The Spring Filed Nor’easters: Maximizing Revenue in Minor League Harvard Case Solution & Analysis

The Spring Filed Nor’easters: Maximizing Revenue in Minor League Case Solution

Introduction:

The nor'easter is the Class A of minor league baseball team located in Massachusetts. This is the only professional baseball team, and other is ice hockey team in the Springfield. Larry Buckingham, the director of marketing, started his research in 2005 by using the League Sports Association and surveyed that the family and the children are more likely to attend the sports events. The case also discusses the 73% of the total audiences in the baseball games have the average median income in the range of $22,500 to $ 75,000; the information was collected from the findings of local newspapers. The director was not satisfied by the three-year survey from newspaper hence, he decided to go forth in the market to make key research survey in order to make the proper business decision such as to set price etc. His main task is to set the prices of the tickets for maximizing the revenues and at least get a break even that covers the costs of 1.76 million in minor league program.

It is very important for a market survey to answer the research questions such as how many people will come in Nor'easter and how much it will ticket cost. For this purpose, he called some marketing directors to discuss the similar issues of research. They also had the same idea to conduct the survey design. He was sure that it will definitely increase the information yield regarding management decisions and would help to shed light in deciding the tradeoff between the ticket price and concession sales.

In order to make a decision based on the pricing and the optimal pricing plan, but the management received a very low response rate, and the company made a little statistic credibility. Once the positive responses are recorded, it be would be easy for the management to make pricing policies, if the responses show net profit after paying expenses both variable and fixed, then the company would be successful in selling its tickets for the next season. It is the right time to design the logo and make public awareness campaign of the nor’easters in order to have the chance of selling tickets.

Problem Statement:

Basically, Nor' Easter is new small town minor baseball league team, the problem that the company is facing is that the owner wants to bring the enough revenue from the ticket prices in order to cover the operating and fixed expense. Moreover, the company is trying to reach the break even in its first year but the city of Springfield is practicing the job losses, and so there is drop in the entry of average income residents. The marketing director must design the price plan as the residents would attract at the minor league games more than the college games.

Therefore, the primary problem lies in setting up the price for the individual games as well as for the seasonal ticket prices, which is reasonable to attract the price-sensitive customers. If the prices would be too high, then the customers will go only to play games only and will not spend the additional amount on merchandising and foods and as a result, it would not able to bring needed revenue to the team. In addition,if the prices are too low, then the company would not be able to cover its operating and fixed expenses.................

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