Analyzing The New V5 Group Company at Its Digital Marketing Intern

The New V5 Group
Digital Marketing Intern
Name
MKT 393
July 1, 2021
The New V5 Group
The nightlife industry is one of the largest industries globally due to the generational transformation to event marketing. One of the main disadvantages of social media is learning the algorithm and working with it as it constantly evolves, but due to the well-established framework of the company, this has successfully been addressed. All social media platforms evolve and update as the digital age does, so V5 rides the wave, so to speak. There is such a wide variety of nightlife in Chicago that it may be impossible to target every niche making it necessary to focus on the most effective measures for high expansion and development. Chicago is one of the popular states with a large number of nightlife companies. A high number of the companies are promoted by the fact it is centrally located, accessible, and has unique features which can easily be accessed by different individuals in different geographical areas.
I. Background
Introduction to Company/Organization
V5 is one of the known companies which strongly falls under the industry. V5 is a marketing and Promotion Company based out of Chicago specializing in event marketing, branding, and concerts. This large team of experts markets mainly in the entertainment or nightlife industry. They market to thousands of people per day in order to invite them out to join their Latin-based events. Any top-rated Latin night in Chicago that you've ever heard of in the past 20 years, V5, may have had something to do with that. Some of the examples that the companies that V5 outcompete include Spy and PYRSM Chicago. The music that they play at their events ranges from reggaeton, bachata, hip-hop, top '40s, and sometimes an EDM-reggaeton mix. V5 partners with venues to be able to host their nights that include V5 DJs, bartenders, hosts, a manager, and someone to charge a cover at the door. V5 does not own any venue but works with them to host the best night(s) at the owner's venue. These locations run across the city and are starting to expand. Some locations are in River North, Wrigleyville, Skokie, and even Indiana. V5 is working to move its barriers beyond the Midwest, but for now, they are mostly located in and around the Chicagoland area.
II. Environments
a. Competition:
Competition is an essential issue in the nightlife industry. It determines the specific actions that other companies conduct. In the Nightlife industry, the increasing competition rate is attributed to new entrants in the market due to the belief that there is higher profit in the industry (Ferguson, 2021). V5 offers a wide variety of music at the events they host, but the company knows that they cater to a niche of people. Knowing this, some of V5's top competitors may include locations that play other types of music. This type of music may include country, all hip-hop, all top 40's, and EDM (Electric Dance Music). Some locations may even be more upscale than V5 offers, which may include TAO, Tree House, LondonHouse, Joy District, Untitled, Clutch, and many more! These are just a few of the most popular clubs in Chicago. The location was picked as some of the most popular in Chicago and can be used to identify the progress in the industry. There is such a wide variety of nightlife in Chicago that it may be impossible to target every niche. Chicago is one of the popular states with a large number of nightlife companies based on research conducted by Ferguson (2021). A high number of the companies are promoted by the fact it is centrally located, accessible, and has unique features which can easily be accessed by different individuals in different geographical areas unless V5 branches out to a market that is more than just Latin-based clubs.
b. Technology:
Technology in Nightlife has increased due to the increased digital transformation of most of the customers (Ferguson, 2021); therefore, most of the activities that are conducted are done within a given framework and time due to technology advancement. The industry has gone beyond the social media space by promoting substantial growth and digital acquisition of the products (Ferguson, 2021). It has also focused on a unique digital framework such as consistent transformation to achieve increased development. Therefore, with all the identified activities, it is necessary to justify that technology has adequately reshaped the industry as large due to the emerging social media platforms. Technology has changed marketing from day one. In this case, technology has mostly been an advantage for this digital marketing era. V5 has prospered, and in doing so, they've increased their engagement across all social media platforms. One of the main disadvantages of social media is learning the algorithm and working with it as it constantly evolves. All social media platforms evolve and update as the digital age does, so V5 rides the wave, so to speak. The owner of V5 constantly says that social media is like passing out a flyer to everyone without doing the manual labor that's involved with it.
c. Economy:
The nightlife industry heavily depends on economic growth. Simple economic adjustments such as variations directly impact it (Ferguson, 2021). Throughout the pandemic, the hospitality industry has struggled. They've learned to adapt, and V5 has done the same. Considering that V5 has its main events throughout the nightlife, they had to get creative and reroute their marketing strategies. Thankfully, Chicago has lifted their COVD-19 restrictions, and it can fully serve its customers. Unfortunately, this does not cater to those that are still weary in contributing to the outside world. Since restrictions have been lifted, the bar and nightclub industry is booming once again.
d. Legal or political factors
Legal factors also impact the industry's ability to meet numerous goals and development. The reason being, most of the activities occur at night, and thus there must be considerate aspects to ensure that every individual abides by the law (Ferguson, 2021). The largest legalities that V5 needs to abide by is what everyone in the world needs to abide by COVID-19 restrictions. Besides that, it's the rules that the owners of the bars and state make (Cocktail and Bar Industry Trends, 2021). These rules may include the percentage V5 takes from the night, twenty-one plus drinking restrictions, and any instances a venue has with customers reacting negatively to anything, whether under the influence or not. V5 holds a percentage of the club not because of their partners in the company but because that's the original contract that they make once the venue decides to take on V5 as their marketing provider. V5 not only markets for the venue but also provides workers, which may include but are not limited to bartenders, bottle servers, hosts, managers, and cashiers, to charge entrance.
e. Customer trends:
In the Nightlife industry, customer needs are essential and must be considered. Furthermore, they share common needs, and thus, most companies' words towards ensuring that high-quality delivery is paramount. The top current trend for any marketing company is the one app that's been around for five years but has become popular during the pandemic, which is more formally known as TikTok. It's the new Vine, but better! Tiktok provides a platform where anyone can make a short video to showcase whatever they want! YouTube provided that by visually showcasing what the YouTuber wanted (TikTok Revenue and Usage Statistics, 2021). Now, a user can more easily grasp one's attention in a ten-second to one-minute video. V5 currently holds over 40k followers along with over 395k likes (Ferguson, 2021). Using this platform along with Instagram (see exhibit 3) and Facebook has greatly helped the company. Alongside creating trendy content on all social media platforms, V5 also helps take part in the menu that some of the venues provide, creating a trendy environment where customers want to continue coming back to the venues. Therefore, the major expectation that the customers are looking for in the industry is high-quality delivery.
f. What has the effect of Covid-19 on this industry and suppliers in this industry? 100
What has most affected V5 during COVID-19 was the restrictions made on the hospitality industry. Since there were no longer events being held, that meant no business for V5. Some of the bars that V5 once had marketed for even closed during the pandemic. While restrictions were slowly being lifted, that meant more rules needed to be set in place for bottle service, bar service, everything. Pre-pandemic, anyone was allowed to walk in without reservations. Now, the city is 100% open, and walk-ins are welcomed once again. COVID-19 has adversely impacted the Nightlife industry due to lockdown activities that are initiated by the government (Ferguson, 2021). This has led to reduced organizational performance and market diversification.
III. The Organization's Marketing Mix
a. Target Market:
The target market for V5 is people who like to celebrate any occasion or just like to drink and party. V5 mainly targets ladies ages 23-35. V5's perspective on their target market is that gentlemen come out to meet ladies. Guys will mainly buy drinks for ladies, and thus alcohol consumption goes up. This idea comes from clubbing in general. Research shows that this target market is also geared towards women because ...