Marketing for XYZ Nightclub - Business Plan Example

Nightclub Marketing Plan Executive Summary XYZ Nightclub will be characterized by sufficient energy, and will provide people with dance opportunities so as to enable people in Fort Worth, Texas to realize maximum enjoyment. Since competition is growing at a rapid pace, especially in the Bar and Restaurant industry, XYZ Nightclub will focus on staying ahead our competitors by providing our customers with exemplary services. Most people who visit clubs do so in search of fun. As a result, XYZ Nightclub will embark on initiatives that will allow our clients to realize sufficient fun once they visit our premises. In todays world, technology is progressing at a rapid pace, especially with respect to audio and video. XYZ will take advantage of this opportunity and provide our clients with high-energy sound and more video to ensure that they remain entertained throughout their stay in the premises. Additionally, since the guests who visit the premises are busy and tired, and wish to relax themselves, the company will provide them with a simple yet unique menu, which we believe will allow the locals and tourists to experience a sense of belonging(Voth, 2008). Company Description XYZ Nightclub will be characterized by dance and entertainment, unique features in terms of design, offer high quality food, among other exceptional services. XYZ Nightclub will lay emphasis on themes that have significant appeal to members of the public. It will comprise of a well elaborated dance club, which will be situated in a manner that can accommodate around 450 guests. This area will also comprise of four private sky boxes that can be merged and offer a private party or conference setting. This room has been specifically designed to facilitate for daily and special events. The adjacent bar and dining room will offer our customers with an inviting and relaxing atmosphere, which will be characterized by an assortment of musical and dance collectables. The dj is endowed with the role of offering live coordination to the events and provide the patrons with games and music entertainment during the time when the music breaks (Voth, 2008). It is not possible for XYZ Nightclub to realize its objectives without laying significant emphasis to the level of food quality that it will offer its guests. As such, the guests will be provided with simple menus that offer foods which are similar to those that will be availed at a premier venue. The guests will also be provided with appetizers that are mostly found in traditional bars, such as wings, nachos or quesadillas when they enjoy themselves while drinking (Voth, 2008). Moreover, in order for XYZ Nightclub to sustain an exceptional image quality, it will provide its guests with friendly and attentive service by ensuring that it has an adequate number of service people to address the needs of the customers. In addition, the managers of XYZ Nightclub will invest in supervising as well as preparing employees in terms of delivering the appropriate services to the customers (Helga, 2014). Strategic Focus and Plan Mission/Vision Statements XYZ Nightclub aims at fostering fun, security and control to its guests, by catering for the needs of young people at Fort Worth and the surrounding regions. It also provides clients with an environment to socialize and meet new people (Helga, 2014). Goals a. To provide our guests with outstanding services that will leave a lasting impression on them b. To offer a consistent atmosphere that will be characterized by entertainment and exceptional product quality c. Embark on managing the company’s finances in a precise manner to facilitate for upward growth in capital d. To engage in strict control of all operating costs, and at all times without leaving room for any exceptions. Core Competency and Sustainable Competitive Advantage In order for an organization to realize a competitive advantage in the market, it is supposed to have a core competency area, which can allow it to remain unique in the market. For instance, one of the major ways is offering clients with exceptional services. In this case, XYZ Nightclub will be embarking on training its employees every two months in order to ensure that they remain to the needs of the guests, and offer them with outstanding services. In this perspective, the employees will be trained on managerial positions as well as how to offer exemplary services to clients (Voth, 2008). Also, it is appropriate to provide employees with recognition programs in order to motivate them while at the workplace. In the case of XYZ Nightclub, those employees who portray exemplary performance by the end of the month will receive gifts and awards. Also, in case they portray increasingly sustained performance, the employees will be promoted to higher ranks within the company (Helga, 2014). The other area of core competency that will raise our competitive advantage is laying significant emphasis on entertainment. The specific programs that will facilitate for interactive appeal will consist of frequent games, contests and music, which will all be hosted by a live dj. The dj will also be in charge of organizing the major events within the organization. This