Hookahs Mango · Grape · Lemon · Orange

Hookahs
tobacco is going to include different flavors, like:

 

·        
Menthol

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·        
Watermelon

·        
Melon

·        
Cherry

·        
Strawberry

·        
Blueberry

·        
Apple

·        
Bubble gum

·        
Banana

·        
Mango

·        
Grape

·        
Lemon

·        
Orange

·        
Peach

·        
Vanilla

 

Apart from
choosing one flavor, it will be possible to mix tobacco, make it water-, milk-
or alcohol-based, using vodka or tequila. In addition, there is going to be an
option of making this hookah in standard way or adding the ice cubes to have
more smoke and making it cooler.

 

The complete hookah menu it is possible to see
in the appendix 3 as well as the snacks & appetizers menu, wines menu and
other drinks menu. Due to the fact that Hookah Space is based more on hookah
and drinks sales, it is predominating, but snacks & appetizers will be also
very popular because of people’s common choices and wide selection of different
types of food and flavors. The providing food is going to be based on the Mediterranean
cuisine made only from naturally-grown and ecologically-friendly products. On
the other hand, the food menu is not very huge. It is considered that it is
better to enjoy one little meal, which can provide many emotions and satisfaction,
rather than many big ones with no difference between each other with the only aim
to fulfill the stomach. There are going to be two people responsible for
cooking, one chef and one line-cock, and two full-time responsible bartenders
for drinks and one part-time employee. The lounge & bar manager is
implemented into the work of all the employees as barmen as waiters, to be sure
about providing the best service to customers and satisfy all their needs.

 

According to predicted forecasts, which are
going to be mentioned further in the chapter 5.5.4 in the tables 3, 4 and 5,
the total net sale is anticipated to be approximately 37% by tobacco, 35% by
drinks and 28% by food.

 

To enter the competitive touristic market in
Spain, Hookah Space lounge bar is going to set prices in accordance with Jeffrey
A. Timmons theory, which is to set a retail price for the product and service
below the competitor’s price level, but it is supposed to have a certain
novelty and even better quality. This strategy is used to attract potential
customers, make them loyal and gain a reputation on the fast-growing touristic
market.

 

1.1      
Market research

 

The market
for hookah bars in the Spain has grown significantly in the past decade. In
Calpe, Hookah Space lounge bar will focus on locals and tourists in the
greater Calpe area of different nationalities and ages major than 21 years old.

 

Below in
the figure 5, it is possible to see expected diagram for market segmentation
analysis, which consists of two main groups: residents and tourists. Residents
occupy approximately 40% of all the visitors, when tourists have like 60% of
the customers. Both groups are divided into specific age subgroups: 21-30 years
old, 31-50 years old and 51 and more years old. The most frequent customers are
supposed to be young residents with the age varying from 21 to 30 years old
(20%) and residents from 31 to 50 years old (24%). These subgroups are the most
demanding because residents, Spanish people, tend to go out a lot in whatever
age and daytime, and seek for good service and relaxing atmosphere after
studies or work. The smallest percentage (11%) has a subgroup of tourists with age
starting from 51 years old and more. However, it is still high for elder
customers, because of the fast grow of hookah culture worldwide, especially in
Europe, and high-class type of leisure during vacation. This is another reason
why this kind of business would work out and succeed in Spain.

 

Figure 5:
Predicted market segmentation by percentage at Hookah Space lounge bar

 

1.2      
Marketing strategy and implementation

 

According
to online source, the concentrate for implementation will be on establishing
the quality of the offering, its reasonableness for individuals major than 21
years of age target market, and the foundation to take into consideration group
driven culture. The encouraging of the Hookah Space lounge bar group will be
imperative to the development of the business and its confirmation as a franchise
model (B Plans 2017).

 

Hookah
Space lounge bar’s competitive edge will be established through its community
organizing ability via its website. This website will present an interface for
users to connect with each other and Hookah Space lounge bar after they have
left the establishment, organize groups to attend this place, plan events to
propose for the Hookah Space lounge bar calendar and send out invites for these
events.

 

1.2.1     
SWOT analysis

 

SWOT analysis is a method of strategic
planning, which consists of finding, observing and evaluating factors of
internal and external environment of the organization or enterprise and
dividing them into four categories: strengths, weaknesses, opportunities and
threats. With other words it can be also divided into two groups: internal or
inner factors and external or outside factors. Hookah Space lounge bar’s
internal factors are going to include strengths and weaknesses, and external
factors focus on opportunities and threats. Inner factors describe all the
positive things happening inside the restaurant and the things that need to be
analyzed and improved. The outside factors will show general situation of the
bar but taking under the consideration all the plans and ideas to be realized
in the future.