discussion 7

Running head: THE BEAUTY BAR MARKETING PLAN 1

THE BEAUTY BAR MARKETING PLAN 11

The Beauty Bar Marketing Plan

Introduction

As the demand for more bars is rising in some regions, the critical consideration when opening a new bar is the potential location. Bars have expanded into most US cities, but some cities still hold tremendous potential for a bar start-up. For instance, New Orleans, San Francisco, Portland, New York, and Chicago. The chosen location for the Beauty Bar in New Orleans, Louisiana. Historically, New Orleans did not invest in the cocktail. This is an inspiration to anyone who would want to invest in the bar business. The city is recognized for having invented the Ramos gin, Sazerac, grasshopper, and numerous other booze-filled beverages.

New Orleans citizens boast of that history and are always proud of consuming their cocktail and any other new drinks introduced to them. However, the city is in shortage of nightclubs and hip bars, making it a potential hub to unveil a bar. New Orleans is also a tourism hub because of beaches and other resources that make it a vibrant destination. It attracts tourists who are often ready to enjoy pure beer and cocktail. Residents can also purchase the drink from the bar and walk through the city with the drink because it has open laws. Despite the presence of bars in the city, the existing bars are considerably spaced out. Having a wide choice of bars with significant diversity is needed by residents and New Orleans visitors. It hosts people from different cultures, religions, races, ethnicities, and nationalities. There is an opportunity for every person to find a person to interact with any time they stopover a bar. The city indulges different drinking cultures from the Americans, the French, and the Spanish. The availability of a variety of drinks is a major boost for the Beauty Bar. Besides, most of New Orleans’ visitors are there to party. There are a variety of classy drinks that allow people to indulge in the greatest life experiences.

Mission

The beauty bar's mission is to offer formidable entertainment and genuine hospitality to our guests by providing a diversity of drinks, music, language, culture, and games. It is our honor and pleasure to serve our clients and establish a positive corporate culture around the New Orleans residents. Our concept also concerns our facilities, our team, our facilities, and our decisions that impact our customers.

The rationale for our mission

Sustainability is our main concept, and our mission will be driven by high-quality products that preserve our environment. The beauty bar will choose the best drinks, containers, efficient lighting, and fuel to drive our sustainable growth mission. The bar will work with our sustainability experts and third-party stakeholders to ensure that we are aware of the most recent sustainability innovations. We will work for LEED certification to ensure that the Beauty Bar is surrounded by materials that present the ecosystem's minimum threat.

Goals

The Beauty Bar wants to establish itself as a premier hub in New Orleans, offering the best drinks, concerts, salsa dance, contra dance, and other music entertainment forms. We aim to offer exceptional services consistently and sustainably to establish a positive and long-term impression that produces repeat clients. We will be maintaining proper workers to customer ratio throughout. We have set the short-term and long-term goals during the startup that will drive our mission of achieving exciting entertainment and genuine hospitality to our guests by providing a diversity of drinks, music, language, culture, and games.

Short-term goals

Our short-term goals are those that the Beauty Bar will be looking to achieve within the first year. We will launch the Beauty Bar with a publicized grand launching event during the summer of the year 2021. We want to achieve sustainable profitability. We also want to sustain the cost of our products and payrolls below 25% of annual revenue. With a total occupancy of 3000 customers, we want to achieve an occupancy rate of 65% (N=1950). Our target revenue for the first year will be $550,000. Revenue streams will be expanded to drive long-term profitability. The cash flows, costs, and operations will be controlled and monitored using automated computer systems. And diligent management. We will create a repeated business from our customers around New Orleans and visitors from beyond. For the first year, the target worker to customer ratio will be 1 to 80, improving in the subsequent years. This will ensure that we deliver efficient services and attract repeated business. The enterprise will rely on review websites such as google analytics to review the business progress and our web site's rating, view customers’ insights, and what our audience consider as our strengths. This will help in making timely changes to improve the performance and deliverability of services. We will also target a four out of five-star rating in the sites that we are present.

