Proposal For A Profitable Corporate Event By Grand Slam Event Company In London

Discussion

Grand Slam event is a profit-making Event Company that is based In London. It organizes corporate event planning, conferences, event management services, catering, planning and exhibitions for its client all over the United Kingdom. A unique personalized event service is provided by the organization. Grand slam would be organizing corporate events. Business dinner or Banquet event would be established by Grand slam for one of its clients in UK (Clemen and Reilly, 2013). Business dinner is a corporate event, which is organized by Grand Slam to let their clients meeting new hires and celebration of milestones. Events is organized to let the workers mingle and take break and celebrate the achievement. The dinner night event planning can turn it into better relationship contributing toward building teams and social ties. Venue designed for organizing Dinner nights would be the restaurant. It is regarded as common venue for hosting dinner nights of clients (Shepherd et al.,2015).

Banquet event or dinner nights are considered popular, as they can give an event focus. Dinner night’s events planned by Grand slam for its clients. Many banqueting events are organized mainly for profit making purpose. After the allocation of budget, it is required to calculate return on investment. Such calculation will help in pricing sponsorship of events. Banquet event has been planned for making profit. It is likely that guests are willing to pay money for attending the event with highly appealing entertainment and food (Della Lucia, 2013).

There are various sources of income for financing the event. Event managing company needs to consider preparation and timing for applying funding. Some of the funding sources that would be used by Grand Slam are gaming Machines, sponsorships, lottery grants and fundraisers.

Fundraisers-Grand Slam Fundraising comprise of a wide range of activities and such activities involves a combination of enthusiasm and planning.

Crowd funding- Risk of investing in an event is reduced by way of crowd funding an investment are protected from failed ventures. Size up demand, opportunity of testing the ideas, interest evaluation and several inputs for organizing of events is afforded by using crowd funding as a source of investment. For the first time event planner, this funding option is considered apt.

Selling of tickets in advance- Some of the vital funds in the event, budget cam sourced from selling tickets in advance to the target audience. Target audience would reflect the pricing of tickets and it should not be the only funding option.

Lottery Grants- Under this, funding is covered by large areas such as lottery youth, lottery welfare, lottery aged, lottery environment, Lottery Health General and Lottery communities’ facilities.

Spectator’s fees- One of the most common form of event revenue is charging of fees for participating in the events. The participant’s fees cover the cost of events and the basics comprise of appropriate equipment provision, hire of the revenue and event administration.

Beverage and Food sales- Another source of revenue streams would be the purchase concessions. Beverage and food sales can be regarded as lucrative revenue streams. Grand slam can incorporate technology for serving the customers in a better way. Participants can place order for starters and drinks from their seta using the application of their mobile phones. This would act as a new revenue opportunity to the event organizer and the reason is attributable to added convenience (Romiszowski, 2016). This would encourage the participants to consume by purchasing more. Premium participants would also pay premium prices.

Funding source of event

Commemorative program sales- Some of the event organizing company would earn revenue from the sales of commemorative programs. Grand slam would create special program, which could be sold for premium price over the usual sales price. Reason is that it would provide the customers with memorabilia that would be appreciated in value over time. However, not all the participants might be interested in such programs (Vivant, 2013).

Corporate hospitality- packages of corporate hospitality provides benefits to the event organizers. Grand slam can ensure a large block of ticket sold in association with large group of confirmed ticket holders. Such group is capable of upselling the event by offering additional amenities. Such benefit is not offered to individual ticket holders. These benefits can be used by organization for providing incentives to productive employees (Proctor, 2014).  

Merchandizing sales- it implies selling a range of products that is strongly identified with the organization hosting the event. Some of the common example would include selling of caps and forms of clothing that are embroidered with trademarks of the events (Hewison and Holden, 2016). It is expected that participants for their commemorative value tends to purchase such articles. Some other forms of merchandize include drink bottles, pen, badges, and glassware’s.

Raffles- It is evident that the strategy adopted by event organizing company is on the day fund raising. This is a way of generating small amount of money by event organizer. Organization can obtain the goods from sponsor that can be raffled. Event directors that pertains to raffle should identify research legislation. Government often regulates raffle because of misrepresentation and fraud (Getz and Page, 2016).

Some of the other sources of revenue generation is leading to local publicity, catering to prestigious parties and cultivating a reputation for service and quality.

Event manager needs to work closely with the finance manager for organizing the budget of planning the event.

Cost-

Services	Price	Package discount	Sub Total
Creative and Designing team	£ 800	5%	£ 760
Catering services-, This include cocktails, appetizers, dinner and the amount is estimated for expected number of participants.	£ 2500	4%	£ 2400
Ground, Transport and Security	£ 1600	3%	£1552

 
Cost related to Personnel plan:

Site manager	£ 6500
Event specialist	£ 5400
Other	£ 8900
Total payroll	£ 20800

Revenue-

Income streams	Estimated revenue
Spectator fees	£ 17000
Merchandizing sales	£ 3500
Others	£ 7000

 
Breakeven-The breakeven point is the point that the company breaks even.The Break Even is not correct.

