Business Essentials: Night Club Business Plan

This report provides a comprehensive business plan for a new night club called "We Night" in London. It includes a detailed market analysis, business objectives, PESTLE analysis, launch event planning, budget, marketing strategies, target market identification, and marketing mix. The report also covers operational, tactical, and strategic decisions, as well as distribution channels. The conclusion emphasizes the importance of market research, legal compliance, and effective marketing for business success. The report aims to provide a thorough guide for establishing and running a successful night club.

BUSINESS ESSENTIALS

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Part A Business idea....................................................................................................................3
Part B New business objectives...................................................................................................4
Task 2...............................................................................................................................................5
PESTLE analyses.........................................................................................................................5
Task 3...............................................................................................................................................8
Part A Launch Event....................................................................................................................8
Part B Producing budget..............................................................................................................8
task 4.............................................................................................................................................10
Objectives of marketing.............................................................................................................10
Target markets...........................................................................................................................11
Marketing strategies...................................................................................................................12
Marketing Mix...........................................................................................................................12
Task 5.............................................................................................................................................14
Task 6.............................................................................................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................17
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INTRODUCTION
One of the hardest part of business is to coming up with new ideas and innovative
products feature. This is the only way that can attract customers towards the brand otherwise
company may suffer from financial difficulties. Before setting up business, new entities do
market research, collect information about trends and demands of consumers. This is an essential
activity that supports in identifying the market potential and helps in making strategies for
successfully establishing the organization in such environment (Yoneshiro and et.al, 2013).
Present report will discuss the business idea of opening nigh club in London. The name of the
night club is “We Night”. Current assignment will discus the business idea of setting up a new
night club in the city. Objectives of new firm will be illustrated in this study. In the second part
of report, budget will be prepared for the business. Marketing strategies, target market and
marketing objectives will be described in this assignment (Honig and Hopp, 2016).
TASK 1
Part A Business idea
Clear vision and mission is very important for starting up a business in the market. In the
modern business world people are too busy in their life they do not get time to spend some time
with their friends and families. London is the city which is known for its nights and attraction. In
the night time people like to go in clubs for getting relaxed. Especially on Friday and Saturday
city looks like heaven (Tarhini, Ammar and Tarhini, 2015). Its statistical fact that approx 300
million visitors in a year come in the city from 8pm onward just to see its attraction in night.
Thus, opening a night club is the great business idea and it can give huge success to the owner.
We Night club is having a business idea to offer quality services to customers. Being a new start
up firm, We Night is emphases on needs of consumers and want to make their night memorable.
Cited firm is aiming to offer cold drinks to guests, offering fast food to the clients. It will
have 24 hour license of club (Wirtz and et.al, 2016). We Night is planning to keep entrance fee
for all visitors but the person who will give their email address will get free drink, 25% discount.
Students will get 50 discounts if they bring other students too. In addition, there will be many
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games like poker and others that would like by the audience. There will be presence of
professional photographer who will click the movements of nights (Maharaj and Brown, 2015).
Business is going to operate in Mill Street in the glamorous heart of London's Mayfair.
This place is heart of London and most of the visitor come here just to enjoy night attraction of
this location. Existing night clubs such as Maddox club, Jalouse, Movida etc. are very famous in
the UK but We night ideas are unique and innovative. It will not only run on Friday and Saturday
but also it will open 24*7 hours. Apart from this, discounts and fast food facilities of new firm
would be much better as compare to existing clubs (Jones and Rhoades-Catanach, 2013). There
will be announcement of couple of the day who will get some special price by the company. One
day will be for Apart from this club will take care of its clients and will provide them space so
that they can enjoy their night and can get relaxed. There will be dance facility too so that people
those who like to dance can move here freely (Hatten, 2015).
Competitors of We Night club
Competitors Features
Maddox club Brand name and good command over market.
Jalouse Visiable location and dancing facility
Movida Attractive food and drinks, good presence
We Night club is planning to hire skilled people and young generation those who have
knowledge about the latest trends. Young people can serve better services to visitors and can
make them satisfy too. By this way cited firm will get established in the market soon. Company
is aiming to provide the best facilities at lower investment. 25-50% discounts, free drink facilities
are unique and it can attract more people towards the night club (Alexander, 2013). It will
provide fresh drinks, fast food facility, dancing floor to visitors so that they can get happy and
like the environment of the place.
