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...

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.