International Event Management International Event Management 1.0 Introduction 2 2.0 Organization Background 2 2.0 Organization Background 3 2.0 Organization Background 3 2.0 Organization Background 3
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International Event Management International Event Management 1.0 Introduction 2 2.0 Organization Background 2 2.1 SWOT Analysis 2 3.1 Relevance of Download Festival in Texas 3 3.1 Market Entry 3 3.2 Relevance to Target Audience and Justification (STP) 3 3.2.1 Hofstede Model 3 3.2.2 STP Analysis 3 3.3 PESTLE Analysis 4 3.4 Porter Five Forces Analysis of Texas 5 4.0 Detail of Event Theme/design 6 6.0 Contemporary Issues 7 5.0 Marketing Plan 7 8.0 Recommendation 8 9.0 Conclusion 8 Reference List 9 1.0 Introduction 2
International Event Management International Event Management 1.0 Introduction 2 2.0 Organization Background 2 2.0 Organization Background 3 2.0 Organization Background 3 2.0 Organization Background 3
Added on 2020-04-13
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International EventManagementTable of Contents1.0 Introduction.....................2.0 Organization Background..........................2.1 SWOT Analysis.....................................3.0 Relevance of Download Festival in Texas................................................................3.1 Market Entry..........................................3.2 Relevance to Target Audience and Justification (STP)........................................3.2.1 Hofstede Model...............................3.2.2 STP Analysis...................................3.3 PESTLE Analysis...................................3.4 Porter Five Forces Analysis of Texas......................................................................4.0 Detail of Event Theme/design...................6.0 Contemporary Issues..................................5.0 Marketing Plan...........................................8.0 Recommendation.......................................9.0 Conclusion.................................................Reference List..................................................1.0 IntroductionGlobalization has helped organizations to expand their market in new geographical area resulting in more market share and thereby creating sustainability. Organizing event involves gathering of various audiences, which serves mostly the purposeof entertainment (Wang and Cole 2016). Event management organizations deal with organizing events such as music festival, award ceremonies, sports, fund raising program, new product launch, trade shows, exhibitions and similar other categories. Audiences are targeted and based on this ticket are sold, which runs for a specific period. Similarly, an existing British music event Download Festival has been selected (Downloadfestival.co.uk, 2017), which is expected to be launched in Texas, USA. This event will be organized by Live Nation UK indicating its international expansion.2.0 Organization BackgroundThe selected music event will be managed by Live Nation UK, which is the subsidiaryof Live Nation. This organization owns fifty percent of Academic Music Group andis well known for organizing famous musicfestivals (Livenation.co.uk 2017). Its most recognizable ticketing partner is Ticketmaster, which has helped in selling the maximum tickets for each music event.2.1 SWOT AnalysisFrom the SWOT, it can be identified that the organization is having well financial support and great brand image for musical events, which are the most important factors for success as described by Andersson, Armbrecht and Lundberg (2017). Having a great opportunity for market expansion, it can surely be able to expand its market in USA. On the other hand, Ticketmaster is American company, which can surely help in better ticket distribution strategy of market entry.3.0 Relevance of Download Festival in Texas3.1 Market EntryAccording to Miller and Yang (2016), merger and acquisition is one of the best market entry options as an organization is able to ensure resource optimization and reduce overall cashflow. On the other hand,Masiero et al. (2017) pointed out that joint alliance helps an organization to enter into a new market and operate with an existing organization for specific period. Live Nation UK does not have any expansion in USA and therefore there might be a risk of sustainability for long term basis. For acquisition, it will need to bare a huge capital, which if turns