MARKETING PLAN FOR ELITES SPORTS BAR 9
MarketingPlan for Spata Sports Bay
SpataSports Bay is a sports bar that is newly launched and located in theheart of Chicago, in the United States. The bar, commonly referred bythe stakeholders as SSB intends to build a network of bars in thecountry by opening new locations. The outcome of the implementationof this plan is to place the bar as a global brand by the next fiveyears. The ultimate strategic plan of its operations will be totransform its business into a global franchise. The management of theprestigious sports bar is planning to venture into a number ofstrategies that will place the bar into favorable competitiveposition. This marketing plan describes the business environment forthe firm, a market summary of target customers, performance analysis,a concise SWOT analysis of the firm and the strategies that SSB plansto implement.
Thepolitical environment is stable for the business since the UnitedStates enjoys the most peaceful and stable governance in the world.In addition, the economic environment is gradually improving afterthe recovery of the U.S economy from the recession. This leavespeople with higher income for entertainment. The social environmentin the United States favors the entertainment industry becauseAmericans love to hang out and watch sports in large screens. Thetechnological environment will influence the clarity and availabilityof the games and sporting events that the bar will show. Therefore,the bar should adopt the most technologically advanced signalreceivers and television sets. The legal environment is determined bythe extent that the bar will adhere to the established regulations.The bar should fulfill the recommended legal regulations and acquirethe right licenses and approvals. Finally, the competition in theimmediate location in Chicago is high, and the same applies in themain cities that the firm plans to expand to.
Theprimary target market of the sports bar is middle class earningcustomers who desire a classy hang out and enjoy international sportsmedia. To attract and sustain these customers, the bar will providean expensively furnished lounge with sporting facilities in a sereneenvironment. The firm’s secondary target market is composed of thehigh income earning customers who desire a sharing a drink and sportsgames with friends, but with a high level of privacy and the bestsporting facilities. The market for the sports bar can be describedusing the 4ps of the market analysis.
Theprice for the products of the bar will be the same for the two marketsegments. However, the price for the sports facilities of thesecondary segment will be slightly higher because of the added valueof privacy.
Theproduct will be alcoholic drinks of all types and non-alcoholicrefreshments. A mini-restaurant will also be included within thefacilities of the bar. SSB will also provide exclusive sportingbroadcast of all games happening in the world through large screens.
Theplace for the sports bar will be the locations where the locationswill be. Currently, the bar is established in Chicago, but theexpansion of the firm will see its market presence in every town inthe United States. After this achievement, the bar will expand intothe international market through franchising.
Thepromotion will involve marketing the bar through the main streamtri-media of television, radio and newspaper. However, Kotlerand Keller (2012) argue that modernbusinesses should consider online and social media platforms as vitalpromotional tools. Therefore, the socialmedia will form the most frequent and regular platform of marketpromotion.
TheCustomers: These two market targets or segmentations are mostlycomposed of the employed people who spend time in social drinkingfacilities as well as sports centers and media channels. With severalsporting teams and facilities surrounding the neighborhoods inChicago, the potential middle-class in the area will admire coming tothe SSB.
TheCompany: the sports bar will operate under Spata Sports Bay, whichwill form the brand of the company. After establishing a successfulline in the U.S, the company will use the same name for thefranchises worldwide.
Collaboratorswill be the partners who will be suppliers of a number of facilitiesand products for the sports bar. The suppliers of drinks andrefreshments will be important as well as the media partners who willprovide access to all the sporting events in the world.
Competitorsinclude the Cubby Bear, the Sluggers, Cork and Kerry, HoundstoothSaloon and Joes’s Bar (Bartosch, 2014). These competitors present achallenge for SSB to be unique.
TheClimate for the bar is favorable as the United States if filled witha large number of middle class citizens who have adequate disposableincome for regular entertainment.
Thesegmentation will focus on the market analysis of the bar’scustomers. The main market segments in this new arena are peopleliving near the sporting facilities and staff such organizations. Thesecond market segments are the residents of neighboring localitiessurrounding the sporting facilities.
Interms of positioning, the bar will segment customers into two mainareas, those who will be treated as walk-in guests and those who wantcustomized club membership at the sports bar. For instance, residentsof the town, especially the residential neighborhoods from the secondsegment of the membership while tourists and visitors will be thewalk-in market segmentations. The majority of people in Chicago liveswithin the target population and the market area or within thefive-mile radius will also form our walk-in guests.
