Case submission for Sampath (Sam) Telikicherla Kandala

1. What attributes are most important to Fans?

The following attributes are used to conduct the conduct the conjoint analysis. We will use attribute weight to
calculate the most important attribute.

Calculating the common denominator:

(0.24383+0.2764)+(0.65646+1.00257)+(1.01148+0.73169)+(0.17428+0.31786) = 4.41457

Weight for number of Games = (0.24383+0.2764)/4.41457 = 0.117

Weight for the ticket price = (0.65646+1.00257)/ 4.41457 = 0.375
Weight for Ticket Location: (1.01148+0.73169)/4.41457 = 0.394
Weight for Promotional Item: (0.17428+0.31786)/4.41457 = 0.11

The most important attribute for fans is the ticket location.

2. What should the Blazers’ multi-game packages include--how should they price their seats and which promotional
items make sense?

The utility scores from the Conjoint analysis provided in table 1 of the case are used to make the package
assessment.

Highest Utility Analysis: We will start by calculating the maximum utility scenario for fans and then optimize for Trail
blazers and fans. The highest score for each utility is taken and added to determine the maximum customer value.

A = Highest utility score for number of games = 6-game create-your-own pack, including 2 elite teams and 4 very
good teams = 0.24383

B = Highest utility score for ticket price = $15 per seat per game = 0.65646

C = Highest utility score for ticket location = 200 level, midcourt = 1.01148
D = Highest utility score for promotional item = Hot dog and soda with each ticket = 0.17428

Total utility score = A+ B+ C+ D = 0.24383 + 0.65646 + 1.01148 + 0.17428 = 2.08605

Determining Optimal price and seat location:

1. The highest utility score for number of games is in-line with the Blazers management preference (Six game
package). So this utility score can be locked.

2. Key is to determine the optimal price and location to get the maximum number of customers and also turn profit.

Blazers management disallowed for:

o 200-level seats for less than $60

o 300-level, midcourt seats for less than $25

These 2 seats have the highest utility scores from the fans.

o The 200 level seats have a $20 profit margin ($60 Price - $40 fixed cost), but the utility score for a fan to
pay $60 price set by the management is very low -1.00257
o Would an average fan pay $25 for 300-level mid court seats or rather pay $15 for behind the baskets and
corners seat.
We will use attribute tradeoffs to determine the best option.

0.65-0.22 = 0.43 < 0.15 +0.44 = 0.59 < 0.15+0.73 = 0.88

The fan would pay $25 for 300-level mid court seats.

Maximizing profit:

The promotional item attribute can be used to further refine the package. The two highest rated promotional items
that are also low cost to the company are: Priority for home-playoff tickets and Hot dog and soda with each ticket

Would the fan pay additional $10 to purchase hot dog and soda so it can cover the cost. Again, attribute tradeoffs
can be used here.

0.22-0.12 = 0.10 > 0.17-0.12=0.05. The utility of keeping $10 is more than spending on Hot dog and Soda.

Package recommendations:

Based on the analysis above the following packages are recommended to attract the maximum customers from 3
different segments:

Package 1: Super Value Pack

Number of Games - 6-game create-your-own pack, including 2 elite teams and 4 very good teams
Ticket Price - $25 per seat per game
Ticket Location - 300 level, midcourt
Promotion item - Priority for home-playoff tickets
 Target customers: Game enthusiasts who are willing to spend on game viewing experience with ability to watch
many games but not very specific about having a meal or snack during the game.

Package 2: Super Value Pack Plus Eat In

Number of Games - 6-game create-your-own pack, including 2 elite teams and 4 very good teams
Ticket Price - $35 per seat per game
Ticket Location - 300 level, midcourt
Promotion item - Hot dog and soda with each ticket

Target customers: Game enthusiasts who are willing to spend on game viewing experience with ability to watch
many games and enjoy a meal or snack while watching the game.

Package 3: Value Pack

Number of Games - 6-game create-your-own pack, including 2 elite teams and 4 very good teams
Ticket Price - $15 per seat per game
Ticket Location - 300 level, on the corners
Promotion item - Priority for home-playoff tickets

Target customers: Game enthusiasts who are budget conscious and are ok to compromise on the viewing
experience and also are not willing to spend money on food.

• 3. How profitable would each of the packages be?

Package 1: Super Value Pack

Number of Games - 6-game create-your-own pack, including 2 elite teams and 4 very good teams
Ticket Price - $25 per seat per game
Ticket Location - 300 level, midcourt
Promotion item - Priority for home-playoff tickets

Profit = Price – cost = $25 – (cost of seat + cost of promo) = 25 – (18+0) = $7 per ticket profit.

Package 2: Super Value Pack Plus Eat In

Number of Games - 6-game create-your-own pack, including 2 elite teams and 4 very good teams
Ticket Price - $35 per seat per game
Ticket Location - 300 level, midcourt
Promotion item - Hot dog and soda with each ticket

Profit = Price – cost = $35 – (cost of seat + cost of promo) = 35 – (18+3.25) = $13.75 per ticket profit.

Package 3: Value Pack

Number of Games - 6-game create-your-own pack, including 2 elite teams and 4 very good teams
Ticket Price - $15 per seat per game
Ticket Location - 300 level, on the corners
Promotion item - Priority for home-playoff tickets

Profit = Price – cost = $15 – (cost of seat + cost of promo) = 15 – (12+0) = $3 per ticket profit.