The Springfield Nor Easters Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The constraints on and the resources available to the organization in solving the problem;

The problem that the Nor’easters are facing is that pricing for tickets have to be set in such a way, which would lead to maximum attendance for the company. In addition, as the revenue from the ticket is not sufficient; therefore, to cover total expenses of the company the people will have to show up for the concessions and merchandise to be sold as that comprises of about half of the revenue of the company. The resource available to counter this problem is Buckingham, the marketing manager of Nor’easters. He has to set up surveys so that he will be able to construct the analysis in order to reach he correct price.

How many people would actually show up at the stadium is another concern for the company as this figure cannot be estimated to the exact figure that will act as a constrain for the company. In addition, resource available for it is the survey that was conducted by Buckingham; this would lead to a possible estimate of the figure of people that would come to the stadium.

The third most important constraint is what if people just do not want to come? People of Springfield desire entertainment, which they can achieve cheaply by watching a movie at home or by going to a cinema or by just trying arm at the bowling alley. As a result, the resource that the company holds to overcome this dilemma is the fact that Nor’easters tickets has to be cheap and easy transportation can be made available but most importantly the management has to make sure that matches are full of entertainment because they are not just selling baseball anymore as they are actually selling entertainment.

Analysis and evaluation:

Using the data available in the survey, an effect pricing system has been developed as to what would be the most favorable price to be charged to the public regarding the tickets they would be buying, which is for one game, for 5 games, for half the season and for the full season. The pricing has been done considering the facts that are provided for the prices, which people are willing to pay.

PRICING FOR A SINGLE GAME
PRICING FOR A SINGLE GAME
$ on concessions spent per game	$	4	8	13
% who buy concessions		11%	45%	36%

% who show up	21%
# of games	1
People interested in going	11621
Price	$	4	6	8	10	12	14
People who would actually go		2%	5%	13%	31%	27%	22%
Revenue from Tickets	$	$930	$3,486	$12,086	$36,025	$37,652	$35,793

Revenue from Concess @ $4	$	102	256	665	1,585	1,381	1,125
Revenue from Concess @ $8	$	837	2,092	5,439	12,969	11,296	9,204
Revenue from Concess @ $13	$	1,088	2,719	7,070	16,860	14,684	11,965

Total Revenues @ $4 Con	$	1,032	3,742	12,751	37,610	39,033	36,918
Total Revenues @ $8 Con	$	1,766	5,578	17,524	48,994	48,948	44,996
Total Revenues @ $13 Con	$	2,017	6,206	19,156	52,885	52,336	47,758

The most favorable price to be set for a single game is $14with price for the concession being $8.

PRICING FOR 5 GAME PACKAGE
PRICING FOR 5 GAME PACKAGE
		5 G ame Optimal Pricing
$ on concessions spent per game	$	4	8	13
% who buy concessions		11%	45%	36%

% who show up
% who show up		11%
# of games		5
People interested in going		6087.2
Price per ticket	$	14	12	10	8	6	4
People who would actually go		2%	3%	19%	36%	34%	5%
Revenue from Tickets	$	$1,704	$2,191	$11,566	$17,531	$12,418	$1,217

Revenue from Concess @ $4	$	54	80	509	964	911	134
Revenue from Concess @ $8	$	438	657	4,164	7,889	7,451	1,096
Revenue from Concess @ $13	$	570	855	5,413	10,256	9,686	1,424

Total Revenues @ $4 Con	$	1,758	2,272	12,075	18,495	13,328	1,351
Total Revenues @ $8 Con	$	2,143	2,849	15,729	25,420	19,869	2,313
Total Revenues @ $13 Con	$	2,274	3,046	16,978	27,787	22,104	2,642