Executive Summary This marketing plan was designed for a entertainment club , which is a small, cozy, family owned club specializing in authentic and traditional acoustic Jazz music. In addition to the music and the upscale atmosphere, youth club’s offers a wide selection of alcoholic beverages and appetizer.
This plan outlines in the following pages, a renewed vision and strategic focus of what it will take to run a successful and profitable entertainment youth club’s is one of the only clubs In the KILL area to consistently offer “live” music six nights a week, which gives it a competitive advantage and leaves plenty of room for it to grow in this relatively small market. Youth club’s strategic decision to locate the business in downtown Cocoa Village Is also a real asset to the marketing mix. 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 Jazz club clientele are extremely loyal. The plan focuses on youth club ‘s future growth strategy in: media advertising, increasing public awareness, developing and maintaining customer loyalty, improving the acoustic and functional design of the interior, maximizing future profits by promoting the club within Its specific niche market, and emphasizing the music club’s superiority in the live entertainment music market.
Because youth club’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 ring 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 youth club’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 ill 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 must work hard to establish long-term relationships with its clientele.
The most similar competing club has been around for 5 years and been highly successful using this approach. II. Environmental Analysis Founded as a specialty music youth club ‘s opened for business on December 16, 2004. Youth club ‘s principal manager, one man, owns the club with his wife and the. As acting manager, he has permission to use his discretion for expenditures under 1,000, but must consult with the other owners for larger purchases.
After an extensive construction and planning phase, the owners have successfully transformed the 1 , 100 square foot 2nd story space above Belle Mound into a cozy nightclub with character. A. The Marketing Environment 1. Competitive Forces The competition in the club and lounge industries is rather weak on a local basis in Bread County, but somewhat stronger on a regional and national basis. There are currently twenty-two night clubs listed in the Bluebells yellow pages for the city, but only one of those other clubs offers weekly live Jazz entertainment.
This void gives youth club’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 entertainment club 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 DC 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 youth club ‘s at this time. . Legal and Regulatory Forces business a club might receive, there are no current proceedings in the state glistered to change SOL’S legal drinking age from twenty-one years old. This club liquor license renewal is also critical to the success of the club. Other considerations which could affect youth club ‘s future are the strict zoning laws, which is a small, quaint, business district situated right off of the Indian River intercalates waterway and State Road 520.
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 entertainment club of this size other than the maintenance and operation of the club’s internal sound system, overhead lighting, heating and cooling system. 6. Coloratura Forces In today’s modern culture, many Jazz music fans come to clubs for the music first, the atmosphere and clientele second,.
Most popular in the sass’s and sass’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 artwork exemplifies intellectual sophistication and style for people f all ages and genders. B. Target Market(s) youth club ‘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 drink selection.
This club has separated itself from other establishments offering similar products and services through its unique choice of musical style, interior decor, and its artsy location. Youth club ‘s ability to differentiate itself from other local nightclubs 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 (approximately 1,100 square feet) cigarette smoking is permitted.
Pipe and cigar smoking is also allowed but only on specific nights. The principal image concept of youth club’s marketing approach is to specifically attract the market segment that likes traditional acoustic Jazz. Another identifiable concept of the nightclub 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. Also, as a result of situating the club on the 2nd, youth club ‘s most profitable product is the imported beer on tap, but it also sells wine, liquor, liqueurs, finger foods, and cigarettes. By offering live Jazz music six nights a week (which is extremely music and unwind after work. Monday through Thursday evenings have live entertainment from 6-pm and cater to the happy-hour crowd while Friday and Saturday evenings offer music until midnight, catering to the after dinner crowd, specially couples. C.
Current Marketing Objectives & Performance Since opening last December, youth club’s has marketed itself primarily on a word-of-mouth basis. In addition, the club’s entertainment schedule is listed in the free calendar section of the paper. Inside the club there are tabletop menus with drink prices and the entertainment schedule. Flyers have also recently been placed at two Malaysia tourist centers, local hotels, Breakfasts, , which is due to be released this month. In addition, a whiteboard at the entrance of the club shows weekly drink specials and promotions.
