144601597 oxybar a new business launch
TRANSCRIPT
-
8/13/2019 144601597 OxyBar a New Business Launch
1/15
2013Service
Marketing
[OXY BAR RESTORE AND REFRESH WITHOUT THESIDE EFFECTS]
Ali Ammar Yousuf, M. Fouad Siddiqui, Ozair Qadir, M. Aizaz Haq, Farzan Sheikh, Furqan Lakhani
-
8/13/2019 144601597 OxyBar a New Business Launch
2/15
2 | P a g e
Table of ContentsBackground of Service Concept and Company: ............................................................................. 4
Service Concept: ............................................................................................................................. 5
High Contact Service ...................................................................................................................... 7
Facility Layout ............................................................................................................................ 7
Quality Control ........................................................................................................................... 7
Capacity ...................................................................................................................................... 7
Front Line Worker Skills ............................................................................................................ 7
Rhythm & Schedule .................................................................................................................... 7
Service process............................................................................................................................ 8
Service Offer ............................................................................................................................... 8
People Processing ........................................................................................................................... 8
8 Ps Of Marketing: ........................................................................................................................ 9
Product Elements ........................................................................................................................ 9
Stressed Businessmen ............................................................................................................. 9
Athletes ................................................................................................................................... 9
Young adults ........................................................................................................................... 9
Primary Product .................................................................................................................... 10
Supplementary Products ....................................................................................................... 10
Price .......................................................................................................................................... 10
Place .......................................................................................................................................... 11
Promotion & Education ............................................................................................................ 11
Physical Environment ............................................................................................................... 12
People ........................................................................................................................................ 13
Process ...................................................................................................................................... 13
-
8/13/2019 144601597 OxyBar a New Business Launch
3/15
3 | P a g e
Productivity & Quality .............................................................................................................. 14
Conclusion: ................................................................................................................................... 15
-
8/13/2019 144601597 OxyBar a New Business Launch
4/15
4 | P a g e
Background of Service Concept and Company:Blood is loaded with Oxygen, When air is inhaled the lungs siphon the oxygen into the blood,
and the heart pumps these oxygen rich blood cells into the muscles and up to the brain. The
quicker the body and brain receive oxygen, the quicker it will rejuvenate and the sharper it willfunction. The typical air we breathe is 20.8% oxygen, not all of which is absorbed into the body.
Oxygen bars is a growing concept worldwide and is catching popularity as an industry. The trend
has been catching on in Pakistan with one opening in Lahore and Islamabad each. There has
been no such bar in Karachi yet and this provides an excellent opportunity and a first movers
advantage into the business. Karachi currently is saturated wi th sheesha bars which is a
modified version of huqqa with flavors. These are the most popular hangout spots for young
adults all over the city. Sheesha contains harmful ingredients like Nicotine and consumption ofsheesha is more harmful than smoking cigarettes. Therefore these young adults and parents alike
are looking for alternatives that are less harmful and can provide the similar feeling of freshness
and heightened senses. One such alternative is oxygen for recreation.
Oxygen session has many benefits and few risks for the average person. Generally it takes 10
minutes to oxygenate ones blood, although a 15 - 20 minute session is mostly recommended.
Whilst sitting at the Oxygen Bar one may not notice any immediate difference, however not long
after the session is complete people will feel like they have more energy and less aches and pains. If the person suffered from lactic acid build-up in the muscles this will generally reduce
and their stamina will be noticeably increased. If drinking, patrons are less inclined to experience
a hangover the next day. The blood alcohol level will NOT change much although patrons can
expect an increased tolerance to alcohol. oxygen has the potential to increase memory and
awareness following an oxygen session.
There are no risks and no adverse effects with short term use of oxygen. The American lung
Association has said that breathing oxygen from an oxygen bar has no harmful effects and there
is no evidence that oxygen used in bars can be dangerous to a normal persons health. Oxygen
bars have been operating in several countries, for over 8 years; millions of people have enjoyed
the sessions without a single health related incident. Oxygen bars are not intended to treat, cure,
prevent or diagnose any illness or disease.
-
8/13/2019 144601597 OxyBar a New Business Launch
5/15
5 | P a g e
Service Concept:Oxygen Bar will be a lounge or caf which will sell oxygen for
recreational use. It is a new trend appearing globally. The purpose
of this new respiratory innovation is to substitute the use of otherharming vapors and smoking practices, primarily Sheesha/Hookah.
