Mercedes Benz's Role in Sports Event Tourism: A Singapore Case Study

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This report analyzes the sports event tourism sector, focusing on Mercedes Benz's involvement, particularly its sponsorship and service offerings at the 'Color Run Night' in Singapore. The report begins with an introduction to sports tourism and its economic significance, followed by a description of Mercedes Benz as a company and the 'Color Run Night' event. It then delves into the services provided, tourism receipts, economic factors, and the target market for the event. A 7Ps analysis is conducted, covering product, price, place, promotion, people, process, and physical evidence. Additionally, a SWOT analysis, a business model canvas, product positioning, and a discussion of the management structure and forecasting are presented. The report concludes by summarizing the key findings regarding Mercedes Benz's strategic approach to sports event tourism and its impact on the event's success and economic benefits.
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Sports Event Tourism
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Contents
Introduction.................................................................................................................................................3
Description of the company.........................................................................................................................3
Description of the sports event....................................................................................................................4
Description of the services..........................................................................................................................5
Toursims recipts..........................................................................................................................................5
Economic factors.........................................................................................................................................6
Target market..............................................................................................................................................6
Demographic competitors............................................................................................................................6
7P’s analysis................................................................................................................................................7
Products...................................................................................................................................................7
Price........................................................................................................................................................7
Place........................................................................................................................................................7
Promotion................................................................................................................................................7
People......................................................................................................................................................7
Process.....................................................................................................................................................7
Physical Evidence....................................................................................................................................8
SWOT analysis............................................................................................................................................8
Strength: Strengths..................................................................................................................................8
Weakness.................................................................................................................................................8
Opportunities...........................................................................................................................................8
Threats.....................................................................................................................................................8
Business model canvas for sports event.......................................................................................................9
Product positioning......................................................................................................................................9
Management structure...............................................................................................................................10
Forecasting................................................................................................................................................10
Conclusion.................................................................................................................................................10
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Sports Event Tourism
Introduction
Tourism sector has been considered as the fastest growing sector in the industry.
Moreover, it is also has been ranked as the largest revenue earner and contributor to the
economic developments and growth within a region. Identification of the sport tourism has been
done by the tourism sector and which refers to the understanding of travel which also includes
the activities related to sports as an integral market (Ardahaey, 2011). It is of very much essential
for the societies and the business organizations to enhance and develop the understanding about
the advantages and impacts on sports tourism, potential sponsorship opportunities and other
components which are involved in strategizing and planning for a successful event. And this is
done so as to compete in emerging sport tourism market. Sport tourism can be considered as
beneficial option initiative for economic development, including municipalities, tourism and
sport partners. The below executed analysis has been made focused on the report which involves
the discussion on the sports event which has been conducted by a business organization.
Mercedes Benz is a multinational corporation which has been operating the business activities
and supplying its products and services to sport events. Moreover, the business entity has also
been offering a special services .i.e. Mercedes Benz Suites which are used for conducting the
different sports events in the region of Singapore and also in other regions. The sports event
which has been presented as an example is the “The Color Run Night”, Singapore (Alexandris &
Kaplanidou, 2014). This sports event is a 5 kilometer and un-timed colorful night run. Moreover,
the further report has been concentrated on describing the different aspects of this sports event
which involves tourism receipts, the level of competition faced by the entity etc. The varied
range of mechanisms and the tools for analyzing and evaluating the sports event and also the
same will be done for Business Corporation,
Description of the company
Mercedes Benz is Multinational Corporation and is also an international and well renowned
name in the sector of automobile manufacturing. The brand name is also a segment of German
Company Diamler AG (Babin &Zikmund, 2015). The business corporation is a well renowned
name in offering luxury vehicles, trucks, busses and coaches. 1926 is the year when the company
came to existence and started offering the products and the services and the entity has been
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Sports Event Tourism
headquartered in Stuttgart, Germany. Manufacturing and offering the most comfortable, safest
and most efficient vehicles all over the globe has been considered as the prime objective of the
business corporation. The business entity is very much customer oriented and due to which the
needs and requirements of the consumers are considered on priority. This enables the company
to develop and design the vehicles which offers a high level of satisfaction to the consumers. The
business firm has been offering the exceptional range of engineering products, visionary designs
and standard innovation in their offerings since long duration. The multinational corporation is
also involved in sponsoring various sport events and through this medium the promotion is
executed on larger grounds (Barcelona Field Study Centre 2017). The business entity has been
offering the products and services to the sports events in the region of Singapore. The services
offered for the above mentioned sports event are the two storey Mercedes Benz suites a full
service bars for the athletes, plush lounge seating after running, free Popsicle tasting etc.
Description of the sports event
Figure 1The Color Run Night
(Source-The color run night Singapore, 2017)
The Color Run Night is a five-Kilometer, un-timed colorful night run in which the participants or
the runners are quenched from head to toe in neon colors at each and every milestone. The
runners are also wearing black-light, headlamps for illuminating the night life (Bulwa, 2013).
