The bar and club industry are rapidly growing in Indonesia and it is one of the well-known businesses in the market. This industry is earning good profits for the overall markets. It is attaining a good part of the stock market. The bar and club industry are usually known as the café and bars in the Indonesian context due to its cultural perspectives. These bars and clubs are also known as the pub bars according to the various concepts of Indonesia. The bar and clubs industry of Indonesia is extremely diverse that is consisting of the high-end bars and clubs which are engaged in serving the local and international customers. The business of the High end is linked with Surabaya, Bali, Medan, and Jakarta. It also includes several other rapidly growing urban areas. The bars and clubs are the specialties of the Western and several other non-Indonesians who are the dominant users of the imported drinks and well-refined services (Ec Europa Eu, 2019). 

Furthermore, the nightlife in Indonesia has popular among the tourist who visits the country, as well as the working class society. In these modern days, there are a huge variety of bars and clubs in the country which present different themes to attract the customers. The typical nightlife in Indonesia nowadays has known to be extremely metropolitan and cosmopolitan in nature, which mainly described with a number of clubs, bars, or lounges emerge in Indonesia. Each bar in Indonesia is derived with its own specific classification. Some bars there designed to facilitate parties for the society, meanwhile, some other bars in the country prefer to serve the young crowd and tourists. This type of nightlife is quite expensive, especially if the bars are located in the metropolitan and cosmopolitan cities. Some bars located in these strategic areas will charge 100,000 IDR to 300,000 IDR for entry access. Besides this, alcohol has been known to be an expensive thing in Indonesia due to its high tax(Holidify.com, 2019).

Market size and growth of the Bar and club industry

            The bars or clubs industry in the Indonesian market has reported a huge expansion, along with the fact that the Indonesian Government has been supporting big in the context of Foreign Direct Investment or FDI. For this reason, there are more refugees coming to Indonesia for the past few years, and definitely bring along their culture of drinking and clubbing, especially in the metropolitan or cosmopolitan cities. This act of big support in FDI performed by the Government of Indonesia is claimed to be the presentation of how the country takes part in the globalization. As we have acknowledged, the modern society never wanted to be left behind with the trend that appears in the globalization. Likewise, the youth and modern society in Indonesia also have the same concern which makes them adjust the trend of lifestyle proceeding this globalization as well. This cause has benefited both the businesses and the country itself with getting more revenue delivered from the bars industry.

In Indonesia, the bars and clubs are also referred to as several cafes, pubs, night clubs, dancing bars, and clubs. The smoothie bars are also part of it. In Indonesia, the clubs, bars, and the entertainment markets increased at the Compound Annual Growth Rate (CAGR) of 9.4% according to sales of 2010 to 2014 and in 2014, these values are reached $3.6 billion.  These values are expected to keep increasing in the sales value at CAGR of 9.7% from 2015 to 2019. In 2010-2014 the volume of the outlet grew at the CAGR of 5% and it was expected to increase according to this same rate from 2015 to 2019. In Indonesia, the bars and clubs market is increased at CAGR of 5.5% in that same period and it was forecasted for its growth at the same rate from 2015 to 2019.

In the sales value of 2014 of the bear market of Indonesia, the pubs and clubs are becoming dominate. The pub/bars are increasing rapidly in the bar and clubs industry of Indonesia as compared to previous history and data of the growth of the bar industry in Indonesia. In this sector, the sales values are accounted for 78% of the total retail sales values in the sectors of the Indonesian café/bars in 2014. In the pub and bar channel, this can result from the target customer choices as well as cost per transaction. The affluent consumers are targeted mainly by the bars and clubs industry. It also targeted the person with the higher income.  The beverages that are usually sold in the bars and clubs are imported alcoholic drinks and beers. These are sold at high prices. These statics represents that the market size of the bars and clubs is relatively small, but it is earning good profits.  It has good ranges in the sale value of the products as well as their services (Apps.fas.usda.gov, 2019).

