Marketing Plan for Dog and Duck Bar - Research Paper Example

Marketing Plan for Dog and Duck Bar I. Executive Summary This marketing plan was designed for Dog and Duck Bar which is a small, cozy, family owned a picturesque pub with a reputation for good food and real ales on the outskirts of Ambleside in the Lake District. In addition to the music and the upscale atmosphere, DDB’s have moved to the food side of the business ‘up market’. This plan outlines in the following pages, a renewed vision and strategic focus of what it will take to run a successful and profitable club and restaurant with an elite atmosphere with exquisite menu. DDB’s strategic decision to locate the second business outlet in Ambleside is also a real asset to the marketing mix for it was once a gift shop. A careful evaluation of the weekly customer flow and entertainment schedule served as the foundation for this analysis and the following marketing plan. The demographics of the target markets are somewhat varied and the customer attendance is unpredictable, but research indicates that bistro clientele are extremely loyal. The plan focuses on DDB's future growth strategy in: increasing public awareness, developing and maintaining customer loyalty, improving the acoustic and functional design of the interior, maximizing future profits by promoting the bistro within its specific niche market, and emphasizing the bistro's superiority in the live entertainment music market and restaurant. Because DDB’s promotional budget is rather limited, free exposure like press releases and emails will be sent out on a regular basis to announce the entertainment schedule and cooperative advertising will be pursued for all future print media. A part-time marketing director will be hired to assist the owners with creating ad layout and content, as well as helping with public relations. Because DDB's has relatively weak marketing and financial resources, it has relied heavily on extensive word-of-mouth advertising. Fortunately, this approach has helped to achieve a limited degree of success thus far in the club’s existence, but this method will not achieve the type of profit margin the owners are hoping to obtain or sustain any type of business for very long. In the meantime, the employees will have to make a major effort to ensure that once they gain new customers, that they don’t lose them by consistently delivering quality products and services at competitive prices. To obtain repeat business from loyal customers, DDB’s must work hard to establish long-term relationships with its clientele. II. Environmental Analysis Founded as a picturesque pub with a reputation for good food, DDB's opening for business has emerged as Ambleside's newest music venue offering live jazz music. John estimates that with some structural alteration the shop could be converted to a restaurant accommodating 40 ‘covers’ spread over two floors at a cost of around £35000. Inquiries via the Estate Agent indicate that the present owners would not allow a tenant to make structural alterations to the building but the owners may be prepared to sell for a price of £325000. A. The Marketing Environment 1. Competitive Forces The competition in the nightclub and lounge industries is rather weak on a local basis in Ambleside, Lake District, but somewhat stronger on a regional and national basis. There are currently twenty-two bistros listed in the Cumbria, Lake District yellow pages but only one of those other clubs offers weekly live jazz entertainment. This void gives DDB’s a natural competitive advantage. However, taking the music and the entertainment out of the equation, the local bar competition is much stronger, as there are numerous lounges, bars, and pubs with a variety of atmospheres. 2. Economic Forces Worldwide, the nightclub market has dramatically changed in recent years, with entertainment budgets being cut at many venues that previously offered quality live music. As a result of this pay reduction, entertainers have been forced to pre-record part or all of their performances and eliminate musicians. In addition, the rise in popularity of Karaoke Bars has also negatively affected the amount of money spent to hire live musicians because hiring a DJ to entertain a club is cheaper than hiring a live band. And finally, many companies nationwide have reduced their general overall budgets in anticipation of the recession that seems imminent in our economy. 3. Political Forces There are no expected political influences or events that could affect the operation of BGD's at this time. 4. Legal and Regulatory Forces DDB's business license renewal is also critical to the success of the club. Other considerations which could affect DDB's future are the strict zoning laws of Ambleside. This type of historic area is typically difficult with regards to building permits and all of the various city codes that need to be adhered to. 5. Technological Forces There are not many technological trends or technologies to be utilized in a small bistro of this size other than the maintenance and operation of the club's internal sound system, overhead lighting, heating and cooling system. 