marketing plan_ speakeasy_2015
TRANSCRIPT
FOX VALLEY TECHNICAL COLLEGE
May 13, 2015
Authored by: Aubrie Brochtrup, Mike Nelson & Marshall Zielinski
Prepared for: Ted Suess of Speakeasy
SPEAKEASY NIGHTCLUB & LOUNGE
Marketing Plan
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TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................................................................... 1
EXECUTIVE SUMMARY .................................................................................................................................................. 2
INTERNAL ENVIRONMENT ......................................................................................................................................... 3
MARKETING GOALS AND OBJECTIVES ....................................................................................................................... 3
CURRENT MARKETING STRATEGY AND PERFORMANCE ........................................................................................ 3
ORGANIZATIONAL RESOURCES .................................................................................................................................... 4
CULTURAL AND STRUCTURAL ISSUES .......................................................................................................................... 5
CUSTOMER ENVIRONMENT ....................................................................................................................................... 6
EXTERNAL ENVIRONMENT ........................................................................................................................... ............ 9
COMPETITION ................................................................................................................................................................... 9
ECONOMIC GROWTH AND STABILITY ......................................................................................................................... 9
NATURAL-ECOLOGICAL TRENDS ............................................................................................................................... 10
POLITICAL-LEGAL TRENDS .......................................................................................................................................... 10
TECHNOLOGICAL ........................................................................................................................................................... 11
SOCIOCULTURAL TRENDS ............................................................................................................................................. 12
SWOT ANALYSIS ........................................................................................................................................................... 14
COMPETITIVE ADVANTAGES .................................................................................................................................... 15
STRATEGIC FOCUS ........................................................................................................................................................ 16
MARKETING STRATEGY .............................................................................................................................................. 17
MARKETING STRATEGIES .................................................................................................................................. .......... 17
MARKETING GOALS AND OBJECTIVES ..................................................................................................................... 18
TARGET MARKET ........................................................................................................................................................... 20
DIFFERENTIATION ......................................................................................................................................................... 20
POSITIONING ................................................................................................................................................................... 21
MARKETING MIX .......................................................................................................................................................... 22
PRODUCT STATEGIES .................................................................................................................................................... 22
PRICING STRATEGIES .................................................................................................................................................... 22
DISTRIBUTION STRATEGIES ......................................................................................................................................... 23
INTEGRATED MARKETING COMMUNICATION STRATEGIES ................................................................................ 23
IMPLEMENTATION AND CONTROL ............................................................................................................................ 24
REFERENCES .................................................................................................................................................................. 26
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EXECUTIVE SUMMARY
Speakeasy Ultra Lounge is owned by Ted Suess, and is located in downtown Appleton, WI. The main
target market for Speakeasy is the millennial generation. Ted has various promotions put in place to
cater to the needs and wants of the millennials. Some of the promotions include ladies night, bottle
service, three drinks for six dollars, and drink specials of the month on Saturday nights. The overall
marketing plan is to create an enhanced atmosphere for customers and driving in more traffic to create
revenue. In ordersince to provide a more intriguing atmosphere a few elements must be completed
which are, dance floor completion, providing Wi-Fi, and implementing various promotions every
weekend. It is also important to gain customer’s feedback, establishing a presence on social media,
providing offers through word of mouth advertising, and also reaching out to the community. All of
these goals and objectives need to be accomplished by June or July 1st of this year. Once these goals and
objectives are completed, Speakeasy will see a better atmosphere providing more value to customers.
The majority of the advertising will be done through social media platforms because it is the most
effective marketing channel to reach their target market. Ted can implement an online marketing
strategy to increase customer engagement, advertise, and provide a presence on social media. The online
strategy can also include hiring a photographer once a month to take photographs of the bar, and
customers enjoying their time. This strategy will fulfill the wants of the millennials by attracting a
positive atmosphere and utilizing social media. Engaging on social media will also obtain feedback from
customers, create connections within the community, and provide awareness for Speakeasy.
The goals and objectives, advertising, and online strategy can all be completed by June or July 1st of this
year by Ted Suess or a crew hired. The enhancements of the bar will not cost more than 2,000 dollars if
completions stay within the budget given. Making these changes will generate a positive atmosphere,
drive in more traffic, obtain a presence on social media, and create connections with customers.
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INTERNAL ENVIRONMENT
Marketing Goals and Objectives
Speakeasy Ultra Lounge is owned by Ted Suess and is located downtown Appleton, WI. Ted Suess has
been the owner since November of 2009. Speakeasy adds value to the downtown night life by having
promotions and different offerings to cater to the customers. His vision for the future is to hire a bar
manager and have him or her run it, so he can be in the background. Speakeasy used to be the go to bar,
but has recently fallen off due to numerous internal and external factors. Within the next five years Ted
wants Speakeasy to be the leading nightlife bar similar to the past. His main focus of consumers is
young adults and anyone up to the age of thirty. The marketing plan is up in the air, and needs to be
refocused. Ted’s main goal is rebranding Speakeasy to provide a better overall experience for
consumers. Another objective he wants accomplished is making Friday nights profitable. He also wants
a better understanding of why Wednesday nights are slow. To be consistent with his vision, rebranding
and gaining more profits from other nights of business is crucial.
Recent trends of the external environment include people utilizing social media through smartphones,
and capturing photos of being at the bar or lounge. Ted has no recent photos or stance on social media
platforms; therefore it makes it difficult to keep up with popular market and social trends.
Current Marketing Strategy and Performance
Ted’s overall system is to promote specials and utilize Facebook for retaining and gaining
consumers. On the busy nights there are always two bartenders on-staff, and on Wednesday night only
one. The bar utilizes a point of sale computer system for keeping track of funds and holding profit. The
employees have lists of alcohol that can be given away for free when playing games with the customers
or when promotions are going on. Also, on the busy nights a flyer is posted on Facebook releasing the
drink specials and the DJ for the night. Due to the fall off of nightlife, the financial situation for
Speakeasy has been dwindling off and debt mounting up. The bar as a whole does not have a lot of
money to finish the dance floor and remodel they are hoping for. The building itself is clean and kept up
well besides the minor remodel ramifications needed.
