In the last 10 to 15 years, there has been enormous growth in the event management business. It is a way of outsourcing occasions that are either business, social or a combination of the two. If an event is managed efficiently and effectively, it can be used as a very powerful promotional tool to launch or market a product or service. Event Management requires certain core values to be deployed to every element, process and decision to justify professional approach and achieve effective and efficient results.
Event management industry is up surging in the emerging markets like India and China, and because of economic growth and increase in spending power of the consumer in emerging markets over last 5-6 years, there has been a boom in the event industry, which is yet to be capitalized. Hence there is lot of scope not only for the large organizations but also for the entrepreneur to make a mark in the event industry.
Even the Entertainment industry is growing at a significant pace.
Recently International Live Music Conference (ILMC) was held at London. The focus of ILMC was on to capitalize upon the growth opportunities prevailing in live music concerts in emerging markets. Conference emphasised on the opportunities and the problems faced by promoters in organising the live event in Central & Eastern European countries. Excerpts from the conference suggested that emerging markets are immensely potential, and there is huge scope for the growth of entertainment industry in these countries, although some challenges need to be completed successfully.
My focus is on to identify the scope of live concerts especially musical concerts in the Tier two cities of India i.e. the cities which have population of more than 2 million and less than 7 million. Second Tier cities like Pune, Chandigarh, Lucknow, Jaipur, Ahmdabad etc, have vast potential and have witnessed a significant economic growth over past few years and the consumer’s spending power on entertainment has gone up. Plenty of opportunities prevail in these cities, which are yet to be explored.
A billion plus population with almost 500 million of them capable enough to aspire for a better living, increase in per capita disposable income, aggressive foray of new and international brands in the market and above all a large vacuum in the live entertainment space – all these are mild indicators of the immense potential that India has for entertainment acts. Bollywood and Cricket are two religions that every Indian adheres to and the way both these industries have taken off in the past few years is immaculate.
To project the growth of live entertainment space in India with special focus on the future of music concerts and sporting events in second tier cities of India?
To look and explore the opportunities prevailing in tier two cities.
Try to analyse the reasons that’s holding Big player of the Live event industry to explore these cities.
To identify the opportunities for an entrepreneur to enter the live entertainment industry, and to fill the vacuum
Primary reason for the selection of the topic is my keen interest in entertainment industry and Increase in the consumers disposable income and the economic growth of second tier two indicates the vast opportunities prevails in these cities which are yet to be explored.
The Idea is to understand the market better with an aim of creating a company that caters to the exact needs of the country’s able population.
According to Pricewaterhouse Coopers, Indian entertainment industry is expected to grow at 19% per annum in 2010. And the market size is projected to be Rs 1800 crore (£255 million) by the end of 2010 as compared to Rs 800 core (£155 million) in 2009. It shows that market for live event is growing at a very healthy rate. The reason being, economic growth and rise in consumer income. The growing number of television, corporate and sport events are playing prominent role in development of the live entertainment sector. All these indicators make Indian market very lucrative for the investors.
The proposed research is inspired by the success of alternative entertainment industry in India and especially in Tier two cities of India.
Study will be conducted on two parallel entertainment industries, namely, Multiplexes and Indian Premier League (IPL). Reason for emphasizing on these industries is their significant growth in a short span of 3-5 years.
IPL is a domestic T20 cricket tournament designed on the lines of the English Premier League. It was the first sporting event ever to be broadcast live on the popular video sharing website YouTube. The Indian Premier League’s brand value was estimated to be around $4.13 billion in 2010.
Consortium of India’s Sony Entertainment Television network and Singapore-based World Sport Group secured the global broadcasting rights of the Indian Premier League and the deal has a duration of 10 years at a cost of US $1.026 billion.
The figures speak themselves about the success of this event. And it shows the potential and opportunities prevailing in Indian market are immaculate.
Qualitative Case study is being adopted as method for conducting study. Case study provides systematic way of looking at event, collecting data, analyzing information and reporting results (www.answers.com/case+study&r=67). Qualitative case study will guide in developing preposition and interventions required for identifying the opportunities in potential second tier cities with relevance to change in consumer spending on entertainment.
I will be interviewing the event promoters, event producers and sponsors
I will be involve in four city live concert tour organised by Pepsi
Primary research will be the main source of collecting data. I will be interviewing the existing player of the entertainment industry, the sponsors and advertisers as the event industry is sponsor driven. I will be interviewing these players, in order to get the information or criteria taken into account before deciding their target city for live concert and will try to analyse the reason for not targeting Tier two cities.