The percentages of the Breakdown Based on Retail Value Sales for the Bars/ Pubs are given for 2013 to 2019. It represents the breakdown structure is gradually decreased with the respective times. Such as; in 2013 the breakdown structure is 78.4% and in 2014 it was 77%. In 2019 it becomes 75.5%, respectively. If the statics of the outlets and the transactions for the Indonesia entertainment subsectors in 2014 is; In 2014 outlets for the bars and clubs are 4,310, the transactions are 257.8 million dollars. It generates average sales of $843,364.27 per outlet. The average sales per transaction are $14.10. In 2019 the number of outlets is 5,514 and these are generating 337.7 million transactions that are earning average sales $ 1,043,888.28 per outlet.  The average sales per transaction $ are 17.04 (Agr Gc ca, 2016).

The above-given graph is also representing the growth trends for the Bars and clubs in Indonesia for the last five years from 2013- 2018.  In the above-given statics, the growth trend for the bars and clubs in the last five years is explained in explanative manners. These statics are conducted to measure the viability of the Fine bar in the Indonesian market. This rapid growth trend provides significant pieces of evidence for the growth and efficient performance of the fine bars.

These statics shows that the fine bars will be proved as a successful business in the Indonesian market because there is a lack of bars and clubs in the Indonesian markets. These statics portrays that there is rapid growth for the bar and club business in Indonesia. Indonesia is a favorable place for starting the business of the Fine bar, and it can generate good business and profits in its particular markets. The markets of Indonesia will provide fruitful sources for the productivity and performance of the Fine bar.  It will provide new and innovative ways for this business.

Nature of the business and key markets

Clubs and bars are referred to as the local places for gathering at where the customers can easily take and drink the alcoholic and nonalcoholic drinks and eat the bar foods. The clubs and bars are also considered as places that could have a relationship with certain vendors for market or in order to increase the particular brand awareness. These are also known as the casual environments that is consist of the tables and stools of the bars and it provides the means of all kinds of entertainment like dancing, music, and comedy shows. There are several markets in the bar and club industry of Indonesia; it includes biker bars, college bars, alternate bars, singles bars, and family bars. The particulars kinds of the market in this industry offered to increase them in order to draw certain audiences.  The target market for the bar and clubs industry is mostly youngsters with high incomes. The target market of the wine bars is the individuals who like upscale wines. Martini bars are targeting the penchant for martinis.

Marketing strategy
Market segmentation

There are three major market segments that will be appealed by the Fine bar.  There are some rooms of the estimates that are allowed by the market segmentation scheme of the Fine bars, and these are also used to estimating the non-particular definitions (Michel Wedel, 2012). These three market segments are;

Childless young professional: The fine bar will appeal to the single adults as well as young couples due to its Cinemark and proximity for the IMAX (Image Maximum).Actually, IMAX is the world's largest cinema. In this paper, it’s discussed in the context of entertainment. Since the Fine bar would be near to IMAX, it would attract the people coming from IMAX after watching the movie. It can be the couple or group of friends who have planned to spend some precious time with each other.

College students: the fine bar has created an environment that will attract the college’s students as it has a bouncing dance floor and aquarium that will be one of the most important eye-catching points for college students. Fine bars also secure the natural progression among the young professionals and students of the high schools.

Business travel and tourism: Tourist and the business traveler’s market will be the chief guest of the fine bar. Because more and tourists, travelers and businesses are seeking for Waldport every year.  The Fine bar will plan to get access to these people by using direct marketing for the patrons of the local hotel.

Target market of  Bar and Club in Indonesia

The area of our business will be Pondok Indah, Ancol, Blok M, and ManggaDua and the age group that can be attracted to our business will be college, university student’s and business people also example age group will be 16years to 33years. The monthly income of those will be ranging from IDR 4940105.75 to IDR 9880211.50 per month. Spending on the club will be a maximum of IDR 1976042.30 per month.

For the fine bars, the target markets cut across the people of the various classes particularly according to their age and income level. It also includes the tourists who are locally from Indonesia and who came from across the Indonesian borders. The people from all walks of life are major target markets of the Fine bar. The fine bar has already conducted its market survey as well as a feasibility study. In this market survey, it has observed those points which are expected by the Fine bar will be patronized by these points. These became the target market and loyal customers of the Fine bar. The below-given list of the tragedy markets is representing the numbers of the customers of the Fine Bar in Indonesia. It represents that it will attain a good profit (Weinstein, 2013).

