summit struggles in light of 21 ordinance
DESCRIPTION
Real research performed on the Summit bar in Iowa City struggling to succeed in light of new 21 ordinance being passed. Offers reasons for struggles as compared to other local competition and due to bar characteristics. Also offers recommendations based off of research.TRANSCRIPT
Tony Hamilton, Luke Hernandez, Tim Schmecht, Dustin McAninch, Grace Lowery
The SummitOverview of Business
Owned by Mike PorterOpened in December 2001 in downtown Iowa
CityIt is a bar, restaurant, and nightclub
Current Marketing EnvironmentHas a Website and Facebook pageDirect competition with other Iowa City bars
21-Ordinance• No person under the age of 21 is
allowed in an Iowa City bar after 10pm
• Potential effects on Summit Less patrons Decrease in sales Possibly go out of business
Management Decision ProblemsMDP
How can we increase market share in downtown Iowa City in wake of the 21 ordinance?
Alternative ActionsAdvertise moreSpecial theme nightsLower prices for patronsCelebrity guests
Marketing Research ProblemsMRP’s
What do college students look for in a bar?What specials appeal to students the most?Who would students want to see in a celebrity
guest? What are competitors doing differently to
increase their market share? What are competitors pricing strategies? What can The Summit do differently to
increase profits in wake of the 21 ordinance?
Exploratory ResearchIn-depth Interview
Key questions and answersPossible Reasons for MDP’s
Secondary research findingsLocal paper articlesFacebook page and web site
Observational research
Sampling TechniqueNon probabilityQuota
Males and females Then convenience sample
(friends/classmates/coworkers)Quick & easyNot completely random
Data Collection Method
Face to face Convenience
Target population condensed in one area
Low cost, easily
accessible
Improvements that can be made
Measurement•N
umber of ?’s, types of ?’s, what we discovered:
Our Questionnaire
•Of The Summit
Perceptions
•Specials, events, the website
Awareness
•Gender and age
Demographic
•Atmosphere, specials, 21 ordinance, etc.
Preferences
Do Males or Females visit IC bars more often?Cross tab (gender & avg.
nights a week visit IC bars)
0 nights Males=10.5% (4 males) Females=18.9% (7 females)
1-2 nights Males= 55.3% (21 males) Females = 54.1% (20 females)
3-4 nights Males= 26.3% (10 males) Females = 27% (10 females)
5-7 nights Males = 7.9% (3 males) Females = 0% (0 females)
Males and Females go out about the same amount of nights a week
Outlier: Small amount (3) of Male extremists who go out 5-7 times a week
What Nights Are the Most Popular to Go Out On?Frequency Distribution
Monday = 5% Tuesday = 19% Wednesday= 21% Thursday = 59% Friday = 69% Saturday = 67% Sunday = 4% Don’t go out = 16%
The most people tend to go out on Thursdays, Fridays, and Saturdays (popular nights)
Mon
days
Tuesd
ays
Wed
nesd
ays
Thurs
days
Friday
s
Satur
days
Sunda
ys
Don't
usua
lly g
o0%
10%20%30%40%50%60%70%
5%
19% 21%
59%69% 67%
4%
16%
Days Respondents Usually Go Out
Days of Week
Perc
ent
Sele
cte
d
Chi Square Test of Association Ho: Going out on one popular night is not associated with going
out on another popular night Ha: Going out on one popular night is associated with going out
on another popular nightPeople who go out on Thurs. tend to go out Fri. and vice
versa P-value=.001<.05=α, reject Ho
People who go out on Fri. tend to go out Sat. and vice versa P-value=0<.05=α, reject Ho
Cannot Claim people who go out Thurs. tend to go out Sat. and vice versa P-value=.068>.05=α, fail to reject Ho
Do people who go out on one of the most popular nights tend to go out on other popular nights?
