In this assignment you will assume the role of the planner of a video game launch event who is in the process of developing the event budget. As with any business venture a proper budget is required to determine the costs associated with a project as well as how income will be generated. When developing an event budget it is most important to keep the goals, objectives and target audience needs and expectations top of mind. An event scenario, price listing and income streams have been provided with the assignment below.

Objectives:

• To explain the prioritization of expenses
• To identify appropriate revenue streams
• To calculate the break-even point and evaluate feasibility of ticket pricing
• To prepare an event budget

Step One: Research & Lesson

Attend and/or listen to the Week 3 GoToMeeting. The archive link is provided on FSO.

Textbook reading: The Complete Guide To Successful Event Planning
Chapter 6: Where is the Money?

Read this article: Checklist: 8 Budget Items You Can’t Afford to Overlook, Bizbash 

Read the “

Event Scenario

” section below 

Watch the Event Budgeting Lessons Below (Revenue, Expenses, Breaking Even)

Download the Budget Assignment Assets (Price listing, Excel Spreadsheets & Worksheet)

Event Scenario

Video Game Release: Shots Fired

Event EXPENSE budget: $7,500 (This is the cap for ALL expenses and cannot be exceeded.  Get as close to the $7,500 as possible without going over.) Please note that the event insurance and cost of games have already been allocated.

Length of event: 4 hours

Estimated total attendance: 300 (Participants will most likely come and go throughout the event.)

Estimated number of paying participants: 275

VIP attendance: 25 (Group #2- Refer to week 1 target audience breakdown. These individuals are not fans.)

Event Vision: Shots Fired is an eagerly anticipated, locally developed first person shooter video game that will be launched at local gaming facility.  Fans will have the opportunity to play specific features from the game and meet the developer.  In addition to being the first to receive the game with the ticket to attend, they will also leave with access to hidden levels that will only be available at the launch party.

Goals:  
To make a profit for a future Shots Fired tournament  
To generate exposure for the new game, Shots Fired  
To expand the current fan base of Shots Fired

Objectives:  
To make a profit of $3,500  
To increase the Facebook fan base by 120 fans between September 15 – November 12
To have two reviews written on well-known (1,000+ subscribers) gaming blogs

Target Audience:

Demographic description:  Hispanic and Caucasian men between the ages of 28-38 with an average household income of $85,000.

Psychographic description:  Working men with an affinity towards video games involving combat or hunting. They generally hold IT positions within companies and work regular business hours, however they are often on call after hours. Spare time is generally spent on the computer researching new games or home improvement projects. They would generally subscribe to, or visit websites similar to Game Informer, IGN or Game Stop.  They would also keep track of game industry events such as E3 or Blizzcon. They generally remain close to home at local pubs or restaurants.

Geographic description:  Most live on the outskirts of the city in a suburban area. They generally avoid traveling downtown, preferring to stick around their area of town for social gatherings.

Step Two: Instructions

1. Using the Price Listing provided, develop a workable budget for the video game launch based on the cost listings provided
   All expenses provided will not fit within the allotted budget.  It will be up to you to select specific expenses that would create an event to meet the goals and objectives as well as the expectations of the target audience.
   Revenue streams should be considered based on reaching the goals and objectives of the event in addition to what the target audience could afford and enjoy.
2. Complete the spreadsheet templates. The spreadsheet template includes three worksheets (expense, break-even & income)
3. Complete the EVM Budget Explanations Worksheet
4. Justify each of your selected budgeted line items using the worksheet. Be thorough in your responses and use research to support your decisions when necessary. This will be most important when justifying your marketing selections, merchandise options (if you choose to include merchandise), and ticket pricing.
   The target audience is provided to assist in making budgeting decisions.
   Use the following points as a guide for supporting your research and decisions.
   ⌾ Explain how your prioritized expenses support the goals and objectives of the event.
   ⌾ Explain how your prioritized expenses relate to the target audience and what their expectations would be for the event.
   ⌾ Use research to support the marketing mediums selected for the marketing campaign.
   ⌾ Use research into other gaming events and game pricing to support your ticket price.
   ⌾ If merchandise is included, then explain the merchandise selections based on the target audience and outside research.
   ⌾ If sponsorship is included, then provide an explanation of the companies that you would target and why, using research.
   Avoid: Restating the overview of the event or explaining why a planner prioritizes expenses.

