As popularity for sports tournament is increasing rapidly across the globe and at the international level, there are only few sports tournaments which conduct all types of sports. Austage Events is engaged in creating world-class event experiences for corporate, entertainment, fashion, education and not for profit spaces since 1994. In order to expand their business, organization has decided to expand its operational area by introducing a special sports event.
As this event will be conducted at international level, all the international players fro, different sports background will be invited to participate for making the event successful. Along with this, retired players will also be invited in this event to properly organise and judge the matches which will be conducted between several international and domestic players. Apart from this, organization will fund this event by multiple mediums such as public funding, investors will be approached and the idea of international sports event will be promoted to them (Austage Events, 2018).
With the help of idea of launching sports event at international level, organization would be able to enhance its revenues, profitability along with generating various opportunities to expand their presence in the different parts of the globe. The major sports events are Olympics which are conducted by International Olympic Committee (IOC) and Asian Games also known as Asia are conducted by Asian Games Federation (AGF). Standing along with these two big events will help the Austage Events to gain popularity across the globe (Wood, et. al., 2015).
Mission
Austage Events’ mission is “to be the service leader for Australia’ Audio Visual and Event needs”. In addition to this mission, organization has expanded its goals and objectives in relation with being the service leader in the event industry along with expanding their event operations in numerous fields. Austage Events has also adopted technology for conducting their events in an effective manner.
They have developed a team of technical directors who are capable and passionate enough to bring event vision into life. Organization also supports innovative applications to be creative and modern enough to generate 2D and 3D visual insights into their events. As organizational mission is to be the service leader in the overall event industry and for this, organization has decided to expand their operational area by investing and introducing in an international sports tournament which will be launched under the name “International Sports League” (Austage Events, 2018).
Product offering
Austage Events was stated in a small warehouse on Mitchell Road in Alexandria, Sydney. Joe and Collen are two founders which worked really hard to build this business along with making it capable enough to stand with other international event companies. Austage Events operates in various fields and they have developed their position as expert in the fields like corporate, entertainment, education and fashion.
Organization has already developed its national image and now organization is planning to expand its business at the international level for becoming leader of the event planning service companies. Along with these fields, organization is now coming with a huge event through which the company will be able to mark itself as a big international event organiser along with becoming primary competitor for Bassett Events, MKG-New York, Colin Cowie, etc. (Event Manager Blog, 2018).
Market Analysis
Industry analysis
Global event industry is increasing rapidly and with regards to this, demand for event service planning companies is also increasing. Event industry is not engaged in executing wedding and birthday parties. There is a huge role of event industry in various fields like in terms of brand promotion, execution of events. Revenue of B2B event industry across the globe amounted to 30.3 billion U.S. dollars in 2016 which was approximately 29.3 billion more than the previous year (Quezada, Walton & Sharma, 2016).
Scope for event industry is increasing rapidly in the developing countries along with the developed countries as individual disposable income is rising rapidly. Austage Events has their offices in Melbourne, and Perth in order to reach to their target audience (Pek, 2016).
Threat of substitutes
As such there are no substitutes for the event planning services, thus, threat of substitutes is weak factor which could affect organizational performance. The major substitute available is manual handling of the events by the host party but as it is quite complicated task, thus, people prefer to outsource it to event organisers for the objective of executing particular event in an appropriate manner.
Threat of new entrants
There are various big players already exist in the global event industry and with regards to this, threat of new entrants is also a weak factor for the existing players. Before giving an event to an event organiser, host party thinks for number of times and with regards to this, organization goodwill and its effect in the market plays vital role. Setting goodwill in front of the big event organisers is a challenging task for the new entrants, thus, functionalities of Austage Events will not get affected (Mizgier, et. al., 2015).
Buyer’s power
As such no event company is organising sports league at international level as planned by Austage Events. Thus, the scope for buyers to switch towards other event companies does not have much scope. There are numerous sports which are played across the globe and organising a sports league at the international level will help the organization to bring interest of different customer segments along with attracting big investors to raise the funds (Yamada, et. al., 2015).
Supplier’s power
Austage Events believes in developing good relations with their customers as well as with their suppliers for sustainable growth and development. Another major objective for retaining better relations with the existing suppliers is retaining its potential and existing clients for long run (Jugenheimer, Sheehan & Kelley, 2015).
Industry rivalry
Event industry is overloaded with the competition and this competition is a never ending race. Although, competition helps the companies to be unique, creative and innovative to stay ahead from their competitors, thus, competition should be present. With regards to the introduction of sports league at international level, level of competition is quite low. Thus, Austage Events would be able to set up its brand image in the global event planning service industry (Eventbrite, 2018).