will help XYZ Nightclub to differentiate itself from those enterprises that deliver mediocre services to their clients (NCIAA, 2014). Situation Analysis Swot Analysis Below is a reflection of the Strengths, weaknesses, opportunities and threats pertaining to XYZ Nightclub Strengths - In order to encourage more guests to XYZ Nightclub, we will be offering shuttles to students or those people who do not have a way of accessing the establishment. - We will be located in a region that has few competitors and a large number of young people, especially college students who want to party. - The establishment will be classy and attractive, and thus making it to appear unique while compared to other venues. - The establishment will be spacious to ensure that the visitors are comfortable while in the venue - There will be a variety of drinks and meals for customers to choose from, and they will also be awarded excellent service delivery. - There will always be entertainment at the club every day. - Security will be highly enforced to ensure that the guests feel secure while in the venue. - XYZ Nightclub will utilize all the common forms of advertisement such as radio, flyers and promotions to ensure that clients gather sufficient information about the club (Weebly, n.d). Weaknesses - Since XYZ Nightclub is a new business venture, we will encounter rough beginnings in the first few months. This is because of all the payments that we will be making to allow us establish the club. Opportunities - Most of the local artists will be provided with a chance to perform at XYZ club. By doing so, the company will manage to put more money into savings. This will then allow it to hire professional artists who will then boost the entertainment potential of our establishment. This will create opportunities for the performers as well as the club to save more money that will help to grow our business (Weebly, n.d). - By embarking on celebrity promotions as well as appearances, the business will manage to boost its customer base, and hence raise our profitability significantly (Weebly, n.d). Threats - With respect to complaints, people may start raising complaints about the club, and hence deter others from visiting our establishment. - Competition is always a threat because other clubs may introduce other mechanisms of bringing in customers to their establishments. - In case an accident occurs in our establishment, it is possible for the establishment to be sued or shut down completely (Weebly, n.d). Industry Analysis XYZ Nightclub lies in the Bars and Restaurants industry. This industry comprises of taverns, bars, pubs, nightclubs, lounges among other drinking places that are primarily set to sell alcoholic beverages. These establishments are also allowed to offer food services among other forms of beverages (NCIAA, 2014). In the early 90s, the Bar and Restaurants Industry was characterized by dance and energy venues. The major venues that were popular at the time comprised of New York’s Times Square and Los Angeles’ Hollywood. The major reasons as to why these venues became popular among the members of the public is because they were able to offer them with music, lights and sound that was highly powered. These provided their audience with high-class entertainment, which made the customers to keep coming back for more (NCIAA, 2014). The Bar and Restaurant industry is one of the major industries that reflect the highest flow of income in the globe. This is because a person can spend an average of 5 hours in this kind of an environment and spend, approximately $40 at the same time. Even, in the modern years, this trend is being noted to be the same, and in some instances going up (Lorette, 2014). The concepts that nightclubs adopted in the early 80s and 90s is still being applied in the modern Bar and Restaurant industry, though a number of evolutions have been realized since then. The Bar and Restaurant industry has evolved to become more sophisticated, especially with the prevalence of modern technology. In the case of large metropolitan areas, they have adopted this technology and taken it to new heights. They have adopted quality lighting, outstanding sound, video as well as interactive designs that provide the guests with a memorable experience. This is an indication that the Bar and Restaurant industry is highly competitive, especially with the advent of new technology, and thus an indication that XYZ Nightclub will be forced to design various competitive strategies that will allow it to operate efficiently in the market (Lorette, 2014). Competitor analysis With respect to competitor analysis, the major competitors for XYZ will be Club D, Bar E and Pub F. In the case of Club D, the hours of operation range from 5:00 P.M. to 2:00 AM on Wednesdays through to Saturdays. It has a capacity of 300 guests, and it holds college nights on Wednesdays where the students are allowed to purchase a beer for $1. This club is usually dominated by students who go around looking for cheap drinks. It is also known for being dirty and dingy. Therefore, this means that XYZ Nightclub loses out on these clients, since it is incapable of offering drinks at such a cheap price. Additionally, the club aims