CIMGLOBAL Welcomes You To The Orientation Programme on MICE

(Meetings, Incentives, Conferences & Exhibitions)BY

Bangalore Chamber of Industry and Commerce Meeting Overview

An MBA from West Minister College, London, he specialized in international marketing and then went on to do a special project on Tourism Law & Development of Tourism in Asia from the London School of Economics (LSE).

During his stay at DTI (Department of Trade & Industries) London; with their international division, he was handling conferences & exhibitions for trade and industries. Spear heading a dynamic team of professionals drawn from varied industries, CIMGLOBAL evolved to be India’s Brand Ambassador promoting India as a knowledge hub and a fine host to science and technology events.

Prasant Saha – Chairman & Managing Director

Founder Director

Jeremy Garbett

27 years experience

SVP, MD of Jack Morton Worldwide

1993 - 2007 JMW Board Director2005 - 2007 JMW MD Europe 2008 - 2009 Action Impact MD, UAE

Relationships:Automotive: Vauxhall, Opel, Chevrolet, Saab, VW, VolvoTelecoms: Nokia, du Telecoms (UAE)Electronics: Samsung, Tom Tom, FujitsuFMCG: Mars Europe, Stella Artois, InnocentPharma: PfizerGovernment: Lord Mayor’s Office, GLA, COI, 2012 Olympics, TDIC (UAE), Dept of HealthFinancial: Zurich, COLT, Eversheds

Jeremy has been responsible for leading a number of the largest sustained account relationships in the communications industry - personally producing some of the most creative, integrated projects for many differing audiences

Relationships:Automotive: Opel, Lexus, BMW, Porsche, HyundaiHealthcare: Pfizer, Johnson & Johnson, GSKFinancial: Citi, Lloyds TSB, UBSGovernment: Department of Health, Olympics, PM’s Office, Masdar (UAE)Telecoms: Verizon, Cable & WirelessFMCG: Mars Inc, SubwayMedia: ITV, SRMG

Worked extensively on every Continent, and has been responsible for some of the most innovative and results driven communication programmes for world leading brands and Governments.

Laurence Croneen

24 years experience

EVP, MD of Jack Morton Worldwide

1993 - 2000 JMW Board Director2000 - 2005 JMW MD Europe2006 - 2009 JMW MD New York

Founding Directors

A Micro Biologist from Bangalore University .13 Years experienced in WizCraft and delieverd about 1000 events .

Girish K JFounding Director,

Kolot Media

Founder Director

Industry Overview

• The Event Industry is one of the fastest growing

industries in the country

• The Event Industry is expected to touch the $768

million mark by 2013-14

• Event Industry in India is poised to grow by at least

by 25% annually and is estimated to reach $966

million by 2014-15.

Event Industry

• Management fees of a 17.65% the service charge that

the event companies earn

• The clients are charged an additional 12.36% service

tax on the total billing

• Pay scale in the industry is anywhere between 10,000

to 1,00,000 per month and beyond

Indian Economy

• Ranking at No. 3, surpassed Japan• 1.159 billion handsets• Vehicle sales is projected to hit 4 million by

2015

Indian Market

• 1.25 billion population• > 57% in the age group of 18-25. • About 500 million work force – 2nd largest• Scope for new ideas and technology to be

implemented.• Disposable income has increased to over $15 million

annually

Things can’t be better for the events industry

"With a compounded annual growth of 14 per cent, it (event management industry) is projected to be Rs 5,000 crore by 2015 in the country," Director of Rachnoutsav Events Academy Sanjay Kankaria told

Market Segmentation

• Social Events Wedding Planning (Wedding Management) Birthday Parties Anniversaries Get Together Social Gathering Fund raising for Large Clubs, Charitable Trusts etc

Contd…

• Educational Events Education Fairs College Events Picnics & Holidays Annual Sports

Corporate Events Meetings Seminars Conferences Training Programs Annual Picnics Award Functions

• Political events Rallies Party Meetings

Contd…

• Entertainment Events Movie Promotions Celebrity Nights Music Video Release Award Nights Sports Fashion Shows Beauty Pageant Contest Stage Shows Dramas etc.

