The Keys to Event Management - Essay Example

Event Management Name: Institution: Course Title: Tutor: Date: Executive Summary Marketing forms a salient feature of connecting the firm, market and the product. Engaging in festivals and events is one of the approaches to marketing and part of integrated brand promotion approach. Integrated brand promotion connotes the efforts that firms create to convince consumers to purchase their products. Events fall under the promotion concept of communication under the 4Cs. The principal contribution of event to marketing is by addressing brand awareness, recognition, and behavioural intentions. Attaining effective event that markets the exhibitors, give the host and income and the attendants adequate information so as to purchase is the ultimate goal of events organiser. Event management is a complex process that borrows from different perspectives. The first is conceptualisation and feasibility study so as to see the return margin as compared to the input. The second would be to identify the stakeholders to be engaged so that the feasibility is achieved. The next would be planning and decision making. Under this, the organisers plan for various factors like labour, risks and operational strategies. The others would be to do the actual plan as outlined in the action plan. Moreover, it is important to analyse the sustainability of the project in the long run and keep on evaluating it. The emerging fact is that managing an event is not an easy task and for an organisation to succeed it is commendable that they institute appropriate organizational structure. In addition it is prudent to seek the support of all stakeholders in the area such as local leadership, politicians, the community, and event sponsors among others. Moreover, it is critical to ensure the team consists of experienced, committed, and proactive manager, staff and volunteers. Lastly, it would be of good use if the program is well balanced with unique and outstanding main attraction, as well as attractive elements. Table of Contents Executive Summary ii Table of Contents iii 1.0 Introduction 1 2.0 Background 1 2.1 Event Conceptualization and Feasibility 2 2.2 Event Bidding 3 2.3 Event Design 5 2.4 Event Experience 5 3.0 Stakeholders 6 4.0 Planning and Decision Making 7 4.1 Strategic Planning, Leadership/ Mission Vision and Objectives 7 4.2 Operational Planning/ Project Management 7 4.3 Organisational Structure and Human Resource Management 8 4.4 Marketing and Communications of the Event and Sponsorship 9 4.5 Controls and Budget 10 4.6 Risk Management 10 5.0 Staging/ logistics 11 6.0 Sustainability 11 7.0 Evaluation and reporting 11 8.0 Knowledge Creation 12 9.0 Suggestions 13 Festival Management 1.0 Introduction Festivals have become an in thing and service oriented sector that helps organisations achieve their missions. Events/ festivals done or sponsored by organizations, collaboration of specific industry players and or regulators of the same sector is an avenue for, achieving corporate strategy through providing information about the company & its products, sales, promotion & marketing and conducting social corporate responsibility. In essence it is a means of connecting with customers and other industry players. This therefore translates to the fact that event management is a critical factor in achieving these goals as it guarantees enough publicity & turn out and smooth running of the event through emotional and logical marketing (Tassiopolos, 2005, p.12). The core of this process is the ability of the contracted entity to analyse the intricacies of the brand, be in a position to identify the target group, devising strategies on logistics, formulating a running theme and actualising the whole concept. The whole essence is to add value to the sponsor by ensuring returns on the initial input. The main rationale behind this argument is that events can have huge impact on the immediate society. The emerging theme is that event/ festival management acts as a strategic marketing encounter. Moreover, it can be seen as launch pad for products, corporate meetings and surveys among others. This paper examines the concept of festival/ event management by using a case example of beerfest festival. 2.0 Background The inaugural South West Craft Beer Festival was initiated so as to showcase the growing craft beer industry in the south west corner of Western Australia. A region better known for fine wine, the Festival aims to bring together craft brewers and beer lovers in a relaxed setting at Palandri 3 Oceans Estate and it is in its second year. The event normally take place on the long in march and aims at raising the profile of local craft beers on a national scale, as well as bringing additional business to the south west region. The days that are usually abuzz with activities are Saturday from noon to 19.00 hours. The second day starts at ten in the morning and end at 16. 00 hours. The festival normally has music stage, brewery tents, local produce vendors and a children’s amusement area. The essence of the event is to entertain just everyone. 