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Time Warner Vs The Walt Disney Co B Reaching Agreement Online Case Study Solution

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Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution and Analysis


Introduction

NASCAR (National Association for Stock Car Car Racing) is an organization conducting series of Stock Automobile racing in United States and acting as an approving body for driving the rules for Stock Car Racing. 2) Stock Automobile Racing by NASCAR is the 2nd largest spectator sport, with greatest number of sponsors. 1) The other sources of profits for Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis includes; 10% of the total revenue from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.

NASCAR has a closed business culture with the non-interventionist method. This non collaborative method brings stress in the sport. The structure of Vehicle of Tomorrow by Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution, with an intent of security for the chauffeurs, brought various stress among the stakeholders of the sport.

The communication audit, carried out in 2010, exposed that in spite of the reality that the business highly count on the communications in between its stakeholders, there was no identifiable organisation interaction strategy. The industry's target customers, instructions and objectives were all unknown.

The audit pointed out different doing not have of NASCAR in regards to absence of internal combination, lack of fan management technique and absence of social and digital media of marketing. The business has intricate ecosystem with independent tracks, teams and motorists. This structure with closed corporate culture bring various challenges in speeding up a change. Other partners in community includes the media networks i.e. tv and radio, and corporate online marketers.

Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis viewers was highly faithful to the sport and the brand names related to the NASCAR, making it appealing for sponsors and business 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 substantial impact on its incomes from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

Although the business was quite effective till 2005 with its conventional marketing methods, but not long after 2005 the company starts dealing with numerous issues consisting of decrease of its fan base. Several external along with internal elements are responsible for the decrease. Internal elements consist of; inadequate investment in social media and other digital medias of.

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. The family system in America was changing resulting in reduction of impact of married male fan base over their children. Together with it understandings about cars and truck was likewise changing with viewing car a vehicle to reach at point B from point A, instead of as a fun project. Other obstacles for Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution includes 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. These all obstacles were tending the business to revise its marketing methods.

SWOT Analysis.

Strengths.


In SWOT analysis, strengths specified as business's qualities which are various from its rivals. These are business's core competencies on which business 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 policies concerning expert stock vehicle racing are determined by NASCAR like if any team with needed skills and resources can enter into races by following rules and guidelines determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second biggest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to broadcast in more than 150 nations worldwide with more than $56 million revenues. The main sources of their earnings originate from tv rights, sanctioning charges, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and corporate sponsors. All the events of NASCAR are sponsored by corporates since of greatest brand commitment of fans toward brands marketed by Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help. (See Appendix A).

Weaknesses.

Weak Points in SWOT Analysis are considered as external aspects. Weak points includes the aspects that stops business to perform at required level of efficiency. Weak points of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They normally used to form guidelines and other needed processes without intervention of others which results in poor collaboration. For example NASCAR develops Automobile of Tomorrow without collaboration so result is that chauffeurs did not like that concept. As this is racing sport so covering of sports by media is also hard. It was likewise found that NASCAR had no reliable strategy for company interaction. If it occurred off track, they do not know how to deal with issue. Ineffective business interaction leads to that they do not have clear direction for their long term objectives. They don't know that where they want to see this sport in future.

Opportunities.

Opportunities in SWOT analysis are external aspects which can be beneficial to business or the external aspects on which company is having competitive advantage. NASCAR usually utilized to rely on standard media sources like regional paper for promotion of its sports. Normally these traditional media sources try to cover their home team and certain kind of events. NASCAR also came to know from these standard media outlets that sport was hard to cover. Media landscape also changed from standard to digital landscape. Newspapers went out of business. NASCAR can deal with its capabilities 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 benefits. Digital rights of NASCAR were also offered to Turner Sports. NASCAR utilized to get pay check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. 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 every single video which is shoot during race at track. Then they are needed to pay licensing costs to Turner Sport, if media sources like newspapers, magazines and cable channels desire to post videos of races on their respective pages. NASCAR can work on terms and conditions and attempt to work out with Turner Sports to get maximum advantages of it. Star power plays extremely essential role in creating earnings from every sport. It was noted that NASCAR is lagging in this area i.e. star power. When sports fans were asked concerning popular stars and stars then NASCAR driver was not discovered even in leading twenty actions. NASCAR can put efforts in this area too for profits generation. They ought to assist their drivers that how they can end up being sport stars. 4 strategic focuses which are generated by research team can likewise be acted as chance for NESCAR. These four strategic focuses compares and analysis Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution strategies.

Hazards

Economic down turn was experienced in late 2000 which can be hazard for NASCAR because if there is financial down turn then individuals would be having less return on financial investment. Economic down turn also results in increase fuel rates which also affected NASCAR. Now if NASCAR make significant financial investments in new sections which are based on brand-new consumers then it might deal with unfavorable remarks from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a design that is utilized to analyse market in which business is working. It helps in determining what are strengths and weak point of any particular market. It recommend that every industry is different from one another. It is very important to comprehend market in which company is working due to the fact that NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are utilized to recognize profitability, intensity and attractiveness of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis business.