Competition
As event industry is growing at fast pace, thus, it is necessary for the organization to make its unique image in relevance with beating their primary competitors. Top event companies across the globe are Bassett Events, MKG-New York, Colin Cowie-New York, David Tutera-New York, A Perfect Event, and many more which have acquired a large part of the market share. In relation to this, it is necessary for every organization to adapt change because every industry requires change for growth and development (Yau, 2018). In consideration to retain its brand image along with retaining its competitive advantage, it is required for the organization to introduce unique services along with their existing services for retaining their existing and potential customers’ interest (Woodward, 2018).
Primary market
Primary target market for the new event organised by Austage Events are the national and international sports personalities. The International Sports League will conduct various games amongst these players and award them with fancy prices and medals on the basis of their performance in the competition. The theme of this sports league will be quite similar to the theme of Olympic Games, although, it will not be as huge as Olympic Games, but still it will be a big platform for the players who have talent and never got the chance to showcase their skills yet. With regards to this, organization will target every customer segment that has certain level of interest in the sports. This will help the organization generate revenues for their International Sports League (Pisano, 2017).
In order to approach to the target customer segment, organization will choose the most suitable location to conduct the sports tournament where consumers could reach easily along with the market where demand for sports tournament is high. Organization will promote their sports league with different modes of promotional and advertisement strategies in order to gain desired goals and objectives along with making their capable enough to stand with the top event organisers across the globe (Van der Wagen & White, 2014).
Marketing
This is the most effective element of a business plan and it has the potential to create brand awareness and product awareness amongst the target audience. With regards to this, organization could easily uplift its performance by generating demands amongst the target audience through different marketing strategies. One of the effective marketing strategies for promoting a new product in the target market is marketing mix which consist of four effective elements i.e. product, price, place and promotion (Brown, 2014).
Product
Austage Events has decided to enter into sports event category with the objective of enhancing their customer base and operational area. The wide will be their operational area, the more opportunities will be generated for the organization to grab huge market share. At the international level, there are only options for the sports persons to showcase their talent and in these tournaments, few people get the chance to participate but the event organised by the Austage Events will provide opportunity to all those people who have some skills and talent but never got the appropriate platform to attain their goals (Buathong & Lai, 2017).
Price
In order to attract larger group of audience towards the event conducted by the organization, fair pricing strategy will be adopted. With the help of this strategy, prices for the tickets and passes will be set to the average amount through which all types of consumer segments will be targeted which will ultimately help the organization to boost up their revenues and profitability (Van der Wagen & White, 2018).
Place/distribution
In relevance with targeting large number of audience, organization will host this big event at one of the most visited places across the globe. Centralised location will play vital role in the success of International Sports League with the objective of enhancing organizational image along with gaining positive and desired goals (Ardolino, et. al., 2018).
Promotion
In relation to the marketing and promotion of International Sports League, organization will mainly focus over digital mediums of promotion. As their primary target market segment are the people interested in sports, digital mediums will be the most appropriate options for spreading awareness amongst them. Social media platforms like Facebook, Twitter, Instagram, Snapchat, etc., email marketing, third party website promotion, search engines, and various other digital marketing tools will be used for the purpose of promoting their new event (Leite, Pahlberg & Aberg, 2018).
Along with the digital marketing tools, organization will also focus over traditional marketing mediums such as television and newspaper as other tools of traditional media marketing will not create much difference. Integration marketing communication tools will be other crucial elements for the organization to promote their new idea in the target market with the objective of gaining positive outcomes (Getz & Page, 2016).
