International marketing Sonia Panjwani C029

Kangaroo Kids Education Limited (KKEL)

KKEL is planning to increase their market domain in UK using their established franchise model which they developed in India. This case study will reveal why are they considering UK after Dubai and Maldives.

Kangaroo Kids Education Ltd (KKEL)

Renowned educational group in India 80 plus schools across 17 different cities in India International presence in Dubai and Maldives Started by Lina Ashar in 1993 in Bandra with 25 students An exciting activity based integrated learning centre, KKEL is determined to make a difference in the development of a child

KKEL understands a childs grasping process

KKEL Education curriculum based on Dr.Howard Garderners theory of multiple intelligence

Why Child day care ?

Both parents working and the number of percentage of women in key roles has increased from 10% to 40%. Females graduates have higher employment rates in the recent past Increasing importance to child development by companies to reward their employees

Greater spending on child care: Parents in UK are spending 28% of their income on child care which is highest in the world. It costs 177 per week for a child under 2yrs in UK. (Bhatia, 2011; Lever, 2011) It has been observed that 40% of the families have dependent children while 75% of these parents are unable to find quality childcare units in UK.

Why UK?

The UK government has announced 238 taxfree income for the parents who are taking support from approved childcare homes.
companies in UK, have started offering childcare vouchers as part of their employee benefit strategy Under Sec 26,Childcare Act 2006, the local authorities should be responsible to provide sufficient and sustainable childcare facilities in their area of operation, which should enable the parents to work or join job oriented courses.

Why Cardiff in UK?

The proportion of working women is expected to increase from 73.6% to 77.2% in the next five years. According to Cardiff Childcare Sufficiency Assessment, in 2009, there are 158900 residents of Cardiff out of which 75300 are women.

Cardiff has a large, progressive, and dynamic economy that includes a diverse range of industries and the main financial center of Wales.

The county is proud of their largest and successful urban regeneration projects which has attracted new jobs and employees.

Market Analysis

 Population Demographics
% of Total Population by Age & Gender Cardiff Unitary authority [324,800]

Market Size
South East Wales Excluding Cardiff [1,111,200]

Age groups

Male

Female

Persons

Male

Female

Persons

0 to 4

3.10

2.99

6.09

3.00

2.86

5.87

5 to 9

2.68

2.53

5.21

2.91

2.77

5.69

Cardiff Child Population (National Statistics, 2009)

Market Segments
1% 1% 5% 7% 1%
Child Minders Child Care Centre Nursery

24% 61%

Play Groups
Out Of School

Creche Sitter Service Holiday Play Scheme

Growth Rate of Child Care Centres (Cardiff Strategy Unit Report, 2010)

Projected Population

Source: Cardiff Sufficiency Assessment 2009

Child Care Places

Key Points :
73,645 places in 2009. 1200 more places in 2009 than in 2008 Increase in places by 4000 since 2003

www.statswales.wales.gov.uk

Competition Analysis

KKELs Competitive Advantage

Open for longer hours and on holidays Better Quality Highly qualified staff Onboard pediatrician and Nurse Healthy meals Suitable location

KKEL Competitors in Cardiff

Danielle's Little Cherubs Darling Buds Nursery Little Gems Leapfrog Acorns

Competitors Strategy
Located in more than one place.
Open from 8am 6pm & charge heavily thereafter (15 per 15 mins.) Adhere to strict child - staff ratio. Market Leaders in Price. [40 45 pounds/day]

Competitors Strategy
Little Gems Open during weekdays only. Compete in the market on the bases of 1.Qualified staff 2.Play activities 3.Healthy food Mid Ranged Fees. [35 25 pounds/day]

Darling buds

Danielles Little Cherubs

Strategic Analysis

Target Segment

Working Families. Families with more spending power.

Competitive Position
High Quality KKEL

Little Gems Low Darling buds

High

Differentiation based on

Flexible drop ins Open Longer than others & holidays Danielles Little Cherubs On board nurse & paediatrician Multilingual teaching style Low Quality Daily online videos and progress of child
Keller : Price vs Quality

Marketing Modes
Billboards Magazines Social Networking Open House Quarterly Events

SWOT Analysis
Strengths
Qualified and Experienced Staff
Modern Facilities Flexible Hours Multilingual Environment Effective learning Environment and strong brand image.

Weakness
Organization of flexible working staff Inability to visualize the operations

Threats

Opportunity
Increased Growth of Customers Thinner Fixed Costs

Fierce Competition (At least 6 brands) Public Fears for child care abuse

References
www.kkel.com Childcareqld Report, 2011, Tighter rules put childcare centres out of business [Available at]http://childcareqld.org.au/2011/07/tighter-rules-put-childcarecentres-out-of-business/ Cravens, 2010, Strategic Marketing, Tata McGraw-Hill Publication CSA, 2010, Childcare sufficiency Report [Available at] http://www.cardiff.gov.uk/objview.asp?Object_ID=17549 Lever, C.,2011,UK childcare is among the most expensive in the world [Available at]http://www.savethechildren.org.uk/news/2011/05/ukchildcare-among-the-most-expensive-in-world UK Statistics, 2010, Employment Status [Availale at] http://www.statistics.gov.uk/cci/nugget.asp?id=12

Thank you