized from these standard media outlets that sport was challenging to cover. Media landscape also changed from traditional to digital landscape. Newspapers failed. NASCAR can work on its capabilities to get maximum possible gain from this new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in digital and social media to get its benefits. Digital rights of NASCAR were also sold to Turner Sports. NASCAR used to make money check of around $15 million each year from Turner Sports. There are variety of cons behind this deal. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every single video which is shoot during race at track. Then they are required to pay licensing fees to Turner Sport, if media sources like newspapers, magazines and cable television channels want to post videos of races on their respective pages. So NASCAR can work on terms and attempt to negotiate with Turner Sports to get optimal benefits of it. Star power plays really essential function in generating earnings from every sport. It was noted that NASCAR is lagging in this location i.e. star power. When sports fans were asked concerning popular celebs and stars then NASCAR motorist was not found even in top twenty reactions. So NASCAR can put efforts in this area too for profits generation. They should direct their motorists that how they can end up being sport stars. 4 strategic focuses which are created by research study team can also be acted as chance for NESCAR. These 4 strategic focuses compares and analysis Aggregate Production Management 2002 Case Study Solution methods.


Economic down turn was experienced in late 2000 which can be threat for NASCAR due to the fact that if there is financial down turn then individuals would be having less return on financial investment. Economic down turn also results in increase fuel prices which likewise impacted NASCAR. Now if NASCAR make considerable financial investments in brand-new sections which are based on new customers then it may deal with unfavorable remarks from its core fan base.

Porter's Five Forces Analysis

It is important to understand industry in which company is working because NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are used to identify profitability, intensity and beauty of NASCAR organisation.

Competitive Competition

These motorists can go against NASCAR if they got much better chance in terms of rewards and television direct exposure. If audiences delight in other race vehicles and chauffeurs more than NASCAR then audiences can move to those other intriguing vehicles and chauffeurs. NASCAR could be having hazard from its two direct competitors that is Formula 1 and Moto GP.
Swot Analysis
Supplier Power

The provider power shows the variety of suppliers are available in market and what is the expense connected with supplier if business shifts from one supplier to another. In this industry there is supply monopoly due to the fact that drivers with required resources and abilities are limited.

Purchaser Power

This force is regarding to consumers that is it easy for consumers to shift to other items. Then customers are less most likely to switch, if there is more switching cost is associated. In the case of NASCAR customers are its audiences. Audiences can change to other competitors easily since audiences will having low changing cost.

Risk of Replacement

Substitutes are referred as alternatives. The replacements in this case can be other home entertainment indicates like viewers can move to other sports. There are broad variety of substitutes are offered in this circumstance which suggests that hazard of alternative is high.

Hazard of New Entry

It is specified as how it is simple for any business to enter in that particular industry. When it comes to Aggregate Production Management 2002 Case Study Help threat of brand-new entry is low. If any business needs to enter in this organisation than they have to make heavy investments, because. They need to build vehicles and racing tracks and also requires to pay substantial total up to motorists for switching.

PESTEL Analysis


It can not be concluded from case research study that there would be change in resource allocations. NASCAR had got take advantage of lower taxation policies which results in increasing in revenues. They made heavy financial investments in the research and development. As NASCAR is working in various markets so it needs to face different regulations. It is also kept in mind that Aggregate Production Management 2002 Case Study Help has faced increased analysis relating to regulatory. Every federal government has different top priority so NASCAR needs to be prepared for it as top priority can be shifted to other sector.


Economic aspects consists of tax rate, exchange rate, financial efficiency of that specific company, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can leverage capabilities of employees to produce new opportunities and enhance existing opportunities.


Each has various social values and norms. It helps in understanding concerning society and choice of clients.


Innovation has effect on almost every business. It consists of innovation in company technique. In this case of Aggregate Production Management 2002 Case Study Solution it can be kept in mind that companies are heavily spending for research study and advancement. NASCAR needs to also deal with its media rights policy with Turner Broadcasting System.

Vrio Analysis
Because every nation has various legal terms and conditions, Legal plays a crucial function in every country. Aggregate Production Management 2002 Case Study Solution requires to be ensure that they safeguard their legal rights in every county so any company does not harm to its legal rights.


Environmental factors are also important for every organisation. NASCAR needs to make sure that its automobiles are not generating pollution more than appropriate level.

