Assignment on Event Management Firm Ayojon

8/10/2019 Assignment on Event Management Firm Ayojon

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Name of the Venture

The venture, an event management firm will be known as Ayojon. Ayojon is a Bangla wordwhich means making arrangements or organizing.

Legal Form of the Venture

The company will be a sole proprietorship and be registered under the Bangladesh CompanyAct, 1994. If required the form of ownership will be changed in time.

Ayojon will be a service oriented company that is the firm will provide intangible goods orperform useful labor on behalf of another person.

The company will start its operation in early 2006, if everything goes as planned by theproprietor.

For the purpose of registration the entrepreneur must acquire the following licenses.

1. Trade LicenseFrom Dhaka City Corporation2. Article of IncorporationFrom Registrar of Joint Stock Company

3. Tax CertificateFrom National Board of Revenue

Location of its Office

The location of the office for Ayojonwill be decided when the firm will go into operation in2006. The location for the office will be decided based on the convenience of the prospective

customers of the company. The probable locations are Dhanmondi or Gulshan. Uttara is also in

the list of probable location, if that is convenient for the customers.

Mission Statement

Mission of Ayojonwill be to provide its customer services to their utmost satisfaction.

Vision

Ayojonpledges its dedication to serve thecommunitywith quality services and set an example ofprofessionalism and ethical business practices in the industry.

The vision of Ayojon is centered towards becoming the market leader in event managementwithin 5 years of inception through hard work and commitment, maintaining the leadership and

carrying the flag of uncompromising quality into the unforeseen future with constant value

addition and a strong line of innovation.

Scope of Operation
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Ayojonwill start its operation in a small scale, targeting a segment of the market that has not

been targeted by the existing firms before. It will focus its attention to the needs of the small and

medium sized organizationboth profit and not-for-profit.

Historically ours has been a culture that nourishes strong roots of occasions. We as a nation like

to celebrate a lot of events, and our program calendar hardly sees a week when anythingsignificant does not take place. In congruence with that ongoing heritage of celebration that is

instilled in us, the concept of event management is as old in our culture as the concept of

celebrating that event. What has been lacking until recently is the ability to see the big picture which is the ability to see the opportunities and the problems associated with such big scale

events. And this is precisely where event management fits in.

Present Scenario

The event management industry in Bangladesh is not yet fully developed. There are fewestablished event management firms in the country. The three established solely event

management firms are Jetset PR, AntarShowbiz and Wizard. These firms are dedicatedexclusively to the show business events.

But, the corporate market for event management has largely been unexplored. Although there is

a demand for professional event management organizations, there is few such firms that caterexclusively to this demand. The advertising firms made the most of this situation, as they took upevent management as a very lucrative side business. The initiative of managing their clients

events was started by Asiatic ad agency and soon followed by most of the advertising agencies.

In fact Asiatic was so much interested to see the profit in this sector, that they have opened aseparate subsidiary called Asiatic EML, for the sole purpose of managing their clients events.

But other than that, no significant movements were taken to create a service firm for the purpose

of managing the clients events professionally.

A market survey conducted by a group of MBA students of IBA made an effort to find out the

customer satisfaction level with the existing firms that provide event management services. Thesurveyors asked the clients of these companies to assign different numbers to the following seven

dimensions of a companys event management capability. The average is presented below.

Here 5 = Highest satisfaction with the service

1 = Lowest satisfaction with the service

CEMS AsiaticEML Uni-trend Media

comm

Bitopy Grey Andes Ad

comm

Consistency of

Services &

Professionalism

3 3 4 3 2 3 4 2
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Fulfilling

Commitments1 3 5 3 2 3 4 2

Timely service 4 1 2 1 3 4 4 3

Creativity 2 5 3 1 1 2 4 2

Proactive 3 3 4 3 2 3 1 2

Low Charges 1 4 3 3 3 2 3 2Quick reaction

to complaints

1 3 4 3 3 2 4 3

Total 15 22 25 17 16 19 24 16

From the survey, Unitrend, Andes, and Asiatic EML can be identified as major players in theindustry of event management. They have a high profile client base like

Lever Brothers

British American Tobacco Bangladesh

ACI

Social Marketing Company (SMC)

GQBall Pen

BRAC

Pran

Saudia Airlines

GMG Airlines

Siemens

Unitrend and Andesare basically advertisement agencies, which provide event management as

additional service. As mentioned before, Asiatic EML is a subsidiary of advertising agencyAsiatic.

Other than Asiatic EML, CEMS (Conference and Exhibition Management System) is currently

the only firm delivering event management services.

Demand Analysis

Windmill is an advertising firm, which also manages their clients events as a side business.According to ReazuddinMosharaf, the CEO of Windmill, the demand for professional event

management firms has been strong and the number of events as well as the number of customers

getting interested to look for professional help in arranging their events is increasing. The

demand is growing at the rate of 16% every year. (Page 21, A Perf ormance Analysis of the

Advertising Companies in Bangladesh, Farshed Alam, Institute of Business Administration).But, the supply is no where near to match the demand. This large gap between supply and

demand presents an opportunity for the entrepreneurs in this sector.

In most cases, managers from different departments are brought together to form a committee tomanage corporate events. This arrangement put extra pressure on the managers and sometimes


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results in lack of professionalism as managing an event professionally and cost efficiently

require a good liaison with a number of suppliers. A manager responsible for other corporate

activities usually can not maintain this liaison. But, it is not financially feasible for organizationsto recruit a manager solely for the purpose of managing the corporate events, which is not more

than a few per year in numbers. Hence more and more organizations are looking for professional

help in managing their events.

