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


NASCAR (National Association for Stock Vehicle Vehicle Racing) is an organization conducting series of Stock Car racing in United States and acting as an approving body for driving the guidelines for Stock Vehicle Racing. 2) Stock Car Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of earnings for Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution includes; 10% of the total revenue from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed corporate culture with the non-interventionist technique. However this non collective technique brings stress in the sport. The building of Automobile of Tomorrow by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help, with an intention of safety for the chauffeurs, brought numerous tensions amongst the stakeholders of the sport.
Executive Summary
The interaction audit, conducted in 2010, exposed that despite the reality that the business extremely count on the interactions in between its stakeholders, there was no identifiable business communication method. The market's target customers, instructions and objectives were all unknown.

The audit pointed out various doing not have of NASCAR in terms of absence of internal combination, lack of fan management method and lack of digital and social media of marketing.

Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution audiences was extremely faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and corporate marketers.

Issue Statement.

The company is currently dealing with the problem of declining rates of participation at racing tracks and rates of television viewers. This can put a significant effect on its profits from sponsors, media rights, and from other sources of income.

Situational Analysis.

Although the business was quite effective till 2005 with its standard marketing methods, however right after 2005 the business starts facing different issues consisting of decrease of its fan base. Numerous external along with internal elements are accountable for the decrease. Internal elements consist of; inadequate 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 children and develop generational loyalty. Other difficulties for NASCAR consists of the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc.

SWOT Analysis.


In SWOT analysis, strengths specified as company's qualities which are different from its rivals. These are company's core competencies on which company efficiency or business success based upon. Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help core competencies includes it has rights of dictating rules as sanctioning body. Guidelines and guidelines concerning professional stock cars and truck racing are determined by NASCAR like if any team with needed skills and resources can participate in races by following guidelines and regulations determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were used to broadcast in more than 150 countries worldwide with more than $56 million revenues. The primary sources of their profits come from television rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and corporate sponsors. All the events of NASCAR are sponsored by corporates since of biggest brand commitment of fans toward brands promoted by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help. (See Appendix A).


Weak Points in SWOT Analysis are considered as external aspects. Weaknesses includes the elements that stops business to perform at required level of performance. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist approach. They generally used to form guidelines and other needed procedures without intervention of others which leads to poor partnership. NASCAR develops Vehicle of Tomorrow without cooperation so result is that chauffeurs did not like that principle. As this is racing sport so covering of sports by media is also tough. It was likewise discovered that NASCAR had no efficient strategy for business interaction. They do not know how to deal with issue if it occurred off track. Inadequate company communication results in that they don't have clear instructions for their long term goals. They don't understand that where they want to see this sport in future.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external aspects which can be favourable to business or the external aspects on which business is having competitive advantage. NASCAR generally used to count on conventional media sources like regional newspaper for promotion of its sports. Usually these standard media sources try to cover their home group and particular kind of events. NASCAR also familiarized from these standard media outlets that sport was difficult to cover. Media landscape likewise altered from traditional to digital landscape. Papers went out of business. NASCAR can work on its abilities to get optimal possible gain from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in digital and social media to get its advantages. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR used to earn money check of around $15 million each year from Turner Sports. There are number of cons behind this deal. For instance Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help needed to get approval from Turner Sport if it wish to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot during race at track. Then they are required to pay licensing fees to Turner Sport, if media sources like papers, publications and cable television channels desire to post videos of races on their particular pages. NASCAR can work on terms and conditions and try to work out with Turner Sports to get maximum benefits of it. Star power plays very crucial function in generating earnings from every sport. However it was kept in mind that Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis is lagging in this area i.e. star power. When sports fans were asked concerning popular stars and stars then NASCAR chauffeur was not found even in leading twenty actions. NASCAR can put efforts in this location too for revenue generation. They ought to guide their motorists that how they can become sport stars. 4 tactical focuses which are produced by research study group can likewise be served as opportunity for NESCAR. These four strategic focuses compares and analysis Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help techniques.


Economic down turn was experienced in late 2000 which can be hazard for NASCAR due to the fact that if there is financial down turn then people would be having less return on financial investment. Economic down turn also results in increase fuel prices which also affected NASCAR. Now if NASCAR make considerable investments in new sections which are based on new consumers then it may face unfavorable comments from its core fan base.

Porter's Five Forces Analysis

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

Competitive Competition

These motorists can go versus NASCAR if they got much better opportunity in terms of prizes and television direct exposure. If viewers take pleasure in other race cars and trucks and drivers more than NASCAR then audiences can move to those other intriguing automobiles and chauffeurs. NASCAR could be having risk from its 2 direct competitors that is Solution 1 and Moto GP.
Swot Analysis
Provider Power

If company shifts from one supplier to another, the supplier power suggests the number of suppliers are offered in industry and what is the cost associated with provider. In this market there is supply monopoly since drivers with needed abilities and resources are restricted.