at sustaining its reputation, and would not allow it to be dirty and dingy (Helga, 2014). Bar E is the second major competitor for XYZ Nightclub. Its hours of operation range from 11:00 A.M. to 3:00 A.M. It operates from Monday to Sunday, and has a capacity of 400 guests. It practices Thursday Ladies and College Nights, and it mostly appeals to those who are aged between 25 and 35 years. The major areas of focus that the club emphasizes on comprise of video and pool games, and dancing is taken to the back side of the establishment. This club is competitive to XYZ Nightclub, with respect to entertainment, as well as the age group of the customers that it targets (Helga, 2014). With respect to Pub F, its hours of operation range from 7:00 P.M to 3:00 AM., and it operates from Wednesday to Sunday. It has a capacity of 250 guests, and its customers are usually aged from 25 to 45 years. This club is popular since its guests are usually older, well-dressed and offers a space that is cramped. This club is not as highly competitive, since it mostly targets those people who are older and smartly dressed. As such, the XYZ Nightclub would not suffer significant client loss since this group does not server as its target market (Helga, 2014). Company Analysis Source: (Helga, 2014) After XYZ Nightclub becomes well established in the market in the first year, it is expected that it will realize rising sales, Gross margin and net profits in the following years. This is because it anticipates to implement effective management of its financial, human and capital resources. Also, the productivity of its employees will rise as a result of being subjected to sufficient training after the end of every two months. In addition, the company will introduce new product offerings in order to cope with the growing competition in the market (Helga, 2014). Customer Analysis 1st Year 2nd Year 3rd Year 4th Year 5th year Customers Growth rates Young executives 17% 139,000 155,800 164,570 199,756 245,869 Students in college 6% 99,000 103,000 112,240 114,700 120,440 Business travellers and tourists 19% 98,000 119,000 134,000 165,700 202,440 Source: (Helga, 2014) From the table, the number of customers to the company, regardless of whether they are young executives, college students, business travelers and tourists, the customer base of the company will keep rising, as it continues to realize improved popularity over the years (Helga, 2014). Market Product Focus Marketing and Product Objectives - Take advantage of an excellent location that offers exciting features to clients. - Launch the venue after embarking on a grand opening event that will be highly publicized. - Sustain tight control of cash flow, operations and costs by practicing diligent management. - Maintain the costs of food at a price that is below 35 percent of the revenues that are realized after making the sales. - Make sure that the overall cost of beverages is sustained below the average revenue that it realizes. - To realize $4 million annual sales by the fourth year after launch (Helga, 2014). Target Markets XYZ strategy is to serve a broad range of markets in an exceptional manner. In this case, the target group for this establishment will be business travelers, night club crowd, night club enthusiasts, people who love going out as well as the local service industry(Helga, 2014). Points of Difference In order to associate XYZ with professionalism, the club will utilize various popular celebs in the region so as to entice a large number of customers to visit the club. Since most people love celebrities, they are likely to visit the club so as to witness their performance. Therefore, the club welcome celebrities to perform in the club so as to realize a large customer base, and hence boost its overall productivity (Helga, 2014). Positioning The concept of the nightclub business has been well received and has been placed at the center of Fort Worth, Texas. This commercial area has a large population, and a huge daily traffic count. The expectations is that it will realize approximately 10 percent in 2014. Since the club will be situated in a corporate office, it is estimated that the club will realize a significant customer base upon its launch (Helga, 2014). Marketing Program Product Strategy Fort Worth, Texas is an area that has an annual influx of people from various parts of the country. Most of these people serve as members of clubs in various institutions. Since XYZ Nightclub will be a place for all, its inherent technology will help boost its image further. The management of XYZ Nightclub is embarking on processes that target event promotions and advertising budgets in order to help promote the brand name of the corporation and allows the club to remain on the forefront of dance theme establishments in Fort Worth’s marketing area (Siff, n.d). Price Strategy: Break even analysis Below is a reflection of the break even analysis for XYZ Nightclub Source: (Helga, 2014) From the figure above, it is true that after XYZ realizes a break even point, it will realize sustained growth in the following years. Promotion Analysis The major mode of product promotion that XYZ Nightclub will rely on is radio and TV advertising to allow it