1. Providing a Safe, Healthy Haven for Children of Working Parents
Children’s Day Care
Providing a Safe, Healthy Haven for Children of Working Parents
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2. In the Business of Parental Peace-of-Mind
There are approximately 53,000 for-profit and approximately 21,000 non-profit day care facilities in the US, generating $20 billion and $13 billion, respectively, in annual revenues. Many US companies operate private day care facilities for employees.
The Great Recession had little effect on the children’s day care industry. Millions of working parents still needed the service, so revenues increased 6% to 7% from 2008 through 2012.
The 4 largest US day care companies are Knowledge Universe Education, Bright Horizons Family Solutions, Learning Care Group and Kamehameha Schools; however, most day care companies are local and small, since the top 50 companies account for only 20% of total revenue.
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3. Growing with the Population
According to data from the Pew Research Center, the US population will total million by 2050, with approximately 86 million Americans 65 and older and 73 million younger than 15.
The projected birth rate for 2050–2055 will be the lowest for the previous 100 years: per 1,000 persons, compared to for 2010–2015 and 24.4 for 1950–1955.
Despite the low birth rate, the US population of children 4 years of age and younger and children 5 to 13 years will increase every year from 2015 to 2055, or a total of 12.5% and 9.8%, respectively, during the 40-year period.
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4. For the Women in the Workforce
Of the million working-age women (16 years of age and older) during 2013, 72.7 million were working, or 57.2%, compared to 69.7% of men. By 2022, women’s participation rate will decrease to 46.8%, although the number of women in the civilian labor force will increase 5.4%.
During 2014, women were the heads of households of 83%, or 9.93 million, of all single- parent families, which included approximately million children younger than 18. During 2013, the poverty rate for single-mother households was 39.6%.
The growth in women-owned businesses is also driving the need for day care services. According to American Express, women launched 1,200 new businesses every day during the first half of 2014, compared to 740 per day during 2013.
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5. A Costly Service
The annual cost for two children in a day care center during 2013 was the highest major household expense in the Northeast, Midwest and South regions of the US, and second in the West.
These costs are particularly difficult for single- mother households, since the cost of child care, as a percentage of the median income of single mothers, is often many times that of the median income of married couples (depending on the state).
According to Care.com, the least-affordable states for full-time day care of a 4-year-old are Oregon, New York, Minnesota, Vermont and Colorado. The most-affordable states are Louisiana, Mississippi, Tennessee, South Carolina and South Dakota.
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6. Evolving with the Need
With almost 40% of Americans working other than the traditional 9-to-5 day, the number of 24-hour day care centers continues to grow. Of all employees that worked non-standard hours during 2013, 25% were 30 to 40 years of age.
During his 2015 State of the Union address, President Obama proposed increasing the maximum child care credit to $3,000 per child, so 5.1 million middle-class families would be able to afford child care.
From 2015 through 2019, revenues for children’s day care services are estimated to increase at an annual compounded rate of 4%.
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7. Advertising Strategies
Recommend day care centers advertise during early morning, local news when day care is a top-of-mind consideration for parents. Suggest :10 or :15 spots with this copy point: “What are your children doing at day care today? They could be doing so much more at ABC Day Care.”
24-hour day care centers could advertise during lower-cost late night programming to target 2nd-shift parents and promote a discount for enrolling more than one child or when one parent refers another and they enroll children at the same time.
Suggest day care center owners record smartphone video of children at play and testimonials from parents and then edit the video into a commercial with a matte of a fictional social media page in which the commercial plays.
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8. Social Media Strategies
Young parents are very social media savvy, so those day care centers that provide relevant and informational content, such as children’s health tips, how day cares prepare children to succeed in school, etc., are more likely to engage with young adult parents and create loyal followers.
Create and post a short poll or survey with multiple-choice questions, asking parents what are the most important factors in choosing a day care, what activities or services they wish their current day care provider offered, etc.
Use social media platforms, such as Pinterest and Instagram that appeal specifically to young adult women/mothers, and upload regular photos and videos of day care activities, special occasions, parties, etc. to show happy children and parents.
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