Kidz Party Adventures
Member Names Here
Service Feasibility
Analysis Study
Concept Statement
Service Description
– Business Name - Kidz Party Adventures
– Provide complete birthday service just for boys.
– Mimic two successful businesses just for girls:
Libby Lu and Sweet and Sassy.
– Boys would dress up in their favorite theme costumes, play games,
receive prizes.
– Each theme party is unique and is catered to the boy’s desires and
creativity.
– Boys can choose from a wide variety of adventures, such as dinosaurs,
superhero, swashbuckling pirates, and wizards.
– Take care of everything from planning the party to the clean-up.
– Held at our convenient Dayton, Ohio location.
Target Market Description
– Parents, single parents, and grand parents who don’t have the time or
energy to plan and conduct a birthday party.
– While the general target market is considered the entertainment industry;
Kidz Party Adventures will specifically target boy themed birthday parties
for boys 4-12 years old.
Concept Statement
(Continued)
Value Proposition
– Local demographics for Montgomery, Greene, and Warren Counties
117,748 children, ages 4-12
59,510 of them boys
If parents spend an average of $200 for a birthday party,
Local market can be estimated at $11.9M.
Women aged 20-44 account for 57% of the workforce
– “time poverty”, challenge of juggling work and life responsibilities continue
to fuel growth in service industry sectors like birthday parties.
Differentiators
– First mover advantage in offering boy-themed birthday party
services.
– Dedicated to helping boys create special memories
Express their individuality and imagination.
Service excellence is achieved by creating an environment where the
birthday boy and his guests feel like heroes by participating in
professionally designed and facilitated theme activities.
Concept Statement
(Continued)
How the Service is Sold
– Sell services from a store front located near either the
Fairfield Commons Mall or The Greene.
– Theme prices range from $15 to $35 per boy.
Description of Founders
– Management team:
Member 1
Member 2
Member 3
Member 4
The team has 59 years of combined work experience with
expertise in sales, marketing, manufacturing, purchasing,
engineering, training, party planning and entrepreneurship.
Marketability of the Service
Solve a problem
– Boy-themed party venue – currently does not exist
Make someone's life more efficient
– Save parents time (time poverty)
– Party planning, preparation, clean-up, hosting
– Less stress
Make someone's life more effective
– Quality time can be spent with children
– Children have unique party experience
•Administered using Surveymonkey.com
•Given to friends and family
•89 responses out of 140
• 64% Response Rate
•28 Questions
•Parents
•Sons
•Daughters
http://www.surveymonkey.com/s.asp?u=99753456374
Survey Summary
Primary
Response
%
How many children?
How many typically attend?
Pay $ per child?
2
11 to 15
$5 to $9.99
49%
35%
47
How long should party last?
What is typical budget?
Favorite name for business?
2 Hours
$51 - $100
Party
Adventures
63%
35%
40%
Chuck E.
No
54%
88%
Question?
Chuck E. Cheese’s or Pirates?
Girls attend Libby Lu or Sweet
N Sassy?
Survey Demographics
Gender - 60% Female
Age Bracket - 42%, 25-34 years
Education – 78% College graduate
Annual Household Income – 47% >$100K
Marital Status – 90% Married
Age of Kids
– Boys 9.3 years, ± 8 STD
– Girls 8.0 years, ± 6 STD
Did Survey Results Meet
Expectations of Target Market?
