London Olympics 2012
[pic 1]LONDON OLYMPICS 2012ASSIGNMENT 3(GROUP ASSINGNMENT)GROUP 1Pratik BhutoriaSneha LathaChandandeep KaurHinal sanghaniSudarshan SanthanamAnkit SrivastavaLalit RathiQUESTIONS:Q1) what are the tradeoffs Williamson faces? Explain? In 2012 Olympic Games was planned to hold in London. Paul Williamson and his team had given the responsibility to develop the policies for pricing and distributing the millions of tickets that would go on sales in late 2010. He had the responsibility to look after the revenues too. He had a very unique tradeoff. From the past reports, it was observed that Olympic ticketing had been very tricky, although they had 18 months to develop their plans to maximize the revenues. Williamson and his team had a big challenge to overcome the issues which are in front of them and the major trade-offs faced by Williamson were:· The price policy was the main hurdle. They had 7.9 million tickets up for sale. The LOCOGS predicted an average of 500,000 spectators per day to attend the games. The estimate for the busiest day was 800,000. They had the target to sell 7.9 million tickets in a wide range in various locations. But it was not the issue; the issue was it had two major obstacles. Firstly the global financial crises could have the negative impact on the sales of the tickets; secondly they were selling the tickets first time on online. To avoid these issues Williamson and his team should put forward some ideas.
· The one more issue which was very significant for them was empty seats or attendance. The Beijing Olympic game made Williamson worried about the attendance of the spectators on the game days because the tickets was sold but the buyers didn’t attend the events. Just maximizing the revenues could not make this event a great success. It was essential that tickets distributed to Media and VIPs didn’t go to waste. Every empty seat might have a buyer who is willing to pay to attend the event. Williamson and his team should analyze the people who are interested in particular event and target them. · Revenue generation was also an issue to look after. The ticket estimation amount was $650 million which accounted for 21.5% of LOCOG’s forecasted budget of $3B. If by any instance there is a decrement in estimated revenue, it would affect directly to the broadcast revenues and sponsorships (domestic and international) and licensing fees. To overcome this obstacle, there was only one and that was to draw people at affordable but also at revenue maximizing prices.Q2) how might LOCOG’s Pricing Strategy vary by sports?