Group-9

• Aditya Mukherjee M002-16

• Manisha Mandal M033-16
• Rohit Gupta m055-16
• Shashi Shekhar m061-16
• Ankush Bansal M087-16
• Anuradha Bedare M092-16
• Digraj Kumar Mahanta M099-16
Problem
Statement
• Develop a dynamic pricing strategy for Arsenal’s
home ground for an entire EPL season

• Determine the optimal price and capacity

allocation for season ticket holders

• Season Ticket Pricing (Contd.)

Market Survey Data
• Demand function has been generated based on 3 parameters-
price, last match result and next match opponents
• Price range 80-100
• 4 scenarios for last match result and next match opponents

Last Match Result Next Match Opponent

Win-1 Strong -1

Win-1 Weak -0

Loss-0 Strong-1

Loss-0 Weak-0
 Price Expectation of Fans

Win-Weak Loss- Strong

8000
10000
6000
5000 4000
2000
0 0
80 85 90 95 100 80 85 90 95 100

Loss-Weak
Win-Strong 10000
20000
8000
15000
6000
10000 4000
5000 2000
0 0
80 85 90 95 100 70 75 80 85 90 95 100
 Individual Ticket Pricing Strategy
• Demand function = 163609 -1565*Price + 7547*Last match
result -2413*next match opponent
SUMMARY OUTPUT

Regression Statistics

Demand Multiple R
R Square
0.400116555
0.160093257

Function Adjusted R Square

Standard Error
0.128596754
24110.24545
Observations 84

ANOVA
df SS MS F Significance F
Regression 3 8864111767 2954703922 5.082889931 0.002847648
Residual 80 46504314872 581303935.9
Total 83 55368426639

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 163609.8312 39363.87573 4.156344571 8.05416E-05 85273.22196 241946.4404 85273.22196 241946.4404
Price -1565.195765 434.4364673 -3.602818555 0.000545045 -2429.751888 -700.639643 -2429.751888 -700.639643
LM 7547.738725 5261.286896 1.434580336 0.15530444 -2922.555876 18018.03333 -2922.555876 18018.03333
NM -2413.018613 5261.286896 -0.458636577 0.647738743 -12883.31321 8057.275988 -12883.31321 8057.275988
 Price Optimization- Win-Weak

• Price has been

optimized through Price LM NM Demand
solver to maximize 100 1 0 831.2641

the revenue 99
98
1
1
0
0
1547.009
2724.023 price 83.79627
97 1 0 4542.89 last result 1
96 1 0 7184.185 next match 0

• Last Match Result- 95 1 0 10788.56

Win
94 1 0 15410.66
93 1 0 20980.55
92 1 0 27287.97
91 1 0 34000 demand Intercept 163609.8

• Next Match 90
89
1
1
0
0
40712.03
47019.45
40000.00 Price
LM
-1565.2
7547.739
Component-Weak 88 1 0 52589.34 NM -2413.02
87 1 0 57211.44
86 1 0 60815.82
85 1 0 63457.11
• Revenue-3351850.87 84 1 0 65275.98
83 1 0 66452.99 Revenue
82 1 0 67168.74 3351850.875
81 1 0 67577.74
• Price- 83.79 80 1 0 67797.38
100 0 1 834.2069
99 0 1 1365.008
Price Optimization –Win- Strong

• Last Match Result- Price

100
LM
1
NM
0
Demand
831.2641
Win 99
98
1
1
0
0
1547.009
2724.023 price 82.2546
97 1 0 4542.89 last result 1
96 1 0 7184.185 next match 1
• Next Match 95 1 0 10788.56

Component-Strong
94 1 0 15410.66
93 1 0 20980.55
92 1 0 27287.97
91 1 0 34000 demand Intercept 163609.8
90 1 0 40712.03 40000.00 Price -1565.2
• Revenue- 89 1 0 47019.45 LM 7547.739

3290183.991
88 1 0 52589.34 NM -2413.02
87 1 0 57211.44
86 1 0 60815.82
85 1 0 63457.11
84 1 0 65275.98
• Price- 82.254 83
82
1
1
0
0
66452.99
67168.74
Revenue
3290183.991
81 1 0 67577.74
 Price Optimization - Loss- Strong

• Last Match Result-

Loss Price
100
LM
1
NM
0
Demand
831.2641
99 1 0 1547.009
98 1 0 2724.023 price 77.43237
97 1 0 4542.89 last result 0

• Next Match
96 1 0 7184.185 next match 1
95 1 0 10788.56

Component-Strong 94
93
1
1
0
0
15410.66
20980.55
92 1 0 27287.97
91 1 0 34000 demand Intercept 163609.8
90 1 0 40712.03 40000.00 Price -1565.2

• Revenue-
89 1 0 47019.45 LM 7547.739
88 1 0 52589.34 NM -2413.02

3097294.67
87 1 0 57211.44
86 1 0 60815.82
85 1 0 63457.11
84 1 0 65275.98
83 1 0 66452.99 Revenue
82 1 0 67168.74 3097294.67
• Price- 77.43 81
80
1
1
0
0
67577.74
67797.38
100 0 1 834.2069
99 0 1 1365.008
Price Optimization - Loss- Weak

• Last Match Result-

Loss Price
100
LM
1
NM
0
Demand
831.2641
99 1 0 1547.009
98 1 0 2724.023 price 78.97404
97 1 0 4542.89 last result 0

• Next Match 96
95
1
1
0
0
7184.185
10788.56
next match 0

Component-Weak 94
93
1
1
0
0
15410.66
20980.55
92 1 0 27287.97
91 1 0 34000 demand Intercept 163609.8
90 1 0 40712.03 40000.00 Price -1565.2

• Revenue- 89
88
1
1
0
0
47019.45
52589.34
LM
NM
7547.739
-2413.02
3158961.55 87
86
1
1
0
0
57211.44
60815.82
85 1 0 63457.11
84 1 0 65275.98
83 1 0 66452.99 Revenue
• Price- 78.974 82
81
1
1
0
0
67168.74
67577.74
3158961.553

80 1 0 67797.38
100 0 1 834.2069
99 0 1 1365.008
 Season Ticket Pricing Strategy
Assumption
Demand function for season tickets=>
Revenue
from season Aim
tickets
Maximise total revenue over the
Total entire season (19 matches)

Revenue Decision Variables

• Season Ticket Price
for the • Maximum numbers of seats to be allocated

Revenue
season for season ticket sale

from Findings
individual • Projected revenue found to be higher in case
match tickets of scenario with season tickets than that
without season tickets
Season Ticket Pricing Strategy (Contd.)
English Premier League

UEFA Champions League

3 Group
Round of 16
Stage Quarterfinal Semi-final
match
matches