Expenses

zeros may remain if you chose to not allocate funds to that particular expense. Follow the instructions in individual blue cells to properly complete the template.

Cost

0

$0.00

0

$0.00

0

50.00

$0.00

s

0

$0.00

0

$0.00

0

$0.00

0

$0.00

0

$0.00

0

$0.00

0 $0.85 $0.00

Invites (group 2 only) 0

$0.00

0 $0.55 $0.00

Thank you notes (group 2 only) 0 $0.55 $0.00

0

$0.00

Insurance 1

$250.00

enter “tier #” here 1 Insert a “0” or a selected amount from the cost sheet $0.00

s

0

$0.00

0 $1.00 $0.00

Posters 0 $2.00 $0.00

0 $5.00 $0.00

0 $1.00 $0.00

enter “tier #” here 0 Insert a “0” or a selected amount from the cost sheet $0.00

0 Insert a “0” or a selected amount from the cost sheet $0.00

enter “tier #” here or leave blank 0 Insert a “0” or a selected amount from the cost sheet $0.00

0 $2.00 $0.00

0

$0.00

0

$0.00

$0.00

$0.00

$1,800.00

$0.00

$2,551.00

Blue

Category

Item

Quantity

Unit Cost

Total

Social Media Ads

0

$0.50

$0.00

Industry specific pulication website banner ads

$2.00

Print publication

$200.00

Newspaper ad

$

1

Poster

$0.65

Flyers

$0.15

Invites (group 2 only)

$1.00

Save the date (group 2 only)

$0.85

Press Kits (group 2 only)

$3.65

Misc. Printing

Banners

$175.00

Thank you notes (group 2 only)

Postage

$0.55

Save the Date (group 2 only)

Entertainment

enter “tier #” here

Insert a “0” or a selected amount from the cost sheet

Insurance

$250.00

Venue

Merchandise

Game

300

$6.00

$1,800.00

Hat

$5.00

In-Game Downloadable Assets

Limited edition artwork

Electronic Ticketing

Ticketing fees

Audio Visual

Food

enter “tier #” here or leave blank

Beverage

Promotional Items

Lighters

Keychains

$1.50

Download cards

$0.12

Miscellaneous

Contingency percentage

$7,500

5% Tech Support: Tech Support: Currently set at 5%. This can be increased up to 10% based on your preference.

$375.00

Service charge

23%

Tax

7%

$126.00

Fixed Expenses

$2,551.00

Variable Expenses

Total Expenses

&”Verdana,Bold”Student Name:_x000D_USE FORMULAS TO CALUCALTE ALL CELLS_x000D_

Break-even calculations

$2,551.00

$0.00

Total Expenses

$2,551.00 $0.00

Total Expenses $2,551.00

$2,551.00 ÷ 275
Break-even Point =

Break-even Point Worksheet
Anticipated Number of Paying	Participants			275
Total Fixed Expenses
Total Variable Expenses
Total Fixed Costs	+	Total Variable Costs
	Break-even Point =	Total Costs		÷	Anticipated Number of Participants
$9.28	Ticket price per person to break-even.
*To adjust the break-even point change the highlighted numbers. This will help you evaluate adjustments to your budget or attendance.

