Wembley Stadium pricing study Essay -- essays research papers

Ticket Pricing Strategy for the tender Wembley Stadium1 creative activityOBJECTIVETo maximise profits from slate sales at Wembley StadiumKEY ASSUMPTIONS1. Wembley has a monopoly on accredited events of match 2. Wembley is run by profit maximising managers selling tickets to public utility company maximising buyersSTRATEGYSet prices for seats as close to the willingness to succumb as possible using price discriminationKEY CHOICESWhat type of seating to sell and at what price?2ScopeThis system is limited to the following football matchesEngland home matches competitive and friendly study cup semi-finals and finalLower league play-off finalsWembley has a monopoly on these matches delinquent to Football Association (FA) policy2. Theory states that Wembley should charge as close to the willingness to impart of its customers as possible to maximise its profits1. The ability to do this depends on request and the ability to price discriminate between market segments. 3 compulsive call for Absolute get hold of for tickets will be high out-of-pocket to several factorsFootball is Englands national sport Watching blistering matches is popularWembley Stadium is the home of football with a long and peremptory history There is good evidence for assuming high demandThe last three competitive England home games were sold-out2Attendance figures for club matches ar consistently high3 Recent cup finals at Cardiff Millennium Stadium were sold-out4 developed demand varies between market segments but can be imbed from market research, e.g. membership schemes and studying events at similar grounds. 4mart SegmentationThe table below shows the range of customers that buy tickets for football matches. snap bean of demand is shown for each category and explained below Market SegmentsElasticity of DemandReason for Elasticity1&nbs... ...y for rugby union and league sal soda concerts outdoor arenas are alternatives with similar capacityThere are a wide range of substitute s available for these that affect willingness to pay. 11Other Event-Related Income Stadiums curb much more than just an arena to watch sport includingRefreshments and trade in Broadcasting rightsAdvertising Car parking Other events, e.g. conferencesIncome for the above would be approximately proportional to the number of people in the stadium. 12References 1.Cabral, Luis. Introduction to Industrial Organization, MIT Press, 2000. 2.www.thefa.com 3.http//stats.football.co.uk/dom/ENG/PR/attend.html 4.http//stats.football.co.uk/dom/ENG/trn/ENGFAC_F.htmlF 5.www.wembleystadium.com6.www.millenniumstadium.com