Part B New business objectives
We Night club is having innovative ideas that can make it differed from other
competitors. Objective of cited firm is to:
 To attract number of visitors towards We Night club.
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 To provide them facility where they can get relaxed and feel enthusiastic. It will make
them happy in the place.
 To provide safer and protected environment in the club to consumers so that no non sense
take place.
 To provide them high quality food and drinks at affordable prices.
These are objectives are relevant to new business, with the help of this cited firm would
be able to established its business in the London easily (King, 2015). Sole trader would be the
best suitable for We Night. Company wants to satisfy its consumers and want to attract more
visitors towards the brand. Thus, if it goes with partnership t hen it will have to share its profit so
sole trader business form would be best for the We Night club. Investment in the organization is
very low so there are no needs to involve others in the entity. Single owner can easily run the
business signification (Mokoena and et.al, 2014). As cited firm has to establish its club in the
London which is heart of people, so for that organization will have to look upon the desires of
population, their basic expectation with night club. If company gives them encouraging
environment and memorable movements then it would support in attracting more visitors
towards the club. By this way it would be able to establish its brand in the market easily.
Company does not need huge investment and it can arrange all facilities by own so working as
sole traders would be beneficial for the cited firm (Zhang and et.al, 2015).
TASK 2
PESTLE analyses
Before setting up a business in completely new environment it is very important to look
upon macro and micro environmental factors. These are such elements that can influence the
overall business activities of business (Hou and et.al, 2015). PESTLE analyses is the model or
tool that supports in getting information about the external condition of the market so that
company can make effective strategies to deal with them it will assist in minimizing uncertain
event of the business thus, it would support in getting high profit and sustain in the market for
longer duration (Richter and et.al, 2014). Factors of PESTLE analyses are as below described: Political factor: It is one of the most important part of business. It is necessary for
entities to follow legislation strictly so that consequences can be minimized. Government
attitude toward the night club, licensing laws etc. can influence the business activities to
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great extent (Ueda and et.al, 2014). UK government is giving license to any organization
for opening a night club but there are some restriction which are necessary to follow by
entities those which are operating in this field. EU guidelines related to health that there
should be limited amount of alcohol in the hard drinks. So We Night can not offer
extreme quality hard drinks to the visitors. Apart from this it will have to take permission
from government for that (Sheta and et.al, 2016). In the UK firms have to pay high duty
on alcohol so that needs to be followed by cited firm. But due to this budget of starting up
a night club will be increased and it may be possible that it will reduce profit of the
organization. If government increases working hours or cancel Saturdays then people
would not be able to go in clubs to get relaxed thus that would affect the business of
organization to great extent (Salari and et.al, 2016). Economic factor: It is another essential element which can impact on the business
operation of We Night club. This is the major component that affect purchasing power of
the consumers and due to this they will turn their mind to go into night clubs. If there are
economic downturn then people will not be able to spend much amount for enjoyment. If
interest rate of the nation in high then in such condition new firms will not be able to
spend much amount (Kleigrewe and et.al, 2015). By this way We Night would not be
able to set up a new business in the London easily. Currently growth rate of UK is good
and people are getting high employment opportunities. It is right time for new firms to
enter into market because people are having good income sources and they will like to
invest for getting relaxation and enjoyment. Thus, in such economic condition We Night
club would be able to get high profit and it will be able to provide them luxurious
facilities (Yaish, Peng and Rothstein, 2014). Social factor: It is another major part that impacts on the consumer perception. Pub or
club is the place where people can meet with their friends and can spend some quality
time. Younger peoples like to go on clubs with friends and official professional persons
also go there to get relaxed (Nicoara and et.al, 2015). Now a days population are much
more aware for their health and they avoid hard drinks because they know that high
amount of alcohol can spoil their health to great extent. That is why they avoid to go in
such places or if they go there then they do not drink alcoholic drinks. That can influence
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their mind and it will impact on the over business performance of We Night club (Sheta
and et.al, 2016). Thus, it needs to ensure that it offers limited quality alcohol to the
visitors so that they be healthy. Apart from this red wine is good for the skin and heart so
it can offer red wine to visitors. Social element includes cultural beliefs, demographic
factor etc. By looking upon these components cited firm would be able to establish in the
market easily and it will grow well (Nicoara and et.al, 2015). Technological factor: it is the technological era people uses advanced technical
equipment. Club industry is the sector where companies are using advanced technologies
to offer quality services to the consumers in order to satisfy them. That can help in
increasing number of consumers towards the brand and by this way companies can gain
their attention tool (Zhang and et.al, 2015). It will make them loyal and they will buy the
services of company frequently. Media, websites etc. are advanced technologies that can
make people aware with the brand so We Night club needs to use this equipment
frequently. Legal Factor: Smoking is ban in most of the countries. Most of the nations are taking
strict action against alcohol and smoking. Changes in drink driving law, changes in
smoking law can affect the performance of the club. In the night club people like to drink
and like to smoke (Ueda and et.al, 2014). But if there are some strong regulations then
cited firm will not be able to offer these to consumers. Then they will not take interest
and will come there. By this way company will not be able to get established in the
market.
