FINANCIAL VIABILITY OF EVENT MANAGEMENT IN

V.R.MANAGEMENT SERVICE
COIMBATORE

A SUMMER PROJECT REPORT

SUBMITTED BY
P.SANGEETHA
(O5PIT21)

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
(IT ORGANIZATION ADMINISTRATION)

UNDER THE GUIDANCE OF

Ms.Shweta.G.Jain, B.Com., M.B.A.,

DEPARTMENT OF MANAGEMENT STUDIES

AVINASHILINGAM INSTITUTE FOR HOME SCIENCE AND
HIGHER EDUCATION FOR WOMEN
(DEEMED UNIVERSITY)
COIMBATORE - 641043.

JUNE 2006
 FINANCIAL VIABILITY OF EVENT MANAGEMENT IN
V.R.MANAGEMENT SERVICE
COIMBATORE

A SUMMER PROJECT REPORT

SUBMITTED BY
P.SANGEETHA
(05PIT21)

A SUMMER PROJECT REPORT SUBMITTED FOR THE AVINASHILINGAM INSTITUTE

FOR HOME SCIENCE AND HIGHER EDUCATION FOR WOMEN
(DEEMED UNIVERSITY)
COIMBATORE - 641043

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
(IT ORGANISATION ADMINISTRATION)
JUNE 2006

CERTIFIED AS BONAFIED RESEARCH WORK

SIGNATURE OF THE DEAN SIGNATURE OF THE GUIDE

Acknowledgeme
nt
 ACKNOWLEDGEMENT

The success of this project lies in the hands of many persons who have helped
and guided me in completing this project. I take opportunity to express my thanks and
gratitude to each and every one of them.

Iam greatly indebted to the Chancellor, Mr. K. Kulandaivel, M.A., M.A.,

Ph.D., and the Vice Chancellor Mrs. Saroja Prabhakaran, M.A., Dip.Ed., Ph.D., and
the Registrar, Mrs.Gowri Ramakrishnan, M.sc.,M.phil.,Ph.D., of Avinashilingam
Deemed University for women, Coimbatore for having given an opportunity to undertake
this project work, which forms part of the curriculum.

I wish to express my sincere gratitude and thanks to the Dean, faculty of

Business Administration, Mrs. Shantha. B . Kurup, M.com., M.Phil., M.B.A., Ph.D.,
for her valuable advice and timely encouragement to complete my project.

I express my deep sense of gratitude and indebtedness to my project guide

Ms.Shweta.G.Jain, B.Com., M.B.A., lecturer, department of management studies, for
her careful guidance and help at each and every step through out the preparation of this
project work.

I also express my sincere thanks to Ms. Chitramani, M.B.A., M.Phil., Ph.D.,

Mrs. A. Pankajam, M.B.A., M.com., FICWA., M.Phil., Ph.D., Mrs. J. Arthi, B.com.,
M.B.A., DA and PR., M.Phil., Ph.D. Mrs. T. Bina, M.B.A.,Ph.D., Ms. G. Kousalya,
M.B.A., M.Phil, Ms. J. Juliet Gladies, B.Sc., M.B.A., lecturers department of
management studies for their valuable support and encouragement to complete the
project work.

I owe my heartful thanks to Mr. K. Anatharaman, Management advisor, K.

Anatharaman and Associates Coimbatore, Mr. Vijay A Krishnan and all staff
members for providing me necessary information for the successful completion of this
project.

I owe my grateful acknowledgement to my family members and special thanks,

to all my pals who helped me to make this study a colorful one.

Last, but not ever lasting I thank the Lord almighty for giving me the courage
and wisdom to take up this project and complete it successfully.
Contents
 CONTENTS
CHAPTER PAGE
NO. TITLE NO.

Synopsis
List of Tables
List of Chart
I Introduction
About the Industry 1
About the Company 8
About the Topic 16
Scope of the Study 21
Objective of the Study 22
Limitations of the Study 23
II Review of Literature 24
III Research Methodology 38
IV Analysis and Interpretation 40
V Summary
Findings 57
Suggestions 59
Conclusion 60
Bibliography
Synopsis
 SYNOPSIS

This study report is an outcome of the study carried out on the topic
“FINANCIAL VIABILITY OF EVENT MANAGEMENT”, with reference to
V.R.Management Service.
This study aims at finding the financial viability of events management. The
main objective of this study is to evaluate the economic viability of the various events,
planning of the event and actual execution of the event. This study also analysis the
various problem faced by the event management in various operation.
In the study, data collection was carried out using direct interview, discussion with
staffs and managers.
The analysis and interpretation was made on the viability of the events of the
company. This helps the researcher to understand about the company.

.
List of Tables
 LIST OF TABLES

SNO. TITLE PAGE NO.

1 VIABILITY ANALYSIS OF EXHIBITION

1.1 Expenses 41
1.2 Income 42
1.3 Net profit 43

2 VIABILITY ANALYSIS OF MUSICAL PROGRAM

2.1 Expenses 45
2.2 Income 46
2.3 Net profit 46

3 VIABILITY ANALYSIS OF INSHOP PROMOTION 49

4 VIABILITY ANALYSIS OF BRAND LAUNCH 51

5 VIABILITY ANALYSIS OF CONFERENCE MEETNG 53

6 VIABILITY ANALYSIS OF ROAD SHOWS 55

List of Charts
 LIST OF CHARTS

SNO. TITLE PAGE NO.

1 VIABILITY ANALYSIS OF EXHIBITION 44

2 VIABILITY ANALYSIS OF MUSICAL PROGRAM 48

3 VIABILITY ANALYSIS OF INSHOP PROMOTION 50

4 VIABILITY ANALYSIS OF BRAND LAUNCH 52

5 VIABILITY ANALYSIS OF CONFERENCE MEETNG 54

6 VIABILITY ANALYSIS OF ROAD SHOWS 56

Introduction
About the
Industry
 EVENTS MANAGEMENT

The ever-increasing human wants play a key role behind any event, with the
arrival of the new millennium, the need for new medium of entertainment has become a
fancy and a need of Indians. Thus the previously unorganized sector of events made way
for a more professional subject called Event Management.
The term “Special Event” was coined by Robert Jain from the
original Disneyland. This is how it came about…
In the 1950’s Walt Disney opened his first theme park in
Anaheim,California.when his guest became to depart in the early afternoon on the
opening day the distrsught Mr Disney turned to his director of public relations,Robert
Jain, and reportedly asked his to find an attraction to retain them.
Jain developed the Main Street Electric Parade. This night time event has
entertained million and resulted in the capturing millions of dollars in revenue which
would have otherwise been lost.
In today’s time-chasing world, more than 200 companies have forayed into event
management. This industry has mammoth scope for young and ambitious entrepreneurs.
According to industry sources the total billing for the year 2005 were estimated at Rs
1150 crore with the domestic events according for Rs 1150 crore international events 800
crore.
Events are fast becoming an integral part of marketing strategy of companies. Live
entertainment events, especially international events are drawing people in large
numbers. Television channels are looking for driver programmers to boost viewership
and events offers a unique genre of programming. On the account of these factors the
industry is expected to grow at an astounding rate of 30% per annum over the next 5
years to a size of Rs 5600 crore in 2009 nationally.
 1

The industry in Coimbatore (area of study) lacks the structural

requirements and organized infrastructure in terms of skill management and its
development. If explored properly, the event management industry has the potential of
being one of the fore users in building the Indian economy. A distinct gap was perceived
by the corporate and the personnel appointed by them for handling events. Specialized
event managers are now widely sought after, is being absorbed in event management
firms, hotels or corporate houses themselves.
The ever growing industry of events is being used as a way of product
marketing, fund raising, stimulating economies, developing community awareness,
increasing public involvement and improving quality of life.

