BUSINESS OPPURTUNITY

In an ever changing fast paced world, where the trend is drastically shifting towards
nuclear families, both the parents of the family being employed and having very little time for
their children, the focus is shifted towards how one can make this little time spent with their
little children momentous. In a nuclear family the parents get to focus all their efforts and
concentration on their children only to ensure that they remain happy all throughout. Hence the
growing number of nuclear families have given an impetus and also created a need for an
industry that provides services specialized only for children

Birthday is one occasion that is most awaited every year both by the child as well as his
parents. All parents would like to make their child’s birthday a special occasion that is ever
remembered by their child. In addition with the increasing purchasing power, parents care little
about the expenditure to host a grand show for their children. However, the constraint lies in
the event planning and organizing of the special occasion while parents are consumed with
their works. Here lies the opportunity to develop an event management service for kid
parties that would relieve the parents of the burden of planning the event and enjoy the
celebrations without any stress and strain. The industry catering to such specialized services
is very limited in Bangalore which gives a potential for such a segment to grow.

Apart from catering to the demand of a working family having heavily burdened office,
such a service would also take care of the demands of the social world organizing a special
occasion of special recognition with utmost professionalism and dedication.

Bangalore’s growth has been exponential, both in terms of its urban sprawl and
population. Bangalore’s population is presently estimated to be 80,84,676 which comprises of
7,09,838 children belonging to the age group of 1-7 years i.e. almost 10% of the
population. Further, Bangalore’s population growth rate has been 35% and is expected to
touch 1 crore by 2012. However, considering the urbanization pace in Bangalore agglomerate
that has contributed to the shifting of population to Bangalore, the figure of one crore is

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estimated to be reached much earlier. All these statistics indicate that there is a wide market
that could be catered to both at present and in future.

PRODUCT/SERVICE:

“GALAKIDZ” is primarily a service business that will offer personalized service to our clients
with respect to the event management of their kid’s birthday party. It will specialize in
organizing children’s birthday parties entirely, right from sending invitations, setting up the
party to clearing away so that our client’s can relax and enjoy their child’s big day. Our range
of services includes:

1. Designing and printing invitation cards as per the requirements of our clients and
sending them to the guests who are to be invited.
2. Venue finding services to fix a venue for the party to be conducted after taking into
consideration factors like accommodation for the number of people invited, the amount
our client is willing to pay for the venue etc.
3. Providing decor services to transform or give a new look to the party venue that
stimulates children. The decoration services can be availed from the basic party ware
with balloons to a more extravagant themed party dressing with props.
4. Conducting games and activities, where in lies the thrust of the party fun. Our task
would include, organizing creative games and events for the children creating a fantasy
world, providing both visual and audio entertainment such as action, dance floor etc.
5. Catering service would include the provision of tasty healthy and innovative food for
children’s parties which could be tailored to the theme, accommodating special dietary
requirements including organic menus
6. Arrangement of the right type of return gifts or goody bags depending on the
requirements of our clients
7. Photography services: we would also have a photographer present at the party to
capture the sweet memories of the child.
8. Clearing up services so that the parents can relax at the end of their child’s big day

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Customers can either book for the whole package or any one or more of the services depending
on the requirements or budget.

Unique selling proposition (USP)

1. Our service is personalized service catering only to a special segment of the society,
hence having a greater caliber to serve the segment in comparison to a generalized
service provider.
2. By aggregating a complete range of party related services, “GALAKIDZ” will offer its
customers the ease of one stop shopping.
3. The principal USP of our service will lie in the expertise hired, which will be engaged
in providing unmatched services with utmost professionalism ensuring maximum
efficiency while minimizing the possibility of error. This will place us in a competitive
position as a premier provider of party management services.

MARKET ANALYSIS

Target market and customer profile:

Our target market may be divided as follows:

1. Age group: we would mainly target parents of those children belonging to the age
group of 1-7 years. Most parents are highly ecstatic about their child’s first birthday,
however many parents would also like to celebrate the on coming birthdays to satisfy
their child’s desire. The age group is restricted to 7 years as neither the child nor the
parents desire to celebrate the birthdays in a grand manner any further. But this may not
be the case in all situations.
2. Income group: our target markets are middle, upper middle and the upper income
group families, couples or individuals of Bangalore. We choose these groups because
they are most able to afford as well as willing to pay for such a service.
3. Working class: the fast pace of life we live in leaves very little time for extra things we
would like to, and one such thing is the planning of our lovely child’s birthday party.
Thus this service is targeted to the working class who cannot find time out of their busy

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 schedule to plan such parties. “GALAKIDZ” will fill this need by being available to
take on the burden of planning so that people can spend time on more important things,
like family and friends. Further the overwhelming detail needed to plan a good show
for your child is too large a constraint to place on people not trained in the area of event
management.