Demographic surprises
–
–
–
–
90% Married
47% over $100,000 household income
78% college educated
Not a random sample
Between Chuck E. Cheese’s and Pirate Party
– 54% choose Chuck E. Cheese’s
Libby Lu and Sweet & Sassy
– 88% not attend birthday parties at either place
71% of Daughters would attend a boy themed party
41% Chose Party Adventures for company name
73% spend less than $150 on child’s party less presents
Overall, survey results did not meet the expectations of
the target market
Profile of Target Customer
Families with boys age 4 – 12 years
Dual household income $50,000+
Working parents crunched for time
Families with 2 to 4 children
Higher levels of disposable income
Parents, single parents, and grand parents
Higher levels of education
Usability Test
Steps to be taken:
–
–
–
–
–
Invite friends or family for a boys birthday party
Rent a party room facility at a VFW, church or other location
Select a popular boy theme and provide party supplies
Purchase food, drink, games, prizes, and decorations
Set-up facility to simulate the building layout
How potential customers would use your service
– Pay a discounted fee for the party
– Participate and experience a boys birthday party
– Provide feedback as to the quality, quantity, delivery, and timeliness
of the service
Features of the service would be easy or difficult to use
– Food offering should be easy
– Picking themes and decorating may be a challenge
– Building layout (game room and party room) could be difficult
What changes would be made to the service based on this test
– Potential improvements in quality of food, service, and layout
Building Layout Concept
PARTY & DINING
AREA
FOOD
SERVICE
10,000 Square Feet (min)
GAME
ROOM
PRIZES
Intellectual Property
Trademarks
– Kidz Party Adventures
No trademarks
– Closest
Kidz Blast – The Ultimate Private Party
Kidz Partiez Plus.com
Patents
– None found
Internet Search
– Party Adventures (Milton,VT)
www.partyadventures.com
Prompted name change
First/Second Mover
First Mover Advantage
– Yes, first in offering “Boys” birthday parties
– Weak first mover position:
Lack a technological advantage
Switching costs are low
Some strategic valuable assets
– Location and brand
Second Mover Advantage
– Yes, entering an existing birthday party industry
– Cost advantages
Industry/Market and
Competitive Environment
Feasibility Analysis
Description of Industry
Industry
– Birthday Party Industry
Many options for a child’s birthday party outside the
home
No specific NAICS, SIC for Children’s Birthday Party
Industry
– Full Service Restaurants (NAICS - 722110)
– Amusement and Theme Parks (NAICS - 713110)
– Amusement Arcades (NAICS - 713120)
– Museums (NAICS - 712110)
– Bowling Alleys (NAICS - 713950)
Description of Industry
Industry (cont’d)
Many Options - Fragmented
Franchises – Chuck E. Cheese’s
Museums – Boonshoft
Bowling Alleys
Skating Rinks
Specialty Facility – Pump it Up, Build a Bear, Recreation Centers,
Libby Lu’s, Sweet & Sassy
Primarily offered as an additional service not primary business
Industry Size - Local
– Local Opportunity
Montgomery, Warren, Greene Counties
Target customers – 117,748 children 4 -12
50% boys – 59,510
Average family would spend $200 per party
Market size - $11.9M
Porters Value Chain
Porter’s Value Chain - Primary Activities
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
Sales
Internal
Receiving & Party
Party
Inventory
Management Facilitation
Marketing
• Party
• Planning
• Serving food
• Strategy &
Supplies
• Props
• Costumes
• Food
• Preparation
• Entertaining
• Theme
• Prize Bags
management
• Food
service
• Presents
management
Sales
Service
• Customer
service
• Game
facilitation
• Clean-up
• Facilities
• Direct sales
• Customer
management
• Delivery
External
Service
• None
• None
• Brochures
• Website
• Advertising
• None
Porter’s Value Chain - Support Activities
Internal
Administration
External
General Management
Legal
Strategic Planning
Accounting
Quality Management
Finance
Human Resources
Recruiting
Benefits
Interviewing
HR Consultant
Education
Performance
Technology
Development
Process Optimization
Process Design
Game Development
Childhood
development
consultant
Customer Interaction
Resource
Procurement
Food & Supplies
Props
Costumes
None
Porter’s
Five Forces
Bargaining
Power of
Suppliers
Threat of
New Entrants
Rivalry
Among
Current
Competitors
Threat of
Substitute
Products or
Services
Bargaining
Power of
Customers
Threat of New Entrants
Economies of Scale – possible to franchise across the
country and gain some first mover advantage, difficult to
protect concept
Capital Requirements – low/medium
Differentiation – industry already offers a diverse and
differentiated offering would be challenging to create and
sustain further differentiation
Cost Advantages Independent of Scale
–
–
–
–
Managerial Know-how – low advantage
Proprietary Technology – low
Raw Materials – NA
Learning Curve – low
Government Regulation – NA