Event Management can also be said as “advertising below the line”. The phrase
defines in simple terms the event as a medium through which the public is made aware of
a particular company or product. Events are organized with a purpose in mind to be
fulfilled. The success of an event can be measured by the smiles, satisfaction, awe,
inspiration and exhibition that it generates.
Event can be organized for three main objectives
• To create awareness
• To improve sales
• To raise funds for trusts and charities
Events, which concentrate on the awareness concept, go mainly for a new
product in the market or for a product, which is not doing so well in the market
presently. These types of events are mostly product launches and trade fair;
Otherwise companies go for sponsoring events.
For improving sales of a particular product event managers go for door-to-
door selling, road shows, exhibitions, put up stalls etc.
 2

Some clubs and charity associations put up society awareness

program or fund raising event for public cause.

DEFINITION:
Event management means planning creatively organizing and finally
executing an event, which could be for a product or brand launch, an exhibition, a
music concert, international celebrity appearances, fashion or charity shows or even
a conference.
Events management is all about turning dream projects into plain reality,
creativity, imagination and an eye for details, ensure that the end product is as
wonderful as the concept, or sometimes even better.
An event management company is one that specializes in the planning,
organization and logistics of meetings, conferences, and special events.
In course of the last 20 years, event management has come to include an
integrated range of service like
• Brand launching
• Live shows
• Conference meetings
• Exhibition
• Retail merchandising
• Fashion shows
• Theatre and musical fest
 3

EVENT MANAGEMENT PROCESS

AIM & EVENT RESOURCE PLANNING IMPLEMENTATION

BRIEF &BUDGETING

EVALUATION

AIM AND EVENT MANAGEMENT

This can be again classified into different process. They are following:

EVENT CREATION:
Creative conceptualization of the event, the identification of the target
audience, timing of the event and preparation of a presentation or event brief.

OFFICE MANAGEMENT:
A dedicated team is provided to handle all questions, queries from outside
Parties to the event, press and other delegates. Sometimes this involves building a
dedicate web page to give information to the clients and asking them to request
information outline.

EVENT MARKETING:

This involves marketing the event to the defined target audience using the most
cost effective marketing mix. Depending on the budget and the coverage requested this
could involve conventional advertising in leading local, regional, international
newspapers and publications, web marketing, relationship marketing, direct mail, tele
marketing, TV ads and billboards.

MEDIA MANAGEMENT:
Managing all the public relation activities related to the events (prior, during and
after the event), coordinating with the local, national and international media for
organizing press conferences, interviews and press releases.

RESOURCE PLANNING AND BUDGETING:

VENUE MANAGEMENT:
This involves selection and confirmation and preparation of the event venue based
on the client’s budget and preferences.

MATERIALS MANAGEMENT:
This involves design preparation of the materials required for the event based on
the specifications given by the client.

DELEGATE MANAGEMENT:
 Handling visa arrangements for all international travelers, coordinating all
transport arrangements including airport transfer, city travel, arranging accommodation
of the participants in hotels on specially discounted rates based on the clients preference.

5
FINANCE MANAGEMENT:
This is an important process that determines the success of any event. Cash inflow
and outflow should be maintained properly as effective usage of funds is necessary to
avoid sudden shortages.

IMPLEMENTATION:
THE PLANNING TEAM:
The event layout is planned by this team along with the client. The production
team ensures that everything required is made available on the D-day in liaisons with the
other departments.

EVENT DAY MANAGEMENT:

Creating the event agenda, handling all the logistics relating to the event, handling
of the registrations and banquets.

THE EXECUTION TEAM:

Their work begins after the initial planning and approval by the client. They
handle the infrastructure and work mostly on the day and the day before the event. The
team comprises electricians, decorators, florists and carpenters, etc. there are supervisors
for coordinating and smooth running affairs.

MARKETING OR CLIENT SERVICING:

They procure clients for the event management company. The above departments
work in close coordination with each other and it is often difficult to compartmentalize
their functions. The creative and visualizing team has the copy writer, visualiser, and
set/spatial designer, graphic designer etc. However, many firms hire an ad agency or
freelancer for the creative aspects.

Factors to be taken into consideration while choosing an event:

 Nature of the product/ service

 Target audience and their purchasing power
 Logistics
 Duration of the project
 Focus of the company
 Schemes and company policy on budget
7
 About the
Company

COMPANY PROFILE

V.R.Management Services was formed in the year 2002 as a unit

specialising in the organising and conduction of various events based on the need of the
clients. They conduct several events like road shows, inshop demonstrations and
promotions, field market surveys, exhibition stalls and conduct a variety of games and
competitions in schools and colleges. The company has been able to earn the reputation
of having a good workforce and being able to conceptualize and meet the expectations of
the clients every time.
The company has carried out many market surveys for Smithkline Beecham
Consumer Healthcare Ltd., Tata Teleservice Ltd., Pricol Ltd., Chandra Hyundai etc. The
company also has done many Sales Promotion Programmes for Hindustan Lever Limited,
Colgate Pamolive India Ltd, Castrol India Ltd, Nestle India Ltd, Indian Oil Corporation,
Britannia New Zealand Ltd., Hindustan Coca-Cola etc.
 8
EVENTS MANAGEMENT:

COMPANY’S NAME DETAILS OF EVENT

Nestle India Ltd. Quiz Competition at Consumex

Colgate – Palmolive (India) Ltd. Promotion of Colgate Herbal Toothpaste in

stall at Consumex
ITC Limited Promotion of their products at President
Hall and Suguna Kalyana Mandapam.
Godrej Sara Lee Ltd. Promotion of Godrej Ambi Pur, Godrej
soaps, Clean Flush and Godrej tea at the
stall at Suguna Kalyana Mandapam
Lawrence & Mayo Eye Screening camp at Schools such as
Stanes, Perks, SBOA and St.Mary’s.
BPL Mobile Cellular Limited 20 days Road Show to promote WIZ32K
Simcard from BPL and one full day event at
Rathna Regent

Philips Promotion at the stall of Philips at PSG

Hospital Grounds
Sony World Exhibition of Sony products of Sony World
at Rajasthani Sangh
HSBC Bazaar Promotion at stalls such as Lily Stall,
Vasavi Jewellery, HSBC stall and Factory
Outlet Store at Ramakrishna Kalyana
Mandapam
Leela Sundaram & Co. Promotion of Leela Sundaram Apartment at
SBI Loan Mela at Corporation
Kalaiarangam, R.S.Puram

9
Larsen & Toubro Limited Promotion of L & T stall at Codissia
Complex
Bajaj 2 days special event and Road show for
Rydon
Goldcon 2002 – PSG Hospital Doctors Meet at PSG Hospitals

Medico Imaging Co. Promotion at the stall of Philips at PSG

Hospital Grounds
Tally Solutions Pvt. Ltd. Tally conference and Tally Roadshow

Events

Aircel Road shows for “GO TO GOA” Scheme in Tamil Nadu &
Pondicherry

ICI Paints “Inshop Promotions & Painters Meet" for ICI Dulux Paints
in South India

Colombia Pictures Road Show for a Movie "Black Hawk Down" in Coimbatore
District

Sony Max "Gully Cricket" an event with Kapil Dev for promoting World
Cup 03 in Coimbatore

Future Events

Mega Brands Shows 03 November 03 in Coimbatore

Agri Expo 2004 June 2004 in Coimbatore

10
E-Life

The E-Life Expo provides unlimited venues for Internet solutions for homes &
offices. E-life will unveil the latest Internet, Internet & e-commerce solutions & services,
including web-based services, contact development, web design & other technical
applications apart from exhibiting winning marketing trends from industry leaders.
Anyone who is connected to the Information Technology industry would never miss E-
Life for anything in this world.

