Local Industry Project Report

Local Industry Project Report

Progress and Prospects of Event Management in Jaipur

Acknowledgement

Words are insufficient to express our gratitude

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Executive Summary As per clause (34), “event management” means any service provided in relation to planning, promotion, organizing or presentation of any arts, entertainment, business, sports or any other event and includes any consultation provided in this regard The current condition of the event management companies in the city is not very well they are waiting for the response of the people so that in future they can encash it. In fact right now the role of event management companies is being played by either the hotels or the amusement parks or the community centers. In many cases newspapers work in collaboration with private parties to organize some event. The findings of the project clearly states that the future of event management is very bright in the city although presently its in nascent stage but the people of Jaipur have started accepting such events in the main line. Some such events are like theme based marriages and “Ladies Sangeet” in the marriages. Along with this the growing gathering in the fashion shows and musical concerts is also remarkable. Right now the condition of event management in Jaipur is not very good. The response of people has not been that good that it can attract any event management company here as a full fledged service provider, it will take some time to pick up nicely. Currently the main target segment of these partial or complete service providers are the defense class people or the high class people, in terms of casts the Jain and Maheshwari families have accepted these concepts much widely then any other community. It is expected that event management industry will gear up in Jaipur in near future. The concept needs to be popularized, by proper media coverage. The existing companies should mould their service according to the taste and preference of the people. The scope of event management companies in Jaipur is not very good. As per our findings and the calculations the results are not very encouraging at present. But the projections help us to draw a conclusion that there is a scope for event management companies in near future.

Contents

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Objective Limitations of Project Introduction to Event Management Research Methodology Event Management in Jaipur Data Presentation Analysis and Conclusion Key Problems Recommendations Action Plan

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Objective To study the present industry trends and analyze the potential of event management industry in Jaipur

Approach Note: Identify the key players in this field Identify the scope in terms of the service provided by them Analyze the current market condition Study the type of events which are taking place Study the size of the events in terms of budget and the gathering Study the potential of the market Study the problems faced by the event management companies Study the level of professionalism in the industry Size of the industry in Jaipur Growth rate of industry Biggest event Frequency of events under different categories

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Limitations

The industry is not very well organized so data is not available. As such any event management company doesn’t exist in the city so proper guidelines were not available. In lack of industry experts assumptions are based on our own knowledge of the industry.

Financial details were not disclosed by the organizations so we have taken so we have taken assumptions based on industry knowledge.

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Introduction to Event Management “Events are occurrence designed for marketing interests.” Philip Kotler Event management generally means conceptualizing, meticulous planning, organizing and finally executing an event. It is a set plan involving networking of a multimedia package, thereby achieving the clients objectives and justifying their needs for associating with events. Events can bring community together for purpose of fundraising, change a town or city’s image, expand its trade, stimulate its economy, help companies to market and introduce its product and also for the entertainment of society. Not only do events enhance the quality of our life, they can provide significant economic benefits. Events require a high degree of planning, a range of skills, a lot of energy and funds. Keys to successful events: Organization Co-operation Event Management in India is in nascent condition till date it has achieved only a stature of sector. Still it’s treated as a part of entertainment industry. The size of this sector was mere

Rs. 580 Cr in financial year 2003. The future of this sector is very

bright and its expected that it will grow with a growth rate of 15% to 25% and will touch the turnover of Rs. 1400 Cr in year 2008.

The industry is highly concentrated, the top four players occupies as much as 95% of

8 market share. The top four players are big MNCs, any Indian player has not achieved such size and proficiency. The top four players are: -

   

Wizcraft DNA Networks Midas Metropolis

Corporate Events  Conferences  Corporate Celebrations

Glamour Events  Celebrity Appearance  Fashion Shows  Music Concerts and entertainment shows

Brand Event  Promotion and management of Brands

Televised Events  Events specially created for television channels

Sports Events  Focused around a sporting event

Concept Events (Theme Based Events)  Concept conceived by Event Management Company

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Hybrid Events  Mixture of two or more of the above

Others  Talent Banks  High Profile Weddings, Dance Parties

Activities in Event Management Pre-Event Activities Events typically have a team based environment and a project type of organization structure. Thus, responsibilities are assigned to the relevant staff members in the team for the Event. Coordination of arrangements required is divided among the team members. Once the preliminary discussions are over, and the final concept sold to the client, the very first step creative conceptualiser works on the designing. Then the Project manager prepares a thorough schedule after understanding the critical steps ad issues involved in that particular event. External agencies such as architects and engineering contractors may be consulted at this stage to understand feasibility of planned concepts. Most event management companies have experienced production managers who understand the feasibility of planned concepts. Then the project manager draws up a cash flow statement, a budget statement and arranges budget allocation for the event. Based upon the project requirements critical dates or deadlines are drawn up and the best possible solution among alternatives to achieve these deadlines is chosen. The overall coordinator along with the sales and marketing team should ensure the completion of overall design, models of stages, visuals, etc. with graphics included by the creative team within the prescribed deadlines and make a researched concept presentation to the clients. At this stage, the legalities of drawing up the contract, agreements and finalization by signing of contracts between the event managers and clients becomes a necessity. Keeping the feasibility in mind physical design are finalized and contractors begin work. Here fire, safety and insurance issues need to be taken care of. The

