101° is currently seeking $7.96 million of equity financing to finance the new entertainment night club. Most of the expenses will be use to construct 101° nightclub in Grand Anse where the tourism belt is located and a popular liming spot on Friday and Saturday nights.
Long-term assets include the nightclub, at 400,000 square feet of currently undeveloped area, heavy duty equipment such as kitchen equipment refrigeration and other equipment. Other current assets include Furniture and Fixtures for every bar, Dance hall and among others. Lighting will be elaborate to create the different mood of each area.
The company (101°) will be jointly owned by its founders. Each founder has over 35 years of experience in the entertainment, nightclub and resort industry. The founders will retain 40% ownership of the venture and will appoint Jim Jones as the General Manager for the first three (3) years. The founder is offering 60% equity ownership for the remaining $5.96 million of investment necessary to start this project. Ideally, two (2) investors would make up the bulk of the funding. They will start receiving dividends in the third year and would be eligible in the fifth year to opt for a buy-out option of their shares y the founders.
Strategy and Implementation
101° nightclub will use the following marketing strategy to have a leading edge in the night life entertainment.
Differentiation by Innovation in Entertainment - Brand Strategy
101° will provide one of the world best night life entertainment with 10 individually-themed nightclub rooms for people with different tastes, two (2) restaurants, One (1) Sports Game room with over 100 TV's that would broadcast many different sporting event and over 100 Gaming devices for customer entertainment.
Specialized Product & Service - Create Brand Loyalty
Large dance floor, local, regional and international theme-based multi-level nightclub, live concerts from local; regional and international artist.
Customer Incentive Programs - Repeated Customer Creation
Satisfy the wants and needs of various target market and make them select 101° as one of the only place for nightlife entertainment.
Focus on Local Market
101° nightclub will concentrate on people in the Grand Anse area. The marketing will be initially targeted towards the growing population in the Grand Anse area. Slowly the marketing programs will extend into other parishes. By focusing on the local market 101° nightclub can use available demographic and behavioral information to create success.
The competitive edge of 101° nightclub is its variety of theme-based nightclubs. The uniqueness 101° nightclub will help us compete successfully against the other night clubs on the area. It will have the best of the broad entertainment programs with national and international dance and live concert with availability of various variety of food will create a world class facility for nightlife entertainment.
The nightclub will use various marketing strategies and tactics to attract the target market to visit the nightclub. The main marketing strategy will be as follow:
Advertising through 101° transportation unit
Buses with a capacity of 10-15 seats or coaster will bring people between the nightclub and various venues.
Promotional Pricing for Students and Visitors
Students and visitors will be offered initial low price tickets for their first entry to 101°
- High quality advertisement will be shown on T.V. to attract students, singles and tourist markets.
- Newspaper Ads - Ads will be placed in local newspapers to create a brand image among people and also to create awareness about the new nightclub.
- Radio Ads - Advertisement and promotions will be made through selective radio channels and various competitions and awards will be offered to make the people visit 101°.
- Billboards - Billboards advertisement of 101° nightclub will be kept in major town, populated areas and highways to attract people to the night club.
- Internet Ads - Advertisement on popular web site in Grenada, example partygrenada.com.
Banner will be kept during sporting, major school events and buses to create awareness of 101° to student and others.
Travel Agency & Hotel
Fliers and ticketing will be made available in travel agencies and major hotels to create awareness among tourist and attract them to 101° nightclub.
101 nightclub sale strategy is based on making a sale and creating a repeat customer through long-term relationship. Sales force will be created to concentrate on different market segments. Separate teams will be responsible for sales revenue from Students, Tourist, Couples and Individual, etc.
The Sales Strategy will be based on the following points.
- Prospecting - Make relationship with customers and generate repeated sales.
- Targeting - Targeting will be done through campaign, advertisement and promotions, etc.
- Selling - Approach, present, answer questions and make a sale.
- Information Gathering - Market research is done in order to find out customer attitudes towards 101° nightclub and change sales tactics accordingly.
The sales force terms will be given incentives based on number of new accounts creation, maintenance existing accounts, keep in touch with customers; build relationship with customers, etc.
The sales for the students market will provide promotional pricing, membership passes for students market. Transportation unit will provide free travel and entertainment to make initial customer contacts. Separate party and one day free admission will be provided to various people segments to make them come to 101° nightclub.
The following chart shows the sales revenue for each month and projected sales for the four years by bar beverage sales, restaurant food sales and cover charges for admission. The cover charge applies only to dance and game rooms and bars; people that only what to go to the restaurant have no cover charge. Sales revenue will increase in the coming years due to the increase awareness by advertisement and the uniqueness of 101° nightclub in the Grand Anse area and other parts of the country. 101° revenue are seasonal with its highest revenue earned during the summer and reduced revenue during the winter seasons.
Finer Design will create a unique website for 101° nightclub. The website will provide all information regarding 101° nightclub, timings, various themes and entertainment details etc. The website also allows people to make reservation online for special events and dinner. The website will create various promotional advertisement targeted toward students and other net-savvy customers.