Non-corporate sector also presents opportunities for the potential event management firms. Even

a decade ago family programs used to be organized by the family members. For example duringany wedding, family members from all around the country used to come together to arrange the

ceremony. But, with everyone spending more time in the workplaces, arrangements of family

events like weddings or akikahs by the family members are becoming increasingly difficult.

Again people are looking forprofessionalhelp in arranging family programs.

The survey mentioned in the earlier section revealed that there is a high demand for professional

event managers. The result of the survey is shown below:

Target

Customers

Questions Asked YES NO

Corporate

Customers

Do you feel the necessity of a professional Event

Management company who can organize your

events?

66% 34%

Do you feel that a professional Event Management

company will add significant value to the way your

events are organized?

82% 18%

If any firm offers exclusively event management

services, would you be willing to use them?

80% 20%

Non corporateCustomers

Do you feel the necessity of a professional EventManagement company who can organize your

events?

59% 41%

Do you feel that a professional Event Management

company will add significant value to the way your

events are organized?

63% 37%

If any firm offers exclusively event management

services, would you be willing to use them?

72% 28%

To be successful, a firm must do a better job than its competitors in satisfying target customers.That is why marketing plan must be geared to the needs of customers and also to the strategies of

the competitors. An organization should constantly compare the value and customer satisfaction

delivered by its products or services, prices, channels and promotion with those of its close

competitors. In this way they can discern areas of advantage and disadvantage.

Market Segmentation

In Bangladesh, the prospect for event management firms is very good. The vast market out there

has not been explored yet. This market can be divided into three major segments.
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The corporate clients

The non-corporate clients

The Bangladesh Government

The Corporate Clients

This segment includes various multinational companies, local public and private limited

companies, financial and non-financial institutions, joint ventures and franchises, small

businesses, NGOs, research institutions, private and public educational institutions, showbizcompanies, social marketing companies, theater groups, cultural forums etc.

The corporate clients are located in Gulshan, Dhanmondi and Motijheel which will be the main

area of focus while conducting the marketing activities.

MNCs that are situated in Gulshan are the biggest market for event management companies.

Customer Segment MainConcentrated

Marketing Zone

No. of

Events

done in a

Calendar

Year

Main Events Done

Frequently

1 Multinationalcompanies are

frequently engaged in

big events.

i) Gulshan

ii)Dhanmondi

15-20 i) Promotional campaigns

ii) Launching of new

products

2. Local service

companies are the

least interested in

conducting big

events.

i) Dhanmondi

ii)Uttara

0-5 Only interested in events

regarding opening new

branches. But even then they

prefer to do it by themselves

as the events are relatively

done in a manner which can

save cost.

MNCs are willing to add professionalism in event management and looking for innovative andimproved ways to manage their corporate events. The survey mentioned in section 02 found out,

most of the companies would like to be associated with an event management company, ratherthan conducting their events in-house.

Target CustomersValueprofessionalism

in Managing

Willing to pay a

premium value

for good event

Prefer to

outsource the

management of

Looking for ideas

of innovative

events to be


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Events management their events to anevent

management

company

associated with

MNC

LocalManufacturing

Companies

Local Service

Companies

Private and

public

educational

institutions

financial and non-financial

institutions

small businesses

The Non-Corporate Clients

Due to changes in our socio-cultural and economic condition, people are spending more time at

work. As a result, they have less time to spend on social affairs get together or a may be a

birthday party for the children. These people make up the non-corporate client segment of the

event management market.

Aged below 26

Ayojonhopes to tap the early college graduates who have begun their professional careers but

have not yet started their families. These events will focus mainly on themes with moderate to

high energy appeal, such as, dance parties, concerts, fund raisers etc. The majority of weddingswill fall into this segment.

Ages 27-55

The persons that fall into this age group are employed, middle to upper-middle class families.

The reason they choose event planners is they are too busy to do it themselves, such as picnics.The majority of special occasion planning will occur in this market segment.

Ages 56 and Above

Persons over the age of 55 have reached the turning point of life. Many are retiring; others arecelebrating anniversaries of significant years, and still others are seeing that their childrens


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special events are taken care of. Most holiday parties, birthday parties and other special

occasions, such as wedding receptions and reunions, will occur in this market segment.

Religion based sub-segment

The major religious group in our country is the Muslims. The minority religious groups includethe Hindus, the Christians and the Buddhists. Although these religious groups live in harmony,

they have some distinct rituals, weddings for example. So, these groups have to be offered with

different packages based on their different religious practice.

Income based sub-segment

Personal IncomeOver 15,000



On the whole, this segment represents upper middle to high income families. This segment has

strong family bonding and they are willing to pay professional event management firms toarrange their family programs.

The Bangladesh Government

Another major segment in this market is the Bangladesh Government. Each year the Bangladesh

Government hosts a variety of programs. Which firm will be in charge of these programs aredecided by tenders.

Target market determination

As has been mentioned before, the market for event management has been unexplored. But, atthe same time, this market is too vast to be targeted by a small firm like Ayojon. To be successfulAyojonwill have to focus its attention to segments or niches that the big players have overlooked

or ignored. This way, Ayojonwill be able to avoid confrontation with the major players in the

market by specializing along market, customer, service and marketing mix lines. Through smarttargeting, Ayojonwill be able to earn as much profit as the market leaders.

A study reveals that the corporate customers are moderately satisfied with the way their eventsare managed.

Target Customers Very

satisfied

Moderately

satisfied

Neutral Moderately

dissatisfied

Very

Dissatisfied

MNC 12% 42% 22% 16% 8%

Local Manufacturing

Companies

11% 34% 12% 26% 17%

Local Service 3% 24% 56% 9% 8%


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Companies

Private and public

educational

institutions

15% 23% 19% 10% 33%

financial and non-

financial institutions

22% 46% 13% 3% 16%

small businesses 2% 28% 22% 36% 12%

The corporate clients, especially the MNCs are very much willing to engage in long-termcontracts with professional event management firms. But most of them already have contracts

with various advertisement firms for their event management. They are not willing to terminate

their contract immediately and would like to engage both an event management firm as well as

advertising firms on a short term basis to see just how much value professionalism adds to theprocess of event management. But, the number of events that these corporate clients are going to

initiate is likely to increase by more than 10% in the coming year. Most significant increase will

take place for the manufacturing companies and MNCs. This will present Ayojon with the

opportunity to have contracts with established MNCs.

