Recommendations for JJ Rossy Bar Problems - Essay Example

? Peddler’s Pub & JJ Rossy’s Report Table of Contents Contents Page Executive Summary…………………………………………..3 2. Problem ment……………………………………………4 3. Data Analysis…………………………………………………4 4. Key Decision Criteria…………………………………………5 5. Alternative Analysis…………………………………………..6 6. Recommendations…………………………………………….7 7. Action and Implementation Plan……………………………...8 8. References……………………………………………………..9 Abstract JJ Rossy’s is struggling with the problem of being a bar in a college city that is densely populated. As a bar in the downtown part of Halifax, it caters to students from the local University. JJ Rossy’s faces competition from nightclubs and bars that are within a walking distance. Even though, JJ Rossy’s and Peddler’s, which is its sister bar, are run under similar systems of inventory, JJ Rossy’s has been unable to keep a clientele that is profitable akin to what Peddler has been able to do. The management also needs to come up with a way to stabilize the sales in the bar. The paper gives five alternatives that they can use including downsizing, diversification, modernizing, or a combination of diversification and modernizing. The paper then offers recommendations for JJ Rossy’s problems, as well as an action plan for implementation of these recommendations. Problem Statement Immediate problem: Different from Peddler’s, JJ Rossy’s has unstable sales and is unable to attract profitable clientele consistently. Primary problem: Rossy’s management has not altered its concept of marketing since it was launched. The management has failed in modifying business strategy in order to incorporate the city’s demographics and industry trends. Secondary problem: They have an unattractive decor, unfocused menu, inefficient space use, and poor allocation of traffic. Tertiary problem: Reduced employee performance and morale, in addition to, employees’ job loss. Data Analysis It has been evident from the start that JJ Rossy’s has committed significant errors in marketing. While the bar was launched in 1987, it has been run under the assumption that clients will always drink wherever there is entertainment and liquor. The lack of a strategy in marketing that seeks to take advantage of the city’s demographics, consumer psychology, and industry trends, tying it to their layout and capacity. Although the Rossys run both Peddlers and Rossy’s using similar inventory systems and suppliers, Peddlers have sales with more stability. They possess a profitable and loyal client base with all its operations run on the same floor, which makes interactions on an every day basis much easier. They also have a basic strategy in marketing aided by its smaller scale, organized operations, and efficient layout that assures patrons that they can attain straightforward entertainment and quality service every time. JJ Rossy’s, however, cannot profit from a similar concept alone. Since it has three floors and sits 1050 clients, its losses are higher in comparison to a bar that operates on a smaller scale during peak traffic periods when clients are slow in entering. Additionally, while the clients can visit a bar to take lunch, there is less audience during the day on the dance floor, making for inefficient management and bar space utilization. Another reason that makes it essential for JJ Rossy’s to sell more than basic entertainment and liquor is its target audience. Students fill the downtown area looking for the newest trendy joint. JJ Rossy’s bar size is a factor in their favor with students interacting with more people and willing to come back. JJ Rossy’s has the highest capacity for bars targeting those under 25, yet the uninvitingly dark decor is not impressive to them. If not for the dance floor on the upper level, the bar would be deserted at night. However, there is still frustration for the students as they wait to get to the upper floor in line since the rest of the floors are not occupied. This makes the atmosphere excruciating and dull. With more hip pubs and bars around JJ Rossy’s, students have no incentive to flock there. Students are looking for groundbreaking and modern entertainment that makes their hard-earned money worthwhile. Key Decision Criteria Since the students attend school during the day and go home during the summer holidays, they have to look for ways of attracting other demographic groups to the bar. The remaining segments include tourists, families, the military, and professionals. Unlike the students, they are not interested in collegiate style and cheap food. Having established themselves in their careers, they can afford a good experience. They search for the same consistency, service, and quality that are offered at a bar like Peddlers. Other problems that are less obvious include the impact of fluctuations in sales on human resource, including; reduced performance, job loss, and a decrease in morale. The decision taken by the management needs to, therefore, establish a more profitable and loyal client base, decrease fluctuations in sales, maintain the morale of employees, and effectively use the space in the building. Alternative Analysis The situation that JJ Rossy’s is in has three obvious alternatives. One, they could continue running the bar as they do now in the hope that clientele opinion regarding them will change dramatically. This is the worst of the alternatives since not doing anything will ultimately confiscate problems or opportunity’s existence. Depending on the confidence, which the management has concerning layout and size of the building against filling capacity potential, they could downsize the operations with only the first floor being in operation with the second floor leased to tenants. While this is cost effective, distractions from the bar below might drive away tenants. In turn, this might run through any savings they may have made through closing second floor operations. Additionally, downsizing the bar could lead to loss of jobs, as well as lowering of morale in the establishment. A third alternative that they could adopt would be the attraction of more diverse clientele through offering a menu that is more sophisticated, as well as a karaoke bar on the first floor while also leasing, for a day, the dance floor. This is expected to attract more military personnel and professionals at lunchtime. In addition, it will lure more tourists and families in the five to seven peak periods and break up the nightline up for the dance. However, students will still not favor the bar for its simple entertainment and old-fashioned decor. Yet another alternative is to make the bar more modern while also boosting its reputation using new light and sound systems, a new interior, and entertainment that is more attractive. While student clientele will increase, the lower level will remain unoccupied. As the bar will still be unable to attract increased clientele in the daytime, JJ Rossy’s building will still not have clients until the evening, making it more expensive. The fifth alternative involves combining the third and fourth alternative, which requires careful planning and more investment. However, it gives JJ Rossy’s a bigger opportunity to attain its full potential. The bar is already famous for competitive alcohol prices, as well as operations that are outstanding. The fact that JJ Rossy’s is the largest bar in downtown Halifax will encourage the management to take advantage of the size. There is no other bar in the vicinity that can hold as many patrons and be as profitable as they are. Therefore, this is their best alternative. Recommendations To begin with, the Ross brothers need to revise their plan for marketing JJ Rossy’s. The area is small with bars within walking distance while hotels, military bases, and Universities are close. This proximity should allow clients to make a comparison on their choices for entertainment. Therefore, they should make the bar appear unique than the competition (Pride, 2012). After this, they should establish what these other bars have to establish the local standards required and seek to improve on them. The Ross brothers must also work closely with a professional who specializes in club and bar promotion. In addition, they should also research on what seasons cater to a specific market segment (Pride, 2012). They could also offer a schedule that caters to specific target clients such as old school Friday and New jack Tuesdays. The management could also modify the menu at the bar through offering foods that are more sophisticated, and geared towards professionals. Finally, they could also get employees involved in the process of marketing through having them distribute flyers to businesses and Universities. Action and Implementation Plan In the short term, the management needs to connect with reliable bands, local DJ’s, and entertainment companies. A regular live music schedule should also be established, with local talent searches, to save on costs. In the long term, they should also hire a contractor to give the dance room a modern feel and renovate the building, as well as add new sound and light systems and TVs. To aid in the financing of the renovation, they should use the profits on short term and immediate plans (Pride, 2012). If the chosen decisions, as well as implementations, do not yield satisfactory results, they should terminate the bar business after profiting from the Christmas period, which is comparably busy as a fiscal period. They will then liquidate the equipment, bar furniture, and inventory stock, as well as sell the building. Sales proceeds should go to expansion of Peddlers or a new venue. References Pride, William. (2012). Marketing. Mason : South-Western Cengage Learning. Read More