The current performance of Speakeasy is inconsistent from week to week. Thursday nights are
consistently busy because of their ladies night specials. Friday nights are continuing to remain slow with
very little profit. Word of mouth advertising is the only type of marketing being utilized for Friday
nights. In order for Ted and Speakeasy to be successful this must be changed. Saturday nights are
inconsistent, but often breakeven. Wednesday nights are not bringing in any profit and there are no
promotions or specials going on. This also needs to be changed because there is no incentive for the
customer to come to Speakeasy. Having various drink specials based on what the customer prefers adds
value, and will retain more consumers. Every Saturday two bottles are given away from the Thursday
night raffle. The bottle service is offered to bring in more business and to make the bar appear
busier. Bottle service is also used as a promotion and marketing tool to create profits. It also is done to
give back to customers and create value.
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The bottles that are given away for free are middle shelf; therefore they aren’t going through profit
margins. Ted also brings in promo girls from a vendor that is offering specials to him in the particular
month. The vendors also give him special and new alcohols to try out in the bar. He will get alcohols
such as Oktoberfest beer in fall, Lemon Rita Bud Light to try out, and rum similar to Malibu to diversify
rum choices. The various promotions are done to add value to the customer experience and keep up
with market. A weak product Ted is trying to get rid of is Pinnacle Vodka because it is not selling and he
does not have the space for it.
The offerings are all used to create awareness and drive more sales. The price strategy is very simplistic
to benefit the customer and bartenders. For example, bottom shelf drinks are $5.25, and top shelf drinks
are $7.00. For example, Goldschlager and Rumplemintz are very popular, but are not to be given for free
because they are twenty-six dollars a bottle. In comparison to competitors, the bottom shelf drinks at
Speakeasy are a bit more expensive. The performance of the industry as a whole is growing, changing,
and becoming more competitive. Consumers have various bars to choose from downtown; therefore
the bars must have a competitive marketing strategy. Speakeasy has declined majorly from when the bar
originally opened. The marketing and promotion strategies need to be revised and re-implemented to
become more profitable.
Current and Organizational Resources
Speakeasy Ultra Lounge only has a few employees because of the limited hours of operation. The
employees include four bartenders and three DJ’s. There is a different DJ on Thursday, Friday, and
Saturday night to create diversity. The goal for the bar is to have a finished dance floor, and mini
remodel to attract more consumers and drive more sales. Internally, Ted goes through vendors for his
alcoholic beverages. The vendors provide Ted with the new and seasonal beverages to keep up with
consumer demands. The seasonal and new alcohols are the key purchases for Ted to base promotions
and specials to reach the demands of the market. He bases his purchasing decisions on the most
consumed and what consumers ask for. The vendors are: Badger, Wisconsin Distributors, General Beer,
General Beverage, and Kay Lee. Ted has established relationships with his vendors making it easier to
get exclusive alcohols. There are a limited amount of resources Speakeasy utilizes because of the
financial situation. The main resource is the vendors supplying alcohol for the bar. Ted utilizes flyers on
Facebook to advertise for the evening. He does not promote on any other social media platform making
it difficult to reach out to consumers. Since he does not have much money to spend on marketing it
does get done.
His financial restraints also impact the dance floor not being completed. The dance floor being
completed could potentially drive in more business. Also, it would create a better atmosphere and social
environment for consumers. Ted could use the dance floor as leverage over competitors to distinguish
them downtown. The bar could also utilize social media platforms as marketing tools to engage with
customers. Being engaged with customers on social media will create relationships and a sense of
urgency. They could also consistently change the drink specials and create more awareness on Friday
nights to compensate for their financial situation.
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Cultural and Structural Issues
The culture and morale of Speakeasy is up in the air. Many people are frustrated with the slow nights of
business, particularly Friday nights. The marketing strategy needs to be re-focused with different ideas
and promotions. As a whole, the team gets along and meshes well. There is not a lot of long-term
planning occurring at Speakeasy. Ted is mainly focused on week to week, and does not have set
planning for future months. The marketing plan consists of the same drink specials from the previous
weeksand Facebook. There is nothing new being promoted for consumers to continue to come
back. The lack of planning will continue to hurt Speakeasy if it does not change. It is very crucial for
Speakeasy to gain more insight on their consumers and define a target market. Drink specials should be
catered to what consumers drink the most of and time of year. Social media should be positioned as a
marketing tool to engage with customers and create a sense of urgency to be there. The millennials are
the most popular target for the downtown nightlife; therefore should be the main marketing focus. The
marketing plan should keep up with social factors of the market. For example, creating an Instagram
page to highlight a visual of what the lounge is like. Speakeasy should update their Facebook page with
current posts and pictures creating engagement with customers. A calendar of events should also be set
in place for planning the month to reach market demands.
Speakeasy is stuck in their ways for promoting and gaining customers. They are open to change, but do
not actually act on ideas or suggestions. Ted wants to position himself in the market again, but does not
have the tools or time to do so. Having a presence on social media will really help Speakeasy gain more
business. Many of his competitors are constantly updating social media pages with highlights of the
weekend ahead and engaging with customers. Being more supportive of marketing strategies is
necessary in order to continue to grow as a business. On a positive side, Thursday nights are continuing
success with lines out the door. Implementing Friday night drink specials of three drinks for six dollars
will boost business. The most favored drink from people downtown is mixed drinks; therefore this
could potentially be a huge night for sales. Also, in a survey conducted, the most popular nights of
business are Friday and Saturday nights. Positioning themselves to have greater success on Friday nights
will correlate and support their marketing strategy.
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CUSTOMER ENVIRONMENT
Speakeasy’s current customers are young adults ranging from twenty-one through thirty-four. The main
target of focus for Speakeasy is the millennials. The millennials are the main focus because they are the
most diverse and are active participants at Speakeasy. The millennials adapt to change well and are active
social media users. The most common form of technology millennials use is their cell
phone. Millennials engage the most on social media through mobile devices. The millennial generation
are young adults; some in college and have a diverse mind set. This generation enjoys technology and
keeping up with the latest and greatest. When making a purchasing decision, millennials will look for
others feedback and read reviews. Every aspect of marketing must be engaging and grab their attention
in order for it to be successful. “Eighty Six percent of millennials are willing to share information about
their brand preferences online, making it a top identifier.” (The Millennial Generation Research Review,
US Chamber of Commerce Foundation) “Millennials also are sixty percent more likely to produce and
upload online content compared to non-millennials.” (The Millennial Generation Research Review, US
Chamber of Commerce Foundation) Speakeasy needs a presence on social media because that’s the best
way to engage with customers and have potential to drive more sales.
