SUNSHINE CHILD DAYCARE CENTER

SUBMITTED BY (GROUP)

LUBNA G.MUSTAFA MBA-IV HAFSA KHAN BBA-VIII

SAMAEEN ZAFAR MBA-III ANJUMAN ALAM BBA-VIII
WAJEEH IQBAL MBA-IV

SUBMITTED TO

SIR IMRAAN Z. KHAN

SUBJECT
SERVICES MARKETING

DATE: 04-01-2011

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ACKNOWLEDGEMENTS

First of all, we would like to thank Almighty Allah, the OMNIPOTENT, OMNIPRESENT and
SUSTAINER of the universe, who gave us the strength, ability, courage, endless patience and
dauntless determination to work on this report.

Secondly, we would like to thank Sir IMRAAN Z.KHAN, who provided us the opportunity to
work on such a business oriented and instructive report. The preparation of this report was an
enlightening experience for us. The study conducted for the preparation of this report has
enhanced our learning of the course content and has increased understanding.
We would also like to thank friends for their moral support and assistance.

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S.NO CONTENTS PG NO

1 INTRODUCTION OF PROJECT

1.1 Executive summary 05-06

1.2 Profile of the group 07
1.3 Purpose of project and brief 08-09
1.4 Current scenario in Karachi 10

2 ORGANIZATION MOTTO & BUSINESS PROFILE

2.1 Business logo and description 11-12

2.2 Mission and vision 13-14
2.3 Short term and long term strategy 15-16

3 PROJECT CAPACITY AND DETAILS

3.1 Project capacity and investment 17-18

3.2 Proposed product mix 18-20

4 CURRENT INDUSTRY STRUCTURE

4.1 Current structure of industry 21-22

4.2 Competitors 23
4.3 Analysis of competitors 24

5 MARKET INFORMATION AND SEGMENTATION

5.1 Target market 25

5.2 Market segmentation 25-26
5.3 Market potential 27

6 MARKETING TOOLS

6.1 7P’S 28-31

6.2 Planning assumptions 32
6.3 Marketing Objectives 33
6.4 SWOT Analysis 34-35

7 PROJECT PARAMETER

7.1 Staffing requirements 36

7.2 Key Success Factors 37

8 PROJECT REQUIREMENTS

8.1 Day care requirements 38

8.2 Equipment Details Qty Cost 39
8.3 Furniture & Fixture Details 40
8.4 Human resources requirements 41

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 8.5 Building requirements and location 42

9 FINANCIAL ANALYSIS

9.1 Project cost 43

9.2 Balance sheet 44
9.3 Forecasted sales 45
9.4 Income statement 46
9.5 Cost and benefit analysis 47

10 CONCLUSION 48

11 RECOMMENDATIONS 49

12 REFERENCES 50

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 CHAPTER 01

INTODUCTION OF THE PROJECT

1.1Executive Summary:

Pakistan is a country that faces many difficulties including a weak economy, low income,
illiteracy, caste discrimination, and a lack of understanding of the importance of education.

The Child Daycare and Early Childhood Education and Development Project were developed in
response to these issues, and hope to decrease the vulnerable situation of children in the Karachi
city.

The project provides a safe and educational environment where the skills and potential of every
child is nurtured, while parents go out to work. Parents can drop their children under the age of
5, off in the morning and pick them up again at the end of their workday. While at the daycare,
children will engage in a number of educational activities that will provide them with a head start
for primary school. A reasonable fee per month is charged to the parents, to offset operating
costs.

The following goals and objectives are outlined for the project:

To ensure all the children of Karachi are provided with safe and quality childcare

To prepare children for primary school

To improve the health of the children by providing a healthy meal and/or snack each day

To provide a loving, responsive and nurturing environment for the children

To engage the children in activities that fosters their natural curiosity, initiative and hunger to
learn

To increase awareness of the importance of education

To increase self-confidence, self-respect and self-esteem amongst the children

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To alleviate the anxiety amongst parents associated with leaving their children inadequately
attended to

To reduce poverty levels by freeing up both parents to engage in economic activities

To empower women to increase their earnings

The evaluation of the program will be conducted primarily by the Project Coordinator and will
consist of informal interviews, observation, and ongoing monitoring and data collection, a yearly
survey and through progress reports.

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1.2 PROFILE OF THE GROUP

The team of the business plan consists of five members. These members are going to start the
business. We will share the ownership of the business equally. The share of the ownership will
be based on the investment of the owners. All of the owners are going to invest equally- for the
establishment of the business. These owners will take every major decision for the business and
they will share the profit or loss of the business equally. We will appoint the management of the
business and will closely supervise them. Initially, the five partners or entrepreneurs will hold all
the managerial post. However, as we grow bigger then we can consider hiring any professional
manager to take care of matters. For any decisions to be approved all of our owners must be
agree. Otherwise, the decision will not be accepted. For the better management of the businesses
well as for the communication and decision-making process to be flexible enough, the owners
will possess the power to nominate a single owner to supervise overall activities of the business.
Overall, the proposed business will be a simple partnership with equal authority of the partners in
every aspect of the business.

Among these members, Wajeeh Iqbal has extensive knowledge in marketing and sales. Hafsa
having knowledge of the human resource management. Sameen in the area of finance and
accounting. Lubna has experience in the field of marketing and in designing. Anjuman also has
adequate knowledge of finance and accounting as well as she has knowledge of the management.

We, the five members have used our extensive knowledge and ideas to generate the business
plan that we think can be very feasible with the conditions in Pakistan and can be very profitable
for the investors. Therefore, we hope this business plan will make others feel the same as we do.