Competitors:
“GALAKIDZ” is in a unique position of competition. Though the number of firms offering
children specialized, event management services are limited in Bangalore, they posses the
advantage of being in the market longer and thus having more experience, established
reputation and client base.
Another group that could be listed as competitors are the people who wish to organize their
own events without the benefit of assistance as it will help them to internalize the cost planning
and also will be able to add personalized touches that have meaning with in the family.
However our group of talented and creative expertise will help us overcome these competitors
and create an unparalled service.

Market growth:
Bangalore’s population growth has been 35% and is expected to touch 1 crore in near future.
Increase in population implies increase in the number of children belonging to the targeted
group and hence more birthday parties. Further the demand for this service can also increase
considering the rise in income and the corresponding purchase power in the hands of the urban
population and also the growing needs for building interpersonal; relations within the family
and social groups.

Place:
The “GALAKIDZ” office will be located inside the city limits of Bangalore on M.G.road
as it is easily accessible and well known location which would provide the ease of location
and save time of our clients to reach our office.
The office space required would not exceed 500 sq ft floor area as it has to accommodate only
the administrative staff. The other employees will mainly be engaged in the field work and will
not require an official environment to work in. Since initially we plan to open only one branch,

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for the purpose of convenience to customers we would also encourage meeting with clients in
social settings such as restaurants, coffee houses, the clients home and also take orders over
phone. When the company accomplishes considerable growth in terms of revenue and profit
we will extend branches in other parts of the city.
The office environment will display a high degree of professionalism in terms of its working
and will be equipped with the latest business technology such as telephone systems,
computers, fax machines, printers and software. The office will have a secure storage area of
supplies and equipment used in events like decoration items, cameras etc.

Promotion:
As stated earlier, that our client base is predominantly the middle to upper income group
families and individuals. Hence, we must take care that majority of this market’s needs are
catered to. Our marketing must, thus convey them the idea of releasing them from task, freeing
their time for family and friends and promise of a worry free event. Keeping in mind these
aspects, we have developed our marketing strategy as follows:
1. Hoardings: Attractive hoardings appealing both to parents and children will be placed
in strategic areas like Malleshwarm, Commercial Street, Kormangala in order to have a
wide and mass appeal, spreading awareness regarding the existence of our business.
2. Internet advertisements: Since internet is being used by people almost everyday,
advertisements in the form of pop ups on recognized sites like Yahoo and Google
would also help in capturing the target market.
3. Print advertisements: We will tie up with newspaper agencies to distribute the
attractive pamphlets containing services offered by us on a door to door basis in
selected localities
4. Word of mouth referrals: Since this is a service based business, our marketing would
be predominantly by word of mouth as this will help generating sales leads the local
community through customer referrals. This will require developing affiliate
relationships with not only the customers but also other product and service providers
like caterers, wholesalers of decorations and other party items etc who also gain from
the growth in our business.

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 5. Quantity based discounts: Discounts based on the number of services availed of and
number of people to be catered to will be given

Pricing:
‘GALAKIDZ’ deals with a diverse range of services. Hence, the pricing will vary depending
on the number of people to be invited, the choice of venue opted by the clients and the specific
services to be availed by the client. The prices of each service rendered will be based on the
current prices prevailing in the market and will also depend on the pricing strategy of firms
providing us the materials to conduct events.
Assuming an order for 150 people our price for full event management service will range
from Rs 50000 to Rs 120000 which includes the cost of hiring the venue, cost of purchase of
material required to conduct the event, cost of services provided in the form of conducting
activities and games, cost of printing and distributing invitation cards and profit margin.