Ayojonwill also target the local manufacturing companies, local service companies, private and

public educational institutions, financial and non-financial institutions, and small businesses. As

it is very unlikely that the number of events the corporate customers initiate would decrease in

coming future, the firm is looking at a very positive market indicator.

Ayojon will also target the Government programs and bid for them. This will give Ayojon a

boost in image, which will help the firm to capture the attention of the whole market.

A study revealed that the personal customers are very much interested in event management

services.

66% of the consumers said that they are willing to appoint an event managementcompany to organize their events if the price is affordable.

59% of the customers claimed that they do not possess the necessary expertise to conduct

a big personal event successfully without outside help.

68% of the customers claimed that they would appoint an event management company tosave time. 22% will do it because it will make their life hassle free.

These customers will form Ayojons non-corporate target group. The firm will focus on theresidential areas of Gulshan, Dhanmondi, Baridhara, Uttara, Banani as these locations

represent the affluent income groups among the general population who can afford Ayojonsservices.

So, for Ayojon,there are four distinct niches that the firm can serve effectively.

Niche Identification and Characteristics Events

Niche 1 Growth obsessive MNCs with plenty of esigning promotional


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brands. These companies are looking to either

reposition or redeem the brand image of some

of its brands.

campaigns and events

associating various brands

ith various special days

celebrated, like Family Day.

Niche 2 MNCs, and other big and small local

companies which want professionalism andone-stop service in managing their events.

These companies are moderately satisfied with

the current event management situation, and

see room for improvement.

roduct launching, Annual

general meetings (AGM),Suppliers meeting, fashion

shows etc.

Niche 3 People who are well aware of the huge amountof time and hassle it takes to arrange an event

personally and also well aware of the

usefulness of the professional help in

arranging their personal event.

edding ceremony, birthday

and graduation ceremonies,

igh school reunions etc.

Niche 4 The Bangladesh Government who sponsors a

number of events every year.

ational Tree Plantation

eek, National Scienceeek, LDC Ministers

Conference etc.

Services to be Provided

Ayojonis mainly service oriented, where we will be offering the following services initially. We

have divided these services into four groups, where each group has its individual name,

individual target market, individual positioning strategy and individual growth pattern. These

four groups are

Customized Corporate Events

These are the events that are generally conducted by various advertisement companies and event

management companies with direct orders and specified guidelines from different corporate

clients. Ayojonis also planning to do them, but its offer will be different in this sense that thefirm is going to add professionalism to the service, by providing one-stop service for the

customers. Ayojon is going to cut down the hassle required in arranging the events, and also

through superior supplier relationship the firm will reduce the total time required to arrange theseevents.

Creative Corporate Events

These are the events that are currently not performed by any of the companies but present an

opportunity through which they can enhance their corporate and brand image. Ayojonwill come

up with ideas of new events and the firms sales people will pay an occasional trip to thecompanies, present the idea before them and point out the benefits that they can have by

conducting that event through the firms guidance. For examplethere is a current trend in our

country of associating different brands with different occasions, such as, Anchor with MothersDay and Ponds with Womens day. Ayojonwill come up with ideas that will associate different


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brands of different companies with different occasions like that, come up with ideas of events

(such as, Talk Shows) that will strengthen the bond between that concept and the brand and

present them in front of the companies.

Customized Personal Events

These are the events that are currently done by individuals through their own initiative but

often require too much time or effort for his or her liking. That is why Ayojonis presenting the

concept of event planning for individual events like high school reunions, graduationceremonies, wedding ceremonies etc for the first time.

Government Events

These are the events that Bangladesh Government sponsors for various purposes, like the

national week for science and technology, national tree plantation week, etc. The Government

also hosts programs like LDC Ministers Conferences. These programs present enormousopportunity forAyojon.

Using Computer Technology Effectively

In order to provide better services to its customers than the competitors, Ayojonwill maintain a

number of databases

Customer database

There will be separate databases for corporate clients, non-corporate clients, and the Government

programs. This database will provide the firm with a tool to create loyal customers and provide

them the best value.Ayojonmaintains that creating new customers is much harder than retaining

them.

Supplier database

This database will include name of the suppliers, their office location, name of their productsand/or services and price tags.

Venue database

This database will include name, location, and rent of different venues in the country.

Using Internet Effectively

Keeping in mind the effectiveness of a net solution, Ayojonhas decided to add online servicesfor its customers. This website will allow the customers to log on 24 hours a day and order for

their events, and also view what are the resources that are available to him or her for arranging

desired event. The website will help a customer to express his or her opinions or launch a

complaint, so that the firm can quickly get back to the particular customer in the least possibletime.Ayojonplans to hire an IT specialist who will maintain the website. Data from the website


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will directly go to the customer relations department. The website will be updated daily for the

convenience of the customers.

Ayojonwill launch its website at the very beginning of its operation in early 2006.

Products or Services to be Introduced in the Future

After Ayojon starts its operation, it will introduce new products or services to add value to its

existing services.

Step-by-Step event Planning Guides

These booklets include a calendar to map out the event, a step-by-step guide on what is needed

for and how to put together a successful, worry-free event, resource information, popular

refreshments with recipes, games, and tips to put their event in the record books. The eventsavailable include meetings, retreats, parties, vacations, and special occasion celebrations such as

graduations, holidays, showers, weddings, and receptions.

