Week 2 Project

Use the Event Budget Worksheet provided to complete your assignment. Review the Event Scenario and then follow the instructions on the worksheet to complete each question based
on the following topics:

1. Venue Selection

       a. Venue selection criteria

       b. Choosing the venue

2. The Target Audience

3. Break-Even Point/Pricing Strategy

4. Prioritizing Expenses

5. Revenue Streams

6. Post-Event Evaluation

7. Reflection/Summary

Submit

  1. Save your Event Budget Worksheet 
  2. Name your document as follows: LASTNAME_FIRSTNAME_EventWorksheet

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

Student Name:

After you have read the instructions for the assignment, please complete this worksheet.

Event Scenario Event: Fashion Show — Acme Fashions is releasing a new line of spring fashions. They want to have a fashion show. They’ve hired you to plan and manage the event.

Target Audience: The target audience will be women between the ages of 21 and 49 from households with average income over $100,000. They like upscale dining and events. They follow current trends in music and fashion. Most live on the outskirts of the city in a suburban area. They generally avoid events downtown.

Vision: This is a fashion show to highlight the launch of a new line of spring fashions from Acme Fashions. Attendees will have a chance to be the first to see the new clothing items and meet the designers.

Goals To get exposure for the new line of spring wear from Acme Fashions To expand the current customer base for Acme Fashions To generate positive publicity for the Acme Fashions brand

Objectives To aim for 500 paid attendees, but have at least 450 To spend no more than $15,000 net (revenue minus expenses) on the event – that means making a profit is NOT among the goals and objectives. To have at least 35 members of the fashion media at the event

To have at least 5 reviews written by well-known fashion writers

Initial Expenses: Your current total expenses are $53,000. This includes money set aside for advertising, media kits and invitations, event insurance, payment for fashion models, food and beverage costs, a band to play during the after party, and the PA and lighting equipment necessary to make the event look and sound great. But you haven’t chosen your venue yet. That will add cost when you get to that point.

Plan This will be an upscale fashion show at a nice venue that makes sense in terms of cost, available facilities, location, ease of access, etc. You’re anticipating using twelve models.That’s probably more than enough to suit your needs. You will send media kits to 100 writers and media personalities, along with a personal invitation in the hope that at least 35 of them will attend the event, and at least five will write a favorable review.

After the runway show, there will be a cocktail party where paid attendees can socialize, and have a chance to meet the designers and other senior members of Acme Fashions. A band will provide entertainment. You would like to have a fabulous ice fountain if it fits into your budget. It costs $1,500.

Tickets: Your research shows that you can expect about 500 paid attendees, and that a ticket price of $100 per person is reasonable. Merchandise: You plan to sell hats and wine glasses at the event. They will both be priced at $22, but, after subtracting your cost on each one, along with the sales tax, you have a net income of $9.18 on each item sold. Sponsors: You have one Platinum sponsor (valued at $4,500 each), two Gold sponsors (valued at $3,000 each), and three Silver sponsors (valued at $1,500 each).

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

1. Venue Selection A. Venue Selection Criteria — List at least eight factors you should consider when choosing a venue for an event.

1.

2.

3.

4.

5.

6.

7.

8.

B. Choosing the Venue — Your research tells you to expect about 500 people at this event, plus your media invitees (the invited media do not pay for admission). You have already contracted with a production company to provide the sound and lighting you will need. You have a caterer lined up to provide food and beverages. You have your entertainment. All those things have already been factored into your expenses. Now, you have three venues to choose from. You have personally inspected each site. Because they are all self-sustained, full-time operating venues, no additional permitting will be required. Each one is wheelchair accessible, and can otherwise meet the requirements of the Americans with Disabilities Act (ADA). After considering all factors, you have noted the following: Venue Option 1 — Capacity 1,500. Rental = $15,000. Has the risers/staging necessary to construct runway for models. Includes full security and wifi access. Upscale area. Centrally located. Easy access. Adequate parking with valet parking available. Venue Option 2 — Capacity 750. Rental = $10,000. Has the risers/staging necessary to construct runway for models. Includes full security and wifi access. Upscale area. Centrally located. Easy access. Adequate parking with valet parking available. Venue Option 3 — Capacity 600. Rental = $5,500. Does not have the risers/staging necessary to construct runway for models. No security or wifi included. You will have to pay for those separately. Downtown area. Centrally located. Easy access. Ample parking. Based on the information provided, and what you know about this event, what are the pros and cons of each venue option? Which venue option do you think is the best choice? Why? Explain how it is appropriate to your event vision and target audience. Be specific and detailed.

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

Choosing the Venue (answer here):

Note the cost of the venue you choose. You will need it in Question 3.

2. The Target Audience Your target audience can certainly affect your marketing plan. In this case, in addition to money set aside for print and web-based advertising, you have budgeted some money for radio advertising. Based on the target audience, and the listener profile of each of these radio stations, select one radio station for your advertising. Explain the reason for your choice. KHAT Classic Country (Listener profile: Adults 45–54) KTOK News/Talk (Listener profile: Men 45–54) KNAP Adult Contemporary (Listener profile: Adults 35–54) KKID Contemporary Hit Radio (Listener profile: Women 18–34) KEAR Classic Rock (Listener profile: Men 35–54)

What radio station did you choose?

