CASE ANALYSIS
Marquee: The Business of Night Life
1) The main issue with opening a second club in New York City is that Tepperberg does
not want this second club to be competing for customers with Marquee. In order to avoid
this, Tepperberg should form a target audience for the second club that does not overlap
with Marquee’s customer base. The average Marquee customer is 30 years old, which is
relatively old for the nightclub scene. Targeting an audience much older than this would be
difficult because it is going to be a small segment. A better option would be to target
customers in their early twenties. New York City is home to an array of colleges, meaning
there is an endless amount of college students thirsty for a taste of the New York City
nightlife. The problem with this segment is that they have not had the chance to work for a
number of years and therefore do not have a lot of excess funds to spend at the clubs. In
order to attract this younger crowd and remain profitable, a second club should aim to be
relatively cheap as well as non-exclusive in comparison with other New York City clubs
(such as Marquee). The goal here is to keep the college crowd flowing in throughout the
night without having to wait in lines and pay steep prices.
Meanwhile, Marquee should re-establish a reputation as a high-end nightclub (opposite of
the proposed second club). In order to do this, Marquee needs to attract celebrities and
