CURRENT SCENARIO OF EVENT MANAGEMENT ... International Journal of Interdisciplinary Research ISSN...

Eduved International Journal of Interdisciplinary Research ISSN 2348-6775 (Online) 2349-5480 (Print)

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Vol. 01 Issue 07 Oct. 2014

CURRENT SCENARIO OF EVENT MANAGEMENT INDUSTRY IN RAJKOT CITY

Dr. Ashvinkumar H. Solanki Associate Professor

School of Management, R.K. University, Rajkot

Mr. Chintan Rajani Assistant professor

School of Management, R.K. University, Rajkot

ABSTRACT

Think about your own life, your local community and our country. What stands out the most? Special events that bring people together probably stand out as being amongst the most memorable. Events have the unique ability to unite people through shared goals and experiences. Regardless of size, all events have things in common – they require a high degree of planning, a range of skills and a lot of energy. In simple terms, Event management refers to the application of the management science for the development of festivals and events. Event management typically involves identification of target audience, devising a concept, plan logistics as well as coordinate and execute modalities of an event. Event management is the process by which an event is planned, prepared, and produced. Event planning includes budgeting, establishing timelines, selecting and reserving the event sites, acquiring permits, planning food, coordinating transportation, developing a theme, arranging for activities, selecting speakers and keynotes, arranging for equipment and facilities, managing risk, and developing contingency plans. KEYWORDS:- EVENT MANAGEMENT, CONSUMER PREFERENCES, SATISFACTION LEVEL

Event Management Industry

Event Management is a multi – core industry with mega shows and events hosted regularly. In India, personal functions like marriages and birthday parties have become important social matters, and have to be professionally managed. The growth of sophisticated and mega companies have brought forth a spurt of meetings, seminars, exhibitions, conferences, product launches with everything being a matter of class and style. Then comes the innumerable celebrity shows, international artists’ shows, shows for a cause, road shows, competitions and much more. Earlier event management practices were observed in manufacturing and trading sectors, though in scattered segments. Now speed of changes in industrial sector has governed corporate world in which the event management has been extended in social and service sector also. Thus event management in modern scenario would be giant corporate body, where all types of event management services will be available under a single roof. As in recent trend company management uses visualization techniques to bring creativity in the promotional activities. Visualization is the process of co-coordinating activities of an event and thus make ultimate unique event.


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PRIMARY STUDY Problem identification On the basis of above given literature review and information searched, we came to know that there is lower level of penetration of event management organization in the market (Rajkot city). So, we are inspired to know what are the different factors which act as a hurdle for this event management organizations and to identify its critical success factors as well. We carried out this study to know the psychology and behavior of consumer towards event management organization and thereby tried to explore the scenario of event management industry in Rajkot city.

Scope of the study 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. Event management is a process of organizing a professional and focused event, for a particular target audience. The scope of my study is limited to event management organizations of Rajkot city only.

Objectives of the Study

To know the level of awareness towards event management organization

To know the attitude of consumer towards event management organization

To know consumer preference towards different services offered by event management companies.

To know post purchase behavior of consumer.

To know critical success factors of event management companies.

To identify challenges faced by event management companies.

To become more aware about the underlying opportunities which can be supportive for development of career in event management industry.

Hypothesis

Based on the above objectives the following hypothesis are framed 1. Null H0 = There is equal level of preference towards different services offered by event

management companies Alternate H1 = There is no equal level of preference towards different services offered by event management companies

2. Null H0 = Post purchase behavior of consumer is satisfactory Alternate H1 = Post purchase behavior of consumer is not satisfactory Research Design Research designs are concerned with turning the research question into a testing project. The best design depends on your research questions. Every design has its positive and negative sides. The research design has been considered as a "blueprint" for research, dealing with at least four problems:


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What questions to study?

What data are relevant?

What data to collect?

How to analyze the results?

Descriptive research describes data and characteristics about population or phenomenon being studied.

Exploratory research is used to gather preliminary information that will help in greater understanding regarding the topic. Descriptive and exploratory research design both are used under this study. Data Collection Method Use of both the methods i.e. primary and secondary data has been done for carrying out research.

Primary data Individual respondents and Professional persons were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview to professional organizer and through a structured questionnaire to individual respondents.

Secondary Data The secondary data collected on the basis of organizational file, official records, newspapers, magazines, preserved information in various organizations’ database. Statistical tools used The below mentioned statistical tools are used for conducting the research;

Charts and graphs

Factorial Analysis

Chi – square test Sampling plan

Since it is not possible to study whole population, it is necessary to obtain representative samples from the population to understand its characteristics.