Why?

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

3. Break-Even Point/Pricing Strategy You know from researching other similar events that $100 per person is a reasonable ticket price for this event. This helps ensure that the number of attendees will be at or near your goal. But you need to be sure that price is feasible. You calculate your break-even point, based on the ticket price, by dividing your anticipated Total Expected Expenses by the number of anticipated paid participants. That gives you the ticket price that would be needed for you to break even on the event.

Total Expected Expenses ÷ Number of Expected Paid Participants = Break-Even Ticket Price Your initial expenses were $53,000. But now you’ve chosen a Venue Option in Step 1. Be sure to add the venue expense to the initial expense, to get your Total Expected Expenses. Then calculate your break-even ticket price. Enter the break-even ticket price in Box A below.

Box A

In theory, the number you get in Box A would be your ticket price if you want to break even on this event. Is that number higher or lower than your planned $100 ticket price? Is that a reasonable pricing strategy if your objectives make a net loss acceptable? If so, why? If not, why not? What would be a reasonable pricing strategy if you wanted to make a profit?

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

4. Prioritizing Expenses It’s a week before the event. You’ve had 455 people purchase tickets in advance, and 40 members of the fashion media have RSVP’d. That’s pretty close to the number you expected, but you’re getting a bit nervous about your expenses. Refer to the Event Scenario, and list your expenses in order from most important to least important. Explain why you prioritized the expenses that way. What items could you logically decrease or eliminate altogether to bring your expenses down? Be detailed and specific.

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

5. Revenue Streams You will need a good estimate of the revenue you can expect to help offset your expenses.

A. List the potential revenue streams you envision for this event.

Box A Box B

Box D Box E Box F

Enter # Total Expected Paid Attendees Enter Lower End of % Estimate Enter Amount Made on Each Item

Estimated Merchandise Revenue

X =

X X

=

B. Revenue Calculations

Ticket Sales — Calculate the net revenue you expect from ticket sales.

Box C Enter # Total Expected Paid Attendees Enter Ticket Price Expected Revenue from Ticket Sales

Merchandise — You are selling hats and wine glasses at the event. They will be priced at $22 each. It is reasonable to expect between 10% and 20% of your paid attendees to purchase merchandise. Because of your cost (manufacturing, shipping, custom embroidery/etching, sales tax, etc), you net $9.18 on each item sold. For the purpose of estimating revenue, it is better to be conservative and use the lowest number. Calculate the low end of revenue you could expect to receive from merchandise sales. (Hint: Enter a decimal point to be sure the percentage estimate is correct.)

Box G

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

Sponsorships — Sponsorships are a huge factor in making events financially feasible. In this case, each sponsor adds $250 to your cost (they will eat and drink, and you must provide them a table/display area), but they add much-needed revenue. Calculate the net revenue you expect from sponsors.

Box H Enter Total Platinum Sponsors

Box J Net Revenue from Platinum Sponsors

Box I Enter Net Revenue

(Total value minus your cost)

Box K Enter Total Gold Sponsors

Box M Net Revenue from Gold Sponsors

Box L Enter Net Revenue

(Total value minus your cost)

Box N Enter Total Silver Sponsors

Box P Net Revenue from Silver Sponsors

Box O Enter Net Revenue

(Total value minus your cost)

Box Q Total Net Revenue from Sponsors

Total Estimated Revenue

C. Calculate Total Estimated Revenue by adding Box C, Box G, and Box Q.

X

X

X

=

=

=

=

Enter Total from Box C Enter Total from Box G Enter Total From Box Q

+ +

=

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

6. Post-Event Evaluation The event went well. Everyone went home happy. You had a total of 455 paid attendees. Also, 40 members of the media attended. You sold a total of 71 hats and glasses.

A. Calculate actual revenue. Ticket sales

Merchandise sales

= Total Revenue

B. Determine Net Gain/Loss.

Total Revenue Net Gain/Loss Total Expenses (from Question 3 Above)

Actual Tickets Sold Price Per Ticket Ticket Revenue

Number of Items Sold Net Per Item (from Box F Above) Merchandise Revenue

X

Sponsorship Revenue Enter Total from Box Q Above

=

=

_ =

X

Sponsorship Revenue

PROJECT 2: THE EVENT BUDGET WORKSHEET

© The Los Angeles Film School

EBS 441-O—Event Management

7. Reflection/Summary During your Post-Event Evaluation, you calculated the subtotals from each of your revenue streams, and then subtracted the total expenses from total revenues to determine the net gain or loss from the event. Shortly after the event, you discovered that seven fashion writers and two regular guests on trendy fashion television talk shows gave your new line of clothing rave reviews. With all of the information you now have, re-examine each of your goals and objectives to determine if the event was a success. If yes, why? If not, why not? Be specific and detailed.

  1. Name:
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  10. Choosing the Venue:
  11. Radio Station:
  12. Why this radio station?:
  13. Box A:
  14. Ticket Pricing Strategy:
  15. Prioritizing Expenses:
  16. List Revenue Streams:
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