consumer behavior of drinking beer in lan kwai fong, hong kong

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong MARK 242 (Fall 2008) Consumer Behaviour Consumer Behaviour Group Project The Behaviour of The Behaviour of Consumers Consumers at bars in Lan Kwai Fong at bars in Lan Kwai Fong Page 1 of 34 LAU Yuet Wah Rosa mn_lywa d TSANG Hang Fung mk_thfa c HO Man Chai ac_hmc BRINET Matthieu Alexandre R bm_bma BAS Carole Noelle Catherine bm_bcn CHRIQUI Kevin Gontran bm_ckg KWOK Emmy Tsz Ting mk_ket

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This is a marketing report done in investigating the consumer behavior of drinking beer in Lan Kwai Fong.

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Page 1: Consumer Behavior of drinking beer in Lan Kwai Fong, Hong Kong

Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

MARK 242 (Fall 2008)

Consumer BehaviourConsumer BehaviourGroup Project

The Behaviour ofThe Behaviour of ConsumersConsumers

at bars in Lan Kwai Fongat bars in Lan Kwai Fong

Page 1 of 25

LAU Yuet Wah Rosamn_lywad

TSANG Hang Fung mk_thfac

HO Man Chai ac_hmc

BRINET Matthieu Alexandre R bm_bma

BAS Carole Noelle Catherine bm_bcn

CHRIQUI Kevin Gontran bm_ckg

KWOK Emmy Tsz Ting mk_ket

Page 2: Consumer Behavior of drinking beer in Lan Kwai Fong, Hong Kong

Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

Content

Page 2 of 25

PART 1

A. Basic Information of Lan Kwai Fong- Overview- Type of shops- The “Office hours”- Locations

B. Data Collection Method

C. Basic Segmentation

D. Main Consumers’ Segments in LKF

E. Description of Target

- General description- Pre-purchase issue- Purchase issue- Post-purchase issue

PART 2

A. Introduction

B. Pre-purchase issue

- Attitude formation toward bar- What cues does our target use to infer which bar is superior to others?C. Purchase issue

- Mood and Needs- Bar's atmosphere- Situational influenceD. Post-purchase issue

- Determinants of the consumer's satisfaction- Will the consumers come again?- Does this person tell others about his/her experiences & influence their decisions

CONCLUSION

Page 3: Consumer Behavior of drinking beer in Lan Kwai Fong, Hong Kong

Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

Executive SummaryThis paragraph has the purpose to summarize how we conduct our study of “consumer

behavior in LKF's bars”.

Part 1, From consumer's perspective

In the first time we considered, a priori, all the populations we could find in a bar. After

describing who they are and defining which needs could be satisfy in going into a bar, we

selected the three more representative populations in LKF (Business people westerners,

Business people locals, students in exchange) and realized a quick overview of their

particular behavior in LKF. At the end of this part we selected and studied deeply the

behavior of what will be from now our target in the second part of the study.

Part 2, From marketer's perspective

After a short reminder of the 4P of our “product”, the Stormies, we studied in a

successive way the pre-purchase, purchase and post-purchase issues of the Stormies and

we compared it to other competitors. And finally we summarize our conclusion in a table

of the main points which crosses consumer's needs and what the Stormies offer.

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

PART 1

A. Basic Information of Lan Kwai Fong

Page 4 of 25

Page 5: Consumer Behavior of drinking beer in Lan Kwai Fong, Hong Kong

Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

OverviewLan Kwai Fong is a square of streets full of

restaurants, bars and clubs in Central. It is a popular

place among expatriates and international students. On

Friday and Saturday night, there will be enormous

crowds filling on the streets. After school or work,

people like to have relaxing time having fun with their

friends there.

Type of shopsYou can eat, drink and party in Lan Kwai Fong and

there are a myriad of café, restaurants, clubs, bars and discos that fulfill your needs.

For restaurants, there are a wide range of cuisines, like Italian, Russian, Nordic and

Australian, etc. For bars and clubs, they are in different sizes and styles. Some play

strong music but some do not.

There are also some lifestyle shops, such as boutique, galleries and yoga place.

The “Office hours”The bars usually open in the afternoon and they have “happy hours” from 3pm to 8pm in

which the beers are sold at a lower price. The bars will open until 4am in the other day

most of the time.

