Sport Event Tourism: An Analysis of Mercedes Benz Services

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AI Summary
This report delves into the realm of sport event tourism, examining its significance and the role of organizations in promoting their services within this sector. The focus is on Mercedes Benz, which provides premium suites and service bars at The Color Night Run Singapore. The report details the event's characteristics, tourism receipts, and economic factors, followed by an analysis of the target market and competitors. It employs tools such as 7Ps analysis, SWOT analysis, and the Business Model Canvas to assess the event and the organization's strategies. The report concludes with a discussion of management structure and revenue generation, providing a comprehensive overview of the interplay between sport event tourism and product suppliers like Mercedes Benz, highlighting their impact on Singapore's tourism sector.
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Running Head: SPORTS EVENT 1
Sports Event Tourism
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SPORTS EVENT 2
Executive Summary
Sport tourism is the most growing segment in the tourism sector. There are some examples of
Sport event tourism, which include many hallmark events, like; Olympic Games,
Commonwealth games, World Cup and some other championships. Sport tourism includes
different activities, in which population is attracted to a specific location for conducting a sports
event. This is an alleviating force during the times of instability in tourism sector, like; currency
exchange, gas prices, boarder issues etc.
The major objective of this report is to understand the significance of sport event tourism and
how an organization can promote its products by supplying its services to sport event. The paper
includes different aspects related to the event and organizational services. In this discussion,
Mercedes Benz is the organization that is offering premium and luxury suites and service bars to
runners and visitors in The Color Night Run Singapore. The report conducts various analyses of
sport event and organization. At the end, it consists of the management structure and revenue
generation of this sport event.
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SPORTS EVENT 3
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Description about company.............................................................................................................4
Description of sport event tourism..................................................................................................5
Description of products/ services.....................................................................................................5
Tourism Receipts.............................................................................................................................6
Economic Factors............................................................................................................................7
Target Market..................................................................................................................................8
Demographic Competitors...............................................................................................................9
7P’s Analysis...................................................................................................................................9
Product.........................................................................................................................................9
Price.............................................................................................................................................9
Place...........................................................................................................................................10
Promotion...................................................................................................................................10
People.........................................................................................................................................10
Process.......................................................................................................................................10
Physical Evidence......................................................................................................................10
SWOT Analysis.............................................................................................................................10
Strengths.....................................................................................................................................11
Weaknesses................................................................................................................................11
Opportunities..............................................................................................................................11
Threats........................................................................................................................................12
Business Model Canvas for Sport Event.......................................................................................12
Product Positioning........................................................................................................................12
Management Structure...................................................................................................................13
Forecasting.....................................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................15
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SPORTS EVENT 4
Introduction
The tourism industry has begun to identify the sport tourism that refers the understanding of
travel to involve the sport-related activities as a significant market. For competing in emerging
sport tourism market, it is vital for communities to enhance the understanding about the
advantages and effects of sport tourism, potential sponsorship opportunities and other
components engaged in planning and conducting the successful sport event. Sport tourism is a
popular initiative for economic development, including municipalities, tourism and sport
partners.
This report includes the discussion about an organization that is supplying its products and
services to sport events. The organization, which is taken into consideration here, is Mercedes
Benz. The company is offering its Mercedes Benz Suites to different sports event in Singapore.
The event that is considered here is The Color Run Night, Singapore. The Color Run Night is a 5
kilometer and un-timed colorful night run. In order to explain different aspects, the report
includes the description about the event, tourism receipts, competitors etc. Furthermore, it
consists of different tools for analyzing the sport event and organization, like; SWOT analysis,
4Ps analysis, external environment analysis. At the end, it includes some other strategic aspects
related to the sport tourism and product supplier organization, i.e. Mercedes Benz.
Description about company
Mercedes Benz is an international automobile manufacturer and a segment of German Company
Diamler AG. The organization was established in the year 1926 and well-known for luxury cars,
buses, vehicles, trucks and coaches. It is headquartered in Stuttgart, Germany. The major
objective of the company is to manufacture most comfortable, safest and most efficient vehicles
in the world. The company uses the specification and design of the vehicles as per the needs and
requirements of the customers in markets (Alexandris & Kaplanidou, 2014). Since many years,
the company has been engaged to exceptional engineering, visionary design and standard
innovation in the vehicles and its other services. This company is promoting its services by
sponsoring various sport events. It is supplying products and services to the sports events in
Singapore. There is a major event in Singapore, i.e. The Color Night Run, in which the company
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SPORTS EVENT 5
is providing its services, like; the two storey Mercedes Benz suites (Babin and Zikmund, 2015).
