In 2010, the forty-first world expo has been successfully opened in Shanghai from the beginning of the May to the end of October; and the aim of Shanghai Expo is universally acknowledged as “better city better life”. “Colorful Concert” will be held during the period from October first to October seventh in 2010 at Shanghai Grand Theatre. The aim of the concert is “colorful music colorful life” because people are increasingly busy at working in the modern society while ignoring proper rests.
Furthermore, reminding people the importance of our mental health is also one of our objectives. What is more, it is beneficial for citizens whom from different regions to contact and enjoy various music. As a result, we hope to help citizens to release their body and ease their mind through a large music show. Evidently, the relationship between Colorful Concert and 2010 Expo is that both of two events can assist people’s lives become better, healthier, and more colorful. * A summary of preliminary planning
Before the colorful concert, we initially decided to stage a large variety show which is more composite than the concert. We named the previous one as “A Dream City” which involved the changes in four different aspects such as transportation, construction, traditional culture and environment as well. However, it is extensive to state objectives and unreasonable to be held within seven days. * Thesis statement In this report, it will demonstrate the financial and marketing plans with a detailed budget, a sponsorship plan and a marketing plan in appendix.
Moreover, the operations and logistics will be analyzed in the last part of report. Explanation of Financial Planning * The process of determining Financial plan is a plan for expenditure and future income, which can also be simply regarded as a budget or an investment plan. A financial planning always plays a pivotal role during the whole preparation for an event (Cooper, R, n, d). This is because a successful financial plan refers to the means by which cash will be acquired to cover future expenses; therefore, it an be a determination on whether could be profitable or not. According to Shone, “many organizers do not fully appreciate the financial implications of the decisions they are making and are consequently surprised, when the accounts are done, how little profit has been made, or how big a loss has been incurred. ” Consequently, an appropriate financial planning and management could determine the successes of an event. Moreover, the financial management can be divided into three categorizes which are profit-oriented events, break even events and loss leader or hosted events.
The colorful concert is a profit-oriented event due to an expectation on revenues which can exceed expenses. More specifically, from the view of political and economic environment, it has been stated in the second item of the “Guidance” by the Chinese Ministry of Culture that the central and local governments should develop the culture industry through providing special funds or meeting requirements to entertainment enterprises (China Daily, 2010). Therefore, these policies will be beneficial for us to acquire supports by governments and get loans from banks.
It is a unique opportunity for our company to expand the market because there will be a high visitor’s flow rate in the period of Shanghai Expo. Furthermore, the expenditures of colorful concert have been generally segmented into various aspects which are fixed cost and variable cost. Fix cost means that spending will not change with the number of visitors such as overhead, rental of venue, entertainment fees, decoration of venue printing advertising and insurance. On the contrary, variable cost indicates the spending which will change with the number of visitors such as food and beverages, products, equipments and gifts.
All of those budget data will be demonstrated in detailed budget. The breakeven point at which cost and revenue are equal can be recognized as a signal in order to show whether a business is profitable or not (Levine, D, 2008). Contributional margin is one of crucial factors to calculate the breakeven point, which refers to the difference between the revenue received from an individual, and the variable costs for one person. Therefore, the breakeven point is equal total fixed cost divided by contributional margin. * Generating income for the event
Income for the event can be generated from numerous aspects such as tickets income, sponsorship, advertising, concessions of retailers, services for parking or transport, broadcast rights, lottery and merchandise. To be more specific, the colorful concert can not only benefit from tickets income alone due to relate with cultural events; thereby combining advertising, merchandise and sponsorship is crucial for organizers to consider. Furthermore, broadcast right is also one of those manners that can generate profits for the concert. * Sponsors
According to Parry (2004), sponsorship is a commercial promotional skill but not a method of obtaining donations (Parry, A, 2004). The organization of concert has already connected with several related sponsors such as instrument, food, drinks tycoons, and most of them are bullish for the music show. The sponsor who provides most funds to the event will own the exclusive naming right. WAHAHA, which is a tycoon in Chinese drink market, will own the naming right to colorful concert for 40% funding. These companies sponsor to the music show for the following reasons.