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Market Analysis- The Sister’s Event & Management

Bindu Duwal

Westcliff University

BUS 557 Applied Capstone

Mr. Rabindra Silwal

March 13, 2021

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Introduction

The sister’s event & management company is the event organizing company whose main

target is to serve the customers with a busy schedule, who find difficulty in creating connections

with various vendors required for event management, who are too lazy to participate in

management programs, and who do not have an idea about management. There are very few

events managing companies existing in Nepal. Many of them do not provide entire services and

many of them do not follow the concept of modularity in their business. Their products and

services are very simple serving their customers. However, all those existing event managing

companies in the market are the competitors of Sister's Event & Management company. They

directly affect the existence of the Sister's Event & Management company. Thus, before

conducting any business, one should conduct a market analysis because it is an important

component for a successful business plan.

Market analysis is the complete assessment (qualitative and quantitative assessment) of

market size and nature[ CITATION Bus19 \l 1033 ]. It is important for every market participant

as it serves as a basis for decision-making. Every business, enterprise, and founder does the

market analysis because it provides information about the competitors, economic environment,

customers, industries, market size, buying patterns of consumers, and other variables on the

market. Also, through the analysis of the market, one can analyze the demand and supply of

certain products and services, identify threats and opportunities of the particular market,

understand the probable position of the business on the market and identify the business worth

on the market.

While conducting the market analysis, the analyst must focus on few key factors and they

are:
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Market Need

Market need refers to the requirement for particular products and services to consumers

inside a given market. Basically, the higher the need, the more appealing is the market. The event

management industry is not a new business in the Nepalese market. Most of the people are aware

of the event managing companies. However, there are very few companies in event managing

and planning companies in Nepal. Even though there exist event managing companies, many of

them are not still able to provide the best service to their customers.

Today people are so busy with their work life. They do not have much time to waste on

managing their precious occasions. Especially, the people between the age group of 25 to 60

years are so busy on their work. Not every people are busy but most of them do not have any

idea about managing events. Many of them face problems while they have to connect with

various vendors for their events. Similarly, some of them are too lazy and they do not want to

take stress on their special days. In nutshell, many event organizers have their own kind of

difficulty in managing events. Thus, the event management company is vital in a present

marketplace.

The Sister's Event & Management company's target is to help their customers by

reducing stress and help them to save their valuable time by serving them flexible, feasible, and

affordable services. The business assists the customers to connect with various kinds of vendors

such as catering, photographers, videographers, beauticians, fashion designers, singers, DJ, and

so many other vendors. My company will be adopting the modularity concept on its business and

will serve the customers as per their preferences, a separate product or a packaged product. Apart

from delivering services as per their preferences, it is very important to provide a strong delivery

system. The delivery system is vital to a business because it determines the satisfaction level of
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the customers. Therefore, the sister’s event & management company also focuses on serving

quality services and timely service to its customers.

Market segment

Satisfying the customers is not an easy job. Fulfilling the requirements of every customer

is difficult because the preferences of individual customers are not identical. Each customer is

unique, have unique aspirations and satisfaction level. Thus, market segmentation has to be

adopted by a business. According to [ CITATION Dib91 \l 1033 ], through market segmentation,

the company can identify the homogeneous market segment which has a specific expectation,

and to fulfill those expectations of the segmented market, businesses have to prepare resources

accordingly.

Only having an excellent product and services is not sufficient enough to have a

successful business if the company have no idea on how to get them into the hand of potential

customers[ CITATION Mey14 \l 1033 ]. So, a potential customer should be identified at the very

beginning. The sister’s events & management surveyed 10 individuals to identify the potential

customer of it. Thus, from the research we identified the following potential customers of the

company:

Potential Customers Number of customers

Working Individuals 6
Adults 3
Students 1
Others 1
Total 10
Table 1: Market segmentation of the sister’s event & management company
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Potential customers
9%
9%

55%
27%

Working Individuals Adults

Students Others

Figure 1: Market segmentation of potential customers

From the market analysis, it is shown that the working people are most likely to hire an

event management company to organize their events. As per the survey, it is found that the

working individuals are very busy on their work-life that they do not have enough time to

contribute on managing their events. Even if they manage time to organize their events on their

own, they face the problem of connecting with various vendors necessary for event management.

