Tramline Business Festival - Case Study Example

Research Methods Economic Effect of Tramline Tramline music festival is an award winning festival that is also free to attend. Tramline is held annually and it takes place in Sheffield in the UK. Tramline is normally free to attend and the event comprises of national and local artists of different genres. Tramline is usually curated and organized by a panel that includes local volunteers, promoters, and venue owners. Even though tramline festival took centre stage recently when it was launched in 2009, it managed to attract a whooping 35,000 fans on its debut. This particular festival normally takes place at over 70 venues within the city centre and this includes; peace garden, bowery, Harley, University of Sheffield, Barkers pool, 02 Academy, Lead mill, and the main stage on Devonshire green that comes with a capacity of 8,000 audience (BBC, 2012). Each year tramline event is normally organized into eight musical genres that are dance, Blues, Folk, World, New Music, Indie, Rock, and Pop. There is also a kid’s area, market, and an electric mix of music, which means the event, provides something of all ages. Tramline is still a free music event even though there are huge debates as to whether or not the festival should be paying entry fee of free going forward. It is being estimated that in 2009 the cost of running this very even stood at approximately £200,000, and by 2012 this figure had risen to a whooping £390,000. This high cost of running the event is mainly driven by catering for the burgeoning festival goers who have lately learnt about the event.. For instance, during the first year, Sheffield city centre managed to attract approximately 35,000 and come 2012 the figure had risen to about 90,000 people. When the event debut they were using two outdoor stages but last year they used six in order to comfortably accommodates the extra attendees (Guardian, 2012; University of Sheffield, 2013). The concept of funding free festival is very complex and requires shrewd resource utilization in particular this period of global financial crisis. Traditionally, Tramline festival has had three main sources which includes Grant from the Sheffield city council Sponsorship revenues Income from food and drinks sold Contributions from the venues arising from items such as security Research Methods Due to the above facts we thought it was viable to conduct some qualitative research on the economic impact of Tramline music festival. It is very difficult ascertaining the real effects towards the local economy and as such various research methods can be employed. However, it is only by applying proper research formulae that it becomes possible to ascertain the economic impact. The chosen research method should address concerns from various parties and this includes, the local Sheffield city council, hotel, restaurant, and pub owners, transport operators, and other vendors actively involved with fast moving retail merchandise such as snacks, mobile airtime, and newspapers. Interviews After various observations, we decided to conduct an interview with all parties concerned with effects of tramline to the local economy. In such study interviews can with several benefits mainly because it enables the interviewer to obtain relevant facts behind a participant’s experience, and the interviewer is also in a position of pursuing in-depth information that pertains to a particular topic. With an interview it also becomes possible to add human dimensions to impersonal data The interviewer is also able to deepen his understanding and at the same time explain the statistical data that he/she has obtained In our study it was better to use some closed, fixed response question because there were specific information that we were seeking from the interviewees, and this implied that all interviewees were to be asked the same set of questions and asked to select responses from among the same set of alternatives. The interview Questions that were sent to the respondents via e-mail systems can be found in Appendix 1 Businesses involved with Tramline Music Festival According to various e-mail responses most organizations have now begun to realize the economic benefits of the tramline event. Initially these businesses perceived tramline as just a free event that attracted people into Sheffield. But lately they have come to realize that when this event was hosted, the city managed to attract a whopping 90,000 individuals and the lists keeps on growing. Most of these individuals are adults with some disposable incomes and thus businesses such as hotels, pub, restaurants, coffees shops, and magazine vendors among others realized that their sales every day tripled or quad5ruppled yet they were selling their merchandise at twice the normal rate. With such increase in business it implies that the local authority also benefited in the sense that there is a general increase in tax rates that are submitted by businesses, and this ensures that Sheffield is now able to fast track its service delivery program. Because businesses are making more profit, it also implies these businesses are likely to expand at a faster rate, and Sheffield as a city can be more packaged as a tourist destination because of this particular tramline festival. This clearly shows that despite the festival being free, it comes with economic benefits as well that surpasses the free entry provided. How was your business involved in organizing the tramline business festival? Most of the businesses actively involved with tramline music festival were pubs, hotels, restaurants because most visitors had to find somewhere to have a rest and eat some meals. Approximately 