Sales forecast:
By beginning on a smaller scale, GALAKIDZ has the foresight to grow at a rapid pace to keep
up with the demand we wish to maintain a steady rate of sales growth. We expect to have at
least one client per week in the first six months giving us an average estimated revenue of Rs
20.40,000 for the first six months. We expect to increase by 20% half yearly based on the
increasing awareness of our service.
The projected sales (in terms of revenue) are shown below:
1st Year 2nd Year 3rd Year
1st 2nd 1st 2nd 1st 2nd
6months 6months 6 months 6 months 6 months 6 months
Projected Rs. Rs. Rs. Rs. Rs. Rs.
sales 2040000 2448000 2937600 3525100 4230000 5076000

ORGANISATIONAL PLAN:

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The management team of “Galakidz” will be small in the beginning and as the sales increase
the organization structure will also broaden.
The primary employee is the founder i.e. AMITA.N.JIVRAJANI who will supervise all event
plan and execution. The organization structure will be as follows:

OWNER / PROPRIETOR

EVENT MANAGEMENT TEAM ADMINISTRATION TEAM

DECORATORS EVENT INTERIOR DESIGNERS

ANDACTIVITIES
ORGANISERS

The administration team will comprise of employees to take and confirm orders after giving a
Description to the clients about the various services they can choose from, to maintain
Stores account of decoration materials in stock, to attend enquiry calls, to deal with caterers and
Maintenance of books of accounts etc.
The event management team will consist of the people who will actually execute the work at
the party venue. This team will function as one with constant communication through weekly
staff meetings, email, and message boards. All jobs are interrelated. The performance of one
effects that of the other; each team member expects nothing but best from each other
Should Galakidz grow beyond its estimated size, more positions in specialized areas will need
to be added as well as additional site support and office assistance. To fill these positions it is
looking for energetic, teachable, detail-oriented persons who want the potential to grow and
improve their skills within the organization. Galakidz to be the best; therefore, they will hire
those who want to succeed.
OPERATIONAL PLAN:

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‘GALAKIDZ’ will start its operations from its office located on M.G.road by sending direct
emails to parents of young children in Bangalore. The mailer will announce open house
invitations to visit the facility. The operations of the firm are associated with the services
provided and hence are listed below:
1. Invitation cards: We will have tie ups with local printers providing us their services at
reasonable rates. However the designing of these cards will be done by creativity
specialists hired by our organization having qualification in animation or any similar
field. The distribution will be done either through post or courier services as desired by
the client. We would also use personalized communication media like emails and
telephones to add a personal touch to the process. This service will be offered at the
discretion of the client.
2. Venue finding services: Galakidz will have tie ups with different party halls in
different locations covering the entire city as well as different party halls having
different rental prices providing an elaborate list for the customers to choose from.
3. Decoration services: We will have fixed local providers of decoration and party items
from whom we will purchase decoration items as and when needed. The firm will also
keep stock of the frequently used items so that it does not suffer from shortage of such
material at any point of time. The organization will hire an interior designer who will
work in co-ordination with the team of creativity specialists (hired for the purpose of
designing invitation cards) to decorate the party venue giving it an innovative look
4. Games and activities: This would require the assistance of well experienced youth
who would energize the party environment with their ability to stimulate the children,
excellent communication and event management skills. They will also take care of the
visual and audio entertainment at the party venue. Our entertainers will arrive 30-60
mins before the party to set up.
5. Catering: We will have tie ups with “SAGAR CATERERS” for providing the mouth
watering food making it a perfect day and the cakes will be ordered from the “SWEET
CHARIOT” Centers for they can be trusted for the quality of their products.

Party Booking:

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To ensure that our clients get the party they require we would recommend that the clients book
at least 6-8 weeks in advance so that the arrangements regarding party venue and distribution
of invitations can be made
The booking will be confirmed on receiving 50% of the entire cost of the event management as
an advance deposit.
All prices will be subject to change at any time with the exception of confirmed bookings. The
final payment will be due 7 days before the party date.
Written notification expressing the clients wish to cancel the party is required and the
following charges will apply
More than 42 days- 0%
29-42 days - 20% of deposit
15-28 days - 40% of deposit
8-14 days - 60% of deposit
7 days - 80% of deposit
The above charges will be deducted from the deposit received at the time of confirming the
order and the balance shall be refunded back to the client.
The host/parent is responsible at all times for the general supervision of children within the
party venue. Our responsibility is strictly restricted to the supervision of party activities
provided by us.

