Saturday, October 17, 2009

IndyCar Mission Refocus

I appreciate the following admonishment from Osca, a frequent and valued contributor.
"Roggespierre--please don’t lose focus..."
Thank you, Osca. We shall press on in search of a Mission for IndyCar racing.

Citizen John has proposed one that is worthy of our attention.
Mission Statement:
IndyCar exists to provide a superior auto racing product for the avid and casual fan alike that is compelling, entertaining and fun to watch. IndyCar is committed to making every interaction a fan has with IndyCar an exciting, enjoyable and memorable experience.
I notice the following core components.
  • Market Segmentation: avid fan vs. casual fan
  • Customer Focus: compelling, entertaining, fun to watch
  • Reciprocal relationship between buyer and seller: exciting, enjoyable, memorable experience
Recall that our Mission Statement should indicate both why and for whom IndyCar shall exist. For guidance, we would do well to refer to our Vision Statement.

Vision Statement:
IndyCar shall be the clear number-one choice among auto racing consumers in the United States. At its core is the Indianapolis 500, an iconic American institution that shall transcend the sport of racing and be a worldwide automotive celebration.
In my opinion, Citizen John's proposal effectively addresses the goal of becoming "the clear number-one choice among auto racing consumers in the United States," insofar as it focuses on customers first.

Both Citizen John and BC have addressed the issue of psychological benefit to customers. Specifically, the pursuit of speed records has historically been a major selling point of the Indianapolis 500. Physical limitations being what they are, IndyCar is unlikely to have that particular inherent advantage going forward.

Therefore, I ask the following question. Was it really speed records that so intrigued Indy 500 fans? Maybe, but maybe not.

Might it have been the parallel notions of progress and human achievement that really drove the intrigue? These are powerful forces in the history of American Thought.

I would suggest that speed records were much more than mere thrill shows; they were a source of pride because they seemed to confirm what so many postwar Americans were inclined to believe was good and right.

Our Mission Statement should speak to the base passions, prejudices and values of "auto racing consumers in the United States." We should value innovation because it not only appeals to customers' passions, but also because it might enable the 500 to "transcend the sport of racing and be a worldwide automotive celebration."

Innovation can mean more than just spending money to go faster.

Thoughts?

Roggespierre

46 comments:

  1. Those who don't heed history are condemned to repeating it. One of the "as if" principles that needs heeding is that this is a business venture with a balance sheet and a limited return on even basic investment. And that pool of money isn't expected to grow in upcoming years.

    ReplyDelete
  2. Mission Statement:
    IndyCar exists to provide… Or,

    The IndyCar National Championship exists to provide a superior auto racing product for the avid and casual fan alike that is compelling, entertaining and fun to watch.


    Does 'National' help? I think most Americans link National with their/our nation.

    With 'championship' I'm hoping to convey a sense of purpose, point of culmination or zenith that 'series' lacks. In my mind the word series conveys the idea of something going on and on with no climax. I have a similar issue with 'league,' it brings to mind a bowling league that lacks do or die intensity.

    -John

    ReplyDelete
  3. John,

    I like "championship" better than "series", too.

    I do have a question, however.

    Why the tip of the cap to the casual fan? I am very skeptical about that particular market. It was very large when there were three television channels and few choices for consumers. Those days are gone and they are not coming back.

    IndyCar needs to have more consumers who actively seek out the product, IMO.

    How wise would it be to create a product for those who can either take it or leave it?

    I'm not intending to argue here. Rather, I think that you're getting at something and that I am not understanding.

    Rocketman53,

    I think you know that I am very concerned about the financial constraints. We most definitely will take them into account.

    But that does not mean there should be no change, no goal.

    Best,

    Roggespierre

    ReplyDelete
  4. Roggespierre,

    Typically, a casual fan is defined as one who watches at least one event per year and an avid fan one who watches on average one event per month. I'd classify the millions who watch the 500 but don't watch any other race as a casual fan. So I think the distinction matters at some point in the process, but I'll leave it to you if it's relative for the mission statement.

    -John

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  5. Ok, here are some phrases whose sentiments I feel could potentially be represented in some capacity by the mission statement. I think that it would be good to have some sort of language that would distinguish IndyCar's "superior racing product" from, say, NASCAR's.

    "To uphold and build upon the longstanding traditions of world-class racing and motorsports innovation associated with the Indianapolis 500."

    "To deliver a uniquely American open-wheel* racing product that captures the imagination of both committed Indy racing fans and auto racing fans in general. ('casual' fans, perhaps?)"

