Innovation Enterprise and Winning the Bid

Executive Summary The business name for the company is ‘Event Pace Group’. Event Pace Group is an entrepreneurship company that is involved in provision of diverse products and services for the event industry.Advertising We will write a custom essay sample on Innovation Enterprise and Winning the Bid – Business plan specifically for you for only $16.05 $11/page Learn More The company is situated in United States of America, and it innovates products and services in the event management industry that include festivals products and services, events and conferences services, product launch services, press conference services, corporate meetings and conferences, marketing services such as road shows, and grand opening events. Other services that the company specializes in include concerts, fashion shows, commercial events, and film premieres. The success of the company has largely been motivated by the growth and development of the event industry in modern world. The global trends show that, the events industry, just like tourism industry, is experiencing high demand and its potential in the future is promising. As a result, the company has built its success based on this realization, together with the desire to provide innovative products and services for the events industry. Products and Services As seen earlier, Event Pace Group Company has varied products and services, which are sold to multiple event organizers. But in this case, Event Pace Group Company has developed a software product known as ‘i-EventSoft planner’, as a product, and intends to sell the product to interested event organizers and companies. The event industry can use this software product to increase its operational efficiency and at same time increase its revenues and profit levels. The motivation of the company in developing this product is guided by the increasing digitalization of the society, whereby information technology is becoming important in society. The society is moving towards technology and people are finding it convenient when an efficient technology is used. Some areas the technology can be useful in the event industry is in the client product and service ordering, visitor and client registration, payments, customer management services, and many more. At the same time, an efficient technology is likely to eliminate the workload and inefficiencies brought about by paperwork and manual process of registration and ordering.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In similar manner, an efficient technology is likely to centralize operations of an organization thus enabling the organization make its work faster, efficient and product with reduced errors or inconveniences. In modern world, competition and customer demands and needs force companies to be constantly innovative with regard to identif ying the best strategies to address numerous consumer needs in the most satisfying way (Bridge, O’Neil and Cromie, 2003). As a result, the new software product is as a result of addressing the needs in the event industry which cannot be ignored. Globalization is responsible for the many changes taking place in the world. Clients in the event industry are no longer concentrated in one particular geographical area but are likely to be spread in different parts of the world. As a result, addressing the needs of both local and international clients, event companies have to utilize the most efficient technology. Ticketing in event industry has become one area technology can play great role. It is both important to event promoters and consumers in the industry (Whittingdale 2008). With an efficient technology to support ticketing in the industry, both event promoters can benefit from increased tickets sales, increased market share and also can ensure efficient accounting in the ind ustry. It is recognized that, with appropriate technology to change the way services are provided in the event industry, purchasing behavior of consumers is likely to change as consumers find the whole process of seeking information and making final decision of purchase more convenient, faster and effective. Therefore, the aim of Event Pace Group is to introduce the software product to the market and enable players in the industry promote efficiency and increase revenue. History and Position Company Mission The mission of the Event Pace Group Company is to initiate products and services that drive market and bring satisfaction to the clients based on quality and innovation. In this endeavor, the company’s vision is to be the leader in event industry in terms of developing quality products and services that meet needs of diverse client base. Management Team Event Pace Group Company was established as an entrepreneurship company, of two college friends; Jack and Peter. Given th e size of the company, which at the moment is relatively small, management functions are carried out by the two partners. Apart from the two partners, the company has hired part-time services of two IT experts, two marketers, a receptionist, and one financial officer, who also double as account for the company.Advertising We will write a custom essay sample on Innovation Enterprise and Winning the Bid – Business plan specifically for you for only $16.05 $11/page Learn More Both James and Peter have undergraduate degree in Hospitality Management, and professional training in public relations, marketing and event management. Furthermore, those hired in the organization have professional qualification with experience of over two years. Nevertheless, the company intends to increase its workforce as it continues to grow and more growth opportunities are identified. Products and Services The company has specialized in providing variety products and ser vices such as: festival products and services, events and conferences, product launch, press conference, corporate meetings and conferences, road shows and grand opening events. Also, the company facilitates concerts, fashion shows, commercial events, and film premieres. Apart from these services, the company has come up with a new software product known as ‘i-EventSoft planner’ and intends to market the product to event organizers. The company sells its products and services to a number of clients in major cities of USA involved in event management. Business Structure Event Pace Group Company started as an informal partnership arrangement between two friends before it was officially registered as a partnership entity three