6. Sociocultural Forces In today's modern culture, many jazz music fans come to bistro's for the music first, the good food second, and the atmosphere and clientele third. Most popular in the 1940's and 1950's, jazz music in the last decade has had a resurgence especially with the younger generation. It is now considered ‘cool and hip’ to listen to acoustic jazz and this original American artform exemplifies intellectual sophistication and style for people of all ages and genders. B. Target Market(s) DDB's has effectively implemented a ‘niche market’ strategy in a somewhat diverse marketplace by focusing on live acoustic jazz entertainment, coupled with a classy atmosphere and extensive good food. DDB's has separated itself from other establishments offering similar products and services through its unique choice of musical style, interior decor, and its artsy location. DDB's ability to differentiate itself from other local bistros has contributed to a successful soft opening and a steady stream of regular customers. Its target market consists of middle class, upper middle class, and upper class patrons that dress nicely wearing appropriate evening attire. Even though the club is relatively small in size cigarette smoking is permitted. Pipe and cigar smoking is also allowed but only on specific nights. The principal image concept of DDB’s marketing approach is to specifically attract the market segment that likes traditional acoustic jazz. Another identifiable concept of the bistro is the fact that many people come to just listen to the music, paying full attention to the artistry of the performers, rather than talking over them, which distinguishes and classifies the jazz club as a real 'listening room.' C. Current Marketing Objectives DDB’s has marketed itself primarily on a word-of-mouth basis, but just recently negotiated a weekly agreement to be displayed in the Local Paper. A black and white flyer has also been mailed out to merchants in Lake District and Cumbria. Inside the club there are tabletop menus. Flyers have also recently been placed at two Lake District tourist centers and local hotels. DDB’s will also be included in the newest version of the Lake District Yellow page directory, which is due to be released this month. In addition, a whiteboard at the entrance of the club shows weekly drink specials and promotions. III. SWOT Analysis A. Strengths DDB’s product and service differentiation strategy is the result of a strong marketing focus on the jazz club being authentic with a classy ambience. This strategy enables the club to deliver a sophisticated listening experience and good food to its customers. The combination of providing live entertainment six nights a week and exclusively offering traditional jazz music has enabled DDB’s to attract exactly the type of clientele that it prefers. The monthly overhead is controlled through cost reduction methods like word-of-mouth advertising, a small two person staff, sharing expenses of the liquor license, and a debt-free financial position. The prime location of the club is also an asset, situated directly in the outskirts of Lake District. As a result, a significant amount of drive-by business is generated from the general traffic of this busy business district. B. Weaknesses Perhaps the biggest weakness of the club overall the limited advertising budget that prevented the bistro from being discovered by many potential new customers. One other general weakness of the club is its’ poor acoustics. Due to the parallel placement of the brick walls and windows, and the lack of any absorptive material (i.e. drapes, thick carpet, sound foam, etc.), the sound emanating from the stage is reflected in all directions and bounces around the audience with no where to escape. As a result, the customer has to talk loudly to comfortably converse and the band has to play louder to be heard over the audience. The listener should optimally have the option to sit away from the band and be able to talk softly and still hear the band without raising their voice. Another problem with the layout of the small club (maximum occupancy = forty-four people) is the fact that there is only one unisex bathroom. There is often a waiting line to use the rest facility, which blocks the waitress’ access to the bar as well as the entrance to the club. The small interior also makes it difficult to have a real piano, which many critics consider a pre-requisite to being classified as a real jazz club. In addition, the club is closed every Sunday, which is typically a popular night for similar local businesses. Another minor weakness is that the house sound system controls and CD player are located next to the band and can only be operated from the stage, which looks awkward and cumbersome. C. Opportunities Jazz music has grown in popularity in recent years with a significant increase in worldwide CD sales and internet downloads. This has helped lead to the proliferation of jazz superstars, like Wynton Marsalis and Kenny G, who have helped bring this once “unpopular” type of music to the masses. The potential for DDB’s business growth is promising when one considers this major change in our culture’s musical taste. D. Threats Competition from other bistros opening in the area is a very real possibility, but they would not likely compete directly with a jazz club’s business. Other local nightclubs in the area that do offer live