99% of the businesses actively engaged with Tramline music festival were found to be operating in hospitality category. Most visitors preferred modest accommodation with bed and breakfast because lunch could be easily purchased outside their hotel rooms and also they preferred to enjoy different cuisines. As a result, most hotel and restaurant businesses ensured that guests received the most hospitable experience and they advertised their services, while some even went to an extent of sponsoring some donations to the events because they clearly knew that the returns that they were likely to receive owing to the large anticipated customer numbers were immense. In addition, much smaller businesses also got the opportunity to enhance their brand image and showcase what they had beyond Sheffield which is a good sign for future expansion to other cities and towns across the UK. Were you involved as a sponsor or a donor? Most organizations were actively involved as sponsors of the event. This ensured that these businesses receive free publicity in form of advertisements that enabled the businesses get new clients. For instance, a restaurant would sponsor the event by donating some cash that could be used in general expenses, and in return they could advertise their services in the event. Due to this the restaurant may attract customers who would buy some of the food products that were little bit pricey due to the customers demand. There were other organizations that were involved as donors, and these included hotels that could inject cash into the event, and at the same time provide free accommodation to the event officials. Such hotels could in the end benefit when other employees of the event required hotel rooms and such establishments were given first priority. There were also various partnerships with multinational companies such as Nokia that provided a strategic regional partnership as part of its “Nokia Local Connections Plan”. There was a Nokia VIP tent that put on a surprise performance throughout the 3 days and night of the festival. As a result Nokia managed to enjoy such as huge success when consumers recognized its brand more and a higher percentage of festival goers even agreed that Nokia was a great brand choice and even lamented that the festival would not have been the same without Nokia Company. Nokia brought in a concept that enabled the event organizers to create a compelling media excitement and delivered a strong media ROI for the brand and as a result NOKI signed up immediately for 2013 event. Would you consider becoming a sponsor or a donor in future? Off course most companies have now begun to realize the benefits of sponsorship in such major events. Approximately 90% of the companies interviewed prefer to become sponsors or donors because they already know that this is one of the best ways of building their brand image at the most cost effective price. Businesses are ready to provide some of their services or products free of charge provided that their brand name is mentioned within the festival either in terms of free banner advertisements or they are given some stands at subsidized rates. With such privileges the conference can sustain itself free of charge with no entry fee because there are donations, and at the same time businesses stand to benefit when they showcase their products from the market hence attract clients (BBC, 2012). Did you employ any staff during the event? Approximately 90% of the businesses did not employ any new or temporary staff during the event. This situation could be attributed to the fact that most businesses had not really ascertained the economic benefits of such events and it could be noticed that most businesses had to force their staff to work for long overtime hours in order to cope up with the new demand. Overall do you feel that tramline is a good event for the city to host? According to information derived from the respondents, it can be well said that summer is often notoriously difficult for any business operating around Sheffield area, however, tramline helps this because during summer time most students often go away, and most businesses previously survived by battening the hatches and minimizing on their staff bills. With tramline, business such as pubs easily make a week’s cash in a single night, such money enable businesses to maintain their staff on payrolls, pay VAT and also maintain other bills such as water, electricity, telephone, and internet. In addition business such as shops that do not increase any sales are also likely to experience greater footfall because such events provide free promotions because people often pop into shops who wouldn’t usually. There are some shops such as snack bars, pubs and restaurants who admitted to that during the festival they will even be opening up on Sundays in order to meet the new demand of the trade. Also during tramlines festivals there is also a general feeling of friendliness and people are talking to each other, getting on and enjoying themselves (Sheffield Telegraph 2013). The atmosphere is normally fantastic and this has been aided by the excellent weather during the summer period. Previous tramline attractions included; stage at the Barkers pool, folk music in Leopold Square, Blues Trail, and a free Busker Bus tour. Economic Benefits Tramline is a free event where every gig is free of charge and this raises the big question of where the money is going to come from. In 2010 this event swallowed in a whooping £28,000 translating into 24p per person living in Sheffield city. However, when you think of having such a great urban Glastonbury where thousands of people come together free of charge to enjoy music and showcase