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1.3 PURPOSE OF THE PROJECT REPORT:

The project pre-feasibility may form the basis of an important investment decision and in order
to serve this objective, the study covers various aspects of project concept development, start-up,
and production, finance and business management.

PROJECT PROFILE

The project is about starting a Day Care Center for infants and children of age up to 5. The
proposed plan is to offer programs ranging from Infant Care for infants of more than 2.5 months
of age to pre-school playgroup for children of age up to 5 years.

Project Brief

The study provides information regarding investment opportunity for setting up a Day Care
Center in KARACHI city. However, such a project could also be feasible for other metropolitan
cities of Pakistan i.e. Lahore, Islamabad, Peshawar, Quetta and smaller cities but initial market
research/survey would be required to identify its need.

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Opportunity Rationale

Day Care Center is the place where learning and fun become one and the primary place where
children learn social and pre-academic skills necessary for success in school. The Day Care’s
infant program is centered on the natural curiosity and energy of very young children. Childcare
programs and pre-school curriculums integrate a wealth of intriguing and engaging learning
activities that stimulate brain development in children.

The fast paced life of the cities is significantly influencing the life style of its inhabitants.
Economic pressures are compelling both parents to work towards achieving and sustaining
quality life standards. This has further added to complexity and competition of any Metropolitan
city. As a result of these social changes, the trend of sending children to Day Care Centers at a
much earlier age is gaining rapid grounds. The workingwomen will prefer a day care center to a
nanny at home because a day care center can provide proper grooming and prepare the
youngsters for admission at school in coming years. Also, the whole institution is responsible for
the child rather than a single nanny. Parents are very much worried as there are few institutes,
which can help children blossom intellectually and emotionally, while having a lot of purposeful
fun along the way.

Market Entry Timing

In Karachi, the admissions in all the educational institutions start right after the summer
vacations. Therefore it is recommended that the admissions/registrations of the Day Care center
should be started at least one week prior to the start of regular schools to make the process easy
both for parents and center’s registration staff. This will also ensure that students complete this
program at appropriate timing for getting further admission in regular schools.

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1.4 Current Scenario in Karachi

Currently there is a Day Care Centers in KARACHI with lack of facilities and area with
improper management. Children of age 6 months to 3 years are admitted in this center, which
clearly indicates the demand for such a project proposed for Infants of more than 2.5 months of
age to children of age up to 5 years.

According to population of KARACHI, almost 60% of families have children of pre-school age,
and 56% of the parents have their children at home as no proper day care centers facility is
available. According to our interview about 78 % of the workingwomen were in favor of
establishing such an institution in KARACHI. 55% of the working women suggested that such
facility should be located near their home, 30% said it should be near to workplace and 15% said
it should be near school. So the present location of day care center is suggested for our future
project as both students and parents have to be in gulshan.

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 CHAPTER 02

INTRODUCTION OF THE DAY CARE SERVICE

2.1 Name of the Organization

 SUNSHINE DAY CARE CENTER

Description of Logo

The logo for the DAY CARE center had been developed considering the children with a proper
care and give the proper behavioral task and knowledge that will help the children to grown up.
It consists of a picture of sun which gives an impression of today’s children are the future of the
nation. The color combinations of the SUNSHINE DAY CARE logo are very much impressive
and attractive with a view to forward.

Motto of the Business

The motto of the SUNSHINE DAY CARE center is going to realize.

Every Child is Special; we will focus on our customer’s expectation mostly by providing quality
service.

BUSINESS PROFILE

The SUNSHINE DAY CARE´ center planning is directed to day care providers and facility

managers. The name was chosen because of it symbolic meaning and the logo has been
developed according to that. It is intended to provide assistance in meeting the planning
requirements necessary to protect working mothers and children within the facility. Because of
the differences in size and complexity between different day care facilities, our planning guide is
intentionally generic in nature and in larger facilities for a larger personnel and make the
surrounding environment more comfortable, healthy, flexible, and also reliable for the children.

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The procedures and principles of our day care center are more easy and acceptable than other day
care center.

The youth of today are the children of yesterday, a time when they were not given the right
direction, not taught the right values, not corrected when wrong, had no support except as and
when their parents could afford to. However, a little attention and substantial time can give the
working parents who are out of the house for a major part of the day. It is well established
scientifically, that the early years of a child's life are critical in the formation of intelligence,
personality and social behavior, and that the effects of early neglect can be cumulative.

Day-care centers make child rearing easy, by sharing a mother's responsibility in bringing up her
children, and at the same time is a source of income to the teachers and staff of the centre. Since
the importance of early childhood care and education has become indispensable, so day-care.

A few day-care centers have been mushrooming all over the country in various forms. A good
day care centre helps children learn and grow in many ways and is fun, as well. Children gain
independence as they explore a world outside the home and choose from among many activities
tailored to their interests and abilities, which let them experience many successes that build up
their confidence and self-image.

Day-care centre management can be a super way for to earn money. In addition, it is a good way
to learn a lot about children, about families, about having a job, about managing money.

Our Day Care center is not in this business just to make money. This career will be often chosen
because we love working with children and we are socially responsible. Day care center usually
work long hours for minimal pay, if we consider what other professionals would get paid for
putting in a 12 hour day with little to no breaks. These days are made longer and harder if there
are problems with the families they work with. With that in mind, it might be easier to
understand the reasons for not accepting a family only as a client.

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2.2 Mission

SUNSHINE DAY CARE center will attain a position where it will be known for not only its
business but also for its contribution to the health and education sector, the society, the
environment and the country. SUNSHINE DAY CARE center will try its best to contribute
significantly to guarantee the children access to knowledge and get quality service to ensure
better physical and mental development.

SUNSHINE DAY CARE center wants to be the choices for everyone especially for the Middle
class families. All will be treated fairly with the utmost respect. SUNSHINE DAY CARE center
wants its employee to feel a part of its success. Happy employees make happy customers.

