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The Buffalo Bisons are a triple A affiliate of the New York Mets-players on this team

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Question;The;Buffalo Bisons are a triple A affiliate of the New York Mets-players on;this team are one level below the major leagues where salaries can be;huge. In the early days of the team?s most recent incarnation, sell outs;were very common. Filing 20,900 seats was fairly easy in the early 90?s;when the stadium was still new and the team was a perennial contender.;In recent years the selling effort has become more difficult. Typical;attendance is about 8,000 per game. (The following information is a;fictional, but realistic, account of the sales plan used by the;Bisons.)The;VP of Operations, Michael Salamone, wants to design a sales incentive;plan that will reinvigorate the fan babe for the Bisons. He recognizes;several realities.1. Three staff members serve as full-time sales agents. They have two major jobs:a.;Sell tickets to games. Because the Bisons had a weak team last year;projections are that it will be difficult to exceed an average of 14;000 seats no matter what the plan design is. Further, architecture of;the stadium makes sales above 12,000 more challenging because the seats;are not as desirable. If last year is any indication, fans will buy less;expensive seats, then switch to premium seats that are unoccupied after;the game begins. For PR reasons, staff look the other way when this;occurs, unless late-arriving fans find their seats occupied. The goal;for Mike Salamone is to focus on sale of premium seats, thus reducing;the ?seat shifting? by fans buying standard and bleacher seats.;Statistics for last year are as follows:Type of Seat Cost to Fan Number of these seats Average paidOccupancyPremium $12 6,000 1,500Standard $ 9 13,000 6,000Bleacher $ 7 1,900 500b.;Sell advertising-Advertising dollars come from placement of product;information throughout the stadium, including on billboards, outfield;fences, scoreboards, even dugout roofs. The dollar amount sold last year;was $908,013.2.;Increases in advertising sales are dependent on team performance. Team;performance drives ticket sales. In turn, advertising depends on number;of seats sold.3.;The three staff members are heavily dependent in the total;administrative team (7 other individuals) for ancillary activities in;the selling event (e.g., they sent out brochures, answer phone queries;provide follow-up information after the initial sales contract, etc.);Mike Salamone wants to have a simple plan for advertising sales that;rewards the total group yet still motivates the three sales staff.QuestionsOf;the above information, what is the most important in your design of a;sales incentive plan for the three sales staff? How does this;information affect your plan design?Your;book talks about unit rate plans. Which of these types of plan would;you use for sales of tickets? Which plan might be appropriate for sales;of advertising? Why?What factors influence the dollar amount you can pay for increases in ticket sales?

 

Paper#39833 | Written in 18-Jul-2015

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