years ago. As a result, the business entity is recognized as a partnership form of business in USA. Since its establishment, the business has continued to grow in terms of innovations and sales, from the initial two services it provided to its client s to the current position where it provides numerous products and services. The business structure of the company does not intend to change from its partnership nature, although in the future, the company may incorporate more partners as far as growth and development of the firm may necessitate. Market Research Economic and Social Factors USA is a diversity society in that, the country has diverse population which is likely to embrace the idea of tourism and related leisure activities (Down, 2010). Tourism and related leisure activities in the country and around the world has been growing. Moreover, event planning and management has been growing in an attempt to response to growth in tourism and related events activities. With increased disposable incomes and increased consumption of leisure products, hospitality industry has been growing in the country attracting both local and internal clients. Sometimes companies have found themselves overwhelmed by the number of visitors and as a result, planning has not been easy.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Good economic position of many clients, coupled with overall improving economic conditions in the country, have ignited a unique desire for increased tourism and leisure activities, a fact that sound good to the event industry. Both old people with enough retirement benefits would want to spend on tourism consumption and leisure, while young people have more money to spend on vacations. These entire promising economic situations require event managers and planners to have adequate preparation of serving diverse clients more appropriate and efficient. This is what motivates the use of technology in the planning of events in the industry. At the same time, many people especially clients in the hospitality industry are finding it appropriate to order and search for information through internet. This shows that more and more clients are likely to be uncomfortable with traditional methods of making orders, having the ticket and paying for the money since many of them do not want to trave l frequently to acquire search things. What many consumers are looking for is a situation where they are able to do everything at the click of their computers before making final step of visiting a particular hotel, restaurant or tourist destination when all formalities have been completed. Therefore, given the economic and social situation of the current consumers, the designed software is likely results into numerous advantages. Therefore, the motivation to design ‘i-EventSoft planner’ software originates from two concerns: first, the majority of young people and even middle aged people in the country have embraced tourism and related events in large measure and as a result, event industry is experiencing growth that require the industry to respond to the numerous issues it face more effectively. Second, there is increase adoption of technological software in diverse industries and primary aim for such has to do with increased use of technology and digitalization of t he society. Therefore, event industry cannot be exceptional in this revolution. Competitive Environment Service sector and especially event management industry is growing (Shone and Parry, 2004). There is increased provision of services and products by diverse firms. Trends in the past have shown that, majority of players in the event industry tend to concentrate a lot on providing services and products that lack technology orientation. But given the way modern society is moving, technology is becoming fulcrum in the functions and activities of modern firms. Technology is perceived to have numerous benefits that players cannot ignore (Allen, 2002). Moreover, efficiency and maximum satisfaction in the industry seem to lie in the use of appropriate technology. It is within this understanding that, technology has become an area for competitive advantage and companies or organizations with the most efficient technology are likely to have an edge over their competitors. The company has c onducted analysis of the competitive environment and found out that only two companies provide software similar to this one, but their software has less features/packages as the ones intended for ‘i-EventSoft planner’. Therefore, our company aims to enter this unexploited market through its unique product it aims to sell to event organizers. In order to create a strong competitive position in the market, as compared to the already existing players, Event Pace Group Company aims to give quality and innovation priority, without forgetting good customer service management. Long-term Opportunities Tourism and consumption of leisure activities remain dominant areas experiencing growth in the modern world. As this happens, there is increasing need for efficiency and proper function and execution of services. The traditional systems of customer services in the industry which in most cases are manual have become inefficient and tend to bring about inconveniences to many clients . Furthermore, event organizers and hospitality owners tend to receive less revenue since the accounting systems are not efficient enough. Lastly, information sharing in the industry remains poorly organized and this is likely to affect provision of services. As a result, there is need for a technological device that can guarantee efficiency, appropriateness and satisfaction (Haran and Kumar, 2006). Market Description USA has a high population and more people such as tourists and shoppers continue to come to the country. At the same time, reports in the media have pointed to increasing employment for the population labor force, a situation that sees income for many people increase. The increase in income is likely to see many people spend extra income on tourism and leisure activities. At the same time, the high population is likely to increase its consumption rate of tourism and events related products and services. Target Customers USA boasts a population that is highly educated, has enough income to spend on luxuries, and her people are informed in many aspects. Consumerism in the country is on the rise, especially in tourism and service industry. People tend to buy more services available in diverse sectors of the economy. As a