The important players in the purchases of the bar’s products are the consumers, seasons, and
vendors. Ted bases his purchasing decisions on time of year, most popular alcohols purchased, and what
the vendors offer him. For example, during October and the fall, Ted selects seasonal beers for his
consumers. Often the vendors will provide him with exclusive alcohols or provide promotional
items. The most frequent people who purchase drinks from Speakeasy are the millennials. The
millennials have an influence on what Ted buys from the vendors. If he gets enough requests for an
item, he has no problem purchasing the alcohol. The alcohols bought are also influenced based on how
much profit is brought in. The main person of financial responsibility is Ted Suess, the owner.
The firm’s products are connected to customer needs by basing purchasing decisions on what is most
consumed and what is asked for. Ted always wants to make sure his customers are getting what type of
alcohol they want. The firm’s products are purchased in quantities from the vendors. The vendors
come every Tuesday morning and deliver his alcohol. The quantities are based upon how fast the
alcohol is consumed and how many backups are necessary to keep in stock. It is important to have the
correct amount of backups otherwise Speakeasy will run out on a busy night. The products are
consumed by customers on nights of the week for leisure. Sometimes the more that is consumed on the
night, the more a person will spend influencing purchasing behavior. Speakeasy is not concerned if a
customer does not drink their beverage because, they get paid either way. If the bartenders give away
drinks that are not on the list, then Ted loses money. It is also important for Ted to recycle the bottles
when finished to preserve the environment and follow ordinances.
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Customers can purchase the bar’s products in downtown Appleton, at Speakeasy. The vendors where
Ted purchases the alcohols from are: Badger, Wisconsin Distributors, General Beer, General Beverage,
and Kay Lee. The main trends of how alcohol is purchased are based upon time of year and popularity.
For example, during seasonal times people prefer certain items. Another example is popularity of how
alcohol brands. Millennials prefer to make purchase decisions based on brand; therefore they will drink
alcohol on popularity. E-commerce does not influence the way consumers purchase products because
they can only buy products in store. The only form of internet advertising is Facebook for small amounts
of advertising. The advertising could influence consumers to come in and enhance sales.
Consumers purchase the most alcohol on Thursday and Saturday nights for Speakeasy. The most
popular times of year for customers purchasing is from fall through winter. During summer, various
festivals are going on; therefore it is a very slow season. For example, Speakeasy is not even open on the
Fourth of July. Another slow time is during winter when bad snow storms occur. A few other popular
events are Halloween, Oktoberfest and New Year’s Eve. Another popular time for Speakeasy is the pub
crawls during the fall season. When Speakeasy has parties or events going on, numerous people come to
the bar. For example, Ted has a Bud Light party every year and has promotion girls visit the lounge,
which creates a busy night. The most difficult thing about being downtown is the competitors having
the same parties or copying the same specials. For example, their largest competitor tried to do a Ladies
Night special the same night. It’s important for Ted to continue to come up with distinguishing ideas
during slower times through marketing.
The downtown scene consists of numerous bars; therefore it is necessary to find marketing tools to
distinguish themselves. The most difficult aspect of Speakeasy’s location downtown is being able to keep
up with their competitors and creating differentiation. The more brand loyal customers the bar has the
better relationships are created driving in sales. The products fulfill the customer’s needs because they
are in an industry wherever everyone has the same products. It is about creating the correct
environment for the target market and providing services competitors do not. For example, Speakeasy
offers bottle service on Saturday nights and allows customers to have their birthday parties there.
Engaging on social media helps customers select what bar they will be attending on the weekend.
Consumers want to be at the bar with the best atmosphere. Building relationships with customers is very
crucial for success downtown. Ted builds relationships with customers by playing drinking games,
offering various services, and buying select alcohols based on customer demands.
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Potential customers do not purchase because the competitors are promoting better. The competitors are
presenting a completed dance floor and are promoting on social media. Competitors are reaching their
target market and creating a sense of urgency. They also have pictures up from highlights of the night
on their social media platforms. For example, some of their competitors have photographers and create
events inviting people over Facebook. Their competitors continue to change promotions and find out
what consumers want to see. The pricing of drinks is consistent amongst all the bars downtown;
therefore is not a factor in slow sales. The promotions are not changing which does not create a sense
of urgency for consumers to come there. If the bar continues to consistently do the same promotions,
the consumers get bored. Speakeasy needs to identify and re-establish their market. Consumers also
look to their competitors because they are busier and have the atmosphere people are searching for. The
atmosphere, promotions, and social media presence are key factors in deciding on which bar to go to.
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EXTERNAL ENVIRONMENT
Competition
There are many choices available for people to enjoy the nightlife in downtown Appleton. The
main competitors nearby Speakeasy are Luna Lounge, Drinks Inc., Brau Haus, and Anduzzi’s. Each one
of these establishments offers specials on weekends and weeknights. For example, Luna offers Ladies’
Night on Thursday to compete with Speakeasy. Speakeasy has won this battle because they started this
special and have created awareness. Luna, Brau Haus, and Drinks Inc., also have drink specials on
Friday nights similar to Speakeasy. Having the competitors have similar drinks specials to Speakeasy
makes it difficult to differentiate them. The majority of the bars downtown copy each other in terms of
theme parties and promotions offered.
The demographics of each competitor compared to Speakeasy vary. In comparison to Speakeasy,
Anduzzi’s is the most similar in terms of target market because of the crowd they attract. For example,
Brau Haus and Luna reach out to millennials, but cater to more of an ethnic and diverse crowd. One
area where Anduzzi’s really separates them from the rest is their multi-level building with an outside
patio. The outside patio in the summer time is a huge aspect of business for them, because summer is
such a slower time for the downtown nightlife. Another area where Anduzzi’s separates themselves
from other bars downtown is having two dance floors in the bar. One dance floor is upstairs and the
other dance floor is downstairs. This allows the Anduzzi’s to have two different atmospheres in
bar. Atmosphere is huge for millennials; therefore Anduzzi’s is very profitable and popular. Another
profitable bar downtown is Brau Haus. Brau Haus has a atmosphere catered towards a more diverse
crowd. Brau Haus, also has two different atmospheres in one bar, similar to Anduzzi’s. In a room to
the left, there is an LED room playing EDM music. In the main room, there is rap and hip hop music
playing for dancing. This seems to be a common theme of the most successful bars downtown.
