Pricing strategy for ‘Formula One India Racing Event’ for Retail Customers
Table of Contents
1.Marketing Research Objective:3
3.Mode of survey5
1. Marketing Research Objective
What should be optimal price for different classes of tickets at ‘Formula One India Racing Event’ for Retail Customers? 1. Introduction
Formula One is the highest class of single seated auto racing authorized by the Fédération Internationale de l'Automobile (FIA). The F1 season consists of a series of races, known as Grand’s Prix held on purpose-built circuits and public roads. The results of each race are combined to determine two annual World Championships, one for the drivers and one for the constructors. The sport is a massive television event and each race is watched by over 600 million people around world. Europe is Formula One's traditional centre, where all of the teams are based, and where around half of the races take place. However, the sport's scope has expanded significantly in recent years and Formula one event are being organized in several Asian countries including China, Turkey, Singapore, South Korea. More recently, Indian Grand prix has been announced. The first Indian Grand Prix’s race will be held at the Jaypee International Race Circuit in Greater Noida on October 30, 2011. The 5.14 km clockwise track, coming up as part of an approximate 360-acre complex is being built at a cost of around Rs 1600 Crores. The main grandstand on the start-finish straight will have seating capacity of 30,000, while temporary grandstands will accommodate another 60,000. The general seating will be variable to a max capacity of 30,000 and the paddock-club can accommodate up to 5000. Justification for the Research:
We believe that there are 3 classes of Formula 1 Spectators in India i.e. Corporate, High Net worth Individuals (HNI’s) and Retail customers (General public). Traditionally, a Formula 1 event hosts about 150,000 spectators over two days and has been an expensive sport to watch with tickets prices ranging from Euro 200 to 20,000. Corporate and HNIs may have deep pockets to buy expensive F1 tickets. But India being a developing country, the spending power of Retail customers’ is limited. Thus, there is a need to explore optimal ticket pricing for retail customers which will ensure maximum participation and further popularize the sports in India. We have also taken into account the fact that races in China, Bahrain and Istanbul have failed to generate enough spectator interest among retail customers due to various issues including inappropriate ticket prices. Hence, we believe that there is a need to carry out a Marketing Research survey for finding the optimal prices for different classes of tickets for Retail customers. Marketing Research Design:
F1 events are new to India and tickets (product) are being sold for first time in Indian Market. Moreover, the information about ticket prices, customer’s willingness to pay and other market insights are not available. Therefore, an exploratory research design, based on small samples, is needed to start understanding the problem and gain insights. This exploratory research should be followed by a descriptive research.
2. Mode of survey
Mode of survey methods for the formula-1 race tickets:
We have administered the survey questionnaires in three major modes of surveying: Personal Interviewing, Electronic Interviewing, and Telephonic Interviewing. Personal Interviewing: There can be several modes to conduct the personal interviews a) Mall Intercept interviewing: In this survey technique respondents are intercepted while they are shopping in the mall and brought to the kiosks specifically set up for this purpose. Its major advantage is that it is more efficient for the respondent to come to the interviewer than for the interviewer to go the respondent. Malls are...