SUNSHINE DAY CARE center will that not only met our child care needs, but also provided an
opportunity to learning environment. An extra curriculum tailored specifically for children,
taught in a fun, nurturing care-giving environment. With a low cost, that of the combination of
conventional day care and specific interest children based programs. It is a start-up for kids ages
zero to five years.

SUNSHINE DAY CARE center dedicates its efforts and resources toward ensuring top-rated
care giving services with a high quality based learning environment tailored for children in these
age groups.

SUNSHINE DAY CARE center will respond to the needs of its parents and children with
excellent care giving and instruction, an advanced curriculum, flexible programs, and local
community involvement. This day care has a strong commitment to accessibility and diversity.
Its open door policy embraces all who desire to provide a better quality of care, awareness and
basic knowledge for their children. It is works to provide affordable, first-class care giving and a
broad range of integrated programs and services and innovative learning approaches.
SUNSHINE DAY CARE center will be committed to taking a leadership role in child care
services.

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VISION

SUNSHINE DAY CARE center will be aimed at achieving an enormous success in KARACHI.

It would be an enormous care center to hang out for the children. Within ten years of its
establishment, SUNSHINE DAY CARE center will be the leading care center in KARACHI city
in PAKISTAN.

The customers will be provided with quality and reliability of our services and that we expect to
lead to our own development and prosperity. We will grow fast and our diversity will be our
identity. We hope to contribute to the welfare of our investors as well as to the welfare of our
valued customers and to the welfare of the economy of PAKISTAN.

One of our most important goals is to establish long-term relationships with our clients. Our
Child Care Program had make Office Center a robust and flexible child management program
where we can listen to the needs and desires of our child care providers and child care centers,
and also the customers. This is help to grasp in the competitive market.

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2.3 SHORT-TERM STRATEGY

We will give extra care for providing quality services to our clients. Both children and parents
would be treated with equal importance and their preferences would be considered with proper
attention for the benefit of our business.

Although we are very new in this industry with very few competitors, we will focus on attracting
more and more parents to admit their children in day cares for their sound and healthy
development. All these services would be provided at competitive rate to meet the income level
of the population of our society.

Diversified services for children of various ages will be adopted by us for business expansion.
Although we are showing two child groups kid and Pre-school, we will divide kid group into two
categories and will provide them different services required by them.

Our care givers would be highly experienced and trained. We will appoint care givers according
to the ratio of workers to children. Even proper training and instruction would-be provided to
new care givers by senior care givers to maintain quality services.

We will regularly interact with our clients for their kind suggestion and recommendation as well
as for any complaint regarding our services. This will help us to know the market demand and
customer desires and we would be able to increase our service quality.

We will always give importance to the children and parents and will consider the customers
always right. Their demand and satisfaction would be our main focus.

We would be aimed to provide better quality at a competitive rate than the other day cares in our
country.

We will start our campaign before two months of starting our operation on air and it would be
continued after the opening of our business for keeping in touch with the people and developing
demand of our services. Thus, we would be able to grab the market more easily.

We have focused four target customers depending in the economic condition of our nation. But
we can change our pricing policy depending on the income level of our target market. We would
provide diversified services for different segment of our market at a different ratio.

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LONG TERM STRATEGY

In future, we would expand our business by providing various diversified services for children
including play-group and kinder-garden school facilities.

After meeting the demand of our area we would expand our business in other area within the city
in near future and it will depend upon the success of our business.

In the long run with greater customers base we would focus on achieving more cost effectiveness
in our business operation with diversified services.

Efficiency of employees would be ensured by various training programs by inside and outside
instructors.

Customer responses would value with more interaction with them and their suggestion would be
implemented for the benefit of our business.

Our pricing strategy would be change according to the income level of our customers and
economic condition of our country and the demand of our customers.

Vast marketing strategy would be adopted by us to make our business more popular among the
customers.

We would try to provide more diversified services for different target population of our market
in the long run. Our pricing strategy would also vary among various market segments depending
on their income level

Customer would be treated as boss throughout the business operation with proper care and
respect

More improved and intellectual activities would be introduced in our day care center for the
physical and psychological development of children. Even modern technologies and outdoor
activities could be introduced for improving their knowledge.

We would try to diversify our services by providing services to children up to 10 years old. For
this purpose various cultural and educational program would be introduced by SUNSHINE
DAYCARE center.

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 CHAPTER 3

PROJECT CAPACITY AND DETAILS

3.1Project Capacity It is proposed that infants of more than 2.5 months of age to children of 5
years of age be admitted in the center. There are five (5) proposed classrooms for the Day Care
Center. Two classrooms would be for Infant Care program, one for two year olds, one for Play
Group for children of age between 3-4 years, and one for Kindergarten for children of age 4-5
years old. Each classroom has capacity of 10 children. The project would have total capacity of
50 children. However, this capacity may not be achieved in the initial years of operations.

Year wise number of children (expected)

Programs Offered Year 1 Year 2 Year 3 Year 4 Year 5

Infant Care Program 5 7 8 12 15

Two Year Olds 6 3 7 8 10

Play Group (3-4 years old) 3 9 11 10 9

playgroup (4-5 years old) 6 7 8 6 7

Total 20 26 34 36 41

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Project Investment

The total investment required for this project is 1.3 million. The investment mainly covers capital
costs of 1.1 million and working capital requirement of 0.2 million.

3.2Proposed Product Mix

The Day Care Center will offer different programs for different age groups. The details are
described as follows:

Infant Care Program

The infant care program is centered on the natural curiosity and energy of very young children. It
will provide infants with lots of attention, a variety of appropriate activities, and abundant
conversation and nurturing to make the world for a baby fun, interesting, safe, and loving.
Children will be with his/her caregiver (nanny) in one of the center’s special nook areas where
he/she will experience an array of experiences especially designed to meet an infant's needs.

