Market Analysis And Entry Strategies For Event Company In Berlin

Industry competitors

Industry competitors

There is significant impact of rivalry strategies in the market. Rivalries use means such as advertisement, attractive customer service, competitive prices and innovative products and services. There is need to analyze industry competitors before establishing event company in Berlin.  The threat of industry competitors is high as there are various event companies in the Berlin market.

The substitute products are the result of industry competitiveness. It involves identification of other products which performs the same functions in the selected country. The threat of substitute products is medium because there are various kinds of events and different theme is followed.

The suppliers have significant influence in the event industry of Berlin. It is because the suppliers influence quality and prices of products and services. So, the threat of suppliers is low.

Bargaining power of Buyers

The bargaining power of buyers can fall prices even with the demand of high quality product and service. It can result in loss of business. So there is need to set price of services by keeping in mind price strategy according to bargaining power of buyers. It results in high threat for bargaining power of suppliers.

New entrants

There is possibility of entering new event company only if the existing companies cannot update according to the market needs. The threat of new entrants is low.

Theme is the subject of an event. It is essential to have good theme as it draws more audience to come to event. The guests will not join the event if theme is boring. The objective of event should be considered while deciding the theme (Musgrave & Henderson, 2015). The theme decided this time around is “Love the farm machinery”. Thee covered seating is made from old 80-tonne grain silos. It focuses on no wastage and yesterday’s trash transforms into today’s treasure like key rings can be casted from old tea pots. The open air stage, night bars, cafes, art installations and a well-lit 17 meter ribbon tower is going to attract entire festival site. There is park to sit, relax and take some amazing shots.

(Source: Glastonbury festival, 2017)

Market entry

There are number of ways Glastonbury can organize event in Germany. The most appropriate method depends on the outcome of marketing environmental analysis and the marketing plan (Jones, 2014).

Licensing: Licensing is the least risky market entry method. Glastonbury festival can grant any event company or organization of Berlin to provide the same brand and service as provided by Glastonbury festival. The company can receive royalty payment in return (Dowson & Bassett, 2015).

Substitute products

Contracting: Glastonbury can make use of contracting for the market entry which involves the exchange of ideas. The event company can contract to another event company to provide service on their behalf.

Joint venture: Glastonbury can come in joint venture with local company to share risk of market entry into foreign market. These two companies can share information and skills for the development of company. Profits are shared between two.

 

(Source: Yull, 2017)

STP Model is known as segmentation, targeting and positioning model. The STP model can help Glastonbury festival to prioritize propositions and deliver performance to engage with different audience. It can help company to deliver more relevant message to the appealing audiences (Damster & Dimitri, 2005).

Segmentation: The segmentation step of STP model differentiates types of customers which Glastonbury festival can target. The company can choose from various methods such as demographic, geographic, psychographic or lifestyle. Glastonbury festival can segment its functions by focusing on youth.

Targeting: The event company should identify the market segment which is considered more profitable and can offer the best long term value for the company. Once the company is established it can expand its operations in another profitable market. Audience should be targeted into demographic segmentation such as gender, age, size of family and life cycle.

Positioning: The Company can apply the positioning strategy if it has developed strategy which outlines the services provided by company which is better and more beneficial to target customers than the competitive companies offer. It is the framework for development of on-going product and promotional messaging.

(Source: Visual bliss, 2018)

Glastonbury festival has all the best aspects of being at festival. Attending Glastonbury festival is like going to another country. It is like huge tented city and mini state under canvas. It involves fair amount of travel (Allen, 2009). The festival has diverse socio-geographic regions. New music and emerging talent is an important part of Glastonbury.

Type of Event: Music event

Purpose: Maximize sale of tickets and earn profits.

Objective:

• Penetrate into the market of Berlin through strong sales ticket distribution.
• To create unique music festival for five days.
• To attract audience of Berlin to reach at markets.

(Source: Glastonbury Festival, 2018)

Space: 030 Eventloft is ideal venue in Berlin for the events. It is in the heart of Berlin and unique location for events. The unique view of Oberbaum Bridge from terrace makes more pleasant atmosphere.

