KidZania Marketing Plan: Strategies, Analysis, and Recommendations

This report provides a comprehensive marketing analysis of KidZania, an international edutainment center. It begins with an introduction to KidZania and its global presence. The main body delves into both the internal and external environments, utilizing PESTEL and SWOT analyses to assess political, economic, social, technological, environmental, and legal factors, as well as strengths, weaknesses, opportunities, and threats. The report also applies the VRIO framework to evaluate internal resources. Furthermore, it examines Porter's Five Forces to understand the competitive landscape. The report then recommends various marketing strategies, including expanding operations, employee retention, and leveraging digital marketing. Finally, it presents a detailed marketing plan, concluding with a summary of the key findings and recommendations.

MARKETING PLAN

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Internal as well as external environment.....................................................................................4
Recommendation of marketing strategies...................................................................................7
Market plan...............................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is basically the series of activities and efforts which the organisations carries
out for promoting and advertising its products and services. Marketing plan is generally the
operational document which outlines the advertising strategy that organizations uses for
generating leads.
KidZania is predominately international chain of family & entertainment centres which
was being established in 1999 and headquartered in Mexico. It currently has its operation in
more than 28 locations across the world and thus is considered as global and largest edutainment
brand within world.
This report gives a brief about internal as well as external environment, recommendation
of marketing strategies and marketing plan.
MAIN BODY
Internal as well as external environment
External environment
PESTEL analysis
Political factors
The major political factors encompasses the government policies, political stability, tax
policies, labour laws etc. which has a great impact on KidZania.
Positive impact- Since the termination of UK from EU, the tax policies in UK has become
stable and thus the tax rate has declined to more than 23.3%. This has impacted KidZania in a
positive way. The tax which the company has to pay for the various imports and exports of their
products has been lowered (Gilligan and Lowe, 2018).
Negative impact- Due to the impact of Brexit, the political stability in UK has somewhat
hindered as due to the frequently changing government, there is high level of corruption in the
country. This has reduced the number of tourist to UK in KidZania which as impacted it to a
great level.
Economic factors
The major economic factors which affects the organization to great extent are exchange
rate, interest rates, inflation rates, unemployment rates etc (Garcia and Middleton, 2016).
Positive effect- The employment rate in UK has increased from 43.1% to nearly 73.8% I past
few years due to which the disposable income of people in the country has increased. This has

affected the KidZania to a great extent as due to high income, more and more people are willing
to spend their money on the parks and for availing its amenities.
Negative effect- Since the emergence of Brexit, the interest rates in UK has increased to a great
level around 64.4%. This has been a challenge for KidZania who needs money for the
establishment of various facilities in their park. Due to increased interest rates, it has become
difficult for KidZania to mange their operation at such high rate.
Social factors
These factors mainly includes population rate, safety consciousness, health
consciousness, lifestyle, attitudes, age distribution etc. which has impacted KidZania.
Positive effect- Due to the high disposable income, the lifestyle patterns of the pattern in UK has
changed and thus they are willing to spend their money on the theme parks and other activities in
order to increase the knowledge base of their children. This change in lifestyle has affected
KidZania in positive way.
Negative way- With the changing population rate, the age distribution in UK has changed
drastically. It has been reported that the ratio of old age people in much higher than the youth
and young people along with the newly married couples. This has somewhat affected the profit
ratio of KidZania as due to old age people, there has been less visitors to KidZania.
Technological factors
The major technological factors consist of innovation level, technological changes, R &
D activities, etc.
Positive effect- Due to the recent technological advancements and the growing awareness of
people towards technology for educating their children, KidZania has brought up various
technologies at its interactive city like robots, mBots which enable children to learn the different
piloting skills and most important coding skills (Kreutzer, 2019).
Negative effect- Bringing the latest technology that will be helpful for people and will attract
visitors from across the world, a high amount of investment is required that will go in designing
the different technological profits. Thus, this high investment has affected KidZania in negative
way as they would have to spend a large amount for increasing their profit ratio.
Environmental factors
These factors mainly consist of climate change, weather policies, environmental policies
etc.

