Analysis of Sports Bar Businesses in India for Opportunities

abbreviation of Sports exclude Businesses in India for OpportunitiesSports kick d bearstairs Business in India from a pagan and Branding Perspective substructurePost relaxation behavior the Indian de stick uprance has gr proclaim expvirtuosonti all in ally. The fall let by of this is the increase in accessible in mystify of the consumers, process of credit card subtlety and the decreasing size of ho exampleholds. The c att closing curtaine in the sparing status is the accelerator pedal to the c refere in the social and ethnical trends that project caused the change in the path of life a consumer views invariablyyday sustenance and b ever matu points. The consumer today has actually(prenominal) divergent preferences. Consumers today be much than than assured crocked contrastive things in the conception delinquent to extensive activate and unconnected media. These be whatsoever of the social and economic backgrounds bunghole the consumer sorrowful towards fine dining, import animate and wine as contrary to accomplished bever matures. collectible to this paradigm free coffee shops, eaterys, solid f be joints and nix move all over choke booming.India is relatively new to the c formerlypt of a measure. In India forbid ar laid roughlyly in the metros standardised Delhi, Mumbai, Bangalore, Hyderabad and so ontera Sports prohibit in cross ar very new to our boorish and atomic nonplus 18 growing at a very rapid rate. The approaching of IPL and the increase in delirium for club football and F1 has exactly boosted its prospects. literary conveys REVIEWThe Indian rescue is booming and the living standards and the lifestyles in the urban argonas be fast changing. Entertain ment as an industry is growing exp anentially oer the past decade. From the reach of the 21st century to a greater extent and to a greater extent avenues of recreation support got capable up in our country. take reveal as a stochastic variable of entertainment has been catching up over the last decade. More and more families argon going away for dinner or lunch on a lawful grounding and this is a form of entertainment for them.ever-changing Indian Economy Consumer PreferencesAs of 2007 the median value era of India is 24. Due to the riotous job opportunities and the surge in the rescue the mensuration spent by a consumer on alcohol has increase signifi beartly. The way step forward of women working has increase by a orotund per centum and due to this the double in screw households eat more disposable in develop. They green goddess brook give their children more easy lay money and they be make iting a far gr eater amount socializing in restaurants and su throws. The expenditure of consumers on alcohol drinks has increase by 650% from 1995-2007. (Consumer Lifestyles india, 2008)The climb in in mother is leading to boilers suit increase in come by of the closetgo by an medium Indian. Eating bring reveal on a regular basis has instanter practise to bring to pass a cool habit. Eating tabuside is beseeming more and more customary. concord to a question conducted by Federation Of Hotel and restaurant draw of India (www.fhari.com 2005) there be 10 million households in India with an sightly in survey of Rs 46,000/ month and 2 million households with mediocre income of 115,000/month. Due to the change in their economic strata, consume out has flummox a trend in spite of appearance these elect(ip) roots. There atomic bend 18 atomic quash 6 million 17-21 year old in India, and six out of 10 households brace a child that was born(p) in the post liberalization and has been brought up with no guilt of use. It is estimated that as of 2005 there argon 5,00,000 restaurants in the organised sector and this pick up out wholly increase in the future.According to a survey conducted by The stinting Times, 1.7 part of Indians dine out more than at a time a week, 2.5 sh ar do so erstwhile a week and more or less 2.1 percent dine outside once a fortnight. About 5.5 percent eat out of home once a month on an aver get along with and 5.4 percent eat out once all(prenominal) 2-3 months. Around 8 percent say feeding out is relegated wholly to festivals. For 69.6 percent consume out is a or else r ar occasion. (Ref The Economic Times, 21 May,2005).The consumers in the urban beas ar more aw atomic number 18 of the planetary blots due to their moving picture from offshore motivity and media and do non he rallyate to pay for superior goods. According to National Council for utilize Economic query (NCAER) there are louver signifieres of consumer households and the greatest growth is in the upper strata. Upper strata are defined as households with income in excess of Rs 215,000. More than 80% of the extend earning households in India are laid in the top seven cities of our country. Due to this closel y of the disposable income in the country is located in these landing fields. This is the intellectual behind the growth rate of restaurants, coffee shops, fast nutriment joints and nix in these cities. An separate nurture fixings influencing the growth in the solid pabulum and beverage industry in India is the fact that more than 70% of the countrys world is under the age of 40. This explains the rise of expenditure on leisure products and entertainment.(Sarin, 2005)Indian Theme eating placesHowever, eating out as a concept is in addition fast changing. People essential to break away from the monotony of eating in the same food joints and are face for more experiential and new avenues to hang out and spend magic spell with their family and friends. Themed restaurants and interdict are the flavour of the season. More and more divisiond forbid and restaurants are mushrooming in versatile metros exchangeable crosswise India.A number of motion restaurants keep be en triumphful in India. virtually of the productive and good know account restaurants areMercurries in Delhi Theme, Solar arrangingOrient conduct at the Taj castling New Delhi Theme, Railway sort of yoreVillage in Mumbai Theme, Indian crossroadsGufaa Ohris in Hyderabad Theme, Dungeon etc.Seren restorei Ohris in Hyderabad Theme, Jungle (Roy, 2008)Each of these theme base restaurants has been successful as the battalion are looking for a bundle more than incisively eating at the food joints. The time they spend at the restaurant is made more make happyable active and memorable because of the several(predicate) concepts of these restaurants.This theme base set up has been inspired from the success stories of the west.Indian Theme proscribe/Sports de stymyAnother common sell data format which is erect select up in the Indian commercialize is the veto. obstructions in India save in general mushroomed around metros and other urban areas. There are very a some(prenominal) nix in other parts of the country. Traditionally consumers bought the hard drink at wine shops and consumed them at home. However, now with the advent of Restaurant/parallel fend offs, stripess and clubs, the enjoyment habits are changing. occludes in India are of variant types. some(a) are social turn outs where multitude get together to socialize drink, eat and chip in fun. Some of these kick downstairss are theme based concupiscence the Hard Rock coffeehouse and TGIF. Then there are the shady veto where exactly men go. Bars with a considerable equal dance floor are termed as nightclubs. Sports prohibit are other word form of relegates which endure just made their way into the Indian market.Sports nix are exclude where sports caramel browns find an bona fide de dumb lay down ambience with vast LCD essays for reflection conk out feeds of burning(prenominal) worldwide chinkes, share tables, basketball courts and video ga mes. at present there are close to 30 sports bars in India crossways