1.0 Introduction
The Australian night club industry has undergone numerous changes over the past few years. This is as a result of both internal and external factors that have put a strain on the overall performance of the industry. In Australia, nightclub-patronage has decreased substantially. Consequently, there is need to examine the reasons behind this decrease and determine some of the possible solutions to this challenge.
In the past, the night club industry recorded a higher market share than it does today. This was because there were less stringent laws on the issue of underage drinking. Besides that, other leisure alternatives at night were not that numerous. Besides this, regulation of alcoholic beverages was not intense. These and many more reasons caused high profit margins within the industry. However, the same factors do not apply today and night club owners have to look for creative ways of surviving in this cut-throat industry. (Rutman, 2004)
2.0 Situational analysis
Internal factors
The overall sales in the night club industry have dropped substantially from previous recordings. Companies are now trying to out compete one another in order to make the most of their limited client base. However, these negative sentiments simply refer to performance between bars. In terms of overall market share of the leisure industry, the nightclub industry boasts of reasonable sales compared to other industries. For instance, in the year 2006, Australian night clubs earned a revenue of seven billion dollars.(Barlon, 2006)
It should be noted that the night club industry has a high degree of fragmentation. Consequently, different night clubs have different opportunities to increase their own market share. (Graydon, 2003) Statistics show that some of the well known names in the industry only take up seven percent of the market share while the rest are accommodated by smaller players. Consequently, the issue of domination within this industry is not as common as it is in others. In terms of positioning, different clubs have different levels of importance depending on the type of service they offer. Since types of clients reporting to these night clubs vary; some may be tourists, some may be youngsters, others may be the working class etc, then night clubs accommodate different patrons depending on the nature of their client base. Consequently, no single company can boast of superior positioning in comparison to others.
Promotional strategies within the night club industry vary widely with the nature of the club. However, there are some common tactics. Promotions normally come in form of advertisements on media outlets. Most night clubs are fond of utilising the radio. Normally, a radio ad contains information about the unique services found in that respective club and where it is located etc. Promotions are also conducted through endorsements from well know artists or DJs. The DJs are usually hired to instil loyalty in certain client bases. Performing artists are usually invited to perform in those respective clubs. In this industry, external communication is done through a variety of media outlets. For instance, many night clubs have created their own websites or listed their services in Australian search engines. Consequently, clients may easily access them through this channel. Besides this, the night clubs also advertise themselves through fashion or celebrity magazines and newspapers. (Rossi, 2003). aidim.