 Environmental factor: Recycling, wastage, etc needs to be considered by entities before
opening a new firm (Sheta and et.al, 2016). Volume of music needs to be in control so
that it does not spread noise pollution in the organization.
With the help of PESTLE analyses We Night club would be able to identify the risks that
can take place and it would be able to make effective strategies that can support in reducing
uncertainties of business and it will help in getting established and in gaining high profit (Hatten,
2015).
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TASK 3
Part A Launch Event
Night club is having atmosphere of enjoyment and people feel happy here. The objective
of We Night club is to attract more visitors towards the brand and to make them comfortable so
that they feel enthusiastic and like the environment. In the modern hectic life people want to go
in clubs to get relaxed and to enjoy (Ueda and et.al, 2014). It is the place where they can spend
quality time with friends and can spend memorable movements here.
WE Night club wants to satisfy its customers so it is planning to launch events in
effective manner so that it can create a unique image of company on the first day of event. Cited
firm will prepare marketing plan for the same and it will use internet and social media marketing
well (Zhang and et.al, 2015). It will give description of products and facilities on its website, face
book and Twitter etc. The event will be promotes on social networking sites and high street too.
Company will circulate the flyers in the market so that people can get to know about the new
night club. We night club will keep some minimum entrance fee for the visitors but the person
who is giving its personal mail id and feedback for the improvement then in the event individual
will get free drink on the night (Sheta and et.al, 2016). It will promote the event by circulating
information about discounts. Student will get 25% discount and if they are coming in couple then
they will get 50% discounts. Timing for customers will be reflected in the advertisements that
would be from 8pm to mid night 2. Best couple of the night will get surprising gift by the owner
of We Night club. It will help in gaining attention of consumers and most of the people will take
interest to come here. In the event there will be a professional photographer who will take the
picture of event and all these pics will be uploaded on official website of We Night and face
book page. If any of the person wants to get the picture then it will be send to their mail id. By
this way company will get their email address and it will help in making communication with
them (Kleigrewe and et.al, 2015). The whole planning of event is effective and that would
support in gaining attention of the people.
Part B Producing budget
Budget
Year 1 Year 2 Year 3
Revenue 505,600 557,419 670,350
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Sales cost 151,192 158,752 169,335
-------------- -------------- --------------
354,408 398,667 501,015
Cost of administration 84,930 88,899 168,578
Selling expenses 58,200 72,360 163,934
-------------- -------------- --------------
Operating profit 211,278 237,408 168,503
Corporate tax 52,820 59,352 42,126
-------------- -------------- --------------
Net income 158,459 178,056 126,378
Cash flow statement:
Balance sheet
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TASK 4
Objectives of marketing
Every entity has some objectives, these help in making strategies that can support in
completing the objective soon. Direction of operations can be set with the assistance of
company's objective. We Night club wants to gain attention of visitors and want to provide
excellent services to the users. Cited firm wants to enhance brand image of the company so that
people can feel happy and feel enthusiastic (Nicoara and et.al, 2015). We Night wants to target
potential customers those who like to go in clubs and pubs. By targeting the accurate people
company will be able to enhance its profitability and it will support in increasing satisfaction
level of visitors. Most of the people, come in London to visit it s night attraction, if company
offers them satisfactory services then it will encourage them to come again. That would enhance
overall business sustainability of the organization (Yaish, Peng and Rothstein, 2014).
