International University of Sarajevo

Marketing Plan
Karaoke Box Saraoke

Students: Professor:
Hanan Babić Dr. Emil Knezović
Juani Bin Nor Azam
Adna Nukić
Zerina Kosovac

23rd November 2022

Table of Contents

Executive Summary 2

New Market Offering in B&H 3

Problem and Solution 3

Marketing Situation Analysis 3

SWOT Analysis 3

Analysis of the micro and macro environment 4

Market Segmentation 12

Targeting 13

Differentiation 14

Positioning 16

Marketing Program 16

4 Ps/4 Cs 16

Action plan 21

Budget projections 23

Bibliography 24

2
Executive Summary
Saraoke is an exciting new business that provides karaoke entertainment

services for people to have a fun night out or celebrate special occasions. We have

created a comprehensive package that offers an array of karaoke options designed to

suit any taste and audience. On top of that, we take pride in offering foods and

beverages. We are committed to providing our customers with a unique and memorable

experience that they will cherish for a long time. With our competitive prices and top-

notch customer service, we are confident that Saraoke will be the premier choice for all

karaoke events.

New Market Offering in B&H

Karaoke Box Saraoke

Problem and Solution

Problem:
When it comes to the entertainment sector in Sarajevo, there is plenty of room to grow.
The city has only a handful of entertainment businesses where it mostly consists of
cinemas, bars, and clubs. Although having these options might seem enough for the
locals, it still brings a staggering inconvenience for the larger group of people which
consists of young adults, families and people who do not consume alcohol. At this point,
the only entertainment that caters to a bigger group of audiences would be the cinemas
and even then, it is still insufficient. In addition, the locals of Sarajevo tend to carry out
their activities collectively instead of individually which means they do things most of the
time with a group of people. This led us to focus on the entertainment industry where
we can concentrate our efforts on this segment of the market.
Solution:
After a long and thoughtful consideration based on what is observed in Sarajevo, we
have come to find that the best solution to this would be to open a Karaoke Box. The
locals in Sarajevo are very much into music with their evergreen “Ex-Yugo” songs and
their lovely “Kafanas” where locals would gather and sing their hearts out to every
single lyric. It can also be a great option for those who enjoy singing along but in a more
private setting where they can let their guards down and sing with their families or close
friends. It caters to a larger group of audience while maintaining a convenient
environment for all of them. Besides that, songs from other parts of the balkan region
also provide a variety of music options which could satisfy different groups of
audiences. Moreover, western music has paved its way throughout the whole world and
Sarajevo is no stranger to it. It is obvious as marketers, we all know bigger audiences
produce bigger profits.
3
 Marketing Situation Analysis
SWOT Analysis

Strengths Weaknesses

- Something new in the area/market - Relatively high start-up costs

- Private rooms - No parking facilities
- Can be enjoyed by everyone, no
matter the age or gender
- Offers people the opportunity to
rent the place for different
celebrations ranging from
birthdays to some special events
- Offers foods and drinks
- Can raise high revenues on
weekends as well as at night time

Opportunities Threats

- High chance of overshadowing - Some more traditional clubs that

already existing entertainment
places as karaoke box is
something new in the area that
people will be curious about and
will want to visit
- First place of this kind in the area,
meaning that there is no
competition and our company can
become a price leader, so even if
we do have a competitor at some
point, we would be the ones
setting the price (Low barriers to
entry)
- Organize some competitions
(singing tournaments) which can
help attract customers
- Collaborate with some well-known
food and beverage companies
liked by people in the area which
could be a good advertisement
and increase our sales
people are already loyal to and
visit frequently
- Poor economic conditions and a
lower purchasing power of
consumers (e.g. high inflation) may
discourage them from spending
money on such entertainment as
they have more important things to
spend money on
- People may find some cheaper
alternatives to having fun that
already exist in the area
- People will not be keen on coming
every day or every week

Analysis of the micro and macro environment

Microenvironment

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Company

The first mentions of karaoke are believed to have appeared in America in 1958

where MItch Miller was thinking about an entertainment TV programme where the public

could follow lyrics on screen.1 However, the birthplace of karaoke is considered to be

Japan and it was officially coined by Daisuke Inoue in 1971. 1 In the years following,

karaoke has gained in popularity and as usual, the business world interlaced with the

entertainment world which resulted in designated karaoke places opening up. These

special karaoke places are known as karaoke boxes or karaoke bars. Our company

being present in Sarajevo is a great opportunity for the locals and tourists to eat, drink,

socialize and create long lasting memories all in one place. There are many benefits

that the Karaoke Box brings to people, and they include: stress relief, improvement of

memory, emotion expression and an increase in self-confidence. 2 Bringing this type of

entertainment in Sarajevo would especially be of great use for the youth that is

generally more sensible and lacks confidence at their age.

