Running head: KIDS HEAVEN 1

Kids Heaven - Beyond Fun!

Done By:

Ameera Al Mansoori – ID#

Layla Al Mansoori – ID#

Mona Al Qassimi – ID# s960002509

Zubaidah AbdulRahman – ID# C00281812

The Higher Colleges of Technology

MBA 5403

Marketing Management

Dr. Roudaina Houjeir

KIDS HEAVEN 2

Table of Contents

Title Page…………………………………………………………….……………………………….1

Table of Contents…………………………………………………………………………………….2

Executive Summary……………………….…………………………………………………………5

Section 1 –Introduction………………………………………………………………………………6

Section 2- Current Situation – Macro Environment……………………….…………………………6

2.1) Environmental analysis……………………..………………….……………………….6

Section 3 – Current Situation – Internal………………………………………...…………………..9

3.1) Company Resources………………………………………………...………………….9

3.2) Company Objectives………………………………………..………………………….10

3.2.1) Mission Statement………………………………………………...………….10

3.2.2) Vision Statement………………………………………………………..……10

3.2.3) Corporate Objectives………………………………………………...……….10

3.2.4) Marketing Objectives…………………………………………………...……10

Section 4 – Current Situation – Market Analysis………………………………………………...…11

4.1) Market Analysis………………………………………………………………..………11

4.1.1) Market Definition……………………………………………………...……..11

4.1.2) Market Size……………………………………………………………..……11

4.1.3) Market Segmentation………………………………………………………...13

4.1.4) Industry Structure / Strategic Groupings…………………………………….14

4.1.5) Porters 5 Forces Analysis…………………………………………...……….15

4.1.6) Competition and Competitors Strengths and Weaknesses…………………..16

4.1.7) Market Share………………………………………………..……………….17

4.1.8) Market Trends……………………………………………………………….18

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Cont. Table of Contents

Section 5 – Current Situation – Consumer Analysis………………………………………….…….19

5.1) Consumer Analysis…………………………………………………………………….19

5.1.1) Nature of Buying Decisions…………………………...…………………….19

5.1.2) Participants………………………………………………….……………….20

Section 6 – SWOT Analysis…………………………………………………………….………….21

6.1) SWOT………………………………………………………………………………….21

6.2) Critical Success Factors (CSFs) in the Industry…………………………………….….24

6.3) Sustainable Competitive Advantage (SCA) …………………….…….……………….26

Section 7 – Market Research…………………………………………………………….………….28

7.1) Information Requirements…………………………………………………….……….28

7.2) Research Methodology……………………………………..………………………….28

7.3) Research Results……………………………………………………………………….30

Section 8 – Marketing Strategy………………………………………………….………………….35

8.1) Marketing Mix 4Ps and Service Life Cycle……………………………..…….……….25

8.2) Market Share Objectives and Service Life Cycle…………………………..………….40

Section 9 – Implementation……………………..…………………………….…………………….42

9.1) Personnel Requirements………………………………………………….…………….42

9.1.1) Recruitment Methods…………………………………………….…………..42

9.1.2) Responsibilities…………………………...………………………………….43

9.1.3) Incentives…………………………………………………………………….45

9.1.4) Training Required………………………………………………...………….46

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Cont. Table of Contents

9.2) Financial Requirements…………………………………………….…………………………..46

9.2.1) Capital Fund…………………………………………………...……………..47

9.2.2) Budgeting for Departments……………………………………………….….48

9.2.3) Financial Statement…………………………………………………….…….50

9.3) Information System Requirements (Marketing/Management) …………….………….51

9.4) Monitoring Results and Benchmarks…………………………………………….…….52

9.5) Contingencies………………………………………………………………….……….53

9.5.1) Accidents at the Center……………………………………...……………….53

9.5.2) Fire………………………………………………………………..………….53

9.5.3) Any types of Disaster Affects the Center………………………………....….53

Section 10 – Scenarios………….……………………………………………….………………….54

Section 11 – Conclusion & Recommendations……………….…………………………………….55

References ……………………………………………………………………………...…………..56

Appendix Table……………………………………………………………………………………..59

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Executive Summary

This report was commissioned to analyze the current situation of Kids Heaven. We have explained

how the company was started and we have discussed the environmental factors that are affecting the

performance of the company that showed the problems the company has faced and/or is still facing

in the political/legal, economical, socio/cultural and technological fields. We have also discussed

the company’s resources in regards of the finances, people, skills and timings as well as the

company’s and marketing objectives to find ways to improve Kids Heaven’s performance. Every

business has to go through certain stages to ensure the business will be prosperous. This report

examines these stages, which are current market situation, market size, market segment,

strategically grouping, market share, current market trend and the need of business like Kids heaven

in our chosen market. We have also analyzed the market using porters 5 forces, studied competitors

strength and weakness. We also examined the nature of consumer’s buying decisions, recognizing

the need and the process they go through before making this decision. Marketing tools and

techniques helped to identify internal and external factors that might benefit or affect Kids Heaven.