11
Mega Brands Show

The Mega Brands Show is an annual event that showcases the best of India's
brands to the citizens of Coimbatore. With a product range that runs from A - Z, the best
brands of India will be on display. Brand names have entered a new era where they have
become status symbols. Corporates across the country are giving top priority to brand
projection, marketing and visibility, and are increasingly using trade fairs and exhibitions
to improve popularity. Mega Brands Show thus becomes the best way to project your
brand to the world.

12
Office
 The Office series of exhibitions are the leading authority on products, ideas,
designs, services & innovations related to offices, schools and homes. For the past four
years, the public has received Office series of exhibitions with great enthusiasm. Office
02 is the only show in the region, which can give maximum mileage to your unusual
products & services.

Smart Rooms

The Smart Rooms Exhibition Series showcases the best of interior

architecture and designing, thus making ordinary rooms into "smart rooms". With the
most modern of electronic gadgets and appliances, your kitchen, bedroom, living room
and bathroom gets transformed into living places that will be envy of others. With a
visitor profile of Architects, Interior Designers, Engineers, Builders, Construction
professionals, Entrepreneurs, Contractors, Housewives, Students and General Public, it is
very hard that your product will escape unnoticed.

13
Bus & Truck Expo

The Bus & Truck Expo aims to present the latest products and services in the
automotive industry to the world. This show recognized as the premier business event for
transport industry market will allow manufacturers and suppliers can reach out to a target
audience at the show to demonstrate leading technology and latest products.

14

Agri Expo
 The Agri Expo highlights the latest developments, products and services in the
agricultural sector. This Expo attracts the major agriculturist and other agriculture related
industries to showcase their products and services.

15
About the Topic

ABOUT THE TOPIC

 The term financial analysis also known as analysis and interpretation of financial
statements refers to the process of determining financial strength and weakness of the
firm by establishing strategic relationship between the item of the cost sheet and other
operative data. ”Analyzing Financial Statement”, is a process of evaluating the
relationship between component parts of financial statement to obtain a better
understanding of a firm’s position and performance.

“Financial statement analysis is largely a study of relationship among the

various financial factors in a business as disclosed by a single set of statements, and a
study of the trend of these factors as shown in a series of statement”.

The purpose of financial analysis is to diagnose the information contained in

financial statements so as to judge the profitability and financial soundness of the firm. A
financial analyst analysis the financial statement with various tools of analysis before
commenting upon the financial health or weakness of an enterprise. The analysis and
interpretation of financial statements is essential to bring out the mystery behind the
figure in financial statement. Financial statement analysis is an attempt to determine the
significance and meaning of the financial statement data so that forecast may be made of
the future earnings, ability to pay interest and debt maturities and profitability of a sound
dividend policy.

Financial statement analysis involves analyzing the firm’s financial statement to

extract information that can facilitate decision-making. For example, an analysis of the
financial statement can reveal whether the firm will be able to meet its long-term debt
commitment, whether the firm is financially distressed, whether the company is using its
physical assets efficiently, whether the firm has an optimal financing mix, whether the
firm is generating adequate return for its shareholders, whether the firm can sustain its
competitive advantage etc; while the information used is historical, the intent is clearly to
arrive at recommendations and forecasts for the future rather than provide a “picture of
the past”. 16

The performance of a firm can be assessed by computing key ratios and analyzing:
 a. How is the firm performing relative to the industry?
b. How is the firm performing relative to the leading firms in their industry?
c. How does the current year performance compared to the previous year(s)?
d. What are the variables driving the key ratios?
e. What are the linkages among the ratios?
f. What do the ratios reveal about the future prospect of the firm for various stake
holders such as shareholders, bondholders, employees, customers?

Merely presenting the series of graphs and figures will be a futile

exercise. We need to put the information in a proper context by clearly identifying the
purpose of our analysis and identifying the key data deriving our analysis.

Financial analysis is performed by both internal management and

external groups. Firms would perform such an analysis in order to evaluate their
overall current performance, identify problem/opportunity areas, develop budgets and
implement strategies for the future. External groups (such as investors, regulators,
lenders, suppliers, customers) also perform financial analysis in deciding whether to
invest in a particular firm, whether to extend credit etc. there are several rating
agencies (such as Moody’s, Standard and Poors) that routinely perform financial
analysis of firms in order to arrive at a composite rating.

FINANCIAL VIABILITY
“Financial viability is an absoluate necessity to ensure success”.
Financial viability study is aimed at finding out whether the event is
financially viable or profitable. A company is expected to generate income sufficient
enough for its survival and growth. For acquiring required fund for a business from
different sources, a cost is to be paid. For running the business, various expenses are
to be incurred. Hence a firm has to generate sufficient income not only to meet all
expenses but also to make profits and allocate fund for further growth. To achieve
17
this objective, the viability study is essential in the following areas
• Whether a firm has to conduct the event to earn profit.
 • Whether it can generate sufficient cash flows to avoid any liquidity problem.
The financial viability study critically examines the costs associated with
the production process, utilization of resources etc. The various costs are analyzed
under cost analyse for the year 2006.
INCOME
Increase in economic benefit during the accounting period in the form of inflows or
enhancement of asset or decrease of liabilities that result in increase in equity, other
than those relating to contribution from equity participants.
The important points to note are,
1. The definition of income encompasses both revenue and gains.
2. Revenue arises in the course of the ordinary activities of an enterprise.
Examples are sales, fees, interest, royalties and rent.
3. Gains represent other items that meet the definition of income and may
or may not arise in the course of ordinary activities of an enterprise. An
example is of games on the disposal of real estate.
4. Income also includes an unrealized gain. An example is of gain arising
on revaluation of land, building, plant, machinery and equipments.
Usually, income arising on revaluation of those assets is not taken to the
profit and loss account and is shown directly as revaluation reserve that
forms the part of the equity in the balance sheet.
5. Income is recognized simultaneously with an enhancement in the
carrying amount of asset or decrease in the carrying amount of
liabilities. For example, if a creditor agrees to receive Rs.1000 in full
settlement of a liability of Rs.1200, the reduction of liability by Rs.200
results in simultaneous reorganizations of a gain of Rs.200.
6. Gains are often reported net of related expenses.

18

Purpose of the Income Statement

 The primary purpose of the income statement is to report a
company’s earnings to investors over a specific period of time. Years ago,
the income statement was referred to as the profit and loss (or P&L)
statement, and has since evolved into the most well-known and widely used
financial report on Wall Street. Many times, investors make decisions based
entirely on the reported earnings from the income statement without
consulting the balance sheet or cash flow statement (which, while a mistake,
is a testament to how influential it is).
Using Income Statement Analysis to Calculate Expenses,
Earnings, Financial Ratios and Profit Margins
To an enterprising investor, income statement analysis
reveals much more than company’s earnings. It provides important insights
into how effectively management is controlling expenses, the amount of
interest income and expenses, and the tax paid. Investors can use income
statement analysis to calculate financial ratios that will reveal the rate of
return the business is earning on the share holders’ retained earnings and
assets; they can also compare a company’s profits to its competitors by
examining various margins such as gross profit margin, operating profit
margin and net profit margin.
As we progress through this series of investing lessons, you must
remember John Burr William’s basic truth that a business is only worth the
profit that it will generate for its owner from now until doomsday,
discounted back to the present, adjusted for inflation. The income statement
is the “reported card” of those earnings which ultimately determine the price
you should be willing to pay for a business.

