wall street bar business plan
TRANSCRIPT
Wall Street Bar Business Plan
Date of Submission: 16/4/2015
Word Count: 5,371
Team 14: Gina Salvo, Mario Roma, Maeve Cronin
Managerial Finance & Entrepreneurialism
MSc Hospitality Management
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Table of Contents
1 Executive Summary. ................................................................. 3 1.1 Business Objectives. ......................................................................................... 4 1.2 Mission Statement. ........................................................................................... 4 1.3 Guiding Principles. ........................................................................................... 5 1.4 Keys to Success. ................................................................................................ 5
2 Company Description and Ownership. ..................................... 6 2.1 Start-Up Summary. .......................................................................................... 6 2.2 Location, Facilities and Staff. ........................................................................... 6
3 Products and Services. ............................................................. 8 3.1 Sourcing and Fulfillment .................................................................................. 9 3.2 Future Products and Services ........................................................................... 9
4 Market Analysis Summary ..................................................... 10 4.1 Industry Analysis ............................................................................................ 10
4.1.1 Industry Participants ..................................................................................11 4.2 Competition and Buying Patterns .................................................................. 13
4.2.1 Main Competitors ...................................................................................... 13 4.3 Unique Selling Point (USP) ............................................................................ 16 4.4 Competitive Advantage .................................................................................. 16 4.5 Market Segmentation ..................................................................................... 17
4.5.1 Market Needs ............................................................................................ 20 4.5.2 Market Trends ........................................................................................... 21 4.5.3 Market Growth .......................................................................................... 22
5 Marketing Strategy and Implementation ................................ 23 5.1 SWOT Analysis ............................................................................................... 24 5.2 Promotion Strategy......................................................................................... 24 5.3 Pricing Strategy .............................................................................................. 25 5.4 Milestones ....................................................................................................... 26
Appendix 1 ................................................................................ 27
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1 Executive Summary.
The Wall Street Bar uniquely provides a high class, electric atmosphere for the after
work crowd and tourists. An integrated technology system combines applications and
user friendly formats to allow for seamless transactions and exemplary customer
service. Having touch screen devices readily available at tables, as well as an app that
can be downloaded, customers can create and sign into a basic account. Using their
account they can purchase food and drink quickly and have it delivered to their seats.
The trading prices of the drinks we offer will fluctuate as the night progresses based
on supply and demand. Several stock ticker screens throughout the bar will allow
customers to monitor prices and try to buy low. Utilising the Grand Canal Dock area
for its numerous technology and financial companies, as well as the four and five star
hotels, will bring in a steady flow of prime consumers. This provides for a “local”
client base and a diverse tourist base of both leisure and corporate customers. This
type of interactive bar is unique to Dublin.
With the app and technology up and running from the start, the bar is able to run on
efficient staff. Because this will be a cashless system with access to basic
demographic information, there is great potential to be able to track our consumers
purchasing habits instantly and adjust almost on a daily basis for allowances in the
change in demand in the market. Inviting local musicians who play atmospheric jazz
and instrumental music will boost weekend entertainment for the locals and tourists
alike.
Taking into account all of the businesses in the area, providing a conference
room/event room will bring in additional revenue. The need for a place to hold
business lunches and celebrations or holiday parties will create another stream of
revenue.
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1.1 Business Objectives.
To engage our clients in creating an account with us and participating in the
gamification;
To have repeat business within the first month;
To have word of mouth advertising for repeat and new clients;
To have clients utilise social media;
Encourage clients to express opinions and suggestions;
Maintain tight control of costs and operations by hiring quality management
and utilising automated computer control.
First year goals:
At least an average of 160 clients everyday with an average spend of €21;
500 accounts created prior to opening;
Have at least one big corporate meeting per month;
Attract 10% of 4 and 5 Stars hotels monthly clients.
Two to five years:
Create and launch new menu items;
30% growth of number of clients per day, or average ticket;
Have at least 50% of clients from first year come back with a new client;
Double the number of corporate meetings;
Attract 15% of 4 and 5 Star hotels monthly clients.
1.2 Mission Statement.
Wall Street Bar’s mission is to provide an exciting and interactive atmosphere to
enjoy beverages and tapas. To create a dynamic events room for business luncheons
and private parties. To maintain a high standard of excellent service at all times
utilizing integrated technologies for efficiencies. Wall Street Bar exists to build,
maintain and preserve a long-term relationship with our clients, delivering superior
value through an exclusive and new bar experience.
