The Oxygen Lounge, an exclusive and upscale bar located in downtown Midland, Michigan, had captured a market segment consisting of older, more affluent individuals in the Mid-Michigan area. One particular age group, “young professionals”, was a market that the Lounge was interested in tapping into. After our initial meeting with our client, we conducted both primary and secondary research, constructed a competitive analysis map, designed a mock website, and developed a marketing plan with an implementation schedule, along with a break-even financial analysis. As a result, the Oxygen Lounge found our marketing plan and suggestions insightful and began implementing some of our recommendations immediately.

1. Eric Krenz Kelly McCracken Ashley Slusser Toi Wadley Alejandro Zarazua Bar Oxygen O2Marketing Plan Thursday, April 30, 2009 MKT424 Dr. Lou Firenze, PhD

2. Agenda What is the Oxygen Bar? Situational Analysis Internet Marketing Market Summary SWOT Analysis Competitor Environment

3. Agenda Marketing Strategy, Goals, and Objectives Marketing Mix Research & Statistics Implementation Contingency Plan Q&A Session

4. Introduction Bar Oxygen O2 is an upscale bar/lounge featuring soft seating situated around the room. It’s known for its elegance, intimate setting, English décor, and a “big city” feeling in a small town.

6. Media Environment Laws/Regulations The Oxygen Bar won The Best of The Best award Shoot weekly email blasts to customers sharing company updates, weekend entertainment and specials for the week Utilize Great Lakes Loons games to promote the restaurants and bars in-between innings Must be 21 years of age to enter Bar Smoke-free environment Local Food and Beverage regulation Regulating alcohol outdoors, must make conscious effort Situational Analysis

7. Musical Background Venue Photos Savvy navigation schemes Grand Opening 1st 20 visitors receive free drink! Internet Marketing www.wix.com/zarazuaa/Bar-Oxygen-O2

8. Market Summary Midland County Demographics population over 82,000, half in labor force Average household Income – 55,000 Median age – 36 years old Trends 75% of customers earned household income over $120,000 65% were over the age of 40 years old Needs Young professionals More middle class consumers

9. Strengths Weaknesses SWOT Analysis

10. Opportunites Threats SWOT Analysis

11. Competitor Environment Top three rivals from survey results Oscars Midland Country Club Bennigan’s Molly’s Bistro: A likely competitor Similar offerings to Oxygen Bar Live entertainment Upscale atmosphere Affluent atmosphere

12. Competitor Environment, cont. Oscars “Party Headquarters” Extensive line of entertainment such as pool, darts, dancing, and a cigar lounge Full lunch and dinner menu, including beer and cocktails Bennigan’s Better known for food than drinks “Half-off” discount evenings on alcohol Midland Country Club Upscale dining and lounge space “Social” memberships available for dining areas only

14. Marketing Strategy Competition Many options for customers to choose from Relaxing, professional environment Current market vs. available market Age Groups Employment

15. Marketing Strategy Capturing the market – Young Professionals Food choices Drink choices Prices Specials Marketing opportunities After-work crowd Great Lakes Loons Outside entertainment

16. Marketing Goals and Objectives Goal 1: Expand Market to Young Professionals Happy Hour Drink Specials Friday Night Entertainment Goal 2: Obtain Internet Presence Web-page counter On-line promotions

17. Marketing Goals and Objectives Goal 3: Improve Seating and Space Utilization Bulky furniture Add seating more conducive to eating and socializing Goal 4: Improve menu Bar-friendly options Reduce or eliminate dessert options

18. Marketing Mix/Tactics (4P’s) Price Product Place (distribution) Promotion

19. Research Section Secondary Data Assess industry environment for Midland area Competitive analysis for key rivals Midland County demographics Sources used: LexisNexis Reference USA U.S. Census Bureau Company websites (Oscars, Molly’s, etc.)

20. Research Section, cont. Primary Data Quantitative and Qualitative information Determine who goes to Oxygen Bar Age, Income, Frequency of Oxygen Bar customers Recommendations/Opportunities Method of Data Collection 52 surveys Personal Interview Tuesday, Thursday, Friday, Saturday evenings

21. Analysis 76% of customers were not guests of The H Hotel 56% of customers visited the Oxygen Bar 1-2 times a month 60% of customers at the Oxygen Bar were 41-60 years old 76% of customers have household incomes of over $100,000, and 4% have incomes below $50,000

22. Analysis

23. Analysis

24. Quality of Prices Tabulated statistics: Quality of Price, Marital Pearson Chi Square = 7.615, DF = 2, P-Value = 0.022 Likelihood Ratio Chi-Square = 11.212, DF = 2, P-Value = 0.004

25. Quality of Prices Tabulated statistics: Quality of Price, Employed Pearson Chi Square = 7.586, DF = 2, P-Value = 0.023 Likelihood Ratio Chi-Square = 7.221, DF = 2, P-Value = 0.027

26. Other Chi-Squared Tests Quality of Food, Guest: 0.449 Quality of Food, Gender: 0.124 Quality of Food, Marital: 0.123 Quality of Prices, Gender: 0.457 Overall Quality, Marital: 0.258 Overall Quality, Gender: 0.057 “Quality is everyone's responsibility.” –Dr. W. Edwards Deming

27. Financials Break Even Analysis What is a break even analysis and why its used? Results for the Oxygen Bar Break Even Point is 8.7 Months

28. Financials Forecasts For the Oxygen Bar Income Statement Marketing Expense Budget

29. Implementations and Control Achieving our goals within specified timeline June 2009 – begin promotions targeting young professionals and creating website July 2009 – Improve quality and price of food, utilize seating arrangements to better suit customers needs September 2009 – measure and compare young professional consumers from Summer 2009 to Summer 2008 , focus on maintaining website and improvements of price and quality of food January 2009 – Gain market share, provide better food and promotions on beverages, maintaining website for customers, and using space provided to best of ability

30. Contingency Plan / Exit Strategy “Typical” liquidation not recommended Lower end – lower priced replacement restaurant Coffee Shop Expanding Café Zinc Conference/Banquet Facilities

31. Summary Current Market: 41-50 age bracket New Market: 23-30 age bracket Best price/quality Correlation between price and employment/marital Best customer service Internet website for expanded reach Four marketing objectives

32. Q&A