Toronto Blue Jays

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Toronto Blue Jayss case study

The Toronto Blue Jays baseball team was founded in the 1970s and experienced support from the fans during the 1970s and 1980s. In 1992 and 1993, the Jays won back-to-back World Series, yet in 1994, the team faced setbacks. The team had a losing streak, there was a major league baseball strike, and no World Series was played. At the same time, gambling came to Toronto, and the team had to compete for the fan's time. Also, players' salaries skyrocketed at a time when the Canadian dollar fell in value. How could the Toronto Blue Jays adjust ticket prices to improve financial performance and increase fan attendance?

Situation Analysis

The opening pitch of the 1999 marks the start of the Toronto Blue Jays twenty third seasons in the American League. In 1998, the Jays brought in their first winning season since 1993. The Jays plays in the worlds most advanced retractable-roof stadium. It is luxuriously called the Sky Dome. With a winning record like this and a state of the art stadium, the Jays feel their tickets are a great value because of the satisfaction fans can expect to receive from the ball game.

Recommendation

· Price is that which is given up in an exchange to acquire a good or service. Price is typically the money exchanged for the good or service. Blue Jays pricing structure is based on the perceived value of the game, the entertainment, the love of baseball, and the action, not just the money.

· Inelastic demand means that an increase or decrease in price will not significantly affect demand for the product. In spite of the rising prices for the Blue Jays tickets, fans were expected to turn out in large numbers. This inelastic demand for the tickets can be attributed in large part of the fact that their teams plays so well in 1998, and another factor is that the Blue Jays fan could never stay away from their team. Another inelastic demand for the Blue Jays tickets is that there is no other locally substitute team.

· Blue Jays pricing strategies are not just a financial necessity, they are also a promotional tool used to increase fan attendance. How? At all Saturday home game and nonholiday games, senior citizens and young people up to fourteen years old can purchase tickets except for the most expensive ones.

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