Case Study - Creating Canada's Largest Country Bar.

**Case Study – Implementing the Blue Ocean Framework for the Country Bar, Random Ranch**

For those unfamiliar, the Blue Ocean Strategy, articulated by Renée Mauborgne and W. Chan Kim, emphasizes the simultaneous pursuit of differentiation. I always recommend new marketers read this book as it aids in identifying market gaps and understanding industry dynamics.

One Sunday morning, I received a knock on my door; it was Jack Dawson, a friend I had previously helped pitch a marketing concept to a large company. His visit was unexpected, particularly because he hadn’t settled my fee for the work I did. “I need your help,” he said. Before he could continue, I reminded him about his outstanding invoice. He quickly replied, “I’ll be right back,” jumped into his Hummer, and sped off. An hour later, he returned with cash to settle his debt.

“What’s up?” I asked. Jack reminded me of his lifelong dream to own a large nightclub, something we had briefly discussed. “I did it,” he said, but expressed his frustration, saying he had invested so much money into the club without seeing any return and feared closing within his first year. It seemed Jack had become so absorbed in his dream that he neglected to evaluate his surroundings.

I asked for the club's address and arranged to meet him there on a Friday night, anticipating it would be his busiest time. When I arrived, I walked into a vast, 22,000 square-foot space filled with emptiness. I met Jack and asked when it would get busy, to which he replied, “This is it.” Noticing there were more staff than patrons, I asked him how long this had been going on. He said since they opened. I was stunned that he had taken on such a large venture without any experience, effectively draining his finances. When I inquired about his available capital, he indicated it could only sustain operations for another 2-3 weeks, which explained his urgent visit.

I asked Jack to give me the weekend to brainstorm and promised to get back to him on Monday. I spent the weekend researching the local bars and clubs, analyzing demographics and customer potential. When we met on Monday, I informed him that significant changes were necessary, which would require at least two weeks to develop a plan and strategy. He agreed, and I set out to redefine his club as Canada’s largest country bar.

**Discovery**

**Business Sector**: Hospitality 
**Location**: Barrie, Ontario
**Population**: 125,000 
**Market Segment**: Males and Females, ages 19-27
**Competitors**: The Queens, Studio 55, The Roxx 
**Immediate Competition**: 3
**Broader Competition**: 2
**Primary Barrier**: The mayor owned two of the most popular bars, The Roxx and The Queens 
**Average Spend**: $25.00-$35.00 per person
**Audience**: - Primary Demographics: 1,200-1,500 people 
Secondary Demographics: 2,500-3,500 people
**Peak Periods**: Friday and Saturday
**Format**: Modern music genres including hip hop, rap, rave, and live music

**Plan**

1. Identify a key market disruptor and a differentiation strategy.
2. Assess market potential and audience scope.
3. Establish two themed test nights with integrated marketing.
4. Evaluate the results of the test nights to determine viability.
5. If successful, assess entrance costs and competitor reactions.
6. Evaluate scalability.
7. Collaborate with influencers to align support for a formal launch.
8. Determine the costs to implement controls and POS after the first month. 9. Measure the success impact in the first three months and plan for the ongoing format.

With a structured plan, I realized Jack was competing in a highly saturated market largely controlled by the mayor. We needed a substantial differentiator that would not directly clash with existing businesses. My initial meeting with the owner of KICX 102.5 country radio centered on understanding their market size. His answer allowed me to calculate a viable client retention rate (2-4%), leading me to propose a strategic partnership leveraging their existing audience. KICX 102.5 proved invaluable in our pre-launch market testing of "Coyote Ugly Fridays" and "Saddle Up Saturdays."

To solidify our relationship, I offered them exclusive radio partnership and sponsorship in exchange for their marketing support. Our core strategy was to establish a unique identity through Country Music. Identifying a non-competitive space, we acquired a small bar in Stroud, Ontario – our "Blue Ocean." Beyond this, we prioritized a safe and welcoming environment, a key differentiator from typical nightlife. This included approachable security and a commitment to preventing harassment.

Our themed nights, like "Open the Curtain, Save a Horse, Ride a Cowboy," aimed to create a lively, carnival-like atmosphere, with carefully managed sound to enhance the dance floor experience without disrupting conversations elsewhere. We recognized that Country Music itself would contribute significantly to the desired ambiance.

The successful launch of Random Ranch, attracting over 2500 people during test nights, validated our strategic positioning. However, our rapid success attracted unexpected competition, as our country music format also appealed to their clientele.

Anticipating potential regulatory challenges, I proactively briefed staff about a potentially biased liquor inspector. Our strict operational procedures emphasized responsible alcohol service, including providing taxis for intoxicated guests. Security was trained to be courteous and prioritize the safety and comfort of female patrons. Despite these measures, we faced a $10k fine after a visibly intoxicated young woman was discovered on our premises.