Events media business

EVENT MANAGEMENT

By- Nibedita Ghosh & Asad Hoosain BITW

REPORT

!! A MULTI-CRORE-RUPEE OPPORTUNITY !!!! A MULTI-CRORE-RUPEE OPPORTUNITY !!

EVENTEVENT

EVENT MANAGEMENTEVENT MANAGEMENT

Application of the management practice of project management to the creation and development of

festivals and events.

INTRODUCTIONINTRODUCTION

• Live events sector in India has come a long way.

• It is a unique vertical within the media and entertainment industry;

• 2013 Clear slowdown for the live events sector.

• Growth of a mere 8-10 per cent over the previous year.

PRIMARY REASONS FOR THIS PRIMARY REASONS FOR THIS SLOWDOWNSLOWDOWN

• Rupee depreciation (thereby affecting outbound MICE),

• General economic stagnation (therefore lower corporate and advertising spends),

• Rapidly rising artist and talent costs, and

• Continuing lack of infrastructure in the country

• There are around 8-10 emerging players of national scale.

TYPES OF EVENTSTYPES OF EVENTS

• COMMERCIAL.

• CORPORATE.

• LEISURE.

• PERSONAL.

EVENT ORGANIZATION CHART EVENT ORGANIZATION CHART

EVENT PLANNING PROCESSEVENT PLANNING PROCESS

PRE-EVENTPRE-EVENT

11. Promotion

1. Proposal2. Budget3. Venue/ Site Selection and Design 4. Production Schedule5. Speaker & Supplier Checklist6. Sponsorship7. F & B Menu8. Guest list 9. Risk Management

10. Marketing

EVENT DAYEVENT DAY

POST EVENT POST EVENT

Evaluation

Shutdown and Reporting

INDUSTRY EVOLUTIONINDUSTRY EVOLUTION

19901990: Mainly venue management, artist coordination and equipment sourcing .

19951995: Managed events pick up.20002000: Emergence of a few ‘organised players.20052005: Corporate events pick up pace leading to six

years of high growth 20082008: Increased importance of IP and formation of the

first ‘event properties’ from within the live events community

20132013: Corporate slowdown leading to churn, diversification and skill renewal

COLLABORATIVE PARTNERSHIPSCOLLABORATIVE PARTNERSHIPS

DRAWBACKSDRAWBACKS

SEGMENTS OF THE LIVE EVENTS SEGMENTS OF THE LIVE EVENTS

SIZE OF LIVE EVENTS IN INDIASIZE OF LIVE EVENTS IN INDIA

1.IP EVENTS BUSINESS1.IP EVENTS BUSINESS

The business model is conceiving and creating a brand around an event.

Becomes a ‘pull factor’ in its own right. Among the fastest growing segments for many Live

Event firms today.

Major sources of revenue : (a) Sponsorship(b) Gate Receipts and (c) Broadcast Rights.

For eg: Filmfare Awards and IIFA have a 50-50 split between sponsorship and TV rights.

In 2013 IP-events led the growth for the live events sector.

Growth Avenues :-Growth Avenues :- More Events. Higher ticket prices. Pricing of tickets in IP-events,

especially in music and comedy seemed to support 25-30 per cent increase over 2012-13; and

Entry of ‘more serious’ and strategic sponsors.

• Use of A-list stars

Plunge into the less known!

2.EXPERENTIAL MARKETING2.EXPERENTIAL MARKETING

Has grown in importance for most Indian corporates and advertisers.

Eg-Be it Coca Cola’s ‘Small World Machines’ or ‘Mahindra Monastery Escape’

Aims to deliver high levels of engagement and customisation.

Has been highly effective in breaking through to the rural consumer – millions of new users that like to see, touch and feel a product – in the past decade.

• The use of a captive environment to create a brand experience for the customer is the USP of this channel.

• Closely integrated with brand activation and engagement.

• One of the most dynamic channels for the live events sector with new engagement properties being created continuously, especially in the rural segment.

3. Meeting, Incentives, Conference and 3. Meeting, Incentives, Conference and Exhibitions (MICE) and Trade ShowsExhibitions (MICE) and Trade Shows

Unique Crossover between live Events & Tourism industries.

Most Globalised of sub sectors within live events.

Becoming V. Competitive.

Leading MICE and Trade Shows: -Healthcare (17%)Technology (14.5%) &Science (13%).

KEY ADVERTISERS AND SPONSORSKEY ADVERTISERS AND SPONSORS

1. National advertisers across categories such as FMCG, consumer durables, mobile services and automobile dominated the sector, followed by liquor companies, financial services and traditional media organisations. (URBAN)

2.Traditional high spenders also dominated the live events list of spenders: among them were Hero MotoCorp, Micromax, Nokia, Airtel,Tata Motors, General Motors and HUL. (RURAL)

3.Banks and insurance companies emerged as a major source of sponsorships for IP-events, especially those organised by TV broadcasters with business themes. Due to government regulations, liquor brands took to IP-events – primarily music and fashion – in a big way.

4. Automotive brands stepped up their involvement in live events, particularly film and music awards shows and in experiential marketing, in the wake of the severe slowdown in auto sales in 2013.

CHALLENGES FOR THE INDUSTRYCHALLENGES FOR THE INDUSTRY

1.Venue and infrastructure - Quality of infrastructure in India often leaves a lot to be desired.

2.Target group experience - whether B2B or B2C - can determine the success of any live event; apart from content, the other major quality differentiator is the infrastructure of the event..

3.Manpower challenge

• Skill

• Employee cost

• Attrition

4.Taxation-

• Tax Entertainment tax is a state tax applicable to live events such as commercial exhibitions, stage shows, sports events, live entertainment, etc. with variable rates across different states.

5. Regulatory delays:-

Obtaining licenses and permissions can take a lot of time and effort in india.Ends up adding costs and challengesTakes away 35-40 % of their time and effort!Some permissions required for events are:

• Music license (PPL)

• Venue license

• Traffic police permission

•Tax payments etc.!

6. Fragmented markets

Low entry barriers catalysed fragmentation. The sector is witnessing fierce price competition in all

sub segments.

• Niche firms have emerged to offer specialised services or properties in one or two sub segments, thereby leading to greater skill development and client stickiness.

• There is a need for major consolidation and I.P. development.

TOP 10 EVENT MGT. COS.TOP 10 EVENT MGT. COS.

• Percept D Mark

• Wizcraft

• Cox And King 

• DNA Entertainment Networks Pvt.Ltd 

• SITA

• E Factor Entertainment Pvt. Ltd. 

• Sercon 

• Tafcon

• Travel Corporation (India) Ltd.

• Fountainhead Transmedia

SOURCESSOURCES

• FICCI FRAMES

• FT.COM

• BDU ‘OUTDATED’ TEXT BOOK.

THANK YOU