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Karaoke Business Plan

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Marketing Analysis of karaoke business

The most important component of a karaoke business plan  is its accurate marketing analysis because it decides whether your startup will become a success or end in failure. That’s why an accurate marketing analysis must be carried out before you think about how to start a karaoke bar. If you are starting on a large scale, it is better to seek help from the marketing experts who can better guide you through all the processes needed for starting a karaoke business including how to carry out the marketing analysis of a karaoke startup and how to open a karaoke bar. On the other hand, if you are starting on a small scale, you can take help from this sample karaoke business proposal plan.


5.1 Marketing Trends

The karaoke bars were started in Japan but soon they spread in entire Asia. Now there are thousands of karaoke bars in the US as well as in other countries across the globe. Although the US karaoke industry has experienced a negative annual growth, still there are around 1,270 karaoke businesses running in the US according to the IBISWorld. The industry is generating a revenue of $435m annually while it is responsible for employing more than 6,288 people across the country.


5.2 Marketing Segmentation

Marketing segmentation shows the various segments or groups of our prospective customers. Our target market is mainly the residential community living nearby at the 15 minutes’ drive from our bar. Our experts have identified the following target groups who can become potential consumers of our services:

Karaoke Business Plan - Market Segmentation


The detailed marketing segmentation of our target audience is as follows:

5.2.1 Children & Teens: The first target group of our customers will be the children living in the vicinity of our karaoke bar. All parents want a safe and trusted place for their children where they can spend good time with their friends playing productive games and that’s exactly what we will provide to this group. We will provide a safe and clean environment where children and teens can play games, have delicious meals and enjoy themselves.

5.2.2 Adults: The second and the biggest category of our customers includes the individuals who aren’t shy and want to interact with new people. These individuals aged above 18 years will find our karaoke bar as the perfect place for socialization where they can also enjoy the musical nights as well as the bowling games.

5.2.3 Senior Citizens: The last category includes the elderly people who just want to kill their time or have chats with other people of their age. These people can listen to the songs of the youth, play the bowling games and can grab a bite at our bar.

The detailed market analysis of our potential customers is given in the following table:


Market Analysis
Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Children & Teens30%12,86714,43315,99917,56519,13113.43%
Senior Citizens15%11,43313,34416,55318,74520,54515.32%


5.3 Business Target

Our business targets are:

  • To become the most visited karaoke bar in Midtown Atlanta

  • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year

  • To add more games and facilities for the customers by the end of the first year

  • To balance the initial cost of the startup with earned profits by the end of the first year


5.4 Product Pricing

Product pricing is one of the most important factors to decide the success of a startup. For the purpose of encouraging sales, we have priced our services slightly lower as compared to our competitors. We will basically offer three types of membership packages to choose from:

  • Monthly membership for $100 per month

  • Semi-annual membership for $500 per six months

  • Yearly membership for $900 per year

Non-members can also visit and enjoy our karaoke bar where they will be charged on the basis of activities they partake and the food they eat.


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