Time Warner Vs The Walt Disney Co A Pulling The Plug Online Case Study Solution

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Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution & Analysis


Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help (National Association for Stock Cars And Truck Automobile Racing) is an organization performing series of Stock Vehicle racing in United States and acting as an approving body for driving the guidelines for Stock Automobile Racing. The organization was founded in 1947, by "Big Expense" France. NASCAR set up Stock Cars and truck Racing occasions in United States with the existence of about 130000 audiences typically in 2005. It likewise relayed its events in about 150 countries. Stock Automobile Racing by NASCAR is the second biggest spectator sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its income. The other sources of earnings for Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution consists of; 10% of the total profits from tv rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed corporate culture with the non-interventionist method. The structure of Automobile of Tomorrow by NASCAR, with an intent of safety for the drivers, brought different stress amongst the stakeholders of the sport.

The communication audit, conducted in 2010, exposed that regardless of the fact that the service extremely rely on the communications in between its stakeholders, there was no recognizable organisation communication technique. (

The audit explained numerous lacking of NASCAR in terms of lack of internal integration, absence of fan management method and lack of social and digital media of marketing. The business has intricate ecosystem with independent tracks, teams and motorists. This structure with closed business culture bring numerous difficulties in speeding up a change. Other partners in ecosystem consists of the media networks i.e. tv and radio, and business online marketers.

Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis audiences was extremely faithful to the sport and the brands related to the NASCAR, making it appealing for sponsors and business online marketers.

Issue Statement.

The company is currently facing the issue of decreasing rates of participation at racing tracks and rates of tv viewers. This can put a substantial influence on its revenues from sponsors, media rights, and from other sources of profits.

Situational Analysis.

Although the company was rather effective till 2005 with its standard marketing techniques, but not long after 2005 the business starts dealing with different issues including decline of its fan base. A number of external along with internal elements are accountable for the decline. Internal aspects consist of; insufficient financial investment in social media and other digital medias of.

Fan base of NASCAR made up of married males with an average age of 47, which passes their fandom to their youngsters and develop generational loyalty. Other challenges for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, and so on.

SWOT Analysis.


In SWOT analysis, strengths specified as business's qualities which are various from its rivals. These are business's core competencies on which business performance or company success based upon. Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution core competencies includes it has rights of determining guidelines as sanctioning body. Rules and guidelines concerning professional stock cars and truck racing are dictated by NASCAR like if any team with required abilities and resources can participate in races by following guidelines and policies determined by NASCAR. So NASCAR has monopoly it this element. Its strengths also includes that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to broadcast in more than 150 countries around the world with more than $56 million revenues. The main sources of their profits come from tv rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and corporate sponsors. All the occasions of NASCAR are sponsored by corporates due to the fact that of greatest brand name loyalty of fans towards brand names marketed by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution. (See Appendix A).

Weak points.

Weak Points in SWOT Analysis are considered as external aspects. Weaknesses includes the elements that stops company to carry out at needed level of efficiency. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist method. They usually used to form guidelines and other required procedures without intervention of others which leads to bad cooperation. For instance NASCAR develops Cars and truck of Tomorrow without cooperation so result is that chauffeurs did not like that concept. As this is racing sport so covering of sports by media is also challenging. It was also discovered that NASCAR had no efficient method for service interaction. They don't know how to handle issue if it occurred off track. Inadequate company communication leads to that they don't have clear direction for their long term goals. They don't know that where they want to see this sport in future.


NASCAR normally utilized to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR likewise came to understand from these standard media outlets that sport was difficult to cover. When sports fans were asked regarding popular celebrities and stars then NASCAR motorist was not discovered even in top twenty actions.


Economic down turn was experienced in late 2000 which can be hazard for NASCAR because if there is economic down turn then people would be having less return on investment. Economic down turn likewise results in increase fuel prices which also impacted NASCAR. Now if NASCAR make significant financial investments in brand-new sectors which are based on new customers then it may deal with negative remarks from its core fan base.

Porter's Five Forces Analysis

Porter's 5 forces is a design that is used to evaluate industry in which company is working. It assists in determining what are strengths and weakness of any particular industry. It suggest that every industry is various from one another. Since NASCAR's bottom line i.e. net profit is greatly depends on this, it is important to understand market in which business is working. There are 5 forces that are used to identify profitability, intensity and attractiveness of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help organisation.

Competitive Rivalry

These chauffeurs can go against NASCAR if they got much better chance in terms of rewards and television exposure. If audiences enjoy other race vehicles and chauffeurs more than NASCAR then viewers can move to those other fascinating cars and drivers. NASCAR might be having risk from its two direct competitors that is Formula 1 and Moto GP.

