The event management is considered as one of the applications of managing projects so that a large scale event is created (Grandprix.com.au 2017). It involves the investigation of the brand, identification of the target audience and coordinating the technical aspect before actually launching the event (Grandprix.com.au 2017). The event chosen for this report is Australian Grand Prix. It is a car race that is held in Australia annually. Australia has received the contract of hosting “Formula One” car races till the year 2023 (Grandprix.com.au 2017). This race was first held in the year 1928 (Grandprix.com.au 2017). The Grand Prix event is an oldest motor car racing competition, which is held in the country of Australia (Grandprix.com.au 2017). The event is currently held at Grand Prix Circuit at Melbourne. The race winner is presented with one circular plate, which is known as Jack Brabham trophy (Grandprix.com.au 2017). In the event history, two of the most successful names include the German driver Michael Schumacher and Australian driver Lex Davison.
This executive report would discuss the different types of events based on size, form and content. The target audience for this type of event would be discussed. The event would be described based on the attendance, time frame, economic impact, tourism significance and the need of the event. The growth opportunities for this event would be discussed.
Classification of the event
The Australian Grand Prix event is classified as per the event size, event form and the event content-
The event is one of the most popular events in Australia, which attracts people from all over the world (Grandprix.com.au 2017). The race is held at held at the circle Albert Park Lake, which is located at the southern part of the “Central Business District” of Melbourne (Jinquan 2016). This course is smooth and there is a consistent corner which allows the drivers to teach the given circuit easily (Grandprix.com.au 2017). The event draws a wide range of audiences from 47, 000 to 1, 03,000 and it is a huge draw among all sections of society.
The form of Australian Grand Prix event is Formula One (or F1 or it is also known as FIA Formula One World Championship) (Grandprix.com.au 2017). It is considered as the highest class of the “single seat” auto racing, which is considered as a premier of racing event (Grandprix.com.au 2017). In this form of event, there are a set of rules or formulae’s that the participants need to conform (Schreyer and Torgler 2016). The season of F1 comprise of variety of races, which are termed as Grand Prix and Australian Grand Prix is one of them. This kind of racing events is considered as one of the fastest racing events in the world.
The Grand Prix event requires several infrastructure needs so that the car racing event tasks take place smoothly (Grandprix.com.au 2017). There are different circuit modifications, driver changes and maintenance of the tires so that the racing is successful event. The circuits undergo regular checking and the safety features are updated (Grandprix.com.au 2017). There is an increased physical demand of the specification of cars in the year 2017 and there is lack of sustained running (Hirsch et al. 2017). The tires of the cars are being supplied by Pireli and the tires of the company are supersoft, ultrasoft and soft tires.
The races are classified based on the qualifying times, time required, number of laps and others. The Australian Grand Prix is considered as the first round of the Formula One events and it is held within 23 March to 26 March (Grandprix.com.au 2017). It is considered as the first race of the year. There are series of practice as well as qualifying sessions which take place before the race. There are usually a morning practice session followed by a qualifying session held in the evening. The sessions last for one and a half hours (Grandprix.com.au 2017). The first qualifying session in the present format is eighteen minutes long and there are approximately 20 cars in the circuit.
Target market for the event
As opined by Rogers and Davidson (2015), it is important to determine the target market of the event and decide the course of the event accordingly. It is important to set the goals of the event and segment the potential attendees of the event. The target market of the Australian Grand Prix includes middle aged men and women (Grandprix.com.au 2017). The audiences have high level of interest in the high speed “motor cars” racing. They also have considerable amount of interest in the new technology and they have a love for the fast moving cars. They are more inclined to the video games and are more likely to have a specified TV viewing habit. They are more inclined to watch the Sci-Fi, sports and action movies channels, rather than viewing musicals or romantic films (Rogers and Davidson 2015).
The global market of Formula One car racing is lucrative and is more concentrated in the developed countries (Steenkamp 2017). There has been a change in the global headquarters of the Formula One event and the recent organization is located in London (St. James Market). The Formula One market is controlled by one of the top shareholder known as CVC Capital Partners (Rogers and Davidson 2015).