Resources Manual

This valuable guide acts as a review for all the resources located in the surrounding area. A

ranking is given to the various services, such as caterers, decorators, disc jockeys, bands, and

facilities. This manual gives the client the freedom of making a choice based on experience.

Core Competencies and Uniqueness of the Services

Ayojonscore competency is based on two value additions that the firm will be providing. Thesevalue additions will position the firm totally apart and always ahead of any existing and potential

competitors. These two value adding dimensions are stated below.

Professionalism

Various event management and advertising companies are already arranging most of the

corporate events but they are done very informally, with most of the things being done at the

last moment. As a result the only available supplier is being contracted, the only available venueis booked and temporary employees and volunteers are hired in a very informal way from their

known people to work during the event. But Ayojon is planning to do it in a thorough and

professional waywhere the firms main emphasis would be saving time of the clients, making

an assortment of supplier available for the client through strong networking with suppliers,

getting the booking list of the venue available to the customers and frequently updating them,allowing the customers to know what is available 24 hours a day through logging on to the

website and hiring temporary workers in a very professional way from credible sources.

Innovation

Ayojons distinct and most fundamental capability is that the firm will always be adding

innovative ways to serve the customers. At the beginning, the firm will be allowing the


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customers to get updated information of what is available regarding their events, from the firms

website. Other than this, Ayojon is also planning to introduce step by step guides and resource

manual in futureeach of these products being the first of its kind in the country.

Pricing of the Service

Price is the most sensitive element of marketing mix. Once set at a level, it is hard for any firm to

change it. As a new comer in the market, Ayojonhas to be careful in pricing its services. After

considering a number of factors, Ayojonhas decided to offer its customers a number of packagesall based on mark up pricing.

10% Mark Up Package

This package is for the corporate clients and to be used in bids for Government programs.

Currently, all other companies are charging 15% mark-up on existing cost as agency charge.

Ayojon is charging only 10% to send a message that the firm is not only providing superiorservices, but actually providing them with much lower cost. This is a strategy that Ayojonwill

use to lure clients from the competitors.

It will also attract small corporations, who at present are unwilling to hire event management

services due to high costs associated with it.

8% Mark Up Package

This package is also for the corporate clients those who are interested in sponsoring charity

programs. For example, a company wants to sponsor a concert to raise funds for children

suffering from cancer. If they hireAyojonto organize the concert, the firm will charge them 8%

mark up on cost instead of usual 10% mark up on cost.

15% Mark Up Package

This package is for non-corporate clients. In this case the firm is charging higher with 15% mark

up over prices. The purpose is sending a message that Ayojon is not interested in small events

and also to communicate to the market that the firm is providing quality services at a premiumprice.Ayojonis claiming that the firm is looking for prestige and professionalism and someone

looking to cut cost in a birthday party is not the person the firm is looking for.

Sometimes customers may want to reduce the price. However in most of the cases Ayojonwill

try to ignore these requests as they will hamper the firms business in long run and it will be able

to assure the customers that the cost is a result of quality the firm is providing.

Distribution of Services

Ayojonis looking to distribute its services in two ways.

Traditional distribution network.

Non-conventional Distribution network


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Traditional Distribution Network

In this process the customers will call Ayojonor come to its office in search of help to organize

events.

Non-conventional Distribution Network

To find new market, we will try to use our sales force and other channels to get

customers. Our sales people will go to corporate offices to find potential clients, to inducethem to use our service.

The clients can get access to the website at any time of the day and make queries aboutthe events that he/she has in mind. This is a process that is not yet followed in our

country. This online service will include ordering for the event, reviewing and approving

the budget and monitoring the progress. This will save both time and money of both

parties.

Positioning of the Firm

Most of the services of Ayojonare positioned to take advantage of future market opportunities

and openings. For that the firm has tracked the current market trends, forecasted the futuremarket openings and positioned the services and service upgrades accordingly.

Trend 1

In a not so distant future, people will be so hard pressed for time that they will try to save time

as much as possible from possible sources.

To keep in pace with this trend, Ayojonhas prepared a website where people can get access 24hour a day to make advance bookings for events, to see which venue is open for booking atwhich date without making several phone calls, to get access to the firms assortment o f services

without coming to the office etc. all of which will help people to save a substantial amount of

time.

Trend 2

An inevitable impact of western culture which is currently prevalent in our society would mean

that people would look for new ways to express their identification with the west which will

enforce a more party going, free-spirited behavior.

For that, Ayojonis planning to introduce a few events initially which is very much prevalent in

the west but not yet introduced in our culture. Some of these events are Drive-In movies; Maskparty, etc. If maximum security and professionalism is adopted, people will be very much willing

to adopt this new time-passes.

Trend 3


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With the advent of technology, people will look for more and more customized product and

service.

Ayojonsfocus will be to customize the services as much as possible to cater to the customers

need better.

Promotion

Ayojon is a new organization and certainly needs exposure to the market before it moves into

business. So the firm has divided its promotional campaign in a number of dimensions

Pre-Launching Promotion Advertisements Relationship management After sale service

The firm must also consider the following aspects for promoting

Public awareness building Service attributes promoting Success promoting

Pre-startup promotion

The pre-startup promotion period will determine our initial market share and reputation in theindustry. As we are forming a new organization and moving into the industry for the first time,

we need to create organization image and familiarity among our customer base. To do this we

plan to perform the following promotional activities:

Press Conference

After forming the organization, Ayojonwill arrange a press conference to announce the date of

starting operation of its business and other related information about other service. This will be

the firms first formal approach to the target market. In event management business, media playsa very important role as they can enhance the image of the firms services if properly used. The

following is a summary of the pre-launching press conference:

The conference will be held 15 days before inaugurating. It will be held at a reputed venue, preferably a reputed hotel. About 100 selected media people including journalists, and selected business people will be invited.

