Case Study - 6IX.Drive

To set the scene, it is September 2020, and the COVID-19 pandemic is in full effect. The nightlife sector in the UK has suffered due to the continuous social distancing restrictions with 1 in 8 venues shutting down permanently since the pandemic struck[1].

The problem

During this time, I was contacted by one of London’s premiere Nightclub DJs regarding a potential startup idea he needed to consult on. The plan was to workaround the restrictions by hosting an event in an outdoor venue while observing social distancing rules. The administration was concerned about maintaining the social and entertainment perspectives of a night out while ensuring the rules are not violated to continue operating as a legal enterprise.

The solution

To solve the client’s issue, it was necessary to conduct an in-depth market research. The specific topics under investigation were:

• Market Trends and Size
• Competitor Analysis
• Geographical Location Analysis
• Customer Analysis
• SWOT Analysis

The demand for such an event was already established based on the interest by the social media following of the DJ on platforms such as Instagram and Facebook. This was also supported by an industry market trend analysis conducted which showed a growing number of searches for keywords such as “Nightclubs London” and “Nightclubs reopening”.

To overcome the issue of social distancing violations amongst party goers who are likely to socialize after consuming alcohol, the idea of a “Drive-In” style nightclub was brought forward and was investigated. To the client’s surprise, Drive-ins were shown to be making a comeback from the decline since home entertainment became popular in the 1990s. In fact, Google trends showed an exponential increase in interest over time since the start of the pandemic. Operating a “drive-in” style nightclub would solve both the issue of social distancing and would open the club up to new sources of revenue such as on-demand music, food, and care rentals.

Given the nature of the business and the tricky economic situation, the competitor analysis served the dual role of both validating the concept and guiding the strategy of the company. The profile was selected to include establishments in London serving drinks and entertainment via drive ins.

The enterprise would have to face direct competition from Shisha cafes, Pubs & Bars in the absence of Nightclubs. Some High-level details are shown in the tables below:

	6ix.drive	Pubs & Bars	Shisha Cafés	Nightclubs
Food & Snacks		Limited
Drinks			Limited
Music
Entertainment			Limited due to COVID	Limited

The analysis provided useful data on the number of establishments offering Food & Snacks and how various establishments are dealing with restrictions on indoor events. The idea was validated by various shisha lounges and establishments providing “Park and Smoke” services for customers with vehicles. Music entertainment was not the main selling point of establishments operating during the pandemic but the various technologies such as “CarPlay” and “Android Auto” that were being offered were also studied.

This research showed that providing music to customers with various vehicles and streaming platforms (Spotify, Apple Music, YouTube Music) would prove to be a difficult task and “Silent Disco” technology would not be able to provide a similar experience to traditional nightclub goers.

It was hence necessary to provide music through loudspeakers in an outdoor confined space. A geographical analysis was conducted to identify suitable venues and a location in North London was selected as the ideal venue.

A customer analysis was conducted to identify the needs and wants of Nightclub goers in London and to identify the suitable target customer base. This was done by looking at data on the number of 20–35-year-olds in London who regularly visit nightclubs. Data on the preferred music and service needs of such customers was collected as well as the average spending amount and ratio of target population with personal cars. After evidence was collected on the wide range of spending and low percentage of car-owners, a suggestion to provide rent a car service with a range of economy and super cars was put forward to the client. The data was also collated to provide the client with a demographic market profile for targeted marketing.

Finally, a SWOT Analysis was conducted which discussed the Strengths, Weaknesses, Opportunities, and Threats associated with the industry and market given the current trends and business model of the start-up. A high-level overview is given below:

[1] https://www.bloomberg.com/news/articles/2021-07-11/britian-s-nightlife-prepares-for-reopening-wounded-by-pandemic