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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
Personal IncomeOver 20,000
Personal IncomeOver 35,000
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.