19

EXPENSES
Decrease in economic benefits during the accounting period in the form of
outflows or depletion of assets or incurrence of liabilities that result in
decrease in equity, other than those relating to distribution to equity
participants.
Important points to note are,
1. The definition of expenses encompasses losses as well as those
expenses that arise in the course of ordinary activities of the
enterprise. Examples are: salaries and wages, rent, electricity and
repair and maintenance of assets.
2. Losses represent items that meet the definition of expenses, and may
or may not arise in the course of ordinary activities of the enterprise.
Examples are: loss is resulting from natural disasters, and loss on
sales of building.
3. Expenses include unrealized losses. For example, loss arising from
increase in the exchange rate of a foreign currency in respect of
borrowings of an enterprise denominated in that currency.
4. Recognition of expenses occurs simultaneously with the recognition
of an increase in liabilities or decrease in asset. For example,
recognition of depreciation of equipment results in recognition of an
expenses.
5. Losses are often reported net of related income.

20
Scope of the
Study
SCOPE OF THE STUDY

Each and every business concern should know its financial viability to
predict its future actions. Even though a firm is not financially viable for conducting an
event management, viability analysis is essential.
Liability over the assets results in insolvency position of the company. In that situation it
becomes difficult to survive in the market. Scope of the viability study helps to avoid the
above critical situation. The scope of the event is the content of the event and the work
required to put it all together. It is essential to understand the amount of work that has to
be done to get the event happening.
The viability study of V.R. Management Service helps to understand the
measures to increase the productivity, which leads to the profitability and permanent
survival in the market. This study helps further research and policy making.

21
Objectives
 OBJECTIVES

 This study is an alternate to evaluate the economic viability of the

various events, planning of the event and actual execution of the
event.
 This study will analyse the various problems faced by the event
management in various operations.
 This study will analyse cash inflows and outflows and it should be
maintained properly as effective usage of funds as it is necessary
to avoid sudden shortages.
 This study aims to give the event management the necessary terms
and methodology to control the costs of an event and be able to
talk to ‘accounts’.

22
Limitations
 LIMITATIONS

 Event management is still a new and native concept in Coimbatore

and therefore not all areas of the subject like finance, crisis
management etc, is dealt in detail.
 Time was the main limitation of the study. A detailed study could
not be undertaken due to time and resources constraints.
 The information on finance as revealed by the respondents was
taken into account without detailed verification.
 An event can be organized as it goes along. This problem is that
the event is rarely repeatable, it is impossible to assess improve
and it is not accountable.

23
Review of
Literature
 REVIEW OF LITERATURE

INTRODUCTION
A literature review is an account of what has been published on a topic by
accredited scholars and researchers. Occasionally you will be asked to write one as a
separate assignment but more often it is part of the introduction to an essay, research
report, or thesis. In writing the literature review, your purpose is to convey to your reader
what knowledge and ideas have been established on a topic, and what their strengths and
weaknesses are. As a piece of writing, the literature review must be defined by a guiding
concept (e.g., your research objective, the problem or issue you are discussing, or your
argumentative thesis).

Dwight W. Catherwood, Richard L. Van Kirk (18 May 1992) 1

According to his study
 How to run your event-of any size –like a business, keeping one eye on the
excitement and the other on the bottom line.
 Powerful cause-related marketing techniques- how to help your organization use
event sponsorship to home its image as a corporate citizen.
 Top trends in sponsorship – where the money going, nontraditional sponsorship
approaches, and sponsorship pools
 Dollar wise marketing, promotion, and advertising tips – how to generate TV
coverage, attract media interest in your promotion use new vehicles like
advertorials and event choose the best day to advertise your event.
 The details that you must never overlook – from local political maneuvering to
crowd control and security - if you want your event to be the one you’ve
envisioned.
 24
2
Dr. Joe Goldblatt (1994) the overall health of the event management field is
excellent. "The Biennial Profile of Event Management." The study, which is conducted
every two years, examines the social, technological and economic changes in the event
management field. The study was prepared in cooperation with the International Special
Events Society.

"Earnings in the upper categories reported a growth rate of over 30% since 1994," said
Goldblatt. The study was mailed to 2,000 members of the International Special Events
Society worldwide. Two hundred and fifty people responded to the survey. Statistically,
the responses represented accurately membership around the world.

The results report a high proportion of women entering the field -- over 70% as compared
to the 1994 report, which listed 55% females and 45% males. The most popular events
produced by professional event managers include (in order): corporate human resource
events, association conventions and social events such as weddings, birthday parties and
other private events.

The authors found that event managers are highly educated with over 79% having a
bachelor's degree and over 15% having obtained a graduate degree. Nearly 90% of the
respondents plan to continue their education through industry and academic programs.

The GW Event Management Program is the largest and most comprehensive program of
its kind in higher education. With over 2,000 annual registrations, a renowned library
archive and major research, like this study, the program attracts students and
professionals who are in search of state-of-the-industry information. Carol F
McKibben(1996) 3 Special Events Management; decision was dictated by vast economic
and technological developments as well as a growing competitiveness in the industry. He
is driven forward by the awareness that those taking up the Special Events Management
gauntlet, now more than ever, need extensive training and knowledge in this multi-
disciplinary field in order to sustain success.
 25

 The stages intrinsic in every successful event, and the linkage between
competencies that form each event’s core. At the heart of these issues is the
assurance of a satisfied guest in each unique environment, existing hand-in-hand
with the proper management of financial matters. Team building and leadership
skills bolster synchronicity of these factors.
 Scheduling and organizational elements of events: how best to select and
implement effective catering, technology, music, entertainment, etc.
 Marketing tools, from the “invitation,” to promotion, to sponsorship opportunities
and implications.
 Legal aspects and risk management, as methods of cost control and ensuring a
safe celebratory environment. A professional code of ethics is also discussed in
this section.

Cindy Delaney (1997) 4 is planning for her future by capitalizing on the

trend of corporate outsourcing of event planning. She says. “A lot of groups would like to
grow their (trade) shows and can’t because there’s no place to have them.” Delaney cites
the Vermont Products Trade Show, presented by the Vermont Chamber of Commerce
and the Vermont Small Business Development Center, as an example. Under Delaney’s
management, the show debuted in Manchester last year with 127 producers of Vermont
products exhibiting to wholesale buyers. She predicts the show will offer 170 exhibitors
when it’s held at the Sheraton in July.

Some organizations are moving toward producing two events: one in

the Burlington area, and another, smaller event in southern Vermont as an alternative to a
single, large, Chittenden County show. Delaney says studies indicate a large convention
center might be feasible in the Queen City if a minor league hockey team or the like
could be attracted to the area as a complement to the slow, winter, trade show season.
Result of her study is:
 • Have a defined purpose for the event. Who are the potential attendees? Why are
you holding the event? Why should people come to the event? When is the best
26

time of year to hold the event? What is the best location?

• Develop a marketing plan. How will you reach your potential attendees? What is
the most cost-effective way to reach them? Does the event need an image? Should
you use more than one marketing medium (direct mail, advertising, PR,
partnerships with other organizations)?
• Have a realistic planning time line.
• Set a realistic budget.
• Get all volunteers and committee members to buy into the marketing efforts, the
time line, the financial risks, and the expectation of them as a planning committee
member.
• Have the foresight to know when you need to hire professional help in planning
all aspects or a portion of the event.

Bob Stewart (February 1999) 5 Associate Professor in Sport

Management, Victoria University, Australia, The basic accounting principles and
practice, and then led into more complex issues of pricing, costing, financial analysis,
budgeting, and financial projections. The third tier will explore future developments in
sport finance and funding, and examine how they will impact on sport management
knowledge and skill requirements. Within this framework.

The first outcome is knowledge based and will include the following:

 a grounded understanding of the commercial evolution of sport from 1950-the

present
 An understanding of the different commercial phases sport goes through to reach
commercial maturity
 An appreciation of the major global sport events and leagues, and their financial
arrangements.
 An insight into the financial strengths and weaknesses of contemporary sport. The
second outcome is skill-based, and by reading the book and completing the cases

27

students will be able to:

 Identify the different legal structures of sport organizations and the financial
implications of each structure
 Explain the main accounting conventions and how they impact on the financial
management of sport organizations
 Identify the foundations of double entry bookkeeping
 Construct a simple set of accounts for a sport organisation
 Use financial ratio analysis to evaluate the financial performance of sport
organizations
 Understand different methods of constructing budgets, and use them to control the
financial operation of a sport organisation
 Set up models for identifying and managing costs
 Identify different methods for setting prices for sport goods and services, and to
apply them to specific settings and events.
 Undertake a financial planning exercise and/or feasibility study for a sport
organization or facility

Undertake a cost-benefit analysis for a sport organization event.

