Introduction to Business: Event Management Business Plan

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Introduction to Business
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Table of Contents
Introduction...................................................................................................................... 3
Business Plan: Part One..................................................................................................4
Business Plan: Part Two..................................................................................................6
Business Plan: Part 3 – Future Plans.............................................................................11
Conclusion..................................................................................................................... 12
Reference List................................................................................................................ 13
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Introduction
Event management is essential for all business organisations in order to conduct many
promotional events successfully. Event managers are responsible for allocating and
planning the required amount of resources for the event, and the various processes that
will take place to complete the event.
In this report, the business plan for setting up a new business for conducting an event
like Mayfair’s International Wine Tasting Fair, Mayfair, London. A detailed business plan
is presented that incorporates outline of the business will be explained, along with the
marketing mix of the firm and the employees required. The target customer segment will
also be analysed and future recommendations will be suggested.
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Business Plan: Part One
Lead Events is an event organising origination that will be introduced and which focuses
on managing various kinds of corporate events. The company operates in London,
where its headquarters are located in the Mayfair district. The company is a limited
liability partnership business that is co-owned by two owners. It provides event
management services to a wide of organisations, like Porsche and Unilever, primarily
managing corporate events and private events. The USP of the company is providing
specialised and personalised event management services that have the aim to satisfy
the client and the guests involved as per their wants and preferences. The events are
structured in a way that exudes novelty and nobility, mainly catering to the high profile
corporate and their novel tastes. The company has a competitive edge in the market of
event management because it caters to provide high quality event processes that are
managed in a way that leaves room for adding more options for specialisation, which
has the potential to make the clients and the guests more satisfied. The personalisation
of events is not generally done by other event management businesses, thereby giving
the company a competitive edge in the market.
1.1 Business Type
The company is a partnership business, which is co-owned by two businesspersons.
This form of business suitable for the business because the involvement of a partner in
handling the business allows the collection of more capital that will be available to the
firm (Burns, 2016). It is a limited liability firm and therefore, the entrepreneurs have
limited responsibility towards the firm. This protects the personal assets of the
entrepreneurs from the business liabilities. The involvement of two entrepreneurs as
partners also allow room for more flexibility as the expertise of both of them can be
effectively put to use (Picciotto, 2018).
1.2 Research
The service that is provided by the company is based around providing high profile
novel events, devoid of any flashy aesthetics and seeks to promote the traditional way
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of formal events, which the entrepreneurs believe is more suitable in the corporate
sector. Te existing competitors in the UK market that can pose a challenge to the
partnership have been identified to be The Events Company, IE Live Event Services,
and Clearwater Events. This venture will be profitable because as per recent statistical
data, 1000 British Pounds was he average spending per participant in an event,
signifying the large scope for event management firms to generate more revenues and
profits. 2600 British Pounds is also the average salary for event planner in London, UK,
signifying the demand of event planners and management by corporate houses and
other businesses. The business is also booming, as there has been an increase of 17
percent more companies organising events in the UK in the last year. 41percent of the
marketers believe that event management is essential to the success of the company
(White, 2010).
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Business Plan: Part Two
2.1 4P’s of Marketing Mix
The marketing mix of the event management services of Lead Events is detailed as
follows. The firm will use this mix to conduct the process of managing the Mayfair Wine
Tasting Event
Marketing Mix Discussion
Place The event will be held on the Finos Wine Cellar, located in London,
UK. This wine cellar is located in the Mayfair district of London. This
will be the most suitable place for the wine tasting event as Mayfair is
known for their range of expensive restaurants, gourmets, and
elegant atmosphere that exudes nobility. The people of this place are
known for their high standards of living, including having fine tastes in
wine and extensive knowledge on the subject. The other competitors
that can pose as a threat to the firm are The Events Company,
Cornucopia Events, Firebird Events Limited, and TBA. All these firms
are well established in the event management market, and are known
for their high quality services and high levels of customer satisfaction.