The national market of the Grand Prix in Australia can be segregated into two forms. There are types of audience who watch the live events and there are others who watch the delayed coverage (Jensen Cobbs and Groza 2014). In fact, there are other audiences who watch the event as news highlights or headlines in other programs (Rogers and Davidson 2015). There are advertising firms that target all viewers of Australia and they give equal preference to people that watch live broadcast or whether they watch few seconds’ coverage in some news clip. The inclusion of the news viewers in the target advertisements is considered as an innovative measure to enhance the popularity of the event (Jensen Cobbs and Groza 2014). The live event is broadcasted to millions of audiences in more than 187 countries (Kim et al. 2013). The Australian audiences are usually measured by television audience ratings known as OzTAM, which calculates the viewership rates in five metropolitan cities like Melbourne, Sydney, Brisbane, Perth and Adelaide (Jensen Cobbs and Groza 2014). There are an average number of 1.3 million people who watch this race on a regular basis (Van Reeth 2016). It is true that there are no exact figures who watch the highlights, replays and the online coverage of the event.
Description of the event
The Grand Prix Event took place in March in the year 2017 for four days starting from 23 March to 26 March (Chappelet and Parent 2015). It was opening episode of the Grand Prix event takes place in the race around the circuit, which is located in Melbourne (Chappelet and Parent 2015). The actual race starts on the Albert Park track, when the cars come arrive for the practice sessions (two in numbers) (Chappelet and Parent 2015). The next day comprise of one practice sessions and the qualifying sessions are held in the next day (Chappelet and Parent 2015). There are 58 laps in the race and the total distance covered by the cars is 191.11 miles (Walkerley 2016). The timing of the main race is 4 pm in Melbourne (Chappelet and Parent 2015).
The event draws audiences from Australia as well as all over the world (which implies significant tourism significance). The sports lovers are attracted to this adventure sports and people from all demography visits to witness the major event (Chappelet and Parent 2015). There has been considerable rise in the spectator attendance since its inception (Chappelet and Parent 2015). During the global economic downturn in the year 2009, there was a higher level of unemployment and strike of the public transport, which has led to slight drop in the attendees of the event. In the year 2010, there was an increase in the attendance rates of the Grand Prix, Australia (Chappelet and Parent 2015).
The organization structure of Grand Prix comprises of the Chairman, Deputy Chairman, FCIT, strategic advisors and others (Grandprix.com.au 2017). They have Audit and Risk Committee, the main responsibilities of who is concerned with the report as well as review independently (Grandprix.com.au 2017). They assist the managers in evaluating the effectiveness of the internal environment of the organization.
The Grand Prix event has significant economic impact on the territories of Australia. The annual economic rate of the event is between $32 million and $39 million (Jones Newsome and Macbeth 2016). There is a growth of international tourism as a result of the Formula One events. There are overseas audiences that flock in the country for witnessing the annual car racing events. This has caused a subsequent rise in the hospitality sector also. The firms namely Crown and Accor have reported huge rise in the bookings during the Grand Prix event (Jones Newsome and Macbeth 2016). There is a huge rise in the television viewings of the event as the event is screened in more than 187 countries (Jones Newsome and Macbeth 2016). There is an increased investment in Australia and there is also a high rate of return visits by the tourists (Mao and Huang 2016). It is considered as profitable events as it leads to an improvement in the economic scenario of the country (Jones Newsome and Macbeth 2016). However, there is considerable loss to the external environment of the park as there is an increase in the noise pollution and loss of public utility of the park (Jones Newsome and Macbeth 2016). There is an increase in the employment options in the nearby regions, which leads to an increase in the economic power of the region.
Strengths and weakness of the event
The Grand Prix even has several strengths as well as weaknesses. The strengths of the event include that it provides considerable amount of branding as well as positioning for Victoria and Melbourne among both the national as well as international audiences (Holmes et al. 2015). This is achieved by the media coverage as well as “word of mouth” publicity of the event (Holmes et al. 2015). There is a rise in the government revenues as there is an increase in the tourism activities in Australia (Holmes et al. 2015). There is a considerable amount of television broadcast hours, which has extensive coverage worldwide. There is branding of the Australian regions in the online, radio and print medium (Holmes et al. 2015).