out to be a failed strategy, Live Nation UK may have to face huge loss of capital. The best market entry strategy should be to work with an existing event management organization in Texas and if the market growth shows exponentialresults, it can acquire existing organization. Therefore, it can be said that the best optionfor Live Nation UK to can enter in Texas, USA will be joint venture. BRB Event Management will be the best company in Dallas with which Live Nation UK can undergo joint venture.3.2 Relevance to Target Audience and Justification (STP)3.2.1 Hofstede ModelAccording to Beugelsdijk, Maseland and Hoorn (2015), people of the USA prefers being more counterpart with others than thepeople of UK. While considering the masculinity dimension, it can be found that people in USA are more filled with empathy, love, quality of life, success and affection than people of UK. Finally, Lim, Makhija, and Shenkar (2016) pointed out that people of USA have a better tendency to accept new culture along with respect forold tradition. Therefore, it can be said that Download Festival in Texas will be a good strategy for market expansion where peoplewill accept the new event with enthusiasm.3.2.2 STP AnalysisConsidering the target segments of a music event, it can be said that income, age and status are the most important factors to be considered (Zarantonello and Schmitt 2013).Download Festival can involve audiences of age range from 15 to 50 with average to high-income group of people. Moreover, the geographic location to be selected will be Texas, which have a growing trendy crowd specifically in Dallas, having the largest diverse group of people in the USA. Finally, according to Tafesse (2016), an event must be extremely engaging so that it creates a long-lasting impression on the minds of target audience. Therefore, the event will be rich in entertainment, filled with musical content along with great lightning.Target MarketPrimary Target Market: Music LoversIdentification of Market SegmentDemographicAge: 15 to 50Gender: M/FIncome: US$500 to AU$3000 (monthly)Education: AverageFamily Size: 2 to 10Status: Nuclear/JointGeographicCountry/StateCountry: USAState: TexasCity: DallasPsychographicsInterest: Explore, AdventurePersonality: Accessibility ease, Buying powerLifestyle: Self-employed, Office going,Socially aware BehavioralConsumption: Quality-conscious, Earlyadopters, EnthusiastsPurchasing: Price-conscious, Luxury-seekers,Need basedIdentification of Positioning StrategyHigh entertainment value at lower priceFeatures with added valueVisibility and recognitionConsumers targetedClear identity and placementSecurity and face detection for criminal baseTop pop singers and bandsGreat lighting and sound system3.3 PESTLE AnalysisFactorsNotesPoliticsOldest democracy with stable federal system will be in favor of new market entryProgressive taxation system will help in establishing liberal business operationCorruption perception index is at 16th indicating smoothflow of business with authentic response from stakeholdersEconomyRising economy with high labor cost and increasing interest ratesRising impact of globalization has created new demand for different entertainment modes (Mester 2016)SocietyRising trend of entertainment from live music shows and eventsChange in socio-culture by involving more diverse group of peoplePeople have the tendency to accept new product and experience with few rejection, which indicates better business operationTechnologyProgressive digital communication with innovative ICTwill help in market penetration and seeking target audienceConcrete intellectual property protection and emerging technologies will help in innovative digital entertainment LegalityDepartment of Labor ensures protection of employees involving minimum wage, health coverage, workplace safety and social security Equal Employment Opportunity Commission ensures family leave policy along with employment based discrimination (Bargain, Orsini and Peichl 2014)Strong laws ensure better human resource availability with more tendency of retentionEnvironmentStrong laws for environmental protection impacting more on new entry firmsClimate change, whether and natural disaster does not impact on events3.4 Porter Five Forces Analysis of TexasFactorsNotesBargaining power of BuyersPlenty of local and national events resulting in high bargaining powerPresence of strong distributing networks along with high discounts count