The information required is related to major decision-makers (parents or guardian) to attract

potential customers (children) for this business concept testing. The research methodology is

quantitative research for market research. The results show that there is high potential for Kids

Heaven in the market. In implementation phase, hiring and training will be done after proper

selection of the candidates. Each of the appointed staff will have responsibilities and training based

on position needs. In initial stage, there will be less manpower but in the growth stage more talents

will be recruited. We have predicted some future scenarios such as expansion of the center also

tackling new competitors entering market. We are planning to expand with extra fun filled activities

for kids such as skating, ice board skating and karate classes. We will conduct market research to

identify the interest of the parents, their children and their expectations from our center.

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Section 1) Introduction

Kids Heaven is a small company, started by a group of friends who are mothers. The idea behind

this project is to find a place for kids to go to and be themselves, explore their hidden talents and

find out what they are really interested in. It is a place where they will learn something new about

themselves while having a good time and most importantly a safe place where parents could leave

their kids and be sure that they are not only doing something useful, but also having fun while

doing it. It offers classes in arts & crafts, creative dancing, music, photography, gardening and

cooking, with plans to expand in the future by including activities such as sports and languages for

kids from the age of 2 to 16 years old. Qualified instructors who would look after them and guide

them into finding their hidden talents supervise them at all times.

Section 2) Current Situation – Macro Environment

2.1) Environmental Analysis

The Marketing Environment is affected by many factors, however the main factors are Politics,

Economics, Social/cultural and Technology (PEST). See figure 2.1.1

Figure 2.1.1.: PEST Analysis

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1. Political & Legal Factors. Politics are stable in RAK, and people are barely affected by the

world’s politics. So, that does not affect our business in any way. However, legal work

when we first decided to open the center was a bit tough to get done. We need to get papers

from different government offices and it was a long process of legal work. Things have

improved once it was all done and signed and at the moment there are no legal factors

affecting our business.

2. Economics. The changes of economics around the world, affected RAK indirectly. After the

financial crisis in 2008, people became aware of the importance of spending their money in

the right places. That encouraged them to spend more on the education of their children.

Moreover, the level of living has increased, which encouraged more parents to send their

kids to private schools. See Figure 2.1.2 below. That increased their interest in spending

more money on their kids development. Another problem we face is labor cost, the prices of

labor change a lot according to the country’s law as well as the laws of the country of the

labor.

Figure 2.1.2: 2010-2013 Locals & Expats Numbers in RAK Private Schools

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3. Social/Cultural Forces. Society these days is full of competition, in our case, parents

competing on whose kids are more creative. Mothers have also started working more than

years ago, accordingly, they started socializing more. That makes it a necessity to find a safe

place to put your kids in for a couple of hours. Older kids have started indulging in activities

and hobbies, and in RAK there are no places to support that except Kids Heaven. RAK

Academy and Kids Paradise at the Hilton Beach Resort offer some activities around the

year, but they offer them at specific times (i.e. after school hours and not all year around),

and they only offer those activities to older children. Kids Heaven is the first place to open

in RAK, that includes several creative activities for kids of different ages and under one

roof. We are the only company at the moment in RAK that targets both the locals and the

expats as the other places that offer similar activities target expats mostly and older kids

only. They are also mostly in Al Hamra, which is very far for most people living in RAK.

4. Technology. As we all know, we live in a time where technology is a main part of our lives

and kids these days learn how to use that technology at a very young age. In so many

families, kids spend most of their time on their computers or watching TV and it is very

hard to get them off this addiction. We try to get them out of that environment and into a

different environment where they need the minimum use of technology. We try to keep our

environment a place where the kids don’t need a TV or a computer to have fun, which is

very difficult as at the beginning they tend to get bored easily, but with patience and some

time they start getting interested in the other stuff. However, that doesn’t mean we don’t use

that technology for our own benefit. We use the most modern software for picture editing

for photographers and our sound system for the music and dance classes are up to date. We

also use new software for our managerial work.

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Section 3) Current Situation – Internal

3.1) Company Resources :

- Financial – When Kids Heaven first started, we had to take two loans, one from a bank and

one from Khalifa Funds. The rest of the capital came from the 4 partners. We also have to

rent the building Kids Heaven is accommodating.

- People – 4 owners and 22 employees who are well trained to handle the following positions:

Management (General, Finance, HR, Marketing, IT & Administration).

A teaching staff (Instructors & Coordinators).

Security Guards.

Receptionist.

Cleaning Ladies.

The management team picks those employees carefully and they are interviewed thoroughly

to make sure they are qualified, good with kids and responsible. They are also sent to

training on a regular basis to make sure they are up to date with their methods with the kids.

- Time – The company is operating 6 days a week from 9am-2pm and 4pm-8pm

- Skills – Other than the managing skills the owners of the company have which are General,

Finance, HR, Marketing, IT & Administration skills, there are instructors of different

specializations ( Arts, Music, Dance, Cooking, Gardening and more)

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3.2) Company Objectives:

3.2.1) Mission Statement

To discover young people’s hidden talents and encourage them to be productive and creative as kids

and as adults.

3.2.2) Vision Statement

Guided by our belief in the benefits of creativity, our staff are motivated to inspire the kids to look

deep within to find their hidden talents and to pursue those talents. We aim to make our center a

heaven for kids to explore their creativity and to have fun while doing so.

3.2.3) Corporate Objectives:

- To encourage creativity among local and expat kids of RAK.

- To be recognized as the No1 center in RAK .

