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5. Strategy
“En-chanté” has built its strategy on its capacity to spearhead when it comes to Karaoke bar in Nantes. Indeed, it offers a very innovative concept “En-chanté” that will benefit from the on-going trend of Karaokes in France.
The company will lay stress on high quality service, first to attract customer and then to develop loyalty. “En-chanté” will offer a well-designed experience with state-of-the-art technology to customers: the possibility to rent a private room to sing, with more than a 20,000 songs available, in French, English and Chinese, as well as an international buffet and drinks.
5.1. Sales strategy
“En-chanté” wants to adopt a particular innovative sales strategy in Nantes. Indeed, the strategy wants to underline the enjoying unique experience and social time that customers will encounter when they enter the Karaoke bar.
The first major point will be the possibility to rent private rooms with friends to sing. There will be an increasing effort to maintain the top-quality of our service especially through feedbacks from our customers. We also aim to develop a customer loyalty program, to encourage clients to speak about the concept and invite others to sing.
Then, the second part of our sales strategy will be to provide snacking food and drinks, non-alcoholic and non-alcoholic beverages, to our customers. The sale of food and drinks will help the customer to live an authentic social experience inside our Karaoke bar, and will participate into the success of the adventure “En-chanté”.
The sales strategy will target obviously students who miss their Asian experience of Karaokes, such as students from Taiwan, Vietnam, Thailand and China, but also students who want to remember their exchange semester in those countries. In the same way, the strategy will focus on students who have heard about their friends’ experience in such countries would also want
DOI:10.6814/THE.NCCU.IMBA.007.2018.F08
to try this particular journey to the world of songs, and evidently, those who want to discover a revolutionary type of leisure.
Catering young executives from start-ups and big companies will also be a part of our sales strategy. Indeed, some events could be organized for them such as after-work drinks during the week, farewell drinks, and some teambuilding parties. They will consist in a great part of our sales.
5.2. Sales forecast
Then, let us have a look at the sales forecast. They are reasonable conservative so that goals will be achievable. Sales will begin slowly as the concept is very pioneering in the industry of Karaoke bars. Then, thanks to word-of-mouth communication and aggressive marketing strategy, an interesting and promising growth will be observed during the first months.
During the first month of opening, we are expecting around 15 bookings. There will mainly consist in bookings from friends and family. Indeed, as the two founders have studied in Nantes, they still have friends in the city and also some family around. After aggressive marketing on social media and with partnerships with student associations, we aim to attract more and more
Figure 5: Estimated hours of rental per month (1st year) 0
Nb of bookings (2h of duration) for the first year
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customers quite quickly as the revolutionary concept will intrigue the city-dwellers. We therefore expect increasing attractivity to reach around 200 bookings in the month of June.
Thanks to word-to-mouth communication, “En-chanté” would have become popular and well-known among young adults. Furthermore, the end of the year symbolises for some students the end of their student life, and partying with close friends in a Karaoke could be a great way to celebrate it. Also, before summer holidays, students enjoy gathering with their close friends to have a farewell party. “En-chanté” Karaoke bar will be there also for them.
Nevertheless, during the summer, there will evidently be a slowdown in the frequentation of the Karaoke bar. Indeed, it is similar to a dead time for business and bars in France, as almost everyone takes holidays during those two month. The remaining customers will be young executives who have to work during the summer, and some young families native of Nantes, who would enjoy partying with children or friends.
Thankfully, the month of September, when students go back to universities and companies are re-opening after the summer, will be very beneficial for “En-chanté”. We therefore have expected around 160 bookings during this month. Here again, students will go to Karaoke to celebrate the beginning of a new year, companies will go there to do some teambuilding activities and student associations will go to “En-chanté” to introduce their association to new students. French student associations, even if they have social purposes, will necessarily go partying to attract new students in their ranks.
In the same way, in November in schools like Audencia and Centrale Nantes, it is the special month every year for the election of Student Council, the Art association and the Sport association. During this month, classes are lightened to allow students to take part of this amazing month.
During the campaigns, school events are organised every day by all the running parties. The particularity of the parties is that they make performance for free for the whole university: sport events, parties, food, drinks etc. “En-chanté” will, therefore, develop partnerships with 2 or 3 parties that will pay the bar to offer unique experience to other students.
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students. It will allow the Karaoke bar to rake around 300 bookings in the month of December.The student customers will also share the place with more and more young executives who want to have special leisure in weekends and during the week for “afterwork” parties. It is very common in France to do some activities in the evening in a bar with colleagues: pool, darts etc… “En-chanté” will also be there for them to offer a new social experience.
Let’s now have a look on the customers’ occupation and how they will share the place over the years.
This chart highlights the occupations expected of the customers, expressed as a percentage. To explain this evolution of profiles, we aim that more and more young and dynamic executives will enter “En-chanté” bar and will live a unique experience inside our walls. This will be possible thanks to marketing actions designed to attract young entrepreneurs and young executives. Nantes is very dynamic in the number of company creation: around 2,000 new companies in 2016. Therefore, all those start-ups could be targeted to develop tiny links for corporate events. Nonetheless, the proportion of students among the customers will necessarily remain predominant, as they spend more time in bars and in Karaoke than their elders. In other
0% Figure 6: Expected customers' occupation
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words, the proportion of executives among the total of customers will not overcome 40% as they are, in principle, less attracted by Karaoke bars.
In addition, they will not come necessarily together in the bar: young executives prefer to party on Monday, Tuesday and Thursday in Nantes, for afterwork drinks whereas students usually go out on Wednesday in Nantes and weekends.
DOI:10.6814/THE.NCCU.IMBA.007.2018.F08
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