for bargaining powerBargaining power of SellersLow bargaining power due to presence of plenty of event organizersSeasonal discounts and offers from new events impact more on bargaining powerExisting competition on marketHigh market competition from local,national and international events, which are mostly music categoryPartnership with top pop singers andbands creates more competitionThreat from substitutesSubstitute events such as award ceremonies, product of the year and year-end events attracts maximum audiences (Homburg, Vollmayr and Hahn 2014)Threat from New entryHigh threat from entry as availability of partners and suppliersare huge along with suitable and trendy audienceLess risk and legal compliance with very less record for failed music events4.0 Detail of Event Theme/designEvent Operation PlanTitle of Event: Download FestivalType of Event: Music EventPurpose of Event: Maximizing ticket sales and earning more revenueEvent Objectives:To penetrate into Texas market through strong ticketdistributionTo create a sense of unique music festival for three daysTo attract and retain Texas audience so that other markets canbe reachedSite DescriptionCountry: USAState: TexasCity: DallasVenue: Dallas Arboretum & Botanical GardensEvent TimingsDate: 30.12.2017, 31.12.2017 and 01.01.2018Timing: 05:00PM to 12:00AM (each day)ParticipantsTop singers and dancers from Download Festival30.12.201731.12.201701.01.20181.Linkin Park2.Gojira3.Hatebreed4.Nostromo1.System ofA Down2.Slayer3.Caliban4.Sólstafir1.Green Day2.Prophets ofRage3.CarpenterBrutAudience SelectionFamous AudienceTop actors and celebritiesTop entrepreneursPolitical leadersFamous industrialistsTop sportsmenCasual AudienceCasual attendeesCorporate OfficialsStudentsTeenagersContributing FactorsAmusement devicesInvolvement of vulnerablepersonsAccessibility needsWorking at heightsPolice surveillanceGeneratorsTemporary structures(stage, gantry)Noise (amplifier, drums)Lasers and lightingTraffic managementKey ContractsEvent ManagerWaste managementSecurity managerMedical assistance providerEvent H&S representative6.0 Contemporary IssuesAccording to Liu, Zhang and Keh (2017), international events mostly face issues related to funding and strategic development. On the other hand, Gamble and Gilmore (2013) pointed out that venue Even if supplies are available venue might not be suitable for such accommodation, resulting in quality issues.8.0 RecommendationHeldt and Mortazavi (2016) opined that investors’ attention can be only achieved through right demonstration of possible financial outcome. Proper fact related statistics need to be presented for gaining attention. Moreover, Tafesse (2016) opined that issues related to strategic expansion can be overcome through investing more onresearch and development team, who will analyze the market potentiality. Similarly, based on the data, Live Nation UK can design its promotional strategies and make partnership with retail and fashion brands for supplies. Finally, quality issues can be addressed by importing the most essential equipment and machines directly from the UK along with adequate training and support for human resource so that performers and organizers does not face any challenges while operating.5.0 Marketing PlanFactorsNotesProductThree-day music eventTop heavy metal bands presenting rock festivalPresenting genres' biggest names in music industryLive performance by Linkin Park, Gojira, Hatebreed, NostromoAudience detection by facial detection technology ensuring safetyPriceCompetitive pricing strategy due to new entryFood and beverage including drinks will be separately chargedPremium membership and cards for VIP tickets with premium pricingPlaceVenue: Dallas Arboretum & Botanical Gardens (Dallas, Texus)-Address 8525 Garland Rd, Dallas, TX 75218, USA-Botanical garden with 66-acrePromotionOnline ticket through Ticketmaster offering:-Huge discounts for bundle ticket category-Friendly discounts for 3-ticket category-Cozy discounts for couple ticket categoryPrint media, hoardings and bannersPeopleFamous celebrities from diverse categoriesShort commercials involving participant bandsProcessCreating awareness through social mediaMaintaining entertainment quality through use of best sound and lighting systemPhysical EvidencePrinted ticket confirmation along with free pickup facility from 12 kmEmail confirmation along with notifications for event statistics prior to starting of event so that more audience can be engaged through word of mouthselection, quality assurance and event promotions are the factors that hamper event operation. Considering Download Festival, it can be said that strategic development might be an issue because Live Nation UK has very less idea of international expansion and prevailing laws. Due to risk in internationalization, potential investors might not be attracted resulting in funding issue. Finally, quality assurance might be the most impactful factor because the organization has very less idea of suppliers and available technologies to support their equipment. 