10 coordinator, sales and marketing team then think about production of advertising promotions, brochures, posters, etc. Logistics is another important area that needs to be given priority attention by event coordinators. Logistics in events essentially involves booking of hotels, air, road, and rail transport for the participants and event managers, arranging transportations of material. A joint team of the concept creator and the main contractors then need to check out the special-effects equipments and arrangements. At this time day-by-day tracking of timing and finance with a feedback on possible changes i.e. increase or decrease in expenditure on various items. Finalization of cleaning, security, furniture (tables, seating, barricading etc.), décor (flowers), communication (telephone), and other service hire contracts (couriers) also take up the production manager’s time at this stage. The project manager handles the progress report and gets contingency plans drawn up. The overall coordinator has to continue in touch with the client with reference to the PR, publicity, press releases, and promotion on TV, and radio along with the public relations team. Arranging for a press conference for the clients, and artists, giving out invitations, passes and tickets to the event, organizing the reception for the press with uniforms for the hospitality hostesses/hosts or staff at the reception is also a major responsibility for the PR team in the preparatory stages leading up to the event. Damage control due to artists’ tantrums is yet another aspect typical of this field that the PR team needs to contend with. These have to be tolerated and controlled to avoid any adverse fallout. Final visit for quality checks and control need to be made to the networking components to ensure and confirm understanding. These typically include inspection of dimensions of stage and other critical near finished models for accuracy by the production manager. The overall coordinator along with the other team members needs to then arrange for a briefing of site supervising staff depending on category and type of event. It is essential that the entire briefing and interaction take place before the event begins. Once the event gets started the clients and the contractors’ staff need to be kept away from interfering with the execution by the production manager and the event coordinators. Controlling the panic reactions due to invariable last minute troubles and final tying up of all loose ends is a very important penultimate task. The last stage in the first section involves resolution of on-site wrangles of

11 delivery, permission, missing orders or items, close attention to construction of sets-asking whether it was done correctly, supervision of installation of special effects, objects. During-Event Activities During the event, softer aspects come into the focus. For overall coordinator, it is important to pass on all credit to supervisors. Event managers should look humble and be available to the clients to call on. The conceptualisers’ efforts should be appreciated at least during the event. At the same time, there should be a constant surveillances of the specially effects, display objects and the food and beverages. Thus monitoring is the gist of the during-event execution activity that is involved. Photographs and other multimedia recording arrangements if so desired also need to be taken from strategic locations.

Post-Event Activities Beginning with the physical task of dismantling of the sets, post-event activity also run into accounting and other such works. Final accounts setting (bills to be paid on receipt) is accompanied by explanations for overspends. The team needs to carry out a postmortem analysis on the event and conduct an event evaluation. Recording the photographs taken of the event in the form of a photo-documentary helps a lot. Performance evaluation of the coordinators during the event should be carried out immediately so that weak points after the event can be used for learning. Finally, the overall coordinator should do the formality of thanking all involved for the wholehearted and extra efforts provided. Letters should go out to clients thanking them and these should include a post-event questionnaire seeking to measure client satisfaction. Based on this feedback, improvements and adjustments required should be worked upon. This theory states that the function of management can be classified into planning, organizing, staffing, leading and controlling. Finally, the most important part of Event Management is the execution of the Event as

12 planned. We term this activity as Carrying-out the Event. Therefore, when we use Event Management, it is to denote the production of an Event.

Staging an event takes more than a wish or dream. Preparation is the key to a successful event. Event Planning The first and foremost thing to do while planning an event is to know about the client's expectations. When a client first approaches you for assigning a task, sit with him and find out what he wants and how he wants it. Keep in mind the fact that the client has a very hazy idea of what he wants. He expects you to change that hazy idea into a reality. So you first need to strike a good rapport with him. Once you know his expectations you can start giving your inputs. Since you are a professional event planner he is bound to believe that you have a better knowledge about these things and will respect your judgment.

