Limits Of Mass Customization Online Case Study Help

Home >> Business >> Limits Of Mass Customization

Limits Of Mass Customization Case Study Solution & Analysis


NASCAR (National Association for Stock Vehicle Automobile Racing) is an organization carrying out series of Stock Automobile racing in United States and acting as a sanctioning body for driving the rules for Stock Automobile Racing. 2) Stock Car Racing by NASCAR is the second biggest viewer sport, with highest number of sponsors. 1) The other sources of income for Limits Of Mass Customization Case Study Analysis includes; 10% of the total revenue from television rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.

NASCAR has a closed business culture with the non-interventionist technique. The structure of Car of Tomorrow by NASCAR, with an intention of safety for the drivers, brought different stress among the stakeholders of the sport.
Executive Summary
The interaction audit, carried out in 2010, exposed that despite the reality that the service highly rely on the interactions between its stakeholders, there was no identifiable organisation interaction technique. (

The audit explained numerous lacking of NASCAR in terms of absence of internal integration, lack of fan management strategy and lack of social and digital media of marketing. The company has complex environment with independent tracks, drivers and groups. This structure with closed business culture bring various challenges in speeding up a change. Other partners in community consists of the media networks i.e. television and radio, and business marketers.

Limits Of Mass Customization Case Study Help audiences was extremely devoted to the sport and the brands related to the NASCAR, making it appealing for sponsors and corporate marketers.

Issue Statement.

The business is presently dealing with the issue of decreasing rates of attendance at racing tracks and rates of television viewers. This can put a substantial influence on its incomes from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

Although the business was quite successful till 2005 with its standard marketing strategies, but soon after 2005 the company starts dealing with different problems including decrease of its fan base. A number of external in addition to internal factors are responsible for the decline. Internal factors include; inadequate investment in social networks and other digital medias of.

Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational loyalty. Other difficulties for NASCAR 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.

SWOT Analysis.


In SWOT analysis, strengths defined as company's qualities which are different from its rivals. These are company's core competencies on which business efficiency or business success based on. Limits Of Mass Customization Case Study Solution core proficiencies includes it has rights of dictating guidelines as approving body. Guidelines and rules concerning expert stock automobile racing are dictated by NASCAR like if any team with needed skills and resources can participate in races by following guidelines and regulations dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise includes that it has title of second largest 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 nations around the world with more than $56 million incomes. The primary sources of their incomes originate from television rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three national 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. Since of biggest brand commitment of fans towards brands promoted by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).


Weak Points in SWOT Analysis are considered as external aspects. Weak points includes the factors that stops business to carry out at required level of performance. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist technique. They usually used to form guidelines and other needed procedures without intervention of others which leads to bad collaboration. NASCAR develops 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 also found that NASCAR had no reliable method for organisation interaction. They don't understand how to handle concern if it happened off track. Inefficient company communication leads to that they don't have clear direction for their long term objectives. They do not understand that where they want to see this sport in future.
Porter's 5 Forces Analysis

NASCAR typically used to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR also came to know from these conventional media outlets that sport was difficult to cover. When sports fans were asked regarding popular celebrities and stars then NASCAR chauffeur was not found even in leading twenty reactions.


Risks in SWOT analysis are defined as external elements that can risk to business's success. Due to the fact that if there is financial down turn then individuals would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be danger for NASCAR. Earning of people would be effected and they would be more mindful in investing their money. Economic down turn also leads to boost fuel prices 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 profits circulation. 65 percent incomes from media rights would be distributed to race course, 25 percent profits would be dispersed to completing team and staying 10 percent would be kept by NESCAR which is approving body. Competing team wished to increase their part of revenue from 25 percent because of increase in running cost of a race group and likewise there is decline in the number of full-season sponsorship. Since they are making massive financial investments to enhance experience of fans, nescar also faces dangers from other sponsors. For instance which includes updating existing avenues, constructing brand-new opportunities, offering Wi-Fi center and likewise offering other interactive mediums to engage sports on smart devices. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and produce generational loyalty. The challenge is that the household system in America was changing resulting in decrease of impact of married male fan base over their children. Along with it understandings about car was likewise changing with viewing cars and truck an automobile to reach at point B from point A, instead of as an enjoyable job. Now if Limits Of Mass Customization Case Study Help make considerable financial investments in new sectors which are based upon brand-new clients then it might face negative remarks from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a model that is used to evaluate market in which company is working. It assists in determining what are strengths and weakness of any particular market. It recommend that every market is different from one another. Since NASCAR's bottom line i.e. net earnings is greatly depends on this, it is crucial to understand industry in which business is working. There are 5 forces that are used to identify success, strength and attractiveness of Limits Of Mass Customization Case Study Solution company.

