Event Planning Business Plan

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Market Analysis Summary

CRP will serve the corporate customer in the event planning market.  CRP will be specializing in two important niches.  The first is leadership development and teaming skills development.  With the recent trend in corporate downsizing, corporations are ditching their in-house solutions in favor of outsourcing.  Even though we are in the midst of an economic downturn, investments in human capital are generally not reduced.  Corporations still have the need for leadership development and teaming skills development.  These are investments that cost a bit up front but pay nice returns in the long run.  These are the services that CRP will specialize in.

Additionally, CRP will offer event planning for product launches.  Product launches are an integral stage in the release of a new product, communicating to the public about the new "thing" the company has just released.  Our customers will be companies seeking to raise awareness about their new product release.  CRP will provide a complete service of planning and hosting these product release events.

4.1 Market Segmentation

CRP is providing services to corporate customers only.  We will not be going after the "social market" which is an alternative market within the event planning niche. 

The corporate customer is a company that contracts with CRP to plan and typically host an event for the company.  Corporations will be turning to CRP to plan the events because:

  1. It is cost efficient for a third party to plan the event.  This is the case because the third party only does event planning so they can plan and host the event more efficiently.
  2. The company does not have additional people that can be taken away from their daily job and invest time in this infrequent event.

Our event planning services for corporate retreats will typically be utilized by larger corporations.  A larger company can be generally defined as one with more than 40 employees.  Smaller companies sometimes will utilize this service of ours, however, it is the larger corporations that typically have the budget for this activity.

For our product launch event planning, we will be servicing companies of all different sizes.  Typically the companies that use this service will be product based companies, but we will also offer this service to service-based companies who desire to announce a new service that they are offering.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Large companies 9% 1,158 1,262 1,376 1,500 1,635 9.01%
Small companies 8% 1,878 2,028 2,190 2,365 2,554 7.99%
Other 0% 0 0 0 0 0 0.00%
Total 8.38% 3,036 3,290 3,566 3,865 4,189 8.38%

4.2 Service Business Analysis

Competition in event planning is fierce. Look in the Yellow Pages and you will see rows and rows of listings. Lucky for CRP, the majority of the event planning is for social events. There are very few companies that specialize in corporate event planning. There are no companies that specialize in specific types of corporate events. Additionally, with the recent trend of corporate downsizing, the companies that had an in-house solution are abandoning these positions in favor of outsourcing to reduce costs.

4.2.1 Competition and Buying Patterns

Currently there are three other companies that offer event planning specifically to corporations. They however, tend to do events that are more general in scope such as parties to reward customers or employees, or events to change the company image. There is no company that specializes in event planning of corporate training and product release events. There are companies that offer corporate training, but these companies provide the actual training and do not do any of the actual event planning/ logistics of the entire event.

There are companies that provide product-release services, but they do not specialize in it. Because event planning is a tight market, CRP will benefit from their specialization in this area.

In the past, the buying patterns for the larger corporations was in the past to have an in-house solution. This pattern is is disappearing in favor of outsourcing as there is the constant drive for gains in efficiency, something outsourcing can offer.

4.3 Target Market Segment Strategy

CRP is targeting large companies for our corporate retreat event planning.  The large corporations typically have the budget and the foresight to recognize the value in corporate retreats.  In addition, it is the larger corporations that typically use the corporate retreat as a training session for their employees.  The training is typically in leadership development or teaming skills.  While they do have these retreats at different intervals through the year,  it is more cost effective for them to hire a service such as CRP to plan the events when needed instead of paying the carrying costs of having a full-time, trained employee ready to do the planning when it is needed.

CRP's product release planning services will be targeted at all different size companies.  Companies of all sizes have product release and it is unusual for them to have product release many times a year requiring someone to be a a full-time planner on staff.  Therefore, it makes sense for them to hire an outside service to plan the event using their expertise in event planning to drive down the costs of production and hosting.