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The objectives of carrying out this project were:
To understand the concept of event marketing and event management: This objective needed extensive secondary research to be done. This
was done to understand what is exactly event management and event marketing, and the various elements of it. Every event is like small business venture in itself and involves a lot of complexities that need to be understood beforehand to make it a success.
To understand various strategic models that would help an event management company gain a strategic advantage:
There are various strategic models devised to guide an event management company to success. Having an understanding of these are crucial for any firm to achieve he desired results, like, concept, client, competition models, etc.
To Understand the various promotional aspects of Events:
Promotion is one of the, if not the most important aspect of event management. It is vital to communicate the event to the target crowd or there would be no turn out. This has to be the most thought out and the strongest part of the entire plan. Events are increasingly being used as a platform by the marketers and the sponsors to promote there products, thus this is not only important for the organizers but also for the companies investing money in it as sponsors.
To Understand the purchasing and buyer patterns in relation to sponsor’s goods by the persons who attended the event:
Primary Research, using questionnaire was used to understand that how is the buying pattern of the person affected, after he/she has attended the event , towards the products of the sponsors.
To understand which promotional material is most effective in catching the person’s attention:
Multiple promotional materials such as hoardings, FM ads, T.V ads, newspaper ads, etc. are used for promoting an event. These involve heavy expenditure, thus the firm must decide as to which promotional material should be given more importance. Since every material has a different kind of reach, it becomes very important to know which material is most effective in communicating to the prospects.
CHAPTER-2 Introduction to Event Management and Event Marketing
Brief Introduction to the Industry
Event marketing is growing at a rate of three times that of traditional advertising. Though relatively small compared to the major components of the marketing communications mix-advertising, sales promotions and P-O-P communications-expenditures on event sponsorship are increasing. Corporate sponsorships in India in 2001 were estimated at $3.9 billion-with 65% of this total going to sports events and most of the remainder spent on sponsoring entertainment tours or festival and fairs. Thousands of companies invest in some form of event sponsorship. Defined, event marketing is a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social or other type of high-interest public activity. Event marketing is distinct from advertising, sales promotion, point-of-purchase merchandising, or public relations, but it generally incorporates elements from all of these promotional tools. Event promotions have an opportunity to achieve success because, unlike other forms of marketing
communications, events reach people when they are receptive to marketing messages and capture people in a relaxed atmosphere. Event marketing is growing rapidly because it provides companies alternatives to the cluttered mass media, an ability to segment on a local or regional basis, and opportunities for reaching narrow lifestyle groups whose consumption behavior can be linked with the local event. MasterCard invested an estimated $25 million in sponsoring the nine-city
World Cup soccer championship in the United States in 1994 and will likely sponsor other big events in many countries as well. Olympics and its renowned five rings are “the world‟s most effective property” in terms of marketing tools. The Olympics sell sponsorship on a local and global basis, and every couple of year‟s corporation‟s line up to pay as much as $50 million to be the lord of the rings. The Atlanta games in 1996 have a reported $3 billion in the bank as a result of negotiating sponsorship, broadcast, and licensee fees. The Olympics represents the crème de la crème of event marketing and corporate sponsorship. Event marketing is a lucrative game of “what‟s in a name”, as consumers purchase tickets and expose themselves to everything. The world of event marketing is a fast growing, high profile industry worth over $20 billion annually, and one of the most successful marketing strategies. Event marketing integrates the corporate sponsorship of an event with a whole range of marketing elements such as advertising, sales promotion, and public relations. Corporations both large and small have grown this industry at a rate of 17 percent per year, and they have achieved a high level of success. Event management generally means conceptualizing, meticulous planning, organizing and finally executing an event. It is a set plan involving networking of a multimedia package, thereby achieving the clients objectives and justifying their needs for associating with events. Events can bring community together for purpose of fundraising, change a town or city‟s image, expand its trade, stimulate its economy, help companies to market and introduce its product and also for the entertainment of society. Not only do events enhance the quality of our life, they can provide significant economic benefits. Events require a high degree of planning, a range of skills, a lot of energy and funds.
40 per cent of the event management industry continues to be the unorganised sector (comprised mainly of homemakers). The proliferation of TV channels and newspapers mean that advertisers have begun to opt for experiential marketing (event management) instead. You connect with the consumer through an event, and you're likely to get better and quicker results through events than through traditional advertising. According to a recent report published by Price Waterhouse and Coopers, the live entertainment segment alone is poised to grow at 20 per cent in the coming years. Insiders like Devraj Sanyal, Chief Executive Officer of the events and production house Percept D'Mark, peg the growth rate of the event management industry at 30 per cent. The boom began in the 1990s with the opening up of the economy and took off in 2002. It's only going to get bigger as consumers become more and more discerning. A lot of the industry's recent success can be attributed to the fad of reality television. Almost 40 per cent of a TV channel's content is non-fiction. Reality shows, dancing and singing competitions all fall under the domain of event management. It is a huge opportunity for us. There's keen international interest in the fledgling Indian event management industry, another factor that's nudging its growth graph upwards. A key reason for growth is the influx of international brands. In the last year, global mega-brand WPP has bought over Roshan Abbas' Encompass Events, while Interpublic group has invested in Lintas India. Network 18 and Viacom have entered into a joint venture to create Viacom 18, an entertainment and event platform. Tellis believes competition will only make things better. It will increase professionalism and creativity in our industry. The future only promises to be bigger, better and brighter. As long as brands need to communicate to the new, discerning consumer, there is no place to go but up.
An event is a live multimedia package with a preconceived concept, customized or modified to achieve the clients objective of reaching out and suitably influencing the sharply defined, specially gathered target audience by providing a complete sensual experience and an avenue for two-way interaction.
from the client
This is a diagrammatic representation of the above definition. From the model it is evident that an event is a package so organized has to provide, reach and live interaction between the target audience and the client to achieve the desired impact. Event marketing involves canvassing for clients and arranging feedback for the creative concepts during and after the concept initiation so as to arrive at a customized package for the client, keeping the brand values and target audience in mind. Marketing plays an important role in pricing and negotiations as well as identifying opportunities to define and retain event properties by gathering marketing intelligence with regard to pricing, timing etc. In fact, ideally event marketing involves simultaneous canvassing and studying the brand prints; understanding what the brand stands for, its positioning and values, identifying the target audience and liaison with the creative conceptualizes to create an event for a prefect mesh with the brand‟s personality.