LocationsLan Kwai Fong means the area between

D'Aguilar Street and the smaller lane, Lan

Kwai Fong. Both streets turn 90 degrees

to form a rectangle. Moreover, there are

some more shops for drinks and food on

Wo On Lane and Wing Wah Lane

B. Data Collection

Method

Page 5 of 25

Page 6: Consumer Behavior of drinking beer in Lan Kwai Fong, Hong Kong

Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

The data and behaviors of consumers in bars of Lan Kwan Fong was collected and

observed by visiting and consuming in bars of the place by our group members. We

conducted a few trips there, in which we chose different bars and stayed there for two to

three hours. We observed the consumers by sitting inside the bars and also had interviews

with them. Areas that were covered in the interviews included their background

information (e.g. origin and occupation), consumption habits (e.g. types and number of

drinks ordered, expenditure and places visited before consuming in the bar) and general

opinions on the bar (e.g. expectation and favorite ambiance)

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Page 7: Consumer Behavior of drinking beer in Lan Kwai Fong, Hong Kong

Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

C. Basic Segmentation

Age Origin Students Working people Tourists

<35 Chinese - Not many Chinese students come after school or at weekend

- Prefer other

entertainment, e.g.

going to karaoke

box and visiting

shopping mall

- Quite a lot of Chinese come after work

- Combination of

men and women is

quite even, but the

number of girls

counts a little

more than boys

- Very few Chinese tourists come

- Going to bars is not

an activity that

Mainlanders do

when they visit

Hong Kong

- Chinese tourists

prefer places with

local Hong Kong

culture rather than

Western culture

Western - Many exchange students who have been here for 4 months to one year

- Go out a lot

because they don't

have a lot of class

- Like to hang

around with other

international

students

- Many Western people come after work- Meeting friends or searching for potential dating partners

- Meeting friends

who are from

their home

countries or other

countries

speaking the same

mother tongue

- Very few Western tourists going to bars

- Even if they do so,

they would just

come once when

they stay in Hong

Kong to have a

taste of LKF

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

Age Origin Students Working people Tourists

>35 Chinese Not applicable (No students aged below 35)

- Not a lot of Chinese in this age group come after work

- They focus on

family life after

work

- Even if they go to

bars, many of them

go to those in the

Kowloon side

- Very few Chinese tourists come

- Going to bars is not

an activity that

Mainlanders do

when they visit

Hong Kong

- More mature

Chinese tourists go

out at daytime for

shopping branded

goods and

electronic products

Western Not applicable (No students aged below 35)

- Come after work to relax and meet new people- Meeting friends

who are from their

home countries or

other countries

speaking the same

mother tongue

- Enjoying the time

with their loveones

- Even fewer Western tourists go to bars than the young ones

- Prefer drinking

together with dinner

at restaurants rather

than bars

Segment 1The Western Working people with age under 35

Segment 2The Chinese working people with age under 35

Segment 3The Western Students with age under 35

- A large proportion of this segment are Western people who have been working in Hong Kong for several years

- Many of them are professionals working in

- Young working people who come to bars after work

- Have not married so that they can stay very late in bars with a group of friends

- Have not much financial burden

- Many exchange students who have been here for 4 months to one year

- Like to hang around with other international students

- Want to make the most of

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

the business field or are doctors

- Treat coming to bar and talk with people as a deep-rooted occidental culture

- Come after work for relaxing and relieving their stress in a fun place

- A conventional norm to order alcoholic drinks in bars

- Lan Kwai Fong is a common place for them to assemble and gather with friends

- Meet people from the same countries or speaking the same mother tongues

- Have a drink and sit down inside the bars to have a nice little chat with their love ones

- Like to order wine serving along with food

to their family

- Willing to spend quite a lot on lifestyle products, e.g. buying fashion goods and dining in a nice restaurant

- When come in groups, the number of girls counts a little more than boys

- Many of them have studied or worked overseas

- Receptive to Western culture and have a mindset as a Westerner

- Like to read English magazines and fictions during leisure

- Many of them order cocktail to show that they know how to appreciate the drinks

their exchange and discover all famous clubs in Hong Kong

- Come with a large group of students from the same school

- Begin the night with drinking cheap drinks e.g. Beer or Vodka in seven-eleven

- Do not order a lot for saving money to spend in clubs at a later time of the night

