SWOT Analysis Of Wonderlust Business

Strengths

Discuss about the Swot Analysis Of Wonderlust Business.

As an entertainment business, establishment of wonderlust has to put into consideration many of the strengths, weaknesses opportunities and threats that it’s likely to encounter as it grows its roots in Lebanon (Campbell, 2017).

Location-wonderlust is located in a serene environment away from the hustles and bustles of a busy town and thus attractive to revelers who would like a get away to a quiet place to relieve their daily stresses

Transportation-the club offers transport and standby taxis for customers who would like to be transported back to their homes r any destination regardless of the time of the night

Appearance-the club is attractive and very classic and this sets it apart from other competitors in the industry

Safety/security-this will be enforced strongly for both clients and staff with a 24 hour CCTV surveillance cameras and security guards on standby

Size-wonderlust has spacious rooms which are not uncomfortable neither are they crammed. The club also offers function rooms for any hires with a lot of dance floors

Entertainment-with a good disco jockey, revelers should expect to be well entertained with the best DJs and VJs in Lebanon. A good collection of music well mixed to suit all group of customers the whole night long will also be available

Affordable drinks-the prices for drinks will be affordable with no drink being sold at more than 35% the purchase price. These are costs lower than the competitors’ prices. This means wanderlust will entice a huge number of potential customers.

Advertisement- advertisement opportunities shall be utilized to promote the club and these include use of social media platforms such as face book, twitter and even instagram postings. In addition wanderlust will put up billboards to advertise live performances by invited musicians and other live bands.

Drinks/services-a large variety of refreshments and alcohols for the customers will always be available with experienced mixologists and this comes with excellent customer service from our staffs

The club will also be launched using a highly publicized grand opening event probably during summer seasons which is full of festive seasons like Christmas. This will ensure wanderlust gains quick customer base across Lebanon

Strong image and business name-‘wanderlust’ is a perfect name to attract customers. It’s actually the biggest strength for the club. At wanderlust customer comes first and our main objective is to meet the needs of staff and customer while offering good quality foods and drinks. Wanderlust aims at making people feel like they are at their own club with a lot of comfort and safety. It’s all about the people in it, it’s personal.

Transportation

Quality food-the menu might be simple but the food offered is of high quality similar to what is found at premier venues. The ‘bar’ appetizers which are traditional will be on standby for revelers to have a taste of what is on the menu for the night.

On days that are less popular such as mid weeks, alternative entertainment will be provided such as dancers, DSTV for football lovers, competitions such as pool games, photographers on standby, pole dance classes, show men and hired comedians. All these are aimed at keeping the club tempo high throughout the week.

Bar staffs that are personalized-this sets wanderlust apart from other competitors. Staff will be hired and get allocated to their ‘staff personality’. The staff will be well trained, skilled and highly professional.

Long opening hours-wanderlust will be opened all night long and this implies more time for customers to come in and leave in the morning. This sets it apart from their competitors who close business by midnight

Marketing-being an unfamiliar club and out of town location, marketing could be hard because wanderlust will be unrecognized and unknown by the target market. There is need to promote the club in a creative manner so as to achieve the exposure needed. Failure to use strong marketing strategies, the attention of the target may not be gotten.

Security issues-a number of antisocial behaviors often come with a night club business considering it’s an alcoholic environment people may get out of control and so security is paramount. This explains the reason as to why wanderlust has well trained security men.

Consumer demands-the consumers are likely to be many, with different demands, wants, needs and even expectations and this comes with changes in preferences and tastes. Wanderlust will have to figure out the main wants of their target market so as to meet their expectations and succeed in the business.

Finances-being a new business, it won’t be easy financially for wanderlust and this is attributed to the many payments and all the upfront costs that come with putting up a new business.

Insurance- this is most likely to be expensive since damage of property is something common in a night club and this means there will be constant claiming which is likely to escalate the premiums to a maximum

Working hours that are long and difficult-staff will be forced to work for long hours especially on Friday and Saturdays and this is likely to be tolling hence affect their ability to work effectively. The hours are also costly for the club because they come with penalty rates

Appearance

Celebrity promotions and appearances-wanderlust aims at having celebrities invited to the club occasionally and this attracts more people and hence increased revenue

Local artists-they will be given chances to perform at the club. This saves money on hiring big artists to come and entertain revelers. It’s an opportunity for the artist and also saves money for the club

Employment opportunities-being a new club, it will create job opportunities for people in entertainment, security, food and beverage industry and even casuals such as cleaners. This lowers the unemployment rates in Lebanon and helps to grow the economy. This counteracts the threat of a slow economy

Cost-wanderlust will engage developed local wineries for the provision of inexpensive liquor that is of high quality. This means wanderlust will supply its products to other people in the business at lower prices

High profits-after carrying out cost benefit analysis it’s clear that wanderlust will make high profits once the business picks up well because the cub is located at a good serene place

High revenues from food sales-the foods that will be sold to customers alongside alcohol will definitely generate money that will contribute to our profit margins