Lines:

The lines have important role for the proportions of event space. There should be proper combination of horizontal, vertical and dynamic lines for the visual pleasing and 030 Eventloft have such specifications.

Suppliers

Forms:

These are the shapes which are created by any 3D objects in the space such as furniture and structures. 030 Eventloft have some such features which add drama and character.

Light:

It is an important element in any event. The Glastonbury festival can increase focus by using lights to different areas as atmosphere is highly influenced by the lighting.

Colour:

Colour defines the theme of event. Bright colours attract people like hot pink and orange. Colour has agreat role in decorations, lighting and printed media.

Texture:

Texture has a great role in engaging people physically in any event. Texture includes bouncy, rubber floor and fluffy wall. The actual and visual structure adds more experience to the event.

Pattern:

Pattern adds more interest towards event. The pattern followed in event should be balanced. Two busy patterns should not be used together.

Issues

Glastonbury faced issue of zero hour’s contract controversy in 2017. According to The Independent, 2017 the company issued statement responding to criticism over treatment of European workers (The Independent, 2017). These workers travelled to assist with post vent clean-up. The workers were fired and were told that there was not enough work for them to do. They were expected to two weeks of paid work. Another issue raised for festival was security issue after Manchester and London terror attack. There is also raised concern of overcrowd at Glastonbury festival. According to BBC news, 2010 issue of overcrowd at festival was raised by Mendip District Council in its annual report (BBC news, 2010).

To overcome issue of zero hour’s contract controversy, the company should focus on arranging staff according to need only. They should provide free meals and access to all the facilities available on site. To overcome security issue the company should advice festival goers to pack light. The authority should use all the necessary measures to maximize public safety. For the extra searches vehicles and bags of audience should be checked in Berlin. The Glastonbury festival can manage crowd by employing more volunteers. Enough number of volunteers can manage crowd in a better way. It can also solve issue of wastage by keeping up its green policies. This policy can help to reduce wastage by reusing and recycling. It can also motivate audience to take home what they bring on the site. The estimates for the no of people arriving can be detected by the figures of last year’s database.

Bargaining power of Buyers

(Source: Brand watch, 2017)

(The explanation of diagram is given in the appendice 1)

The marketing strategies are associated with the goals of business. Glastonbury festival can use marketing strategies to plan event in Germany:

It can collaborate with companies to distribute products like t-shirts and tickets.

The event company can find new advertising channels. It can make contract with divisions, suppliers and other companies to promote event or festival planned by the company (Blackman, Benson, & Dickson, 2017).

The event company can explore channels to attract audience.

The festival can become the most popular green initiative in world by promoting its approach of loving the farm and leaving no trace.

The Glastonbury festival can make use of corporate level of strategy which is combination of focusing and developing range of products or services.

The festival can develop various areas by focusing on line up, item stands, food stands and entertainment activities.

Source: Glastonbury fest at host country 2017

To establish event in Germany, Glastonbury festival need to develop marketing plan to reach right audience. Glastonbury festival is not only about gathering crowd, it also includes a great deal of marketing efforts. The marketing plan is used to satisfy customers in the market targeted by company. The 5 Ps subjects to internal and external marketing environments.

Product: The product refers to the offerings of company or what a company exactly offers to customers.  It includes branding, value added features and service. For instance, Glastonbury can provide free tee shirts and accessories with tickets.

Price: Price refers to the way company sets price for attending festival.  It includes the overall cost of arranging an event by company. It also includes the advertised price, discount and payment arrangements. The price also depends on the position of Event Company in the market. For instance, the price of tickets of Glastonbury should reflect the number of days a person can attend.

Promotion: Promotion refers to the activities used by the company to promote event. It includes sales, direct marketing, advertisement and public relations. For instance, Glastonbury festival can add sponsorship to promote business (Ballantyne, Ballantyne & Packer, 2014).

Place: It refers to the place where event is going to be organized. It includes the physical location and delivery methods. The event company can plan event to organize in different cities. For instance, the company can set up online website which allows company to get contracts online.

