CIMGLOBAL Welcomes You ToThe Orientation Programme on MICE(Meetings, Incentives, Conferences & Exhibitions)BYBangalore Chamber of Industry and CommerceMeeting Overview
An MBA from West Minister College, London, he specialized in internationalmarketing and then went on to do a special project on Tourism Law &Development of Tourism in Asia from the London School of Economics (LSE).During his stay at DTI (Department of Trade & Industries) London; with theirinternational division, he was handling conferences & exhibitions for trade andindustries. Spear heading a dynamic team of professionals drawn from variedindustries, CIMGLOBAL evolved to be India’s Brand Ambassador promoting Indiaas a knowledge hub and a fine host to science and technology events.Prasant Saha – Chairman &Managing DirectorFounder Director
Jeremy Garbett27 years experienceSVP, MD of Jack Morton Worldwide1993 - 2007 JMW Board Director2005 - 2007 JMW MD Europe2008 - 2009 Action Impact MD, UAERelationships:Automotive: Vauxhall, Opel, Chevrolet, Saab, VW, VolvoTelecoms: Nokia, du Telecoms (UAE)Electronics: Samsung, Tom Tom, FujitsuFMCG: Mars Europe, Stella Artois, InnocentPharma: PfizerGovernment: Lord Mayor’s Office, GLA, COI, 2012 Olympics,TDIC (UAE), Dept of HealthFinancial: Zurich, COLT, EvershedsJeremy has been responsible for leading a number of the largestsustained account relationships in the communications industry -personally producing some of the most creative, integrated projectsfor many differing audiencesRelationships:Automotive: Opel, Lexus, BMW, Porsche, HyundaiHealthcare: Pfizer, Johnson & Johnson, GSKFinancial: Citi, Lloyds TSB, UBSGovernment: Department of Health, Olympics,PM’s Office, Masdar (UAE)Telecoms: Verizon, Cable & WirelessFMCG: Mars Inc, SubwayMedia: ITV, SRMGWorked extensively on every Continent, and has been responsiblefor some of the most innovative and results drivencommunication programmes for world leading brands andGovernments.Laurence Croneen24 years experienceEVP, MD of Jack Morton Worldwide1993 - 2000 JMW Board Director2000 - 2005 JMW MD Europe2006 - 2009 JMW MD New YorkFounding Directors
A Micro Biologist from Bangalore University .13 Years experienced in WizCraft and delieverd about 1000events .Girish K JFounding Director,Kolot MediaFounder Director
Industry Overview• The Event Industry is one of the fastest growingindustries in the country• The Event Industry is expected to touch the $768million mark by 2013-14• Event Industry in India is poised to grow by at leastby 25% annually and is estimated to reach $966million by 2014-15.
Event Industry• Management fees of a 17.65% the service charge thatthe event companies earn• The clients are charged an additional 12.36% servicetax on the total billing• Pay scale in the industry is anywhere between 10,000to 1,00,000 per month and beyond
Indian Economy• Ranking at No. 3, surpassed Japan• 1.159 billion handsets• Vehicle sales is projected to hit 4 million by2015
Indian Market• 1.25 billion population• > 57% in the age group of 18-25.• About 500 million work force – 2nd largest• Scope for new ideas and technology to beimplemented.• Disposable income has increased to over $15 millionannuallyThings can’t be better for the events industry
"With a compounded annual growth of 14 per cent, it (eventmanagement industry) is projected to be Rs 5,000 crore by2015 in the country," Director of Rachnoutsav Events AcademySanjay Kankaria told
Market Segmentation• Social Events Wedding Planning (Wedding Management) Birthday Parties Anniversaries Get Together Social Gathering Fund raising for Large Clubs, Charitable Trusts etc
Contd…• Educational Events Education Fairs College Events Picnics & Holidays Annual SportsCorporate Events Meetings Seminars Conferences Training Programs Annual Picnics Award Functions• Political events Rallies Party Meetings
Contd…• Entertainment Events Movie Promotions Celebrity Nights Music Video Release Award Nights Sports Fashion Shows Beauty Pageant Contest Stage Shows Dramas etc.• Exhibitions & Fairs Property Exhibitions Export Exhibitions Electronic Fairs Jobs Fair Finance & Banking Fairs etc.
