PSAV Marketing Plan

PSAV is an audiovisual event planning firm that specializes in servicing corporate customers,

for which its “legendary service and innovative technology to create memorable experiences for

planners, producers and customers across the corporate, association and special event markets”

has fostered over 75 years of continued success. Serving hotels, producers, associations, meeting

planners and corporations, PSAV provides audiovisual support, experienced staff, and logistics

with which to support live events and meetings.

8/4/2014

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Executive Summary

Audio Visual Services Group, Inc. dba Presentation Services—known to most as simply

PSAV—is an audiovisual event planning firm that specializes in corporate customers, for which

its “legendary service and innovative technology to create memorable experiences for planners,

producers and customers across the corporate, association and special event markets”1 has

fostered over 75 years of continued success. Serving hotels, producers, associations, meeting

planners, and corporations, PSAV provides audiovisual equipment, projection equipment, onsite

lighting, sound, video and services as well as related technology with which to support live

events and meetings; additionally, the company provides exhibit displays, staging, creative

planning and consulting services.

The audiovisual industry currently “generates $78 billion a year,” and it “is projected to

be a $115 billion global industry by 2015.”2 Complex audiovisual systems are “essential to the

operation of government, institutions and corporations, resulting in a growing need not only for

equipment but for installation, integration and managed services contracts.”3 PSAV has earnings

of “between $130 million and $140 million,”4 and with the acquisition of competitor Swank

Holdings Inc. in 2013 for $270 Million, earnings are expected to grow in excess of $200 million,

strengthening “its position in the niche market of audiovisual services for the hotel industry:”

PSAV increased its market share “from 27 percent to 45 percent.”5

PSAV will offer two new types of services: corporate retreat event planning of seminars

as well as annual corporate meetings, and product launch event planning. The corporate retreat

1

PSAV. (n.d.). Home: Audio Visual Services Group, Inc. - dba PSAV Presentation Services. Retrieved from Audio Visual Services Group, Inc.

dba PSAV Presentation Services: www.psav.com 2 InfoComm International. (2014, August). About Us: InfoComm International®. Retrieved from InfoComm International® Web site:

http://www.infocomm.org/cps/rde/xchg/infocomm/hs.xsl/32928.htm 3 Id. 4 PRWeb. (2013, November 20). PSAV Announces Agreement to be Acquired by Goldman Sachs. Schaumburg, IL, US. Retrieved from http://www.prweb.com/releases/2013/11/prweb11351032.htm 5 Id.

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event planning packages will offer, in addition to event production, both leadership development

and team building training, and PSAV will provide special rates for employee lodging, included.

For both types of events, PSAV will actually host the seminar by using one of its strategic

business partners. The primary marketing objective is to increase its market share by 2 percent in

the first year and to reach a breakeven point on the total investment used to expand aggressively

into the corporate retreats sector by the second year.

Situation Analysis

PSAV has set the standard for event technology services within the hotel, resort and

conference center industry, offering expertise in everything from intimate gatherings to large

conventions. With large-scale cutbacks in event spending, across the entire industry during the

last four years, marketing will be a critical component in which to achieve profitability and

continued growth. The basic market need is a competent service provider offering high quality

event planning at a price that is cost effective relative to a company trying to plan the events

themselves.

Market Summary

PSAV’s direct-to-client relationships complement its network of facility partners

across the globe and include Fortune 500 companies, leading associations and tradeshows, third-

party meeting organizers, and event production companies. PSAV provides best-in-class support,

including creative services, audiovisual services, staging services, and interactive services.

Strengths, Weaknesses, Opportunities, and Threat Analysis

Strengths

Superior, specialized service offerings.

Well-trained, Knowledgeable, enthusiastic employees.

Strong relationships with complementary service providers.

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Weaknesses

The concentration of a small niche of the market that will limit the potential size of the

market.

Short-term: the inability to rapidly scale to meet large, unexpected increases in demand.

Opportunities

A growing market of companies for which outsource event-planning activities.