TYPES OF EVENTS
1. Sporting Events Sporting events are held in all towns, cities, states and throughout the nation. They attract international sports men & women at the highest levels. 2. Entertainment Arts and Culture Entertainment events are well known for their ability to attract large audience. This includes musical concerts, celebrity performances, movie releases and mahurats etc 3. Commercial Marketing and Promotional Event Promotional events tend to have high budgets and high profiles. Most frequently they include product launches, often for computer hardware and software, perfume, alcohol or motor cars. The aim of promotional events is generally to differentiate the product from its competitors and to ensure that it is memorable. The audience for a promotional activity might be sales staff such as travel agents, who would promote the tour of the
clients or potential purchasers. The media is usually invited to these events so that both the impact and the risk are high, Success is vital. 4. Meetings & Exhibitions The meetings & convention industry is highly competitive. Many conventions attract thousands of people, whereas some meetings include only a handful of high profile participants. 5. Festivals Various forms of festivals are increasingly popular providing a particular region the opportunity to showcase its product. Wine and food festivals are the most common events falling under this category. Religious festivals fall into this category as well. 6. Family Weddings, anniversaries, divorces and funerals all provide opportunities for families together. Funerals are increasingly are becoming big events with non traditional coffins, speeches and even entertainment. It is important for the event manager to keep track of these changing social trends. 7. Fund Raising Fairs, which are common in most communities, are frequently run by enthusiastic local committees. The effort in the organization required for these events are often underestimated. As their general aim is raising funds, it is important that rides and other such contracted activities contribute to, rather than reduce, revenue. 8. Miscellaneous Some events defy categorization. Potatoes, walnuts, wild flowers, roses, dogs, horses, teddy bears all provide the focus for an event organized in United States.
SIZE OF EVENTS
In terms of size events maybe categorized as follows: 1. Mega Events The largest events are called mega events, which are generally targeted at international markets. All such events have a specific yield in terms of increased tourism, media coverage and economic impact. Example: The Olympic Games, World Cup Soccer, Super Bowl, Maha Kumbh Mela. 2. Regional Events Regional events are designed to increase the appeal of a specific tourism destination or region. Example: Delhi Half Marathon. 3. Major Events These events attract significant local interest and large no of participants as well as generating significant tourism revenue. Example: Chinese New Year Celebrations. 4. Minor Events Most events fall into this category and it is here that most event managers gain their experience. Annual events fall under this category. In addition to annual events, there are many one time events including historical, cultural, musical and dance performances. Meetings, parties, celebrations, conventions, award ceremonies, exhibitions, sporting events and many other community and social event fit into this category. Example: Annual Trade Fair organized in Delhi, Chandipur Beach Festival
Activities in Event Management
Events typically have a team based environment and a project type of organization structure. Thus, responsibilities are assigned to the relevant staff members in the team for the Event. Coordination of arrangements required is divided among the team members. Once the preliminary discussions are over, and the final concept sold to the client, the very first step creative conceptualizes works on the designing. Then the Project manager prepares a thorough schedule after understanding the critical steps ad issues involved in that particular event. External agencies such as architects and engineering contractors may be consulted at this stage to understand feasibility of planned concepts. Most event management companies have experienced production managers who understand the feasibility of planned concepts. Then the project manager draws up a cash flow statement, a budget statement and arranges budget allocation for the event. Based upon the project requirements critical dates or deadlines are drawn up and the best possible solution among alternatives to achieve these deadlines is chosen. The overall coordinator along with the sales and marketing team should ensure the completion of overall design, models of stages, visuals, etc. with graphics included by the creative team within the prescribed deadlines and make a researched concept presentation to the clients. At this stage, the legalities of drawing up the contract, agreements and finalization by signing of contracts between the event managers and clients becomes a necessity. Keeping the feasibility in mind physical design are finalized and contractors begin work. Here fire, safety and insurance issues need to be taken care of. The coordinator, sales and marketing team then think about production of advertising promotions, brochures, posters, etc. Logistics is another important area that needs to be given priority attention by event coordinators. Logistics in events essentially involves booking of hotels, air, road, and rail transport for the participants and event managers, arranging transportations of material. A joint team of the concept creator and the main contractors then need to check out the special-effects equipments and arrangements. At this time day-by-day tracking of timing and finance with a feedback on possible changes i.e. increase or decrease in expenditure on various items.
