AMBA650-The Springfield Nor'easters Case Analysis.
The city of Springfield, Massachusetts were blessed with the basing of a baseball minor league franchise in their city. But the class A team is faced with great revenue generation challenges that will make or mar the organization. The new team might likely take advantage of the fact that closest sports franchised teams are all located 90 miles away from Springfield. This might create a ticket and concession boom for the team and other benefits like employment and taxes for the city. The city has a considerable moderate family income and a recent growth index in the healthcare, financial, and other small and medium enterprise sectors is an advantage to the team's marketing and pricing strategies. The process of designing and implementing an effective and strategic pricing structure needs a deep understanding and knowledge of the consumer psychology and a successful pattern of setting, adapting and changing prices (Kotler & Keller, 2009). As a center to develop upcoming younger players, the franchise owner has an objective of making money from his baseball operations in the city. By having a successful financial breakthrough, the team will be able to finance itself and grow in a sustainable form to be competitive and profitable. The main task of this analysis is to present the best possible marketing and pricing strategies that will enable the baseball team make profit. As this organization struggles to with the pricing decisions, they embarked upon a survey to obtain an optimal pricing that will be based on the market response and reactions. Respondents will give them a helpful insight about the marketplace and possible consumer behaviors. Unfortunately, low number of respondents and inaccurate data posed another challenge. The Strategic Issues, Problems, And Other Factors Nor'easters Need To Consider Before Price Establishment. Demand considerations is critical to pricing tickets for a base price. To begin with, management needed to build a demand for ticket sales based on extensive research. This will entail asking how many fans and non-fans would buy the teams ticket at a certain price. This exercise need to be done for various prices. Also, this survey or research could be done by doing a survey among the target tickets market. The best option, especially for a large business organizations like the Nor’easter is to employ the services of a marketing firm to carry-out the research for them. It is an imperative factor that companies must set a pricing structure when they are offering new products or services ( Kotler & Keller, 2009). The demand price elasticity is an important factor to consider it simply states that consumers will play a role in determining how responsive to price the demand for the product is. Accurate figures can be obtained by research and mathematical calculations through simple steps. Under this situation you ask the effect of slight change in prices. If prices are offered at discount rates, then, price is increased then demand will expected to fall significantly as a result of that action. If luxuries goods are been sold, then demand will not respond that much to changes in price. The higher we see demand elasticity grow, the greater the growth volume will be as a result of possible 1% price reduction. When Nor'easters ticket demand goes elastic, that might warrant price-cutting to boost sales, especially cost of tickets productions and operating cost have not gone up in a disproportionate manner. Factor Number 3 that must be considered is cost. Cost here will include the cost of all borrowed capitals that have been invested in the business. Another cost to be considered will be operating cost. Every organization need to consider cost of their products or services are crucial. The issue is that a lot of small and medium business owners and managers have many times failed to...
Please join StudyMode to read the full document