Positive effect- The growing awareness of people towards the environment and reducing the
environmental pollution has impacted KidZania in positive way. This has enabled KidZania to
educate the children about various aspects of environment through role play and by displaying
the shows on environmental protection. This has somewhat increased their number of visitors.
Negative effect- As most of the fun activities in KidZania takes place in open areas to give
children a memorable experience thus they remain exposed to changing weather and climatic
conditions. This affects their operations in negative way.
Legal factors
The legal factors comprises of discrimination laws, employment laws, patents and
copyright laws etc.
Positive effect- The strict legal laws in UK has enabled KidZania to ave a well-through policies
at their workplace and thus have helped them to establish the anti discrimination laws where all
the staff working their to entertain the children are not discriminated and thus treated equally.
Negative effect- The government has become highly conscious towards protecting the
consumers during activities and thus this has compelled KidZania to establish various norms for
protecting visitors and remain cautious of their safety.
Internal environment
SWOT analysis
Strength
The biggest strength of KidZania is their steady reputation. KidZania has developed the
reputation and goodwill by supporting various different brands like Allianz, Telecom Malaysia,
Honda etc. This has strengthen the image of company and built their brand (Perreault, 2018).
Weakness
The main weakness of KidZania which has dominated its operations is the differentiation
of their partners and co-brands. KidZania offers only single organization's brand for their role-
play activities. This is their biggest weakness as they are unable to provide variety of services.
Opportunities
The biggest opportunity which is available to KidZania is ability to enter into venture
within various new mediums like mobile. KidZania can venture into social media marketing as
well as mobile marketing for increasing frequency and well as reaching wider audience.

Threats
The biggest threat which might hinder the operations as well as position of KidZania in
market is the strong presence of their competitors like Gambado Ltd, Urban air, palace
entertainment etc (Paley, 2017). Due to their established reputation and position in market,
KidZania might loose their revenue ratio.
VRIO framework
It is basically the tool which is being used by the organization to analyse its internal
resources as well as capabilities that will help to achieve competitive advantage.
Valuable
The local food and drink products of KidZania are highly valuable resources that
differentiate them from that of the competitors. Their foods generally make perceived value high
for their customers and thus help them to differentiate their products.
Rare
The financial resources of KidZania are highly rare which are difficult to find for their
competitors. Financial resources are possessed by KidZania and thus cannot be possesses by
other companies. This helps them to establish their position in market and thus gain competitive
advantage (Flores and et.al.,2017).
Inimitable
Inimitable resources are those resource which cannot be easily imitated or duplicated by
the organizations and thus offers a high value. The patents and copyrights of KidZania are highly
inimitable which cannot be imitated or duplicated by their competitors. These patent are the one
upon which they have legal rights and thus their methods and products cannot be stolen by other
companies.
Organisation
These are the resources which provides value to the organizations and addresses the
organized processes as well as structures of company. The employees and staff of KidZania are
the valuable resources which are highly organized as well as have the capabilities to provide
competitive advantage to the company.

Porter five forces
Threat of new entrant
It basically reflects the barriers which are being imposed on organizations due to the
entry of new competitors in the market. This threat is basically low in this industry within which
KidZania operates as there is high amount of capital required along with large amount of
investment. Due to this reason, this threat is generally low which is a positive sign for KidZania
and will help them to attain the competitive advantage. Due to high investment, the entrants are
more likely avoid starting their business in this industry (Papadopoulos and et.al.,2017).
Threat of substitute products
This is the another threat which is basically about the availability of different substitute
products as well as services that results in challenging competitive environment. This threat is
generally low for KidZania as there are less number of substitute products that are available to
the customers due to high product differentiation. Besides this, switching cost for using the
various substitute product is generally high because of high economic cost as well as
psychological cost. The degree of differentiation which exist in the products as well as services
like using different technology to increase children knowledge base is high and because of high
differentiation, this threat is low (Juska, 2017).
Rivalry among firms
The rivalry among the firms is predominately the number and amount of competitors
which are present in market and thus creates a competitive environment. This rivalry is extreme
and fierce for KidZania and thus this rivalry is high for KidZania due to presence of strong
competitors in market like Palace entertainment. As this entertainment industry is growing at a
rapid rate thus thus there are large number of key players and this makes this rivalry intense for
KidZania which somewhat might impact KidZania in a negative way. Besides this, due to
competition for high differentiation, this rivalry is fierce and aggressive.
Bargaining power of suppliers
this is the extent or level to which suppliers exert pressure on the firms for reducing
prices and increasing quality. The bargaining power of the suppliers are generally high for
KidZania due to less number of suppliers which are being available in this industry. The number
of suppliers which prevails in this industry are basically low due to which the suppliers bargain
to a great extent and KidZania are not able to force their power on them due to high switching

