# The Springfield Nor’easters Harvard Case Solution & Analysis

KEY RESEARCH AND FINDING

After analyzing the complete results of the research based survey as tabulated in exhibit 1, the following trends related to the customers pricing and product have been found.

It is found that if the tickets are sold for a price less than \$4, then the people will readily agree to buy the tickets. There is a possibility that all tickets will be sold with respect to all ticketing streams i.e. single ticket, 5-game ticket, 20 game half season, 38 game full season. The results depicts that if the tickets are priced at \$4, then the people will readily accept to buy all single tickets offered, but they will resist to some extent while buying 38-game season tickets as well as demand of other ticketing streams will also diminish slightly.

There will be a considerable decrease in the demand for tickets 38 game season if the tickets are offered at \$6. Moreover, if the tickets are offered at \$8, then the demand of 38th game season will fall from 50% to 36%. However, the other streams will have a negligible effect on their demand due to increase in price to \$6 and \$8. Also, further increase in price will decrease the demand of all ticketing streams.

The research survey shows that 38% of all the population are baseball fans, amounting to 21028 town fans. The research based survey also shows that 2% of the population would by 38g session, 5% of the population would by 20 games ticket, 11% of the population would by 5games tickets and 21% of the population would by single game ticket, if minor league is played in the town. Moreover, 61% of the population would not be interested in buying any of the ticket.

Furthermore, research survey also shows that the total amount of people interested in buying tickets are 11621 but the survey results depicts that only 22% of the interested people would actually go to see match. Therefore, the actual people who are going is calculated as

Total people interested                          11621

% of people who will actually go         22%

No. of people who will attend the match = (11621*.2) = 2557

TICKET SALES

Furthermore, the optimal price selection has also been done in Exhibit 1. In order to calculate the optimal price, it is assumed that the demand for all tickets remains the same. The demand of all tickets is assumed to be 1000. Then the demand is multiplied with the price and their respective probability as depicted by the results of survey. For e.g. the revenue of single ticket at \$4 is calculated as follows

1000*4*100%=\$4000

Upon analyzing the calculations done in exhibit 1, the optimal price depicted is as follows.

Single ticket          \$10

5 game ticket\$8

20 game half ticket\$6

38 game season.\$4

Moreover, in Exhibit 2 total revenue has also been calculated. The estimated sales of tickets have been calculated and estimated by analyzing the results of research based survey. The estimated sales of tickets are then multiplied by the optimal prices. The total revenue calculated amounted to \$636200.

CONCESSION SALES

In exhibit 3, revenue from concession sales hasbeen calculated. The statistics have been taken from the case related to % spent and the amount of spending. The total amount is then multiplied with the total number of seats for the season and with the percentage of desired profit.

The total number of seats has been calculated as follows.

Single ticket           8700

5 game ticket        22500

20 game half ticket   40000

38 game seasons.        32300

TOTAL                          103500

Revenue from concession sales amounted to 986317.937

BREAKEVEN

Breakeven has been calculated in the Exhibit 4, fixed costs have been calculated as follows

Total fixed expenses                        \$1,961,379

Players’ salaries                                 (887,000)

Bats and balls                            (22,500)

Financial support from colleges        (21,000)

Actual Fixed costs                                  \$1,097,879

Break even volume for the season amounted to 178608. The company has sold its tickets lower than the break even volume. In order to ensure breakeven, the company should strive to make effective strategies to sell more units.

EXCESS CAPACITY

Excess capacity has been calculated in Exhibit 5. The excess capacity amounted to 1032 seats per game. The company should offer low prices for the 38 game season and 20 game half season in order to grab more customers to buy tickets. Moreover, the company should also do excessive marketing of their team in order to increase the sales of the company. Furthermore, the company could also distribute sports T-shirts or caps duly autographed by a well-known team player as a gift hamper along with the tickets................

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