Feasibility studies this chapter will discuss the ways in which
feasibility studies can be used to evaluate the potential viability of major sport
projects. The main steps involved in undertaking a feasibility study will be identified
and explained. Special attention will be given to the market analysis, the concept
plan, location and environmental impact, capital costs and funding sources, and
estimates of recurrent expenditure and income projections.
 Glen Bowdin, Johnny Allen, William O Toole, Ian McDonnell (1999) 6
has widespread experience of event management. The purpose of this document is to
create a framework for the relationship between the Events Unit of Council and the
events that occur in the region. This framework enables:

28

 Clear event support guidelines;

 A simple system to assess events that is closely linked to council objectives;
 A straightforward method for local events to apply for council support;
 A strategy for event development;
 Accountability;
 A system for evaluating local events.

Within the region there are numerous events - community festivals, heritage
events, official council events, concerts, exhibitions, touring events and much more.

William J. O’Toole (2000) 7 Over the last ten years I have been
developing and presenting workshops on Event Project Management, Event Risk
management, Feasibility - Event Metrics.
These are aimed at the event professional as well as governments and
companies with a portfolio of events. What I am doing is bringing the science of business
modeling into the event industry by adapting the well known tools and techniques to the
actual fact my background is in creativity and coming up with new ideas for events. Most
of my past has been creating a new idea for events and pitching this to companies and
governments. Let me illustrate with one idea: The big mining companies for many years
were criticise for not ‘engaging’ with local communities. In Bougainville, PNG, this
ultimately leads to a billion dollar copper mine being closed down. To this day it remains
closed. In my mind every risk has an opportunity.
My thoughts were to go to the mining companies and suggest ideas for them
to connect with the local population. I knew that a company based on engineering would
have little experience in ‘cultural engagement’. My idea was to put on a small festival
that includes local performers and cultural performers from the mining company’s home
country. It worked. I organized a group from Australia including an indigenous performer
and the mining company asked a group of Dayaks dancers and musicians.

29
The event occurred in Central Borneo (Kalimantan) at a gold mine site in the middle of
the rainforest. The logistics involved in organizing the event, including sound
system and helicopters, was taken on by the mining company. We can’t pretend that this
solves the relationship between the company and the local community. However such
events do, at least, enable each party to understand aspects of the other.

8
Harry Beckwith (Nov 18 2001) “Excellent For The Novice Special
Event Manager”,

 Accept the limititations of planning

 Don't value planning for its result; the plan
 Don't plan your future plan your people.
 Do it now. The business obituary pages are filled with planners who waited.
 Beware of focus groups; they focus on today and planning is about tomorrow.
 Don't let the perfect ruin good.
 Don't look to experts for all your answers. There are no answers, only
informed opinions

Arcodia, Charles and Barker, Tanuja (2002 July, Sydney) 9 A Review

of Web-Based Job Advertisements for Australian Event Management Positions. In
Events and Place Making: Building Destinations and Communities through Events,
Conference Proceedings, Australian Centre for Event Management,.

The results reveal several interesting trends including the geographical

concentration of the event management job market, the range of industries that require
event management specialists or event management skills, and a series of required skills
and key attributes of event managers. The results of this study establish a platform from
which to develop a classification of event management skills required by the industry.
30

10
BOSTON (April 4, 2002) AMR Research today released the most
comprehensive study to date on the portal market, based on extensive research of the top
15 vendors in the space and interviews with more than 75 current adopters of the
technology. The AMR Research Enabling Technologies Report entitled, "Portals: The
New Battle for the Enterprise Desktop," provides a detailed evaluation and ranking of the
leading vendors in the market based on functionality, technology, quality of customer
experience, cost of ownership, and financial viability. In addition to the rankings, the
report takes an extra step by evaluating the vendor's viability and providing
recommendations for customers who have either invested in the technology or plan to do
so in the next 12 months.

"Interest in portal technology is on the rise as companies foresee the

benefits and applicability of a unified portal framework to other IT priorities, including
security, relationship management and collaboration," said Jim Murphy, senior analyst,
AMR Research. "While portals allow companies to leverage existing applications and
information sources, there is still a wide gap between the enterprise portal vision and the
pragmatic reality, both in terms of the products' capability and the customers' readiness."

According to AMR Research, 42 percent of all companies across all

industries have a budget explicitly allotted for the development of a portal framework.
However, only 11 percent of these companies view it as one of their top three IT
priorities for the year. In addition, adopters of the technology interviewed for the study
reported that the portal has only been deployed to 21 percent of their constituents,
effectively using only 27 percent of the portal's functional capability
 Burson-Marsteller (September 3rd 2003) 11 As a result of six months of
very close collaboration, B-M and the Latin Recording Academy executed seamless
communications for the 4th Latin GRAMMYs, held in Miami, on September 3rd.
Success is evaluated in terms of positive international publicity, increased domestic

31

viewing audience numbers, higher ratings for CBS (holder of exclusive broadcasting
rights), increased community involvement and acceptance, enhanced and new
relationships with members of the national and international media and overall
client/team satisfaction.

Objective 1: Burson-Marsteller and the Latin Recording Academy effectively executed a

campaign to hold the Latin GRAMMY Awards show in Miami and minimized the protest
threat. B-M garnered massive and positive coverage for the Latin Academy, its
executives, its artists and its educational, cultural and philanthropic programs in
numerous international, U.S. Hispanic and domestic media outlets.

Objective 2: Burson-Marsteller helped grow The 4th Annual Latin GRAMMY Awards –
the show posted double-digit gains. CBS's domestic ratings for the show grew 17%,
viewership levels in Florida equaled the Super Bowl!

Kyungmi Kim, Muzaffer Uysal, and Joseph S. Chen (2004) 12 Festivals

and special events serve as important attractors for tourists and provide unique
experiences for attendees. These events may also provide both tangible and intangible
benefits for communities. Most of the studies dealing with festivals and events have
focused on either understanding attendees' behavior or delineating the economic impacts
of visitation upon communities in which such events are held. Sporadic attention has also
been paid to such issues as sponsorship, volunteerism, the role of community
involvement in staging events, and perceptions of events and festivals. Little, if any,
research has been done to examine how different festival organizers perceive the
motivation for attending festivals and events. Thus, the purpose of this study is to solicit
the organizers' perception of the attendees' motivations and to compare these results with
those of attendees from literature. The study concludes with management and marketing
implications for festival and event organizers.

32

Louise Haynes (2004) 13, The industry has evolved from traditional community events
such as Melbourne's Moomba Festival, Sydney's Waratah Festival and Australia Day
celebrations in regional centres to encompass major national sporting events such as the
Commonwealth and Olympic games.

Spurred on by major events such as the Rugby World Cup, Indy 500, Formula One Grand
Prix, and annual cultural Festivals held in every major city and regional centre, State
Governments and regional Tourism Councils have recognised the value of special events
both as a means of stimulating the economy and creating a promotional focus on their
region.

The industry has now come of age and, with the advent of globalised media coverage,
whole new markets have opened up for sponsors to get their message across to
increasingly larger audiences. There is keen competition between large corporations to
sponsor prestige events but many smaller events struggle to attract even local
sponsorship.