Sampling unit: Rajkot city

Sample Technique: According to judgment and convenience.

Sample size: Category Units

Individual respondents

100

Event Managers 5

Total 105


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Research Instrument: Structured Questionnaire for individual respondents

Depth interview for event managers

Time Period: Research is conducted within 8 to 10 weeks.

DATA ANALYSIS & INTERPRETATION

To know the age of respondents surveyed:

Table: 1 – Age of respondents

Age group Percentage

Below 20 15%

20-35 30%

35-50 39%

50-65 11%

65 & above 5%

Chart: 2 – Percentage of age group of the respondents

Interpretation:

39% of respondents were between the age group of 35-50 followed by 30% between the age group of 20-35. Only 16% of the respondents were above the age of 50. 15% of respondents were below the age of 20.

To know the income level of respondents surveyed:

15%

30%

39%

11%

5%

Below 20

20-35

35-50


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Table: 2 – Income level of respondents

Income Level Percentage

less than 1 lakh 10%

1 lakh-5 lakh 42%

5 lakh-10 lakh 32%

10 lakh-20 lakh 10%

above 20 lakh 6%

Chart: 3 – Percentage of income level of respondents

Interpretation:

Majority of the respondents ie. 74% fall under the income level between 1 to 10 lakhs. Just 10% of the respondents have income level less than 1 lakh. There would be very few chances rather no chances that they might opt for event management services. 6% of the respondents earned more than 20 lakhs.

1. To know the events which the respondents are planning to undertake in near future

Table: 3 – Events planned by respondents to be undertaken in future

Type of social events Percentage

Birthday party 40%

Marriage celebration 31%

Baby shower 4%

Get together/dinner party 15%

Vaastu 10%

10%

42%32%

10%6%

less than 1 lakh1 lakh-5 lakh

5 lakh-10 lakh


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Chart: 4 – Percentage of events which respondents are planning to undertake

Interpretation:

40% of the respondents were planning to undertake birthday parties in near future followed by marriage celebrations opted by 31% of the respondents. Baby shower functions are very less preferred by the respondents. The rest ie., 10% of respondents were planning for vaastu and 15% for a dinner party or a get-together function.

2. To know the awareness level of any event management organizations Table: 4 – Awareness level of respondents

Awareness level Percentage

Yes 46%

No 54%

Chart: 5 – Percentage of awareness level of respondents towards event management organizations

Interpretation:

More than 50% of the respondents were not aware of any event management organization. This shows lack of awareness and less knowledge regarding the concept. 46% of the respondents were aware of some event management organization in the city.

40%

31%

4%

15%

10%Birthday party

Marriage celebrationBaby shower

46%

54%

Yes

No


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3. To know whether any event management services have being hired by the respondents in past or not

Table: 5 – Event management services hired by the respondents

Hire services or not Percentage

Hired 33%

Not hired 67%

Chart: 6 – Percentage of event services outsourced by the respondents

Interpretation:

Only 33% of the respondents surveyed had hired the services of event management companies in past. Major portion ie., 67% had not hired any services provided by the event professionals. More integrated marketing tools may be required to capture a greater market share in Rajkot city.

4. To know the very reason for outsourcing or not to outsource the event to event professionals

Table: 6 - For those who are planning to outsource their events

Reasons for outsourcing Percentage

One stop solution 19%

Quality mgmt 28%

Reduce burden 33%

Free interaction 11%

Status 8%

33%

67%

Hired

Not hired


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Chart: 7 – Percentage of possible reasons for which the events are being planned to outsource by the outsource

Interpretation:

33% of the respondents want to hire event professionals only to reduce burden followed by 28% who opt event services for quality management. 19% of the respondents prefer event management services for one stop solution, 11% for free interaction with their guests and the least only 8% for status purpose.

Table: 7 - For those who have not planned to outsource their events

Reasons for not outsourcing Percentage

Lack of awareness 16%

Low reliability 13%

Budget high 32%

Emotional events 19%

Less flexible 13%

Limited choice 6%

Chart: 8 – Percentage of possible reasons for which the events are not being planned to outsource by the respondents

19%

28%33%

11%8%

0%

5%

10%

15%

20%

25%

30%

35%

One stop solution

Quality mgmt

Reduce burden

Free interaction

Status

16%13%

32%

19%13%

6%

0%5%

10%15%20%25%30%35%


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Interpretation:

Budget is the highest reason for which 32% of the respondents are not planning to outsource their events to professionals. 19% of the respondents believe that emotional events would be best managed by themselves, 16% of respondents are not aware about the event management organizations. 13% of the respondents have no planning to outsource their events due to low reliability and less flexibility. Only 6% of the respondents believe that they get a very limited choice if events are being outsourced.

