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Aggregate Production Management 2002 Case Study Solution and Analysis


NASCAR (National Association for Stock Vehicle Vehicle Racing) is a company performing series of Stock Cars and truck racing in United States and acting as an approving body for driving the rules for Stock Cars and truck Racing. 2) Stock Car Racing by NASCAR is the second biggest spectator sport, with highest number of sponsors. 1) The other sources of revenue for Aggregate Production Management 2002 Case Study Analysis consists of; 10% of the total profits from tv rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed business culture with the non-interventionist technique. The building of Car of Tomorrow by NASCAR, with an objective of safety for the motorists, brought various tensions amongst the stakeholders of the sport.
Executive Summary
The interaction audit, conducted in 2010, revealed that in spite of the fact that business extremely rely on the interactions between its stakeholders, there was no identifiable service communication strategy. The market's target customers, direction and goals were all unknown.

The audit explained numerous lacking of NASCAR in terms of absence of internal integration, lack of fan management method and lack of social and digital media of marketing. The company has intricate ecosystem with independent tracks, teams and chauffeurs. This structure with closed business culture bring different challenges in speeding up a modification. Other partners in community consists of the media networks i.e. television and radio, and business marketers.

Aggregate Production Management 2002 Case Study Solution viewers was extremely faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business online marketers.

Problem Declaration.

The company is currently dealing with the problem of decreasing rates of attendance at racing tracks and rates of television viewers. This can put a considerable impact on its revenues from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

The company was rather successful till 2005 with its traditional marketing strategies, however soon after 2005 the company begins facing different problems consisting of decrease of its fan base. Numerous external along with internal factors are accountable for the decline. Internal aspects include; insufficient investment in social media 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 produce generational loyalty. The family system in America was changing resulting in decrease of influence of married male fan base over their children. Along with it perceptions about automobile was likewise changing with perceiving automobile a lorry to reach at point B from point A, instead of as a fun task. Other obstacles for Aggregate Production Management 2002 Case Study Solution includes the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on. These all challenges were tending the business to modify its marketing techniques.

SWOT Analysis.


In SWOT analysis, strengths specified as company's qualities which are various from its rivals. These are business's core proficiencies on which company efficiency or company success based on. Aggregate Production Management 2002 Case Study Help core proficiencies includes it has rights of determining guidelines as approving body. Rules and regulations relating to professional stock vehicle racing are dictated by NASCAR like if any group with needed skills and resources can enter into races by following guidelines and guidelines determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second largest spectator 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 world with more than $56 million earnings. The primary sources of their profits come from tv rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and corporate sponsors. Due to the fact that of most significant brand name commitment of fans toward brands marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).


Weak Points in SWOT Analysis are thought about as external elements. Weaknesses consists of the factors that stops business to perform at needed level of performance. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They typically utilized to form guidelines and other required processes without intervention of others which leads to poor cooperation. For example NASCAR establishes Car of Tomorrow without partnership so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is likewise tough. It was likewise found that NASCAR had no efficient technique for organisation interaction. If it occurred off track, they do not understand how to handle issue. Inefficient business interaction leads to that they do not have clear direction for their long term objectives. They don't know that where they want to see this sport in future.
Porter's 5 Forces Analysis

NASCAR normally used to rely on standard media sources like local newspaper for promotion of its sports. NASCAR likewise came to understand from these standard media outlets that sport was tough to cover. When sports fans were asked concerning popular celebs and stars then NASCAR chauffeur was not discovered even in leading twenty responses.


Economic down turn was experienced in late 2000 which can be danger for NASCAR since if there is financial down turn then people would be having less return on investment. Economic down turn likewise results in increase fuel costs which also impacted NASCAR. Now if NASCAR make significant investments in new sections which are based on new consumers then it may face negative remarks from its core fan base.

Porter's 5 Forces Analysis

It is important to comprehend industry in which business is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to determine profitability, intensity and beauty of NASCAR company.

Competitive Competition

This force shows capability of rivals. Groups generally represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be said that motorists and race vehicles are rivals. These motorists can go against NASCAR if they improved chance in regards to rewards and television direct exposure. Then viewers can move to those other intriguing cars and chauffeurs, if audiences delight in other race automobiles and drivers more than NASCAR. NASCAR might be having hazard from its 2 direct rivals that is Formula 1 and Moto GP. They require to create competitive advantages for chauffeurs so they do not shift to other rivals.
Swot Analysis
Provider Power

If company shifts from one supplier to another, the supplier power suggests the number of providers are available in market and what is the expense associated with supplier. In this market there is supply monopoly since drivers with required resources and abilities are limited.

