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INTRODUCTION TO EVENTS

Definition of the word Event:

" The use of unconventional media / method involving people witnessing a


happening within a capsule of time, for the purpose of communication of a
message."

Definition of Event Management

“Event management is the planning and management of an event, project or


activity.”

Event management as the name suggests, refers to planning, creatively organizing and
executing an event. ‘Event Management’, 15yrs ago, this phrase would have meant
nothing in the Indian corporate world. Today, it conjures up the image of celebrities
packaged with glamour and pomp in a gala event that is meticulously planned and slickly
turned out. Event management in India, which was born somewhere in mid 1980s has
grown into a highly professional and tech-savvy industry over the years. In 2003, the
industry managed over 1,000 events, including 22 international events.

The stakes have never been higher. Sponsors are savvier. Audiences are more
demanding. And, event producers and managers are held accountable by their clients to
meet their financial and marketing goals more than even before.

Event has grown in to full grown industry, an exciting new hybrid conceived through
the convergence of marketing, promotion, entertainment and the creative arts. For
corporations, events have become an essential part of marketing mix, touching
consumers emotionally and with life-long impact in ways that traditional advertising,
publicity and promotion cannot. Socially, events balance the powerful and rapid
advancement of home-based entertainment alternatives, which tend to isolate us,
bringing us closer together to celebrate and commemorate. Events have become
important as they allow the customers to get a basic feel of the product. This is the
basic difference between events and advertising. The shortcoming of advertising has let
to the emergence of events and today it has become a budding industry, a crowd puller
and a concept with which everyone can identify.

"An event is something that happens, not just exists - somebody has to
make it happen. Successful events only come about through action,
some individual or group of individuals getting things done."

A COMPREHENSIVE NEW DEFINITION

Events
Reach Live
interact
ion

Right
communicatio Live Desired
n with the With Creates
client Audience Impact

An event is a live multimedia package carried out with preconceived concept, customized
or modified to achieve the clients objectives 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 above figure we can infer that an event is a package so organized so as to
provide reach and live interaction between the target audience and the client to achieve
the desired impact. The population of the target audience that the event is exposed to is
called the reach of the event. The live interaction process facilitates communication
between the clients and the audience.

EVENT MANAGEMENT as opposed to EVENT ORGANISING: -

Although the terms are used synonymously there is a difference between the
two. Event management starts from the germination between the two. Event
management starts from the germination of an idea and includes organizing Events. An
event manager ideates on the type of event he would like to have and the audience to
whom such an event should be addressed. He conceptualizes the whole event including
the themes and the interactive response with his audience.He weighs the benefits likely
to accrue against the cost outlay and visualizes the future impact of such an event and
once he finds his perspective in place he goes ahead to organize the event.
Organization of an event, strictly speaking, is co-related with the logistics.
This results in selection of an Event management company, the date, the venue, the
audience, the theme, the design, the décor and a hundred other things, which will lead
to the success of an EVENT.

In General Management terminology the “EVENT MANAGER” is the


“THINKER”. He plans, he visualizes, he decides, he delegates and ultimately he
controls. The “EVENT Organizer” is the “DOER”. He knows what is to be done and
finds ways and means on how it could be done in the best possible manner.

Professional Event Management Companies do the planning and organizing,


leaving strategic thought to their clients. They do advise on themes, conceptualization
and organization but restrict their initiatives as far as corporate strategy is concerned.

EVENT MANAGEMENT AS A CARRIER

“Today, Event Management has emerged as one of the fastest growing industries in
India, and a career in event management is not only lucrative but also glamorous
and challenging. Events are now acknowledged as a tremendous image multiplier
option leading to greater development. As a result, opening brighter and prospective
career opportunities for the new age career seekers.”

There's no business like show business!! Which is why event management has emerged
as one of the hottest careers today. Events have emerged as a hot new corporate
communication device for marketers in the cluttered-for-choice marketplace and
consequently event management has become one of the most sought after professions in
India.

In the new millennium, events are now acknowledged as a tremendous image-multi- plier
option leading to greater brand development and thereby enhanced brand equity. Industry
insiders say that this industry is growing at a tremendous rate and could easily be a Rs.
14,000 crore industry by the turn of 2006.

Event Management involves studying the intricacies of the brand, identifying the target
audience, devising the event concept, before getting down to actually executing the
modalities of the proposed event. Events have become a critical function of an overall
brand building exercise and combined with advertising help in an integrated marketing
effort. This industry is bound to witness exponential growth once more corporates realise
the potency of this tool. Realizing this, this industry has started attracting young people
with creative minds and has started offering them a lucrative carrier because it is a
budding industry in which if one performs up to the mark, no one can stop success
coming to him. Many institutions offer courses related to events. There are wesites like
www.zeelearn.com that provide online course for event management and the students are
given a certificate after the completion of the course.

To sum up, the vast opportunities for growth and exposure in this industry, is an ideal
platform for learning - the whole process of managing an event brings one closer to the
brand or product and consequently, to the industry itself. It offers the ideal atmosphere
for those with a desire to exercise their inter-personal and people management skills as
one gets to meet and work with people from various walks of professional life. It is a
profession where adherence to perfection, meeting deadlines on time and producing an
exceptional show within a stipulated budget is of paramount importance. However, one
needs to keep in mind that this profession calls for hard work, professionalism and
meticulous attention to detail. This industry has mammoth scope for young and ambitious
entrepreneurs, and is best suited to those who swear by challenge and change!

THE SCENARIO OF EVENT INDUSTRY IN INDIA

Event Management is a multi-crore industry with mega shows and events hosted
regularly. In India even personal functions like marriages and birthday parties have
become important social matters, and have to be professionally managed. The growth of
sophisticated and mega companies have brought forth a spurt of meetings, seminars,
exhibitions, conferences, product launches with everything being a matter of class and
style. Then comes the innumerable celebrity shows, international artists shows, shows for
a cause, road shows, competitions, that India has seen of late.

More than 200 companies have forayed into events. The early 90s has seen events spend
at a mere 20 crores but now it has increased to over 500 crores. Growth is therefore 100%
annually. The FICCI has estimated event management to be a 3500 crore industry by the
end of the financial year 2006. The organized industry has grown from around Rs 350
crores during 2002 to be a 580 crore (US$129 mn) industry in 2003. The live
entertainment and event management segment has demonstrated an overall growth over:
60%. As this segment, which is still in its infancy, becomes an increasingly important
part of the media pie, it is expected to demonstrate a growth of 30% pa over the next five
years, in effect, more than doubling its size to approximately Rs 1443 crore (US$321 mn)
by 2008. And that’s just the part, which can be measured and estimated. There are around
10-15 large players with revenues around or over Rs 20 crores each and many small
players- around 70% of the segment remains unorganized.

Indeed corporate India has adopted this strategic 'hit-between-the-eyes' communication


tool with a vengeance. Be it a music concert, a cricket match, a film premiere, a nightclub
promo exercise, a product launch (a car, personal products, liqour brand), a social cause -
every conceivable occasion is looked upon as an endeavour towards crafting corporate
identities.

Of late, a string of hi-profile events like The Rolling Stones Concert, Femina Miss India,
the MTV Music Awards, The Cricket World Cup 2003, to events like the Michael
Jackson extravaganza, and Yanni Live At The Taj Mahal, have lent a new dimension to
event management. These events involved intricate logistics control, high-level of
technical finesse and slick promotional chutzpah. Many specialised teams lights, stage,
supplies, stage management worked with clock- work synchronicity under a single
supervisory head to harmonise all the processes leading to the actual event. But
surprisingly, research showed that there was no formalized education to teach event
management and Companies found their executives not up to the mark to handle events.
It was not so easy to train because event management includes organizational skills,
technical knowledge, P.R., marketing, advertising, catering, logistics, decor, glamour
identity, human relations, study of law and licenses, risk managements, budgeting, study
of allied media like television and other media and several other areas. But like other
nations, India has also its event industry and statistics prove its success in our country.

India has just hosted the first Afro Asian Games. Soon, it is going to host the
Commonwealth Games in the year 2010, an event whose magnitude is much greater than
that of Afro Asian Games and India is also making a bid to host the 2016 Olympic
Games in India. The event company Wizcraft will manage Commonwealth Games.
What does this mean to the Event Industry?
It means jobs. It means shortage of people with the skills required to execute an event of
the enormity

Many institutions like National Institute of Event Management(NIEM) and Event


Management Development Institute(EMDI) have started courses related to event
management. The students of these institutes get the required field experience of the
industry before even completing the coursework as the event companies hire these
students for logistics and execution. Many event companies have also developed in our
country. The prominient ones are:
• Wizcraft International Entertainment Private Limited
• 360 degrees
• Indiatimes
• Encompass Events Private Limited
• Percept D’Mark(Percept Holding Company Private Limited)
• Showtimes Events Private Limited.
Need for events:

Events are fast becoming an integral part of the marketing strategy of companies. Events
score over conventional media in their ability to reach out to the core target in several
ways, sponsors get exclusive coverage during events and get a huge captive audience to
watch the brand advertising. There is always an opportunity to introduce product trial so
that product attributes can be easily conveyed to the target. In comparison to these
benefits the cost of sponsorship is reasonably small. Hence for these reasons sponsorship
of events has taken favor with companies in a big way
Television channels are looking for driver programmes to boost viewership and events
offer a unique genre of programming. Television channels can either commission their
own events or buy the telecast rights of events from event managers. In both the cases the
industry stands to earn profits and gain revenues.
Commercial exploitation of events in the form of merchandising, webcasting over the
internet can also further lead to quantum growth benefits. On account of these statistics it
is expected that the industry would grow at a rate of 30 % annually and reach a figure of
Rs.5.6 billion by the year 2006
Events have mainly developed because of the loopholes experienced in advertising a
product. no doubt advertising is important, but certain objectives and benefits can only be
fulfilled by organizing events.
EVENTS AND PROMOS v/s ADVERTISING:

EVENTS ADVERTISING

Events are interactive One way communication


They almost always initiate a dialogue. The The communication is always one way, and
audience is in front of you to create your static and it is assumed that the viewer is
brand communication and tell your story. watching which could or could not be the
case always.

Leads to immediate short term gains and Long term brand building
purchases Advertising is more focused on evolving
Exposure to product information and brands and building awareness
attributes leads to interest in purchase and
hence sale of product.

Targeted communication Advertising is more mass based


Event communication is for a fixed set of communication
audiences and caters to a very specific
group.