2.1 Event Conceptualization and Feasibility The craft beer industry plays a significant role in the economic development of Western Australia. As such, the South West craft beer festival was conceptualized as a viable and feasible way to showcase and market the fine wine from the south west corner of Western Australia. The festival was also aimed at bringing together all the stakeholders in the craft beer industry, which includes craft beer brewers and lovers in Western Australia. The venue of Palandri 3 Oceans Estate on Bussel Highway just north of Cowarmup was the unanimous choice as the site for the inaugural South West Craft Beer Festival. This is because it provided a relaxed setting for both the craft beer brewers and lovers. The environment was conducive for craft beer brewers to showcase and market their products as 59% of those interviewed said they enjoyed taking beer while 64% confirmed they would attend the craft beer festival in Busselton if they were free. Other than celebrating the finest craft brews in the south west corner of Western Australia region, the festival is conceptualized for the celebration of the region’s produce, as well as music. 44%, 23%, 25% and 8% of those interviewed cited beer, music, getting away and the location as some of the things that would interest them in the Western Australia craft beer festival. As such, the craft beer festival will be highly feasible for craft beer brewers and lovers. With regard to event management, the Western Australia craft beer festival is organized to accommodate everyone thus dubbed “A Beer Festival for everyone”. The large number of anticipated festival goers for the March 2013 event stands at 4,000. The event is organized to take place on the long weekend and will culminate with a family day out on Sunday. This makes even more feasible as most people are usually free on the weekends and Sunday is a good day for a family get together in a relaxed environment such as Palandri 3 Oceans Estate on Bussel Highway. 2.2 Event Bidding Bidding for a mega-event such as the South West Craft Beer Festival is extremely demanding and a tight process. It is usually carried out by individuals from a wide range of professions and backgrounds. According to Tassiopolos (2005, p.325), those involved in the bidding process must ensure that they get everything right the first time. Crisis management is essential for the entities involved, especially due to the time-limiting and complex nature of the whole bidding process for a major event such as the South West Craft Beer Festival. As such, it is essential for the bidding entities to establish and institute simple, correct and effective bidding processes and systems in the initial stages of the process. It would therefore be necessary for the South West Craft Beer Festival event managers to prioritize specific areas of work at the different stages of the bidding process. This will be beneficial in the allocation and management of the scarce resources set aside for the organization of the South West Craft Beer Festival. Some of the crucial systems which must go hand-in-hand with the bidding process, which must also be established and instituted at the outset include; financial management, cost monitoring, cost saving, event planning, as well as community involvement. In the later stages of the bidding process, implementation, and marketing as well as local and international communication become more of priority for the whole event management process (Tassiopolos, 2005, p.325). Success of the South West Craft Beer Festival is of significant importance for the organizers and other stakeholders of the event. As such, effective structuring of the bidding process is of critical importance. Therefore, the set up needs to be relatively flexible, flat, fast-reacting, as well as productive. Inadequacies such as resources, structure, support and systems must be effectively addressed as they have the potential to severely compromise the whole bidding process for the South West Craft Beer Festival event. Work schedule must thus, be developed with regard to the local dynamics and suit the broad areas of work to be handled. Areas of responsibility must thus, be clearly defined to avoid confusion, overlapping and facilitate accountability for the completion of each task (Tassiopolos, 2005, p.325). Due to the nature of the bidding process for a major event such as the South West Craft Beer Festival, the process should be designed as an adaptable team to enable the process respond to the changing work through the process. The structure of the bidding process must encompass the following; first, represent the spectrum of the event’s stakeholders via an active, effective and responsive board of directors. Second, structures and committees should be established and should allow for the participation of all interested entities or rather parties. Third, a charismatic leader should be mandated to lead the process. Last, the leader should be afforded the opportunity to establish and run the company to win the bidding process (Tassiopolos, 2005, p.326). 