Safe Kids Child Care is a business that has become necessary in today's fast-paced world. There are an increasing amount of families who have become dependent on two incomes, which has created the necessity of the child care industry. Indeed, it has. There are over 300 facilities in the area that provide similar services to Safe Kids Child Care, each of these has a large client base, and a lucrative business. There is no doubt that there is room in the market for a high-quality child care facility.
Safe Kids Child Care has a focus on meeting the local need for child care services within the 10-mile radius of Lynn. Children are taken in flexibly on either a full-time or part-time basis.
Full-Time Working Couples
The company wants to establish a significantly large full-time regular client base in order to establish a healthy, consistent revenue base to ensure stability of the business. Customer relations are extremely important, as it is imperative to keep the parents pleased in order to keep their children in the daycare center.
Part-Time Workers / Drop-Ins
Part-time workers and drop-ins comprise approximately 20% of revenues. While this market is not the primary focus, sufficient flexibility to handle this secondary market is important to producing supplemental revenues.
The target market for Safe Kids Child Care is full-time working couples. Referral marketing is the key type of marketing strategy utilized. Maintaining and further enhancing its reputation in the community is crucial to gaining additional market share of this target market.
With inflation continuing to increase every year, it has become necessary for more families to rely on two incomes to survive. In turn, this increases the demand for child care facilities. We do not foresee this trend turning in the near future, and intend to capture a share of this market.
The child care business is lucrative, as mentioned before. As a result, there are many centers that provide quality care for children in the same area as Safe Kids. The child care industry is split between large, commercially-run centers and smaller, locally-owned centers. Safe Kids will compete with the small care centers, this is where the main competition lies. The company is confident that this will be a successful venture because of the quality of its managers and the capability of its Care Staff, which is mentioned in more detail in the Personnel section.
There are over 300 child care providers in the local area. The larger commercial chain child care centers, such as KinderCare, have a majority of the market share. These larger chains compete well because of a good reputation among the consumer market. Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.