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Vision
We want to create a fantasy world for our clients to step into to live a lavish lifestyle.
A fun and competitive environment coupled with cutting edge technology and
outstanding service will create long term relationships with our valued customers.
1.3 Guiding Principles.
Loyalty, Honesty, Creativity, Respect, Reliability, Quality, and Fun.
Our clients will receive the utmost care and service to be provided by our reliable and
honest staff. Consistently high levels of customer service and quality products will
ensure our customers return. Creativity will be encouraged by staff and clients to
foster a fun-loving and open environment.
1.4 Keys to Success.
Maintaining high quality control over the tapas and cocktails
User friendly interfaces for the touch screen devices and smartphone
application
Dynamic approach to customer service
Assessing profit margins on drinks to allow for fluctuations in supply and
demand
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2 Company Description and Ownership.
To provide protection from liability an entity called Wolf of Wall Street LLC will
own the Wall Street Bar. Directly invested in Wolf of Wall Street LLC will be private
equity from Maeve Cronin, Gina Salvo, Mario Takao as well as a fourth entity called
Wolf of Wall Street Inc. The Inc. entity will take on the responsibility of the bank
loan used to fund the business therefore shielding the private investors from
additional liability. Mario has 8+ years of management and marketing experience,
Gina has 9+ years experience in the finance industry and Maeve has 8+ years in the
bar industry.
2.1 Start-Up Summary.
We will require a bank loan of €200,000 which we will obtain from the Bank of
Ireland and were quoted a 5.74% interest rate to be repaid over 60 months. Each
owner will invest €50,000 for a total of €150,000. This should keep us in operation
for at least the first 6 months after we invest in advertising and run an opening event.
2.2 Location, Facilities and Staff.
We are located in the Grand Canal Dock area and have a main bar with a mixture of
tables and high tops for a better traffic flow and more intimate settings. A separate
events room with a boardroom-like concept for meetings, luncheons, dinners and
parties.
Opening Hours:
Tuesday to Thursday: 17:00 - 23:30
Friday and Saturday: 12:00 - 00:30
Sunday: 12:30 - 23:00
The docklands area has undergone major redevelopment over the last decade and now
comprises modern office blocks, residential buildings, The Bord Gáis Energy Theatre,
hotels, bars and restaurants and retail units. The area is also home to a number of
international companies including State Street, BNY Mellon, Beauchamps, Facebook,
Airbnb, McCann FitzGerald, Willian Fry, Mathesons and Google.
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The management team will be made up of the private investors with Mario as
marketing manager, Gina as finance manager and Maeve as bar manager. Remainder
of staff team includes two part-time bar supervisors, eight part-time staff (mix of
floor/bar/kitchen) and one full-time chef.
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3 Products and Services.
Product Description
The Wall Street Bar will sell an assortment of domestic and foreign beers on draught
and in bottles, craft beers, a selection of prosecco and custom cocktails that will
change periodically will also be available. All regular spirits such as gin, vodka and
whiskey will be on offer as well as a variety of non-alcoholic mixing beverages.
Tapas will be provided to encourage mingling and provide sustenance for customers
who wish to indulge for a few hours at a time. To keep the menu fresh and interesting,
different tapas will be offered nightly with a few being staples and the others
changing based on seasonality and availability of fresh ingredients.
Service Description
Customers will be able to trade on the price of selected drinks and the bar will see
increased profit per beverage sold as demand grows and supply dwindles. Based on
the frequency and quantities of orders the prices will rise and fall accordingly,
monitored by the bar manager. Throughout the bar, several Stock Ticker screens will
display prices during the evening and changes will be announced by a bell, just like
the opening of the NYSE.
The Wall Street Bar will be a cashless bar. This will be possible via the bar’s own
smartphone app whereby patrons will create a basic account, set up a profile and
securely load credit to their profile allowing them to order and pay for food or drink
in our bar.
Each table will also be equipped with a touch screen device, supporting our app, that
will allow customers to purchase food and drink in real time at real time prices.
Orders will be immediately transmitted to the kitchen or bar to be prepared and
delivered promptly by a dedicated wait staff.