This event is also termed as sweet starlit party which is featuring a four color zones and color
throws. There is also sweet music played which is pumped from all the zones. This music offers
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a pleasurable experience of nightlife. The event has been considered as the nocturnal method of
experiencing the 5K. The participants or the runners are expected to wear a black-light head
lamp which is for capturing the UV reactive powder when the color id thrown and the glow of
the color zones and the night attractions throughout the entire neon action (Evans and Campbell.,
2013). Generally, this event is also named as a glowtastic party after the start of the event and is
same till the end. This event is also termed as the Happiest 5k event or party on the planet. This
is a unique paint race, which is organized for celebrating the happiness, healthiness and
independence. The numerous participants and the runners are quenched from head to toe in the
neon colors at each and every milestone. Backlight headlamps are wore by the participants so as
to lighten the glow of nightlife. This headlamp to snatches the Ultra Violet reactive powder
which is thrown over the runners during the color throws. Moreover, it captures the glow of color
zones and attractions at night during the whole neon course. At present this event has been
considered as one of the largest night event in the world and approximately more than 6 million
runners all over the world in over 35 nations (Fyall & Shipway, 2013). The event is based on the
two major rules and which are required to be followed by the runners, that the runners are
expected to come to the beginning line being dressed in the brightest neon styles cloths and
finish plastered in glowing colors.
Description of the services
Mercedes Benz is a Multinational Corporation which is a globally renowned name in the
industry of automobile manufacturing (Getz, 2008). The business corporation is a well renowned
name in offering luxury vehicles, trucks, busses and coaches. Manufacturing and offering the
most comfortable, safest and most efficient vehicles all over the globe has been considered as the
prime objective of the business corporation. The business firm has been offering the exceptional
range of engineering products, visionary designs and standard innovation in their offerings since
long duration. The multinational corporation is also involved in sponsoring various sport events
and through this medium the promotion is executed on larger grounds. The business entity has
been offering the products and services to the sports events in the region of Singapore
Toursims recipts
The mentioned sports event is an international event that is recognized very well all over the
globe. The event tempts the tourists and the travellers on international grounds (Hollensen,
2015). A potential growth has been observed in the sports in the place making objective in the
region of Singapore. Moreover, the regions has been organizing number of other sports events,
such as, Singapore Grand Prix, Singapore Olympics, Singapore run events etc. On the basis of
the conducted research it has been analyzed that in case of Color Night Run 2016, both the
tourist arrivals and tourism receipts were estimated more as compared to the predicted data.
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Sports Event Tourism
Approximately, the tourist receipts showed a hike of 7.7% to 16.4 million in comparison and
whereas the tourism receipts were noted at 14 and which grew to $24.8 billion (Dias et al.,
2014). On the basis of another survey conducted by Singapore Tourism Board it has been
determined that tourism sector in Singapore has been considered as the strongest sector in 2016.
Economic factors
The main objective of the mentioned event id profit earning and the same has been regulated by
The Color Run LLC. The event has also partnered with number of national and international
charities, local food pantry or hospital services for children are the examples of these charities.
Profit earning has been offering a high rate of growth to the nation. It has been observed that
earlier before the execution of this event in 2016 (Nieves & Quintana, 2016), Singapore was
considered as a weaker economy. But occurrence of this event has imposed number of positive
effects on the economy and has also contributed in re-energizing the tourism of the nation. The
events tempt the tourists for purchasing the dresses, headlamps, food and beverages and
shopping and also on accommodation in the region. This has been largely contributing in the
economic development. The organization in country can promote their business operations by
sponsoring the event, like; Mercedes Benz (Santos & Alonso, 2014).
Target market
The business entity for this sports event have a wide range of target market as this event can be
joined or participated by young, old, local, foreign or the tourists for every age group (Singapore
Tourism Board 2017). The sports event is participated by the athletes and common audience who
have different speeds and sizes. Only there is an age criteria and .i.e. the participants are required
who are below 18 years are required. This waiver form is required to be signed by their
guardians and parents, permitting them for race. The children below 7 years are free to run.
Demographic competitors
Black-light Singapore has been considered as the biggest rival of Color Night Run. As compared
to the color night run event the Black-light does not concentrate on how fast the runners are
running and what they enjoyed. The athletes and the participants who are in search of good time
are welcome to this event. This event has been considered as one of the coolest themed running
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Sports Event Tourism
events all over the globe (The Color Run 2017). An amount of 50$ for first 3000 runners and
then goes up to 65$ has been charged as a registration fees.
7P’s analysis
Products
There are numerous services offered by the business entity at the Color Night Run event
Singapore. For instance, variety and comfortable suites for the participants, these include the
suites which are located at the field level (The Color Run 2017). These suites are designed for
facilitating the participants with the luxury and other required services. Additional services
include the bars for premium seating participants or the tourists. Moreover, these luxury suites
includes all the required amenities, VIP parking passes and premium catering services.
Price
Varied range of prices and packages are offered by Mercedes Benz. The prices of suites vary and
can be chosen by the participants according to their income level and affordability (Woodside &
Martin, 2008). The suites vary according to their services and these are considered as the best
revenue earning source for the sponsors and the economy as a whole.
