It is thought that in order for KidZania to be introduction into the US depends on finding a local key partner. Let us examine what we feel should be the strategy to introduce the brand in the world's most important market the US.
Entering the US market could prove challenging for KidZania. The US market is much more fragmented, the competition steep, home entertainment choices abound and the variety and number of kid's experiences available in the US may prove difficult to capture market share.
KidZania would be considered a Family Entertainment Center (FEC) in the US. FEC's has been an integral part of American life since its origination. By the early nineteenth century the first American FEC was established in New York City and in 1955, Disneyland opened its doors and became an instant success and later evolved into a destination theme park. Riding the wave of success, Six Flags (1961) and many other large theme parks established their first locations throughout the United State.
FEC 445 SPEEDWAY
FEC Railroad Drawbridge
FEC 718Today the US boost over 2,500 FEC's with an estimated 10 billion dollars annually in revenue. With long history and established FEC's markets could prove as a barrier to entry for KidZania.
The family entertainment center industry is highly fragmented due to geographic and demographics which limits drawing power. A typical US FEC is designed to attract customers within a 15 mile radius and does not have the presence of a large national theme park. With a limited number of individuals within the geographic area FEC's depends on repeat visitors by the same individuals in the same geographic area multiple times of the year.
In a study done by IAAPA statistics show that North American families go to FECs three to five times per year at an average cost of...