New entrants

People: It includes staff and customers. The company considers both staff and customers to grow business. For instance, it is required to think about customers using internet to expand business online. The efforts should be made to know whether the audience is interested in buying ticket online or at outlets.  

Process: The service delivered in the presence of customers by the event company. The delivery of service is part of the payment made by consumers.

Physical evidence: The service includes some physical elements. The service provided by the event company is intangible. Still the customers receive physical product.

(Source: Greener festival, 2012)

The strategic theory is a systematic and disciplined approach. It helps to plan and develop new products and services. Strategic theory is used by Glastonbury festival for doing things differently and better (Masterman, 2014). It includes four step approaches:

Evolutionary theory: Glastonbury festival can involve itself in order to exist an environment of constant creative destruction. The evolutionary theory has three processes, variation, selection and retention. It consists of producing required variation from which valuable positions, patterns can be selected.

Positional view: It focuses on looking for a gainful position in market or industry by taking steps to secure that position. The positional view is also called external view. According to this theory competitive advantage is a function of industry attraction. Glastonbury festival can use positional view to gain competitive advantage.

Resource-based view: It can enable Glastonbury festival to provide superior value in its offerings. The resource view deals with the internal resources and capabilities of organization are best cause of competitive advantage. This theory seeks to develop distinctive proficiencies and resources which are applied to produce more value.

References

Allen, J. 2009. Event Planning. Wiley Publications.

Ballantyne, J., Ballantyne, R. and Packer, J., 2014. Designing and managing music festival experiences to enhance attendees’ psychological and social benefits. Musicae Scientiae, 18(1), pp.65-83.

BBC News, 2010. Concerns raised at overcrowding at Glastonbury Festival. Accessed on 12 March, 2018https://www.bbc.com/news/uk-england-somerset-11300255

Blackman, D., Benson, A.M. and Dickson, T.J., 2017. Enabling event volunteer legacies: A knowledge management perspective. Event Management, 21(3), pp.233-250.

Collins, A. and Cooper, C., 2017. Measuring and managing the environmental impact of festivals: the contribution of the Ecological Footprint. Journal of Sustainable Tourism, 25(1), pp.148-162.

Damster, G. and Dimitri, T. 2005. Event Management: A Professional and Developmental Approach. Juta Academic.

Dowson, R. and Bassett, D., 2015. Event Planning and Management: A Practical Handbook for PR and Events Professionals. Kogan Page Publishers.

Flinn, J. and Frew, M., 2014. Glastonbury: managing the mystification of festivity. Leisure Studies, 33(4), pp.418-433.

Griffin, C., Bengry-Howell, A., Riley, S., Morey, Y. and Szmigin, I., 2016. ‘We achieve the impossible’: Discourses of freedom and escape at music festivals and free parties. Journal of Consumer Culture, p.1469540516684187.

Hitchings, R., Browne, A. and Jack, T., 2017. Should there be more showers at the summer music festival? Studying the contextual dependence of resource consuming conventions and lessons for sustainable tourism. Journal of Sustainable Tourism, pp.1-19.

Jones, M., 2014. Sustainable event management: A practical guide. Routledge.

Kose, H. Argan, M.T. and Argan, M. 2011, Special event management and event marketing. Journal of Management and Marketing Research.

Manthiou, A., Lee, S., Tang, L. and Chiang, L., 2014. The experience economy approach to festival marketing: Vivid memory and attendee loyalty. Journal of Services Marketing, 28(1), pp.22-35.

Masterman, G., 2014. Strategic sports event management. Routledge.

Musgrave, J. and Henderson, S., 2015. A pathway to sustainable event management. The Routledge handbook of tourism and sustainability, pp.384-396.

The Independent, 2017. Glastonbury Festival issues statement over ‘zero hours’ contract controversy. Accessed on 12 March, 2018. Available from https://www.independent.co.uk/arts-entertainment/music/news/glastonbury-festival-zero-hour-contracts-european-workers-jeremy-corbyn-labour-michael-eavis-latest-a7826311.html