Analysis

Using College Student Discounts and Coupons to Encourage the Growth of College Student Customers

 

To better understand how to bring younger customers through the doors at The Bulldog Bar and Lounge, we explored Hansen’s and Phakdeesuparit’s report on why discounts and coupons matter to companies.

 

The Benefits of Discounts and Coupons

 

Better Customer Service

First, we had to search for reasons as to why discounts or coupons would be valuable for college students. Would discounts or coupons even matter to college students? In the report, College Student vs. Student Discount, the author effectively states how and why student discounts are valuable for the market of college students. “The key to communicating with students is being genuine and relevant. Our survey results show you can reach over 80% of college students with just a 20% discount—a legitimate discount level” (Hansen, p.6).

 

Trying Customers, Making Regular Customers, and Keeping Returning Customers

One way of getting customers to either try, come back, or maintain the presence of being a customer is by using coupons to help encourage a gain of experience or saving money. In the report A study of the relationship between discount coupons and repeat behavior of customers for Pizza Restaurants, they found that coupons are the leading cause of repeat behavior. “In addition, Robinson (1987) claimed that coupons have been used to hold current users, load current users, and convert triers to regular users. Loading current users is an effective defensive tactic to fend off competitive activity” (Phakdeesuparit, 2009, p.7).

 

Taking a Risk for a Better Gain

Although marketing to college students can be a big target gain for any restaurant or company some risks come with this demographic. Hansen states some of the risks that can be associated with college students when it comes to having discounts. “If your student discount is smaller than your competitors, smaller than other publicized offers, or even smaller than your offers of past years, you can count on losing customers, and you can count on negative referrals. And, as if you don’t have enough to worry about, keep in mind that when marketing to college students, your mistakes will flop harder and your successes will shine brighter than with other audiences (Hansen, p.7).

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Having Student Discounts Will Attract More Customers

According to Molly Gabris, the Director of Product Marketing at SheerID with a B.A. from the University of Michigan and an MS-MBA from Boston University Questrom School of Business, she agrees with the idea that offering discounts can be a powerful customer attraction strategy. In one of her articles, Gabris used an example from Vail Resorts she stated that “Vail Resorts launched a special discounted annual pass for military members in 2018. Through extensive promotion, media coverage, and word-of-mouth, the hospitality brand saw massive success with a 50% increase in new customer acquisition.” This case serves as empirical evidence that offering discounts indeed draws in new customers.
 

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Ways to Effectively Apply and Notify College Students of Discounts and Coupons

 

The Right Price for Coupons and Discounts

Through our research, we found that the best discounts and coupons to use would be 20 to 10% discounts or coupons. This is because it would seem reasonable to students and not represented as too cheap or if the discount was high as a scam. “As stated above, 82% say a 20% discount will get their attention, with 32% saying a 10% discount will sway them to purchase (Hansen, p.5). “Once a student searches “coupon” next to a brand, or an aggregator of flights or any type of product, they will find an equal or better discount. This strips those brands of their relevancy to the college market. College students will even perceive that this is an empty message, a possible bait and switch, and certainly not a valid attempt at gaining their loyalty as a customer” (Hansen, p.6).

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College Students' Preferences in Marketing

There are many ways to market discounts and coupons to students. Hansen surveyed a group of students to determine what most students would prefer best when it comes to marketing. When looking at the results of the chart, the majority of students prefer emails to be sent to them with discounts and offers. Other students rely on word-of-mouth, on-campus advertising, the website, Facebook ads, etc…

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Recommendations For Marketing Towards College Students

 

These are some specific ways that The Bulldog Bar and Lounge can market and use discounts for a college student-based targeted market:

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·       Make the discounts for College students 15-25% off of drinks or meals.

·       Send emails about current discounts or coupons.

·       Use an .edu email loop or personal email.

·       Post the discount on the website or Instagram.

·       Try to make a Facebook ad.

·       Try on-campus advertising.

·       Be genuine and relevant with discounts.

·       Use word-of-mouth marketing.

 

Music Makes A Difference In Attracting Younger Customers

 

In order to comprehend the manner in which music attracts younger customers, we conducted analysis of Ikundu report, alongside the Ramdan and Kusumawardhana report on the significance of music.

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The Benefits and Effects of Music

 

Customer Behavior and the Psychology of Music 

Music can directly impact a customer's behavior in several ways. Firstly, it can have a significant impact on their mood, which in turn can influence their purchasing behavior. Ramdan and Kusumawardhana (2010) wrote, "Music is well-known for its effectiveness in triggering moods, shown the effect on consumer behaviors and the emotional response" (pg. 412). Studies have shown that slow-paced music encourages customers to relax and buy more drinks or food, while fast-paced music can have an unfavorable effect, making them eat fast and leave sooner. Ramdan and Kusumawardhana (2010) wrote, "The findings showed that in-store traffic was significantly slower and sales were significantly higher with slow music than with fast music" (pg. 412).

 

Selecting the Appropriate Music Genre to Suit the Ambiance of Your Restaurant

Choosing the right genre of music is crucial for creating a cohesive ambiance in your restaurant. Let the type of cuisine and decor influence your selection. Soft, mellow music may be more appropriate during lunch, while livelier music may be better suited for dinner. Consider the age group of your target audience. Ikwundu (2021) wrote, "Many scientific experiments have shown that the structural components of different kinds of background music, including sonic level, tempo, style/gender, and sophistication influence a restaurant's time for consumers." (pg. 16). 

