Market Research

Event Management is regarded as the process to apply the concept of project management for the creation and the development of specific events like festivals, community programs, conferences, ceremonies and others. At the time of the organizations of creative events, the responsible event managers are needed to take into account all the relevant factors required for the effective organization of the events. The main aim of this report is the organization of the Annual Community Function. The program will take place on 15^th July, 2018 at the community auditorium. There will be several parts of this event. There will be a singing performance by solo artists along with band performance. The singing performances will be followed by individual dance performance along with dance troop performance. After that, there will be recitation performance. The program will also include the prize distribution ceremony of the annual sports of the community. After the completion of all these performances, there will be a dinner party for the residents of the community.

At the time to conduct any kind of creative events, it is needed to consider the aspect of market research in order to make the event more purposeful and entertaining for the spectators. At the same time, market research helps the event committee to consider specific types of program and activities for the entertainment of the whole spectators. There is not any exception of this fact in case of this specific event. A market has been conducted among all the members of the community for the selection of programs in the event. The aim of the community was to arrange program for all the members of the community. In the survey, views and ideas were taken from the residents of the community on the selection of program. Based on the result of the market research, all these programs in the event have been selected. It needs to be mentioned that this survey has been majorly helpful for the event committee to understand the perspective of the people of the community on the selection of the events. This survey contributed to a more appropriate selection of program in the event (Bhatt, Manadhata and Zomlot 2014).

Event Budget is considered as a tool for the projection of the income and expenses of the event based on the gathered information and the preparation of budget is considered as an essential part of the event management (Jones 2017). This same aspect is also applicable for the undertaken community program and the following table shows the budget of this community event:

Expenses	Amount (£) Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
Rent for the Venue Rent for Chairs, Tables and Other Furniture Rent for Equipments Decorations Foods and Drinks Fess for Performances (Singing and Dancing) Travel for Performers Pair Advertising Miscellaneous Total	9000 2500 3000 2500 10000 12000 3000 5000 3000 50000
Revenues	Amount (£)
Spectator Fees Participant Fees Sponsorship/Donation Total	20000 15000 35000 70000

Table 1: Budget

(Source: As created by author)

The Breakeven Point is considered as the sales amount either in unit or in revenue is required in order to cover the total costs of the event that is both fixed cost and variable cost. For this particular event, the analysis of breakeven point will give the committee idea about how much tickets they are needed to sell to cover all the expenses of the event. For the analysis of Breakeven Point, the required assumptions are provided below:

Budget of the Event

Total Fixed Costs: $30000

Variable Cost per Unit: $100 per Unit

Sales per Unit: $250

Desired Profit: $20000

There is a specific formula for the calculation of breakeven of the event and it is provided below:

Breakeven = Fixed Costs/ (Sales Price per unit – Variable cost per unit)

For this particular event,

Breakeven = $30000/ ($250- $100)

                  = $30000/$150

                  = 200 Units

The formula for converting the breakeven units in dollar is as follows:

Breakeven ($) = Breakeven (Units) x Sales price per Unit

                      = 200 units x $250 = $50000

Funding is considered as a major step in the process of event management and it deals with the question “where is the money coming from?” There are many income sources that help in financing the events and it is also applicable for this specific community event (Quinn 2013). The main funding options of the event are as below:

1. One major portion of the funding will come from the saving that the event committee has been doing after the last event (Larson et al.2014).
2. Another huge portion of the funding will come as the proceeds from advanced sale of tickets. For this reason, it is needed for the event committee to print a ticket for the event that will include the ticket price along with some basic descriptions of the event.  

1. Lastly, another major part of funding of the event will come from the donation as well as sponsorship from different parties (Van der Wagen and White 2018)

The following table shows the amount comes from the main sources of funding apart from the sale of tickets:

Sources of Funding	Amount (£)
Savings Donations Sponsors Total	5000 20000 10000 35000

Table 2: Sources of Funding

(Source: As created by author)

In order to ensure the effective funding for the community event, the event committee is needed to ensure the proper advertisement of the event. This will help in attracting more fund-providers to the event. At the same time, effective advertisement and promotion helps in increasing overall awareness about the community event (Ziakas 2013). In addition, more spectators will be able to know about the program. As budget is a constraint here, the event committee is needed to consider the cheap but effective mediums of advertisement. For the purpose of advertising, the event committee is needed to provide advertisement in the form of posters and leaflets in the in the local area so that people become aware of the program (Kuppuswamy and Bayus 2018).