Tangible value Intangible


For every rupee spent the marketer can Most of the statistics available are based on
valuate the feedback and response he guess-estimates and estimation of figures,
receives from the consumer. which are based on extrapolated results of
research done on a small sample size of
consumer.
Segmentation of Indian Event Industry

Segment wise analysis of organised & unorganised


business of EVENTS
Corporate

Sports
15%
5% 35%
Arts & Theatre

20%
20% 5% Felicitation &
Contests

Festivals

Personal

SOURCE: (INDUSTRY ESTIMATES, ERNST AND YOUNG RESEARCH)


TYPES OF EVENTS

SEGMENTATION OF EVENT INDUSTRY

SUB-SEGMENT GENRE EXAMPLES


CORPORATE Product launches/ Ad Asia
Promotions Bacardi
Conferences/conventions Christian Dior
Shareholders meetings Auto Expo, Pragati Maidan
Employee get-togethers Innova Launch
Exhibitions/trade fairs Furniture Trade Fairs.
Road shows
Press conferences
Annual parties
Felicitative/Competitive Awards Femina Miss India
Contests/Talent searches FE Business Traveller Awards
Beauty/Personality pageants MTV Lycra Awards
CNBC Autocar Awards
IIFA Awards
Indian Idol
Arts Film Premiers Bollywood shows
Theatre English, Hindi, Gujarati,
Musical nites Bengali, Marathi, etc plays.
Celebrity performances Bryan Adams Concert
Dance Lata Mangeshkar Concert
Fashion shows Milan Fashion Show
Sports Sports events (individual and Mumbai Marathon
combimed) Wrestling Championships
World Cup Cricket
Wimbledon
Ranjit Trophy
Olympics
Festivals Government sponsored Kumbh Mela
Corporate sponsored Rajasthan Desert Festival
Goa Carnival
Festival of Kerela
Cultural programmes(dandiya
raas)
Food festivals
Personal/Social Birthday parties Religious Discources
Weddings and related College Events
functions Laxmi Mittal’s daughter’s
General parties (Vanisha Mittal) wedding
Opening ceremony functions Educational workshops
Family/Friends get togethers
Fund Raisers/Charity events
Political Political convections
Political rallies/ Meetings
Election campaigns

Broadly event can be classified as corporate events and live entertainment events.

Corporate events are commissioned by corporate for specific purposes such as dealers’
conference, or a happening such as the India visit of Indira Nooyi, worldwide chief of
PepsiCo. Corporate events account for the lion’s share of the total number of events
managed in the country.

Live entertainment events are stage shows or concerts by international artists


(international events) or Indian artists.
These could be:
• Film based
• Music- based
• Fashion-based
• Sports- based events.
For instance, The Manikchand Filmfare Awards is a film-based event, a concert by
ghazal maestro Pankaj Udhas or by the international rock group Scorpions would be a
music – based event. Milan and MTV Lycra Awards are fashion based. Olympics and
Wimbledon are the examples of sports-based live entertainment events. Typically, for a
live entertainment event, there is more than one sponsor as well as entry fee for the
audience. This category of events, albeit small, is growing rapidly in size and popularity.
Unlike a corporate event, a live entertainment event is usually conceptualized, planned
and executed by the event manager. Therefore, the Intellectual Property Rights (IPR) also
vests with the event manager. However, a company/television broadcaster can also
commission an event. In such circumstances, the company/television broadcaster
sponsors the entire show and retains the IPR. The event manager is paid a management
fee and a production fee as well if it also produces the event for television. Certain events
are created and marketed by the event manager as a branded property. These events are
called branded events. They are held periodically and require substantial investment in
terms of infrastructure and marketing. For instance, the Femina Miss India contest is
branded event produced by Times Entertainment and held annually. IIFA awards are a
brand of the event company Wizcraft.

BENEFITS OF EVENTS

1.Building brands and creating brand awareness:

Basically brand awareness means promoting your brand and increasing awareness about
the brand(s). It can also be termed as a brand building process. Benefits out of events vary
from company to company. Thus, if a new company is trying to enter the existing market, it
has to first look at building the brand name of the product rather than looking at the profit
ratios. Advertising helps to a great extent in building the brand name but if the company
wants masses and potential buyers to know about their product and give them a basic feel
of their product, then events have to be resorted to. Product launches are a very famous
sub-segment of corporate events. If product launches are planned properly and conducted
in accordance with the standards of the company, they can help in penetrating the market
and creating striking awareness and desire for the product. For e.g., the launch of INNOVA
was a mega event. Aamir Khan is the brand ambassador of Innova. The event was also
telecasted and there were various promotional schemes attached like -a day holiday with
Aamir Khan- for a few lucky winners, which attracted the crowd, increased the sales and
created a basic awareness about the automobile being launched.
2. Corporate Image
It goes the other way for the companies that are already into business for a period of time.
For these companies, events come to the rescue for maintaining their brand image as well
as boosting their sales. It also keeps the brand name in the minds of the people for a longer
time. Similarly, the companies which are here and in business for ages and who are cashing
on their profits have also in someway or the other reached that level with the help of
different events to maintain as well as transform it into a brand name. Hence, careful
scrutinisation of the above helps us to learn that most of the brand building as well as the
brand awareness for the companies is done by events from small promotions to big and
international events. Events can be successfully used to support, build or change a desired
company’s image, shape or reinforce the public's perception of a company or brand's
attributes. Events also help in building as well as changing the brand image of a given
company. For example, the company has already introduced a product, but there is some
defect in it then ultimately the company has to stop the production. Hence it has to relaunch
the same product but emphasizing on the new characteristics. Also care has to be taken that
the earlier defects are removed from the minds of the masses. The event management
company plays a vital role in bringing back the goodwill and corporate image of the
company. Corporate meetings are an ideal example of events creating corporate image. The
way the meetings are conducted, the etiquettes followed, the event flow along with the
level of professionalism maintained creates an image of the company in the minds of its
shareholders and customers.

3. Media Coverage
Guaranteed and potential publicity, helps in projecting right corporate image of the
company, helps media get a touch feel experience of the brand and its products. In any
field media plays a very important role in bringing the particular product or any tangible
thing to the market. We can assume that media can make or break the whole image of the
product in the market. Thus wherever there is an event happening be it a promotion, a
product launch or a large scale event, media forms a part of that whole process thus
giving the event a good amount of publicity and also making the event and the product or
the company a huge success. Media usually has a guaranteed form of response as
nowadays even a small issue translates into a national issue, thanks to the media. High
scale events always attract media. Media can also be invited to cover the events. Events
being a fresh concept and a complete crowd puller ensure media coverage. From the
inception to the completion, an event is scrutinized by the media. Media talks about the
making of an event an eventually when it is over, media critically rates it. Media is the
largest form of communication; be it print, television or radio. For e.g. Filmfare awards.
It has been around 50 yrs since these awards are celebrated and talked about. Even when
they were not telecasted, there were press conferences and press releases, which kept this
event, a most famous one among the clutter. And since it is live telecasted, it is going on
increasing the TRPs of the channel. From the rehearsals to the decorations and stars’
interviews, everything is published to attract crowd. Hence, events being a crowd puller,
media willingly talks about it and helps in its publicity. Also, events enjoy a favorable
position in the minds of people and therefore, media itself takes the initiative to publicize
and talk about it.

4. Net footage
Net footage means to make an association with a website on the Internet or create a website
for your company. This refers to the Internet form of publicity. Any event ranging from a
small event to a big event gets the benefit of coverage on the net. The creative team of any
event company always keeps in mind the benefits the event will gain if covered on the net.
Internet has a vast reach as it is global and can give information to any person residing in
any country about the event. Again, Internet tries to cover all the happenings in the world
and therefore, information about even a small event like a college festival is available on
the net. ANIFEST INDIA, an initiative from THE ANIMATION SOCIETY OF INDIA
(TASI) and ASIFA INDIA is a two-day festival for the whole of animation industry. It has
workshops on animation with the best of speakers coming in from around the globe and
also a post festival bash. It is generally for the animation industry and hence every aspect of
it from planning the design of the event, the setup and the venue, the cost of the passes
everything is posted and sold on the net as it is to computers, their means of
communication is Internet. Post event views, suggestions the need to take Anifest to greater
heights; the polling is done through the net. Events today have become very interesting and
therefore surely find a place in the affairs listed on the Net.

5. Building Corporate Hospitality


Entertain key & potential clients, b2b marketing, building goodwill amongst potential
clients, reinforcing faith in distribution partners, forging alliances with potential investors,
motivating existing workforce or rewarding them forms a part of building corporate
hospitality. Events are also held to strengthen the ties with the associates or say the people
or the clients related to the particular corporate. These days the corporate companies try to
define the word professionalism by the means of collecting data and then trying to build a
relationship with that particular client or the business associates of the company. Thus
holding an event by means of throwing a party for a product launch or while releasing a
particular design of clothes, they even arrange for a fashion show, which can also be
termed as indirect means of impact on the consumers or the associates. Events always come
handy for such companies. Many companies also have a different ways of holding
conventions for its employees. In this way if the employees are being given hospitality it in
turn helps in making the company more strong and thus resulting in good sales as well as
good and profitable figures in the balance sheets. For example, the TATA group every year
has its business convention at different locations namely Goa, Ooty, etc. to refresh its
employees and thus also help the employees to know about the future prospects of the sub
companies they belong to. The event company Wizcraft handles this event. It prepares an
event flow for the entire holiday and makes sure the employees are entertained effectively.
This reflects the efforts put in by the employees for the company and results into having a
satisfied customer base and goodwill of the company. Hence events are also important to
build a good corporate hospitality among everyone who is directly or indirectly related to
the particular corporate.

6. Niche Audience Targeting


Niche targeting is more cost effective and accurate than conventional advertising, which
can get diluted. It is targeting a particular group of people who actually are your target
audience with all the resources you have and so it is cost effective. Other forms of
promoting a product like advertising are meant for a wider segment and therefore have to
be general. But events help in concentrating on a few people and therefore, the impact is
high and the promotions effective. For example, Milan Fashion Show. It aims at
showcasing the designs of famous designers to the elite class of the society. Designers and
attendees from different countries participate in this event. Hence the show is performed in
front of the target, reducing the cost and creating a better impact.

7. Product Showcase and merchandising


Events create opportunity to showcase existing products and test new products. Events help
companies from launching their new product, reviving the existing product as well as
keeping their old products and their brand name alive in the market. Events provide that
platform to the companies for showcasing their products professionally. Event companies
work from budgeting the event to designing the publicity stunts and designing its
execution. In all, except the manufacturing of the product, everything from launching and
making it public with the help of media, every responsibility is taken by the event
management company once they are given the rights to that and that too for a nominal
fee .In today’s time every company wants its product, be it a cheap one or a expensive
product, to have a professional launch and showcase and hence they mostly outsource the
work to event companies for the same. Even from the point of view of creating
merchandise opportunities, event management companies play a very vital role in
sculpturing or resculpturing the product of the company. Events provide opportunity for on
the spot audience gratification. Events gives the product many merchandise opportunities
in the form of selling, cross selling, selling the product to a particular set of audience etc.
The response generated from the audience is prompt. The satisfaction can be measured by
the TG audience attending or taking part in that particular event. The company comes to
know their views generated and suggestions coming in through the medium of events. The
corporates hire event companies to arrange for events for their associates or their dealers or
the distributors, channel partners to get a view about their product thus also increasing the
merchandise opportunities for their products.
8. Differentiation
Events help create perception about the product. It helps in differentiating a company’s
products from the competitors.. It also helps in differentiating the particular product from
the different products available in the market, which is again a good sign for that particular
company. Once after studying the entire market the executives of the event company sit
together and decide on creating something unique for bringing that product to the market in
the form of launching it. The creative team of the event company plays a very vital role in
designing the whole product in such a way that it automatically differentiates itself from
the products of its competitors. For example, if D’DMAS has launched a particular range
of diamond sets then its competitor say TANISHQ makes some few changes to its diamond
line jewellery and will expect the rest from the event company to whom they outsource the
job for making it stand apart from their competitor. Thus from giving a product the much
needed hype to differentiating it from their competitor everything is taken care by the event
management company and that too professionally.

