Excalibur And Sports Bar Industry example essay topic

MARKET ANALYSIS Excalibur is faced with the exciting opportunity of being the first-mover in the restaurant sport bar market. The consistent popularity of female achievements, combined with the growing interest in female sports, has been proven to be a winning concept in other markets and will produce the same results in Atlanta. Market Segmentation We see Excalibur as appealing to three major market segments. Fortunately, the long, late night hours of operation will help Excalibur lend itself to multiple segment appeal.

Our market segmentation scheme allows some room for estimates and nonspecific definitions. 1. College Students -- By creating an environment that is appealing to college students, we secure a natural progression between the student and the young professional. Through word of mouth, Excalibur expects an increase of five percent annually from this segment. 2. Tourists and Business Travelers -- More and more business and travelers and tourists are finding themselves in Atlanta every year as is made evident by the increased demand and subsequent expansion of the local airport.

We plan to reach these people through direct marketing to local hotel patrons. We anticipate a 20% annual growth rate in this segment. As our relationships grow with the local hotels, so too will the word of mouth recommendations from the hotel staff as well as the patronizing of our sports bar by their families and friends. Our future plan is to publish a simple website in order to create awareness to any traveler who wants to take an advanced look at the club before their visit. 3. Young Professionals -- Due to our proximity to the downtown and midtown area, we must appeal to female adults.

Whether it is a group of friends out to see a movie together or a woman who want to just go out and relax, these people need a place to eat / drink either before and / or after their movie. These customers will range in age from 27 to 40. Excalibur will appeal to this category by switching the tempo and entertainment to be more appealing to adults as it gets later into the evening. We also anticipate a 15% annual growth rate in tandem with the growth rate of Atlanta and through increased popularity.

The following chart and table outline the target market segments for Excalibur, and include annual growth projections. Females are making the more decisions in purchases, active in sports themed events, producing their own television programming and have excelled in things that have significantly impacted cities from coast to coast in the millennium. Los Angeles' Hollywood, New York's Times Square, Women's tennis and the W.B. A are just a few examples. The growth at Women sport venues have grown since the early nineties they entrance their audiences with lights, sound, music, and interactive entertainment, these venues are still one of the highest cash flow businesses in the world.

Our localized studies have shown that the average person will spend three to four hours per weekend in this type of an environment and will spend an average of twenty to fifty dollars in that time frame. As we approach the new millennium, this trend shows no signs of declining. The typical sports bar of our style is open from 11: 00 a.m. to 2: 00 a. m., and within this time frame, the sports bar can achieve gross revenues anywhere from $3,500 to $25,000, nightly. The primary sources of revenues in a sports bar of this type are high volume traffic, coupled with comparably nominal spending. In addition to alcohol revenues, we will also generate substantial revenues from food sales that can typically range from ten to thirty five dollars per person. Entertainment sports bars in the late 1990's focused on high-energy light and sound, multiple source video screens, and participative events.

This relatively simple concept is still quite popular today. However, these concepts have greatly evolved with society. In recent years this industry has become more sophisticated with the availability of new technology. Larger metropolitan areas have taken this technology to new heights with sound, lighting, video and designs that create an exciting and memorable experience.

Fortunately, no one in the Atlanta area has been a pioneer in this specific segment of the industry as of the date of this report. Additionally, Excalibur and sports bar industry is shifting towards a more feminine oriented concept. Guests of these sports bars are not only offered a dynamic comfortable place to gather and mingle, but also a place to participate in the entertainment through interactive contests, theme nights, and other events. We intend to heavily utilize entertainment-oriented marketing in an effort to withstand the perpetual shift in trends and cater to as large a client base as possible. Being the first sports bar catering to women, Excalibur will enjoy the first-mover advantages of name recognition and customer loyalty. Initially, Excalibur will hold a 100 percent share of the female sports bar market in Atlanta.

In the next five years, competitors will enter the market. Excalibur has set a goal to maintain greater the largest part of the market. Excalibur will be part of the restaurant and bar industry, which includes several kinds of businesses: o Locally Operated Bars and Nightclubs - This will appeal to the local neighborhood clientele. This same client base dictates that the average price structure be drastically scaled down in order to create 'regulars. ' o Conventional Dining - focused on serving good quality food in a reasonable amount of time in a dining room setting. The service and food quality are superior to that of a fast food establishment. o Casual Dining - Commonly building upon conventional dining with the addition of a bar, playing of music and sporting events on numerous televisions. Some establishments offer their own brand of beer made on the premises.

The food quality and service are at best, similar to that found in a conventional dining experience. o Chain Entertainment - Typically manifested in each market through the Hard Rock Cafes, The Planet Hollywood, or Hooters etc. We expect to create an atmosphere that thrives on its trendy feel. Market Trends Key questions were asked of men and female potential customers. Some key findings include: o 85% female subjects said they would be willing to frequent a sports bar catering to females. o 35% males said they would frequent the sports bar just because females would be there.

CompetitorsExcalibur's competition lies mainly with other casual facilities and less with conventional and chain entertainment establishments. We need to effectively compete with the widely held idea that you can't get good service anymore, women deserves to be catered to, while maintaining the idea that being out can be a lot of fun. Our polling has indicated that consumers think of atmosphere, price, and quality respectively. Additionally, price was frequently mentioned by pointing out that if the former concerns are present then they are willing to pay more for the experience. Our review of the market concludes that there are no entertainment venues that can be considered direct competition to the proposed new sports bar. We do realize that the proposed venue will also compete indirectly for every entertainment dollar spent in the Atlanta area.