Rationale of the Study
According to Toon van Beeck and George Van Horn (senior analysts in IBISWorld), the wedding business is a key revenue contributor to a diverse mix of local businesses. Weddings are customized, and therefore not prone to efficiency, and they often occur on an irregular timeline.
In the face of rising demands for wedding planners, it is important to investigate one of the wedding businesses here in our country. While businesses normally experiences threats, the study was conducted to determine the solution of the business in responding to those threats. In lieu to that, this would help us researchers be cognizant to how a particular business operates and how they value customer relationships. Statement of the problem
The research study aims to answer the following questions:
1. Is the demand for Joyful Weddings’ services on the rise? 2. Does the Joyful Weddings offer services by which competitors in the same industry did not? 3. Would it be probably best to expand the number of branches of Joyful Wedding in other places outside Cebu?
Significance of the study
This study would give us profound and concentrated findings which would help us find the solution to our questions and develop conclusions and recommendations. Moreover, this study would be beneficial not only for Joyful Weddings but also to other wedding planner business.
Description of the Present Situation of the Industry
In the article entitled “Wedding Bells are Ringing” by Beeck and Horn, the authors believed that wedding is truly a big business and the wedding market remains a sizeable $47.2 Billion sector.
The IBISWorld (an Australian research company) identified seven core sectors within the wedding industry. These are reception, wedding attire, wedding rings, photography, flowers, wedding planners, and other. Each of the seven revenue sources has unique risks and key success factors.
According to IBISWorld, the reception accounts for the biggest expense generating an estimated 38% of total industry revenue ($17.94 billion in 2010). The reception sector can be broadly classified as the “accommodation and food services” division. Major costs associated with the reception include venue rental, food and beverages, food service and bartender, wedding cake, and hotel for the bride and groom.
The wedding attire sector incorporates the retail, rental, and personal services sectors. However, most of the category is related to the retail sector, where product and service substitutes abound. For this, customers are able to move easily from business to business in search of outfits and accessories. IBISWorld has identified the growth in cheap imports from China as one of the greatest threats to this industry. More men are purchasing these imports instead of renting their attire as the price difference between renting and buying diminishes. As a result, risks for the formal-wear industry have heightened over the past few years , something financial lenders need to be aware of if they intend to serve this sector.
The other two sectors, rings and flowers, also fall within the retail spectrum of industry analysis. For photography, it generates 45.5% of industry revenue. There are no obvious large players in this segment. Operators generally service specific geographic regions—from low-cost, part-time photographers to elite, high-end service providers. These businesses have low start-up costs and investment requirements, making them a successful lending proposition. They do not require a great deal of cash to finance their operations, which reduces lending risk. Wedding photography has been one of the fastest growing segments in the photography industry in recent years.
The “Other” sector which includes invitations, reply cards, rehearsal dinners, transportation and music and captures all the remaining items that a typical wedding includes. Some are more traditional purchases (invitations,...