9.0 ConclusionWhile concluding, it can be said that Download Festival will earn huge reputation in USA despite of certain challenges by presenting the all-time favorite metal bands. It has been found that Texas is composed of diversified cultural people along with high acceptability of newproducts, which indicate an undisputable success by the end of this year. There are three types of tickets for three customer segments with premium pricing for VIP audience, which will be completely handledby Ticketmaster. It has been also found thatprevalent market competition for musical events is extremely high and therefore the unique positioning strategy will be the mostimpactful for success.Reference ListAndersson, T.D., Armbrecht, J. and Lundberg, E., 2017. Linking event quality to economic impact: A study of quality, satisfaction, use value and expenditure at a music festival.Journal of Vacation Marketing,23(2), pp.114-132.Bargain, O., Orsini, K. and Peichl, A., 2014. Comparing labor supply elasticities in europe and the united states new results.Journal of Human Resources,49(3), pp.723-838.Beugelsdijk, S., Maseland, R. and Hoorn, A., 2015. Are scores on Hofstede's dimensions of national culture stable over time? A cohort analysis.Global Strategy Journal,5(3), pp.223-240.Downloadfestival.co.uk, 2017.Download Festival | 8th - 10th June 2018 | Donington Park. [online] Download Festival. Available at: https://downloadfestival.co.uk/ [Accessed 30 Nov. 2017].Gamble, J. and Gilmore, A., 2013. A new era of consumer marketing? An application of co-creational marketing in the music industry.European Journal of Marketing,47(11/12), pp.1859-1888.Heldt, T. and Mortazavi, R., 2016. Estimating and comparing demand for a music event using stated choice and actual visitor behaviour data.Scandinavian Journal of Hospitality and Tourism,16(2), pp.130-142.Homburg, C., Vollmayr, J. and Hahn, A., 2014. Firm value creation through major channel expansions: evidence from an event study in the United States, Germany, and China.Journal of Marketing,78(3), pp.38-61.Lim, J., Makhija, A.K. and Shenkar, O., 2016. The asymmetric relationship betweennational cultural distance and target premiums in cross-border M&A.Journal ofCorporate Finance,41, pp.542-571.Liu, L., Zhang, J. and Keh, H.T., 2017. Event-Marketing and Advertising Expenditures: The Differential Effects on Brand Value and Company Revenue.Journal of Advertising Research, pp.JAR-2017.Livenation.co.uk, 2017.Concert Tickets and Tour Dates | Live Nation UK. [online] Livenation.co.uk. Available at: https://www.livenation.co.uk/ [Accessed 30Nov. 2017].Masiero, G., Masiero, G., Ogasavara, M.H.,Ogasavara, M.H., Risso, M.L. and Risso, M.L., 2017. Going global in groups: a relevant market entry strategy?Review of International Business and Strategy,27(1), pp.93-111.Mester, L.J., 2016.The US Economy and Monetary Policy Remarks for the Panel Discussion,“The United States and the Global Economic Outlook” National Association for Business Economics/American Economic Association Meetings San Francisco, CA January 3, 2016(No. 65).Miller, D.J. and Yang, H.S., 2016. The dynamics of diversification: Market entry and exit by public and private firms.Strategic Management Journal,37(11), pp.2323-2345.Tafesse, W., 2016. Conceptualization of brand experience in an event marketing context.Journal of Promotion Management,22(1), pp.34-48.Wang, W. and Cole, S.T., 2016. A Comparative Analysis of Event Attendees' Spending Behaviors, Satisfaction, and Information Search Patterns by Event Types at a Midwestern College Town.Event Management,20(1), pp.3-10.Zarantonello, L. and Schmitt, B.H., 2013. The impact of event marketing on brand equity: The mediating roles of brand experience and brand attitude.InternationalJournal of Advertising,32(2), pp.255-280.
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