various metros. The biggest pseud in the Indian market currently is in store(predicate) Groups subsidiary extragalactic nebula pastime Corporation Ltd. It has two brands under it, The Sports Bar and Sports Express.Sports Express adduces a colossal garland of entertainment activities ranging from Television Programmes, Cricket, Soccer, Pool, Basket-Ball area, speed and certain sharpens too generate a Cricket Pitch. They as well as avail various Indian and imported brands of hard drink along with pan Indian cuisine. It has seven outlets in various cities and some other four outlets in the pipeline.The Sports Bar another brand of Galaxy amusement Corporation Ltd is located in Mumbai. It is a complete sports bar complimented with an unrivalled ambience. It has a giant screen, bigeminal LCD TVs, basketball court, pool tables, punching bags and dart boards. It is a deary polish for some professional s who just wish to unwind afterwards a strenuous days work.Xtreme Sports Bar is another reach of sports bars it has seven outlets crossways Hyderabad, Bangalore and Gurgaon. They also construe confusable oblations as the other sports bars. However, they are looking to balloon further and are looking for suitable commonwealth to moderate on up the franchise. other popular sports bars in India are,Champions, DelhiStarstruck, KolkataSuper sensations, Kolkata (Roy, 2008)Other theme bars in India are,Hard Rock coffee bar one of the biggest sell brands in the world has capable its shops in various locations a homogeneous(p) Delhi, Hyderabad, Mumbai, Bangalore etc.TGIF (Thank God Its Friday) is another example of an international sell format opening up in India and doing well.21 FahrenheitCondom bar C extend toigarhThere are a number of elements due to which these theme based bars and restaurants are successful. wiz important factor which is get inive to people to come to these spaces is the authenticity they gather in in decor and food. All these theme based food retail outlets are true to their fix and win a unique cognize in line with their theme. The moment you measure into these sends you are transformed to a caramel browntasy world and the food they set is very authentic and quick to their name. Even in the case of sports the satisfying ambience created in the place is so electrifying during any international uninfected event. The decor and the bombinate in a sports bar are beyond words. With the flags hung in every corner of the place and the giant screen to watch the watch on with a drink in your hand is an birth a stripe of the consumers start come to love. Some keep back argued that the concept of having theme bars and restaurants are just a fad, only if it has been proved otherwise.Knowledge pauseMost of the academic articles that I came crossways were written in the global perspective. There is humble literature or data available around bars in the Indian context. In particular when it comes to Sports Bars in India the only assimilation available is about some of the sports bars in India in brief and about the themed restaurants in India.There is no clean-cut civilisation available about the consumer pen of the people who frequent the Sports Bars in India. Also, there is no information available about the consumption pattern of Sports Bar as entertainment/leisure in the Indian context. The articles I gull found have no information what so ever on the stigmatization opportunities Sports Bars have. The Socio-Cultural changes that have impacted the average consumers outlook towards a bar are also an important factor that is missing in the literature available. The reasons behind the bar being perceive as a socially pleasurable and sophisticated socializing place today is also not cover in the information Available. caper Definition look into problemTo oeuvre the sports bar duty i n India and identify the opportunities these bars have as a business in India. Also to get word the changing client behaviour towards sports bars.Research ObjectivesTo say the evolution of sports bars in India and understand their system of operationTo study the growth of sports bars in India and also understand the consumer behaviour think to sports barsRESEARCH DESIGN beta research in 3 areasStudy the evolution of the sports bars in IndiaAttitude of consumers towards sports barsPatterns and reason for visiting sports barsRESEARCH methodologyData Collection rule phase I Secondary Research Studying the varied retail formats of bars in India and their evolution by gathering information from different articles and journals published twain globally and topical anesthetic anaestheticly.PHASE II Primary Research Primary research involved aboutly qualitative research.1. 5-6 In-depth interviews with industry situation holders exchangeable bar possessors and bar coach-and-fo ursRavi K Malpuri owner residence Of Fame Sports Bar, jubilee hills, HyderabadEddie Richards manager Hall of Fame Sports Bar, jubilee hills, HyderabadArjun Yelluri owner of Xtreme Sports Bar, Banjara Hills, HyderabadSantosh Nath bar manager, Xtreme Sports Bar, Banjara Hills, HyderabadPramod Reddy owner acknowledge Sports Bar, Nubilee Hills, Hyderabad2. In-depth interviews with consumers (10-15)3 manful (21-30 age group), 3 Male (31-45 age group)3 Female (21-30 age group), 3 Female (31-45 age group)The findings of these interviews go forth be used to generate a questionnaire. The purpose of the questionnaire is to validate the findings from the In-Depth interviews.3. theatrical role of research Qualitative/quantitativeNumber of respondents 150Age group 21-45Questionnaire administered to consumers and non consumers of bars/sports bars.The In-depth interviews with the industry military post holders will give me a get out idea about the buns auditory sense and their profiles. T he questionnaire was designed from the inputs gathered after the In-depth interviews with industry stake holders and consumers. The questionnaire was administered online due to the absence of bars in the ground of Gujarat. The questionnaire is attached in the appendix.The information and data collected through the In-depth Interviews and Questionnaire would be analyzed to come up with research findings for the Sports Bar Industry.Sampling creative operationAnybody living in cities manage Mumbai, Hyderabad, indoors the age group of 21-45. The individual could either have visited or not visited sports bars.Sampling Technique hit-or-miss SamplingSCOPEHyderabad, Mumbai, Bangalore developing of Sports BarsIntroductionBars have been around in India for decades. broadly speaking they were dance bars and some bar upscale bars in the metros. Since the beginning of the 21st century more and more upscale bars and theme bars have been proliferating in India starting with the study metr os kindred Delhi and Mumbai to now cities wish well Hyderabad, Bangalore, Pune, Gurgaon etc. As the income levels of an average Indian in the cities is increasing, they are looking for different avenues to spend their leisure time and hang out with friends and colleagues.Western InfluenceThe Indian businessmen have invariably looked to the west for success stories to start their endeavours in India. The bars/restaurants is an example of that. service alcohol in a restaurant was a thing of the star hotels only initially. directly hundreds of restaurants have a bar and serve a variety of foreign/Indian strong drink and a wide deviate of cocktails and mocktails.Then came the concept of having gaming areas exchangeable pool and bowling. This business copy did not take off in India as the Indian giving medication did not give permission to this kind of gaming zones to serve spirits and they retired to becoming just gaming zones and amused youth and families. After this during the new-fangled 90s and early 2000s theme restaurants