Financial Plan
|
Resource Requirements |
|
|
Resource |
Amount ($) |
|
Sports equipment |
50,000.00 |
|
Stadiums |
75,000.00 |
|
Labour |
15,000.00 |
|
Office Staff |
25,000.00 |
|
Working capital |
35,000.00 |
|
Total |
200,000.00 |
|
Austage Events: Sales Forecast for first year |
||||
|
Product |
Average price |
Total |
||
|
Different sport equipment |
300,000.00 |
30,00,000 |
||
|
Stadiums, Power backup |
2500.00 |
25,00,000 |
||
|
Accessories |
150.00 |
30,000 |
||
|
Total |
55,30,000 |
|||
|
Austage Events |
|
|
Profit & Loss Statement |
|
|
|
Amount ($) |
|
1st Year |
|
|
Sales |
$5,530,000 |
|
Miscellaneous income |
$0 |
|
A. Total |
$5,530,000 |
|
B. Cost of Sales |
$2,212,000 |
|
C. Gross Profit (A-B) |
$3,318,000 |
|
D. Operating Expenses |
|
|
Salary |
$40,000 |
|
Rent |
$12,000 |
|
Utilities |
$1,000 |
|
Insurance |
$500 |
|
Marketing |
$10,000 |
|
Maintenance & Repairs |
$5,000 |
|
Other |
$2,500 |
|
Total |
$71,000 |
|
Operating profit |
$3,247,000 |
|
Less: Interest |
$250 |
|
Profit before tax |
$3,246,750 |
|
Less: Tax @ 30% |
$974,025 |
|
Net Profit AT |
$2,272,725 |
Capital Risks
The major risk factors involved in this International Sports League will be the failure of the event because till now, none event organisers have gone to this big level for organising a sports tournament. Although, the idea is unique and it will provide chance to new talent through which various countries will get the valuable and talented sports personalities which were hidden yet. The cost of conducting this event is very high and with regards to this, organization will raise the funds from different sources which could be a huge debt over the organization if the idea of executing International Sports League will fail. In order to gain positive outcomes, promotional campaigns will be executed at large scale in order to spread awareness amongst the target audience (Medina, 2015).
Conclusion
From the aforesaid discussion, it can be concluded that organization could easily accomplish its desired goals and objectives with regards to its new idea of launching International Sports League in the marketplace. In this report, business plan in relation with the introduction of International Sports League have been discussed. Along with the business plan, financial projections have also been discussed in order to analyse the effectiveness of the new idea. As Austage Events is one of the giant event planning service corporations, it has been predicted that Austage Events would also be able to develop its effective image in the international events planning service industry.
References
Ardolino, M., Rapaccini, M., Saccani, N., Gaiardelli, P., Crespi, G. and Ruggeri, C., 2018. The role of digital technologies for the service transformation of industrial companies. International Journal of Production Research, 56(6), pp.2116-2132.
Austage Events. 2018. About Austage Events
Brown, S., 2014. Emerging Professionalism in the Event Industry: A Practitioner’s Perspective. Event Management, 18(1), pp.15-24.
Buathong, K. and Lai, P.C., 2017. Perceived Attributes of Event Sustainability in the MICE Industry in Thailand: A Viewpoint from Governmental, Academic, Venue and Practitioner. Sustainability, 9(7), p.1151.
Event Manager Blog. 2018. 100 Event Statistics (2018 edition)
Eventbrite. 2018. The Events Industry in 2018 [Infographic]
Getz, D. and Page, S., 2016. Event studies: Theory, research and policy for planned events. Routledge.
Jugenheimer, D.W., Sheehan, K. and Kelley, L.D., 2015. Advertising media planning: a brand management approach. Routledge.
Leite, E., Pahlberg, C. and Åberg, S., 2018. The cooperation-competition interplay in the ICT industry. Journal of Business & Industrial Marketing, 33(4), pp.495-505.
Medina, P., 2015. Within-firm responses to import competition: Quality upgrading and exporting in the peruvian apparel industry. Duke Economics Department Job Market Paper.
Mizgier, K.J., Hora, M., Wagner, S.M. and Jüttner, M.P., 2015. Managing operational disruptions through capital adequacy and process improvement. European Journal of Operational Research, 245(1), pp.320-332.
Pek, C. 2016. 4 Ways to Stay Ahead of your Competitors in the Events Industry .
Pisano, G.P., 2017. Toward a prescriptive theory of dynamic capabilities: connecting strategic choice, learning, and competition. Industrial and Corporate Change, 26(5), pp.747-762.
Quezada, G., Walton, A. and Sharma, A., 2016. Risks and tensions in water industry innovation: understanding adoption of decentralised water systems from a socio-technical transitions perspective. Journal of Cleaner Production, 113, pp.263-273.
Van der Wagen, L. and White, L., 2014. Human resource management for the event industry. Routledge.
Van der Wagen, L. and White, L., 2018. Event management: For tourism, cultural, business and sporting events. Cengage AU.
Wood, Y.I., Sturny, A., Neill, L., Brown, A. and Aprea, R., 2015. The “New World” and international pâtisserie competition. British Food Journal, 117(4), pp.1226-1238.
Woodward. 2018. Dealing with Competition in the Event Planning Business.
Yamada, W., Torii, D., Kikuchi, H., Inamura, H., Ochiai, K. and Ohta, K., 2015. Extracting local event information from micro-blogs for trip planning. In Mobile Computing and Ubiquitous Networking (ICMU), 2015 Eighth International Conference on (pp. 7-12). IEEE.
Yau, D. 2018. 10 World Famous Event Planning Companies.
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