Limits Of Mass Customization Case Study Solution & Analysis
NASCAR (National Association for Stock Vehicle Car Racing) is a company conducting series of Stock Cars and truck racing in United States and acting as a sanctioning body for driving the rules for Stock Vehicle Racing. 2) Stock Car Racing by NASCAR is the second biggest viewer sport, with greatest number of sponsors. 1) The other sources of income for Limits Of Mass Customization Case Study Solution consists of; 10% of the overall revenue from tv rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist technique. This non collaborative method brings tensions in the sport. The building of Automobile of Tomorrow by Limits Of Mass Customization Case Study Analysis, with an intent of security for the motorists, brought various tensions among the stakeholders of the sport.
The communication audit, performed in 2010, revealed that in spite of the reality that the service highly rely on the communications in between its stakeholders, there was no recognizable business communication strategy. (
The audit pointed out various doing not have of NASCAR in terms of absence of internal combination, absence of fan management technique and lack of social and digital media of marketing. The business has intricate ecosystem with independent tracks, teams and drivers. This structure with closed business culture bring different obstacles in accelerating a change. Other partners in community includes the media networks i.e. television and radio, and business online marketers.
Limits Of Mass Customization Case Study Analysis viewers was highly devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and business marketers.
The company is presently dealing with the problem of decreasing rates of presence at racing tracks and rates of tv audiences. This can put a significant effect on its revenues from sponsors, media rights, and from other sources of profits.
The business was quite successful till 2005 with its traditional marketing methods, but soon after 2005 the business begins dealing with numerous issues including decrease of its fan base. A number of external along with internal elements are accountable for the decrease. Internal factors include; inadequate financial 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 children and produce generational commitment. The household system in America was changing resulting in decrease of influence of married male fan base over their children. Together with it perceptions about cars and truck was likewise changing with viewing cars and truck a car to reach at point B from point A, rather than as an enjoyable job. Other challenges for Limits Of Mass Customization Case Study Help 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 access, etc. These all challenges were tending the company to modify its marketing techniques.
NASCAR core competencies includes it has rights of determining rules as sanctioning body. Rules and guidelines relating to expert stock vehicle racing are dictated by NASCAR like if any team with required skills and resources can enter into races by following guidelines and guidelines dictated by NASCAR. All the events of NASCAR are sponsored by corporates due to the fact that of biggest brand name loyalty of fans towards brands marketed by Limits Of Mass Customization Case Study Analysis.
Weaknesses of NASCAR includes its close culture which is non collective. Limits Of Mass Customization Case Study Solution establishes Cars and truck of Tomorrow without partnership so result is that motorists did not like that principle. It was also discovered that NASCAR had no reliable strategy for business communication.
Opportunities in SWOT analysis are external elements which can be beneficial to company or the external aspects on which business is having competitive benefit. NASCAR generally utilized to count on standard media sources like local newspaper for publicity of its sports. Typically these standard media sources try to cover their home group and certain sort of occasions. NASCAR also came to know from these standard media outlets that sport was difficult to cover. Media landscape likewise changed from conventional to digital landscape. Newspapers went out of business. NASCAR can work on its capabilities to get optimal possible take advantage of this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR utilized to earn money check of around $15 million yearly from Turner Sports. There are variety 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 also had rights of each and every single video which is shoot during race at track. If media sources like papers, publications and cable channels wish to post videos of races on their particular pages then they are required to pay licensing charges to Turner Sport. So NASCAR can work on conditions and try to work out with Turner Sports to get maximum benefits of it. Star power plays really essential role in producing revenues from every sport. However it was kept in mind that Limits Of Mass Customization Case Study Analysis is lagging in this location i.e. star power. For instance when sports fans were asked regarding popular celebs and stars then NASCAR driver was not discovered even in top twenty responses. So NASCAR can put efforts in this location too for income generation. They should direct their chauffeurs that how they can end up being sport stars. 4 strategic focuses which are created by research study group can also be served as opportunity for NESCAR. These 4 strategic focuses compares and analysis Limits Of Mass Customization Case Study Analysis techniques.
Hazards in SWOT analysis are defined as external factors that can risk to business'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 risk for NASCAR. Earning of individuals would be effected and they would be more mindful in investing their money. Economic down turn also results in increase fuel rates which also impacted NASCAR. Because fans of NASCAR used to attend its event from long distances. NESCAR had a guideline of 65/25/10 for revenue circulation. 65 percent revenues from media rights would be distributed to race course, 25 percent earnings would be distributed to competing team and staying 10 percent would be maintained by NESCAR which is approving body. Contending group wished to increase their part of income from 25 percent because of increase in running cost of a race team and also there is decrease in the number of full-season sponsorship. NESCAR also deals with threats from other sponsors because they are making huge investments to improve experience of fans. For example which includes upgrading existing opportunities, building brand-new avenues, providing Wi-Fi facility and likewise offering other interactive mediums to connect sports on smartphones. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and create generational loyalty. The difficulty is that the family system in America was changing resulting in reduction of influence of married male fan base over their youngsters. In addition to it understandings about car was also altering with viewing cars and truck an automobile to reach at point B from point A, instead of as an enjoyable job. If NASCAR make significant investments in brand-new sectors which are based on new customers then it might deal with negative comments from its core fan base, now.