Buyer Power

In the case of NASCAR customers are its viewers. Viewers can change to other rivals easily since audiences will having low switching cost.

Risk of Alternative

Replacements are referred as alternatives. The alternatives in this case can be other entertainment suggests like audiences can shift to other sports. So there are vast array of substitutes are offered in this scenario which recommends that threat of alternative is high.

Danger of New Entry

In the case of NASCAR hazard of new entry is low. They require to build vehicles and racing tracks and likewise needs to pay significant amount to drivers for changing.

PESTEL Analysis


As NASCAR is working in different markets so it needs to deal with different guidelines. It is also noted that NASCAR has dealt with increased scrutiny regarding regulatory. Every government has various top priority so NASCAR has actually to be prepared for it as concern can be shifted to other sector.


Economic aspects consists of taxation rate, exchange rate, economic efficiency of that particular business, 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 impacted. NASCAR can utilize capabilities of employees to create new opportunities and enhance existing chances.


Each has various social worths and norms. It assists in understanding relating to society and preference of consumers.


In this case of NASCAR it can be kept in mind that companies are heavily investing for research study and advancement. NASCAR must also work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays a crucial function in every nation since every country has various legal terms. Aggregate Production Management 2002 Case Study Solution requires to be make sure that they secure their legal rights in every county so any company does not harm to its legal rights.


Environmental factors are also essential for each organisation. Since usually governments do not enable those company which can damage to environment. These ecological aspects consists of laws concerning pollution, climate modification, safe garbage disposal, policies regarding insurance coverage etc. NASCAR needs to make certain that its cars and trucks are not creating pollution more than appropriate level.

7 P's of Marketing


The items of Aggregate Production Management 2002 Case Study Help in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).


Prices technique of NASCAR for its race occasions tickets is based upon the location and importance of the racing events. Along with race occasions tickets, NASCAR also charge various service fees to its stakeholders and earns income. It charged approving costs of $1-2 million per race on average in 2005.


Promotional strategy of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races.


NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in most of the cities in United States to understand across the country appeal.


Nestle people strategy is comprised of providing better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential aspect of Aggregate Production Management 2002 Case Study Help A marketing method as its occasions are the source of home entertainment for crowd. Its individuals method includes efforts to supply better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under individuals technique of NASCAR.


Several company processes are needed to carry out racing occasions in an efficient method. These procedures include; proper schedule of time, arrangement for spectators, selling tickets, arrangement of space for sponsors, handling logistics and so on. These all procedures contribute I developing NASCAR image, enhancing viewers experience and increasing fan base.

Physical Proof.

Crucial physical evidences for the NASCAR includes the presence of its racing tracks, stock cars and trucks and racing occasions. In addition to it, its merchandising brands consisting of t-shirts, caps, goodies etc., likewise act as a physical evidence for NASCAR.

Item Life Cycle Assessment.

The racing events by Aggregate Production Management 2002 Case Study Analysis was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the first phase competition for NASCAR was low, as the competitors drove the cars and trucks comparable to the vehicles driven by normal individuals.


The first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the company moved towards relaying its races on tv in 1979.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular company into one with global fan base. He initiated a new age of profitable sponsorships and tv agreements for NASCAR.


The maturity period for NASCAR started with the efforts of William France Jr., with the company having large range of profits sources. The company has about 500 sponsors with relaying its occasions in about 150 nations. The business has large number of tracks in most of the cities of United States.


The decrease in the company's offerings started after 2005 with average participation rate per race decreased by 22% from 2005 to 2010 and tv viewership rate declined by 30% from 2005 to 2010. The significant reasons for decline include the financial crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Segmentation.

The market division of Aggregate Production Management 2002 Case Study Analysis can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


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


The demographic division of Aggregate Production Management 2002 Case Study Analysis is also highlydiverse based upon the gender, earnings and age of the consumer. To increase the demographic sector of its market NASCAR ought to revise its marketing techniques to attract more age groups and lower its rates to go into in the market segment with a low typical earnings.


NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races once in a week. NASCAR has tried to increase the quality of its racing by presenting phase racing, they also have tried to lower prices and make the event more convenient by presenting live racing.


Behavioural division of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the television or by going in the occasions. Presently, the fans choice is towards viewing the race at home on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as pricey.

Target Market.


One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has great potential for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are likewise one of the potential target audience section for NASCAR, as they are more connected socially than other groups. Developing fan base amongst kids can offer a potential boost in the number of fans for racing due to their connection. Kids spend the majority of their times in playing and utilizing mobile phones computer game. Automobile racing video games established by Aggregate Production Management 2002 Case Study Help can be a prospective source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital features related to kids are not capable of gaining the attention. NASCAR requires more attention towards personalizing and improving its digital functions to attract the kids target market.