2.3 Event Design According to Solomon (2002, p.13), the event design is what defines the whole event. As such, the design of the South West Craft Beer Festival is what is likely to define how lively and successful the festival will be in March 2013. Event design provides the event organizers and managers with the opportunity to showcase their creativity which ultimately determines what will define the whole event. Therefore in events management and design it is essential that an event such as the South West Craft Beer Festival has its own personality to give it a place in the minds of the sponsors, participants, spectators, as well as all the other guests who will be instrumental in its success (Solomon, 2002, p.13). The South West Craft Beer Festival must be designed in such a way that it is friendly to all the participating local craft beer brewers, sponsors, guests and all the other attendants. Solomon (2002, p.13) reiterates that friendliness of an event is one of the crucial elements which can be achieved during the event designing. As such care of all the participants should always remain at the top of the list for event organizers and managers. Other fundamental elements of events design include being creative, demonstrating high levels of organization, being sensitive to the sponsors, as well as being concerned about potential customers to the event (Solomon, 2002, p.14). 2.4 Event Experience The South West region of Australia is likely to benefit from the craft beer festival as it is a potential way to raise the profile of the local craft beer brewers and bring to the region potential new businesses. In the recent years, South West corner of Western Australia has become renowned for its famous wineries, relaxed atmosphere, surf beaches, as well as craft beer industries which have demonstrated distinct style from each other. The location chosen by the event managers also provide another opportunity to make the event even more feasible as it is more centrally located to all the major brewery locations in South West Western Australia such as Yallingup, Margaret River, as well as Dunsborough among others. A well organized event which is friendly to the participants is likely to create a lasting memory in the minds of participants. Solomon (2002, p.13) notes that event experience is likely to be achieved only if an event is successful. Such success is realized when an event is designed in a creative manner, is well organized and sensitive to the aspirations of the event sponsors. 3.0 Stakeholders The first group of the stakeholders is the event organisers of South West beerfest. The second is 3 Oceans PalandriWinery Lawns which is the hosting ground. The choice for 3 Oceans Palandri Winery Lawns is due to its centrality in relation to all the South West brewery locations. The other class of stakeholders in the event is the brewers and their brands. The expected participants in this category are 12.These include BOOTLEG BEER, Wild Bull, The Cidery and Moody Cow Brewery among others. The third critical participant in this festival that helps up its profile so as to attract many participants as much as possible is the entertainers. In the last two editions, the event organizers have been partnering with the local artistes so as to entertain the crowd. Finally, the crowd that gives the event the whole meaning by turning out is the crowd. For the 2013 event, approximately 4000 visitors are expected at the venue. The entertainment is normally lively on Saturdays, but calm on Sundays so as to cater for families. 4.0 Planning and Decision Making 4.1 Strategic Planning, Leadership/ Mission Vision and Objectives Strategic management enables companies to do better than their rivals in the business. According to Alkhafaji (2003), “In addition, recent studies have concluded that organizations engaged in strategic management have outperformed those who do not” (p.3). The linchpin of any successful business is the ability of its top management to craft and boldly execute strategies (Ireland & Hitt, 2005, p.68). Leadership is about creating vision and sense of possibility for employees through approaches like motivation and reward management. Leadership deals with the future, ideas, people and personalities (Gillard, 2009, p.726). The festival aims to bring together craft brewers and beer lovers in a relaxed setting and entertain anyone who attends. To attain this vision the organisers attract various exhibitors with guarantee of marketing opportunities. For the crowd they are guaranteed total entertainment with a family touch. 