Speakeasy and its competitors have similar aspects in common, but they vary. The drink specials and
demographics are all reaching out to the millennial generations. Anduzzi’s and Brau Haus are similar in
aspects of atmosphere and trends. Luna and Drinks Inc. are most similar to Speakeasy in aspects of
promotions and crowd size. All of these bars on the same block, making it difficult to have their
customers stay in spot. The products offered at each place are very similar also, because it is such a
limited category. People prefer to drink mixed drinks and beer; therefore the bars offer those alcohols
most often. The bars all get their products from vendors and get shipments as necessary.
Economic Growth and Stability
The local economy in Appleton has been quite strong in all sectors, even during the recession. With
many large employers in the area, there is an expected future job growth. The sales tax is lower than
most other places and the median family income is higher than the U.S. average. The biggest percentage
of household income making $75,000 to $100,000 thousand and the median household income is just
below $53,000. Unemployment in Appleton is at 4.2 percent as of December 2014, a full percent lower
than the state’s at 5.2 percent.
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Wisconsin had a 1.6 percent job growth in 2014 and it is expected to increase in both 2015 and 2016.
Over twenty percent of the population in Wisconsin work in manufacturing, another twenty percent
working in the educational, health and/or social services and only about eleven percent of workers work
in retail and seven percent or less each work in other common industries such as construction,
transportation, arts and entertainment, agriculture, professional, public services or other services.
The nightlife scene is not slowing down, the bar and restaurant industry accounts for over $630 billion in
total sales from across 970,000 locations and there has been growth every year. It is expected to continue
to grow with continued new trends and technology being implemented. Specifically, about $20 billion of
combined annual sales revenue was generated by just nightclubs alone. With Wisconsin being the leader
in the number of drinking establishments at just 4,500 - with California, Texas and Illinois just a few
hundred behind - our state is typically the one to adapt and take on new trends in the nightlife industry.
According to the “Official Trade Organization of the Nightlife & Club Industry”, some of the biggest
trends are: fifty-five percent of respondents are going out as often as last year; seventy percent visit the
same type of restaurants and bars; fifteen percent are going out to less expensive places with another
fifteen percent going to more expensive places (Millennials skewing to better places); sixty-five percent
order drinks most to all the time with males ordering more frequently than females. Surprisingly,
Millennials order less frequently than older consumers; seventy-nine percent try a new drink every ninety
days with new drink trial highest among Millennials; seventy percent of consumers have ordered seasonal
beers and there is growing interest; fifty-nine percent have ordered a spirit cocktail at a restaurant or bar
in the past thirty days. Millennials are the target market for most restaurants, bars and nightlife makes up
about a 1/3 of the population. Catering to the younger crowd will help with new trends, as Millennials
are much into the “latest and greatest” and are not afraid to try new things.
Natural-Ecological Trends
The world as a whole is moving to a more “green” state of mind and businesses can have a major impact
on the world by what people are doing. How people get their raw materials, the waste getting their
product from start to finish, the emissions as their equipment are working away, it’s all something to
think about along the way.
Before the alcohol is even at the bar, it has to be delivered! The delivery process of anything is always in
talks of finding more efficient and cleaner ways to transport it. Semis have become more fuel efficient,
cars have become cleaner, and as time and technology advances we’ll see even better results to keep the
world cleaner and greener just in the delivery process alone.
In the bar and nightlife area, the first major thing a person might think about is recycling. Recycling all
the glass bottles and aluminum cans, but it can go further than that. As bars have certain alcohol on tap,
they go through reusable kegs. At the bar, one could use reusable drink coasters instead of beverage
napkins. Even the furniture throughout the business could be upcycled and reused or repurposed to not
only be green, but cater to something Millennials especially go for - the more urban and repurposed
furniture.
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Political-Legal Trends
As drinking and driving is still a problem not only in Wisconsin but in many other states as well, there
are new laws and regulations that have taken effect to maintain the roads free of drunk driving. In some
cases however, these laws can help a bar on a social level. These programs provide free rides to people
who have had too much to drink and let bars give their customers free rides home safely.
Since alcohol is a huge revenue maker across the world, taxation becomes a key factor to think about for
everyone. However, taxation helps make it so small that at-home breweries can compete without being
crippled by big brands or companies. For the legal side of things, promotion of alcohol sales has to be
done to follow certain criteria. The major criteria is to make sure it’s not promoting alcohol sales to
minors or people underage, but still having the appeal for the younger crowd.
Technological
Sixty-one percent of American adults own a smartphone. Users spent more time on mobile devices than
watching TV for the first time in Q3 of 2014. Time spent on mobile devices in the U.S. increased 9.3%
in 2014. It is predicted by 2018, mobile video will represent about seventy percent of all mobile traffic
(DiSilvestro, 2014). Customer smartphones are becoming a critical link in a business and could be the
best marketing device. Seventy percent of people who run a local search on their mobile devices act
within one hour. Businesses use QR codes or ads to present offers to customers who find them through
their smartphones (Cates, 2014). Hashtags became popular on twitter, but also have grown to other
social media platforms. Businesses are using hashtags for brand awareness, strengthening marketing
campaigns, trend awareness, and providing content. Common hashtags are related to product, lifestyle,
event, or location.
Starbucks, McDonalds, and Buffalo Wild Wings have realized the importance of free customer Wi-Fi.
Millennials want to “check-in” at a place on Facebook or post pictures of their experiences on
Instagram. Free Wi-Fi allows the business to offer ease of communication while promoting a business at
the same time. Customers choose Wi-Fi over Cellular. It is an asset to those who want to save on their
monthly cellular bill. Also, seventy-one percent of all mobile communication flow over Wi-Fi (Lomas).
