Case 1 Essay examples

2084 Words Feb 18th, 2015 9 Pages
Case 1: The Springfield Nor’easters:
Maximizing Revenues in the Minor Leagues

Q1. Review the case details Exhibit 5 “Survey Questionnaire and Response Distributions” and Exhibit 6 “Buckingham’s pricing matrix worksheet.” Complete filling in the pricing matrix worksheet for Exhibit 6 as taking the role of Larry Buckingham.

The Table 1 illustrates Larry Buckingham’s price matrix.
Table 1: Larry Buckingham’s price matrix
Ticket Type
$ Per Ticket

2
4
6
8
10
12
14
Single Ticket
0%
2%
5%
13%
31%
27%
22%
5-game Ticket
1%
2%
3%
19%
36%
34%
5%
20-game Ticket
1%
7%
23%
28%
25%
15%
1%
38-game Ticket
18%
26%
20%
14%
11%
10%
1%

Q2. Given the survey’s results, design a
…show more content…
Hence, the weighted average dollars spent on concessions is $8.55. Another constrain is Buckingham must receive a no less than 39% profit margin from the concessions operation. Next, the identification of total concessions revenue is to use the actual number of people will attend a certain match, also take the example of the price segment $8, 5,550 audience will actual go, times the weighted average concessions expenditure ($8.555), and multiples the 39% profit margin, so the revenue from concessions is $92,591 for the price level $10.

The last stage is to sum the revenue from ticket sales and concessions ($321,469), which is the total revenue if you set the 5-game ticket at $8. In Exhibit 4, the bat chart directly demonstrates the different revenue based on different price segment. The optimal price for 5-game ticket should be set at $8, which could bring the largest revenue compared with other price segments.

The same logic could also be applied to other ticket types. So, again, our bleacher seat price scheme is (10% more grandstand seat): One-game Ticket: $10 per game
5-game Ticket: $8 per game (package ticker price $40)
20-game Ticket: $6 per game (package ticker price $120)
38-game Ticket: $4 per game (package ticker price $152)
2. Revenue Analysis

Because Larry Buckingham is going to determine the pricing scheme for the Springfield Nor’easters’ first season, so the priority for him is

More about Case 1 Essay examples

Open Document