EbonySun

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Nightclub Resort Complex Business Plan

Market Analysis Summary

The EbonySun Entertainment Resort has a wide variety of young people as their target market. The unique facility with dance and music along with bars and restaurants will attract young people living in the local area along with visiting tourists. The Metropolis area which has over 150 colleges and universities in the nearby area. These higher number of colleges makes it very easy to reach its students market through targeted advertising. The proximity of this area to these universities increases the success rate of this project.

Market Analysis

The EbonySun Entertainment Resort is located in the Metropolis area of Gotham, which has over 150 colleges and universities in the nearby area. These higher number of colleges makes it very easy to reach its students market through targeted advertising. The proximity of this area to these universities increases the success rate of this project.

The following data shows the high sales revenue involved with sales of alcoholic beverages in United States. This data shows high probability of success of EbonySun Entertainment Resort. Data is based on the 2002 Economic Census, and includes Sector 71 : Arts, Entertainment, and Recreation, and 39202 : Sales of alcoholic beverages.

NAICS code

Industry description

Number of establishments

Sales, receipts, or revenue
($1,000)

7111

Performing arts companies

674

76,252

71111

Theater companies and dinner theaters

557

54,073

711110

Theater companies and dinner theaters

557

54,073

71112

Dance companies

6

1,550

711120

Dance companies

6

1,550

71113

Musical groups and artists

78

15,604

711130

Musical groups and artists

78

15,604

71119

Other performing arts companies

33

5,025

711190

Other performing arts companies

33

5,025

7112

Spectator sports

492

88,348

71121

Spectator sports

492

88,348

711211

Sports teams and clubs

166

25,150

711212

Race tracks

287

62,401

711219

Other spectator sports

39

797

7113

Promoters of performing arts, sports, and similar events

858

169,214

71131

Promoters of performing arts, sports, and similar events with facilities

524

146,696

711310

Promoters of performing arts, sports, and similar events with facilities

524

146,696

71132

Promoters of performing arts, sports, and similar events without facilities

334

22,518

711320

Promoters of performing arts, sports, and similar events without facilities

334

22,518

7114

Agents and managers for artists, athletes, entertainers and other public figures

7

210

71141

Agents and managers for artists, athletes, entertainers and other public figures

7

210

711410

Agents and managers for artists, athletes, entertainers and other public figures

7

210

7115

Independent artists, writers, and performers

47

11,107

71151

Independent artists, writers, and performers

47

11,107

711510

Independent artists, writers, and performers

47

11,107

712

Museums, historical sites, and similar institutions

347

17,000

7121

Museums, historical sites, and similar institutions

347

17,000

71211

Museums

253

10,987

712110

Museums

253

10,987

71212

Historical sites

35

2,832

712120

Historical sites

35

2,832

71213

Zoos and botanical gardens

51

3,104

712130

Zoos and botanical gardens

51

3,104

71219

Nature parks and other similar institutions

8

77

712190

Nature parks and other similar institutions

8

77

713

Amusement, gambling, and recreation industries

18,483

2,386,699

7131

Amusement parks and arcades

214

72,261

71311

Amusement and theme parks

128

54,839

713110

Amusement and theme parks

128

54,839

71312

Amusement arcades

86

17,422

713120

Amusement arcades

86

17,422

7132

Gambling industries

815

276,717

71321

Casino (except casino hotels)

304

201,901

713210

Casinos (except casino hotels)

304

201,901

71329

Other gambling industries

511

74,816

713290

Other gambling industries

511

74,816

7139

Other amusement and recreation services

17,454

2,037,721

71391

Golf courses and country clubs

8,764

1,004,660

713910

Golf courses and country clubs

8,764

1,004,660

71392

Skiing facilities

247

30,226

713920

Skiing facilities

247

30,226

71393

Marinas

1,066

68,830

713930

Marinas

1,066

68,830

71394

Fitness and recreational sports centers

1,139

86,527

713940

Fitness and recreational sports centers

1,139

86,527

71395

Bowling centers

3,815

471,739

713950

Bowling centers

3,815

471,739

71399

All other amusement and recreation industries

2,423

375,739

713990

All other amusement and recreation industries

2,423

375,739

Market Segmentation

The target market can be separated into the following six categories:

College Students: The closeness of EbonySun resort to various colleges and universities will help the resort attract students in and around the Metropolis area. The students will utilize the facility to hang out, spend vacation times and spring break time between semesters. The unique dance and other international themes will attract both U.S. and international students towards these entertainments. The market segmentation of these student category between ages between 18 - 26 is one of the most important customer segments of EbonySun resort. Most of this target market will be single male and female students, who will be interested in exploring new night life entertainment during their young age.

Single Young Business Professionals - The second category of target market is young business professionals in and around our area between 25 and 40. This area has a lot of industries, including Dell, IBM, Tivoli etc. These corporations have lots of young executives, who have enough money to spend on high quality night entertainment. Currently these professionals are spending their time in small night clubs and bars for parties and get-togethers. With the availability of multi-themed entertainment like EbonySun, they will spend major portion of their income for these entertainments.

Married Couples - People who are married and between the ages of 30 to 40, who have either one or two kids or don't have any kids are targeted for this entertainment. The middle aged people have sound financial income and will be interested in spending an occasional weekend out for party. The Broadway-themed nightclub, and New York- and Paradise Island-themed restaurants will attract these people to enjoy their weekends and holidays in EbonySun.

