Prospect Prospect Lounge Lounge Presented By: Team 5 MKTG 470.5 Dec 9, 2009
May 16, 2015
Prospect Prospect Lounge Lounge
Presented By:Team 5
MKTG 470.5Dec 9, 2009
Presented By:Team 5
MKTG 470.5Dec 9, 2009
The Researchers:
Kate AmmermanKate Ammerman
Elisha Bradenburgh Elisha Bradenburgh
Lindsey JohansonLindsey Johanson
Gary LachmanGary Lachman
Jenna LynchJenna Lynch
Lauren MagnusonLauren Magnuson
Daniel MickelsonDaniel Mickelson
Patrick ThomasPatrick Thomas
Eric VillanovaEric Villanova
The Objectives:What is the demanddemand among SDSU students
for a modern sports bar/ lounge in La Jolla?
What attributesattributes are important to SDSU students in a sports bar/ lounge?
When and how oftenWhen and how often would students frequent our establishment?
What are the motivatorsmotivators for SDSU students to frequent our establishment?
How much money are SDSU students willing willing
to payto pay at Prospect Bar and Lounge?
Team Expectations:
Among SDSU students- We estimate a low demand for a modern bar/lounge in La Jolla
We estimate students would go Fri or Sat nights and about once a month
We believe the attributes important to SDSU students will be:-Primarily: Happy Hour-Secondarily: DJ/Live Music
Team Expectations:
We predict the motivators important to SDSU students will be:
-Primarily:Friends-Secondarily:Proximity to Home
We expect the average SDSU student to be willing to spend approximately:
-Drinks: $20-29-Dinner: $10-19
Executive Summary: Key Findings: TThere is a high demand
for the attributes of a modern sports bar/lounge like Prospect, but further market research is needed to determine how far students are willing to drive to attain those attributes.
The top attribute that was important to SDSU students in a sports bar/ lounge was:• food portions and quality- with 41% of
respondents ranking it first among various attractive attributes
Executive Summary: Key Findings:The top motivator for SDSU students to
frequent our establishment was because friends want to go (at 94% of respondents choosing that option).
The top rankings for how much students would spend on alcohol and food were 40% of SDSU students spending 0-$9.99 on alcohol and 47.5% would spend 10-19.99 on food.
Executive Summary: Recommendations:
1-SDSU students are not the ideal 1-SDSU students are not the ideal market segment of the market segment of the population of San Diego to population of San Diego to target. Most students did not target. Most students did not frequent La Jolla on a monthly frequent La Jolla on a monthly basis enough to justify the basis enough to justify the allocation of substantial allocation of substantial marketing funds.marketing funds.
Executive Summary: Recommendations:
2) We recommend only targeting 2) We recommend only targeting SDSU students if you are willing SDSU students if you are willing to significantly decrease your to significantly decrease your drink prices, offer additional drink prices, offer additional incentives for students (special incentives for students (special discount happy hours or student discount happy hours or student discounts with SDSU ID)discounts with SDSU ID)
Executive Summary: Recommendations:
3) If you do choose to market to 3) If you do choose to market to SDSU students we recommend SDSU students we recommend that you focus on the top that you focus on the top motivators for the students motivators for the students through marketing your food through marketing your food portions and quality. The market portions and quality. The market would bear a slight increase in would bear a slight increase in food prices to compensate for food prices to compensate for potentially lower liquor prices to potentially lower liquor prices to generate new traffic.generate new traffic.
Exploratory- Background:
Coastal Cuisine
Views of La Jolla Cove
2 Fire Pits
Daily Food & Drink Specials
Exploratory- Background:
Live music Mon-Sat
Salsa Dancing Mondays
Free Wireless & Wii Sports
Secondary Research- Background:
In San Diego, 40% of the total restaurant bill for 2 people is spent on drinks.
A student spends more than $13,000 per year on average.
Of Which, 19% is discretionary- totaling up to $211 per month
College students spend most of their discretionary income on food. - more than $11 billion a year on snacks and
beverages.
Secondary Research- Background:
Each year, American college students spend $5.5 billion on alcohol.
-It is estimated that the average student spends at least $50 per month on beer alone.
Competitors of Prospect:
• Altitude Sky Lounge• Top of Hiatt• Jack’s in La Jolla• Tower 23 Bar and Lounge
Methodology: Who?
The population of interest surveyed was SDSU students on campus in Fall 2009.
Methodology:
Why?In order to Understand:-Where students hang out-When students go out-What attributes are key in attracting
students-What price they’re willing to pay Bottom Line: to assess the potential profits
that SDSU students represent
Methodology:How were subjects selected:
SDSU campus was divided into 8 sections using the campus map as our sampling frame.
Each researcher was randomly assigned to a section, day, and time to pass out surveys
25 students were sampled by each researcher. A total of 200 SDSU students were sampled.
Methodology:NAME DAY TIME Section
Jenna F 1pm 1
Eric W 11am 2
Gary T 8 pm 3
Patrick M 7 am 4
Kate TH 2 pm 5
Elisha T 9 am 6
Lauren TH 4 pm 7
Lindsey M 12 pm 8
Methodology:
How were subjects selected:
Systematic probability sampling was used, with a skip interval of 10. (every 10th person was asked to complete the survey)
If the 10th person refused, we asked the next person seen. Repeated, if necessary, until we got a participant. Once we are successful with a participant, then the systematic sequence resumes
REJECTION RATE: REJECTION RATE: 43.9%43.9%
RESPONSE RATE:RESPONSE RATE: 56.02%56.02%
Methodology:
SPSS Software was used to process the data
• Frequency Tables were generated to determine results of the survey questions
• Descriptive Statistics identified our survey respondents
• Cross Tabs were used to compare variables• Pearson Chi-Square was used to determine
goodness of fit of the data collected
Methodology:
The sample taken is a probability sample.
