Tuesday, April 24, 2018

Krusty Krab Research Report


Research Report: Initiative for Krusty Krab in Austin, Texas
Elysia Perkins, Hunter Cross, Caleb Calderon, Ally Ener & McKenzie Sells

Situation Analysis:
The Krusty Krab Restaurant’s intended environment is Central Texas in the downtown Austin area--specifically on South Congress Street. We have to get appropriate licensing from Nickelodeon to use the Spongebob Squarepants patent, persuade a large enough investment from Nickelodeon to build the restaurant, garner enough media exposure to entice enough customers, and make the Krusty Krab a restaurant to which people in Austin and abroad would actually go (ideally more than once).

Main Stakeholders:
Stakeholders and publics include: the media, Spongebob fans, Nickelodeon, our chosen contracting company (still under evaluation), the City of Austin, other Austin restaurants, Austin families, UT students, food suppliers, children and families in Texas and abroad, the media, and the community of Austin/its population. Of these stakeholders, we feel the largest amount of time and resources should be spent catering to Nickelodeon, the media, children and families, and the population of Austin.


Addressing Nickelodeon:
Pitch and Benefits of Restaurant: The most formidable stakeholder for the Krusty Krab Restaurant is Nickelodeon. In order for this restaurant to even exist, Nickelodeon must become an investor and award the respective permissions to the Krusty Krab. Our pitch to Nickelodeon should include the benefits of this business residing in Austin. Austin’s large population and high net migration make it an advantageous location for the Krusty Krab. In the Austin metro area alone, the population surpassed 2 million people in 2015. Austin was ranked first among 50 largest U.S. metros based on net migration. The population of the city itself is 947,890. In addition to the sheer amount of people living and entering Austin daily, Austin’s atmosphere as a fun and pioneering city as well as its location in Central Texas makes it a prime spot for the restaurant.
 Investment: Additionally, the building of the Krusty Krab relies heavily on the amount invested by Nickelodeon. In order to get a better idea of how much we may need, our team found that Nickelodeon invested $15,000,000 into Super League Gaming in 2017. This was a gaming convention. They also invested $30,000,000 in Dreamscape Immersive in 2017. Dreamscape Immersive was a theme park. We feel that an investment at around $15,000,000 would be ample and reasonable.

Utilizing Media and Reaching Families:
Commercial Request: We suggest getting the word out via Nickelodeon’s social media and putting commercials on Nickelodeon. A commercial on this cable channel would reach millions of people, as Nickelodeon is remains the third most-watched cable channel, just behind Fox and MSNBC. Additionally, Spongebob Squarepants has reigned in the top 5 most-watched television shows for years. The most recent episode, which aired on April 13th, got 1.23 million views. If a commercial were to be aired on Nickelodeon, especially during episodes of Spongebob, the commercial would receive an extremely wide audience. In addition to using commercials, we suggest putting up flyers in and around Austin, and getting a billboard ad off of a few major highways leading into Austin. The content of all programs, ads, etc. should include promotional content for a Krusty Krab in Austin, Texas. The commercial would detail the same information, that it’s coming soon, family friendly, etc.

Other Stakeholders/Potential Needs:
Contractors: As far as our contractor goes, a few possible Austin-area contractors we are considering include Franklin Alan, Wurzel Builders, G Creek Construction, and Pinnacle Construction. These contractors have built high-quality restaurants in the past, so choosing any of them would likely be a good option.
Other Austin Restaurants: Other Austin restaurants may find that the Krusty Krab poses a threat to small businesses by creating a large amount of competition. Within Austin, there are thousands of businesses, and the addition of an attraction such as the Krusty Krab surely will not negatively affect the small business consumer atmosphere of Austin.
UT Students: Most young adults in college right now experienced the peak of Spongebob Squarepants popularity on Nickelodeon. Those who like Spongebob, and those who may not even like Spongebob at all, will surely see the media coverage and want to go to the restaurant considering how close and accessible it will be to them. We could also advertise to these students directly on campus through the use of posters.

Sources
Autsinchamber.com
United States Census
Index.co/company/nickelodeontv/investments
tvbythenumbers.zap2it.com/daily-ratings/saturday/cable-ratings-june-17-2017/
Statista.com
Adage.com - Nickelodeon

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