Contd…• Marketing & Promotions Ad Campaigns Product Launches Road Shows Promotion Activities Shopping Festivals etc.• Special Events (For special needs ofclients.)• Association Events
Association Events• What is an association? Managed by Volunteers• Professional, Industry, sports…etc• India hosts more than 10000 associations• Vibrant association culture• Association events – increasing by the day• Driven by knowledge and business not creativity• Professional associations not very evolved withsuccessful revenue models• Professional Organization support provided byAssociation Management companies andProfessional Conference Organisers
The difference b/n Corporate &Association Event Management• Lead time – from bidding to conference delivery• Bidding success rate – 1/10• Budget starts at 0, revenue to be generated by the event• Higher Risk• In Corporate events it is part of the budget• A committee takes decision whereas in corporate 1 or 2people take decision• Partners and Vendor management – billing to client• IT Tools• Business model – professional fee, vendor margins, hoteland venue commissions• City approach is very required, media has a key role• Government support – Industry& Commerce, IT and Tourism
Stake Holders• Professional Conference Organizers• Hoteliers• Venue owners• Tours• Travel agents• Transportation providers• Event managers• Airlines• Govt. of India• State Govt.• Audio Visual Vendors
3%23%14%31%26%3%Segmentation of EventsLocal AssociationCorporate/ MeetingsInternational AssociationsSocialsNational AssociationsExhibitions/ Others
Factors affecting the segments• Social Events– Rich culture and social setup– Traditions/ Rituals – many and more• Educational Events– More awareness about education and itsimportance– Literacy rate improving– More institutions coming up• Corporate Events– Huge target audience which is growing by theday.– Communication is ongoing
Contd…• Entertainment Events– Audience and varied audience– Rich in art, architecture, heritage and culture• Exhibitions & Fairs– Newer technology coming to India– User friendly technology• Marketing & Promotions– More products to market– Wider target audience• Association Events– More number of industries coming to India– Manufacturing sector growing– People’s Awareness increasing
The phenomenal double digit growth of theevent management industry coupled with thetransition of this sunrise sector from a highlyunorganized to organized niche and competitivesector is expected to see a manifold demand fortalent pool. The market for event managementin India is expected to witness a growth of 25per cent and exceed to $567 million by 2015.
Key Players Percept D Mark Wizcraft InternationalEntertainment Pvt Ltd DNA Networks Pvt Ltd. Cineyug Entertainment Cox and Kings E-Factor TCI Consultancy Services and eEvents Fountainhead
PCOs in India• CIMGLOBAL• K W Conferences• Kuoni• ICE• MCI• Aplcord• Planit India• Vama Events• Kenes India
"The proliferation of TV channels andnewspapers mean that advertisers have begunto opt for experiential marketing (eventmanagement) instead. You connect with theconsumer through an event, and youre likely toget better and quicker results through eventsthan through traditional advertising," saidSabbas Joseph, co-founder of Wizcraft, currentlyIndias largest event management industry.
India lacks good infrastructure to promote thisindustry. Though the growth is phenomenal, thelack of venues pose as a huge obstacle. The firstand only international convention centre thatIndia has is the Hyderabad InternationalConvention Centre.
Hyderabad International Convention Centre (HICC) is managed by Accor and jointly ownedby Emaar Properties PJSC Dubai and Andhra Pradesh Industrial Infrastructure CorpLtd. HICC is the first purpose-built and state-of-the-art convention facility, the first of itskind in South Asia.• Novotel Hyderabad Convention Centre adjacent to HICC is a 5-star 287 roomshotel, built to suit the requirements of the discerning business traveller.• Pillar-free internal hall of net 6,480 sq. metres that can hold an 5,000-delegate plenaryand can be portioned into 6 smaller halls.• A spacious Pre-function foyer area of over 6,000 sq.meters of lobby space.• 37 breakout rooms, including specialized meeting rooms, speaker preparatoryrooms, boardrooms, 12.5 metre high ceiling, roof catwalks and truss to withhold heavysuspension.• In-house 5-star banqueting service.Hyderabad International Convention Centre
Other venues include exhibition centers andhotel convention centers. BangaloreInternational Exhibition Centre, Bombayexhibition centre, Pragathi Maidan, India ExpoMart, Chennai Trade Centre and large hotelconvention centers are among the tops venues.
