GROUP NO.

10
Aakansha Kar, Ananya Jain, Anjali Priya, Manas Mohan, Sreyoshi Roy

Springfield Nor’easters case

Case Summary:
The date is currently January 19, 2008. Springfield Nor’easter is a new Minor League
baseball team in Springfield, Massachusetts. Larry Buckingham is the Marketing Director
and Bob Cortez is the President and General Manager for the team. Springfield is a suburb
in Boston with a struggling economy and the average citizen lives below poverty level.
Some of the major issues in the case are :-
Major population is below poverty level
Buckingham has obsolete/outdated data for proper decision-making
Buckingham has good marketing background but little experience in industry
The current scenario is that the only other Minor League team is the Falcons who are
contemplating leaving the town due to poor ticket sales.
Buckingham is faced with the challenge of pricing tickets for a baseball tournament that is
happening in June 2009. He speaks to marketing directors of other minor league sports
teams and conducts a survey to determine consumers’ response to price sensitivity and
willingness to attend sporting events.

Case Analysis:
Timeline:
Prices of tickets to be finalised by mid-June 2008
Tournament to kickstart in June 2009. 76 games. Goes on till September.

Income level:
Median household income: $31,046
25% population before poverty line

Perception of baseball: Affordable tickets, exciting matches, hard-working and talented

players.

Seating capacity:
Bleachers: 2000; Grandstand seats: 1600

Financials:

Revenue:
Revenue from local restaurants and hotels in the form of sponsorship $25,000
and advertisements

Financial support from city and colleges $21,000

Parking expenses to be paid by Nor’easters to college for stadium 100% fee @ $4 per
usage car

Revenue expected from concession sales 50% of total sales

Expenses:
 Total estimated expense $1,961,379

Competition price analysis:

Local colleges $5-$6 per adult; $3 per child

Baseball and $6-$26 depending on location of seats

hockey teams

Boston Red Sox $12 for bleacher seats; $325 for dugout blocks (fans could not even
purchase because they were sold out well in advance)

Pricing:
First Combination:

Population of the city: 55,338

Ticket <$4 $4 $6 $8 $10 $12 $14

type/Cost per
ticket

Single Ticket 10* 0.8 * 55338

* 0.21 = 92968

5-game season 10* 0.65 *

55338 * 0.11 =
39557

20-game half 8 * 0.69 *55338

season * 0.05 = 15273

38-game 4 * 0.82 *
season 55338 * 0.02 =
3630

Total revenue expected from ticket sales = 151428

This strategy doesn’t allow the company to break even.
Second combination:
Population of the city: 55,338

Ticket <$4 $4 $6 $8 $10 $12 $14

type/Cost per
ticket

Single Ticket 10* 0.8 *

55338 * 0.21
= 92968

5-game 12 * 0.39 *
season 55338 * 0.11
= 28488

20-game half 8 * 0.69

season *55338 * 0.05
= 15273

38-game 4 * 0.82 *
season 55338 * 0.02
= 3630

Expected revenue = 140359

Third combination:

Total number of seats to be filled = 136800

Expected seats to be filled = 80% of 136800 = 109440
Population of the city: 55,338

Ticket <$4 $4 $6 $8 $10 $12 $14

type/Cost per
ticket

Single Ticket 10 * 0.8

*55338 *
0.21 = 92968

5-game 8* 0.94 *
season 55338 * 0.11
= 57219

20-game half 6* 0.92

season *55338 *
0.05 = 15273

38-game 4 * 0.82 *
season 55338 * 0.02
= 3630
Total expected revenue from ticket sales = 169090
Total revenue from concession sales = 0.81 * 55338 * 10 = 448238