Suppliers

Without good suppliers, none of the activities would have been able to become

reality. Karaoke Box is supplied with its various equipment by lightyear music.3 This

company provides our company with the highest quality karaoke systems, softwares,

machines, as well as individual equipment such as microphones, amplifiers and

speakers. User friendly website, clearly displayed prices, on time shipping and easy

1 “The Irresistible Growth of Private Karaoke Rooms.” The Irresistible Growth of Private Karaoke Rooms |
Blog, 25 June 2021, <https://business.karafun.com/resources-start-karaoke-business/1076-the-
irresistible-growth-of-private-karaoke-rooms.html> (23 November 2022)
2 Hotel, The Carlisle. “The Surprising Health Benefits of a Night out at Karaoke: Blog.” The Carlisle Hotel
& Distillery, 10 Sept. 2020, <https://thecarlislehotel.com.au/the-surprising-health-benefits-of-a-night-out-
at-karaoke/> (23 November 2022)

3 “Karaoke Systems Professional & Home Online.” Lightyear Music,

<https://lightyearmusic.com/collections/karaoke-systems> (23 November 2022)
5
contacting are what make it easy for Karaoke Box to have a good relationship with their

supplier lightyear music, which is of great importance for the company to be stable.

Marketing Intermediaries
Marketing Intermediaries are in charge of helping the company reach its

customers and make sales to them. Our marketing intermediary is going to be a local

company called Media Rahat.4 They are a digital marketing and creative agency that

works with businesses to help them advertise their products as well as services to

customers primarily through social media. The way they are going to help us advertise

Karaoke Box is by providing us with monthly plans regarding social media posts. The

reason we decided to go with a digital marketing company as our marketing

intermediary is because as newer generations are starting to get more interested in

music, a great way to inform them of the existence of our company is through social

media as it is commonly used by the target audience. Placing an ad on platforms such

as Instagram can lead to a wide reach within the wanted community. When it comes to

the price of the ad, 70$ per week could offer an estimated reach of 52000-140000

people.

Customer markets
The worldwide karaoke scene has flourished all throughout the globe, especially

making a significant presence in movies and media. However, in Bosnia, consumers do

not have access to such activities they see all over the media. As we know, it is human

nature for people to long for things that are unavailable to them. Therefore, Karaoke

Box would be a place where customers would be eager to go and try out.

Competitors

4 Media Rahat | Linkedin. <https://ba.linkedin.com/company/media-rahat> (23 November 2022)

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 As a company offering entertainment, there are a few main competitions that we

can recognize, and they include pubs and bars, clubs and cinemas.

One of the more popular bars in the heart of Sarajevo is the bar called Zlatna

Ribica.5 Despite the amazing interior that it is praised for, it seems like there is nothing

much more to it. According to the reviews of people on TripAdvisor, 6 the staff is rude

and drinks are not of good quality. What people complained about in the review section

is the overly smoked environment7 which is an apparent and repetitive problem most

other bars and pubs in Sarajevo have. What makes Karaoke box stand out is that it

offers separate private rooms and people can be comfortable in a smoke free room if

they choose to do so.

A well known club in Sarajevo is Cinemas Sloga.8 While it is frequently visited by

the youth and is almost always packed on the weekends, it seems like it is after all not a

perfect place to go out to. Nearly half of the TripAdvisor reviews seem to not shed a

positive light on Sloga.9 People mostly complain about the unpleasant stuff, poor drink

selection, outdated interior, bad music that is not varied and therefore does not suit

everyone’s taste, especially the taste of foreigners who do not understand Balkan folk

music which is mostly played.10 Some positive comments highlighted that they enjoyed

5 Currie, Bethany. “The 10 Best Bars in Sarajevo, Bosnia and Herzegovina.” Culture Trip, The Culture
Trip, 14 May 2020, <https://theculturetrip.com/bosnia-herzegovina/articles/the-10-best-bars-in-sarajevo/>
(23 November 2022)
6 “Zlatna Ribica (Sarajevo) - All You Need to Know before You Go.” Tripadvisor,
<https://www.tripadvisor.com/Attraction_Review-g294450-d1223297-Reviews-Zlatna_Ribica-
Sarajevo_Sarajevo_Canton_Federation_of_Bosnia_and_Herzegovina.html> (23 November 2022)
7 “Zlatna Ribica (Sarajevo) - All You Need to Know before You Go.” Tripadvisor,
<https://www.tripadvisor.com/Attraction_Review-g294450-d1223297-Reviews-Zlatna_Ribica-
Sarajevo_Sarajevo_Canton_Federation_of_Bosnia_and_Herzegovina.html> (23 November 2022)