Our bartenders will be quick and efficient to keep drinks coming at the same rate as
demand. Particular care will be taken that there is a limit to how many drinks a table
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can order within a given period of time to avoid over consumption and maintain a
manageable level of service to our clients. Our wait staff will simply be in charge of
running drinks and food from the bar and kitchen to the tables and clearing away
plates. All orders will be placed by the customer either on the app or on the touch
screen provided at the table to ensure the client orders and receives exactly what they
want.
Music will be provided via a DJ and live jazz or funk band to create a trendy and
exciting atmosphere while still allowing customers to chat with each other
comfortably.
3.1 Sourcing and Fulfillment
Stock
Four Corners - draught and craft beers
Celtic Whiskey Shop & Wines on the Green - spirits and prosecco
Local farmers markets and Musgraves - tapas
Exemplary employees – service
Technology
Interactive menu and smartphone application (see Appendix 1)
Integrated system with the kitchen and bar
LED screens for the stock tickers
Charging docks for customer devices
3.2 Future Products and Services
Live music
Theme nights
Stock market “crashes”
Ordering ahead on the app to have your drinks ready for you on arrival
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4 Market Analysis Summary
Our market is a consumer market within County Dublin, consisting of native and
foreign residents as well as tourists, all of whom have a desire to and actively
consume alcohol socially in bars.
4.1 Industry Analysis
Statistics from the Drinks Industry Group of Ireland (DIGI), through its report “The
Economic Contribution of the Drinks Industry 2013”, show that from 2008 until 2013
the industry has suffered a substantial decline but still makes a significant
contribution to the Irish economy with all its different sectors: manufacture,
wholesale distribution, on and off-license retail distribution.
The alcohol industry in 2013 provided 62,000 jobs, where the on-license sector is the
biggest employer, with over 8,500 on-licensed outlets in Ireland (DIGI 2013) against
1,700 full off-licenses. Pubs in Ireland employed nearly 50,000 people across 7,400
units nationwide, with only 10% of these located in Dublin, amounting to 740 pubs
(AIB 2013). The industry generated over €2 billion in VAT and excise receipts in
2012. Bars and pubs wage expenses in 2013, in Ireland amounted to roughly €535
million and the CSO suggests that in 2012 the expenditure on beverages was €6.4
billion (CSO).
The breakdown of the alcohol market is composed as follows: beer amounts to 47%
of the total alcohol consumption, followed by wine (26%), spirits (19%) and cider
(8%) (ABFI, 2013). Moreover, 64.7% of beer consumption was through the on-trade
channel in 2013, against 35.5% via the off-license. The total beer consumption per
capita in Ireland for the same year was 79.2 litres and the total alcohol per capita was
8.38 litres of pure alcohol.
The AIB Overlook Report (2013) mentions that the majority of Dublin pubs have
turnover of €635,000 and up. This gives us a good view of the expected turnover and
which category of pubs will be our competitors. The graph extracted from this report
shows the turnover ranges from pubs in Ireland.
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4.1.1 Industry Participants
In order to fully comprehend our industry participants and to estimate
the level of difficulty in opening the Wall Street Bar and more
importantly to know where to concentrate our efforts to raise profits, it is important to
analyse our business according to Porter's 5 force model, as shown on table 1.
(AIB 2013)
(AIB 2013)
(AIB 2013)
Graph 1
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Table 1
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4.2 Competition and Buying Patterns
Patrons normally look for a local pub (close to home or work), that already has a
strong reputation and that has a commonly accepted average price for beers and
cocktails. There are also a few bars that attract specific clients in relation to their
style, sexual orientation or nationality, for example a gay bar or bars known for
having mostly Brazilian customers.
In general we can say that competition amongst bars and pubs in Ireland is mostly led
by reputation and price, where bars and pubs with better reputations can charge above
the average price, and the smaller, more local ones practice either average or below
average prices. Despite these differences, customers appreciate variety in their
products but do not solely base their choice of bar on this.
4.2.1 Main Competitors
With 740 bars in total around Dublin, not every bar will be a direct competitor or a
threat to the Wall Street Bar. For a more relevant competitive analysis we focused in
on two dimensions when looking at direct competitors; location and bar
type. Location is a relevant indicator of competitive threat as it identifies how easy it
is for customers to switch between bars, assuming the closer the bar the higher the
level of threat. For that reason, we split our competitors based on geographical
proximity into two groups. Proximity 1, including bars in the immediate vicinity to
the Wall Street Bar and proximity 2 which includes bars in the wider neighbourhood.