According to a study conducted by University of South Florida, Seventy percent of the survey
respondents said that they preferred bars or restaurants with Wi-Fi Hotspots.
What’s in the bar is important too, there are so many great innovations nowadays such as charging
stations and USB ports near or in lounge furniture and business features such as electronic menus both
with and without credit and debit card readers built in. Businesses are giving the customer enough time
to look at menus without feeling rushed, but also have the freedom to pay right where they are. The
biggest plus side of that people don’t have to let their card go out of their site the next time they pick up
the tab.
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Sociocultural Trends
The population surrounding Speakeasy Ultra Lounge in Appleton, WI is around 73,000 and seventy
percent of that is over the age of twenty (51,000); however, there are around 2,500 people between the
ages of fifteen and nineteen. The female population (36,664) is two percent larger than male population
(35,959). The median age in the city is thirty-six years old. The average income is $62,000. Ninety percent
of the population has earned their High school diploma; whereas, thirty-one percent have obtained a
bachelor’s degree or higher. There are 4,500 veterans who live in the Appleton area. The average
consumers spend about $47,140 per household a year.
A larger group that is of interest is generation Z. Although generation Y is still a focal point, businesses
are focusing more and more on generation Z. They offer new business and opportunities to expand their
business. These consumers’ range from two through nineteen. They are the most diverse and
multicultural of any generation in the U.S. Fifty-five percent are Caucasian. Twenty-four are Hispanic.
Fourteen are African American. And four percent are Asian. This generation is open-minded and
adaptable. It is estimated that seventy-two million people are in this demographic. This generation
doesn’t fall into the “American Dream” philosophy. They look for products and messaging that reflects
a reality rather than a perfect life. Generation Z respond to independence and entrepreneurship, self-
direction, and a spirit of ingenuity. Millennials expect success. They design their own, unconventional
paths, yet they anticipated consistent success along the way. Generation Z is a generation of highly-
educated, technology-savvy, innovative thinkers.
Millennials have grown up with computers in their homes, but generation Z is the first generation born
into a digital world. They spend a lot of time online sharing details of their lives across dozens of online
platforms and dictating what they like or dislike with a tweet, post, or status. Generation expect to
engage digitally with brands. They must act digitally native via two way communication to create a strong
experience across in-store, digital, and mobile. Even though they aren’t legal to drink yet, Bars and clubs
can develop a channel to market toward generation Z.
Wisconsin is very dominant in English speaking at ninety-three percent and Caucasian at eighty-nine
percent. For race, the other elven percent is made up of about six percent being African American and
less than one percent each of any other remaining race. For language, Spanish and European languages
make up for another six percent and less than one percent of each of any other language spoken in
Wisconsin.
Going into the ancestry of Wisconsin as a whole, also shows that German makes up for forty-three
percent of the population; elven percent is Irish; nine percent is Polish and eight and a half percent is
Norwegian. While only seven percent or less makes up each of any other ancestry.
When narrowing down the percentages of race, religion and ancestry to just Appleton, the numbers are
still very similar with only about a plus or minus one to three percent. Appleton is dominant in people of
the age range of thirty five to forty years old, white or Caucasian, English speaking, but German ancestry
rises to about fifty percent of the total population of Appleton.
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When focusing on nightlife, the demographic that the industry focuses on is Millennials’. As mentioned
in the economic trends the age group of current Millennials is from twenty to thirty-three, also the age
range that likes to adapt to new trends, use social media, and use the latest and greatest technology. They
aren’t afraid to try something new.
That being said, this helps in our marketing plan as Millennials is our target market - specifically of age
range twenty-one to thirty. There is a major market for that age group and that tie with the nightlife as
well. That age group is willing to spend the money to get what they want, even if it is at a significant cost.
When talking nightlife, the same can be said. People would much rather spend money on one “thrill”
drink, over spending money on numerous general drinks - in other words, quality over quantity. The
atmosphere is a big factor too for Millennials - clean and simple, but in a big space with room for
options - they want as many options as possible for seating and lounging and to not be cramped. They
want to be able to relax, have fun and enjoy themselves without bumping into one another.
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SWOT ANALYSIS
After thorough research, there are many factors- internally and externally- that are affecting Speakeasy Ultra Lounge. This information will determine the motivators and triggers in how consumers interact with Speakeasy Ultra Lounge. It will also help develop a framework to push towards an action plan of highlighting Speakeasy Ultra Lounge’s strengths and reinforcing its weaknesses. Our analysis has found many external opportunities that will play in Speakeasy’s favor; however, there are several threats that are working against it.
Strengths 1. Thursday nights are consistently busy and
bring in profit. 2. Halloween, New Year’s Eve, pub crawls,
Oktoberfest, and St. Patrick’s Day are events that are profitable for Speakeasy.
3. Dance floor addition 4. Established bar downtown for ten years. 5. Speakeasy has many vendors that provide
promotional items. 6. Twenty-five percent increase in sales from
last year. 7. Located in a popular spot for nightlife. 8. Offers services that other establishments
don’t.
Opportunities 1. The millennials are the primary focus of
bars and nightclub establishments. 2. Gen Y & Z crave interaction with
businesses across social media platforms. 3. Over half of American adults have a
smartphone. 4. Positioned in a state where the
bar/nightlife is strong 5. Increased interest in seasonal beers. 6. Atmosphere is a big factor for
millennials. 7. Free taxi programs. 8. One of the top revenue grossing
industries. 9. Changing customer taste in products.
Weaknesses 1. Wednesday and Friday nights are slow and
don’t bring in profit. 2. Social media for Speakeasy is very limited. 3. The promotions and services offered are not
varied. 4. The target market needs to be re-established. 5. Parking can potentially be an issue on
weekends/busy nights. 6. No website being used creates a barrier for
potential customers. 7. Limited funds available 8. Incomplete dance floor/remodel 9. Only open 4 days out of the week.
Threats 1. Wisconsin has the largest number of
drinking establishment. (increase competition)
2. Millennials order less than older consumers.
3. Free Wi-Fi in bars and restaurants is becoming a factor for consumers when deciding where to go out.
4. Decrease of the downtown economy. 5. Increasing number of establishments
downtown going out of business. 6. Laws and regulations/liquor licensing 7. Future and present technology (i.e. digital
menus, apps, pay w/ phone) 8. Environment effects: heavy snow, storms 9. Price rise in raw materials.
