Research Report On Party Shop

RESEARCH Report on “PARTY SHOP”

Project Report Submitted by

R S Raghav 07BS3146

Table of Contents

Executive Summary

2

Introduction

3

Project Expectations

4

Project Results

5

Conclusions & Recommendations

9

Appendices

12

Executive Summary This report is intended to serve as an overall summary of the project, and as a guide to enter a new business industry known as party shop (Entertainment Sector). The report summarizes the project expectations, the processes of the opening up a business, and the project results. Most importantly, it identifies specific recommendations for venturing into a new business. In the conclusions and recommendations section, specific suggestions are provided with respect to each of the project components. The company will be dedicated towards organizing & hosting parties in the city of Kolkata. The owners of the business are already running a fast food chain. This will be an additional Advantage

Introduction Project Background Name of the company: Owner: Type of Business

Central party place Mr. Ajay Kumar Party Organizing (Weddings, Birthdays, Anniversaries, Corporate Get together, kitty Parties)

Product/Service Analysis Description The business intends to compete in three areas. The first area is organizing regular parties like New Year Parties, Christmas parties, Anniversaries and Birthday Parties. These Operations will involve the core business activities of “CENTRAL PARTY PLACE”. The second area is Customized Party Hosting for Premier Customers to suit their Personal needs like corporate parties, Kitty Party and occasional Get Together. Apart from that the company would also venture into organizing parties for schools & colleges. The third area is providing catering and fast food services to the visitors. Advantages In the local market place there is limited direct competition in the party organizing business, there are no places that cater to the party hosting market in Kolkata.None of these products are necessities, but they compete in a selected market that has several

advantages. Despite the ups and downs of the market place, Party Hoppers will continue to consume these products and services. People will still continue to celebrate events and occasions and they tend to view the purchase of these types of products and services as being of importance to the occasion. We believe that the business will compete very favorable in terms of price, location, and selection.

MARKET ANALYSIS The market is full of opportunities for such kind of business where there is little competition and with the service sector of the country growing at a rapid rate there is no time for people to arrange such kind of parties at home. That’s why there is a huge demand for a professional party organizer who knows exactly to organize wonderful parties and within a short period of time. This company would mainly face competition from Banquet Halls, Farm houses and garden resorts which a hot favorite of party goers due to ample space and professional management. Another species of competitors are the clubs & Disco’s which attract the youth of the city and with the slogan of the corporate becoming “work hard & party hard” these Clubs are minting money like anything. Looking at these factors we can definitely go for entry in this sector but before that we need to understand our customers well, for which we have to conduct a market Survey. OBJECTIVES OF THE SURVEY 1) To find feasibility of such a project in Kolkata 2) Find Market segments 3) Pricing strategy

QUESTIONAIRE NAME: Gender О Male

О Female

Age Group (years): О Up to 13

О 13-19

О 20- 30

О 30-45

О 45 and above

О Service

О Business

О Self-employed

Occupation: О Student

О Unemployed

Income: О 15000 – 20000

О 20000 – 25000

О 3 0000 – 35000

О 35000 & above

Please indicate your preference to the following Questions: 1. How Often do u party in a year? a. Less than 5 times b. 5-8 times c. 9-10 times d. 10 times or more 2. How much do u spend when you throw party ? a. 10000 or less b. 10000-15000 c. 15000-20000 d. 20000-25000 e. 25000 or more 3. Generally how many people attend your party ? a. Less than 20 b. 20-50 c. 50-100 d. More than 100 4. You like to organize the party at home? a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree

О 25000 – 30000

5. You like your party to be organized by a party house? a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree 6. Party shops make organizing parties simple and memorable. a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree 7. Quality of food and Service is important for you when you organize parties through Party Shops a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree 8. I would prefer the party to be indoor a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree 9. Would u like a DJ to play at the Party a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree 10. Please tick the occasions that you generally like to celebrate by organizing a party. 1. Birthday 2. Anniversary 3. Cultural Events 4. College Parties 5. Christmas Party 6. New Year’s Party 7. Corporate Get Togethers

SAMPLING STRATIFIED RANDOM SAMPLING Since the samples have been collected from different age groups and various segments of the society, we can say that the population sampled is heterogeneous. Hence we will use stratified random sampling. The survey was undertaken in the city of Kolkata at various locations like city centre , park street, esplanade , Salt Lake. The age group of the respondents varied from 16-60 considering the fact that these will be the people capable of affording a party or responsible for throwing a party. The Sample has been partitioned into sub- populations or strata which are mutually exclusive and collectively exhaustive. Here in this case we can stratify the population on the basis of their age group a. b. c. d. e.