4.2 Operational Planning/ Project Management Organising event requires a lot of project planning techniques so as to realise total success by meeting or exceeding the expectations and requirements of the stakeholders. According to Walesh (2000, p.135), one has to keep balance between the time, cost, quality and scope of the project in question to meet expectations of stakeholders. In addition, it is important to take into account the competing demands among stakeholders who have different requirements and expectations. Finally, the project manager has to keep a balance between the identified stakeholders’ needs and expectations (Walesh, 2000, p.135). According to Bourne (2007, p.2), the success of a project can be classified into three categories namely management of uncertainty, delivery of value and maintenance of project relationships. Bourne refers them as the "pillars of project success". It is vital for individuals involved in project management to take into account the perception of the stakeholders to the value of a given project. According to Parkes (2011, p.23), the failure of the project can be attributed to the "perceptions of expectations not met, or promises not delivered, or the belief that the support resources (from sponsorship and lottery funding) could be applied elsewhere". The organiser of this event tries to balance the competing needs of exhibitors, promoters and the probable events attendees in the context of value delivery, managing relationships and managing risks. To make sure that the event gives return to the host, entry is through pay ticket where at presale point it goes for $ 25, if available on the door at $ 35, $ 45 for weekend ticket on presale arrangement and $ 60 at the door. At the entrant, all party goers receive a tasting cup and 6 tasting tickets. Moreover, to ensure the exhibitors gain from the event, the organizers charges $ 2 each and $ 5 for middies. Hence out of this agreement, the exhibitors receives 50 % rebate per ticket allocated. 4.3 Organisational Structure and Human Resource Management Human resource forms one of the critical components of any organisation. The success of any organisation is tied on how well the management relate with its employee. Employees are the epicentre of idea creation and implementation of strategic management plan (Denning, 2000, p.2). A strong management team was put in place for the inaugural South West Craft Beer Festival bringing together a wealth of event and industry experience. The managers they had included: Event Director, Project Manager, Administration Manager, Logistics and Site Manager, Venue Manager and Licensee and Technical Advisor. In total, the number of management, staff and volunteers were 40. 4.4 Marketing and Communications of the Event and Sponsorship Companies have engaged themselves in supporting events and celebrities in the hope of improving brand value, sales and stock returns (Kim, 2). Abrahamsom, Forsgren & Lundgren (2003, p.4) notes that sponsorship gives a company leeway to enjoy promotion mix. In their conceptual framework, they note that the roles of sponsorship in promotion mix. One important aspect is the ability to inform through advertising supply through sales promotion, create positive lasting image through public relations and interact with customers through personal selling. The other positive aspect of promotion is on the ability to build an image for the company by having psychological effects on consumers (Kim, 3). According to Kim (3), image of a company matters since it allows the consumers to relate with that brand name thus, creating psychological attachments. Marketing forms a salient feature of connecting the firm, market and the product (Aaker, Kumar and Day, 2001, p.3). To guarantee the organisers and exhibitors a high level of brand presence so as to market themselves, promotional signages are erected on Bussell Highway during the busy summer holiday. Moreover, larger posters and flyers are printed and displayed in all participating breweries and Augusta Margaret River Tourism Centres from early December. Other avenues of various media houses, social websites and dedicated website with link to ticket sales website. For exhibitors who are members of WABA, participation is free. To attract sponsorship at different levels, the organizers of South West beerfest festival have a wide range of opportunities. The rights include naming rights for main entertainment stage, naming rights for local produce area, naming rights for welcome arch, major partner, minor partner, media partner and product partner. 4.5 Controls and Budget A total of 2397 people attended the inaugural South West Craft Beer Festival. Approximately 64% of attendants were from outside the region staying an average of 1.5 days. The total number of visitors to the region during the period was 1,626. The Average Spend per Person per Day (accomodation/meals/petrol/tourism) was $150 and the average stay/spend per person (1.5 Days) was $225 x 1626 = $365,850. On the other hand, the total economic impact of the event was $406,400 with event production costs being $72,600. Based on the projection that 4000 people are expected to attend the event, and then the outcome for the third year will be higher. This would be $225 x 4000 = $ 900, 000. 4.6 Risk Management Projects have becomes gradually complex as a result of the multiple risks and uncertainties associated with them. The key obstacle is how to conceptualize model and visualize risks, define and monitor the risks’ impacts, analyze the probability of risk occurrence and mitigate the negative impact of risks (Stewart and Melchers1997, p.6). Risk management help in mitigating of operational risks associated with certain business (Smith, 2003, p.49). The assessment in great deal helps firms detect areas of concern so as to prioritize use of resource in order to maximize response and recovery efforts. Risk assessment is one of the key components in risk management. Risk assessment entails the predetermination of qualitative and quantitative value of risks connected to a situation and a likely threat or hazard (Hurst, 1998, p.42 & 43). The possible sources of risks are low turnout meaning losses and bad weather. The firm should put in measures to curb all these possibilities through event promotion and having mitigation measures for bad weather. 