Overall, Threat of New Entrants is High
– Makes Industry Attractiveness and Long Term
Profitability Low
Threat of
New Entrants
Bargaining
Power of
Suppliers
Rivalry
Among
Current
Competitors
Threat of
Substitute
Products or
Services
Bargaining
Power of
Customers
Bargaining Power of
Customers
Number of Customers is Significant – 59,510
boys in local market
Commodity – product is differentiated, long term
differentiation would be challenging
Customer Profits – target households earning
$50,000 or more
Backward Integration – low
Overall – threat of Customers is low
– Increases industry attractiveness, and long
term profitability
Threat of
New Entrants
Bargaining
Power of
Suppliers
Rivalry
Among
Current
Competitors
Threat of
Substitute
Products or
Services
Bargaining
Power of
Customers
Threat of Substitute Products
or Services
Large number of substitute services
SUBSTITUTES
SWITCHING EASE
HOW TO DIFFERENTIATE
Bowling
Challenging – time consuming and
expensive
Offer fast low cost solutions
Skating
Challenging – some food, no cake,
or decorations
Offer package deals including
to include food, cake, and
other services
Pizza
Easy – typically no games or fun
things to do
Include games and
entertainment
YMCA
Challenging – don’t offer food, cake
or decorations
Provide food, cake, and other
services
Overall – threat of Substitute services is very high
Threat of
New Entrants
Bargaining
Power of
Suppliers
Rivalry
Among
Current
Competitors
Threat of
Substitute
Products or
Services
Bargaining
Power of
Customers
Bargaining Power of
Suppliers
Large number of suppliers
Little threat of forward integration
Product differentiation in cost and quality
– Low cost and low quality products
Generic cups and plates, no fancy printing
– Higher cost and higher quality products
Products are associated with specific themes
Firms are moderately important to suppliers
Overall – suppliers have little power
Improves market attractiveness and potential for
long-term profitability
Threat of
New Entrants
Bargaining
Power of
Suppliers
Rivalry
Among
Current
Competitors
Threat of
Substitute
Products or
Services
Bargaining
Power of
Customers
Low to moderate in regards to rivalry
among competitors.
Rivalry
Among
Current
Competitors
Factors that increase rivalry in an industry:
– There are a number of competitors in our region
with no clear leader in the market  incentive to compete
harder for market leader position
– The fixed costs can be relatively high  facility, props and equipment,
liability protection
– Switching costs are low
– Exit costs can be high-facility, props and equipment
Factors that decrease rivalry in an industry:
– Product is not perishable and does not need to be stored or sold
immediately
– Product is unique-focusing on specific age group of boys
– The market for party services is growing  more customers without
necessarily taking directly from a competitor
Threat of
New Entrants
Bargaining
Power of
Suppliers
Rivalry
Among
Current
Competitors
Threat of
Substitute
Products or
Services
Bargaining
Power of
Customers
Threat of
New Entrants
Summary
Porter’s Five Forces
Force
Threat of New Entrants
Bargaining Power of Customer
(Buyers)
Threat of Substitute Products or
Services
Bargaining Power of Suppliers
Rivalry Among Current
Competitors
Overall
Bargaining
Power of
Suppliers
Industry Attractiveness and
Prospects for Long-Term
Profitability






Rivalry
Among
Current
Competitors
Threat of
Substitute
Products or
Services
Bargaining
Power of
Customers
Industry Structure
Fragmented
–
–
–
–
Few barriers to entry, no economies of scale
Large number of small to medium size competitors
Little experience required to enter industry
No size advantage when dealing with
customers/suppliers
– No competitor has significant market share
Birthday parties not primary source of revenue
– Possible opportunity in consolidation
Stage of Growth
– Mature
Slow growth, service refinement
Competition
How many companies compete in the industry?
Numerous direct and indirect competitors
– Most cases birthday parties not core business
– Examples of businesses that may cater to birthday parties in
addition to their core business:
● Indoor play centers
● Restaurants
● Craft Stores
● Suites for sporting events ● Bowling Alleys
● Retail stores
● YMCA/Rec. centers
● Adventure golf
● Skating rinks
Market share distribution within the industry:
Very few businesses in our region focused ONLY on
birthday parties.
—Oogles N Googles, located in Maineville, OH
—Pump It Up, located in Miamisburg, OH.
Competition
Sales in industry are increasing
– Families looking for services to plan and execute the events so that busy
parents can spend quality time with their children.
– Oogles N Googles and Pump It Up experiencing growth in number
of franchised locations operating
33 Oogles N Googles franchises opening in the first year nationwide
230 Pump It Up locations nationwide since 2000.
Existing firms, first-mover advantages?