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COMPETITIVE ADVANTAGE
Speakeasy Ultra Lounge has many strengths and opportunities capable of bringing in more profits and
enhancing relationships. On Thursday nights, Speakeasy is consistently busy. This is one the strengths
of the bar, and can also be looked at as an opportunity for creating awareness for the millennials because
they are the primary focus of the night life. It is important to inform customers about the weekly events
occurring on the various days of the week on Thursday nights to encourage them to come
back. Thursday nights could potentially be a great night to spread the word of the Friday night specials.
Another strength Speakeasy has is the location of the lounge. Since Speakeasy is located
downtown this leaves room for potential growth in business. The recent addition of the dance floor
creates a positive atmosphere directed towards the millennial generation. The dance floor addition
correlates with an opportunity to potentially grow business and better serve the needs of the
establishment. Being able to dance and have a DJ matches the wants of the millennials. The busier the
lounge appears, the more people will want to come.
Since, most people utilize social media platforms, having a photographer come in on Thursday nights to
show off the “atmosphere of the lounge” would be a great tool to drive in business. Over half of
American adults have smartphones; therefore creating a presence on social media will give Ted a
competitive advantage and opportunity to grow his business. Utilizing visuals on social media provides
storytelling and sharing of experiences from the consumers.
Speakeasy and its vendors have established relationships; therefore Ted can get promotional and
exclusive alcohols. Having the ability to get various alcohols provides a competitive advantage and
better service to match the needs of his consumers. An opportunity of strong interest in seasonal beers
provides Ted with the ability to get the beer of choice. Asking the customers or researching what
seasonal beverages his consumers prefer would also be a great opportunity for growth in serving his
consumers. On specific event nights, Speakeasy could ensure everyone has a free taxi ride home if
necessary.
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STRATEGIC FOCUS
The overall focus for this marketing plan is a turnaround strategy. It will bring Speakeasy to a different
vantage point to more efficiently engage and draw in customers. This strategy will help Speakeasy to
enhance their ability to know and understand customers’ needs. Even though Speakeasy has a dominant
Ladies Night on Thursday which brings in profit, they are slow to bring it in on Wednesdays and Fridays.
Majority of people tend to go out to bars and nightclubs on Fridays or Saturdays. Increasing the focus
and awareness to the Fridays and Saturdays will increase Speakeasy’s profit and reputation in the
community.
This focus will incorporate reorganizing promotions, events, and social media efforts. Majority of people
that go out to bars or nightclubs are twenty-one to thirty-four years old. Even though there are a small
percentage of people who are older and still go out, they aren’t going to bring as much business to
Speakeasy as the twenty-one to thirty-four year old group will. Narrowing the target market will allow
Speakeasy to take direct aim at the group and establish a system and environment to engage that
customer. Establishing themselves on social media will also help increase sales, engage with customers,
and create awareness of specials.
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MARKETING STRATEGY
Marketing Strategies
The marketing strategy is to create a better overall experience for customers while driving traffic in to
create more revenue. Our group has uncovered many different aspects Speakeasy needs work on in
order to provide a differentiating atmosphere and improved image. The primary goal of our strategy is to
improve the overall experience, atmosphere, and image. The main points of attention needed are
finishing the dance floor, providing Wi-Fi, and implementing various promotions every
weekend. Speakeasy consistently has the same promotions; therefore they are not differentiating
themselves amongst their competitor’s downtown. The unfinished dance floor is also prohibiting people
from wanting to dance, and many people do not even know there is a dance floor. This also is bringing
down the entire atmosphere of the bar, and causing revenue to be less. More customers will stay once
these objectives are implemented based upon the wants of the millennial generation. Also, since the
majority of millennials have smartphones, getting Wi-Fi would be another incentive to come to
Speakeasy. Ted and Speakeasy could ensure customers have safe rides home by teaming up with a taxi
service. This would make customers comfortable and provide a better overall experience.
Another aspect of our strategy is to create customer loyalty from engagement. Utilizing social media
platforms which target the millennial generation will provide feedback from customers. The social
media platforms that Speakeasy should have a presence on Facebook and Instagram. Ted could interact
with customers on Facebook by posting relevant pictures and content to encourage a customer
response. Having updated pictures of the bar itself and customers enjoying their time at Speakeasy will
also display the atmosphere of the lounge. Speakeasy could also utilize Facebook for creating awareness
of events or parties happening. Ted does not have enough time to take pictures; therefore hiring a
photographer for one Saturday night of each month is necessary. The popular trend in social media
currently is posting visuals with hashtags; therefore Instagram is another platform Ted should
utilize. Speakeasy does not have a presence on social media like the competitors of downtown.
Driving in traffic through word of mouth advertising is also part of our strategy. The word of mouth
advertising will increase revenue for Speakeasy. Providing offers through word of mouth will drive more
people in and create an incentive for customers to stop in. For example, utilizing Facebook and
checking in at Speakeasy will gain a customer a free drink. Doing tactics such as this will create
loyalty. Another option for creating word of mouth advertising can be done by promoting to the
community. For example, possibly linking up with PAC to have a better understanding when shows are
to create theme nights around what is going on there. Lastly, increasing customer involvement on social
media by encouraging customers to share stories about the weekend. This can be done through
hashtags, photos, and tagging Speakeasy. All of these tactics will drive more traffic in.
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Marketing Goals and Objectives
Marketing Goal A: Improve overall experience, atmosphere, and image
Objective Measurable outcome Time frame Responsible unit/person
Objective A1
Update lounge area Finish dance floor May 1, 2015-June 1, 2015
Ted/ crew hired
Objective A2
Implement various promotions every weekend
June 1, 2015 - November 20, 2015
Ted
Objective A3
Insure a safe environment for customers
Provide Taxi Service on weekends
June 1, 2015 - August 31, 2015
Ted
Objective A4
Obtain Customer Feedback
In house survey June 1, 2015 - August 31, 2015
Ted
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Marketing Goal B: Increase customer loyalty from engagement
Objective Measurable outcome Time frame Responsible unit/person
Objective B1 .
Establish an effective presence
on Facebook to increase
engagement with customers.