Special events have taken on a much higher profile with the addition of spectacular
pyrotechnic displays and innovative audio-visual production techniques. Since the 1998
Bicentennial Celebrations and the 2000 Sydney Olympic Opening Ceremony, beamed to
billions of viewers across the globe, expectations are increasingly higher for Special
Events Managers to deliver an event that surpasses everything that has preceded it.
 14
Lena Malouf (January 6 - 8, 2005) “PARTIES AND SPECIAL
EVENTS” is the book for special event planners.

 The Party Process tells you how to build, motivate, communicate with and
manage teams. It explains the importance of administration and paperwork for
clients and contractors, and covers delegation and coordination of the events.
 Themes stunningly illustrate events from concept to completion. Exciting ideas,
theatrical sets, and profitable props all displayed with a difference. Creativity

33

jumps off the pages. Award-winning events and nominations are also beautifully
portrayed showing "wow" factors and elements of surprise.

 Tables, Flowers and Fabrics looks at items, which are an integral part of any
event. Tables are dressed to impress. Tabletops show formality, informality,
occasions, all with originality and distinction. Full settings are presented while
floral arrangements and fabric accents bring up-to-the-minute styling in a
kaleidoscope of color.

15
Shmuel Ben-Gad (July 2005) research in the area of event
management

 Promotion of special events

 Meetings--planning
 Congresses and conventions--planning
 Congresses and conventions--management
 Festivals--planning
 Festivals--management
 Corporate sponsorship
 Convention facilities
 Caterers and catering
 Johannesburg, Gauteng, South Africa (September 12 - 14, 2006) 16 one
of your key tasks is to effectively evaluate the overall financial viability of a event
management, so that you ensure a sustainable and long-term supply of product and
services. Identify the key factors that are used to assess the financial position ofa
prospective bidder by learning how to:

 Examine the key ratios that measure the financial viability and overall
performance of your prospective bidder:
1. Profitability ratio

34

2. Activity ratio
3. Liquidity ratio
4. Solvency ratio
5. Gearing ratio
 Assess the essential financial documents to effectively analyze the
future sustainability of the prospective bidding party
 Identify the credit rating of the bidders in order to establish the credit
worthiness and ability to obtain short or long-term finance

Evaluate the infrastructure and inventory holding of the bidder for ensuring reliable
supply of your goods and services.

17
St. Louis, Missouri (July 9-14, 2006) This study will cover the issues
of costs in Event management, and the different ways they can be categorized, managed
and controlled. A distinction will be made between fixed and variable costs, and how this
division can be used to manage the costs of Event management. Controllable costs will
be contrasted with uncontrollable costs, together with a discussion of how costs can be
managed to ensure improved efficiency. The chapter will end with a discussion of
recurrent and capital costs, and how they can be used to better manage day-to-day
operations and event facilities and venues in particular.

18
Elizabeth Fredline and Bill Faulkner (19/2/06) With the increasing
reliance on the staging of events as an ingredient of tourist destination development and
promotion, their impacts on subgroups within the host community have become an issue
for consideration by event management. In an effort to understand the varying ways in
which local residents react to tourism and event impacts, and the reasons for their
reactions, social representation theory has been advanced as a framework for analysis.
This article follows on from a previous one reporting the results of a cluster analysis

35

aimed at identifying a range of social representations held by residents of two Australian

cities in regard to similar motor sport events. Logistic regression analysis is used to
evaluate the success and relative importance of a number of independent variables in
predicting the social representations held by local residents.

From the review of researcher and studies has collected the researcher could
view the dimension for analysis.
 36

SOURCES

1. http://books.google.co.in/books?
vid=ISBN0471549088&id=w570f070yfUC&pg=PA57&lpg=PA38&ots=mMUp4
7BIsP&dq=study+on+event+management&ie=ISO-8859-
1&sig=LSM5mE3lurbzgcu4H9Mdmq3T-jQ
2. http://72.14.203.104/search?
q=cache:Ol4HsJfoKM8J:tourism.temple.edu/nltec/vitae_joe.pdf+Dr.
+Joe+Goldblatt(1994)-%22The+Biennial+Profile+of+Event+Management.
%22&hl=en&gl=in&ct=clnk&cd=1
3. http://www.entertainoz.com.au/article-detailview.cfm?aid=16
4. http://www.vermontguides.com/1999/3-mar/mar3.htm
5. http://www.allenunwin.com/shopping/ProductDetails.aspx?ISBN=1864487518
6. http://specialevents.com/mag/meetings_using_project_management/index.html
7. http://72.14.203.104/search?
q=cache:ncDRzRKlDkQJ:media.wiley.com/product_data/excerpt/52/04712630/0
471263052.pdf+William+J.+O%E2%80%99Toole-
Event+Project+Management&hl=en&gl=in&ct=clnk&cd=1
8. http://www.beckwithpartners.com/services.htm
9. http://eprint.uq.edu.au/archive/00001561
10. http://www.amrresearch.com/Content/View.asp?pmillid=13419
11. http://www.bu.edu/phpbin/news/releases/browse.php?letter=2003
12. http://72.14.203.104/search?
q=cache:j8uNeaAq2ZEJ:vms.vuw.ac.nz/vuw/fca/vms/files/aa51.pdf+Uysal
%22event+management%22&hl=en&gl=in&ct=clnk&cd=10
13. http://www.poseidonbooks.com/introduction_to_events_management.htm
14. http://www.letsgoracing.com/chips/parties.htm
15. http://www.gwu.edu/gelman/guides/business/event.html#art
16. http://www.iqpc.com.br/cgi-bin/templates/document.html?
topic=239&event=10550&document=76542
17. http://en.wikipedia.org/wiki/St._Louis,_Missouri
18. http://www.cognizantcommunication.com/filecabinet/EventManagement/em72ab
s.html 37
 Research
Methodology

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems. It

may be understood as a science of studying how research is done scientifically.
The researcher studies the various steps that are generally adopted in studying his
research problem along with the logic behind them.

COLLECTION OF DATA

Primary data and secondary data required for the study were collected.

Observation
Primary Data Interviews
Discussion with officials
 Various records maintained by the department
Secondary Data Manuals
Books, Magazines, Periodicals, Journals etc

Mainly secondary data is used for the study i.e, the cost occurred for
conducting a event and other published accounts. Primary data collection is also done
through interviews.
The research had been conducted through personal interview method.
Relevant data were collected from event managers, few company personnel and event
coordinators.
38

AREA OF STUDY
The study was based on interview method. The study mainly aimed to find out
the economic viability of the various events, planning of the event and actual execution
of the event, with special reference to V.R. Management Service.

RESEARCH DESIGN
The study conducted by the researcher is a descriptive study about the scope
of events management and financial viability industry in Coimbatore city.
“Descriptive research includes fact finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. The main characteristic of this method is that the researcher has no control over
the variables; he can only report what has happened or what is happening”.
39
 Analysis &
Interpretation

ANALYSIS AND INTERPRETATION

Analysis means a critical examination of the assembled and grouped data

for studying the characteristics of the object under the study and for determining the
patterns of relationship among the variables relating to it.

Interpretation refers to the task of drawing inferences from the collected

facts after an analytical and /or experimental study. In fact, it is a search for broader
meaning of research findings. The task of interpretation has two major aspects.
(i) The effort to establish continuity in research though linking the
results of a given study with those of another, and
(ii) The establishment of some explanatory concepts .
Interpretation is concerned with relationships within the collected data, partially
overlapping analysis.
 Interpretation is essential for the simple reason that the usefulness and the utility
of research findings lie in proper interpretation. It is being considered as a basic
component of research process.
The analysis and interpretation is to find out the viability of various events.
EVENTS:
1. Exhibition
2. Musical Program
3. Brand Launch
4. In Shop Promotion
5. Conference Meeting
6. Road Shows

40

VIABILITY ANALYSIS OF EXHIBITION

Exhibitions are part of the process of product marketing. They have advantages,
which other forms of marketing and promotions cannot offer. They provide the
opportunity for large numbers of buyers and sellers in an industry to come into direct
contact with each other in one place at the same time. Products of interest to the buyers
can be viewed at the time that discussion is taking place, allowing the opportunity to
handle, examine and compare with other products, go away to examine other company's
products and return again for further examination, all within a short space of time. The
expenses and incomes of the exhibition are taken to analyze the viability of the event.