New business opportunities- wanderlust looks into expanding its business by purchasing some other associated business like opening up new branches of the club in other areas of Lebanon

Competitors-this is always a threat to any business and wanderlust is not an exception. Competitors may come up with clever ways of bringing in more customers and considering they already have an existing customer base it makes t worse for wanderlust club which is new

Regulatory institutions-these always have problems they include council and the licensing and permit bodies. They may constantly change regulations which may not work for the good of wanderlust

Complaints-when people complain about something that is not right with wanderlust, such complaints are likely to deter prospective customers from coming in

Liabilities-being club business things such as accidents are likely to occur and the club could be sued or even be forced to shut down

The economy-incase the economy in Lebanon takes a down turn, customers are likely to save more and spend less(considering this is a luxury activity) and this means less people coming in to drink and eat

Increasing of supplier prices-the suppliers may decide to raise alcohol, equipment and food product prices. This will result to high costs and reduced profitability

Safety/security

Declining size of the projected segment-the targeted segment may decrease as a result of economic issues, population reduction or growth (families may relocate for reasons best known to themselves), this means the club will focus on the new segment in spreading its portfolio

Increased competition-wanderlust may have to come up with new innovative features in the future since competition often increases with time opening more room for more clubs to be set up, it should be ready to compete with any additional businesses in this industry which is likely to lower revenue.

This forms the backbone of any business that aims at achieving its goals and making good profits that can sustain the business in the competitive market (Kiyak, 2017)

This brings into perspective the future of wanderlust, the beneficiaries and how it will create value. It assists the club in achieving its vision and goals. It describes who the product is for ie revelers and why people should try it out.

Market describes the customers of wanderlust and in this case they are people who like nightlife and are into drinking alcohol and partying (above 18 years of age). The needs are the problems that the business aims at solving and it’s basically satisfying the happiness of its users. People will go to wanderlust to relieve the daily or weekly stresses from work, life experiences and even friends.

The kind of drinks and food sold at the club will be of high quality and meet the needs of the customers. This makes customers to choose wanderlust over other clubs in Lebanon. Some of the key features include long hours of opening, good music and food, serene environment away from the busy capital city, spacious rooms and dance floors, a good balance of both cool and warm temperatures, great and loving staffs.

Business goals include revenue generation, job creation, business expansion through opening of more branches and sell of products and services at reduced costs while increasing wanderlust brand quality.

The prices of all the beers, wines, spirits, liquor, non alcoholic drinks and foods will be purely based on the price present in the market so as to attract many customers to the club, wanderlust will try to sell below the set market price but will also not go too low to risk business closure as a result of losses. The various products and services shall be discounted once in a while with occasional rewards to the loyal regular customers. For entrance fee charges on occasions that wanderlust will have invited artists the club will ensure the charges are affordable to every reveler that comes for the entertainment and again they will depend on the caliber of the invited artist or comedian.

Size

Different pricing strategies shall be used by wanderlust management team and they include;

Premium pricing-this will be effective when a new alcohol brand shall be introduced and considering its features such an alcohol shall be priced slightly higher than its competitors. To make this palatable to consumers the club will create an image that makes clients perceive the new drink to be of high and good value and thus worth the higher pricing. The marketing efforts have to be in synchrony such as good packaging and décor of the liquor store.

Economy pricing-this is where wanderlust will set prices at bare minimum targeting only a small profit. The target with this pricing is to sell a lot of products at low and affordable prices. This is a good strategy considering wanderlust is a new upcoming club.

Psychological pricing-this aims at encouraging clients to buy the products basing on emotions and not common sense logic. For example a certain drink can be sold at $599 instead of $600 and with the small difference the consumer will find $599 to be cheaper.

Penetration pricing-this is a good strategy for wanderlust because it enables the club to gain market share by pricing their goods and services lower than their competitors. This raises consumer awareness and entices clients to try out the club.

For wanderlust to reach far and wide and have a wide customer base its distribution strategies have to be right. The products and services need to be delivered to the end user who is the customer.

Indirect distribution- the products will reach the end user using numerous channels i.e. from manufacturer, to distributor, retailer then customer creating a long chain.  The club will in some cases get its alcohol through such channels depending on the brand

Direct distribution- this is where wanderlust will establish direct links with different product manufacturers to have the products and services delivered with no middle channels. This includes buying drinks direct from the factories. This saves on costs and thus the most appropriate channel to use.

These play key roles in the marketing of the club and Wanderlust intents to make maximum use of many channels both digital and print in promoting this business. Social media platforms such as face book and twitter will be used to advertise the various products and services the club offers. Use of radio adverts and billboards to market the club such as invited artists and comedians on specific dates. In some occasions drinks shall be sold at cheaper or half prices or even be put on offer as a promotional strategy to attract more customers to the club. The club shall use branding such as sell of branded t-shirts and caps to revelers at affordable prices to market their business

Entertainment

People strategies-once a business manages its human capital well then its profitability and shareholder returns are guaranteed and this explains the importance of people’s strategy in wonderland marketing plan. It’s therefore composed of;

Strategic reward system- rewarding of the workers for doing their job well

Strong corporate culture-this has to be positive and innovative so as to contribute to growth and success of the business

Be armed for the ‘war for talent’-many businesses are struggling with employee turnover in the sense that people are constantly looking for greener and better pastures. It’s the mandate of wanderlust to ensure they retain their good staffs by having a good strategic retention plan so as to fight the turnover issue.

