Sky Lounge is a new business start-up that will involve a new rooftop bar/grill situated on the top of the new SLS LUX building in Miami, Florida. The bar will provide a unique taste and view as one of the few rooftop bars in Miami. The bar will offer quality and exclusive drinks including beers, wines, and other quality drinks. The access to wide range of quality drinks is important to maintain the bar profitable and attractive the client. The management of the bar is committed in ensuring that al clients have access to diverse drinks and quality customer service to meet their expectations and demands (Armstrong, Kotler, Harker, & Brennan, 2015). The customers will have an opportunity to view the Miami Financial District in Brickell as they enjoy their drinks and foods. The strategic location of the Bar will make it possible to attract many customers who prefer enjoy scenic and urban view. Market Analysis
According to Statista.com (n.d), the sales in the bar and nightclub sector in the U.S has been able to grow significantly over the last years reaching $23.15 billion in 2015. The industry comprises of lounges, nightclubs, and bars as well as other drinking locations that offers alcoholic drinks for direct consumption.
The National Restaurant Association projects that the total sales of drink and food in the American bars could increase more than $25 billion in 2018 (Statista.com, n.d). Bars and lounges often provides alcoholic drinks to paying clients who drinks them on-premises.
The bar industry has been growing by a sluggish rate of 5%. It shows that the bar industry is at the maturity stage of product life cycle and thus, new ventures into the sector must rebrand and come up with new ideas to attract existing and prospective customers.
However, in cities, such as Miami, the demand for alcoholic beverages remains high and the business is likely to become successful. The major customer groups in the sector are younger generation of working class persons who mainly lives in the urban areas.
The owners of the bars and lounges are expected to design their business in a manner that attracts these customer groups. Most of the night bars and lounges’ customers needs to have good entertainment and enjoy their drinks in an exciting environment.
SKY lounge has invested in quality music systems and fittings that will make the lounge comfortable and provide an inviting and exciting environment to the customers. Most of the prospective customers targeted by SKY Lounge leaves in the urban areas and they are offering working class adults.
In Miami, most of the clients are seasonal. However, the location of SKY Lounge gives it an opportunity to tap into the majority of adult clients working in the nearby financial district.
The business will not be affected by the seasonal changes. In spite of all, the management will set plans for expanding its capacity during the summer period. The summer season experiences a high number of customers who are enjoying their vacations in the Miami beaches.
The annual growth of the bars and night club revenues is expected to be 2.1% (Statista.com, n.d). The forecasted growth in the revenue is lower due to the stiff competition from in-home alcohol offerings and other-non-sector establishments offering alcohol including hotels and restaurants.
In spite of all, the overall revenues and earnings will remain sustainable in the foreseeable future. In Miami area, the business will be able to gain around 2% of the overall market in the first one year that around 1,000 consistent customers by week.
During the weekends, the business is able to receive more than 400 clients and the remaining 600 customer visits are distributed unevenly during the week days. Such a market share is good in promoting the profitability and long-term sustainability of the lounge business.
The company will use competitive pricing that considers the prices offered by bars and lounges in the market. The company will set higher prices by 5% compared to its rivals in the market.
However, management will offer 10% sales discount on repeat clients. Such a pricing strategy will be effective in attracting the millennials customers into the business. The target gross margin ratio is 35% as the company is keen on reducing the cost of sales through implementing efficient and effective sales and supply chain strategies in the business.
From a competitive perspective, SKY Lounge is highly marketable and competitive due to its good location. Hiring experienced bar tenders and offering a wide range of alcoholic drinks. However, it has a weakness of being new into the bars industry in Miami.
Customers might prefer existing bars and nightclubs, which disadvantages the business. The main barriers to entry is the high investment cost. To come up with a competitive night lounge, the investment must be huge.
Some of the regulatory restrictions facing SKY Lounge is obtaining business license from the local government authorities, meeting safety requirements and other regulations such as noise control guidelines (Paley, 2017). The company will consult the best legal experts to ensure that all regulations are complied with.
The cost of compliance with the regulations will be part of the initial capital and thus, it does not affect the business operations. Services SKY Lounge will offer quality cocktails and a wide variety of alcoholic beverages.
Most customers visiting the night lounges loves to enjoy good cocktails and classy beverages. The lounge is committed towards offering variety of alcoholic drinks to the customers to meet their needs.
Other services to be offered includes rooms and outdoor venues, mainly during the day. All these services fit into the needs of customers who prefers to visit the bar lounges in Miami.

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