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Limits Of Mass Customization Case Study Solution and Analysis


NASCAR (National Association for Stock Car Car Racing) is a company carrying out series of Stock Car racing in United States and acting as an approving body for driving the rules for Stock Cars and truck Racing. 2) Stock Cars And Truck Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of profits for Limits Of Mass Customization Case Study Analysis includes; 10% of the overall revenue from tv rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand name to companies.

NASCAR has a closed corporate culture with the non-interventionist method. However this non collaborative technique brings stress in the sport. The building of Vehicle of Tomorrow by Limits Of Mass Customization Case Study Analysis, with an intent of safety for the drivers, brought numerous tensions among the stakeholders of the sport.
Executive Summary
The interaction audit, performed in 2010, revealed that regardless of the truth that the business extremely count on the communications between its stakeholders, there was no identifiable company communication strategy. The market's target customers, instructions and goals were all unidentified.

The audit mentioned various doing not have of NASCAR in regards to lack of internal combination, absence of fan management method and lack of social and digital media of marketing. The business has intricate community with independent tracks, teams and chauffeurs. This structure with closed business culture bring various difficulties in speeding up a modification. Other partners in environment includes the media networks i.e. tv and radio, and business online marketers.

Limits Of Mass Customization Case Study Solution viewers was highly loyal to the sport and the brands related to the NASCAR, making it appealing for sponsors and corporate online marketers.

Problem Declaration.

The business is presently dealing with the issue of decreasing rates of participation at racing tracks and rates of tv viewers. This can put a considerable impact on its profits from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

The company was rather successful till 2005 with its conventional marketing techniques, but quickly after 2005 the business begins facing numerous issues including decline of its fan base. A number of external along with internal factors are accountable for the decline. Internal factors consist of; inadequate investment in social networks and other digital medias of.

Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and develop generational commitment. However the family system in America was altering resulting in reduction of impact of married male fan base over their children. In addition to it perceptions about cars and truck was also altering with perceiving vehicle an automobile to reach at point B from point A, instead of as a fun project. Other difficulties for Limits Of Mass Customization Case Study Analysis consists of the shift of its fans to other sports as they were enhancing their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, etc. These all challenges were tending the business to revise its marketing strategies.

SWOT Analysis.


In SWOT analysis, strengths defined as business's qualities which are different from its rivals. These are company's core proficiencies on which business efficiency or business success based on. Limits Of Mass Customization Case Study Analysis core competencies includes it has rights of determining guidelines as sanctioning body. Regulations and guidelines concerning professional stock car racing are determined by NASCAR like if any team with required abilities and resources can enter into races by following guidelines and guidelines dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to relay in more than 150 countries around the world with more than $56 million profits. The primary sources of their incomes originate from television rights, approving charges, 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. Because of greatest brand loyalty of fans toward brands promoted by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).

Weak points.

Weaknesses of NASCAR includes its close culture which is non collective. Limits Of Mass Customization Case Study Analysis develops Car of Tomorrow without partnership so result is that motorists did not like that idea. It was also found that NASCAR had no effective technique for service interaction.
Porter's 5 Forces Analysis

NASCAR typically used to rely on standard media sources like regional paper for publicity of its sports. NASCAR likewise came to understand from these standard media outlets that sport was tough to cover. When sports fans were asked relating to popular celebrities and stars then NASCAR chauffeur was not found even in top twenty responses.