8 Bedford, Sam. “The 11 Best Nightclubs in Sarajevo, Bosnia and Herzegovina.” Culture Trip, The
Culture Trip, 19 May 2020, <https://theculturetrip.com/bosnia-herzegovina/articles/the-11-best-nightclubs-
in-sarajevo-bosnia/>
(23 November 2022)
9 “Cinemas Sloga (Sarajevo) - All You Need to Know BEFORE You Go.” Tripadvisor,
<https://www.tripadvisor.com/Attraction_Review-g294450-d7714802-Reviews-Cinemas_Sloga-
Sarajevo_Sarajevo_Canton_Federation_of_Bosnia_and_Herzegovina.html> (23 November 2022)
10 “Cinemas Sloga (Sarajevo) - All You Need to Know BEFORE You Go.” Tripadvisor,
<https://www.tripadvisor.com/Attraction_Review-g294450-d7714802-Reviews-Cinemas_Sloga-
Sarajevo_Sarajevo_Canton_Federation_of_Bosnia_and_Herzegovina.html> (23 November 2022)
7
the overall atmosphere and fair prices of the drinks. Karaoke Box would outshine Sloga

in terms of music, staff friendliness, drink selection and interior and technology would be

kept up to date.

And finally, two of the most frequently visited cinemas by the youth in Sarajevo

are CineStar and Cineplexx. They keep up to date with the trending movies and offer a

variety of genres to suit different tastes and different age groups. Considering that,

customers are happy with the selection as everyone can find something that they will

enjoy watching. The problem of cinemas in general is that they do not offer the ability to

socialize with people. The snack and drink selection is not at an impressive level either

as only the basics are offered. Moreover, the food and the drinks are hugely overpriced

which pushes people away from purchasing as much as they might want to. Karaoke

Box would take a lead from the cinemas as it is a place where people could socialize

and where food and drinks would be sold at fair prices.

Publics
Publics are all groups that can have an impact on the company and its image. In

our case, the most important public players would be financial, media, general public

and internal. Starting with the internal publics, happiness and satisfaction of our

employees is our top priority because happy workers that are content with their

workplace are motivated to perform well and treat customers with good manners. In

order to maximize the satisfaction and productivity of our employees, we plan on

delivering special training and benefits and bonuses to the employees including six

hours free of charge karaoke, gifts for special occasions (e.g. their birthdays) and

employee hangouts. This brings us to the general public where good customer-

employee relationships will be of the utmost importance towards the company because

8
well-treated customers will spread positive comments about our company to other

potential customers. This will most definitely build our reputation and our public image.

In the training provided to the employees, we will make sure that they understand the

importance of treating the customers well. Moving on, on the financial segment, having

good relations with financial institutions is crucial because of the loans that will be

acquired and any other financial services we might need. We plan to make agreements

with UniCredit Bank as it has various locations in the center of Sarajevo, offers

everything we need, including loans and credit cards, and it also offers digital banking

services which we consider extremely convenient so that we can have an overview of

our finances at any time.11 Finally, we have the media. Media is an essential element

that helps spread the word about our company and reach potential customers. As the

most visited web portal in the area, 12 we consider Klix.ba to be the most important

media through which our company can make headlines and we will strive to give them

only positive things to write about us.

Macroenvironment

Geographic environment
With the population of 696,73113 Sarajevo is the most densely populated city in

Bosnia and Herzegovina. That is why Karaoke Box will be located in Sarajevo, as the

potential market is the biggest there and because tourists mostly visit the capital city.

11 UniCredit, <https://www.unicredit.ba/ba/poduzetnici.html#home> (23 November 2022)

12 “O Nama.” Klix.ba, <https://www.klix.ba/o-nama> (23 November 2022)
13 “Bosnia and Herzegovina Population (Live).” Worldometer, <https://www.worldometers.info/world-
population/bosnia-and-herzegovina-population/> (23 November 2022)
9
However, opening up only one location is also a limitation. That is because those

outside Sarajevo would either be infrequent visitors, or not visit at all, which may greatly

impact the number of visitors in the long run.