- To expand and improve our services and number of branches.

3.2.3) Marketing Objectives:

- To attract more parents to bring their kids to the center.

- To increase the number of returning and new customers.

- To increase customer satisfaction to help spread the word.

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Section 4) Current Situation – Market Analysis

4.1) Market Analysis

4.1.1) Market definition

The unique selling proposition (USP) of Kids Heaven will be a “one stop venue for creative

engagement of young and energetic minds”. Kids Heaven will focus on the kids’ development and

enhance their creativity. The anticipated market for Kids Heaven includes families with children

within the ages of one to four, five to nine, and ten to sixteen. Each section shall have a specific

qualified instructor. These groups shall include both males and females. Children from all

nationalities residing or visiting Ras Al Khaimah shall also be welcomed.

4.1.2) Market Size

Kids Heaven intends to target the families of children from age group from 1-16 years who are

residing in or visiting Ras Al Khaimah. The population of Ras Al Khaimah for the year 2013 stands

at 422,000 as per the National Bureau of statistics, UAE (Department of Economic Development,

2013). See Figure 4.1.2.1. and Figure 4.1.2.2.

Figure 4.1.2.1.: Population of Ras Al Khaimah 2012-2013

(Department of Economic Development, 2013)

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Figure 4.1.2.1.: Population Estimate by Age Group & Gender 2013

(Department of Economic Development, 2013)

The target population is 17.8 % of the Ras Al Khaimah population including Emiratis and the

expatriates, which includes men and women. This number, however, is bound to increase in the

future. As per the statistics, the birth rate has grown at a rate of 5.8% over the past six years. The

reason for this is the increase in foreigners in the UAE plus an increase in the birthrate. With time,

we would also expand or decentralize to cater to this increase in market size throughout the UAE

(Department of Economic Development, 2013).

Another parameter that Kids Heaven is targeting is based on the workforce statistics. Out of the

total workforce, more than 50% are employed and we are targeting households who have extended

families with kids of targeted age (Department of Economic Development, 2013). The geographical

location of the target market comes approximately 25 to 30 kilometers from the center of the city of

the Ras al Khaimah. Specifically, household locations in the following areas are Al Nakheel,

Khuzam, Al Sham, Berairat, Julphar, Jazeera, Al Dhait and Al Rams.

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4.1.3) Market Segmentation

The Market segmentation is divided into several segments based on the demographic, geographic

and psychographic as shown in the table below 4.1.3.1.

Table 4.1.3.1.: Market Segmentation: Demographic, Geographic, and Psychographic

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4.1.4) Industry Structure / Strategic Groupings

The flow chart demonstrates the Kids Heaven’s industrial structure.

Figure 4.1.4.1: Industry Structure

The strategic features of the two companies mentioned below are similar to our business. Below

table shows each strategic characteristic.

Table 4.1.4.1: Strategic Dimensions and Characteristic

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4.1.5) Porters 5 Forces Analysis

Table 4.1.5.1.: Porters 5 Forces Analysis

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4.1.6) Competition and Competitors Strengths and Weaknesses

There are quite a few organizations providing lessons in art, craft, dance, music etc for

children aged 16 and under in Ras Al Khaimah. The following table illustrates the major two

competitors and their strengths and weaknesses.

Table 4.1.6.1.: Major Competitors Strengths and Weaknesses

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4.1.7) Market Share

Figure 4.1.7.1.: Market Share

The market is currently dominated by two major players and others are small facilities that offer

specific services to specific age sets, most facilities offer basic services and no ability to advance.

Providing an all-inclusive service, quality at reasonable prices would gain a competitive edge over

the others to achieve a market share of 20 percent within the first year since families can now take

kids of ages to one facility, which will offer a wide range of activities and services.

This market share is bound to increase with time as kids and families realize that we offer unique

services as opposed to the others. Also, as children begin going to our business, their friends will

soon follow and the market share will increase rapidly.

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4.1.8) Market Trends

The research results for early childhood services sector showed that the demand for child

development centers is considerably higher than the supply. The need for this market is developing

and well welcomed by the UAE. Therefore, there was increase in the education budget to build

knowledgeable and more productive future generation (Zaman, S.,2014).

Another reason to develop this sector in the UAE is that there is an increase in the number of

women workforce. In 2010, approximately 25 percent of Emirati women were employed and this

number is accepted to increase further (Early Years’ Education Key to UAE’s Vision 2021, 2012).

It is a competitive environment where every parent wants their kids to be more creative, different

and multi-talented compare to other kids. Therefore, parents considered such services for their kids

for extra curriculum activities and improving their socializing skills.

Some kids are naturally talented so to polish their talent parents seek for professional support. The

current market trends are specialization, customization to address customer needs based on

nationality, culture and values, new areas like Arabic calligraphy, 3D Art and animation, sand art,

fusion music etc. These market trends are promising in that it shows a good market to start a kids

and family facility.

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Section 5) Current situation –Consumer Analysis

5.1) Consumer Analysis

5.1.1) Nature of buying decisions

Consumer buying decisions are defined by the factors like ethnicity, age, income, gender, ability of

the child, values, prestige, status, tradition, etc. The high-income group may choose exclusive areas

like horse riding, music etc. An expatriate will mostly choose his or her traditional art form. Some

others may choose to cross boundaries to learn fusion or western music. The below demonstrates

what influence customer buying decisions depend on all the below factors.