cost. Besides this, this high bargaining power ultimately strengthen the position of suppliers and
thus their demand increases.
Bargaining power of buyers
This is basically the extent or the degree to which customers are able to put pressure on
firms for providing the products and services at affordable price. The bargaining power of
customers in this industry is generally low due to large and undifferentiated customers that are
present. The number of buyers are generally more in comparison to customers and this makes
their bargaining power low. Besides this, due to less number of substitute products the switching
cost of customers of KidZania also decreases (Haider and et.al.,2019).
Recommendation of marketing strategies
After making its successful presence within market for more than 14 years, KidZania
needs to look for various strategies that will differentiate them from their competitors as well as
will help them to attract the wide range of children as well as adults. There are generally various
alternative which is available to the company for accomplishing their long-term goals and
objectives.
Growth within numerous parks
KidZania should extend its operations and activities in different parks and thus should
focus towards investing in developing their operations in variety of parks. As the company have
limited resources, thus KidZania should open their parks within big cities instead of opening
them into smaller cities which would eventually requires more money and resources. KidZania
has the managerial as well as operational capacity to build round six or eight parks each year and
thus KidZania should expand its construction ability to different parks. In order to differentiate
itself, KidZania should emphasize on motivating as well as retaining employees and build their
loyalty (McDONALD, 2016). This is one of the most important and significant strategy which
KidZania should adopt in order to achieve competitive advantage and to build their position in
market. The biggest opportunity which KidZania have for gaining the large market share is
ending in north America markets. The main rationale behind expanding in north American
geographies is the large number of population and have around 4 million inhabitants along with
1 million children. Thus, KidZania should explore these markets due to to high number of
children and this will help them to attain competitive advantages and will help them to bring
various other amenities.

Digital platform
This is the another alternative and strategy which is available to KidZania and should
adopt in order to gain large market share and enlarge the customer base. The online platform will
strengthen relation of KidZania with children and will provide an informative platform for
interacting with them. KidZania should seek the support of digital platform for making the
experience more memorable and consistent. The company should for example build KidZos
which will link real world together with virtual and thus will help to increase the knowledge base
of children. This is the feature which their competitors does not have and KidZania should make
use of it for accomplishing its objectives and goals. This will also help the park to reach wider
markets where they do not have any subsidiary or their own parks and thus will take the brand
message to wider audience.
New formats
This is the another strategy which KidZania can avail for developing its market share in
different destinations and for gaining the competitive advantage. The best alternative for
KidZania to open their new formats is opening their chain in Mexico. Opening a large number of
parks in city of Mexico will help the company to broaden its customer base. This is due to the
reason that in Mexico, KidZania already have the well known reputation and brand recognition
and thus it would be a safe alternative for the company to attract more and more children and
adults. Thus, KidZania should open its new and smaller parks in the cities and countries where
they have the established brand name thus will increase the customer loyalty for their parks.
Thus, KidZania should explore the various cities for opening their new format which will be
different and innovative from their original ones (Zhang and Yeung, 2016).
Aligning products and services with needs of customers
This is the another strategy which KidZania should seek in order to achieve their long
term goals as ell as to sustain their competitive advantage. The primary objective and goals of
KidZania is to entertain the children and adults with their innovative practices and to fulfil all
their needs and demands. Thus, in order to achieve this goal, KidZania should leverage their
products in such a way that it fulfils the needs of customers. For example- as now more and more
children has become technology-oriented and find the solution of their problem through the help
of technology like internet. Thus, to make the learning of children faster and to increase their
knowledge base. KidZania should make use of robotic assistants which will help them to learn