Place
The official websites is the main location from where the participants and tourists can fids
required data (Mok, Sparks & Kadampully, 2013). Moreover, sets of effective distribution
channels are also used by the business organization.
Promotion
Social media through internet has been considered as the biggest promotional medium which has
been widely used by the event organizers. Also organization has been making use of offline for
grabbing the attention of runners and other related audience.
People
Volunteers for the stadiums and staff and the other workers for assisting the runners and the
participants are considered as the people of the organization.
Process
The volunteers are trained to assist and aid the participants for offering various services. This
also includes check-in process, registration, food and beverages services.
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Physical Evidence
The stadium suites, the food joints and the service bars should have good ambience so as to offer
better services to the participants (Goodall & Ashworth, 2013). The staff at suites is very
comforting and cordial and also a dress code is followed by the staff and volunteers.
SWOT analysis
The below executed is the SWOT analysis which has been conducted for determining the
following factor of the sports event:
Strength: Strengths
The Color Night Run event Singapore can target the market on wide range as families, old and
young people, handicapped people can participate, and this can be considered as the strength of
this event. Another plus point of the occurrence of this event is that it is held at weekends and
that is the main reason which provides possibility to more audience to participate (Asdullah,
Ahmad & Parveen, 2015).
Weakness
Due to less popularity in the regions other than Asia pacific regions the event can face the issue
of short of volunteers. Also a communication gap has been observed in the offline and online
media and which have grown as a weakness for the event. Sometimes poor planning and miss
management can also be proven as a weakness for the event.
Opportunities
The event has been considered as one of the biggest attraction for the tourists and sports lovers
from all over the globe. The same is in the case of media and investors; they are also getting
attracted towards this. This attraction develops new opportunities such as development of new
partnerships with charity organizations and sponsorships with emerging organizations on local
and international level.
Threats
Intensification in the competitive environment has been considered as the biggest threat for the
color Night Run event. Blacklight Run can be considered as the biggest rival which has come-up
as the threat for the event and which has also become the reason for diverting the interest of
people towards other events.
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Sports Event Tourism
Business model canvas for sports event
Figure 2 The Business Model Canvas
(Source: Business model canvas for the color night run event, 2017)
Product positioning
Product positioning has been termed as the mechanism which is utilized for communicating and
establishing the brand image of the company and their products and services in target market.
Effective positioning strategies are utilized by Mercedes Benz for executing establishing the
products in the market and also the sports event. Product differentiation methodology has been
adopted by the business entity for positioning the product (Pedersen & Thibault, 2014). For the
Color Night Run event, the business entity has been offering its stadium suites and services
clubs, where participants and runners. Moreover, the business entity has been offering a varied
range of services and that to different cost packages, so it can be experienced by every runner
according to their affordability.
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Sports Event Tourism
Management structure
The management team plays an integral in the execution of the operations and functionalities of
the business. The management has been engaged in the various functions. The below presented is
the diagram which has been indicating the management structure for The Color Night Run event
in Singapore. This diagram represents the structure which includes different hierarchy of
management within the business organization. The top level management of this sports event
consists of the advisory committee and authorities which play a role of planning for the sport
event also decisions regarding the event, such as; location, city for event are liable to this comity.
Duties and responsibilities of middle and lower level management comprises of rewards,
instructions for runners etc.
Forecasting
Revenue generation in the Color Night Run event can be done ticket selling, registrations,
memberships etc. On the basis of the conducted research it has been predicted that there will be
huge revenues this year, i.e. 70$ million, is the estimated increase by 5% in the second year. An
increase in the awareness about this event, there will be a hike in the revenues by 10% for the
third year.
Conclusion
In the limelight of the above executed analysis it has been concluded that Mercedes Benz is the
multinational brand name in the sector of automobile and other related services and are
organizing a ports event .i.e. the color night run event, Singapore. The above presented report has
been
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References
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and destination provisions. Sport Marketing Quarterly, 23(3), 125-127.
Ardahaey, F.T. (2011). Economic Impacts of Tourism Industry. International Journal of Business
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Babin, B.J. and Zikmund, W.G. (2015). Exploring marketing research. Cengage Learning.
Barcelona Field Study Centre. (2017). Tourism Costs and Benefits. Retrieved from
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Bulwa, D. (2013). Color Run attracts casual athletes. San Francisco Chronicle.
Evans., N and Campbell., D. (2013). Strategic management for Travel and Tourism. Routledge.
Fyall, A. & Shipway, R. (2013). International Sports Events: Impacts, Experiences and Identities.
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Getz, D. (2008). Event tourism: Definition, evolution, and research. Tourism management, 29(3),
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Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
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Woodside. A.G. & Martin, D. (2008). Tourism Management: Analysis, Behaviour and Strategy.
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Sports Event Tourism
Mok, C., Sparks, B., & Kadampully, J. (2013). Service quality management in hospitality,
tourism, and leisure. Routledge.
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