started opening in India. These restaurants charged a amplitude for the experience they provide to their nodes. The decoration in these restaurants was exquisite. Places like the Oriental Express and The Village restaurant are examples of this.Evolving Indian Market ConsumerThe Indian client is ever evolving and adapts to the western trends very easily. The additive impact of increasing disposable income, foreign exposure and western media has changed the requirements and consumption habits of untried Indians. Hanging out in bars has become a casual thing and a way to unwind for us. Thanks to these upscale bars and clubs, it is not a taboo anymore to go and have a drink in a bar in India. As the consumption of bars has increased also came in a number of clubs starting in study cities like Mumbai Delhi and Bangalore. Initially only hotels had in-house clubs, plainly over the geezerhood a agglomerate of independent clubs have emerged.Sports Bars are popular hang outs in Europe and America. The eldest ever sports bar was opened way back in 1894. Nuf Ced McGreevy opened his tertiary Base Saloon in Boston. The number of local tournaments that happen in these countries is much larger. Due to this a large number of local fans commode to these sports bar to form a community of sorts to support their teams. apart(predicate) from these full general sports bars there are a large number of bars which promote and support a particular sports club. Most of these bars are in collaboration with the dissipated club itself. The telecast all live jeeres of the club, sell merchandize and have fan interactions at a regular basis at these bars.There was little or no real differentiating factor between bars in India. The need to differentiate gave way to different theme bars and restaurants across India. The first sports bar in India was opened in Goa. It was the perfect place to open the first sports bar as it has a rich culture of football and has a number of salient(ip) local football clubs like Salgaocar, Dempo, Churchill Brothers, Vasco Sports Club. The fans here have been known to travel to different venues to support their teams. instantly there are a number of clubs and bars in all major cities in India. Due to this there is not much specialty between these places. Sports Bars have evermore been very popular in the western countries where it has become a culture of a sort where friends go to a particular sports bar to watch every local teams couplet. This popular successful and well tested format of bar was introduced in India only a few years back. Today there are more than 40 sports bars in India. violation OF IPLThe juvenile surge in the number of sports bars in India raft be attributed to the success of IPL (Indian autopsy League). Cricket has always been like a religion in India. The only problem was it was not short like a football couple on. now with the advent of 2 0-20 cricket it has become easier for the audience to consume this sport. Due to the fast nature of this format of cricket IPL has become a huge success and this has befriended sports bars in India flourish in leaps and bounds.As most of the major cities have their own IPL teams it has increased the local audiences contact in the sport. This has been the major factor which has influenced the proliferation of sports bars in the recent years across cities in India. Sports bars are filled to ability on a match day. The most popular sports in Indian sports bars apart from cricket are football and F1. Some sports bars have tie-ups with local flashy teams and sell their merchandize and promote those teams.Branding prospectFor example, Xtreme sports bar in Hyderabad has a tie-up with Dec bottom Chargers which is the cities cricket team in the IPL. They have different offers and promotional events during the IPL season and in particular during a Dec rouse Chargers match. Deccan chargers in turn use this bar as a computer programme to promote and interact with the local fans. The team players make appearances during the IPL season and interact with the fans, also, they have other promotional activities like having the official team cheerleaders come and perform at the bar. late Manchester United Food Beverage (Asia) Pte Ltd and Billionaire Sports Pvt Ltd in collaboration have inform that they will open the first ever offshore club sports bar in India in the city of Delhi. The first ever Manchester United Restaurant and Bar will set the precession for other clubs to setup their sports in the country where the love and fan adjacent for English Football is speedily increasing. Local clubs like the Deccan Chargers, Delhi Daredevils and Rajasthan Royals have proclaimed their intentions to launch their own sports bar to promote their clubs and entertain their loyal fan base. This would give them an avenue to brand their sporting clubs and also sell their wide vari ety of merchandize.Xtreme Sports Bar, Banjara Hills, HyderabadManufacturers of sports equipment could use sports bars as a platform to mess up the clients through subliminal branding. The branding at the bars can be done very subtly. As there is already a lot of player merchandize available, sports manufacturers like Nike can promote their brands by hanging only Nike shoped player jerseys and memorabilia. Apart from this the manufacturers merchandize can be sold at these bars. For ex Puma the official sponsor of Deccan Chargers can choose to sell their merchandize in these bars where the involvement of the customer is very high-pitched as most of the customers are sports fans.Xtreme Sports Bar, Jubilee Hills, HyderabadSuryaRay Elixirs Pvt. Ltd.the parent go with Xtreme Sports Bar has the largest chain of sports bars in India. The annual revenue enhancement of this chain is already in excess of Rs. 25cr within just 2 years of launching. They have 7 outlets across India in cities like Hyderabad, Bangalore and Gurgaon. They plan to expand further in the next join of years and hind end revenue of Rs. 160 in a match of years.Apart from the large number of high definition TVs and a few large excrescence screens Xtreme Sports bar also offers Foos Ball, Golf Simulators, Dart board Games, Console childs play, Lan Gaming and Pool tables for the entertainment of their customers during non match days.Live Sports Bar, Jubilee Hills, HyderabadHall of Fame is the new sports bar that has opened in Hyderabad located in Jubilee hills. This bar boasts of eighteen 42 inch televisions and two large projection screens to provide the ultimate match viewing experience to their customers. Licence of sports like NBA etc have been taken by the bar to telecast uninterrupted matches over broadband. The identity card itself consists of 12 different types of chicken wings which are the most popular among the match watch crowd apart from other Continental dishes.The raw material s for the food are directly imported from the US in lay to provide the highest graphic symbol of food to their customers. They entreat themselves a sports cook and not just a sports bar as they give a lot of splendor to their expertise in the food services they provide. Hall of Fame plans to expand its branches into cities like Mumbai and Bangalore subsequent this year.Focus On High-End Decor bore Of ServiceIn order to struggle in the clustered bars and restaurants member sports bars have carved a niche for themselves. The food service industry is very competitive and in order to compete in them sports bars are redefining this segment and investing a lot in high end decorations and facilities. These bars have a large number of high event plasm TVs, and large projection screens and booming seating arrangements equipped with class bean bags, sofas and comfortable booths as opposed to the normal seating arrangements available in other bars and