- Go to bars throughout the week

- Prefer standing close to the bars while drinking cheap alcoholic drinks bought in convenient stores

D. M ain C onsumers’ S egments in LKF

E. Description of T arget After analyzing the above 3 populations, western business people would be our target.

The reason choosing this target is that western business people go to Lan Kwai Fong

more often, compared to Chinese business people. Also, their drinking behaviour in bar is

more distinctive and interesting.

According to our detailed observation in Lan Kwai Fong for several times, we discover

that our target group has the following demographic and psychographic behaviour.

General description of our target group

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

For our target group, they are western business people, including both men and women.

They are between 25 and 35 and they usually wear classic suit. Before they go to Lan

Kwai Fong, they usually go to restaurant to have dinner first after work. After dinner,

they will go directly to the bars in Lan Kwai Fong. For those who are rich, they will

choose taxi to go from restaurants to bars as they think it is the most comfortable and

convenient way. Normally, they will arrive at the bars at 9pm and they come in groups –

usually with more men than women. Sometimes, they will meet other people in the bars

too.

Pre-purchase issueIn our observation, when our target group comes to choose a bar, people do not need

much hesitation. They just directly go into one bar that they want to go. The reason

behind is that they are used to the parties in Hong Kong and they already have their own

favourite bars in mind where they can meet people. That is their evoked set. For the bar

that we investigate into, is an expatriate bar. They go to this bar as they want to meet

others coming from the same country as they do. They can hardly change their habit and

go to a new bar that they are not familiar with.

Inside the bar, there are both boys and girls and they are mixed in groups. Some girls’

groups are sitting at the table and boys are most likely standing outside the bar. For our

target group, they stay inside at a table first as it is not so late when they go inside the bar.

But while they go ordering the drinks, they always meet people they know and usually

they stay standing up talking with them. They also go outside to talk with people as it is

less noisy and there are fewer people outside. When they go outside, they just stand near

the tables as they can still feel the air-conditioning. They are not particular finding a bar

that is quiet or with strong music.

Besides drinking, our target group also dances. They do not dance when they first go

inside the bar. Yet, when they met people they know which are dancing, they can join

them before coming back to their table.

There is a television showing football game in the bar. Our target group does look at the

TV but it is not their main concern.

Purchase issueAfter going inside the bar, the business people find a table to settle down. They wait at

the table and wait for the waitresses to serve them. They just want to have fun inside the

bar and do not want to take the drinks by themselves from the counter. They try to find

the waitresses first and call them to take the order. However there are many people inside

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

the bar and they cannot catch the attention of waitresses. So, they directly go to the bar

counter to order. It takes quite long time for them to go to the counter as they have to pass

through the crowded people to the counter.

When they go to the counter, they do not need to queue to order as they have already

found the best place in order to be seen by the barmen. Some people may need to change

place to be seen by the barmen but it is not the case of our target. When they order the

drinks, they do not need the menu and they do not need to think for a moment of what to

order as they go there often and are familiar with the drinks inside. It is their habit of

ordering drinks. They only need to speak the name of drinks once loudly to let the

barmen understand what they order.

When ordering drinks, it is somehow a difficult process. As when a businessman, one of

our target goes to the counter to order, has to leave his friends alone at the table. Also, he

has to cross the packed people and catches the barmen’s attention when he arrives at the

counter. He needs to speak loudly so as to let the barmen hear what he wants as there is

music around and people are chatting noisily. But finally, he seems to enjoy the process

as he can really get some drinks back for his friends, not only for himself. He knows what

his friends want actually as he usually comes with the same group and knows his friends

want beer.

Inside the bar, most of the people drink beer in big glasses while some girls drink wine.

There are also some people around their 40s drinking beer in glasses and bottles. There is

no cocktail at the beginning of the party but there are few people drinking at the

midnight. The reason behind is that people want to have something softer first, like beer,

followed by stronger cocktail.

