Events media business
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The live events industry in India has grown significantly but saw a slowdown in 2013. There are various types of events including commercial, corporate, leisure, and personal. Key segments include IP events, experiential marketing, and MICE. The industry faces challenges related to infrastructure, manpower, taxation, and regulations. Top spenders on events include national advertisers and traditional brands. Top event management companies operate in this multi-crore rupee industry.
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Events media business
- 4. EVENT MANAGEMENT By- Nibedita Ghosh & Asad Hoosain BITWREPORT !! A MULTI-CRORE-RUPEE OPPORTUNITY !!!! A MULTI-CRORE-RUPEE OPPORTUNITY !!
- 5. EVENTEVENT EVENT MANAGEMENTEVENT MANAGEMENT Application of the management practice of project management to the creation and development of festivals and events.
- 6. INTRODUCTIONINTRODUCTION • Live events sector in India has come a long way. • It is a unique vertical within the media and entertainment industry; • 2013 Clear slowdown for the live events sector. • Growth of a mere 8-10 per cent over the previous year.
- 7. PRIMARY REASONS FOR THISPRIMARY REASONS FOR THIS SLOWDOWNSLOWDOWN • Rupee depreciation (thereby affecting outbound MICE), • General economic stagnation (therefore lower corporate and advertising spends), • Rapidly rising artist and talent costs, and • Continuing lack of infrastructure in the country • There are around 8-10 emerging players of national scale.
- 8. TYPES OF EVENTSTYPES OF EVENTS • COMMERCIAL. • CORPORATE. • LEISURE. • PERSONAL.
- 9. EVENT ORGANIZATION CHARTEVENT ORGANIZATION CHART
- 10. EVENT PLANNING PROCESSEVENT PLANNING PROCESS
- 11. PRE-EVENTPRE-EVENT 11. Promotion 1. Proposal 2. Budget 3. Venue/ Site Selection and Design 4. Production Schedule 5. Speaker & Supplier Checklist 6. Sponsorship 7. F & B Menu 8. Guest list 9. Risk Management 10. Marketing
- 13. POST EVENTPOST EVENT Evaluation Shutdown and Reporting
- 15. INDUSTRY EVOLUTIONINDUSTRY EVOLUTION 19901990: Mainly venue management, artist coordination and equipment sourcing . 19951995: Managed events pick up. 20002000: Emergence of a few ‘organised players. 20052005: Corporate events pick up pace leading to six years of high growth 20082008: Increased importance of IP and formation of the first ‘event properties’ from within the live events community 20132013: Corporate slowdown leading to churn, diversification and skill renewal
- 19. SEGMENTS OF THE LIVE EVENTSSEGMENTS OF THE LIVE EVENTS
- 20. SIZE OF LIVE EVENTS IN INDIASIZE OF LIVE EVENTS IN INDIA
- 21. 1.IP EVENTS BUSINESS1.IP EVENTS BUSINESS The business model is conceiving and creating a brand around an event. Becomes a ‘pull factor’ in its own right. Among the fastest growing segments for many Live Event firms today. Major sources of revenue : (a) Sponsorship (b) Gate Receipts and (c) Broadcast Rights.
- 22. For eg: Filmfare Awards and IIFA have a 50-50 split between sponsorship and TV rights. In 2013 IP-events led the growth for the live events sector. Growth Avenues :-Growth Avenues :- More Events. Higher ticket prices. Pricing of tickets in IP-events, especially in music and comedy seemed to support 25- 30 per cent increase over 2012-13; and Entry of ‘more serious’ and strategic sponsors.
- 23. • Use of A-list stars Plunge into the less known!
- 25. 2.EXPERENTIAL MARKETING2.EXPERENTIAL MARKETING Has grown in importance for most Indian corporates and advertisers. Eg-Be it Coca Cola’s ‘Small World Machines’ or ‘Mahindra Monastery Escape’ Aims to deliver high levels of engagement and customisation. Has been highly effective in breaking through to the rural consumer – millions of new users that like to see, touch and feel a product – in the past decade.
- 26. • The use of a captive environment to create a brand experience for the customer is the USP of this channel. • Closely integrated with brand activation and engagement. • One of the most dynamic channels for the live events sector with new engagement properties being created continuously, especially in the rural segment.
- 28. 3. Meeting, Incentives, Conference and3. Meeting, Incentives, Conference and Exhibitions (MICE) and Trade ShowsExhibitions (MICE) and Trade Shows Unique Crossover between live Events & Tourism industries. Most Globalised of sub sectors within live events. Becoming V. Competitive. Leading MICE and Trade Shows: - Healthcare (17%) Technology (14.5%) & Science (13%).
- 30. KEY ADVERTISERS AND SPONSORSKEY ADVERTISERS AND SPONSORS 1. National advertisers across categories such as FMCG, consumer durables, mobile services and automobile dominated the sector, followed by liquor companies, financial services and traditional media organisations. (URBAN) 2.Traditional high spenders also dominated the live events list of spenders: among them were Hero MotoCorp, Micromax, Nokia, Airtel,Tata Motors, General Motors and HUL. (RURAL)
- 31. 3.Banks and insurance companies emerged as a major source of sponsorships for IP-events, especially those organised by TV broadcasters with business themes. Due to government regulations, liquor brands took to IP-events – primarily music and fashion – in a big way. 4. Automotive brands stepped up their involvement in live events, particularly film and music awards shows and in experiential marketing, in the wake of the severe slowdown in auto sales in 2013.
