Thursday, April 21, 2011

Delivreable #2 -Seong Taek Kim, Jooyhun Kim

General Background/Trends

About 1/4 of the total population in Korea reside in Seoul city. Thus the density for the population is extremely high which makes it a very active city. A lot of competitions take place as getting into inner-city area. That’s where most of businesses take places with some being successful or failing if unlucky. The unstable economy in Korea where the wages are low but the expensive standards of living make a lot of lives extremely tired and exhausted. The hard standard of living has been too usual that when people greet helloing each other, this is often asked as a gesture for hello “how is your life going?” People in Korea are really sensitive when it comes to money. Because when it is lost, it is extremely hard to back it up. But at the same time, huge amount of people are very ambitious for money in order to end the hard standard of life they deal with. Therefore, well planned thoughts are put into the business that leads to very competitive market in the city. However, there is one thing that Koreans typically do often for generations. That’s alcohol that most people enjoy with in order to get rid of stress they get from the hard life. This is where our business plan comes to place. We believe that opening a bar will bring the least risk with a bar because the demand for alcohol doesn’t seem to decrease even when economy is falling at a certain time.


Competitive Challenge/ Marketing Objectives

The most challenge we will be facing is that there is not only us who think to this. We all know that there are a lot of competitors who are ready or even with far better plan to start this business. Thus, as we are not very experienced and professional in this area, we need to get a spot away from inner-city where a lot of competitors come to challenge. Plus, there are not many bars in suburb area where it gives quite and comfortable atmosphere. Almost every house in Seoul city is a form of high constructed apartment where there are a lot of residents. So as mentioned above, such high density of population will give a lot of potential customers even in suburb area. And to go out and have a drink will have to deal with hitting roads to the inner area. Therefore, it is thought to work if there is a bar in such area where people can come to visit after work at ease without having to take time getting out to the inner area. Lastly, it also gives a good marketing strategy because, there won’t be many bars that will provide quite atmosphere with appropriate music, and the design (image provided in presentation) of the bar will appeal an image of a bar that is like one in inner area. Such design of the bar will make it a good spot for a date, relaxation or a friend talk. Words will spread out easily because it will be located near a apartment town with high amount of residents, has a lot of potentials.

Main Target

The business will target people with age of mid 20 – 40s. Since the bar is to give comfort and rest area for the people who have a job, it will be necessary to target customers with those ages. college students are also welcomed as well. Since the bar will provide a quite small atmosphere, it also makes a good spot for a date. However, generally it is open for everyone who wants to come to enjoy and have fun to get rid of the stress.

Budget (Operation)
- Profit
Expected revenue per a month $ 13.000
Total cost $ 8,200
Expected profit per a month $4,800

- Pay out
Rent per a month $3,000
Utility $200
Employees $3,500
Raw materials $1,500
Total coat $8,200



The deposit for the rent is $10,000 and the cost for the designing the bar is estimated to be $30,000. The fund for the buying goods for service is expected to be $7,000. So in total $47,000 is needed for the business.

No comments:

Post a Comment