MARKET ANALYSIS PROJECT

NIGHTLIFE IN AARHUS

Business Academy Aarhus

Marketing Management
2nd March 2015
Kinga Chrzanowska
Julie S. G. Johannesen
Anna Placzkiewicz
Sava Despotov
Daniel Grevy
Rune Langkjr
Supervisor: Mark Hughes
Number of characters:

1. Introduction
Aarhus is a relatively big and dynamic city, Denmarks second largest city, with
typical Danish nightlife. It has a lot of bars, all of them trying to attract people in
various ways. However it is not an easy task to fit into the preferences of their
customers and therefore gather their attention in the way that makes a particular
bar profitable and popular. It can also be seen in some of the bars revenues being
smaller than before which we have studied and now have some possible reasons
for in our report.

1.1Problem Statement
Since it was previously mentioned that it is more and more difficult now to set and
lead a bar in Aarhus, which can be perceived as a successful, we decided to
investigate some general features, which have considerable impact on bars success
and their attractiveness for customers. Hence, we realized that we need to answer 3
questions concerning this subject. They are:

What kind of initiatives attracts people?

Which features are important for customers?
Based on age and gender, which people are most valuable as
customers?

We are positive that the research we are about to conduct will let us answer those
inquiries and therefore shows us how bars in Aarhus could fight the difficult nightlife
situation in this.
1.2. Delimitation
In our assignment we will mainly look at aforementioned issues. It is therefore
logical that we will not limit our search to any specific bar in Aarhus, but focus on all
of them instead. This way we can get an insight into the peoples preferences
towards Aarhus in general.
Moreover, since it is not possible to find much information and previous statistical
analyses regarding this topic, we will also concentrate on field research rather than
the desk research. It does not mean we will totally abandon the former one, since its
importance is out of question, but field research will be broader and more detailed in
our report.
We mostly focus on current situation, only if it comes to the small desk research
conducted, we go a few years back in time to make comparison with the current
situation in this city.

1.3. Methodology
Our research consists of both desk and field researches. It has to be taken into
consideration though, that it is more than difficult to gather information for the
former one. However, to use any secondary data we used databases (i.e.
NavneNumreErhver and Denmarks Statistics).
If it comes to the field research, though, we made a questionnaire using the
SurveyXact analyzing tool and distributed it in a few places in Aarhus afterwards.
It gave us data, which we then analyzed and interpreted.
To present our findings, we decided to use the add-in program of Excel, called
Hypostat and descriptive statistics in the form of those tables and graphs, which
were the most appropriate.

1.3.1.Structure of Report

2. Research proposal
2.1. Hypotheses
2.2. Desk research
2.3. Field research
2.3.1. Sampling plan

3. Data analysis

3.1. Question 1: How often do you visit bars?

How often do males and females visit bars

16
14
12
10
8
6
4
2
0

male

female

We choose this question to get the general information about how often people go
out. We believe that it is an important factor to know which gender goes to bars the
most.
Because the bar should focus on getting the costumers that are most likely to visit
the most, we had the assumption that males would be the ones going the most but
our sample showed us something different.
The frequency of visiting a bar between genders is very equally spread out when we
look at our sample.
It shows from the table that twice a month is the most common amount of times to
go out in the duration of a month for both genders. Our table shows that its 14 from
each group which corresponds to 27,7% of our sample of 101 people.

3.2. Question 2: How do you value these features when going to a bar?
Friends, hooking up, socializing, dancing and drinking.
The participants had to answer within the
important,neutral,unimportantandvery unimportant.

range

of:

Very

Important,

When analyzing this question we will be focusing on the answers: Very important as
we see these as the most important for the outcome of our questionnaire.

Very important features in % when going to a bar:

100.0
90.0

89.1

80.0
70.0
60.0
50.0
40.0

32.7

30.0

17.8

20.0
5.9

10.0
0.0

27.7

Friends

Hooking Up Socializing

Dancing

Drinking

From the 101 participants asked we are able to see that 89,1% values being with
their friends the most when going to a bar. Socializing is the second highest at
32,7%.
Being with your friends and socializing is at some points the same two things, and
that could be the reason that they are the highest. Drinking (27,7%), dancing
(17,8%) and hooking up (5,9%) seems not to be as important. If we look at these
questions as a list of priorities it makes more sense. Friends, if youre not out with
your friends socializing it is not fun to drink, if you are not drunk it is not fun to
dance and at the end if you are not dancing you are maybe not able to hook up with
someone.

3.3. Question 3: How would you rate the importance of these features
when it comes to choosing a bar?
Cheap prices, happy hours, variety of drinks, atmosphere, location of the
bar, music and smoking areas.
Again the participants had to answer within the range of: Very Important, important,
neutral, unimportant and very unimportant.
When analyzing this question we will be focusing on the answers: Very important as
we see these as the most important for the outcome of our questionnaire.

Very important features in % when choosing a bar:

70.0

62.4

56.4

60.0
50.0
40.0
30.0
20.0

31.7

31.7
22.8
15.8

10.0

9.9

0.0

If we take into consideration the answers we got from question 2 this diagram
makes more sense. In question 2 we found that the participants valued going out
with their friends and socializing more than drinking, dancing and hooking up. With
this question we found that atmosphere with 62,4% of the 101 participants to be the
most important feature when choosing a bar followed by music at 56,4%.
When looking at these numbers we can see that the values people choose from is
related to the fact that people mostly go out to spend time with friends and
socialize. A good atmosphere is part of a good environment where friends can settle
down, talk and have fun with each other. We also see music as a part of the
atmosphere, this could also be the reason that it scores almost as high as
atmosphere with 56,4%.