Buyer Power

In the case of NASCAR consumers are its audiences. Audiences can change to other competitors easily because viewers will having low switching expense.

Danger of Replacement

Substitutes are referred as alternatives. The replacements in this case can be other home entertainment indicates like audiences can shift to other sports. So there are wide variety of alternatives are offered in this situation which recommends that hazard of substitute is high.

Danger of New Entry

It is specified as how it is easy for any company to go into in that specific industry. When it comes to Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help danger of new entry is low. Because if any company requires to go into in this organisation than they have to make heavy financial investments. They need to develop vehicles and racing tracks and likewise requires to pay substantial total up to drivers for switching.

PESTEL Analysis


It can not be concluded from case study that there would be modification in resource allocations. NASCAR had actually got take advantage of lower tax policies which leads to increasing in earnings. So they made heavy investments in the research study and development. As NASCAR is working in different markets so it requires to deal with different guidelines. It is likewise noted that Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution has actually faced increased scrutiny regarding regulative. Every federal government has different top priority so NASCAR needs to be gotten ready for it as top priority can be shifted to other sector.


Financial elements includes taxation rate, currency exchange rate, financial performance of that specific business, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can utilize abilities of workers to produce new opportunities and improve existing opportunities.


Each has various social worths and norms. It assists in comprehending concerning society and preference of customers.


In this case of NASCAR it can be noted that business are heavily investing for research and advancement. NASCAR should also work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Due to the fact that every country has different legal terms and conditions, Legal plays an essential role in every nation. Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help requires to be ensure that they secure their legal rights in every county so any business does not damage to its legal rights.


Environmental aspects are likewise important for every single company. Since normally federal governments don't allow those organisation which can hurt to environment. These environmental aspects includes laws regarding pollution, climate modification, safe waste disposal, policies regarding insurance and so on. NASCAR needs to make sure that its automobiles are not generating pollution 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 product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to corporate online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


Rates technique of NASCAR for its race occasions tickets is based upon the location and significance of the racing events. In addition to race events tickets, NASCAR likewise charge various service charge to its stakeholders and earns revenue. It charged approving costs of $1-2 million per race on average in 2005.


Marketing technique of NASCAR 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.


NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in most of the cities in United States to grasp nationwide popularity.


Nestle individuals technique is consisted of providing better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial element of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis A marketing technique as its occasions are the source of home entertainment for crowd. Its people technique consists of efforts to offer much better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under people technique of NASCAR.


Numerous service processes are required to conduct racing events in an efficient method. These processes consist of; correct schedule of time, plan for viewers, selling tickets, plan of space for sponsors, managing logistics etc. These all processes contribute I building NASCAR image, improving spectators experience and increasing fan base.

Physical Proof.

Essential physical proofs for the NASCAR includes the existence of its racing tracks, stock cars and trucks and racing events. In addition to it, its retailing brands consisting of tee shirts, caps, goodies and so on, also function as a physical evidence for NASCAR.

Item Life Cycle Assessment.

The racing occasions by NASCAR was introduced on June 19, 1949. At the first phase competitors for NASCAR was low, as the rivals drove the automobiles comparable to the vehicles driven by ordinary individuals.


After performing its very first race effectively the company moved towards developing its own tracks. The first Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards transmitting its races on television in 1979. The first event broadcasted on tv was flag-to-flag coverage of Daytona.

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


The maturity period for NASCAR began with the efforts of William France Jr., with the business having vast array of income sources. The business has about 500 sponsors with transmitting its occasions in about 150 countries. The company has large number of tracks in most of the cities of United States.


The decrease in the company's offerings started after 2005 with average attendance rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The major causes of decline consist of the monetary crisis of 2008, which increased the expense of reaching tracks for viewers due to increasing fuel costs, and the moving of its fan base towards other sports.

Market Division.

The marketplace division of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Help is based upon the geographical existence of its tracks in numerous states and cities in United States, and the tv broadcasting of its events in various nations. 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 huge geographical segmentation provides the company regional as well as worldwide fan base.


The demographic segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly consisted of male married fans with a typical age of 47 years and an income around $30-50 thousands. However currently NASCAR is attempting to increase its target market to the young growing population and kinds as well. To increase the group segment of its market NASCAR must revise its marketing methods to attract more age groups and lower its prices to enter in the marketplace sector with a low average earnings.( htt1).


NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to purchase tickets and see the races once in a week. NASCAR has actually tried to increase the quality of its racing by introducing phase racing, they also have attempted to lower costs and make the occasion more hassle-free by introducing live racing.