Frequency DistributionWord of mouth = 57.3%Social network = 41.3%Newspaper = 1.3%Word of mouth and social networks are the most
frequent ways people gain info about IC bars
41.33%
57.34%
1.33%
Most Frequent Form of Gaining Info About DT IC
BarsSocial NetworksWord of MouthNewspaper
What is the most frequent way of gaining info on IC bars?
Is Word of Mouth Considered the #1 Way to Gain Info About IC Bars?Hypothesis Test
Ho: % Ranking WOM & SN #1 ≤ 50%Ha: % Ranking WOM & SN #1 > 50%P-value=0 < .05=α, Reject Ho
We have sufficient evidence that Word of mouth and Social Networks are the most frequent ways consumers gain info about IC bars
What Bar Characteristics Influence Bar Choice?
Frequency DistributionDance club = 42Sports Coverage = 39Crowded = 31Seating room = 28Other = 24Uncrowded = 12
People prefer bars that offer a dance floor and/or sports coverage
What are the Most Important Factors in Deciding Which IC Bar to Visit?Frequency Distribution
Drink prices = 37Atmosphere= 26Cover charge =9Speed of service = 2Live entertainment = 1
Drink price and atmosphere considered the #1 factors that influence what bar people go to
Are Drink Price and Atmosphere the Most Important Factors in Deciding What Bar to Visit?Hypothesis Test
Ho: % ranking DP & Atsp most important ≤ 50%
Ha: % ranking DP & Atsp most important > 50%
P-value= 0 < .05=α, Reject HoWe have significant evidence that Drink Price
and Atmosphere are the most important factors in deciding what bar to visit
What is IC’s Favorite Bar?Frequency Distribution
Brothers = 28% Union = 19%Fieldhouse = 17%Summit = 15%DC’s = 12%Other = 9%
Brothers was selected as the favorite bar by the most people
Summit Vs BrothersRan cross tabs between:
Favorite bar & #1 Most important Factor in deciding which bar to go to 76% of those listing Brothers as their favorite bar, listed drink price as
the most important factor when choosing a bar to go toBrothers Drink Prices attract customers and make it a
desirable destinationBrothers Advantage – Drink Prices
Brothers’ 76% compared to Summit’s 36 % shows that Brothers offers more desirable drink prices
Summit should offer better drink specials
Summit Vs BrothersAtmosphere
Summit’s 55% compared to Brothers’ 10% shows Summit offers a more desirable atmosphere
Summit Advantage – AtmosphereSummit should continue to push that they have the
atmosphere the consumers wantKeep the atmosphere desirable
• Sports Bar• Among the respondents who chose Summit as
their favorite bar, only 27% of them preferred a sports bar
• Brothers was above 60% in this area• Recommendations: Focus on
creating/enhancing a sports bar image for summit
Summit Vs Brothers
Summit Vs BrothersDance Club
Summit obviously has an advantage over Brothers in this area
73% of those favoring Summit prefer a dance club Huge compared to 38% of BrothersWhy isn’t Summit successful then?More info!!
Age IssuesAs shown previously, 73% of those selecting
Summit as their favorite bar also selected dance club as a preference
We wanted to see what the mean age of those preferring a dance club wereTurned out to be under 21This could be a main factor for the lack of
success since the 21 ordinance
Age IssueThis made us curious about the avg. age of those favoring Summit
and BrothersThe avg. age of those picking Summit as their favorite bar was 20
This is obviously an issue because the majority of people favoring Summit can no longer go there
Brothers continued success in light of 21 ordinance could be accredited to the avg. age of those favoring them being above 21
Recommendation: Discontinue serving alcohol and promote Summit as a alcohol free
dance club and/or allow BYOB policy to gain under age and of age customers
Key RecommendationsCoupons for drink discounts
Facebook At door on most popular nights
For less popular nights or both
Improve Social Networking Maintain and update Facebook
Events, specials, pictures, discounts Promote on Twitter
Bar Characteristics More emphasis on sports bar
Promote major events heavily Offer specials during games
More emphasis on dance club Schedule live Dj’s Separate upstairs from downstairs (underage dance club)
Questions???