the skills of various fields and will bring a great opportunity for them. This will ultimately help
the park to fulfil all the learning and other neds of children through technology.
Social media
This is one of the most important marketing strategy which will help KidZania to attain
the competitive advantage and thus establish its position in the market. Social media is one of the
renowned and most powerful tool which will help the park to take their brand message to the
wider audience and hence will help to enlarge customer base. KidZania should make of use of
this tool to make the customers aware of their presence in market and to engage them to a great
level (Lamb and Crompton, 2017). For example- KidZania on its Facebook page, Instagram,
twitter etc. should post the relevant experience of customers as well as visitors from different
countries along with their pictures. Besides this, it should continuously bring post the new
innovative ideas which has been bought up. This will eventually increase the customer
engagement and more and more people would like to visit KidZania for making their children
competent for future.
Increasing customer service
One of the most significant marketing strategy which will help KidZania to gain the
competitive advantage and thus differentiate themselves from other competitors is enhancing the
customer service. This customer service not only entails the services provided at the time of their
of their visit but also the post services after their successful visit. KidZania should focus more on
improving their services and thus satisfying the customers by going beyond their expectations.
After all, a satisfied customer will like to visit the park more frequently and will also send the
endorsements to different customers through word-of-mouth. Therefore, KidZania should take
time to know their customers and should improve its products and services. For example- after
knowing the growing concern of people towards their health and eating hygienic food, KidZania
should improve the quality of their food products which they serve during their visit and thus
should look after that the food hygiene and standards are being followed strictly.
Market plan
Strategic marketing plan is basically the document which highlights the advertising
strategy as well as activities that organizations carries out for generating leads and for reaching
target market. On the other hand, tactical marketing plan is the one which mainly emphasize on
details for achieving the goals and objectives (Grönroos, 2016).

Executive summary
KidZania is one of the renowned family entertainment chain that allows the children to
increases their knowledge base and thus role play the various activities which will help them to
succeed in future. The mission and vision of KidZania are highly imperative which helps them to
design a roadmap towards achieving it. Besides this, this market plan also consist of the
marketing mix of KidZania which helps them to attract the customers and thus fulfil their needs
and demands. Along with this, it becomes highly essential for the company to assess their
strength and weakness, threats in order to analyse the areas where improvement is required. At
the end, monitoring and controlling of this market plan is highly essential to know its
effectiveness.
Mission
To deliver best and most efficient interactive medium to the visitors in role-playing and
thus make their learning as well as entertainment experience memorable.
Vision
To ignite hearts as well as minds of the children across the world through empowering
them and make this world a great place.
Objectives
 To increase the market share by around 30% in the upcoming year of 2020.
 To increase the customer engagement to more than 32.7% in forthcoming year of 2020
and 2021
 To increase the knowledge base of children in the next three months
 To diversify and extend the operation in wider geographies by the termination of year
2021.
 To increase the contribution towards corporate social responsibility to nearly 43.5% in
the next six months.
4Ps
Product
KidZania have a wide range of products which forms its core functions. Its products
mainly comes under the related categorization and these are
Media networks- This consist of the radio programmes as well as cables

Parks, resorts- KidZania have its well-known parks across various destination and have its own
resorts by the name KidZania.
Interactive media as well as consumer products- This consist of various interactive books,
magazines as well as video games for increasing the knowledge of kids through role-playing.
Price
KidZania generally follows premium pricing where their prices of the various activities
like theme parks, admission fees are generally kept high and targets the people belonging to high
class group. Besides this, company also make use of value-based pricing for their products like
memorabilia where the prices are generally set as per the value perceived by customers (Pike,
2017).
Place
KidZania has its presence across various location and thus uses a well-through strategy to
distribute its products. The distribution channel of KidZania is spread across 29 locations and
thus mainly includes the metropolitan cities.
Promotion
The promotional mix of KidZania is highly imperative and thus makes use of various
strategies for attracting the customers and increasing customer engagement. In online mode,
company makes use of the mixture of social media and advertising while in offline mode,
KidZania promotes its products through word-of-mouth.
SWOT analysis
Strength
The biggest strength of KidZania which has enabled it to run its business successfully for
last 15 years is its great brand reputation. From past few years, company have built ha great
reputation and this have enabled them to attract large number of customers from across the world
(Fine, 2017).
Weakness
The biggest weakness which has somewhat affected the position of KidZania is their low
investment in R & D department. KidZania in comparison to its competitors has relatively low
investment in technological advancement which has made their growth stagnant.