Finalization of cleaning, security, furniture (tables, seating, barricading etc.), décor (flowers), communication (telephone), and other service hire contracts (couriers) also take up the production manager‟s time at this stage. The project manager handles the progress report and gets contingency plans drawn up. The overall coordinator has to continue in touch with the client with reference to the PR, publicity, press releases, and promotion on TV, and radio along with the public relations team. Arranging for a press conference for the clients, and artists, giving out invitations, passes and tickets to the event, organizing the reception for the press with uniforms for the hospitality hostesses/hosts or staff at the reception is also a major responsibility for the PR team in the preparatory stages leading up to the event. Damage control due to artists‟ tantrums is yet another aspect typical of this field that the PR team needs to contend with. These have to be tolerated and controlled to avoid any adverse fallout. Final visit for quality checks and control need to be made to the networking components to ensure and confirm understanding. These typically include inspection of dimensions of stage and other critical near finished models for accuracy by the production manager. The overall coordinator along with the other team members needs to then arrange for a briefing of site supervising staff depending on category and type of event. It is essential that the entire briefing and interaction take place before the event begins. Once the event gets started the clients and the contractors‟ staff need to be kept away from interfering with the execution by the production manager and the event coordinators. Controlling the panic reactions due to invariable last minute troubles and final tying up of all loose ends is a very important penultimate task. The last stage in the first section involves resolution of on-site wrangles of delivery, permission, missing orders or items, close attention to construction of sets--asking whether it was done correctly, supervision of installation of special effects, objects. During-Event Activities During the event, softer aspects come into the focus. For overall coordinator, it is important to pass on all credit to supervisors. Event managers should look humble and be available to the clients to call on. The conceptualisers‟ efforts should be appreciated at
least during the event. At the same time, there should be a constant surveillances of the specially effects, display objects and the food and beverages. Thus monitoring is the gist of the during-event execution activity that is involved. Photographs and other multimedia recording arrangements if so desired also need to be taken from strategic locations. Post-Event Activities Beginning with the physical task of dismantling of the sets, post-event activity also run into accounting and other such works. Final accounts setting (bills to be paid on receipt) is accompanied by explanations for overspends. The team needs to carry out a postmortem analysis on the event and conduct an event evaluation. Recording the photographs taken of the event in the form of a photo-documentary helps a lot. Performance evaluation of the coordinators during the event should be carried out immediately so that weak points after the event can be used for learning. Finally, the overall coordinator should do the formality of thanking all involved for the wholehearted and extra efforts provided. Letters should go out to clients thanking them and these should include a post-event questionnaire seeking to measure client satisfaction. Based on this feedback, improvements and adjustments required should be worked upon. This theory states that the function of management can be classified into planning, organizing, staffing, leading and controlling. Finally, the most important part of Event Management is the execution of the Event as planned. We term this activity as Carrying-out the Event. Therefore, when we use Event Management, it is to denote the production of an Event. Staging an event takes more than a wish or dream. Preparation is the key to a successful event. ADVANTAGES OFFERED BY EVENTS or WHY Events? As is clear from the preceding section, use of events as a marketing communication tool not only take care of the problems associated with traditional media but also offer certain advantages because of which events are gaining importance over them. Some of the advantages are detailed below:
1. Events have the ability to bring together sharply defined participants since the capacity for a particular event is usually limited. A specific no. of the target audience could be invited of enticed to buy tickets for a show especially created for a particular profile of the target audience. 2. Since the audience is actively targeted, the option of control reach can be exercised and ideal audience for narrow-casting of information can be gathered. This leads to lowering of the media networking budgets and focused communication with the specially gathered audience. The audience that has been specially invited invariably is an ideal audience. 3. An event carried out professionally and cleanly is invariably a memorable experience. The word-of-mouth publicity that this generates is an advantage that lingers on a long time after the event is actually been carried out. This provides an advantage of higher brand recall to the client. 4. The involvement of all the senses in experiencing the event is one of the greatest advantages that events can offer. Events can be designed such that the audience is actively involved in every part of the event and made to feel good. Thus, events as a live media offer a certain amount of immediacy to the experience – of being there while it„s happening. For the audience, it is undoubtedly a thrilling situation. 5. Live media also enables interactive communication. Live media scores over conventional advertising in terms of reach, impact and tangible immediacy of measurement. Live media communication is a complete sensual experience as compared to a press advertisement or TV/Radio commercial. This is so because of press ad is basically a flat piece of paper and a commercial is just an audiovisual experience. The high recall value of live media communication is also a major factor. 6. No other media can boast of the ability to provide such massive collection of feed back instantly as events. Being a live media, it is possible to feel and deduce the reactions of the audience to the aim or objective that the event was conceived for.
7. Easily customizable nature of events, mean that specific traits of the local inhabitants can be incorporated in the big picture to ensure that the event is socially and culturally in tune with the local culture. Thus, the localization of events is very easy. 8. The advantage in terms of post-event publicity that events can offer over and above the paid or bartered media is the benefit associated with reports of the event in the newspaper and news on the electronic media. For such reports there is no extra cost to be borne – neither by the sponsor nor by the event organizer. This is a double edged sword because, in case the event is not up to the mark or is dogged y controversies, then the same is also reported impartially. 9. The conversion of good events into television software for future use either by the sponsors for their commercials or by media house for programming is also a unique benefit that events offer. Such software become products by themselves and can be used profitability in the future
KEY ELEMENTS OF EVENTS
Key Elements of Event Marketing
Example of Key Elements of Event: Event L‟Oreal Femina Elite Model Look‟98 Venue Shoot location: The Retreat, Marve Official Host: Taj Mahal Hotel Target Audience Youth and Family though with a younger mindset or young at heart. Media Pre-Event: Magazines and news papers to inform about event and call for entries with entry forms in them. Electronic Medium: TV and FM Radio to inform target audience about event coverage, date & time. During Event: Live coverage on DD2 for widest coverage. Post Event: Re-telecast on Star Plus. Interviews and appearance of winner on shows sponsored by L‟Oreal on the electronic media. Report on the event in the print media. Clients Main Sponsor: L‟Oreal Gifts Sponsors: Onida, Siemens, Bosh and Lomb, Global Tele-systems, Akbarallys Department Store, Trussardi, Catwalk Shoes, Estelle, The Orchids, Lakme, Sony Music. Ground Transportation: Adarsh Rent-a-Car – an H.B Kedia/Anil Kedia Enterprise. Communication Convenience: Global Tele-systems Beverages: Coca-Cola
EVENT MANAGEMENT AS A PROMOTIONAL TOOL
Initial Canvassing Concept
COMMUNICATION EFFECTS OF EVENT MARKETING Communication is the process of moving a message that includes different elements. Those elements include source, message, channel, receiver and the process of encoding and decoding. The source is the organization, the message could be a new car launch, the channel could be the event, and attendees are the receivers. A problem many marketers have is to make sure that the noise that can disturb the message going from the sender to the receiver does not interfere with the message, and thereby influence the effect it has on the customer. The direct communication with the customer is one of the main advantages with Event Marketing compared to other marketing channels. In the definition of Event Marketing, it is said that “an event is an activity that gathers the target group in time and room.” This means that the event is eliminated from the noise.
Communication Process in Event Marketing Event Marketing is marketing communication in four different dimensions. The first one is the emotional communication method. The Event Marketing is a form of “pull” marketing, where the organizations try to get closer to the feelings and emotions of the customers. They do this not by “pushing” their products at the customers, but by touching the customers‟ emotional feelings.