Post relevant content through status updates and pictures
Weekly (Evaluate effectiveness continuously)
Ted/other employees
Objective B2
Expand social media presence to Instagram to showcase the atmosphere.
Post pictures of the bar, and customers at the bar.
weekly (Evaluate effectiveness continuously)
Ted/Other Employees
Objective B3
Capture the atmosphere of the lounge
Hire a photographer who will provide pictures for social media
June 1, 2015 - June 14, 2015
Ted
Marketing Goal C: Drive traffic in through word of mouth advertising.
Objective Measurable outcome Time frame Responsible unit/person
Objective C1
Provide offers through word of mouth.
Check in on Facebook and receive a free drink
June 1, 2015 - August 31, 2015
Ted/Customers
Objective C2
Promote to the community
Advertise to the PAC for casting parties or offers to the audience.
June 1, 2015 - November 20, 2015
Ted
Objective C3
Increase customer involvement
Invite customers to share stories June 1st- August 31, 2015
Ted/Other employees
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Target Market
In the nightclub setting there is a wide target market, capturing anyone over the age of twenty-one. The
same can be said for Speakeasy, thus making demographic our primary market segmentation. While the
bar attracts an assortment of ages, it’s main target market is millennials from the age of twenty-one to
thirty-three as that is the primary age group that go to Speakeasy. The majority of millennials are white
and African-American and both equally male and female.
Millennials are the main target, because like what Speakeasy tailors to, millennials want new, fresh and
creativeness in the businesses they attend and shop with. A fresh atmosphere, the newest technology and
use of products and creativeness with new ways to express themselves. Like Speakeasy, as they have a
fresh atmosphere and create new, different and refreshing mixed drinks.
The millennial generation (also referred to as generation Y) are very technologically advanced, goal
oriented, lifestyle centered and service oriented. They also are very impatient, want everything as quick as
possible and want nothing but the absolute best. However, they’re comfortable with change and love a
challenge. Engaging with them entails staying in the loop while using the latest technology and social
media. Thus they can be reached through mass social marketing using something as a Facebook ad or
business page.
The secondary market can be considered as ages of thirty-four and up, this includes generation X and
baby boomers. While not a very common age group for Speakeasy - nor our target market - both could
be potential customers in the bar.
Differentiation
Differentiation is crucial for the downtown life in order to be successful. There various types of bars
downtown including sports bars, pubs, lounges, and clubs. Instead, Speakeasy focuses on services and
specialty to drinks to enhance the customer experience. Bottle service is used as a marketing tool to
differentiate themselves from its competitors. Only one or two other bars offer bottle service to its
customers; therefore promoting the service is necessary.
Speakeasy must focus on the needs and wants of the millennials. The lounge must stay current with the
latest trends to provide a “hip” atmosphere geared towards a younger crowd. Millennial’s want a busy
atmosphere where he or she can bring their friends to. Speakeasy is very price competitive compared to
the other bars downtown; therefore providing various promotions each weekend is necessary.
In order, to stay current with the trends of downtown, speakeasy must finish the dance floor. Finishing
the dance floor will allow speakeasy to meet the wants of the millennials and offer a complete experience
for consumers. Promoting the services they already have will also increase awareness of the night life of
Speakeasy.
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Positioning Statement
To millennials who want to socialize and partake in delicious drinks, Speakeasy is a lounge that provides
a space for the customer to feel relaxed, satisfied, and free to have fun. Speakeasy believes in creating an
experience customers won't forget. Speakeasy prides itself on the professional staff, quality drinks, and
an exceptional lounge atmosphere.
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MARKETING MIX
Product Strategies
The primary product of Speakeasy is alcoholic beverages, which includes spirits, mixed and specialty
drinks, and various beers. Bottle service is another product offered to the customer. The customer does
not just go to a bar just for drinks, but because they want to have an unforgettable experience. That
experience is built from the staff, the drinks, the music or the classy atmosphere in the lounge area.
Speakeasy provides an area for the customer to dance to the latest music being played by the DJ. Once,
the DJ platform is complete the overall atmosphere will have a positive impact on the customers
perception of the lounge. Customers hold the atmosphere of a nightclub most important and is a factor
that draws them in or makes the return. Having an environment where friends and family can socialize
is another driving aspect of the lounge.
Pricing Strategies
The main products Speakeasy offers are alcohol, an energetic atmosphere, and bottle service. People
attend Speakeasy to have a good time, and consume alcohol. Many customers hang out at the lounge to
meet new people, and enjoy time spent with close friends. The pricing strategy is simplistic for
consumers and bartenders. For example, rail mixed drinks are $5.25, mid-level mixed drinks are $6.00,
and top shelf drinks are $7.00. The pricing strategy for shots corresponds to the grade of alcohol, similar
to the mixed drinks’ pricing. The simplistic pricing strategy also generates revenue in comparison to how
much each bottle costs. The drinks on promotion are usually correlated with an overabundance of
alcohol, or what consumers do not want anymore. For example, Pinnacle is not top selling vodka;
therefore it is on special for $4.00 a mixed drink. This strategy is not very effective because consumers
do not prefer this type of vodka.
The downtown Appleton nightlife has consistent pricing overall. Speakeasy’s direct competitors pricing
strategies are almost exactly the same. In fact, Speakeasy is more expensive with some of their shots, and
rail mixers. The differentiation and positioning corresponds with various drinks specials for Saturday
nights. Also, Speakeasy is known for their Thursday night special of ladies drinking free; therefore they
differentiate and position themselves from their competitors on Thursdays. The pricing as a whole is
used to prevent profit margin issues. For example, Rumplemintz and Goldschlager are not to ever be
given for promotional purposes or free because of profit margin. Certain discounts are given away from
drinking games or various alcohols not costing a significant amount per bottle. It is recommend to price
rail mixers at $4.50 a drink, instead of $5.25 because rail alcohols are not expensive; therefore Ted would
still make profit. Having lower costs of drinks could potentially bring more consumers in, and still
correlates with the simplistic strategy. Keeping the overall simplistic strategy is convenient for Ted,
bartenders, and consumers.