Hiring of the right people-wanderlust aims at hiring only qualified professionals to handle the different sectors in the club and this shall be achieved with a good strategic recruiting program

Training and development strategy-wanderlust aims at growing its employee’s skills and therefore results driven training and development strategy will be used to achieve this. This will increase the club’s performance since employees will feel comfortable working with a caring employer

Sound policies and practices in place-the policies will be well written and fully based on sensible human resource and legal principles and this will assist employees to understand and meet their expectations with ease

Physical evidence strategies-this will be of importance to the services offered by wanderlust since services are intangible and to come up with an effective physical evidence strategy the following will be necessary;

Recognition of its strategic impact-wanderlust first seeks to understand the importance of this strategy. This calls for an effective planning linked to the goals and vision of the club

Mapping of the physical evidence-the service process should be seen by all employees associated with service delivery and this entails use of service blueprint to outline the roles different people play in service delivery

Clarifying the roles of servicescape-such roles include packaging, socialites, differentiators and facilitators. Such an environment will enable wanderlust to build a certain unique image. It also influences how people perform at work and creates a smooth and good relationship between employees at the club and customers

Assessment and identification of physical evidence opportunities-this gives room for improvement on what seem not to be working for the advantage of the club. The setting should help in fulfilling customer needs

Update and modernize the evidence-the created evidences should not remain constant with time, updates may be needed as well as modernization. Without updates the evidences are likely to fail in attracting customers

Affordable drinks

Working cross functionally- decisions regarding servicescape need to be made by the service management using a multi-function team approach. All the departments need to work in corporation to achieve this strategy

Establishment of wanderlust bar is a great idea for Lebanon people who believe in living life to the fullest with no fear. This bar comes with a lot of benefits such as fresh air, socialization and less stress. The main goal of this bar is to be the best in service provision and increase its market share plus profits. To achieve this, the club aims at operating under the best values and business philosophies by bringing in a vibe that shakes the foundation of Lebanese nightlife experience. The bar has a well laid out organizational chart stemming from board of directors, various managers and down to coordinators. The investors have also done good environmental analysis covering both internal and external aspects. The SWOT analysis of this business has put into consideration all the possible expectations that may need time to time evaluation for improvements with the best marketing plan in place.

Conclusion

This project is worth pursuing since it comes with many benefits attached. It’s a kind of business that any person can venture into considering the revenue generation and profit margin postulated. The marketing plan has been well executed with all aspects being considered. Most importantly, people and promotional strategies form the basis of any business successes. Considering there are few people who have thought of putting up a bar in a serene out of town environment then wanderlust comes in as the best pioneer to take advantage of this before other competitors set in. with all the strategies and plans followed to the later, wanderlust is no doubt a business that will succeed. This is because Lebanese people are known for a kind of lifestyle that is full of festivities and celebrations. The SWOT analysis will be a good tool to keep the business in check ensuring that they build on the strengths and opportunities as they work towards minimizing weaknesses and counteracting threats.

To gain a wider customer base the bar needs to put into consideration the following;

Customer satisfaction by staff

Security be given much resource allocation

Payment of staff on time and occasional motivation of good workers

Products and services prices should be realistic not so low or so high

Hiring of good DJs and VJs for good entertainment

Keeping the bar clean always

Limitations

Personnel management especially of service and kitchen staff is a great challenge to any bar business. The stresses that come with such an environment leads to high staff turn over

Keeping up with health and safety regulations could be  a challenge as its costly and time consuming and failure to, the bar risks being shut down

Time commitment-to operate such a business it needs someone who is ready to commit their time to the business. One has to oversee supplies, purchases logistics on a daily basis

Profitability-balancing inputs and outputs may be a challenge in such a business for example if wanderlust decides to set menu prices which will attract a customer but also exceed the structure cost then chances of getting losses are high

Start up cost is quite high and hence wanderlust will need more time to regain its input and start realizing profits

Future research

There is need for people who look into investing in bar business to do critical analysis of the benefits that come with such a business before deciding to venture into it. There is also need for a well laid down marketing strategy at the start of the business.

Just like is the case with wanderlust interested investors need to consider venturing into out of town setups to attract more people to their clubs. Everyone looks for a place that can get them out of the busy city and towns once in a while to unwind and wanderlust offers just that.

References

Campbell, C. (2017). How to conduct a SWOT Analysis (with 6+ examples);In Shopify Blogs  Accessed 3/5/2018 from https://www.shopify.com/blog/74665093-want-to-future-proof-your-business-try-a-swot-analysis

Kiyak, D. (2017). Game changing bar marketing ideas;In Gourmet A ccessed 3/5/2018 from https://www.gourmetmarketing.net/game-changing-bar-marketing-ideas/