Introduction to Business: Deep Rooted Events Business Plan Project

This business plan outlines the venture Deep Rooted Events, a music festival organizer. It includes an overview of the business's nature, its unique selling proposition, and competitive advantages. The plan details the company's formation, market research, and analysis of competitors using UK and local statistical data to demonstrate demand. It applies McCarthy's 4Ps model (Product, Price, Place, Promotion), discusses employee roles, and analyzes the advantages and disadvantages of zero-hour contracts and agency staff. It identifies the target market, customer cohorts, and strategies for future expansion, including market development. The plan also incorporates financial projections, providing a comprehensive view of the business's potential.

INTRODUCTION TO
BUSINESS

Table of Contents
BUSINESS PLAN: PART 1............................................................................................................1
1.1 Outline business venture.......................................................................................................1
Nature of business.......................................................................................................................1
Discussing USP and explaining why business would have a competitive edge.........................1
1.2 Business Type.......................................................................................................................1
Explaining formation of business type........................................................................................1
1.3 Research................................................................................................................................1
Identifying existing competitors into the business......................................................................1
Illustrating using UK and local statistical data and why there is demand for service................2
BUSINESS PLAN: PART 2............................................................................................................2
2.1 Applying McCarthy’s 4Ps model..........................................................................................2
2.2 Employees/ staff....................................................................................................................3
Explaining job roles of employees..............................................................................................3
Listing advantages and disadvantages of Zero-hour contract workers and Agency staff...........4
2.3 Customers/ clients.................................................................................................................5
Listing customer target market and identifying customer cohorts..............................................5
BUSINESS PLAN: PART 3............................................................................................................6
3.1 How business can expand in the future and listing out strategies for expansion..................6
Financial Projections...................................................................................................................6
REFERENCES................................................................................................................................8

BUSINESS PLAN: PART 1
1.1 Outline business venture
Nature of business
Deep Rooted Events will provide music festival events to customers so that they may be
satisfied quite effectually. The business will be fruitful as people especially music lovers are
attracted to such events to see their favourite stars performing live at the stage. Moreover,
business idea is to plan and conduct themselves. It can be said that affordable tickets will be
provided which will enhance the customer's experience and they will be satisfied by attending
music festival.
Discussing USP and explaining why business would have a competitive edge
The USP of Deep Rooted Events is that it will offer variety of music events such as rock,
melody, popular, pop, hip hop musics which will enhance customer's satisfaction with ease. They
will be provided with plenty of music types that will maximise their entertainment level leading
to accomplishment of goals in the best manner possible (Getz and Page, 2016). The business
would have a competitive edge over rivals as they all provide music festivals only of limited
music forms and charge higher fees. This means that by charging affordable rates, tickets will be
sold and business will have competitive advantage.
1.2 Business Type
Explaining formation of business type
There are various business forms which can be used to start and run the business. Deep
Rooted Events will be formed as company in order to attain more efficiency and productivity. It
can be said that company form is advantageous as more flow of funds can be accomplished,
larger operations can be done. Furthermore, liability gets divided or spread over owners etc. This
is because gains and liabilities are divided among investors. Hence, this business formation
would be advantageous for firm (Jones, 2017).
1.3 Research
Identifying existing competitors into the business
The competencies in music and events management sector are Taylor Lynn Corporation
TLC Ltd, Right Events, Assured Events, Make Events, Don't Panic Projects and several related
companies are competitors of firm.
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Illustrating using UK and local statistical data and why there is demand for service
The UK and local statistical data is taken and UK events industry can be analysed. The
figures and growth are stating that there are no signs of slowing down of the industry's pace. This
is evident from the fact that sector is currently worth of £42.3 billion in 2018 in accordance to
the report and is on 8 % rise in comparison to 2017 (How technology is drastically shaking up
the events industry. 2018). In addition to this, conference and meetings is the highest spending
one in the industry and values £19.9 billion. On the other hand, most popular music festivals and
sporting events are valued at £2.3 on combined basis. This shows that firm has a good demand
for service in the sector and would attain success.
BUSINESS PLAN: PART 2
2.1 Applying McCarthy’s 4Ps model
Product-
The product is required to be provided to people so that they may avail unique service
with ease. Deep Rooted Events will organise music festival events in UK. People will be
benefited with the amount of satisfaction that would be provided to them and as a result, they
will enjoy the events as their favourite music stars will perform at the event which will maximise
their satisfaction in the best manner possible. Moreover, professional music artists would also be
treated in kind manner or firm will meet professional expertise by satisfying artists with desired
services. Thus, overall it can be said that people will be able to attain satisfaction level and as a
result, desired profits would be accomplished by firm.