Launch of our service:

We will have a launch party at our office located at M.G.road. We would also rent the vacant
office spaces around our office in the same complex to accommodate our guests. Our guests
would include our prospective business dealers i.e. party decoration item providers, caterers
etc. we would also send invitation cards to our target customers living in the vicinity so that
they can take note of the facility provided by us. The launch party will be on a Sunday there by
giving an opportunity for most people to come and know of our services.

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FINANCIAL PLAN:

Start up costs and sources of finance:

A summary of the total initial funds required and the mechanism of their funding is shown
below:
PARTICULARS AMOUNT(Rs.) AMOUNT(Rs.)
Start up costs:
Legal 12,500
Stationery etc. 21,000
Consultants (Lawyers, Real estate agents etc.) 30,000
Advance deposit (for renting office) 2,75,000
Advertising (Launch party, Brouchers etc.) 1,00,000
Miscellaneous 25,000
Total Start up expenses 4,63,500
Start up Assets needed:
Cash and Bank balances 1,25,000
Computers and Laptop 85,000
Furniture and fittings 3,75,000
Total Assets needed 5,85,000
Total Requirements 10,48,500

Funding:
PARTICULARS AMOUNT(Rs.) AMOUNT(Rs.)
Owner’s Personal Funds:
In the form of cash 3,33,000
Sale of Investments (in shares and debentures) 2,15,500 5,48,500

Mortgage loan from bank 5,00,000

Total capital and liabilities 10,48,500

‘GALAKIDZ’ wishes to be a debt free establishment. However, outside financing is the most
viable option to finance the start up costs. The cost of future operations of the concern will be
financed from the profits earned.

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The projected financials of the concern are shown below:
GALAKIDZ
PROJECTED INCOME STATEMENT
PARTICULARS 1st Year 2nd Year 3rd Year
Amount(Rs.) Amount Amount(Rs. Amount(Rs.)
(Rs.) )
Sales 20,40,000 24,48,000 64,62,700 93,06,000
Less: Cost of Sales 9,18,000 11,01,600 28,27,000 39,57,800
Gross Profit 11,22,000 13,46,400 36,35,700 53,48,200
Expenses:
Payroll 3,60,000 3,60,000 9,50,000 11,40,000
Sales and Marketing
Expenses 4,28,000 4,28,000 8,96,000 7,20,000
Depreciation 23,000 23,000 46,000 46,000
Maintenance and Utilities 5,400 5,400 12,000 12,000
Rent 1,50,000 1,50,000 3,15,000 3,30,750
Total Expenses 9,66,400 9,66,400 22,19,000 22,48,750
Profits before interest 1,55,600 3,80,000 14,16,700 30,99,450
Less: Interest 32,500 32,500 65,000 65,000

Net Profit 1,23,100 3,47,500 13,51,700 30,34,450

NOTE:
• Depreciation is charged at 10% p.a. on furniture, fitting, and computers.
• Interest is charged at 13% p.a. on the loan taken from bank.
• Rent per month is taken at Rs. 25,000 with an annual increment of 5%.

BREAK EVEN ANALYSIS:

Number of parties organized at break even point: 27
Revenue at break even point: Rs. 22,95,000
We will break even approximately in 7 months.

RISK FACTORS:

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 1. Though the current market for such specialized services is limited, there is a high scope
for growth which will encourage the entry of more firms thereby increasing
competition.
2. Our services are dependent on the operational plans and strategies of our business
dealers and hence any changes in their working pattern may have an adverse effect on
our business.
3. Our target customers are limited only to the population of Bangalore and thus a large
part of the national market is left uncovered giving a scope for growth to competitors.
4. Since ‘Galakidz’ is a service based business, hardships might be faced in convincing
customers about the quality of services provided.

MITIGATION OF RISK FACTORS:

1. Concentration on advertising and promotional activities to spread awareness of

services provided on a larger scale.
2. Taking feedback from customers who have already availed the service in order to
develop on the loopholes and hence ensure quality services.
3. Leveraging the expertise of employees in providing better customer satisfaction in
order to competitively position ourselves as a premier provider of such specialized
services.
4. Planning strategies for quick expansion to tap a larger market.

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