According to a study conducted by Agha Khan University Medical
College, 61% of the respondents smoked sheesha occasionally
which indicates that there is a big market which is vulnerable and
ready to be tapped and converted. 1
Hence our positioning statement would be:
A posh cafe serving oxygen for recreation to young adults aged between 16 to 30 years, as an
alternative to harmful smoking habits.
As evident by the aforementioned positioning statement, our core target market will have the
following characteristics:
Age bracket of 16 to 30 years Occasional Sheesha users Belonging to SEC A and B Occasional visitors of cafs
Moreover, customers will be coming to our cafs where they will enjoy the core service of
oxygen shots in different flavors along with a few supplementary offerings of a usual caf. Key
point of differentiation except for the core offering would be the ambiance where different rooms
will be allocated to different flavors, for example, apple flavor will be available in apple farm
and mint flavor will offered in a room where nice, refreshing scenery would be simulated by wall
1 Cross-sectional study identifying forms of tobacco used by Shisha smokers in Pakistan , Aga Khan UniversityMedical College, Center for Non-Communicable Diseases, Karachi, Pakistan.
16-30 years
SEC A & B
Occasional
Sheesha
Users
Occasional
Caf
Visitors
TARGETMARKET
-
8/13/2019 144601597 OxyBar a New Business Launch
6/15
6 | P a g e
paintings and mild sound effects etc. Hence overall offering will be touching customers senses
of smelling, hearing and sight.
-
8/13/2019 144601597 OxyBar a New Business Launch
7/15
7 | P a g e
High Contact ServiceThe service is categorized as high to medium contact. The service entails serving customers with
oxygen shots, according to their order.
Lets analyze using different aspects:
Facility Layout
Our service facility is set up keeping in mind customer preference, rather than feasibility of our
own resources, ie, it is a customer centric facility.
Quality Control
Perceptions of quality standards are subjective depending on our customers. The deliverance on
quality will be validated by the customers, externally, and not by metrics defined by the
management. Management is going to try to extract this feedback by feedback form to gage their
experiences and perceptions. Management may also set its own metrics, but those will be limited
to production time, employee performance.
Capacity
Capacity required is directly related to demand by the customers at various times, and to be able
to serve more customers, excess capacity is necessary.
Front Line Worker Skills
Frontline employees will have to be trained to interact well with the customers and deliver on
their expectations. With time, for regular customers, employees may also be able to cater
specifically to their needs, using their judgments.
Rhythm & Schedule
More customers present at location can make delivering orders, taking orders, seating new
customers, slightly more difficult.
-
8/13/2019 144601597 OxyBar a New Business Launch
8/15
8 | P a g e
Service process
The service process if partially driven by customer, depending on when they get seated, decides,
and then places an order. Otherwise, producing and preparing order depends on the typical
timings in the kitchen.
Service Offer
More variations may be introduced in terms of oxygen variants and more food items and drinks.
People ProcessingOur oxygen bar can be categorized under people processing.
The customer enters our oxygen bar, the physical location, where he is received by ouremployees, taken to a table, handed out menu cards. The order-taker notes the order and serves
the order, and helps customers with the service. Most users will have to be informed or helped in
taking the oxygen shots, by our employees.
By and large the customers will largely be responsible for consumption of the service with
assistance, thus they too will have to participate in service deliverance.
Consumption and production are taking place at the same place, and the same time.
-
8/13/2019 144601597 OxyBar a New Business Launch
9/15
9 | P a g e
8 Ps Of Marketing:
Product Elements Restore and r efresh wi thout th e side effects. No calories. No carbs. No caff eine. No crash.
The product will be targeted to three different segments if the markets:-
Stressed businessmen Athletes Young Adults for recreation
Stressed BusinessmenStress comes in many forms all which can be unbearable, emotional, physical, toxic, and mental
stress. All forms of stress can affect the bodys capacity to take in and utilize oxygen, the most
important nutrient to your body. Lengthy periods of stress can cause serious life threatening
diseases. When people are stressed they are told to BREATH, this is because breathing gets
more oxygen into the body, and more oxygen in the body helps people cope with stress. Recently
Oxygen bars have become extremely popular. Most people who visit the oxygen bars report
increased energy levels, a clearer mind and a relaxed euphoric feeling.
