Strategy and Positioning Paper

Greg Moreno and Tim Sosa

MKT/421

February 9, 2015
Keri Sanders

Strategy and Positioning Paper

The Jungle Overview The Jungle is a nightclub/lounge unique to its venue and yet modern with a feel of fun and relaxation after work. The Jungle will be a direct movement in the entertainment business as well as offering food for customers to satisfy a late night bite. Our direct line of product and profit will be obtaining and maintaining a social nightlife crowd that attracts business casual and a young mature demographic. Located in downtown Phoenix, we will have a menu that serves quality drinks at a higher price or local brand beers to ring in the younger clients. Being in a prime placement next to the light rails, our atmosphere will be seen by thousands of students, business workers, and tourist aboard. With the right amount of time and proper promotion, The Jungle will become the new trend to Phoenix!
Product & Service The nightclub/lounge product may seem moderately simple but there will be much factors that tie into what it is we plan to promote, sell, and cultivate. Being that our target customer will be between the age groups of 24-35 it is important to pertain to lifestyle products that may attract this age group. According to "Nightclub Owner " (2011), co-owner of a management service company Ray Ford says, “The average life of a nightclub or bar is two years.” Knowing the market and understanding your window of opportunity; this investment has to be all or nothing. Developing our product and business will be a process with the various permits to obtain. According to DLLC (2014), Liquor License in Phoenix can take anywhere from 65-105 days. This means that development of our product will be on hold until certain prerequisites are taken care of before opening day. The Jungle will definitely need a signature brand, symbol or theme to capture or image as a brand that can be easily remembered or identified with a club. A symbol of a lion, which resonates with the “jungle theme” and brings back a familiarity with the king of the jungle. The Jungle will also be unique to its interior decorations and layout. Retractable walls that reveal the night sky and a dance floor made of see through to an aquarium; The Jungle will enlighten your visual senses. Proper permits will be taken into liabilities that may occur and building code inspections for the layout. Service will include a full kitchen to prepare food as well as a full service bar. Table runners will make courteous stops from kitchen and bar to customer’s tables. Certain VIP sections will have designated bar service and rush delivery of orders. To ensure our guests safety and protect the well being of the club security will be assisting will entry into club as well as being present throughout the club.
SWOT Analysis
Strengths
The profitability of nightclubs can be very lucrative if your customers come to have a great time and excuse the high markup prices. According to Le Draoulec (2007) markup prices at a club for liquor can range anywhere from 125% to 1000%. This number is staggering when you look at financially profiting from a product. Another key strength the club will illustrate is how organic the business will operate with incorporating music, alcohol, and food. Bringing the Phoenix culture through the local bands and DJ’s performing will attract the ideal crowds for the business.
Weaknesses
Hours of operation will be a precautionary to ponder when realizing the club has a small window of operating. Weekend nights from 10:00pm to 2:00 am will be the clubs prime hours. The nightlife business is a cut and dry business which needs to operate at perfection during hours open. As said before the club scene and trend will have to be a short term investment that lays out the investment and outlook on return in hopefully two years.
Opportunities
The Jungle if run and managed properly has an opportunity to become a landmark in the heart of downtown Phoenix. There is always going to be competition that arises but if we create a signature scene for locals that attracts the tourists; The Jungle will survive and profit for to turn the investment clockwork that produces money. The opportunity to establish a successful club will intrigue buyers to buy the company and as owners we can sell the business for a high profit.
Threats
There are many threats to examine when digging for liabilities of operating a nightclub. Security is a high priority when operating a club/bar it is prudent to never allow something that will tarnish and instantly ruin the reputation of the business. The Jungle is about image and when you immediately label the club with having problems with drugs or underage drinking you will forever lose clients. Than there is always the threat of being sued or being hit with a lawsuit for allowing this behavior. According to DLLC (2014), most states classify it as either a Class I or II misdemeanor. Depending on the circumstances, this could mean anywhere from 30 days to one full year in jail, monetary fines that could total thousands of dollars, or a temporary suspension or permanent revocation of the establishment’s liquor license.
Competitive Analysis
Supplier Power The nightclub will have to deal with suppliers and actions that may or may not change the business. The number one suppliers will be the alcohol suppliers that bring in our main product. Negotiating prices and purchasing in bulk will be an asset The Jungle will use to store. With that being said the property will need to have a square footing large enough to hold kitchen products as well as a cooler and store ground suitable to keep inventory.
Buyer Power Our plan to bring local alcohol into the club will hopefully give the company an opportunity to work with other companies that will support the branding of our product as well as theirs. Working as a unified company that promotes several products that bring life to new clients will allow the buying of product to be reasonable.
Competitive Rivalry The entertainment business will host numerous competitors and as unique as The Jungle may appeal to customers we will still have our hands full on the market. From local bars, to strip clubs, to clubs, and even restaurants, the business to which we are trying to advocate will encounter white noise from many angles. The business will have to align with what is the consensus in price range and what the demographic area is willing to pay. Economically the company will have to keep up with certain situations in which the business will have to look for promotion of certain “loss leaders.” Loss leaders in a business is where the company losses money on a certain product but in return is looking to spark up business by luring in customers for that certain deal.
Threat of Substitution The threat of substitution in the club/bar business may be adapting to the changing trend. Say the POS system changes to something more simplistic, the bar will have to adapt or lose that fashion. Lately business have been trying to adapt portable devices for taking your own order and receiving it from the kitchen without the use of a waiter. Sound system is another threat with the technology era changing every 6 months with the bigger and better software. No business can be realistic featuring anything but flat screen TV’s at their venue.
Threat of New Entry New business springing up and offering product that is cheaper and more extravagant then yours will change business. If The Jungle has an established name, experience, and product than competitors will either have to compete with our willing or adapt to our nature. If your business cannot change or remodel its ideas than for a club/bar business you may have to close down.
Criteria for Target Market
Geographic
Being able to define a geographic location is one of the many keys to success for The Jungle. Since we count on a city with a decent population and diverse people we have chosen downtown Phoenix to open our club. We wouldn’t want to open a club somewhere that really has no need for one, which has no night life. Like in a retirement community or by a preschool or something of that magnitude.
Demographic
Demographics usually identify a criteria by gender, income, race, and martial status. While we would love to cater to everyone, the simple fact is that it is impossible to make everyone happy a hundred percent of the time. But The Jungle will give the best service and quality it can to whoever will spend their hard earned dollar with us. We would like to cater to the business casual, middle to high income people of Arizona. Aged from 21 to roughly 40. They can be single, but we also want couples to have a great night on the town. Preferably with incomes of $60,000 to $100,000 a year. We will cater to both the female and male population, with a slight emphasis on women, because if we have a slightly higher ratio of females to males then of course the males will follow behind.
Psychographic
Psychographic details in the emotional aspects of the consumer and their thought process in buying a product or service. With The Jungle, we will be selling the aspect of luxury. Every time our consumer walks in, we want them to feel like a status symbol in their own mind. To have them dazzled and in awe the great detail and work we provide to them. Attention to detail is key to many things in life, and here it will be used to have consumer coming back every weekend.
Behavioral
Behavioristic details in the buying habits of consumers, as well as establishing brand loyalty and how often people will come to visit our club. With Downtown Phoenix being a hot spot for night life, we want to make we are diverse enough from our competition with our brand. We will want to actually show and give a reason on why the consumer should choose us instead of driving to the next night club or bar. Along with our luxurious inside, we want the outside of our club to show what we are about. With gold lion represents status, and the outside walls of the club painted green, blue, and orange. To promote refreshment, trust, efficiency, and fun.
Positioning Statement Our positioning statement will be as follows, “For thrill seekers, The Jungle is a luxurious night club, that is unparalleled in excitement and entertainment among the average night club industry. The Jungle will cater to your wild side with our five star kitchen, top shelf drinks, guest celebrities, and amazing lighting and dance floor. Come one, come all, we will make you roar with excitement.”