Provider Power

If business shifts from one provider to another, the provider power indicates the number of suppliers are offered in industry and what is the cost associated with provider. In this market there is supply monopoly due to the fact that motorists with needed skills and resources are limited.

Buyer Power

This force is regarding to consumers that is it simple for clients to move to other items. Then consumers are less likely to change, if there is more switching expense is associated. In the case of NASCAR customers are its viewers. Due to the fact that viewers will having low changing cost, viewers can switch to other rivals easily.

Risk of Substitution

Alternatives are referred as alternatives. The substitutes in this case can be other entertainment suggests like viewers can shift to other sports. There are wide range of replacements are readily available in this circumstance which suggests that threat of alternative is high.

Hazard of New Entry

In the case of NASCAR threat of new entry is low. They require to construct cars and trucks and racing tracks and also needs to pay hefty quantity to motorists for changing.

PESTEL Analysis


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


Economic aspects consists of tax rate, exchange rate, economic performance of that particular company, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can take advantage of abilities of workers to produce new chances and enhance existing opportunities.


Each has different social worths and standards. It assists in understanding relating to society and choice of customers.


Technology has impact on nearly every organisation. It includes innovation in organisation technique. In this case of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis it can be noted that business are greatly investing for research study and advancement. NASCAR ought to also deal with its media rights policy with Turner Broadcasting System.


Legal plays an essential role in every country due to the fact that every nation has various legal terms. Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help needs to be make certain that they safeguard their legal rights in every county so any company does not hurt to its legal rights.


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

7 P's of Marketing


The products of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).


Pricing technique of NASCAR for its race events tickets is based upon the venue and value of the racing occasions. Together with race events tickets, NASCAR also charge different service charge to its stakeholders and makes earnings. For instance it charged approving charges of $1-2 million per race usually in 2005.


Advertising technique of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution is highly based upon its fan base. A strong fan base share its fandom with others and increase the variety of viewers for NASCAR races. The business is not completely relied upon its fan base for its promotion and promote through local radio stations too. The business has likewise adopted the merchandising media of promo, in which the company sells products with its logo design.


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


Nestle people strategy is consisted of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial aspect of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution A marketing method as its events are the source of home entertainment for crowd. Its people strategy consists of efforts to supply much better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under individuals method of NASCAR.


A number of organisation procedures are needed to carry out racing events in an efficient way. These processes consist of; appropriate schedule of time, plan for spectators, selling tickets, plan of area for sponsors, handling logistics etc. These all processes contribute I constructing NASCAR image, enhancing spectators experience and increasing fan base.

Physical Proof.

Crucial physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and racing events. Together with it, its retailing brands including tee shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.

Item Life Cycle Assessment.

The racing events by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis was presented on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the first stage competition for NASCAR was low, as the competitors drove the cars comparable to the cars and trucks driven by normal people.


After conducting its first race successfully the company moved towards developing its own tracks. The very first Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help based track, namely the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards transmitting its races on tv in 1979. The first occasion transmitted on television was flag-to-flag coverage of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he changed NASCAR from a regional Sport popular company into one with worldwide fan base. He started a brand-new age of financially rewarding sponsorships and television agreements for NASCAR.


The maturity period for NASCAR started with the efforts of William France Jr., with the business having wide variety of earnings sources. The company has about 500 sponsors with broadcasting its events in about 150 nations. The company has a great deal of tracks in most of the cities of United States.


The major causes of decrease consist of the financial crisis of 2008, which increased the cost of showing up at tracks for viewers due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Division.

The marketplace segmentation of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Analysis is based upon the geographical presence of its tracks in numerous states and cities in United States, and the tv broadcasting of its events in various countries. 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 provides the company local along with global fan base.


The demographic division of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution is also highlydiverse based upon the gender, income and age of the customer. To increase the demographic sector of its market NASCAR should modify its marketing techniques to bring in more age groups and lower its costs to go into in the market section with a low average earnings.


The psychological qualities of the majority of the fans are rather similar. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races when in a week. 71% of them choose to purchase products with a NASCAR brand. They are quite extrovert and are willing to mingle with other fans while racing. They want quality racing with low rate at practical place. Although Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help has tried to increase the quality of its racing by presenting phase racing, they likewise have attempted to lower costs and make the event more convenient by presenting live racing.


Behavioural segmentation of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis is based upon the behaviour of fans in terms of watching the race reside on the television or by entering the occasions. Currently, the fans choice is towards viewing the race at home on tv instead of going, as the consumer experience at NASCAR tracks is not beneficial in addition to costly. This preference makes the rates for attendance lower than the rates for tv viewers. NASCAR has to alter the behaviour of its fan base by introducing qualitative services at its tracks.