Demographic environment
The current population of Bosnia and Herzegovina is 3, 232, 906 with the most

populated city being Sarajevo at 696,731 people living in it. 14 When it comes to the male

to female ratio, it is relatively equal as seen in the graph attached below (Graph 1).

Based on the graph, we can conclude that our company will benefit both genders which

results in a bigger target market. Also seen in the graph is the age structure of our

population which suggests that middle-aged people should be taken into consideration

as they are a relatively big market.

Graph 1: Gender structure per age group15

14 “Bosnia and Herzegovina Population (Live).” Worldometer, <https://www.worldometers.info/world-

population/bosnia-and-herzegovina-population/> (23 November 2022)

15 “Population Pyramids of the World from 1950 to 2100.” PopulationPyramid.net,

<https://www.populationpyramid.net/bosnia-and-herzegovina/2019/> (23 November 2022)

10
Economic environment

When the economic environment of Bosnia and Herzegovina is in question, it can

be said that things are not at its optimum potential. There is a lack of competitiveness

and a lot of corruption. To try and fix that, the government launched a structural reforms

program.16 The goal of the program is to boost private investments and exports. What is

positive for our company is that the service sector makes up more than half of the

country’s GDP, where most of it comes from the restaurants. 17 That puts our company

in a good position as we offer both entertainment services and food.

Natural environment

While Karaoke Box will be operating and offering its services all year round, it is

expected that the highest revenues will be reaped during the winter months. The major

factors contributing to that are cold winters and highly polluted air. During this period of

the year, people tend to search for activities to do indoors. As such, Karaoke Box would

be a great option where people could go for fun without being exposed to any health

hazards.

Technological environment

As we all know, the technology today develops at a rapid speed. It is important

for our company to keep up to date with the new advancements in the karaoke

machinery, softwares, and new songs coming out so that people can experience our

services with the latest and most convenient quality.

16 “Internationalsupport.” Economic and Political Overview in Bosnia and Herzegovina,

<https://international.groupecreditagricole.com/en/international-support/bosnia-and-herzegovina/
economic-overview> (23 November 2022)
17 “Economy of Bosnia and Herzegovina.” Encyclopædia Britannica, Encyclopædia Britannica, Inc.,
<https://www.britannica.com/place/Bosnia-and-Herzegovina/Economy> (23 November 2022)

11
Political and Social environment

Political environment would involve business regulations, administrative

requirements and licensing. Adding on, our company would also have to abide by the

laws and regulations of running an entertainment business. Registering our company

legally will also be one of the requirements as it will contribute to the country’s taxes.

Besides that, our company must also take social environment into consideration by

running cause related marketing associating ourselves with work-well causes and

donating to charity. Our company will also be fully responsible in creating an eco-

friendly environment.

Cultural environment

Bosnia is rich with cultures and music is a huge part of it. A tradition that is

carried by a lot of locals is to listen and reminisce through old evergreen ex-yugo songs

which was an essential element that represents the authentic balkan days. Ex-yugo

songs are especially of great importance to older generations as it reminds them of the

old united country as a whole whose main mottos were peace, brotherhood and unity. 18

Adding on, they also have kafanas all over the country where people come and sing

their hearts out to traditional folk music19 in which our company offers a similar

alternative. It is of great importance that Karaoke Box includes these music genres in

our karaoke offering as well as we can then attract people that enjoy this type of music.

Market Segmentation

18 Magee, Tamlin. “'It Was Ridiculous. It Was Amazing': The Lost Pop of 80s Yugoslavia.” The Guardian,
Guardian News and Media, 12 Oct. 2021, <https://www.theguardian.com/music/2021/oct/12/it-was-
ridiculous-it-was-amazing-the-lost-pop-of-80s-yugoslavia> (23 November 2022)
19 “Traditional / Folk Music of Bosnia and Herzegovina.” Traditional / Folk Music of Bosnia and
Herzegovina - Information and Songs, <https://folkcloud.com/folk-music-by-country/bosnia-and-
herzegovina> (23 November 2022)

12
 In order to better understand the market, reap growth opportunities, achieve

higher sales and overall familiarize with what our focus should be put on, we must first

segment the market. For the purpose of our company, the best option is to segment the

market according to demographic factors and psychographic factors.

