Professional Documents
Culture Documents
Unit 19 Aim B Distinction
Unit 19 Aim B Distinction
- Reeve Vonk
- Regina Nyirubugara
- Julia Rodycz
Team
Reeve Vonk: I am 19 years old living in Velserbroek. I am ambitious and am always
thinking for new ideas. I would like to start my own business in the hospitality
industry, as I like this and earn a lot if it goes well. It is therefore important to me that
I do something that I like and that also earns a lot.
Regina Nyirubugara: I am 17 years old and live in Hoofddorp. I have always had a
passion in the field of music. With the entrepreneurship course, I mainly want to
learn which marketing strategies work best for a company like this. With this I can
better help other companies with marketing in this genre in the future. In this genre I
have the most ambition.
I am Julia Rodycz: an 18-year-old student with a strong drive to succeed. Currently,
I am pursuing an international business course with the goal of expanding my
knowledge in this field. I moved from Poland to the Netherlands when I was 15 years
old. My long-term goal is to establish my own business and attend university which
will allow me to develop in a personal way.
The product/service
‘’Product’’
The music bar, named "Soundbar" is a new startup business located in the heart of
Leiden, Netherlands. The bar has a unique focus on music, both as a venue for live
music and as a retail space for CD’s and vinyl’s. The target audience for Sound bar
is music enthusiasts, both local and visiting, who are looking for a more immersive
and engaging music experience. The physical space of the bar is designed to be
cozy and welcoming, with a vintage decor that creates a relaxed atmosphere. The
bar features a stage area for live music performances, as well as seating and table
areas for customers to enjoy food and drinks while listening to music. The record
store section of the bar is located at the back of the venue, with shelves of CDs and
vinyl’s organized by genre and artist. In terms of food and drinks, Sound bar offers a
variety of options that complement the music experience. The menu features snacks
and small plates that are easy to share, as well as craft beers and specialty
cocktails. The menu items are named after popular songs and artists, adding to the
overall theme of the bar.
The unique selling point of a music bar that is selling CDs and vinyl’s in the city of
Leiden could be the combination of a live music venue and a record store, providing
customers with a unique and immersive music experience. Some potential unique
selling points could include:
1. Curated selection: The music bar offers a carefully curated selection of CD’s
and vinyl’s that cater to a wide variety of musical tastes, including niche
genres that may be hard to find elsewhere. This would appeal to serious
music enthusiasts who are looking for a more specialized selection of music.
2. Live music and events: By combining a music bar with a record store, the
business could offer a space for live performances and events, as well as
hosting meet-and-greets and signings with local and international artists. This
would create a more engaging and exciting experience for customers, and
provide an opportunity to discover and purchase new music from the
performers.
3. Knowledgeable staff: The business could hire staff members who are
knowledgeable about different genres of music, and can provide
recommendations and advice to customers looking for new music. This would
create a more personalized and customer-focused experience, and help build
a loyal customer base.
4. Complementary food and drink: The music bar could also offer a selection of
food and drinks that complement the music and record store experience. For
example, they could offer themed drinks or food items that are named after
popular songs or artists. This would enhance the overall experience and
create a more memorable and unique atmosphere.
5. Community hub: By offering a space for music lovers to gather, the music bar
could become a community hub for like-minded individuals. This would
provide a space for people to connect and share their love of music, and
could help to build a sense of loyalty among customers.
Legal aspects
Our business idea is a bar with CD’s and vinyl’s in Leiden, The Netherlands due to
this fact we had to look at the legal aspects to make this plan work. There are a
couple of requirements that the bar has to meet in order to function without any
problems. The business has to acquire many licenses before it opens. They are
mainly needed to ensure customers safety when drinking and eating in the bar area.
First of all, the governments requires people to register their start up business KvK
(Kamer van Koophandel), the Dutch Chamber of Commerce and Belastingdienst
with is the Dutch tax office. There is also a lot of risk associated with running a
business that’s why the owner should get an insurance for the equipment and staff.
Those are the types of taxes that the owner is obligated to pay:
BTW (VAT)
Income tax
Payroll tax (if you have employees)
Corporation tax (only applicable to incorporated businesses)
The owner is obligated to draw up a risk inventory and evaluation (RI&E) and
hygiene plan that is based on European principles.
https://www.iamexpat.nl/career/entrepreneur-netherlands/how-to-start-up-own-
business
https://intercompanysolutions.com/open-restaurant-netherlands/
https://business.gov.nl/starting-your-business/checklists-for-starting-a-business/
checklist-for-starting-a-hotel-restaurant-or-cafe/
Competitor analysis
The owners Marco & Paul opened their doors in September of 2009. They
wanted to focus on creating an environment where everyone should feel like
they’re at home. Their general idea that drinking beer and watching sport on
numerous screens around the pub is the best way to do so.