The second dimension touches the customers by involving them in activities. When the customer gets a feeling from a product, he/she is informed of the value of the product. An example of this in the car industry is the test-driving of new cars. The third dimension is the intellectual dimension and it regards the relevance of the event for the customers. The fourth dimension is the spatial dimension, how to get the three prior dimensions into action and to inform the customers through all marketing channels. Some researchers say that in the future, customers will not buy just the product, but the meaning, the event and the character, which in turn give the customers the possibility to create their own value for the product. Relative Importance Of Events As A Marketing Communication Tool
Dominan t Strong Favorabl e
Weak Introduction Growth Maturity Decline
Events Traditional Modes of Communication
With Regard to the competitive position of events as a medium and the life cycle stage it is in vis-à-vis other marketing communication media, it is clear that: Traditional ways of marketing communication are moving from the growth phase into the maturity stage. Their effectiveness is lost due to cut throat competition which is leading to undesirable clutter in all kinds of media including internet. An event as a medium is in a tentative/favorable position now and will continue to remain so in the near future and tend towards becoming stronger. Event as a strategic marketing communication tool would gain significant followers and will bite into a much larger portion of the marketing budget.
EVALUATION OF EVENTS 1. Measuring Reach Reach is of two types – external and actual, since events require massive external publicity, press, radio, television and other media are needed to ensure that the event is noticed and the benefit of reach is provided to the client. External reach can be measured by using the circulation figures of newspapers and promotion on television and radio. The DART & TRP ratings that rate the popularity of programs on air and around which the promotion is slotted. Measurement of external reach should be tempered with the timings of the promotions as effectiveness of recall and action initiated among the target audience is highly dependent on this important variable. A ratio of the external reach to the actual event reach is a very tangible and useful measurement criterion. Ideally,
External Reach =1 Actual Reach
The ideal situation in real life is very rare since the external reach gets drastically reduced in terms of reaching out to the target audience and is therefore impractical in most cases. This is because the target audience is derived from the target population which is invariably very large. It is impractical to assume that all the constituents of the target population can make it to the event. The above ratio is usually found to be greater than 1 in practice.
External Reach >1 Actual Reach
2. Measuring Interaction In most event categories, compared to reach, it is much more difficult to access the interaction between the audience and the event and the benefit that accrues to the client. A certain amount of quantifiable data can be of help in measuring interaction for an event from the clients‟ point of view. These are as follows: No. of interaction points The no. of direct and indirect interaction points that have been planned and arranged for an event provide the first important measurement tool. The greater the no. of interaction points the better for the client. No. of interactions The opportunity for interaction between the client and the audience before, during and after the event is also a very tangible measurement criterion. The greater the opportunity for increasing the no. of interaction, the better for the client. Quality of interactions One-way or two-way communication during interaction has a profound impact on the quality of interaction that takes place. The quality of interaction is perceived as good when there is an avenue for two-way interaction
Time duration of interaction Every event has a limited time period within which both benefits the other issues such as controversies are effective. The amount of time that is available for interaction is very important in that the greater the duration of the interaction, more are the chances that there are some meaningful and decisive interaction between the client and the audience.
Strategies and Matrices
REACH INTERACTION MATRIX The reach interaction matrix summarizes the generic characteristics of each of the category to enable a bird‟s eye view on events. However, each category can be designed in such a way as to change the degree of reach and interaction.
REACH High Exhibition Cultural Special Business Low
INTERACTION Low High
Competitive Charitable Artistic
Reach Interaction Matrix Amongst the various categories corporate interest have been concentrated on competitive events, especially so on cricket in India. Such events have a broad based character and
high media coverage. This implies high reach and added excitement through live coverage on various popular channels. Post-event benefits trough highlights aid in the event recall over and above the normal benefits that an event can offer. The fact that interaction is given short shrift is an anomaly that needs to be corrected. Competitive events are closely followed by events for artistic expression, then by exhibitions, special business events, cultural & charitable events in that order for popularity with event-savvy sponsors. STRAGEGIC ANALYSES
INTERNAL STRENGTHS WEAKNESSES
Utilizing company’s strengths to take maximum advantage of opportunity
Maximize Opportunities by minimizing weaknesses
Pre-Emptive Strategy Maximizing strengths and their usage to overcome threats
Minimizing both weaknesses and threats by considering options such as: Joint Ventures, Retrenchment, Liquidation, etc
Maintenance Strategy Arising from a situation of strength and favorable opportunities, the maintenance strategy provides reasons to carry out activities that maximize available advantages. This is the perfect position to be in. Beyond this, every activity gets focused on maintaining the winning edge and the lead over competitors. The event company here can well afford to be aggressive knowing very well that it has the relevant strengths to back its claim on the opportunity Developmental Strategy
To gin advantage of potential opportunities while not having sufficient strengths calls for gaining a winning edge by using tactical retreats where irrelevant yet not giving up. It requires passive and defensive strategy, which attacks relevant opportunities in such a way as to cover up on inherent weakness. Analogy here could be from the game of test cricket where a side that knows victory is impossible also knows that it can ward off a defeat by trying for a draw. This can be called a developmental strategy where one tries to make the most of the opportunity by not giving in to weakness. Pre-emptive Strategy This strategy is usually used by entrenched market leaders on new entrants on their turf. Potential threats are nipped in the bird by exercising the full power of the company‟s strength. This is a very powerful and aggressive strategy as it requires foresight to fully understand the threats looming on the horizon. Selecting which one to tackle requires careful study since some points of strength could get eroded if used unnecessarily. Survival Strategy This strategy is used to ensure that the company is alive for a battle on another day when it will have the requisite strengths to grab its share of opportunities in the market. This strategy gives license to take decisions like leasing one‟s soul to the devil if only with an intent to retrieve it later. In plain words, it allows one to make drastic decisions in the face of harsh environment. STRATEGIC ALTERNATIVES ARISING FROM COMPETITIVE ALANYSIS Further to the strategy from the environmental analysis a mapping of event concepts can be used as a variable component along with decisions on facing competition, which can lead to more detailed and in-depth strategic alternatives.
EVENT CONCEPTS USE EXISTING CREATE NEW
Manage critical success factors more effectively
Respond to new initiatives by competition with a similar move
AVOID HEAD-ON CONFLICT
Venture Strategy Accomplishment Strategy
Relative superiority Exploit competitor’s weakness Maximize user benefits by using path breaking, trend setting initiatives to take a lead vis-à-vis competition by being first in the market.