Every element in the sample has a
known nonzero chance of being selected
The sample is representative of the population of interest.
The sample demographics were comparable to population demographics
Gender- Demographic Comparison:
Ethnicity- Demographic Comparison:
Age- Demographic Comparison:
Major- Demographic Comparison:
Major- Demographic Comparison:
Class- Demographic Comparison:
Q1Questionnaire Results:
Q2Questionnaire Results:
Q3Questionnaire Results:
Q4Questionnaire Results:
Q5Questionnaire Results:
Q6Questionnaire Results:
Q7Questionnaire Results:
Q8Questionnaire Results:
Q9Questionnaire Results:
Q10Questionnaire Results:
Q11Questionnaire Results:
Q12.aQuestionnaire Results:
Q12.bQuestionnaire Results:
Q12.cQuestionnaire Results:
Q13.aQuestionnaire Results:
Q13.bQuestionnaire Results:
Q13.cQuestionnaire Results:
Q14.aQuestionnaire Results:
Q14.bQuestionnaire Results:
Q15.aQuestionnaire Results:
Q15.bQuestionnaire Results:
Q16Questionnaire Results:
Q17Questionnaire Results:
We cross-compared:
1) Age to frequency of visits to La Jolla: Those that are 21 years old and visit La Jolla on average 1-2 times a month.
2) Income to discretionary money spent on restaurants/bars: Those with income $0-$499 per month spend an average of $0-$49.99 on food and drinks per night out at a restaurant or bar.
3) Income to frequency of visits to La Jolla: Those with an income with $0-$499 on average visit La Jolla 0 times a month.
Cross Tabulation Analysis
Key Findings:
TThere is a high demand for the attributes of a modern sports bar/lounge like Prospect, but further market research is needed to determine how far students are willing to drive to attain those attributes.
The top attribute that was important to SDSU students in a sports bar/ lounge was:
• food portions and quality- with 41% of respondents ranking it first among various attractive attributes
Key Findings:
The top motivator for SDSU students to frequent our establishment was because friends want to go (at 94% of respondents choosing that option).
The top rankings for how much students would spend on alcohol and food were 40% of SDSU students spending 0-$9.99 on alcohol and 47.5% would spend 10-19.99 on food.
Recommendations:
SDSU students are not the ideal market SDSU students are not the ideal market segment of the population of San Diego to segment of the population of San Diego to target. Most students did not frequent La Jolla target. Most students did not frequent La Jolla on a monthly basis enough to justify the on a monthly basis enough to justify the allocation of substantial marketing funds.allocation of substantial marketing funds.
Recommendations:
We recommend only targeting SDSU We recommend only targeting SDSU students if you are willing to significantly students if you are willing to significantly decrease your drink prices, offer additional decrease your drink prices, offer additional incentives for students (special discount incentives for students (special discount happy hours or student discounts with happy hours or student discounts with SDSU ID)SDSU ID)
Recommendation:
If you do choose to market to SDSU If you do choose to market to SDSU students we recommend that you focus on students we recommend that you focus on the top motivators for the students through the top motivators for the students through marketing your food portions and quality. marketing your food portions and quality. The market would bear a slight increase in The market would bear a slight increase in food prices to compensate for potentially food prices to compensate for potentially lower liquor prices to generate new traffic.lower liquor prices to generate new traffic.
Recommendations:
Another recommendation is to do social Another recommendation is to do social marketing, and social incentives inorder to marketing, and social incentives inorder to play upon the fact that friends are the key play upon the fact that friends are the key motivators.motivators.
We recommend conducting more marketing We recommend conducting more marketing research to help better define the target research to help better define the target market of students 21 or older who are market of students 21 or older who are willing to go to La Jolla for a night out.willing to go to La Jolla for a night out.
Executive Summary:
SDSU has a a low demand for a bar and grill in la SDSU has a a low demand for a bar and grill in la jollajolla
They are willing to spend approx. $10-19 on food and They are willing to spend approx. $10-19 on food and 0-$9.99 on drinks.0-$9.99 on drinks.
The top motivator is friendsThe top motivator is friends
All though the sdsu students do like the attributes, All though the sdsu students do like the attributes, they may not be willing to travel that far they may not be willing to travel that far
Limitations:
1. 1. Some respondents may NOT have wanted to Some respondents may NOT have wanted to admit if they have an expense for alcoholic admit if they have an expense for alcoholic beverages, or go to bars if they were underage. beverages, or go to bars if they were underage. Subsequent studies would benefit from having 2 Subsequent studies would benefit from having 2 versions of the survey for each age group.versions of the survey for each age group.
2. When asked to rank items, many failed to 2. When asked to rank items, many failed to respond, did not fully respond, or incorrectly respond, did not fully respond, or incorrectly responded. For the sake of time or convenience responded. For the sake of time or convenience many respondents just circled their choices. many respondents just circled their choices. Subsequent studies could be worded clearer, or Subsequent studies could be worded clearer, or rather only ask to rank the top 3 choices.rather only ask to rank the top 3 choices.
Limitations:
3) Regarding Q #7- may be susceptible for 3) Regarding Q #7- may be susceptible for misinterpretation. Subsequent studies should be more misinterpretation. Subsequent studies should be more clear as to whether the individual expense for drinks is clear as to whether the individual expense for drinks is regarding drinks consumed or purchased.regarding drinks consumed or purchased.
4) In subsequent studies we would ask 4) In subsequent studies we would ask howhow they heard of they heard of Prospect. Prospect.
Thank You!
Any Questions?