SLEEPING NOOK

This would be the area of the classroom where infants sleep during the day. As infants are all on
different schedules, this nook is used throughout the day for sleeping infants.

FEEDING NOOK

The Feeding Nook would be used for baby feeding.

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MOVEMENT NOOK

Infants would be able to practice their motor skills such as rolling over, sitting up, crawling,
pulling up, climbing and walking in the Movement Nook.

CURIOSITY NOOK

Infants would be given opportunities for multi-sensory plays where Infants would begin to
explore different materials and begin to understand them.

DIAPERING NOOK

The Diapering Nook will be used for diaper changing. Extra clothing and materials would also
be stored. It would also offer opportunities to interact individually with babies.

OUTDOOR PLAY NOOK

When weather conditions would be appropriate, this open-air play nook would provide a safe
and interesting place for babies.

COMFORT NOOK

The Comfort Nook would be soft and cozy place that would provide a sense of security and a
place to rest before babies move on to a more active nook.

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For two-year-olds

The curriculum for two-year-olds will provide an enriching environment with activities that are
designed to enhance child's total development in a quality early childhood education
environment. The daycare curriculum will allow two-year-old children to spend busy and
fulfilled days engaged in activities that would promote learning.

Teachers assigned for the two-year-old student group will be trained to incorporate appropriate
literature, educational materials, music, and other specially selected materials and resources, all
with the goal of enhancing the rapid changes that occur in a child's brain development in the
earliest stages of life.

Play Group (3 and young 4-years-old)

Studies have found that learning improves when children are engaged in enjoyable and
meaningful activities. That is why every curriculum will include a variety of intriguing activities
that can stimulate early brain development with a focus on creative plays. This will be a better
place where learning with activities will be focused.

Nursery school (4 and young 5-year-olds)

Nursery school Program will be filled with fun and educational activities that will be carefully
designed to help bring out a child's natural curiosity and encourage a lifelong joy of learning.
The curriculum will use themed learning units that incorporate reading, writing, mathematics,
science, social studies and more.

CHAPTER 4

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CURRENT INDUSTRY STRUCTURE

4.1 Current structure of industry

A comprehensive service that enhances the productivity of working parents by attending to the
development needs of their children. The intention of high quality childcare is tallow employees
to respond to their dual work and family responsibilities effectively to the benefit of both
families and nation. A childcare center is a facility, other Than a private residence, other than
relative or guardian, is compensated to provide care and supervision for children for less than
24hours a day. The daycare centers are reliable and affordable compared to some other kinds of
care such as governess. Some accept babies as young as six weeks old, and many allow children
to stay until they enter pre-school playgroup. Do not have to negotiate pay as with governess and
daycare centers are more secure.

Someone other than an immediate family member today cares for approximately one-half of the
children in the PAKISTAN during some portion of each day. In two-thirds of two-parent homes,
both parents work, providing a large and ever growing consumer base for the day-care industry.
In addition, there are some children live with single parents who need child care in order to
work.

Many of the small child day-care businesses are home-based, or operated out of privately owned
home. Employed mothers use center-based day care for their preschool children as their primary
source of childcare. An additional some of working mothers use center-based care as their
secondary source and use a baby-sitter or family member as their first choice. Surveys show that
more affluent, better-educated families rely more on paid care and center-based care than lower
income families, who rely primarily on relatives. The market demand for childcare has also led
to the development of chains of day-care facilities.

The daycare industry is increasing and becoming an important contributor to the gross national
product (GNP) of PAKISTAN. The reasons for this trend have been identified as:

1. Change in lifestyle of population

2.Avoidance of responsibility
3.Increase of product variety in the market.

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SUNSHINE DAYCARE center will offer services, which are vitally important in today's fast
paced, dual-income world. As an increasing number of families have become dependent on two
incomes, the need for quality childcare has skyrocketed. The lifestyle changes created by modern
living continue to fuel its steady growth Trends are very important and the Sunnyside would be
well positioned to satisfy the current and growing interest and will provide qualitative service at
moderate prices. There are few daycare centers now a day but their services are not satisfactory.

CHANGE IN LIFE STYLE

Some of the evolving trends are associated with life that is becoming busy, and hectic. People
find it difficult to provide better training/attention to their children at home as they have to go to
offices/work. As most of the people have started living separately (opposed to the joint-family
system) therefore, many of them face financial problems and women have started working in
order to support their families. A facility that could provide day care during office/working hours
would make their hectic lives easy.

AVOIDANCE OF RESPONSIBILITIES

Today’s parents could not find enough time to give proper attention to their children because of
their daily busy and hectic office/working routines. Most of the high-income family women are
involved in other social and extracurricular activities such as clubs and gymnasiums therefore,
find it very difficult to take out time for their children. A day care facility would give ease of
mind to such parents.

DAY CARE CENTER PROVIDE BETTER TRAINING

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Today many people are of the view that day care centers and pre-schools can provide children
better training and education because they have trained and educated staff, better training
equipment, and toys. This is why they have decided to start early schooling for their children.

4.2COMPETITIORS

Though we are not operating in the industry currently, we will have some core competencies
when we start the operations. In the very first stage, for the whole business, we will have a
competency that is the advantage of first mover as a for-profit day care center. We will have
some core competencies over our competitors as most of the services provided by them is not
that much satisfactory, there are a few day care centers in PAKISTAN and they usually take
preschool babies to look after not the infants or kid. Therefore, in this case we would be able to
grab the market with our diversity and quality services. We will adopt vast marketing strategy
through advertising before the opening of our business and it will continue throughout the
business operation. It will be our competency to attract more customers than other existing day
care centers.