AthletesInhaling 90% oxygen is like driving 4-5 times the oxygen into your muscles. Many athletes are
now using oxygen during competition and between training sessions. With oxygen being a keyfactor in muscle recovery and brain stimulation, its benefits are finally being introduced to
athletes in sports ranging from football, basketball, professional fighting, soccer and tennis. In
the Gym when training oxygen allows you to do more reps and sets, whilst lifting heavier
weights with minimal rest. This makes 90% oxygen is great for competition or track and
training sessions.
Young adults
Since there are no health risks associated with breathing oxygen at oxygen bars. Therefore it provides a healthy activity for young adults to socialize and enjoy with friends. Breathing higher
concentration of oxygen has several benefits; the most commonly reported benefits are increased
energy, an uplifted refreshing feeling, clearing the mind, relief of toxic headaches such as
hangovers, relief of stress and promotion of higher concentration levels. Therefore parents need
not worry about the childs health.
-
8/13/2019 144601597 OxyBar a New Business Launch
10/15
10 | P a g e
Primary ProductOxygen Bar and relaxing ambiance is the core service product aimed at
providing a relaxing environment which is healthy and socially
acceptable. The equipment allows you to wear the inhaler like a mobile
headset and emits fresh scented and flavored oxygen to inhale while
enjoying the ambiance and talking to your friends.
Flavors available:
Mango Bubblegum Cappuccino Ginger
Vanilla Lavender Peppermint Ginger
Apple Orange
Supplementary Products Fast food and snacks Drinks and shakes Canned Oxygen Spa Massage corner LCDs (movies and cricket matches)
PriceSince it is the one and only oxygen bar in Karachi and the concept is new a market skimming
pricing strategy will be used to create a premium positioning the market. The product will be
priced at a premium to ensure that the quality of service is not compromised.
The oxygen shots will be priced on the basis of time rather than consumption level. We will be
having the following prices
S. No Product Pri ce per uni t (Rs) Group discount on 6
1 Flavored Oxygen (all flavors) 500 /30mins 2500 / 30 mins
2 Club Sandwich (beef, roasted chicken) 250 1300
3 Soft drink (500ml) 50 250
4 MilkShakes 200 1100
Canned Oxygen
-
8/13/2019 144601597 OxyBar a New Business Launch
11/15
11 | P a g e
1 Spa treatment 500 -
2 Massage 700 -
Since the booths will be made for a group of 6 to aid yield management a discount will be givento groups of 6 and multiples. This would allow us to run on capacity without wasting seats. Also
deals would be introduced on weekend lunches to attract more guests in this time.
Place
Due to the nature of the product the location chosen is Zamzama Street. It is a posh area known
for high profile cafes and the target market is already going there for sheesha bars and cafes. We
would also have an advantage of a cluster already prevalent there. Our location would be a
separate building instead of a basement or a floor in a building. This would allow usfuture
expansion possibilities and valet parking facilities would be provided as there is a known parking
issue at Zamzama street.
Promotion & Education
This P of the marketing mix of our service
will be dealing with introducing the
concept of Oxygen Bars to the market. Our
promotions strategy will be based on the
category development and conversion from
smoke-inhaling market, primarily by
educating people about the benefits and
superiority of oxygen bars over traditional
inhaling utilities. However, since we are
positioning it as one of the recreational
item, the health benefits will be a sub-set
of overall strategy.
According to the already mentioned study,
most of the people dont know about the
-
8/13/2019 144601597 OxyBar a New Business Launch
12/15
12 | P a g e
actual contents of Sheesha and the fact that it contains harmful elements like heavy metals and
Carbon Monoxide. Tobacco is perceived as the only harmful content of sheesha. Moreover, only
a few health hazards of sheesha smoking are perceived, like respiratory and cardio diseases,
whereas there are several other hazards like Cancer, Infertility and Low birth babies with very
less awareness.
After coming up with the communication message and estimating the size of the market, our
promotional strategy will be using the following marketing tools:
Social Media: Most of the recent caf chains have leveraged this medium to reach out to
the masses and generating the business. Similarly, our strategy will also ensure that we
are present on Facebook and Twitter to create awareness among the relevant groups.
Although, there will be campaigns related to discount coupons and creating the required pull, but this medium will be kept specifically to create and maintain the awareness
levels.