Product/Service The service will be to hold a wine tasting event in the chosen location
for the Mayfair International Wine Tasting Fair. In this event, selected
and reserved fine wines from famous brands all around the globe.
Some of the selected brands include Barefoot (UK), Concha Toro
(Chile), Gallo (USA), Changyu (China), Yellow Tail (Australia), and
Stutter Home (USA) among many more. All these products will be
supplied from international suppliers, which are directly from the
manufacturers themselves. The selected wines from each brand are
selected in a way that includes reserved special wines and new soon
to be launched wines (Getz, 2019).
Price Four pricing strategies are applicable for this event. The first is the
economic pricing strategy, which includes selling the products and
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services at cheaper rates in order to attract more customers. This is
called economic pricing because it allows the manufacturer to
penetrate the market and gain the maximum market share and value
quickly. The second strategy is the premium pricing strategy, which
includes selling the products and services at a high premium price in
order to signify the product quality and gain a limited market share,
catering to the higher income class of customers. This is profitable for
the business only if a market advantage can be gained quickly due to
the higher pricing strategy (The Economic Times, 2019).
The third is the penetration pricing strategy, where the cost of the
products and services are kept temporarily low in order to gain market
share quickly through mass sales, and then increase the prices
steadily to retain loyal customers and increase the profit margin
(Baker et al, 2017).
For this event, the prices of the wine will be kept on the penetrating
pricing strategy to increase the sales of the wine. Wines are generally
high priced, especially the prices of these world-renowned wine
breweries. The original prices o a bottle of these famous wines will
cost around 40 to 50 British Pounds per bottle. For this event, it will be
lowered to 20 to 30 British Pounds per bottle. This will help in
attracting more customers and the maximum number of them will find
it affordable.
Promotion In order to promote this event successfully to the customers, posters
and fliers will be spread around the neighbourhood of Mayfair,
London. This will help to attract the local customers of Mayfair, due to
their luxurious lifestyles and exquisite tastes, traits that are necessary
in a wine tasting event. The poster for the event will also be featured
in many newspapers, like The Guardian, The Independent, and The
Express. These are some of the most popular and highest selling
newspapers that will effectively make sure that the advertisements
can reach the most number of people all over the UK, especially in
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London. The advertisements will also be promoted through the social
media, especially through social media websites like Facebook,
Twitter, and Instagram. This will make sure that the maximum number
of people of all segments and demographics are reached (Jin et al.,
2017).
Table 1: 4P’s Marketing Mix
The marketing mix that is presented above will allow the event to draw in the maximum
number of customers and people to the event. Many traditional British people favour
wine, as per their culture and tradition, which is valued more in Christian communities
that constitute the maximum of the British population. However, this event will be
conducted by keeping secularism in mind, and interested adults of all religion and
ethnical backgrounds are welcome.
2.3 Employees
In order to conduct the event, a number of employees and manager are required to
conduct all the operations that are necessary for the completion of the event. Some of
the roles of the managers required and the employees that will be hired are described
below.
 Event Managers: Both the entrepreneurs of the company will be the event
managers and will handle the most important duties of the planning of the event.
All the necessary decisions regarding the event like its marketing strategy,
location selection, steps that are needed to be conducted, and task allocation of
other managers and the employees will be the responsibility of the event
managers. The materials that are required for the completion of the vent will also
be planned by the event manager, and will be communicated to the finance and
procurement manager for effective planning (Taylor et al., 2017). The event
managers are also responsible for following the commands of the client
responsible for Mayfair International Wine Tasting Fair in order to formulate the
special guest’s lists and delegates list, if any. This will allow the event managers
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to provide personalised services to satisfy the special high-profile guests and the
customers.