Competitive Competition

These motorists can go versus NASCAR if they got much better chance in terms of rewards and television exposure. If audiences delight in other race cars and trucks and chauffeurs more than NASCAR then viewers can shift to those other interesting cars and trucks and motorists. NASCAR might be having risk from its 2 direct rivals that is Solution 1 and Moto GP.

Supplier Power

The supplier power suggests the variety of suppliers are readily available in industry and what is the expense connected with supplier if business shifts from one supplier to another. Since motorists with needed skills and resources are restricted, in this market there is supply monopoly.

Buyer Power

This force is regarding to consumers that is it simple for customers to shift to other products. If there is more switching cost is associated then clients are less most likely to change. When it comes to NASCAR clients are its audiences. Due to the fact that audiences will having low changing cost, audiences can switch to other competitors easily.

Risk of Substitution

Substitutes are referred as alternatives. The replacements in this case can be other entertainment indicates like viewers can move to other sports. There are large variety of alternatives are offered in this situation which recommends that threat of substitute is high.

Risk of New Entry

In the case of NASCAR danger of new entry is low. They need to construct automobiles and racing tracks and also requires to pay hefty quantity to chauffeurs for switching.

PESTEL Analysis

Political


As NASCAR is working in numerous markets so it requires to deal with different guidelines. It is also noted that NASCAR has dealt with increased analysis concerning regulative. Every government has various concern so NASCAR has to be prepared for it as concern can be moved to other sector.

Economical

Economic aspects includes tax rate, exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its rivals can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can leverage abilities of staff members to produce brand-new opportunities and enhance existing opportunities.

Social

Every society is different from each other. Each has various social values and standards. It helps in understanding regarding society and preference of clients. Social elements consists of customs, culture, attitudes towards particular product and services, demographics, standards, interests etc. It can be concluded that marketing through other ways instead of standard (i.e. newspaper) can be chosen in this society.

Technical

In this case of NASCAR it can be kept in mind that companies are greatly investing for research study and development. NASCAR must also work on its media rights policy with Turner Broadcasting System.

Legal

Since every country has various legal terms and conditions, Legal plays a crucial role in every nation. Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution needs to be make sure that they protect their legal rights in every county so any company does not harm to its legal rights.

Environmental

Ecological aspects are also essential for every service. Due to the fact that normally federal governments do not permit those organisation which can hurt to environment. These environmental aspects includes laws concerning contamination, environment modification, safe garbage disposal, policies concerning insurance coverage and so on. NASCAR needs to make certain that its cars and trucks are not producing contamination more than acceptable level.

7 P's of Marketing

Product

The products of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).

Price.

Pricing strategy of NASCAR for its race events tickets is based upon the location and importance of the racing occasions. Along with race occasions tickets, NASCAR also charge various service charge to its stakeholders and makes profits. It charged approving fees of $1-2 million per race on average in 2005.

Promotion.

Marketing technique of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.

Place.

NASCAR have its racing tracks in different cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to understand across the country appeal.

Individuals.

Nestle people strategy is comprised of supplying better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important aspect of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help A marketing strategy as its occasions are the source of entertainment for crowd. Its people strategy includes efforts to provide much better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under people technique of NASCAR.

Procedures.

Several business processes are needed to carry out racing occasions in an effective way. These processes include; proper schedule of time, plan for viewers, offering tickets, arrangement of space for sponsors, managing logistics and so on. These all processes contribute I developing NASCAR image, improving spectators experience and increasing fan base.

Physical Proof.

Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock cars and racing occasions. In addition to it, its merchandising brands including tee shirts, caps, goodies etc., also serve as a physical proof for NASCAR.

Item Life Process Evaluation.

The racing occasions by Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis was presented on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first phase competitors for NASCAR was low, as the rivals drove the automobiles comparable to the cars driven by common individuals.

Development.

The very first NASCAR based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards transmitting its races on television in 1979.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he transformed NASCAR from a local Sport popular company into one with international fan base. He started a new period of profitable sponsorships and television contracts for NASCAR.

Maturity.

The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide variety of earnings sources. The business 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.

Decrease.

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

Market Segmentation.

The marketplace division of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Solution can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographic.

The geographical division of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Solution is based upon the geographical existence of its tracks in various states and cities in United States, and the tv broadcasting of its events in different countries. The business has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical segmentation supplies the company local along with worldwide fan base.

Demographic.

The demographic division of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its existing fan base is majorly consisted of male married fans with an average age of 47 years and an income around $30-50 thousands. However presently NASCAR is attempting to increase its target audience to the young growing population and kinds as well. To increase the group segment of its market NASCAR should modify its marketing techniques to bring in more age and lower its costs to go into in the market section with a low typical earnings.( htt1).