Risks in SWOT analysis are specified as external aspects that can threat to company's success. Since if there is economic down turn then individuals would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be threat for NASCAR. Earning of people would be effected and they would be more conscious in investing their cash. Economic down turn also leads to boost fuel rates which likewise impacted NASCAR. Since fans of NASCAR utilized to attend its occasion from fars away. NESCAR had a guideline of 65/25/10 for earnings distribution. 65 percent earnings from media rights would be distributed to race course, 25 percent revenue would be dispersed to contending team and remaining 10 percent would be maintained by NESCAR which is sanctioning body. Competing team wished to increase their portion of income from 25 percent due to the fact that of boost in running cost of a race team and likewise there is decline in the variety of full-season sponsorship. NESCAR likewise faces hazards from other sponsors because they are making massive investments to enhance experience of fans. Which consists of updating existing avenues, building brand-new opportunities, supplying Wi-Fi facility and also supplying other interactive mediums to communicate sports on smartphones. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and create generational loyalty. The difficulty is that the family system in America was altering resulting in decrease of impact of married male fan base over their youngsters. In addition to it understandings about car was also changing with viewing automobile a lorry to reach at point B from point A, instead of as an enjoyable job. If NASCAR make considerable investments in new segments which are based on new clients then it might deal with negative remarks from its core fan base, now.

Porter's 5 Forces Analysis

Porter's 5 forces is a design that is used to analyse market in which company is working. It helps in determining what are strengths and weakness of any specific industry. It suggest that every industry is different from one another. Due to the fact that NASCAR's bottom line i.e. net earnings is heavily depends on this, it is essential to understand market in which company is working. There are 5 forces that are utilized to recognize profitability, intensity and beauty of Limits Of Mass Customization Case Study Solution business.

Competitive Rivalry

These chauffeurs can go against NASCAR if they got much better chance in terms of rewards and television exposure. If audiences take pleasure in other race cars and drivers more than NASCAR then audiences can move to those other fascinating vehicles and drivers. NASCAR might be having danger from its two direct rivals that is Solution 1 and Moto GP.
Swot Analysis
Provider Power

If business shifts from one supplier to another, the supplier power indicates the number of suppliers are readily available in market and what is the cost associated with supplier. Due to the fact that chauffeurs with required resources and skills are limited, in this market there is supply monopoly.

Purchaser Power

This force is regarding to clients that is it simple for consumers to move to other products. Then customers are less likely to switch, if there is more changing expense is associated. In the case of NASCAR clients are its audiences. Because viewers will having low switching expense, audiences can change to other competitors quickly.

Danger of Alternative

Replacements are referred as options. The alternatives in this case can be other entertainment implies like viewers can move to other sports. So there are wide range of alternatives are offered in this scenario which recommends that hazard of replacement is high.

Hazard of New Entry

In the case of NASCAR danger of brand-new entry is low. They require to develop vehicles and racing tracks and also requires to pay large quantity to chauffeurs for switching.

PESTEL Analysis


As NASCAR is working in different markets so it needs to deal with different policies. It is likewise kept in mind that NASCAR has actually faced increased examination concerning regulatory. Every government has different top priority so NASCAR has actually to be prepared for it as priority can be moved to other sector.


Economic elements consists of tax rate, exchange rate, economic performance of that specific business, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can leverage abilities of employees to produce brand-new opportunities and enhance existing opportunities.


Every society is various from each other. Each has various social values and norms. It helps in understanding regarding society and choice of clients. Social factors consists of customs, culture, mindsets towards particular services and products, demographics, norms, interests and so on. It can be concluded that marketing through other methods instead of conventional (i.e. newspaper) can be preferred in this society.


Innovation has effect on practically every service. It consists of development in company method. In this case of Limits Of Mass Customization Case Study Help it can be noted that business are heavily spending for research and advancement. NASCAR needs to also deal with its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays an important role in every country due to the fact that every nation has various legal terms and conditions. Limits Of Mass Customization Case Study Analysis needs to be ensure that they safeguard their legal rights in every county so any company does not hurt to its legal rights.


Ecological elements are also crucial for every organisation. NASCAR needs to make sure that its cars are not producing contamination more than appropriate level.

7 P's of Marketing


The items of Limits Of Mass Customization Case Study Solution in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).


Pricing strategy of NASCAR for its race occasions tickets is based upon the location and value of the racing occasions. Together with race occasions tickets, NASCAR also charge different service charge to its stakeholders and makes profits. It charged approving fees of $1-2 million per race on average in 2005.


Marketing strategy of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.


NASCAR have its racing tracks in various cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in the majority of the cities in United States to grasp across the country appeal.