result, tourism and event industry is likely to grow as more people spend on vacations, concerts, and tourist destinations. But who are likely customers of the company with regard to the new product? The company targets event organizers and companies. These are companies with capacity to have many clients from different parts of the world. There services are likely to be multiple and also past experiences have indicated the companies experience problems in key areas such as; ticketing, ordering, and payment. Market Opportunities Market for ‘i-EventSoft planner’ is likely to be boosted by the high number of current customers, both in events and hospitality industry. Tourism industry is increasing together with events pla nning and organizing. Consumers are spending more for concerts, vacations, tourist destinations, and all other leisure activities Therefore, the market opportunity for this software product likely to come from event organizers in many states and cities of USA. On a broader view, the company intends to use technology in marketing the service, and this may attract event organizer clients from outside the country and this will be the reason to establish market opportunities in other countries. Furthermore, more studies will be done to establish the potential of learning institutions such as universities, colleges, and high schools on their ability to provide more new market opportunities for the software. Competitive Analysis Only two companies have been identified to provide this kind of service. However, as it was seen earlier, the two companies have concentrated software that has fewer features. Moreover, the companies are yet to expand to other markets in the country the way Event Pace Group Company intends to do. The identified strengths of these two companies include, the fact that they are much older than Event Pace Group Company, hence have succeeded in building a strong brand name in the market. Moreover, the companies seem to have more staff, especially IT designers, who have helped them to offer some captivating products and services. On the other hand, major weakness of Event Pace Group Company lie in its inadequate resources to venture in more research and development for products and services. However, the strength of the company as compared to its competitors appears to be in identifying innovative ideas and turning them into unique and captivating products and services for event industry. Business Strategy Advertising and Promotion Advertisement and promotion are crucial for success of any product or service in the market, especially for the new products and services (Hatten, 2011). Given that this is a new product, which may require recognition i n the market, the company intends to use a number of advertisement and promotional strategies. The major strategies to be used include public relations, establishing and operating shop front, using internet and social media, press advertising, and association with known companies. Public relations will involve the company giving continuous captivating and exciting information about the new product and evaluate response of clients. Shop front will involve the company establishing a shop front. Internet and social media are rising as critical avenues to carry a successful advertisement campaign. Therefore, the company will create a website where it will advertise the product. Through this, the company hopes there will be faster diffusion of the innovation, hence increasing the chances for its acceptance. Pricing It is understood that pricing strategies adopted by any company are informed by aspects such as objectives of the company, characteristics of the customer base for the company , intensity of competition in the market place, and characteristics of the product (Smith and Smith, 2011). As a result, price is said to reflect value for the customer. Moreover, in events industry, apart from having consideration for cost-based pricing, there is need for greater consideration of value-based pricing that enhances sales and maximizes returns on investment (Rogers, 2001). In order for the service to establish a strong customer base that the company intends to build and maintain, two pricing strategies will be adopted. The first strategy is the relationship pricing, where the intention is to establish and encourage long-term relationships with event companies, which can be used for future deals (Hoffman and Bateson, 2010). The second pricing strategy is the penetration pricing strategy, whereby, the company will price the product with intention of penetrating the market more easily and at faster pace (Hoffman and Bateson, 2010). Forecasting Sales Forecast ($) Year One Year Two Year Three Revenues from the i-EventSoft planner 425 000 600 000 800 000 Revenues of other services that utilize i-EventSoft planner 220 000 340 000 500 000 TOTAL 645 000 940 000 1 300 000 Cash Flow Projections Sales Less cost of sales Gross profit Less expenses Net income before tax Provision for taxes Net income after taxes Year One 2, 400, 000 2,000,000 400,000 280,000 120,000 40,000 80,000 Year Two 3,000,000 2,300,000 700,000 320,000 380,000 70,000 230,000 Year Three 3,700,000 2,500,000 1,200,000 500,000 700,000 200,000 500,000 References List Allen, J., 2002. The Business of Event Planning: Behind-the-scenes Secrets of Successful Special Events. MA: John Wiley and Sons. Bridge, S., O’Neill, K., Cromie, S., 2003. Understanding Enterprise, Entrepreneurship, and Small Business. NY: Palgrave Macmillan. Down, S., 2010. Enterprise, Entrepreneurship and Small Business. NY: SAGE Publications Ltd. Haran, A. K., Kumar, A., 2006. Corporate Entrepreneu rship: Strategic Imperative for Growth. New Delhi, India: ICFAI Books. Hatten, T. S., 2011. Small Business Management: Entrepreneurship and Beyond. OH: Cengage Learning. Hoffman, K. D., Bateson, J. E., 2010. Services Marketing: Concepts, Strategies, Cases. OH: Cengage Learning. Rogers, S. C., 2001. Marketing strategies, Tactics, and Techniques: A Handbook for Practitioners. CT: Greenwood Publishing Group. Shone, A., Parry, B., 2004. Successful Event Management: A Practical Handbook. OH: Cengage Learning EMEA. Smith, T. J., Smith, T., 2011. Pricing Strategy: Setting Price Levels, Managing Price Discounts, Establishing Price Structures. OH: Cengage Learning. Whittingdale, J., 2008. Ticket Touting: Second Report of Session 2007-08, Report, Together with Formal Minutes, Oral and Written Evidence. UK: Stationery Office. 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