This big expenditure makes the section capacity for NASCAR marketing technique of increasing its fan base. The market sector considers NASCAR as an organization lacking in creating a multiculturalism atmosphere. NASCAR must take numerous steps to improve the experience of Generation Y consumers in its events.

5 C's of Marketing

5 C's of marketing helps in taking choices concerning marketing. These 5 C's requirements to be analysed effectively for taking any marketing choice. These 5 C's stands for Environment, Business, Collaborators, Consumers and Rivals.


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


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


Collaborations includes distributors, providers and alliances of Aggregate Production Management 2002 Case Study Help. It is collaborated with various racing groups which are participating in racing. It likewise worked together with Turners Sport for digital rights. NASCAR used to make money check of around $15 million annually from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of each and every single video which is shoot during race at track.


The consumer of Aggregate Production Management 2002 Case Study Help are its viewers. They target consumers with having age of 15-60 years. 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.


Groups usually represents sponsors in NASCAR and the medium of advertising is chauffeurs. These chauffeurs can go against NASCAR if they got better opportunity in terms of rewards and television exposure.

Marketing Methods.

1. Maintaining and developing Facebook Page.
One of the prospective target markets segments for NASCAR is Hispanics which is the growing population sector of U.S.A. but sadly NASCAR had been not able to bring in the this targeted segment. In order to attract the young growing generation the NASCAR ought to market by using social media like Facebook. It ought to develop a Facebook page containing the details regarding the races and the areas of tracks to make the customer helpful about the core operations of Aggregate Production Management 2002 Case Study Help. It should also upgrade its Facebook page on day-to-day basis to provide information about its approaching occasions. This would make the target audience sector more useful about business and would result in drawing in big fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
Aggregate Production Management 2002 Case Study Solution motorists has a low star power as compare to players of other sports. The bad contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is an important aspect for attracting viewers towards tracks and towards tv.
3. Establishing New Games and enhancing current video games for kids.
In order to attract these kids, NASCARA must improve its present racing games by introducing modification in the cars i.e. altering colours, selection of speed, introducing group racing in the video game, utilizing much better graphics related to the racing tracks and introducing numerous levels in the game. All these adjustments in the current video game would provide much better experience to kids.
Together with it, NASCAR should likewise construct new video games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing between different cartoon characters with a choice of selecting the preferred animation character for the kids. These strategies would make it possible for the company to attract among its possible target sections.
4. Presenting multiculturalism at events.
NASCAR occasions are comprised of fans with extremely few cultural diversity, due to expense of arrival in occasions, making it unappealing for the customers viewing sport events as social events i.e. Generation Y customers. As the Generation Y clients are a possible target market for NASCAR, therefore the company should take specific steps to attract this prospective target market.
5. Improving Customer Experience at Tracks.
Because on the race day audiences got disappointed, NASCAR ought to work on infrastructure and features at tracks. Due to the fact that in same industry other business are providing much better services than NASCAR, viewers have many expectations from Aggregate Production Management 2002 Case Study Analysis. Then its fans may shifted to its rivals, if NASCAR don't work on this problem. According to fans there were not sufficient facilities were offered as compare to other sports suppliers. So NASCAR should ensure that it provide sufficient centers that consists of cleaned bathrooms, comfortable seating arrangement. They ought to also supply WIFI services and ease of access of charge card throughout that track. It should be also make certain that there are enough jumbo turns put at all needed places. There ought to be likewise food stalls that offer quality food to viewers. In this way audiences will be having enjoyable experience at the day of event. (See Appendix B).

Marketing Budget plan

Marketing spending plan made on the basis of the above strategies for the period of 5 years from 2011 to 2015, shows the cost related data for the marketing strategies. (See Appendix B). It can be seen that technique 5 of enhancing client experience at tracks would need greatest initial investment and expense and strategy 4 of introducing multiculturalism will require most affordable initial investment with lowest further annually cost. The company needs to prioritize the resource allotment on these methods on the basis of its offered resources and the potential benefits which the technique would provide.
KEEP IN MIND: The values about cost are presumed on reasonable basis due the lack of figures and truths related to cost in the case study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the external and internal factors of Aggregate Production Management 2002 Case Study Help causing the decrease of tv viewership rate and attendance rate at tracks, the above marketing strategies are advised to NASCAR to increase its fan base in long term. These techniques would cope with internal aspects like bad consumer experience at tracks, insufficient social media marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, along with with external factors like moving of fans towards other sports, demographical modifications in America and changing domesticity designs.