Our target group usually orders a few glasses of beer first, and then changes to vodka

cocktail. They change to another type of drinks as they want something stronger and they

want to have a different taste. Moreover, they may think beer is too common and they

want something more festive. After several drinks, they still do not get totally drunk but

are quite happy and enjoy the night.

Furthermore, it is discovered that men will offer drinks to women. As they are working

group and money is not a problem to them. Thus, they will invite their women friends to

go to bars with them. However, in our several observations none of them will offer drinks

to girls who they do not know.

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

Post-purchase issueAfter buying the beers or wines, most people continue chatting with their friends. Very

few people dance actually and they mostly dance at the end of party. Our target group

usually stays there for more than 2 hours, which is leaving at around 11:00pm to

11:30pm. It is their average time staying in one bar. Not all the groups in the bar leave at

same time and there are few people keeping talking inside. For majority of people, they

usually leave at 2am and they are leaving happily.

PART 2

A. I ntroduction – Stormies' 4P In the second part, we have decided to study a specific bar and two competitors and how

can their marketing's actions influence our target.

First of all, we want to describe briefly our bar's marketing mix:

Product The Stormies is a pub with a classical ambiance, the place is quite small but it benefits from a good situation on the street. The bar is clean, well decorated, toilets are quite ok, the music is from 80's and most of people like it, drinks are quite good and there are a lot of choices.

Price Drink prices are quite expensive, a little bit more than other bars, you can pay either with cash or credit card.

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

Place There are two ways to sell drinks: customers can order at the counter or they can call a waitress.

Promotion Offer : there are price offers for girls on Thursday “Ladies night” : one specific cocktail is free for girlsCommunications: neither mention on Internet nor on blog, advertising can be

found in the tourism office. The bar is the sponsor of a local sports team. The

communications works more by word of mouth.

B . Pre - purchase issues

When talking about consumption in a bar we generally thought about drinking, and this is

true it may be the only moments where you will be ask for payment. But what we do not

realize at that moment is that we are paying for the drink but also services.

What does that service mean? In the service are included costs such as: the place, all the

staff and also the ambiance (decor, music...). Thus, when dealing with pre-purchase

issues for a bar, we are not just thinking about ordering and drinking because, as seen

above, as soon as you enter in the bar you start consuming the “bar” even if you haven't

paid yet.

The particularity of our topic is that we can categorize the consumption as an

entertainment. A hedonistic consumption based on a need for belongingness.

Attitudes formation toward barConcerning our product, we can say that our target is loyal to the bar. As seen in part 1,

these people are part of a community: same origin, they are all expatriates, similar job

and lifestyle. Thus more that relaxing after a working day, the Stormies is a meeting point

which is a place reflecting what our target wants.

What is the process for integrating this community? Take the case of a new expatriate

seeking for new friends in Hong Kong. This man may be disoriented, will look for people

close to him (it is natural need). Considering this, he will ask people like colleagues,

friends (people who have the information), these persons will probably advise him LKF.

This kind of search in information is called word-of-mouth and seems to be the most

efficient one, especially when dealing with products with great social attributes, « If my

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

peers like it I should do so ».

First, why LKF seems to be the most appropriate place for our target.

1. Reputation of LKF: it is an area dedicated to entertainment with a large

number of bars.

2. Proximity with the working place: most of our target works for a big western

company localized in Hong Kong Island and as « time is money », it is more

convenient to go out in the neighborhood.

3. Proximity with the living place: during the week going out in a relatively

close place allows our target a fast go back home.

As the area in not very big, it is easy to walk nearby all the bars and assess them.

However we face a large range of different ambiances:

1. Lounge bar: dim light, relax atmosphere, people stand seated on a sofa or on

high table (nobody outside). Beer in bottle is mainly consumed (Heineken and

Corona are the most common brand), but also cocktails. The population of the

bar is mix, we can find expatriates as locals. Big screens play video-clips

related to the music.

2. Chicha Bar: people in those bars are chicha smoker. Due to the smoking

system people are seated around high table, the music and lights are dim and

remind oriental style. Our target never go in this kind of bar.

3. Bar Latino: strong character and origin, here it is only a matter of fiesta.

Music as drinks or food reminds Latino style. In these places we drink

cocktails based on rum and tequila or Corona. Clients do not hesitate to dance

(especially women).

