Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution & Analysis
Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis (National Association for Stock Cars And Truck Automobile Racing) is an organization carrying out series of Stock Cars and truck racing in United States and functioning as an approving body for driving the guidelines for Stock Vehicle Racing. The company was founded in 1947, by "Big Costs" France. NASCAR organize Stock Automobile Racing events in United States with the presence of about 130000 viewers on average in 2005. It also broadcast its occasions in about 150 nations. 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 revenue. The other sources of profits for Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis consists of; 10% of the overall earnings from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed corporate culture with the non-interventionist approach. The structure of Automobile of Tomorrow by NASCAR, with an objective of safety for the drivers, brought different tensions amongst the stakeholders of the sport.
The interaction audit, carried out in 2010, exposed that despite the truth that the business highly count on the interactions between its stakeholders, there was no identifiable company communication technique. The industry's target clients, direction and objectives were all unknown.
The audit pointed out various doing not have of NASCAR in terms of absence of internal integration, lack of fan management strategy and absence of digital and social media of marketing.
Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution audiences was highly loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business marketers.
The business is presently dealing with the issue of declining rates of attendance at racing tracks and rates of tv audiences. This can put a considerable influence on its incomes from sponsors, media rights, and from other sources of income.
Although the company was rather successful till 2005 with its traditional marketing techniques, but soon after 2005 the business starts dealing with different issues including decline of its fan base. A number of external as well as internal factors are accountable for the decline. Internal factors include; insufficient investment in social networks 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 create generational loyalty. Other obstacles for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on.
In SWOT analysis, strengths defined as company's qualities which are different from its competitors. These are company's core proficiencies on which company efficiency or company success based on. Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution core competencies includes it has rights of dictating guidelines as sanctioning body. Guidelines and guidelines regarding professional stock automobile racing are dictated by NASCAR like if any team with required skills and resources can participate in races by following rules and guidelines determined by NASCAR. NASCAR has monopoly it this element. Its strengths also 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 all over the world with more than $56 million revenues. The primary sources of their earnings come from television rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and corporate sponsors. Due to the fact that of most significant brand commitment of fans towards brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses of NASCAR includes its close culture which is non collaborative. Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help establishes Automobile of Tomorrow without cooperation so result is that chauffeurs did not like that idea. It was also discovered that NASCAR had no effective method for organisation communication.
NASCAR usually used to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR also came to understand from these conventional media outlets that sport was challenging to cover. When sports fans were asked regarding popular stars and stars then NASCAR chauffeur was not discovered even in leading twenty responses.
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 likewise results in increase fuel rates which likewise affected NASCAR. Now if NASCAR make significant investments in brand-new sectors which are based on brand-new clients then it may face negative comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is utilized to analyse industry in which business is working. It helps in identifying what are strengths and weak point of any particular market. It recommend that every industry is various from one another. It is necessary to comprehend industry in which company is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to recognize profitability, strength and beauty of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help organisation.
These drivers can go versus NASCAR if they got better chance in terms of prizes and television exposure. If viewers enjoy other race vehicles and drivers more than NASCAR then viewers can shift to those other intriguing vehicles and motorists. NASCAR might be having threat from its two direct competitors that is Solution 1 and Moto GP.
The supplier power shows the variety of suppliers are offered in industry and what is the expense related to supplier if company shifts from one supplier to another. In this market there is supply monopoly since motorists with required abilities and resources are limited.
In the case of NASCAR clients are its audiences. Viewers can change to other rivals easily due to the fact that viewers will having low switching cost.
Threat of Substitution
Replacements are referred as options. The alternatives in this case can be other entertainment implies like audiences can move to other sports. So there are wide variety of substitutes are readily available in this situation which recommends that danger of replacement is high.
Risk of New Entry
It is defined as how it is simple for any company to enter in that particular market. When it comes to Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help risk of new entry is low. Due to the fact that if any business needs to go into in this company than they need to make heavy financial investments. They require to build cars and trucks and racing tracks and also requires to pay substantial amount to chauffeurs for changing.
As NASCAR is working in different markets so it requires to deal with various policies. It is likewise noted that NASCAR has actually dealt with increased scrutiny relating to regulative. Every government has different top priority so NASCAR has actually to be prepared for it as priority can be shifted to other sector.