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Key Factors in Planning an Event  Check the feasibility  Is the event a good idea  Are we in the right community  Who would be the spectators  5.About the venue  About the media of advertising  Fund stream Timing Full time should be devoted to implementation of plans. Make sure your event does not clash with other events. The Organizing Committee It should comprise of experts in the following streams: Financial  Determine the sources of revenue  Expected level of expenditure  Time gap of expenditure and revenue  Establish a system of financial accounting and control Marketing  To attract best possible audiences  Get sponsorship and best support possible Operational  Guide overall operation of event  Managing the technologies required Legal  Make appropriate contracts involved in managing an event

14  Handle lawsuits that may arise Public Relations Teams  To handle the celebrities, if invited in the event.  To host press conferences. This team is required to take decisions from conceptualization to completion of the event. Facilities offered           

Programmes Awards Transport Catering Safety and Security Entertainment Anchoring and announcement Music and Sound system Licensing Publicity Promotion

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Research Methodology Research Design:

 Descriptive For Potentials of Event Management industry: Cluster Sampling of:     

Businessmen Housewives Service Class Professionals Students

Sample Size: 90 Event management Companies: 5 Research Technique Secondary Data Collection  Magazines  Newspapers  Internet

Primary Data Collection For primary data we conducted personal interview and through questionnaires. The approach for interview was unstructured and flexible. Interactions with event managers

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Event Management in Jaipur Event Management in Jaipur is not so old concept. As such very few recognized event management companies exists here. The high profile events organized in city are basically managed by companies working in Jaipur, Delhi and Mumbai. .

The most common events organized here are:  Utasav  Décor India  Handicrafts  Mela  Different Corporate Meetings  Fashion Shows  Musical Concerts  Dandiya Raas Event Management can be classified on the basis of service provided , into two categories: Complete: It covers all the aspects from conceptualization to execution till client satisfaction feedback. Partial: They provide partial services like a combination of few for example lights and catering or music, venue and celebrities.

Event Management is still at a personal level. There is no full- fledged event management company working in the city, but below mentioned organizations are acting as partial or complete service providers.

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News Papers  Rajasthan Patrika  Dainik Bhaskar  Dainik Navjyoti Event Management Companies  Bobbish  U & We  Buskers

HOTELS

Problems:  Event Management Companies ask for too many complimentaries like stay, transportation and security.  Awareness level of Public.

Amusement Parks Fun World Even after being an amusement park fun world is playing the role of an event management company. Fun world is known for its innovative events similar to its inception as the first amusement park in Rajasthan they were the pioneers in the rain dance and theme based weddings. The blend of traditional and modern way is really providing a new look to the marriages. They provide both, complete and partial services. The biggest problem which they are facing is lower level of acceptability for the out of the box thinking. People still prefer marriages and other parties to take place in the

18 traditional way only. In case the suggestions are to improve the effectiveness or presentation of the function people are ready to accept that change.

They organize birthday parties, marriages and fashion shows which are mainly for entertainment or fun purpose. They deal at both micro and macro level there parties are starting from few thousands to as high as 35 lakhs. The biggest event which they have managed was a marriage worth 35 lakhs in year 1997. If required they can call celebrities also, but then the budget will touch 12-15 lakh’s figure. The events that they normally organize are:  Dandiya Nights  Dance Parties  Wedding Paries 

Event Management Companies: Rainbow This is a Jaipur based company. They provide complete and partial services depending upon the needs of the client. They organize all kinds of events. Their major client segment comes from upper class and defense people. Some of their successful events have been:  Fashion Shows ( NIFD)  Dandiya Nights  Dance Parties  New Years Party Specialize in:  Ladies Sangeet  Kitty \Parties

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U & We This is a very small Jaipur based Event Management Company. It was established two years back by Mrs. Kamla poddhar. Till now they use to provide complete service but now on they are planning to provide partial services. The size of their events depends upon the customer needs and requirement. This is a five member team. The events they organize are: Annual Dance Competition Fashion Shows Annual Functions and Cultural Evenings of Schools and Colleges Celebrity Show The biggest problems which they are facing are security system in Jaipur and entrance of the daily newspapers in the event management arena. Because of the lack of awareness Jaipur people are not looking at the event management companies as a facilitator they think its waste of money. Buskers: It is a Jaipur based company, but when they wish to organize any event in Jaipur, they contact Miss Smita. Together they finalize the concept and work on it. She does not have a team working in Jaipur, but has a good network and takes advantage of her contacts. She is just associated with Buskers because of her good contacts. Buskers have just organized two events till now. They are:  Fashion Show  Dance Competition They normally provide partial services to their clients.