Table 2: Location
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In our second dimension we grouped competitors by the type of bar. We considered
bars that attract the same target market like high achieving professionals, bars that
offer similar products like craft beer and cocktails and bars with an ambience that
compares to the Wall Street Bar.
Indirect competitors to the Wall Street Bar consist of cafes that remain open late (past
6pm), offering a close substitute to a potential customer in terms of product (i.e.
coffee or alcohol-free drinks) and in terms of atmosphere (quieter, less people). Off
licences are also considered indirect competitors.
Future competitors include any existing or new bar in Dublin that starts offering a
level of gamification with the same target market in mind.
Table 3: Type of Bar
Table 4: Indirect Competition
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After a more in depth analysis of our direct competition’s product and service offering
(please see table above), we discovered the majority of bars in the GCD area,
competing based on geographical location, did not have enough other factors in terms
of their product or service offering, to be a significant threat against us.
We have therefore identified the bars that are similar in type to the Wall Street Bar as
a stronger threat. In particular, House on Leeson Street and Fade Street Social appear
as our strongest competitors, both competing on 7 out of the 11 comparisons
elected. We analysed both bars in more detail.
Both bars offer a full dinner service as well as tapas or light bites, suggesting the
target market is slightly different as they are attracting the dinner crowd as well. To
avoid direct competition in an area that is not our primary product, the Wall Street
Bar will refrain from expanding the food menu.
Table 5
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House charges an entry fee after 12am and is open until 3 or 4 am, differing again
from our offering. In terms of live music, House regularly hosts live bands and DJs
but this is run as an event where customers are charged extra for entry or must
purchase a ticket in advance. This differs to the Wall Street Bar in that our live music
is intended as background music to create a fun and relaxing ambience, customers
will not be charged extra for it.
In terms of pricing, the Wall Street Bar is positioned competitively against House and
Fade Street Social, by offering better prices while maintaining quality. Taking a pint
of Guinness as an example for comparative purposes, House charges €5.20, Fade
Street Social charges €5.90 while the Wall Street Bar sells it for €5.00. This type of
price difference is seen across the board, with the Wall Street Bar consistently
offering more attractive prices for tapas and alcohol.
4.3 Unique Selling Point (USP)
The Wall Street Bar competes the strongest in terms of service offering for a number
of reasons; we are the sole provider of a gamification element, the only bar offering
electronic ordering, the only one with a personal app and the only cashless bar in
Dublin. This gives the Wall Street Bar the opportunity to take first mover advantage,
we are pioneering this type of service offering (technology led & cashless) in Dublin
and will be the experts at it here positioning us strongly against any potential future
competitors.
We understand the risk involved of being a first mover and challenging the status quo
of service delivery in Ireland. To overcome any difficulty customers may have with
adopting the technological elements of our service, we have short video tutorials on
our website outlining the necessary steps for our customers. In addition, all of our
staff will be able to communicate the process effectively on site.
4.4 Competitive Advantage
All direct competitors have social media presence across two to three platforms and
so have strong brands as well as various communication lines with their customer
base. To address this, the Wall Street Bar will use Facebook, Twitter and Instagram
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profiles to post relevant and engaging information regularly to build a strong fan and
follower base while simultaneously building our brand.
The Wall Street Bar has a competitive advantage here due to the added line of
communication through our own app that serves for a more direct and personalised
line of communication than a social media outlet can offer. This will build customer
relationships and loyalty, which should impact our brand by growing positive social
media chatter generated by our customers, as our app allows for direct cross platform
posting, facilitating simple and seamless reviewing and expression.
4.5 Market Segmentation
Our Market segmentation scheme divides our consumer market into three groups:
Geographic: County Dublin provides a substantial market.
Demographic: Male and female business professionals in the age group of 25
to 54 with an estimated €36,000 annual income, leisure and business tourists.
Psychographic: Social status and lifestyle, according to the Socio Economic
division, we are looking for customers that are classified as being part of
middle class, middle-upper class and a small portion of the upper class.
Using Central Statistic Office research, instead of benchmarking our competitors we
were able to estimate the numbers for our highest potential target market. We
analyzed a selection of different filtered data from the 2011 Census.
We would like to highlight now that the most recent census was carried out in 2011,
however there are two important more recent indicators we would like to highlight
now. There were 1.9 million in employment in Q3 2014, which is slightly more than
2011 (1.8 million), and an unemployment rate of 10.5% in January 2015, which is
considerably smaller than 2011 (14.6%). This suggests that the numbers we found
could be even higher now.