9.Impact the Bottom Line


Impacting the Bottom Line means driving sales through contests, special schemes, product
awareness, etc. These days one may come across many corporates trying to advertise by the
means of sending smses, e-mails etc. There are different companies involved to carry out
these type of activities for an organization. The event companies come into picture as they
help in the initial tie-ups between the service provider companies and the clients as in the
corporates. Then the things get transferred to the event companies in the form of
advertising, designing the publicity stunts, etc. These usually boosts a companies sales as
this is a way of promoting a product and a very effective and cost cutting one, which is
actually not done by any ad agency but by different Event companies. Keeping some
quizzes and holding contests are all the indirect means of impacting the customers.
Sometimes they even give out prizes in the form of tickets for the premier of the show of
the movie being promoted or say a chance to meet the celebrities which is again a very
much effective way of spreading the awareness of the particular product or the company
itself. Nowadays, event companies for example 360degrees which is a known event
management company and which also is a wing of the times of India group has created its
own service provider namely 8888 services which caters to all such above needs of the
clients from holding contests and providing certain schemes, thus promoting the particular
product or the brand of the client. It also has tie-ups with many NGO’S for many social
services for improving our society. Hence there are several benefits of the above services if
carried out by a professionally managed event management company.

10. Helps circumvent Restrictions:

Events help circumvent restrictions on conventional means of advertising. Especially for


the Tobacco and Liquor Brands, where conventional advertising is banned, surrogate
advertising in the form of events and promotion can help in creating positive equity for the
brand and create perceptions in the minds of consumers about the product
As the government has banned any sort of advertising or promoting for all the liquor as
well as the tobacco brands event companies come in the form of rescue for all the above
line of companies. There are no restrictions on any events as such. Thus companies, which
manufacture such taboo products, turn to events for promoting their brand. For example
Manikchand’s brand name was actively involved in the filmfare awards, which is done by
360 degrees every year. Association with such a big event helped the manikchand group to
boost its sales as well as it gave a whole different image to it’s brand as they were
associated with one of the biggest film awards in the country. Just barely three months
back, there was a BACARDI blast which took place somewhere in the suburbs and was
done by the event management company, FOUNTAINHEAD. It attracted lot of customers
and party people and was an excellent way of promoting the brand. Thus, brands which
cannot be directly advertised take the help of events to publicize their products on a larger
scale and thus increasing their profits.

This is also called a s the TINA Factor.


TINA Factor: (there is no alternative)
Helps brands evolve and generate awareness about themselves in situations where public
advertising is not permitted, by creating subtle brand presence, e.g. McDowell’s Derby,
Classic Golf, Smirnoff Fashion awards, Bacardi Blast weekends, etc. Usually these type of
events are huge hits these days as people who are the viewers are mostly the young
working people who are willing to spend on these products and brands if they are get their
share of enjoyment and it is also a stress reliever for them. Thus for such companies,
arranging launches and private parties which is also only by invitation, events prove very
much beneficial and promising.

11.Training

Training is another key initiative, which is required to improve the quality of output. A
number of institutes like the Event Management Development Institute (EMDI), National
Institute of Event Management (NIEM), Mudra institute of communication etc provide part
time and full-length courses in event management. Fresh talent is generally absorbed
directly into industry.

KEY TRENDS IN THE INDUSTRY

The trends of international events is fast catching on


The year 2001-featured 20 international events in addition to the 2 annual events by the
times group – The Fa Femina Miss India contest and The Manikchand Filmfare Awards
ceremony. There were several blockbuster concerts by top international groups – Bryan
Adams, Deep Purple, Scorpions Acoustica, Venga Boys and M C Hammer. The year
2000 featured 20 international events including several events on account of Millennium
year effect. Accordingly, there is a trend of an increasing number of international events
in India.

Multinational companies have made popular artists their brand ambassadors


Multinational companies have realized the growing popularity of live entertainment and
artists with the masses. As a result, they are using such artists as ambassadors to promote
their brands. For instance, Pepsi has appointed Adnan Sami as its brand ambassador
while Coke has done the same with Aamir Khan.

Live sporting events are also becoming big budget entertainment events
Live events (besides cricket) such as tennis championships, golf championships are
increasingly catching the fancy of sports lovers in the country. Corporate sponsors are
also spending huge sums of money on such events. The year 2001 saw three major events
– the Goldfalke ATP Tour World Tennis Championship at Chennai (billings
approximately Rs. 80mn), the Gold flake ATP Tour World Doubles Tennis
Championship at Bangalore (billings approximately Rs 65mn) and the Hero Honda
championship at Delhi (billings approximately Rs 15mn)

The trend of single city international events has been broken


Concerts by international artists are now held in multiple cities as opposed to just one city
earlier. For instance, the VengaBoys India Tour 2001 was a series of concerts across
seven cities in India –Ahmedabad, Calcutta, Chandigarh, Chennai, Cochin, Hyderabad,
and Luck now – and Colombo in Sri Lanka. The Bryan Adams concert was held at
Bangalore and Mumbai. This trend can grow rapidly provided obstacles such as high
levels of entertainment tax and cumbersome approval procedures are removed in many
states.

The practice of ticketing for events has been firmly established


The free launch for consumers of live entertainment is over and ticketing as a practice has
been established. The encouraging fact is that events, especially international events,
were huge crowd pullers despite pricing of tickets. Cases in evidence were the sold out
shows of Bryan Adams, the concert of Scorpions Acoustica (audience of 25,000) and
Deep Purple (audience of over 30,000). This clearly brings out the value that Indians are
attaching to quality live entertainment.
The Indians event management industry moved a step towards organized activity
The industry, which has grown over the years in a rather disorganized manner and still
largely comprises non-corporate entities, instituted the Event management Association of
India under the aegis of the Federation of Indian Chambers of Commerce and Industry
(FICCI). With this, the industry has taken the first step towards organized activity. The
industry forum should assist the players in addressing and resolving industry issues that
are stumbling blocks to growth.

Single window for central government clearances for inbound foreign artists has
been created
Managing an international event has been made significantly easier with the Government
of India (GOI) entrusting the Reserve Bank of India (RBI) with the role of providing a
single window for all the central government clearances necessary for a foreign artist or
group to travel to and perform in India. However the processing of applications has been
centralized at RBI’s Headquarters in Mumbai.

Key Issues & Challenges

Besides generating revenues directly through sponsorships and ticket sales, an event also
has a strong ripple effect on the economy. In case of a visiting foreign artist, Government
of India receives income tax revenues from the artist. The state government receives
entertainment tax from the sale of tickets. The city municipality receives revenue in the
form of hire charges for the stadium or ground where the event is held. The event
involves a large number of people traveling to the venue. For instance, people from all
over the country traveled to Bangalore and Mumbai for the Bryan Adams concert.
Therefore, such an event gives an immense boost to the local industry such as hotels,
restaurants and transport as well as national industries such as airline and railways.
Despite its revenue potential and spin off benefits, the industry is facing several issues
that are impeding its growth. These are discussed below:
Entertainment tax
The entertainment industry has to pay two main taxes namely entertainment and service
taxes. The entertainment tax in India is much higher than in other Asian countries and
varies from state to state. It varies from 10% to 50%. The industry has appealed to the
government to levy a uniform entertainment duty across India. This is perhaps the biggest
hurdle the industry is facing currently. While event managers wish to hold events in more
cities, the high rates of entertainment tax on ticket sales in certain states are forcing them
to avoid such states. For instance, according to industry sources, Mumbai has become
quite unfavorable for events owing to a tax rate of 49%. On the other hand, Bangalore has
become a preferred venue primarily because of a low tax of 10%.

A high tax rate makes events unviable and therefore, states that charge high rates will
lose out on events, and potential tax revenues from such events. In contrast, states that
charge lower rates would attract more events and benefit from higher tax revenues.
Hence, it is but clear that government needs to reduce their tax rates in several states in
order to become favorable destinations for events.

Entertainment tax for live events in certain states


State Tax rate (%)
Assam 130
Haryana 50
Maharashtra 49
Kerala 33
Uttar Pradesh 23
West Bengal 17
Karnataka 10
Tamil Nadu Nil
Andhra Pradesh Nil
Gujrat Nil
(Source: Industry)

Entertainment Tax For Live Events in Certain States

140 130

120

100
Tax Rate (%)

80

60 50 49

40 33
23
17
20 10
0 0 0
0
Uttar Pradesh
Maharashtra

West Bengal
Haryana

Karnataka

Tamil Nadu

Pradesh

Gujurat
Kerala
Assam

Andhra
Global Comparison
In developed countries in the west i.e. the USA, Canada and European countries, live
entertainment is a very organized and advanced industry. Most individual artists/
entertainment troupes perform anywhere between 60 to 80 shows in these markets. For
example, Depeche Mode, in the year 2000 from June 15 to November 05, performed 81
shows between Europe and North America, with total tickets sales of US $ 1.08mn.
Besides music, there are also events for children like the Barney Circus tour, The Walt
Disney Circus Tour, Magic Shows and a variety of other live entertainment events. On an
average in a year, there are about 180 live entertainment shows in these markets playing
at multiple venues, cities and countries. The live entertainment business is also closely
linked to the record music labels, which work in tandem to promote and sell the music
albums of popular artists. Besides western countries, the two other significantly
established markets are Japan and Australia, and fast catching up with them are
Singapore, Hong Kong and Bangkok. Hence, in comparison to other countries, India lags
behind in organizing and planning events.

Withholding tax on foreign artists’ remuneration


As per existing regulation, the event manager is required to deduct tax at the rate of
30.6% from the remuneration paid to a foreign artist. In most cases, artists require event
managers to bear this tax burden, as a result of which events often become a non-starter.
Given this scenario, India has the potential to host many more international events every
year provided Government of India reduces the withholding tax rate to a more reasonable
level. More events would mean higher tax revenues for the Government despite the
reduction in tax rate. Simultaneously, it would also give a great fillip to the live
entertainment business in India.

Regulatory clearances for events


There are several clearances required at the central level (for an international event) and
the state level, for organizing an event. While the single window clearance facility with
RBI has vastly facilitated central clearances, decentralization would speed up the
approval process. At the local level, according to industry, on an average, 18 different
approvals are required from various agencies for staging an event. State governments
need to realize that they stand to gain substantially (in terms of higher entertainment tax
revenues) if they make it easy and simple for event managers. A significant reason for
Bangalore attracting many events is the helpful attitude adopted by the State government
and city authorities towards the event management industry.

Clearly the need of the hour is rationalization of taxes to a more manageable level of
around 10%-15% across all states.

Service tax
The rate now proposed by the Budget is to be increased to 12 per cent from 10 per cent
apart from a 2 per cent education cess on the tax element according to the 2006 finance
bill. This will have a detrimental effect on industry. Even if the industry passes the tax on
to the clients, from the viewpoint of the client this would only desist clients from
spending on events.