Full-time employees ofAyojonwill be introduced to the invitees so that future relationship becomeseasier.

Cost of the press conference will depend on the venue of the press conference. If the press

conference is held at a hotel in Dhaka, it cost will be near tk.50,000.

News Coverage


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In the press conference, Ayojon will have to make sure that the firm is covered well by the

media. The right exposure to the market through media should be achieved. The firm should also

make sure that the event and the organization Ayojon make story in Naksha (weeklysupplement of Daily Prothom-alo) and Lifestyle (weekly supplement of Daily Star) and other

supplements like those.

Advertisements

After the successful completion of the press conference, Ayojonwill emphasize on the 14 daysthat the firm will have before inaugurating. At this point the promotional campaign will be

intense and very critical for the success of the organization. To do this the firm will take the

following steps:

Newspaper Advertisement

Ayojonwill start advertising on newspapers seven days before the inauguration. The firm mayselect two Bangla and one English daily (preferably Daily Prothom Alo, Daily Jugantor and

Daily Star). The Ad on first four days will try to create public awareness about the event

management organization. On the 7th

day which would be the inauguration day, the firm willgive a full-page prospectus on those papers about Ayojonsorganizational activities, services and

other related topics.

Number of Advertisement 11 Advertisements

Number of Full-page Advertisement 1

Number of Half-page Advertisement 10

Cost of Full-page Advertisements (in taka)80,000

Cost of Half-page Advertisements (in taka)200,000

Total Cost 280,000

Moving into the first month of the business, the firm must consider new promotional tools to

reach the target market. For that purpose,Ayojonwill continue with newspaper advertisement inthe first month of business. However the firm will move the advertisements in the third page of

the newspaper instead of the first page. Ayojon will select one Bangla and one English

newspaper (preferably Daily Prothom Alo and The Daily Star). The ads will come to each paperonce every week (in different days for the selected papers).

Number of exposure 8

Size 3 column 4 inch

Color Two color

Total Cost (in taka) 48,000

After first month the frequency of newspaper advertisements will be reduced and will be shown

once in two weeks and in the process only 4 times per month.

Banners


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Banners will be put on prime points on Dhaka city for the launching and long-term promotional

campaign. The locations chosen for the banners are Firmgate, Mahakhali, Mirpur, Dhanmondi,

Gulshan, Motijhil etc.

For

malInau

gura

tionand

Cultural Show

Ayojonwill arrange an inauguration ceremony in reputed venue. The program will include the

following parts:

Official Inauguration of the Organization

Cultural Program Dinner

In this ceremony, the firm will invite representatives of its potential corporate customers, media

people, media stars and some of the top business person. Approximately 200 guests will beinvited in this ceremony. The program will be covered by print media. Special gift items will begiven to the guests. The cultural program will be performed by local artists.

Number of Guest 200

Number of additional person 50

Total Guest 250

Cost of gift items( 200150) Taka 30,000Cost of the Dinner (250400) Taka 100,000

Cultural Program Taka 50,000

Other costs Taka 20,000

Total Cost Taka 200,000

Personal contact

The most effective way to negotiate with corporate buyers is using personal contact. By using

personal contacts, the firm can influence the decision making process of the corporate buyers andalso can attract them. For private users word-of-mouth can be an effective way. Successful

arranging of private ceremonies like wedding ceremonies, picnics will enhance the company

image as well as developing loyal customer base.

To get in touch with potential corporate customers, membership in different clubs of the city like

Dhaka Club, International Club may be helpful.

Open Air Concert

Number of Banners 20

Location Firmgate, Mahakhali, Mirpur,Dhanmondi, Gulshan, Motijhil etc

Size 10 ft X 4ft

Cost (Taka 2000 X 20) Taka 40,000


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To get attention of the non-corporate customers, Ayojonwill arrange an open-air concert. The

firm will bring both the traditional and modern singers as well as the top bands of the city to

perform on stage. The concert will be held in Army stadium. For that, sponsorship of TranscomBeverage (Pepsi) will be sought.

The cost of the concert will be recovered by selling tickets. The target will be to achieve break-even in this concert so that the firm will not have to incur any extra cost arranging the concert.

On the other hand this will also work as a promotional tool for the firm.

Relationship Management

In the modern era, one of the most critical factors of success is to maintain relationship with

different interest groups. To decrease the time required to arrange an event, cut cost and preserve

qualityAyojonwill maintain relationship with the following groups:

E Designer

During different corporate events, different souvenirs will be published. The task of designingthese souvenirs will be sub-contracted to Chitrolekha Graphics Design.

E Printer

The task of publishing different souvenirs will be sub-contracted to a definite printing press. Thispress will print all the required papers and souvenirs required byAyojon.

E Chef

During wedding ceremonies or picnics, a chef will be needed to cook foods. Ayojonwill have acontract with preferably FakruddinBaburchee to cook in the events organized by the firm, ifnecessary.

E Flower shops

Flowers will be required for decoration purpose. Ayojonwill sub-contract the supply of flowersto a reputed flower shop of the city

E Decorators

Ayojonwill also maintain relationship with a decorator, in case their service is required for anyevent organized by the firm.

After Sale Service

The customer relations department will call the customers after the completion of every event, to

know whether the customer is satisfied with the service they have got. They may alsocongratulate the customer on the successful completion of an event. All these will boost the good


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image that the company will promote regarding their service since the customer will think that

Ayojon really care about the customers.

The customer will get the chance to express his/her complaints at any time in the website. The IT

department will pass that complaint to the customer relationship department, who will reach the

customers to solve his/her dissatisfaction at the least possible time which will give the firm asuperior service image in the eye of the customers.

