Wembley Stadium pricing study Essay -- essays research papers

Ticket Pricing Strategy for the new Wembley area1IntroductionOBJECTIVETo maximise profits from ticket sales at Wembley StadiumKEY ASSUMPTIONS1. Wembley has a monopoly on certain types of match 2. Wembley is hound by profit maximising managers conducting tickets to utility maximising buyers dodgingSet expenditures for seats as close to the willingness to pay as execu set back using price discriminationKEY CHOICESWhat type of seating to sell and at what price?2ScopeThis strategy is limited to the pursual football matchesEngland home matches competitive and friendlyMajor cup semi- utmosts and finalLower league play-off finalsWembley has a monopoly on these matches due to football connecter (FA) policy2. Theory states that Wembley should charge as close to the willingness to pay of its customers as attainable to maximise its profits1. The ability to do this depends on demand and the ability to price discriminate between market segments. 3 imperious Demand Absolute demand for t ickets will be high due to several factorsFootball is Englands national sport Watching live matches is popularWembley Stadium is the home of football with a long and distinguished history at that place is good evidence for assuming high demandThe last threesome competitive England home games were sold-out2Attendance figures for club matches are consistently high3 new cup finals at Cardiff Millennium Stadium were sold-out4Actual demand varies between market segments but can be found from market research, e.g. rank schemes and studying events at similar grounds. 4Market SegmentationThe table below shows the die hard of customers that buy tickets for football matches. cracking of demand is shown for for each one category and explained below Market SegmentsElasticity of DemandReason for Elasticity1&nbs... ...y for rugby union and leaguePop concerts outdoor arenas are alternatives with similar capacityThere are a wide range of substitutes available for these that affect willingne ss to pay. 11Other Event-Related Income Stadiums contain much much than just an arena to watch sport includingRefreshments and merchandise Broadcasting rights publicize Car parking Other events, e.g. conferencesIncome for the above would be approximately relative to the number of people in the stadium. 12References 1.Cabral, Luis. Introduction to Industrial disposal, 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