I am going to involve four cities live concert tour organized by Pepsi, to get a glimpse of the event industry and to know what factors need to be considered before organising them.
I will be travelling around and will research on the present scenario and interact with existing players to understand the logistics of gig planning in India.
Micro and macro analysis of the potential second tier two cities:
Porter’s five forces and swot analysis
Consultant report on entertainment industry, by consultant group such as Pricewaterhouse Cooper, KPMG, Accenture etc.
Government report on changing consumer behaviour and incomes
Industrial reports published by entertainment firm like DNA Networks
I will be conducting study on the data available on success of parallel entertainment industries in the Tier two cities. Focus will be on the strategies adopted by multiplexes and how they were able to exploit the opportunities in Tier two cities. Another industry that is worth to look for is Indian Premier League.
I will gather data by organising structured interview with the current player of the event industry in India. In order to obtain insight factor that influence decision making factor of a firm before organising a live concert. Sponsors play big role in success of any event whether it is sports or music. As sponsors is financial backbone of an event. Therefore it becomes essential to interview the sponsors, to know what they look for before sponsoring an event. Semi structured survey will be done on the changes of consumer behaviour and consumer spending over the period of last 5 years.
Statistical techniquies will be used to analyse the data to facilitate the change in economic, industrial and consumer behaviour over the past 5years. Triangulation method will also be used to overcome the potential bias of single method approach (Hussey and Hussey, 1997).
First draft of dissertation including outline will be done by 15th April.
Then secondary research will be conducted as follows:
15th april to 21st april Identify potential tier 2 cities
21st april to 27 th april Macro and micro analysis of the second tier cities
1st july to 7th july Study the Consumer behaviour with respect to spending on entertainment
25may – 25 june Interviewing event promoter, producer and sponsors
Problems to be faced:
Since the live entertainment industry in India has very few key players and is largely fragmented, it restricts the ease of conducting this study. Initial efforts have suggested that the current promoters of concerts are reluctant to share any business-related information. Their willingness to disclose empirical information determines the success of the project.
Following are a few problems that are most likely to challenge this project
Lack of macroeconomic information :
Due to its size, the live entertainment industry has not been a case for economic analysis so far. Therefore it is hard to find indicators such as the industry size, number of players in the market, its growth rate etc. In developed economies, systematic ticketing firms can provide relevant information to deduce the aforementioned indicators. However, the electronic ticketing market in India is still in its nascent stages
Ease of Access
The domestic market for live entertainment, as mentioned earlier, consists of very few key players who are unwilling to disclose information.(Media and Entertainment industry:2009) Live entertainment industry relies on sponsor funding to stay economically viable and with relevant information on this front tough to access, it is hard to conclusively decide on essentials which determine the prospect of research question – ticket price, sponsored fund percentage etc.
Reliance on Primary Research
With not adequate information available on the internet, the study entirely depends on information derived from primary research initiatives such as interviews with the producers, artists, promoters and sponsors. Given the timescale this could be a constraint.
4. Assessment of scope
To assess on the viability of producing live acts in Tier II cities could be complicated due to lack of existing parameters. Variable production costs make this activity extremely volatile
Determining the scale of Economy
Live entertainment activities such as stage shows, circus, theatre etc do exist in the cities. However, this study aims at assessing the prospects of concerts of national and international artists whose price vary greatly. Price of the artist is entirely dependant on the given time and his success and their choice is extremely important to conclude with convincing answers
Limitations of time
Although we would arrive at empirical conclusions, this study would be limited to a set timescale as the parameters chosen i.e. the artist may get redundant over a period of time.
Potential contribution to theory:
This projects attempts to study a sector that is largely unnoticed by the academia in India and around the world. Therefore, on a successful and convincing completion, it could hold key indicators to studying the market in India.
This study can be visualized to benefit three dimensions of business namely The Promoters/Producers, The Sponsors and the consumers
Some of the contributions as visualized at this stage are mentioned below
Providing a theoretical framework: This study would provide a theoretical framework for promoters and producers to assess the viability of doing a live project in Tier II cities of India. It could act as a template to design the costing for such a program.
Potential Assessment: Tier II cities constitute a large part of Indian population and the success of this study can unleash the immense potential hidden in the market for entrepreneurs.
Sponsors and Marketers: Live entertainment acts are a great vehicle for marketing for brands that look to create deeper relations with their consumers. Region specific local brands can find this a great opportunity to market their products and build an image. It is a cost effective strategy compared to electronic advertisements
New avenue for entertainment: This could also result in providing new avenue for the entertainment of a large section of the Indian population.