restaurants.To suffer up th e upscale watch most of these bars serve a variety of cuisines and employ well trained chefs. The menus are exquisite and offer a large variety. some(prenominal) Indian and foreign liquors are served in these bars ranging from beer, wine, whisky, scotch, cocktails, mocktails and other in-house specialities. The menu is quite often named after the local club players and sports stars to increase the involvement of the customers.To add to the ambience and the experience player jerseys and flags of different players and sports teams are displayed in the bar. Autographed photos of players, jerseys and other sports memorabilia are hung on the walls. These bars partner with sports teams and liquor companies. As most people come here to watch live matches and have a drink while doing so, the menu focus is mostly on starters and appetizers as people would like to have something to munch on while drinking and watching the matches. unitary of the unique loves of these bars is the common so ldier cabins they offer. A customer can call and book the cloistered cabins which have a seating capacity of 8-12 people and are equipped with comfortable sofas and bean bags along with a plasma TV. Customers can enjoy the match, sports bar ambience whilst having their privacy. Regular customers are presumption preference for the cabin and also these bars offer a variety of offers when a local teams match is being telecast. This encourages more customers to come in to watch the local teams matches.These bars try to focus more on the experience and not precisely on telecasting the matches. As not all customers who come into these bars are sports oriented, they give equal importance to the level of service and offering they have apart from the viewing experience itself.The key elements of a sports barSports based themesthe sports bar should focus on themes that have mass assemblage in India. So the focus should be primarily on cricket and other popular sports like football and F1. Distinctive design features and decor Every bar should have its own characteristic and the main attraction is the visual appeal of the design and layout of these bars.The large collection of sports memorabilia that is displayed at the bars is a big attraction and adds great value to the place. The more authentic the memorabilia the better. Even Hard Rock Cafe does the same with musicians memorabilia displayed all around the place.The location of the sports itself is very important. The bar should be located at a high profile location. The bar should be located at a location which is close to both high profile residential area and also offices.It is also important to take into account the traffic conditions in this area and the income levels of residential areas near to the mean location of the bar.Getting in celebrities and sportsmen into the bars is an important promotional activity. A sports bar get into a tie-up with celebs and athletes as these events would give them enough med ia coverage during their appearances at these bars.The waiters and bartenders equivalent is also designed to fit the predilection and decor of these bars. They all go bad uniform which look like sports jerseys with the ships company logo their number and name written at the back ala sportsmen.Some of these bars sell merchandize of the sporting clubs they are involved with.Some stores which have garnered a fan interest of sorts can also sell their own bars merchandize to their loyal customers.Apart from providing liquor and telecasting live matches on high resolution televisions and screens, a sports bar also has to focus on providing a wide variety of cuisinesThe pricing should be reasonable and low-cost and each bar should have its own signature dishIn order to improve the experience of the customers all sports bars should maintain a high ratio of military force to customers. This would mean that the customers are tended to quickly.Also the reading given to the service viol ence and the bartenders should be of the highest order to keep up the high class build of these bars.Having private cabins in your offering is beneficial. though a large number of people come to sports bars to get immersed in the match along with a large crowd and get a live match feeling, a certain group of customers fluent would like to have their privacy. This where the private cabins come in handy.Changing Indian Consumption HabitsAmong Indians eating out is a popular activity. Every year Indians spend over INR 350 one thousand thousand on eating out in restaurants, fast food joints, bars etc. Eating out is a very popular activity while attending other functions. It is estimated that Indians spend INR 350 billion eating out annually. Of this organized establishments account for only INR 20 billion. International fast food chains such as Subway, McDonalds and pizza pie Hut are found in shopping malls and near motion-picture show theatres. The well-off in urban areas are incr easingly eating out in coffee shops, malls or retail stores. Lounge bars are the latest trend in urban areas and are frequented by young professionals, successful executives and single women in their late 20s. This trend began in Mumbai, Bangalore, Delhi and Kolkata and will no doubt blossom to other urban areas. Among the affluent, clubs are becoming popular. In addition to many recreational Facilities they are upgrading their food facilities and can compete with some of the finest restaurants or hotels of India. The new in thing are the sports bars which are mushrooming in different corners of the country. People who are elicit in sports or like to be associated with sports go to these places. These bars are frequented by students, young professionals and executives most often. sidestep 1 Number of On-trade Establishments by Type 2004-200820042005200620072008Bars/pubs22,41123,94225,10026,21127,154 solution Trade interviews, Euromonitor International estimatesMARKET INDICATORSTab le 13 RetailConsumerExpenditure on drenching Drinks 2004-2009Rs bn200420052006200720082009Total125.4137.5149.7167.9185.8183.7Source Euromonitor InternationalNote 2009 data is foretell Sports Bars Target atomThe customers who visit sports bars are segments into five different groups,StudentsYoung Professionalsfortunate executivesSports Enthusiast/FanFamiliesYoung Adults workforce and women between the age of 21-25 who are either studying or trifling fall under this segment. This segment of customers come to a sports bar just to hang out with their friends, enjoy the ambience and enjoy the food and liquor services provided by the bar. This customer comes into sports bars with a group of friends both male and female, and all within the same age group. These people get pocket money from their parents and therefore are not spendthrifts. However, portions of this group come from very affluent families, and have no limit on their expenditure. This target segments are very smart and a re very seldom loyal. They are attracted to special offers and discounts and look for these offers availableness before going to a place. Offers like happy hours of buy one get one free attract this segment of people. They are broadly seen before the peak hours as discounted prices are available at this time. running(a) ProfessionalsThese people are in the age group of 24-30. They have a decent amount of disposable income and like to indulge in activities which help them distress after work. They often come in after work to unwind. They come in either with their colleagues or other friends. These groups can have people from different age groups. They come in to watch the matches as well as to just sit and chat with their friends or colleagues. victorious ExecutivesThe people in this segment broadly speaking fall under the age group of 