4. Bar new generation: new materials and fixture are used in the decor

(aluminum, neon...), the music is quite loud and new (a lot of electro). People

inside are young and mix. They consume beer in majority. There are screens

broadcasting sport events and video-clips.

5. Pub: In a traditional style, pubs in LKF are very close from those of England

and Ireland (woodwork, trophies, and team sport pictures). Here, is served

beer pint (but also bottles), cocktails and wine. Screens broadcast sport events

some are attentively follow by clients. The music is based on British Pop

Rock. It is the place where our target is dominant, because of the strong

cultural heritage.

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

Now that we identified the competition, let see what the Stormies’ attributes are:

The Stormies is a pub located in the high of LKF on D'aguilar Street. With 3 flags

(English, American, and Australian) at the entrance, the place is more opened than others

(certainly because the bar is located in the angle of the street), there are large windows,

and thus you never really know if you are inside or outside. Lights are bright. But what is

more striking it is the crowd in front of the Stormies, since the start of D'aguilar Street it

is possible to see these people having fun even when others bar are quite empty. This

people are wearing the same dress code: dark suit or pants with shirt (me) and smart dress

(women), they are all westerners aged between 30 and 50. They discuss, laugh loudly,

sing, dance, the atmosphere is so relax. Most of the men are drinking beer, girls prefer

wine or cocktails. The music outside send all people at 20 meters around, back in the 80's

for some British Pop (comment: the 80's is generally the youth of all customers in).

If our target didn't know about the Stormies, just by passing in front of it, he could say:

« Hey! I know this song I bought the album when I was young » then « those people are

looking like me, they drink what I am used to drink in a place that looks like my home

country ». In few words « this is the community I make part ».

Clearly there are no other bars in LKF where we could find this fever, this crowd and

those so characterized customers.

What cues does our target use to infer which bar is superior to others?If we want to be fair and rational our target should try every bar, but it is impossible, this

option will be too time costing. And we must remind that most part of our target is in

group, so if a change has to occur (trying a new bar for instance), it involves the

agreement of everyone. In this case the differentiation is a matter of feeling, and

projection. The differentiation using the imaginary of our target will decode the

perception he feels exposed to a particular place. Even without going into the bar our

target will in a first time evaluate elements such as:

1. other customers in the bar: who they are, what are they doing, their mood;

2. Ambiance: light, music, TV, furniture;

3. Place layout: seats, table, bar...

After this appreciation our target will imagine himself in the bar (projection), the

difference between this projection and what he is expecting when he goes out, will allow

him to assess is personal appreciation of the bar.

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

If it is made over a bigger sample, he will make his own ranking. Finally he will submit

his conclusion to his friend and generally the place which will gain more sympathy will

be chosen.

C. Purchase issue Many things may influence consumers when they purchase. In our case: when a

consumer is in a bar and buys a drink. In this paragraph, we are going to study how its

personal mood and need, the bar's atmosphere and the situation can influence the way our

target purchases.

Mood and N eed s Needs

We mustn’t forget that drinking in a bar is responding to a basic need: the thirst. In fact

the role played by this physical need is not so important as it should actually be: yet if our

target is very thirsty it may begin by a non alcoholic drink or a light alcoholic drink. But

fulfilling this physical need doesn't mean the consumer will stop purchase because this

need will be replaced by other goal.

Mood

Drinking in bar is a social activity, to enjoy it people must be in good mood, open with

people and feel comfortable: everybody knows that alcohol can be an easy way to lose

sense of reality and to be more relax. So the way consumers feel in bar and their humor

really influence the way they consume.

Here are different typical moods of our target and the way they consume:

>Our target goes out after a stressful working day, we know that usually it takes times to

forget business problems – in this case yet people have to forget their work quite

instantaneously and be funny. If our target doesn't feel at ease it might be more disposed

to drink a lot at the beginning of the evening or taking hard drinks.

>On the contrary, our target is likely to go out with colleague or to try belonging to a

network that is why he must stay on control and won't drink a lot and sophisticated

drinks.