Price-
The price is one of the significant factor as it attracts people in effective manner and they
take decision to avail services or not. Since, business is start-up, it will have to compete in the
market for getting share and outreach rivals. In relation to this, good pricing strategy needs to be
adopted so that people are lured to buy tickets (Meretse, Mykletun and Einarsen, 2016). The
best available strategy is penetrating pricing as with the help of it, business will be able to attract
more customer's attention. This would be achieved as low price of tickets would be quoted which
will lure music lovers to avail services in the best way possible. It can be analysed that seeking
lower amount of prices, people will buy tickets which would be very much handy to build
customer's base.
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Place-
It is another crucial element of the model which entails that events should be organised at
a place where people would easily visit. In relation to this, Deep Rooted Events will organise its
events at Manchester, UK which is quite good place for attracting people and attain desired
amount of sales. It is required that business should be located in the heart of city so that it may
attract consumers with ease. In accordance to this, Manchester is most suitable for arranging and
organising music festivals and events by which people will come and buy tickets and as a result,
business will attain success in the market.
Promotion-
The promotional strategies are implemented so as to make customer's aware about the
offerings provided by company in effectual manner (Heldt and Mortazavi, 2016). It is utmost
important as without effective promotions, product or service of business would eventually fail
and new firm cannot take such risk. In relation to this, firm will use social media channels in
marketing to upload posts regarding events and discounts if any. Moreover, discount will be
provided on first-come-first serve basis to 80 people offering ticket at 55 % off. This will surely
be beneficial for firm as it will help Deep Rooted Events to attain good growth in the UK events
industry. Furthermore, advertisements will be made on TV, newspapers, magazines and radio
stations etc. Thus, through effective promotional tools, marketing objectives will be met.
2.2 Employees/ staff
Explaining job roles of employees
Manager's Role
The Event Manager has the role to develop and liaise with clients for getting their exact
requirements. This ensures meeting clients' requirement and event is organised and managed
properly. The job role assigned to Event Manager is to events on time and meet events within
budget. Moreover, setting and managing relationship with suppliers and to inspire and motivate
people to work with higher productivity and full efficiency.
Event Planner's Role
The role assigned to Event Planner of Deep Rooted Events is to plan events, design and
production within stipulated limits (Event Planner job description. 2018). He has to work with
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clients to identify needs and ensuring customer's satisfaction is achieved in effectual manner.
Moreover, he is also responsible for organising facilities such as décor, entertainment, catering,
promotional materials etc. Providing feedback to clients and also periodic reports to stakeholders
is also part of job.
Event Coordinator's Role
Event Coordinator will be engaged in Deep Rooted Events to coordinate and plan event
with attention to financial and constraints of time. To book venues and schedule for speakers and
sound management is part of role assigned to him. Negotiating with vendors at most affordable
agreements and terms and manage all operational activities in ongoing events. In addition to this,
he will have to oversee happenings in event and to take measures to overcome and resolve them.
Moreover, to final cross-check at event day so as to make sure that everything goes as per
standard.
Event Social Media Coordinator's Role
The social media is quite useful to company nowadays as it has several benefits. Seeking
this, Event Social Media Coordinator will be assigned role to maintain and develop online
marketing strategies. Moreover, by taking hands in modern media such as blogging, discussion
boards, RSS feeds, search platforms for representing through an online channel is the part of job
role of Social Media Coordinator. Thus, with competent workforce, Deep Rooted Events will be
able to attain good productivity and ensure customer's satisfaction is accomplished.
Listing advantages and disadvantages of Zero-hour contract workers and Agency staff
Advantages of Zero-hour contract workers
 Major advantage is that flexibility arises as workers are offered with no guarantee of
working hours.
 There is freedom to find additional work and extra earnings can be made quite easily.
 It provides chance of getting permanent employment as people would complete work in
effectual manner. Thus, employer has the chance to get hire efficient employee (Zero
hour contracts: The pros and cons. 2018).
 It is advantageous for business no obligations of working arises on both sides.
Disadvantages of Zero-hour contract workers
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 The zero-hour contract workers are not efficient enough as they are temporary workers
which provides unproductive work not suiting standard of company.
 The salaries offered to zero-hour contract workers is low in comparison to permanent
employees.
 It does not provide financial stability to both employers and employees which is the
biggest limitation of such employment.
