CVP Analysis of Canberra Ice Hockey Team - Assignment Help

Executive Summary

This report will cover the analysis of cost volume profit analysis of Canberra Ice Hockey team. Three new products were recommended including the risk they pose for the whole sales mix. Variable cost, fixed cost and selling price of the product range is assumed to analyze the breakeven points at many different scenarios. Home matches are to be promoted through social media marketing platform of Facebook which is cost-effective and targeted to the market required by the hockey team, it also helps build positive customer relationship. The risks which are analyzed are competition, customer loyalty, quality, reputation, economic condition, and price. It is recommended that new products and customized jersey and home jersey should be the main focus of the organization's merchandise planning and marketing.

Analysis

Canberra Brave Ice Hockey team is currently selling the following products are its store.

 It can be observed that the merchandise available for sale is targeted on the adult fans, whereas, Ice Hockey is a family sport. It is essential that the merchandise should be appealing to children. For this reason it is recommended to introduce the following three products. Junior Jersey is to be introduced targeting junior fans aged from 3 to 7 years, Flat caps are to be introduced which can cater both the adult fans as well as the junior fans and Beanie is introduced to cater both age segments. Teams in the AIHL are currently catering their fans with these recommended products. The pricing is competitive to the market as compared to the other merchandise of teams.

 The prices may be competitive and products may be unique but the risk associated with the launching of new product will always be their risk associated with it. To understand the merchandising we have to first look at the main factors which are Product Variety, Product Quality, and Customer Loyalty. It is also noted that product variety social status and satisfaction are the highest variables in creating positive intention of licensed team merchandise (Titah, Lapian,and Rumokoy, 2018). 

Our collective fascination for sports and sports commodities is growing as it becomes simple to see significant sports activities and even local activities from all around the globe. The same is true for continuously simplifying internet retail services, offering fast and simple access to an increasingly inexpensive archive of unbelievable memories. In the next five years the industry will have to increase spectacularly to £ 36 billion, but what happens next will be somebody's guess. In any event, it is obvious that the moment was never better for the profitable retail universe of sports goods (Matters, 2019). To promote home games Brave Membership is already being offered to the fans which is why discounted prices is not an option to further promote the game, however, targeted advertising on the social media can be taken up, as it is the most effective way to connect to the local fans and build a lasting relationship these targeted advertisement this medium is taken up due to a success story of the Australian Open which ran Facebook video and photo ads to promote the ticket sales, which opened messenger to purchase the tickets this medium resulted in a 24.3 times return on the spending. The relationship of a sports fan and its club is an essential bond, removing all bridges and connecting with fans on this platform can increase loyalty and ease for all the fans to purchase the tickets (Facebook Business, 2019). This will cost around $5,000 (Fixed cost assumption) to promote the home games which would promote 925 fans in each home game out of the maximum 1000 seats.