Role play

As we say, drinking in a bar is a social activity whose goal maybe to meet new people

and relax with friends. That is why people might modify slightly their image to impress

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

other people or to give a friendly image of themselves for example by purchasing

expensive alcohol or offer drinks to other – in the Stormies our target is more inclined to

get 4 biers in the same time for friends than just one for himself. For example we have

observed a business man coming by MTR eating a sandwich because it was cheaper than

going in the bar ordering an expensive alcohol and paying a round for all its friends.

What actions are made to influence our target's purchase:

Our bar influence consumer's mood thanks to its warm and relaxing atmosphere (see part

on bar's atmosphere), here are some actions which can be added to the strategy:

> Need: to give things to eat but which also makes you feel thirsty (like peanuts).

>Mood: to placard an attractive menu of the cocktail on the wall

> Role play: to placard price of wine bottle or make 5L bier barrel offers

Bar's A tmosphere The atmosphere can also play a big role in consumer's mood – basically if a consumer

feels good in a bar he will stay longer and will order more. In this table we have

described the ambiance of the Stormies and 2 competitors: we have put in blue factors

which influence positively our target (feels at ease and consumes more) and in red the

factors which could be improved.

Stormies Competitors 1 Competitor 2

Light Soft and warm light but clear enough to read

Dark light with coloured spot Soft light

Temperature Air conditioned but not too cold

Air conditioned but not too cold Air conditioned but not too cold

Odor Small food odor because the bar has also a restaurant

Tabaco odor No odor

Decor Chic but casual decor , quite personalized with paintings , blue sits and woods on the wall. One TV in the bar. Bar decorated with lots of sport trophee

Black wall and black sit, nothing on the wall

Metallic - zinc seat and table, not very chic

Music Playlist - The music is pop

rock-quite loud but you can

ear people talking

There is music outside of the

bar as loud as inside

Music very loud, hard to talk, hip hop music

Music not really loud, easy to talk, but perturbed by the other bar's noise

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

crowded There are a lot of people inside the bar but more outside the bar – it's difficult to enter the bar or even to see the entrance ! But it also show that this bar is famous and may attract people

Bar very crowded, not a ot of people at the entrance because most of them are on the dance floor

People have all the place to seat, there is no empty place. The space near the counter is really crowded

co-consumers People are all businessmen/women, well dressed, around 30 years old

Businessmen / women but also a lot of younger people (around 20 years old)

Businessmen and women, couples, more than 30 years old – not so well dressed

Place of the bar

In the middle of lan kwai fong, just at a corner (more place outside for people). Small bar without terrace

The bar is more off center than the Stormies even if he's in Lan Kwai Fong tooThe bar is quite big but there is no terrace.

Middle of Lan Kwai Fong. Big bar and big terrace

Place of the counter in the bar

In the middle of the bar The counter is in the middle of the bar

At the entrance on the left – large counter leaning the wall

Seats and table

There are not a lot of seats (5 tables). Tables and seats are high so people can either sit or stand near the tables. No table outside of the bar

Not a lot of table, tables are leaning on the wall, they are high

Lots of table outside on the terrace, table and seat are high

Dance No place at all for dancing Big place for dancing in the back of the bar

No special place for dancing but still some place where people can dance

The atmosphere is a big part of the Stormies' success: in the table above, we can see that

most of the features have a positive influence on the purchase behavior. Thanks to the

warm light and the personalized decoration customers feel at ease, most of the customers

are all from the same segment which make it easy to engage in conversation, the music

fits totally with our target, the emplacement in the street is practical to gather people and

the layout of the bar makes people order easily. Problems come mainly from the size of

the bar: people cannot sit, the entrance is crowded. But in fact the Stormies managed to

turn it into advantage: they put fan and music outside so that people have more space and

feel at ease in the bar as well as outside the bar; Stormies' waitresses even take order from

outside. Finally people have spent their day working in an office and like to be drink

outside.

Situational influenceSurveys have shown that few minutes before ordering, people don't know what to drink.

It is the same assessment for the reordering: when people come into a bar they don't

know how many drinks they are going to order. Even if our target usually knows what it's

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

going to drink and has its habits, situational factors may influence the way it purchases.

Co-consumer Influence

Co-consumer Influence

Friends Our target will be more likely to drink a lot and stay longer with friends or to pay round.