Lack of Infrastructure

There is a complete lack of infrastructure in India for staging live events. Globally, events
are held in arenas. India still has to rely on open grounds, sports stadiums and university
auditoriums. Industry experts believe that there is a need for large, international quality
facilities in all major cities in India, supported by a network of hotels and domestic
transport. This is because the current infrastructure in the form of event venues of
international quality and size is not adequate. Mumbai’s largest auditorium, the 2800
seater Shanmukhananda Hall is generally booked for over 95% of the year. Also the duty
on imports of equipment pertaining to events is still charged at normal rates, there is no
special subsidy or waiver for the import of world lass equipment to support events in
India.

Corporatisation

Corporatisation is on the increase, as more and more clients source services from large
companies who provide better quality end-to-end solutions using experts. The event
management industry still comprises of many non corporate entities. Corporatisation will
eventually result in increased accountability, ability to benchmark performance and more
accurate measurement of industry size and growth. Corporatisation also assists in
obtaining finance, a key requirement for specialized players with high technology and
equipment costs, as well as for promoter driven events. For this to happen, the industry
needs to restructure itself into corporate entities, implement sound trade and accounting
practices and implement corporate governance as a code of conduct. Having highlighted
the issues and possible solutions, the potential for growth within the industry is immense.

Ideation

The use and re-use of event formats are not only diluting their impact but also confusing
customers. The best example of this is the recent plethora of Auto Events. CNBC
Autocar, ICICI Overdrive, Business Standard Motoring and BBC Wheels all held car and
bike awards for the year 2003-04, within 2 months gap. As a result, all of these could not
create a deep impact on the clients as well as the customers of the automobile industry as
it became very stereotype for them. There is a need to create newer, innovative event
formats to capture target audience’s attention. Differentiation is the key. Innovative
ideation also has a large export potential.

Quality of services

Quality of event execution remains poor in the main, as it is seen in the form of shabby
sets, poor equipment and inadequate facilities provided during events – what event
managers attribute to the “chalta hai!” attitude. Specialization is clearly the way forward.
Specialization is clearly proportional to the quality of the event, which in turn provides
more option to the customer and even reduces cost. It also results in the availability of
better event technology (lights, mechanics, fireworks etc), an arena which India is now
catching up with the West. However, the lack of adequate number of specialists in many
areas of event management still needs to b addressed. Hence, achieving and maintaining
a substantial quality of service is an issue which the industry needs to consider.

Promoter driven events

With the expected increase in the number of promotion driven events a few years down
the line (where ticketing revenues are larger than sponsorship revenues) risk will devolve
on the event manager. Correspondingly, the focus will be on the project management to
ensure promoter’s funds are deployed in correct manner, expenses are authorized and
timeless are adhered to.

Desired customer experience

Given the large Indian population and growing per capita income, the demand for event
remains robust. The key driver for success is the ability to provide the desired experience
to customers so that their objectives are met. This can be achieved through ideation,
careful planning and detailed budgeting. The flexibility to change event formats, create
new types of events and execute them within the limitations of available infrastructure
and resources (electricity, security, regulations etc.) are key to ensure growth in the
segment.

KEY ELEMENTS OF EVENTS

Organizer

Event Target
Venue
Audience

Media Client
A CASE EXAMPLE

Event: L’Oreal femina elite model look 2004

Event Infrastructure:
• Core concept: Search for a new top class model through a contest and pageant
interspersed with entertainment.
• Core people: Organizers, Sponsorers and Participants i.e. models taking part in
the competition and other performers during entertainment slots such as well
known classical musicians Pt Shiv Kumar Sharma, Rahul Kumar Sharma
accompanied by Ustad Shafat Ali Khan and popular music by Sunidhi Chavhan
and Stereo Nation.
• Core Talent: Physical Looks and Proportion
• Core Structure: Annual event of Beauty pageant

Event organizers:
Femina with
• Fountain ahead: Event support
• Banyan Tree: Arrangements for classical music performance
• Choreography and direction: Hemant Trivedi with assistance from Noyonika
Chatterjee
• Sets: Omung Kumar Bhandula from Opus construction

Venue
• Shoot location: The Retreat, Marve
• Official Host: Taj Mahal Hotel
Media
• Pre-event: Magazines and newspapers (The Times of India) to inform about
event and call for enteries with entry forms in them.
• Electronic Media: TV and FM radio to inform target audience about event
coverage, date and time.
• During event: Live coverage on DD2 for widest coverage
• Post-event: Re-telecast on Star Plus.
• Interviews and appearances of winner on shows sponsored by L’Oreal on the
electronic media (Internet).
• Reports of the event in the print media.

Clients
• Main Sponsor: L’Oreal
• Gift Sponsors: Onida, Siemens, Baush and Lomb, Global Telesystems,
Akbarallys, Department store, Trussadi, Catwalk Shoes, Estelle, The Orchids,
Lakme, Sony Music
• Communication Convience: Gloal Telesystems.
• Beverages: Coca-Cola

Target Audience
The target is the entire family especially the young people or people with a younger
mindset or people who are young at heart. It also targets the fashion designers and show
coordinators who are in constant search for models. Also, the socialites in Mumbai and
Delhi always keep a check on the winners to check out the new entrants to their party life.

OVERALL PLANNING STRUCTURE

The first and foremost thing to do while planning an event is to know about the client's
expectations. When a client first approaches an Event Manager for assigning a task, he
sits with him and finds out what he wants and how he wants it. It should be kept in mind
the fact that the client has a very hazy idea of what he wants. He expects the event
manager to change that hazy idea into a reality. So the manager first needs to strike a
good rapport with him. Once the manager understands what the client expects, he can
start putting his inputs. Since the manager is a professional event planner the client is
bound to believe that the manager has a better knowledge about these things and will
respect his judgment.

For planning the event the basic steps that are involved are:
1.Analyzing the event

The planning process begins with a detailed analysis of the event itself. The questions
that begin this process are what is the main reason behind having this event? What does
the event hope to accomplish? How will the event be financed?

Numerous questions are placed in front of the event manager. That is how a strong
foundation is established. If too few questions are asked, an event can suffer from a lack
of focus and direction. These questions are asked mainly to identify the event.

To identify the event, manager first needs to identify the type of event to be planned,
whether it is going to be a product launch or a conference or a wedding or some other
event. Then he sits and drafts a rough script of the budget, target audience, promotional
campaigns, publicity and other miscellaneous arrangements.

The manager needs to ask himself six basic questions:

5W’s – 1H =How to produce consistently effective events.

Why?

The first step is to ask “WHY” he should hold this EVENT. There must be
not one but a series of compelling reasons that confirm the importance and viability of
holding the event. Is there any need to hold such an event or it is only for the purpose of
entertaining people and making profits. Will this event prove beneficial for the revenue
of the country and to the people as a whole or will it mint only profits to the organizers
and sponsorers. A valid reason to conduct an event is very important as it lays the base
for marketing and promotional strategies.

Who?

The second step is to ask “WHO” will be the stakeholders for this event. Remember
stakeholders are both internal and external parties. Internal stakeholders may be the board
of director’s, committee member’s, and staff, elected leaders or others. External
stakeholders may be media, politicians, bureaucrats, attendees or other who will be
investing in your event. The manager needs to think who will be present at the event. i.e.,
who are its target audience. To which age group, income group, gender and profession do
they belong to. He has to find out who are the people who will be coming for the event.
This is very important because the whole event rests on the kind of people who are going
to be invited. Conducting solid research will help you determine the each of this parties
and better help you decide “WHO” this event is being produced for.

What?

The next question to be asked is what kind of an event one is organizing. The co-
coordinator needs to analyse exactly what he wants to convey through a particular event
and on the basis of his mission decide the category in which the event falls. The event can
be a:

• Wedding
• Party
• Conference.
• Product launch
• Concert
• Others

Depending on the demand of the situation and nature of the event, the manager should
check whether his plans for the event match his client’s requirements and then proceed
with the actual execution of the event.

Where?
An important factor while planning an event is the ‘place’ the ‘venue’ where the event
will be held. Again the venue depends on the type of the event being hosted. For a
wedding or a party, a party hall or open ground will be compatible whereas for a product
launch, a conference room of a Hotel or a conference of the company launching the
product would be appropriate. Once you have selected a site, your work becomes either
easier or more challenging. Therefore, this decision must be made as early as possible as
it effects many other decisions.

When?

The next step is to determine “WHEN” this event is should be held. Here you have to
decide on the dates. The time frame selected for different events will be different. For
organizing a show for children, the best period is to conduct the event during their
summer vacations. For weddings, the months of may and December are auspicious
whereas certain moths are inauspicious. Musical concerts can be held any time but care
should be taken that they do not co-incide with major festivals. Whereas fashion shows
are normally held prior to major festivals and seasonal changes to promote the
collection designed for the upcoming festival or season. One should ask the question if
the research through evaluation time frame is appropriate for the size of this event. If
this window of time is not appropriate you may need to rethink your plans and either
shift the dates or streamline your operations.
“WHEN” and “WHERE” of events are interdependent. First the manager tries to fix the
venue according to the time period decided. But if the appropriate venue is not
available at that time, the organizers will have to make changes in the time period. But
if changes cannot be made, then they will have to compromise on the venue and go for
the next best one. In India, due to poor infrastructure, generally the dates are adjusted
according to the availability of the venue.

How?
If the manager decides to go ahead, he should ask himself several ‘how’ questions to
complete the objective of the event. He should decide upon how long the event will last.
For how many days the venue will have to be booked? How many months before the
planning and execution work should start? How many hours do they need to put daily to
achieve the target? How will the event be promoted and marketed? How will the
audience be seated? How much money will be allocated for each job? ,etc.
The manager needs to be clear regarding these questions while planning the event and
then proceed with the actual execution of the event.

Keep in mind that during the planning stage there are many options and hurdles to
anticipate. Some things increase complexity tenfold and others simplify by an equal
amount. A party in the hotel, for example is always simpler to arrange than a party in a
warehouse of distant field with no power, no restrooms, and no kitchen. That is not to say
that the event manager shouldn’t have an off-site party, but the details should be
considered in the planning stage. In the same vein, the site is often selected before the
program has been set and the event manager may have to anticipate a problem fitting the
program into the available space.

2.Assembling The Event Management Team

The next important stage of the planning process is assembling the team. Broadly
speaking, the team should consist of decision makers and implementers. Decision makers
are the people who define the parameters and are ultimately responsible for the success or
failure of the event. Implementers are those who do everything from negotiating contracts
to inviting speakers to making sure that the right speaker is in the right room and that the
microphone works.
The core group on an event on a big scale should comprise the following positions:
• Event Chairperson
• Public Relations head
• Finance head
• Production head
• Mailing List head
• Marketing head
• Decoration head
• Logistics/Arrangements head
• Food and Beverage head
• Invitation and Programme head
• Entertainment head
• Volunteer head
• Technical head
• Charity Liason head (if needed)

More specially, the planning team will probably include people or committees with the
following functions and responsibilities:

• Event coordinator

A good coordinator is an energetic, conscientious, organized, responsible person and has


good contacts and manages people well.
His main functions are:
 He acts as a team leader for the event
 Schedules event team core committee meeting
 Negotiates and recommends contracts
 Solicits bids from suppliers and hires and supervises supplier
 Prepares and recommends budgets and monitors expenses throughout the planning
process
 Recommends policies and procedures
 Supervises registration
 Follows up with team members on the progress made and overall coordination of
efforts and activities involved with putting on an event
 Prepares personnel schedules for on site activities
 Making sure that everything is done, whether this means delegating to a
responsible person or stepping in to fill in the gap.

