The ways and solution to reposition Sylvias bar Essay

The ways and solution to reposition Sylvias bar - Essay Example In relation to the study the company which has been selected is Sylvia’s Bar. It was one of the renowned high street bar and a night club which was situated in Birmingham on the High Street. Sylvia’s Bar was founded way back in the year 1986 and was segmented as fashionable wine and a cocktail bar and mainly targeted the local bank workers. The Sylvia’s Bar was able o generate profit and was performing well with a healthy turnover. However in the recent few years the bar has not been performing up to the expectation and as a result there has been a decline in the profits of the bar and at the same time has become less popular. Sylvia’s bar which once gathered about 400 to 500 customers on regular basis, but in recent years it has been able to gather on an average 100 to 150 customers. Since Sylvia’s Bar targeted the higher income level of people, there rates were also high as compared to any other bar in the town. Sylvia hired the best bar staffs an d in addition two of Sylvia’s friend had also joined the business as assistance manager and claimed  £20 per hour. Over the years, many late night bars and clubs were opened which made the competition tough for Sylvia’s bar. As a result the customers preferred the other night clubs over Sylvia’s bar which resulted in loss for the club. The staffs were also not satisfied with the management and wanted new changes to be implemented. Sylvia’s Bar had encountered problem which lead to its failure. One of the main problems was that of operational factors. The profits of the firm tend to decline at an increasing rate. In the financial year 2011, the profit of Sylvia’s bar stood at negative balance. Sylvia’s bar was performing well till the financial year 2008 but in 2009 there was a sharp fall of profit and the last two financial years has experienced a declining profit rate. Year Monthly profit / loss (in Pounds Sterling) 2011 -400 2010 -250 20 09 325 2008 1200 2007 750 2006 2800 2005 3500 Another problem was that of menu and cost of the products in Sylvia’s bar. The bar was established targeting the high class people of the society which included the bankers and as a result the prices were charged high. The cocktail menu started with a price range from ?8 to ?12. The wine was also costly and was imported from across the world. Bottles of wine which included the champagne started at about ?25and went up to ?250 while glasses going from ?6 to ?45. The pricing of the wine were seemed to be costly by the visitors and claimed that there were better wines at a cheaper rates in other night clubs. The food menu of Sylvia’s bar was also expensive and was served during the day. The price starts from ?23 for the main course and the most expensive dish cost ?35. But during the recent years there has been a fall in the demand for the food and as a result the bar often had to throw away ingredients. The bar hired classica lly trained cocktail bar staffs who normally