 

Break even analysis

(Source: created by author)

Breakeven point for the occasion assumes that the event is one time organized. As per the break-even analysis, projection of sales break-even revenue comes to £1350000 .

Table showing break-even analysis:

Break-even units (Assumed)	300 units
Break even revenue	£ 1350000
Average per unit revenue	£ 4500
Average per unit variable cost	£ 3500
Estimated Fixed costs	£ 300000

Fixed cost	£300000
Revenue	£1350000
variable cost	£1050000
Profit	£1,988

Offer Varied Ticketing Options- The multiple pricing options would help in creating a variety of ticketing option that will help in accommodating number of attendees and collecting the right amount of fees. Having only one ticket option also neglects an audience of those who are willing to pay more. Multiple ticket prices will avoid these issues and maximize attendance and revenue.

The revenue generated from the event can be maximized is to ensure that the additional revenue for the event is cost of entries of attendees or audience. Additional profit can be earned by creation of a tiered pricing structure for booth sponsorship with amazing for exhibitors and event sponsors.

Price estimated for pricing the events is dependent on three factors such as serving the market segment, geographic location and reputation and experience of event planner. Building the effective pricing strategy depends upon how the event is perceived by potential event attendees. Prior to that, it is required for the event organizer to break even in respect of pricing the ticket (Kaner, 2014).

Relevant income streams

Setting price points- Some of the participants are extremely price sensitive and this pricing strategy will help in working to the advantage of event organizer. Grand Slam can offer discount to limited number of participants in a pre-sales promotion (Hirschman, 2014). This would help in alleviating the complaints about high fees if exists and providing an affordable option to participants.

Offering price breaks- Event organizer can offer multiple price points so that people are induced to register early and driving urgency throughout the period of open registration. Specific goals of the event and the time of opening forms the basis of total number of price breaks. Some of the practice that can be used by organizer are adding price breaks before closing the registration, reaching the registration cap at a lower price point and this should be done before preparing the budget (Hammond et al., 2015).

Value based pricing strategy- This involves pricing the events based on perceived value, cost per ticket for the event and the actual price. Under perceived value, the perception drives the transaction as much as the reality. Actual price can be than the perceived value and the triad of value-based pricing is completed by putting the event on per ticket cost (Collier, 2015).

Organizing an event of arranging dinner nights or banquet events for celebrating the achievement of clients. The most appropriate source of finance would be the sponsorship, which is intended to target the businesses matching the event of the organization. However, Grand Slam needs to be very professional in their approach sponsorship. This is so because they need to offer outstanding values in promotional services. The recommended relevant income streams would be Commemorative program sales, spectator’s fees and Beverage and food sales. The recommended pricing strategy that should be adopted by Grand Slam for organizing event of dinner night for its clients would be offering multiple pricing tiers.

Conclusion:

From the above discussion of planning to organize an event of dinner night for one of its clients, Grand slam had made use of various pricing strategies. It has also analyzed different revenue streams and various source of funding has been considered. Analysis of the funding source and pricing strategy has been done by researching the commercial viability of other and similar established events in the market. Financial analysis of the events has been done by using the break-even point and estimating the costs and revenue of the event.

Reference:

Clemen, R.T. and Reilly, T., (2013). Making hard decisions with DecisionTools. Cengage Learning.

Collier, P.M., (2015). Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.

Della Lucia, M., (2013). Economic performance measurement systems for event planning and investment decision making. Tourism Management, 34, pp.91-100.

Getz, D. and Page, S.J., (2016). Event studies: Theory, research and policy for planned events. Routledge.

Hammond, J., Keeney, R. and Raiffa, H., (2015). Smart choices: A practical guide to making better decisions. Harvard Business Review Press.

Hewison, R. and Holden, J., (2016). The cultural leadership handbook: how to run a creative organization. CRC Press.

Hirschman, A.O., (2014). Development projects observed. Brookings Institution Press.

Kaner, S., (2014). Facilitator’s guide to participatory decision-making. John Wiley & Sons.

Proctor, T., (2014). Creative problem solving for managers: developing skills for decision making and innovation. Routledge.

Romiszowski, A.J., (2016). Designing instructional systems: Decision making in course planning and curriculum design. Routledge.

Shepherd, D.A., Williams, T.A. and Patzelt, H., 92015). Thinking about entrepreneurial decision making: Review and research agenda. Journal of management, 41(1), pp.11-46.

Vivant, E., (2013). Creatives in the city: Urban contradictions of the creative city. City, Culture and Society, 4(2), pp.57-63.