Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Market Case Study Final: Maximizing Revenue in the Minor Leagues

This presentation is a component of a team MBA final project at Northwest University. The primary data is based on a Harvard case study regarding minor league baseball entry to a small town. Much of the research has been condensed and simplified.

Devin Cabanilla

on 27 June 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Market Case Study Final: Maximizing Revenue in the Minor Leagues

from the numbers,
Home Base: can we play?
Pitcher's Mound
Survey Research
First Base
let's calculate stuff!
Second Base
Third Base
to the bleachers,
1. Springfield, MA
- pop 55k
2. Market Segments
-show different lifestyles
show table w/#'s
Where? Who? What?
3. Minor League Venue
- 3600 seats
- 38 game season
The Nor'easters Team
The People of Springfield
Median Income
Springfield families
Springfield households
Springfield Seniors
Springfield Singles
-only $31k

-below U.S. median
-25% under poverty line
- 60% with children
-10% are part of pop.
- 25% live alone
the Springfield Nor'easters
how much is a
minor league
Team Expenses
- Salaries & Equipment*

- Team Costs

- Local Sponsors

Total Remaining


$(1,005, 879) !!!
can they
break even?
"Are you a
baseball fan?
Potential Customers
Town pop > 55,338
Fan Survey > 38%
Town Fans = 21,028
Is this it?
Those Who are interested matter!
Survey shows price matters
"Get ready for a presentation
from out of Left Field..."
If willing to buy at $14 bucks...
...then $14 buyers are also willing
to buy for $12 tickets...
... so the $14 buyers and $12 buyers are willing to pay lower price points ...
a buyer's willingness to pay is really an
Our factors are:
- pop. > 55,338
- % willing to buy
- $ per ticket set
- #games per season
Let's find the revenue for $14 single tix
...but wait
pop. 55,338
x 21%
"Actual people" who go need to be calculated!

(not just the interested)
factor in that
aggregate range
#people 11,621
x aggr. 22%
#actually going=2557
#people 2557
x price $14
x games 38
single tix revenue= $35,792.62
now to calculate
ticket revenue...
similarly, we can find revenue for every ticket type this season
Can Springfield lifestyles support baseball?
LEFT Field
"Let's cut the calculations SHORT,and...
the final pitch
"Git yer PEANUTSSS! PeaNuts! Peanuts!"
remaining revenue
- baseball Marketing Directors see concessions as critical
- they give 39% margin

- concessions can get us
to Break Even

- or even profit
Q7: "If a minor league baseball team came to Springfield, is it likely you would attend?
details matter, and...
Ticket Revenue & Attendees
Let's lower prices instead
New Total: $765,258.13
more people too
12,010 MORE!
So here's
where we're at...
Tix Revenue:$765,258.13
Exp $(1,005,879.00)
Remaining: $(240,620.87)
these are %people within a ticket price
Did we pick the right prices?
Old Total:$526,242.24
one more revenue source...
"...we'll STOP here to summarize all our data factors..."
"...then we'll move to steal third base with simpler info."
here's a recap
and more factors...
A. Town population
B. %people interested
C. #who go once/yr
D. %who actually go
E. #who actually go
and here's revenue
P. $Ticket Price
Q. #who actually go
R. #seats per person
S. $Revenue per person
T. #seats sold per person
Q(S) or P(T) = Tix Revenues
there yah go...
now with these results, let steal third
Total Tix Revenue: $526,242.24
for questions or data details
data to
chew on
First Concessions pitch, "BALL!"
-we calculated a weighted average
for concession prices
- $8.83 average for all attendees
*except no shows
Total Concessions: $137,380.86
We're in a pricing pickle!
back to the survey...
who will buy
Here's the concession nuts!
A. Concession Price
B. %who show up
C. #who show up
D. %who buy at price
E. #who buy at price
F. $Gross Revenue/Season
G. Profit Margin
H. Revenue per season



Total $10 Concessions:
Outfield Summary
Tix are: $10, $,8, $6, $4
Concessions are: $10

Tix Revenue: $765,258.13
Conc. Revenue: $367,870.69
Expenses: $(1,005,879.00)
PROFIT MARGIN!: $127,249.82
we're ready to run the big league
so let's work out $10
as the price point
Announcers: Wu, Stephanie
Statisticians: Goran, Cortney
Copy Writers: Shruti, Monica
Production Design:Erika, Devin

let's run to second
we exceeded the break even!
Full transcript