·         Tourists

·         Corporate Executives

·         College Students

·         Business People

·         Government Officials

·         People in the entertainment industry

·         Sports Men and Women

·         People in the entertainment industry

Products/ Services

The fine bar is going to perform as the standard club and bar and it focusing on the quality services and products for their potential customers. In the Fine bar, every activity will get available related to the entertainment of the clients. It includes all kinds of products and services that are the parts of international bars and clubs. The fine bar is performing in the sector is the bars and club in order to favorably compete with the leaders of the industry. Despite the dance and music the Fine bar will ensure that it will go long for the assorted drinks that are available in the market. Fe of the services and products that will be the parts of the Fine bars are given below.

• Tobacco
• Liquor
• Wines
• Small Chops
• Distilled spirits
• Martinis
• Standup Comedy
• Dance and music
• Services for parties and hall rental
• It includes all kinds of the beers as; Bud Light Platinum Lager, Redds Apple Ale, Bud Light, Pabst Blue Ribbon, Natural Light, Michelob Ultra, Budweiser and Coors Light
• The locally crafted bears are also one of the most important products of the fine beers, and it includes brands; Cider, Pale Beers, Dark Beers, Organic Brews, Hebrew Beers and Gluten-Free

Prices of  Bar and Club in Indonesia

The prices of the products are depended upon the products and quality of the services, but the Fine bars will provide the products of all prices that would be starting from the $ 5 to $100. The various pricing strategies will be used in this business that would be also part of the promotional strategies. The membership card will also issue to the regular customers there would be a balancing system in this membership card, such as in $500 the customer can visit the Fine bar 4 times in a month and avail the particular premium services by using the international brands of the Fine bars.

Promotion of  Bar and Club in Indonesia

For promotional strategies, Fine bars will use all kinds of new and innovative promotional strategies. The USP's unique selling point of the Fine bar is that it has the collection of all brands of the beers that are producing locally and internationally. Tobacco products in different flavors and assorted drinks are also parts of the Fine bars. In order to ensure that a Fine bar not only attracting the customers but also generating the profit for them, it adopts the various strategies (Venkatesh Shankar, 2012).

To welcome the direct potential customers, it will position it in greeters.(Greeters are volunteers who welcome tourists in their city or region, and show them around for free as they would do with friends or family. It is a form of social tourism; the residents participate in the activities of the tourists, and tourists get to see the local life of the place visited.) It means the greeters would be target customers or potential customers of Fine bar.

It will use attractive handbills in order to create awareness as well as for providing the directions of the Fine bars.

Plan of traditional guerrilla marketing tactics

Due to the rapid growth of technology the digital markets have become one of the most important sources in introducing the business, products, and services. Fine bars will use various innovative strategies by using various social networking sites in order to market their business in the Indonesian markets. It will use direct advertisements on Facebook, Twitter, and Instagram(Akhtar, 2016). Then it will take the leads of the business professional and then text the messages that will be sent to the target market for introducing its business tactics. The pages of the colleges' groups will also follow and like the Fine bars (Snedeker, 2018).

Selling of product or services

The Fine bar will encourage their customers to buy their products by providing various services such as standup comedy, live band, music and various kinds of edible products in snakes. Moreover, the bouncing dance floor and aquarium is the one most important eye-catching service for its potential buyers. It will attract its customers by its servicescape.  The Fine bar will sell its products by targeting the buying cycles of the market. In order to improve the buying cycles of the customers, it will conduct the feedback from the customers.

Operations Plan of  Bar and Club in Indonesia
Management Team of  Bar and Club in Indonesia

 In the Fine Bar, the management team will have a critical role in managing functions and following are the members that this team will include:

CEO: CEO or Chief Executive Officer will be the head of every other employee. The CEO will also be accountable for all operations in the Fine Bar and will also determine the long and short-term objectives. All the plans and strategies will be delivered to the CEO for approval and it will be determined whether they are sustainable to be pursued or not. The skills of the CEO will involve strategic thinking and the capability of rising above the normal details and deciding where the Fine Bar will be heading. The CEO will also play an important role in hiring workers.