Sustenance Strategy This is a strategy to be used when faced with no options but to take on the adversary with the existing arsenal of event concepts that may be out dated or still current but nearing the end of its life cycle. It becomes essential that the event company manage its resources and advantages in terms of CSFs that have been identified with greater efficacy. Successful concepts need to be brushed up and revamped to meet customer expectations in the face of competitive offerings. Rebuttal Strategy If the competition forces new concepts first than the rebuttal strategy should be used. In this, the event company can launch its own new concepts of a similar vein and regain its dominant position by aggressively promoting the same as a better alternative. This way the education of the market about the new concept is left to the new competition and an advantage gained is that market reaction to certain new concepts is fore known. The disadvantage lies in the fact that the first mover advantage is lost. Accomplishment Strategy
This strategy is viable when an existing concept is doing better than any of the competitors‟ equivalent offering. This strategy, therefore, essentially says that stick to the winning concepts and exploit the fact that competition cannot offer a similar quality concept and thereby wants to avoid a head-on conflict by itself. The danger here is that competition may use any of the other strategic alternatives available to a challenger to combat the situation. Venture Strategy This strategy envisages making use of the first mover advantage by creating new concepts ahead of competition thereby creating niche markets. This may even involve a re-definition of market segmentation. By maximizing user benefits and creating path breaking trend setting concepts the event company positions itself to take a lead vis-à-vis competition by being first in the market. This is a double-edge strategy in that failure is as devastating as the benefits of a successful launch. STRATEGIC ALTERNATIVES ARISING FROM DEFINED OBJECTIVES CLIENT CONCEPT MODEL The above matrix provides options that event organizers have an offer in terms of concepts and their market. The basic strategic alternatives here revolve around whether the objective is to retain customers or market development. These objectives further lead to the strategic options of achieving them either to customization or new concept development. By offering new concepts to a existing customers, a strategy of increasing business from increasing clients can be discerned. Similarly by offering an existing event to a new client, a strategy of increasing productivity of the event concept can be followed.
EVENT CONCEPTS EXISTING NEW
INCREASE PRODUCTIVITY OF CLIENTS
INCREASE PRODUCTIVITY OF CONCEPTS
PREP MODEL This framework has its roots, in the fact that, events as a business proposition for corporatisation is relatively nascent in nature. Therefore, the concept of strategic perspective to growth through and along with clients is a major decision to be taken by an event agency having major growth plans. This model deals with the strategic options available by playing off objectives relating to market development against growth in competition.
CLIENTS EXISTING NEW
The above matrix provides the choices before the event company when it comes to a trade off between clients and competition in terms of assigning priorities in decision making. Predatorial Market Development Strategy If the development of new clients from existing competitors is the need of the situation then the event company would be adopting this strategy. This is essentially an offensive through focused strategy wherein clients of other event companies are targeted. Enrichment Strategy In a market situation where the event company is forced to compete fiercely for retaining its market this strategy is followed. It is used where the need to maintain an improve the quality of service becomes predominant. Retaliatory Strategy This is basically a defense mechanism wherein the event company tries to defend it self from preditorial strategies of essentially new entrants. This strategy involves taking action aimed at retaining its existing clientele and potential client base. Pro-active Strategy The event company here can explore new client bases and stretch the limit of its concepts across untried event categories. Every event category has its own special environmental and competitive structures. RISK VERSUS RETURN MATRIX
Time Pre-Planned Ad-hoe
Low Risk Assure d Returns (can charge extra since chances of failure are high) High Risk Assure d Returns to cover costs but lower cha nces of profit Very High Risk Very less time to ensure reach Cha nces of failure & loss are high
Type of Finance for Funds & Revenue
Partially Fully Fully Sponsored Ticketed Sponsored & Ticketed
Zero Risk Assure d Returns
Medium Risk Assure d Returns to cover costs + chances of loss are low High Risk Cha nces of high profits with e qua l chances of losses
The above matrix considers two of the most important risk factors as well as the degree to which it can affect the events company – Planning Lead Time and Type of Finance. Events based on time can be divided into pre-planned i.e., events carried out after thorough planning with enough time for taking conscious decisions and ad-hoc events i.e., those that are taken up on the spur of the moment. On the basis of finance, events can be fully sponsored, fully ticketed or partially ticketed and sponsored. Each decision carries with it an element of risk, the gradations of which can vary from zero risk to very high risk as shown.
CHAPTER-3 Critical Review Of Literature
CRITICAL REVIEW OF LITERATURE
EVENT MARKETING SURVEYS 2006
– conducted by
About This Study EventView, the annual and first-of-its-kind event marketing trends study for senior marketing executives, was originated in 2002 by The George P. Johnson Company. The MPI Foundation has co-sponsored this important research since 2003. Now in its Eighth year, EventView is the number-one published event marketing trends report globally and the longest-running study for the event marketing industry, providing the insight and guidance corporations and event marketing professionals within this field need to develop strategic marketing programs. Every Year, more than 942 senior executives in sales and marketing management positions from nine countries across North America, Europe and Asia Pacific were interviewed via a telephone survey with the goal of illuminating the value and role of events in the marketing mix as it compares to other elements in a marketer‟s arsenal. Interviewed participants were selected in industries including (but not limited to) automotive, technology, healthcare and finance with 45 percent representing companies with annual revenues in excess of $1 billion. The distribution among specific vertical industries and geographic regions. The margin of error is ±3 percent.
EVENT MARKETING SURVEY 2007
Historically, 49% of the respondents since EventView‟s inception, are optimistic about the future importance of event marketing Event marketing‟s share of the marketing budget is at an all time high at 27%
When budgets increase, event marketing gains the most in the marketing mix When marketing budgets decrease, event marketing and print advertising budgets are affected equally
Since 2004, event marketing has been considered by respondents to provide the greatest ROI among marketing channels and is perceived by this audience to provide a higher ROI than broadcast advertising, by a factor of five
The percentage of respondents who conduct post event measurement declined slightly from 2006
The percentage of the budget allocated to event measurement is at an all time high
Companies who measure are nearly 2 times more likely to expect increases in their event marketing budgets than those who don‟t measure
54% of respondents will transition their event marketing initiatives into experience marketing efforts within the next 12 months
25% of 2007 respondents report that procurement‟s influence on the selection of event marketing providers is moderate to high
34% of respondents will be implementing green initiatives within the next 12 months
EVENT MARKETING SURVEY 2008
Public perception of events is playing a crucial role, with even some cancellations being put down to how staging of an event would be perceived, rather then due to such issues as financial difficulties. Even when companies have big budgets, they are avoiding exotic overseas destinations Private sector events (for example parties and weddings) are still happening but on a smaller scale
Clients of those surveyed are looking at the financial stability of agencies, to ensure that the agencies themselves will still be around to deliver their events
The survey highlighted the opportunities afforded by favourable exchange rates,. Business is often not being confirmed until the last minute, creating contractual problems with venues and other suppliers, and often leading to a failure to pay invoices in a timely fashion. A need for tighter contractual agreements.