• Decision makers

Decision makers may include the organization’s president, CEO, executive director,
chairman of the board, corporate officer, and certain departmental heads. They sit
together, conduct brainstorming and come out with crucial decisions relating to even a
minute issue while planning the event. Decision makers are the true event managers as
the rest of the group, who executive the tasks are the event organizers. Their
responsibility is up to making the plans and assigning the tasks. The rest of the work is
handled by the different organizers. The functions of a decision maker are:
 Collecting the facts and guidelines of the event from the client
 Designing the event flow
 Preparing a marketing and promotional strategy
 Preparing the budget for the event
 Selecting people who will be involved in the execution of the event. The decision
makers generally select the heads and other team members are selected by the
respective heads.
 Decide the venue, caterers, decorators and other technicians involved in staging
the event.
• Technical staff

Technical production has always been the ‘what’s that’ factor for event managers.
Knowledge of technical production has so far been a domain of a few and very few have
tried to dare and ‘know it all’. Various tasks requiring technical expertise may be
assigned to in house personnel or to subcontractors. It is easy to hire a production or a
technical manager and rely on his expertise to deliver services. But if you do not have the
technical knowledge at all, you cannot tell if it is good or bad. Hence, it is essential to
have an in-house technical team or atleast the decision makers should have a little
technical knowledge. The responsibilities and functions of a good technical head are:
 To have a detailed insight into technical gear, knowledge of the different
applications of the gear, how to distinguish gear and order the right equipment for
the right event.
 Selecting technicians as per the show and budgetary requirements of the client.
 Having a thorough knowledge of the show requirements and look and feel that is
required for the show, the design of the set, the seating plan of the audience and
the format of the show(whether it is for television or a closed audience or indoor or
outdoor).
 To check whether the lights, music systems, audiovisuals, laser, etc equipments
work properly and are well co-coordinated.
• Support personnel

Support personnel are the clerical staff, which though do not have the authority but have
many tasks to accomplish. These include clerks, receptionist, person handling computer
work, etc.
Members of the clerical support staff handle:
 Typing and computer data entry,
 Make copies and maintain files,
 Process incoming and outgoing mails,
 Stuff attendee packets;
 They keep daily activity logs for registration, expenses and income,
 They direct incoming calls;
 They follow up on requests for brochures and answer routine questions such as
dates and costs.

3.Developing record keeping systems

Often, the event planner becomes the central coordinator of all information. Therefore
record keeping systems are essential to organize, control and monitor activities. The
organizational system he sets up must include a planning schedule. Deadlines forms and
checklists to expedite the process and capture the details in a structured, usable quickly
retrievable manner. The system’s documents become the files and records he will need
for reporting, evaluating and planning for future events.

4.Establishing policies and procedures

Another important planning issue has to do with establishing policies and procedures in
the early stage. The key to effective management is deciding the rules up front and
advising the people they affect. Simple things such as registration cutoff dates,
administrative penalties for cancellation, payment and reimbursement procedures for
speakers, to name a few need to be established and communicated or event coordinators
will find themselves continually answering the same question and mediating disputes.

5.Preparing a planning schedule and a proposed outlay


A successful event coordinator must have many attributes, but two important
characteristics are good organizational skills and attention to detail. A key tool that will
help in this regard is the planning schedule.

The planning schedule is a detailed list of all the required tasks and steps, the required
completion date, and the person, department, or committee responsible for each. To meet
this a cost sheet will have to e prepared to ascertain the estimated cost of the event. One
major question would be whether the execution would be through an internal event
management team or whether the services of professional Event Managers would be
required. In many cases, the allocation of responsibilities is worked out between the
internal event team and the External Managers. This keeps the event cohesive as routine
tasks are executed by the internal team and the external and stage management aspects
are organized by Event Managers who have more knowledge and experience in the Event
business. The event manager should prepare a plan comprising all these details and keep
it handy. This schedule will work as a guide for all the members and all of them have to
adhere to the guidelines to ensure the success of the event. The importance of having all
the planning issues covered is that, by anticipating problems, special needs, and hidden
costs, the manger can be calm during the storm of the event. If he/she always asks “what
is the worst that can happen?” and then have a solution ready, they will have a reservoir
of strategies to be used at a moments notice, no matter how serious the crisis.

The Budget

The event manager cannot have a successful planning structure without a budget and
priorities for how the money will be spent. Financial decisions affect every area of the
event and must be established early in the process and monitored on a regular basis.
A budget is a statement of income and expenditure that has been allocated under a set of
headings, for a period of time. Budgets are a clear way of identifying and allocating funds
and communicating important financial information. They can also be used as a basis for
evaluation and to help future planning.

The budget represents the action plan that each successful event manager must carefully
develop. Budget preparation is probably the most challenging part in financial
management since the entire preparation is usually based on limited information or
assumptions. There are stories of failed event managers or event management companies
because while they may have had an innovative idea or great vision, they often failed at
the “bottom-line”. Budgeting is a critical issue in any aspect of event planning.

Preparing a budget is part of the initial planning stage. A budget includes projected
revenue and expenditure from which an estimate of the net profit (or sometimes the net
loss) from the proposed event can be ascertained. Forming a budget begins with the
costing of essentials, including the allocation pf staff to the planning and of staging of the
conference. Then there is accommodation, transportation, catering and so on. A budget is
a plan based on accurate quotes from all contractors and suppliers and careful research to
ensure that no expenses have been overlooked. It provides guidelines for approving
expenditure and ensuring that the financial aspects of the event remain on track. The
budget is a part of the event proposal or the basis of the quote by the event management
company to the client. The budget as a document is an important planning tool, but the
true value is in the degree to which the manager uses it and in the accuracy and
thoughtfulness of the preparation process.
A budget represents the income and expenses of an organization or the individual event.
An event budget is based on the following factors:
1. Marketing projections and estimates
2. The general history of previous identical or similar events
3. The general economy and the forecasts given by the economists.
4. The income and expenses reasonably expected to arise with the resources
available.

Preparing a budget:
While preparing a budget a manager needs to include every possible income or
expenditure he can think of. If the manager has historical data from a similar event then
he is really lucky because data from a previous experience can give him an idea of
previous revenues and expenses. He should not try and map out the budget in a single
sitting, but rather plan out a few sessions so that he can do a thorough job. The more
meticulous he is, the more accurate will be the end results.

Income categories for an event:

Due to the wide range of events within the event management profession, it is diicult to
list categorically every type of income. However, there are some general items that most
budgets include:
• Advertising revenues
• Concession sales
• Registration fees
• Ticket sales
• Sponsorship fees
• Exhibit or exposition booth rental fees
• Donations
• Sponsorship in kind
• Grants and contracts
• Merchandised sales
• Vendor commissions (hotels)
• Interest Income from Investments

OVERALL SIZE AND SHAPE

The size of the live entertainment segment can be measured in terms of total billing for
the events managed i.e. sponsorship fees, tickets sales revenue and sales of various rights
associated with the event content such as telecast rights, music and video rights, internet
rights and merchandise rights.

Sponsorship fees: On an average, there are three sponsors for an event – one main
sponsor and the two co-sponsors. The total sponsorship fees ranges between Rs. 10mn
and Rs 20mn for an international event, and between Rs. 2.5mn and Rs. 5mn for a
domestic event.

Ticket sales revenue: This revenue source has picked up substantially over the last year.
Currently, approximately 25,000 tickets are sold on an average in an international event.
Ticket sales revenue has ranged between Rs 3.2mn for the Venga Boys event to Rs 24mn
for the recently held show of Bryan Adams.

Sale of telecast rights to television broadcasters: event managers have not


commercially exploited this source of revenue so far. There have been only some stray
deals involving sale of telecast rights, for instance DNA networks has sold about 3
properties to B4U for approximately Rs 4.5mn.

Sale of merchandise rights: In case of concerts by popular artist or groups or popular


sporting events, significant revenue can be earned through the sale of event-related
merchandise such as clothing, etc. The event manager can sell rights to merchandisers for
such activities. However this is not a significant source of revenue at present.

In 2001, the industry managed approximately 1,000 live entertainment events, including
22 international events. According to industry sources, the total billings for the year are
estimated at Rs. 1.5bn, with domestic events accounting for Rs. 0.9bn and international
event and a domestic event is as under:

Revenue profile for international and domestic events (average)


Item International event Domestic event
Sponsorship fees 30% 80%
Ticket sales revenue 70% 20%
(Source: Industry)

Revenue Profile for International and Domestic


Events (average)

80

60
Sponsorship
40
Fees
20 Ticket Sales
Revenue
0
International Domestic
Event Event

Expenses:

The income comes from one or two doors, but the expenses can leak out of many doors!
Expenses can be fixed, variable, indirect , direct or hidden. Developing solid, predictable
expense categories is critical to sound financial management. These expense items often
come from historical data or by comparing your event to others of similar size and scope.
The general expense item for most events is as follows:
Advertising Audiovisual equipment Car rentals and petrol
rental and labor
Awards and recognition Insurance Legal counsel
Lighting equipment rental Technical labor Local, state, provincial and
federal taxes
Photography + Video Proceedings editing, design Postage
and printing
Brochure and other Consultants Décor
collateral
design/printing/mailing
Entertainment Food and Beverage Complimentary
registrations/ admission
Registration contract labor Registration material Research
Signs Site office furniture rentals Site office supplies
Telephone expenses Sound equipment rentals Speaker’s fees + Travel
Volunteers’ fees Public relations Guest transportation
Material shipping/freight Staff salaries Walkie-talkies
fees
Overtime charges Venue rent Security
Generators Communication (onsite, Miscellaneous
green rooms, entrance, etc.)

In terms of cost, artists’ remuneration accounts for 40% of the costs and production
expenses such as erection costs of the stage, lights and sound, and operating expenses
such as travel and stay expenses of the troupe, freights expenses, etc. account for the
balance. This cost profile is the same for domestic event as well as an international event.
Cost profile for international and domestic events (average)
International event Domestic event
Artists’ remuneration 40% 60%
Prodn and operation cost 60% 40%

Cost Profile for an International Event

n
Prod &
Operation
Cost Artists'
Remuneration

Cost Profile for an Domestic Event

n Artists'
Prod &
Remuneration
Operation
Cost

After evaluating expenses, the event coordinator will have several options to choose from
in each and every expense items. The important ones with available options and their
respective costs are:

Venue

Some of the venue providers in the major cities of India and their charges are as follows:
Mumbai MMRDA Ground Rs.2 – 2.5 Lakhs/day

Andheri Sports Complex Rs.1,75,000/day

NSC Rs.1,00,000/day

Hyderabad Shiparamam Rs.25,000 – 30,000/day

Ramoji Film City Rs.30,000-35,000/day

Pune Durgam Cheruvu Rs.15,000/day

B J Medical Ground Rs.1,00,000/day

S.S.P.M.S Ground Rs.50,000/day

Agricultural College Ground Rs.50,000/day

Banglore Palace Ground Rs.1,00,000/day

Speed Zone Rs.50,000/day

Webs Ground Rs. 50,000/day

These rates are for the main day of the event. For construction period, the cost for
Mumbai venues is Es.35, 000 - Rs.50, 000 per day. Also an amount of Rs.1, 00,000 –
Rs.2, 00,000 has to be paid as deposit.