16-25 26-35 35-45 45-55 55 and above

We should remember that the age group between 16-25 would mostly comprise of college students and executives who have just joined work. These people would be the one who mostly party and would be one of our potential targets since they would be mostly celebrating their birthdays and parties like New Year and Christmas. The second group generally consists of adults who are professionals and generally celebrate their anniversaries and they would also be takers of our corporate party package. Since these people are financially strong we can generate good revenue by servicing these clients. Next category will generally consist of parents who would like to celebrate the anniversary and birthdays of their kids. The last category would involve people aged 55 & above .these people would be interested in celebrating their anniversaries. Within these strata, the elements are selected randomly. However we must keep in mind that after taking the opinion of these various strata of the sample population do we segment the market. Here we have assumed that most people who were interviewed preferred to celebrate their parties outside organized by professionals and their favorite occasion to celebrate was Birthdays and New Year Parties.

A. B. C. D.

Number of respondents Surveyed Number of samples with Inconsistent data Total Sample Size (A-B) Number of Teams(of 2 Members each) employed for the Survey E. Area of Survey F. Time Taken for the Survey

350 50 300 5 Kolkata 2 weeks

Analyzing the Survey Results Frequency Distribution Strongly Agree

Question

Agree

Neutral

Disagree

Strongly disagree

You like to organize the party at home?

20

80

10

40

150

You like your party to be organized by a party house?

200

40

20

30

10

Party shops make organizing parties simple and memorable

160

50

5

40

45

Quality of food and Service is important for you when you organize parties through Party Shops.

120

50

20

60

50

I would prefer the party to be indoor

150

30

80

20

20

Would u like a DJ to play at the Party

220

20

2

48

10

Frequency of Party per Year 160 140 120 100 80 Nos. Of people

60 40 20 0 Less than 5

5-8 times

9-10 times

10 or more

Turnout at the Party 160 140 120 100

80 Nos. of people

60 40

20 0 Less than 20

20 - 50

50-100

More than 100

How much do the people Generally spend on the Party 180

160 140 120 100 80

Nos of people

60 40 20 0 10000 or less 10000-15000 15000-20000 20000-25000 25000 & more

Analysis By analyzing the data provided by the respondents it can be concluded that the people of Kolkata love to party a lot and 50 % of them do not like the party to be organized at home because of all hassles and space problems. More than 65 % of the respondents like the party to organized by a professional organization like the party shop because of their efficiency and expertise is catering and hospitality business. More than 53% of the people believe that Party shop makes organizing their party simple & memorable. To more than 120 people the quality of food served and the quality of the service was the

most important criterion . A whooping 220 people responded strongly that their party should have a DJ and 150 people strongly wanted the party to be indoor whereas the remaining 80 were indifferent to the place of the party , they just wanted to party. It was surprising to note that more than 150 people surveyed partied more than 10 times in a year which signifies the people of Kolkata are party animals. We also came to know that the average turnout at most of the parties was between 50-100 people followed by 80 people who responded that their parties generally have a turnout of 20-50. The most acceptable range of amount that people generally spent was found out to be Rs 15000/20000/-. So we can conclude that the Company should definitely Go ahead with the project keeping the above analysis in mind.

INVESTMENT & RETURNS Intial Investment Land & security Research & Market Survey Charges Advertising and other legal expenses Other Administrative Expenses Total

300000 50000 50000 20000 450000

Recurring expenses Rent Salaries Electricity Food & Drink Decoration Banners Music Security Tax Misc Maintenance Emergency Services Total

35000 50000 15000 236250 180000 10000 80000 10000 70875 20000 20000 15000 monthly Annually 742125 8905500