    "To encourage and expand the portion of American youth motorsports participants whose ultimate aim is to race in the IndyCar series.#"

    Anything doing in phrases like this?


    *I know some here do not like the term "open-wheel". Any other succinct descriptive term that works better?

    # ["...compete for the National Drivers' Championship"] Yep, I agree that that sounds more significant.


    Here's the NBA's mission statement. There might be something to glean from this, but of course they don't have to go to the trouble of defining "basketball"!


    John,

    Do you think it would be fair to say that the casual fan is much easier to court and 'nurture' when the avid fan is generally enthusiastic about the product? I will admit that I have not deeply studied data on this topic. But intuitively, it seems that when the house is messy and the kids are fighting it is much more difficult to entertain friends than when the house is clean and the whole family is smiling.

    ReplyDelete
  6. Physical limitations being what they are, IndyCar is unlikely to have that particular inherent advantage going forward.

    Alright, so we do not include "the pursuit of speed" as an inherent part of IndyCar at the level of mission statement (though I hope we still allow for its possibility as a natural offshoot of innovation). I will not belabor it, then.


    Might it have been the parallel notions of progress and human achievement that really drove the intrigue? These are powerful forces in the history of American Thought.


    I agree. But the raw speed number is an extremely universal and powerful way to measure "progress" and "achievement". It will be difficult to capture a mass audience's imagination with some other indicator of innovation. Anyway. A challenge for the marketing department, later on.

    ReplyDelete
  7. Roggespierre:

    I think we could rephrase the line:' "To deliver a uniquely American open wheel" racing product...' to read: "To deliver an unigue open-wheel product that is distinctly American and captures the imgination....'

    The reason I think the re-phrasing should be made is that AOWR includes, sprints, midgets, supermodifieds, WOO, Karts, FV etc. This rephrasing emphasizes that the Indy 500 is an unigue event that happens to be American in it's history and tradition.

    ReplyDelete
  8. PS: Insert "racing" into the re-phrased line.

    ReplyDelete
  9. To "Virtual Balboa":

    Something virtually unprecedented happened this morning. You received a comment posted on your blogging blog.

    I realize that you may have not read it yet, simce apparently no one else stops by there either. It occurred to me that yours was the best format in which to respond to your cheap shots, since you took them here under the realization that they would not be rebutted here.

    So maybe you have not read my comment yet. Or maybe you don't have the grapes to post it, since there is some filtering process in place before submissions are made public.

    You really should consider posting it. Even if such a move is counterintuitive to your ethics, it will likely double your existing popularity.
    ___________________________________________
    Andrew Bernstein

    ReplyDelete
  10. Your comment there would actually be far more impressive if posted here, what with its refutations that Indycar need not refocus what it should be striving for and instead merely considering how to put cars on the grid and whatnot. Maybe instead of posting those opinions to a blog I haven't updated in weeks, you should instead post those opinions here rather than pretend that you have come from the mount to speak to the lower castes, followed by voicing your displeasure with their refusal to agree, and announcing your 3rd/4th departure. I would consider that more conducive to active discussion than your current tact, which I'm not personally interested in continuing past this.

    ReplyDelete
  11. "John,
    Do you think it would be fair to say that the casual fan is much easier to court and 'nurture' when the avid fan is generally enthusiastic about the product?"



    I would think so, BC. The thing that concerns me about the avid fan is, from the studies I've seen, something like 75% of avid sport's fans developed interest in the particular sport during childhood. If that's our target market (developed interest in auto racing during childhood), are we sure it's large enough?

    I'll cede that at one time that target market was large enough but in the present moment I'm not so sure. Back in the 80's when the auto racing product first became widely distributed through television, I'm fairly confident the bulk of viewership came from people who had attended races, developed an interest in the sport, then started watching when it became available on television. I've seen very little indication that the old model is successful in today's age (the attendees are not converting to viewers) and the process may need be inverted and started with television.

    -John

    ReplyDelete
  12. Back in the 80's when the auto racing product first became widely distributed through television, I'm fairly confident the bulk of viewership came from people who had attended races, developed an interest in the sport, then started watching when it became available on television.

    Given the regionalism of NASCAR and Indycar, I seriously question as to whether or not this was the case. After all, the majority lived in the same population centers as they do now. The difference, I feel, is that CART (and the IRL) picked specific targets to appeal to and NASCAR adopted something closer to a Blue Ocean strategy. The end results were, in effect, very telling as to which was the better call.

