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Party World Consulting Report

Consultants: Raza Hamid, Matt Alstad, & Katie Halpin

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SCOPE OF PROJECT

Industry Analysis• Economy & Retail Industry• Current Trends

Marketing Plan• Marketing Analysis• SEO, Website, & Social Media

Succession Planning• Keeping the business in the family• Selling the business

+Industry Analysis

Economy & Retail Industry

Current Statistics• GDP grew 2.7% (Q3 2012)• Unemployment down 7.7%• Consumer spending up 1.3%

Outlook• Conscious consumer• Retail technology key• Renewed corporate profits• Increase in discretionary income

+Industry Analysis

Economy & Retail Industry

Industry Overview• Sector category: Misc. Store Retailer• Party décor sales• Rental - Weddings, corporate events

and banquet equipment• Sector worth: $2 billion (approx.)• Revenues down nearly 0.3% per year• Seasonal sales rising - Halloween

Source: Ibisworld.com

+Industry Analysis

Recommendations

Strategies to get ahead• Lean operations• Improve customer experience• Multichannel shopping• Reintroduction of discounts

Current Trends• Paper Decorations• Customized Linens• ‘Educore’ (educational décor)

Source: Deloitte - Retail Industry Outlook

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SCOPE OF PROJECT

Industry Analysis• Economy & Retail Industry• Current Trends

Marketing Plan• Marketing Analysis• SEO, Website, & Social Media

Succession Planning• Keeping the business in the family• Selling the business

+Marketing Plan

SWOT Analysis Internal

External

Strengths• Certified Balloon Artist (CBA):

Only 2300 worldwide• Still has helium to use in

balloons• Innovation and growth

Weaknesses• Awareness of Party Worlds’

location• Website could use some

updating• Social media presence

Opportunities• Balloon specialty - an advantage• Halloween is growing every year• Dominant social media presence

Threats• Local competitor Party Time• Party City – A national party

store with big awareness• Unpredictable economy

+Marketing Plan

Porter’s Five Forces AnalysisAttractive Forces• Bargaining power of suppliers• Threat of new competition• Intensity of rivalry

Unattractive Forces• Threat of new substitutes• Bargaining power of buyers

Industry Rivalry

Bargaining Power of Buyers

Threat of New

Substitutes

Bargaining Power of Suppliers

Threat of New

Competition

+Marketing Plan

Marketing Mix• Keep in mind the retail products

and rentals the business carries

• Respond to Party Time with competitive price

• Increase market coverage through social media/website

• Advertising is a key strategy

Target Market

Price

Product Promotion

Place

+Marketing Plan

Marketing Warfare• Can’t win with brute force but

superior strategy

• Implement the flanking technique

• New variation of product/rental service

• Use CBA as an advantage

• Marketing warfare can help with competitive edge over Party Time

Marketing Warfare

Offensive

Defensive Flanking

Guerilla

+Marketing Plan

Product Diffusion Curve• Innovators – well informed risk

takers, try unproven product

• Early Adopters – begin to purchase product, educated opinion leaders

• Early Majority – careful customers, avoid risk, recommendations from others

• Late Majority – skeptical, acquire common product

• Laggards – avoid change, traditional alternatives no longer available

+Marketing Plan

Search Engine Optimization (SEO)• Gives the opportunity to improve

sections of a website

• Help users and search engines locate the website

Proven Keywords• Rental

• Occasion

• Party

• Celebration

• Supplies

+Marketing Plan

Website Recommendations• Delete one of the websites

• Change font to just one or two main typefaces

• Focus on title

• Enhance social media presence

• Update pictures; make sure they’re of high resolution

+Marketing Plan

Website Recommendations (Contd.)• Arrange products into sub-categories along

with photos

+Marketing Plan

Social Media• Facebook

• Google Places

• Yelp

• Twitter

• Pinterest

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SCOPE OF PROJECT

Industry Analysis• Economy & Retail Industry• Current Trends

Marketing Plan• Marketing Analysis• SEO, Website, & Social Media

Succession Planning• Keeping the business in the family• Selling the business

+Succession Planning

Keeping the Business in the Family• Failure rate – 80%

• <8% handed over to next generation

‘FAIL TO PLAN’ = ‘PLAN TO FAIL!’

+Succession Planning

Recommendations

Identifying the ‘right successor’• Start early!

• Involve all stakeholders

• Family participation will catalyze emergence of a ‘leader’

• Train the successor

• Manage inheritance

Control

Career

CapitalConflict

Culture

The Five C’s of Planning

+Succession Planning

Selling the Business

Valuations

• Market vs. Perceived Value

• Raising capital to grow

• Estate & inheritance planning

Asset-based

Approach

Liquidation Value

Adjusted Net Book

Value

Replacement Value

Book Value

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Party World Consulting Report

Consultants: Raza Hamid, Matt Alstad, & Katie Halpin

QUESTIONS