COO: COO or Chief Operating Officer will be responsible for managing the operational details of Fine Bar. The COO will also ensure that the Fine Bar will be delivering its services properly to customers. The COO will be responsible for determining if the processes of Fine Bar are meeting the expectations or not.

President: The main role of the president will be concerned with filling the gaps which are left by the CEO and CFO. The planning board will also include the president and his/her advice would play a critical role in determining the direction of a decision.

CFO: The CFO or Chief Financial Officer will be responsible for handling the money. In addition to it, the CFO will be creating financial strategies and budgets and will be figuring out if it is better for the Fine Bar to head in a specific direction or not. The role of CFO will also be important because he/she will keep the Fine Bar financially stable.

CMO: In the Fine Bar, CMO or Chief Marketing Officer will ensure which strategies should be implemented for ensuring marketing effectiveness. The CMO will also be responsible for analyzing the sales strategy and implementing it successfully (Ahammad, 2017).

Human Resources Plan of  Bar and Club in Indonesia

            Human resource management and planning will be carried out by the Department of Human Resource. In this department, the head of all operations and functions will be the Human Resource Manager. He will be responsible for creating the strategies and determining the human resource requirements of the Fine Bar. In addition to understanding these needs, the human resource manager will also create strategies and standards according to which talents will be hired in the bar. For example, he will choose the methods for screening and hiring the workers. It can be through interviews, and it can also be through online searching about the eligible candidates. All of these strategies and plans will be included in human resource planning.

 Other than just planning the human resource, major responsibility for the human resource manager will be to manage people in the Fine Bar, and ensuring that they are performing according to the expectations. It will also be the task of the human resource manager to ensure that there is an innovative culture established within the Fine Bar (Bamberger, Biron, & Meshoulam, 2014).

Core competitiveness of  Bar and Club in Indonesia

Core competitiveness result in advantages of the business has played important role in higher amount of profitability A Fine Bar will focus get maximum customers in the market through satisfying the entertainment needs of the customers. However, for core competitiveness A Fine Bar will be differentiated based on the additional features like DJs in nightclubs, large aquarium, bouncing dance floor generous offering of live music, relaxed house music and infused cocktails.

Uniqueness of  Bar and Club in Indonesia

The business’s unique ambiance and decor of the Bar will allow the bar to differentiate itself from the rest of the competitors. Fine Bar will establish a “friendly and professional” culture which will be represented by the customer services and behaviors performed by all of the staff.

Compete in market

·         Need to set competitive price

·         Product enhancements

·         Improved distribution

·         Audience need to be better analyzed

·         Industry magazines and blogs

·         Quality website designs

Risks in project of  Bar and Club in Indonesia

·         Wrong budgets

·         Trusting a key employee

·         Lack of funds

·         Debt increases

·         Short term vision

·         Relying on cash flow

·         Food waste

·         Excessive labor

·         Overpriced necessities

SWOT Analysis of  Bar and Club in Indonesia

Swot analysis of Fine Bar of  Bar and Club in Indonesia

When opening a bar, it is important to weigh out all the options. Opening a bar or nightclub is a risky business because it can either be really successful or it could flop at any moment. Making sure that the bar or night club is unique is an important factor. You also have to make sure that you are on your Ps and Qs. Liability risks are high when owning such and establishment. Keeping up with the times is important because times are constantly changing and evolving. Keeping track of your profits and liquor sales is key because that is where half of your profit comes from. Over pouring can be detrimental to your business. This is why hiring professional bartenders or mycologist is always a good idea.

Strength of  Bar and Club in Indonesia

There are various strengths of the Fine bar that can be the positive points of the Fine bar. The profit margin is higher than its expectations for the Fine bar. The Liquor sales must be continued in order to grow that the spending of the consumers must be among the 10 and 50 dollars when they are going out of the Fine bras. The location of the Fine bars is one of the most important strengths of the Fine bar because it is located on the very attractive location of Jakarta near to the shore of the ocean. It is a very presentable location, even the people who came with the aiming to enjoying the sea sites will be inspired by the services of the Fine bar. The servicescape of the Fine Bar is another most important strength for the fine bars. They offer extraordinary services for their valued customers. Their bartenders have presentable personalities and good communication skills in order to accommodate their customers.             