Co-worker Our target is more likely to leave early after one or two biers.

boy/girlfriend Our target would like to sit, stay longer, not drink a lot but maybe quite expensive alcohol (wine, cocktail)

It seems that friends are the most profitable influencer cause they drink a lot and quite

fast, a way for the Stormies to attract more groups of friend (than boy/girlfriends for

example) would be to offer a drink to the person which orders a round for all its friends.

Ordering a drink : time influence

When it comes to purchase, waiting time really matters. In bar our target would have to

let their friends and stop conversation to order a drink at the counter. He may take time,

demand effort to catch the barman's attention. On the other hand, as our target is used to

this bar it will find easily the barman and order will take less time. Furthermore our target

knows a lot of customer in the Stormies so he generally finds someone to talk with when

he's waiting. Our observation shows also that the queue in the Stormies is not very long.

Indeed to improve service's rapidity, Stormies' waitresses are taking order outside to

avoid people to queue at the counter.

A good way to improve people's feeling toward queuing to have a drink would also be to

ask barman to serve drink and to make cocktail in an attractive way, to placard recipe or

more decorations on walls...

Price, Offers and « promotions »

Stormies' prices are more expensive than other Lan Kwai Fong's bars. Normally it should

influence consumers, however our target earns a lot of money and doesn't pay too much

attention to price: they don't look at the menu before ordering, they sometimes pay for

other people and they pay after each drinks so at the end they don't know how much

money they have spent.

In this bar there is no special offer, only on Thursday for girl there is the «  Ladies

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

night » : the Stormies as well as other bar give free cocktails to women. This offer tend to

be the normal trend in most LKF's bar, however some bars offer every kind of drinks to

women on thursday. These are more crowded on Thursday and tend more to compet with

the Stormies

We don't think our target is influenced by price promotion (for example tonight tequila

shot are half prices) but special offer can make our target consume more : if our target

sees an offer for two beers, even if it doesn't care about the price, it may order 2 biers

even if it needs and wants only one.

Increase purchase's number and spontaneous purchase

As said bellow, our target might change its mind just before ordering, that's why the bar

should do everything to ensure that our target will change his mind to a more expensive

drink. The second point is that the number of purchase can be influenced by the bar.

Currently, the Stormies shows just great bootle of expensive alcohol in order to make our

target want to purchase this kind of alcohol.

But it could also communicate on special cocktail, brand, etc. For example some bar have

advertising sticked on their table, use branded beer mat, put some drink advertising on

TV instead of classical advertisings, put brand on their waitresses' uniforms (Tiger beer

dress).

Concerning the purchase's number, the Stormies is taking advantage of the situation. As

people standing up cannot put down their glasses or bottle we have observed that they are

more likely to drink faster. This is actually a good thing while around 70% of the

Stormies' customers have to stand up outside. For people seating, barmen have to care

about empty glasses and remove them from the table as soon as they are empty. Indeed

people won't stay in the bar without any glasses on their table and will either order

another drink or leave the bar and let the table free for other people.

D. Post - purchase issue In this post-purchase issue analysis, we are going to determine what’s the consumer’s

perception of the Stormie’s service once he has consumed it and how is it formed. In a

bar, we almost use our five senses to appreciate the quality of the place: The sound, the

tastes of the drinks, the light & décor, the quality of the material use for the bar and the

smell (witch can be negative is the smell of cigarette is too strong, or positive if it is a

well known bar for cigar’s smokers.) But if we look beyond this explosion of senses that

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

a consumer experiment when entering in a bar, what determines whether the consumer

will be satisfied with our product? Witch brings us to the second question, what are

customer needs & expectations? And finally, are we able to meet those needs and

expectations?

Determinants of consumer’s satisfactionWhat are customer needs? Classified by importance:

A place to spend time with friends & meet new people

1. Music is the key element that attracted customers to the Stormie’s. There are

two main effects that their play list enable : The direct effect is that the

customer will be please to hear music he appreciate and remember him his,

and the second effect is that he will expect find in this place people who are

more or less on the same wavelength, because of their musical tastes.

2. Co-consumers: It is easier for foreign people to meet and become friend with

people in the same situation as them, because when people live in a foreign

country they have to build up again a network of friends and they are much

more likely to make new friends when going out.