5.0 Staging/ logistics This is a crucial stage in the management of events such as the South West Craft Beer Festival. Staging or rather logistics falls under the implementation phase of the events management. The activities carried out in this stage require critical organizational input, as well as project management. According to Tassiopoulos (2005, p.111), at this stage, modification of the plan may be carried out while implementation takes place due to changed circumstances. All staging and logistics are put in place to ensure the success of the event. 6.0 Sustainability It is crucial to carry out an environmental impact assessment of any proposed event. The first step is environmental scoping to determine the impact of the event on both a preliminary and broad level. The findings of this activity must be submitted to the concerned authorities for verification. This report will be the basis of whether or not a full environmental impact assessment is necessary as per the laid down environmental policy (Tassiopoulos, 2005, p.111). This is because big events such as the proposed South West Craft Beer Festival can generate significant adverse effects to the environment if left unchecked. Environmental impact assessment is crucial in events management if a sustainable event is to be held. Activities of such events must be sensitive to the environment within which they are held. 7.0 Evaluation and reporting Evaluation, review and reporting are essential parts of an events planning and management. These are usually done during the implementation phase, as well as after the event have been held. Key performance indicators are critical in measuring the various components of the event if the whole process is to be valuable and effective. Thus, the process of events evaluation, review and reporting be carefully designed and structured. Key indicators to be evaluated reviewed and reported in an event such as the South West Craft Beer Festival include the original objectives of the event. These could determine the size of the event, expected attendance, budgeted expenditure and income, as well as the number of vehicle accommodated among others. This evaluation can also be done by conducting a opinion survey of participants before, during and after the event is held. This requires questionnaires which can be easily compared and statistically analysed (Tassiopoulos, 2005, p.111). 8.0 Knowledge Creation When it comes to knowledge creation and research, information technology and best practices, computers play significant roles for event managers. There is a wide variety of both computers and softwares which would be of crucial importance to event managers. However, their choice is governed by the needs and budget of the event organizers. Such information technology for events such as South West Craft Beer Festival can be categorized into three main areas. First, monitoring and controlling for instance in ticketing and entrance control. Secondly is to enhance event experience through multimedia and themed entertainment. Thirdly is in marketing and managing event activities (Tassiopoulos, 2005, p.143). Evaluation and reporting is crucial in events management since it provide events managers with significant information to enable them improve on their plans and ensure better and more viable events in the future. They act as a feedback mechanism for the financiers and the sponsors of events. 9.0 Suggestions According to Tassiopoulos (2005, p.145), events management is a challenging experience. As such it is recommended that several critical considerations must be emphasized. In organizing a big event like the South West Craft Beer Festival, event organizers must ensure their activities depend on the following suggestions which are the best practices in events management; Ensure they establish and institute appropriate organizational structure Seek the support of all stakeholders in the area such as local leadership, politicians, the community, and event sponsors among others. Ensure the team consists of experienced, committed, and proactive manager, staff and volunteers. Ensure that the program is well balanced with unique and outstanding main attraction, as well as attractive elements. Do everything to enhance the experience of the participants. This can be achieved by creating a distinctive decor which establishes the theme and special effects of the event. References Aaker, David A., V. Kumar & George, S. Day. 2001. Marketing research. New York: John Wiley and Sons. Abrahamsom, Jan-Tony, Thomas Forsgren & Hakan Lundgren. 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