When the word is about demographic factors, we are taking age, gender, language and

income into consideration. As for the age we can segment the market into babies from

zero to two years old, small children from three up until eight years old, tweens from

eight to twelve years old, youth from thirteen to twenty one, adults above the age of

twenty one and older people from fifty years of age. For gender there is male and

female. Language is important because of the songs that we would offer and because

some clients may be incoming from different countries, so we have Bosnian language

and foreign language groups. As for the income, the spotlight is on the middle and

upper middle class.

Speaking about the psychographic factors, it is simply taking into consideration the

values and hobbies of people. As such we can classify people into a group that enjoys

any activities related to music and may have music as their hobby, and people that do

not put so much of their attention towards music.

Targeting

The targeting that will be used by our company is demographic targeting as its

targets are based on age, gender, ethnicity, race, income, economic status.20 The main

target group for Karaoke Box will be ages eight to twenty one years old, or, in other

words, tweens and youth. That is because they are the ones that are most in search of

entertainment places to have fun with their friends and family, whether that be some

20 Clevinger, Amanda. “What Is Targeting: Definition and Types.” Sales Glossary, 3 Aug. 2021,
<https://snov.io/glossary/targeting/> (23 November 2022)
13
celebration or just a casual night out. As for the younger ages from eight to around

fifteen, parents want a safe environment where their children can socialize and have

fun. That is why they may see this as a great place to have their birthday celebrations,

as the company not only guarantees karaoke fun, but also offers foods and drinks,

which are a must at children's birthday parties. This target group of younger populations

also includes students, people who work part-time and full-time that are constantly in

search of places to go out with their friends and take a quick break from all of the

deadlines and exams that they have going on, meaning that Karaoke Box would be of

great interest to them. On top of that, they are the age groups that value music greatly

and consider it a big part of their life.

Nevertheless, the company will cater for any generation that decides on Karaoke Box

as their source of entertainment. The reason behind not completely cutting older

generations out of the picture is that they might think of this as a fun way to get in touch

with their young spirit by having get-togethers with their old friends and singing songs

from back when they were teenagers. Considering that, the second target group for

Karaoke Box will be adults from twenty one to fifty years old.

When speaking of the gender, both male and female customers are more than

welcome. As for the language, the focus will not only be on native speakers, as a variety

of different songs will be offered, both in Bosnian language, as well as English

language. Regarding income, the main spotlight is on the middle and upper middle

class. Upper class is more than welcome as well, but will not be the primary focus as

they can afford some different types of entertainment that they might consider better

and more valuable.

Differentiation

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 Although Karaoke Box would be the first place of this kind in Sarajevo, some

differentiation is still needed in order to distract customers from regular bars and pubs,

cinemas and clubs and attract them to the Karaoke Box. Now, the question being raised

is what is it that makes Karaoke Box different and therefore makes it appealing to the

customers. To differentiate from potential competitors, Karaoke Box will use the

following forms of differentiation: low price, ethical stance and convenience.

The low price will be executed by providing some special promotions and having

special offers for the most loyal customers. One example would be to buy two drinks,

get one free, or rent a karaoke room ten times, the eleventh visit is free. This way more

people could be attracted and sales volume could increase. Regarding the ethical

stance, the company will align its values with ethics and create a safe, clean, friendly

environment both for the employees and for the customers. It will also strive to make

donations to charitable organizations and organizations supporting sustainable

development. This way, the company can gain trust from the customers, especially

those who have a strong ethical stance. They can become loyal to the company, and

may even be willing to pay higher prices when they agree with the company’s values.

When speaking about convenience, the company will make sure to make the whole

booking of the room process a lot easier for the customer. The way in which that will be

done is via a website where people can book the room for a specific date and time with

just a few clicks on their phones or laptops. There, customers would get all the

necessary pricing information and they would also be able to see on what dates and at

what times are the rooms already booked, so that they can plan ahead when they would

be able to pay a visit and unpleasant situations where the same room has been booked

by two different groups of people was booked for the same time can be avoided. By

having the chance to make online reservations, customers can save the time it would

take them to get to the place and make a reservation in person. This convenience of
15
being able to book the karaoke room online may even attract more customers that

would have not booked otherwise because they may not have the time during the day to

drive to the Karaoke Box just to make a reservation because we all know how busy and

stressful the dynamic of life, work, university, school is today.

Positioning

The way in which Karaoke Box will position itself in the market is as the only

karaoke place in Sarajevo offering high quality karaoke, home-like interior, a variety of

meals, a range of different alcoholic and non-alcoholic drinks suiting everyone’s tastes.