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  13. To "Virtual Balboa"

    Just what I expected. Dogg.

    ReplyDelete
  14. I should also note that the number of TVs tuned in compared to the sort of seating numbers present at many of these tracks is a major factor in my feelings about that as well. Far, far too many TVs and nowhere near enough seats at major venues. Compare that to major team sports where most pro football or baseballe venues haven't seen a need to increase seating capacity in years (the Boston Red Sox being perhaps alone in that).

    ReplyDelete
  15. VirtualBalboa said...
    "Given the regionalism of NASCAR and Indycar, I seriously question as to whether or not this was the case. After all, the majority lived in the same population centers as they do now."

    VB,

    I'm not suggesting the early CART television viewers attended only CART races. Just that the bulk of early viewers had attended some sort of local auto racing events, developing an interest in the sport prior to widespread television distribution.

    -John

    ReplyDelete
  16. No, I understand that. I still don't see it as likely however outside the strongholds of the midwest, southeast, and west coast where open wheel, NASCAR, and drag racing were respective institutions. TV reaches a far larger prospective audience than all the short tracks in America can in a single night, and the existence of races on network TV prior to the cable era only drives that home for me. The growth of CART and of NASCAR to new markets was first fueled by people watching the races on TV and then looking for the events to come to them.

    As evidence of that fact, I suggest looking at the contraction of not only USAC, but of short tracks (pavement and dirt) over the last 25 years in comparison to continued expansion of sports like indoor football, minor league baseball, et al, and predates the current recession.

    ReplyDelete
  17. I think John's analysis of the fan base in the 80s seems solid. It only makes sense that by the time TV started becoming a major force there was already a solid, enthusiastic fan base that was big enough to sustain the series through on-site participation alone.

    And today, the rules are different because world-class racing series are generally much more dependent on sponsorship generated by media exposure than by ticket sales. Right?


    "If that's our target market (developed interest in auto racing during childhood), are we sure it's large enough?"

    John,
    What about the former avid fans who at some point had relatively deep interest in IndyCar but dropped out sometime between 1996 and now? Do you think this is a market worth tapping in to?

    In other words, those who "would be" avid fans - those who could be effectively courted by an IndyCar product as compelling as the one they remember watching: where are they now?

    ReplyDelete
  18. VB,

    I'm claiming, circa 1975, an overwhelming majority of avid auto racing fans developed interest in the sport through attendance. You seem to be saying that within half a generation (ca. 1985), the majority of avid fans then in existence developed interest in the sport through television. If so, I'd disagree. However, I'd say over the last 25 years the majority of 'new' avid fans developed their interest through television.
    -John

    ReplyDelete
  19. Back to the mission statement...

    The more I think about it, the more it seems that a concise (2-3 sentence) mission statement should be some kind of combination of these two sentiments:

    1. "To serve the fans" (and most likely some kind of qualifying language for "fans", "serve" or both)

    2. "To honor and build upon the heritage of American championship automobile racing*, manifested most powerfully in the annual running of the Indianapolis 500." (and perhaps some specific values like "innovation" that go along with this)



    *again, searching for a term to describe what this darn sport has historically "been." Open-wheel? Indy-style racing? Indy car racing? The big cars? (Ha, maybe not this...)

    ReplyDelete
  20. BC,

    For years it was called "Champ Car Racing", so if we all can put the split (CART/IRL) behind us, doesn't that define what this series should be all about?

    osca

    ReplyDelete
  21. I'm claiming, circa 1975, an overwhelming majority of avid auto racing fans developed interest in the sport through attendance. You seem to be saying that within half a generation (ca. 1985), the majority of avid fans then in existence developed interest in the sport through television. If so, I'd disagree.

    I'd say from about 1979-1985, a large number of fans of automobile racing were probably being generated by TV. Prior to that, full races were not televised and I'd agree that you're likely correct. NASCAR, of course, embraced TV very early both on cable and broadcast, and as shouldn't be a big surprise in retrospect, got a large head start.

    That whole period is one of great change in racing; you see the introduction of major corporate sponsorships along with expanded TV coverage. Sometimes revolution takes a long time, and sometimes it seems to be almost instantaneous.

    ReplyDelete
  22. Guys,

    I like these discussions. New customer conversion is essential. Understanding how different sports have succeeded in doing it is a very relevant exercise.

    It also makes sense to talk about this when considering our Mission Statement. We want this series to be the "clear number-one choice" among auto racing consumers in the U.S.

