Sylvias Bar - Business Plan Example

Sylvia’s Bar Table of Content Executive Summary 2 Research Objective 3 Research Methodology 3 Study Findings 4 Qualitative Analysis 4 Quantitative Analysis 5 Conclusion 6 Recommendation 6 References 8 Appendix 10 Executive Summary This is a business analysis report of a Sylvia’s Bar which is a street bar cum night club located at the High Street in Birmingham. In 1986, the classical wine and cocktail bar was established by Sylvia Jones with an aim to provide entertainment to the local bank workers. Initially the bar was so popular that it used to have a healthy turnover. But since last couple of years it has been incurring losses and becoming less popular day by day. This study has shown the current business scenario of the bar which provides how the pain points of this business are negatively helping it to occurring losses over the years. This analysis also provides the recommendations by which it might restructure its business strategies so that it can turn around from old traditional culture and provides services which match with the test and preferences of the young generations. Research Objective The purpose of study of the current business practice of Sylvia’s Bar has some objectives. These core objectives are to find out the likely wrong business practices which negatively catalysing the business for making losses over the years and recommend possible solutions which might help to turn around the business in a profit making positions. Research Methodology This business analysis of Sylvia’s Bar is based on primary research and as well as some secondary research also. The main key findings of problems came out by questioning the customers (Appendix 1.1) of the bar and the staffs (Appendix 1.2) as well. Generally questionnaire is made by a list of questions and the same questions to the targeted samples. But here, different questions are asked to different customers who used to come earlier but not now. The feedback was taken from current and earlier customers in different parameters like Age, Profession, Choice of clothing’s etc. This research was made on both qualitative and quantitative analysis. To analyse the feedback of questionnaire, qualitative research method and for the numbers like the price of the product and services Silvia’s offer is compared with the local competitors who generally have strategy of regular price, more customers. The feedbacks of the customers and the staffs have shown that the bar’s business strategy doesn’t follow the trend of people’s lifestyle and choices. Study Findings Qualitative Analysis Local market survey shows that like Silvia’s bar, many late night bars have opened on that high road of Birmingham like grass flower in the rainy season. They provide entertainment to their customer based on their choices and preferences and follow the trend of changes in customer’s choices. Sylvia’s was established in 1986 targeting the local bank employees and serviced offered at that time according to their choices and preferences and this is why it was so popular in its childhood. Not only this, Sylvia’s bar was only late night bar on the high street which opened after 11pm, and for this reason people from local pubs, who want to spare more time, used to come there as those pubs used to close at 11pm. But, now a days, this area is not that much popular and many younger prefer the fashionable Canal district for weekend night outs. This segment of people doesn’t have 80s or 90s mentality, lifestyles, choice of relaxation. Now trend has been changed and people like to relax in weekend nights in crowdie nightclubs with group of friends and colleagues where they will be provided regular priced dishes, wines, cocktails etc with remix tracks by popular DJs rather than like to spend the time of their relaxation in a silences environment especially in a bar where old classical songs and premium priced dishes and cocktails are available. The business strategies of Sylvia’s might work in a pores city like London where many community of traditional, classy people are there who generally prefer this type of relaxation environment and services in the weekend nights which Sylvia’s provide. That is why one of the earlier customers of Sylvia’s bar said “We lives in Birmingham, not in London”. Quantitative Analysis Qualitative analysis was done from the survey of local government for the popularity and crowdedness of this location by tracking the trading time and the amount of trade in this location. It shows that since 1965, night trade has been fallen down from 35% to 23%. Sylvia’s was established with a high class target people and represents it as an exclusive wine and cocktail bar. She concentrated on the premium product only like imported wines from around the World with a high price of £250 per bottle and £45 per glass. In the food category, dishes are very expensive with a price range of £23 for main general dishes to £35 for elaborate customised recipes. At recent time fallen demand of this high priced food have been resulting throwing away the unsold dishes very often which costs it near about £352 in every month. The evening entertainment is not free with the high priced foods and drinks which generally a free service which others bar in that location offer. Even cost of this also expensive with a price of £10 per person which any add on should not have. This extra charges because the “Razzle Dazzle” band is not at popular but charges £100 per night which has been not covered recently because of the average crowd of only 100 to 150. Now, the staffing part, Sylvia’s have been using bar staff that have completed the course of bar work from South Birmingham College and charge £12 per hour as their payment which contributes more to its operational cost. Not only this, two friend of Sylvia’s work as manager and also charge as high as £20 per hour. Conclusion Sylvia’s has been operating business with the old strategies which it adopted at the time of its establishment became successful. The trends of people’s choice and preferences have been changing over the years but the bar has been following the same strategy and targeting the same clients although the demographic segmentation of this late night bar market has been changed. As the popularity and crowdedness of the location has been fallen down, so it can change its location for a broader decision or can re-segment itself as a regular bar to the consumer mind by cutting the prices rather than being exclusive. Recommendation The qualitative and quantitative analysis of primary research has shown that Sylvia’s Bar has been following likely wrong business practices which don’t matches the new trend of the customer’s choice and preferences. It can be recommended to make changes in the following different areas of its business. Price of the product and services At the time of its establishment, Sylvia’s targeted the rich high classical people especially the local bank employees. The study of the market of Birmingham has shown that maximum customers of the local bar and night clubs are younger who does not like this type of classical environment of bar or night club. So, Sylvia has to change the target customers from high class middle age or old professional to younger and she needs to offer products and services which matches their choices and preferences like availability of regular priced wines, cocktails etc not only the imported and top of the market priced drinks. In case of food, there has been a broad mistake. Sylvia’s is known as late night bar not the exclusive restaurant where people come with family in the weekend or to celebrate of any of the yearly important of person. Generally, in late night bar people don’t like to have heavy food of very high price. People come to this type of bar for only the drinks and entertainment like band performance or popular DJs. On the other, people will not prefer to have launch in a bar like Sylvia’s as it represents itself as a late night bar. S, the food part of its business need to have minor priority as it positioned itself in a different sense in people’s mind. Evening entertainment The “Razzle Dazzle” band is not at all popular which charges £1200 per night which is likely worthless in its popularity. So, it is to recommend that Sylvia’s need to change this band and can bring new band or popular DJs with less charges which will be the key attraction points of the bar to the younger and this can minimise the operation cost and also increase customer base. Staffing Sylvia’s need to recruit new experienced staff from the local pubs with a comparatively little high price and trained them to create differentiation in service rather than using theoretically trained people from South Birmingham College with charges. It will help to minimise Turn-Around Time by the experienced workers and also help to minimise the total wages. Competition At the time of birth Sylvia’s was only the late night bar in that location and it didn’t face any competition long years after the establishment. But now many local bar and pubs came out who provides foods and drinks in very cheap price. It is to recommend that Sylvia’s should enter into the price war with them as it can damage the old brand image which it has but it should concentrate on the customer relationship to attract more younger and retain back the previous clients because customer relation always help a company to retain its customer and to compete with other players in a particular market. References Kumar, R. (2005). Research methodology. SAGE Publication India Pvt. Ltd. ISU, Department of Economics. (2011). Retail Trade Analysis Report Fiscal Year 201. [Pdf]. Available at: http://www.recap.iastate.edu/retail/files/retail_1906625.pdf. [Accessed on March 13, 2012]. Appendix Read More