The main element of Ayojons service mix, created for the sole purpose of making acommercially viable service offer, will have to be the firms skilled human resource. Ayojonis

not a primarily technology based companyand with such reliance on the human element of the

enterprise, the firm has the unique opportunity to introduce high-class professionalism with ahint of personal touch. The dedicated and versatile employees recruited by the firm must be keen

to serve the industries best and their diverse natures and skills should allow the firm to cope

with any pressing situations in the near future.

Organizational Structure

Ayojonwill have four departments. These departments as well as their functions are stated belo

Departments Sections Functions

Marketing This

department

ill have

three

sections.

Sales Section The sales department will

perform the duties of selling

the events that the firm is

going to create and find

sponsors for them. They will

keep liaisons with the

specific corporations.

Customer

Relations

Section

The duties of this section

ould be to keep good

relationship the clients.

Media

Relations

Section

The duties of this section

ould be to keep good

relationship with the media.

Event Management The basic duty of this

department is to conduct

the events in an organized

fashion. The employees of

this department will co-

ordinate the various


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activities such as renting the

facility, arranging

decorations, providing

refreshments, and the other

specific activities.

IT This department will be

responsible for maintaining

databases, and the firms

ebsite. The employees of

this department will also

inform the customer

relations department of any

grievances sent by the

customers through the

ebsite.Finance The finance department will

carry out the functions

regarding financial

decision-making, cash flow

management and financing

options.

Number and Designation of the Key Personnel

There will be five key positions in the firm. Their designations are given below:

Chief Executive Officer

Head of Marketing

Event in Charge

Head of IT

Chief Financial Officer

For each key position, one person will be employed. It total, there will be five key personnel

Number and Designation of Other Employees

Other than the five key personnel, there will be eight other employees. Their designations aregiven below:

Department Designation No. of Employees

Marketing Sales Section Sales representative 02

Customer

Relations

Section

Customer relations executive 01


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Payroll and accounting activities

Sales representative Sell Ayojonsservices to different corporate clients.

Find out whether potential customers have demands different

than that perceived by the firm

Customer relations

executive Handle customer grievances

Keep in touch with the customers and inform them of our

different services

Media relations

executive

Keep in touch with different media people

Make sure that the firms news are well covered by the media

Executive, Event Designing the event schedule

Coordinating the different functions to perform an event

Controlling the events

Taking corrective actions if anything goes wrong Maintaining good supplier relationship

Executive, IT Assist the Head of IT in his work

Design the website

Design the database

Maintain the website and the database

Inform the customer relations department of any customer

complaints.

Executive, Finance Assist the CFO in his/her work

Book keeping

Employment Requirements

The employees of Ayojonmust have certain for the firm to ensure professionalism in its services.

Name of the Position Job Requirements

Chief Executive Officer

Should be a good strategic decision-maker

Should have exceptional leadership

skills

Employees in Marketing Department Experience in related field

Proper academic background with

a major in Marketing


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Good communication skills

Employees in the Event Management

Department Experience in related field (not

mandatory, but will be preferred)

Innovative

Ability to create and designeffective events to the satisfaction of

the customer

Ability to generate good ideas for

growth opportunities

Ability to work under pressure

Employees in the IT Department Experience in related field

Proper academic background

Innovation (required for the design

of the website)

Employees in Finance Department Experience in related field

Good analytical skills

Proper academic background with

a major in Finance

Ability to analyze investment

opportunity

Organizational Diagram

For an organization to perform effectively, it must have a chain of command. For Ayojon, it willbe as follows:

Compensation Structure

To get the best service from its employees, Ayojon must plan for an attractive compensation

structure for them. The following table shows monthly expenditure on employee salaries.

Designation of the

Employees

No of

Employees

Monthly Salary

(in Tk)

Total Salaries

Paid

Chief Executive

Officer

01 40,000 40,000

Head of Marketing 01 18,000 18,000

Sales Representatives02 6,000 12,000

Customer Relations

Executive

01 12,000 12,000

Media Relations

Executive

01 12,000 12,000


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Event in Charge 01 18,000 18,000

Executive, Event 02 12,000 24,000

Head of IT 01 18,000 18,000

Executive, IT 01 12,000 12,000

Chief Financial

Officer

01 18,000 18,000

Executive, Finance 01 12,000 12,000

Cook / Cleaner 01 1,000 1,000

Total 197,000

These are the beginning salaries of the employees. The sales representatives will receive the cost

of transportation to the corporate offices. They will also receive a 2% commission based on the

cost of each client they acquire for the firm.

From the third year of the operation, the employees will get 5% annual increment. This

increment will be for the employees who will have worked forAyojonfor two years.

Temporary Help

During conducting different seminars, product launching events Ayojon may be in need of a

number of volunteers. However, as the firm is striving to create professionalism, it will chooseand pay these people following a more formal and appropriate procedure. The firm shall

maintain a database on the girls and boys who want to work in this service. When the occasion

arises, the firm will ask them to come to its office after reviewing the database. The CEO and the

Head of the four departments will interview the candidates, and choose the appropriate person.This is how Ayojonwants to go at great lengths in promoting professionalism even at these trifle

matters which will definitely make the firm stand out among the crowd, in the eyes of thecustomers.

Performance Review

Every year there will be a formal performance analysis of the employees of Ayojon. Informal

review will take place every now and then. Steps will be taken according to the findings of the

analysis. Employees with good performance will be rewarded. If required employment of thepeople with unsatisfactory record will be terminated.

Type of Office

The proposed event management firm Ayojon will set up its office in either Dhanmondi, or

Gulshan. A house with five rooms (at least) will be rented. The executives will be stationed inone room which will be divided into cubicles. Another room will be kept for the head of the

departments. This room will also be divided into cubicles. The CEO will have a separate room.