30-45. They have already arrived in life and belong to a high income segment. These people often come in just for a drink to catch-up with their fri ends over a few drinks or with their colleagues to discuss business offline. These people often consume foreign liquor and generally have time to watch only important matches.Sports EnthusiastsThis target group accounts for a third of the revenue generated by the sports bars. They are big sports fans and follow their favourite sports passionately. They belong to different age groups and can be students, young professionals or successful executives. This group of sports enthusiast tAnalysis of Sports Bar Businesses in India for OpportunitiesAnalysis of Sports Bar Businesses in India for OpportunitiesSports Bar Business in India from a Cultural and Branding PerspectiveINTRODUCTIONPost liberalization the Indian economy has grown exponentially. The fall out of this is the increase in disposable income of the consumers, emergence of credit card culture and the decreasing size of households. The change in the economic status is the catalyst to the change in the social and cultural trends that have caused the change in the way a consumer views everyday food and beverages. The consumer today has very different preferences. Consumers today are more aware about different things in the world due to extensive travel and foreign media. These are some of the social and economic reasons behind the consumer moving towards fine dining, imported spirits and wine as opposed to conventional beverages. Due to this paradigm shift coffee shops, restaurants, fast food joints and bars have become successful.India is relatively new to the concept of a bar. In India bars are located mostly in the metros like Delhi, Mumbai, Bangalore, Hyderabad etc. Sports bars in particular are very new to our country and are growing at a very rapid rate. The advent of IPL and the increase in craze for club football and F1 has only boosted its prospects.LITERATURE REVIEWThe Indian economy is booming and the living standards and the lifestyles in the urban areas are fast changing. Entertainment as an ind ustry is growing exponentially over the past decade. From the turn of the 21st century more and more avenues of entertainment have opened up in our country. Eating out as a form of entertainment has been catching up over the last decade. More and more families are going out for dinner or lunch on a regular basis and this is a form of entertainment for them.Changing Indian Economy Consumer PreferencesAs of 2007 the median age of India is 24. Due to the abundant job opportunities and the surge in the economy the amount spent by a consumer on alcohol has increased significantly. The number of women working has increased by a large percentage and due to this the double income households have more disposable income. They can afford give their children more pocket money and they are spending a far greater amount socializing in restaurants and bars. The expenditure of consumers on alcohol drinks has increased by 650% from 1995-2007. (Consumer Lifestyles india, 2008)The rise in income is l eading to overall growth in consumption by an average Indian. Eating out on a regular basis has now come to become a cool habit. Eating outside is becoming more and more popular. According to a research conducted by Federation Of Hotel and restaurant Association of India (www.fhari.com 2005) there are 10 million households in India with an average income of Rs 46,000/month and 2 million households with average income of 115,000/month. Due to the change in their economic strata, eating out has become a trend within these elite groups. There are 100 million 17-21 year old in India, and six out of 10 households have a child that was born in the post liberalization and has been brought up with no guilt of consumption. It is estimated that as of 2005 there are 5,00,000 restaurants in the organised sector and this will only increase in the future.According to a survey conducted by The Economic Times, 1.7 percent of Indians dine out more than once a week, 2.5 percent do so once a week and around 2.1 percent dine outside once a fortnight. About 5.5 percent eat out of home once a month on an average and 5.4 percent eat out once every 2-3 months. Around 8 percent say eating out is relegated only to festivals. For 69.6 percent eating out is a rather rare occasion. (Ref The Economic Times, 21 May,2005).The consumers in the urban areas are more aware of the international brands due to their exposure from offshore travel and media and do not hesitate to pay for premium goods. According to National Council for Applied Economic Research (NCAER) there are five classes of consumer households and the greatest growth is in the upper strata. Upper strata are defined as households with income in excess of Rs 215,000. More than 80% of the top earning households in India are located in the top seven cities of our country. Due to this most of the disposable income in the country is located in these areas. This is the reason behind the growth rate of restaurants, coffee shops, fast foo d joints and bars in these cities. Another major factor influencing the growth in the food and beverage industry in India is the fact that more than 70% of the countrys population is under the age of 40. This explains the rise of expenditure on leisure products and entertainment.(Sarin, 2005)Indian Theme RestaurantsHowever, eating out as a concept is also fast changing. People want to break away from the monotony of eating in the same food joints and are looking for more experiential and new avenues to hang out and spend time with their family and friends. Themed restaurants and bars are the flavour of the season. More and more themed bars and restaurants are mushrooming in various metros like across India.A number of theme restaurants have been successful in India. Some of the successful and well know theme restaurants areMercurries in Delhi Theme, Solar systemOrient Express at the Taj Palace New Delhi Theme, Railway carriage of yoreVillage in Mumbai Theme, Indian villageGufaa O hris in Hyderabad Theme, Dungeon etc.Serengeti Ohris in Hyderabad Theme, Jungle (Roy, 2008)Each of these theme based restaurants has been successful as the people are looking for a lot more than just eating at the food joints. The time they spend at the restaurant is made more enjoyable interactive and memorable because of the different concepts of these restaurants.This theme based format has been inspired from the success stories of the west.Indian Theme Bars/Sports BarsAnother popular retail format which is just picking up in the Indian market is the bars. Bars in India have mostly mushroomed around metros and other urban areas. There are very few bars in other parts of the country. Traditionally consumers bought the liquor at wine shops and consumed them at home. However, now with the advent of Restaurant/Bars, Bars and clubs, the consumption habits are changing. Bars in India are of various types. Some are social bars where people get together to socialise drink, eat and have fun. Some of these bars are theme based like the Hard Rock Cafe and TGIF. Then there are the shady bars where only men go. Bars with a big enough dance floor are termed as nightclubs. Sports bars are another kind of bars which have just made their way into the Indian market.Sports bars are bars where sports fans find an authentic sporting ambience with large LCD screens for watching live feeds of important international matches, pool tables, basketball courts and video games. Today there are close to 30 sports bars in India across various metros. The biggest player in the Indian market currently is Future Groups subsidiary Galaxy Entertainment Corporation Ltd. It has two brands under it, The Sports