Behavioural division of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis is based upon the behaviour of fans in regards to watching the race reside on the television or by entering the events. Currently, the fans choice is towards seeing the race in the house on tv rather than going, as the customer experience at NASCAR tracks is not favourable along with expensive. This choice makes the rates for presence lower than the rates for television viewers. NASCAR needs to change the behaviour of its fan base by presenting qualitative services at its tracks.

Target audience.


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


Kids are also among the possible target audience sector for NASCAR, as they are more connected socially than other groups. Producing fan base among kids can provide a possible boost in the variety of fans for racing due to their connectivity. Kids invest the majority of their times in using mobile phones and playing computer game. Car racing games established by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis can be a possible source of acquiring attention of kids towards NASCAR track racing. However, NASCAR's digital functions connected to kids are not efficient in getting the attention. NASCAR needs more attention towards tailoring and enhancing its digital functions to draw in the kids target audience.

Generation Y.
Generation Y target market consists of those who invested five times more resources on discretionary expenses i.e. acquiring tickets for racing occasions, than others. This substantial expenditure makes the sector potential for NASCAR marketing strategy of increasing its fan base. The marketplace sector is likewise simple to approach as 81% of the Y Generation customer uses Facebook the usage and every day is two times of using tv and radio. The market sector views sports as an affair, instead of adherence to sport. The market sector thinks about NASCAR as an organization doing not have in producing a multiculturalism environment. Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help ought to take different steps to enhance the experience of Generation Y customers in its occasions.

5 C's of Marketing

5 C's of marketing helps in taking choices regarding marketing.


It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE means political, financial, social, technical, environmental and legal and is stated above.


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


Collaborations consists of suppliers, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.


The customer of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help are its viewers. 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 produce generational commitment.


Groups generally represents sponsors in NASCAR and the medium of marketing is drivers. These chauffeurs can go against NASCAR if they got much better chance in terms of prizes and tv exposure.

Marketing Methods.

1. Preserving and developing Facebook Page.
One of the potential target markets sections for NASCAR is Hispanics which is the growing population segment of USA however sadly NASCAR had actually been not able to attract the this targeted sector. It must establish a Facebook page containing the details concerning the races and the areas of tracks to make the customer helpful about the core operations of NASCAR.
2. Developing and Updating Accounts of Key Drivers.
Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis drivers has a low star power as compare to gamers of other sports. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is a crucial element for bring in viewers towards tracks and towards tv.
3. Developing New Games and improving current video games for kids.
Kids invested the majority of their time on playing games and utilizing mobile phones. Unfortunately, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less brought in towards the sport. In order to draw in these kids, NASCARA must improve its existing racing video games by introducing modification in the cars i.e. changing colours, selection of speed, introducing group racing in the video game, using much better graphics associated with the racing tracks and introducing different levels in the game. All these modifications in the present game would offer better experience to kids.
In addition to it, NASCAR ought to likewise construct brand-new games related to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing between different cartoon characters with an option of selecting the favourite animation character for the kids. These strategies would allow the business to draw in one of its potential target segments.
4. Introducing multiculturalism at events.
Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis events are comprised of fans with really few multiculturalism, due to cost of arrival in events, making it unappealing for the clients viewing sport events as social occasions i.e. Generation Y customers. As the Generation Y clients are a potential target audience for NASCAR, for that reason the business should take certain steps to attract this prospective target audience. It needs to embrace strategies to attract the consumers far from the tracks place with different culture. The strategy to do so could be supplying unique discounts on tickets or totally free tickets to viewers coming from a specific distance or from another state. It would increase cultural diversity of the fans and would make Generation Y customers more pleased.
5. Improving Customer Experience at Tracks.
Due to the fact that on the race day audiences got dissatisfied, NASCAR should work on infrastructure and facilities at tracks. Since in very same market other companies are providing much better services than NASCAR, viewers have lots of expectations from Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help. Then its fans might shifted to its rivals, if NASCAR don't work on this concern. According to fans there were not adequate centers were readily available as compare to other sports providers. So NASCAR should ensure that it provide adequate facilities that includes cleaned up toilets, comfy seating arrangement. They need to also supply WIFI services and ease of access of charge card throughout that track. It must be also ensure that there suffice jumbo turns put at all needed locations. There ought to be also food stalls that offer quality food to audiences. In this way audiences will be having enjoyable experience at the day of occasion. (See Appendix B).

Marketing Budget

Marketing spending plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, shows the expense associated information for the marketing techniques. (See Appendix B). It can be seen that method 5 of enhancing consumer experience at tracks would need greatest preliminary investment and cost and technique 4 of introducing multiculturalism will require most affordable initial financial investment with least expensive even more annually cost. The company needs to prioritize the resource allotment on these strategies on the basis of its offered resources and the potential advantages which the strategy would offer.
NOTE: The values about expense are presumed on logical basis due the lack of facts and figures associated with cost in the event study. Inflation rate of United States is assumed to be 10%.

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