Economic factors consists of tax rate, currency exchange rate, financial performance of that specific company, 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 rivals can be impacted. NASCAR can utilize capabilities of workers to develop brand-new chances and enhance existing chances.
Each has different social values and norms. It helps in comprehending concerning society and choice of clients.
In this case of NASCAR it can be kept in mind that companies are greatly investing for research study and advancement. NASCAR should also work on its media rights policy with Turner Broadcasting System.
Legal plays an important role in every nation since every nation has various legal terms and conditions. Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help requires to be make certain 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 service. Due to the fact that typically governments do not allow those company which can damage to environment. These environmental factors includes laws relating to pollution, environment modification, safe waste disposal, policies concerning insurance coverage etc. NASCAR needs to make certain that its cars are not creating contamination more than acceptable level.
7 P's of Marketing
The items of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Prices strategy 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 various service charge to its stakeholders and makes earnings. For example it charged sanctioning charges of $1-2 million per race on average in 2005.
Marketing strategy of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution 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 business is not totally relied upon its fan base for its promo and promote through regional radio stations too. The business has likewise adopted the retailing media of promotion, in which the company sells merchandises with its logo.
NASCAR have its racing tracks in numerous cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile 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 nationwide appeal.
Nestle people technique is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an essential element of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution A marketing strategy as its events are the source of entertainment for crowd. Its individuals method includes efforts to supply much better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under people technique of NASCAR.
A number of company procedures are needed to perform racing occasions in an effective way. These procedures include; appropriate schedule of time, plan for spectators, selling tickets, plan of space for sponsors, handling logistics and so on. These all processes contribute I developing NASCAR image, improving spectators experience and increasing fan base.
Essential physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and racing events. Along with it, its retailing brands consisting of tee shirts, caps, goodies etc., likewise function as a physical proof for NASCAR.
Product Life Process Evaluation.
The racing occasions by NASCAR was presented on June 19, 1949. At the first phase competitors for NASCAR was low, as the rivals drove the automobiles similar to the vehicles driven by common individuals.
After performing its first race successfully the company moved towards building its own tracks. The very first Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis based track, specifically 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 broadcasting its races on television in 1979. The first event broadcasted on television was flag-to-flag protection of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular company into one with global fan base. He started a brand-new period of financially rewarding sponsorships and tv agreements for NASCAR.
The maturity duration for NASCAR started with the efforts of William France Jr., with the business having large range of earnings sources. The business has about 500 sponsors with relaying its events in about 150 nations. The company has large number of tracks in most of the cities of United States.
The decrease in the business's offerings began after 2005 with average participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The major causes of decrease include the monetary crisis of 2008, which increased the expense of getting to tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.
The market segmentation of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Solution is based upon the geographical presence of its tracks in various states and cities in United States, and the tv broadcasting of its occasions in different countries. The business 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 large geographical segmentation provides the business local along with global fan base.
The group segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its existing fan base is majorly comprised of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Nevertheless presently NASCAR is trying to increase its target market to the young growing population and kinds also. To increase the demographic section of its market NASCAR ought to revise its marketing methods to attract more age groups and lower its costs to enter in the marketplace sector with a low average earnings.( htt1).
The psychological attributes of most of the fans are quite comparable. NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to acquire tickets and see the races once in a week. 71% of them choose to acquire products with a NASCAR brand name. They are rather extrovert and want to join other fans while racing. They want quality racing with low cost at practical location. NASCAR has actually attempted to increase the quality of its racing by introducing phase racing, they also have tried to lower costs and make the occasion more practical by presenting live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the television or by going in the events. Currently, the fans choice is towards viewing the race at home on tv rather than going, as the consumer experience at NASCAR tracks is not favourable as well as expensive.
One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has terrific possible for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are also one of the prospective target market segment for NASCAR, as they are more linked socially than other groups. Car racing video games developed by Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and improving its digital functions to attract the kids target market.