Figure 5.1.1.1.: Buying Decision Influential Factors (Kotler, P., & Armstrong, G., 2010)

The consumer of KIDS HEAVEN will pass through all the below processes before and after

purchase of our services to make decision.

Buyer (Parents) Decision

Culture Social class

Family

Status

Personal

Age and life cycle

Economic situation

Lifestyle

Personality of the kid

Psychological

Motivation

Learning

Belief and attitude

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Table 5.1.1.1.: Buying Decision Processes (Kotler, P., & Armstrong, G., 2010)

5.1.2) Participants

The Kids Heaven buying center includes all individuals or groups that will affect the decision

making process. The followings are the major participants in the buying process:

Figure 5.1.2.1.: Kids Heaven Participants (Kotler, P., & Armstrong, G., 2010)

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Section 6) SWOT Analysis

6.1) SWOT

SWOT Analysis ensures several benefits in developing marketing plan. It does not require

any extensive training because of its simplicity. It is also lower in costs with flexibility to enhance

quality of Kids Heaven. It will promote open information exchange and cooperation across different

functional areas (Hartline, M., and Ferrell, O., 2002, pp. 87). Kids Heaven SWOT Analysis is given

in figure 6.1.1. In this marketing plan, there will be two discussed for each of the factors with

detailed explanation in table 6.1.1. and matching strengths to opportunities/converting weaknesses

and threats in table 6.1.2.

Figure 6.1.1.: SWOT Analysis of Kids Heaven

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6.2) Critical Success Factors (CSFs) in the Industry

In order to succeed in the education industry, Kids Heaven should develop and maintain

eight CSFs as shown in figure 6.2.1. The reasons are that it will be strengthening and ensuring

success of business and customer satisfaction by meeting their needs and wants. In table 6.2.1., it

details weighting factor comparison with Kids Heaven and their competitors along with justification

reasoning for each of the CSF. CSF is essential for success of the business continuation (McDonald,

M., and Keegan, W., 2002, pp. 227).

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Figure 6.2.1.: Kids Heaven CSFs in the Industry

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6.3) Sustainable Competitive Advantage (SCA)

SCA is important for Kids Heaven planning, building and maintaining unique competitive

advantages that competitors will find difficulty to imitate adopt or adapt. It is of high value to

parents and their children (customers). In figure 6.3.1., it details framework for building SCA and

impact on Kids Heaven performance. According to Lamb, C., et. al., 2010, pp. 42, the sources of

SCA is cost and differentiation.

Figure 6.3.1.: Framework for Building SCA (Rijamampianina, R., 2003)

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SCA is shown in figure 6.3.2. and they effective because it influences competitiveness of

Kids Heaven in the industry and detailed explanation in table 6.3.1. Customers always looks for

discounts and low cost when comparing with competitors also when there is differentiation with

quality and range of services then potential customers will be attracted.

Figure 6.3.2.: Sources of SCA

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Section 7) Market Research

7.1) Information Requirements

The information required is asking potential customers whether Kids Heaven business

concept will be successful. Zikmund, W., and Babin, B., 2012, pp. 102 states that the role is new

business idea screening with concept testing. The information gathering will consist of identifying,

recognizing and understanding potential customer needs and wants as the basis for determining

success of launching Kids Heaven. Accordingly, it will be examining aspects of Kids Heaven

business environment by asking questions about their preferences, behaviors, attitudes, competitors,

and numerous other factors.

7.2) Research Methodology

In this marketing plan, the research methodology applied is quantitative to gather data and

information about Kids Heaven concept. The sample size is 50 targeted through online survey

questionnaire as shown in appendix E. The reason to implement quantitative market research is

because of several advantages as shown in figure 7.2.1. The appropriate procedure for this

marketing plan is shown in figure 7.2.2.

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Figure 7.2.1.: Qualitative vs. Quantitative Concept and Method (Rouse, A., and Dick, M., 1994)

Figure 7.2.2.: Quantitative Procedure (Wee, T., 2001)

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7.3) Research Results

The sample size for this marketing plan is 50 surveyees. The online survey questionnaire is

sent out to 115 potential respondents and 50 respondents have completed successfully as shown in

figure 7.3.1. The questionnaire designed and distributed online is given in appendix E under online

survey questionnaire along with detailed online survey report. This questionnaire link was sent

through email addresses, Whatsapp and Blackberry Messenger.

Figure 7.3.1.: Overview of Responses

Most of the respondents are 18-30 years as shown in figure 7.3.2., which is 77 per cent

respectively. Majority of responses are Emiratie nationals with 96 per cent. Female respondents

have shown more interest and majority are 63 per cent and most of them are married 57 per cent.

These respondents are mostly from Abu Dhabi, Ras Al Khaimah, and Dubai, which are 49 per cent,

29 per cent, and 16 per cent, respectively. Accordingly, the people interested in Kids Heaven are

aged between 18-30 years, Emiratie national, females married couples, and they are residing at Abu

Dhabi, Ras Al Khaimah, and Dubai.