Security:

Most of the event managers outsource the security for the event and the celebrities to
professional companies which specialize in providing such security. On an everage these
companies charge Rs. 1000 per security guard provided by them. In a big event like an
Award Ceremony, approximately 30 such guard are required whike during press releases
or conferences 5-10 guards re required.
Following are some of the companies that specialize in security for events:
• TOPS Security
• Group 4
• Marshall Security Services
• Guard Well Security Services and so on.

Sound/ Lights:

The cost of sound and light totally depends on the requirement. Two similar events can
have huge differences in their sound and light costs. Generally event managers first fix a
budget as to how much they want to spend on their sound and light and then determine
what all they can get in that budgeted amount.

Big Show (3,000+audience) Small Show (300-500 people approximately)


Open Value Closed Value
Rs. 50,000 – Rs.5,00,000 + Transport Rs. 20,000 – Rs. 1,50,000 + Transport

Permission:

The cost of aquiring permissions differs from state to state. Legally it takes somewhere
around Rs.10,000 to obtain all the permissions for an outdoor event. But there is so much
of bribing for such things that one can end up spending lakhs of rupees depending on his
contacts and negotiating skills.

Advertising

Print

Hoardings

Generally the booking for hoardings is done for a period of 15 days to 25 days. The cost
of hoardings primarily depends on the location of the hoarding. The price based on
location and size would vary from Rs. 40,000 to Rs. 15,00,000 for a period of 25 days.
Buses
In Bombay the cost is approximately Rs.20,000 per bus per month (excluding repainting
if the contents need to be changed). In most other cities it is anywhere between Rs. 5,000
to Rs. 10,000.
Radio:

Advertising on Radio is measured in spots. The spots are generally 10/15/20/25 seconds
and so on. The cost of a 10 second spot ranges from 700 – 2,200, depending on the
popularity of the radio station and of course the volume of business that the client gives
and the client’s negotiating skills.
Public Relations:

Some event companies hire PR agencies to get their PR in place. Such agencies generally
charge around Rs. 25,000 for a single event.
Performers:

There are agents who get performers to perform for an event. They charge either for the
performer or a total for the performer as well as the band. These costs do not include the
air fare and thehotel stay of the performers.
The charges of some Indian performers are as follows:

For a 90 minute performance:


KayKay : Rs. 2,50,000
Shaan : Rs. 4,50,000
Sunidhi Chauhan : Rs. 3,00,000
Jagjit Singh : Rs. 5,00,000
Pankaj Udhas : Rs. 3,00,000

For one item in an Event (e.g. Priety Zinta’s performance in Star Screen Awards)

Shahrukh Khan : Rs. 12,00,000


Aishwarya Rai : Rs. 10,00,000
Saif Ali Khan : Rs. 10,00,000
Priety Zinta : Rs. 10,00,000

Hypothetical Event Control Sheet


Costs Head of Units Cost/uni Total Sponsored Net Responsibility Phone
ex
pe
ns
es
Venue 3 1,00,000 3,00,00 0 3,00,00 Ajay 982xxx

Artists 3 50,000 1,50,00 0 1,50,00 Vijay 982xxx

Branding 10 10,000 1,00,00 0 1,00,00 Priti 982xxx

Travel 5 3,000 15,000 15,000 0 Faroukh 982xxx

Food 200 100 20,000 0 20,000 Deepa 982xxx

Sound 1 1,00.000 1,00,00 0 1,00,00 Sanjay 982xxx

Lights 1 50,000 50,000 0 50,000 Anand 982xxx

Accommodation 10 3,000 30,000 15,000 15,000 Philip 982xxx

Total Cost 7,65,00 30,000 7,35,00

Revenues Title Sponsor 2,00,000

Associate 0 Jimmy 982xxx


Sp
on
sor
Associate 0 Rita 982xxx
Sp
on
sor
(2)
Ticket Sales 25,000 Michael 982xxx

Total Revenues 7,65,00 2,25,000 5,40,00


The above sheet in a hypothetical Excel Sheet, namely the Event Control Sheet. It is
filled with the various heads of expense as the event may require. The last
row shows the total cost. As with most events today, some of the costs may
get offset by a service sponsor and that reflects in the sheet so that the
manager has a clear idea of the profitability ratio. After looking up at the
costs and the sponsors who offset specific costs, we need to take revenues
into account. For the sake of this exercise, I have taken sponsorships and
ticket sales as the two sources of revenue. It is therefore clear that the
project needs another Rs. 5,40,000 to break even. As we keep on updating
the sheet, we will come to know how much the gap is and will have to
strategise as to how to bridge it. Without the Responsibility and Phone
columns it is a fairly efficient cost-control sheet, but to make it an “Event
control sheet” with the addition of just two columns – Responsibility and
Phone. Now we have an document that can control an entire event. If the
person in charge is absent for any reason, anyone else can take over just by
accessing the Excel Sheet!
Marketing of Events

Marketing deals with identifying and meeting human and social needs. One of the
shortest definitions of marketing is “meeting needs profitability”. Marketing is typically
seen as the task of creating, promoting, and delivering goods and services to consumers
and business. Marketers are skilled in stimulating demand for a company’s products, but
this is too limited a view of the tasks marketers performs. Just as production and logistics
professionals are responsible for supply management, marketers are responsible for
demand management.
Events have emerged because of the need of marketers. Before, advertisement and word-
of-mouth were the tools which were commonly used by marketers to
promote the products and services. But by observing the customers,
marketers felt that there was a need to provide the customers the real
experience, feel of the product before they could buy it. The marketers
wanted immediate feedback from the customers and a platform where two-
way communication between the customers and the marketers was possible.
Also, advertising is not a focused medium. A medium was sought after
which would be helpful in dealing with the target market directly. Because
of all these needs, marketers took resort to events and since then event
management has become a booming industry and has reached the most
preferred and attractive position in marketing of products and services.
Hence we can say:
“Event Marketing was developed to provide managers with practical direction in
planning and implementing marketing and sponsorships.”

An event is the reflection of the corporate entity. It is part of the direct


marketing the corporate has programmed. It gives direct access to the target market
which it needs to address be it a sales conference, a dealers convention, a live
performance, a fund raiser, a religious function, a road show or any other event.

An event gives the corporate a focus on the right audience and keeps in
making the audience aware of the policies, programs, the marketing of ideas to this
target group. There is direct exchange of information between the corporate and the
target audience. It creates a bond between the management and the audience for whom
the event has been organized.

Event marketing is fast emerging as a great promotional catalyst compared to traditional


marketing communication tools. Because of wide spread clutter, escalating media costs
and lack of guaranteed measurable media tools a sense of disillusionment has been
created in the minds of marketers.
Philip Kotler describes Events as occurrences designed to communicate particular
messages to a target audience.

Event marketing allows a marketer to break clutter and target a focused audience by
creating an image through association with a particular event while reinforcing product or
service and driving sales.
In 2007, Event marketing is projected to grow and nearly quadruple the amount that the
companies spent on event sponsorships in 1988. Sports sponsorship accounts for two-
thirds of the total sponsorship spending with the remaining event categories accounting
for ten percent or less.
Clearly, event marketing has rapidly become a significant element within the marketing
mix. Its strategic value enables marketers to communicate with consumers in a personal
and relevant manner to fully "experience" their brands. It also provides a framework that
can support a number of corporate, brands and trade objectives.
Generally speaking, sponsored events fall into five major categories: sports,
entrainments, fairs & festivals, the arts, and cause-related. Events (properties) are sold to
corporations (sponsors) by a variety of concerns that own and / or represent the events.
Depending on the event, these might include one or more of the following:
• Right holders
• Advertising and event marketing agencies
• Media entities
• Event promoters

On the basis of audience participation and sponsor's objectives, events can be classified
into Direct and Indirect events. Events like exhibitions, trade fairs, dealer meets,
conferences where the audiences attending have a direct bearing on the objectives of the
promoters are direct events, Events where participating audiences not necessarily are the
target but through media coverage and word of mouth publicity the event reaches a larger
target. These events are indirect events. Such events are used primarily to build brand
image and create positive equity for the brand.
Objectives of event marketing:

• Improve the relationship between sponsors and organizers in order to make the event
planning process more efficient and effective,
• Facilitate a shift from a rigid sponsor-organizer relationship to true partnership, where
in the objectives and goals of both the parties are addressed and achieved,
• Encourage strategic planning, proper budgeting allocation (rights fees versus
activation), focused objectives and analyzing, both before and after the event, to
deliver maximum value and Return On Investment (ROI),
• Provide inspiration to all practitioners for improving the creation, management and
marketing of events.

The Need for Marketing:


Marketing is that function of event management that can keep in touch with the event's
participants and audience (consumers); their needs and motivations, conceptualize events
products that meet these needs, and build a communication programme which expresses
the event's purpose and objectives.

1. The use of marketing principles gives event managers a framework for decision-
making that should result in successful events that still allow innovation and creativity,
but cater to a target market segment that has need for novelty and the excitement of the
new.
2. Sponsoring bodies require some certainty that their sponsorship will be received by the
target market that they are seeking. Sound marketing practices will help convince them
that a festival or event is an appropriate medium for them to communicate to their target
market.
3. All three levels of Government financially assist many festivals and events. They
usually fund only those events whose management can demonstrate some expertise in
marketing planning and management. .
4. Consumers, particularly those living in major cities, have an enormous range of leisure
activities from which to choose to spend their disposable income. This means that a
festival or special event, which, by definition, can be categorized as a leisure activity, will
attract only those who expect to satisfy their perceived needs. Therefore, any festival or
event needs to be designed to satisfy identified needs of its target market. Failure to do
this usually results in an event that is irrelevant to the needs of its target market and does
not meet its objectives.

Functions performed by the Event Marketing Head:


The following list shows the marketing activities that an event
manager undertakes to produce a successful festival or special event:

Analyses the needs of the target market to establish appropriate event components or
'products'.
1. Establishes whether other competitive events could satisfy similar needs to
ensure that their event has a unique selling proposition.
2. Predicts how many people will attend the event.
3. Predicts why people will come to the event.
4. Estimates what price they will be willing to pay to attend.
5. Brings in sponsorship for the event.
6. Decides on the type and quantity of promotional activities telling the target
market about the event.
7. Decides on how tickets to the event can reach the target market.
8. Establishes the degree of success of the marketing activities.

All of these activities, essential for a successful event are part of the marketing function.

Key issues in event marketing:

1. Setting objectives:
Event Marketing is a mixture of marketing and many other objectives. The objectives
could be:

• To increase the awareness of the company,

• Improvement of public perception about a company or objective,

• Reaching target audience,

• Building relationships,

• Enhancing the brand image and increasing sales.

• Wanting to contribute to community development, wanting to reach out to a larger


target audience,

• Be able to differentiate from competitors.

Lakme has been sponsoring the India Fashion Week for the last 4 years with the
objective of making the brand more contemporary and ‘in’ with today's generation. By
sponsoring the India Fashion Week, it tries to be the much talked about cosmetic
company I tha Fashion Industry.

