Professional Documents
Culture Documents
Marketing of Fashion
TH
Assignment-1
A brief of history
KidZania was created and developed by the Mexican entrepreneur
Xavier López Ancona, the current KidZania CEO. The first KidZania
opened in September 1999 in Santa Fe Shopping Mall in Mexico City and
was named "The City of the Children".
Corporate sponsors funded 55% of the initial investment.
In 2007, KidZania hired entertainment strategist Andrew Darrow as
executive vice president to expand the operation. Cammie Dunaway
joined in late 2010 as the chief marketing officer.
Innovation of KidZania
The idea flourished from just a traditional nursery
school to an entertainment city to an educational
park and now an Edutainment center.
At KidZania, kids get the opportunity to try several
professions with real brands. For instance, they can
cook in Mcdonald’s instead of simply eating a burger.
They get a chance to be on CNN instead of just
watching the news. They drive and sell/buy cars
instead of just commuting with their parents. These
are some of the unique experiences which KidZania
offers and at the same time makes a profit for
themselves and their business partners.
Marketing Strategy of KidZania
Channels:
A media mix of 80 percent print and
radio, 16 percent digital and social
media, and 4 percent on other media.
Key Activities:
Fun: Make visitors enjoy their leisure time
education: Encourage kids to learn
Socialization: Contribute to social improvement
through these kids learning activities
Customer Segments:
Kids (Age 2 to 16 years) Adults (18+ provided
they are accompanying kids)
Value Propositions
The KidZania philosophy 'Get Ready for a Better
World' captures the commitment to providing a
fun and learning experience which prepares
children to make a positive impact on society.
Revenue Streams:
Ticket Sales (Contribution to revenue: 50%)
Brand Partnerships 5 year period
Merchandising
Key Partners:
Integrated partnership enriches each
activity by creating a more authentic
experience. Key Partners: Air Asia, Nestle,
Sony, DHL, Honda, Hyundai, Johnson N
Johnson, Kellogg's, Danone
VII
Pricing
UPCOMING LOCATIONS
Economical perspective
As stated earlier, initial funds were US$10 million. Since
KidZaniaw was a private company, it was not listed in any stock
market and its financial information was not public.
The only financial data came from an interview with Xavier
Lopez Ancona by ‘‘Poder 3608’’ magazine where it was indicated
a turnover in 2008 of near US$80 million.
By 2008, four centers were operating: two in Mexico, one
franchise in Japan, and one franchise in Indonesia. By 2010
KidZaniaw’s founders had eight centers and they were planning
on opening at least eight more by the end of 2011 (Durango,
2009).
This alone was solid proof of the profitability of the innovative
business model and its continuous growth.
Their biggest expansion had been in Asia, where they had
looked for big and populated cities like Tokyo, Jakarta, or Seoul.
KidZania’sw founders stated that the payoff time in this
business was around four years (Durango, 2009).
KidZaniaw’s average ticket price was $11 for toddlers from two
to three years and adults, and $18 for kids from four to 16
(KidZania, 2007). This was in Mexico and it could vary in
different KidZaniaws
Expansion
The firm continued its expansion around the world.
1. Mexican business. Continue as owners.
2. Outside Mexico. Keep franchising with business partners who invested in
exchange for design, know-how, and personnel training.
3. the USA. Entering in association with a strategic business partner and
possibly going public. By 2010, they had performed stages 1 and 2 successfully
and they expected to begin the third one in 2011-2012. Their expansion plan
included a park in Cuicuilco, Mexico, which they would still own, and the next
destinations for franchises are (Mendoza, 2010):
Bangkok, Thailand.
Kuala Lumpur, Malaysia.
Shanghai, China.
Santiago, Chile.
Mumbai, India.
New Delhi, India.
Istanbul, Turkey.
Cairo, Egypt.
Sao Paulo, Brazil.
In the USA, they planned to open a KidZaniaw in 12 of the biggest cities, like
New York, Los Angeles, Chicago and Atlanta (Durango, 2009).
Promotion Strategy
Kidzania's marketing strategy is to drive growth via
digital marketing, online promotion. It advertises to
the hosts and customers through traditional as well as
modern methods such as TV advertisements, Outdoor
Advertising, and Digital media marketing. kidzania is
trying to convey the message of education through its
advertisements. Social media analytics and other paid
researches are a big part of Kidzania's marketing
strategy.
competitive brand
In the entertainment parks industry, there were three
market niches identified (Durango 2009):
Destiny parks. They imply several days’ vacations,
traveling by plane, and visits once a year or less. This is
the case with Disney parks or Las Vegas.
Regional parks. A long experience of a complete day,
with visits once or twice a year. The examples are Six
Flags or Legoland.
Local parks. Several visits in the year, each of them from
2 to 6 h in a place close to the community. This is where
KidZaniaw fitted, along with cinemas or theaters.
Conclusion
KidZania kept evolving and looking for new ways to offer its
services to continue as a successful company. KidZania’s
managers change and update their content every four
months to stay relevant to kids’ demands.
Internationalization helped KidZania in the incorporation
of changes to fit in new markets.