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Munich Oktoberfest - Case Study Example

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The festival would have died immediately if it was not celebrated after Royal wedding- local entrepreneurs indirectly helped in maintaining the legacy of the festival. The…
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Munich Oktoberfest Case
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Munich Oktoberfest Case Answer The most prominent reason behind the success of Munich Oktoberfest is its continuity and consistency. The festival would have died immediately if it was not celebrated after Royal wedding- local entrepreneurs indirectly helped in maintaining the legacy of the festival. The celebrations continued ignoring all the external factors like World War II and outbreaks of cholera (Alcacer et. al, 2014). The official organizing committee has always been same- the City of Munich which again helped in maintaining a consistent quality for the event. The continuity of the festival allows for very little expenditure on marketing activities because everyone around the world knows that this festival takes place annually. Attractive expansion strategies like the introduction of carousels, shooting, bigger tents and music kept on strengthening the festival’s roots (Press Release, 2013). It is an opportunity of trade and business for many potential brewers and other service providers because of the high number of visits per year. Organizers grant licenses to beer tent and rides operators after stringent procedures. Thus, quality control and consistency of events have made Oktoberfest a successful event.
Answer 2
The City of Munich definitely makes money both by direct and indirect means. Direct means of money are the profits earned by conducting the event. For example, revenue generated from rents and royalties. The city has reduced all expenditures like marketing using innovative public relations strategies. It funds a poster making competition and the winning designs are used as official advertising. Such activities not only spread good word of mouth but also promote the event across borders attracting many tourists. Munich’s Tourism is indirectly benefited through this festival because once these tourists enter the city, they require accommodation, and they go for shopping spending approximately EUR 213 per day (Alcacer et. al, 2014). The city also enjoys high rates of employment during the festival in many departments such as health, police, airlines, hospitality, food and beverages (Behrmann & Suess, 2014). According to the case, an average server of the event is expected to earn EUR 5,400 which can go up to EUR 15, 000. Thus it is a money-making opportunity for all. The city and the local public are beneficiaries of the revenues earned by the Oktoberfest.
Answer 3
The case states that admission to tents is free of cost- if the organizers put a nominal entry fee into every tent, the profits would inflate tremendously. Moreover, the organizers can introduce non-alcoholic beverages to attract certain religious groups to boost the number of visitors. Although there are small kiosks for ice-cream, milkshakes, fruits and espresso, a large tent can be devoted to such drinks so that more people can visit it.
 
Answer 4
The success of Oktoberfest is not hidden. Many countries around the world try to imitate it but are not successful as the original event. Therefore, it is suggested that the city of Munich gets this event patented and allows other countries to imitate the festival after paying royalties to the official organizers. In return, the organizers can help in organizing the event in different countries ensuring authenticity and quality control. This strategy would eventually globalize the event because it would not be restricted to Munich and would occur internationally.
References
Alcacer. et. al, , ‘The Munich Oktoberfest: From Local Tradition to Global Capitalism,’ Harvard Business School
Behrmann. W & Suess.O, 2013, ‘Beer, and profits, on tap at Oktoberfest,’ The Record, Accessed on 6th November, 2014, < http://www.therecord.com/news-story/4871221-beer-and-profits-on-tap-at-oktoberfest/ > Press Release, 2013, ‘All about the Munich Oktoberfest,’ Landeshauptstadt München, Accessed on 6th November, 2014, Read More
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