2. Selection of the event:


Regardless to the relative importance of set objectives, organizations must
carefully select events that will help them in achieving their own unique
objectives. The first step is to evaluate and select the right event.

David Shani and Dennis Sandler have developed an Event Pyramid to promote and
select sporting events. These helped in categorizing the events and reducing the choice
set.
GE

International
Events

National Events

Regional Events
Local Events
The pyramid consists of five levels:

• Global Events

• International events

• National Events

• Regional Events

• Local Events

Each level classifies the event on the basis of the width and depth of interest in the event.

Shani and Sandler describe the width as the geographic reach of the event via the various
communication media and the depth of the event refers to the levels of interests amongst
consumers. Global events are at the apex and local events are at the bottom of the
pyramid.
Marketers must first decide the consistency of the corporate objectives and the budget
before they decide the appropriate levels that present the best match.

Coca Cola is deeply involved in events at all five levels.

A closer look at the pyramid reveals certain flaws. First it shows local events at the base.
To some this imply the broadest level of geographical focus while infact they have the
narrowest focus. Secondly it may be extremely difficult to categorize certain events on
the basis of this pyramid.

The primary consideration in selection of events is the brand personality fit. Ferrard and
Pages describe the process of congruence between events and brand as looking for the
“perfect wedding”. They also point out that any action of sponsoring events should begin
with the analysis of the common and unique attributes of the event and the brand.

For instance the association of Sahara and The Indian cricket team and the Sahara Cup
tournaments of cricket seems to be a perfect nationalist fit for the brand Sahara which
boasts of its Indianness in all its ventures, services or products.

There is no standardized technique to assess event-marketing opportunities. However


different companies have different approaches to the concept. Burson Marsteller, USA
has developed a Relative Value Assessment Model to objectively evaluate event
marketing opportunities against a five point criteria:
1. Positioning and Image
2. Audience Reach and Appeal
3. Marketing /Sales objectives
4. Tactical effectiveness
5. Marketing strategies

Each criterion has various elements that can be judged on a ten point rating scale. These
criteria are of two types: Desired and required. A RVA comparison grid can be used to
compare several events under consideration.
EVENT MARKETING MIX: -

Marketing events is the process of employing the marketing mix to attain


organizational goals through creating value for clients and customers. The organization
must adopt a marketing orientation that stresses the building of mutually beneficial
relationships and the maintenance of competitive advantage. Traditionally marketing
students have recognized that product, price, promotion, & place are critical
components in the marketing process. Each of this 4 P’s of marketing is a catalyst for
sales. The four P’s of marketing mix are common to the event mix but the three main
P’s which helps the product or your event to prosper are: process, people, physical
evidence. If your 4P’s are well set but you lack in this three P’s then you may have a
bad event because people are the one who are going to deliver you event and physical
evidence is the look or what customer or people attending the event perceive.. Physical
evidence their people and its process of carrying out the event or work appeal your
customers, then it is sure for your event to be a success and have good results out of it.

The eight P’s of Event Marketing Mix are:

PRODUCT(the service offered)

Successful sales people have both expert product knowledge and effective sales
skills. Expert product knowledge is essential in today’s competitive environment. The
expertise the marketing person demonstrates regarding the sponsorship package or
other event components will differentiate this individual from the competition. More
important than sales skills, demonstrated product expertise show the client that he or
she is making a purchase that has added value and helps to develop confidence as well
as long-term loyalty. It also brigs in reputation for the customer. The product i.e., the
event shows the design characteristics. This includes details about the event and how
the presentation of the event will be done. It also shows the intangible concept that the
event is delivering. The intangible concept that an organizations Award Ceremony
delivers is the feeling of acceptance, belongingness and trust among the employees
1) PROMOTION
Event manager may have the best quality event product, but unless he has a strategic
plan for promoting this product it will remain the best-kept secret in the world. There
are varieties of ways to promote your efforts:
• Advertising
• Public relations
• Direct marketing
• Word of mouth
• Hospitality

PROMOTION CHECKLIST: -

• Identify all event elements that require promotion from the proposal
through the final evaluation.

• Develop strategies for allocating scarce event promotion resources with


efficient methods.

• Identify promotion partners to share costs.

• Carefully target your promotion to those market segments that will


support your event.

• Measure and analyze your promotion efforts throughout the campaign to


make corrections as required.

2) PRICE
Marketing research will help the event manager to determine price. Part of
this market research will include conducting a competitive analysis study of other
organization offering similar event. When potential ticket buyers or guests are
interviewed, he may be surprised to learn that they consider his event similar to many
others. Therefore, an event manager must carefully list all competing events and the
prices being charged to helphim determining the appropriate price for his event. This
price later on helps the Finance head to prepare the budget for the event according to
the sponsorship, which the marketing head brings.
The price of the event is determined by the financial philosophy of the event.
The event can be:
• Not-for-profit venture:
If the event is a not-for-profit venture, the organization may not be concerned with a
large commercial yield from the event. Also, the philosophical purpose of the event
may be to generate overall awareness and support.
• Commercial venture
If the event is a commercial venture, the goal is probably to generate the greatest
potential net profit. He eill try to get maximum sponsorship and fiercely sell the event
by using all the promotional tools.
Once the philosophy is clear, then the event manager will be able to determine price.
The price must reflect the cost of all goods and services required to produce the event
plus a margin of profit or retained earnings.

3) PLACE
The place where you locate your event ultimately will determine the marketing efforts
you must exude to drive sales, for example it has been shown that those events that are
close to inexpensive, safe public transportation or those events that feature close and
reasonably priced parking will attract more guests than those that do not offer these
amenities. Furthermore, those events that are connected to other nearby attractions or
infrastructures (such as shopping malls) may also draw more attendees due to the time
efficiency to the destination. For upscale events, the addition of valet parking may
improve the chances of attracting guests to a new or nontraditional location.
The event manager must seriously consider place when designing the marketing
program for the event. Place not only implies the taste or style of the event, it also, in
large, defines the type of individual that will be persuaded to invest in the event.

4) PROCESS: -
There are various processes to be carried out in events. Different processes are involved
in every stage of an event. Few process and their explanations are given below-
• ENTRY or TICKET booking in an event:
Entry or Ticket booking in an event or booking of stalls during an exhibition event is
sometimes very tedious. There should be proper security at the entrance and the tickets
should be available only at one place and there should be no crowding near the ticket
window. The process to book stalls tables and ticket booking should be simple and
easily understood by people attending the event.

• QUEUING of people gathered at an event:


There should be proper process for ENTRY and EXIT of people attending the event.
Single line should be maintained or divisions with the help of ropes or rods should be
made between different lines. Various line techniques must be used to arrange the
crowd and to see that there is no rush gathered at a single place.

• Large Parking space:


Large parking space should be provided for the cars entering the area of an event and
valet parking facility should be provided if possible so that customers or people are not
depressed of parking their car far away or waiting for long hours for parking may spoil
their mood before the function starts and the thought of coming back walking to the
parking area would keep customer away from the event.. There should be good parking
space with security facility. This will help to create a good impression on people
attending the event.
By looking at the various processes we can summarize that process is to be taken care
of by the marketing people but is the main responsibility of the logistics people.

5) PEOPLE: -
A person plays a very important role in case of events. People are the
ones who are going to deliver your event may it be any type of an event -seminars,
exhibitions, entertainment, road show, award functions, etc. People are those who are
going to appeal to your customers and convey your message to the people attending the
event. Every person or people concerned to your event is important and needs to behave
properly. May he be a security guy but he is going to resemble you and your company.
So his manner of behaving is going to convey your company’s attitude and it’s your
impression.
 People in event need to be well dressed as they are going to represent
the company.
 People in event should develop good communication skills and take
care of customer interest and behave properly.
 People’s role is there in every area of event such as reservation
counters, ticket reservation staff, venue staff etc. Thus they need to have talent and
proper knowledge of the going event.

6) PHYSICAL EVIDENCE :-
Physical evidence is very important for any event. Physical evidence is like the
“FIRST IMPRESSION IS THE LAST IMPRESSION”. It is the look of the
event and should reflect what the customers perceive from the event. Without
physical evidence promotion of any event is not possible. Hence physical
evidence is one of the important elements in marketing of any event. These are
some of the important elements on which physical evidence is based.

 Branding: - Branding of an event is a very crucial step in an


event. Without branding any event cannot be recognized. Any event
cannot succeed without brand recognition.
 Decoration: - Decoration is also an important step in marketing
of an event. Any event can be made attractive by its decoration. It case
pf large-scale live entertainment events, Stage Set-Up becomes very
important as throughout the event the customers are going to look at
the stage and experience the event.
 Programs: - Any event cannot be completed without any
programs. Hence programs form integral part of marketing an event.
The types of programs selected and their potential to entertain people
form a large share in the physical evidence of the event.

The following diagram shows how the 8p’s of service marketing are related to
Marketing of Events.
Trends in Event Marketing

Collaborative Marketing:
Collaborative Marketing is on the rise. This is a trend that began with event marketing.
For many years World cup cricket, has had multiple non-competing sponsors
gathering together to reach and talk to same target audience. A collaborative effort
amplifies the message that they have to send. A coke customer is also Nike customer
and a Citibank Customer

Community based events:


A fast emerging trend in event marketing are community based events targeted at
specific niche audiences and help narrow down wastage of advertising. They are
most cost effective and have a more close reach and impact over a selected target.

Global Marketing/ Events to mass Marketing:


Certain events and promotions transcend beyond national borders and appeal to
consumers and communicate on the same platform across the globe. The Olympics,
World Cup Soccer, World Cup Cricket appeal to all cross sections of the target across
the world. Events today can also be designed to reach a large mass audience through
the advent of televised events and also using public festivals as platforms for
marketing where huge numbers could be addressed. Products having a larg consumer
base and international products like L’Oreal use global marketing.

Joint marketing:
Joint marketing refers to efforts conducted by two (usually no more) brands whereby a
property is created that equally reflect both brands. It is the effort conducted by two or
more brands using the same property as the central theme. This works best when there is
a genuine relationship between the two brands providing a real benefit to the customers.
Film releases use cross-promotion to leverage product placement -Lagaan with
Britannia.
THEME DEVELOPMENT

Developing a theme and promoting it is also a part of marketing the event.


Themes have been developed for almost every imaginable area. Here are just a few:
Ethnic themes Mystery themes
Movie themes Transportation themes
T.V. themes Futuristic and Space Themes
Storybook Themes War themes
Historical themes Political themes
Motivational themes Color themes
Geographical themes Costume or Dress themes
Sports themes Personality themes
Seasonal themes Food themes
Holiday themes Current events themes
Way of Life themes Hollywood/ Bollywood themes
Animal themes Negative themes
(Such as a very successful annual dull
party theme)

Themes can be very powerful and a memorable experience or they can be a disaster. If a
theme involves attendees' participation with either costumes or games, the risks are
fewer. In such cases (more than ever) the coordinator needs to know his attendees, and
often it's better to have attendees sign up in advance. Most people are willing to
accommodate requests such as "black tie," "casual “or” western wear," but they might
draw the line at dressing up; as Rani Laxmi Bai or a favorite rock star. Themes are
famous among live entertainment events as the attendees are excited to attend these and
start preparing well in advance how will they dress up and what will they carry along. On
the other side, people attending corporate events take out time o attend these from their
busy schedule and have no time at all to carry themselves according to the theme. On the
other hand, everyone appreciates creativity, especially new ideas or a new twist to old
ideas. The interaction that takes place among attendees at well-planned, well-executed
theme events makes them worth the time, effort and expense.