In addition, it provides the runners a full service bars, plush lounge seating after running, free
Popsicle tasting etc.
Description of sport event tourism
The Color Run Night is a night-time way to experience the Cheeriest 5K. This event is also
known as Happiest 5k on the planet that is a unique paint race, which celebrates the happiness,
healthiness and independence. There are thousands of color runners or participants, who are
quenched from head to toe in the neon colors at each and every kilometer. They also wear the
backlight headlamps to lighten the glow of nightlife (Bulwa, 2013). In this event, the runners
wear this headlamp to seize the Ultra Violet reactive powder during the color throws. Moreover,
it captures the glow of color zones and attractions at night during the whole neon course.
Now, The Color Run Night is the one of the largest series in the world. It has been experienced
more than 6 million runners all over the world in over 35 nations (The Color Run, 2017). For the
run, there are two major rules, which have to follow by the runners, like; come to the beginning
line being dressed in the brightest neon styles cloths. In 2017, the run will be held in Palawan
Green, Sentosa.
Description of products/ services
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SPORTS EVENT 6
However, Mercedes Benz is an automobile manufacturer organization, but it also supplies its
products and services to The Color Night Run Event in Singapore. This organization is offering
its suites and full service bars for runners, who are coming to Singapore from all over the world.
Additionally, the company offers plush lounge seating after running and free Popsicle tasting
(Evans and Campbell, 2013).
Tourism Receipts
The Color Night Run is an international event that is very popular worldwide. The event entices
the tourists from all over the world. Singapore has been growing the potential of sport in in its
place making objective. This country is organizing various sport events, like Singapore Grand
Prix, Singapore Olympics, Singapore run events etc. In Color Night Run 2016, both the tourist
arrivals and tourism receipts were more than its forecasted data (Barcelona Field Study Centre,
2017). The tourist arrivals increased by 7.7% to 16.4 million. Moreover, the tourism receipts also
grew by 14%. It has increased to $24.8 billion. The event earned higher tourism receipts due
visitors’ pending on shopping, food and beverages and their accommodation.
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SPORTS EVENT 7
According to Singapore Tourism Board, tourism sector in Singapore is the strongest sector in
2016. Although, the country has faced various challenges, like weak economic performance,
Zika virus outbreak, but country has managed to entice more and more tourists and visitors to
enhance its economy (The Color Run, 2017).
Economic Factors
The Color Night Run is for-profit event that is regulated by The Color Run LLC. This event is
neither for the charity nor a non-profit. It has partnered with various national and domestic
charities at the event, like; local food pantry or hospital services for children. As it is a for-profit
event, so it is affecting the growth of country positively. Before the event in 2016, Singapore has
a weaker economy, but it has grown the economy of the country. It is assisting in re-energizing
the Singapore tourism (Ardahaey, 2011). When country holds this event, then people spend their
money on their dresses, headlamps, their accommodation in the city, food and beverages and
shopping. Visitors’ spending is contributing Singapore in its economic growth. The organization
in country can promote their business operations by sponsoring the event, like; Mercedes Benz.
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This vibrant event in the country will enhance life style offerings and new attractions, like;
Permanent digital gallery, KidZania Singapore, Future World at Art-Science Museum. In
addition, it will revitalize the tourism offerings, like; Chinatown Heritage and Zouk at Clarke
Quay. International economic and political instabilities will continue and there will be an
increase in the local competition for the tourism dollars. Singapore may have the economic
benefits from the forecasted tourism progression in Asia-Pacific area (Fyall & Shipway, 2013).
Target Market
The target audiences for The Color Night Run event include young, old, domestic, foreign or the
people for every age group. The people in this event have different speeds and sizes, which are
toeing the beginning line, shapes and ages (Getz, 2008). In this Run, the participants below 18
years are needed to take a waiver, which must be signed by their guardians and parents,
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permitting them for race. Children below 7 years are free to run in this event. All of these color
runners have a blast when this Color Night Run Event takes place.
Demographic Competitors
The major competitor of the Color Night Run event is Blacklight Run Singapore. This is none
other than the happiest, most fun 5K over there. Blacklight does not focus on how fast the people
run, what kind of exercise they enjoy etc. This event welcomes all the participants, who are
looking for a brightening good time (Hollensen, 2015). It is one of the coolest themed running
events in the world. This event is much more than other music and color theme event. This event
is very unique as compared to other run events held in the country. For this event, the registration
fee is 50$ for first 3000 runners and then goes up to 65$.
