c




 

It should be noted that the night club industry has a high degree of fragmentation. Consequently,
different night clubs have different opportunities to increase their own market share. Statistics show
that some of the well known names in the industry only take up seven percent of the market share
while the rest are accommodated by smaller players. Consequently, the issue of domination within this
industry is not as common as it is in others. In terms of positioning, different clubs have different
levels of importance depending on the type of service they offer. Since types of clients reporting to
these night clubs vary; some may be tourists, some may be youngsters, others may be the working
class etc, then night clubs accommodate different patrons depending on the nature of their client
base. Consequently, no single company can boast of superior positioning in comparison to others.

Promotional strategies within the night club industry vary widely with the nature of the club. However,
there are some common tactics. Promotions normally come in form of advertisements on media
outlets. Most night clubs are fond of utilising the radio. Normally, a radio ad contains information
about the unique services found in that respective club and where it is located etc. Promotions are
also conducted through endorsements from well know artists or DJs. The DJs are usually hired to instil
loyalty in certain client bases. Performing artists are usually invited to perform in those respective
clubs. In this industry, external communication is done through a variety of media outlets. For
instance, many night clubs have created their own websites or listed their services in Indian search
engines. Consequently, clients may easily access them through this channel. Besides this, the night
clubs also advertise themselves through fashion or celebrity magazines and newspapers.


 


Some of the micro factors affecting the nightclub industry include the moderate attractiveness of the
industry. The night club industry's attractiveness has reduced tremendously owing to the fact that
most of their clientele may get access to other more promising industries such as the food industry,
movie industry and the like. One of the industry trends includes attracting loyal patrons. Most
companies that do well here normally garner customer loyalty and can therefore count on them for
future profitability. Nightclubs are realising that they have to provide consumers with a better mix of
products. Nightclubs that can offer more creative cocktails are selling more than those that merely
offer beer. Also, the move towards spirits in night clubs has become quite common.

Customer's income largely determines profitability within this sector. Normally, those that do well are
those ones that manage to get the attention of patrons. However, it should be noted that in order to
attract a large client base, nightclubs need to stand out from the rest. Also, a substantial number of
night clubs usually perform poorly in the first year of inception. This is because consumers are always
looking for a place with lots of entertainment yet this is not particularly available within new
nightclubs. Few people know about them and therefore people rarely go there.

A competitive analysis of the Bangalore nightclub industry indicates that the level of competition
within this industry is tremendously high. Large nightclubs usually have the capability of offering other
services such as food and entertainment. Therefore, quality of these services largely determines the
overall competitiveness. Additionally, the level of competition within this industry is also determined
by the intensity of loyalty which one can generate.
 One of the economic factors affecting the night club industry are the type of fiscal policies. State
taxation on night club ownership is tremendously high and this exerts a lot of pressure on their
owners. One of the legal factors affecting nightclubs is government licensing. India has numerous
licensing regulations that squeeze into night club's entrepreneur's profits. For instance, in order to sell
alcohol, one is required have an alcoholic license. The major social factors affecting this industry
include community resistance where residents may oppose night clubs because they create a lot of
noise for them. As if that is not enough, clients keep changing their preferences. Sometimes, some
may be attracted to certain trends which are not on offer in particular night clubs.

_
 

The overall objective of the marketing plan is to create a magazine for the night club industry. The
specific objectives are

V? Create a sensational, entertaining and interesting nightclub magazine

V? Highlight problems in the Australian night club industry through the magazine
V? ãive suggestions on how to solve these problems in the magazine
V? Create advertisements for a wide range of Australian night clubs within the magazines
The idea behind this research is to look for away of boosting the Australian night club industry.
Therefore the idea of a magazine exclusively for night clubs could be very useful. The main contents
within the magazine will be industry trends, night club industry challenges and methods for industry
improvements. It will also contain night club advertisements. (Mark, 2001)




 



The major benefit of this night club magazine will be to boost overall performance of the industry. This
aim will be achieved by advertising on behalf of the night clubs on their locations and services offered.
It will also provide an insight into some of the problems facing the industry and the possible solutions
that can be adopted by stakeholders. (Keller et al, 2005)

The market segment most likely to value this commodity is the category of small sized bars that are
just entering into the market. This is because the magazine will give them exposure and will also
guide them on how best to boost their sales within the industry. Research has shown that overall
failure rate of new night clubs is eighty percent during the first year of operation. Consequently, if
there was some external assistance that would guide this segment, then the targeted market segment
(New nightclubs) can be well on their way to improving their performance. The overall market size for
this commodity is most likely to take up sixty percent of the overall Australian night club industry.