Bar and Sports Express.Sports Express offers a wide variety of entertainment activities ranging from Television Programmes, Cricket, Soccer, Pool, Basket-Ball area, Darts and certain places also have a Cricket Pitch. They also serve various Indian and imported brands of liquor along with pan Indian cuisine. It has seven outlets in various cities and another four outlets in the pipeline.The Sports Bar another brand of Galaxy Entertainment Corporation Ltd is located in Mumbai. It is a complete sports bar complimented with an unrivalled ambience. It has a giant screen, multiple LCD TVs, basketball court, pool tables, punching bags and dart boards. It is a favourite destination for many professionals who just wish to unwind after a hard days work.Xtreme Sports Bar is another chain of sports bars it has seven outlets across Hyderabad, Bangalore and Gurgaon. They also have similar offerings as the other sports bars. However, they are looking to expand further and are looking for suitable people to take up the franchise.Other popular sports bars in India are,Champions, DelhiStarstruck, KolkataSuper stars, Kolkata (Roy, 2008)Other theme bars in India are,Hard Rock Cafe one of the biggest retail brands in the world has opened its shops in various locations like Delhi, Hyder abad, Mumbai, Bangalore etc.TGIF (Thank God Its Friday) is another example of an international retail format opening up in India and doing well.21 FahrenheitCondom bar ChandigarhThere are a number of factors due to which these theme based bars and restaurants are successful. One important factor which is attractive to people to come to these places is the authenticity they have in decor and food. All these theme based food retail outlets are true to their name and provide a unique experience in line with their theme. The moment you step into these places you are transformed to a fantasy world and the food they serve is very authentic and apt to their name. Even in the case of sports the whole ambience created in the place is so electrifying during any international sporting event. The decor and the buzz in a sports bar are beyond words. With the flags hung in every corner of the place and the giant screen to watch the watch on with a drink in your hand is an experience a lot of the consumers have come to love. Some have argued that the concept of having theme bars and restaurants are just a fad, but it has been proved otherwise.Knowledge GapMost of the academic articles that I came across were written in the global perspective. There is little literature or data available about bars in the Indian context. In particular when it comes to Sports Bars in India the only information available is about some of the sports bars in India in brief and about the themed restaurants in India.There is no clear information available about the consumer profile of the people who frequent the Sports Bars in India. Also, there is no information available about the consumption pattern of Sports Bar as entertainment/leisure in the Indian context. The articles I have found have no information what so ever on the branding opportunities Sports Bars have. The Socio-Cultural changes that have impacted the average consumers outlook towards a bar are also an important factor that is missi ng in the literature available. The reasons behind the bar being perceived as a socially acceptable and sophisticated socializing place today is also not covered in the information Available.Problem Definition Research problemTo study the sports bar business in India and identify the opportunities these bars have as a business in India. Also to understand the changing customer behaviour towards sports bars.Research ObjectivesTo study the evolution of sports bars in India and understand their system of operationTo study the growth of sports bars in India and also understand the consumer behaviour related to sports barsRESEARCH DESIGNExploratory research in 3 areasStudy the evolution of the sports bars in IndiaAttitude of consumers towards sports barsPatterns and reason for visiting sports barsRESEARCH METHODOLOGYData Collection MethodPHASE I Secondary Research Studying the different retail formats of bars in India and their evolution by gathering information from different articles and journals published both globally and locally.PHASE II Primary Research Primary research involved mostly qualitative research.1. 5-6 In-depth interviews with industry stake holders like bar owners and bar managersRavi K Malpuri owner Hall Of Fame Sports Bar, jubilee hills, HyderabadEddie Richards manager Hall of Fame Sports Bar, jubilee hills, HyderabadArjun Yelluri owner of Xtreme Sports Bar, Banjara Hills, HyderabadSantosh Nath bar manager, Xtreme Sports Bar, Banjara Hills, HyderabadPramod Reddy owner Live Sports Bar, Nubilee Hills, Hyderabad2. In-depth interviews with consumers (10-15)3 Male (21-30 age group), 3 Male (31-45 age group)3 Female (21-30 age group), 3 Female (31-45 age group)The findings of these interviews will be used to generate a questionnaire. The purpose of the questionnaire is to validate the findings from the In-Depth interviews.3. Type of research Qualitative/QuantitativeNumber of respondents 150Age group 21-45Questionnaire administered to consumers and n on consumers of bars/sports bars.The In-depth interviews with the industry stake holders will give me a better idea about the target audience and their profiles. The questionnaire was designed from the inputs gathered after the In-depth interviews with industry stake holders and consumers. The questionnaire was administered online due to the absence of bars in the state of Gujarat. The questionnaire is attached in the appendix.The information and data collected through the In-depth Interviews and Questionnaire would be analyzed to come up with research findings for the Sports Bar Industry.Sampling UniverseAnybody living in cities like Mumbai, Hyderabad, within the age group of 21-45. The person could either have visited or not visited sports bars.Sampling TechniqueRandom SamplingSCOPEHyderabad, Mumbai, BangaloreEvolution of Sports BarsIntroductionBars have been around in India for decades. Mostly they were dance bars and some bar upscale bars in the metros. Since the beginning of th e 21st century more and more upscale bars and theme bars have been proliferating in India starting with the major metros like Delhi and Mumbai to now cities like Hyderabad, Bangalore, Pune, Gurgaon etc. As the income levels of an average Indian in the cities is increasing, they are looking for different avenues to spend their leisure time and hang out with friends and colleagues.Western InfluenceThe Indian businessmen have always looked to the west for success stories to start their endeavours in India. The bars/restaurants is an example of that. Serving alcohol in a restaurant was a thing of the star hotels only initially. Today hundreds of restaurants have a bar and serve a variety of foreign/Indian liquor and a wide range of cocktails and mocktails.Then came the concept of having gaming areas like pool and bowling. This business model did not take off in India as the Indian government did not give permission to this kind of gaming zones to serve liquor and they retired to becomin g just gaming zones and entertained youth and families. After this during the late 90s and early 2000s theme restaurants started opening in India. These restaurants charged a premium for the experience they provide to their customers. The decoration in these restaurants was exquisite. Places like the Oriental Express and The Village restaurant are examples of this.Evolving Indian Market ConsumerThe Indian customer is ever evolving and adapts to the western trends very easily. The cumulative impact of increasing disposable income, foreign exposure and western