A friendly, judgment free atmosphere where people can enjoy their time is what makes

Karaoke Box even more distinct from some other entertainment places. All these

benefits coming at affordable prices are what make Karaoke Box stand out and occupy

a unique position in the market.

Marketing Program
4 Ps/4 Cs
Product/Customer solution

Offering entertainment service, karaoke box bar has the main purpose of serving

as a cheerful place where people can relax, hang out with their friends and family and

spend time in a fun way creating new memories. The reason why our product is an

amazing customer solution lies in the lack of entertainment facilities in Sarajevo that will

suit a large quantity of people. Saraoke is suitable for every generation, as it not only

offers a harmless way to have fun and create memories, but also maintains a

convenient environment for people as they can let their guards down and sing in a more

private setting. Apart from that, it is suitable for people coming from anywhere in the

world, as it will not only provide local music, but also a range of western music which is

well known by locals and tourists. The main offering of Saraoke are obviously karaoke
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rooms where people can sing while being surrounded exclusively with people they

choose to spend the outing with. Apart from the karaoke machines, Saraoke will be

offering a variety of drinks and foods. When it comes to the drinks, they will include both

alcoholic and non-alcoholic beverages, incorporating both hot and cold drinks. As for

the food, it will range from simple finger foods to concrete meals. The types of food that

will be provided include pastas, sandwiches, burgers, salads, meals with meat, vegan

and vegetarian meals, finger foods (such as fries and fried onions). Apart from concrete

foods, Saraoke will also sell various snacks and candies. This wide selection is so that it

can cater to various potential consumers and satisfy their tastes and needs. Saraoke

pools together everything that is generally known that people in Sarajevo like; music,

drinks, food and having an amazing time with friends and family. On top of that, the

karaoke box bar is sort of a breath of fresh air for locals in Sarajevo since there is no

place of this kind here, and it will especially be of great interest because they will want

to try something new.

Image 121: Image 2 22:

Reference example of a smaller room Reference example of a bigger room

Price/Cost to the Customer

21 Bart Karaoke Box Bistrot De La Gaité - Thefork. <https://www.thefork.com/restaurant/bart-karaoke-

box-bistrot-de-la-gaite-r737536> (23 November 2022)
22 Gleason, Will, et al. “10 Best Karaoke Bars NYC Has to Offer.” Time Out New York, Time Out, 17 Nov.
2021,< https://www.timeout.com/newyork/bars/best-karaoke-bars> (23 November 2022)
17
 Main pricing strategy that Saraoke will use is tiered pricing strategy. It is when

different prices are charged for different levels of services. 23 This way, a lower rate will

be charged for a basic package that includes just the karaoke machine and a higher

rate for a more comprehensive package that includes food and drinks. The cost to the

customer is far greater at some other entertainment places in Sarajevo than it would be

at the karaoke box bar. Price for just renting the basic room with the karaoke machine

will be 30 BAM per hour for the whole group, while the VIP room stands at 50 BAM per

hour. If drinks and food are needed, the basic room will be 35 BAM per hour, while the

VIP room will be 55 BAM per hour for the whole group. At first, the price for renting the

basic room with the karaoke machine of 30 BAM per hour for the whole group may

seem like a lot, but for a group of 5 for example, that is actually 6 BAM per person,

which is lower than the prices of movie tickets at Cineplexx that range from 7 BAM to

10.5 BAM24. Price of drinks will range from 1.50 BAM to 6 BAM, depending on the type

of the drink, and food will cost anywhere from 3 BAM to 12 BAM (depending on the type

of the meal). When talking strictly about prices, drinks and foods would actually be at a

more affordable price than at some other bars and restaurants. Taking espresso coffee

as an example, our price would be 1.50 BAM, and today, the price of the exact same

coffee ranges from 2.00 BAM to 3.00 BAM at places across Sarajevo. Apart from tiered

pricing strategy, karaoke box bar will also indulge in volume discounts. Volume

discounts are discounted prices for bulk purchases. 25 Karaoke box bar will set

discounts for extended stays. For example, they could offer a discounted rate for those

staying longer than 3 hours. Also, buying two drinks will result in getting one for free and

if one rents the karaoke room ten times, the eleventh visit is free. The benefits to the

23 Gustafson, Katie. “What Is Tiered Pricing and How Can You Use It?” Article, 20 July 2022,
<https://quickbooks.intuit.com/r/midsize-business/tiered-pricing/> (10 December 2022)
24 Cineplexx, <https://cineplexx.ba/info/price-list/1182> (10 December 2022)
25 Messenger, Leah. “Volume Discount Pricing: Benefits, Types & Real-World Examples.” Paddle, 25
May <2021, https://www.paddle.com/blog/volume-discount-pricing> (10 December 2022)
18
customer outweigh the costs they incur in terms of the entertainment and memories that

they get at fair prices.