3.4 Part-Conclusion:Question 2 and 3.

We can conclude that people values being out with their friends and socialize the
most. We are also able to conclude that people values a good atmosphere and good
music more than for example cheap prices and happy hours. The reason for this
could be that to have fun your friends a good atmosphere and good music is
needed.

3.5Question 4: How much money do you spend in a particular bar?

500+ DKK

350-500DKK

250-300DKK

150-250DKK

50-150DKK

Less than 50DKK

0

10

12

14

16

18

This question was asked in a reason to get an overview of how much money people
use in bars. The majority of people use between 50 to 250DKK in bars(61/101).
Reasons for this would be mentioned in questions 7 and 8 later in the assignment.
It is divided in gender, because this would give information which gender is more
likely to spend more money in a bar. The question approves the assumption, that
men spend more money than women in bars.
It is a common believe that women attract more men to bars. As mentioned before
in question 1, more females visit bars than males. Which means targeting women
would increase men attendance thus increasing income.

3.6. Question 5: How much money do you spend beforehand? & Question 6:
Are you satisfied with bar prices?

Money spent beforehand Satisfaction with bar prices

Yes No

4% 1%
25%

18%
52%

Less than 50
DKK

50-150 DKK

150-250 DKK

250-350 DKK

350-500 DKK

500 + DKK

40%

60%

This question was made to get an idea of how much money people are willing to pay
for alcohol in stores (beforehand) and if that had any relation to their satisfaction
with the alcohol prices in bars downtown.
60 % of the customers are not satisfied with the bar prices which means they think
the bar prices are too high. 40 % on the other hand are satisfied with the current
prices, and would not change them. 52 % of the participants in our survey, which is
the majority, spend between 50-150 DKK beforehand, which means they drink
before going out. If you compare the prices for alcohol in stores and then in the bars,
there is a significant difference which is expected. The prices in the stores are
cheaper, and therefore they are more willing to pay more at the time, when they
buy alcohol, because they get more out of it, rather than if they buy drinks, beer,
etc. in the bars.

3.7. Question 7: At what times do you go to bars?

At what time do you go to bars

18:00-21:00

21:00-23:00

23:00-01:00

01:00-03:00

6%4%

49%

42%

People who were asked this question were only able to cross of one answer.
From the questionnaire we got the output that 90 % people are going to the city
between 21-01 which supports our assumption that people are going to the city late.
It also corresponds well with our question 4-5 about how much money you spend in
a bar before and after where it showed that a lot of people spend approximately the
same amount. The focus for the bars on this topic should be to get people to spend
their money at their places. One of the main factors of asking this question was to
relate it to question 8.

3.8. Question 8: What makes you go at that time?

Chart Title
other
I dont care about happy hours and cheap prices
Its boring to stay so long downtown
pre-drinking at home
to find better seats
to get free entrence
Happy hours and cheaper prices
To spend more time with freinds
I will visist more bars
0 10 20 30 40 50 60 70

People who were asked this question were only able to cross of one answer.
The table shows that 59 people answered pre-drinking as one of the main reasons
for them to visit bars later. The second most chosen answer was to spend more time
with friends, 56 people from the sample chose that as a reason. These two criteria
are scenarios that will make people stay home longer. It collides very well with
question 7 where we just proved that people from our sample are going late to the
city. We believe that this data is very important to use while figuring out which
features make bars more attractive. Because it gives an indication of where bars
really should put their focus to attain and obtain customers.
Compared to some of the desk research we found about the Danes alcohol
consumption from 2013, it is possible to spot that the wine sale has increased from
2013. Wine is one of the things that are being consumed the most when it comes to
alcohol in Denmark.When you go to a bar, you would typically not buy wine, which
could conclude that the wine sale is based on what people buy in stores an
assumption could be that wine is possibly something people drink at home with
friends before going out.(Appendix alcohol consumption Danish 2013)

3.9. Question 9: What bars extra initiatives do you like?

Chart Title
70
60
50
40
30
20
10
0

People in this question could cross off multiple answers.

This question has a very high level of relevance towards our problem statement
because it is crucial for the bars to achieve knowledge about with preferences their
customers have, especially towards the different initiatives that bars are using. For
the question we took 4 initiatives that bars use and what we believe they use the
most.
It shows on the table that special days are the most liked initiative, 59 respondents
chose that answer. The reason behind the liking of this certain initiative we believe is
that it gets a lot of people down to the city and that equals a high level of good
atmosphere and rich opportunity to socialize. E.g. J-day in Denmark is known as one
of the biggest party days of the year, the theme, atmosphere and huge amount of
people going to bars makes it a huge success.
Birthday parties is in second the row and the reason behind that corresponds very
well with our former questions and what they have shown, that people value friends
as very important when going to a bar. For birthday parties it is mostly friends you
invite so it fits very well.

3.10. Question 12: Age?& Question 13: Gender?

18-22
23-27
28-30

Femal
e
29
18
1

Male
35
17
1

Total
64
35
2

Respondents divided into age and gender

40
35
30
25
20
15
10
5
0

18-22

23-27
Female

28-30

Male

The survey was made for people from 18 to 30. It was almost equally distributed
between males and females. Most of our survey's respondents were in the age from
18 to 27. The reason could be that people in this age group were more likely to find
outside during the time we conducted our research. People from the ages between
28 and 30 were not so likely to find outside. We chose these age groups, because we
assume that this is the majority of people who are visiting bars.

4. Hypothesis testing and conclusions

5. Recommendations
6. Conclusion
Bibliography
Appendix