3. Drinks: Foreign business people expect from an “expatriate oriented bar” to

have the variety and the knowledge to offer them the drinks they use to drink

in their country of origin. (cocktails, wines & specific alcohols)

4. Décor, sound volume & light: Those are elements witch the consumer do not

notice but appreciate, it creates an ambit pleasant to consume & spend time.

Does the storming bar answer well to the customer needs?

1. Our bar is “western” customers oriented: The music & the décor appeals to

western countries. And it is also oriented to >35 years customers, because the

music is “retro”. This strong identity allows it to attract a lot of foreign

businessman, and the bar benefits form the snowball effect.

2. We can say that the Stormie’s succeed in satisfying all the senses of

consumers, because theirs drinks are goods, there is enough light to move

easily through the bar and the décor is adapted to every culture, the music

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allow people to speak with each other and appeals to the best times of their

youth, the bar is clean and with quality materials, pleasant to touch, and the

place is very well ventilate, to avoid excess of cigarette smells, and there even

are ventilator airing the street for consumers standing outside.

In conclusion, we can say that, by answering both senses & social needs, the Stormies

succeed in satisfying its customers. But there are externals factors that the Stormies can

hardly avoid / control witch can damage consumer’s satisfaction:

Threats to consumer satisfaction

As the stormies have small place to welcome its consumers, when people flock to the bar,

almost 60% of customer have to stand out of the bar, on the road. Shortage of space

brings 3 problems:

If it starts to rain, consumers may become very upset

When people start to leave LKF, the Taxi doesn’t stop disturbing

consumers.

It is very difficult to enter into the bar and reach the counter.

What solutions can the bar adopt to counter those negatives effects?

offering big umbrellas when it rains

Ask to the town council to let enter taxi into LKF only after midnight,

when the flock of consumer is gone justifying with safety reasons.

Hiring more waiters to allow consumer to order without having to

enter into the bar.

Will the consumers come again?

Does the price paid for the service meet his psychological price?

People from different background have different psychological prices, young people

compare to seven / eleven prices and think that the price is expensive and for the western

businessman might compare with the bars in their country of origin, and in most of the

cases, the price is very close, maybe a bit lower.

What factors can push him to come / not come again?

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

1. Friends: if one of the customer’s friends doesn’t like the bar, he will ask for

the whole group of friends to go to another place. How can the stormies

encourage friends groups to come again: Special promotion offer: when a

friend offers a drink to all his groups of friends he gets a free drink, or he can

choose the next song.

2. Weariness: People might find very repetitive to go always to the same place

with the same people and may want to discover new bars and see new parts.

Stormies can avoid weariness by moving the furniture, by suggesting new

drinks to try (the “new” drink of the night: kind of barman’s special

innovation), by keeping attracting new consumers, to allow people to meet

different people (If someone bring one friend for the first time, he get an extra

cocktail for example). Inventing Special nights themes: it exist lady’s night

on Thursday, they may can make a “Pod-cast night” (people voting the song

they want to hear when ordering), or other themes.

3. But we also have the opposite effect of weariness, meaning that when people

get use to go there, they will want to be there even more, because they feel

like at home. We can improve this by developing personal relationship with

customers, if a waiter sees that a customer come very often, he might try to

make him feel special. Meaning when he will come with his friends, his

friends will notice that he is an important customer for this bar, and he will be

more prone to bring friends and to motivate people to go to the stormies

4. If people have an excess of this lifestyle, going out, meeting new people each

night, they might reject this behaviour, and feel that they are not building

anything.

Does this person tell others about his/her experiences & influence their decisions?

People are generally proud to say that they have an active social life. And going out,

spending time in bars, meeting new people and having good time with friends is seen as

socially healthy.

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Mark242 The Behaviour of Consumers at bars in Lan Kwai Fong

If they have a good time in the bar, then customers when they will talk about their week-

end, they will mention the bar as a good place to be. Also when they will be dating with

friends, their friends will be grateful to discover a new good bar. But if they had a bad

experience with this bar, they may convince their friends to go somewhere else when

deciding witch bar they will spend their night.

Conclusion

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