The exposure to Melbourne in the international media is associated with benefits such as increase in the business opportunities, induced tourism, inward investment and industry development (Holmes et al. 2015). There are improved business prospects in the region and country. There is an improvement in the sponsorship as well as sales revenue of the Victorian government (Holmes et al. 2015). The sale of the event tickets have been great source of revenue for the company. There is consumer surplus to the different attendees of Victoria (Jones Newsome and Macbeth 2016). This amount refers to the additional amount that the Victorian residents are willing to pay for viewing the race (Holmes et al. 2015). This rate is above the normal ticket rate, which gives a boost to the total ticket sales revenues (Holmes et al. 2015). There is benefit to the Victorians for attending free parade in the business district of the country. There is also surplus relating to increased visitation (Jones Newsome and Macbeth 2016). The attendance at the event rises every year, which implies an additional source of revenue for the company (Holmes et al. 2015). There is an increased benefit to the media exposure, which benefits the operating revenues of the country.
There is subsequent weakness of the Grand Prix event, which takes place in Melbourne. There is loss of public place in the park and the citizens are unable to gain access to the public amenity (Holmes et al. 2015). The race restricts free movement of the public as there is removal as well as construction of the equipments. There is significant amount of loss of revenues for the park revenue as depicted in the below chart-
Visits per year
Visits per week
Portion of visits
Fig: Estimated cost due to loss of park use
Source: (Grandprix.com.au 2017)
There are certain growth opportunities for the Grand Prix event, held in Australia. There has been considerable rise in the revenues of the Formula One events in the last 15 years and it has also surpassed its close rival FIFA World Cup (Kim et al. 2017). There are an increasing number of stakeholders that are increasingly aiming for acquiring more number of motor race venues, which would speed up the liberty process (Holmes et al. 2015). There has been increasing global trends of watching Formula One, which would also increase the revenues of the event (Holmes et al. 2015). There are opportunities for enhancing the competitive spirit of the races and hence there is scope of adding ancillary elements. There is scope of exploiting the digital media by the Grand Prix organizers (Holmes et al. 2015). It is important to grow the digital revenues of the firm by generating direct revenues from the customers.
The threats of the Grand Prix event include the different teams who might be breaking out from the league and forming their individual teams. This may reduce the potential glory of the Australian Grand Prix (Holmes et al. 2015). The top drivers of this form of racing might move out and enter other forms of racing. There is a growing popularity of the event Moto GP, which may pose sever threat to the Australian Grand Prix and take away their dedicated customers (Pinch and Reimer 2017).
The Australian Grand Prix event needs to be improved for better future growth prospects of the event. The disputes between the FOTA and FIA should be improved. It is true that there is high expenditure that may force many teams to withdraw themselves. There should be some additional options for the teams participating in the Formula One. There should be proper segregation of the events. There is greater need of the improving the quality of cars in the Grand Prix event, which would improve the competitive spirit of the event. It is also important to implement cars with wider tires so that the drivers get more grips while the race is going on. It is important to increase the promotional activities of the event as this would help the event to penetrate more into the masses. It is important to promote unique advertisement strategies for the formula one event so that there is greater brand visibility and greater identification of the event by the audience. This would also increase the potential target market of the Formula One race and it would also penetrate into the developing economies.
Australian Grand Prix is one of the biggest and most prestigious events in the sports car racing industry. The organization of such mega events needs lots of patience and hard work. This report discussed the classification of the event based on the size, form and content. The target market of the event is discussed, which includes middle aged men and women, who love high adventure sports. The event is described based on their time of occurrence, type of audiences and the economic impact of the event. There are several strengths as well as weakness of the event. The growth opportunities of the event show that there are considerable options for proliferation in the international Formula One market. The recommendations section has provide some of useful tips of growing the event in the national as well as international market such as segregation of the events, improving the quality of cars, tires and others. It has been suggested that there should be more focus on the promotional activities of the event.
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