Being the event services industry leader concentrating on this specific niche.

Relatively low overhead.

Threats

A slump in the economy that could have a ripple effect on service providers.

Future competition from existing service providers competing in different but

complimentary market spaces.

The inability to find qualified, high quality employees.

Competition

Currently, there are three other companies offering audiovisual event planning,

specifically to corporations: AVI Systems, Inc., Freeman Decorating Services, Inc., and Viad

Corp. They, however, tend to work events that are more general in scope. There is no company

specializing in the audiovisual event planning of corporate retreats for training and corporate

conferences that have partnerships with “1,200 destination resorts and hotels throughout the

U.S., Canada, Mexico, Europe and Middle East.”6 There are companies that offer such services,

but these companies do not come close in the number of strategic partnerships and do not do any

of the actual event planning/ logistics of an entire event. Moreover, there is also no company

specializing in on-site production—the staging of an event held at the site of the business—of

6 PRWeb. (2013, November 20). PSAV Announces Agreement to be Acquired by Goldman Sachs. Schaumburg, IL, US. Retrieved from

http://www.prweb.com/releases/2013/11/prweb11351032.htm

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corporate events. Thus, with audiovisual event planning operating in a tight market, PSAV will

benefit from this specialization.

Service Offering PSAV will offer event planning for the corporate market. PSAV will

concentrate on two types of event planning:

1. Corporate and Government retreat. These events typically are used for two different reasons:

leadership training or team building training, for which employees of corporations are sent to

develop these skills. In addition to planning such events, PSAV will also host the event.

Although PSAV’s core competencies do not include hosting, PSAV will align itself with a well-

respected host of leadership development as well as team building programs in which to assist in

the hosting aspect. By utilizing a strategic partner, this allows PSAV to remain narrowly focused,

but with the ability to offer this service to customers.

2. Product launches. Events for which the corporation is releasing a product; that is, an event that is

open to people outside of the corporation, such as industry press, distribution partners, or

current key customers, with the purpose of the event being to create visibility for a new release.

Marketing Strategy

Objectives We have set aggressive yet attainable objectives for the first and second years of

market entry

First-Year Objectives. We are aiming for an increase in market share of 2 percent through

the aggressive entry into the corporate retreats sector of the audiovisual market

Second-Year Objectives. We are aiming to reach a breakeven point on the total

investment used to aggressively expand into the corporate retreats sector

Target Markets

PSAV’s strategy is based on a positioning of service-focused differentiation. The

primary consumer target for audiovisual retreat-event planning services is midlevel-to large-

sized businesses in need of event planning for company retreats and the production of corporate

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retreat events. This segment consists of companies with annual revenue greater than fifty million

dollars and generally has more than one hundred employees. The secondary consumer target is

government agencies—federal, state, and municipal—who need a yearly event produced,

managed, and serviced. Each of the marketing-mix strategies reflects PSAV’s differentiation to

these target market segments.

Positioning

Using service differentiation, we are positioning the retreat-event planning package as

versatile, convenient, value-added model for corporate retreats. PSAV will position itself as a

niche service audiovisual event planner serving the North American corporate market. Our

marketing will focus on the value-priced multiple planning, full scale production, and logistical

capabilities differentiating the retreat-event planning services. The North American market will

recognize the value PSAV provides with its specialized services, such as its exhibit displays,

creative planning and consulting services. PSAV will leverage its competitive edge to achieve

the desired positioning.

Strategies

Product The retreat-event planning package will be sold at a 15 percent discount when: (1) the

event is scheduled thirty or more days in advance (2) and the number of days reserved for the

event equal two or more. We will introduce the Product Launching Event Package during the

following year, after we have established our retreat-event planning package.

Pricing Each event is unique and determining specific prices will depend upon the needs of the

client and the needs of the event. A competitive value price offering will begin with a base price

of $20,000 for a two-day event and $25,000 for a three-day event, which includes all rental

equipment, lighting, and set-up for corporate retreats requiring a single 500 hundred person

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capacity room; then, any labor, or special event needs—such as live streaming or additional

meeting rooms of banquet sized—will be added to the base pricing. These prices reflect a

strategy of (1) utilizing existing channel partners and (2) garnering share from established

competitors.