Place/Convenience

As for the place, karaoke box bar will be located in Sarajevo, the capital of

Bosnia and Herzegovina. Being the biggest city with the largest number of population in

Bosnia and Herzegovina, Sarajevo can be considered as the largest potential market.

The karaoke box bar will be located in the center of Sarajevo, in the street Maršala

Tita.26 The main convenience of the Karaoke Box being located in the city center is that

it is easily accessible by many people and is of walking distance for those that might be

out in the city and suddenly get the idea to look for an entertainment place. Those living

a bit further from the city center tend to come to the city center to run errands or just for

entertainment purposes, so having to drive or take public transport will not be too big of

a hustle. Also, there are many public parking spaces in the city center which means that

the karaoke box will not have to provide parking facilities for its visitors. Karaoke Box

being located in Sarajevo is of great convenience to tourists as well. When visiting a

different country, tourists usually aim for the capital city, which in the case of Bosnia and

Herzegovina is Sarajevo, and they are usually staying in hotels or renting apartments

close to or in the city center. This means that tourists incoming to Sarajevo and looking

for a good entertainment place will find it very convenient that the karaoke box bar is

located in the very center as well. Karaoke box bar will have 12 separate rooms totaling

at 230 m².27 If the business takes off, karaoke box bar will strive to open up its doors at

other locations, primarily other bigger cities in Bosnia and Herzegovina such as Mostar,

Banja Luka and Tuzla. Another thing that makes karaoke box bar convenient for
26 “Business Premises, Rent, Sarajevo, Centar, 230,00 m², 5.750,00 Km.” Sant 719 Nekretnine,
<https://www.sant.ba/realestates/realestate-3831-sarajevo-centar-office-rent> (10 December 2022)
27 “Business Premises, Rent, Sarajevo, Centar, 230,00 m², 5.750,00 Km.” Sant 719 Nekretnine,
<https://www.sant.ba/realestates/realestate-3831-sarajevo-centar-office-rent> (10 December 2022)
19
customers is the ability to book the room for a specific date and time with just a few

clicks on their phones or laptops via the company's website. There, customers would

get all the necessary pricing information and they would also be able to see on what

dates and at what times are the rooms already booked, so that they can plan ahead

when they would be able to pay a visit and unpleasant situations where the same room

has been booked by two different groups of people was booked for the same time can

be avoided. By having the chance to make online reservations, customers can save the

time it would take them to get to the place and make a reservation in person.

Promotion/Communication

The main tool for promotion will be social media. Social media is a great way to

inform the target audience about the existence of our company as it is commonly used

by the youth. Using the monthly plans regarding social media posts, the company will

provide customers with needed information, as well as be able to capture their feedback

through different questionnaires. Through social media, customers can directly contact

us. On top of that, using paid ads that will pop up on the profiles of potential customers,

new people can be easily reached. Placing an ad on platforms such as Instagram can

lead to a wide reach within the wanted community. It is also easy for customers to

contact us directly via direct messages if they have any special requests or comments

to make and we can quickly respond to their requests and use that feedback information

in order to improve our performance as well as build a more profitable relationship with

the customers. Since the increase in popularity that TikTok has recorded, it will also be

used to promote our company by posting different videos highlighting the experiences of

previous customers. Apart from social media, karaoke box bar will also promote itself

through TV ads. That ensures coverage of some other generations as well. And finally,

to promote ourselves to tourists, small flyers will be left at hotels across the center of
20
Sarajevo. Through these ads and flyers in hotels, potential customers are provided with

the main information they need, including our location and what we offer. The first stage

of promotion would have the objective to familiarize people with the company and hype

them up for the opening. This would be done a month prior to opening. Here, we would

focus on social media pop up ads and giving out general information on what it is that

we offer. TV ads announcing the opening of the company would be enforced as well.

Objective of the second stage of promotion would be to further increase the interest in

our company by highlighting positive experiences of our visitors via videos on TikTok

and various posts across social media. The TV ads in this stage would be short, but

informative and would have the purpose to invite people to our place. The third stage of

the promotion has the objective of promoting special events (e.g. NewYear’s Eve) for

which celebrations will be organized at our company. Also, ads would be adjusted to fit

the festive Christmas/New Year’s Eve vibe and our offerings would be promoted all

across social media and TV ads.