Competitive Competition

This force shows capability of rivals. Teams typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. Therefore it can be stated that chauffeurs and race vehicles are rivals. If they got much better opportunity in terms of prizes and tv exposure, these motorists can go against Limits Of Mass Customization Case Study Analysis. If viewers enjoy other race automobiles and motorists more than NASCAR then audiences can move to those other interesting automobiles and drivers. NASCAR could be having threat from its two direct competitors that is Formula 1 and Moto GP. They need to develop competitive benefits for motorists so they do not shift to other rivals.
Swot Analysis
Provider Power

The provider power shows the variety of suppliers are available in industry and what is the expense connected with supplier if business shifts from one supplier to another. In this industry there is supply monopoly since motorists with needed skills and resources are restricted.

Purchaser Power

This force is regarding to consumers that is it simple for customers to move to other products. Then clients are less most likely to switch, if there is more changing expense is associated. When it comes to NASCAR consumers are its audiences. Viewers can change to other competitors easily due to the fact that viewers will having low changing expense.

Danger of Alternative

Replacements are referred as alternatives. The replacements in this case can be other entertainment suggests like audiences can shift to other sports. So there are large range of replacements are readily available in this situation which recommends that threat of alternative is high.

Risk of New Entry

In the case of NASCAR risk of new entry is low. They need to develop vehicles and racing tracks and likewise requires to pay substantial quantity to motorists for changing.

PESTEL Analysis


As NASCAR is working in different markets so it requires to deal with various regulations. It is also kept in mind that NASCAR has faced increased examination regarding regulatory. Every government has different priority so NASCAR has actually to be prepared for it as concern can be moved to other sector.


Economic factors consists of tax rate, exchange rate, financial efficiency of that specific business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can utilize abilities of workers to produce new chances and enhance existing chances.


Every society is various from each other. Each has different social values and norms. It assists in comprehending regarding society and preference of consumers. Social elements includes traditions, culture, mindsets towards specific services and products, demographics, standards, interests etc. It can be concluded that advertising through other ways rather than traditional (i.e. newspaper) can be chosen in this society.


Technology has influence on nearly every business. It consists of development in company strategy. In this case of Limits Of Mass Customization Case Study Solution it can be noted that business are heavily spending for research and advancement. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays a crucial role in every nation since every nation has various legal terms and conditions. Limits Of Mass Customization Case Study Solution requires to be make certain that they secure their legal rights in every county so any company does not damage to its legal rights.


Ecological elements are likewise essential for every single business. Because typically governments don't enable those company which can damage to environment. These ecological aspects consists of laws relating to pollution, environment change, safe garbage disposal, policies concerning insurance coverage etc. NASCAR needs to make certain that its vehicles are not creating contamination more than acceptable level.

7 P's of Marketing


The items of Limits Of Mass Customization Case Study Help in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).


Pricing method of NASCAR for its race occasions tickets is based upon the venue and importance of the racing occasions. In addition to race occasions tickets, NASCAR also charge different service charge to its stakeholders and earns income. For example it charged approving charges of $1-2 million per race typically in 2005.


Advertising strategy of Limits Of Mass Customization Case Study Help 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. The company is not totally relied upon its fan base for its promotion and promote through local radio stations too. The business has also embraced the merchandising media of promo, in which the company sells merchandises with its logo.


NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to comprehend across the country popularity.


Nestle individuals technique is consisted of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important element of Limits Of Mass Customization Case Study Analysis A marketing technique as its occasions are the source of entertainment for crowd. Its people strategy consists of efforts to supply better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under people strategy of NASCAR.


Several company processes are required to perform racing events in an effective way. These processes include; appropriate schedule of time, plan for viewers, selling tickets, arrangement of area for sponsors, managing logistics and so on. These all processes contribute I developing NASCAR image, enhancing spectators experience and increasing fan base.

Physical Proof.

Most important physical proofs for the NASCAR consists of the existence of its racing tracks, stock automobiles and racing events. Along with it, its retailing brand names including t-shirts, caps, goodies etc., also act as a physical proof for NASCAR.

Item Life Process Evaluation.

The racing occasions by NASCAR was introduced on June 19, 1949. At the first stage competition for NASCAR was low, as the competitors drove the cars and trucks similar to the cars and trucks driven by regular people.


The first NASCAR based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the business moved towards transmitting its races on television in 1979.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular company into one with worldwide fan base. He initiated a brand-new period of lucrative sponsorships and tv contracts for NASCAR.


