Hakkasan Night Club Marketing Plan

By: Christelle Hunzek, Peter Valone, Rachel Witherow, Taylor Costanzo, Mark Roberts

Market Description

• Younger market (Generation Y)• College Students and young Business men and

women• Help attract a younger livelier crowd to Las

Vegas

Product Review• World Renowned DJs (Tiesto, Hardwell, Steve Aoki)

• Multiple Stages and levels with “Chinoistic” theme throughout

• Ling Ling Lounge and Pavillion

• Michelin starred Chef Ho Chee Boon

• The “Cage” overlooking the main floor

• VIP bottle service ranging from $12,000 to $500,000

Competition Review• XS Nightclub, Tao, Marquee, Hyde Bellagio• Tao also offers an Asian Style Theme• XS: $80-90 million revenue

Tao: $60-70 million revenueMarquee: $80-80 million revenueH. Bellagio:$25-30 million revenue

• All feature entertainment geared towards an older crowd

• Generation “Y” = Tech Savvy• An internet based approach would be best• Consumer Awareness• Short ads on internet video sites like YouTube• Banner ads along side music blog sites and

relative music sites like DJMagazine• Travel sites could have ads that showcase

package deals that can get you 2 for 1 dinner specials or free slot and table play at the Casino

Distribution Review

Distribution Review

• Tickets range from $20-$60 depending on performer and M/F

• Prepaid ticket sales through our own online box office • Cuts out third party ticket sale site to maximize

revenue

SWOT Analysis• Strengths

– MGM Grand Family– Hakkasan Family– High-End

entertainment and cuisine

• Weaknesses– Presale Tickets– Age limit: 21+– Not open during the

week

• Opportunities– Attract younger crowd

• “What happens in Vegas, stays in Vegas”

– Ladies first with ticket sales in turn attracts males at a higher premium

– Room to grow• Threats

– Lulls in attendance– Constricted hour will force

patrons to seek out other clubs during the week

– Sacrifice building loyal fan base

Marketing Strategy

• “Buzz Marketing”– Customer testimonials to friends and family about the

amazing time they had • Core product is the Experience

– Augmented product is the atmosphere– Supporting Product is F&B sales– Facilitating Product is our professionally trained staff

• Pull Strategy– We have a fixed location in the desert– Allow guests to purchase tickets before they get here

Marketing Promotions

• Tickets for women at lower cost, for men at a higher cost.

• With more women, Hakkasan will attract men willing to pay higher ticket prices.

• This pull strategy can boost the sales and the occupancy of the club.

Positioning• Image differentiation being associated with the

Hakkasan and MGM branding • $100 million invested into creating the largest

nightclub in Vegas• Elite EMD artists signing multiyear contracts, keeping

them away from other Vegas Nightclubs

Price

• Entry fee $20 - $60• Based on status of DJ or

performer each night.• Minimum purchase of 2

bottles: $500 - $2000• Lounges and booths

available at an extra cost.

Objectives & Issues• Earn Top 5 nightclubs in Vegas within 24 months

– High energy atmosphere to create a fun environment for the younger generation

– Need a focused and trained staff to deal with the high volume of people each night without letting service quality suffer

• Emphasis on VIP amenities and bottle service– Have 10% of daily occupants purchase bottle service in the next

6 months.– However a younger crowd might not have that kind of

expendable income

• Increase Rating from 3 to 4 stars in the next year– Online ratings tell guests ahead of time the experience they will

get. Boosting online rating will retain guests as well as attract new ones

Marketing Research

• 1. Research secondary data of the prices for cover charges, drinks, and venue rentals to compete with other top tier nightclubs in Las Vegas.

• 2. Research secondary data for information on what nights are most popular, and how many people to expect on given nights.

• 3. Use ethnographic research on people who go out to clubs in the Las Vegas area.

• 4. Research other markets like music festivals and other music venues to determine if ticket prices are above or below market value.