Case Study
Identification of the strategic issues and problems
The first issue for the Springfield Nor’easters was being a new minor league baseball team in an already troubling market. A minor league ice hockey team named the Falcons had already announced that unless the team sold 300 plus season tickets, they would be leaving Springfield. Another important issue for the Nor’easters was Larry’s lack of sport industry experience and the length of time to develop a pricing strategy. Larry had 6 months to develop a pricing strategy for ticket and concession sales that would at least breakeven the first year.
The city of Springfield had very little exposure to professional sporting events. Buckingham must be creative in order to create an awareness and loyalty of a minor league team.
Analysis and evaluation
Strength:
• Enter a marketing that is rising economically
• 60% of Springfield’s families have children under the age of 18
• Sponsored by a major league team that will provide $909,500 for players’ salaries, bats, and balls
• No leasing fees for the stadium
• Financial pledges totaling $46,000 from nearby colleges, restaurants and hotels due to the likelihood of increased revenues.
• Home to the Basketball Hall of Fame which is a major tourist attraction.
• A brand that has shown high support from the consumers
Weakness:
• Lost in higher earning residents which caused a 3.6% drop in average wages
• 25% of the families live below the poverty line
• Economy has caused the Springfield residents to be very mindful of spending.
• Only 38% of the respondents consider themselves baseball fan
• 61% of the respondents indicated that they would not attend a game if a minor league baseball team came to the city.
Opportunities:
• Could be the only professional sports team in the city
• Target market makes up 60% of Springfield population
• Can create loyal fans based on the entertainment experience and not the win-lost record of the team.
Threats:
• World
The first issue for the Springfield Nor’easters was being a new minor league baseball team in an already troubling market. A minor league ice hockey team named the Falcons had already announced that unless the team sold 300 plus season tickets, they would be leaving Springfield. Another important issue for the Nor’easters was Larry’s lack of sport industry experience and the length of time to develop a pricing strategy. Larry had 6 months to develop a pricing strategy for ticket and concession sales that would at least breakeven the first year.
The city of Springfield had very little exposure to professional sporting events. Buckingham must be creative in order to create an awareness and loyalty of a minor league team.
Analysis and evaluation
Strength:
• Enter a marketing that is rising economically
• 60% of Springfield’s families have children under the age of 18
• Sponsored by a major league team that will provide $909,500 for players’ salaries, bats, and balls
• No leasing fees for the stadium
• Financial pledges totaling $46,000 from nearby colleges, restaurants and hotels due to the likelihood of increased revenues.
• Home to the Basketball Hall of Fame which is a major tourist attraction.
• A brand that has shown high support from the consumers
Weakness:
• Lost in higher earning residents which caused a 3.6% drop in average wages
• 25% of the families live below the poverty line
• Economy has caused the Springfield residents to be very mindful of spending.
• Only 38% of the respondents consider themselves baseball fan
• 61% of the respondents indicated that they would not attend a game if a minor league baseball team came to the city.
Opportunities:
• Could be the only professional sports team in the city
• Target market makes up 60% of Springfield population
• Can create loyal fans based on the entertainment experience and not the win-lost record of the team.
Threats:
• World