Our caregivers, teachers, kitchen staff would be very much experienced and trained to deal with
child needs and psychology. Most important fact is that, all our managerial posts will be hold by
our five owners, so more care would be taken for the success of our business through efficient
management. Our base is our quality and uniqueness in providing services to our customers with
care.

4.3ANALYSIS OF COMPETITEROS:
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Main Competitors

1. GREEN FIELD DAY CARE:

STRENGTHS: ALREADY ESTABLISHED IN MARKET.

WEAKNESSES: MAY NOT APPEAL TO CUSTOMERS OF MIDDLE CLASS.

2. KID DAYCARE:

 STRENGTHS: ALREADY ESTABLISHED. GIVE TUITIONS WITH CHILDCARE

SERVICES.

WEAKNESSES: LOCATION - OUTSIDE OF MIDDLE-INCOME MARKET.

3. FAMILY CHILD CARE HOMES:

 STRENGTHS: ESTABLISHED IN MARKET. PERSONAL SERV ICE,

WEAKNESSES: NO PROPER ROOMS AND PLAY SETUP

CHAPTER 5

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MARKET INFORMATION AND SEGMENTATION

5.1TARGETMARKET:

Like in all other industries, segment marketing will allow the daycare center to fine tune its
service offerings and price it appropriately for the target segment. And it will also allow a
daycare center to have a clear picture of its competitors.

5.2 SEGMENTATION

GEOGRAPHIC SEGMENTATION

Geographic Segmentation calls for dividing the market into different geographic units. In the
meantime, and at least for five years, Sunshine would operate solely in Karachi. Within the first
two years, it would establish other branches in other areas of Karachi. The next step would be to
expand in other city.

DEMOGRAPHIC SEGMENTATION

In the demographic segmentation, the market is divided into groups on the basis of variables
such as age, family size, family lifestyle, income occupation, generation and social class.

In the family if the parents are working couple then someone other than an immediate family
member cares the children during some portion of each day. Single parents who need child care
center in order to work. Parents spend most of their income on their children in order to give a
comfortable life. Now a day’s most of the families are nuclear family. These people usually have
a family size from 3 to 4.

The Sunshine is located at Gulshan which is a residential area containing a large number of
nuclear families. The market has been segmented basing on the level of income of customers.

Middle class

Middle class people, the largest part of our society are always in a move to change their life
style. Today most of the middle class couple in a family work outside and nuclear families
cannot arrange proper care and security for their child to earn their livelihood With the increase
in income level, these people are demanding quality child care services in our country and

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Sunshine Daycare center would be committed to fulfill the desire of parents through proper care
and share with their children in their physical and mental development.

Upper middle class

Upper- middle class population of our nation can easily afford our daycare services for their
child. Even with the growth of various industries and enrollment in higher education, it became
very hard to manage maid servant at home to look after the baby. Even parents are also
concerned about the security of their child. Sunshine daycare would provide secured baby care
facilities to the children of these parents with proper observation.

Upper class

Upper class section of our society is very much concerned to get quality services and to provide
best guidance to their children. Sunshine daycare center would be established to scientifically
develop the early years of a child's life by helping in the critical in the formation of intelligence,
personality and social behavior.

 Clients demographic profile

Age 25 and above

Gender Female

Occupation working class

Education Educated and aware

Marital Status married

Expenditure Rs.20 ,000 and above

Income Rs.25, 000 and above

Location Karachi: Middle class areas: K.D.A, Mohd. Ali

Society, Karsaz and Sindhi Muslim. P.E.C.H.S,
Gulshan-e-Iqbal and Nazimabad.

5.3 Market Potential

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The normal school going age of children is around 3 years. Many families having children of age
between 3-5 years in age and have not admitted their children in Pre-schools. One reason is as
they think it is too early to send them to schools and is also wastage of time and money. The
daycare aims to provide such an environment in which new ways of learning would be
introduced. Children are more likely to retain information learned when they are engaged in
enjoyable and meaningful activities. The childcare programs and pre-school curriculums
integrate a wealth of intriguing and engaging learning activities that stimulate brain development
in children at pre-school stages.

CHAPTER 6

MARKETING TOOLS

6.1 7 P’S
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1) PRODUCT

Basic service: Provide care for infants of 2.5 months till child of 5 years with safe and quality
childcare. The daycare aims to provide such an environment in which new ways of learning will
be introduced by offering intriguing and engaging learning activities that stimulate brain
development in children at pre-school stages.

Feature: Continuous teacher parent interactions should be a regular feature of our day care
center.

Accessories: The accessories include TV set, DVD PLAYER, movies and cartoons for
children’s.

Service Warranty: If our customers will not satisfied than we will refund 15 days money.

Quality: The quality of our day care center is known by the qualified teachers and the highly
qualified doctor (pediatrician). Teachers assigned for the two-year-old student group will be
trained to incorporate appropriate literature, educational materials, music, and other specially
selected materials and resources, all with the goal of enhancing the rapid changes that occur in a
child's brain development in the earliest stages of life. The maids should be qualified females of
age range from 22 to 30 to ensure the parents about their child’s proper care and safety. The
maids should be at least matriculates and should go from a proper child care training program
before having the job responsibilities.

Product lines: The sunshine day care center is offering 4 different programs

Infant care program

Two year old program

Play group (3-4year old) program

Play group (4-5 years old) program

2) PLACE

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Outlet location: As the main purpose of sunshine day care center is to provide facilities to the
working women’s so the Gulshan area is suitable for day care center. The location plays an
important role so that all the required facilities could be provided without facing complexity.