attain a larger customer base. The strategies and practices that the company adopts will remain just as the way in which the company promotes itself. The promotion strategies that the company will embark on will comprise of advertising, grand opening and direct marketing. Through advertising, the company will be developing its core positioning message to its clients. With respect to the grand opening, the company will lay emphasis on significant portion of its early advertising budget to facilitate for the “Grand Opening Event”. In the case of direct marketing, XYZ Nightclub will engage in direct marketing to local hotels that surround it, as well as local airports (Siff, n.d). To facilitate this initiative, the nightclub will adopt an identity-oriented promotion strategy with executions which will target print media, radio, TVs among other in-store promotions (Helga, 2014). Place Analysis XYZ Nightclub will hire marketers whose goal will be to advertise directly to local hotel guests as well as local airports with an aim to attract tourists and business travelers who do not have an idea on the exciting places that they should visit in the evening. These marketers will be distributing flyers and tents in hotel rooms so as to create awareness of the visitors of the Nightclub’s location. The marketers will also go to colleges that surround Fort Worth. The monthly budget that will be allocated to these advertisements will be approximately $1000. The marketers will also distribute bumper stickers, shirts and ball caps that bear the logo of the Nightclub. The participants during the promotion process will also be given prices so that they can go ahead and spread the name of the Nightclub. The budget for this initiative will be approximately $2000 (Helga, 2014). Financial Data and Projections Past Sales Revenues Source: (Helga, 2014) The above figure reveals that the company will continue realizing increased profits during the initial months of operation, up to the time when competitors arrive in the market, and hence lead to lowered cash flow of the company. Yearly Projections Source: (Helga, 2014) The figure above illustrates that the yearly profitability of the company will keep going up until when competitors emerge in the market and hence bring down the profitability that it will realize during its initial years of operation. This is because other competitors will have devised a mechanism that will allow them to draw customers from the company into their own establishments (Helga, 2014). Organizational Structure The company will comprise of two presidents. The first president has known the vice president for a period of 2 years. The co-presidents have been working together for four years in 3 different positions. The other president has past experience as a manager in a bar situated in the suburbs of Fort Worth. The company will also hire six managers and thirty service personnel so as to ensure that the operations of the club are carried out in a smooth manner (Siff, n.d). Implementation While implementing the marketing plan, the executives of the enterprise will be provided with a timeline to evaluate on whether the strategies that are formulated in the plan are relevant, and whether appropriate duties have been allocated to the relevant individuals within the enterprise. The employees of XYZ club will be allocated with roles of marketing and releasing the product of the company to the members of the public. Also, the employees within the enterprise will be assessed on whether they are prepared to use the skills that they have leant in at XYZ Nightclub to ensure that they address their needs in an effective manner (Siff, n.d). Evaluation and Control After the implementation of the marketing plan, an evaluation will be carried out to ensure whether the launch process helped to raise the growth of the company, as well as allow it to realize its objectives. To facilitate this process, the executives of the company will estimate the overall sales that the company has made. The managers of the company will also hire outside evaluators to rate the brand image of the company in order to reveal its position while compared to other enterprises (Helga, 2014). References Helga, D. S. (2014). Nightclub Saloon Business Plan. Retrieved from http://www.bplans.com/nightclub_saloon_business_plan/executive_summary_fc.php?affiliate=entrepren7#.UylPuqiSxps Lorette, K. (2014). Implementation Phase of the Strategic Marketing Process. Retrieved from http://smallbusiness.chron.com/implementation-phase-strategic-marketing-process-5042.html NCIAA. (2014). The Official Trade Organization of the Nightlife ans Club Industry. Retrieved from http://www.nciaa.com/content.aspx?page_id=22&club_id=160641&module_id=29898 Siff, J. (n.d). What to do on a Friday Night: Smart Marketing Strategies for Bar and Nightclub Owners. Retrieved from http://www.movingtargets.com/_/articles/pdfs/S&S%20PR%20Nightclub%20&%20Bar%201-06.pdf Voth, L. (2008). Nightclub Party Industry Trends: The VIP Trick. Retrieved from http://voices.yahoo.com/nightclub-party-industry-trends-vip-trick-2302255.html Weebly. (n.d). Your Nightclub Swot Analysis. Retrieved from http://your-nightclub.weebly.com/swot-analysis.html Read More