Distribution Our channel strategy is to use selective distribution, marketing our retreat-event

planning package through our strategic partners and trade magazines. The key to ensuring that it

can support meetings and events wherever they may take place is in its network of 40+ branch

offices, in key meeting cities worldwide. PSAV’s complete technology offerings include the

ability to outsource particular services to local branch locations, offering clients local knowledge

of nearby venues and solutions to complex operating procedures.

Marketing Communications By integrating content across all media, we will reinforce the main

points of service differentiation. With research into media consumption patterns, our marketing

team can choose the appropriate media and timing in which to reach prospects during service

introduction, after which advertising will maintain awareness and distribute various

differentiation messages. We will use trade promotions and personal selling in which to attract

and motivate our channel partners for a push strategy. The last method of communication will be

through participation at various trade shows.

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Marketing Mix The retreat-event planning package will be introduced in September. Below

is a summary of action programs for which we will use to achieve stated objectives.

Action Program Milestones

Date Financial

Operational

Advertising Start End Budget

Manager Department

Marketing Plan/Market

Research 08/04/14 10/01/14 $12,000

Mike Wells

Marketing

Website

Development/Messaging/Blog 08/15//14 09/01/15 $35,000

Ben Davids

IT

Multi-Media Campaign 09/03/14 06/20/14 $35,000 Mike Wells Marketing

Trade Publications 09/01/14 09/01/15 $23,000 Mike Wells Marketing

Service launch 09/01/14 -- $15,000 VP Operations Sales/IT

Trade Show #1 10/22/14 -- $15,000 Mike Wells Sales/

Marketing

Trade Show #2 11/07/14 -- $15,000 Mike Wells

Sales/

Marketing

Employee Sales Incentive

Program 09/01/14 09/01/15 $50,000 John Volt Sales

Total -- -- $200,000

--

--

Marketing Research

Using research, we will uncover the specific features and benefits valuable to our target

segments. The feedback from our focus groups, surveys, and market tests will help us determine

how to fine-tune our retreat-event planning package. By measuring and thus analyzing customer

attitudes toward our competitors, this strategy will help us to fine-tune our services offerings. We

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will also research the effectiveness and efficiency of our brand messages and media through

brand research. Finally, using customer satisfaction studies will help us to gauge reaction in the

market.

Financials

We are anticipating a loss of up to $50 million during the first-year. Break-even

calculations show profitability once our retreat-event planning packages reach 30 sales, which

are projected to be in the latter half of year 2015. The break-even analysis assumes per-package

revenue of $20,000 per service package sold.

Controls

The purpose of this marketing plan is to serve as a guide for the organization. The following

areas will be monitored to gauge performance:

Revenue—both monthly as well as annual tracking

Customer satisfaction

Margins—a relative comparison between the two types of services offered.

Percentage of new business relative to repeat customers

Implementation The aforementioned milestones identify the key marketing programs. It is

important to accomplish each one on time and on budget.

CRP is providing services to corporate customers only. We will not be going after the

"social event market" which is an alternative market niche within the event planning industry.

The corporate customer is a company that contracts with CRP to plan and typically host an event

for the company. Corporations will be turning to CRP to plan the events because:

1. It is cost efficient for a third party to plan the event. This is the case because the third party only

does event planning so they can plan and host the event more efficiently.

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2. The company does not have additional people who can be taken away from their daily

jobs, nor time to invest in an infrequent event.

Positioning

PSAV will position itself as a niche service audiovisual event planner serving the North

American corporate market. The North American market will recognize the value PSAV

provides with its specialized services, such as its exhibit displays, staging, and creative planning

as well as consulting services, in addition to serving the audiovisual needs of its customers.

PSAV will leverage its competitive edge to achieve the desired positioning.