Porter's 5 Forces Analysis
Porter's 5 forces is a design that is used to evaluate industry in which company is working. It helps in determining what are strengths and weakness of any particular industry. It recommend that every industry is various from one another. It is very important to understand industry in which company is working due to the fact that NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are used to recognize success, strength and beauty of Limits Of Mass Customization Case Study Analysis company.
This force indicates capability of competitors. Teams usually represents sponsors in NASCAR and the medium of advertising is motorists. It can be stated that drivers and race automobiles are rivals. If they got much better chance in terms of prizes and tv direct exposure, these drivers can go against Limits Of Mass Customization Case Study Solution. If audiences delight in other race automobiles and drivers more than NASCAR then audiences can shift to those other intriguing automobiles and chauffeurs. NASCAR might be having threat from its two direct competitors that is Formula 1 and Moto GP. They require to produce competitive advantages for drivers so they don't move to other rivals.
The supplier power indicates the variety of providers are available in market and what is the expense related to supplier if business shifts from one supplier to another. Because motorists with required resources and skills are limited, in this industry there is supply monopoly.
This force is concerning to consumers that is it simple for consumers to shift to other items. If there is more changing cost is associated then clients are less most likely to change. In the case of NASCAR customers are its viewers. Audiences can change to other rivals easily since viewers will having low changing expense.
Threat of Replacement
Substitutes are referred as alternatives. The replacements in this case can be other entertainment indicates like viewers can move to other sports. So there are wide variety of substitutes are readily available in this scenario which recommends that danger of substitute is high.
Threat of New Entry
It is specified as how it is easy for any business to enter in that specific industry. In the case of Limits Of Mass Customization Case Study Analysis hazard of new entry is low. Since if any business requires to go into in this service than they need to make heavy financial investments. They need to construct cars and racing tracks and likewise needs to pay large total up to motorists for changing.
As NASCAR is working in different markets so it requires to deal with various regulations. It is likewise noted that NASCAR has dealt with increased scrutiny relating to regulative. Every government has various concern so NASCAR has actually to be prepared for it as top priority can be shifted to other sector.
Economic aspects consists of taxation rate, exchange rate, financial performance of that specific business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be affected if there is government intervention in the marketing and sales sector. NASCAR can leverage capabilities of workers to produce new opportunities and improve existing chances.
Every society is various from each other. Each has various social values and standards. It assists in understanding regarding society and preference of consumers. Social aspects includes customs, culture, attitudes towards particular product and services, demographics, standards, interests and so on. It can be concluded that marketing through other ways instead of traditional (i.e. paper) can be preferred in this society.
In this case of NASCAR it can be noted that companies are heavily spending for research study and development. NASCAR should also work on its media rights policy with Turner Broadcasting System.
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 make certain that they protect their legal rights in every county so any company does not harm to its legal rights.
Environmental aspects are likewise crucial for every company. NASCAR requires to make sure that its automobiles are not generating pollution more than acceptable level.
7 P's of Marketing
The products of Limits Of Mass Customization Case Study Help 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 online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Pricing strategy of NASCAR for its race occasions tickets is based upon the location and importance of the racing occasions. Together with race events tickets, NASCAR likewise charge numerous service fees to its stakeholders and earns earnings. For example it charged approving costs 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 viewers for NASCAR races.
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 attempts to perform its races in the majority of the cities in United States to grasp across the country appeal.
Nestle individuals technique is consisted of providing much better experience to its audiences, its fan base and to all of its stakeholders. People are an essential aspect of Limits Of Mass Customization Case Study Analysis A marketing method as its occasions are the source of home entertainment for crowd. Its people strategy includes efforts to provide better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under people strategy of NASCAR.
Numerous service processes are required to carry out racing events in an effective method. These processes consist of; appropriate schedule of time, plan for spectators, offering tickets, plan of space for sponsors, handling logistics and so on. These all processes contribute I building NASCAR image, improving spectators experience and increasing fan base.
Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and racing occasions. In addition to it, its retailing brands consisting of t-shirts, caps, goodies etc., also function as a physical evidence for NASCAR.
Product Life Cycle Assessment.
The racing events by NASCAR was introduced on June 19, 1949. At the very first stage competitors for NASCAR was low, as the competitors drove the cars comparable to the vehicles driven by regular people.
The first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the business moved towards transmitting its races on tv in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular company into one with worldwide fan base. He started a brand-new age of financially rewarding sponsorships and television contracts for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the company having wide range of earnings sources. The company has about 500 sponsors with broadcasting its occasions in about 150 nations. The company has large number of tracks in the majority of the cities of United States.