7 P's of Marketing


The items of Aggregate Production Management 2002 Case Study Solution in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving guidelines for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).


Rates method of NASCAR for its race events tickets is based upon the venue and significance of the racing occasions. Together with race occasions tickets, NASCAR likewise charge various service fees to its stakeholders and makes revenue. It charged sanctioning fees of $1-2 million per race on average in 2005.


Marketing technique of Aggregate Production Management 2002 Case Study Help is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. Nevertheless, the business is not totally relied upon its fan base for its promo and promote through local radio stations too. The business has also embraced the retailing media of promo, in which the business offers merchandises with its logo design.


NASCAR have its racing tracks in various cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in most of the cities in United States to comprehend nationwide appeal.


Nestle individuals method is consisted of offering better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important element of Aggregate Production Management 2002 Case Study Solution A marketing method as its occasions are the source of home entertainment for crowd. Its people technique includes efforts to offer much better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under individuals strategy of NASCAR.


A number of service procedures are needed to perform racing occasions in an efficient way. These procedures consist of; appropriate schedule of time, arrangement for spectators, offering tickets, plan of space for sponsors, managing logistics etc. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.

Physical Proof.

Essential physical proofs for the NASCAR consists of the existence of its racing tracks, stock automobiles and racing occasions. Together with it, its retailing brand names including tee shirts, caps, goodies etc., likewise act as a physical evidence for NASCAR.

Product Life Process Assessment.

The racing occasions by Aggregate Production Management 2002 Case Study Help was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the very first phase competition for NASCAR was low, as the rivals drove the cars and trucks similar to the cars driven by regular individuals.


The very first NASCAR based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the business moved towards broadcasting its races on television in 1979.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he changed NASCAR from a regional Sport popular organization into one with international fan base. He initiated a new era of rewarding sponsorships and television agreements for NASCAR.


The maturity duration for NASCAR started with the efforts of William France Jr., with the company having wide range of income sources. The company has about 500 sponsors with relaying its events in about 150 nations. The company has a great deal of tracks in the majority of the cities of United States.


The decline in the company's offerings started after 2005 with typical participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The significant causes of decrease include the monetary crisis of 2008, which increased the cost of coming to tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.

Market Segmentation.

The market segmentation of Aggregate Production Management 2002 Case Study Help can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Aggregate Production Management 2002 Case Analysis is based upon the geographical presence of its tracks in numerous states and cities in United States, and the television broadcasting of its events in various nations. The business has 23 tracks in about 20 states of America and has tv broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical segmentation offers the business regional in addition to international fan base.


The market segmentation of Aggregate Production Management 2002 Case Study Solution is also highlydiverse based upon the gender, earnings and age of the consumer. To increase the group section of its market NASCAR need to revise its marketing techniques to draw in more age groups and lower its costs to go into in the market sector with a low average earnings.


The mental attributes of most of the fans are quite similar. NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races as soon as in a week. 71% of them prefer to acquire items with a NASCAR trademark name. They are rather extrovert and are willing to join other fans while racing. They desire quality racing with low cost at practical area. NASCAR has tried to increase the quality of its racing by introducing stage racing, they also have actually tried to lower rates and make the occasion more convenient by introducing live racing.


Behavioural segmentation of Aggregate Production Management 2002 Case Study Solution is based upon the behaviour of fans in terms of watching the race reside on the tv or by entering the occasions. Currently, the fans choice is towards watching the race at home on television instead of going, as the consumer experience at NASCAR tracks is not beneficial in addition to pricey. This preference makes the rates for participation lower than the rates for tv viewers. NASCAR needs to change the behaviour of its fan base by introducing qualitative services at its tracks.

Target Market.


Among the prospective target market of Aggregate Production Management 2002 Case Study Solution was Hispanics; the young and growing population of United States. The market segment has excellent possible for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the sector shows affinity with car culture, but need a more concentrated marketing towards inviting the section towards racing.


Kids are also one of the prospective target market segment for NASCAR, as they are more linked socially than other groups. Automobile racing games developed by Aggregate Production Management 2002 Case Study Solution can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards customizing and improving its digital features to draw in the kids target market.