Tourists/Vacationers - The Metropolis, Gotham area is one of the important tourist areas for visitors from other states and also for the international tourists. This category of people will be interested in getting a unique experience by spending more money. EbonySun provides multilevel dance, hip-hop, and pop entertainment with awide variety of entertainment and restaurant themes in its facility. The tourists can be easily attracted to the facility by creating vacation packages with various airline agencies and local tourist help brokers. The age category can range between 25 - 40 for tourists.

The following table shows data from the U.S. Census Bureau about the various age categories of people within a 20 mile radius of  Metropolis. Out of total 5 million people, more than 2 million people can be targeted by EbonySun entertainment.

Age Group Estimate
20 to 24 years 372,591
25 to 34 years 899,618
35 to 44 years 911,494

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
College Students 50% 749,590 1,124,385 1,686,578 2,529,867 3,794,801 50.00%
Young Business Professionals 40% 900,000 1,260,000 1,764,000 2,469,600 3,457,440 40.00%
Married Couples 30% 900,000 1,170,000 1,521,000 1,977,300 2,570,490 30.00%
Tourists/Vacationers 30% 150,000 195,000 253,500 329,550 428,415 30.00%
Total 39.59% 2,699,590 3,749,385 5,225,078 7,306,317 10,251,146 39.59%

Target Market Segment Strategy

The market is segmented based on the age and lifestyle category of each group. Market is also segmented into various categories for targeting different types of promotions and advertisements suitable for each target market segment.

College Students:  This segmentation is targeted for students of ages between 18 to 26. Students are more interested in drinks and dance and will find value in variety of nightclub theme rooms. The "Vault"  nightclub room provides the largest dance floor, the world's largest multilevel bar with live host concerts, which will definitely attract this market. The "Ozone and Cloud Nine" themes with Ozone dance music, water bars and hot tub bars will attract students to enjoy unique drink and dance entertainment which is not available anywhere in U.S. at this time. The "Carnival" themes will provide South American party theme and this will help targeting the international students. The "Fat Tuesday" with alternate music & metal play will attract students from various nationalities who wants to listen and hangout for a good time in the resort.

Single Young Business Professionals: This segmentation is targeted for young business professional between the ages of 25 and 40. The business professionals will be interested in conducting business parties, client meetings, client entertainment and other social activities in places of unique entertainment. Compared to students, this segment has more potential to spend money in night life entertainment activities. This segment of the market can be attracted with corporate promotions and targeted corporate tie-ups for promotional dinner and entertainment activities. These business executives will enjoy "Sin City"-themed nightclub with unique Las Vegas theme with Ocean's 11-type movie setup. The large dance floors with rap, hip-hop and rock music will easily attract young professionals. The business executives will be attracted to "Fat Tuesday New Orleans" theme which hold 15 bars and conduct wild parties. Target marketing for these market will be done through corporate promotions and targeted advertising.

Married Couples: This segmentation is for people in the age group of 30 to 40 who are married and are interested in having fun outside. Most of this group will spend weekends in bars and restaurants or any other public entertainment places. This group enjoys 60's, 70's & 80's music theme in "Throw Back Central" which has unique designs like Saturday Night Fever. This group enjoys "Carnival," "Outer Limits" & "Broadway" themes. The Broadway theme will help them entertain like they are spending nights in the Big Apple. This market can be attracted through unique direct marketing promotions through coupons and free dinner offers.

Tourists & Vacationers: This market targets people who visit this area from other parts of U.S. and other countries. The Metropolis area has over 250,000 tourists annually; approximately 150,000 of them are adults in our targeted age ranges. This market is constantly looking for better entertainment places and will be ready to spend more time and money for these unique entertainment resorts. The age group for this target market can vary between 20 to 40 years. Most of the tourists will be interested in all types of themes since they will get various experiences by visiting at different nightclub themes. This target market can be attracted by selective ad promotion through travel agencies. Tourists can also be attracted through big billboard ads placed near airports and hotels with promotional package advertisements. 

Service Business Analysis

EbonySun Entertainment Resort is in the nightlife entertainment industry, along with casinos and other specialty restaurant businesses. The entertainment industry grows tremendously every year, making very good profits for businesses. The major competitors are restaurant, small nightclubs, major restaurant chains, other adult entertainment centers in the vicinity of Gotham/Metropolis area. The U.S. Census Bureau report shows that gambling industry made $20 billion dollars in revenue in Year 2002, out of which Gotham made approximately $8 billion revenue and other gambling industries, including nightclubs, made $7 billion dollars sales revenue. Amusement, Gambling & Recreation industries have grown from $62 billion in 1997 to 65 billion in 2002.

Competition and Buying Patterns

EbonySun is competing against other local nightclubs, but also against movie theatres, mini-golf, rock concerts, bowling, restaurants, plays, symphony performances, and free parties. We are competing for the disposable income and leisure time that our potential customers would otherwise spend elsewhere. However, once a potential customer has decided they want to go out to eat or to go dancing or listening to music, we are most closely competing with similar types of businesses: other restaurants, nightclubs, and concert venues. Our challenge is both to encourage them to choose activities we offer, and then to preferentially choose EbonySun over smaller, less unique options.

The Metropolis area has hundreds of thousands adults, age 21-40, who attend a concert or go out to a nightclub at least once a month. We not only have to encourage customers to come to our venue, but to choose this kind of entertainment over quieter ones. In the nightlife entertainment industry, people make choices about return visits based on the quality of the environment and experience, along with drinks and food. The price should be competitive enough to attract a wide variety of customers.