Nestle individuals strategy is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. People are an essential element of Limits Of Mass Customization Case Study Solution A marketing method as its occasions are the source of entertainment for crowd. Its individuals method includes efforts to provide better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under individuals strategy of NASCAR.


A number of business procedures are needed to carry out racing occasions in an effective method. These processes consist of; appropriate schedule of time, arrangement for viewers, offering tickets, plan of area for sponsors, handling logistics and so on. These all procedures contribute I constructing NASCAR image, improving spectators experience and increasing fan base.

Physical Proof.

Crucial physical evidences for the NASCAR includes the existence of its racing tracks, stock vehicles and racing occasions. Along with it, its retailing brand names consisting of t-shirts, caps, goodies and so on, also act as a physical evidence for NASCAR.

Product Life Cycle Assessment.

The racing events by Limits Of Mass Customization Case Study Analysis was presented on June 19, 1949. The very 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 stage competitors for NASCAR was low, as the competitors drove the vehicles comparable to the cars and trucks driven by normal individuals.


After conducting its very first race successfully the company moved towards building its own tracks. The very first Limits Of Mass Customization Case Study Analysis based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards relaying its races on tv in 1979. The very first occasion relayed on television was flag-to-flag coverage of Daytona.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular company into one with global fan base. He started a new age of rewarding sponsorships and television agreements for NASCAR.


The maturity duration for NASCAR started with the efforts of William France Jr., with the business having large range of profits sources. The business has about 500 sponsors with transmitting 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 decline include the financial crisis of 2008, which increased the expense of getting to tracks for viewers due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Division.

The marketplace segmentation of Limits Of Mass Customization Case Study Solution can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Limits Of Mass Customization Case Solution is based upon the geographical existence of its tracks in various states and cities in United States, and the tv broadcasting of its occasions in various nations. The company has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division supplies the business regional in addition to international fan base.


The group division of NASCAR is also highlydiverse based upon the gender, income and age of the consumer. Its existing fan base is majorly consisted of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. However presently NASCAR is attempting to increase its target market to the young growing population and kinds too. To increase the group section of its market NASCAR should revise its marketing strategies to bring in more age groups and lower its rates to go into in the market sector with a low typical earnings.( htt1).


The mental qualities of the majority of the fans are rather comparable. NASCAR has a fan base with a commitment. When in a week, NASCAR fans view it compulsive to buy tickets and see the races. 71% of them choose to acquire items with a NASCAR brand. They are quite extrovert and want to join other fans while racing. They desire quality racing with low price at hassle-free location. Although Limits Of Mass Customization Case Study Solution has actually tried to increase the quality of its racing by introducing stage racing, they likewise have actually attempted to lower rates and make the event more convenient by introducing live racing.


Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the tv or by going in the events. Presently, the fans choice is towards viewing the race at house on tv rather than going, as the consumer experience at NASCAR tracks is not favourable as well as expensive.

Target audience.


One of the potential target market of Limits Of Mass Customization Case Study Analysis was Hispanics; the young and growing population of United States. The market section has fantastic potential for NASCAR as the population was growing at a higher rate and it was anticipated to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014. The segment reveals affinity with cars and truck culture, but need a more focused marketing towards inviting the segment towards racing.


Kids are likewise one of the possible target market section for NASCAR, as they are more connected socially than other groups. Vehicle racing games developed by Limits Of Mass Customization Case Study Analysis can be a prospective source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and improving its digital features to bring in the kids target market.

This big expense makes the segment potential for NASCAR marketing method of increasing its fan base. The market sector thinks about NASCAR as a company lacking in producing a multiculturalism environment. NASCAR needs to take various steps to improve the experience of Generation Y customers in its occasions.

5 C's of Marketing

5 C's of marketing helps in taking choices relating to marketing. These 5 C's needs to be analysed effectively for taking any marketing choice. These 5 C's represent Climate, Business, Collaborators, Competitors and clients.


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


Limits Of Mass Customization Case Study Analysis is an auto racing business with having USP of high quality automobile racing with a global structure. Its sector is sports team and events.