VIABILITY ANALYSIS OF EXHIBITION

TABLE 1.1
 EXPENSES

S.NO COSTS RS IN LAKHS

1. Hall Rent 0.75

2. Fabrication 1.00

3. Pandal 0.0525

4. Outside lights/ Sound 0.045

5. Table/ Stage 0.58

6. Arch / Names 0.04

7. Security 0.06

8. Advertising in Press 1.20

9. Advertising in Outdoor 0.45

10 Printing 0.30
.

41
 11 Postage and Courier 0.04
.

12 Participant Momentous 0.08

.

13 Others 0.10
.

14 Marketing Expenses 0.05

.

15 Government 0.18
.

TOTAL 4.3855

TABLE 1.2
INCOME

S.NO SIZE OF THE STALL AMOUNT NO OF TOTAL

PER STALL STALL AMOUNT
1. 3 BY 3 12000 20 240000
2. 4 BY 4 18000 5 90000
3 3 BY 2 9000 25 222000
4. 2.5 BY 2.5 7500 30 225000
TOTAL 777000
 42

TABLE 1.3
NET PROFIT

Percentage Income Direct Gross Share of Net profit

expenses contribution overheads
100 7.77 4.37 3.38 2.00 1.38
90 6.99 3.93 3.06 2.00 1.06
80 6.22 3.49 2.72 2.00 0.72
70 5.43 3.05 2.38 2.00 0.38
60 4.66 2.62 2.04 2.00 0.4

50 3.885 2.185 1.69 2.00 -0.31

From this table it’s inferred that

• In the Exhibition minimum occupancy should be 60% of the available

stalls to achieve Break Even Point.
• If the occupancy is less than 60% there will be no profits from the Event.
• Aggressive marketing of the stalls is absolutely necessary.
 43

CHART 1

E X H IB IT O N

P r o fit s
P e rc e n t a g e

120

100 1 .3 8
1 .0 6
80 0 .7 2
0 .3 8
60 0 .4
100
Percentage

90
40 80
70
60
50
20

0 -0 . 3 1
1 2 3 4 5 6
-2 0
N e t P ro fi t
 44

VIABILITY ANALYSIS OF MUSICAL PROGRAM

Musical program is listing of the order of events and other

pertinent information for a public presentation. The expenses and incomes of the musical
program are taken to analyze the viability of the event.

VIABILITY ANALYSIS OF MUSICAL PROGRAM

TABLE 2.1

EXPENSES

SNO COSTS RS IN LAKHS

1 Fees payable to musicians 3.00
2 Orgestra and Lighting arrangements 3.00
3 Stage arrangements 2.00
4 Compere & Other Stalls 0.75
5 Security arrangements 1.00
6 Hall / Open space lease 0.50
7 Travel, Hotel & other expenses 1.00
8 Other expenses and contingencies 2.00
TOTAL 13.25

Say 14.00
 To make the Event a success the ticket sales and sponsorship should yield Rs
30.00 Lakhs. The probable income breakup could be as follows:

45

TABLE 2.2

INCOME

S.NO COSTS RS IN LAKHS

1. Sponsorships by a good corporate/ No of corporate 20.00
2. Advertisements / Hoardings 3.00
3. Ticket Sales should be 7.00
TOTAL 30.00

TABLE 2.3

NET PROFIT

Percentage Income Direct Gross Share of Net profit

expenses contribution overheads
100 30.00 13.25 16.75 10.00 6.75
90 27.00 11.925 15.075 10.00 5.075
80 24.00 10.06 13.94 10.00 3.94
70 21.00 9.275 11.725 10.00 1.05
60 18.00 7.95 10.05 10.00 0.05

50 15.00 6.625 8.375 10.00 -1.625

 46

From this table it’s inferred that

• In the Musical program minimum occupancy should be 60% of the available

income to achieve Break Even Point and if the occupancy percent goes below
60%the event will incur a loss.
• Aggressive marketing of the income from various sources like ticket sales and
sponsorship is absolutely necessary.
• Musical program will deliver a powerful message to the world through the
"global language" of music. It will serve as a touchstone for the ideals of
exchange between various people and cultures, and will also reemphasize
humanity's ties to nature and the Earth.
 47

CHART 2

M U S IC A L P R O G R A M

P r o fit s
P e rc e n t a g e

120

6 .7 5
100
5 .0 7 5
80 3 .9 4
1 .0 5
60 0 .0 5
100
Percentage

90
40 80
70
60
50
20

0 -1 . 6 2 5
1 2 3 4 5 6
-2 0
N e t P ro fi t
 48

VIABILITY ANALYSIS OF IN SHOP PROMOTION

A term referring to methods of bringing a product to public

attention, including advertising, personal selling, sales promotion, and publicity. In shop
promotions see at least a 60% increase in sales. The expenses and incomes of the in
shop promotion are taken to analyze the viability of the event.

VIABILITY ANALYSIS OF IN SHOP PROMOTION

TABLE 3

EXPENSES

SNO COSTS Rs in Lakhs

1 Promotion Arrangements 1.00
2 Promotion Stalls (10 days) 0.75
3 Gift items / Stationary 0.50
4 Conveyance travel 0.30
5 Sundry’s & Contingencies 0.50
TOTAL 3.05

From this table it’s inferred that

 The benefits from an Inshop promotion may not be a direct income but indirect
benefits like increase in the sales over a period of time or creation of brand loyalties.
Some times the promotion may be part of the sales promotion and advertisement budget.

49

CHART 3

IN S H O P P R O M O T IO N

R s . in . la k h s

1 .2

0 .8
Rs.in.Lakhs

0 .6
1
0 .4 0 .7 5
0.5 0 .5
0 .2
0 .3

0
P r o m o t i o n P ro m o t i o n S t a llGs i ft it e m s / C o n ve y a n c e t r aSveu ln d r y ’s &
A rra n g e m e n t s S t a t io n a r y C o n t in g e n c ie s

C o sts
 50

VIABILITY ANALYSIS OF BRAND LAUNCHES

Branding is vitally important to any organization: more than

a new logo, more than a tagline, more than window dressing it is an incorporation of
everything we know, feel, and aspire to be as an organization. A brand is comprehensive,
a focus for everyone, and a consistent way of expressing ourselves in both design and
words, in everything that we say or do. The expenses and incomes of the Brand launch
are taken to analyze the viability of the event.

VIABILITY ANALYSIS OF BRAND LAUNCHES

TABLE 4
EXPENSES

S.NO COSTS RS IN LAKHS

1. Rent for the hall 0.50
2. Lighting and Sound charges 2.00
3. Decoration and Stage arrangements 1.50
4. Remuneration to Hostereses and Other staff 0.25
5. Anchor person expenses 1.00
6. Lunch and Dinner arrangements 0.50
7. Travel and Conveyance 0.50
8. Local publicity 1.00
9. Other expenses 0.75
TOTAL 8.00

From this table it’s inferred that

The benefits from a Brand launch may not be a direct income. But Indirectly
from Brand awareness among the consumers the event generates income.
 Rs.in.Lakhs

0
1

0 .2
0 .4
0 .6
0 .8
1 .2
Hall

0.5
Lighting &

1
Sound

Hire charges
of LCD

0.5
Projectors,
Laptops etc

Lunch /
Dinner

0.5
arrangements

C o sts
Gifts and
Stationery

0.25
Hostesses

0.1
B R AN D L AU N C H E S
51

Publicity

Other
expenses
CHART 4

0 .1 5
R s .in .la k h s
 52

VIABILITY ANALYSIS OF CONFERENCE MEETINGS

Conference meeting is for consultation or discussion, or for
exchange of views. A meeting of committees to settle differences between two legislative
bodies can also conduct conference meeting. The expenses and incomes of the
Conference meetings are taken to analyze the viability of the event.