Generation Y.
Generation Y target market includes those who spent 5 times more resources on discretionary expenses i.e. acquiring tickets for racing events, than others. This huge expenditure makes the section capacity for NASCAR marketing method of increasing its fan base. The market section is also easy to technique as 81% of the Y Generation consumer utilizes Facebook every day and the usage is twice of using television and radio. The market segment views sports as a get-together, instead of adherence to sport. The marketplace section considers NASCAR as a company doing not have in producing a multiculturalism environment. Aggregate Production Management 2002 Case Study Help must take numerous steps to improve the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing helps in taking choices regarding marketing. These 5 C's needs to be evaluated correctly for taking any marketing decision. These 5 C's mean Climate, Business, Collaborators, Rivals and customers.


It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, economic, social, technical, legal and ecological and is stated above.


NASCAR is an auto racing company with having USP of high quality auto racing with a worldwide structure. Its sector is sports team and events. Its target audience is males in the age of 15-60 years. Company has actually closed business culture and having non-interventionist technique.


Collaborations consists of suppliers, providers and alliances of Aggregate Production Management 2002 Case Study Solution. It is worked together with various racing groups which are taking part in racing. It also worked together with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. For instance NASCAR needed to get approval from Turner Sport if it want to create its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every single video which is shoot throughout race at track.


The customer of Aggregate Production Management 2002 Case Study Help are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and create generational loyalty.


Groups usually represents sponsors in NASCAR and the medium of advertising is drivers. These motorists can go versus NASCAR if they got better opportunity in terms of prizes and television exposure.

Marketing Techniques.

1. Establishing and Preserving Facebook Page.
One of the prospective target markets segments for NASCAR is Hispanics which is the growing population segment of U.S.A. however unfortunately NASCAR had actually been unable to attract the this targeted segment. It needs to develop a Facebook page including the info regarding the races and the locations of tracks to make the customer useful about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Key Drivers.
Aggregate Production Management 2002 Case Study Analysis chauffeurs has a low star power as compare to players of other sports. The bad contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is an important factor for attracting viewers towards tracks and towards television.
3. Establishing New Games and improving current games for kids.
Kids invested most of their time on playing video games and using smartphones. Unfortunately, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less drawn in towards the sport. In order to attract these kids, NASCARA should improve its present racing video games by presenting modification in the cars and trucks i.e. altering colours, choice of speed, introducing group racing in the video game, using better graphics connected to the racing tracks and presenting different levels in the game. All these adjustments in the current game would supply better experience to kids.
Along with it, NASCAR must also build brand-new video games associated with racing like kids racing with kids characters as motorists, animation racing with racing between different cartoon characters with a choice of choosing the favourite animation character for the kids. These strategies would make it possible for the company to attract one of its potential target sections.
4. Presenting multiculturalism at occasions.
Aggregate Production Management 2002 Case Study Analysis occasions are consisted of fans with really couple of multiculturalism, due to expense of arrival in occasions, making it unappealing for the clients viewing sport occasions as get-togethers i.e. Generation Y clients. As the Generation Y consumers are a potential target audience for NASCAR, for that reason the company should take particular measures to attract this possible target audience. It must embrace methods to draw in the customers far from the tracks area with different culture. The strategy to do so could be offering special discounts on tickets or totally free tickets to viewers originating from a particular range or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more satisfied.
5. Improving Client Experience at Tracks.
NASCAR should work on infrastructure and facilities at tracks due to the fact that on the race day audiences got dissatisfied. Viewers have lots of expectations from Aggregate Production Management 2002 Case Study Help because in very same industry other companies are supplying much better services than NASCAR. IF NASCAR don't work on this concern then its fans may moved to its rivals.

Marketing Spending plan

Marketing spending plan made on the basis of the above methods for the duration of 5 years from 2011 to 2015, reveals the expense related information for the marketing strategies. It can be seen that technique 5 of enhancing client experience at tracks would require greatest initial investment and expense and method 4 of introducing multiculturalism will need least expensive preliminary investment with least expensive even more per year cost.
KEEP IN MIND: The worths about expense are presumed on reasonable basis due the absence of realities and figures connected to cost in the case study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the internal and external elements of Aggregate Production Management 2002 Case Study Solution causing the decline of television viewership rate and presence rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long term. These methods would manage internal elements like bad customer experience at tracks, insufficient social networks marketing, incapable digital medias like games, absence of culturalisms at tracks etc., as well as with external elements like shifting of fans towards other sports, demographical changes in America and altering family life styles.