Long-term goals

One of the Beauty Bar's long-term goals is to launch additional premises and increase our presence in New Orleans. Over the next ten years, the target growth rate is 10% in revenues and 15% in daily traffic. We will be open to customers of all adult ages, although we expect our customers to have a median age of 34 years in the long-term. Within four years, we target three additional premises in major hubs of New Orleans. We also aim to improve publicity by signing advertising deals with local celebrities. Within two years of business, we want to open online retails for our customers who wish to enjoy their best drinks at home. We want to make sure that our business model will remain competitive even in the future. We also target a more robust social media presence so that our customers can freely find us and communicate with us through our online customer care. At five years, the target revenue is $2000 000 annually, with a total cost below 30% of the total annual revenues. We also target a modern, multiple-device compatible website that will attract more than 10 million visitors in the next five years. The Beauty Bar will be hosting at least one event every two months to improve our brand popularity. We will organize charity events, product launches, and award ceremonies to create memorable evening for our audiences in such events. Public figures and influencers will be invited to those events to allow for more photo exposure with our brand. Besides opening new premises and product launches, the target dairy traffic in 5 years is 30,000 and will increase to 45,000 in ten years.

Environmental Analysis

The critical aspects of environmental analysis are associated with the trends in the New Orleans market. These trends will be applied to assess the possibilities of success and possible threats that can inhibit business growth. The main considerations include competitor analysis, economic analysis, sociocultural forces, and political, technological, and legal environments.

Competitor analysis

There are a wide variety of Bars in New Orleans that can be categorized into craft cocktails, sports bars, music clubs, jazz clubs, and historic bars. The main competitors include the Sazerac Bar, the Bombay Club, Carousel Bar, Arnaud’s, to mention a few. Most of the clubs have been serving drinks for more than a century and even survived Hurricane Katrina. However, their main weaknesses are cleanliness and insensitivity to the effluent they release to the nearby environment. Their activities impact the appearance of New Orleans and can be one reason that visitors may not return. Since the Beauty Bar targets sustainable materials with the least impact on the environment, residents, and visitors who mind about sustainability will have a reason to choose the Beauty Bar over other bars.

Economic analysis

The startup cost is a critical consideration for bar ownership. In New Orleans, the total start-up cost for a renting or leasing bar is approximated between 100,000-550,000 depending on the startup (Dudley, 2019). Bars available for sale are advantageous to a potential buyer because it can be as low as $25,000, including the expenses on physical assets required for a startup. The tourism and hospitality industries are the largest employers in New Orleans. However, there has been growing skepticism with community leaders, politicians, and employees voicing their concerns over the hospitality sector's low wages and failure to deliver a long-term career trail. Based on reports gathered from the Orleans Parish in which most of the hospitality service providers are located, the report recorded 15,450 jobs related to the hospitality cluster, with hotels making up most businesses. The total jobs recorded in 2017 were 100,000 less than jobs recorded in 1999, representing a 9% decrease. The total gross domestic product was approximately $ 80 000 in millions of Dollars. The trend is indicated in Figure 1, with the shaded region representing a recession.

Figure 1: Shows the trends in GDP for new Orleans (source: BEA)

The economy in New Orleans constantly grew from 2017 to 2019, with jobs rising from 6000 to about 11000 per year (Rawlins, 2019). A further growth rate of 1.6% had been predicted before the upturn of the COVID-19 pandemic. This economic and job growth increased the demand for bars and real estate in New Orleans.

Political and legal analysis

Expansion of residential areas and the increasing cost of service delivery has led to a considerable rise in the municipal operating budget. The New Orleans municipality has been hindered by a shortage of finances required to offer municipal workers adequate income in various departments. The major contributor to this problem is the low collection of industrial and residential property taxes and taxpayer reduction. The city also announced Airbnb regulations, which would apply to all short-term rental property. All short-term property renters must have an STR permit that monitors the legal use of rental properties. Investors will also have to pay fee taxes such as occupancy fee per night rented, sales tax of 5%, and farther 6.7% STR equalization tax.

Technological analysis

Technology that is being adopted in modern bars includes automation, R& D, innovation, and obsolescence. What matters is how competitors exploit technology and how embracing technological solutions can increase competitiveness. In New Orleans, technology has been on reach by even the smallest competitors. Exploring the technology to launch our website is the most cost-effective strategy of entering the bar industry and assessing market acceptance. The competitors in New Orleans are using technology to increase the efficiency of services. The customers expect firms to protect their information, such as credit cards and other confidential information. In this case, privacy concerns can be solved by installing software that secures customer data. There are many other instances where technology can be integrated to increase business efficiency, profitability, and customer retention. Besides, the new entrants in the bar industry are expected to modernize trade and business operations to cater to the complexity of managing business, employees, information records, and security. Overall, technology makes substantial differences for the business and customers, with each technology presenting a competitive advantage for the business.