Target Market.


Among the possible target market of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis was Hispanics; the young and growing population of United States. The marketplace segment has fantastic prospective for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The sector reveals affinity with car culture, but need a more concentrated marketing towards welcoming the sector towards racing.


Kids are likewise one of the possible target market segment for NASCAR, as they are more linked socially than other groups. Cars and truck racing video games established by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and enhancing its digital functions to bring in the kids target market.

This big expense makes the section potential for NASCAR marketing method of increasing its fan base. The market sector considers NASCAR as an organization doing not have in producing a multiculturalism environment. NASCAR needs to take various steps to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing assists in taking decisions relating to marketing.


It requires to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, environmental and legal and is specified above.


NASCAR is a car racing company with having USP of high quality automobile racing with a global structure. Its sector is sports group and occasions. Its target market is males in the age group of 15-60 years. Company has actually closed business culture and having non-interventionist approach.


Collaborations consists of distributors, providers and alliances of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis. It is collaborated with various racing teams which are participating in racing. It also worked together 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 deal. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot throughout race at track.


The customer of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution are its audiences. They target clients with having age of 15-60 years. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and create generational commitment.


Teams generally represents sponsors in NASCAR and the medium of advertising is drivers. These motorists can go versus NASCAR if they got much better chance in terms of prizes and tv exposure.

Marketing Techniques.

1. Maintaining and establishing Facebook Page.
One of the prospective target markets sections for NASCAR is Hispanics which is the growing population segment of USA but regrettably NASCAR had been unable to bring in the this targeted section. It should develop a Facebook page including the information relating to the races and the places of tracks to make the customer useful about the core operations of NASCAR.
2. Developing 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 Display). The significant factor behind it is that, the racers primarily play in groups and are not able to build a crucial account and keep a close contact with fans. The poor contacts with fans lead to less destination of audiences towards the racers and a low star power. Star power is an essential aspect for bring in audiences towards tracks and towards tv. The star power for the drivers at NASCARA could be enhanced by producing and updating accounts of crucial motorists by NASCARA itself. This would get rid of the requirement of requiring chauffeurs to maintain their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Developing New Games and improving present video games for kids.
Kids invested the majority of their time on playing video games and utilizing smart devices. Sadly, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less brought in towards the sport. In order to draw in these kids, NASCARA needs to enhance its existing racing video games by introducing customization in the vehicles i.e. altering colours, selection of speed, introducing group racing in the game, utilizing better graphics related to the racing tracks and introducing numerous levels in the video game. All these adjustments in the present video game would provide better experience to kids.
Together with it, NASCAR ought to likewise develop new games associated with racing like kids racing with kids characters as chauffeurs, cartoon racing with racing between various animation characters with an option of picking the preferred cartoon character for the kids. These strategies would make it possible for the business to bring in among its potential target sectors.
4. Presenting multiculturalism at occasions.
Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis occasions are consisted of fans with extremely few multiculturalism, due to cost of arrival in occasions, making it unsightly for the consumers viewing sport occasions as social occasions i.e. Generation Y consumers. As the Generation Y clients are a potential target audience for NASCAR, therefore the company must take specific measures to attract this possible target audience. It ought to adopt strategies to draw in the customers far from the tracks place with different culture. The method to do so could be supplying unique discount rates on tickets or free tickets to viewers originating from a specific range or from another state. It would increase multiculturalism of the fans and would make Generation Y clients more satisfied.
5. Improving Customer Experience at Tracks.
NASCAR should work on infrastructure and facilities at tracks due to the fact that on the race day audiences got dissatisfied. Viewers have lots of expectations from Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis because in exact same market other business are supplying much better services than NASCAR. IF NASCAR don't work on this problem then its fans might shifted to its rivals.
Marketing Spending plan.
Marketing spending plan made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, shows the expense associated information for the marketing methods. (See Appendix B). It can be seen that strategy 5 of improving customer experience at tracks would need highest initial financial investment and cost and method 4 of introducing multiculturalism will need lowest preliminary investment with least expensive further annually expense. The business needs to prioritize the resource allowance on these methods on the basis of its available resources and the prospective benefits which the method would provide.
NOTE: The values about cost are assumed on logical basis due the lack of realities and figures associated with cost in the case study. Inflation rate of United States is assumed to be 10%.


On the basis of deep analysis of the external and internal elements of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis triggering the decrease of tv viewership rate and participation rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long run. These techniques would handle internal factors like poor customer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., as well as with external aspects like moving of fans towards other sports, demographical modifications in America and changing domesticity styles.

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