7P’s Analysis
In the given scenario, Mercedes Benz is offering its services to the Color Night Run Event, so
this report will conduct 7P’s analysis for the company’s services. The analysis is given below;
Product
Mercedes Benz stadium offers various services to the Color Night Run event Singapore. The
organization offers variety of suites for runners, which include the suites located at the field
level, designed to provide luxury facilities and personal services to runners. In addition, it is
offering services bars for premium seating. It is the perfect setting for the runners, sponsors and
other related parties (Han & Nelson, 2015). Each luxury suite includes better amenities, VIP
parking passes and premium catering services. In addition, it is offering plush lounge seating
after run and free Popsicle tasting, so that the runners can get relaxed after running in Color
Night Run event.
Price
Mercedes Benz is offering its services in different packages and types. The suites and service
bars are in different packages, so that people can choose their package according to their
affordability, like; suites, club seating, reserve seating, loge seating and service bars. The prices
of luxury suites are higher than other services of organization. There are two types of suites, like;
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business suites and private suites for runners. These luxury and premium seats are often a good
revenue source for the sponsors and organizers of sport events.
Place
The organization is placing its products and services on their official website and website of The
Color Night Run event. The company is choosing effective distribution channels for placing its
products and services.
Promotion
Mercedes Benz is adopting and implementing various promotional strategies to promote its
services to the runners in event. Organization is using offline and online media to grab the
attention of runners and other related people at this event. It is providing discounts on stadium
suites to the runners, who are regularly participating in the event (Kim, Chen & Jang, 2006).
People
Business organization is appointing its staff and workers at stadium for assisting the runners after
running. The people of Mercedes Benz are working as volunteers at The Color Night Run event.
Process
The process is the way, in which an organization provides its services to end customers. At this
event, the staff or volunteers take the runners to their suites and services bars. It includes check-
in process, registration, food and beverages services (McDonald and Wilson, 2016).
Physical Evidence
Physical evidence has a large impact on the tourists and runners, coming in. The stadium suites
and service bars have good ambience. The staff at suites is very comforting and cordial. The
volunteers and staff follow a dress code to show professionalism (Munar and Jacobsen, 2014).
SWOT Analysis
As Color Night Run is a major contributor to the tourism sector and economy of Singapore, so
there is need to conduct its SWOT analysis for evaluating its external and internal potentials. The
SWOT analysis of the event is stated below;
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Strengths
The Color Night Run event Singapore is a popular global event that is targeting a wide segment,
i.e. families, old and young people, handicapped people etc. There are so many organizations in
and outside of the country, which want to sponsor this event because they will get noticed among
wide target group (Hamilton, 2013). The major positive point regarding this event is that it holds
during weekend that provides possibility to more population to participate in run.
Weaknesses
Apart from these strengths, there are some weaknesses, which are affecting the popularity of
event in the country and worldwide. The Color Night Run event requires lots of volunteers,
because they are not more popular in regions other than Asia-Pacific. There is a lack of
communication between offline and online media that is a barrier to generate awareness about
this event (Nieves & Quintana, 2016). The event is confronting the issue that powdered color is
used to shower during the run. Other weaknesses of the event are such as; poor planning and its
website is not user-friendly and does not give clear information about the event and registration
process.
Opportunities
The Color Night Run Singapore is a colorful run event, which can attract the interest of media
and people towards it. The event has the opportunities to develop new partnerships with charity
organizations and sponsorships with emerging organizations in the country. It assists the event
management to raise the funds for conducting the event every year.
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SPORTS EVENT 12
Threats
One of the major threats for Color Night Run event is its competitor events, which are taking
place in the country. The country is conducting the similar events, for instance; Blacklight Run,
which is diverting the interest of people towards other events. Poor weather conditions of
Singapore are also a reason behind fewer participants in event (Santos & Alonso, 2014).
Business Model Canvas for Sport Event
Product Positioning
Product positioning is the process, which is used by an organization to best communicate their
products and services to the target audiences on the basis of their needs, expectations, effective
distribution and communication channels etc. Mercedes Benz is executing effective product
positioning in placing its products in the market and this sport event. This firm is adopting
product differentiation approach as its product positioning approach. Mercedes Benz is an
automobile manufacturing company. To Color Night Run event, it is offering its stadium suites
and services clubs, where runners can sit after running. It is an innovative concept for this
company. There are very few competitors in the similar business. Additionally, the company is
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