Weaknesses of  Bar and Club in Indonesia

There are many different weaknesses that come with Fine bar. One is that they are very expensive to run. The cost of the liquor itself is enough to make one’s head spin, plus depending on what state that you are in, there could be very few distributors as few as two of them in an entire state. Not to mention the loss of profit if your bartenders are not properly trained and are over-pouring. Over pouring is one of the biggest reasons for profit loss. The difference between owning a bar and owing a nightclub is that most bars will stay open during the week and have happy hours and other marketing strategies to make up for the loss of revenue. A nightclub generally will only be open on weekends and are only open at night. For a night club, the off-peak season can be detrimental to their profit.

Opportunities of  Bar and Club in Indonesia

There is an abundance of opportunities for bars and nightclubs. Local bars have opportunities in using local or organic food to draw in crowds because organic has become a very popular fad and is very important to some. They can also use special drinks that are special to the nightclub or bar that you would not be able to find anywhere else but that establishment. Social media has also been on the rise in advertising. Many people are on Facebook, Twitter, Instagram, and many other social sites. They can definitely use these to their advantage by using them to promote the establishment or offering special deals. Groupon is another source than can use to advertise themselves as well for special deals and special prices.  Many bars and nightclubs are using special apps to help keep track of data. They are giving their servers Ipads and tablets to take orders, as well as putting them at the tables so that customers can use them to look at deals and play games. Importing special liquor and beer can also help boost sales, in that many people like the finer things in life, and they like exotic liquors that you will not find at any bar or nightclub.

Threats of  Bar and Club in Indonesia

There are various things and elements that play the role of threat for fine bars. One of the most important factors is the competition from various bars and café. In order to attain this competitive edge, the fine bar must be struggling in a positive way. The resistance of the community is another one the most important threat for the Fine bar. There are numerous communities that don’t want the noise in their surroundings, but this threat is almost overcome due to the location of the sea site. The licensing and legal requirement in order to run the bar is the most important threat that can reduce the growth of the Fine Bar.     

Porter 5 force Analysis of  Bar and Club in Indonesia

Porter’s Five Forces of Fine Bar of  Bar and Club in Indonesia

The analysis Assessment of the detailed porter’s five forces has given in this paper in order to measure the powers of the suppliers and buyers of the Fine bar. The demand and supply-side dynamics are encompassed in this paper in extensive manners. It also represents the threats of the new entrants and substitutes for the Fine bar. The internal rivalry of the Fine bar is also presented in this paper in extensive manners. There are five major components and elements of the environments for any business industry that are explored by the analysis of porter’s five forces and these are; Threats of new entrants, Threats of substitutes, bargaining power of suppliers, bargaining power of buyers and new rivalry.     

Threats of new entrants of  Bar and Club in Indonesia

The threats of the new entrants can be easily measured by the barriers to the new entry. There can be several barriers to the bars industry in Indonesia. A few of the following threats are given below.

Investment cost of  Bar and Club in Indonesia:

·         The entry can easily deter by the high cost

·         The highest range of capital requirements can be presented that only large businesses can compete with the Fine bar.

 Product Differentiation of  Bar and Club in Indonesia:

The Differentiation of the products can easily reduce the threats, or the Fine bar produces the products with unique selling points so to compete, it can be tough for its competitors. The prices of the products/ services of the Fine bar will play an essential role in order to discourage the new entrants in the market.

Legal restrictions of  Bar and Club in Indonesia

The numerous restriction can perform the roles of the barriers to a new entry for the Fine bar. In the Indonesian bar industry, the rivalry is low due to the amount of direct and indirect competition, so the threats to the new entrants will be favorable for the Fine bar to perform its business in Indonesia.

Threats of substitutes of  Bar and Club in Indonesia

Another biggest that’s the Fine bar has to run its business in the Indonesian industry I related to the threats of the substitutes. The numbers of the cinemas and coffee clubs are one of the most important substitutes of the Fine bar in the region of Indonesia. There are numerous competitors of the Fine bar in Indonesia that can be the cause of the threats for the Fine Bar. It includes the entire resources that can accommodate the customers for their entertainment and giving them a fresh mind. It includes the Cinema, casino, arcade, clubs, and various kinds of café that offers the sources of entertainment to the peoples of Indonesia.