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Age Group of Respondents

32%

45%

17%

6%

18-25 26-30 31-35 36-40

Nationality of Respondents

96%

2%2%

Emiratie Pakistani Lebanese

Figure 7.3.2.: Age Group Figure 7.3.3.: Nationality

Gender of Respondents

63%

37%

Female Male

Marital Status of Respondents

57%

2%

41%

Married Single Divorced

Figure 7.3.4.: Gender Figure 7.3.5.: Marital Status

Emirate of Respondents

49%

2%

16%

4%

29%

AD Dubai RAK Sharjah UAQ

Figure 7.3.6.: Emirate

KIDS HEAVEN 32

Around 46 per cent of respondents belong to middle class and 36 per cent belongs to upper

class as shown in figure 7.3.7., which shows that pricing should be suitable for both the class

structure.

Figure 7.3.7.: Class Structure

Most of the respondents prefer craftwork cooking (30 per cent and 23 per cent) also

gardening and dancing (16 per cent and 10 per cent) shown in figure 7.3.8. They have also chose

other services they would like are football, sports, horse riding, baking, and more artwork.

Figure 7.3.8.: Services Preferences

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The preferences of sending children are during weekends with monthly plan and during

afternoon timing (56 per cent, 43 per cent, and 45 per cent) as shown in figures 7.3.9., 7.3.10., and

7.3.11.

Figure 7.3.9.: Frequency of Child Participation

Figure 7.3.10.: Registration Plan Preferences

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Figure 7.3.11.: Suitable Timing

Respondents are happy and they have affirmed that Kids Heaven is different and very

different when comparing with competitors in the market (such as 46 per cent and 40 per cent)

shown in figure 7.3.12. In the future, respondents are expecting that Kids Heaven will introduce

new services also expand (50 per cent and 45 per cent) as shown in figure 7.3.13.

Figure 7.3.12.: Competitiveness of Kids Heaven

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Figure 7.3.13.: Expectation in the Future

Section 8) Marketing Strategy

8.1) Marketing Mix 4 Ps and Service Life Cycle

Marketing mix major decisions are made in this marketing plan under four categories and

they are product, price, place, and promotion and their analysis details are shown in table 8.1.1.

These variables are controlled by Marketing Manager to satisfy parents and ensure enrollment of

their children. This marketing mix will generate positive responses for Kids Heaven sales.

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In figure 8.1.1., it shows the three levels of Kids Heaven services. In core benefit, it is to set

what parents will be looking for to acquire Kids Heaven services so children will have fun and

develop their skills and abilities. Based on such core benefits, parents will like to buy services.

Actual product listing of services includes benefits for persuading parents and children. Augmented

list offers after sale and other services, which are additional.

Figure 8.1.1.: Three Levels of Kids Heaven (Jain, A., 2010, pp. 129)

Marketing mix plays important role throughout the life cycle of services (Stapleton, J., and

Thomas, M., 1998, pp. 76; McDonald, M., et. al., 2011, pp. 37) offered by Kids Heaven. In every

stage of life cycle, different marketing mix is formulated as shown in tables’ 8.2.2-5.

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8.2) Market Share Objectives and Service Life Cycle

The market share objectives are to increase Kids Heaven sales and to increase market size.

In figure 8.2.1., it shows market share and market growth with explanation in table 8.2.1.

Figure 8.2.1: BCG Market Share (Boone, L., and Kurtz, D., 2008, pp. 53)

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Section 9) Implementation:

9.1) Personnel requirements

Table 9.1.1.: No. of Personnel Requirements

9.1.1) Recruitment Methods:

Kid’s Heaven is a small size business, where staff will be recruited according to the requirements of

the company. Recruitment will be done after proper hiring process in order to have an effective

team to be successful. The method we implemented to recruit is through advertising the positions to

recruitment agencies and posting them on newspapers. It is a crucial step, because the success or

failure of identifying, attracting, and maintaining a pool of qualified candidates depends on the

quality and variety of communication and media used to inform potential applicants.

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9.1.2) Responsibilities

Table 9.1.2.1.: Positions and their Responsibilities

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9.1.3) Incentives

Our company will use different kinds of incentive methods to motivate our employees such as:

Table 9.1.3.1.: Incentives

Other activities will be planned in the future such as paid group lunches, and sponsored sports

teams.

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9.1. 4) Training required

Training will be given to all staff according to their jobs assigned in the company such as:

Table 9.1.4.1.: Training Needs Analysis

9.2) Financial Requirements

Figure 9.2.1.: Kids Heaven Enrollment

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We are expecting that there will be slow increase in kids enrolling in our center every month. As it

is our initial stage so we will be having a big budget for marketing to target our audience.

9.2.1) Capital Fund

Figure 9.2.1.1.: Sources of Capital Fund

Our total investment will be 500,000 AED which as shown in the table above 100,000 AED will be

taken as a loan from bank in the monthly payment basis. 200,000 AED will be applied for Khalifa

Fund and the rest money 200,000 AED will be raised from the owners of the center.

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9.2.2) Budgeting for departments

Figure 9.2.2.1.: Budget Allocated for Departments

The annual budget will be allocated to departments in our center according to predicted expenditure

of the departments. They are responsible to effectively manage the budgets then considering core

expenditure for the year.