Income

Item Quantity

Total

Reserves 1

$0.00

Participants

275

$0.00

Hat

$0.00

In-Game Downloadable Assets enter “0” or number that was budgeted in your expense budget $10.00 $0.00
Poster enter “0” or number that was budgeted in your expense budget

$0.00

enter “0” or number that was budgeted in your expense budget

$0.00

$0.00

Enter sponsor company name enter “0” or “1” enter monetary level of support $0.00

Enter sponsor company name enter “0” or “1” enter monetary level of support $0.00
Enter sponsor company name enter “0” or “1” enter monetary level of support $0.00

$0.00

Total Income $0.00

Total Expenses $2,551.00

$0.00

-$2,551.00

Income Category

Unit Price

Reserves

enter your reserve amount

Ticket (to include the game)

enter your ticket price

enter “0” or number that was budgeted in your expense budget

$10.00

$8.00

Artwork

$18.00

Sponsorship

Enter sponsor company name

enter “0” or “1”

enter monetary level of support

Total Income

Sub Total

-$2,551.00

Less Reserves

Total Profit

Budget Assignment: Price Listing

Expenses

Category Item Cost Notes

Tax & Service
Charge

7% / 23%

Marketing Social Media ads $0.50 each 200 quantity minimum

Industry specific publication
website banner ads

$2.00 each 200 quantity minimum

Advertisement in print publication $200 per ad

Newspaper ads $150 per ad

Posters $.65 per piece

Flyers $.15 per invite

Invites $1.00 per piece

Save the date $.85 per piece

Press Kits $3.65 per packet
(includes postage)

These would be sent to
media or group #2.
Individuals or social
media outlets would not
receive press releases.

Thank you notes $.85 per piece

Misc. Printing Banners $175 each To be hung at the event.

Postage Invites – Group #2
Save the dates – Group #2
Tickets
Thank you notes – Group #2

$.55 per piece

*not taxable

Entertainment Tier 1
Tier 2
Tier 3

$500 each
(best quality)
$250 each
(good quality)
$100 each
(decent quality)

*not taxable

Potential ideas:
– Band
– DJ
– Emcee
– Dress up characters

Insurance $250

Venue Tier 1 $2,000 – Space for 325 people
– VIP area
– Full security
– Sound
– Stage
– Technician
– Wifi included with full

bandwidth
– On-site concessions for

individual purchase

Tier 2 $1,000 – Space for 300 people
– An area that could be

blocked off for VIPs
– 1 door security guard
– Basic sound
– Technician
– Wifi included with full

bandwidth
– On-site concessions for
individual purchase

Tier 3 $500 – Space for 300 people
– 2 security guards
– Basic sound
– Stage
– Wifi is not included.

Additional cost of $200.

Merchandise Game $6.00 each This MUST be included
as an expense based
on the game being part
of the ticket price.

Hats $5.00 each 10-20% of the total
number of paying
participants is the
appropriate estimate for
total merchandise sales.

Use research to support
merchandise decisions.

In-Game Assets refer to
items that can be
purchased to use while
playing the game. Items
could vary, but the cost
would be consistent.

In-Game Downloadable Assets $1.00 each

Posters $2.00 each

Limited edition artwork $5.00 each

Electronic
Ticketing

Ticket processing fees $1.00 per ticket 275 tickets to be sold

Category Item Cost Notes

Income/Revenue Streams:

Audio Visual Tier 1 $1,000 – New gaming consoles
– Top sound equipment

– Microphones
– Technician

Tier 2 $500 – Mid level gaming
consoles

– Mid level sound
– Microphones
– Technician

Tier 3 $300 – Older model gaming
consoles

– Basic sound
enhancements

– Microphones
– Technician

Food Tier 1
Tier 2
Tier 3

$20.00 per person
$15.00 per person
$9.00 per person

Decision on F&B can be
based on VIPs only.
The quantity should show
at 25, 275 or 300 only.

Beverages Tier 1
Tier 2
Tier 3 (one beverage per person)

$20.00 per person
$12.00 per person
$6.00 per person

Decisions on F&B can be
based on VIPs only.
The quantity should show
at 25, 275 or 300 only.

Promotional Items Lighters $2.00 each These are free giveaways
to event participants.

Keychains $1.50 each

Download cards (Download to
exclusive content to play within
the game.)