Generation Y target audience consists of those who invested 5 times more resources on discretionary expenses i.e. buying tickets for racing occasions, than others. This huge expenditure makes the sector potential for NASCAR marketing method of increasing its fan base. The marketplace sector is also simple to method as 81% of the Y Generation consumer uses Facebook every day and the use is twice of using television and radio. The market sector views sports as a social occasion, rather than adherence to sport. The marketplace section thinks about NASCAR as an organization doing not have in creating a multiculturalism atmosphere. Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help needs to take numerous steps to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions concerning marketing. These 5 C's needs to be evaluated effectively for taking any marketing choice. These 5 C's stands for Environment, Company, Collaborators, Customers and Competitors.
It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE means political, economic, social, technical, legal and environmental and is mentioned above.
NASCAR is an auto racing company with having USP of high quality car racing with an international structure. Its sector is sports group and events. Its target audience is males in the age of 15-60 years. Business has actually closed corporate culture and having non-interventionist technique.
Collaborations consists of distributors, providers and alliances of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help. It is collaborated with various racing groups which are taking part in racing. It likewise worked together with Turners Sport for digital rights. NASCAR used to make money check of around $15 million annually from Turner Sports. There are number of cons behind this offer. For example NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot throughout race at track.
The client of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution are its viewers. 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 produce generational loyalty.
The direct competitors of NASCAR are Formula 1 and Moto GP. Teams generally represents sponsors in NASCAR and the medium of advertising is chauffeurs. Therefore it can be stated that motorists and race automobiles are rivals. These chauffeurs can go against Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help if they improved chance in terms of rewards and television direct exposure.
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. however unfortunately NASCAR had actually been unable to draw in the this targeted segment. It should develop a Facebook page containing the details regarding the races and the places of tracks to make the customer informative about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Secret Drivers.
Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis motorists has a low star power as compare to players of other sports. The poor contacts with fans result in less destination of audiences towards the racers and a low star power. Star power is a crucial factor for attracting audiences towards tracks and towards tv.
3. Developing New Games and enhancing existing video games for kids.
Kids spent the majority of their time on playing games and utilizing smartphones. Unfortunately, kids playing NASCARA have a worst experience of playing its games. As a result, they are less attracted towards the sport. In order to attract these kids, NASCARA needs to improve its existing racing games by presenting personalization in the cars and trucks 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 numerous levels in the game. All these modifications in the present video game would supply better experience to kids.
In addition to it, NASCAR ought to likewise construct new video games related to racing like kids racing with kids characters as chauffeurs, animation racing with racing between different cartoon characters with a choice of picking the favourite cartoon character for the kids. These methods would allow the business to draw in among its potential target sectors.
4. Introducing multiculturalism at events.
NASCAR events are made up of fans with extremely few cultural diversity, due to expense of arrival in events, making it unattractive for the consumers perceiving sport events as social events i.e. Generation Y customers. As the Generation Y consumers are a potential target market for NASCAR, therefore the business must take specific measures to attract this prospective target market.
5. Improving Consumer Experience at Tracks.
Because on the race day audiences got dissatisfied, NASCAR must work on facilities and features at tracks. Viewers have lots of expectations from NASCAR due to the fact that in same market other companies are offering better services than NASCAR. IF NASCAR don't work on this concern then its fans might moved to its rivals. According to fans there were not sufficient facilities were offered as compare to other sports suppliers. So NASCAR needs to make certain that it supply sufficient centers that includes cleaned restrooms, comfortable seating arrangement. They should also provide WIFI services and ease of access of credit cards throughout that track. It ought to be likewise make certain that there are enough jumbo turns positioned at all needed places. There must be likewise food stalls that offer quality food to audiences. In this method audiences will be having pleasant experience at the day of occasion. (See Appendix B).
Marketing Spending plan
Marketing budget made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the expense related data for the marketing strategies. It can be seen that strategy 5 of enhancing consumer experience at tracks would need greatest initial investment and cost and strategy 4 of presenting multiculturalism will need most affordable initial investment with lowest even more per year cost.
KEEP IN MIND: The values about cost are presumed on logical basis due the absence of truths and figures connected to 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 B Reaching Agreement Case Study Help triggering the decline of television viewership rate and presence rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long run. These methods would cope with internal aspects like bad client experience at tracks, inadequate social networks marketing, incapable digital medias like 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 designs.