The office will have a reception desk at the entrance. A small lobby will be adjacent to the

reception desk. The entire office will be set up with new furnituredesks, tables, revolving


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chairs, etc. Air conditioners will have to be installed, preferably split air conditioners. Venetian

blinds will be used instead of curtains. Simple and cheap partitions will serve to separate one

cubicle from another.

Utility

Two telephone lines from T&T will be acquired, with parallel lines reaching the CEO, head of

the departments as well as the executives. Utilitieselectricity, gas, and waterwill be in

supply. A stove and a kettle will be kept in the kitchen so that the employees and others can usethem. A small refrigerator would also come in handy, especially during the summers.

Interior Design of the Office

The office interior should be elegant, with a hint of personal touch. Ayojonwants to convey a

message of professionalism and confidence in the minds of its clients, as well as making themfeel at ease, so that the clients do not hesitate in saying what exactly they want from the firm.

The firm could have done the duty of renovating the flat that it will be renting. However, interiordesigning firms would have more competence in this regard; since they will be able to

understand the effect of each element on the minds of the clients. So, professional help can be

brought in for the purpose of office decoration.

Equipment

Since Ayojon is focusing more on the human skills, rather than on the capabilities of machine,having state-of-the-art technology is not that important for the firm. However a certain level of

technology is required.

There will be three computers, two for IT department and the other one for the rest of the officework. The two computers in the IT department will be used to maintain the firms website and

the databases.

There will also be a color printer and a scanner in the office.

The firm wishes to maintain quick information flow among the employees. Therefore, theexecutives will be provided with mobiles. The people actually related with providing the core

service will always have communications with the other departments so that any problems can be

resolved immediately.

Start Up Cost

The following table shows the startup cost of Ayojon:

Particulars Cost (in Taka)

Registration 25,000.00


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House Rent @ 20,000 (Advance for 3 months) 60,000.00

Furniture 150,000.00

Dcor 50,000.00

Air Conditioner 200,000.00

Telephone (T&T) 50,000.00

Computers 100,000.00

Scanner 20,000.00

Printer 5,000.00

Photocopier 150,000.00

Stationary 2,000.00

Advertisement & Publicity 618,000.00

Miscellaneous 50,000.00

Additional Cash 500,000.00

Total 1,980,000.00

Sales Forecast

1stSix Months

Provided

in 1 Month

Total Number of events

provided during the time

period

Customized

Corporate

Events

2 12

Creative

Corporate

Events

1 6

Customized

Personal

Events

2 12

2nd

Six Months

Provided

in 1 Month

Total Number of events

provided during the timeperiod

Customized

Corporate

Events

3 18

Creative

Corporate

Events

2 12


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Customized

Personal

Events

2 12

So, in the first year of operation, Ayojonwill organize a total of 84 events. Among them there

will be 30 customized corporate events, 18 creative corporate events, and 24 customizedpersonal events.

Projected Income Statement

Ayojon plans go into operation in 2006. Projected income statement for three years are given

below:

Particulars Period

2006 2007 2008

Revenue 34,500,000.00 37,950,000.00 41,745,000.00

Cost 31,200,000.00 34,320,000.00 37,752,000.00

Gross Margin 3,300,000.00 3,630,000.00 3,993,000.00

Salaries 2,364,000.00 2,600,400.00 2,860,440.00

Utilities 60,000.00 66,000.00 72,600.00

Rent 240,000.00 264,000.00 290,400.00

Other 50,000.00 55,000.00 60,500.00

EBIT 586,000.00 644,600.00 709,060.00

Tax @ 35% 87,900.00 96,690.00 106,359.00

EAT 498,100.00 547,910.00 602,701.00

This income statement is based on certain assumption.

Sales will be as forecasted.

Average cost of customized corporate events and creative corporate events will be

tk.500,000. The Charges will be 10% and 8% mark up on cost respectively. For customized personal events, average cost will be tk.300,000. The charge will be 15%

mark up on cost.

Growth in sales will be 10% per annum.

Increase in all expenses will be proportionate to growth in sales.

There are no loans, hence no interest.

Depreciation will be calculated using straight line method.

There is no transaction on credit.


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Break Even Analysis

Contribution margin forAyojonis 9.56%.Fixed costs elements are showed below:

Particulars Cost (in Taka)

Registration 25,000.00Furniture 150,000.00

Dcor 50,000.00

Air Conditioner 200,000.00

Telephone (T&T) 50,000.00

Computers 100,000.00

Scanner 20,000.00

Printer 5,000.00

Photocopier 150,000.00

Total 750,000.00

So break even sales will amount to tk.7,845,200. Fortunately, Ayojonwill be able to achieve thistarget in the first year of operation.

SWOT Analysis

SWOT analysis forAyojonhas been done to delineate the progressive hurdles to be faced by the

entrepreneurs as well as outlining the possible solutions for solving the problems.

Strengths

To find out the competitive edge ofAyojonover the existing competition, the firm must identifyits strengths to emphasize on them.Ayojonhas a number of advantages over its competitors.

First, Ayojonwill provide one-stop service which will enable the customers to just visit thefirm only and not any one else for the purpose of arranging the events.

The firm charges a lot less than the existing companies who enjoy a 15% agency charge,

whereas, it will be charging only 10% mark up for corporate clients.

Ayojon will maintain superior supplier contracts and personal connections with officials of

different venues which will enable the customers to choose from the highest possible variety ofoption

Through superior supplier contract and because of the policy of not handling too many events at

the same time, the firm will be capable of arranging events faster than any other event

management company that currently exists.


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The firm will be there to take orders from the customers 24 hour a day. In a sense, for Ayojon

employees there will not be any fixed office hours as the website will be there to take orders

from them at any point of the day so the customers can place order or make adjustments evenat the eleventh hour. This is a service provided only byAyojon.