- 32. CHALLENGES FOR THE INDUSTRYCHALLENGES FOR THE INDUSTRY 1.Venue and infrastructure - Quality of infrastructure in India often leaves a lot to be desired. 2.Target group experience - whether B2B or B2C - can determine the success of any live event; apart from content, the other major quality differentiator is the infrastructure of the event.. 3.Manpower challenge • Skill • Employee cost • Attrition
- 33. 4.Taxation- • Tax Entertainment tax is a state tax applicable to live events such as commercial exhibitions, stage shows, sports events, live entertainment, etc. with variable rates across different states.
- 34. 5. Regulatory delays:- Obtaining licenses and permissions can take a lot of time and effort in india. Ends up adding costs and challenges Takes away 35-40 % of their time and effort! Some permissions required for events are: • Music license (PPL) • Venue license • Traffic police permission •Tax payments etc.!
- 35. 6. Fragmented markets Low entry barriers catalysed fragmentation. The sector is witnessing fierce price competition in all sub segments.
- 36. • Niche firms have emerged to offer specialised services or properties in one or two sub segments, thereby leading to greater skill development and client stickiness. • There is a need for major consolidation and I.P. development.
- 38. TOP 10 EVENT MGT. COS.TOP 10 EVENT MGT. COS. • Percept D Mark • Wizcraft • Cox And King • DNA Entertainment Networks Pvt.Ltd • SITA • E Factor Entertainment Pvt. Ltd. • Sercon • Tafcon • Travel Corporation (India) Ltd. • Fountainhead Transmedia
- 39. SOURCESSOURCES • FICCI FRAMES • FT.COM • BDU ‘OUTDATED’ TEXT BOOK.
- 40. THANK YOU
Editor's Notes
- 1995-(led by organisation of large-scale social events) 2000-’ (consolidation of mom-n-pop shops into partnerships and privately-held companies) 2015: Could see niche capability building, major consolidation, strategic partnership and revenue sharing leading to robust and sustainable growth
- One of the key characteristics of the sector
- 3 prominent sub sectors !
- For example, the main Sunburn event in Goa gets up to 70 per cent of its revenue from gate receipts and 25 per cent from sponsorship, and for NH7 Weekender it is 35 per cent and 65 per cent respectively; while film-related events such as Filmfare Awards and IIFA have a 50-50 split between sponsorship and TV rights
- Growth was coming from various quarters, which include: (i) more events as a larger number of Live Event companies plunged into the IP-events space and categories expanded from film awards, music, fashion and literature into art, business and real estate, auto and lifestyle; (ii) higher ticket prices. Pricing of tickets in IP-events, especially in music and comedy seemed to support 25-30 per cent increase over 201203; and (iii) entry of ‘more serious’ and strategic sponsors. (i) More Events as a larger number of Live Event companies plunged into the IP-events space and categories expanded from film awards, music, fashion and literature into art, business and real estate, auto and lifestyle;
- Plunge -As the audience grows, many event owners are reaching out successfully to non-traditional advertisers, niche brands and local (real estate, retail and jewelry) brands to support IP-events Use of A-list stars as performers and anchors, and high decibel promotion of these performances as ‘tentpole’ TV events, kept an increasing TV audience glued to their screens driving TRPs.
- Eg-Be it Coca Cola’s ‘Small World Machines’ or ‘Mahindra Monastery Escape’, businesses and brands across different verticals are recognising the power of below the line marketing.
- V.COMPETITIVE--– both from a destination and peer group perspective – but was growing at over 25 per cent YoY between 2008 and 2012.33 Fuelled by a competitive Rupee, incentives from international tourist boards, fast globalising Indian companies, and good economic growth, some event firms doubled revenue and profits in a span of four years.
- i.Skill – The industry is mostly unorganised and so is the labour force driving it. Finding staff with proper skills – covering ideation, design, production, logistics, technical understanding of sound and light, stage and venue management, artist management and local knowledge and experience – can be very tough. Specialised courses for skill development of event management professionals are rare. On-job training is often most preferred, and possibly the only option for almost all companies. ii.Employee cost – Employee costs are 30-40 per cent of the total fixed costs46 of an event firm since success of project execution and management is entirely people driven. The boom years of 2008-2012 saw consistent double-digit pay hikes as event firms scrambled to hire and retain talent. Rampant poaching – by competitors and allied industries such as tourism and television – drove up employee cost and resulted in several firms becoming uncompetitive when the showdown hit in 2012.46 iii.Attrition – Attrition is another big concern. Our industry discussions indicates the live events sector has witnessed an attrition rate as high as 15 per cent in the recent years46 as salaries froze and projects dried up. Live events is still not seen as a viable and sustainable career option; youngsters tend to see it as a steppingstone to careers in advertising, film or television. While some employees switch jobs for pay hikes, some start their own ventures leading to further fragmentation of the sector.
- Attending issues like political mood, local corruption, cultural habits and moral policing, and freebie demand can make live events a tough business to operate. The major reasons for this include complexity, uncertainty and inconsistency across various states and districts. Challenges are even higher for a live performance and ticketed events such as Sunburn, Mahindra Blues or NH7 Weekender.