Demand for more creativity and added value on a lower budget More team events, but reducing the „WOW‟ element in events in favour of smaller fun events like paint-balling Budget cuts within the corporate hospitality industry, and tighter margins in a reducing market With too many briefs and not enough resources to respond to them, organisations have to turn away new business opportunities in some cases
Value is the most important factor at the moment within the industry
EVENT MARKETING SURVEY 2009
32% of respondents say they will transition from event marketing to experience marketing in the next 12 months; 28% already transitioned 61% of respondents plan on implementing or have already implemented green initiatives within the event function; 47% are doing so as a result of a corporate responsibility mandate and report that green accounts for 13% of their event budget 47% of respondents rank the influence of procurement in marketing decisions as low with 25% of respondents indicating that the role of procurement/purchasing is increasing at their organizations 15% of the overall corporate budget is dedicated to marketing with 27% of the average marketing budget spent on event marketing
43% of respondents indicate that event marketing is taken under consideration along with other mediums and 32% characterize events as a vital component of the marketing plan; 15% say events are a lead tactic
Event marketing (40%) and Web marketing (31%) are the first marketing channels to benefit from an increase in the overall marketing budget; Events (54%) and print advertising (50%) are the channels first affected by a decrease in the marketing budget
73% of respondents state that they engage in some form of post-event measurement with 6% of the event marketing budget spent on measurement activities
Among Global respondents, companies that measure event performance are nearly 43% more likely to expect increases in their marketing budget than those that do not measure
52% choose event marketing as the discipline that best accelerates and deepens relationships followed by public relations at 21% 30% of respondents choose event marketing as the marketing discipline that provides the greatest ROI followed by Web marketing at 21%
Today‟s business leaders have charged marketers to invest in areas that both drive revenue and build the brand – a challenging mandate as consumers and business buyers stretch out the purchase cycle, demand personalization and reject mass marketing. In light of these realities, what is most important in this pressure-filled environment are relationships. Based on trust and intimacy, personal affiliations with brands, products, services and fundamentally between the individuals behind them are catalysts to business growth. EventView 2007-09: Global indisputably confirms the live experience as the marketing channel that best accelerates and deepens relationships. Respondents also recognize faceto-face interaction as key to events‟ advantage in creating these relationships over other marketing disciplines.
But while EventView’s Research confirms event marketing‟s inherent ability to create top-line results, the data also reveals that the strategic value of events is not yet as fully understood or realized in the executive ranks at many organizations. Senior executives clearly believe that events provide sound ROI but it‟s up to event marketers to improve on this perception even further by ensuring executives‟ agreement on ROI methodology and communicating those measures in language that more effectively articulates the validity and impact of the metrics. Developing more efficient communication and measurement systems are thus the twin imperatives of today‟s marketer. Those who do so successfully will achieve greater success for themselves and their organization by becoming a force of profitable change.
CHAPTER-4 Research Methodology
In order to carry out the objectives, it was necessary to conduct a market research. In the whole process many tools relating to market research were used and conclusions on the basis of the analysis done were made. The output was taken out from the data that was collected in the research and meaningful results were formulated.
Market Research: It can be defined as an organized efforts done in order to gather information regarding market or customers. These are of two types:a) Quantitative Market Research b) Qualitative Market Research Quantitative Market Research: It can be defined as that form of market research in which quantitative techniques are applied to the field of marketing. In this form of social research method generally questionnaires are drafted and information is gathered on this basis. Marketers use the information so gathered to understand markets or customers. Qualitative Market Research: In this form of market research the data is obtained from a relatively small group of people and it is not analysed by using statistical tools. It is mostly used to define the hypothesis and define problem and is done before using quantitative research. In this segment of the project I have used quantitative research. The research was done using both primary data and secondary data. The primary data was collected through filling of questionnaires, whereas the secondary was collected through the study of the materials in the form of internet articles, journals and papers. Descriptive Research: Descriptive research has been used by me in this segment of project. Descriptive research can be defined as that form of research which describes the data and characteristics about the population or phenomenon to be studied. It also provides an insight into who, what, where and how. The data description is factual, accurate, and systematic. It is used when averages, frequencies and other statistical calculations are required. Questionnaires:
Questionnaire was used for collecting primary data. The questionnaire was constructed with close ended questions in which the respondent had to choose an option from among others as its answer. This form of questionnaire is called structured questionnaire. Tools Used: The data was collected in two manners. The primary data was collected through questionnaires, whereas secondary data was collected through the reading of journals, articles, books and papers. The primary data was analyzed using the software SPSS. The primary was analyzed using Cross Tabs and frequencies tables. It was depicted using bar charts. Research Design: Research design is the framework on the basis of which the whole market research is carried out. It provides details of procedures and methodology to be adopted, it provides as to what information is necessary is to be gathered into order to solve the market related problem of the organization. Methodology: a) Primary data was collected through questionnaires. A total of 200 people were asked to fill the questionnaires. b) The responses from the respondents were segregated on the basis of the objectives of the respective research. c) The data collected was analyzed and the results were gathered. d) The results were interpreted. e) The finding for the primary research was collated to draw results. f) The secondary data was collected through journals and newspapers. g) The journals were found and studied with the help of internet. h) The primary data and conclusion drawn from secondary data both were used for forming final result. i) A conclusion was drawn on the basis of the findings and interpretation. j) Recommendations were also provided.
