Opportunity for One More Night for Mirage Nightclub

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1.0 - Background and Purpose of Research

BACKGROUND
Since its opening the Mirage Nightclub has gone through many changes, each time to be able to adapt to its ever changing environment. At this point in time they are considering the opportunity of opening the club on Wednesday nights to increase revenue and their customer base.

The Mirage opened in 1998 by Ferguson with the hopes of providing a high end club night within Surrey, which at that time was nonexistent. They were able to capture the attention of those within the age bracket of 25 and above, and had drink prices that were comparable to those in Vancouver; in other words, they were not cheap. They had strong business mainly on Thursday, Friday and Saturday night and had slowly added Sunday allowing the Mirage to be open 4 nights consecutively.

With the changing nightclub industry there have been trends and regulations that have changed immensely. In 1999, the Worker’s Compensation Board had helped ban smoking in restaurants and night clubs in order to provide a safe work environment. This was a regulation that was lightly enforced within the Municipality of Surrey. In response to this major change, the Mirage was forced to ban smoking within the club, and had patiently awaited the municipality’s consideration of smoking rooms with ventilation. In January 1, 2001, the Mirage was able to obtain a license allowing them to provide a “smoking room.” It basically allowed those who smoked to do so in the specially ventilated room; thus, no affecting the nightclub workers or clients.

With the growing number of nightclubs in Vancouver, nightclub owners had felt that it was important to give more life to this industry. They had given nightclubs the option to extend their hours from 2am to 4am provided that it was approved by the city. The city of Vancouver had allowed nightclubs to do so at a high cost. The Mirage had also wanted to have the extended hours, however Surrey Mayor Doug McCallum did no agree to this option. This affected the Mirage immensely because it had drawn their older clientele to go to the Vancouver clubs.

This brings us to where the Mirage is today. With the loss of their older clientele, they are now focusing on a younger customer base. They are currently attracting 19-24 within Surrey and the surrounding areas. They are looking to open another night in order to increase their sales, which is currently on average $50,000 per weekend (Thursday through Sunday).

MARKETING OPPORTUNITY
Currently the Mirage is open Thursday through Sunday. There is an opportunity for the Mirage to be open at least one extra night in order to bring in more revenue and clientele. Being open one extra night a week would give the regular Mirage goers as well as other club goers an opportunity to visit the Mirage more often. Instead of them doing something else such as going to another club or other activities we could bring them in and profit from it.

COMPETITTIVE INTELLIGENCE
Most of the competitors of the Mirage are located within the outskirts of Vancouver. Their competition within the outskirts is scarce and allows the Mirage to be one of the leading clubs outside Vancouver. According to the owner of the Mirage, their competition is as follows: Ozone, Liquid, Standard, Cheers, and Roosters. All of the clubs that compete against the Mirage all have cheap drink prices and ample amount of parking being within the Fraser Valley and surrounding area. The clubs differ with the nights that each hold as well as many distinguishing factors of each club, for example food being served or smoking laws. Below is a comparison chart that compares the Mirage’s Wednesday night potential competition.

Number of Nights/weekCover Charge (Wednesday)CapacityWednesday Night ThemeSmoking RoomThreat AssessmentCounter Attack Mirage
Surrey4n/a400n/aYes
Ozone
Surrey4$5
before 9:00400 approx.n/aYesHighOpen Wednesday nights,...
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