978-1285073040 Case IndyCar

Case 12 Lecture Notes

IndyCar: Seeking a Return to Motorsports’ Fast Lane

setbacks including a canceled race in China, the departure of Danica Patrick to NASCAR, and

the death of popular driver Dan Wheldon offset much of the success IndyCar enjoyed in

Bernard’s first three seasons as CEO.

Teaching Overview

This case offers students the opportunity to develop and analyze strategic alternatives to

IndyCar’s weaknesses relative to NASCAR. A concept that can be emphasized in this case is

positioning. Competition for the attention of auto racing fans is intense as NASCAR is more

popular than IndyCar in the U.S. Formula 1 is a formidable competitor in global markets.

IndyCar must find a way to appeal to fans. Its decision to hold more races on road and street

courses enables it to differentiate itself from NASCAR. Another point of difference for IndyCar

is that it has a broader reach globally in terms of race markets and drivers’ nationalities. Despite

its troubles, IndyCar possesses strengths that it can leverage as it attempts to emerge stronger

following reunification.

Other issues in this case pertain to the product and distribution elements of IndyCar’s marketing

strategy. Is the shift toward more road/street courses a way to differentiate from NASCAR, or

will it alienate fans further that prefer oval track racing? Can IndyCar adopt the successful street

festival approach developed by Champ Car, transforming events from auto races to

entertainment experiences? A distribution issue exists in the decision of which markets should

IndyCar pursue to hold races? Is the decision to hold races outside the U.S. appropriate, or

should IndyCar look to expand to domestic markets it currently does not serve?

SWOT Analysis

Internal Strengths

• Indianapolis 500 is premier auto race in the United States

• Randy Bernard, IndyCar CEO

• Geographically diverse driver roster

Internal Weaknesses

• Television partner (NBC Sports Network) not as strong of a partner as ESPN

• 16-race schedule means less market penetration compared to NASCAR

Case 12 Lecture Notes

IndyCar: Seeking a Return to Motorsports’ Fast Lane

External Opportunities

• Increasing popularity of auto racing in the United States

External Threats

• Decreased interest in open-wheel racing in U.S.

• NASCAR dominates fans and sponsors in U.S.

Problem/Decision Statement

How should IndyCar proceed? Should it attempt to carve out a niche as a street and road course

racing league? Should it take NASCAR head-on in an attempt to gain market share?

Strategy Alternatives

1. IndyCar could differentiate itself through the variety of race courses that make up the

2. IndyCar could challenge Formula 1 for supremacy as a global auto-racing league. The

2012 IndyCar schedule plans races in four countries (although the race in China was

3. IndyCar could pursue a market expansion strategy within the United States, adding

events in cities in which it currently has no presence. With only 16 races on the current

Case 12 Lecture Notes

IndyCar: Seeking a Return to Motorsports’ Fast Lane

Students may also take a different perspective and look at the hard questions facing IndyCar’s

management:

1. What should be the mix of formats for future IndyCar races use (oval tracks, street/road

courses)?

2. Where should future IndyCar Series races be located (U.S. or foreign markets)?

3. Can IndyCar successfully differentiate its offering from the NASCAR and Formula 1? If

so, how?

4. How can IndyCar prove to potential sponsors that its events are valuable entities?

Strategy Recommendations

Students are likely to argue that IndyCar should try to reposition itself and make a run at

regaining relevance in the auto racing industry. Two avenues seem possible for these efforts:

focus on road courses (strategic alternative #1) or expansion into foreign markets (strategic

Implementation Issues

Ultimately, the main implementation hurdle will be generating quick success from which future

activities can be planned. IndyCar must convince sponsors that its events are worthwhile and

Teaching Questions

1. Identify the external factors that have impacted and continue to impact the IndyCar and

its marketing efforts. Which factors appear to be IndyCar’s greatest opportunities and

threats?

Students should realize that an internal split that formed the IRL is responsible for the

Case 12 Lecture Notes

IndyCar: Seeking a Return to Motorsports’ Fast Lane

2. What are IndyCar’s greatest strengths? Which weaknesses would you recommend

IndyCar attempt to convert into strengths? How might these weaknesses be converted?

3. What advantages does IndyCar possess over NASCAR? How should these advantages be

used by IndyCar to compete with NASCAR?

Students will argue that IndyCar possesses few advantages compared to NASCAR.

4. What can IndyCar learn from NASCAR’s success? Are there elements of NASCAR‘s

marketing strategy that IndyCar could adopt?

Student responses to this question will depend on their knowledge of NASCAR and its

marketing success. However, even novice students will recognize that NASCAR is a

5. What steps should IndyCar take to move beyond the death of Dan Wheldon and reassure

both fans and drivers about the safety of IndyCar racing?

IndyCar should probably follow NASCAR’s lead on this issue. After the tragic death of