From the 2011 Census, we used the following filters for our analysis: people at work
(employed), socio economic group at work (employers and managers and higher
professionals, most probable group to earn at least €36K annually) and our age group
(25-54 y.o.).
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(CSO, Census 2011)
We are targeting three main segments, nicknamed Blue Chip, Foreign Trader and
Corporate, which are made up of a mix of all segmentation variables above.
Blue Chip Segment: These are geographic groups, aged 25 to 54 years old, employed
and earning annually an estimated €36K or more, who appreciate good night life,
enjoy socializing with friends, and have a level of interest in good food, beer variety
and different cocktails (see table 6).
Foreign Traders Segment: These are the transient customers who are in Dublin, either
from overseas or elsewhere in Ireland staying at least two nights in Dublin (less than
that a person won’t have time to visit us). The Foreign Traders fall under the
demographic and psychographic variable of the segmentation stated above.
This group is formed by tourists from anywhere in the globe, including Ireland, aged
probably between 25-54 years old as well, but either is a business tourist or a middle-
upper and upper class, as we are targeting people that are staying in four or five star
hotels.
According to Failté Ireland in 2013 there were 54 four and five star hotels in Dublin,
giving us the total of 9313 rooms. The occupancy rate in 2014 was 65%, which gives
us 6,053 average rooms from four or five star hotels. On average, 57% travel alone,
22% were couples and 21% a group of 3 or more. If we distribute these percentages
by the total rooms occupied, our estimated number of people for this target market is
19,855 people per year (see table 7).
Table 6
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(Failte Ireland)
Corporate Segment: We identified huge potential for this segment due to the high
number of prospective clients in the form of multinational companies in our vicinity.
This segment is similar in demographic terms to the Blue Chip group, but are
socialising in a different capacity. Here they are out with work colleagues or clients,
where the evening is often expensed on a company card.
There is potential in two regards for this segment:
Team nights out/bonding events. Take Google or Facebook for example,
where the team is taken out roughly once a quarter. On top of this, the teams
socialize ‘unofficially’ throughout the year, where the meetup is encouraged
by a manager, but everyone pays their own way
These companies often look for an alternative, fresh environment somewhere
off site for company meetings. Our meeting space accommodates for this
need.
We understand that lower drink prices could attract a segment that is outside of our
desired target market. However, we are confident that the requirement to download
our app, set up a profile and load credit before purchasing a drink will act as a strong
barrier to entry, deterring that undesired market segment. Furthermore, this tends to
only be the case for extremely cheap prices; even when our prices drop they won’t be
that low. If it becomes an issue we will introduce door security as a precaution.
Table 7
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4.5.1 Market Needs
We ran a keyword analysis on Google’s Keyword Planner Tool, using words and
search terms associated with the main aspects of the Wall Street Bar to determine the
search volume online for these key aspects and so determining the level of interest
and market need for a service like the Wall Street Bar.
We limited the analysis to searches made in the Dublin area in the last 12 months and
added ‘recipe’ as a negative keyword (to exclude searches where the individual is
looking for a tapas recipe for example) in an effort to provide a more relevant set of
results.
Average monthly searches per keyword as of 20/03/2015:
Total average monthly searches as of 20/03/2015
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From the results it is clear that there is a high interest, with a total average of 3,770
searches a month for a range of related products or services, making the Wall Street
Bar all the more relevant.
4.5.2 Market Trends
According to drinksindustryireland.ie, One Big Switch and AIB Overlook Pubs 2013
recent market trends include:
A survey, answered by 355 randomly selected people in the streets of Dublin
reveals that:
o 7 in 10 customers choose pub with free Wi-Fi.
o 90% expect free Wi-Fi service in the pub.
o Majority claimed they were willing to give personal information in
order to have access to free Wi-Fi
o 41% of these respondents were tourists. This is a very significant trend
for our business.
Bars are using social media as an effective communication channel with their
customers as well as smartphone apps
Ireland is the 3rd
most expensive European night out, costing around €112 euro
per person and includes transport, dinner, drinks, babysitting and late night
food.
‘Pre-Drinking’ is popular or drinking alcohol at home before going to a bar to
avoid paying ‘pub prices’.
1 in 4 of the Irish population eats in pub.
Craft beer movement is attaining more followers each day.