entertainment, offer different musical styles that would not affect DDB’s customer base. However, the incredible success of Karoake bars has negatively affected the business of some entertainment night clubs. The clientele that seek out jazz music will always prefer “professional live music” rather than to have it pre-recorded or performed by amateurs, so Karoake will not likely have a major impact or be seen as a threat. E. Matching Strengths to Opportunities By forming an alliance with ‘jazz-friendly’ organizations and jazz radio stations, DDB’s could quickly enhance it’s public exposure through direct association with members of these organizations. Becoming a corporate sponsor of local jazz festivals would also be a wonderful opportunity to introduce the nightclub to thousands of potential jazz fans. The best selling products at DDB’s are the exquisite menus. Clearly, good food is the bistro's main revenue and they should be watched carefully because of the potential profit that can be made. F. Converting Weaknesses & Threats DDB’s should eventually consider expanding the size of the club and adding another bathroom if the business is to grow. Many potential customers might not come back for a second visit after being turned away on the busy weekend nights due to a lack of seating. It is unlikely that another bistro will open in the same area, but if one did, and it provided more space for the musicians and the audience it could be considered a competitive threat. IV. Marketing Objectives DDB’s is in business to sell exquisite food to its customers while they listen to live jazz music. Besides developing and initiating a marketing-oriented and customer focused mission statement, DDB’s should establish an objective to: • Achieve continued steady growth of its customer base • Increase the advertising and entertainment budgets • Improve its image and exposure to the public through the consistent use of its logo and sale of novelty items • Increase total sales by 20% by the end of the fiscal year To accomplish its marketing objectives, DDB’s should develop benchmarks to measure its progress. Regular reviews of these objectives will provide feedback and possible corrective actions on a timely basis. The major marketing objective is to gain a better understanding of how to better satisfy the customer’s needs. Since the club’s opening, occupancy on weeknights has remained low. Friday and Saturday nights are consistently jam-packed and should be examined further. There must be a concerted effort on attracting more customers during the week. Another objective is to analyze other bistros and learn what marketing strategies work best for them to attract business during the week. We must learn from their successes and failures and incorporate the best new ideas into the marketing mix. V. Marketing Strategies Target Market(s) Exact definitions of these market segments are not necessary for our marketing planning purposes here; general descriptions will suffice. On average, there is a 70-30 percentage ratio of couples to singles and the main audience is the working professional in the middle to upper thirties. Target Market 1: Adult jazz music enthusiasts (age 21-65) who enjoy listening to live music in an intimate cozy setting. Target Market 2: Middle to upper class working professionals, (sometimes referred to as “yuppies”) who want to unwind with a drink and/or appetizer after work and avoid the typical crowded and loud happy-hour setting. Target Market 3: Married or dating couples that want a dark and romantic venue for an ‘after dinner’ drink or cocktail after eating dinner, attending a movie, concert, or theatrical production. B. Marketing Mix 1. Products and Services DDB’s markets not only a continental exquisite menu and finger-food type appetizers, but also live music entertainment to its customers. DDB’s intangible attributes are its ability to meet or exceed its customers’ desire for quality live music six nights a week, and its on-going commitment to entertain in an art form we call Jazz. These attributes are difficult for competitors to copy, thereby giving DDB’s a competitive advantage in the limited niche market that it exists in. Based on the decor and dress code, DDB’s is striving to portray an upscale image to attract upscale customers who expect superior service. However, many customers have complained about how long it takes to order a drink and the difficulty in getting prompt refills. 2. Price DDB’s provides a quality eating, listening, and drinking experience in a clean and comfortable environment. The atmosphere is authentic, reminiscent of a larger big city club. The value of their products and service is reflected in their medium prices, which are competitive and reasonable. As a result, the prices are in line with their upscale image. Admission during the week is free, with a small cover charge during the weekends. 3. Distribution DDB’s products and services must be experienced in person and cannot be shipped or enjoyed outside of the bistro, other than the occasional live recording of the music played there, which will be released on CD and distributed in the club and off of the website. 