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Table 9.2.2.1.: Marketing Plan Budget

The above shown table is sample of marketing budgeting for our center, this is created after going

through each expenses that will be occurred during one year for the department. Total budget will

be 351,010 AED for and it is divided into different categories of marketing.

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9.2.3) Financial Statement

Table 9.2.3.1.: Income Statement

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As you can see from the above income statement center is making net income in the first year. Our

initial capital will be 500,000 Dirhams to start up the center. Most of the expenses are at the introductory

KIDS HEAVEN 52

stage of the center such as like license, purchasing equipment etc. Staff recruitment takes a big portion of

the capital income because of the recruitment process. We will have an income of 275,600 Dirhams after

deducting all our expenses. As per the demand of the market we have predicted that enrollment of the

activities will be increasing and as well as our revenue.

9.3) Information system requirements (marketing/management)

Table 9.3.1.: Information System Requirements

9.4) Monitoring results and benchmarks

Monitoring results by tracking staff tasks to ensure that parents and kids are satisfy with our

services. By monitoring our activities can help us know if any of our business goals are not being

met or alert us when they are in danger of not being met.

KIDS HEAVEN 53

The main tool we will be using to monitor our performance is Key performance indicators (KPIs)

which shows the measurements to the improvement or deterioration in the performance of an

activity critical to the success of a business. They enable you to measure essential activities of our

business so that we can see how these activities influence business results. In our center KPIs will

help us set SMART (specific, measurable, achievable, relevant and time bound) goals for our

business improvements. It will help us work with our staff to identify areas for improvement and set

a target for improvement in a specific timeframe. Then we will have a measurable goal.

To monitor the results we will look at the enrollment of the children and then we will know if the

marketing mix we are using is attracting targeted customers or not. Planning our actions can lead to

more sales/enrollment and it is the quality and quantity of these actions that determine the level of

sales we generate. Monitoring center’s results and then adjusting our activities as needed to

generate the level of sales we want.

We will benchmark our customer service standards because Customer service is an important

concept for businesses with similar products or services in RAK. Our staff will be given customer

service training to severe the customers in the best way possible. We will keep track of the number

of complaints we receive and the time it takes to respond to the complaints is important when we

will benchmark our service. It is important to have a strong customer service when companies have

a commitment to a customer service this raises the bar of competition and makes it difficult for new

entrants.

9.5) Contingencies

In our center contingency plan will be documented that will lay out a course of action that can be

taken in response to the future events. The plan will also cite which managers or employees will be

responsible for carrying out the plan's instructions.

KIDS HEAVEN 54

9.5.1) Accidents at center

It is very likely possible to have accidents while children are playing or while they are in

the class doing activities. In this case our team should always be ready with first aid box and

they should also be aware to perform CPR on a child.

9.5.2) Fire

We will also prepare plan which will contain a list of possible disasters, emergencies and threats

plus a set of instructions that detail how the business will respond to each one. For example, in

case of fire there will possible methods to exit or distinguish the fire in the center.

9.5.3) Any types of disaster affect the center

If there will be an emergency during the day and the building is unusable we would take all of the

children to the nearby hall outside the center. A member of the Senior Management team would

take the contact numbers of the parents to contact them. The situation would be explained and the

decision whether to collect their children would be left to them.

Section 10) Scenarios

Table 10.1.: Predictions for Future Scenario

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Section 11) Conclusion and Recommendations

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There's no doubt about it that creativity is as natural and necessary for children as fresh air and

sunshine, so by opening a business which concentrates on children’s creativity we intend in

exposing children to creative experiences like giving them the gift of a rich and memorable

childhood. Kids Heaven is all about doing something better than others, it is about thinking,

exploring, discovering, and imagining.

Our teachers will respect children's ideas and help them learn to think and solve problems for

themselves. This in the future will help Children feel free to make mistakes, explore, experiment

and find new ways to do things.

In the future we are hoping to include more fun filled activities for kids such as skating, ice board

skating and karate classes. We will conduct surveys to know the interest of the parents and their

children and their expectations from our center.

We are hoping to make a difference in a child’s life by helping them being themselves and our

business will be aiming to be innovative and creative in ideas that will help us attract more children

to our Kids Heaven.

Marketing Plan Resources / References

KIDS HEAVEN 57

Boone, L., and Kurtz, D. (2008). Contemporary Marketing (pp. 53). New York: Cengage Learning.

Retrieved 20 March 2014 from http://books.google.ae/books?

id=GqCVnz0mpdUC&pg=PA607&dq=Market+share+objectives&hl=en&sa=X&ei=v_xEU

8D-HIOK7AaMmoHQCg&ved=0CEkQ6AEwAw#v=onepage&q=Market%20share

%20objectives&f=false

Hartline, M., and Ferrell, O. (2002). Marketing Strategy (pp. 87). New York: Cengage Learning.