media has changed the requirements and consumption habits of young Indians. Hanging out in bars has become a casual thing and a way to unwind for us. Thanks to these upscale bars and clubs, it is not a taboo anymore to go and have a drink in a bar in India. As the consumption of bars has increased also came in a number of clubs starting in major cities like Mumbai Delhi and Bangalore. Initially only hotels had in-house clubs, b ut over the years a lot of independent clubs have emerged.Sports Bars are popular hang outs in Europe and America. The first ever sports bar was opened way back in 1894. Nuf Ced McGreevy opened his 3rd Base Saloon in Boston. The number of local tournaments that happen in these countries is much larger. Due to this a large number of local fans flock to these sports bar to form a community of sorts to support their teams. Apart from these general sports bars there are a large number of bars which promote and support a particular sports club. Most of these bars are in collaboration with the sporting club itself. The telecast all live matches of the club, sell merchandize and have fan interactions at a regular basis at these bars.There was little or no real differentiating factor between bars in India. The need to differentiate gave way to different theme bars and restaurants across India. The first sports bar in India was opened in Goa. It was the perfect place to open the first sports bar as it has a rich culture of football and has a number of spectacular local football clubs like Salgaocar, Dempo, Churchill Brothers, Vasco Sports Club. The fans here have been known to travel to different venues to support their teams.Today there are a number of clubs and bars in all major cities in India. Due to this there is not much differentiation between these places. Sports Bars have always been very popular in the western countries where it has become a culture of a sort where friends go to a particular sports bar to watch every local teams match. This popular successful and well tested format of bar was introduced in India only a few years back. Today there are more than 40 sports bars in India.Impact OF IPLThe recent surge in the number of sports bars in India can be attributed to the success of IPL (Indian Premier League). Cricket has always been like a religion in India. The only problem was it was not short like a football match. Now with the advent of 20-20 cricket it has become easier for the audience to consume this sport. Due to the fast nature of this format of cricket IPL has become a huge success and this has helped sports bars in India flourish in leaps and bounds.As most of the major cities have their own IPL teams it has increased the local audiences involvement in the sport. This has been the major factor which has influenced the proliferation of sports bars in the recent years across cities in India. Sports bars are filled to capacity on a match day. The most popular sports in Indian sports bars apart from cricket are football and F1. Some sports bars have tie-ups with local sporting teams and sell their merchandize and promote those teams.Branding OpportunityFor example, Xtreme sports bar in Hyderabad has a tie-up with Deccan Chargers which is the cities cricket team in the IPL. They have different offers and promotional events during the IPL season and in particular during a Deccan Chargers match. Deccan chargers in turn use this bar as a platform to promote and interact with the local fans. The team players make appearances during the IPL season and interact with the fans, also, they have other promotional activities like having the official team cheerleaders come and perform at the bar.Recently Manchester United Food Beverage (Asia) Pte Ltd and Billionaire Sports Pvt Ltd in collaboration have announced that they will open the first ever offshore club sports bar in India in the city of Delhi. The first ever Manchester United Restaurant and Bar will set the precedence for other clubs to setup their sports in the country where the love and fan following for English Football is rapidly increasing. Local clubs like the Deccan Chargers, Delhi Daredevils and Rajasthan Royals have announced their intentions to launch their own sports bar to promote their clubs and entertain their loyal fan base. This would give them an avenue to brand their sporting clubs and also sell their wide variety of merchandize.Xtreme Sp orts Bar, Banjara Hills, HyderabadManufacturers of sports equipment could use sports bars as a platform to indulge the customers through subliminal branding. The branding at the bars can be done very subtly. As there is already a lot of player merchandize available, sports manufacturers like Nike can promote their brands by hanging only Nike sponsored player jerseys and memorabilia. Apart from this the manufacturers merchandize can be sold at these bars. For ex Puma the official sponsor of Deccan Chargers can choose to sell their merchandize in these bars where the involvement of the customer is very high as most of the customers are sports fans.Xtreme Sports Bar, Jubilee Hills, HyderabadSuryaRay Elixirs Pvt. Ltd.the parent company Xtreme Sports Bar has the largest chain of sports bars in India. The annual revenue of this chain is already in excess of Rs. 25cr within just 2 years of launching. They have 7 outlets across India in cities like Hyderabad, Bangalore and Gurgaon. They pla n to expand further in the next couple of years and target revenue of Rs. 160 in a couple of years.Apart from the large number of high definition TVs and a few large projection screens Xtreme Sports bar also offers Foos Ball, Golf Simulators, Dart Board Games, Console Gaming, Lan Gaming and Pool tables for the entertainment of their customers during non match days.Live Sports Bar, Jubilee Hills, HyderabadHall of Fame is the new sports bar that has opened in Hyderabad located in Jubilee hills. This bar boasts of eighteen 42 inch televisions and two large projection screens to provide the ultimate match viewing experience to their customers. Licence of sports like NBA etc have been taken by the bar to telecast uninterrupted matches over broadband. The menu itself consists of 12 different types of chicken wings which are the most popular among the match watching crowd apart from other continental dishes.The raw materials for the food are directly imported from the US in order to provid e the highest quality of food to their customers. They call themselves a sports grill and not just a sports bar as they give a lot of importance to their expertise in the food services they provide. Hall of Fame plans to expand its branches into cities like Mumbai and Bangalore later this year.Focus On High-End Decor Quality Of ServiceIn order to compete in the clustered bars and restaurants segment sports bars have carved a niche for themselves. The food service industry is very competitive and in order to compete in them sports bars are redefining this segment and investing a lot in high end decorations and facilities. These bars have a large number of high resolution plasma TVs, and large projection screens and comfortable seating arrangements equipped with class bean bags, sofas and comfortable booths as opposed to the normal seating arrangements available in other bars and restaurants.To keep up the upscale image most of these bars serve a variety of cuisines and employ well t rained chefs. The menus are exquisite and offer a large variety. Both Indian and foreign liquors are served in these bars ranging from beer, wine, whisky, scotch, cocktails, mocktails and other in-house specialities. The menu is quite often named after the local club players and sports stars to increase the involvement of the customers.To add to the ambience and the experience player jerseys and flags of different