8 in 10 publicans in Dublin have organized an event to attract customers.
1/3 of pub customers are under 30 years old and 43% of publicans are not
doing anything in particular to target this market.
The Wall Street Bar addresses and embraces these trends. To accommodate for the
tech-oriented clients we will provide wifi, power outlets and engage in social media
via our smartphone app. In terms of embracing food and drink trends, we have an
extensive stock of craft beer and an ever changing menu of tapas, with a ‘light’ option
for the health conscious consumers. Pre drinkers can be tempted into the Wall Street
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Bar on occasion because of our changing prices, this could also bring down the
average cost of a typical night as outlined above. As a part of our demographic
consideration, our target is the young professionals from 25 years old and up
capturing the ⅓ mentioned above.
4.5.3 Market Growth
The Irish economy is recovering well from the 2007 downturn. From a macro
perspective, the economy has experienced a 4.8% growth in GDP in
2014, positioning Ireland as having the strongest growth in Europe (IBEC) and GDP
is forecast to grow by 4% in 2015 and 3.5% in 2016 (ESRI).
Other positive economic indicators relevant to the Irish on-trade sector include a
decline in the unemployment rate, which dropped to 10.5%, one of the best
performances since 2012, to CSO and is expected to fall to 8.4% in 2016 (ESRI);
consumer spending grew by 1.3% in 2014 and is estimated to grow by 2.7% in 2015,
and finally the consumer confidence rate reached 84.7 points, representing a growth
of 30% in respect to 2013. (IBEC Quarterly Economic Outlook, Q4 2014).
More than just gaining market share, The Wall Street Bar wishes to contribute to the
growth of the total market with innovative technology, a new experience in alcohol
consumption and high quality service, food and cocktails, as well as fostering an
active and positive relationship with the community by sponsoring local charity
events.
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5 Marketing Strategy and Implementation
Social media and word of mouth will be essential to generate interest for our first few
months in operation. We will also work closely with local businesses and hotels to
advertise and draw customers in to gain initial market share.
We will focus our campaigns towards our target segments; Blue Chip, Foreign
Traders and Corporate and our efforts will be concentrated in the Dublin region.
Our strategically chosen location in Dublin 2, specifically the Grand Canal Dock Area
is, as mentioned, where many multinationals in Dublin are headquartered, and the
following four and five star hotels are all within walking distance: The Marker, The
Gibson, Maldron, Shelbourne, Merrion, Westin and Dylan Hotel. The Bord Gais
Theatre and the 3 Arena are close by, both with busy event agendas that attract over
2,000 and 20,000 people to the area, respectively.
The area is well serviced by transport including the Dart (Pearse Street/Grand Canal
Dock), Luas (red line), Buses and Night Link Buses (15, 33X, 44, 47, 56, 77 142, 151,
747) and Taxis.
Through our app, we can analyse clients information like their spending habits and
social media activity allowing us to run more targeted campaigns. Our app will allow
for direct communication with our customers and provide us with instant feedback via
ratings and suggestions. Appendix 1 shows details of the integrated platform.
Providing value added items like free Wi-Fi, charging stations, and touch screens at
the table for customers to use will improve their experience and help to build a repeat
customer base. This way they can top up their accounts, let their friends know where
they are and interact with fun, real time updates. The chic décor and stock ticker
screens will create a unique identity to help establish our brand with our customers.
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Strengths Weaknesses
Location: Grand Canal Dock Area New to market and unestablished
Gamification Customer wariness of setting up an account
Cutting edge technology Unfamiliarity with app based F & B service
Quality products Deterring undesired market segment
Quality service
Excellent management
Privacy measures to protect customer information
Demonstrated presence of target market in Dublin
Wi-Fi
Opportunities Threats
Business travelers for repeat business 4 and 5 * hotel bars
Local loyal customer base in the IFSC Local casinos
Additional services such as live music Potential high wait staff turnover
Marketing schemes such as stock crashes to attract new business Potential rise in product costs
Possible expansion to other locations Copy-cat business
SWOT ANALYSISThe Wall Street Bar
5.1 SWOT Analysis
5.2 Promotion Strategy
For the pre-marketing promotion, we will use the general managers’ already existing
social networks to advertise our opening.
