• Launch the venue with a highly publicized grand opening event in the first quarter of 2010.
• Minimize wastage, loss and theft through up to date inventory control systems and management.
• Maintain control of costs and operations through strategic management and computer automation.
• Maintain total beverage costs below 20% of beverage revenue.
• Achieve a high-quality of customer service through the Customer Feedback Committee and website.
• Implement a guerilla marketing program aimed at creating buzz through word-of-mouth without using overt advertising.
• Attain sales exceeding 10 billion Rp. in second year of operations.
• Reach break-even point within 3 years of operations.
Rabu, 09 Desember 2009
Category Analysis
The economic growth of South Jakarta represents a unique opportunity that a world-class nightclub can take advantage of. The central location, demographics, and the relatively unsophisticated competition are major advantages to this project.
Nightclubs are so linked with nightlife in general that the two terms are often used interchangeably. In the United States, dance clubs in the 1990s experienced rapid growth in all major metropolitan areas, particularly the coasts. Los Angeles Hollywood, New York's Times Square and Seattle's Pioneer Square are just a few examples. Dazzling their audiences with high-powered lights, sound, and music, these venues are still one of the highest cash flow businesses in the world. Jakarta nightclubs have seen significant growth since the new millennium, along with the growth of the wealthier upper and middle class. Parallel with this growth has been a general improvement in quality, as new clubs such as X2 have shown significant advantages over old-style venues such as Embassy.
This has been the general trend. Dragonfly and Embassy were for a long the epitome of nightclubs in Jakarta, the choice of the elite, the rich and the cool. However in recent years they have been steadily losing customers to the newer locations, which were not just trendier, but of higher quality (in terms of facilities, music, entertainment on offer…etc). Indeed, Embassy was very recently forced to shut down for renovations in order to compete with the new hotspots. Dragonfly’s renovations have yet to yield definitive results; while it continues to be popular, it has failed to attract new partygoers (those who have not been going to Dragonfly for many years) and as a result is steadily losing market share.
Newer locations are by no means of international quality – merely improved relative to the old nightclubs. They are generally staffed with unprofessional security and mediocre bartending and wait staff. They sell low quality drinks (exotic cocktails are difficult to find outside of niche locations and hotel bars), suffer from overcrowding and do not understand the nightclub as an experience.
Despite these drawbacks however, the popular clubs in Jakarta turn over substantial profits. For most nightclubs in the United States, because of rent-space, salaries (along with dental and medical insurance), music royalties, general insurance, liquor licenses, entertainment fees and so on, costs are very high indeed, especially in the large coastal metropolises. Indonesian nightclubs do not share these disadvantages, as fees are very low in comparison. When combined with the disposable income available to the party-going elite in Jakarta, along with that of the upper-middle class, significant revenues stand to be made.
Studies have shown that average club goers will spend three to four hours per weekend in an nightclub environment and will spend an average of Rp. 150,000 to 500,000 in that timeframe. The top tier of this group will often spend upwards of Rp. 1,000,000 one night every week; this trend shows no signs of abating.
The typical nightclub is open from around 9:00-10 P.M. to 2:00-4:00 A.M. The primary sources of revenue in a nightclub are high-volume traffic, coupled with nominal spending. In addition to alcohol revenues, a nightclub also generates substantial revenues from door charges that typically range from Rp. 50,000 to Rp. 150,000 per person.
Nightclubs in the late 1980s and early 1990s focused on spectacular light shows and energetic dance music. This relatively simple concept is still quite popular today. However, these concepts have greatly evolved with the times. In recent years this industry has become more sophisticated with the availability of new technology. Overseas, this technology has been taken to new heights with sound and lighting designs designed to create an exciting and memorable experience.
Additionally, the nightclub industry is shifting towards a more total entertainment concept. Guests of these clubs are not only offered a dynamic place to dance, but also a place to participate in the entertainment through interactive contests, theme nights, and other events.
Therefore, the opportunity exists for a new nightclub with an understanding of the socialites, the hipsters, the rich and of clubbers to make an impact by providing an international level of quality and design.