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Distribution Strategies(Place)
Speakeasy is a one establishment business located in downtown Appleton. It is positioned strategically to
attract customers on each side of Appleton, thus drawing a greater market than similar businesses on the
east and west side of town. Speakeasy offers a location close to areas where customers can experience
the life downtown before or after partaking in drinks and entertainment. The establishment offers a
wide range of seating arrangements within the bar such as; the normal bar seating, comfortable couches
and arm chairs, and the regular chair and table set-up. There is also some space to stand and take part in
dancing. Finishing the dance floor will bring a better atmosphere regarding the physical layout. Parking
around speakeasy is limited since they are located downtown. Customers have to use parking meters if
they are able to find a space in front or find an alternative parking lot for the night. There is a parking
garage about ¾ miles away from Speakeasy that the customers can utilize.
Integrated Marketing Communications Strategies (Promotion)
Currently Speakeasy uses a minimal amount of promotions, and most of them are repeated every
week. Speakeasy’s biggest promotion is Ladies Night, which is every Thursday. Ladies drink for free and
guys drink for ten dollars all you can drink. Speakeasy will also hold theme nights and parties for various
brands. For example, they will hold a Bud Light party, or a vodka party for a new brand being
launched. Theme nights are arranged around holidays and seasonal factors. However, the majority of
the drink specials on theme nights are generally the same as what they offer on other promotional nights.
Saturday’s Speakeasy offers deals on select beers, mixers and various bomb shots. Another service the
lounge offers on Saturday nights is VIP bottle service. Customers can be part of bottle service through a
raffle drawing conducted on Thursday nights or by paying for the alcohol bottles.
We would recommend the drinks specials being rotated out and not the same every weekend. As a
group we have concluded the drink specials should be based upon mixed drinks, beer, and a shot of the
month. According to survey we conducted, people of downtown prefer mixed drinks over any other
beverage, and then prefer beer. Also, changing the drink specials more often will drive in more
traffic. By changing the drink specials weekly, consumers can then check in on Facebook, and share
their drink. Bottle service should also be promoted more through advertising and on social media. This
creates awareness for the service, and will gain more interest of consumers. Having themed parties once
a month will uplift the atmosphere, and provide an incentive to come to Speakeasy.
The advertising strategy will mostly be done on social media platforms because it’s the most effective
marketing channel to reach their target market. Speakeasy can continue to post flyers, but also
incorporate pictures of customers enjoying their time there. Ted could also link up with the PAC to find
out shows, and base theme nights off events occurring with the PAC. Linking up with the PAC will also
generate publicity for Speakeasy, and drive in more traffic expanding the target market. The personal
selling strategy should be to create an atmosphere for the millennials correlated with their interests. For
example, adding Wi-Fi, and promoting on social media will encourage the millennial generation to hang
out at Speakeasy. Ted can personally sell Speakeasy by having a photographer take photos of the lounge
on busy nights and post them to social media.
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This strategy will fulfill the wants of the target market by show a positive atmosphere and utilizing social
media. Social media will also allow feedback from consumers, and engage conversation. Utilizing social
media will also provide a connection with consumers, and can be used for word of mouth
advertising. For example, having a promotion for checking in at Speakeasy on Facebook earns a free
drink. This gets people in the door, and the promotions will encourage people to stay. The busier the
bar is, the more stories will be shared on social media platforms creating more advertising.
Marketing Implementation Tactical Marketing Activities
Specific tactical Activities Person/Department Responsible
Required Budget Completion Date
Product Finish dance floor Implement a Free Taxi Program
Crew hired/Ted SafeRide Program/Ted
$1500
June 1, 2015
Pricing Pricing differentiations through running different promotions. Decrease price of rail mixers from $5.25 to $4.50
Bartenders/Ted
Advertising costs
July 1, 2015
Place Incorporate pictures of the Lounge and Customers to capture the nightlife on social media
Photographer hired
50-100 once a month or until updated pictures are complete
June 1, 2015
Evaluation and Control
Much of what the marketing plan includes can easily be done alone by Ted himself. Since what is included in the marketing plan are items such as changing prices and promotions, keeping up with social media and simply finishing projects and renovations which were originally started. Most of these are very simple to achieve by himself alone. However, there are projects and ideas that would be easier to implement with another person or other people hired out to do the specific job, as well as having a bigger budget to play with. During the implementation of the marketing plan, all employees will need to work together through the changes. Especially with the routine changes to the drink line up, specials and pricing. Typically, the bartenders will have the same specials on a given day. With the marketing plan in place, this will create a rotation of specials, so the same promotion isn’t ran continuously. Ted will need to make sure all staff is updated - essentially having a “game plan” on what is happening - ready for each night.
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After completion of simple items such as completing the dance floor and keeping up with social media, Ted can once again rebuild the Speakeasy name. Once the interior renovations of the business is completed and new mixed drink creations are added, he’ll be able to photograph and advertise the new changes. Thus promoting the changes, drinks and specials and promoting the brand will all increase foot traffic, amount of customers and profitability. As mentioned above, these changes should help strengthen profit numbers. By advertising more on social media, getting customers involved and having some interior finishes happen to the bar, will not only retain current customers but bring in brand new customers. Since advertisement was very limited before the marketing plan, any new promotions or ads will strengthen the Speakeasy name and customer growth. The product of Speakeasy is simply alcohol and the experience of the bar itself. Both of which have been mentioned that can be improved. By coming up with new mixed drinks and finishing the - already in progress - renovations of the bar, will make the core product more desirable. Having a unique drink line and having an updated atmosphere will make up what Speakeasy is all about. Pricing is another topic covered in this marketing plan. The overall pricing throughout what Speakeasy sells is set relatively at a fair price. However, changing the prices for a promotion is something to look into as the majority of the pricing is set as that of what the “normal” price of what that drink should be. The rail mixers too seem like the price is set a bit steep. Lowering the price should encourage the purchase of them, thus increasing sales and profit margins. Speakeasy doesn’t have that much when it comes to the distribution aspect. Besides that of the distribution of the alcohol, there is really not much distribution taking place in the business. Promotions are the key to Speakeasy gaining profits and new customers. Many promotions before this marketing plan have been on repeat week after week, some going on months, others years. By creating new promotions, changing out current promotions and implementing ways to get customers involved by sharing and promoting Speakeasy, will help boost sales and customers while staying in budget for advertisements.
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