Retrieved 20 March 2014 from http://books.google.ae/books?id=-

dIWAAAAQBAJ&pg=PA87&dq=marketing,+SWOT+analysis&hl=en&sa=X&ei=G2xCU-

6eMY2DhQe4koDoAg&ved=0CEAQ6AEwAQ#v=onepage&q=marketing%2C%20SWOT

%20analysis&f=false

Health Level Seven (HL7). (2004). Marketing Plan Outline. Retrieved 20 March 2014 from

http://www.hl7.org/documentcenter/public_temp_B85C66AF-1C23-BA17-

0C3800C7713948B7/wg/marketing/HL7%20Marketing%20Plan%20Outline

%20DMv0100.doc

Jain, A. (2010). Principles of Marketing (pp. 129). New Delhi: VK India Exterpises. Retrieved 20

March 2014 from http://books.google.ae/books?

id=Zxeu8d_fz2QC&pg=PA163&dq=three+levels+of+a+product&hl=en&sa=X&ei=LRpSU

-DkN8S1PYaogbAO&ved=0CGYQ6AEwCA#v=onepage&q=three%20levels%20of%20a

%20product&f=false

Lamb, C., et. al. (2010). Essentials of Marketing (pp. 42). New York: Cengage Learning. Retrieved

20 March 2014 from http://books.google.ae/books?

id=qfgEAAAAQBAJ&pg=PA42&dq=marketing,sustainable+competitive+advantage&hl=e

n&sa=X&ei=j1VCU-

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mJEZSthQfPrYGgBQ&ved=0CDMQ6AEwAQ#v=onepage&q=marketing%2Csustainable

%20competitive%20advantage&f=false

McDonald, M., and Keegan, W. (2002). Marketing Plans that Work (pp. 227). New York:

Butterworth-Heinemann. Retrieved 20 March 2014 from http://books.google.ae/books?

id=sX3_i_N7KvoC&pg=PA226&dq=marketing,

+Critical+Success+Factors&hl=en&sa=X&ei=gFBCU4-

ABIq2hQf6_oCICA&ved=0CEEQ6AEwBA#v=onepage&q=marketing%2C%20Critical

%20Success%20Factors&f=false

McDonald, M., et. al. (2011). Marketing Plans for Services: A Complete Guide (pp. 37). New

York: John Wiley & Sons. Retrieved 20 March 2014 from http://books.google.ae/books?

id=Rj7BQDh4u6oC&pg=PA16&dq=marketing+service+mix+4+Ps,

+market+share+objectives&hl=en&sa=X&ei=XftEU_bsIuiM7Qb03oDoCQ&ved=0CDYQ

6AEwAA#v=onepage&q=mix&f=false

Rijamampianina, R. (2003). A Framework For Concentric Diversification Through Sustainable

Competitive Advantage, Management Decision, Vol. 41 Iss: 4, pp.362 - 371. Retrieved 20

March 2014 from http://www.emeraldinsight.com/content_images/fig/0010410405001.png

Rouse, A., and Dick, M. (1994). The Use of NUDIST, a Computerized Analytical Tool, to Support

Qualitative Information Systems Research, Information Technology & People, Vol. 7 Iss: 3,

pp.50 - 62. Retrieved 20 March 2014 from

http://www.emeraldinsight.com/content_images/fig/1610070304001.png

Stapleton, J., and Thomas, M. (1998). How to Prepare a Marketing Plan: A Guide to Reaching the

Consumer Market (pp. 76). New York: Gower Publishing, Ltd. Retrieved 20 March 2014

from http://books.google.ae/books?

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id=fnOrM9hGIHoC&printsec=frontcover&dq=marketing+service+mix,

+Market+share+objectives,++Life+Cycle&hl=en&sa=X&ei=HfZEU8amD-

2f7gbJk4H4Dw&ved=0CGQQ6AEwCQ#v=snippet&q=service%20marketing

%20mix&f=false

Wee, T. (2001). The use of marketing research and intelligence in strategic planning: key issues and

future trends, Marketing Intelligence & Planning, Vol. 19 Iss: 4, pp.245 - 253. Retrieved 20

March 2014 from http://www.emeraldinsight.com/content_images/fig/0200190403001.png

Zikmund, W., and Babin, B. (2012). Essentials of Marketing Research (pp. 102). New York:

Cengage Learning. Retrieved 20 March 2014 from http://books.google.ae/books?

id=edwKAAAAQBAJ&pg=PA102&dq=Market+Research,+

+concept+testing&hl=en&sa=X&ei=Tn1CU_ykG5OUhQfzt4GYCA&ved=0CC0Q6AEwA

A#v=onepage&q=Market%20Research%2C%20%20concept%20testing&f=false

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Appendix Table

Appendix A – Pictures and Specifications………………………………………………………….63

Picture A.1 Kids Heaven Entrance……………...……………………………….………….63

Picture A.2 Kids Heaven Kids Toilet……………………………………………….………63

Picture A.3 Kids Heaven Music Room ……………………………………………….……64

Picture A.4 Kids Heaven Dance Studio………………………….……………..………..…64

Picture A.5 Kids Heaven Art Studio………………………………………………………..65

Table A.1 Business Specifications …………………………………………………………65

Appendix B – Email and Other Discussions ……………………………………………………….66

Figure B.1 Group Project Discussion Emailed Call for Meeting …………………..66

Figure B.2 Follow up of Discussion Made ………………………………..……….67

Figure B.3 Deadlines and Word Count……………………………………………..67

Figure B.4 Reminder of Submissions………………………………………………68

Figure B.5 Update on Progress for Kids Heaven Video Analysis………………….68

Figure B.6 Update on Kids Heaven Logo………………………..…………………69

Figure B.7 Whatsapp MBA Group Discussion Example…………………………...69

Appendix C : Minutes of Meetings…………………………………………………………………70

Appendix D: Group Work (Gnat Chart)…………………………………………………………….71

Appendix E: Market Research and Results………………………………………………………....73

Appendix F: Example of Paperwork for Governmental Offices………………………………........81

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Appendix A: Pictures and Specifications

Picture A.1 Entrance of Kids Heaven

Picture A.2 Kids Heaven kids toilets

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Picture A.3 Kids Heaven Music Room

Picture A.4 Kids Heaven Dance Studio

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Picture A.5 Kids Heaven Art Studio

Name Kids Heaven

Service Kids activities club

Age 2-16 years old

Timing 9am to 1pm – 4-8pm

Activities Music, arts & crafts, photography, dancing,

gardening.