PSAV’s competitive edge will be based on two factors: specialization and strategic

relationships. PSAV will be specializing in two distinct areas of corporate planning. While

specializing essentially precludes PSAV participating in some other market niches, it allows the

company to excel in serving its chosen markets. Additionally, the expert knowledge allows

PSAV to provide the service as a cost saving to the client company because it can concentrate on

improving the current offerings. Improvements that PSAV strives for are a reduction in cost

charged to the client and an improvement to the level of services offered.

PSAV’s second competitive edge is based on the use of strategic relationships. PSAV

believes it is better to concentrate on a few things, excel in those areas, and form strategic

partnerships with companies that excel in the service areas for which PSAV does not specialize.

Applying this philosophy, the Marketing Director has decided that in addition to planning

corporate retreat training sessions, in which the Director wants PSAV to offer the service of

hosting as well as leading these events.

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The service of hosting/ leading, however, is quite different from planning; and PSAV

believes that it would be more cost effective to form a strategic relationship with an expert in this

field. Thus, PSAV then is able to offer top-notch service, offering hosting and leading the

training seminars without having to invest heavily in developing such programs.

PSAV’s direct-to-client relationships complement its network of facility partners

across the globe and include Fortune 500 companies, leading associations and tradeshows, third-

party meeting organizers, and event production companies. PSAV provides best-in-class support,

including creative services, audiovisual services, staging services, and interactive services.

Associations Business

PSAV is expert in the planning, production, coordination, and execution of

tradeshows, exhibits, and conventions. PSAV offers a content management system which

facilitates the complete life cycle of meeting content – from pre-show planning to post-

show publication. Additional specialty services include full creative, virtual speaker

support services, and advanced computer technology.

Corporate Theater

PSAV is also recognized as a leader in planning, producing, and executing

complex presentations and corporate business theater that requires innovative and

advanced technology. PSAV developed a proprietary HD video production system and can

support all staging and production services including elaborate rigging, concert sound, live

digital broadcasts, LED walls and intelligent lighting.

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Branch Operations

PSAV operates to support meetings and events wherever they may take place, through its

own network of more than 40 branch offices in key meeting cities around the world. Its complete

technology offering includes the ability to outsource event technology services to these local

branches from any of its partner facilities, and offers groups local knowledge of area venues and

often complex operating procedures.

Facility Partnerships

PSAV supports facilities with a single-stop event-technology solution, including

rigging, Internet connectivity, back-office network support, power distribution, digital

signage, design and installation services and audiovisual and staging support. Just as important is

PSAV’s ability to proactively sell service and support all of the above in conjunction with a

long-term partnership with host facilities.

At PSAV, we believe leadership comes with a responsibility to support the meetings

and event industry. PSAV supports and participates in major industry associations such

as PCMA, MPI, ASAE, IACC, AHLA, and the CIC. PSAV is a Strategic Partner of PCMA

where it focuses on providing executive education and instruction on ways to use

event technology to enhance communication.

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References Bialek, M. (2011). State and Future of the AV Industry Presentation. Regional Roundtable.

Scottsdale. Retrieved from http://www.slideshare.net/infocomm/state-and-future-of-the-

av-industry

EPIC Events. LLC. (2012). Our Strategic Partners. Retrieved from EPIC Events, LLC

Corporation Website: http://www.epic-events- llc.com/psav.html

InfoComm International. (2014, August). About Us: InfoComm International®. Retrieved from

InfoComm International® Web site:

http://www.infocomm.org/cps/rde/xchg/infocomm/hs.xsl/32928.htm

PRWeb. (2013, November 20). PSAV Announces Agreement to be Acquired by Goldman Sachs.

Schaumburg, IL, US. Retrieved from

http://www.prweb.com/releases/2013/11/prweb11351032.htm

PSAV. (n.d.). Home: Audio Visual Services Group, Inc. - dba PSAV Presentation Services.

Retrieved from Audio Visual Services Group, Inc. - dba PSAV Presentation Services:

www.psav.com