• Exhibitions & Fairs Property Exhibitions Export Exhibitions Electronic Fairs Jobs Fair Finance & Banking Fairs etc.

Contd…

• Marketing & Promotions Ad Campaigns Product Launches Road Shows Promotion Activities Shopping Festivals etc.

• Special Events (For special needs of clients.)

• Association Events

Association Events

• What is an association? Managed by Volunteers• Professional, Industry, sports…etc• India hosts more than 10000 associations• Vibrant association culture • Association events – increasing by the day• Driven by knowledge and business not creativity• Professional associations not very evolved with

successful revenue models• Professional Organization support provided by

Association Management companies and Professional Conference Organisers

The difference b/n Corporate & Association Event Management

• Lead time – from bidding to conference delivery• Bidding success rate – 1/10• Budget starts at 0, revenue to be generated by the event• Higher Risk• In Corporate events it is part of the budget• A committee takes decision whereas in corporate 1 or 2 people

take decision• Partners and Vendor management – billing to client• IT Tools• Business model – professional fee, vendor margins, hotel and

venue commissions• City approach is very required, media has a key role• Government support – Industry& Commerce, IT and Tourism

Stake Holders

• Professional Conference Organizers• Hoteliers• Venue owners• Tours• Travel agents• Transportation providers• Event managers• Airlines• Govt. of India• State Govt.• Audio Visual Vendors

Transportation

Ideal Stake Holding

VenueHotels

Tours

Govt.

Event managers/ PCOs

Airlines

Travel agents

Vendors

Client

3%

23%

14%

31%

26%

3%

Segmentation of Events

Local AssociationCorporate/ MeetingsInternational AssociationsSocialsNational AssociationsExhibitions/ Others

Factors affecting the segments

• Social Events– Rich culture and social setup– Traditions/ Rituals – many and more

• Educational Events– More awareness about education and its

importance– Literacy rate improving– More institutions coming up

• Corporate Events– Huge target audience which is growing by the day.– Communication is ongoing

Contd…

• Entertainment Events– Audience and varied audience– Rich in art, architecture, heritage and culture

• Exhibitions & Fairs– Newer technology coming to India– User friendly technology

• Marketing & Promotions– More products to market– Wider target audience

• Association Events– More number of industries coming to India– Manufacturing sector growing– People’s Awareness increasing

The phenomenal double digit growth of the event management industry coupled with the transition of this sunrise sector from a highly

unorganized to organized niche and competitive sector is expected to see a manifold demand for talent pool. The market for event management in India is expected to witness a growth of 25 per cent and exceed to $567 million by 2015.

Key PlayersPercept D Mark Wizcraft International

Entertainment Pvt LtdDNA Networks Pvt Ltd.Cineyug EntertainmentCox and KingsE-Factor TCI Consultancy Services and 'e'

EventsFountainhead

PCOs in India

• CIMGLOBAL• K W Conferences• Kuoni• ICE• MCI• Aplcord• Planit India• Vama Events• Kenes India

"The proliferation of TV channels and newspapers mean that advertisers have begun

to opt for experiential marketing (event management) instead. You connect with the

consumer through an event, and you're likely to get better and quicker results through events

than through traditional advertising," said Sabbas Joseph, co-founder of Wizcraft, currently

India's largest event management industry.

India lacks good infrastructure to promote this industry. Though the growth is phenomenal, the lack of venues pose as a huge obstacle. The first

and only international convention centre that India has is the Hyderabad International

Convention Centre.

Hyderabad International Convention Centre (HICC) is managed by Accor and jointly owned by Emaar Properties PJSC Dubai and Andhra Pradesh Industrial Infrastructure Corp Ltd. HICC is the first purpose-built and state-of-the-art convention facility, the first of its kind in South Asia. • Novotel Hyderabad Convention Centre adjacent to HICC is a 5-star 287 rooms hotel,

built to suit the requirements of the discerning business traveller. • Pillar-free internal hall of net 6,480 sq. metres that can hold an 5,000-delegate plenary

and can be portioned into 6 smaller halls.• A spacious Pre-function foyer area of over 6,000 sq.meters of lobby space.• 37 breakout rooms, including specialized meeting rooms, speaker preparatory rooms,

boardrooms, 12.5 metre high ceiling, roof catwalks and truss to withhold heavy suspension.

