Nouveau Event Planning: The Wedding Extravaganza Case Study Solution
It could also consider another pricing strategy of increasing booth charges and providing all of the other services free of cost. As the expo is running at full capacity, reducing booth prices without any increase in the capacity would be of no value for Camp an a. However, if the company increases booth prices slightly and provides all of eth other services free of cost, it would have no potential reduction in the exhibiters and would be able to provide a high value experience to exhibiters at Extravaganza. (Sammut-Bonnici, 2015)
Pricing Strategy for Admissions
Camp an a has a simple pricing strategy for the admissions. It charges an admission fees to its attendees. It provides a large number of value added services to its attendees at its show without any additional charges. These services include;
- Groom’s Room: Camp an a tries to provide a better exposure to grooms along with the brides by providing a Groom’s Room which provide free food and the entertainment services to its visitors.
- Fashion Shows: Camp an a arranges two fashion shows per day for the brides with various exhibiters showing their product features during the show.
- Valet Parking: it also provides a free of cost valet parking to its visitors.
- Wedding Bell Magazines: Camp an a also provides a wedding Bell magazine to each of the bride present in the show, in order to increase their familiarity with the vendors available at the show, and to provide the knowledge about the features of their products and services.
- Phone Guide Advertisement: It’s a guide provided to each bride present in the show containing the contacts of all vendors available at the show along with certain advertisements.
All of the above free of cost services provided to the attendees provides high value to the visitors. These services improvise the visitors’ experience at Wedding Extravaganza. However, all of these services are also provided by the Wedding Odyssey at a lower ticket price to attend the show.
Although, the Wedding Extravaganza has a prestige among the brides and other visitors, but, increase in the competition from Wedding Odyssey and the shift of the potential target customers i.e. brides, towards online ways of finding vendors could reduce the number of visitors substantially at Wedding Extravaganza.
In order to retain its attendees, Camp an a should revise her pricing strategy related to admissions. Camp an a should consider lowering its ticket prices for retaining the number of admissions. However, this reduction can lead to a substantial decrease in the profit margins of Wedding Extravaganza. To avoid the impact of reducing ticket prices, it should start charging small fees to its free of cost services provided to the brides and grooms.
Selling Nouveau Event Planning Business
At the extreme level, Camp an a could also consider selling Wedding Extravaganza. However, selling of the show would have certain positive and negative implications for the overall company. There are certain factors tending Camp an a to take the decision of selling her wedding shows including;
- Decline in the number of attendees due to recession in Canada.
- Changing dynamics of wedding industry.
- Reduction in the bridal bookings at show.
All these factors combine lead Camp an a to consider selling her business and try to increase sales in other areas of her business. Before taking a decision regarding the sell, Camp an a must consider the positive and negative implications of selling the show. An evaluation of advantages and disadvantages of the decision to sell the show is given below.
Advantages:
- The sell would allow Camp an a to focus on other business areas with low competition. The shift of focus towards other business areas like event planning services for organizations could provide potential benefits to the company.
- It would bring cash inflows i.e. $1 million approximately, that could be utilized in other improvising other business areas.
- It would remove the risk market capture by the competitor and would allow the Camp an a to focus on less risky business areas.
Disadvantages:
- Majority of the revenues i.e. 60% of the Nouveau comes from the Wedding Extravaganza show, and after selling the business segment, the company would lost above 50% of its revenues.
- Selling a quite profitable business segment due to increasing competition would hurt the image of Nouveau in the market and the organization may refrain from considering Nouveau for their event planning.
- The other business areas may fail to be as profitable as the Wedding Extravaganza, and may cause Cam pan a to liquidate the business.
- The competition in other business areas could also be increased and lead to the decline in the sales of the business areas.
On the basis of the above evaluation of advantages and disadvantages of the decision regarding selling the Wedding Extravaganza, it could be said that the company should not sell its show and try to compete in the market by modifying its business model along with certain pricing and marketing strategies. Selling a highly profitable business segment comprising of 60% of the total revenues just because of increasing competition in the market could not be a rational decision. Therefore, the Camp an a should not sell her business.
Conclusion
Although, competition for Wedding Extravaganza is increasing due to the introduction of Wedding Odyssey in the market and its aggressive pricing and marketing strategies, but, the competition could be catered by modifying the overall business model and the certain business strategies including marketing and pricing strategies rather than selling one of the highly profitable business segment of Nouveau...............
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