Organization’s Competition The Jungle’s competition in the downtown area will be Copper Blues and The Gypsy bar. Each venue offers similarities that The Jungle will have to embrace. Copper Blue located in a prime location offers live bands and wide variety of local beers. The Gypsy Bar also located in CityScape in the heart of downtown Phoenix, has over 10,000 square feet of room to roam, drink, and dance. Another competitor in the lounge/restaurant area is Blue Hound Kitchen. This location appeals to the business profession for a drink and bite after work.
The Jungle VS Competitors The Jungle will clearly have to establish a brand for itself with these luring competitors bringing a strong front. The Jungle will offer sections of what it’s competitors all offer equally. The Jungle will offer a section for dancing and club vibe; as well as a section for the lounge and restaurant area. The appeal of meeting the club goers and business clients looking to grab a drink with co-workers, is what The Jungle offers. Local unique food and drinks will inspire companies to work with the local business we advocate.

References
Nightclub Owner . (2011). Retrieved from https://www1.cfnc.org/Plan/For_A_Career/Career_Cluster_Profile/Cluster_Article.aspx?articleId=4XAP2BPAXuq3lgI61sjL0FszDu8jgXAP3DPAXXAP3DPAX&cId=3XAP2FPAX6J7I3kztATGuYyXAP2BPAXDahIQXAP3DPAXXAP3DPAX§ionId=3 DLLC. (2014). Arizona Department of Liquor . Retrieved from http://www.azliquor.gov/faq.cfm#howlong
Le Draoulec, P. (2007, November 2). Most Expensive Bottle Service. Forbes. Retrieved from http://www.forbes.com/2007/11/02/vodka-clubs-bottle-forbeslife-cx_pl_1102bottleservice.html
How to Identify a Target Market and Prepare a Customer Profile. (n.d.). Retrieved from http://edwardlowe.org/digital-library/how-to-identify-a-target-market-and-prepare-a-customer-profile
Psychological Properties Of Colours. (n.d.). Retrieved from http://www.colour-affects.co.uk/psychological-properties-of-colours