VIABILITY ANALYSIS OF CONFERENCE MEETINGS

TABLE 5

EXPENSES

S.NO COSTS RS.LAKHS

1. Hall 0.50
2. Lighting & Sound 1.00
3. Hire charges of LCD Projectors, Laptops etc 0.50
4. Lunch / Dinner arrangements 0.50
5. Gifts and Stationery 0.25
6. Hostesses 0.10
7. Publicity 1.00
8. Other expenses 0.15
TOTAL 4.00

From this table it’s inferred that

• The meeting helps the end users aware of the product.
• Brand popularity
• Gives prestigious issue for the company among the competitors.

53
 Rs.in.Lakhs

0
1

0. 2
0. 4
0. 6
0. 8
1. 2
Hall

Lighting &
Sound

Hire charges
of LCD
Projectors,
Laptops etc

Lunch /
Dinner
arrangements

C o sts
Gifts and
Stationery

Hostesses

54
C O N F E R E N C E M E E T IN G

Publicity

Other
expenses
CHART 5

R s .in . la k h s
 VIABILITY ANALYSIS OF ROAD SHOWS

Road Show is a presentation to potential investors, brokers,

and dealers by the company's management and underwriters in order to facilitate a
securities offering. The expenses and incomes of the Road shows are taken to analyze the
viability of the event.

VIABILITY ANALYSIS OF ROAD SHOWS (for 1 week)

TABLE 6

EXPENSES

S.NO COSTS
RS IN
LAKH
S
1. Point of Publicity Materials 1.00
2. Gifts 1.00
3. Manpower 0.50
4. Sundry expenses 0.50
TOTAL 3.00

From this table it’s inferred that

• People tend to gain wide knowledge about the product
• Creates awareness about the product
• Increase in sales due to affordable price

55
 CHART 6

R O AD S H O W S

R s .in.L ak hs

1 .2

0 .8
Rs.in.Lakhs

0 .6
1 1
0 .4

0 .5 0. 5
0 .2

0
P O P M at eria ls G ifts M a n p ow er S u nd ry e x pen s es
C o sts

56
Summary
Findings
 FINDINGS

From the view point of analysis made by the researcher, the

following findings were made in order carry out the proceeding effectively. These
major findings contributed to the success of the research work to the
V.R.Management Service as well as the researcher.

 Tremendous scope is there for Event Management industry in Coimbatore but

presently it is not being realized by the public. It is still a native concept and
unorganizedindustry.
 Lot of effort is being put by the Event managers to make people aware of this
concept.
 Big corporate companies come to Coimbatore to conduct event with a low budget,
when compared to metro cities like Chennai.
 Industries relating to textile and garments, engineering and constructions,
automobiles etc prefer Coimbatore.
 During the initial stages events were not successful because of the following
reasons:
1. lack of proper infrastructure
2. conservative mind set of local people
3. lack of enough fund
4. lack of professional to organize the events

 The scenario is changing and there are no more non professionals in the scene as
there is a stiff competition among the event management companies. It is a case
of survival of the fittest. The second issue is the conservative thinking of the
coimbatore people and there is also a considerable change in this aspect.
 The problem that the event organizers face at present is the lack of proper
infrastructure. Coimbatore does not have any facility to hold a capacity of 3000
people.

57
 In Coimbatore shows which have tickets for entry were found to be a failure .The
people are not willing to pay for their entertainment.
 The event manager were not fully satisfied with the existing resources in the city.
They hire electrical equipments from Chennai as it is much cheaper.
 The company personnel surveyed were of the opinion that only a few companies
in Coimbatore prefer events to promote their product and services while others
go advertisements through news papers, TV and Radio.
 It has been found that the event managers choose a particular venue for
conducting an event depending on the ambience factor of the place.
 Event manager plan and design the entire event by themselves for their client
according to their requirements.
 Supervision is done by the event managers through personal interactions with the
coordinators and the other team members. The effectiveness of the event is judged
from the customer satisfaction and their response.
 The climatic condition of Coimbatore is favorable for organizing events. It is not
hot and it is less polluted when compared to the metro cities like Chennai.
 It has been found that in the exhibition, minimum occupancy should be 60% of
the available stalls to achieve Break even point.
 Musical program will deliver a powerful message to the world through the "global
language" of music. It will serve as a touchstone for the ideals of exchange
between various people and cultures, and will also reemphasize humanity's ties to
nature and the Earth.
 The benefit from the brand launch,conference meeting and road shows will get
indirect income like

1. Awareness of brand among the consumer

2.Brand popularity

3.People tend to gain wide knowledge about the product]

4.Increase in sales due to affordable price

58
Suggestions
 SUGGESTIONS

 There is tremendous scope for the industry but the opportunities must be fully
utilized properly to bring out successful events that will encourage the event
managers to conduct more events and attract the public to participate in such
events.
 The civil authorities in Coimbatore must encourage social events and must grant
permissions to organize social awareness program held by various association and
clubs.
 Proper infrastructure to hold a large crowd must be build with in the city limits
itself.
 More publicity must be given to an event that is going to happen. Advertisement
must be given in the local and national newspapers, TV and Radio.
 The event manager firm must be well equipped with electrical items, sound
systems, furniture etc so that they would be in a position to organize an event
effectively event if it is at a short notice.
 The seasonal factor can be avoided and events can be conducted throughout the
year.
 The event manager should organize grand event which would leave a mark in
minds of the public and make them participate in such events in future.
 The event manager should organize the event in such a way, the occupancy
should not be less than 60%, then there will be profit.
 The income from various sources like ticket sales and sponsorship is absolutely
necessary for conducting the musical program in a successful way.
 59

Conclusion
 CONCLUSION

This study is based on “Financial Viability of Event Management” in

V.R.Management Service.
Through this study the researcher gained the knowledge, about the process of the
Events Management conducted by the company in coimbatore. The research is on
the events like
 Exhibition
 Musical program
 Inshop promotion
 Brand launch
 Conference meeting
 Road shows

The attempt has been made to analyse the expenses, direct and indirect incomes of
various events conducted by the company. From this study the researcher understood
that the company can run successfully and it has bright future.
 60

Bibliography
 BIBLIOGRAPHY

BOOKS

• Asish K.Bhattacharyya, ”FINANCIAL ACCOUNTING”, Prentice-Hall

of India Private Limited, New Delhi, 2002, PP 15-19

• Kothari C.R,”RESEARCH METHODOLOGY”, Wishwa Prakashan,

New Delhi, 2nd EDN-1990. PP 35-37

• Sharma R.K, Shashi K.Gupta,” MANAGEMENT ACCOUNTING”,

Principles and Practices, Kalyani Publishers, New Delhi, 5th EDN 1987.

P 25.

WEBSITES

• http://www.icad.org/websiteV2.0/Conferences/ICAD2000/PDFs/VickersAlty.pdf

• http://www.indialife.com/Events/artculture.htm

• http://www.opus-solutions.com/

• http://www-personal.usyd.edu.au/~wotoole/epmspage1.html

• http://books.google.co.in/books?

vid=ISBN0471549088&id=w570f070yfUC&pg=PA3&lpg=PA3&ots=mMUr2aB

GmO&dq=event+management&sig=y_dgIWyhQXn9K0nGJ3suTWuFcR0

• http://www.henrystewart.com/hscindex.html#fin