Action plan

January 2023:
- Apply for necessary permits and licenses to open up the business
- Contact the agency for renting the place and secure the location where the
karaoke box bar will be located
- Contact food and drink suppliers as well as karaoke machine suppliers
February 2023:
- Purchase necessary equipment and furniture for the karaoke box bar
- Hire staff which will just be maintenance people and cooks/chefs since the
owners will work at the place in the beginning in order to save up some money
- Design and print promotional materials
- Contact TV channels and hotels that will promote our business
- Contact a celebrity that will be at our opening ceremony
March 2023:
- Establish an online presence via social media (Instagram, Facebook, TikTok)
- Start running the website where people can find additional information
- Begin advertising and promotion of the karaoke box bar
April 2023:
21
 - Open up the door of karaoke box bar
- Host a grand opening event with a local celebrity
- Monitor initial customer reactions and feedback in order to adjust operations as
needed in the future
May 2023:
- Identify and implement opportunities for the karaoke box bar to attract more
customers
- Evaluate the effectiveness of marketing and promotional strategies
- Explore potential partnerships
June 2023:
- Analyze customer feedback and adjust operations as needed
- Further develop a customer service program through social media
- Develop a system for tracking customer data so that returning customers can
make reservations easier in the future
July 2023:
- Establish a software system for tracking customer feedback so that it is
summarized, tabulated and represented easier
- Identify opportunities to increase revenue
August 2023:
- Review and if needed adjust pricing strategies
- Add consumer sales advertisements by organizing contests in which consumers
share their photos and videos on social media and tag our company showing
their experience. The 3 best, or, the most creative posts will win some special
deals
September 2023:
- Monitor customer feedback and adjust operations as needed
- Offer promotions for students in order to attract more potential consumers
- Hire staff to work at the front desk and bar instead of the owners working
October 2023:
- Analyze customer feedback and adjust operations as needed
- Organize a special halloween event where the most innovative costume wins two
hours in a VIP room for free
November 2023:
- Create a partnership with local snacks companies
- Use the snacks in our advertisements and have the snack company use
karaoke box bar in their advertisements
- Evaluate the effectiveness of marketing strategies and potentially add billboards
as another promotional strategy
- Plan special events for the upcoming holiday season
- Contact potential brand ambassadors
December 2023:
- Work on analysis of the overall performance through the year
- Advertise special events for the upcoming holiday season

22
 - Offer discounts for the first three people that make reservations for Christmas
and New Year’s Eve
- Intensive marketing investing more in ads and creating ads with brand
ambassadors
- Start doing market research and location search for a potential new location in a
different city

Budget projections
START-UP COSTS
Equipment
- Karaoke Machines28 66732 BAM (5561 BAM x 12)
- Music library29 2220 BAM (185 BAM x 12)
- Furniture
- Couches30 7800 BAM (650 BAM x 12)
- Tables31 2388 BAM (199 BAM x 12)

Rent 5750 BAM32

Licensing and legal fees 2000 BAM

Advertising 1000 BAM

Employee Salaries 2550 BAM (850 BAM x 3)

Food and drinks 2000 BAM

Utilities 500 BAM

Total start-up costs: 92940 BAM

ESTIMATED MONTHLY EXPENSES

Rent 5750 BAM

Utilities 500 BAM

Employee Salaries 2550 BAM (850 BAM x 3)

Food and drinks 2000 BAM

Advertising 400 BAM

28 “Karaoke Systems Professional & Home Online.” Lightyear Music,

<https://lightyearmusic.com/collections/karaoke-systems> (10 December 2022)
29 “Karaoke Systems Professional & Home Online.” Lightyear Music,
<https://lightyearmusic.com/collections/karaoke-songs> (10 December 2022)
30 JYSK, <https://jysk.ba/dnevna-soba/sofe> (10 December 2022)
31 JYSK, <https://jysk.ba/dnevna-soba/stolici> (10 December 2022)
32 “Business Premises, Rent, Sarajevo, Centar, 230,00 m², 5.750,00 Km.” Sant 719 Nekretnine,
<https://www.sant.ba/realestates/realestate-3831-sarajevo-centar-office-rent> (10 December 2022)
23
 Loan payment 777.78 BAM33

Maintenance 250 BAM

Total monthly expense: 12227.78 BAM

Bibliography

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33 By assuming we took out a 100000 BAM loan, and have to pay interest at 6% for 30 years
24
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