Research Proposal on "Club Promoters"

Research Proposal 12 pages (3720 words) Sources: 5

[EXCERPT] . . . .

Club Promoters - Strategic Keys to Success

Given the forces of globalization and market liberalization, combined with the continually increasing demands of all categories of stakeholders (e.g. customers, employees, business partners, governmental and non-governmental institutions), and the developments in terms of technology, it was only natural for the competition within the business community to significantly intensify. Today's organizations strive to achieve points of difference which will offer them a better perception within the market, but achieving this differentiation becomes ever so difficult. What is then left is striving to offer the highest quality of the sold merchandize. But what if the organization does not sell material items, but services? Their competitive strategy would revolve around attracting as many customers as possible and delivering high quality services, with the aid of skilled and obliging staff members.

An interesting example in this direction is given by the clubbing industry. However clubs do sell material products, such as sodas, coffee or alcohol-based beverages, they primarily function due to the services they offer. In this instance then, clubs sell the possibility to have a good time, to hang out with friends, to listen and dance to some good music or even to view a concert. Clubs also help individuals make a fashion statement and offer their target market a sense of belonging. To explain the sense of belonging, take the example of 25-year-old attorney. At work, she has to be professional; at home, she has to be responsible; but at night, she may go the club and hang out with the people she wants, those with whom she shares common interests outside work or domestic chores.

A general look at the clubbing industry points out its increases over the past years (Malbon, 1999). In order to cope with the intensified competition, club owners implement a wide series of strategic approaches. One of them is that of hiring outside consultancy. This mostly refers to club promoters, specialized individuals, who will help organize and promote the club or an event occurring within the club. The club promoter is paid on percentage based on the success registered by a clubbing event. It can come to a commission of $1,000 a night, making this profession one of the highest paid ones. The interest of the economist can easily be raised by this profession and he could wonder as to the strategies implemented by the club promoter to achieve success. The following pages will try to answer this question, mostly in terms of marketing strategies and negotiation with the club management.

2. About Club Promoters

As it has been pointed out in the introductory part, the emergence of club promoters has been due to an increased competition within the industry. Aside this however, it was also due to several social changes. These mostly refer to individual and group preferences in spending leisure time. "What to do on a Saturday night is now a complex question. The proliferation of new club nights and dance music genres has blown this area of the nightlife industry wide open" (Kent, 2002).

Club promoters come to answer this question and their purpose is to attract new customers and generate loyalty from the already existent customer palette. "Club promoters organize shows, book bands, venues and look after publicity, often designing, printing and distributing flyers. They don't always make a lot of money from club gigs, as they are often put on to promote a new record" (Brophy).

The position of club promoters is generally assumed by young adults, most of whom are males. Women find it extremely challenging to succeed in the nightlife industry, generally as they are discriminated against. "Female DJs and promoters face discrimination and an uphill battle for recognition and respect from their male colleagues" (Hutton, 2006). Women however feel that they can do a better job that their male counterparts as they work harder and they have to make increased efforts to prove their worth. Also, as Fiona Hutton points out, women customers of clubs support the woman DJ or promoter and this further helps in creating a more pleasant environment and developing more fruitful relations with the clients.

However the gender issue within the nighttime entertainment industry is an interesting one and deserves further research, this paper will focus on the club promoter as a unisex individual and will address the general skills and strategies of a club promoter, regardless of gender. There are six compulsory requirements for a promoter to succeed: they have to proactive, outgoing and manifest a strong desire to make money from partying; they must learn people's names; they must treat all guests and VIPs, and they must hire a photographer (Squidoo, 2008).

3. Marketing Strategies of Club Promoters

The most important thing for club promoters is their ability to create a pleasant environment, in which the individuals feel at ease. This environment will offer a sense of belonging, which is beneficial from two standpoints. First of all, it ensures the return of the old customers and the consolidation of a loyal customer base. Then, through word of mouth, other individuals will hear of the atmosphere created in a club and will desire to become part of it. But the sense of belonging is not sufficient to continually attracting new and old customers. They have to be shown a good time in order to return. For some individuals then, the club is their way of making a statement; it is their way of standing out from their ordinary lives. Ultimately then, the job of the club promoter is to create a desirable environment, offer a sense of belonging, show a good time and allow the opportunity for individuals to make a statement. All these have the final purpose of attracting customers and consequently increasing the profits of the club, and are generally achieved through a concomitant implementation of various marketing strategies. The most relevant of these marketing approaches are discussed below:

Promotional Strategies

Just like in the common understanding of the theoretical concept, promotional strategies within the nightlife industry refer to the offering of several deals to consumers. But as the economics books teach us, there is no perfect theoretical recipe and each entrepreneur has to adapt his knowledge to the particularities of a given industry or situation. Successful club promoters have understood this and have customized the scholarly suggestions to the requirements of the field in which they operate.

Club promoters implement numerous promotional strategies to attract customers. Simon Kent (2002) for instance points out that they even "produce their own merchandise to go with the club, such as clothing and compilation records of music." By doing this, they create a sense of unity and a better integration within the clubbing community. Also, these items can easily be perceived as fashionable and can on their own attract clients. Say for instance that an individual who has been spending his Saturday nights at club a finds out that club B. is making customized T-shirts, with a picture of the customer. The picture to be used has however to be taken inside the club. The retail price of such a T-shirt would be modicum, but it would present an advantage - whilst the front of the T-shirt will have the picture of the customer inside the club, the back side will contain an advertisement for the club. It could state its logo and its contact information. Presented with such a situation, it is highly likely that the individual will switch to club B. In the detriment of club a. This marketing strategy is extremely powerful for overcoming competition.

Another promotional strategy used by club promoters, with the support of the club management, is that of offering the customer price discounts. Such a strategy is multifaceted and has to be adapted to the unique requirements of each club and each situation. An example of discounts to new customers is that of offering the third round of beverages on the house or the offering of fifth complementary bear after the purchase of the first four. In terms of loyal customers, club promoters implement a different approach, most commonly materialized in the offering of a complementary bottle of the customer's favorite beverage.

Future benefits

The next strategy used by club promoters to attract customers is an extremely interesting one. Customers are not offered any benefits on the spot, but the promise of future advantages. For instance, at the end of the night, when the customer receives the bill for the consumed beverages, he could also be given a discount coupon of 10% of his bill. He would only be able to use this the next time he returns to the club, say club C. Therefore, the following week, the individual has to choose the club to go to. Considering that he has had a good time the previous week at club C, and he also has a financial advantage of once again going there, it is likely for him to choose the respective club again. This strategy is useful not… READ MORE

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