Situation Analysis: The Chapters Lounge is a bar located in the Riverside Motor Inn. Chapters Lounge is a small and quaint bar, looking to expand their sales. The Riverside Motor Inn was built in 1975, has over 34 rooms and charges a rate of 55 dollars a night.
It is located in Bridgewater, Nova Scotia, with a population of 7,500 people. Chapters Lounges offers a variety of alcoholic beverages, ranging from beer to liquor and also offers food. The primary customers are people over the age of 19 and passing tourists. The competitive advantage for Chapter Lounge is that they are a smaller bar and more convenient for people staying in the Riverside Motor Inn, as they don’t have to leave. By having a smaller bar, it creates a quieter and relaxing experience that the other bars don’t offer, as they are a lot larger. They made 66,700 dollars in sales last year as said by Ronald Veinot, the General Manager. Chapters Lounge wants to expand their sales and try and make 100,000 dollars in the year 2000.
SWOT: The company’s strengths are location, quiet rooms and once renovations are done, it will be a more upscale place. The company’s weaknesses are their old bartender left, having renovations and manager lacks experience. The company’s opportunities are expanding in Bridgewater, Lunenburg County and attracting more tourists.
The company’s threats are Len’s Place, Chevy’s and Pirate’s Pub.Problem Analysis: Chapters Lounge has many problems to deal with, but they have a few that could help the company dramatically. The first problems is that the owners invested in a new front entrance and are doing major renovations to Chapters. By them having these renovations, Chapters Lounge will have to be closed for almost two months. Another problem is Chapters Lounge charges more money for drinks than their competitors during happy hour. They charge an extra 25 cents for beer and extra 50 cents for liquor more than their competitors.Alternatives and Criteria: There are many different alternatives you could go with to help the company succeed better, but there are a few that will help the company in the long run. First alternative would be to advertise more around Bridgewater and Lunenburg as they only attract 25% of Bridgewater and2.
5% of Lunenburg. The second alternative would be to attract customers by having theme nights, like cheaper drinks when the home hockey game is playing.Recommendation: As there are many different options, the best action alternative would be to increase advertising in Bridgewater and Lunenburg. Even though it will cost more to do this, in the long run the company will be gaining more and loyal customers that live in the community.Action Plan Steps and Contingency: The action plan steps would be to first hire an advertising team to come up with ideas, go through ideas and pick best ones and then finally start putting them into action.
In the end if this alternative doesn’t end up working you could hire a new advertising team and start from scratch or even start doing theme nights with special deals to attract new customers.