4. Promotion DDB’s cannot survive or flourish just waiting for customers to come to it. Instead, DDB’s must get better at focusing on the specific market segments whose needs and desires match the club’s offerings. Since the bulk of DDB’s advertising has been word-of-mouth and free local newspaper entertainment calendars, future promotional expenditures should focus specifically on: • Print media display advertising • Establishing a presence on the internet • Custom novelty items (i.e. clothing) • Advertising in specialty publications and trade journals (i.e. A.F.M.-musicians union and jazz society newsletters, etc.) VI. Marketing Implementation A. Marketing Organization Because DDB’s customer groups are so similar, for the purposes of this analysis, we will focus on all three target markets together as a whole. DDB’s future marketing efforts will be organized to be more professional, creative, and flexible in introducing the club to the community. These new approaches will attempt to overcome the current lack of diversification in the products and services offered. Also, this new marketing approach will give DDB’s a better opportunity to monitor the activities of its competitors. B. Activities, Responsibility, and Timetables for Completion All implementation activities are to begin at the start of the next fiscal year on January 1, 2007. Unless specified, all activities are the responsibility of DDB’s primary owner and manager, John Jenkins. • A part-time marketing director will be hired the first week in January to manage marketing activities, media exposure, and public relations. This person will preferably be a college student or intern with desktop publishing and internet experience. • DDB’s should immediately offer to host a jazz society concert and stay open an extra day to accommodate the Sunday performance. • Creative flyers should be printed by the end of January and distributed bimonthly at local colleges, music stores, and record stores. In addition, a full-color brochure should be designed to display the menu items and photographs of the interior. This brochure will be mailed to individuals who ask for more information over the phone or from email inquiries. • On January 1, a major print media campaign will be launched that will include local newspapers, magazines, newsletters, and trade publications that will run for 90 days continuously. At the end of the second fiscal quarter, profit and loss results will be compared to the first quarter and the differences documented. DDB’s will take advantage of any cooperative advertising opportunities and adjust the remaining promotional budget for the third quarter based on the analysis of these results. • Custom novelty items like bumper stickers, shot glasses, mugs, matchboxes, and hats will immediately be printed up and on sale at the club and off of the website. • Business Cards will be designed and printed immediately. They will occasionally be used as an alternative vehicle to generate customers by offering free admission and free drinks on an as needed basis. • By the beginning of the 2nd quarter after the initial print media campaign is concluded, a “jam- night” for aspiring musicians to “sit-in” and play a song or two will be established on the slowest night of the week. • An email sign-up sheet will be posted immediately in the club for customers that would like to be added to the mailing list. Entertainment schedules, drink specials, and other local jazz music events will be sent out on a regular basis (to be determined by the marketing director). • By the 3rdfiscal quarter, jazz radio stations like and their DJ’s will be approached for ‘paid plugs’ and press releases to be read over the air. Radio is an extremely powerful medium and by targeting those specific stations, DDB’s name will be exposed to thousands of potential customers. Sponsoring or co-hosting a jazz show is another possibility. • By the beginning of the 3rd quarter, an announcement will be made that DDB’s will be sponsoring a compilation jazz CD project containing some of the best jazz musicians that have played at the club. The project will take six months to complete and be offered for sale at the club. • By the 4th fiscal quarter, DDB’s should become a corporate sponsor of a jazz festival. Hosting an outdoor charity jazz event in the Lake District is also another strategy for DDB’s to pursue during the Spring. • On the anniversary date of the club opening, a large party will be thrown featuring a regional artist who will attract local media attention. VII. Evaluation & Control B. Monitoring Procedures To analyze the effectiveness of DDB’s marketing plan, it is necessary to compare its actual performance with plan objectives. To facilitate this analysis, monitoring procedures should be developed for the various activities required to bring the marketing plan to fruition. These procedures include, but are not limited to, the following: • A project management concept will be used to evaluate the implementation of the marketing plan by establishing time requirements, promotional materials and financial or budgetary expenditures. • A perpetual comparison of actual and planned activities will be conducted on a monthly basis for the first year and on a quarterly basis after the initial implementation phase. The marketing director will report his or her comparison of actual and planned outcomes directly to the owners. Read More