Recently vinyl has become more popular again in The Netherlands. Vinyl’s were sold
for 28.4 million Euros, that is an increase of 11 million euros compared to 2020.
Overall, the music industry had another good year. Total turnover increased for the
seventh year in a row. In 2021, this was 13.8 percent to a total of 254.3 million euros.
The vast majority (203.8 million) is accounted for by streaming services such as
Spotify and Apple Music.
The physical market is recovering slightly after years of heavy losses. This is not
only due to the popularity of vinyl, says the NVPI. CD sales again showed modest
growth to a turnover of 17.5 million euros. Last year that was 16.9 million.
The total turnover of the Dutch music industry amounted to 254.3 million euros in
2021, a growth of 14% compared to 2020. Streaming remains incredibly popular, but
with an increase in turnover of 11%, growth slowed slightly compared to the previous
year. years before. The sale of vinyl was also little affected by the corona crisis in
2021, with turnover increasing by no less than 66%.
With an 80% market share, streaming remains by far the main source of income for
the music industry, but after years of heavy losses, the physical market seems to be
playing a slightly larger role again. That can be largely attributed to the popularity of
vinyl. Despite prolonged lockdowns, turnover increased by an astonishing 66% to
28.4 million euros. In 2020, vinyl records were already sold more often than CDs, in
2021 that lead has only increased. Nevertheless, after a significant drop in 2020, CD
sales again showed modest growth with a turnover of 17.5 million euros. A small
boost, but turnovers such as in the years before the corona crisis will no longer be
achieved quickly.
The popularity of vinyl has also increased considerably last year. A total of 37 million
euros worth of LPs will be sold in the Netherlands in 2022. That is about 8.6 million
euros more than in 2021, an increase of 30 percent.
CD sales fell last year. In 2022, CDs worth 15.3 million euros will be sold in the
Netherlands. There was still a slight increase in the previous year.
The streaming market, meanwhile, continues to grow strongly. This market has been
growing by at least 10 percent for more than ten years. According to the figures of
the NVPI, turnover has increased from 203.8 million euros in 2021 to 223.9 million
euros in 2022.
Streaming therefore controls the vast majority of the market. In 2022, a total of 282.1
million euros worth of music was sold in the Netherlands. That is almost 11 percent
more than a year earlier. The NVPI thus registered revenue growth for the eighth
consecutive year.
Costs and pricing strategy
1. Calculate the costs: Determine the direct and indirect costs associated with
running your bar and selling vinyl's and CDs. This includes the cost of
purchasing inventory, labor, rent, utilities, and any other expenses. Make sure
to account for the cost of acquiring and storing the vinyl's and CDs.
2. Determine your profit margin: Decide on a profit margin that allows you to
cover your costs while still earning a profit.
3. Research your market: Understand your target audience and the demand for
vinyl's and CDs. Consider the competition in your area and what they charge
for similar products.
4. Set your prices: Based on your costs, profit margin, and market research, set
your prices for drinks and vinyl's/CDs. You may want to price your vinyl's and
CDs higher than your competitors if you offer unique or rare finds.
5. Consider promotions and discounts: Offer promotions and discounts to attract
customers and incentivize them to purchase more. For example, you could
offer a discount on drinks for customers who purchase a certain number of
vinyl's or CDs.
6. Monitor and adjust pricing: Regularly monitor your sales and adjust your
pricing strategy as needed to ensure you are meeting your revenue goals.
You may need to adjust your prices based on changes in the market or
customer demand.
7. By following these steps, you can create a pricing strategy that maximizes
your profits while also meeting the needs and expectations of your customers.
7.3 Price setting:
Product/service 10 days:
Beer: €1702,00
Wine: €1052,00
Cocktails: €800,00
Glasses: €400,00
Dishwasher: €3400,00
Beer: 120
Wine: 100
Alcoholic drinks: 60
Cocktails: 60
Glasses: 120
Beer skimmer: 4
Dishwasser:: 1
Freezer, refrigerator: 1
Frying pan: 1
Fried snacks: 50
Product/service 1 Month
Staff: €6240,00
Rent: €1960,00
Total: €9200,00
Sales: €11450,83
Profit: €2250,83
Cost per unit
Soft drinks: €1440,00
Beer: €1702,00
Wine: €1052,00
Cocktails: €800,00
Glasses: €400,00
Dishwasher: €3400,00
€0,75 (0,25cl)
€0,18 (25ml)
€0,36 (6)
Sales: €11450,83
Loss: €-36,208,8
https://www.iamexpat.nl/career/entrepreneur-netherlands/how-to-start-up-own-
business
https://intercompanysolutions.com/open-restaurant-netherlands/
https://business.gov.nl/starting-your-business/checklists-for-starting-a-business/
checklist-for-starting-a-hotel-restaurant-or-cafe/