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: Central party place

Owner: Mr. Ajay Kumar
Type of Business 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

Occupation:

О Student О Service О Business О Self-employed О Unemployed

Income:

О 15000 – 20000 О 20000 – 25000 О 25000 – 30000

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
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. 16-25
b. 26-35
c. 35-45
d. 45-55
e. 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. Number of respondents Surveyed 350

B. Number of samples with Inconsistent data 50
C. Total Sample Size (A-B) 300
D. Number of Teams(of 2 Members each) 5
employed for the Survey
E. Area of Survey Kolkata
F. Time Taken for the Survey 2 weeks
Analyzing the Survey Results

Frequency Distribution

Question Strongly Agree Neutral Disagree Strongly

Agree disagree
You like to organize the party at home? 20 80 10 40 150
You like your party to be organized by a 200 40 20 30 10
party house?

Party shops make organizing parties 160 50 5 40 45

simple and memorable

Quality of food and Service is important 120 50 20 60 50

for you when you organize parties
through Party Shops.

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 300000

Research & Market Survey Charges 50000
Advertising and other legal expenses 50000
Other Administrative Expenses 20000
Total 450000

Recurring expenses

Rent 35000
Salaries 50000
Electricity 15000
Food & Drink 236250
Decoration 180000
Banners 10000
Music 80000
Security 10000
Tax 70875
Misc 20000
Maintenance 20000
Emergency Services 15000
monthly Annually
Total 742125 8905500