Hospitality and Event Management Market Research

Question: Discuss about the Report for Hospitality Emergency Management and The Dirty Twelve. Answer: Introduction A business plan is an important tool and document that explain the various elements that is involved in a business event. It seeks to explain the financial operation of the event and the scope of the growth and expansion of the event and the products launched with it subsequently. The report is prepared on the OCBC Cycle Park Ride held in Singapore. The business plan intends to establish the market research that will be utilized in creating the business plan. SWOT analysis, competitor analysis is used in the report. A proposed income and expenditure section and sales forecast section is presented in the business plan, which can be utilized for making the business plan. Market Research The market research is prepared for the sports products for skiing competition held in Australia. It comprises of the marketing mix that is the 4 Ps- namely Product, Price, Promotion and Place, competitor analysis and SWOT analysis that depicts the strength, weakness, opportunities and threats of the product. Market research is an important element for the management to evaluate before launching a product in the market. It is an important tool for the management to analyze and critically evaluate the population density and cultural and social aspect and highlight the backgrounds that establish skiing as a different sport. It reveals the different requirements of skiing and elements needed for skiing and establishes skiing as a different sport, which plays an important role in sports tourism (Ferdinand and Kitchin 2012). Product The product that is extensively discussed in the business plan is cycling equipments. These are helmets, gloves, shoe cover, cycle and bike tools and accessories. The products are made according to the requirements and wants of the people. The products are made according to different demographic requirements and cater to all age category requirements, making it a complete and appropriate product for all people. Price The price of the product depends on the economic state of the country. The market economy determines the price of the product. The cyclical trend of economy has a direct bearing on the price of the product. The price of the product ranges between $50 and $150. The price of the product has a strong impact on the demand of the buyers. The price of the product has a strong impact on the purchasing power of the buyer. If the prices of the products are reasonable, then the product is worth buying for those people who are passionate and sincere about the sport. The price of the product determines the value of the product as reasonable price of the product increase the value of the product (Ferdinand and Kitchin 2012). Place Place in market research refers to the sport where the marketing of the product is done. In this research the market research refers to the venue where the competition and the event will be hosted. The place is chosen keeping in mind the majority of the population and the proximity of the venue to the general masses. The chosen place in the market research is Singapore. Pasir Ris Park is the chose n venue. It is one of the famous race tracks for the cycling competition held in Singapore. Promotion Promotion is the method of promoting and creating an awareness of a product. In this market research, the promotional activity depend on the creation of awareness of cycling as a sport and the merits of the sport to people in order to encourage to form an interest in the sport and participate in the event. Advertisement of the event is done on an extensive scale creating an awareness of the event and the promotion of the product. The use of social networking sites has been done to propagate the idea of the sports product. E-commerce is a vital tool for sales promotion. Various discount and offers are also applied with the product to gather more demand from the customer and create a larger customer base of the product (Pizam 2012). Competitor Analysis Performing a competitor analysis is a very vital tool. A competitor analysis is useful in providing an understanding the competition and the level of rivalry received from the rival companies like Adidas and Nike sports. The difference can be seen and observed from the kind of sports equipments they provide. This has an important bearing on the level of success and popularity the event gets. Thus, by conducting a competitor analysis, the level of competition and the distinction between the products of the rival companies can be seen and observed. SWOT Analysis The SWOT analysis is a very important tool at the disposal of the company to find about the various strengths, weaknesses, opportunities and threats that the products in the event will possess. Strength Over the past few weeks, the strength that the product can possess the increase in the sales figure of the sports equipment in the market. Cycling is one of the mainstream sports in Singapore. The product has witnessed a strong market hold and has benefitted from the increasing awareness about cycling as a sport and as a great mode of leisure and entertainment. The growing tendency of the people to embrace the sport as mean of healthy living is fast escalating. This will tend to make the product a popular and viable choice for the people. The presence of popular sponsors is also a great strength for the products as the advertisement of the product is made through these sponsors of the events. The sponsors have also reaped the benefit from the advertisement and sales promotion of the products through their media channels. There is an increase of 65 % of people adopting this style of sport as a mode of healthy living as well as way of producing mental strength (Ziakas and Boukas 2014). Weakness The weakness lies in the lack of loyalty and support from the participants of the event. The event has channelized all the efforts in the event and not much attention was given on developing a proper understanding and awareness of the sport among the participants. The lack of confidence towards the sport could pave the way of decline in demand and sales of the product. Thus, more loyalty needs to be developed from the participants (Shipway and Fyall 2013). Opportunities OCBC Cycling competition provides products that meet the needs of many people. The product launched in the competition attends and cater the need of the population and products according to the requirements of different age group. The survey depicted an increase of 65 % of people adopting and moving towards skiing as the new style of sports and as mode of healthy style of living and leisure. Threats Threats involved are inclement weather and natural disasters, which might cause a barrier or disrupt the event. It can be seen that these factors can pose a serious threat to the organization and also the fluctuations involved in demands relating to a particular season or event tend to affect the marketing