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• Statement of purpose: Creating exceptional value for all those whose lives we touch
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Turnover of USD 3.2 billion Growth at a CAGR of 25% Operation in 15 countries 13.4 million sq. Ft. Of retails space More than 31,000 employee
• • • • It’s capital of expatriates with only 20% (Dubai population 1.7 Mn) local residents The population is increasing 10,000 every month It’s strategic location makes it a popular destination among Asian, European & African residents for business and leisure purpose It’s one of the top 10 most visited city – with 7 Mn guests in 336 hotels (52 five star, 59 four star, 55 three star, 44 two star & 126 one star hotels) – with highest average room rate and average revenue per available room in the world i.e. very effluent visitors • As per local rules: – only non-Muslims of 21 & above can purchase alcohol from designated MMI & A&I retail shops – Liquor license is required to purchase alcohol – Can’t drive after drinking – All bars to be closed between 4pm-6pm
• Lounge is an area designated for waiting and relaxing (usually not for eating)in a hotel, apartment, theatre or airport etc. • A typical lounge bar would have – Seating arrangement: a comfortable usually sofa – Theme: bright and a formal look – Food: with limited service for snacks (very few 4-5) but serves all beverages including tea/coffee and alcoholic – Music: With instrumental or Jazz music having – No dance floor or live entertainment e.g. DJ or band • Lounge bar in a hotel is mostly used by the in-house guest (approximately 70%) for business client and official meetings •
It’s not a hangout casual place but more of an official classy place
• A lounge bar in a hotel with corporate and executive clients would cater higher revenue than a leisure based clientele • • • • • • Lounge bar has wine & beer clientele Lounge bar has almost 90% regular clients 6 .Lounge bar industry structure in Dubai • • All four & five star hotels have at least one lounge bar A lounge bar license would be easy and less stringent rules as compared to nightclubs etc.
NEOS at The Address • Lounge bar concept is not very clear and popular other than five star hotels 7 .5 years • It involves less capital investment than any of the nightclub. discotheque etc. operation & entertainment • We shall find very few typical lounge bars e.g.Typical revenue break up in a lounge bar • Lounge bar has a payback period of approximately 3-3. The Bar at Hyatt.
S = S E LE C T I E .Perceptual mapping of lounge bar B u si e ss stre n g th n Strong High M ar ke t a ttr a cti ve n e ss Medium I/G S H/D Weak S H/D H/D I/G Medium I/G Low S I G = I V E S T / G R O W . H / D = H A R V E S T / D I E S T / N V V 9 .
Porter’s Five Forces 10 .
rules & regulations • Bargaining power of Suppliers: high – Duopoly ( only two MMI and A& I) • Bargaining power of Customers: medium – Strict rules make tough to direct alcohol purchase – But illegal availability slams the onsite sale • Threat or development of substitutes – New hotels and bars with similar theme – There is no price of switchover • Rivalry among the existing bars – Established bar has created its own clientele – 11 . • Barriers to Entry – Licensing.Contd.
Nelson’s bar at Media Rotana in Al Barsha • • 12 .
NEOS . The address 13 .
Crystal bar at Grand millennium. Dubai 14 .
Buddha bar 15 .
Bar 360 at Jumeirah beach hotel 16 .
Barasti bar at Le Meridien Mina Seyahi. behind Dubai Media City 17 .
Price comparison in bars of Dubai N am e of bar 360 degrees 1897 bar Apres Bar Bar 44 Barasti bar Boston bar Budha bar The Agency bar The Agency bar The Apartment bar The Balcony bar The Bar Hyatt regency The Bar Marriot Dubai Neos Sapphire B E E R P R IC E ( A E D ) Regular 40 36 33-38 36-40 32-34 30 36 36-42 35 40-46 33 35 36 45 31 Happy Hours NA 20% Discount (Till 7 pm) NA NA AED 22 (5 TO 7 pm) AED 20 (12 TO 8 pm) NA NA NA NA NA NA NA NA AED 20 till 8 PM H e in e k e n P rice ( AED ) 40 36 33 38 32 30 36 W h isk e y P rice ( AED ) 45 42 32-55 44 40 32 44 44-125 35 40 33 35 36 45 31 46 42 32-60 40 60 36 18 .
Italy 19 .World famous lounge bars FELIX Club. Berlin.
New Delhi 20 .Tapas lounge bar: Hotel Siddharth. Jaypee group.
Cervantes Hotel. Paris • • • • • • • Persian design Serves breakfast in the morning from 7-10 am 21 .
Carpe Diem Lounge Club and Restaurant. Barcelona 22 .
Munich 23 .Neva.
00 and 19.00 to 23.00 to 15.00 Prices: Main course 32 Euros Cuisine: Italian 24 .La Caravella. Venice Hours: daily 12.
Moro. London (Spanish & Portugal feel) 25 .
Amsterdam graffiti theme 26 .Fifteen.
Customers’ choice: data collection • • Sampling method: Convenient sample Survey spots :3 – E-max at Oasis mall – Home Centre at MOE – Centre Point at Mirdiff mall • • • • • • Survey form Sample size: 74 samples Nationalities: 25 27 .
Survey results • The sample contains 25 nationality origins • The highest % of Asians 33% • Followed by 22% of GCC nationalities and 18 % Europeans • With 12% Africans and rest other part of the world 28 .
gender. marital status & annual income 29 .Age group.
Resident or not? Have they ever visited a lounge bar? • • • • Our sample had 86% of UAE residents With very little of 14% only were tourists Sample contains 68% respondents those have visited a lounge bar at least once • 32% said they had not visited a lounge bar or they had no idea of that • 30 .
Preferred bar choice of the respondents 31 .
Preferred bar drink & starters of the respondents 32 .
Bar preference of nationalities 33 .
Beverages preference of nationalities 34 .
Quality of crowd choice at different bars • If we see the trend of preference the quality of crowd is of utmost important in case of lounge bar Shishabar the customer may come in small group or individual for particular test so at second preference In case English bar it seems as if of low importance as compared to other places 35 • • • .
Importance of theme w. bar choices • As per our survey respondents English bar lovers has the highest importance out of all the bars For lounge bars slightly lesser % has as their first choice as theme but the equal % has as the 2nd choice For nightclub also theme is quite important For small no of shisha bar respondents its prima importance 36 • • • .r.t.
soothing and specific choice 37 of music • • • .Music lovers preference distribution • For night club lovers music as their first is highest of all the bars first choice Not only as their first choice but if we see the top 3 choice combined its significantly high Lounge bar music is very important for the first choice music lovers Particularly may be due to slow.
music & ambience The franchise concept is not very popular but can be thought as the preferred location would be inside a five star hotel Preferred choice is nightclub/disc in Dubai so a fusion theme might be a good idea – as the place is dominated by Asians in numbers and they are not a very good target for lounge bar • • • • Of course the business is profitable and with the growth of Dubai its going to grow Now we need to make & discuss the business plan elaborately in terms of financial aspect/theme or concept development/location/ and marketing etc 38 .Findings and Recommendation • • • • The lounge bar business is premium business It is basically driven by its distinguished theme.
Learning out come & difficulties • • • • • Understood the industry structure Entrepreneurship in Dubai : investment. rules and regulation approvals Learned the basic uses of SPSS software We were facing difficulties in collecting information about business in UAE Difficulty in conducting the first hand data: survey – – It’s not allowed in Dubai/UAE The alcohol being taboo to the locals 39 .
Thank you 40 .
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