 Finance Manager: The Finance manager will be responsible for all the financial
aspects of the event management process, like calculating the budget required,
total sale of the wines, total revenue earned, and induction of sponsorships will
be done. The finance manager will also handle the books of accounts of the
partnership, so that all the transactions of the business are up to date, so that
accurate revenues and expenses can be assessed in order to calculate the
profits and losses of the firm after this event is over. The finance manager will
calculate all the actions of the event manager and the procurement manager on
financial terms only (Ekpo et al., 2017).
 Procurement Manager: The procurement manager is responsible for managing
all the materials and supplies that are required by the firm to conduct the event.
Materials required include decoration items like carpets, lights, and other
decorative objects. The food and catering services are also managed by the
procurement manager, so that adequate food products and drinks are present, to
satiate the customers.
 Zero Hour Contract Workers: Zero Hour contract workers will be employed to
carry out the various activities of the firm like cooks, decorators, and wine
servers. An advantage of hiring zero hour contract employees is that the
employer is not obliged to give any minimum work hours and their work time can
be extended at will. Its main drawback is that the employees are not obliged to
accept the work conditions and the job offer (Adams et al., 2015).
 Agency Staff: These staff members are under the employment of other business
firms and are hired to perform exclusive tasks in this event (Nicholson et al.,
2016). Examples of an agency staff include advertising agency workers
(responsible for creating advertisements) and an emcee (for hosting the event).
2.3 Customers
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In order to identify the target base of customers, the STP model will be applied. STP
stands for Segmentation, Targeting, and Positioning. This model will allow the business
to identify the most [profitable customer base.
Segmentation: In the process of segmentation, the various segment able groups of the
customers are analysed. The segments in the customer base are analysed as per the
various factors and attributes of the customers (Desarbo et al., 2017). These factors
include their age group (demography), psychological traits, geographical location, and
behaviour. In this event, the customers are segmented under their geographical location
(living in or near Mayfair, London) and psychological traits (high-class people with noble
traits).
Targeting: The targeted customer segment for this event is based on the most
profitable segment that was discussed above. In this context, the most profitable and
approachable segment includes the geographical segment, where people living in
Mayfair, London or nearby it are targeted. This is decided because the potential
customers in the geographical area are most likely to come to the fair and not people
from distant places (Camilleri, 2018).
Positioning: The fair is positioned in the market as the introduction of famous wins in
the UK market. This positioning tactic will allow the customer segment to taste famous
wines all over the world at onetime only cheaper rates. This has the potential to attract
many customers from London, wherein lies its geographical limitations.
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Business Plan: Part 3 – Future Plans
In future business will be successful because management of venture will try to meet
the requirement of the customers. In addition to that, employees of the event
management organisation will conduct a market analysis so that taste and preference of
customers can be boosted. After every three months feedback of customers can be
collected so that services can be improved further. The price of wine will be lowered as
per the income of targeted customers. Some of the strategies that that can be used by
the event management venture to expand their business have been discussed below:
Launching of new services
It is suggested that employees of the event management organisation need to produce
new service in market so that their competitive position can be boosted. At the time of
launching new service market analysis need to be conducted in order to develop
sustainability. Moreover, the business can be expanded to new territory so that
customer’s base can be strengthened.
Discounts
In order to develop the business in future discounts need to be provided to customers is
that they can afford to purchase more units of service and products. For instance,
business of event management can provide discounts on overall service so that
customers can be attracted towards the venture.
In order to promote the concerned business the individual will undertake discount
strategy by providing minimum 10 to 20 % discount to customers so that more number
of customers can be attracted towards business venture.
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Conclusion
From the above report, it can be concluded that the event management is very crucial
for the efficient completion of an event or a project. Further, this report provided the
business analysis for establishing a new venture for organizing an event like Mayfair’s
International Wine Tasting Fair in Mayfair, London. An efficient business plan and
strategy has been developed in the report that signifies the outline of the business,
along with marketing mix of the corporation and other various event requirements. The
target consumer base has been analysed and further, recommendations have been
suggested in this report. Lastly, in the study business strategies have been focused so
that sustainability can be boosted.
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