    The Mission Statement is about identifying those Big Picture levers that might enable us to do the job.

    I plan to move some of the comments to the top later today. There is much to consider. This will take some time.

    Then again, this is the off season, after all.

    Thanks and Regards,

    Roggespierre

    ReplyDelete
  23. For years it was called "Champ Car Racing", so if we all can put the split (CART/IRL) behind us, doesn't that define what this series should be all about?

    Osca,
    I agree. I mean, I like the sound of "championship automobile" vs. "champ car". But since we're supposed to be forward-thinking here, I suppose it wouldn't do to shy away from either one of those terms only on the basis of connoting CART or CCWS.

    ReplyDelete
  24. Gentlemen: Because of the split, I agree that "Chanp Car" should be avoided. Realistically, I think we are stuck with the term "IndyCar" Don't attach "series" to it. We can name the series later.

    ReplyDelete
  25. I would agree with not using anything from the other side of the split to designate our specific product.

    I don't agree with avoiding "Championship Automobile Racing" as a broad term in a mission statement to refer to the 100-year-old history of Indy-style racing that our product inherits. I think this properly acknowledges the whole of the pre-split past without "choosing sides" - it doesn't look like we're trying to erase the memory of the split by directed language, and it doesn't look like we're endorsing a CART-like ideal.

    Just my opinion. We all probably feel differently when reading "championship automobile" or "champ car". Question is, would these terms used in the broadest sense resonate in any meaningful way, good or bad, with the target market(s) we (eventually) agree on?

    ReplyDelete
  26. First, I'd like to make a general comment. As I understand the purpose of this endeavor, it is to collaborate on the development a mission statement. So many of the comments debate opinions about the state of the sport or just communicate what someone knows or who they had an audience with. We could process with far greater efficiency if we focus instead of playing on the periphery.

    To the point, I must stress that the mission statement should never employ the terms "open wheel" or "champ car." These are terms that do not invest in a unique brand, the summation of which should be labeled, "IndyCar." Using a variety of names serves only to confuse and do not leverage the equity of the Indianapolis 500.

    I like John's original mission statement. With respect to the point about speed records vs. human progress, I would like to amend John's initial submission with reference to a purpose that speaks to the values of the sport and contributions of a grand scale: "leadership in testing automotive solutions for 21st century needs."

    The automobile industry is at a pivotal point in its history and like the Indy 500, must transform to survive. Relevance to this market discontinuity is essential to the survival of our sport. If Carl Fisher were around today he would be all over this one. The Indy 500 can play a leadership role in shaping the future of 21st century transportation solutions.

    ReplyDelete
  27. Here are some of my thoughts about levers and what will draw fans to our series. All I have to draw on is my own experiences, so here goes...

    As a child the first car I really remember was the Johnny Lightning Special. It wasn't Al Unser, it was Johnny Lightning. The toy tie-in was an instant winner for me and I think the brand name still exists. If you are looking to make future fans out of young boys and girls then this type of marketing lever is essential.

    I personally think that speed was a very large lever for Indy Car Racing in the past. When the 150 and 200 mph barriers were broken there was a lot of mainstream press stories and that drew in more casual fans. Arguably the Indy 500 was at its most popular during the years that the 200 mph barrier was being crossed.
    As far as using speed as a lever in the future, the next real eye-catching barrier is 250 mph and the dangers involved are numerous. But what a story...

    -ianindy

    ReplyDelete
  28. Tom,

    Good points. As to "contributions of a grand scale," Roggespierre mentioned something about an "intel inside" model for IndyCar that may dovetail with your ideas.

    I really like anchoring IndyCar with 'automotive' in general and automotive innovation in particular and, "leadership in testing automotive solutions for 21st century needs," drives home the point .

    I don't know if I'm getting too far off track, but conceptually here's what I'm thinking:

    Indianapolis 500
    A worldwide automotive celebration

    IndyCar
    Capturing the spirit of automotive innovation

    IndyCar Championship
    The number-one choice among auto racing enthusiasts

    -John

    ReplyDelete
  29. What would A. J. Foyt (circa age 60) do? What would Mario Andretti or Dan Gurney (circa age 60) do? See Dan Gurney's 1978 white paper on Indycar racing. Building good cars, focusing on good attendance (above tv), and good leaders, starting in the 70s, produced success in the 80s thru 96. Openwheel racing back in the early 70s was in a similar hard place, their were only 11 races in the 1971 season.

    ReplyDelete
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