We Night limited is having main objective is to build relationship with consumers. It
wants to provide excellent services to them so that they feel satisfied and like the environment.
By this way they will give positive feedback to others and that will improve brand image of the
entity (Sheta and et.al, 2016). We Night club wants to become market leader in the hospitality
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and club industry. It would help in gaining competitive advantage and it will attract more visitors
towards the brand. Cited firm is having objective of increasing market share of the firm and to
open more branches ion other locations too. For that it will have to understand the needs of
consumers and accordingly it will have to provide them services (Zhang and et.al, 2015). That
would support in accomplishing objective of entity significantly.
Target markets
We Night club is the night club which is focusing on the consumer's perception and
accordingly it designs the activity in the organization so that people can like to come here and
they get relaxed. In the modern era people are not getting time for own self, busy life, hectic
schedule make them feel bored (Richter and et.al, 2014). Segmentation has been done in this
respect. Segmentation will help in dividing the group of people into sub sections so organization
will get o know which target audience will help the entity in achieving its objectives. Target
market of We Night club are as following: Married couples: We Night club is targeting the married couple because they are the
potential customers that have interest in spending time in the clubs (Salari and et.al,
2016). T hey like to spend some quality time so by going in the night clubs they can get
this time too. Apart from this they do not bother for the money they just want to spend
quality time. Thus, they will be the potential visitors of the new night club. Business professionals: They are another persons to whom We Night can target. In the
modern business world people have no time to spend with families and friends because of
hectic office schedule (Hatten, 2015). They like to go on such places where they can get
relaxed. Night club is the place where people can enjoy and cam feel enthusiastic. They
have potential to buy costly drinks as well so company can target to such people as well. College students: Students are the potential target customers of We Night club. They like
to do parties and spending time for enjoyment. Company can target to such people by
offering 25% or 50% discounts on fast food. Apart from this they can influence others too
for visiting such places (Maharaj and Brown, 2015). By this way profitability of the
organization will get improved soon.
 Tourists/ vacationers: London is heart of people and from different locations tourists
come here to see night life of clubs of London city. Some vacationers come in the
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location. We Night club can target to them because they will feel good and it will help in
spreading brand name of the organization across the world (King, 2015).
Marketing strategies
Marketing is the major part of organizations, effective marketing strategies can spread
brand name of the organization and can attract people towards the company. To market the
products and services of the firm, We Night club will use social media marketing. It will
advertise its services and facilities on Facebook, Instagram and Twitter etc. Apart from this it
will communicate through email (Jones and Rhoades-Catanach, 2013). Cited firm will send
emails to the consumers those who are going to come in the club about discounts and attractive
offers. That would support in building strong relationship with them. By this way objective of
increasing number of consumers of the company will get increased soon. This is the great way
that can assist in establishing the brand in the London market significantly (Hatten, 2015).
Apart from social media marketing, We Night will distribute the flyers in the market so
that people get to know about upcoming night club. In the leaflets amazing pictures will be
designed that would gain attention of the people. With the help of this strategies most of the
college students and married couples will take interest in coming here. In addition, it will
advertise its products and services on its websites by this way whenever people wills search for
night club they will get the information about the organization (Marketing theory, 2017).
We Night club will also use customer relationship marketing strategy. That is the great
way and can support in gaining success to the organization. It is planning who ever will enter
into the club cited firm will request for their email address. After that it will send greetings to
them and will discuss about its services to them. That would develop relationship with the
customers and they will be loyal towards the brand (4 Principles of Marketing Strategy In The
Digital Age, 2013). They will give positive feedback to others thus, overall business performance
will get improved significantly.
Marketing Mix
We Night club is the new firm and for establishing its business in the London
successfully, it is necessary to adopt effective marketing mix strategies. Decisions of product,
price, promotion, place matter a lot and ineffective strategies can spoil the business and company
may face failure (Nicoara and et.al, 2015). Marketing mix of We Night Club are as following:
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