TheTargeting: Almost 95 percent of target customers in the bar are fromthe middle class. This aligns with the objectives of the businessplan for the bar to retain the existing clientele. However, to planan expansion of the markets beyond this customer base, SSB will becarrying out several consumer surveys all over the U.S.
Thefirst point performance analysis is the metric of the number ofcustomers at the bar at any one time during peak hours. The point ofdifference of SSB is the ability to hold at least 97% of the customerpotential in the bar, and more customers than other bars in theregion. This performance will be achieved because SSB has more spacein the dining, TV and drinking area than the competitors.
Thesecond performance analysis is the rate of retention of the customersthat the bar attracts. This will be targeted to be more than 75% asthe benchmark. This is because the point of difference for SSB.According to Kotler and Armstrong(2010), such a benchmark is achieved byfulfilling the needs of all the segments of the customers of a firm.This will be in addition to fulfilling their lifestyle desires andpromotion of the uniqueness that is associated with the classy bar.
Thethird performance benchmark is the number of visitors on the websiteand the social media platforms of the bar. This will be benchmarkedthat at least 50% of the visitors should be classified as uniquevisitors and at least 50% of those should be translated intocustomers. This means that 25% of all our online visitors shouldtranslate to customers.
Thefourth performance benchmark for analysis is market share. Themanagement has benchmarked this at 50% of the high-end market shareshould be achieved within the first 18 months of operation. Thisshare should be increased to 75% in the next 2 years after the first18 months.
Thefirst objective is to develop the best position by adoptinginnovative strategies to amerce new guests and customers within thetarget market in order to sustain successful operations. The secondobjective is to successfully target the high end customers andmiddle-class customers. The first characteristic is that of peoplewho love the lifestyle and classy social joints of a sports bar theywill appreciate and love the executive side of the bar. The thirdobjective is to establish a qualified team of direct marketers whowill approach direct customers and sell the services of the sportsbar. Finally, the fourth objective is to establish a global brandthrough a franchise that will be launched in the next five years.
SWOTand Needs Analysis
Thestrength of the company is a strong direct marketing expertisethrough online and conventional means. This will involve directmarketing strategies for reaching the customers directly from thecompany’s contacts (Aaker, 2006).To achieve this, the company needs to ensure that potential customersare approached by competent and well equipped marketers (Lamb &McDaniel, 2008). However, the bar has a weakness as a new venture intown because it will be providing services to new customers.Therefore, the firm needs to work hard to establish a strong customerbase. In addition, the bar has a weakness because it lacks theexperience of both the employees and the management since it is a newventure.
Theopportunity for the bar is to use direct marketers due to annex theability of the marketing staff to interact with potential customersand explains the services of the company. Through the adoption of thedirect marketing strategy, the sports bar will also have a chance tocustomize the marketing message to specific target customers.However, as a new establishment, SSB faces a threat of harshcompetition from the already established sports joints. The firm alsofaces a threat of adapting to every market in the main cities of theUnited States due to its newness in the industry.
SpataSports Bay has established its business in Chicago with theobjectives of covering the United States market and launching aglobal franchise. The company has implemented strategies to enablethe marketing function of the firm to achieve its qualitative andquantitative objectives. The bar will use direct marketing,conventional promotion and online media to target and reachcustomers. The bar will adopt strategies that will adapt to theexternal environment by using the resources of its internalenvironment. Moreover, SSB has established with the step of buildinga global business and global brand. Therefore, the firm has themarketing plan extending from just a short term plan to a sustainedmarket expansion strategy.
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Bartosch,J. (2014). Enjoy Game Day Party Time in Chicago`s Sports Bars.Retrieved From,<http://www.10best.com/destinations/illinois/chicago/nightlife/sports-bars>October 23, 2014
LambC., & McDaniel C. (2008). Marketing.New York: Cengage Learning
Kotler,P., & Armstrong, G. (2010). Principlesof Marketing. UpperSaddle River, New York:Pearson Prentice Hall
Kotler,P., & Keller, K. (2012).MarketingManagement.San Francisco: Pearson Education Limited