Rather than only making events for the customers by taking their orders, the firm will also allowthem to make their own events using its resources, such as The Step by Step Event Planning

Guide which is a service that onlyAyojonwill provide.

Weaknesses

The weaknesses of this new venture have been identified so that Ayojoncan find a way to getover these obstacles. First in the line is that Ayojondepends a lot on successful enlistment of

qualified personnel. For example the web-based customization offerings depend a lot on the

firms hiring computer personnel who would be adept at both database manipulation and web

authoring. The firm may not be able to locate this personnel and this will affect the performance.

Then, at the beginning of the operation, Ayojon may find that it has underestimated the

marketing costs and this may leave the firm high and dry in terms of cash if it decides tocontinue with the campaign or the firm may be forced to abandon the campaign midway.

Prospective clients may react differently to what the firm has envisioned. This may force the firm

to change the service mix.

The firm may find that it is consistently failing to meet the revenue targets. This would cast

doubt over the firms ability to manage the business as well as the future prospects of the

venture.

Operational costs like employee costs may turn out to be more than anticipated thus squeezing

the profits. This would have negative impact on the business.

After starting the operationAyojonmay find that the existing market strategy is not suitable for

the continued growth in the industry. This would force the firm to make a quick review andchange of the current market policy.

When it comes to financing, the first risk that the firm may run into is that the amount of loansanctioned by the bank may not be sufficient to satisfy our needs. Often banks put in too many

regulations upon the entrepreneur in exchange for the loan. The imposed regulations may curtail

the creativity and risk-taking propensity of the firm, which may have a negative impact over the

management of the company.

The banks would often require that the founders commit their own assets as collateral as well as

the assets of the company. If the entrepreneur accepts such requirements then he/she runs the riskof committing double jeopardy whereby the borrower may lose all his/her assets as well as the

venture if the bank decides to recall the loan at any time.

Opportunities


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The corporate event management industry is growing at the rate of 16% per annum. This

presents a huge opportunity for Ayojon. If the firm can make proper use of this opportunity, it

will be able to emerge as a major player in the industry.

Threats

ForAyojon, one of the major threats is that the firm may find out that the selected suppliers are

unable to fulfill the firms needs as well as it would have liked. This may have negative impact

upon the quality of the firms service and the mode of operations. If the firm is forced to get rid of the existing suppliers then it will need to get new suppliers and this would force the quality of

service to fall as the firm get accustomed to new suppliers.

The competitors pose another threat for Ayojon. They have been in the market longer; and have

established a reputation and client base. Because of being there in the market longer, the supplier

relations of these firms will be much stronger.

Most of the MNCs and big companies are already under contract with the existing advertisementcompanies and event management companies. This will make it hard for Ayojon to capture themarket.

Legal Environment

Currently there is no legislation regulating the event management industry. It will be some time

before any laws are passed to regulate the industry. Without any rules relating to this particularindustry, it may get harder to enforce some of the contracts which are unique to this industry.

Political Environment

The political environment poses threat only when it comes to capturing the Government marketfor event management. If Ayojon wins the bids for organizing some big Government events

during the reign of one party, it may solely loose the market during the reign of another party.

The pace of managing any event is bound to suffer due to political unrest. Hartals, strikes willcause a problem in meeting deadlines.

Economic Environment

Economic environment is a major factor when it comes to the non-corporate market for event

management. This service is targeted towards the upper middle class and the upper class of the

society. But the majority of our population belongs to the middle and low income group. Unlessthese people gain economic prosperity, the growth of this industry will be stagnant at one time.

Socio-cultural Environment

We wish to capture the personal market as well as the corporate clients by giving them

innovative services with regard to arranging events. However, in Bangladesh the job of arrangingpersonal events like wedding or parties, have traditionally been performed by the family


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members or friends themselves. So there is real risk that demand for our product in the personal

sector may not peak up as quickly as we would have liked.

Competitive Environment

ForAyojon, one of the major competitive environmental elements is the existing competitors ofthe company. These are the various advertising agencies that are operating in our country as they

are providing most of the event management services at present to the corporate clients. Other

than that there are two event management companies, Asiatic EML and CEMS (Conference andExhibition management System), who are providing somewhat similar services can also pose a

potential threat.

The potential competitors are those companies that would enter the market after our introduction.

The firm will have to keep an eye on these new competitions to see what kind of value addition

they are capable of, in order to stay one step ahead of the competition.

The low or non-existent barriers to entry and exit compound the competition situation further.The lack of effective barriers to entry and exit may present grave danger to the growth of ourbusiness as the industry matures.

In future more and more organizations will look for professional event management services tomanage their events effectively. Ayojon intends to take full advantage of this opportunity. The

business plan provides pros and cons of establishing a profitable business venture. The report

went to great details in identifying the potential risks and threats, is simply because theentrepreneur wants to stay a step ahead of the problems that can hinder the progress of this

venture. In identifying the potential risks, the author was as thorough as she could, simply

because using such foresightAyojonwill be able to stay away from all sorts of trouble.

Event management firms can help different organizations and individuals to save time and

money. The promotion of these firms is beneficial in terms of employment generation. Thus theorganizations should encourage the establishment of these firms for their own benefit.

Conclusion

It has been evident from all the factual presentations of the business plan that Ayojon is a

committed and resourceful for creating and developing the intellect of business in the country.

The owner and the visionaries are confident that they can make up a better service and establish

a perfect network of event management business even in the tough times of Bangladeshi businessenvironment through their wisdom and endeavor in the context of arranging different ceremony.

Assignment on Event Management Firm Ayojon

Documents

Transcript of Assignment on Event Management Firm Ayojon