The business market segmentation applicable within the night club industry is: geographical location.
Night clubs are located in large cities and towns such as Sydney and Melbourne. Consequently, the
magazine could be based in any of these cities. Additionally, customer size has a large part to play;
there are numerous night clubs in Australia, consequently, possibilities of accessing them are also
high. The benefits of a night club magazine is applicable to almost all nightclubs. Consumer market
segmentation can be geographic, some night clubs are concentrated in specific towns, Demographic
segmentation is applicable to the industry in that some nightclubs may be old while other are new,
behavioural segmentation applies to night clubs with certain peculiar characteristics. The most
applicable market segmentation is demographic segmentation and target market for this commodity is
the emerging night club industry.

The magazine will attempt to attract the attention of all night club industries within the country. This
is because there is no other product like this one on the Australian market. All night clubs will be
approached but special emphasis will be given to emerging ones. The major recommendations here
are to create a huge market presence and hence assist nightclubs in boosting their sales. (Bush and
Burns, 2001)

D
 


j

The product is a nightclub magazine known as the µThe Australian nightclub magazine.' The product is
a physical good and service both entwined in one. It is a good because it is tangible and a service
because it will be offering consultation services for night clubs and advertisement services for night
clubs. It will therefore act as a go-between a customer and a nightclub. Initially the product will have
only one product line. But as time progresses, the magazine will be in electronic form through an
online version. Thereafter, the magazine company will also offer market research for the respective
clientele. However, these are all activities that will occur two years after assessing the overall
performance of the printed nightclub magazine. It will be necessary to obtain a warranty for the
product from the Australian licensing bar. There will also be a need to comply with magazine
regulatory procedures within this country. (McCarthy, 2001)

j
The product will be distributed directly to clients. Normally, these will be night club owners. The
utilisation of intermediaries can severely affect profits and bring about lower profit margins especially
for such a new product. The magazine may not be distributed nationwide at first, it will focus with
major towns and cities so as to gain popularity and then penetrate into rural settings. (Wiley, 2005)

j 
The magazine will be set at three dollars below what other Australian magazines go for. This will
ensure that the magazine generates a sizeable readership base at the beginning than afterwards, its
price will be increased to the prevailing market conditions. The latter refers to consumer preferences
in this regard. When the magazine is in high demand, then it will go for a higher price and vice versa.
Price will also be dependent on product quality because the higher its quality, the higher the demand
for the product. Consequently, there are three factors that will affect pricing. However, they will be
subject to the following order; penetration pricing, demand for the commodity then quality of the
commodity.

j




Promotion for the product will involve personal selling. This approach has been chosen owing to the
fact that most people will need to be sensitised on the content of the product at first instance, it will
also be advertised in radio and will also be published through endorsement by a celebrity. (Patton,
2000)



Category

Estimated subtotal ($)

Research

500

Networking
ü00

Production

5000

Legal regulations

2000

Advertisements and promotion

4000

Total

12, 100




 

The first thing will be to do a research on content of the magazine, best pricing, distributions and
promotional strategies for the magazine. This will entail research independently, through the web and
also through assistance from external processes. This will take a period of six months. The next step is
to put these research findings into print. This will involve creating an image that reflects the content of
the magazine. It will contain numerous colourful displays of selected night clubs. This will take a
period of three months. After production, there will be some networking to be done through
affiliations, subscriptions and memberships. This will take one month. The next step will be
communication of the product i.e. promotion. This will be done through radio, the internet, celebrity
endorsement and televisions. The process will continue for the rest of the magazine's lifespan. As soon
as the promotions begin, then distribution will also begin. (Reitsch and Hanke, 1992)





The projected market share will be the basis upon which to determine the overall success of the
product. This market share will be in comparison to other magazines in the industry. The success of
the product will also be judged by overall customer satisfaction. Market research will be conducted to
assess customer satisfaction. Besides that, market research will also be done to asses whether
consumers know about the commodity. (Fowler, 2003)

 


The night club industry is not doing well owing to a number of internal and external factors.
Subsequently, it will be necessary for the industry to receive boost through a magazine solely
focusing on performance in the industry. The magazine will focus on newly set night clubs. Its overall
success will measured by consumer awareness, Market share and whether the night club industry has
improved.

 
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