Required: Create a word-processed document that includes your “talking points” for the discussion along with your answers to questions 1-3 listed below. The format for your prepared document is informal, as notes, which means bullet points are acceptable. Hand-written papers are not acceptable.
NOTE: The following questions are intended to guide your analysis of the case and do not represent an exhaustive list of issues to be considered.
1. Evaluate the research survey undertaken by the League Sports Association and by Larry Buckingham, the Nor’easters’ marketing director. Consider and discuss the steps in the process that led to the findings of the survey.
2. What do you consider to be the key findings of the research survey? Comment on what Buckingham learned about prospective customer profile, pricing, and single-ticket versus season ticket packages.
3. What considerations should the Nor’easters take into account in establishing a pricing policy? Be as specific as possible.
We will do together in class:
4. Design a mathematically informed ticket pricing plan for Nor’easters’ first season that will maximize revenues. Should Buckingham offer more than one type of season package? How, if at all, should ticket prices vary by package type? Be very specific and be prepared to explain the assumptions that underlie your pricing strategy.
5. Will the team to be able to at least breakeven given your proposed ticket pricing plan? Be sure to consider all sources of revenue. Are they missing anything not discussed in the case? What it their net income (negative or positive) under your plan.