Pricing is another major success factor for the event as the event committee is needed to price the tickets effectively after taking into account all the relevant aspects. The committee is needed to divide the total cost by the number of visitor. In this way, the price of each ticket can be obtained (Rojek 2014).

As per the budget, £20000 is the expected income from the tickets; and the expected number of spectators of the event is 800. Thus, the price of each ticket is as follows:

 £20000/800 people = £25 per ticket

In this aspect, it needs to be mentioned that the event committee is needed to take into consideration all the cost factors of the event for effective pricing like the fixed costs and the variable costs. At the same time, they are needed to consider the profit margin of the event. Consideration of all these aspects makes pricing more effusive.

The event committee is needed to ensure about the major stream of the event. There will be three major income stream of the event:

1. Fees from the spectators are the first stream of revenue of this event as it is expected that large number of spectators will visit the community (Heagney 2016).
2. Fees from the participants those who want to sing, dance or recite in the program is another stream of revenue for the event (Jiangand Schmader 2014).
3. Lastly, donation and sponsorship is another major stream of revenue for the event.

According to the budget, the main income stream of the event is as follows

Stream of Income	Amount (£)
Income from the Tickets Income from the Fees of Some Participants Income from Donations, Sponsors and Savings Total	20000 15000 35000 70000

Table 3: Sources of Income

(Source: As created by author)

For this reason, it is needed for the community to make the event more attractive by including attractive and entertaining program for the spectators. This will lead to the selling of more number of tickets of the event

The aim of the event committee should be increase in the Return on Capital Employed (ROCE). For this, the recommendations are shown below:

• The event committee is needed to take measures to decrease the overall expenses of the event so that the profit margin of the event can be increased. Increased profit margin contributes towards the improved ROCE (Arrow and Kruz 2013).
• The event committee needs to ensure the sales of the event tickets in a large amount. This will help in increasing the profitability and ROCE as well (Peneder 2014).

Conclusion

For the successful organization of any event, the event organizers are needed to calculate the total cost of the event so that effective pricing can be done. At the same time, they are needed to take into consideration all the potential streams of revenues as well as financing for making the events successful and profitable. 

References

Arrow, K.J. and Kruz, M., 2013. Public investment, the rate of return, and optimal fiscal policy. RFF Press.

Bhatt, S., Manadhata, P.K. and Zomlot, L., 2014. The operational role of security information and event management systems. IEEE security & Privacy, (5), pp.35-41.

Heagney, J., 2016. Fundamentals of project management. Amacom.

Jiang, J. and Schmader, S.W., 2014. Event management education and professionalism: The view from the trenches. Event Management, 18(1), pp.25-37.

Jones, M.L., 2017. Sustainable event management: A practical guide. Routledge.

Kuppuswamy, V. and Bayus, B.L., 2018. Crowdfunding creative ideas: The dynamics of project backers. In The Economics of Crowdfunding (pp. 151-182). Palgrave Macmillan, Cham.

Larson, E.W., Gray, C.F., Danlin, U., Honig, B. and Bacarini, D., 2014. Project management: The managerial process (Vol. 6). Grandview Heights, OH: McGraw-Hill Education.

Peneder, M., 2014. The impact of venture capital on innovation behavior and fi rm growth. In Perspectives on Financing Innovation (pp. 193-223). Routledge.

Quinn, B., 2013. Key concepts in event management. Sage.

Rojek, C., 2014. Global event management: A critique. Leisure Studies, 33(1), pp.32-47.

Van der Wagen, L. and White, L., 2018. Event management: For tourism, cultural, business and sporting events. Cengage AU.

Ziakas, V., 2013. A multidimensional investigation of a regional event portfolio: Advancing theory and praxis. Event Management, 17(1), pp.27-48.