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Group Assignment

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Ken Lim

on 9 October 2012

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Transcript of Group Assignment

Tribe Gangsta profile and analysis Introduction Smirnoff now distributes worldwide.
Smirnoff has had various promotional activities to promote the brand to greater segment. Smirnoff has been supporting the nightlife since the 1990's ensuring a quality product for any nightclub. Geographical: Western Sydney suburbs
Occupation: no job/low income earners
Education: Dropped out of school
Hobbies: Crime/ violent
Age: 18 to 23 years old
Nationality: Lebanese and Kiwi
Social viewpoint: Don't usually accept
outsiders however in some circumstances Gangsta personality and lifestyle Tribe Gangsta needs and wants Tribe Night Club Product chosen and decision Product competitive backdrop Night Club Product Map Night Club Core customers value
Actual Product
Augmented Product Core Actual Augmented Macro Environment Night Club Product Map Product Map People strategy Night Club Process strategy Night Club Physical Evident strategy Night Club Pricing strategy Night Club Logistics/ Channel strategy Night Club According to Gangstas' lifestyle, personality and profile we know that the Gangsta's needs and wants of a nightclub: A fun place where Gangsta can expand their lifestyle
A place where all Gangstas can meet together
A place where Gangstas can party all night
A place created for Gangstas' values and morals
A place where full of music and fun
A nightlife experience that differs from that of its competitors

Create the dream a reality According to Gangsta needs and wants, we have chosen a Night Club (ICE) to target the Gangsta tribe.
We create a great Night Club to fulfill Gangstas' needs and wants
We decided to chose a Night Club to target Gangstas' because we knew Gangsta like music, drinks, fun and nightlife.
Accessible via transport at Kings Cross A Night Club is an existent product in the market place, so ours new Night Club will meet some competitors who offered the same product but not the same customer values and experience. The ICE Night Club competitors: The Bank Night club
The Candy Apartment
The Soho Bar Core Actual Augmented Product Map Core Actual Augmented Core Actual Augmented Great
location The
design The
facilities The
room Private
Table Lounges Bar Heat
Thursday Free entry
all night FayDee
Live Funky
Friday The
Saturday The
Venue Great
experience Underground
club The bar The
venture DJs
bands Night
Moves Disco
nights Trend
setting Ritual Events Gold
Room The
Aviary Corner
Suite Art
lounge Piccadilly
Hotel Piccadilly
lounge $8 cocktails/ price Soho
Friday Soho
Saturdays The
Poker Make believe low
price Brand
Name Great
location Good
service Gangsta
design Rap
bands Gangsta
events Gangsta
Day Membership Free
Drinks Smirnoff
bar High Low High Price Experience Competitive
Rivalry Power of
music/ dJ's
audio equipment
lighting equipment Power of customers
bargaining power to reduce prices to satisfy customers Threat of new
The dragon lounge
Tunnel nightclub
hot damn nightclub Threat of
substitue nighclubs
Bank, Soho and Candys Demography
The population of gangsta in suburbs of Western Sydney.
Who are ages between 18 to 23
A male who has no job and no education.
A gangsta who like rap music and nightlife. Economics
Money that is provided to the unemployed by government will decrease
A gangsta who will not get money from their parents anymore.
A gangsta who will meet money difficulty because of big spending Natural Environment
noise pollution created by the club
over estimated waste and rubbish Political and social
Government regulation in running a night club these include owning a liquor license, smoke free environments and gambling license
local/ union officers in checking night clubs order
police authorities fighting in drug trafficking at night club
potential Violence at night clubs Technological
The change of modern technology in night clubs facilities these things include advanced speakers, lighting and audio systems Cultural
The change of gangstas lifestyle/ taste in nightclubs and music
The well being of the social statues of the person: their buying power determines their interest in each choice they make including what nightclub they intend to visit
The cross of ethnicity and religious view of each person
The peacefulness of each person within the club Staffs and customers service The staffs are first class staff who provide high customers experience
New staffs will receive one month training from the night club
The staffs are friendly and smile at all the time when customers enter the night club door
The staffs will help customers with any problems in the night club Due to the low prices of the nightclub, competition will react to this threat to match prices as falling profits result.

Ice will be using a penetration pricing strategy

Price adjustment strategies

1.Segment pricing- adjust price to allow difference in customer and product elevation

2.Psychological pricing- adjust prices to appeal to customers, lower prices= greater market share

3.Promotional pricing- reduce prices to increase in short run below/above-the-line promotions

4.Geographic pricing- adjust price accounts for different geographic within western Sydney 5.Dynamic pricing- adjust prices to meet the needs of different customers

6.International pricing- adjusting prices to appeal to tourism, backpackers etc

7.Discount and allowance pricing- reducing prices to reward customers such as membership, early entry and discount beverage The club will be the clubs its self whilst the a combination of the
staff, drinks, music and the people within the club together to combined the Smirnoff experience
labeling of Smirnoff brand outside the club
posters and brochures will be distributed through western Sydney
with the use of a Facebook book website to promote the club Make agreements with Smirnoff to provide beverages (negotiations)
physical distribution strategies to transfer goods to the club with the added support of logistic companies to hire/ rent audio suppliers
provide inventory/ stock management to automatically orders goods Integrated Marketing Communication (IMC) Night Club Rational appeal- within ice we intend to relate the club to self interest of the gangsta and the benefits to the needs and wants of the tribe
this has been achieved through the IMC strategies these are:
to increase awareness of the club
to introduce the gangsta to a new clubbing experience
to convince that club ice has no comparison towards its competitors (a league of its own) Tribe IMC execution Night club The idea for the night club is provide a fantasy experience out of this world
Ice will provide a new clubbing lifestyle to the gangsta tribe with physical evidence and testimonial
It will provide a mood that compares to no one with a breathe taking image that our competitors thrive to have Promotion above the line Above the line: will consist of promoting the club through basic radio and magazines to target the segment
include nova 96.9, the edge 96.1 at hours 8-10pm
This will involve 20% of the marketing/ promotional budget Below the line: this will consists of mass marketing through web marketing, social networking (Facebook or Twitter)
Facebook pages, free entry/ discounts via social media, discount drinks
And used most of the money to endorse underground rap musicians to appeal to the Gangsta

