Marketing Proposal for Chuck E Cheese in China

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Marketing Proposal for Diversifying

Into China

Executive Summary

Chuck E. Cheese’s (CEC) is publicly traded company founded by Nolan Bushnell in 19771 in San Jose CA. CEC currently operates over 500 stores domestically and internationally; expanding into countries such as Chile, Saudi Arabia, Puerto Rico, U.A.E, Guatemala and Canada2. CEC mainly provides games, entertainment, party and food for children aged two to fourteen years old within a safe environment. The marketing proposal explores the possibility of expanding CEC into untapped, high growth market areas in China. CEC product is modified to tailor the tastes of Chinese children and families. This proposal looks at the overall country and culture, number of children and their habits. China’s growth has been unprecedented for past four decades and the Chinese family’s income has grown considerably. The analysis looked at the key prospects available for CEC and chooses Shanghai as the market place to introduce its first store. Market research for Shanghai was done from the perspective of number of children, western influence, family income, disposable income, financial status, technology, and competition. The research revealed that there is no single company or store that provides games, entertainment, party and food for children aged two to fourteen years old within a safe environment within one single facility. In addition, Shanghai is the most westernized city in China and the Gross Domestic Product (GDP) has grown rapidly over the last few years. CEC will bring fun and entertainment to the families of China and at the same time, CEC will benefit greatly from China’s vast market size. The marketing plan includes a strategy to expand CEC over the first five years, growing at a pace of three stores per year in first five years and eventually expanding its brand to all major cities across China.

Table of Contents

1Introduction and Statement of Purpose4
2Product Analysis5
3Country, Market & Competitive Analysis9
3.2Market Analysis11
3.3Competitive Analysis13
4Forecast, Predications, Prognostications hopes and dreams16 5References18

Introduction and Statement of Purpose

Chuck E. Cheese’s (CEC) is a publicly traded company founded by Nolan Bushnell (founder of Atari), in 19773. Originating in San Jose, CA. CEC has successfully expanded its brand internationally, specifically the following countries - Canada, Chile, Guatemala, Puerto Rico, Saudi Arabia and U.A.E4. Although CEC has had success in the international market arena, it has not come close to reaching its fullest potential worldwide. CEC has not entered into a major emerging market place and a country with one of the world’s greatest population of children, China2. China is considered by analysts and economists as a country with high potential5. The question is “Where would that new niche be in China”? A few key components must be analyzed; the niche should have some type of influence from the western culture, since that is where CEC originated; the area where CEC enters within China should also be emerging–should be within urban area; a dense population of children from ages two to fourteen years – specific age group CEC targets there product to; and lastly the risks of entering should be out-weighed by the benefits. Among China’s most populated cities; Shanghai has the greatest western influence. In addition to the impact from the west, Shanghai’s population of children ages between two and fourteen is greater than the entire population of the city Dallas, TX55. Shanghai’s continuous growth and free trade market sends a strong signal that entering into Shanghai’s market could be successful. The main purpose of this marketing proposal is to guide and develop the right course of actions for CEC’s entry in China’s market place. An overview of CEC’s product line and services, as well as a more in depth look into China’s culture,...
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