their talent while having some great moments, then clearly this is money that is well spent and the Sheffield economy clearly becomes the ultimate winner. The city benefits from national exposure, there is fun on its streets with feeling of friendliness throughout. As a result, the city gets a great buzz and attains international recognitions while showcasing local talent (Sheffield Cathedral, 2012). Before tramlines, business such as clubs and music venues have closed down and such festivals have managed to bring in some lifeline by putting some injection into the business. Since tramline began taking shape in Sheffield, for the first time ever in Sheffield’s history, live music sales did overtake recorded music. Funding the tramline event is very complex considering the current business environment. Traditionally the event has only had four sources of incomes which are: 1. Grant coming from the Sheffield city council 2. Sponsorship revenues 3. Income from food and drinks from the stage areas 4. Contributions from the venues that pay for their line-ups and security associated with opening their venues In 2013 the first three revenue streams are expected to decrease significantly. The event has been enjoying remarkable sponsorship from Nokia for the past two years that has assisted in building up the event and also facilitated setting up of great shows such as Reverend and the makers, and Heaven 17. However, the event organizers are still waiting for the final word from Nokia, even though with current business climate, they are not that optimistic that Nokia will return in 2013. Each year retailers are charged more for food and drink concessions on stages in order to bridge the gap on the increasing costs. However, it seems that the event has reached some level of saturation and the event is now expecting some decrease in their income form 2013. Finally there are council cuts from the previous funding, and this is the main reason that the event is poised to introduce some gate charges because putting on a party for 100,000 people s not very cheap, and even without a council cut, this would not have been easy. Entry charges are now being considered after the events first three years were free of charge. Tramline festival 2013 is set to take place from Friday 19th to Sunday 21st July and for the first time in the festival history, the event shall attract a £6 fee per day in order to subsidise on some of the events running costs (Tramlines, 2013). The ticket prices from the inner-city extravaganza are set to take place across four outdoor stages and virtually all Sheffield city’s pubs, bars, and venues, and there will also be a new ticketing options that will ensure that festival goers are guaranteed chances of getting closer to their favourite musicians, and there shall also be a huge number of fringe elements over the weekend. References BBC 2012, Sheffield Tramlines Festival gets underway. Retrieved 20th March 2013 from http://www.bbc.co.uk/news/uk-england-south-yorkshire-18908917 Tramlines 2013, Sheffield Music Festival, Retrieved 21st March 2013 from http://www.tramlines.org.uk/ Guardian 2012, Tramline keeps it free for all four years in a arrow, retrieved 20th March 2013 from http://www.guardian.co.uk/uk/the-northerner/2012/jul/24/tramslines-festival-sheffield-music Sheffield Cathedral 2012, tramline Festival 2012, retrieved 20th March 2013 from http://www.sheffieldcathedral.org/events/tramlines.php?PHPSESSID=6ba9743604fab176aebf5b1f8c5721c7 BBC 2012, Thousands in Sheffield for Tramsline festival, retrieved 20th March 2012 from http://www.bbc.co.uk/news/uk-england-south-yorkshire-18928677 Sheffield Telegraph 2013, Rising Sheffield Stars set for Tramsline music festival, retrieved 20th March 2013 from http://www.sheffieldtelegraph.co.uk/lifestyle/rising-sheffield-stars-set-for-tramlines-music-festival-1-4720680 University of Sheffield 2013, Sheffield Tramline Music Festival, retrieved 20th March 2013 from http://www.shef.ac.uk/union/news.php?contentID=14118 APPENDIX Appendix 1 Questionnaire for local business- Tramlines Festival Dear Business owner, I am a postgraduate student currently studying at Sheffield Hallam University in International Events and Conference Management. The focus of my dissertation is the impact of the Tramlines Festival on local business. I am partiality interested in examining Economic Impacts. I would be grateful if you could spend a few moments completing this short e-mail questionnaire. Please complete the questionnaire as a word document and attach it back to me. I appreciate your time and support. Sincerely, Yu Feng 1. Was your business actively involved with the Sheffield Tramlines Festival last year? Yes No 2.If Yes how was you business involved? 3.How many additional people did the Tramlines Festival attract to Sheffield last year? (Please tick) Less than 2,000 20,000-50,000 50,001-100,000 100,001- 300,000 More than 300,001 4. How did your business benefit financially/ economically from the staging of the Tramline Festival in Sheffield last year? Significant Increase in income Moderate Increase in income Income Same as usual Moderate Decrease in income Significant Decrease in income 5. Did you business receive any other benefits from the staging of Tramline Festival? (eg. Build your brand image) 6.Were you invaded as a sponsor or donor to the festival last year? Yes No 7. If No – Would you consider becoming a sponsor/donor in the future? Yes No 8. Did you employ any staffs specifically for the festival on a short term or long term contract? Yes No 9. Overall, do you feel that the Tramline Festival is a good thing for the city to host? Yes No 10. Other comments regarding the festival? . Read More