BTL Activations: Since our target market is primarily the young adults, we will organize
the BTL activations at schools, colleges, and universities. Moreover, different malls and
sports complexes will also be targeted in order to directly reach out to our targets. Since
in the human life cycle, sheesha smoking is started at around 20 years, all these
aforementioned areas will provide us the point to market entry, where we will be tapingthese individuals from the very beginning of their consumption cycle.
Word of mouth: Our major focus would be on the customer satisfaction and providing
best of class experience. One of the by-products of this would be the word-of-mouth by
the well-satisfied customers. Special efforts will be dedicated towards generating word of
mouth so that our service is marketed properly.
Physical Environment
As mentioned previously, physical environment
of our overall service package would include the
in-take of oxygen shots in the simulated
environment. There will be different rooms
-
8/13/2019 144601597 OxyBar a New Business Launch
13/15
13 | P a g e
dedicated to a group of flavors, and upon choosing a specific flavor; the consumers will be taken
to that room. Simulated environment is present in order get support from the sensory marketing
tools 2 like mild sound effects, 3-D wall paintings, specific scent (air-freshner) and furniture. This
will not only provide a good ambiance, but also help us to focus and touch the senses of
consumer (smell, sight and hearing).
People
Major Suppliers, i.e, our vendors from whom we will be getting our supplies of Oxygen
Cylinders. One team member would be dedicated to ensure that the supplies meet the safety and
quality requirement set by the Health Care organizations. Well trained and well groomed staff
would be hired to provide a unique experience to our customers. The prime focus of these
waiters would be to create maximum awareness and advocate the customers about the services provided by our caf.
Our duty managers would keep vigilant supervision that the guests are served by the waiters in
the best possible manner and with high courtesy. Our duty would also include Bar Serving
Team( Drinks) , Oxygen filling team, Food Serving team, Security Team, Quality Inspection
officers.
Process
Process involved in this unique Oxygen Bar Cafes would involve various external and internal
customers connected to this service. This is a unique service that is completely new to the
Pakistani Market. The Chain would begin with finalizing our Primary vendors who shall be
ensuring a constant supply of Oxygen gas Cylinders at our Caf.
Our Vendor selection process would include:
Analyzing the business requirement
Vendor Search Request for Proposal/ Request for Quotation Proposal Evaluation & Vendor Selection Contract Negotiation Mistakes
2 Th e Sense(s) and Sensibilities of Marketing , Dividend (Alumni Magazine), Ross School of Business.
-
8/13/2019 144601597 OxyBar a New Business Launch
14/15
14 | P a g e
Once we have developed a strong vendor network then we would focus on acquiring consulting
services from an expert. With his knowledge we can expect to attend to administrative business
tasks while keeping up with laws, regulations, permits and licenses that affect the ownership and
distribution of oxygen equipment, particularly reimbursements that are contingent upon
Medicare and Medicaid billings.
Investing in quality equipment would ensure that we keep a healthy supply of cylinders of liquid
oxygen, compressed oxygen, transtracheal oxygen, oxygen concentrators, contents indicators
(pressure gauges) and flow meters.
We would also need to track trends in the medical oxygen supply industry so you're always at the
forefront of new advances and delivery systems. Pay particular attention to updates on low-cost
modalities, cylinder duration tests, lightweight cylinder material introductions and time- andcost-efficient Trans filling systems and equipment.
Productivity & Quality
Oxygen Bars is the service that requires initially investments in terms of time and money to
achieve a certain level of quality and productivity. After making these investments, maintenance
of the apparatus is required only. Moreover, as promised by our brand, the apparatus used will be
up to the international standards and special focus will be giving in order to maintain this image.
-
8/13/2019 144601597 OxyBar a New Business Launch
15/15
15 | P a g e
Conclusion:Oxybar is a great opportunity we can foresee. This opportunity can be tapped by our business
plan. Being the first movers in the market we will have the advantage of a quicker and bigger
customer base. We plan to target the athletes, young adults and stressed businessmen. Thisservice bar will be premium priced and since location is the deciding factor of quick breakeven
we will locate at Zamzama street which already has the target market who can afford our service.
Apart from the main oxygen shots our revenue stream will be including snacks and drinks.
Our future outlook is having multiple branches in the posh localities of the city and later on
expanding to other cities.