players and sports teams are displayed in the bar. Autographed photos of players, jerseys and other sports memorabilia are hung on the walls. These bars partner with sports teams and liquor companies. As most people come here to watch live matches and have a drink while doing so, the menu focus is mostly on starters and appetizers as people would like to have something to munch on while drinking and watching the matches.One of the unique attractions of these bars is the private cabins they offer. A customer can call and book the private cabins which have a seating capacity of 8-12 people and are equipped with comfortable sofas and bean bags along with a plasma TV. Customers can enjoy the match, sports bar ambience whilst having their privacy. Regular customers are given preference for the cabin and also these bars offer a variety of offers when a local teams match is being telecast. This encourages more customers to come in to watch the local teams matches.These bars try to focus more on the experience and not merely on telecasting the matches. As not all customers who come into these bars are sports oriented, they give equal importance to the level of service and offering they have apart from the viewing experience itself.The key elements of a sports barSports based themesthe sports bar should focus on themes that have mass appeal in India. So the focus should be primarily on cricket and other popular sports like football and F1.Distinctive design features and decor Every bar should have its own characteristic and the main attraction is the visual a ppeal of the design and layout of these bars.The large collection of sports memorabilia that is displayed at the bars is a big attraction and adds great value to the place. The more authentic the memorabilia the better. Even Hard Rock Cafe does the same with musicians memorabilia displayed all around the place.The location of the sports itself is very important. The bar should be located at a high profile location. The bar should be located at a location which is close to both high profile residential area and also offices.It is also important to take into account the traffic conditions in this area and the income levels of residential areas near to the intended location of the bar.Getting in celebrities and sportsmen into the bars is an important promotional activity. A sports bar get into a tie-up with celebs and athletes as these events would give them enough media coverage during their appearances at these bars.The waiters and bartenders uniform is also designed to fit the mood and decor of these bars. They all wear uniform which look like sports jerseys with the company logo their number and name written at the back ala sportsmen.Some of these bars sell merchandize of the sporting clubs they are involved with.Some stores which have garnered a fan following of sorts can also sell their own bars merchandize to their loyal customers.Apart from providing liquor and telecasting live matches on high resolution televisions and screens, a sports bar also has to focus on providing a wide variety of cuisinesThe pricing should be reasonable and affordable and each bar should have its own signature dishIn order to improve the experience of the customers all sports bars should maintain a high ratio of personnel to customers. This would mean that the customers are tended to quickly.Also the training given to the service personnel and the bartenders should be of the highest order to keep up the high class image of these bars.Having private cabins in your offering is ben eficial. Though a large number of people come to sports bars to get immersed in the match along with a large crowd and get a live match feeling, a certain group of customers still would like to have their privacy. This where the private cabins come in handy.Changing Indian Consumption HabitsAmong Indians eating out is a popular activity. Every year Indians spend over INR 350 billion on eating out in restaurants, fast food joints, bars etc. Eating out is a very popular activity while attending other functions. It is estimated that Indians spend INR 350 billion eating out annually. Of this organized establishments account for only INR 20 billion. International fast food chains such as Subway, McDonalds and Pizza Hut are found in shopping malls and near cinema theatres. The well-off in urban areas are increasingly eating out in coffee shops, malls or retail stores. Lounge bars are the latest trend in urban areas and are frequented by young professionals, successful executives and singl e women in their late 20s. This trend began in Mumbai, Bangalore, Delhi and Kolkata and will no doubt spread to other urban areas. Among the affluent, clubs are becoming popular. In addition to many recreational Facilities they are upgrading their food facilities and can compete with some of the finest restaurants or hotels of India. The new in thing are the sports bars which are mushrooming in different corners of the country. People who are interested in sports or like to be associated with sports go to these places. These bars are frequented by students, young professionals and executives most often.Table 1 Number of On-trade Establishments by Type 2004-200820042005200620072008Bars/pubs22,41123,94225,10026,21127,154Source Trade interviews, Euromonitor International estimatesMARKET INDICATORSTable 13 RetailConsumerExpenditure on Alcoholic Drinks 2004-2009Rs bn200420052006200720082009Total125.4137.5149.7167.9185.8183.7Source Euromonitor InternationalNote 2009 data is forecast Sport s Bars Target SegmentThe customers who visit sports bars are segments into five different groups,StudentsYoung ProfessionalsSuccessful executivesSports Enthusiast/FanFamiliesYoung AdultsMen and women between the age of 21-25 who are either studying or unemployed fall under this segment. This segment of customers come to a sports bar just to hang out with their friends, enjoy the ambience and enjoy the food and liquor services provided by the bar. This customer comes into sports bars with a group of friends both male and female, and all within the same age group. These people get pocket money from their parents and hence are not spendthrifts. However, portions of this group come from very affluent families, and have no limit on their expenditure. This target segments are very trendy and are very seldom loyal. They are attracted to special offers and discounts and look for these offers availability before going to a place. Offers like happy hours of buy one get one free attract this s egment of people. They are generally seen before the peak hours as discounted prices are available at this time.Working ProfessionalsThese people are in the age group of 24-30. They have a decent amount of disposable income and like to indulge in activities which help them distress after work. They often come in after work to unwind. They come in either with their colleagues or other friends. These groups can have people from different age groups. They come in to watch the matches as well as to just sit and chat with their friends or colleagues.Successful ExecutivesThe people in this segment generally fall under the age group of 30-45. They have already arrived in life and belong to a high income segment. These people often come in just for a drink to catch-up with their friends over a few drinks or with their colleagues to discuss business offline. These people often consume foreign liquor and generally have time to watch only important matches.Sports EnthusiastsThis target group a ccounts for a third of the revenue generated by the sports bars. They are big sports fans and follow their favourite sports passionately. They belong to different age groups and can be students, young professionals or successful executives. This group of sports enthusiast t