 This type of work is not suitable as it could damage social life up to a major extent as
employer may call for the work and thus, normal social life gets stuck.
Advantages of Agency staff
 The major merit of agency staff is that urgent requirement can be fulfilled as it has pool
of candidates suiting needs of employers quite effectually (Smith, 2017).
 Agency staff recruits employees by testing their skills and engaging them in various tests.
This provides clarity that employees hired from this are efficient-enough.
 Firm could easily cut down its short-term costs such as administrative expenses and
processing charges.
 It is advantageous as it helps to hire employees which is found efficient could be easily
transformed into permanent employee.
Disadvantages of Agency staff
 The major disadvantage of agency staff is that training is to be provided even if candidate
is skilful and to make them familiarise with equipments.
 It is unsuitable as hiring temporary workers from agency staff could lead to friction
among the permanent or existing staff.
 The legal issues exist in following employees from agency staff and it could damage
existing reputation of staff (Simon and et.al., 2017).
2.3 Customers/ clients
Listing customer target market and identifying customer cohorts
The target customers of Deep Rooted Events are people within age of 18-40 years. This
group is targeted to take into account needs, desires of music lovers so that they may be able to
avail services in effectual manner. Moreover, with such age group, people of Manchester will be
targeted so as to achieve desired sales. Customer cohorts is the group of individuals sharing
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similar characteristics and as a s result, homogeneous group is found. Thus, music event lovers
will be targeted for attaining good growth in the market.
BUSINESS PLAN: PART 3
3.1 How business can expand in the future and listing out strategies for expansion
There are various strategies which can be employed so that firm may be able to attain
expansion in the future and these are listed below-
Market Development-
The market development is significant growth strategy which provides to develop new
market segments for current commodities. Moreover, it is also used to identify non-buying
customers from the target market. Hence, it can be used by firm for expansion purpose.
Product Development-
The product development is termed as strategy by which firm is able to provide newer
products to the market and provide higher quality of services to customers. Deep Rooted Events
can easily develop services or improve upon existing ones for maximising revenue in effectual
manner (Pasanen and Konu, 2016).
Diversification-
The diversification is another strategy in which firm develops new product for newer
market not yet explored by it. It is required to implement diversified strategy by properly
conducting market research so as to analyse market potential for products.
Acquisition-
Deep Rooted Events can acquire another event company which will provide firm with
more amount of profits. Furthermore, market share will be attained by company and also
competition will lower down.
Financial Projections
Projected Cash Flow Statement for Deep Rooted Events
Particulars 2019 2020 2021
Cash Inflows
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Sales revenue 14000 15000 16000
Total cash inflows 14000 15000 16000
Cash Outflows
Employees costs 5000 5200 5300
Power expenses 1000 1200 1250
Telephone charges 900 1000 1050
Legal fees 1200 1200 1200
Insurance charges 800 800 800
Equipment 2500 2500 2500
Total cash outflows 11400 11900 12100
Net cash flows 2600 3100 3900
Opening balance 0 2600 5700
Closing balance 2600 5700 9600
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REFERENCES
Books and Journals
Getz, D. and Page, S., 2016. Event studies: Theory, research and policy for planned events.
Routledge.
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.
Jones, M. L., 2017. Sustainable event management: A practical guide. Routledge.
Meretse, A. R., Mykletun, R. J. and Einarsen, K., 2016. Participants' benefits from visiting a
food festival–the case of the Stavanger food festival (Gladmatfestivalen). Scandinavian
Journal of Hospitality and Tourism. 16(2). pp.208-224.
Pasanen, K. and Konu, H., 2016. Use of social media for new service development by Finnish
event and festival organizers.Event Management.20(3). pp.313-325.
Simon, A and et.al., 2017. Towards an adapted MHP strategic capabilities model for moderating
challenges to quality music festival management.International Journal of Event and
Festival Management. 8(2). pp.151-171.
Smith, A., 2017. Animation or denigration? Using urban public spaces as event venues. Event
Management. 21(5). pp.609-619.
ONLINE
Zero hour contracts: The pros and cons. 2018 [Online] Available Through:
<https://www.money.co.uk/guides/zero-hour-contracts-the-pros-and-cons.htm>.
Event Planner job description. 2018 [Online] Available
Through:<https://resources.workable.com/event-planner-job-description>.
How technology is drastically shaking up the events industry. 2018 [Online] Available
Through:<https://www.verdict.co.uk/technology-events-industry/>.
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