3) PROMOTION

Sales promotion: we are offering 3 day free trial

Advertising: Advertising will be carried out through print ad on DAWN newspaper and
brochures will distributed in schools and offices.

Publicity: can be done through creating good relations with parents. Provide friendly
environment to staff and as well as our customers so they can easily discuss their problems. We
consider our employees very much because they are internal customers of our day care center.
The customer satisfaction is very important in the success of our business. Through providing
such environment we will gain positive word-of-mouth publicity and also the interaction
between us (service provider) and employee will turn into a strong long term relation.

Sampling: The sampling of our day care center will done in such a way that we will allow our
potential clients to let their kids attend three sessions free of cost. So, if they are satisfy they can
continue.

4) PRICING

COMPETITION BASED PRICING: we are using competition based pricing as our pricing
strategy. We have set prices according to the day care center located in Gulshan-e-iqbal. The
main competitors of sunshine day care center are green field day care center, kid day care and
family child care homes. As our target market is middle class working women and nuclear
families. The target areas are P.E.C.Hs, nazimabad, Gulshan and K.D.A. we are not targeting
areas like defense and Clifton where the day care centers like mama’s day care center have very
high prices.

Price discounts: we are offering 15% discounts for the people who will come early within 15
days.

5) PEOPLE

Recruitment: The recruitment of a supervisor of the Sunshine day care center is based on
experience, interpersonal skill, extrovert attitude, well trained and he or she must speak Urdu and
English. The selection of nurses is also based on their 6 months training and their education. The
hiring of teacher is also based on their 6 month experience along with their bachelor degree.

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Training: Teachers assigned for the two-year-old student group will be trained to incorporate
appropriate literature, educational materials, music, and other specially selected materials and
resources. And training will also give to supervisor how to interact with the parents and persuade
them. Further, teachers, kitchen staff will be trained to deal with child needs and psychology.

Motivation: All the staff including teachers, nurses, and supervisor is continuously motivated to
ensure good performance. 15% bonus per year will be given for good performance per year.

Teamwork: All the teachers, nurses and maids support each other. Because team working is an
important aspect of total service delivery. So the team of SUNSHINE day care center works in a
highly collaborative environment.

Customer education: The customer education is very important aspect in case of day care
center. Because mostly parent Contemplate that day care service provider will not look after their
children as a mother and father can and Parents are always conscious about the well being and
safety of their children at school So, for that purpose parents will be informed about the facilities
and satisfy them. Thus providing them booklets, brochures containing information of day care
and give them feeling of confidence and ensure security.

6) PHYSICAL EVIDENCE

Aesthetics of the service: the décor of the administrative room, class room, entertainment room
and the equipments for the physical activities of kids like slide, monkey bar etc

Signage: The signage provides information that where is class room, entertainment room,
administrative room and kitchen

Ambient conditions: Sun exposure in childhood is one of the risk factors for developing skin
cancer, yet little is known about levels of exposure at this age. This is particularly important in
countries with high levels of ultraviolet radiation (UVR). 3 to 5 years of age attending
SUNSHINE day care center, teachers will give instruction to stay in the shade, and a health
professional instruction to guide children to wear caps, socks. And proper air conditioning in
sunny days provided to the kids.

Employee appearance: The maids, nurses and cook should be in their proper uniform.

Equipment: Equipments include chairs, tables, shelves, cupboard and other equipments for the
physical activities of kids

Tangible elements: Books, notepad, pencils, markers and food serve to provide tangible element
of the service

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7) PROCESS OF SERVICE DELVERY

Flow of activities: Filling the form, submission of admission form and payment of admission
and monthly fees, Registration of child represents vital steps in the delivery of day care service

Level of customer involvement: In case of day care center service, the customers are highly
involved in the service delivery .The parents very much involved in the selection of day care.
After selection of day care the customer visits the day care center, meet with the staff over there.
Then ask certain questions from the service provider. After checking of everything like security,
teachers, maid they are satisfied.

6.2PLANNING ASSUMPTION

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 MARKET POTENTIAL

Total Population = 18000000

Karachi total population =12%

Working women’s =2.5%of total pop i.e. (12%)

Our Target Population = 18000000 * 2.5 % = 450000

Affordable Income Group = 25% out of 450000

= 25% * 450000 = 112500

Total Market Potential in Karachi Is = 112500

6.3 Marketing Objectives

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SUNSHINE DAY CARE center targets a new and growing market. However, our target market
did not have a loud and strong voice in society. However, their roles in the society are gradually
evolving and changing. We hope to achieve the following objectives, through our marketing
plan.

Identify the correct market for the business

Determine what they look for in the daycare center

Communicate our value proposition to this market

Assess the daycare’s position in the market

Assess the effectiveness of promotional strategy

Attract other closer market segments

Increase equity of customers

SUPPORTING MARKETING PROGRAMS

We will target our audience through Print media

I) Print ad

II) Brochures

We will give an ad on DAWN Newspaper on Sunday only

Brochures will be distributed to the offices & schools.

6.4 S.W.O.T. ANALYSIS:

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Strengths:

A sophisticated and effective learning system for child’s.

The owners possess a strong educational and background, with solid marketing knowhow.

Another benefit, the largest strength of the existing centre is financial support and funding from
the family.

Teacher student relationships.

Teacher parent relationships.

Weaknesses:

Too many people trying to make a decision, Committee approach harder to make decisions
slower.

Too limited involvement poor decisions.

Fear of doing something new.

Unwillingness to take a risk for potential gain in the future.

Poor communication can be a weakness.

Internal conflict (need for resolution process).

Some of us are involved too much and others are not stepping up.