Building specs Villa with a garden, outdoor play area,

reception area, indoor play area, arts room,

dance room, music room, rest room, canteen,

2 offices, 1 boys toilet, 1 girls toilet, 1 adults

toilet.

Table A.1 : Business Specifications

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Appendix B: Email and Other Discussions

In this marketing plan, group members were successfully able to communicate, and

coordinate completion of works assigned. We have supported each other with ideas and reminders

progressively. Other than emails, all group members have also used Whatsapp Messenger (MBA

Group [one example given]) and mobile calls to discuss and communicate any concerns and issues.

In this section, not all communications, reminders or follow-ups are but only few due to size and

amount of message.

Figure B.1.: Group Project Discussion Emailed Call for Meeting

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Figure B.2.: Follow-Up of Discussion Made

Figure B.3.: Deadlines and Word Count

KIDS HEAVEN 66

Figure B.4.: Reminder for Submissions

Figure B.5.: Update on Progress for Kids Heaven Video

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Figure B.6.: Update on Kids Heaven Logo

Figure B.7.: Whatsapp MBA Group Discussion Example

KIDS HEAVEN 68

Appendix C: Minutes of Meetings

MBA 5403 Marketing Management Group Project

Saturday, March 15, 2014

Present: Ameera, Layla, Mona, and Zubaidah

Venue: Classroom next to Library / Behind Receptionist Desk

Agenda and Discussions

Time Agenda Item Discussion

11:00 am 1) Business concept Brainstorming and discussing business activities,

services, facilities, etc.

Sharing knowledge and experiences what can be

done to make it the best such as logo, slogan,

advertisement video, brochure, business cards,

social platforms, etc.

01:00 pm 2) Group

report/presentation

requirement

discussion

All members discussed and went through

requirements for better understanding.

Distributing work (sections and subsections).

Discussion on works distributed.

01:00 pm 3) Wrap-up Final closure and concerns.

KIDS HEAVEN 69

Appendix D: Group Work (Gantt Chart)

Group Work Gantt Chart

Task Name Duration Start Date Finish Date Group Member

Title Page 0.5d "April 18, 2014" "April 18, 2014" Mona

Table of Contents 0.5d "April 18, 2014" "April 18, 2014" Mona

Executive Summary 1d "April 18, 2014" "April 21, 2014" All

Introduction 5d "March 16, 2014" "March 20, 2014" Mona

Current Situation –

macro environment

8d "March 21, 2014" "April 1, 2014" Mona

Current Situation -

Internal

12d "April 2, 2014" "April 17, 2014" Mona

Current Situation –

Market Analysis

15d "March 16, 2014" "April 3, 2014" Ameera

Current Situation - 10d "April 4, 2014" "April 17, 2014" Ameera

KIDS HEAVEN 70

Consumer Analysis

SWOT Analysis 6d "March 16, 2014" "March 21, 2014" Zubaidah

Market Research 15d "March 24, 2014" "April 11, 2014" Zubaidah

Marketing Strategy 4d "April 14, 2014" "April 17, 2014" Zubaidah

Implementation 10d "March 16, 2014" "March 27, 2014" Layla

Scenarios 12d "March 28, 2014" "April 14, 2014" Layla

Conclusion 0.5d "April 18, 2014" "April 18, 2014" All

Recommendation 0.5d "April 18, 2014" "April 18, 2014" All

References 1d "April 18, 2014" "April 18, 2014" All

Appendix A:

Pictures and

Specifications

1d "April 18, 2014" "April 18, 2014" Mona

Appendix B: Emails

and Other

Discussions

0.5d "April 21, 2014" "April 21, 2014" Zubaidah

Appendix C:

Minutes of

Meetings

0.5d "April 21, 2014" "April 21, 2014" Zubaidah

Appendix D: Group

Work (Gantt Chart)

0.5d "April 21, 2014" "April 21, 2014" Zubaidah

Appendix E:

Market Research &

Results

5d "April 14, 2014" "April 18, 2014" Zubaidah

KIDS HEAVEN 71

Appendix E: Market Research & Results

Online Survey Questionnaire: http://questionpro.com/t/AKRhIZQ6T1

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KIDS HEAVEN 74

Online Survey Report

http://questionpro.com/s/1-2335027-3845004

Info Graphics

http://www.questionpro.com//userimages/sub-2/2335027/QuestionPro-InfoGraphic-

3845004.png

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Appendix F: Example of paperwork for governmental offices

KIDS HEAVEN 80

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