Executive Report Kidzania

DOING BUSINESS IN AMERICA

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Executive report KIDZANIA

Business model

The business model of Kidzania is a simple model focused on 2 aspects:

1. Entertainment family center

KidZania provides children and their parents a safe, unique, and very realistic educational environment that allows kids between the ages of four to twelve to do what comes naturally to them: role-playing by mimicking traditionally adult activities

Kidzania's sources of income like family entertainment center are divided into the following categories:

• Entry tickets

• Food and drinks

• Photography

• Souvenirs

2. Corporate sponsorship

A fundamental component of the experience at KidZania is the integration of brands of the real world in order that they support the business and the activities of the city. This form of alliance of integrated marketing enriches the activities, creating a more authentic experience

Corporate sponsorship is crucial to the KidZania concept. Companies can sponsor generic job activities, and other jobs are specifically built around the participating brands.

Sponsors vary whit KidZania location and represent a mix of multi-national brands and local, country-specific brands. Some of KidZania's current sponsors include American Airlines, Coca Cola, Domino's Pizza, Wal-Mart, Mitsubishi Motors, Honda, HSBC, Johnson & Johnson, Nestlé, Sony, Unilever, Kellogg's, Danone and Fuji Film. (KidZania, 2016)

International expansión strategy

Kidzania choose to initiate its international expansion in the Asian continent before entering the big market of US by the words of the CEO the company needed to acquire strength and experience in other markets in order that the American market will not exceed them and the concept of business ends.

The experience of internationalization is trough franchises abroad, the motive of this business model is basically the relation to win to win, due to the fact that the franchisee is the one who knows the culture of his country and knows how to handle the business of correct form.

The acquisition of a franchise of kidzania has the following benefits:

•Rights on Intellectual property

•Program and Architectural Design

•"Know How": Manuals of Operation and Software

•Training and Training: "KidZania's University"

•Supervision: "K.I.A. - KidZania Intelligence Agency"

Desirable qualifications in potential franchisees

• Candidates committed to fostering the education and success of children.

• Each candidate must be locally based in each country where it operates and possess the "know who" and "know how" necessary to achieve business success in its markets.

• Extensive brand relationships or sponsorship experience is essential and significant commercial experience - especially in hospitality, entertainment or media - is strongly preferred.

• Minimum capital resources must be available in excess of US$20 million with the ability to roll out multiple locations as each market permits.

• Sublicensing is not permitted.

Support and training programs

All the franchisees come to Mexico to receive training in the University