Nightclubs are so linked with nightlife in general that the two terms are often used interchangeably. In the United States, dance clubs in the 1990s experienced rapid growth in all major metropolitan areas, particularly the coasts. Los Angeles Hollywood, New York's Times Square and Seattle's Pioneer Square are just a few examples. Dazzling their audiences with high-powered lights, sound, and music, these venues are still one of the highest cash flow businesses in the world. Jakarta nightclubs have seen significant growth since the new millennium, along with the growth of the wealthier upper and middle class. Parallel with this growth has been a general improvement in quality, as new clubs such as X2 have shown significant advantages over old-style venues such as Embassy.
This has been the general trend. Dragonfly and Embassy were for a long the epitome of nightclubs in Jakarta, the choice of the elite, the rich and the cool. However in recent years they have been steadily losing customers to the newer locations, which were not just trendier, but of higher quality (in terms of facilities, music, entertainment on offer…etc). Indeed, Embassy was very recently forced to shut down for renovations in order to compete with the new hotspots. Dragonfly’s renovations have yet to yield definitive results; while it continues to be popular, it has failed to attract new partygoers (those who have not been going to Dragonfly for many years) and as a result is steadily losing market share.
Newer locations are by no means of international quality – merely improved relative to the old nightclubs. They are generally staffed with unprofessional security and mediocre bartending and wait staff. They sell low quality drinks (exotic cocktails are difficult to find outside of niche locations and hotel bars), suffer from overcrowding and do not understand the nightclub as an experience.
Despite these drawbacks however, the popular clubs in Jakarta turn over substantial profits. For most nightclubs in the United States, because of rent-space, salaries (along with dental and medical insurance), music royalties, general insurance, liquor licenses, entertainment fees and so on, costs are very high indeed, especially in the large coastal metropolises. Indonesian nightclubs do not share these disadvantages, as fees are very low in comparison. When combined with the disposable income available to the party-going elite in Jakarta, along with that of the upper-middle class, significant revenues stand to be made.
Studies have shown that average club goers will spend three to four hours per weekend in an nightclub environment and will spend an average of Rp. 150,000 to 500,000 in that timeframe. The top tier of this group will often spend upwards of Rp. 1,000,000 one night every week; this trend shows no signs of abating.
The typical nightclub is open from around 9:00-10 P.M. to 2:00-4:00 A.M. The primary sources of revenue in a nightclub are high-volume traffic, coupled with nominal spending. In addition to alcohol revenues, a nightclub also generates substantial revenues from door charges that typically range from Rp. 50,000 to Rp. 150,000 per person.
Nightclubs in the late 1980s and early 1990s focused on spectacular light shows and energetic dance music. This relatively simple concept is still quite popular today. However, these concepts have greatly evolved with the times. In recent years this industry has become more sophisticated with the availability of new technology. Overseas, this technology has been taken to new heights with sound and lighting designs designed to create an exciting and memorable experience.
Additionally, the nightclub industry is shifting towards a more total entertainment concept. Guests of these clubs are not only offered a dynamic place to dance, but also a place to participate in the entertainment through interactive contests, theme nights, and other events.
Therefore, the opportunity exists for a new nightclub with an understanding of the socialites, the hipsters, the rich and of clubbers to make an impact by providing an international level of quality and design.
Situation Analysis
Elevate will be a nightclub featuring high-energy dance music with an attractive and world-class concept and design, offering an array of quality liquors and unique cocktails. Hours of operation will run from 10 PM to around 4 AM in the morning, Wednesday through Saturday.
The club will specialize in differentiation; offering a variety of promotions and concepts that will be new to the Jakarta scene. Examples of this include ‘Ladies Night Thursday,’ customer feedback committees and very strong CRM.
The club will distinguish itself with its theme, concept, world-class quality of equipment and staff, exceptional customer understanding and service, continuous marketing, great music and resulting social prestige. Total capacity is expected to be on or around 700 persons, located in Senayan City.
The club will specialize in differentiation; offering a variety of promotions and concepts that will be new to the Jakarta scene. Examples of this include ‘Ladies Night Thursday,’ customer feedback committees and very strong CRM.
The club will distinguish itself with its theme, concept, world-class quality of equipment and staff, exceptional customer understanding and service, continuous marketing, great music and resulting social prestige. Total capacity is expected to be on or around 700 persons, located in Senayan City.
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