CHAPTER - 5 Data Collection
It can be defined as the method in which individual observations are selected in order to acquire some knowledge about the population of concern especially for statistical purposes. Sampling Process: The sampling process contains of the following steps: a) Defining the Population for survey b) Specification of the Sampling Frame c) Specification of Sampling Method for selecting of items d) Determination of the Sample Size e) Implementation of the Sampling Plan f) Sampling and Data Collection g) Reviewing of the whole Sampling Process
Population Definition: It includes defining the population from which the sample is to be drawn. A population can be defined as that including all people or items with the characteristic one wishes to understand. It is necessary to define it because the sample is drawn for this population defined only. In this case a population of entire Delhi and NCR was taken. Sampling Frame: A sampling frame is one which has the property that we can identify every single element and include in our sample. A sampling frame could be anything from the telephone directory to the list of the people who watch cable in a certain locality. A sampling frame of South Delhi telephone directory was taken. Probability and Non Probability Sampling: Both the terms are defined one by one:-
Probability Sampling: It is that form of sampling in which every unit of the population has a chance to be selected in the sample and the probability can be accurately defined. Non Probability Sampling: It is that form of sampling in which some elements of the population does not have a chance of being selected in the sample. In this form of sampling the probability of selection cannot be accurately determined. In the sampling, the selection of elements is based on certain assumptions regarding the population of interest which forms the criteria for selection. Sampling Methods: There are many types of sampling methods which are available with a researcher. Any sampling method can be used either individually or in combination. The sampling method that was used by me in this project is as follows:-. Convenience Sampling: It is also known as grab or opportunity sampling. It is a form of non probability sampling. In this method of sampling, the sample is drawn from the population which is close to hand. In this method is a sample is selected because it is readily available and convenient. Application In Project: In the project, convenience sampling has been used. It has been used to understand the attributes of the buyers and also to understand the functionality of the sponsors at events. A sample of 200 was taken and a sample frame of South Delhi was taken.
CHAPTER - 6 Data Interpretation & Analysis
DATA INTERPRETATION AND ANALYSIS
1. Which of the following events do you prefer the most?
Interpretation: According to these findings; most people prefer live shows than any other type of event closely followed by trade fairs. Live shows are mostly entertainment shows such as rock shows and concerts.
2. Assuming you had a positive experience at an event, would you be more or less inclined to purchase a product or service of the sponsor’s after having participated in that event?
a) Product/service you have heard but not checked out yet More likely Less likely Neither more nor less
Interpretation: According to the findings; people are more inclined to try out products of sponsors that they have heard of but not checked out yet if they have had a good experience at the event. A crosstab result shows that mostly people with a family income in the range of Rs30000-50000 per month are more likely to experiment with these new products.
b) Product/service you have never heard of More likely Less likely
Neither more nor less
Interpretation: According to the findings; people are more inclined to try out products of sponsors that they never heard of if they have had a good experience at the event. But also a large chunk people are indifferent about such products. A crosstab result shows that mostly people with a family income in the range of Rs10000-50000 per month are more likely to experiment with these unheard products.
c) Product/service you already use More likely Less likely Neither more nor less
Interpretation: According to the findings; people are more inclined to continue with using the products of the sponsors they are customers of if they have a good experience at events sponsored by them. Very few people would actually change their existing use of the products if they enjoyed at such event.
3. What was it that got you to notice or participate in the event? a) It looked like fun b) I recognize the company/brand running the event c) Signs and Banners d) Somebody invited me to participate e) The crowd that was already taking part in the event f) Others
Gender * What was it that got you to notice or participate in the event Crosstabulation What was it that got you to notice or participate in the event Total
I recognize the company/brand running the It looked fun Gender Male Female Total 32 8 40 event 48 8 56 Signs and banners 0 24 24 Somebody invied me 24 8 32
The crowd was already taking part in the event 24 0 24 Others 16 8 24 144 56 200
Interpretation: According to the findings; the most people take part in an event being done by sponsors they know of and prefer, closely followed by events which look like fun. Mostly men are drawn towards events when they know the sponsors and brands in the event and women are mostly drawn towards event by interesting looking signs and banners. Men are lest affected by signs and banners and women by simply following the crowd.
4. Do you prefer open air events to closed? Always ------- sometimes ----- indifferent ----- rarely ----- never
Do you prefer open air events to closed * Gender Crosstabulation Count Gender Male Do you prefer open air events to Always closed sometimes Indifferent Rarely Never Total 40 32 24 48 0 144 Female 24 24 0 0 8 56 Total 64 56 24 48 8 200
Interpretation: According to the findings; Most people prefer open air events followed closely by people who enjoy open air events sometimes. Least number of respondents said they always like
closed venues. Though males were more inclined towards attending open air events rarely, females preferred open air event. 5. Do you believe the sponsor’s brand should be related to the event? a) Yes b) No c) Maybe
Interpretation: According to findings; most respondents said that the sponsor‟s brand should be related to the event. Very few believed that is not necessary for the sponsor‟s brand to be related to the event. This stat shows that sponsors should be a part of events having the same brand image as them or there would be brand dilution. 6. How long generally do you generally stay at an event?
a) 1-15 minutes b) 15-30 minutes c) over 30 minutes
Interpretation: According to the findings; Most people prefer to stay at events for over 30mins and least prefer to stay for less than 15mins. This thus means that in events sponsors get a lot of time to try and make an impression on the customers.
7. Which of the following is true? After leaving the event I understood the sponsor’s company/product… a) better b) same c) less
Interpretation: According to the findings; Maximum respondents believed that they understood the sponsor‟s product better whereas least number of respondents felt that they there understanding of the product decreased after attending the event.
8. On a scale of 1-5, 1 being lowest and 5 highest, how do the following parameters affect your decision to attend an event? Sponsors 1 Price of ticket 1 Location 1 2 3 4 5 2 3 4 5 2 3 4 5
Interpretation; According to the findings; people have a mixed response towards having sponsor‟s brand as a big factor as a decision making criteria in their attending the event. They mostly rate it at 3 and 5 thus saying its important but not substantially. Most respondent feel that price of tickets play a big role in decision making for attending the event. Most respondents rate it as 4 thus proving that price of ticket is a major influence on their decision. Location graph is rather evenly played out showing that people do consider the location of the event as a very important criteria in their decision.