$.12 each

Miscellaneous Contingency percentage 5-10% calculated on the total
expenses

Category Item Cost Notes
Category Item Cost Notes

Participants Tickets Based on your break-
even calculations

The break-even is not meant to be the
ticket price, it is meant to assist in
deciding on a ticket price.
Use research to support the final ticket
price.

Merchandise: Based
on the items that

DVD: $20.00 each 10-20% of the total number of paying
participants is a appropriate estimate for

on the items that
you choose to sell at
the event and are
included with the
expenses.

T-shirt: $15.00 each
participants is a appropriate estimate for
total merchandise sales.

Posters: $10.00 each

Artwork: $18.00 each

Sponsorship Monetary $150
$250
$500

If you choose to move forward with
sponsorship, you may use one or more of
the levels. Include names of the
companies that you would consider
approaching.

Reserves Between 50-80% Consider expenses that would be incurred
prior to ticket sales or sponsorship revenue
being received. Expenses to consider:
– marketing
– printing
– deposits to vendors and venue

Category Item Cost Notes

EVM – Budget Assignment Explanation

Name:

Expense Category		Item	Did you include this item into your budget? Yes or No		If yes, please give a thorough explanation as to why.
Marketing	Social Media ads (200 minimum) $.50 per impression
Industry specific publication website banner ads (200 minimum) $2.00 per impression
Advertisement in print publication $200 per ad
Newspaper ads $150 per ad
Posters $.65 per piece
Invites $1.00 per invite
Save the date $.85 per piece
Flyers or business cards $.15 per piece
Press Kits $.3.65 per packet
Thank you notes $.85 per piece
Misc. Printing	Banners $175 each
Postage	Invites – Group #2 only Save the dates – Group #2 only Thank you notes – Group #2 only $.47 per piece
Entertainment	Tier 1 = $1,000 Tier 2 = $500 Tier 3 = $250 Potential ideas: Band DJ Emcee Dress up character
Venue	Tier 1 = $2,000 Space for 325 people VIP area Full security Sound Stage Technician Wifi included with full bandwidth On-site concessions for individual purchase Tier 2 = $1,000 Space for 300 people An area that could be blocked off for VIPs 1 door security guard Basic sound Technician Wifi included with full bandwidth On-site concessions for individual purchase Tier 3 = $500 Space for 300 people 2 security guards Basic sound Stage Wifi is not included.  Additional cost of $200.
Merchandise 10-20% of the total number of paying participants is an appropriate estimate for total merchandise sales.	Hat $5.00 each
In-Game Downloadable Assets $1.00 each
Posters $2.00 each
Limited edition artwork $5.00 each
Electronic Ticketing Fees	Ticket processing fees $1.00 per ticket (275 tickets to be sold)
Audio Visual	Tier 1 = $1,000 New gaming consoles Top sound equipment Microphones Technician Tier 2 = $500 Mid level gaming consoles Mid level sound Microphones Technician Tier 3 – $300 Older model gaming consoles Basic sound enhancements Microphones Technician
Food	Tier 1 = $20.00 per person Tier 2 = $15.00 per person Tier 3 = $9.00 per person
Beverages	Tier 1 = $20.00 per person Tier 2 = $12.00 per person Tier 3 = $6.00 per person
Promotional Items	Lighters $2.00 each
Keychains $1.50 each
Download cards $.12 each
Miscellaneous	Contingency percentage: 5-10%

Item

If yes, please give a thorough explanation as to why.

Income/Revenue Stream Category	Did you include this item as a revenue stream? Yes or No
Participants	Tickets How did you determine your final ticket price?
Merchandise: Based on the items that you choose to sell at the event and are included with the expenses. 10-20% of the total number of paying participants is an appropriate estimate for total merchandise sales.	Hat:  $10.00 each
In-Game Downloadable Assets: $ 10.00 each
Posters: $8.00 each
Artwork: $18.00 each
Sponsorship	Monetary tier options: $150 $250 $500
Reserves	Between 50-80% Explain how you arrived at the percentage that you did in your budget.