Bargaining power of suppliers of  Bar and Club in Indonesia

The bargaining powers of the supplier always exists along with the local brewers in which the Fine Bar work in extensive manners. It includes the vendors that are entirely engaged in the supply of the products that are required for the services of the Fine bar. It also includes vendors of the beverages and foods, particularly alcoholic drinks that are the parts of the Fine bars. There are wide ranges of suppliers that can serve the bar and club industry and even the products of the bars can be purchased from many suppliers. Due to the high ranges of the suppliers, the barging powers of the suppliers will be low in Indonesia. It will be favorable for the services and products of the Fine bar. 

 Bargaining power of buyers of  Bar and Club in Indonesia

Due to the competitive markets of Indonesia the buyer’s bargaining power is high. There are few differentiators that will be keeping customers and determine to get the customers according to the loyalty standards. One of these is a Fine bar taste test survey that customers can participate in and use their loyalty card to vote. The barging powers of the buyers are comparatively high because there are numbers of the bars and restaurants that are offering the services in Indonesia. Due to the high barging powers of the customers, the Fine Bar must adopt the accurate ways of pricing and determine the always due to which the customers can switch towards another brand. Due to the high competition of the bar in its particular industry, the buyers are tending towards enjoying the strong barraging power when;

 There are only a few businesses offering the services in markets

·         A significant percentage for the output of an industry is purchased by its buyers.

·         The credible backward integration threat has been possessed by them. It is one of the most important threats to buying the products from producing a firm and its rivals.    

Business Location of  Bar and Club in Indonesia

            The new business of bar and club will be known as A Fine Bar, and it will be located in Jakarta, Indonesia; the bar and club will be facing the Java Sea. This location has been chosen as the most optimal place for the business. The reason why this specific location is considered optimal depends on the nature of the business. This place has been analyzed to be promising for the Fine Bar.The location of the business matter a lot especially when it is bar or restaurant. Such location should be selected where the bar can serve huge amount of customers. An extensive research should be carried on before choosing the location because the location can play a vital role in increasing the sale and profitability of the business. For this business Jakarta city has been selected which is among the largest cities in Indonesia and many tourists from different parts of the world visit this city. The tourists like to travel to beaches and places that are near the sea. So the location of Fine bar near the Java Sea is well justified.

The selected location will help the bar to attract significant amount of customers which might not possible if such location is selected which is not prominent. For the business to gain profitability it is necessary that the business should have presence in the area which is not easily accessible but also can cater huge number of customers. The Fine Bar location will provide the business a competitive edge over the competitors or other similar businesses. Its location is a major strength and plus point of the business and will allow it to gain high revenues.

Facilities of  Bar and Club in Indonesia

 Facilities will include all the equipment and tools which will be necessary for the employees of Fine Bar to conduct its operations. For instance, since the business is concerned with a bar, seating facility is considered one of the most important facilities. In addition to the seating facility, other facilities will also be included. From the perspective of customers, some facilities will include a comfortable environment and necessary utensils. Meanwhile, from the perspective of employees, the facilities will include significant tools and equipment which will be utilized by them for performing their operations. Facilities is a very broad term in terms of business and organizational facilities have to be changed every now and then. Therefore, when deemed necessary, more facilities will also be added.

  Other than just purchasing and adding the facilities, the existing facilities will be maintained to ensure that they don’t adversely affect the business.

The customers are the utmost priority of any business and if the business is not going to focus on the needs and preferences of its customers than the business cannot generate huge amount of revenues. The Fine Bar will focus on the needs of its customers by analyzing the latest trends that prevail in the market locally and internationally. Fine Bar will try to provide a different ambiance to the customers which will be totally different from usual bars. The unique ambience and decor of the bar will allow customers to experience something new and with such design of the bar the bar will able to achieve customer loyalty.

The Fine Bar utensil will be unique in design plus the Bar will have many exciting activities for the people. The customers can enjoy karaoke in the Bar. Along with Kareokay the customers can enjoy their food on roof of the bar with exciting views of the sea. The roof top of the bar will provide a refreshing and beautiful atmosphere to its customers.