Sociocultural factors affecting the business

The major socio-cultural factor influencing the bar industry is the varying preferences of consumers. What is currently popular, be it a drink, music, dance, or game, may not be equally popular ten years later. A business needs to be flexible and willing to adapt to change in consumer preferences. New Orleans is characterized by people who have a culture of gathering and socializing. However, other factors are impacting the bars industry. The restrictions on drunk driving have interrupted the drinking pattern of residents and tourists of New Orleans. The health concerns at the turn of the 20th century have also changed how people drink alcoholic beverages. Entertainment needs and personal income also drive demand. The major revenue sources for bars include beer (35%), distilled spirits (30%), non-alcoholic beverages (19%), and wine (8%) (Robertson, Oliver, & Nost, 2020). As indicated in the economic analysis, the large group of employees in New Orleans are low-income earners; however, the tourists’ traffic and the existing group of employers keep the demand for bars high.

SWOT and Needs Analysis

Strengths · Business location · Sustainability strategy · Our business model	Weaknesses · Little reputation · Financial limitations · Little brand awareness
Opportunities · Support from the local government · Flexibility · Technology	Threats · Airbnb regulations · The financial power of large competitors

Strengths

The enterprise will be located in Orleans Paris, a location that is often the preferred destination for tourists and residents of New Orleans. The location also attracts gamers, sports lovers, and others who love interacting with friends. The beauty bar will choose the best drinks, containers, efficient lighting, and fuel to drive our sustainable growth mission. We will possess a robust business model that will drive our mission and cannot be duplicated by our competitors. The enterprise will rely on review websites such as google analytics to review the business progress and our website's rating and view customers’ insights. We will also establish loyalty with our customers by focusing on quality, sustainability, and efficient services.

Weaknesses

As new entrants, we will have a little reputation in the market. We have to establish our market positioning, which may take a while. As new starters, financial limitations mean that we have to invite potential investors to boost our finances. Our little brand awareness means that the Beauty Bar will have to start from a lower position and build brand awareness over time.

Opportunities

The local government is encouraging new investors who are coming up with sustainability strategies to reduce environmental pollution and increase tax collection. Competitors may not be able to adapt our business model that is based on sustainability. Any resident or visitor who minds about the ecosystem will prefer the Beauty Bar over other bars. Besides, we will be more flexible than our competitors because we can introduce new products, technologies, and facilities that make our bar modern.

Threats

The recently announced Airbnb regulations that apply to all short-term rental property means that we must have an STR permit that monitors rental properties' legal use. We will also have to pay fee taxes such as occupancy fee per night rented, sales tax of 5%, and farther 6.7% STR equalization tax. This may significantly increase the start-up cost. The large competitors are in a better financial and experience position to counter our efforts to establish a stronger market position.

Conclusion

The Beauty Bar will be located in New Orleans, and its business model will be built around sustainability. The beauty bar's mission is to offer exciting entertainment and genuine hospitality to our guests by providing a diversity of drinks, music, language, culture, and games. At five years, the target revenue is $2000 000 annually, with a total cost below 30% of the total annual revenues. The bar will work with our sustainability experts and third-party stakeholders to ensure that we are aware of the most recent sustainability innovations.

References

Dudley, K. (2019). Sociocultural, Economic, and Political Factors Shaping the US Tourism Workforce: A Case Study of New Orleans, Louisiana, USA. Retrieved from https://search.proquest.com/openview/4d201195b3f004e3574bbfd97c53741a/1?pq-origsite=gscholar&cbl=18750&diss=y.

Robertson, D., Oliver, C., & Nost, E. (2020). Short-term rentals as digitally-mediated tourism gentrification: impacts on housing in New Orleans. Tourism Geographies, 1-24.

Rawlins, J. O. (2019). Book Review: Almost Hollywood, Nearly New Orleans: The Lure of the Local Film Economy. Ann Arbor, MI: Michigan Publishing, University of Michigan Library.