Harvard Business School’s Springfield Nor’easters Case

Springfield Nor’easters

Marketing Plan

Overview

0Minor league baseball team0Single-game tickets at $6.00 a piece0Target Market:

0 Families0 Population in Springfield- 55,000

0Positioning:0 Local, affordable entertainment for the whole family

0Distribution:0 Tickets sold at box office and team website

Marketing Plan

0Promote team through various events throughout the year

0Get community involvement before the start of the season

0Events create unique and memorable experiences that other IMC tools cannot

Opportunities/Threats

0 Threats:0Other affordable entertainment:

0 Movies, bowling, theatre, etc.

0 Professional sports teams0 Opportunities:

0 Providing shuttle/transportation to games0 Sponsorships from local businesses0 Potential economic growth

0 External environmental factors:0Mainly low income0 Lack of public transit0Restrictions on sales of alcohol at games

Review of Competition

0Boston Red Sox0 Tickets prices: $12 - $325

0Minor League Baseball and hockey teams0 Ticket prices: $6 - $26

0Local Colleges0 Ticket prices: $5 - $6, $3 for children

0Other forms of entertainment:0 Prices: $5 - $30

Objectives

0Objectives:0 Break even through sales of tickets and concessions0 Build team’s brand awareness through events/experiences

Product Strategy

0Selling affordable and convenient entertainment0Core offerings:

0 Baseball game tickets- entertainment (intangible)0 Concession goods (food, souvenirs, beer)

0Points of Parity:0 Category- ticket sales, concessions, entertainment

0Points of Differentiation:0 Low ticket pricing, community-oriented environment

Pricing Strategy

0Establishing price as reaction to information from surveys

0The most profitable price is $6 for single game tickets0Pricing position – affordable/low cost0Flanker brand of its major league team organization0Low price is consistent with brand’s positioning

Place Strategy

0Distribution:0 Relatively selective, solely through the box office at the

stadium and online0 Consistency with positioning-

0Community based0Convenience (online)

Integrated Marketing Communications

0$175,00 allocated towards advertising0PR plan:

0 To promote events 0 Build brand equity

0Plan to create events and experiences for the community0 Help build awareness and support

Action Plans

0Summer event0Fall event0Winter event0Spring events0Restaurant and local business sponsors events

Summer Event

0Announced through official press release0Team will build float for town’s 4th of July Parade0Build awareness

Fall Event

0Booth at local town’s fall carnival0Will include information about the team 0Provide games

0 Dunk team members in water for prizes

Winter Event0Team will sponsor holiday event in the town’s center

square0Events will include:

0 Christmas tree lighting0 Snowball fights against players0 Sledding, snowman building, ice sculpting

Spring Events

0 Invite town to spring training0 Meet and greets with the players0 Q and A0 Sponsor the local Little League organization

Restaurants and Businesses

0Bi-monthly events at the various businesses that sponsor the team

0Restaurants and other local shops 0Raffles and prize giveaways0Community members will be able to interact with

players in a casual environment

PR for events

0Local radio ads for quarterly events0 4 weeks prior

0Local radio ads for bi-weekly events0 Week prior

Budgets

0Advertising spending allowance: $175,000

0Summer event:0 Press release: $10,0000 Parade float: $3,500

0Fall event:0 Fair booth: $1,0000 Dunk tank: $239

(rental)0 Prizes: $1,000

0 Winter event:0 Tree: $5000 Light, Décor, Maintenance:

$2,5000 Ice sculptors: $1,0000 Sled rentals: $5000 Prizes: $1,000

0 Spring event:0 Little League Sponsorship:

$5,0000 Bi-Monthly events:

0 Prizes: $6,000 (24 events * $250 for each

Event Promotions

0Radio Cost: $40,000 (one week of radio ad = $1,000)0 16 weeks of radio promo for the quarterly events0 24 weeks of radio promo for the bi-weekly events

0 Remaining Budget:Roughly $100,000

8. How much money is neededFrom ticket sales and concessions

to cover fixed costs?

$1,961,379(Less)

Player’s Salaries-$887,000Bats and Balls-$22,500

Fixed Cost=$1,051,879(Less)

Revenues FromNearby Colleges-$21,000

Sponsorship-$25,000

$1,005,879 revenueMust come from

Ticket sales and concessions

Price per ticket

Ticket Type

Less than

$4

$4 $6 $8 $10 $12 $14

SingleTicket

0% 2% 5% 13% 37% 27% 22%

5 game ticket

1% 2% 3% 19% 36% 34% 5%

20 gameHalf

Season

1% 7% 23% 28% 25% 15% 1%

38 gameFull

Season

18% 26% 20% 14% 11% 10% 1%

Price Fixing

Key Resources from theSurvey

21% willing to attend a gameThat is

11631/55338

11% willing to attend 5 gamesThat is

6093/55338


2769/55338


1107/55338

76% are willing to pay

At least 10% more for Grandstand seats

Price fixing and ExpectedRevenue from Single game

buyers

80% are willing to spend$10-$14

ThereforeBleacher seats-$10

Grandstand seats-$12

Revenue from tickets:$10-31%-3605$12-49%-5699(+)

9304

$36050$68388(+)

$104,438

Revenue From Concession:81% of 9304 buy ConcessionAt a margin of $2.34 per person

7536*$2.34= $17634

Price fixing and ExpectedRevenue from 5 game

buyers

94% are willing to spend$8-$14

ThereforeBleacher seats-$8

Grandstand seats-$10

Revenue from tickets:$8-19%- 1157$10-75%-4570(+)

5727

$9256$45700(+)

$54956

$54,956*5=274,780


4787*$2.34*5= $56008


buyers

92% are willing to buy

At least for $6

$6Bleacher seats and Grandstand seats

Revenue from tickets:

0.92*2769*$6=$15282$15,282*20=$305640


2130*$2.34*20= $99,684


buyers

82% are willing to buy

At least for $4

$4Bleacher seats and Grandstand seats

Revenue from tickets:

0.82*1107*$4=$363

$3630*38=$137940


806*$2.34*38= $71,669

TOTAL EXPECTED TICKET REVENUE

$104,438+$274,780+$305,640+$137940

=$822798

TOTAL EXPECTED CONCESSION REVENUE

$17634+$56008+$99684+$71669

=$244995

TOTAL EXPECTED REVENUE

$1,067,793

HENCE BREAKEVENCAN BE ACHEIVED

THANK YOU -BY

SWANANYA MUKHERJEE

Harvard Business School’s Springfield Nor’easters Case

Marketing

Transcript of Harvard Business School’s Springfield Nor’easters Case