Opportunities:

Gain corporate support through fund/grant raising

Any outside sponsorship with companies. This could mean sharing resources

Business interest in innovative education

Community education and outreach

Provide for better health and safety environment

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Larger Playground, Room to grow , Bigger classrooms Better flow in class rooms

Create better learning environment

Threats:

Another daycare may open the same location or area on the reserve. This is not a large obstacle
as there are many children in the local native communities.

Lack of funding

Lack of resources

Legal liability issues, either one large suit against The Toddler Warehouse, or significant
increases in premiums due to changes within the operating environment of the industry.

Excellent training programs that all employees must participate in.

An educated customer base that recognize the benefits that The Toddler Warehouse offers.

CHAPTER 7

35
PROJECT PARAMETERS

7.1 Staffing Needs

In charge of day care center —Because of the small numbers of children the center would be
servicing, the in charge could serve in two capacities, as in charge and as a member of the
childcare staff. However, the in charge must be on-site at all times during the day.

Staff members/teachers—Depending on the maximum number of children serviced, the center

will need two to three teachers.

State - Certified Food Server— serving food requires an on-site person certified in food service
sanitation to manage the preparation and/or service of food.

Maids— an additional full-time 5 maids would be needed.

Doctor—a child specialist would be needed to meet the emergency.

Capacity Human Resource

50 children 1 doctor, 2 nurses, 5 maids, 3 teachers, 1 food server/cook,

Total 12people.

Financial Summary

Project Cost Working capital Cost of Capital

36

1.3 million 0.2 million 1.1 million

Project Location

It is recommended that the proposed project be installed in area of GULSHAN and capacity
would be increased after construction of required number of rooms.

7.2 Key Success Factors/Practical Tips for Success

The location plays an important role so that all the required facilities could be provided without
facing complexity.

The center should target mainly working women’s and single parent because they are the ones
who are potential customers for such a facility.

Parents are always conscious about the well being and safety of their children at schools,
therefore, it is suggested that the center’s environment should ensure security and should be free
from any apparent hazard. The center should preferably not be located in a highly populated area
of students or at a location with high noise.

Continuous teacher parent interactions should also be a regular feature of the center’s day care.

It is suggested that visual and other teaching tools should be used.

A well-trained/experienced supervisor of the center would teach the new staff and well manage
the daily affairs of center.

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 CHAPTER 8

PROJECT REQUIREMENTS

8.1Day Care Center Requirement

The basic requirements for a daycare center includes Staff, Educational Tools for children, Class
Rooms, Teachers’ Room, Entertainment Room, Administration Room, Washrooms & Kitchen,
Grounds, furniture, seesaw, toys and other such items for physical activities, white boards etc.
These materials are readily available in the local market.

Equipment Details

The details of the different equipment required for the project are given as below:

Educational Tool

The proposed educational tool for the center includes TV set, DVD PLAYER, movies and other
Montessori equipments (toys, puzzles, colored blocks and colored cylinders etc). All these
equipments are easily available in the local market.

Machinery Requirement Details (educational tools)

Description Total Amount (Rs.)

Equipment (Educational Tools) 200,000

38
8.2 Other Equipment Details Qty Cost/Unit Total Cost

Other Equipment Details Qty Cost/Unit Total Cost

Seesaw (6 feet) 1 3,000 3,000

Slide 4 Feet 1 6,000 6,000

Monkey Bar (6x6) 1 5,000 5,000

Monkey Bar (4x4) 2 3,000 6,000

Games 20 500 10,000

Total Equipment Cost 25 30,000

39
8.3 Furniture & Fixture Details

Description Qty Cost/Unit Total Cost

Round Tables for Play Group 3 2,000 6,000

Chairs for Play Group 10 325 3,250

Round Tables for KG 3 2,000 6,000

Chairs for KG 10 325 3,250

Teacher Chairs for KG 1 650 650

Student Chair & Table for Younger Pre-schoolers 20 650 12,100

Student Chair & Table for Older Pre-schoolers 20 650 12,100

Cupboards & Book shelves 5 7,000 35,000

Carpet 2250 sq .Ft 40/sq.Ft 90,000

Furniture for supervisor 29,000 29,000

Beds (storey beds) 2 10,000 20,000

Cots 3 5,000 15,000

Furniture and Equipment Maintenance

The furniture and equipment maintenance process will be conducted on yearly basis.

8.4 HUMAN RESOURCE REQUIREMENT

The manpower required for operating the Day Care Center is as follows:

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Human Resource Requirement Details:

Description Qty Salary Total Monthly Salary

Doctor 1 10,000 10,000

Nurses 2 4,500 9,000

Maid 5 4,000 20,000

Teacher 3 6,000 18,000

Cook 1 4,000 4,000

Total cost 12 61,000

It is highly recommended that the maids should be qualified females of age range from 22 to 30
to ensure the parents about their child’s proper care and safety. The maids should be at least
matriculates and should go from a proper child care training program before having the job
responsibilities.

8.5 BUILDING REQUIREMENT

Covered Area Requirement

41
The covered area details for the proposed project are given in the table below:

Covered Area Requirement Details

Description Sq .ft Required

Class Rooms 1500

Entertainment Room 500

Administration Room 250

Washrooms & Kitchen 180

Grounds 5,500

Suitable Location

As the main purpose of our project is to provide facilities to the working women’s the Gulshan
area is suitable for day care center.

Utilities and Infrastructure Requirement

Basic utilities like electricity, gas and water are required for operating the daycare center.

CHAPTER 9

FINANCIAL ANALYSIS
9.1 Project Cost

Description Amount in (Rs.)