The decrease in the business's offerings started after 2005 with average presence rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The major reasons for decline consist of the monetary crisis of 2008, which increased the expense of reaching tracks for audiences due to increasing fuel prices, and the shifting of its fan base towards other sports.
The marketplace division of Limits Of Mass Customization Case Study Help 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 television broadcasting of its occasions in different nations. The company has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical division provides the business local in addition to global fan base.
The group division of Limits Of Mass Customization Case Study Analysis is also highlydiverse based upon the gender, income and age of the customer. To increase the group sector of its market NASCAR should revise its marketing techniques to bring in more age groups and lower its prices to enter in the market segment with a low typical earnings.
NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to acquire tickets and see the races as soon as in a week. NASCAR has actually tried to increase the quality of its racing by introducing phase racing, they likewise have attempted to lower rates and make the event more convenient by introducing live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the television or by going in the events. Presently, the fans choice is towards watching the race at house on television rather than going, as the consumer experience at NASCAR tracks is not favourable as well as costly.
One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has terrific prospective for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are likewise among the potential target market sector for NASCAR, as they are more connected socially than other groups. Developing fan base amongst kids can supply a potential boost in the number of fans for racing due to their connectivity. Kids invest the majority of their times in utilizing mobile phones and playing computer game. Car racing games established by Limits Of Mass Customization Case Study Help can be a possible source of acquiring attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital features connected to kids are not capable of gaining the attention. NASCAR requires more attention towards customizing and enhancing its digital functions to attract the kids target audience.
This huge expense makes the section capacity for NASCAR marketing technique of increasing its fan base. The market sector thinks about NASCAR as an organization doing not have in producing a multiculturalism atmosphere. NASCAR needs to take numerous steps to improve the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions concerning marketing. These 5 C's requirements to be evaluated effectively for taking any marketing choice. These 5 C's stands for Environment, Business, Collaborators, Consumers and Competitors.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, economic, social, technical, ecological and legal and is stated above.
NASCAR is an automobile racing business with having USP of high quality automobile racing with a worldwide structure. Its sector is sports group and occasions. Its target market is males in the age of 15-60 years. Business has actually closed business culture and having non-interventionist method.
Collaborations consists of distributors, suppliers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application.
The consumer of Limits Of Mass Customization Case Study Solution are its viewers. They target customers 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 loyalty.
The direct rivals of NASCAR are Formula 1 and Moto GP. Teams usually represents sponsors in NASCAR and the medium of marketing is motorists. For that reason it can be said that chauffeurs and race vehicles are rivals. If they got much better chance in terms of rewards and television exposure, these drivers can go versus NASCAR.
1. Maintaining and developing Facebook Page.
One of the potential target markets sectors for NASCAR is Hispanics which is the growing population section of USA however unfortunately NASCAR had been unable to bring in the this targeted segment. It needs to establish a Facebook page consisting of the details concerning the races and the locations of tracks to make the consumer useful about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Secret Drivers.
Limits Of Mass Customization Case Study Analysis motorists has a low star power as compare to gamers 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 a crucial aspect for drawing in viewers towards tracks and towards tv.
3. Developing New Games and improving current games for kids.
In order to bring in these kids, NASCARA should improve its present racing games by presenting personalization in the cars i.e. changing colours, choice of speed, presenting group racing in the video game, using much better graphics related to the racing tracks and presenting numerous levels in the game. All these adjustments in the current video game would provide much better experience to kids.
Along with it, NASCAR needs to 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 choosing the preferred animation character for the kids. These techniques would enable the business to attract among its potential target sections.
4. Presenting multiculturalism at events.
NASCAR occasions are made up of fans with very couple of cultural variety, due to expense 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 clients are a potential target market for NASCAR, therefore the company must take specific procedures to attract this prospective target market.
5. Improving Client Experience at Tracks.
Limits Of Mass Customization Case Study Solution should work on facilities and facilities at tracks due to the fact that on the race day audiences got dissatisfied. Audiences have many expectations from NASCAR since in exact same industry other companies are providing better services than NASCAR. IF NASCAR don't deal with this concern then its fans may moved to its competitors. According to fans there were not adequate facilities were offered as compare to other sports companies. NASCAR should make sure that it offer appropriate centers that includes cleaned toilets, comfortable seating plan. They need to likewise supply WIFI services and accessibility of charge card throughout that track. It must be likewise make certain that there suffice jumbo turns positioned at all required locations. There should be also food stalls that supply quality food to viewers. In this method audiences will be having enjoyable experience at the day of occasion. (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, reveals the expense associated information for the marketing methods. It can be seen that strategy 5 of improving client experience at tracks would require greatest preliminary financial investment and expense and strategy 4 of presenting multiculturalism will require least expensive initial investment with least expensive further per year expense.
KEEP IN MIND: The worths about expense are assumed on reasonable basis due the absence of realities and figures connected to cost in the event study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external factors of Limits Of Mass Customization Case Study Help causing the decline of television viewership rate and attendance rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long run. These methods would manage internal elements like poor customer experience at tracks, insufficient social networks 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 changes in America and changing family life styles.