So, due to their hectic work schedule and lack of connections, they prefer to hire event managers

even though they have an idea of managing events.

Likewise, another market segment is adults. About 27% of the people seem to prefer

hiring event managing companies because adults want to eliminate the stress of managing their

events. From the research, it is also found that adults do not have a good idea of managing the

proper events. Therefore, they prefer not to take responsibility for managing the events.

Similarly, another potential customer of the company is students and others. However, in this

category people are less likely to hire event managers because this group of people does not have
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a financial support system. Although, very few of this category showed interest in managing

events through the help of an event management company. Thus, the sister's event &

management target to reach the people under the age group of 25 to 60 that includes students,

working individuals, adults, and others.

Target Market Segment

The target market segment of the Sister's Event & Management company is between the

age group of 25 to 60 years. Under this age group, we can find the students, working people,

adults, and others. According to [ CITATION And16 \l 1033 ] most of the time companies

makes mistake while identifying its target market segments because they are more inclined

toward attracting huge customers. Thus, a proper target market should be identified by the

companies for the successful business plan.

The Sister’s Event & Management company target market is mainly the working

individuals that have a hectic working schedule, that are financially independent, and that do not

have good connections with the various vendors. Most of the working individuals are so busy

with their work-life that they do not have much time on planning their events. They have a good

financial support system but no time, connections, and ideas. Thus, they prefer to give

responsibility to the event managers rather than managing on their own. Therefore, working

individuals are the primary target market of Sister's Event & Management company.

Likewise, adults are also the target customer of the Sister's Event & Management

company. They do not have a good idea of managing the proper events but they have financial

supports to work with event managers. Even though if the adults have an idea of managing

events, they are less energetic for managing such works. Therefore, adults are also the target
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customer of the company. Similarly, students and others are the secondary target market of the

company.

Customer Segmentation

Geographic segmentation  Target - Bhaktapur, Kathmandu, and

Lalitpur (for first two years of

operation)

 Cities near to Kathmandu valley (after

two years of delivering services inside

the valley)
Demographic segmentation Age group - Between 25-60 years (the age

group is selected based on the financial ability

and the likeliness of purchasing the services)

Gender – Male, Female, and others

Future Projections about Target Market

The sister’s event & management company offer varieties of the package or separate

services as per the requirement of the customers. Mainly it offers services on packages and some

of its packages are:

 Basic packages: It includes the simple basic services required for happening certain

events.
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 Customize package: This package can be changed as per the requirements of the

customers. The customers can either add or deduct the service from the package as per

their preferences.

 Premium Package: This package will offer a premium service to its customers with

extra services than regular.

Industry Analysis

The industry analysis allows the company to understand its position on the market in

comparison to other similar companies producing similar types of goods and services. It assists

the analyst to understand the current situation of the industry. For a business to understand its

position in the relative industry, accessing the interplay of demand and supply, understand the

likely future of the industry is important. For an event managing company also, understanding its

competitiveness in its industry is significant. There are various environmental forces that may be

internal or external forces affecting the business's performances and success. So, industry

analysis has to be conducted by every business planner, owner, and entrepreneur so that

necessary strategies could be formed to improve if there are any weaknesses or take a benefit

from strong positions.

The five-force model of Michel Porter helps to analyze the competition in the industry.

Through this model, the analyst can analyze the industry attractiveness, intensity of competition,

and profitability position. Thus, using porter's five force model, the sister's event & management

company will be analyzing its industry and determines its weakness and strengths.

Five Force Industry Analysis

Porter's five force model includes,

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1. The intensity of competitive rivalry

Competitors have the power to undercut the ability of the company. The higher the

competitive rivalry, the lesser is the power of the company to earn profit in the industry.

Competitors offering equivalent products and services reduce the market attractiveness.

There are few event management companies existing in Nepal serving differentiating

services. Almost every event management companies serve the same services. However,

the Sister's Event & Management plan to serve differentiating services following the

modularity concept. Although our company serves some other differentiating services

than its rivals, the other existing event managing companies will be the competitors of the

company, since our company will also offer some equivalent services in its service

packages.

Tackling with competitive Rivalry

 Offering the various packages with competitively low price than the competitors.

 Using the modularity concept so that the company can offer the services in the

bundle or separately as per the need of the customers.