The maturity duration for NASCAR started with the efforts of William France Jr., with the company having large range of earnings sources. The business 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 typical attendance rate per race declined by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major causes of decline include the monetary crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Division.

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


The geographical segmentation of Limits Of Mass Customization Case Analysis is based upon the geographical presence of its tracks in different states and cities in United States, and the tv broadcasting of its events in different countries. The business 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 huge geographical division provides the company local along with international fan base.


The market division of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its existing fan base is majorly comprised of male married fans with an average age of 47 years and an income around $30-50 thousands. Currently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the demographic section of its market NASCAR must modify its marketing methods to bring in more age groups and lower its costs to enter in the marketplace sector with a low typical income.( htt1).


NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to purchase tickets and see the races when in a week. NASCAR has attempted to increase the quality of its racing by introducing stage racing, they also have attempted to lower prices and make the event more hassle-free by presenting 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 watching the race at house 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 sector 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 sector has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are likewise among the possible target audience sector for NASCAR, as they are more linked socially than other groups. Creating fan base amongst kids can offer a possible increase in the number of fans for racing due to their connection. Kids invest most of their times in playing and using smartphones video games. Automobile racing games established by Limits Of Mass Customization Case Study Solution can be a possible source of getting attention of kids towards NASCAR track racing. NASCAR's digital features related to kids are not capable of gaining the attention. NASCAR needs more attention towards tailoring and improving its digital features to bring in the kids target audience.

This big expense makes the section potential for NASCAR marketing strategy of increasing its fan base. The market sector considers NASCAR as an organization lacking in developing a multiculturalism environment. NASCAR needs to take numerous actions 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.


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


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


Collaborations consists of suppliers, suppliers and alliances of Limits Of Mass Customization Case Study Analysis. It is teamed up with different racing groups which are taking part in racing. It also collaborated with Turners Sport for digital rights. NASCAR utilized to get pay 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 want to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot during race at track.


The customer of Limits Of Mass Customization Case Study Analysis are its audiences. 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 chauffeurs. These chauffeurs can go versus NASCAR if they got better chance in terms of rewards and tv direct exposure.

Marketing Techniques.

1. Maintaining and developing Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population section of U.S.A. but sadly NASCAR had been unable to draw in the this targeted sector. It should develop a Facebook page including the information relating to the races and the places of tracks to make the consumer helpful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibit). The significant factor behind it is that, the racers mainly play in teams and are unable to construct an essential account and keep a close contact with fans. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an essential aspect for attracting audiences towards tracks and towards television. The star power for the motorists at NASCARA could be improved by developing and upgrading accounts of crucial motorists by NASCARA itself. This would eliminate the requirement of forcing drivers to keep their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Developing New Games and enhancing current games for kids.
In order to attract these kids, NASCARA ought to enhance its present racing games by introducing personalization in the vehicles i.e. changing colours, selection of speed, introducing group racing in the game, using better graphics related to the racing tracks and introducing various levels in the game. All these adjustments in the current game would provide better experience to kids.
Along with it, NASCAR needs to likewise develop brand-new video games connected to racing like kids racing with kids characters as drivers, cartoon racing with racing in between different cartoon characters with an option of selecting the preferred animation character for the kids. These techniques would make it possible for the company to attract one of its potential target sectors.
4. Introducing multiculturalism at events.
NASCAR occasions are comprised of fans with really few cultural diversity, due to expense of arrival in occasions, making it unsightly for the customers viewing sport events as social celebrations i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, therefore the business must take specific steps to attract this potential target market.
5. Improving Client Experience at Tracks.
NASCAR ought to work on infrastructure and amenities at tracks because on the race day viewers got disappointed. Audiences have many expectations from Limits Of Mass Customization Case Study Help because in same industry other companies are supplying better services than NASCAR. IF NASCAR do not work on this issue then its fans may moved to its competitors.

Marketing Budget 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 associated data for the marketing methods. It can be seen that strategy 5 of enhancing consumer experience at tracks would require greatest preliminary investment and expense and strategy 4 of presenting multiculturalism will require lowest initial financial investment with least expensive further per year cost.
NOTE: The worths about expense are assumed on reasonable basis due the absence of figures and truths related to cost in the case research study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the external and internal aspects of Limits Of Mass Customization Case Study Solution triggering the decline of tv viewership rate and attendance rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long run. These strategies would handle internal factors like bad client experience at tracks, insufficient social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., as well as with external factors like shifting of fans towards other sports, demographical changes in America and changing family life styles.