5. To know the proportion of services that respondents prefer to outsource

Table: 8 – Preference of the type of services to be outsourced

Portion of services to be outsourced Percentage

Catering 19%

Arrangements 3%

Decoration 12%

Entertainment 4%

Photography 12%

Accommodation 6%

Extra services 4%

Full service 37%

Hypothesis

Null H0 = There is equal level of preference towards different services offered by event management companies

Alternate H1 = There is no equal level of preference towards different services offered by event management companies

Chi –Square Test:

Fo Fe Fo-Fe (Fo-Fe)(Fo-Fe)/Fe

19 12.5 6.5 3.38

3 12.5 -9.5 7.22

12 12.5 -0.5 0.02

4 12.5 -8.5 5.78

12 12.5 -0.5 0.02


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6 12.5 -6.5 3.38

4 12.5 -8.5 5.78

37 12.5 24.5 48.02

Total = χ2cal 73.6

Degree of freedom = k-1

= 8-1

= 7

Level of significance = 0.05

χ2tab = (0.05, 7) = 14.0671

χ2cal = 73.6

Here; χ2cal > χ2tab

Therefore, hypothesis is rejected.

Thus, there is no equal level of preference towards different services offered by event management companies.

Chart: 9 – Percentage of partly or full services to be outsourced

Interpretation:

37% of the respondents surveyed prefer for full services from event management companies. The rest prefer partly services to be outsourced like 19% for catering, 12% for decoration and photography, 4% for entertainment purpose and extra services, 6% for accomodation purpose.

19%

3%

12%

4%

12%

6%4%

37%

0%

5%

10%

15%

20%

25%

30%

35%

40%


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6. Budget preferred by the respondents to be allocated to event organizers

Table: 9 – Preferred budget by the respondents

Budget Percentage

Less than 1 lakh 10%

1 to 5 lakh 34%

5 to 10 lakh 40%

Above 10 lakh 15%

Chart: 10 – Percentage of the budget level preferred by the respondents to be allocated to

event organizers

Interpretation:

40% of the respondents preferred the budget between 5 to 10 lakhs followed by 34% between 1 to 5 lakh rupees. 15% of the respondents preferred above 10 lakh rupees to be allocated for their events. The rest 10% of the respondents preferred the budget below 1 lakh rupees.

7. To know the satisfaction level of respondents who already outsourced their events by comparing what they expected and experienced

Table: 10 – The satisfaction level of respondents who already hired event professionals in past

Highly satisfied Satisfied Neither satisfied nor dissatisfied

Dissatisfied Highly dissatisfied

Pre event arrangements 18% 30% 12% 21% 18%

10%

34%

40%

15%

Less than 1 lakh

1 to 5 lakh

5 to 10 lakh

Above 10 lakh


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Venue 30% 36% 12% 15% 6%

Layout 30% 36% 15% 12% 6%

Timeliness 9% 12% 24% 30% 24%

Arrangements 15% 33% 15% 21% 15%

Decoration 39% 33% 12% 3% 12%

Co-operation 21% 33% 15% 18% 12%

Accommodation 33% 27% 21% 12% 6%

Entertainment 33% 33% 12% 12% 9%

Ambience 30% 42% 9% 15% 3%

Technology used 39% 30% 12% 15% 3%

Crowd management 12% 18% 18% 33% 18%

Photo/ videography 36% 39% 6% 6% 12%

Creativity 30% 36% 15% 15% 3%

Security 21% 30% 9% 24% 15%

Contingency management 30% 27% 12% 21% 9%

Budget 12% 21% 15% 42% 9%

Winding up 12% 21% 12% 36% 18%

Overall experience 12% 27% 15% 36% 9%

Hypothesis

Null H0 = Post purchase behavior of consumer is satisfactory

Alternate H1 = Post purchase behavior of consumer is not satisfactory

Chi – Square Test:

Fo Fe Fo-Fe (Fo-Fe)(Fo-Fe)/Fe 12 20 -8 3.2 27 20 7 2.45 15 20 -5 1.25 36 20 16 12.8 9 20 11 6.05 Total = χ2cal 25.75 Degree of freedom = k-1

= 5-1

= 4

Level of significance = 0.05

χ2tab = (0.05, 4) = 9.4877

χ2cal = 25.75

Here; χ2cal > χ2tab

Therefore, hypothesis is rejected.


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Thus, post purchase behavior/overall experience of consumer is not satisfactory.