 

Creating Playlists and The Benefits of Live Music vs. Recorded Music in Restaurants

Choose the right genre of music for your restaurant and create a playlist that complements your needs. Avoid repetition and lengthy playlists that may bore your customers. Shorter playlists that change regularly encourage customer engagement, creating a unique experience. Consider having different playlists for breakfast, lunch, and dinner, and adjust the music's mood and tempo accordingly to enhance the dining experience. Ikwundu (2021) wrote, "It has been revealed by Adiele et al, (2015) through their studies that Consumers have different kinds of needs, and in marketing, sound has been used very effectively to communicate with the unconscious needs of the consumer" (pg. 16). Live music in your restaurant adds excitement, creates a unique experience, and can attract new customers. However, recorded music is more reliable and cost-effective. Ultimately, the choice between live and recorded music depends on your needs and budget. Live music can draw crowds, create a buzz, and encourage customers to return.

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Implementing Music and Reviewing Results

 

Tips for Hiring Musicians and DJs for Your Restaurant, Plus How to Promote Music Strategies.

When hiring musicians and DJs for your restaurant, book those that match your establishment's ambiance and genre of music. Seek recommendations from other restaurant owners or check online platforms to find local musicians. Negotiate a fair price and ensure they have the appropriate license, insurance, and permits. Choose professionals who are reliable and respectful to your customers. Look for references and reviews from previous clients to ensure they have a good reputation in the industry. To promote your restaurant’s musical offerings, use social media platforms like Facebook, Twitter, and Instagram. Share announcements and teasers of upcoming performances and add a dedicated page on your website. Use traditional forms of advertising such as flyers, posters, and billboards. Collaborate with local music schools or universities to discover new talents and build relationships. Host special events or themed nights, such as jazz or karaoke nights, to attract a specific audience and create a unique experience for your customers.

 

Measuring the Success of Your Restaurant's Music Strategy Using Customer Feedback and Analytics.

To measure your restaurant's music strategy's success, you can gather feedback from customers through surveys or questionnaires. Additionally, using analytics tools like Google Analytics or Facebook Insights can help you track social media engagement and website traffic. Observing customer behavior, such as how long they stay, how often they return, and whether they recommend your restaurant, can also provide useful information.

 

Integrating Music with Other Marketing Strategies Plus Legal Considerations for Playing Music in Restaurants

Integrating music with marketing strategies like loyalty programs can engage patrons. Offer discounts to those attending multiple musical programs or showcase artists with a dedicated following. Partner with local musicians or schools to showcase talent and offer music lessons or workshops. Use music to promote other offerings and enhance the ambiance of your establishment. Play different genres of music to create specific atmospheres, like soft jazz during brunch and upbeat pop during happy hour. Playing music in your restaurant is a great way to attract customers, but it's important to comply with legal requirements. You'll need a license from a collection society like ASCAP, BMI, or SESAC, and you'll need to pay royalties to performing rights organizations to use their music. Seek legal advice to avoid legal battles. Choose the right music, hire the right musicians or DJ, and use customer feedback to measure the success of your musical program. Make sure you comply with legal requirements, which may vary based on your establishment and the type of music played. If you host live music performances or play music from streaming services, you may need additional licenses and permits.

 

 

Implementing domestic beer/drinks to encourage young people to spend less money when going out.

 

We wanted to better understand what drinks younger people prefer when going out for drinks. We reviewed Knit's alcohol report to study exactly where and how Gen Z spent their money on alcohol in 2022.

 

The Benefits of Adding Domestic Beer/Drinks.

 

Hard Seltzers Are One of the Best-Selling Drinks Among Gen Z.

Just a couple of years ago, hard seltzers were not recognized as a typical drink someone might have when going out. However, they sell the second best among Gen Z now due to their good taste and fairly cheap price. The best-selling alcohol is liquor and spirits, but this is something every bar already has. Liquor and spirits were favored by 74.4% of respondents while flavored malt beverages were close behind that with 70%. Hard seltzers have overtaken beer in recent years as beer was only favored by 50% of respondents.

 

Lager Beer Preferred Among Gen Z

It is no surprise younger people like to drink cheaper beer, this is why it was voted as Gen Z's favorite beer. 63% of correspondents responded that lager is their favorite kind of beer. Common lagers are Coors Light, Miller Light, and Budweiser. All cheap and affordable options when going out for drinks. Ale beer is not too far behind with 53% of correspondents preferring it. Overall, lager is preferred among younger drinkers.

 

College Students Typically Only Care About Taste and Price When Buying Alcohol

The best thing about domestic beer is its cheap price and bland taste. It stays on a consistent line of cheap/bland which attracts younger drinkers. This is why the top two reasons for Gen Z to purchase alcohol last year were taste and price. 71% of student correspondents preferred taste, 64% preferred price, and 37% preferred recommendations.

 

How to incorporate and market domestic drinks into The Bulldog Bar and Lounge

 

Utilizing Social Media Techniques

One thing to notice from the other competing bars near Broadripple is how they market special nights through social media. For example, Brothers in Broadripple recently posted about a sports night with the attraction being a popular domestic hard seltzer brand theme for corn hole in the bar. They also have some recent posts where popular domestic beer logos can be seen on buckets and tables. This lets the viewer know they don't have to spend a lot to have fun there, which makes it more inviting. Kilroy's on Broadripple hosts specials for IU game days featuring cheap domestic drinks. This is another good strategy to bring young people in because it exemplifies drinking cheaper drinks while cheering for our local colleges.