Not technology leaders
— Do not have strategically valuable assets
— Do not have customer switching costs
— Majority of firms providing birthday party services  not core business.
— Chuck E. Cheese's may have a some advantage in reputation/image
that does include children’s birthday parties.
—
Competition
Distinguishing attributes for Kidz Party
Adventures:
Targets young boys, ages 4-12 years old
Provides themed parties and entertainment that
focuses specifically on boys’ interests
Other firms provide general play and game areas
Some firms specifically focus on girls
VRIO Analysis
The Question of Value: Does a resource enable a firm
to exploit an environmental opportunity and/or neutralize
an environmental threat?
Environmental Opportunity
–Result of trends in American parenting styles
More two income households, fewer children per household, time
poverty, etc.
More disposable income per child
Inclination to spend that income on time saving services and
items that alleviate parental guilt  like birthday party services
Resources
–Founding team and respective networks
Experience ranging from operations management to marketing,
event planning, and early childhood education
VRIO Analysis
The Question of Rarity: Is a resource currently controlled by
only a small number of competing firms or are the resources
used to make the products/services or the products/services
themselves rare?
The resources for this type of business are not at all rare
The Question of Imitability: Do firms without a resource face
a cost disadvantage in obtaining or developing it?
(Is what a firm is doing difficult to imitate?)
There is no cost disadvantage to obtain resources
Our business concept would not be difficult to imitate
VRIO Analysis
The Question of Organization: Are a firm’s other
policies and procedures organized to support
the exploitation of its valuable, rare, and
costly-to-imitate resources?
Resources are valuable
Resources are not exceptionally rare
Resources are not very costly to imitate
Business is organized to best use the resources
that we do have in our founding team and
corresponding networks
Applying the VRIO Framework
If a firm’s resources
are:
The firm can expect:
Not valuable
Competitive Disadvantage
Valuable, but not rare
Competitive parity (equality)
Valuable and rare
Competitive advantage
(at least temporarily)
Kidz Party Adventures’ resources are valuable, but
not rare, resulting in competitive parity, not a sustainable
competitive advantage.
Organizational
Feasibility Analysis
Management
The management team of Kidz Party
Adventures
The team has 59 years of combined work
experience with expertise in sales,
marketing, manufacturing, purchasing,
engineering, training, party planning and
entrepreneurship.
Human Resource Needs
Skills Needed
Operations
Sales
Marketing
Finance
Accounting
Human Resources
Legal
IT
Facilities
Catering
Purchasing
Training
Early Childhood Development
Party Planning
Entrepreneurship
Legend
Member
1
X
X
Member
2
X
X
Member
3
X
X
Member
4
New Hire
1
New Hire
2
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Outsource
= Team Member Skills
= Future Needs
= Needs to be Outsourced
X
X
X
X
Resource Sufficiency
The following non-financial resources will
help Kidz Party Adventures successfully
execute its business plan:
– Industry expert
– Expertise in Management, strategic planning,
and managing a family owned business.
– Entrepreneurship experience.
– Party planning and early childhood
development background
– Sales, marketing, and training experience
Resource Gaps
Resource gaps will be filled through outsourcing
the following:
– Marketing needs beyond what the team can provide
(media, printing, brochures, advertising, etc).
– Finance, Accounting, Human Resources,
Legal, and Information Technology.
– Catering of food, snacks, and birthday cakes will be
outsourced initially.
As the business grows, future hires will provide
core competency in:
– Catering
– Early childhood development
– Party planning
Location
Why is the firm located here?
Ideal location based on customer
demographics
– Middle to high income earners
Prefer a central high traffic location
– For example: near mall area
Describe geographical location of the firm:
Location between Fairfield Commons and
The Greene
Is your firm near a cluster of similar firms?
Direct competitors not closely located
Substitute competitors in general location
Kidz PA
ChuckE
Conclusions
Would We Pursue?
–
–
–
–
–
Low barriers to entry
Significant indirect competition
Difficult to differentiate service
Low switching costs
Lack of sustainable revenue stream outside of
birthday parties (like Libby Lu)
– No technological or key assets
– Easily replicated
Overall Feasibility Conclusion
– Determined not feasible