9. What is your perception of benefits and drawbacks in terms of hiring an event management company?
According to the findings; since this was an open ended question the study of the questionnaire of respondents indicate that they feel the biggest benefit of hiring an event management company is their quality of work. Most common drawback that respondents point towards in hiring an event management company is that they feel that it would be too pricey and would increase the overall cost of the event substantially. 10. Which of these promotional elements do you feel catches your attention most? Rank from 1-5, 1 being highest and 5 lowest a) Hoardings b) Posters c) FM ads d) Newspaper and other published ads
e) T.V commercials
Interpretation; According to the findings; people have ranked the promotional elements that they feel are most effective in catching their attention, in the following manner Rank 1- T.V commercials Rank 2- Newspaper and other published ads Rank 3- FM ads
Rank 4- Posters Rank 5- Hoardings
11. Are you inclined to try sponsor’s products if they offer you trials? a) Yes b) No c) Sometimes
Interpretation: According to the findings; Most respondents are inclined to try sponsor‟s products if they offer trials and least are not inclined to try sponsor‟s products f they offer a trial.
12. Rank the following on a scale of 1-3, 1 being the lowest and 3 highest, which position of the sponsor’s logo on a hoarding catches the maximum attention. a) Top row b) Middle row c) Bottom row
Interpretation: According to the findings; respondents have ranked the place on which position of the sponsor‟s logo on a hoarding catches the maximum attention in the following manner Rank 1- Middle Row Rank 2- Top Row Rank 3- Bottom Row
13. Do you think event management as a profession/business will be a success in your city? a) Yes b) No
Interpretation: According to the findings; Most respondents feel that Event management as a profession would be a success in their city. Mostly men felt that this would be a success but fmale were divide equally in favour and against favour.
14. Do you believe an established brand needs to sponsor events for promotions? Always ------- sometimes ----- indifferent ----- rarely ----- never
Interpretation: According to the findings; Most respondents felt that event established brands needed to sponsor and promote their products in events, where as least respondents felt that established brands never need to sponsor events.
15. Does viewing of products and logos in an event help you in the re-callability of that brand in the future? a) Yes b) No c) Sometimes
Interpretation: According to the findings; Most respondents felt that viewing of products and logos in events help in future re-callability of that brand. Very few respondents felt that it didn‟t help in re-callability.
CHAPTER - 7 Conclusion & Recommendation
CONCLUSION AND RECCOMENDATION
The following conclusion has been drawn from the analysis of above data and respective recommendations are given to sponsors for using events more effectively: Most people prefer attending live shows than any other event. Thus Live events such as rock shows and concerts, are the best events for sponsors and event marketers to invest in as they have the largest appeal. If people have a good experience at an event ; they are more inclined to try out products of sponsor they have heard of but not checked out yet, they are also more likely to check out products of sponsors they have never heard of. Thus events are an ideal platform for any sponsor to showcase their new products also create a hype about products yet to be launched. Also firms newly entering the market should go in for sponsoring events or event marketing as it would allow them to get a direct interaction with the customers and also the prospect customers would e inclined to try their products. A large section of people attend events when they are ale to recognize the big brands associated with the event as this raises the expectation of the people from the event. This is good for smaller sponsors as they should look to invest in events with whom bigger brands are being attached as it brings in a large footfall count. People are mostly drawn toward open air events than closed air venues. Thus an open air event is a good bet for sponsors to invest in. Most people feel that there must be a relation between the sponsors brand and the event. A sponsor must invest in events that suits his company/brand image. Sponsors should not randomly invest in any events as this would lead to a brand dilution in the eyes of the consumers. Most people feel that they understand the sponsor‟s product and company better after attending he event. Thus event are a perfect platform for companies to build
up a perception in the mind of the consumers. Thus it‟s a great brand building platform. Most people felt that hiring an event management company would lead to better quality of work and a more enjoyable event. Thus companies should hire professional event management companies for carrying out there events. T.V commercials are the most effective promotional tools for promoting events closely followed by newspaper ads and published ads and Fm ads. Thus sponsors should be more focused on investing their amount for promotional purpose on these tools. More t.v and newspaper ads should be given as they have a large reach. Consumers are more inclined to try out products if trials are offered by the sponsors. Thus a separate stall or area must be got by sponsors where in they can offer he consumers in attendance trials of the products. This increases their reliability in the eyes of the consumers. Most people first notice the middle row of sponsors on hoardings and ads followed by the top and finally the bottom row. Thus sponsors should try an go in for display of there logo and brands in the centre of hoardings and ads. As the amount of sponsorship decreases the top row and the bottom row can be occupied respectively. Most people believe that sponsors logos and brands in events helps in brand recall in the mind of consumers. This is the most important reason for any company to either invest in events as sponsors or go for event marketing. Since the consumers now days have a plethora of options, nothing is more important than brand recall. Events have now become larger than ever. The appeal of events has crossed multiple boundaries and events now are considered to be one the most bankable way to promote products and brands. People are now going to more and more events and this must be capitalized on by all firms. Since prospects are able to retain in there mind the events in which they enjoyed they are more easily able to recall the brands sponsoring it. Firms
must look to sponsor more events and also launch new products through events as well as opt for event marketing for promotion of there products. Events such as concerts and sports events are becoming a regular norm and are getting immense media coverage in all forms. If a firm needs to make its consumers aware of the products, nothing is better than sponsoring an event. Also holding events by the name of the products, i.e event marketing, is a highly advisable way of launching or hyping a product. This method allows greater access to the consumers and also allows for better image building opportunity. Marketers should try to get places as lead sponsors as this allows them more visibility and better lo and branding places. This all cumulatively helps in brand and product recall which in today‟s date of competition is the most crucial aspect.
In the research conducted all the due efforts are made with full effort and diligence but still their may be some error due to the following reasons:
Human behavior is too complex to determine. So the information disclosed by them may not be very accurate.
This research is conducted on a very small sample size, so it might be possible that the information given by such respondents may not match with the reply of the whole public of Ncr & Delhi.
There was a time constraint while conducting the report.
It might be possible that the answers given by the respondents are full of biasness.
Some of the respondents were not willing to reply the questions.
As the questionnaire is in English language, some respondents found it difficult to understand it, even many refused.
Due to time constraint all the region in DELHI and NCR are not covered.