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Data Presentation

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Data Analysis

Based on the prior trend the expected number of events in future are approximately 105, out of which the probability to provide services ( partial and complete both) is 56% the figure comes around to be 60 events per annum. The projections regarding the profile of customers are as follows: The majority of customers will belong to same classes professionals and business class. The service class will still remain ignorant to it. Looking at the trend of emerging professional educational institutes, the event management companies are very optimistic. 60% of the respondents said that the major problem in the progress of the industry is lack of awareness and 40% said that getting sponsors for the event is the biggest problem. The profile of events that takes place is still not the utility based like product launch and corporate meetings its still mainly entertainment based only, it occupies 65% of the share of total events. Still event management companies have left one of the major aspect of post event communication which includes the media coverage and the client satisfaction surveys. That is the reason the companies are not able to perform better. This also hinders the brand building exercise of these companies. Looking at the local preferences, the companies are not paying due attention to facilities like catering. The majority of the customers are attending events like marriages, live shows and trade fares only. Events like product launch and utility events form a very small

22 segment. The most preferred price range is Rs. 250-500 and the mean value is Rs. 422 as per our findings. A very less number of people prefer hiring event management companies, the number is as low as 11%, but one can see that the partial outsourcing is preferred by 58% people. The sample’s biggest constituent are professionals(43%) and the business class(28%) people even then the biggest reason for the hindrance of event management companies progress is over priced services (28%). 39% of the sample size gives more importance to overall arrangement rather than other individual facilities, but still people go for partial services (58%) it reveals that the complete services are expensive for the localites. 87% of the sample size feels that the event management industry will flourish in the near future.

Therefore we can say that though the public is ready to accept the concept, but due to reasons like higher expenses, poor availability and reliability of existing players, the picture is not very rosy. But as the awareness level of public will increase the growth of industry is bound to happen. Partial outsourcing is popular as well as acceptable, to a greater extent, therefore it can be hoped that event management companies as a full fledged service provider will emerge.

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Key Problems  Low awareness among the people.  Conservative mentality doesn’t allow people to accept major changes.  Lack of proper marketing and advertising by existing companies.  Proper security measures not available.  Performance of existing companies is doubtful, that is the reason, localities that organize events, hire event management companies from Jaipur, Mumbai and Delhi.  Cost factor influences people to take partial services from event management companies.  Due to poor response and lack of cooperation from public the companies are not interested in expansion.  Economies of scale not available to companies, therefore big players are not interested to enter this city.  Service Portfolio of companies is very wide for the city.

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Recommendations  Companies need to focus on some particular kind of events that they will organize, this will help them gain proficiency in their field, ultimately leading to cost saving.  People should be made aware about the concept through proper media coverage telling them about the successful events and the benefits.  People should be made aware about the fact that hiring an event management company would help them save time, efforts and cost.  Rather then looking at the press people as their competitor they must join hand with them to share the cost and benefits also. Press people can get better exposure and provide the companies advertisements on a lesser cost.  Due to innovative marketing tools the traditional marketing tools are redundant so Jaipur‘s business class must also know that its time to switch over to the new tools like trade fares and road shows rather then press advertising.  The charges for complete services should be reduced. As an example for catering services the general market price is around Rs.75 per plate, but generally companies are charging around Rs.140 per plate. Similarly the other services’ charges must also be reduced up to a viable extent.

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Appendix

Questionnaire Que.1-What is the number of events organised in the city per month? a) 1-5 b) 5-10 c) 10-15 d) 15-above

Que.2What is the number of events organised in the city per month by an event management company? a) 1-3 b) 3-5 c) 5-10 d) More than 10

Que.3 Profile of customers of event management companies a) Business man b) Service class c) Professional d) Educational institutes

Que.4 Problems faced by the event management companies a) Licenses b) Sponsors c) Lack of awareness

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d) Permission

Que.5 Different types of events organised by the companies a) Corporate Meetings b) Product Launch c) Promotions d) Marriages e) Fairs f) Live Shows g) Musical Concerts

Que.6 Which of the following events do you attend? a) Wedding b) Trade fare c) Corporate events d) Live shows e) Sports events f) Product launch g) Club

Que.7 Amount spent to attend an event. a) 0-250 b) 251-500 c) 501-750 d) 751-1000 e) 1001 above

Que.8 Which course of action do you prefer while organising an event? a) Personal arrangement b) Hiring event mgnt comp. c) Outsourcing

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Que.9 -Possible difficulties / drawbacks in hiring an event management company a) Expensive b) Availability c) Reliability d) Quality of work e) Limited choice f) Less flexible

Que.10

To which facility do you give more weight? a) Catering b) Decoration c) Lights d) Overall e) Layout f) Music g) Anchor

Que.11 Do you think event management as a profession/business will be a success in your city a) Yes b) No

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Analysis of public survey

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