• In-house 5-star banqueting service.

Hyderabad International Convention Centre

Other venues include exhibition centers and hotel convention centers. Bangalore

International Exhibition Centre, Bombay exhibition centre, Pragathi Maidan, India Expo

Mart, Chennai Trade Centre and large hotel convention centers are among the tops venues.

Strengths:1. Reputed players2. High in Creativity3. Industry

Knowledge4. Easy access to

talent pool5. Growing market6. Varied Products

Threats:1. International Players

coming into the market

2. Low supplier loyalty3. Lower margins due to

competition

Opportunities:1. Newer ideas2. International brands

coming into the market3. Associations getting

organized4. New technologies5. New venues

Weakness:1. No formal education2. Lack of Infrastructure3. Taxation is high4. Unorganized players5. Clarity in licenses6. Must have Event

Insurance 7. Formalised Training

Strengths• Growing economy, everybody wants to be part of the India economic story• Strong industry base for IT, telecom, pharmaceutical, automobiles• Active industry associations• World – class hotels & service apartments, alternative accommodation options• Variety of restaurants, shopping haven, cultural activities, etc • Allied activities: heritage walks, golf, amusement centres, wine tours, ayurveda & spa centres, • Multiple pre and post tour program options for events• World class medical care• Presence of large academia and research institutions• Excellent flight connectivity• Presence of quality ground handlers, professional conference organizers (pcos), professional event managers and entertainment consultants• One of the fastest growing outbound MICE markets in Asia – Pacific

Weakness•Absence of quality Convention and Exhibition centres in most cities• China as a state policy has made it mandatory for cities with a population of 5 million to have a world class Convention and Exhibition Centre. Investment to be done by the State.•Hotels overpriced for MICE movements into India due to mismatched demand – supply ratios. We lose out to Thailand, Malaysia, Hong Kong, Macau. •Limited Night life•No focused body to promote ‘MICE India’ in markets: both within India and abroad. Indian Convention Promotion Bureau only promotes MICE outside India, while the MICE industry in India is still 90% domestic.•Lack of Data / Market Information on MICE related activity.•No formal education, hence no trained staff•Unorganized players•Lack of cohesive working relationship among stake holders•Corruption•Complicated tax and legal structure•Integrated transport systems

Opportunities

•Boom in investments across sectors.•Over 25000 Hotel rooms / Service Apartments being added in the next 3 – 5 years in Mumbai, Bangalore, Delhi and Chennai•Brand New International Airports in Mumbai, Delhi, Bangalore•Access to modern technology•Growing interest in India.•Newer ideas•International brands coming into the market•Associations getting organized•New technologies

Threats•Competition from Neighboring countries and Asia Pacific, who have readymade infrastructure to handle big conferences and exhibitions. •Even Sri Lanka has better Convention facilities than India, other than Thailand, Malaysia, Singapore, Hong Kong and Macau.•Conference Visas issued by Indian missions abroad very cumbersome.•Slowing down of economies in the west. India being a traditionally long haul inbound market, recessions in Europe and US, will effect inbound MICE. •Low supplier loyalty•Lower margins due to competition

POSITIVE CASE STUDY

PR valuation of over 85 million USD and close to 30,000 audience(2011) 600 million viewers over 120 countries across the globe

IIFA

SUNBURN •Electronic dance music festival held in Candolim Beach, Goa, India.•Valued at $100 million to $150 million•Future plans for brand Sunburn include taking the festival across Asia, including Thailand, Malaysia, Vietnam, Singapore and Bali.

• Just Advertisement revenues more than Rs 800 cr•Valued at ~ 3 billion USD

Global INDIA USA ASIAGrowth

(in %)6.2 13.1 6 20

Projected Growth (in %)

5.5 25 4.2 21

Growth of the Industry

Source: Industry Estimates, Rohit Hangal; Voyagers World & PwC Analysis

Conclusion

•Rebrand bangaloreVision bangalore - reinstate

• bangalore convention bureau•Leveraging the present infrastructure – map data•Representation to the government – relentless efforts – BICEB vehicle- reallocate budget•Vision 2- without government – quick wins - strategize