Club IT's marketing strategy and community-focused business model

Club IT, PART ONE

Club IT: Marketing and message

Club IT: mission and primary clientele

Club IT was formed by forward-thinking entrepreneurs to suit the needs of young consumers. Young people today often are in search of a place to have fun and enjoy themselves. Going to Club IT is the ideal way to unwind in a relaxed atmosphere filled with music, dancing, and refreshments. However, unlike other clubs that focus on attracting tourists, creating a hook-up scene, or being trendy at all costs, Club IT wants to foster a regular clientele, to create a true community. It aims to be a place where 'everyone knows your name,' with music and dancing. This is reflected in Club IT's menu and pricing: unlike some overpriced 'hang-outs' that offer Cosmopolitans and Appletinis, and a sushi menu at the bar, Club IT offers red and white house wine, beer, sodas, and coffees, and a slightly 'upscale' fast food menu that is affordable, even for college students and recent college graduates. The lack of an emphasis on a large alcohol menu makes the club an ideal place for a mixed group of-age and not-of age students to hang out, in an unintimidating and unpretentious environment. The physical layout of the club makes the dancing aspect of Club IT integral to the experience of the evening, so patrons are not just focused on drinking and the eating. This can create a sense of involvement amongst all of the club-goers during the evening.

Different strategies for competitive advantage

At present, Club IT does not seem to be intent upon distinguishing itself as a uniquely innovative club. It does not have a selection of edgy bands or a clear niche in terms of customer musical, alcohol, or food preferences, based upon the current information about its pricing and philosophy. Although the club layout is effective, there is nothing particularly striking about the way the music or dance is offered or staged. Other than its youthful menu offerings, which are fairly limited, it seems to lack a strong sense of brand identity. Its current potential for differentiation or customer segmentation also seems limited. It seems that it is still struggling to find its voice as a club, other than the fact it has decided upon a broadly youthful target audience. The founders state that they want to create a community, but the question remains open as to what type of community. The Club could target a specific population of young people, like college students. Yet in the absence of a very large nearby college or youth-dominated district nearby, differentiation seems to be a questionable policy given that too narrow a focus might alienate all but one or two narrow sections of the youth market.

Operational effectiveness is a difficult strategy for any restaurant or bar to pursue, given that these venues operate on economies of scale, and often need to run 'in the red' for some time before they establish a core customer base. A customer orientation strategy is also difficult, given that the experience of going to a club cannot be customized for each and every club-goer. Thus, given that its target prices are already low, pricing Club IT as a cost leader is likely the best option. The Club could broadly 'differentiate' by drawing in young people on a budget who are eager to avail themselves of inexpensive bar food, beer, wine, and soda, while they dance to a wide selection of the latest music. Many young people want a place to have fun, but cannot afford the high cost of going out -- cover charges, and costly alcohol and bar food can make younger professionals paying for necessities, student loans, and rent shy away from entering a club. Club IT can offer a reasonable alternative to trendy, overpriced venues. The current market environment, which is focused on cost-cutting and weathering the recession, makes this approach ideal for Club IT: it is the right approach at the right time. Even young bar-hoppers not on a budget might be drawn into its 'recession chic.'

Club IT should gather demographic information about the area immediately surrounding the club. Where do young people 'hang out' -- where are nearby schools, stores, and other venues that already attract these core audiences for the club? This will influence where Club IT's advertising is targeted locally. Club IT must find out what websites, newspapers and other media the target group consumer utilizes. Since the net it is casting is broad, it does not have to pursue a narrow differentiation strategy, but all of its marketing it should emphasize its discount deals and how Club IT offers a low cost but fun night on the town. It can offer special promotions for drinks and food called 'recession specials.' Knowing the price point of its target audience, its favorite beverages, and also what nights the target demographic prefers to 'party' on will help in designing its promotional strategy. So will knowing the favorite bands and brands of the consumers.

While Club IT stresses its desire to build a community, offering low prices to a target demographic of young people is the best way to create a community. So many individuals in this target group are keeping an eye on costs -- more so than ever before. Opening up the club with a low cost strategy during a recession will gain Club IT attention and a loyal and durable market audience.