Psychographic.

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

Behavioural.

Behavioural segmentation of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help is based upon the behaviour of fans in regards to seeing the race live on the tv or by going in the occasions. Presently, the fans choice is towards watching the race in your home on television instead of going, as the consumer experience at NASCAR tracks is not beneficial along with expensive. This choice makes the rates for attendance lower than the rates for television viewers. NASCAR has to alter the behaviour of its fan base by presenting qualitative services at its tracks.

Target audience.

Hispanics.

Among the prospective target audience of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help was Hispanics; the young and growing population of United States. The marketplace section has terrific possible for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The section reveals affinity with automobile culture, but require a more focused marketing towards welcoming the section towards racing.

Kids.

Kids are likewise one of the potential target market section for NASCAR, as they are more connected socially than other groups. Car racing video games developed by Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help can be a possible source of getting attention of kids towards NASCAR track racing. NASCAR needs more attention towards tailoring and enhancing its digital features to bring in the kids target market.

This substantial expenditure makes the segment potential for NASCAR marketing method of increasing its fan base. The market sector thinks about NASCAR as an organization doing not have in developing a multiculturalism environment. NASCAR should take numerous actions to improve the experience of Generation Y consumers in its events.

5 C's of Marketing

5 C's of marketing helps in taking decisions relating to marketing. These 5 C's needs to be analysed effectively for taking any marketing decision. These 5 C's stands for Environment, Company, Collaborators, Rivals and clients.

Climate/Context.

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

Company.

Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis is a car racing business with having USP of high quality auto racing with an international structure. Its sector is sports team and events.

Collaborations.

Collaborations includes distributors, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million every year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.

Consumers.

The consumer of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis 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 develop generational commitment.

Competitors.

Teams generally represents sponsors in NASCAR and the medium of marketing is drivers. These chauffeurs can go versus NASCAR if they got better opportunity in terms of rewards and tv exposure.

Marketing Methods.

1. Maintaining and developing Facebook Page.
Among the potential target audience sections for NASCAR is Hispanics which is the growing population segment of USA however sadly NASCAR had been not able to attract the this targeted sector. In order to attract the young growing generation the NASCAR must market by utilizing social networks like Facebook. It should establish a Facebook page containing the info concerning the races and the locations of tracks to make the customer useful about the core operations of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help. It must likewise update its Facebook page on day-to-day basis to supply details about its upcoming events. This would make the target market sector more helpful about business and would lead to attracting large fans base.
2. Developing and Updating 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 bad contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is an essential aspect for bring in audiences towards tracks and towards television.
3. Developing New Games and enhancing existing video games for kids.
In order to draw in these kids, NASCARA needs to improve its present racing video games by presenting customization in the cars and trucks i.e. altering colours, selection of speed, presenting group racing in the video game, using better graphics related to the racing tracks and introducing numerous levels in the video game. All these modifications in the current game would provide better experience to kids.
Along with it, NASCAR needs to also develop brand-new games related to racing like kids racing with kids characters as motorists, cartoon racing with racing between different animation characters with an option of selecting the preferred animation character for the kids. These strategies would allow the business to draw in among its possible target segments.
4. Presenting multiculturalism at occasions.
Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis events are comprised of fans with extremely couple of cultural diversity, due to cost of arrival in occasions, making it unsightly for the consumers viewing sport events as affairs i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, for that reason the business needs to take specific procedures to attract this possible target audience. It ought to adopt methods to draw in the consumers far from the tracks place with various culture. The strategy to do so might be providing special discount rates on tickets or complimentary tickets to audiences coming from a specific distance or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more pleased.
5. Improving Consumer Experience at Tracks.
NASCAR must work on facilities and facilities at tracks because on the race day audiences got dissatisfied. Audiences have numerous expectations from Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Help because in same industry other business are supplying better services than NASCAR. IF NASCAR do not work on this concern then its fans may shifted to its rivals.
Marketing Budget.
Marketing budget plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the expense associated data for the marketing methods. It can be seen that technique 5 of enhancing customer experience at tracks would require greatest preliminary financial investment and cost and method 4 of introducing multiculturalism will require lowest initial financial investment with lowest even more per year expense.
NOTE: The values about cost are assumed on reasonable basis due the absence of figures and realities connected to cost in the case study. Inflation rate of United States is assumed to be 10%.

Recommendations.

On the basis of deep analysis of the internal and external factors of Time Warner Vs The Walt Disney Co B Reaching Agreement Case Study Analysis causing the decline of tv viewership rate and attendance rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long term. These strategies would handle internal elements like bad customer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, in addition to with external factors like moving of fans towards other sports, demographical modifications in America and changing domesticity styles.

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