42
Machinery & Equipment 30,000

Furniture & Fixtures 232, 350

Educational Tools 200,000

Building cost 600,000

Total Capital Cost 1,062,350

Working Capital

Total Working Capital 200,000

Total Project Cost 1,262,350

9.2 BALANCE SHEET

BALANCE SHEET

Sunshine day care center

As of 1st Jan 2011

Assets Liabilities

43
 Current assets Rs Current liabilities

cash 200,000 Bank loan(short term)P/A 15000

Accounts receivable 30000 Accounts payable 10000

Prepaid expenses 7,650 Expenses payable 50000

Total current assets 237,650 Salaries payable 61000

Fixed assets Tax payable 4000

Machinery and Educational 200,000 Utility bill payable 10000

equipments
Furniture and fixture 232,350 Total short term liabilities 150000

Building 600,000 Long term liabilities

Other equipments 30,000

Long term loans payable 50000

Total fixed Assets 1,062,350 Total liabilities 200,000

Owner’s equity(lubna, hafsa,

sameen, wajeeh, anjuman)
Lubna A/c 220000
Hafsa A/c 220000
wajeeh A/c 220000
Anjuman A/c 220000
Sameen A/c 22000
Total 1100,000

Total Assets 1300,000 Total liabilities and owner’s 1300,000

equity

9.2 Forecasting sales for the first year of the business

Programs Offered Year 1 Amount

Infant Care Program 5 Rs 30000

44
 Two Year Olds 6 RS 30000

Play Group (3-4 years old) 4 RS 20000

playgroup (4-5 years old) 7 RS 38500

Total 22 Rs 118500

Admission fees 22x4000 RS 88000

1) The admission fee of all program offered will be 4000 per child

2) For infant care sunshine day care charges is RS 6000 per month.

3) For Two year old kids the charges will be RS 5000 per month.

4) For Play group (3-4 Years old) the the charges will b RS 5000 per month

5) For Play group (4-5 Years old) the charges will b RS 5500 per month

6) The forecasted total sales per month of first year will be RS 206,500

9.3 INCOME STATEMENT

INCOME STATEMENT

Sunshine Day care center

For the year ended dec 2011

Net sales Rs 1,510,000

Cost of sales (50000)

45
Gross profit Rs 1460,000

Operating expenses

Salaries and wages exp Rs 732000

Advertising exp 400,000

Utility exp 120000

Tax exp 4000

Equipment cost 30000

Total expenses (1286000)

Net Income Rs 174,000

9.4 Cost and benefit analysis

Total cost of our project is 1.3 millions. Out of this1 million will be total capital cost and 0.3
million will be working capital for the project. The major share of total capital cost is building
cost, as this project requires construction of new rooms. Other capital cost is comprised of
machinery and equipment, furniture and fixtures and educational tools.

46
Different baby care products manufacturers will sponsor cost of the project. The rest of the cost
will be bear by the owners. Though a fee will be charged from the users of the services but
revenue will be used for the benefit of the staff of the day care center.

10. Conclusion:

Traditionally in Pakistani culture childcare responsibilities fall on the extended family. Yet with
new social mobility women are increasingly moving away from their families. With inflation
continuing to rise each year, the family now requires dual or supplemental incomes to cope up
with the situation and to have a better life. This trend has created a need for quality childcare

47
services. SUNSHINE DAY CARE center exists to provide the childcare services that would be
beneficial for the working parents. SUNSHINE DAY CARE value proposition is quite clear and
quite easily distinguished from others in the market. We offer uniquely premium childcare
services to our customers.

The business provides very high profit opportunity for us and there is a scope for helping the
economy and society as well. Very few industries have all these sides. But the day care center is
not yet popular in PAKISTAN as it is in western countries. However, the situation is changing
and along with the upcoming private investment in the sector, the energy is increasing day by
day. The investment requirement is low comparative too their business. Therefore, we hope we
will be able to draw a profitable margin from the very first year of our operations while we will
be able to contribute to the development of the society and the economy. That is why, we think
that the SUNSHINE DAY CARE center will be a good prospect and we are looking forward for
every possible support from all the people involved in the industry.

11. Recommendations:

Concentrate on employee’s attitude to make parents satisfied.

All employees should be well trained, so they should be acquainted with children needs.

48
Improve the quality and capacity of day care center with the passage of time to cover customer
other than working women’s and make day care center increase in future.

Proper sanitary system should be maintained.

12. REFRENCES:

 Book: Services Marketing by Govind APTE

49
 Reader, Unit for Child and Youth Research, Institute of Social Sciences

 In Proceedings of the 7th Early Childhood Convention, Volume 2, pp.99-108. Nelson.

 Swaminathan, M. 1985: Who Cares? A Study of Child Care Facilities for Low-Income
Working Women; Centre for Women’ Development Studies
 Financing A Child Daycare Business Article By: Saima Jabeen
 Carolina Abecedarian Project. (1999). early learning, later success: The Abecedarian
study. Executive summary [Online]. Available: http://www.fpg.unc.edu/~abc/
 National Institute of Child Health and Human Development Early Child Care Research
Network (NICHD). (1998). The NICHD study of early child care [Online]. Available:
http://www.nichd.nih.gov/publications/pubs/early_child_care.htm

 http://www.dailytimes.com.pk/default.asp?page=story_9-6-2004_pg7_39
 http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Islamabad/10-
Apr-2009/Day-care-centres-lack-basic-facilities/1/1
 http://www.scribd.com/doc/48687/Day-care-marketing
 http://www.bplans.com/child_day_care_services_business_plan/strategy_and_implement
ation_summary_fc.cfm#ixzz159aCnvjS
 http://ezinearticles.com/?Starting-A-Day-Care-Center-Can-Be-Profitable-When-
Following-These-Five-Ingredients-Of-Success&id=475501
 http://www.child-psych.org/2010/10/day-care-and-school-readiness-closing-the.html

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