- What additional revenue and market opportunities might theChildren party businesses investigate? (300 words please)
Case study:
The children’s party market is no jelly and trifling matter.“It’s a huge industry,” Tim Jenkins writes after his interview withAmanda Frolich from Amanda’s Action Kids. According to Frolich,“People spend an absolute fortune on their children’s birthdayparties and fortunately the recession hasn’t affected ourbusiness.”
Like Paul Lindley, founder of Ella’s Kitchen, who used hisparenting experience to launch a successful start-up, the partybusiness with low barriers-to-entry sees numerous parent smallbusiness concepts. Michelle Hill incorporated her own partybusiness called The Land of Make-Believe after spending hourscreating props, themed food, and thinking up games suitable for herfive-year-old son’s shared birthday party. This birthdayspectacular experience helped her identify a clear gap in themarket.
According to Tim Jenkins, a modest £50 party spend per UK childequates to an annual £35 million for a single school-year group.With £250 not untypical for an outsourced party service, it is easyto value the industry in the hundreds of millions.
The Land of Make-Believe party concepts include themes forcheerleaders, pirates, and fairies; cowboys and Indians; witchesand wizards; Fairy Godmother, Teddy Bear picnic, glamor, and Greasethe musical with Pink Ladies and T-Birds. Party concepts that tendto appeal more to boys, perhaps relying less on dressing up anddancing, include club energy sports, go-karting, football, armygames, reptiles and pets, and fire engine–themed parties. Leisurevenues also offer some stiff competition with swimming pool visits,laser quest, bowling, cinema, and restaurant visits also popular.Business Model Essentials Successful party concepts need a certain“wow” factor that is popular with the children, but also satisfiesparents’ social needs too. Thus, it is important to also considerappropriate services for parents. Maslow’s hierarchy of needsframework perhaps offers some useful cues: shelter, comfort,psychological self-actualization—be that social linger space,self-service hot beverages, a glass of wine, or a latte bar. Partyproviders need to balance novelty with tried and tested formulas,perhaps offering evolving theme linkages that might anticipate newfilm releases, particularly sequels. They look to reduce parentalhassle with branded off-the-shelf invitation cards and party bagsthat appeal particularly to cash-rich, often time-poor, parents.Entrepreneur.com neatly summarizes the party service offering:“You’ll plan the theme, provide costumes (unless guests arrivewearing their own), décor, food, favors and other assorted goodies,entertainment, and clean up afterward so parents can enjoy thefestivities instead of running themselves ragged.”
The business model usually has relatively low start-up costs—awebsite and a telephone number will generally suffice. Wardrobe,props, and base supplies are not insignificant items and should becarefully considered in financial planning. There is some widevariation in the complexity of offerings in the sector from a lighttouch and self-contained entertainer magician or comedian whoseequipment might be limited to a costume, a music system, and someprops that fit into a large suitcase or two to the full-serviceparty-planning-solution provider offering a venue, full catering,the all-important candle-covered cake, decorations, and party bags.Three core components are required for a successful partyoperation, namely venue, catering, and entertainment. Fixed costscan be kept low, but are dependent on avoiding the purchase of aspecialized vehicle and/or long-term premises by using aclient-arranged venue. Children’s party planning is clearly not ajob for someone craving regular Monday through Friday, 9 a.m. to 5p.m. hours. The ability to successfully interact with children andtheir parents, balancing controlled fun and calm authoritativeness,is particularly important but often rather taken for granted.
Marketing Communication Angles
A reputation for running successful parties is crucial tostimulate positive word-of-mouth referrals via parental socialnetworks, accentuated by frequent contact at school pick-ups anddrop-offs, but also on social media, and in particular parentingwebsite communities such as mumsnet.com, which offers locallistings, discussion boards, and advice-based content. In additionto successfully hosting enjoyable parties, which should drivepositive referrals, a number of low-cost marketing activities canbe implemented to help generate future bookings such as
- Arranging to share a business card or small colour flyer viathe party bag that is often given to departing guests.
- Posting flyers at local clubs and church halls.
- Advertising in directories (telephone and web).
- Donating a free party to a school/community charityauction.
- Writing advertorial content accompanied by strong images in thelocal press (note parental permission and ethical issues aroundpublishing photos of children).
- Creating a website and social media presence on key sites.
- Performing at community group/school events.
- Printing car stickers to build brand awareness and share weband telephone contacts.
Rugged Earth Adventures
One ex-army officer’s start-up inspiration led to a birthdayparty business centered on a military outdoor adventure theme.Having experimented with a number of temporary locations, thebusiness finally settled on a large piece of underutilizedagricultural land that comprises a mix of scrub land, combined withlines of commercially unsuccessful shrubs and trees.
The customer segment that this business proposition appeals tois mostly parents of boys—approximately 75 percent of participantsare male, aged between 6 and 10 years. The children participate ina two-hour party that sees them run around outside in a naturalenvironment. Issued with a foam bullet Nerf gun and protectiveglasses, participants are initially put into two teams, jungleversus desert, utilizing authentic British army terminology. Asecond game, the less frenetic snipers-and-seekers, is a form ofhide-and-seek using realistic camouflage costumes. Then the youngpeople are carefully instructed on how to thoroughly cook their ownsausage, which is served as a hot dog, and the party concludes withtoasted marshmallows. During one of the well-timed rest periods, apicnic basket is offered to the participants around the campfirewith a variety of foods—an array that is low in chocolate and bigon fruit and vegetables, which is appealing to parents, but it alsoincludes less healthy but popular cupcakes and crisps. Withoverprotective parents, toy guns that fire projectiles, and an openfire, the safety briefing is taken very seriously and uses a highlyauthoritative army style. Children are regularly reminded aboutsafe behavior requirements around the fire pit, particularly whenwearing flammable costumes. Compliant use of safety glasses isparamount, with regular and direct reinforcement of the safetyrules taking place. Hosting and supervising parents are made tofeel at ease, provided with access to self-service hot and colddrinks and a place to perch. An informal satisfaction polling takesplace just prior to the end around the campfire; positive responsesare anticipated, thanks to a fairly simple formula that is wellexecuted. The opportunity afforded to parents to relax whilewatching a group of children enjoy a totally stress-free afternoonis actually quite enjoyable. The business income comespredominantly from weekend parties, with the current site offeringa capacity of three or possibly four parties per day. Each partycan entertain 10 to 24 young people and costs between £120 and £295(£12 to £20/child, excluding cake and party bags, which are £5 perchild extra). Activity days, attractive for dual working parents,are also offered during the Easter and summer school holidays,priced at £26 to £34 per day. The revenue generated coversoperating costs after a very short operational period.
