Executive Summary
The new establishment, a sports bar named “The Zone” would cater to sports enthusiasts in the Charlotte North Carolina area. A quick view of the bars in the area would reveal that there are currently 25 listings of sports bar in the area; which could be potential competitors of “The Zone”. The objective, therefore, is to launch an innovatively designed sports bar that caters to contemporary generation through the use of the latest technological gadgets which could improve viewing the latest updates on various local, national or global sports. It would be launched using diverse marketing strategies using product, price, place, and promotions.
Company Overview
The name of the establishment, The Zone, would be launched in the third quarter of 2013, or by September 2013. The mission is to provide an innovative entertainment experience through highlighting the latest in sports in a bar environment. Its competitive advantage would be the use of the latest technological gadgets, such as the installation of Smart TV.
Objectives/Goals
The Zone aims to capture an initial 10% market share of the sports bar market in Charlotte North Carolina. This is projected to increase by 5% per annum until the 3rd year and to progress to capturing as much as 50% of the Charlotte North Carolina market by the 5th year.
Situation Analysis
The latest demographic information reveals that much of the new clientele in Charlotte North Carolina comes from New York, who are then known to have preferences for innovative dining and entertainment experiences. Thus, the strength of The Zone is in terms of its ability to offer the newest and innovative entertainment experience through offering the latest updates in sport and showcased through the latest in technology. The only weakness is having to regularly update technological applications, to keep up with the fast changes in technological advancements. The opportunities abound in terms of capturing a significant portion of the market share of sports enthusiasts given than the city is identified to the 2nd best city for entrepreneurs, as disclosed in recent demographical research on the area. On the other hand, the threat that faces The Zone is contending with the 25 sports bars that currently are entrenched in Charlotte.
STP Analysis
Marketing Strategy
Product: The product is the service offered by The Zone which focuses on providing first class entertainment and dining experience to sports enthusiasts in the Charlotte North Carolina area using the latest technological gadgets which would delight various clients from all walks of life.
Price: The services and products (food and beverages) offered in The Zone would be competitively set to consider the average retail prices of goods offered by its competitors within the area. This would entice local clientele to try this new establishment and to realize that the current dining and entertainment experience caters to their budget.
Promotions: The Zone would initially be advertised through local print and media within the Charlotte North Carolina area. Likewise, an online website would be designed to provide comprehensive information on what The Zone could offer.
Place: The Zone is to be strategically located at the busiest commercial area of Charlotte. This would be the most accessible and most densely populated area which could capture the interests of various clients and immediately capture the targeted market share.
Financial Projections
At the onset, it could be deduced that due to the capital outlay and extensive promotions, the organization is expected to break-even on the first six months of operations. However, the operations would start to pick up and generate revenue and profits by the end of the first year of operations when the 10% targeted market share has been realized. Eventually, a net income of at least 15% increase on the second year, 20% increase on the third and 30% on the fourth year is projected to be generated.
Implementation Plan
Currently, incorporators are undergoing the finalization stages of the construction and design of the store. Concurrently, marketing officers are to design and implement the identified marketing strategies, especially announcing the launching of the sports bar through local radio and television shows, as well as using the local print media. Big banners and brochures would also be distributed to announce the launching.
Evaluation Metrics and Control
Initial feedback from potential customers would be solicited through local surveys to incorporate preferences and be able to integrate them in the plan. Upon launching date, more rigorous customer service feedback would be gathered on-site and determine customer preferences in terms of dining experiences and other suggestions on the kind of sports broadcasts would be solicited to enable management to incorporate changes, as deemed needed.