RETAIL EVENTS THAT CORPORATE CAN USE FOR THEIR TARGET


MARKETS: -
EVENT TARGET MARKET

Arts crafts show (Hastakala) Women & senior citizens


Children’s entertainer (CRY) Young children
Circus and petting zoo Young families
(Gvt fund raising)
Computer shows (NIIT) Men
Cooking demonstration/tasting(Prestige) Women
Fashion shows (Elle18) Women & teenage girls
Fine art show (Fund raising for Rural) Woman& Man
Health fair (road shows & seminars on HIV) People at large
Magician (Event Company’s) Young boys
Model railroad show (Gvt fund raising) Young boys & men
Sport celebrity appearance (Westside) Men & boys
Sport festival (Colleges) Teenagers

Event promotion:

In the world of marketing, 'promotion' generally refers to a one-off event that provides a
stimulus for the public to buy a service or product. A special event can be a part of a
more general promotion campaign of a company wanting to draw attention to their
product.

As used by the event industry, the word promotion has come full circle. It uses all the
marketing techniques. As it is project based, it has a definite life span. The risks involved
in one off or first time events mean that the event manager has to be acutely aware of the
tools of promotion. The audience does not have a reference point for the event other than
that created by the promotion. With repeat events and festivals, the audience and
suppliers have at least an- idea of the type of event, venue and scale. For a special one
off event, the promotion is strongly linked to the reputation of the organizing company,
sponsors and other stakeholders as well as the actual programme or event content. As
with all areas of event management, event promotion must be dynamic and able to
respond to opportunities as they arise. Other areas of event planning should also be able
to respond to the unforeseen products of promotion. A good bit of PR can result in a
surge of interest in the event and the event company needs to be able turn the response to
the advantage of the event.

A study of customers at a community festival reported that the Five Principal Need
Satisfiers for attending events are:
• Socialization: To be with friends or people who are enjoying themselves and people
who enjoy the same things.
• Family Togetherness: Seeking the opportunity so that the family can enjoy together
and to bring the family together.
• Excitement/Thrills: Doing something, which is stimulating and exciting, and appeals
to the creative mind.
• Escape: Getting away from the usual demands of life and having a change from daily
routine.
• Extent novelty: Experiencing new and different things and attending an event that is
unique.
The promoter of the event needs to keep these five basic needs of people in mind and
design a promotional kit according to these so that it appeals to the audience, which the
event targets.

Tools of Promotion

These tools are:


• Advertising

Advertising is the controlled method of communicating the message. The event


manager can manipulate the message.
It includes:
 Give-aways: leaflets, posters, brochures
 Radio: commercial, community, national
 Internet: websites, radio
 Television: cable, free to air, satellite
 Press: newspapers, magazines
 Non media alternatives: outdoor advertising, street banners.
Advertising can be done by the event manager or if the event and promotional
campaign is too big, by an appointed advertising agency,

• Public Relations

Often it is part of the event manager's job to gain maximum exposure for the
event. PR is different from advertising in that it is not self-praise but carries
the strength of disinterested credibility. It communicates a more complex
message than advertising. It is free but the event manager looses control over
the result. The publicity can be positive or negative. To this end, it is
important that the event manager maintains control over as much of the public
relation as possible.
• Direct marketing
This is delivering the promotional message straight to the interested
individual. The basis of direct marketing is the establishment of a data bank
and a strategy to best reach those individuals. The mail out is the most
common traditional method. The database can be created through previous
competitions, guest books, inquiries, point of sale information or just by
asking the participants if they would like to receive information on other
similar events.

• Word of mouth
For some event managers the promotion strategy is just by word of mouth.
They concentrate on the quality of their programme and site. This builds up a
loyal following.

• Hospitality
As part of the promotional kit, hospitality can be a powerful motivator.the
special event or festival has to promote itself to the sponsors. The dinner for
sponsors, for example, can be an inexpensive way to promote the event. A
tour of the site can be an effective way to promote an event.

• Websites
The latest and increasingly popular method of promoting an event is to create
a website. The advantage is that the site can also capture enquiries and be a
point of sale for tickets. The current movement towards virtual reality sites
can give the potential attendee a view of the event. The site can give real
information, such as the program and a map. Used in conjuncture with other
elements of the Public Relations campaign, a web site can be used to
distribute photos and press releases.
SPONSORSHIP

Sponsorship has become an established communication tool for building brand


awareness, brand image and corporate image. Sponsorship as a promotional activity has
remarkably grown in the recent years with current worldwide sponsorships estimated to
reach US $ 22 billionn (16th annual report from lEG Inc, 2001, USA). Motor Sports and
Golf rank first and second worldwide in terms of sponsorship dollars spent worldwide.
Coke spent US $ 40 million in sponsorship of the Olympic games; Coke spent another
US $ 500 million to carry out activities related to being an official sponsor in an
integrated marketing communications effort. Normally there are 2-3 sponsors for an
event. One main sponsor and two co- sponsors. According to FICCI report, the total
sponsorship fee ranges from Rs.10mn to Rs.20mn for an international event and between
Rs.2.5million to Rs.5 million for a domestic event.

Cornwell and Maignan proposed that sponsorship involves two main activities:

• Exchange between a sponsor and the event manager whereby the latter receives a fee
and the former obtains a right to associate itself with the activity sponsored.

• And the marketing of the association by the sponsor.

Sponsors try and use the energy, excitement and emotion generated by an event to allow
customers to touch, feel and experience the product. the event allows the sponsors to
spend an hour, day, weekend or a few days to be among the prospective customers.

Gardener and Schuman identified four types of participants in sponsorships:

• Corporations

• Channel members

• The public
• Sponsored organizations

Sponsorship: Who’s sponsoring whom and where? Some of the examples are:

Serial No Company Products/Brands Event Category


1 Pepsi Soft drinks Sports, Music,
Films, Fests
2 Asian Paints Paints Fairs and festivals
3 MRF Tyres Cricket
4 Seagram Liquor Music
5 Lee Jeans Special
Launches(Retail
outlets)
6 Hero Cycles Motor Bikes Hero Cup
7 SAIL Steel Football, Cricket
Manufacturing
8 Colgate Dental Care Kite Festival
Products Products
9 ITC Tobacco Products Sports (Classic
golf, polo, cricket)
10 Action Shoes Shoes Sports

It is important to write a good sponsorship proposal and sell it in the most effective and
efficient manner:
A good sponsorship proposal must include:
A) Title of the event:
B) Background of the organizers and the events
C) Types of Sponsorship available
D) Details of benefits to various sponsors
E) Commercial details.
Point (D) i.e., Details of benefits to various sponsors is the benefit of any proposal
because the prospective sponsor always will ask the question as to what benefits will he
get if he sponsors the event.
Let us take a HYPOTHETICAL CASE where we are seeking sponsors for an event at a
discotheque. If we just mention the benefits, it would not excite the prospective sponsor.
So each benefits are spelled below. While expanding each benefit, what effect does each
of them have on the buyer’s mind is also mentioned. The benefits, which we offer to the
sponsor, would be as follows:

A. Title of the event:


The sponsor shall be entitled to have the event named after a brand nominated by the
sponsor. The event would be referred to as “The XYZ Discotheque night” in all
communication. This will include all branding, advertising, merchandise and PoP, if
any. All Press Releases shall carry details of XYZ.
Effect on buyer’s mind: the buyer keeps ‘seeing’ the name of the brand in the various
heads mentioned above and has begun seeing the ownership.

B. Branding:
The sponsor shall receive branding on the following:
• Branding on stage
• Branding at the venue (at least 6 units)
• Branding at the entrance
Effect on buyer’s mind: The buyer keeps ‘seeing’ the branding in the various heads
described above. In his imagination, he walks through the venue, looking at the
branding. He begins imagining walking around with his superiors and his
colleagues, impressing all.

C. Passes to the event:


The sponsor shall receive a minimum of 50 passes to the event
Effect on the buyer’s mind: The buyer makes a quick mental check-list of the fifty
people that he can invite to the event. This will include superiors, colleagues,
suppliers and other constituents.
D. Logo on advertising:
The sponsor shall receive logos on all advertising related to the event, including all
press advertisements, all posters, banners and hoardings.
Effect on the buyer’s mind: the buyer starts visualizing the media as described above
and is more inclined to the event.

E. Logos on merchandise:
The sponsor shall receive logos on all merchandise produced foe the event. A
minimum of 50 T-Shirts and 50 Caps shall be given to the sponsor.
Effect on the buyer’s mind: The buyer immediately starts thinking about the color of
the T-Shirt as it should gel with the colors of the company’s logo. The buyer also
makes a mental list of the fifty people to amongst whom he will distribute it. It will
mostly include the volunteers for the event and staff in his office.

F. Mentions by the DJ:


The DJ at the event will make a minimum of ten mentions of the title sponsor during
the course of the event. The timings of the mention will be the prerogative of the
sponsor.
Effect on buyer’s mind: The buyer imagines the mentions made and the people
attending the event and his superiors getting impressed by it. Continues mention by
the DJ leaves a mark in the minds of the people attending the event.

Golden rules of approaching a sponsor:


• Never ever go to a client unless you are convinced that there is a fit between the
evnt and his brand. This will ensure that he will always welcome your proposals
in the future.
• If you believed that there was a fit, invite him to the event despite his not buying.
This will show him what he has missed out on.
FUTURE PROSPECTS

It appears that the future growth of the event industries, be it a rock concert, Pop or Film,
award ceremonies or the likes, hinges on two critical factors – rationalization of laws and
regulations by the government to facilitate a healthy growth of this industry and a
mindset change amongst audiences long used to freebies to pay for their entertainment.
Initiatives like the Event Management Association are positive steps already initiated by
the industry players.

The huge potential for this industry needs to be harnessed through improved product
quality, which can be achieved through a sharper focus on meeting customer needs.
Alliances with international event management companies, technological up gradation,
and innovative ideation are the cornerstone for growth.

As the company grows, assets like technology, stage, materials etc may be acquired to cut
costs in the long run. Therefore, investment required may increase to include other assets
like sound and light systems that are being outsourced. As the country becomes event
savvy, more companies will budget for events in annual plans in the future. Currently,
the profit margin for the event companies is 15% annually, however with the growth of
Event Management Companies and the price wars will see their profits will fall per event
but the increase in the number of events will lead to an overall increase in the profits.

As Michael Menezes, MD – Showtime Events puts it, “the current year has been good –
and things can only get better!”

On account of these factors the industry is expected to grow at a healthy rate of 30% per
annum over the next 5 years,

6 to a size of Rs 5.6.bn in
5 2006.
4 Total Live Entertainment
3
Industry Revenues (Rs. bn)
2
1

0
2001 2002 2003 2004P 2005P 2006P
(Source: Industry estimates)