At the end of the first full fiscal quarter, youth club’s monthly revenues were 30% higher than the opening figures from last December. The average mark-up on beverages is 74%, which is considered an excellent profit in the industry. Ill. SOOT Analysts A. Strengths youth club’s product and service differentiation strategy is the result of a strong marketing focus on the Jazz club being authentic with a classy ambiance. This strategy enables the club to deliver a sophisticated listening experience to its customers.
The combination of providing live entertainment six nights a week and exclusively offering traditional Jazz music has enabled youth club’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. 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 is the choice of entertainment. Due to its small entertainment budget , youth club’s is unable to attract the quality Caucasians one would expect from a club of this caliber, thus damaging the club’s reputation. The musicians are hired three months at a time, which is very unusual in the industry. Most nightclubs rotate their entertainment much more frequently. The limited advertising budget of $5000 per year has also prevented the club 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 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. The potential for youth club’s business Roth is promising when one considers this major change in our culture’s musical taste. D. Threats Competition from other entertainment clubs 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 youth club’s customer base. The clientele that seek out Jazz music will always prefer “professional live music” rather than to have it pre-recorded or performed by amateurs. E. Matching Strengths to Opportunities By forming an alliance with ‘Jazz-friendly organizations like the Central Florida Jazz Society, school Jazz programs, and Jazz radio stations like WIFE, this club 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 youth club’s are the mixed drinks and the domestic bottled beers while the most profitable items are the well drinks with an approximate 5% profit margin. Clearly, alcohol sales are the club’s main revenue and they should be watched carefully because of the potential profit that can be made. F.
Converting Weaknesses & Threats Entertainment youth club’s should eventually consider expanding the size of the club and adding another bathroom if the business is to grow. Many potential busy weekend nights due too lack of seating. It is unlikely that another Jazz club 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 out club’s is in business to sell drinks and food to its customers while they listen to live Jazz music.
Besides developing and initiating a marketing-oriented and customer focused mission statement,youth club’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, youth club’s should develop benchmarks o 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 last December, 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 nightclubs and learn what marketing strategies ark 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 A.
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 vive 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, B. Marketing Mix 1. Products and Services youth club’s markets not only alcoholic beverages from its full liquor bar and continental finger-food type appetizer, but also live music entertainment to its customers. out club’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 supporting the American art form we call Jazz.
These attributes are difficult for competitors to copy, thereby giving youth club’s a competitive advantage in the limited niche market that it exists in. Based on the decor and dress code, youth club’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. . Pence youth club’s provides a quality listening, drinking, and eating 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 youth club’s products and services must be experienced in person and cannot be shipped or enjoyed outside of the club, other than the occasional live recording of he music played there, which will be released on CD and distributed in the club and off of the website. 4.
Promotion youth club’s cannot survive or flourish Just waiting for customers to come to it. Instead, youth club’s must get better at focusing on the specific market segments whose needs and desires match the club’s offerings. VI. Marketing Implementation A. Marketing Organization Because youth club’s customer groups are so similar, for the purposes of this analysis, we will focus on all three target markets together as a whole. Youth club’s flexible in introducing the club to the community. These new approaches will attempt o overcome the current lack of diversification in the products and services offered.
Also, this new marketing approach will give youth club’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. Unless specified, all activities are the responsibility of youth club’s primary owner and manager. ; 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 referable be a college student or intern with desktop publishing and internet ; Membership to the Cocoa Chamber of Commerce will be applied experience. For as soon as possible and major efforts will be made to attend all the events. Youth club’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 ; Custom novelty items like bumper stickers, shot glasses, mugs, inquiries. 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. ; Display advertisements will be run with the next edition of Bluebells and Sprint Yellow Pages. Additional stings will be run under the headings: restaurant, music, pub, club ,entertainment, etc. ) 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 radicals quarter, Jazz radio stations like WHICH and WIFE and their Dad’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. Sponsoring or co-hosting a Jazz show is another possibility. ; By the beginning of the 3rd quarter, an announcement will be made that youth club’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 and off of the website.
By the 4th fiscal quarter, out club’s should become a corporate sponsor of a Jazz festival like the Jazz Series. Another strategy for youth club’s to pursue during the Spring. VI’. Evaluation & Control A. Performance Standards and Financial Controls A comparison of the financial expenditures with the plan goals will be included in this report. B. Monitoring Procedures To analyze the effectiveness of this club 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.