Recommendation
To address KidZania’s current problems of stagnating growth and increasing competition, this memo recommends the adoption of alternative 4, namely, the development of content to extend the brand to other media. Unlike the company’s theme parks, entertainment media such as movies do not necessarily require the acquisition of a physical location or the establishment of a franchising contract. As a result, the reach of a film would be substantially higher than that of the parks, reaching into regions where KidZania parks are unavailable and capitalizing on new consumer bases. Additionally, by providing alternative media options to customers, KidZania would differentiate itself from its primary competition and obtain a substantial advantage.
Support
The movie that KidZania is considering can generate substantial revenue if it succeeds, possibly recouping its cost and ultimately making a profit. As Terech et al. note, the film industry is growing steadily, and many content-creating companies and properties have reached massive valuations (11-12). There is substantial potential for the film to be a financial success, particularly because KidZania can mitigate its advertising costs by using its parks to promote it. However, Terech et al. add that the primary expectation for the movie is that it will increase park visits and merchandise purchases while also providing a foundation for further initiatives (12). As a result, the park’s growth would improve, supplying it with the resources to work on other efforts.
Moreover, the transfer of KidZania’s intellectual property into new media would differentiate it from its competition. The concept is not novel, as some of the most prominent amusement parks in the world, including Disneyland and Universal Studios properties, are successful in part because of their robust presence in film and other media. However, KidZania does not compete with these large parks because of its concept as a local venue that children frequently visit rather than a massive destination that they go to rarely. Moreover, few, if any, businesses that compete with KidZania directly have this dual presence, likely because many of them copied the concept with little innovations, and the new addition would distinguish the company.
Plan
First, it will be necessary to secure the resources and personnel required to produce the movie. To that end, KidZania will have to find investors for its venture and choose and contact the people whom it would like to produce the film. The procedure should take several months, after which pre production will begin. The hired staff will start designing the scenario and preparing to begin filming by deciding on the sets and securing locations, which should also take one to two months. Once these procedures are finalized, the filming and post-production can begin, likely taking one to two years. While it is ongoing, KidZania will be working on the other aspects that contribute to the film’s success.
Most importantly, it will be necessary to secure venues where the movie will be shown to audiences. To that end, KidZania will contact theaters in Mexico and secure contracts for the showing of its films. For other nations, it will contact production companies that will localize the movie and distribute it locally. These processes will last throughout filming, but it is preferable to start them early so that the film can be adapted successfully and released in a synchronized manner. It will also be necessary to conduct marketing, intensifying it several months before the film’s release. As mentioned above, it will be beneficial to run a promotional campaign at the KidZania parks to spread awareness at a lowered cost.
Work Cited
Terech, Andres, et al. “KidZania: Spreading Fun Around the World.” Case Research Journal, vol. 38, no. 3, 2018, pp. 1-24.