 Offering differentiating products and services than the competitors. For example,

the kid zone is a unique product in the event management industry. Likewise, no

other event managing companies help their clients to get appointments with

vendors like makeup specialists and fashion stylists. But our company plan to

serve all those services.

 Allow the customers to customize their service packages. Allow them to add or

deduct certain services from the service package offered to them as per their

spending limits.
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2. The threat of new entrant into the industry

There are no restrictions to start an event management company. The procedure to start is

simple that anyone can follow. So, there is always a high chance of entering a new event

management company with differentiating products and services which is likely to bring

high competition in the industry.

Tackling with the threat of new entrant into the industry

 Continuously researching the market needs and bring new innovative ideas to

attract more customers and maintain customer loyalty.

 Identifying the new trends or creating a new trend for the customers to keep the

customers interested in our services.

 Maintain a strong relationship with the customers and vendors.

3. The threat of substitute services

Substitute products and services are the greatest threat for the company. The existence of

substitute products directly impacts the profitability of the business because customers

will have a variety of options in the market and thus, the price-sensitive customer will

forgo buy services where the price is relatively low. In the event managing industry, there

is a high threat of substitutes. The price-sensitive people are more likely to organize their

events on their own to cut the cost. Also, they are more likely to appoint freelancers at

low cost which is the biggest threat for the sister’s events & management company.

Tackling with the threat of substitute services

 Maintain a strong relationship with the customers.

 Allowing flexible and affordable services to customers (mainly to a price-

sensitive customer).
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 Offering an experienced team and also focus on the best marketing mix to lure

customers toward the services of the company.

4. The bargaining power of suppliers:

The Sister's Event & Management company requires many suppliers to manage any small

or big events. Since the company has to connect with several vendors the company will

have to maintain a strong relationship with them. In the case of our event management

company, the bargaining power of the supplier is low because our company will maintain

a good connection with serval suppliers so that it can choose the best option at a time.

However, the bargaining power of some suppliers might be high because they might also

have maintained good connections with other companies to whom they can sell their

services. Therefore, to stay on the safe side, the sister's event & management company

plans to have a contractual relationship with the different vendors required for event

management.

Tackling with the bargaining power of suppliers

 Maintain contractual relationship with powerful suppliers

 Create substitute suppliers i.e., maintain a relationship with more than one

supplier for creating more options.

5. The bargaining power of customers

The bargaining power of the customer tends to become high in the presence of substitute

products and services. Since there are substitute service providers in the event

management industry as we discussed, the bargaining power of its customers is very

high. Because of the high bargaining power of customers, the event managing business is

pressurized to lower its service price.

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Tackling with the bargaining power of customers

 Offering unique and differentiating products and services than the competing

companies so that the bargaining power of customers decreases.

 Maintain a strong and huge customer base and maintain customer loyalty.

SWOT Analysis

A SWOT analysis is perceived as an assisting tool for formulating the business

strategy[ CITATION Dys04 \l 1033 ]. For business strategic planning, SWOT analysis is the

most frequently used tool. This tool allows the business planners and entrepreneurs to analyze

the company’s internal and external environment. It helps them to compare the internal factors

i.e., strength and weakness with the external factors i.e., threat and opportunities, and help them

to make decisions, promote business strategies, marketing strategies, and operating strategies

accordingly.
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SWOT analysis for the Sister’s Event & Management

Strength Weakness

 Adaptation of modularity concept  High competition with more offerings

 Customized services  High employee turnover rates.

 Start with minimum investment  Limited geographic coverage in the

 Experienced working team first two years – more focused on

 Superior management talents Kathmandu valley only.

 Lots of connections and good relations  Limited target market segment. Only

with vendors and suppliers. people between the age group of 25-

60 years are covered.

 Lack of brand recognition.

Opportunities Threats

 Increasing varieties of a trend in  High competition

events (for instance, Mehendi, Haldi,  Seasonal impact on business

sangeet events in the wedding)  Chances of a new entrant in the

 The growing demand for photoshoots, industry as there are low barriers to

videoshoots, and destination wedding entry.

plans.  High chance of imitation of the

 People desire to have an extravagant company’s services by other event

event on their special day. managing companies.

 The price war in between competitors

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Conclusion
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