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Nightclub Business Plan New York Essay

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The demographics of our target audience is within the 21-25 age group. This can skew a little bit older at times, but not younger for legal reasons. We expect YOLO to draw from a 20-mile radius or so. The extent of our drawing power will be related to the quality of the nightclub – the better it is the further it will draw from. This is New York, so competition is intense. The demographic will be mixed, reflecting the population of New York. Young people of all demographics enjoy the nightclub experience, and we aim to be a safe and open space for all to have fun, so we are not specifically targeting white, black, Latin, Asian or Middle Eastern in particular. As such, we expect the demographic to be predominantly white, but maybe only 60% so, and it could end up being less.The nightclub will draw from the community of middle class and upper middle class in the area. These will be both college students and those who have recently left college. YOLO will focus on drawing in a crowd that is wealthier and therefore more likely to have obtained a college education. That said, anyone of equivalent status is going to be attracted to the club – if you have good taste, you are going to want to come to YOLO.

While the club will cater to both genders equally, the reality is that the marketing needs to be focused largely on the female audience. Bringing in females to the club is what will bring in the males. This is the nature of the nightclub business – the men will go where they ladies are, so marketing efforts have to be focused on what will bring in a high percentage of young and eligible females. Groups of people in mixed gender are definitely going to be encouraged in the marketing, as such large groups are perfect for creating an energetic vibe. The club will not discriminate on the basis of sexual orientation, and will be a safe space for all, but this will be a hetero club in general.

The psychographic characteristics are the young, energetic who are looking to have fun. The psychographic profile is basically a subset of the demographics – there are other entertainment options for this demographic but on club night the energy and desire to have fun are the most important attributes.

The New York City market is massive, with around 20 million people in the metropolitan area. It is believed that the population within our age target is around 600,000-700,000, roughly 51% female.

The nightclub industry is an attractive industry to enter right now for a couple of reasons. First, there is high turnover of businesses in the industry, and customer tastes are quite changeable. This, combined with low barriers to entry, means that...

The industry is favorable in terms of pricing because the consumers are price takers. While there are a lot of competitors and other entertainment options, for a nightclub with a successful concept, there is a tremendous amount of money on the table.
To be successful in this industry, there are two things we need to offer a unique experience, as that is what is needed to bring people into the club. In a competitive marketplace, you need to stand out. Then, once you’ve attracted people in the first place, it is important that they have a great time. So the experience – the core experience of dancing, drinking and having a great time – has to be spot on, or they will not return.

The market is actually declining. This is a simple matter of demographics. The demographic cohort chart shows that the 20-24 demographic is smaller than the 25-29, and by quite a bit. This means that in the short run the number of people who fit within our age profile is declining in New York. The economic environment, however, is quite favorable. Young people in the city are often able to land fairly good jobs, especially in industries like software, where the skills possessed by young people are in high demand. The social environment is also favorable. Young people with money love to have a great time, and nightclubs have honestly never gone out of style. There are always entertainment businesses competing for this market, but ultimately the nightclub business has been attractive to our target market for decades. The biggest trend that will impact the market is the declining number of people in our target market. This will mean that competition in the nightclub business will become even more intense, and fewer companies will be profitable.

Competition, a decline in the economy and changing social values are all external forces that could bring about challenges for YOLO. The reality is that YOLO is a great idea unless people stop wanting to go to nightclubs. But other competitors can easily take our idea and become direct competitors – rotating venues is a great idea initially but at the end of the day it is easy to replicate. Furthermore, we need young people in the city to have enough disposable income to patronize, and an economic downturn, especially in finance or tech, would bring about a disastrous scenario where that is concerned.

Competitive Analysis

There are dozens of nightclubs that are direct competitors. In all honestly, these change frequently as older ones go out of business and new ones enter the business. Constant rotation is a fact of…

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