Whilst below the line will be heavily promoted through 80% of the marketing budget Night club Affordability Smirnoff
experience Create product awareness start with cheap-free entry
implement a penetration pricing strategy & price adjustment strategies (demo, geo, promo)
few competition
offer the basic product
heavily promote the night club using 80% below and 20% above the line Maximize market share increase price as sales increase
however still maintain low price
penetrate the market
mass market promotions/ ads
reduce promotion to substitute demand
increase product extension (multiple clubs)
lower average cost per customer Maximize profits while
defending market share peak sales
high sales/ low customer cost
diversify brand (expansion into new markets)
increase promotion to promote brand
bet competition pricing throughout NSW Reduce expenditure and
create new ideas declining profits
cut prices
reduce sales promotion to budget level
phases out unprofitable items
create new idea generator to repeat the PLC
18 to 23 years old Male
Hate school
Don't want to work
Like rap music
Like wearing hip-hop clothes
Like wearing bling-bling and baggy pants
Like nightlife
Like painting graffiti on public wall Tribe Night Club Product Life-cycle Night Club Positioning strategy Night Club Night Club Promotion below the line The night club will rent a place in King Cross as the location 65 Darlinghurst Rd, kings cross .
We will fulfill any regulation or law by local government in order to open a night club.
We will outsource the design of the night club in a gangstas' style to architects and interior designers
rules will be complied through the night club in an order to ensure ours customers are safe and secure during their fun time in ICE night club
We will also hire protection such as bouncers to provide security for the night club. Business goals Profit objectives
- become profitable
- Gain 20% of the market share within the first year of establishment

Marketing objectives
-specific: aim for 60% customer awareness and brand recognition
-measurable: roughly between 1-2 years of establishment
-achievable: mass promotion using above and below the line whilst using communication strategies that connect to the tribe eg via commercials, club atmosphere and reputation
-relevant: believe this is to undertaken for the best interest of the nightclub
-time: completed within 1 year

customer objectives
-satisfy customer needs and wants
-offer a safe environment
-excellent service

IMC objectives
objective 1: focus on the consumer market above and line promotions 15 million for the whole IMC budget (Overall)
20% above-the-line = 3 milliom
80% below-the-line = 12 million
objective 2: distribution channels and logistic channels
5 million of the budget considering suppliers, dj's outsoured activities IMC budget Night club Night club Available funds- funds will provide by Smirnoff (roughly 20 million dollars in establishmnet)
cost methods- wholesale prices
drinks and activities will be funded by Smirnoff (expenses estimated $25000 weekly predicting labour, drinks, rent, electricity, musicians, equipment marketing activities)
weekly earnings: general clubs within the city $30000-$40000 depending on location and experience therefore these figures are and estimate the budget will be allocated to the promotion strategies above whilst still considering the income of the tribe to satisfy their needs and wants Porter five forces Night Club Worlds best acts Promotion below the line Social Media Promotion below the line Sale discount Promotion below the line Print Materials Promotion below the line Events Promotion below the line Merchandising Promotion above the line cont. Magazine Advertising To reach a greater creater
Gangsta segmnet
we will offer sale discounts on
merchandise These activities will
vary depending on events
we will have within the club
such as Gangsta day and Gangsta Party Depending on events within the club ice we be offering exclusive events every week
Gangsta day: discount drinks all night, free entry and gangsta rap and dance competition.
Disco night: 80's triva prizes included
Half price Membership
Guest DJ's such as David Guetta, Calvin Harris and many more
Gangsta party will coming in every Sunday night with special rap bands and gangsta hip-hop dance. The club will be offer
special offers via brochure
and also help to promote
the awareness of the club
to the greater community
to potential gain
new customers. ICE will advertises advertisements via hip-hop magazines such as hip-hop legacy magazines Australia's biggest rap online magazine company.
Promotion on magazine will cost the night club $3,000 to $4,000 per month.
Magazine advertising has the same object as others in gaining more customers and increse sale and profits. Night Club We have actively engaged in social media such as Facebook page to keep up to date with our customers to keep them informed about any events.
We also use the Facebook page for advertising the club and this advertising activity will cost $ 30,000 to $50,000 per year.
We suggest our customers to sign up their Facebook page and to be a frind with Smirnoff Night Club.
Any up coming events such as Gangsta Day Gangsta Party, Free entry and Drink discount will uploard to the Facebook page. We have made customrs T-shirt
to give it free as promotional items
and also the staff will be wear one
to promote the club its self.
We merchandise the club through
the price that make more value to the
We also promote on making gangsta value through Gangsta Day and Gangsta Party. Night Club The promotion will includ poster, billboard and the club monthly mangzine Promotion above the line Rdio Advertising The club will rent a Nova 96.9 FM radio station to advertise the club events and business activities.
This radio advertisement will capture all gangstas in the Western suburb to know that we have created a unique gangsta night club at King Cross.
We will spend 20% of the IMC budget money in magazine and radio advertisments. Night Club Night Club Night Club Night Club Night Club Night Club
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