Chart: 11 – Percentage of satisfaction level of respondents

0% 20% 40% 60% 80% 100%

Pre event …

Venue

Layout

Timeliness

Arrangements

Decoration

Co-operation

Accommodation

Entertainment

Ambience

Technology used

Crowd management

Photo/ videography

Creativity

Security

Contingency …

Budget

Winding up

Overall experience

18%

30%

30%

9%

15%

39%

21%

33%

33%

30%

39%

12%

36%

30%

21%

30%

12%

12%

12%

30%

36%

36%

12%

33%

33%

33%

27%

33%

42%

30%

18%

39%

36%

30%

27%

21%

21%

27%

12%

12%

15%

24%

15%

12%

15%

21%

12%

9%

12%

18%

6%

15%

9%

12%

15%

12%

15%

21%

15%

12%

30%

21%

3%

18%

12%

12%

15%

15%

33%

6%

15%

24%

21%

42%

36%

36%

18%

6%

6%

24%

15%

12%

12%

6%

9%

3%

3%

18%

12%

3%

15%

9%

9%

18%

9%

Highly satisfied Satisfied

Neither satisfied nor dissatisfied Dissatisfied

Highly dissatisfied


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Interpretation:

48% of the respondents were satisfied with pre-event arrangements.

66% of the respondents were satisfied with the venue decided by event professionals.

66% of the respondents were satisfied with the layout.

Only 21% of the respondents were satisfied with the timeliness which shows less importance given by event professionals to it.

48% of the respondents satisfied with the arrangements done.

72% of the respondents were satisfied with decorations.

54% of the respondents were satisfied with the co-operative nature of event professionals.

60% of the respondents were satisfied with the accommodation facilities provided by the event professionals.

66% of the respondents were satisfied with the entertainment being included during the event.

72% were satisfied with the good ambience created.

69% satisfied with technology used during the event.

Only 30% were satisfied with the crowd management.

75% satisfied with the photography done during the event.

66% satisfied with the creativity used.

51% satisfied with the security being made.

57% satisfied with the management during contingency.

33% satisfied with the budget limit given to event professionals.

33% satisfied with professionals’ performance while winding up the whole event.

39% satisfied with the overall experience being gained while hiring event managers for their events.

FACTORIAL ANALYSIS:

Table: 11 – KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .519

Bartlett's Test of Sphericity

Approx. Chi-Square 288.421

df 171

Sig. .000


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Table: 12 – Showing total variance explained by the factors

Component

Initial Eigen values Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings

Total % of Variance

Cumulative % Total

% of Variance

Cumulative % Total

% of Variance

Cumulative %

1 5.165 27.186 27.186 5.165 27.186 27.186 3.001 15.795 15.795

2 2.612 13.749 40.935 2.612 13.749 40.935 .542 13.379 29.174

3 1.883 9.909 50.844 1.883 9.909 50.844 2.084 10.970 40.144

4 1.445 7.606 58.449 1.445 7.606 58.449 1.996 10.503 50.647

5 1.246 6.555 65.005 1.246 6.555 65.005 1.918 10.097 60.744

6 1.161 6.110 71.115 1.161 6.110 71.115 1.515 7.974 68.718

7 1.027 5.408 76.523 1.027 5.408 76.523 1.483 7.804 76.523

8 .840 4.421 80.943

9 .694 3.655 84.599

10 .604 3.181 87.779

11 .478 2.515 90.294

12 .461 2.426 92.720

13 .379 1.993 94.714

14 .366 1.925 96.639

15 .272 1.429 98.068

16 .137 .720 98.789

17 .097 .513 99.301

18 .079 .414 99.716

19 .054 .284 100.000

Extraction Method: Principal Component Analysis.


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Chart: 12 – Scree Plot

Table: 13 – Showing Rotated Component Matrix

Component

1 2 3 4 5 6 7

Pre event arrangements .431 .631 .172 .122 .035 .256 .298

Venue .257 .027 .540 -.086 .326 -.340 .340

Layout .111 -.053 .107 .837 .077 .058 .270

Timeliness .049 .745 .166 .266 .142 .095 .283

Arrangements .032 .234 -.103 .195 .065 .139 .818

Decoration -.122 .097 -.034 -.012 .883 -0.12 .234

Co-operation .120 .855 .103 -.182 .140 -.051 -.036

Accommodation .070 .112 .666 .256 -.132 .306 .354

Entertainment .269 -.012 .339 .326 .589 -.060 .070

Ambience .097 .220 -.039 .013 .879 .088 .043

Technology used .093 .090 .231 -.057 .165 .741 -.199

Crowd management .073 .499 -.357 .577 .005 -.082 .034

Photo/ videography .382 -.065 .203 .062 .357 .665 -.168

Creativity .155 .067 .188 .516 .572 .152 -.299

Security .221 .245 .019 .644 .489 -.044 .028

Contingency management .321 .371 .389 -.035 .051 .257 .594

Budget .714 .360 -.165 .388 .150 -.035 -.016

Winding up .722 .110 .285 .115 .024 -.019 -.074

Overall experience .831 -.042 .002 .056 .321 -.039 .339

Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization.