of the product and the sports tourism industry in Singapore. The popularity of other sports like Moto GP and tennis pose a threat (Chin 2013). Proposed Management and Production Structure Section In a business plan, proposed management has an important place and lends an important outlook on the operational structure and the operational management of the event, which is necessary from the view point of the stakeholders as the complete process and the procedures involved in the event is analyzed and studied. The rental of the skiing venue, the arrangement of ski accessories and products are studied. The safety measures and the arrangement of medical staff during the sporting event are also critically analyzed to understand and evaluate the safety arrangements made for the participants. Proposed management helps the guides and instructors in helping the participants during the event. Proposed management and production structure section is very important in a business plan (Andersson and Lundberg 2013). Production section covers the aspect as to what and how many items are being sold during the event. It is the area of the business plan that covers the operational and financial aspect of the event. This section looks at the hosting aspect of the event (Chin 2013). Projected Income and Expenditure The projected income and expenditure section is a very vital and crucial element of a business plan. It is the basic structure, which lends comprehensive understanding and provides the rationale about the feasibility and viability of the event being held and the viability about the products being launched during the event. The success of the event has direct correlation with the feasibility of the product being launched. The projected income and expenditure outlines the various sections of the expenses being incurred during the event along with revenue being generated during the event. The projected income and expenditure covers the various areas like operating expenses that covers all the expenses incurred during the event as the direct expenses involved with the event. The operating expenses are the reflection of the various expenditures of the event. The cost of goods sold is evaluated and the net profit generated from the event is estimated. The different elements of the operatin g income showing the various expenses incurred during the competition. The total revenue earned during the competition is deducted from the expenses and the net profit is achieved. The expenses and the income structure is vital for the company since it provides a critical insight into the operation of the event. The level of the expenses and the level of the profit margin achieved during the event gives a comprehensive outlook on the feasibility of the event in future and the scope of growth and viability of the products being launched in the market. It gives a better understanding whether the event is feasible and appropriate to be held in future and the scope of future revenue it holds for sports tourism (Andersson and Lundberg 2013). The products and the event hold direct correlation as the feasibility of the event and the feasibility of the products are dependent factors and it reflects the level of appreciation and demand from the participants. Projected Income Statement of the Event Event Generated income $520000 Other Operating Income $325000 Expenses Boarding /Lo Lodging Charges of the room $110000 Food $85000 Bar $50000 Entertainment $85000 Event development $ 150000 and promotional activities Other operational $120000 $600,000 activities Net Income $245,000 According to the income statement, it can be observed that the income statement projects a net income of $245,000 from the event. The estimated cost is $600,000 with $ 845,000 as the projected revenue from the event. This depicts that it would be feasible for the event to take place with substantial amount of money generated and good scope of sales of the product. Sales Forecast Section Sales forecast section is one of the crucial and key elements of a business plan. Every business has a profit motive. It is essential to analyze the scope and the level of turnover that can be generated from the operations, which will determine the level of profit earned. There are various elements that determine the level of turnover that will be earned from the skiing competition. Arranging, advertising, administration and leadership is behind the success of high turnover. Therefore, it is important to note that aggressive and strategic advertisements and sales promotion techniques are required to achieve high level sales. The products need to be properly depicted to the participants, in order to achieve high level of sales figure. Sales need to be significant, which if in excess to expenses will result in profit. Profit is the lifeblood of any business. Therefore, in order for the event to be success, it has to be evaluated and assessed that what would be turnover value of the event. The high level of turnover is suggestive of the fact that the event is feasible to be held. Sales Forecast in a business plan refers to finances and funds for the company (Pechlaner and Innerhofer 2016). The sales forecast is a financial statement of the event that provides information about the products and merchandise being sold in the event that provides the necessary funds to the event to function effectively. It is a reflection of the different areas from which funds can be generated for the event. An estimated $325,000 value of sales has been forecasted in the business plan. It is important that key marketing tools are utilized to enhance the sales and prospect of the turnover of the products in the vent. It should be given note that it is important for the marketing team to promote and effectively advertise the sale of the products in the event, which is directly related to the fact that how the advertisements and promotions of the event is done. More and more participants should be encouraged to participate in the event as a means of entertainment and a mean of living a healthy life. Conclusion On concluding the report, it can be inferred that it would be feasible and viable for the event to take place. The income and expenditure statement has been closely evaluated and analyzed, which depicts that a net income of $ 245,000 will be generated from the event with a total aggregated revenue of $845,000 from the event. This depicts a great scope of profitability from the event and good scope for the products. The projected income shows the growing popularity and increasing participation of the people in the event. This depicts prosperity of sports tourism in Singapore. The sports products are likely to be successfully sold during the event. Overall, the business plan shows the various strengths, weaknesses, opportunities and threats depict the scope of the event in Singapore. It can be seen that this event has high potential for the growth and success of sports event in Singapore. 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