Problem Formulation of Springfield Nor'easters

1. What company/organization is the subject of the problem?  Who has responsibility for addressing the problem (usually the protagonist)?

• Nor’easters-A minor league baseball team was the organization in the subject of the problem.
• Larry Buckingham, Marketing Director was addressing the problem.

1. Identify the strategic marketing dimensions to the company’s situation.  

• Pricing strategy – Ticket price of the game
• Formulate Ticket Revenue Projection comprising of single, season, and group tickets.
• Concentration on Concession Sales.
• Awareness/Promotion plan to avoid the Team to leave.

1. What is the significance of the problem to the subject?

• Nor’easters need revenue to generate profits- to prevent the team to leave.
• Very few numbers watch the game or find other sources of entertainment.
• Ice Hockey Team left due to low-ticket sales.
• Struggling Economy and average citizens lives below the poverty line.

• Optimal Price needed.
• Awareness/Promotion needed

1. What are the decision options?

• To Formulate the Right/Optimal Price of the Ticket- Profit/Revenue.

OR

• Stop Minor Baseball League to avoid further loss.

1. What does he/she need to know to make a decision?

• Does the price fit within the market and the competitors???
• Will the Pricing Strategy Work to achieve Break even?
• Stadium Availability- Long term??
• Other Entertainment in the City.
• Marketing Program- To sell tickets in categories.

1. What are some evaluative criteria for supporting the decision?

• Scores on consumer’s response with respect to pricing.

• The Expected Revenue generated from the sales of tickets and concessions.
• Determining the Expenses and Income to Break Even.

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