From the factorial analysis done above, we are able to reduce/merge 19 factors to 7 major parameters through which we can measure the success of event management organizations.


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8. To know the things which totally dissatisfied the respondents ie, which they felt worst

The major findings of this are;

Bad time management

Lack of co-operation between their team members

Not stayed within the prescribed budget

No systematic parking and that lead to heavy traffic and inconvenience for guests

Sometimes the entertainers where boring the audience

Entrance was not at all effective which ruined the image of the event of some guests while entering only.

9. To know the things which greatly impressed the respondents The major findings of this are;

Pre-event arrangements were executed very creatively and accurately that the invitees were enthusiased to attend the event.

Crowd management was done greatly.

Food quality as well as availability was best.

Good sanitary and hygiene facilities.

Ambience provided was really awesome which made the event attendees to stay there for a longer period of time.

Best technology for sound system, big screens etc were available.

10. To know the proportion of objectives being met by the event organizers

Table: 14 – Objectives being met by event organizers

Objectives Percentage

All of them 9%

Most of them 36%

About half of them 45%

Some of them 9%

None of them 0

Chart: 13 – Percentage of the objectives fulfilled when hired event organizers

9%

36%45%

9%

All of them

Most of them

About half of them

Some of them


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Interpretation:

About half of the objectives were met of 45% of the respondents followed by 36% respondents whose most of the objectives were fulfilled. Only 9% respondents were there whose all objectives were met when hired event professionals for their events. There was not a single respondent whose none of the objectives were met.

11. To know whether the respondents would recommend event management services to their friends or family

Table: 15 – Willingness to recommend or not about event management services

Recommendation Percentage

Definitely 15%

Probably 27%

Indifferent 35%

Probably not 15%

Definitely not 8%

Chart: 14 – Percentage showing the respondents’ willingness to recommend services of event professionals

Interpretation:

Major portion of the respondents ie., 35% were indifferent to whether they would recommend the services of event management to their families or not. 27% of the respondents would probably recommend whereas 15% would probably not recommend. 8% of the respondents would definitely not recommend the services to their friends and families.

15%

27%

35%

15%

8%

Definitely

Probably

Indifferent

Probably not

Definitely not


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CONCLUSION

The word 'Event' now needs to be re-defined in view of the manifold growth of the various 'happenings' in the 'commercial' as well as in the non-commercial' world. Be it private happenings or public events, everything now is done on 'big scale'. 'Image' is the key word today. This 'image' building exercise today needs a professional manager, either an individual or an organization, depending on the size of the exercise. An event planner with expertise and experience in this field can bring an event alive with difference. Successful event organization entails not only the knowledge of some practical aspects but also lots of creativity. Proper execution of an event requires an event planner to be excellent in cost planning, decoration art, cuisine, hospitality and aestheticism.

From the research carried out it is found that there is lower level of penetration of event management industry in Rajkot city compared to other metros. As this industry is in a growth stage in Rajkot city, there is a high scope of event professionals in Rajkot city. Slowly the conservative mentality of people is decreasing, there is increase in need of entertainments and with the increase in disposable income of the people, more and more events would be outsourced in coming days.

REFERENCES

1. “Event Management: A Professional And Developmental Approach” By Dimitri Tassiopoulos, Greg Damste

2. “Event Planning Made Easy” - Paulette Wolf, Jodi Wolf, Donielle Levine

3. Business Research Methods – by Kooper & Schindler

4. “Event Management and Event Tourism” – 2nd edition in 2004 by : Donald Getz - PhD Professor, Haskayne School of Business University of Calgary, Canada

5. “International Journal Of Event And Festival Management” – Volume 2 of 2011, Issue 3. Executive Editor - Charles Arcodia, the University of Queensland, Australia

6. Ahmed Hassanien, Crispin Dale, (2011) "Toward a typology of events venues", International Journal of Event and Festival Management, Vol. 2 Iss: 2, pp.106 – 116

7. Phil Crowther, (2011) "Marketing event outcomes: from tactical to strategic", International Journal of Event and Festival Management, Vol. 2 Iss: 1, pp.68 - 82

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