Collaborations consists of distributors, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million annually from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.


The consumer of Limits Of Mass Customization Case Study Analysis are its viewers. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and develop generational commitment.


Teams typically represents sponsors in NASCAR and the medium of advertising is motorists. These chauffeurs can go against NASCAR if they got much better chance in terms of rewards and tv exposure.

Marketing Techniques.

1. Keeping and establishing Facebook Page.
Among the possible target audience sections for NASCAR is Hispanics which is the growing population sector of USA however unfortunately NASCAR had been unable to bring in the this targeted section. In order to attract the young growing generation the NASCAR ought to market by utilizing social networks like Facebook. It should establish a Facebook page containing the info regarding the races and the locations of tracks to make the customer helpful about the core operations of Limits Of Mass Customization Case Study Help. It ought to likewise update its Facebook page on daily basis to supply details about its approaching occasions. This would make the target audience sector more informative about the business and would result in attracting large fans base.
2. Developing and Updating Accounts of Secret Drivers.
NASCAR drivers has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The significant reason behind it is that, the racers mainly play in groups and are unable to build an essential account and preserve a close contact with fans. The poor contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is an essential factor for drawing in audiences towards tracks and towards tv. The star power for the drivers at NASCARA could be improved by developing and updating accounts of essential drivers by NASCARA itself. This would get rid of the requirement of requiring motorists to keep their accounts and would result in increasing fans attention towards NASCARA chauffeurs.
3. Developing New Games and enhancing current games for kids.
In order to bring in these kids, NASCARA should improve its existing racing games by presenting modification in the cars i.e. altering colours, choice of speed, introducing group racing in the video game, utilizing much better graphics related to the racing tracks and introducing various levels in the game. All these adjustments in the existing video game would supply much better experience to kids.
Together with it, NASCAR should also construct new games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing between numerous animation characters with a choice of selecting the preferred animation character for the kids. These strategies would enable the business to attract one of its potential target segments.
4. Introducing multiculturalism at occasions.
Limits Of Mass Customization Case Study Analysis occasions are comprised of fans with very few cultural diversity, due to cost of arrival in occasions, making it unsightly for the clients perceiving sport occasions as social occasions i.e. Generation Y clients. As the Generation Y consumers are a prospective target market for NASCAR, for that reason the business should take particular steps to attract this possible target market. It needs to adopt techniques to draw in the customers far from the tracks area with various culture. The strategy to do so could be providing unique discounts on tickets or totally free tickets to audiences originating from a specific range or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more pleased.
5. Improving Consumer Experience at Tracks.
Limits Of Mass Customization Case Study Solution should deal with facilities and amenities at tracks due to the fact that on the race day audiences got disappointed. Since in very same market other business are supplying much better services than NASCAR, viewers have lots of expectations from Limits Of Mass Customization Case Study Analysis. Then its fans might moved to its competitors, if NASCAR don't work on this problem. According to fans there were not adequate facilities were offered as compare to other sports companies. NASCAR must make sure that it offer sufficient centers that includes cleaned up toilets, comfortable seating plan. They ought to also supply WIFI services and ease of access of credit cards throughout that track. It must be likewise ensure that there suffice jumbo turns positioned at all needed places. There should be also food stalls that offer quality food to viewers. In this way viewers will be having enjoyable experience at the day of event. (See Appendix B).

Marketing Budget plan

Marketing budget made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the cost associated data for the marketing methods. It can be seen that method 5 of improving client experience at tracks would need highest initial financial investment and cost and strategy 4 of presenting multiculturalism will need most affordable initial financial investment with lowest further per year cost.
NOTE: The worths about cost are assumed on logical basis due the absence of truths and figures associated with cost in the event study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the external and internal elements of Limits Of Mass Customization Case Study Solution causing the decrease of tv viewership rate and presence rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long run. These methods would deal with internal elements like bad customer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, as well as with external factors like shifting of fans towards other sports, demographical modifications in America and changing domesticity designs.