Two months prior to opening, we will identify a list of 200 names formed by a
selected number of community leaders, social media influencers and others from
within our target market. Contact will be made directly to the desired recipient via
LinkedIn, Facebook, Google+ pages and email where possible, introducing ourselves,
our brand and an official invitation to the opening event.
For the opening event, we will incentivise all 200 invitees to download our app by
gifting €4 to their virtual wallet. They can invite one friend (per invitee) to download
the app to receive an extra €1, and the invited friend will also be gifted €5 to spend in
the bar on the opening night.
Following this initial blast, mainstream social media marketing will be used as well as
promotions on apps like “Tempster”. Keeping in theme with our bar’s USP, we will
introduce an element of gamification to our marketing campaigns in the form of
competitions and giveaways on social media, with prizes of credit coupons for our
app and bar.
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We will market our meeting room to corporate clients, including an option of food
from local cafés (breakfast/lunch style) or our own tapas menu depending on request.
Fees will be based on length of the meeting and number of people.
When promoting the bar to our tourist target market, credit coupons for their virtual
wallet will be distributed inside rooms of 4 and 5 star hotels. Creating positive
relationships with the local hotels and cafes will be essential here.
5.3 Pricing Strategy
Taking into consideration that most consumers know the average drink costs in
Dublin, there is also a proportion of consumers who are not price sensitive and willing
to pay more for an “experience”. This market segment is where we can focus our
energy on a customer-driven strategy. The gamification and high class atmosphere
creates additional value for our clients. With a pristine premises and the latest
technology, it will be clear to our clients that we are not selling cheap beers at cheap
prices.
Our price strategy for our products is cost-based pricing, where we have set fixed
costs and can manage our variable costs. Those figures, together with sales forecast
(daily, weekly, monthly) can be used to determine the breakeven point for each item
sold in the bar. On the NYSE screen, all alcoholic beverages can have their prices
altered through the night by the management team. Management can choose between
selling by volume (market penetration pricing strategy – more value for lower price)
or by larger profit margins (premium pricing strategy – more value for higher price).
Management will have the ability to access constant analysis of the volumes sold of
each product and be able to compare daily actual vs. forecast, clients in, stock
available, and the popularity of products. The management team will set the prices
weekly, and adjust day to day, to achieve maximum profits while maintaining the
clients’ perception of good value for money.
According to our sensitivity ratings in our financial feasibility, our business is not
very profit sensitive to price changes. Our safety margin is quite high at 42.6% and
our breakeven point is low allowing us to manipulate the prices of a few items, a few
times during the night. The objective of the gamification element is not to increase
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profits but to offer a unique experience, add value for clients and increase the
popularity of the bar.
5.4 Milestones
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Appendix 1
average delivery time
TAPAS
TAP BEER
BEER
BOTTLES
COCKTAILS
APPENDIX 1
VALUABLE PERSONAL
CUSTOMER
INFORMATION FOR CRM
ACTIONS
DELIVERY TO TABLE
NUMBER 13 (Staff takes it
and ticks touch screen
terminal "Delivered")
"SALVO G. YOUR
COCKTAIL IS READY"
(Pick up Screen and Cell
Phone Notification. Staff
hands order and ticks touch
screen terminal "picked
up")
BAR
KITCHEN
STAFF TICKS RE-MAKE BUTTON
ON TOUCH SCREEN IF NEEDED
STAFF TICKS TOUCH SCREEN
WHEN IT'S READY
USB Charges on each
table and random places
Clients Creates
Quick Account
or Sign in with
account. Other
Personal Details
to be filled
INVENTORY FED BY
MANAGEMENT TEAM
Beer (types, litters, bottles qt),
Wine (names, qt) Prosecco
(qt), Cocktails Ingredients
(types, qt) Tapas Ingredients
(types qt)
PLACE AN ORDER,
WALLET GETS
DEDUCTED
AUTOMATICALLY,
CHOOSE BETWEEN
DELIVERY TO TABLE
OR PICK UP
Simply online secure and safe
top up using major credit,
Interactivity: top up,
access to complete menu,
write review, invite
friends, summary of NYSE
screen
MAIN PAGETable Touch Screen
BEVERAGES NYSE MAIN SCREEN AND SUPPORT SCREENS
Mgmt feeds Screen according to real
time Stock Info
Download Free App: Android and Iphone
REAL TIME INFORMATION TO
MANAGEMENT (actual stock, number
of people in, most ordered drink of the
day)
ACCESS
ProductionArea
Automatically up date inventory