Strengths:1. Reputed players2. High in Creativity3. IndustryKnowledge4. Easy access totalent pool5. Growing market6. Varied ProductsThreats:1. International Playerscoming into themarket2. Low supplier loyalty3. Lower margins due tocompetitionOpportunities:1. Newer ideas2. International brandscoming into the market3. Associations gettingorganized4. New technologies5. New venuesWeakness:1. No formal education2. Lack of Infrastructure3. Taxation is high4. Unorganized players5. Clarity in licenses6. Must have EventInsurance7. Formalised Training
Strengths• Growing economy, everybody wants to be part of the India economic story• Strong industry base for IT, telecom, pharmaceutical, automobiles• Active industry associations• World – class hotels & service apartments, alternative accommodation options• Variety of restaurants, shopping haven, cultural activities, etc• Allied activities: heritage walks, golf, amusement centres, wine tours, ayurveda& spa centres,• Multiple pre and post tour program options for events• World class medical care• Presence of large academia and research institutions• Excellent flight connectivity• Presence of quality ground handlers, professional conference organizers(pcos), professional event managers and entertainment consultants• One of the fastest growing outbound MICE markets in Asia – Pacific
Weakness•Absence of quality Convention and Exhibition centres in most cities• China as a state policy has made it mandatory for cities with a population of 5million to have a world class Convention and Exhibition Centre. Investment to bedone by the State.•Hotels overpriced for MICE movements into India due to mismatched demand –supply ratios. We lose out to Thailand, Malaysia, Hong Kong, Macau.•Limited Night life•No focused body to promote ‘MICE India’ in markets: both within India andabroad. Indian Convention Promotion Bureau only promotes MICE outside India,while the MICE industry in India is still 90% domestic.•Lack of Data / Market Information on MICE related activity.•No formal education, hence no trained staff•Unorganized players•Lack of cohesive working relationship among stake holders•Corruption•Complicated tax and legal structure•Integrated transport systems
Opportunities•Boom in investments across sectors.•Over 25000 Hotel rooms / Service Apartments being added inthe next 3 – 5 years in Mumbai, Bangalore, Delhi and Chennai•Brand New International Airports in Mumbai, Delhi, Bangalore•Access to modern technology•Growing interest in India.•Newer ideas•International brands coming into the market•Associations getting organized•New technologies
Threats•Competition from Neighboring countries and Asia Pacific,who have readymade infrastructure to handle big conferencesand exhibitions.•Even Sri Lanka has better Convention facilities than India,other than Thailand, Malaysia, Singapore, Hong Kong andMacau.•Conference Visas issued by Indian missions abroad verycumbersome.•Slowing down of economies in the west. India being atraditionally long haul inbound market, recessions in Europeand US, will effect inbound MICE.•Low supplier loyalty•Lower margins due to competition
PR valuation of over 85 millionUSD and close to 30,000audience(2011) 600 millionviewers over 120 countriesacross the globeIIFA
SUNBURNElectronic dance music festival held in CandolimBeach, Goa, India.Valued at $100 million to $150 millionFuture plans for brand Sunburn include taking the festivalacross Asia, includingThailand, Malaysia, Vietnam, Singapore and Bali.
Just Advertisement revenues morehan Rs 800 crValued at ~ 3 billion USD
Global INDIA USA ASIAGrowth(in %)6.2 13.1 6 20ProjectedGrowth (in %)5.5 25 4.2 21Growth of the IndustrySource: Industry Estimates, Rohit Hangal; Voyagers World & PwC Analysis
Conclusion•Rebrand bangaloreVision bangalore - reinstate• bangalore convention bureau•Leveraging the present infrastructure – map data•Representation to the government – relentless efforts – BICEBvehicle- reallocate budget•Vision 2- without government – quick wins - strategize